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) November 14, 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 Walden Pond Apartments
On November 12, 2001, Krupp Realty Limited Partnership - IV (the
"Partnership") entered into a Purchase and Sale Agreement (the
"Purchase Agreement") to sell its interest in Walden Pond Apartments,
a 416-unit multi-family apartment community located in Houston, Texas,
to Walden Pond Limited Partnership, an affiliate of the general
partner. As required by the Partnership's partnership agreement, the
Purchase Agreement and the sale subject to the Purchase Agreement was
approved by the affirmative vote of a majority of the unitholders of
the Partnership at a special meeting of such unitholders held on
November 12, 2001. The sale transaction was consummated on November
14, 2001, pursuant to which the Partnership received consideration of
$12,800,000, 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 Purchase and Sale Agreement dated November 12,
2001 by and between Krupp Realty Limited Partnership
- IV and Walden Pond Limited Partnership
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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
November 29, 2001
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PRO FORMA FINANCIAL INFORMATION
On November 14, 2001, Krupp Realty Limited Partnership-IV (the "Partnership")
sold its entire interest in Walden Pond Apartments to Walden Pond Limited
Partnership, an affiliate of the general partner, for consideration of
$12,800,000.
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 nine months ended September 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
September 30, 2001
(Unaudited)
ASSETS
As Reported
On Form 10-Q
at Walden Pond Pro Forma
September 30, Pro Forma September 30,
2001 Adjustments 2001
(Note 1) (Note 1) (Note 1)
------------ ------------ ------------
Multi-family apartment communities
held for sale $ 7,067,296 $ (3,877,593) $ 3,189,703
Cash and cash equivalents 3,241,820 6,882,191 10,124,011
Real estate tax escrows 542,696 (248,682) 294,014
Prepaid expenses and other assets 252,886 (36,098) 216,788
Investment in securities 95,516 (51,873) 43,643
Deferred expense, net of accumulated
amortization 18,950 (16,009) 2,941
------------ ------------ ------------
Total assets $ 11,219,164 $ 2,651,936 $ 13,871,100
============ ============ ============
LIABILITIES AND PARTNERS' (DEFICIT) EQUITY
Liabilities:
Mortgage notes payable $ 12,367,069 $ (5,827,327) $ 6,539,742
Due to affiliates 88,065 6,105 94,170
Other Liabilities 1,036,099 (430,280) 605,819
------------ ------------ ------------
Total liabilities 13,491,233 (6,251,502) 7,239,731
Partners' (deficit) equity (2,272,069) 8,903,438 6,631,369
------------ ------------ ------------
Total liabilities and partners'
(deficit)equity $ 11,219,164 $ 2,651,936 $ 13,871,100
============ ============ ============
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 Nine Months Ended September 30, 2001
(Unaudited)
As Reported
on Form 10-Q Pro Forma
for the Nine for the Nine
Months Ended Walden Pond Months Ended
September 30, Pro Forma September 30,
2001 Adjustments 2001
(Note 1) (Note 1) (Note 1)
------------ ------------ ------------
Revenue:
Rental $ 5,150,000 $ (1,854,702) $ 3,295,298
Other income 100,084 (24,631) 75,453
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Total revenue 5,250,084 (1,879,333) 3,370,751
------------ ------------ ------------
Expenses:
Operating 1,399,175 (516,957) 882,218
Maintenance 371,845 (100,530) 271,315
Real estate taxes 547,662 (224,579) 323,083
Management fees 227,456 (66,226) 161,230
General and administrative 270,777 - 270,777
Depreciation and amortization 1,155,927 (542,212) 613,715
Interest 1,050,154 (360,908) 689,246
------------ ------------ ------------
Total expenses 5,022,996 (1,811,412) 3,211,584
------------ ------------ ------------
Income before minority interest and
gain on sale of property 227,088 (67,921) 159,167
Minority interest (3,369) 679 (2,690)
Gain on sale of property 12,219,145 - 12,219,145
------------ ------------ ------------
Net income $ 12,442,864 $ (67,242) $ 12,375,622
============ ============ ============
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 Pro Forma
for the Year for the Year
Ended Walden Pond Ended
December 31, Pro Forma December 31,
2000 Adjustments 2000
(Note 1) (Note 1) (Note 1)
------------ ------------ ------------
Revenue:
Rental $ 7,213,565 $ (2,471,303) $ 4,742,262
Other income 77,044 (37,470) 39,574
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Total revenue 7,290,609 (2,508,773) 4,781,836
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Expenses:
Operating 1,846,098 (682,414) 1,163,684
Maintenance 557,813 (125,393) 432,420
Real estate taxes 816,275 (342,673) 473,602
Management fees 291,677 (93,778) 197,899
General and administrative 222,339 - 222,339
Depreciation and amortization 1,676,566 (732,123) 944,443
Interest 1,543,174 (592,379) 950,795
------------ ------------ ------------
Total expenses 6,953,942 (2,568,760) 4,385,182
------------ ------------ ------------
Income before minority interest 336,667 59,987 396,654
Minority interest (2,682) (600) (3,282)
------------ ------------ ------------
Net income $ 333,985 $ 59,387 $ 393,372
============ ============ ============
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 September 30, 2001 is based on the
historical consolidated Balance Sheet of the Partnership as reported on
Form 10-Q for the quarter ended September 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 September 30, 2001 reflects the balance sheet as if the
sale had occurred prior to September 30, 2001.
The Pro Forma consolidated Statement of Operations for the nine months
ended September 30, 2001 is based on the historical Consolidated Statement
of Operations of the Partnership as reported on Form 10-Q for the nine
months ended September 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 Walden Pond's net income for the respective
period presented. The Pro Forma Consolidated Statements of Operations for
the nine months ended September 30, 2001 and for the year ended December
31, 2000 reflect the results of operations of the Partnership as if the
Partnership had sold Walden Pond 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
2.1 Purchase and Sale Agreement dated November 12, 2001 by and between
Krupp Realty Limited Partnership - IV and Walden Pond Limited
Partnership. [Incorporated by reference to Exhibit (d) to the Rule
13e-3 Transaction Statement filed by the Registrant on November 14,
2001 (File No. 0-11987).]
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