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): May 30, 1997
ARVIDA/JMB PARTNERS, L.P. - II
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(Exact name of registrant as specified in its charter)
Illinois 0-19245 58-1809884
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(State or other) (Commission (IRS Employer
Jurisdiction of File Number) Identification No.)
Organization
900 N. Michigan Avenue, Chicago, Illinois 60611-1575
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(Address of principal executive office)
Registrant's telephone number, including area code: (312) 915-1987
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ITEM 2. DISPOSITION OF ASSETS. On May 30, 1997, Arvida/JMB Partners, L.P.-
II (the "Partnership") closed on the sale of its Talega Property,
consisting of approximately 2,290 acres of land in southern Orange County,
California and related assets (the "Property"), to Talega Associates, LLC
(the "Buyer"). The Buyer is not affiliated with the Partnership or its
General Partner, and the sale price was determined by arm's-length
negotiations and approved by the Partnership's lender. The gross sale
price was $31,100,000. In conjunction with the sale of its Property, the
Partnership paid all current and delinquent property taxes, including
penalties and interest. The Partnership also reached an agreement with the
Santa Margarita Water District resulting in an agreed upon amount due with
respect to the Partnership's tax exempt bond financing. This amount was
paid at closing, at which time the Partnership received a full and
unconditional release from the Santa Margarita Water District. In
addition, all contractual obligations of the Partnership with respect to
the Property were assumed by the Buyer. The net proceeds from the sale,
after prorations and closing costs, totaled $19,144,718. Of this amount,
$18,844,718 was applied against the outstanding principal balance on the
Partnership's term loans, and $300,000 was deposited to fund the
Partnership's expenses. As previously reported, the Partnership had
reduced its basis for financial reporting purposes to zero through loss
provisions. The sale of the Property resulted in a gain of approximately
$32.2 million for financial reporting purposes and an ordinary loss of
approximately $154.8 million for Federal income tax purposes. The gain for
financial reporting purposes exceeds the gross sale price due to the write-
off of an obligation related to the Property for which the Partnership is
no longer liable.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements of business acquired
Not applicable.
(b) Pro Forma Financial Information
See attached.
(c) Exhibits
2.1. Agreement for Sale and Purchase of Real Property
dated October 25, 1996 by and between Arvida/JMB Partners, L.P. - II and
Starwood/ Talega Associates, L.L.C. for the sale of certain real property
within the Talega Property is incorporated by reference to Exhibit 10.16 to
the Partnership's report for September 30, 1996 on Form 10-Q (File No. 0-
19245) filed with the Securities and Exchange Commission dated November 8,
1996.
2.2. Amendment dated March 18, 1997 to Agreement for
Purchase and Sale of Real Property by and between Arvida/JMB Partners,
L.P.-II and Starwood/Talega Associates, L.L.C. for the sale of certain real
property within the Talega Property is incorporated by reference to Exhibit
10.9 to the Partnership's report for December 31, 1996 on Form 10-K (File
No. 0-19245) filed with the Securities and Exchange Commission dated March
21, 1997.
2.3. Amendment dated December 9, 1996 to Agreement for
Purchase and Sale of Real Property and Escrow Instructions by and between
Arvida/JMB Partners, L.P.-II and Starwood/Talega Associates, L.L.C. for the
sale of certain real property within the Talega Property is filed herewith.
2.4. Amendment dated May 20, 1997 to Agreement for
Purchase and Sale of Real Property and Escrow Instructions by and between
Arvida/JMB Partners, L.P.-II and Starwood/Talega Associates, L.L.C. for the
sale of certain real property within the Talega Property is filed herewith.
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.
ARVIDA/JMB PARTNERS, L.P. - II
BY: Arvida/JMB Managers-II, Inc.
(The General Partner)
GAILEN J. HULL
By: Gailen J. Hull
Senior Vice President
Dated: June 16, 1997
PROFORMA FINANCIAL INFORMATION
Arvida/JMB Partners, L.P. - II
(A Limited Partnership)
And Consolidated Venture
Consolidated Balance Sheet
Pro Forma
Historical Adjustments Pro Forma
March 31, for Disposi- March 31,
1997 tion (1) 1997
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ASSETS
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Cash and cash
equivalents . . . . . . .$ 247,698 247,698
Restricted cash . . . . . . 756,815 300,000 1,056,815
Trade and other accounts
receivable (net of
allowance for doubtful
accounts of $62,690
at March 31, 1997) . . . . 31,041 31,041
Real estate inventories . . 57,598 57,598
Property and equipment
held for sale or
disposition. . . . . . . . 2,701,441 2,701,441
Prepaid expenses and
other assets . . . . . . . 755,415 755,415
------------ ----------- ------------
Total assets. . . . . .$ 4,550,008 300,000 4,850,008
============ =========== ============
LIABILITIES
- -----------
Bank overdrafts . . . . . .$ 6,395 6,395
Accounts payable. . . . . . 132,707 132,707
Deposits. . . . . . . . . . 49,212 49,212
Accrued expenses and
other liabilities. . . . . 34,088,179 (11,599,796) 22,488,383
Amounts due to
affiliates . . . . . . . . 7,623,430 7,623,430
Notes and mortgages
payable (in default) . . . 78,769,410 (18,844,718) 59,924,692
------------ ----------- ------------
Commitments and
contingencies
Total liabilities . . . 120,669,333 (30,444,514) 90,224,819
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PROFORMA FINANCIAL INFORMATION
Arvida/JMB Partners, L.P. - II
(A Limited Partnership)
And Consolidated Venture
Consolidated Balance Sheet - Continued
Pro Forma
Historical Adjustments Pro Forma
March 31, for Disposi- March 31,
1997 tion (1) 1997
------------ ------------ -----------
Partners' capital
accounts (deficits):
General Partner and
Associated Limited
Partner:
Capital contributions. . 2,000 2,000
Cumulative net loss. . . (8,720,336) 307,445 (8,412,891)
Cumulative cash
distributions. . . . . (246,771) (246,771)
------------ ----------- ------------
(8,965,107) 307,445 (8,657,662)
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Limited partners:
Capital contributions. . 209,753,671 209,753,671
Cumulative net loss. . .(307,686,715) 30,437,069 (277,249,646)
Cumulative cash
distributions . . . . . (9,221,174) (9,221,174)
------------ ----------- ------------
(107,154,218) 30,437,069 (76,717,149)
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Total partners'
deficits . . . . . . .(116,119,325) 30,744,514 (85,374,811)
------------ ----------- ------------
Total liabilities
and partners'
deficits . . . . . . .$ 4,550,008 300,000 4,850,008
============ =========== ============
(1) The 1997 unaudited pro forma consolidated financial statements give
effect to the sale of the Partnership's Talega Property (the "Talega
disposition"), as if the Talega disposition had occurred, for balance sheet
purposes, on March 31, 1997 and, for statement of operation purposes, on
January 1, 1997. The unaudited pro forma consolidated statement of
operations for the year ended December 31, 1996 gives effect to the Talega
disposition as if it had occurred on January 1, 1996.
PROFORMA FINANCIAL INFORMATION
Arvida/JMB Partners, L.P. - II
(A Limited Partnership)
And Consolidated Venture
Consolidated Statement of Operations
Pro Forma
Historical Adjustments Pro Forma
March 31, for Disposi- March 31,
1997 tion (1) 1997
------------ ------------ -----------
Revenues:
Housing. . . . . . . . . . $ -- --
Homesites. . . . . . . . . -- --
Operating properties . . . 218,623 218,623
Brokerage and other
operations. . . . . . . . -- --
----------- ----------- -----------
Total revenues. . . . . 218,623 0 218,623
----------- ----------- -----------
Cost of revenues:
Housing. . . . . . . . . . -- --
Homesites. . . . . . . . . -- --
Operating properties . . . 108,388 108,388
Brokerage and other
operations. . . . . . . . -- --
----------- ----------- -----------
Total cost of
revenues . . . . . . . 108,388 0 108,388
----------- ----------- -----------
Gross operating profit. . . 110,235 0 110,235
Selling, general and
administrative expenses. . (195,726) 59,784 (135,942)
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Net operating loss. . . (85,491) 59,784 (25,707)
Interest income . . . . . . 11,476 -- 11,476
Interest and real estate
taxes. . . . . . . . . . . (3,624,125) 1,895,856 (1,728,269)
----------- ----------- -----------
Net loss. . . . . . . . $(3,698,140) 1,955,640 (1,742,500)
=========== =========== ===========
Net loss per
Limited Partner-
ship Interest. . . . . $ (14.63) 7.26 (7.37)
=========== =========== ===========
(1) The 1997 unaudited pro forma consolidated financial statements give
effect to the sale of the Partnership's Talega Property (the "Talega
disposition"), as if the Talega disposition had occurred, for balance sheet
purposes, on March 31, 1997 and, for statement of operation purposes, on
January 1, 1997. The unaudited pro forma consolidated statement of
operations for the year ended December 31, 1996 gives effect to the Talega
disposition as if it had occurred on January 1, 1996.
PROFORMA FINANCIAL INFORMATION
Arvida/JMB Partners, L.P. - II
(A Limited Partnership)
And Consolidated Venture
Consolidated Statement of Operations
Pro Forma
Historical Adjustments Pro Forma
December 31, for Disposi- December 31,
1996 tion (1) 1996
------------ ------------ -----------
Revenues:
Housing. . . . . . . . . .$ 140,810 140,810
Homesites. . . . . . . . . 1,243,074 1,243,074
Land and property. . . . . 20,286,616 (225,000) 20,061,616
Operating properties . . . 3,315,655 3,315,655
Brokerage and other
operations. . . . . . . . 767,065 (19,296) 747,769
----------- ----------- -----------
Total revenues. . . . . 25,753,220 (244,296) 25,508,924
----------- ----------- -----------
Cost of revenues:
Housing. . . . . . . . . . 336,186 336,186
Homesites. . . . . . . . . 1,075,568 1,075,568
Land and property. . . . . 14,115,847 14,115,847
Operating properties . . . 3,023,179 3,023,179
Brokerage and other
operations. . . . . . . . 600,742 600,742
----------- ----------- -----------
Total cost of revenues. 19,151,522 0 19,151,522
----------- ----------- -----------
Gross operating profit. . . 6,601,698 (244,296) 6,357,402
Selling, general and
administrative expenses. . (1,999,640) 328,480 (1,671,160)
----------- ----------- -----------
Net operating income. . 4,602,058 84,184 4,686,242
Interest income . . . . . . 28,484 28,484
Interest and real
estate taxes . . . . . . . (12,264,066) 4,879,533 (7,384,533)
----------- ----------- -----------
Loss before extra-
ordinary item. . . . . (7,633,524) 4,963,717 (2,669,807)
Extraordinary item:
Gain on early
extinguishment of
debt. . . . . . . . . 20,000,000 20,000,000
----------- ----------- -----------
Net income. . . . . . . $12,366,476 4,963,717 17,330,193
=========== =========== ===========
Net income per limited
partnership interest
before extraordinary
item . . . . . . . . . $ 64.05 13.62 77.67
=========== =========== ===========
Net income per
limited partnership
interest . . . . . . . $ 64.05 13.62 77.67
=========== =========== ===========
(1) The 1997 unaudited pro forma consolidated financial statements give
effect to the sale of the Partnership's Talega Property (the "Talega
disposition"), as if the Talega disposition had occurred, for balance sheet
purposes, on March 31, 1997 and, for statement of operation purposes, on
January 1, 1997. The unaudited pro forma consolidated statement of
operations for the year ended December 31, 1996 gives effect to the Talega
disposition as if it had occurred on January 1, 1996.