SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K/A
Amendment No. 1 to
Current Report
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Original Report: September 30, 1997
CORNERSTONE REALTY INCOME TRUST, INC.
(Exact name of registrant as specified in its charter)
VIRGINIA 0-23954 54-1589139
(State of (Commission (IRS Employer
Incorporation) File Number) Identification No.)
306 East Main Street
Richmond, Virginia 23219
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code:
(804) 643-1761
CORNERSTONE REALTY INCOME TRUST, INC.
FORM 8-K/A
Index
Page No.
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits
a. Independent Auditors' Report
(Clarion Crossing Apartments)
Historical Statement of Income
and Direct Operating Expenses
(Clarion Crossing Apartments)
Note to Historical Statement of Income
and Direct Operating Expenses
(Clarion Crossing Apartments)
b. Pro Forma Statement of Operations for
the Nine Months ended September 30, 1997
(unaudited)
Pro Forma Statement of Operations
for the year ended December 31, 1996
(unaudited)
c. Exhibit
23.1 Consent of Independent Auditors
(Clarion Crossing Apartments)
The Company hereby amends Items 7.a., 7.b. and 7.c. of its Current
Report on Form 8-K dated September 30, 1997 as follows:
ITEM 7.a.
[LETTERHEAD]
L.P. MARTIN & COMPANY
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
4132 INNSLAKE DRIVE
GLEN ALLEN, VA 23060
PHONE: (804) 346-2626
FAX: (804) 346-9311
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Cornerstone Realty Income Trust, Inc.
Richmond, Virginia
We have audited the accompanying statement of income and direct operating
expenses exclusive of items not comparable to the proposed future operations of
the property Clarion Crossing Apartments located in Raleigh, North Carolina for
the twelve month period ended August 31, 1997. This statement is the
responsibility of the management of Clarion Crossing Apartments. Our
responsibility is to express an opinion on this statement based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the statement is free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the statement. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall presentation of the statement. We believe that
our audit provides a reasonable basis for our opinion.
The accompanying statement was prepared for the purpose of complying with the
rules and regulations of the Securities and Exchange Commission (for inclusion
in a filing by Cornerstone Realty Income Trust, Inc.) and excludes material
expenses, described in Note 2 to the statement, that would not be comparable to
those resulting from the proposed future operations of the property.
In our opinion, the statement referred to above presents fairly, in all
material respects, the income and direct operating expenses of Clarion Crossing
Apartments (as defined above) for the twelve month period ended August 31, 1997,
in conformity with generally accepted accounting principles.
/s/L.P. Martin & Co., P.C.
Richmond, Virginia
November 11, 1997
CLARION CROSSING APARTMENTS
STATEMENT OF INCOME AND DIRECT OPERATING EXPENSES EXCLUSIVE OF
ITEMS NOT COMPARABLE TO THE PROPOSED FUTURE
OPERATIONS OF THE PROPERTY
TWELVE MONTH PERIOD ENDED AUGUST 31, 1997
INCOME
Rental and Other Income $ 1,521,964
-------------------
DIRECT OPERATING EXPENSES
Administrative and Other 149,735
Insurance 11,932
Repairs and Maintenance 382,469
Taxes, Property 67,620
Utilities 57,905
-------------------
TOTAL DIRECT OPERATING EXPENSES 669,661
-------------------
Operating income exclusive of items not
comparable to the proposed future operations
of the property $ 852,303
=====================
See accompanying notes to the financial statement.
CLARION CROSSING APARTMENTS
NOTES TO THE STATEMENT OF INCOME AND DIRECT OPERATING EXPENSES
EXCLUSIVE OF ITEMS NOT COMPARABLE TO THE PROPOSED FUTURE
OPERATIONS OF THE PROPERTY
TWELVE MONTH PERIOD ENDED AUGUST 31, 1997
NOTE 1 - ORGANIZATION
Clarion Crossing Apartments is a 228 unit garden and townhouse style apartment
complex located on 22.80 acres in Raleigh, North Carolina. The assets
comprising the property were owned by an entity unaffiliated with Cornerstone
Realty Income Trust, Inc. during the financial statement period. Cornerstone
Realty Income Trust, Inc. subsequently purchased the property.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenue and Expense Recognition - The accompanying statement of rental
operations has been prepared using the accrual method of accounting. In
accordance with Rule 3-14 of Regulation S-X of the Securities and Exchange
Commission, the statement of income and direct operating expenses excludes
interest and non rent related income and expenses not considered comparable to
those resulting from the proposed future operations of the property. Excluded
expenses are mortgage interest, property depreciation, amortization,
professional fees and management fees.
Estimates - The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Repairs and Maintenance - Repairs and maintenance costs are expensed as
incurred, while significant improvements, renovations and replacements are
capitalized.
Advertising - Advertising costs are expensed in the period incurred.
ITEM 7.b.
Pro Forma Statement of Operations for the nine months ended September 30, 1997
(unaudited)
The Unaudited Pro Forma Statement of Operations for the nine-month period ended
September 30, 1997 is presented as if 8 of the 10 Property acquisitions during
1997 had occurred on January 1, 1997. The Unaudited Pro Forma Statement of
Operations assumes the Company qualifying as a REIT, distributing at least 95%
of its taxable income, and, therefore, incurred no federal income tax liability
for the period presented. In the opinion of management, all adjustments
necessary to reflect the effects of these transactions have been made.
The Unaudited Pro Forma Statement of Operations is presented for comparative
purposes only and is not necessarily indicative of what the actual results of
the Company would have been for the period ended September 30, 1997 if the
acquisitions had occurred at the beginning of the period presented, nor does it
purport to be indicative of the results of operations in future periods. The
Unaudited Pro Forma Statement of Operations should be read in conjunction with,
and is qualified in its entirety by, the respective historical financial
statements and notes thereto of the Company incorporated by reference into this
Prospectus.
Historical Westchase Paces Arbor Paces Forest
Statement of Pro Forma Pro Forma Pro Forma
Operations Adjustments Adjustments Adjustments
-------------------------------------------------------------------
Date of Acquisitions - 1/15/97 3/1/97 3/1/97
Revenues from rental properties $ 50,231,191 $ 166,656 $ 128,993 $ 154,702
Other Income $ 1,476,041
Rental expenses:
Utilities 4,473,112 12,070 3,888 4,815
Repairs and maintenance 5,219,198 25,811 19,399 19,103
Taxes and insurance 4,390,206 16,024 8,094 9,108
Property management 4,119,974 -- -- --
Advertising 1,414,648 4,139 3,154 3,298
General and administrative 1,252,892 -- -- --
Amortization and other depreciation 58,216 -- -- --
Depreciation of rental property 10,791,653 -- -- --
Other operating expenses 1,075,247 -- -- --
Other -- 12,416 9,461 9,894
Management contract termination 413,752 -- -- --
------------------------------------------------------------
33,208,898 70,460 43,996 46,218
Income before interest income (expense) 18,498,334 96,196 84,997 108,484
Interest income 209,947 -- -- --
Interest expense (4,840,391) -- -- --
------------------------------------------------------------
Net Income $ 13,867,890 $ 96,196 $ 84,997 $ 108,484
Net income per share $ 0.44
============
Wgt. avg. number of shares outstanding 31,672,928
============
Ashley Run Carlyle Charleston Dunwoody
Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustments
--------------- -----------------------------------------------
Date of Acquisitions 4/30/97 4/30/97 5/13/97 7/25/97
Revenues from rental properties $ 916,820 $ 637,842 536,210 1,437,230
Other Income
Rental expenses:
Utilities 58,045 63,946 21,211 112,736
Repairs and maintenance 119,001 92,405 75,528 219,843
Taxes and insurance 69,240 46,970 34,987 144,766
Property management -- -- -- --
Advertising 17,373 12,343 18,267 29,839
General and administrative -- -- -- --
Amortization and other depreciation -- -- -- --
Depreciation of rental property -- -- -- --
Other operating expenses -- -- -- --
Other 52,118 37,029 54,801 89,517
Management contract termination -- -- -- --
--------------- -------------------------------------------
315,777 252,693 204,794 596,701
Income before interest income (expense) 601,043 385,149 331,416 840,529
Interest income -- -- -- --
Interest expense -- -- -- --
--------------- -----------------------------------------------
Net Income $ 601,043 $ 385,149 $ 331,416 $ 840,529
Net income per share
Wgt. avg. number of shares outstanding
Clarion 1997
Pro Forma Pro Forma Total
Adjustments Adjustments Pro Forma
-----------------------------------------------
Date of Acquisitions 9/30/97 -
Revenues from rental properties 1,141,473 -- $ 55,351,117
Other Income 1,476,041
Rental expenses:
Utilities 43,429 -- 4,793,252
Repairs and maintenance 286,852 -- 6,077,140
Taxes and insurance 59,664 -- 4,779,059
Property management -- 4,119,974
Advertising 28,075 -- 1,531,136
General and administrative -- 1,252,892
Amortization and other depreciation -- 58,216
Depreciation of rental property 896,569 (A) 11,688,222
Other operating expenses -- 1,075,247
Other 84,226 -- 349,462
Management contract termination -- 413,752
-------------------------------- ---------
502,246 896,569 36,138,352
Income before interest income (expense) 639,227 (896,569) 20,688,806
Interest income -- -- 209,947
Interest expense -- (951,044)(B) (5,791,435)
--------------------------- ---------
Net Income $ 639,227 ($ 1,847,613) $ 15,107,318
Net income per share $ 0.44
============
Wgt. avg. number of shares outstanding 2,722,059 (C) 34,394,98
=========== ============
(A) Represents the depreciation expense of the properties acquired based on the
purchase price,excluding amounts allocated to land, of the properties for the
period of time not owned by the Company. The weighted average life of the
property depreciated was 27.5 years.
(B) Represents the interest expense for 5 of the 10 Properties for the period in
which the properties were not owned for the nine month period ended September
30, 1997, interest was computed based on interest rates under the Company's line
of credit in effect at the time of the respective acquisition.
(C) Represents additional common shares used to purchase Ashley Run, Carlyle,
Summit and a portion of Dunwoody based upon purchase prices of $18,000,000,
$11,580,000, $9,475,000 and $10,560,312 (total purchase price of $15,200,000),
respectively and common shares issued in April, 1997 with net proceeds of
$9.5875 per share to the Company.
Pro Forma Statement of Operations for the year
ended December 31, 1996 (unaudited)
The Unaudited Pro Forma Statement of Operations for the year ended December 31,
1996 is presented as if 20 of the 21 Property acquisitions during 1996 and 8 of
the 10 Property acquisitions during 1997 had occurred on January 1, 1996.
The Unaudited Pro Forma Statement of Operations assumes the Company qualifying
as a REIT, distributing at least 95% of its taxable income, and, therefore,
incurred no federal income tax liability for the period presented. In the
opinion of management, all adjustments necessary to reflect the effects
of these transactions have been made.
The Unaudited Pro Forma Statement of Operations is presented for comparative
purposes only and is not necessarily indicative of what the actual results of
the Company would have been for the period ended December 31, 1996 if the
acquisitions had occurred at the beginning of the period presented, nor does it
purport to be indicative of the results of operations in future periods. The
Unaudited Pro Forma Statement of Operations should be read in conjunction with,
and is qualified in its entirety by, the respective historical financial
statements and notes thereto of the Company incorporated by reference into this
Prospectus.
Historical Pro Forma Westchase
Statement of 1996 Pro Forma Before 1997 Pro Forma
Operations Acquisitions Adjustments Acquisitions Adjustments
----------------------------------------------------------------------------
Date of Acquisitions - - 1/15/97
Revenues from rental properties $ 40,352,955 $ 11,707,374 -- $ 52,060,329 $ 1,999,870
Rental expenses:
Utilities 3,870,541 816,694 -- 4,687,235 144,841
Repairs and maintenance 4,203,180 1,883,845 -- 6,087,025 309,732
Taxes and insurance 3,275,422 947,968 -- 4,223,390 192,289
Property management fee 1,243,215 -- 603,961(A) 1,847,176 --
Property management 741,257 -- -- 741,257 --
Advertising 1,126,295 306,249 -- 1,432,544 49,665
General and administrative 1,495,528 -- 97,860(B) 1,593,388 --
Amortization and other depreciation 47,133 -- -- 47,133 --
Depreciation of rental property 8,068,063 -- 2,513,278(C) 10,581,341 --
Other operating expenses 2,638,183 -- -- 2,638,183 --
Other 151,537 927,643 -- 1,079,180 148,994
Management contract termination 16,526,012 -- -- 16,526,012 --
-------------------------------------------------------------------------
43,386,366 4,882,399 3,215,099 51,483,864 845,521
Income before interest income (expense) (3,033,411) 6,824,975 (3,215,099) 576,465 1,154,349
Interest income 287,344 -- -- 287,344 --
Interest expense (1,423,782) -- (2,991,838)(D) (4,415,620) --
----------------------------------------------------------------------------
Net Income ($ 4,169,849) $ 6,824,975 ($ 6,206,937) ($ 3,551,811) $ 1,154,349
Net income per share ($0.21) ($0.14)
======= =======
Wgt. avg. number of shares outstanding 20,210,432 4,693,325(E) 24,903,757
========== ============ ============
Paces Arbor Paces Forest Ashley Run Caryle Charleston
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustments Adjustments
----------------------------------------------------------------------------
Date of Acquisitions 3/1/97 3/1/97 4/30/97 4/30/97 5/13/97
Revenues from rental properties $ 773,960 $ 928,214 $2,750,461 $1,913,527 1,429,893
Rental expenses:
Utilities 23,325 28,891 174,135 191,838 56,563
Repairs and maintenance 116,391 114,620 357,004 277,214 201,408
Taxes and insurance 48,563 54,649 207,720 140,909 93,299
Property management fee -- -- -- --
Property management -- -- -- --
Advertising 18,921 19,788 52,118 37,029 48,712
General and administrative -- -- -- --
Amortization and other depreciation -- -- -- --
Depreciation of rental property -- -- -- --
Other operating expenses -- -- -- --
Other 56,764 59,364 156,355 111,086 146,137
Management contract termination -- -- -- -- --
------------- ---------------------------------------------------------
263,964 277,312 947,332 758,076 546,119
Income before interest income (expense) 509,996 650,902 1,803,129 1,155,451 883,774
Interest income -- -- -- -- --
Interest expense -- -- -- -- --
------------ --------------------------------------------------------
Net Income $ 509,996 $ 650,902 $1,803,129 $1,155,451 $ 883,774
Net income per share
Wgt. avg. number of shares outstanding
Dunwoody Clarion
Pro Forma Pro Forma Pro Forma Total
Adjustments Adjustments Adjustments Pro Forma
--------------------------------------------------------------------
Date of Acquisitions 7/25/97 9/30/97
Revenues from rental properties 2,463,823 1,521,964 -- $ 65,842,041
Rental expenses:
Utilities 193,261 57,905 -- 5,557,994
Repairs and maintenance 376,874 382,469 -- 8,222,737
Taxes and insurance 248,171 79,552 -- 5,288,542
Property management fee $ 498,450 (A) 2,345,626
Property management -- 741,257
Advertising 51,152 37,434 -- 1,747,363
General and administrative -- 1,593,388
Amortization and other depreciation -- 47,133
Depreciation of rental property 2,461,452 (C) 13,042,793
Other operating expenses -- -- 2,638,183
Other 153,455 112,301 -- 2,023,636
Management contract termination -- -- 16,526,012
------------ -------------------------------- ------------
1,022,913 669,661 2,959,902 59,774,664
Income before interest income (expense) 1,440,910 852,303 (2,959,902) 6,067,377
Interest income -- -- -- 287,344
Interest expense -- -- (2,761,996)(D) (7,177,616)
------------- ------------------------------------ ------------
Net Income $1,440,910 $ 852,303 ($ 5,721,898) ($ 822,895)
Net income per share ($ 0.03)
===========
Wgt. avg. number of shares outstanding 5,175,000 (F) 30,078,757
============ ============
(A) Represents the property management fee of 5% of rental income and the
processing costs equal to $2.50 per apartment unit per month charged by the
external management company for the period of time not owned by the Company
until the management contract was terminated in September, 1996.
(B) Represents the advisory fee of .25% of accumulated capital contributions
under the "best efforts" offering for the period of time not owned by the
Company until the time the advisor contract was terminated in September, 1996.
(C) Represents the depreciation expense of the properties acquired based on
the purchase price, excluding amounts allocated to land, of the properties
for the period of time not owned by the Company. The weighted average life of
the property depreciated was 27.5 years.
(D) Represents the interest expense for the properties for the period in which
the properties were not owned for the year ended December 31, 1996, interest
was computed based on interest rates under the Company's line of credit in
effect at the time of the respective acquisition.
(E) Represents additional common shares used to purchase 16 of the 21
properties purchased during 1996 using the proceeds of the "best efforts"
common stock offering with net proceeds of $9.79 per share to the Company.
(F) Represents additional common shares used to purchase Ashley Run, Carlyle,
Summit and a portion of Dunwoody based upon purchase prices of $18,000,000,
$11,580,000, $9,475,000 and $10,560,312 (total purchase price of
$15,200,000), respectively and common shares issued in April, 1997 with net
proceeds of $9.5875 per share to the Company.
Pro Forma Statement of Operations for the year ended December 31, 1996
(unaudited)
The following schedule provides detail of 1996 acquisitions by property included
in the Pro Forma Statement of Operations for the year ended December 31, 1996.
Meadows West Eagle Ashley Park Arbor Trace Bridgetown Trophy Chase
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustments Adjustments Adjustments
------------------------------------------------------------------------------
Date of Acquisition 1/31/96 3/31/96 3/1/96 3/1/96 4/1/96 4/1/96
Property operations
Revenues from rental properties $ 90,006 $127,302 $284,403 $138,795 $186,114 $217,183
Rental expenses:
Utilities 7,903 7,327 16,769 14,849 9,440 21,899
Repairs and maintenance 14,553 22,819 39,027 19,702 25,542 39,180
Taxes and insurance 5,273 9,776 27,496 10,819 14,262 13,830
Property management -- -- -- -- -- --
Advertising 1,484 3,066 3,213 3,215 5,455 5,819
General and administrative -- -- -- -- -- --
Amortization -- -- -- -- -- --
Depreciation of rental property -- -- -- -- -- --
Other 4,452 9,198 18,542 9,645 16,367 17,458
-------- -------- -------- -------- -------- --------
--------
33,665 52,186 105,047 58,230 71,066 98,186
-------- -------- -------- -------- -------- --------
Income before interest income (expense) 56,341 75,116 179,356 80,565 115,048 118,997
Interest income -- -- -- -- -- --
Interest expense -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net Income $ 56,341 $ 75,116 $179,356 $ 80,565 $115,048 $118,997
-------- -------- -------- -------- -------- --------
Beacon Hill Summerwalk The Landin Meadowcreek Trolley East
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustments Adjustments
----------- ----------- ----------- ----------- -----------
Date of Acquisition 5/1/96 5/1/96 5/1/96 5/31/96 6/26/96
Property operations
Revenues from rental properties $684,622 $297,115 $418,247 $671,043 $345,237
Rental expenses: --
Utilities 48,373 23,038 30,473 32,330 62,247
Repairs and maintenance 68,173 59,973 68,918 90,083 97,819
Taxes and insurance 58,443 15,663 38,620 50,931 41,086
Property management -- -- -- -- --
Advertising 12,974 7,559 10,041 12,198 10,293
General and administrative -- -- -- -- --
Amortization -- -- -- -- --
Depreciation of rental property -- -- -- -- --
Other 38,922 22,676 30,122 36,593 30,878
-------- -------- -------- -------- --------
226,885 128,909 178,174 222,135 242,323
-------- -------- -------- -------- --------
Income before interest income (expense) 457,737 168,206 240,073 448,908 102,914
Interest income -- -- -- -- --
Interest expense -- -- -- -- --
-------- -------- -------- -------- --------
Net Income $457,737 $168,206 $240,073 $448,908 $102,914
-------- -------- -------- -------- --------
Savannah Paces Glen Signature Hampton Glen Heatherwood
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustments Adjustments
----------- ----------- ----------- ----------- -----------
Date of Acquisition 7/1/96 7/19/96 8/1/96 8/1/96 9/1/96
Property operations
Revenues from rental properties $1,038,285 $ 628,639 $ 509,713 $ 970,246 $1,077,164
Rental expenses:
Utilities 102,411 39,060 25,951 56,883 45,391
Repairs and maintenance 221,613 92,090 122,995 130,430 155,415
Taxes and insurance 49,192 46,834 47,162 62,436 81,204
Property management -- -- -- -- --
Advertising 23,992 14,827 9,500 24,998 21,877
General and administrative -- -- -- -- --
Amortization -- -- -- -- --
Depreciation of rental property -- -- -- -- --
Other 71,976 44,481 28,499 74,993 65,629
------------ ----------- ---------- ---------- ----------
469,184 237,292 234,107 349,740 369,516
Income before interest income (expense) 569,101 391,347 275,606 620,506 707,648
Interest income -- -- -- -- --
Interest expense -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net Income $ 569,101 $ 391,347 $ 275,606 $ 620,506 $ 707,648
------------ ------------ ------------ ------------ ------------
Parkside Greenbrier Deerfield Tolley West 1996
Pro Forma Pro Forma Pro Forma Pro Forma Acquisition
Adjustments Adjustments Adjustments Adjustments Adjustments
----------- ----------- ----------- ----------- -----------
Date of Acquisition 9/30/96 10/1/96 11/20/96 12/1/96
Property operations
Revenues from rental properties $ 653,152 $ 1,250,682 $ 1,489,997 $ 629,429 $11,707,374
Rental expenses:
Utilities 34,669 70,957 62,040 104,684 816,694
Repairs and maintenance 94,280 205,550 190,567 125,116 1,883,845
Taxes and insurance 66,873 98,321 155,082 54,665 947,968
Property management -- -- -- -- --
Advertising 64,687 24,988 25,476 20,587 306,249
General and administrative -- -- -- -- --
Amortization -- -- -- -- --
Depreciation of rental property -- -- -- -- --
Other 194,059 74,964 76,430 61,759 927,643
------------ ------------ ------------ ------------ ---------
454,568 474,780 509,595 366,811 4,882,399
Income before interest income (expense) 198,584 775,902 980,402 262,618 6,824,975
Interest income -- -- -- -- --
Interest expense -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net Income $ 198,584 $ 775,902 $ 980,402 $ 262,618 $ 6,824,975
------------ ------------ ------------ ------------ ------------
ITEM 7.c.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Report on Form 8-K/A to be signed on its behalf
by the undersigned hereunto duly authorized.
CORNERSTONE REALTY INCOME TRUST, INC.
Date: December 12, 1997 By:/s/ Stanley J. Olander, Jr.
---------------------------
Stanley J. Olander, Jr.
Chief Financial Officer
of Cornerstone Realty Income
Trust, Inc.
EXHIBIT INDEX
Cornerstone Realty Income Trust, Inc.
Form 8-K/A to Form 8-K dated September 30, 1997
Exhibit Number Exhibit Page Number
23.1 Consent of Independent Auditors
(Clarion Crossing Apartments)