UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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 29, 2001
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Krupp Realty Limited Partnership-VII
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Massachusetts 0-14377 04-2842924
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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)
1
Item 2. Acquisition or Disposition of Assets
Disposition of Courtyard Village Apartments
On June 12, 2001, Krupp Realty Courtyard Limited Partnership, an
entity owned by Krupp Realty Limited Partnership-VII (the
"Partnership"), entered into a Purchase and Sale Agreement to sell its
interest in Courtyard Village Apartments, a 224-unit multi-family
apartment community located in Naperville, Illinois, to Home
Properties of NY, LP, an unaffiliated party. The transaction was
consummated August 29, 2001 for consideration of $12,768,000, less the
assumption 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 June 12, 2001
by and among Krupp Realty Courtyards Limited
Partnership 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-VII
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(Registrant)
BY: /s/ David C. Quade
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David C. Quade
Treasurer (Principal Financial and
Accounting Officer) of The Krupp
Corporation, a General Partner
September 13, 2001
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PRO FORMA FINANCIAL INFORMATION
On August 29, 2001, Krupp Realty Limited Partnership-VII (the "Partnership")
sold its entire interest in Courtyard Village Apartments ("Courtyard"), to Home
Properties of New York, L.P., an unaffiliated party, for consideration of
$12,768,000.
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-VII AND SUBSIDIARIES
PRO FORMA CONSOLIDATED BALANCE SHEET
June 30, 2001
(Unaudited)
ASSETS
As Reported
on Form 10-Q Courtyard
at Pro Forma Pro Forma
June 30, 2001 Adjustments June 30, 2001
(Note 1) (Note 1) (Note 1)
------------- ----------- -------------
Multi-family apartment
communities, net of
accumulated depreciation $ 3,737,374 $ - $ 3,737,374
Multi-family apartment
communities available for
sale 3,650,276 (3,650,276) -
Cash and cash equivalents 246,635 7,586,651 7,833,286
Cash restricted for tenant
security deposits 28,022 (28,022) -
Replacement reserve escrow 77,043 (77,043) -
Due from affiliates 45,234 (17,395) 27,839
Prepaid expenses and other
assets 327,235 (154,350) 172,885
Investment in securities 65,340 - 65,340
Deferred expense, net of
accumulated amortization 92,185 (92,185) -
------------- ----------- -------------
Total assets $ 8,269,344 $ 3,567,380 $ 11,836,724
============= =========== =============
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Liabilities:
Mortgage notes payable $ 10,047,550 $(5,081,015) $ 4,966,535
Accrued expenses and
other liabilities 621,134 (287,512) 333,622
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Total liabilities 10,668,684 (5,368,527) 5,300,157
Partners' capital
(deficit) (2,399,340) 8,935,907 6,536,567
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Total liabilities
and partners' capital
(deficit) $ 8,269,344 $ 3,567,380 $ 11,836,724
============= =========== =============
See accompanying note to pro forma consolidated
financial statements.
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KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2001
(Unaudited)
As Reported Pro Forma for
on Form 10-Q the
for the Six Courtyard Sixth Months
Months Ended Pro Forma Ended
June 30, 2001 Adjustments June 30, 2001
(Note 1) (Note 1) (Note 1)
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Revenue:
Rental $ 2,109,834 $(1,040,213) $ 1,069,621
Other income 5,594 (292) 5,302
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Total revenue 2,115,428 (1,040,505) 1,074,923
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Expenses:
Operating 587,155 (295,847) 291,308
Maintenance 190,022 (110,112) 79,910
Real estate taxes 226,954 (95,631) 131,323
Management fees 92,301 (45,092) 47,209
General and administrative 158,578 - 158,578
Depreciation and
amortization 684,810 (461,998) 222,812
Interest 459,119 (200,980) 258,139
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Total expenses 2,398,939 (1,209,660) 1,189,279
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Net income (loss) $ (283,511) $ 169,155 $ (114,356)
============= =========== =============
See accompanying note to pro forma consolidated
financial statements.
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KRUPP REALTY LIMITED PARTNERSHIP-VII 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 Courtyard Ended
December 31, Pro Forma December 31,
2000 Adjustments 2000
(Note 1) (Note 1) (Note 1)
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Revenue:
Rental $ 4,184,217 $(2,069,308) $ 2,114,909
Other income 18,534 (1,346) 17,188
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Total revenue 4,202,751 (2,070,654) 2,132,097
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Expenses:
Operating 1,045,932 (510,751) 535,181
Maintenance 321,259 (185,538) 135,721
Real estate taxes 418,345 (155,910) 262,435
Management fees 185,038 (91,333) 93,705
General and administrative 197,064 - 197,064
Depreciation and
amortization 1,444,361 (985,013) 459,348
Interest 870,240 (405,015) 465,225
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Total expenses 4,482,239 (2,333,560) 2,148,679
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Net income (loss) $ (279,488) $ 262,906 $ (16,582)
============= =========== =============
See accompanying note to pro forma consolidated
financial statements.
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KRUPP REALTY LIMITED PARTNERSHIP-VII 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 Courtyard'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
Courtyard 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 June 12, 2001 by and among Krupp
Realty Courtyard Limited Partnership and Home Properties of New York,
L.P.