SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported) June 16, 1999
AEI REAL ESTATE FUND XVI LIMITED PARTNERSHIP
(Exact Name of Registrant as Specified in its Charter)
State of Minnesota
(State or other Jurisdiction of Incorporation or Organization)
0-16555 41-1571166
(Commission File Number) (I.R.S. Employer
Identification No.)
1300 Minnesota World Trade Center, St. Paul, Minnesota 55101
(Address of Principal Executive Offices)
(651) 227-7333
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
Item 2. Acquisition or Disposition of Assets.
On June 16, 1999, the Partnership, AEI Real Estate
Fund XVI Limited Partnership, sold its 40% interest in a
Fuddruckers restaurant in St. Louis, Missouri to Elizabeth
Cockrum, who is not affiliated with the Partnership. The
remaining interest was sold by AEI Real Estate Fund XV
Limited Partnership, an affiliate of the Partnership. The
total cash sales price was $1,900,000.
The Partnership received net proceeds of approximately
$760,000 for its interest in the property, which resulted in
a net gain of approximately $175,000.
Item 7. Financial Statements and Exhibits.
(a) A limited number of proforma adjustments
are required to illustrate the effects of the
transaction on the balance sheet and income
statement. The following narrative
description is furnished in lieu of the
proforma statements:
Assuming the Partnership had sold the property
on January 1, 1998, the Partnership's
Investments in Real Estate would have been
reduced by $601,198 and its Current Assets
(cash) would have increased by $760,000 and
Partner's Capital would have increased by
$158,802.
The Total Income for the Partnership would
have decreased from $1,057,876 to $965,712 for
the year ended December 31, 1998 and from
$261,922 to $238,881 for three months ended
March 31, 1999 if the Partnership had not
owned the property during the periods.
Depreciation Expense would have decreased by
$11,317 and $2,511 for the year ended December
31, 1998 and the three months ended March 31,
1999, respectively.
Partnership Administration and Property
Management Expense would have decreased by
$1,741 and $134 for the year ended December
31, 1998 and the three months ended March 31,
1999, respectively.
The net effect of these proforma adjustments
would have caused Net Income to decrease from
$351,608 to $272,502 and from $147,068 to
$126,672, which would have resulted in Net
Income of $19.49 and $9.22 per Limited
Partnership Unit outstanding for the year
ended December 31, 1998 and the three months
ended March 31, 1999, respectively.
(c) Exhibits
Exhibit 10.1 - Purchase Agreement
dated February 4, 1999 between the
Partnership, AEI Real Estate Fund
XV Limited Partnership and
Elizabeth Cockrum relating to the
property at 2175 Barrett Station
Road, St. Louis, Missouri.
Exhibit 10.2 - Amendment to
Purchase Agreement dated May 19,
1999 between the Partnership, AEI
Real Estate Fund XV Limited
Partnership and Elizabeth Cockrum
relating to the property at 2175
Barrett Station Road, St. Louis,
Missouri.
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 hereunto duly
authorized.
AEI REAL ESTATE FUND XVI
LIMITED PARTNERSHIP
By: AEI Fund Management XVI, Inc.
Its: Managing General Partner
Date: June 21, 1999 /s/ Mark E Larson
By: Mark E. Larson
Its Chief Financial Officer