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) December 23, 1997
AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP
(Exact Name of Registrant as Specified in its Charter)
State of Minnesota
(State or other Jurisdiction of Incorporation or
Organization)
33-85076C 41-1789725
(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 December 23,1997, the Partnership purchased a
newly constructed Champps Americana restaurant in San Antonio,
Texas from Champps Entertainment of Texas, Inc. The total cash
purchase price of the land and building was approximately
$2,753,700. Champps Entertainment of Texas, Inc. is not
affiliated with the Partnership.
The cash, used in purchasing the property, was from
the proceeds of sale of Limited Partnership Units.
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 been increased by $2,753,700 and its
Current Assets (cash) would have been
decreased by approximately $2,753,700 at
December 31, 1996 and September 30, 1997.
The Total Income for the Partnership would
have increased from $1,341,753 to $1,637,776
for the year ended December 31, 1996 and from
$1,098,273 to $1,320,290 for nine months ended
September 30, 1997 if the Partnership had owned
the property during the periods.
Depreciation Expense would have increased by
$74,016 and 55,512 for the year ended December
31, 1996 and the nine months ended September 30,
1997, respectively.
The net effect of these pro forma adjustments
would have caused Net Income to increase from
$912,232 to $1,134,239, and from $703,500
to $870,005, which would have resulted
in Net Income of $64.39 and $35.96 per Limited
Partnership Unit outstanding for the year
ended December 31, 1996 and the nine months ended
September 30, 1997, respectively.
(c) Exhibits
Exhibit 10.1 - Net Lease Agreement
dated March 14, 1997 between the
Partnership and Champps
Entertainment of Texas, Inc.
relating to the property at 11440
Interstate Highway 10, San
Antonio, Texas (incorporated by
reference to Exhibit 10.2 of Form
8-K filed with the Commission on
on March 25, 1997.)
Exhibit 10.2 - First Amendment to Net
Lease Agreement dated December 23,
1997 between the Partnership and
Champps Entertainment of Texas, Inc.
relating to the property at 11440
Interstate Highway 10, San
Antonio, Texas.
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 INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP
By: AEI Fund Management XXI, Inc.
Its: Managing General Partner
Date: January 5, 1998 /s/ Mark E Larson
By: Mark E. Larson
Its Chief Financial Officer
(Principal Accounting and
Financial Officer)