UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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) October 11, 2005
MULTI-BENEFIT REALTY FUND '87-1
(Exact name of small business issuer as specified in its charter)
California 0-16684 94-3026785
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification Number)
55 Beattie Place
Post Office Box 1089
Greenville, South Carolina 29602
(Address of principal executive offices)
(Partnership's telephone number)
(864) 239-1000
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligations of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 Entry into a Material Definitive Agreement.
Multi-Benefit Realty Fund '87-1, a California limited partnership (the
"Registrant") owns a 99% interest in Hunt Club Associates, Ltd., (the
"Partnership"). The Partnership owns Hunt Club Apartments, a 200-unit apartment
complex located in Indianapolis, Indiana ("Hunt Club"). On August 16, 2005, the
Partnership and four other partnerships that own apartment complexes containing
a total of 1,324 units (the "Selling Partnerships") entered into a Purchase and
Sale Contract (the "Purchase Agreement") with a third party, Prime Quest
Management, LLC, an Illinois limited liability company (the "Purchaser"), to
sell the five apartment complexes owned by the Partnerships to the Purchaser for
a total sales price of approximately $39,131,000, of which $4,911,500
represented the sales price for Hunt Club. The Purchaser also agreed to purchase
two additional apartment complexes from affiliates of the Partnership's general
partner pursuant to two separate purchase and sale agreements. Each of the
Selling Partnerships is affiliated with AIMCO Properties, LP, an affiliate of
the Partnership's general partner.
Under the terms of the Purchase Agreement, the Purchaser could terminate the
Purchase Agreement at any time prior to the expiration of the feasibility period
as defined in the Purchase Agreement, acting in the Purchaser's sole discretion
and for any reason, upon delivery of written notice to the Selling Partnerships
and the escrow agent. On September 23, 2005, the Purchaser delivered written
notice to the Selling Partnerships and the escrow agent of its election to
terminate the Purchase Agreement pursuant to its terms. On October 11, 2005
("Reinstatement Date"), the Partnership and Purchaser entered into the
Reinstatement and Second Amendment to the Purchase and Sale Contract (the
"Reinstatement"), which had the effect of reinstating the Purchase Agreement.
The Purchase Agreement and the Reinstatement will be filed with the Registrant's
Form 10-QSB for the quarterly period ended September 30, 2005.
The Reinstatement decreased the purchase price in the Purchase Agreement to
approximately $38,501,000 of which $4,551,500 represents the sales price
allocation to Hunt Club. The Purchaser paid an additional deposit of
approximately $449,000, of which approximately $53,000 is allocated to Hunt
Club. The feasibility period has expired and both of the deposits are
nonrefundable. The closing date is now anticipated to be November 30, 2005.
There were no other material changes to the Purchase Agreement as described in
the Registrant's Current Report on Form 8-K dated August 16, 2005.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Partnership has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MULTI-BENEFIT REALTY FUND '97-1
By: ConCap Equities, Inc.
General Partner
By: /s/Martha L. Long
Martha L. Long
Senior Vice President
Date: October 17, 2005