FORM 8-K - CURRENT REPORT 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) September 10, 1999 CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/2 (Exact name of registrant as specified in its charter) California 0-11723 94-2883067 (State or other (Commission (I.R.S. Employer jurisdiction of File Number) Identification Number) incorporation) 55 Beattie Place Post Office Box 1089 Greenville, South Carolina 29602 (Address of principal executive offices) (Registrant's telephone number) (864) 239-1000 N/A (Former name or former address, if changed since last report) Item 5. Other Events Consolidated Capital Institutional Properties/2 (the "Partnership" or "Registrant") was formed for the benefit of its limited partners to lend funds to Consolidated Capital Equity Partners/2 ("CCEP/2"). The Partnership loaned funds to CCEP/2 subject to a nonrecourse note with a participation interest (the "Master Loan"). As of June 30, 1999, the Partnership's investment in the Master Loan was approximately $79,537,000, less an allowance for impairment loss of approximately $29,129,000, for a net balance of approximately $50,408,000. On September 10, 1999, CCEP/2 sold Lasher One, Lasher Two, Cresent Centre, Central Park Place, and Central Park Plaza, five of its properties located in Southfield, Michigan which secured the Master Loan, to an unaffiliated third party for net sales proceeds of approximately $24,000,000 after payment of closing costs. CCEP/2 realized a gain on sale of approximately $11,000,000. The net proceeds from the sale will be paid to the Registrant as payment on the Master Loan. The Registrant is currently evaluating its cash needs to determine what portion of the funds can be distributed to its partners in the near future. Item 7. Financial Statements and Exhibits (c) Exhibits 10.25 Purchase and Sale Contract between Registrant and Southfield Office Properties, LLC effective September 10, 1999. 10.26 Second Amendment to Purchase and Sale Contract 10.27 Reinstatement of and Third Amendment to Purchase and Sale Contract. 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 hereunto duly authorized. CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/2 By: ConCap Equities, Inc. Its General Partner By: /s/Patrick J. Foye Patrick J. Foye Executive Vice President and Director Date: September 22, 1999