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): October 24, 1997
COPLEY REALTY INCOME PARTNERS 1;
A LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
Massachusetts
(State or Other Jurisdiction of Incorporation)
0-15430 04-2893293
(Commission File Number) (IRS Employer Identification No.)
225 Franklin Street, 25th Floor
Boston, MA 02110
(Address of principal executive offices) (Zip Code)
(617) 261-9000
Registrant's Telephone Number, Including Area Code
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Item 2. Acquisition or Disposition of Assets.
- ----------------------------------------------
On October 24, 1997, Copley Realty Income Partners 1; A Limited Partnership
sold its property known as East Anaheim Distribution Center located in Anaheim,
CA. The property was sold to an institutional buyer (the "Buyer") which is
unaffiliated with the Partnership. The selling price was determined by arm's
length negotiations between the Partnership and the Buyer. The property was
sold for $4,700,000. The Partnership received net proceeds of approximately
$4,668,000 and recognized a gain of approximately $830,000.
Item 7. Financial Statements and Exhibits.
- -------------------------------------------
In connection with the disposition of the asset discussed in Item 2 above,
pro forma financial statements are presented below. The pro forma balance sheet
is presented for the period ended September 30, 1997 (Exhibit A). The pro forma
income statements are presented for the fiscal year ended December 31, 1996
(Exhibit B) and the period ended September 30, 1997 (Exhibit C).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: November 10, 1997 COPLEY REALTY INCOME PARTNERS 1;
A LIMITED PARTNERSHIP
(Registrant)
By: First Income Corp.,
Managing General Partner
By: /s/ Wesley M. Gardiner, Jr.
---------------------------------
Name: Wesley M. Gardiner, Jr.
Title: President
Copley Realty Income Partners 1; EXHIBIT A
A Limited Partnership
Pro Forma Balance Sheet
September 30, 1997
Unaudited
Pro Forma September 30, 1997
September 30, 1997 Adjustment Pro Forma
------------------ ---------- ---------
ASSETS
Property held for disposition $3,697,489 ($3,697,489)(a) $0
Cash and cash equivalents 664,659 4,668,000 (a) 5,332,659
Short-term investments 295,367 0 295,367
----------------- ----------------- ------------------
$4,657,515 $970,511 $5,628,026
================= ================= ==================
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $42,840 0 $42,840
Accrued management fee 9,017 0 9,017
Deferred disposition fees 665,403 141,000 (b) 806,403
----------------- ----------------- ------------------
Total liabilities 717,260 141,000 858,260
----------------- ----------------- ------------------
Partners' capital (deficit):
Limited partners ($522 per unit;
100,000 units authorized, 34,581
units issued and outstanding) 4,041,691 821,216 (a) 4,862,907
General partners (101,436) 8,295 (a) (93,141)
----------------- ----------------- ------------------
Total partners' capital 3,940,255 829,511 4,769,766
----------------- ----------------- ------------------
$4,657,515 $970,511 $5,628,026
================= ================= ==================
Copley Realty Income Partners 1; EXHIBIT B
A Limited Partnership
Pro Forma Income Statement
December 31, 1996
Unaudited
Pro Forma December 31, 1996
December 31, 1996 Adjustment Pro Forma
----------------- ---------- ---------
Investment Activity
Property rentals $1,302,434 (494,582)(c) $807,852
Property operating expenses (84,876) 83,926 (c) (950)
Depreciation and amortization (206,677) 113,884 (c) (92,793)
Interest and other expenses (114,799) 0 (114,799)
------------------ ----------------- ------------------
896,082 (296,772) 599,310
Joint venture earnings 280,509 0 280,509
Investment valuation allowances (250,000) 0 (250,000)
------------------ ----------------- ------------------
Total real estate operations 926,591 (296,772) 629,819
Gain on sales of property 906,542 829,511 (a) 1,736,053
------------------ ----------------- ------------------
Total real estate activity 1,833,133 532,739 2,365,872
Interest on cash equivalents and short term investments 106,478 0 106,478
------------------ ----------------- ------------------
Total investment activity 1,939,611 532,739 2,472,350
Portfolio Expenses
Management fee 114,383 (33,390)(f) 80,993
General and administrative 115,493 (4,250)(g) 111,243
------------------ ----------------- ------------------
229,876 (37,640) 192,236
------------------ ----------------- ------------------
Net income $1,709,735 $570,379 $2,280,114
================== ================= ==================
Net income per limited partnership unit $48.95 $16.33(d) $65.28
================== ================= ==================
Number of limited partnership units
outstanding during the period 34,581 34,581 34,581
================== ================= ==================
Copley Realty Income Partners 1; EXHIBIT C
A Limited Partnership
Pro Forma Income Statement
September 30, 1997
Unaudited
Pro Forma September 30, 1997
September 30, 1997 Adjustment Pro Forma
------------------ ---------- ---------
Investment Activity
Property rentals $395,968 (395,968)(e) $0
Property operating expenses (100,791) 100,791 (e) 0
Depreciation and amortization (91,751) 89,162 (e) (2,589)
----------------- ------------ -------------------
203,426 (206,015) (2,589)
Joint venture earnings 76,597 0 76,597
Gain on sales of property 507,980 829,511 (a) 1,337,491
----------------- ------------ -------------------
Total real estate operations 788,003 623,496 1,411,499
Interest on cash equivalents and short term investments 65,898 0 65,898
----------------- ------------ -------------------
Total investment activity 853,901 623,496 1,477,397
Portfolio Expenses
Management fee 67,366 (12,645)(f) 54,721
General and administrative 75,040 0 75,040
----------------- ------------ -------------------
142,406 (12,645) 129,761
----------------- ------------ -------------------
Net income $711,495 $636,141 $1,347,636
================= ============ ===================
Net income per limited partnership unit $20.37 $18.21 (d) $38.58
================= ============ ===================
Number of limited partnership units
outstanding during the period 34,581 34,581 34,581
================= ============ ===================
Pro Forma Financial Statement Footnotes:
(a) Disposition of asset as discussed in Item 2 herein and allocation of the
gain on such disposal to the Partners.
(b) Disposition fee incurred in connection with the disposition of the asset
discussed in Item 2 herein.
(c) Removal of 1996 operating activity related to the disposed asset discussed
in Item 2 herein.
(d) Calculation of net income per limited partnership unit after the removal of
operating activity and addition of the gain related to the disposed asset
discussed in Item 2 herein.
(e) Removal of 1997 year-to-date operating activity related to the disposed
asset discussed in Item 2 herein.
(f) Removal of management fees based on distributions received during the pro
forma period from the disposed asset discussed in Item 2 herein.
(g) Removal of appraisal fees incurred during the pro forma period for the
disposed asset discussed in Item 2 herein.