UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) August 1, 2001
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Krupp Realty Limited Partnership - IV
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Massachusetts 0-11987 04-2772783
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(State or other jurisdiction of (Commission (IRS employer
incorporation or organization) file number) identification no.)
One Beacon Street, Boston, Massachusetts 02108
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(Address of principal executive offices) (Zip Code)
(617) 523-7722
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(Registrant's telephone number, including area code)
Item 2. Acquisition or Disposition of Assets
Disposition of Fenland Field Apartments
On July 27, 2001, Krupp Realty Limited Partnership-IV (the
"Partnership") entered into a Stock Purchase Agreement to sell its
interest in Fenland Field Apartments, a 234-unit multi-family
apartment community located in Columbia, Maryland, to Home Properties
of NY, LP, an unaffiliated party. The transaction was consummated
August 1, 2001 for consideration of $14,500,000, less repayment of the
existing mortgage note and closing costs.
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Item 7. Financial Statements, Pro forma Financial Information and Exhibits
The following documents are filed as part of this Form 8-K.
(a) Financial Statements of Business Acquired
Not applicable
(b) Pro Forma Financial Information
See "Pro Forma Financial Statements" attached to this Form 8-K.
(c) Exhibits
Exhibit 2.1 Stock Purchase Agreement dated July 27, 2001 by and among
Fentil, Inc., Krupp Realty Limited Partnership - IV
and Home Properties of New York, L.P.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Krupp Realty Limited Partnership - IV
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(Registrant)
By: /s/ David C. Quade
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David C. Quade
Treasurer and Chief Accounting Officer of the
Krupp Corporation, a General Partner
August 6, 2001
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PRO FORMA FINANCIAL INFORMATION
On August 1, 2001, Krupp Realty Limited Partnership-IV (the "Partnership") sold
its entire interest in Fentil, Inc., the record owner of Fenland Field
Apartments ("Fenland Field"), to Home Properties of New York, L.P., an
unaffiliated party, for consideration of $14,500,000.
The Partnership has presented in this Form 8-K, a Pro Forma Consolidated Balance
Sheet at December 31, 2000 and Pro Forma Consolidated Statements of Operations
for the six months ended June 30, 2001 and the year ended December 31, 2000 to
give effect to the sale. See Note 1 to the Pro Forma Consolidated Financial
Statements for further discussion of this matter.
In management's opinion, all adjustments necessary to reflect the above
discussed transactions have been made. The unaudited Pro Forma Consolidated
Balance Sheet and Statements of Operations are not necessarily indicative of
what actual results of operations of the Partnership would have been for the
periods, nor does it purport to represent the Partnership's results of
operations for future periods.
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KRUPP REALTY LIMITED PARTNERSHIP - IV AND SUBSIDIARIES
PRO FORMA CONSOLIDATED BALANCE SHEET
June 30, 2001
(Unaudited)
ASSETS
As Reported
On Form 10-Q Fenland Field
at Pro Forma Pro Forma
June 30, 2001 Adjustments June 30, 2001
(Note 1) (Note 1) (Note 1)
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Multi-family apartment communities,
net of accumulated depreciation $ 9,536,020 $ (2,262,689) $ 7,273,331
Cash and cash equivalents 1,003,837 (35,555) 968,282
Real estate tax escrows 540,702 (186,232) 354,470
Prepaid expenses and other assets 136,110 (88,455) 47,655
Investment in securities 95,516 - 95,516
Deferred expense, net of
accumulated amortization 22,938 (3,235) 19,703
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Total assets $ 11,335,123 $ (2,576,166) $ 8,758,957
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LIABILITIES AND PARTNERS' DEFICIT
Liabilities:
Mortgage notes payable $ 16,048,491 $ (3,638,185) $ 12,410,306
Due to affiliates 38,789 (4,879) 33,910
Other Liabilities 922,000 (172,992) 749,008
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Total liabilities 17,009,280 (3,816,056) 13,193,224
Partners' deficit (5,674,157) 1,239,890 (4,434,267)
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Total liabilities and partners'
deficit $ 11,335,123 $ (2,576,166) $ 8,758,957
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See accompanying note to
pro forma consolidated financial statements.
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KRUPP REALTY LIMITED PARTNERSHIP - IV AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2001
(Unaudited)
As Reported
on Form 10-Q
for the Six Fenland Field Pro Forma for the
Months Ended Pro Forma Sixth Months Ended
June 30, 2001 Adjustments June 30, 2001
(Note 1) (Note 1) (Note 1)
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Revenue:
Rental $ 3,645,187 $ (1,128,924) $ 2,516,263
Other income 28,719 (2,465) 26,254
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Total revenue 3,673,906 (1,131,389) 2,542,517
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Expenses:
Operating 993,860 (266,528) 727,332
Maintenance 273,418 (104,441) 168,977
Real estate taxes 379,314 (71,211) 308,103
Management fees 153,669 (52,669) 101,000
General and administrative 194,898 - 194,898
Depreciation and
amortization 814,295 (212,937) 601,358
Interest 750,192 (173,906) 576,286
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Total expenses 3,559,646 (881,692) 2,677,954
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Income (loss) before minority
interest 114,260 (249,697) (135,437)
Minority interest (1,451) - (1,451)
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Net income (loss) $ 112,809 $ (249,697) $ (136,888)
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See accompanying note to
pro forma consolidated financial statements.
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KRUPP REALTY LIMITED PARTNERSHIP - IV AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
For the Year Ended December 31, 2000
(Unaudited)
As Reported
on Form 10-K
for the
Year Ended Fenland Field Pro Forma
December 31, Pro Forma for the Year Ended
2000 Adjustments December 31, 2000
(Note 1) (Note 1) (Note 1)
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Revenue:
Rental $ 7,213,565 $ (2,132,922) $ 5,080,643
Other income 77,044 (5,600) 71,444
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Total revenue 7,290,609 (2,138,522) 5,152,087
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Expenses:
Operating 1,846,098 (478,146) 1,367,952
Maintenance 557,813 (234,844) 322,969
Real estate taxes 816,275 (161,188) 655,087
Management fees 291,677 (95,239) 196,438
General and administrative 222,339 - 222,339
Depreciation and
amortization 1,676,566 (407,497) 1,269,069
Interest 1,543,174 (361,673) 1,81,501
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Total expenses 6,953,942 (1,738,587) 5,215,355
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Income (loss) before minority
interest 336,667 (399,935) (63,268)
Minority interest (2,682) - (2,682)
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Net income (loss) $ 333,985 $ (399,935) $ (65,950)
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See accompanying note to
pro forma consolidated financial statements.
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KRUPP REALTY LIMITED PARTNERSHIP - IV AND SUBSIDIARIES
NOTE TO PRO FORMA FINANCIAL STATEMENTS
(1) Basis of Presentation
The Pro Forma Balance Sheet at June 30, 2001 is based on the historical
consolidated Balance Sheet of the Partnership as reported on Form 10-Q for
the quarter ended June 30, 2001. The Pro Forma adjustment represents an
adjustment to the Partnership's financial statements to show the effect of
the sale. The Pro Forma Consolidated Balance Sheet at June 30, 2001
reflects the balance sheet as if the sale had occurred prior to June 30,
2001.
The Pro Forma consolidated Statement of Operations for the six months ended
June 30, 2001 is based on the historical Consolidated Statement of
Operations of the Partnership as reported on Form 10-Q for the six months
ended June 30, 2001. The Pro Forma Consolidated Statement of Operations for
the year ended December 31, 2000 is based on the historical Consolidated
Statement of Operations for the Partnership as presented in the annual
report of Form 10-K for the year ended December 31, 2000. The Pro Forma
adjustments represent Fenland Field's net income for the respective period
presented. The Pro Forma Consolidated Statements of Operations for the six
months ended June 30, 2001 and for the year ended December 31, 2000 reflect
the results of operations of the Partnership as if the Partnership had sold
Fenland Field prior to January 1, 2000. The Pro Forma Consolidated
Statements of Operations do not reflect any gain or loss which may be
recognized by the Partnership as a result of the sale.
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EXHIBIT INDEX
Exhibit No. Description
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2.1 Stock Purchase Agreement dated July 27, 2001 by and among Fentil,
Inc., Krupp Realty Limited Partnership - IV and Home Properties of New
York, L.P.
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