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: February 26, 1999
LIF
(Exact name of registrant as specified in its charter)
California 2-94509 94-2969720
(State or other (Commission File No.) (I.R.S. Employer
jurisdiction of Identification No.)
incorporation)
P.O. Box 130, Carbondale, Colorado 81623
(Address of principal executive offices)
(970) 963-8007
(Registrant's telephone number, including area code)
ITEM 1. CHANGES IN CONTROL OF REGISTRANT
Not Applicable
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On February 26, 1999, the registrant sold one of its real property
investments known as Whistler Point Apartments, located in Boise,
Idaho. The property consisted of a 185 units in 13 two and three
Story luxury apartment buildings.
The buyer, Park Place Accommodators, Inc., is not affiliated with
the registrant. The sale price received by the registrant was
$9,600,000 which resulted in a gain of $3,487,000 and cash proceeds
of $3,603,000
ITEM 3. BANKRUPTCY OR RECEIVERSHIP
Not Applicable
ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANTS
Not Applicable
ITEM 5. OTHER EVENTS
Not Applicable
ITEM 6. RESIGNATION OF REGISTRANT'S DIRECTORS
Not Applicable
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(a) Financial statements of business acquired
Not Applicable
(b) Pro Forma Balance Sheet - December 31, 1998
Pro Forma Statements of Operations:
Year ended December 31, 1998.
Notes to Pro Forma Financial Statements
(c) Exhibits
Not Applicable
ITEM 8. CHANGE IN FISCAL YEAR
Not Applicable
PRO FORMA FINANCIAL STATEMENTS
The following Pro Forma Balance Sheet of the registrant as of December 31,
1998 and the Pro Forma Statement of Operations for the year ended December
31, 1998, reflects pro forma adjustments to the registrant's historical
Financial Statement assuming the property was not owned by LIF during that
time as explained in Notes to Pro Forma Financial Statements.
The Pro Forma Statement of Operations for the year ended December 31, 1998
is not necessarily indicative of the actual results that would have occurred
had the property sale been consummated at the beginning of the respective
periods or of future operations of the registrant. The Pro Formas do not take
into consideration the increase in LIF's liquidity or possible uses of those
funds.
These statements should be read in conjunction with the Notes to Pro Forma
Financial Statements.
LIF
PRO FORMA BALANCE SHEET, DECEMBER 31, 1998
(Unaudited) (Dollars in thousands)
Pro Forma
Adjustments
Add (Deduct)
December 31, 1998 (Note A) Pro Forma
ASSETS
INVESTMENTS IN REAL ESTATE:
Rental properties $ 10,370 $ (8,423) $ 1,947
Accumulated depreciation (2,958) 2,744 (214)
Rental properties - net 7,412 (5,679) 1,733
CASH 566 (289) 277
OTHER ASSETS
Accounts receivable 143 (19) 124
Prepaid expenses and deposits 23 (19) 4
Deferred expenses 72 (42) 30
Notes receivable 1,892 0 1,892
Total Other Assets 2,131 (80) 2,050
TOTAL $10,109 $ (6,049) $ 4,060
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES:
Notes payable $ 8,570 $ (5,207) $ 3,363
Accounts payable 28 (18) 10
Other liabilities 241 (244) 17
Total liabilities 8,839 (5,449) 3,390
PARTNERS' EQUITY 1,270 (600) 670
TOTAL $10,109 $ (6,048) $ 4,060
The accompanying notes are an integral part of the pro forma financial
statements.
LIF
PRO FORMA STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1998
(Unaudited) (In thousands except per unit amounts)
Pro Forma
Adjustments
Add (Deduct)
December 31, 1998 (Note B) Pro Forma
REVENUE
Rental $ 1,658 $ (1,380) $ 278
Interest 26 (5) 21
Total Revenue 1,683 (1,385) 298
EXPENSE
Interest 558 (420) 138
Operating 650 (561) 89
Depreciation and amortization 382 (313) 69
General and administration 197 (53) 144
Total expense $ 1,786 $ (1,348) $ 438
NET LOSS $ (103) $ (38) $ (142)
NET LOSS PER
PARTNERSHIP UNIT $ (8) $ (3) $ (11)
The accompanying notes are an integral part of the pro forma financial
statements.
NOTES TO PRO FORMA FINANCIAL STATEMENTS
(Dollars in thousands)
A. The Balance Sheet Pro Forma adjustments reflect the sale of the Whistler
Point Apartments as if the sale occurred on December 31, 1998.
A gain of $3,387 was recognized by the registrant which has been
adjusted for activity subsequent to December 31, 1998, and through the
date of sale (see Note B). The cost of investments in real estate,
accumulated depreciation, prepaid expenses and deposits, deferred costs,
notes payable and other liabilities have been adjusted by their
respective balances at December 31, 1998. The registrant received cash
proceeds of $3,603 from this sale.
B. The Pro Forma Statement of Operations for the year ended December 31,
1998, reflects the loss from continuing operations before reflecting
any amounts attributable to the operations of the Whistler Point Apart-
ments during 1998.
The gain of $3,487 from the property sale which has not been reflected
in the Pro Forma Statement of Operations, was determined as follows:
[CAPTION]
[S] [C]
Sale price $ 9,600
Less: selling costs (383)
Net selling price 9,217
Property basis 8,474
Accumulated depreciation
and amortization (2,744)
Net book value 5,730
Gain on sale of rental property $ 3,487
[/TABLE]
SIGNATURES
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.
Date: February 26, 1999 LIF
By: /s/ Gary K. Barr
Partners 85
Managing General Partner