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) August 15, 1997
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)
(612) 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 August 15, 1997, the Partnership purchased a newly
constructed Caribou Coffee restaurant in Marietta, Georgia
from Caribou Coffee Company, Inc. The total cash purchase
price of the land and building was approximately $1,235,000.
Caribou Coffee Company, Inc. is not affiliated with the
Partnership.
The cash, used in purchasing the property, was from
the proceeds of sale of properties.
Item 7. Financial Statements and Exhibits.
(a) Financial statements of businesses acquired. -
Not Applicable. Property was newly constructed.
(b) 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 acquired the
property on January 1, 1996, the Partnership's
Investments in Real Estate would have
increased by $1,235,000 and its Current Assets
(cash) would have decreased by approximately
$1,235,000 at December 31, 1996 and June 30,
1997.
The Total Income for the Partnership would
have increased from $1,050,609 to $1,192,634
for the year ended December 31, 1996 and from
$495,921 to $566,934 for six months ended
June 30, 1997 if the Partnership had owned the
property during the periods.
Depreciation Expense would have increased by
$20,449 and $10,225 for the year ended
December 31, 1996 and the six months ended
June 30, 1997, respectively.
The net effect of these proforma adjustments
would have caused Net Income to increase from
$496,478 to $618,054 and from $211,451 to
$272,239, which would have resulted in Net
Income of $43.46 and $19.26 per Limited
Partnership Unit outstanding for the year
ended December 31, 1996 and the six months
ended June 30, 1997, respectively.
(c)Exhibits
Exhibit 10.1 - Net Lease Agreement
dated August 15, 1997 between the
Partnership and Caribou Coffee
Company, Inc. relating to the
property at 1275 Johnson Ferry
Road, Marietta, Georgia.
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: August 21, 1997 By: /s/ Mark E Larson
Mark E. Larson
Its Chief Financial Officer
(Principal Accounting and
Financial Officer)