UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
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) January 17, 1997
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FIRST CAPITAL INSURED REAL ESTATE LIMITED PARTNERSHIP
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(Exact name of registrant as specified in its charter)
Illinois 0-17610 36-3525946
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
Two North Riverside Plaza, Suite 950, Chicago, Illinois 60606-2607
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (312) 207-0020
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(Former name or former address, if changed since last report.)
This document consists of 42 pages.
The Exhibit Index is located on page 3.
ITEM 2. DISPOSITION OF ASSETS
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Carrollton Crossroads Associates, a joint venture in which First Capital Insured
Real Estate Limited Partnership (the "Registrant") owns a 50% interest, sold its
interest in the real property commonly known as Carrollton Crossroads Shopping
Center (the "Property"), located in Carrollton, Georgia.
The closing of this transaction occurred on January 17, 1997. The Property was
sold to an unrelated party pursuant to arm's-length negotiations. The sale price
was $18,100,000, of which the Registrant's share was $9,050,000. Net sales
proceeds received by the Registrant approximated $8,853,200, which was net of
certain closing expenses. For the year ending December 31, 1997, the Registrant
will record a net gain for financial reporting purposes of approximately
$309,700 from this transaction. The Registrant will distribute substantially all
of the net sales proceeds from this transaction on May 31, 1997, to Limited
Partners of record as of January 17, 1997.
Page 2
ITEM 7. PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
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(page 5) Pro Forma Financial Information
Exhibits
2.1 (page 10) Contract for Purchase of Real Property, executed November
27, 1996, between Carrollton Crossroads Associates, an Illinois joint
venture ("Seller") and Morningside Associates, a Georgia general
partnership ("Purchaser");
2.2 (page 35) Closing Statement, dated January 17, 1997, between Seller
and Purchaser.
No information is required under Items 1, 3, 4, 5, 6 and 8; therefore, those
Items have been omitted.
Page 3
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.
FIRST CAPITAL INSURED REAL ESTATE LIMITED PARTNERSHIP
By:FIRST CAPITAL FINANCIAL CORPORATION
As General Partner
February 3, 1997 By: /s/ NORMAN M. FIELD
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(Date) NORMAN M. FIELD
Vice President - Finance and Treasurer
Page 4
FIRST CAPITAL INSURED REAL ESTATE LIMITED PARTNERSHIP
The accompanying unaudited Pro Forma Balance Sheet has been presented as if the
sale of the Property had occurred on September 30, 1996. The accompanying
unaudited Pro Forma Statement of Income and Expenses for the nine months ended
September 30, 1996 has been presented as if the sale of the Property had
occurred on December 31, 1995. The accompanying unaudited Pro Forma Statement of
Income and Expenses for the year ended December 31, 1995 has been presented as
if the sale of the Property had occurred on December 31, 1994. In the opinion of
the General Partner, all adjustments necessary to reflect the financial
condition and results of operations of the Partnership exclusive of the Property
have been made. The unaudited pro forma financial statements are not necessarily
indicative of what the actual financial position and results of operations would
have been had such transactions actually occurred as of December 31, 1994 and
1995 and September 30, 1996, nor do they purport to represent the results of
operations of the Registrant for future periods.
Page 5
FIRST CAPITAL INSURED REAL ESTATE LIMITED PARTNERSHIP
PRO FORMA BALANCE SHEET
(Unaudited)
(All dollars rounded to nearest 00s)
ASSETS
Previous Pro Forma
September 30, Pro Forma Pro Forma Balance
1996 Adjustments Adjustments Sheet
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Investment in commercial rental properties:
Land $ 3,369,700 $ (1,002,500) $ (1,132,400) $ 1,234,800
Buildings and improvements 25,957,000 (9,399,200) (5,127,500) 11,430,300
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29,326,700 (10,401,700) (6,259,900) 12,665,100
Accumulated depreciation and amortization (6,103,700) 1,817,000 795,800 (3,490,900)
------------- ------------- ------------- --------------
Total investment properties, net of
accumulated depreciation and amortization 23,223,000 (8,584,700) (5,464,100) 9,174,200
Cash and cash equivalents 1,729,100 8,793,200 7,969,700 18,492,000
Investment in debt securities 2,108,800 2,108,800
Rents receivable 96,600 (90,000) (1,300) 5,300
Deferred insurance premium 750,700 750,700
Other assets 600 (300) 300
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$ 27,908,800 $ 118,200 $ 2,504,300 $ 30,531,300
============= ============= ============= ==============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accounts payable and accrued expenses $ 639,700 $ (82,300) $ (76,100) $ 481,300
Due to Affiliates 17,100 17,100
Security deposits 103,500 (6,100) (29,800) 67,600
Distributions payable 451,100 8,850,200 7,962,000 17,263,300
Other liabilities 24,700 (24,200) 500
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1,236,100 8,761,800 7,831,900 17,829,800
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Partners' capital:
General Partner (deficit) (1,081,200) 3,100 1,081,200 3,100
Limited Partners (688,194 Units
outstanding) 27,753,900 (8,646,700) (6,408,800) 12,698,400
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26,672,700 (8,643,600) (5,327,600) 12,701,500
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$ 27,908,800 $ 118,200 $ 2,504,300 $ 30,531,300
============= ============= ============= ==============
The accompanying notes are an integral part of the pro forma financial
statements.
Page 6
FIRST CAPITAL INSURED REAL ESTATE LIMITED PARTNERSHIP
PRO FORMA STATEMENT OF INCOME AND EXPENSES
(Unaudited)
(All dollars rounded to nearest 00s
except per Unit amounts)
Nine Months Ended September 30, 1996
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Pro Forma
Statement of Previous Statement of
Income and Pro Forma Pro Forma Income and
Expenses Adjustments Adjustments Expenses
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Income:
Rental $ 3,492,700 $ (902,500) $ (975,200) $ 1,615,000
Interest on short-term investments 156,100 0 0 156,100
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3,648,800 (902,500) (975,200) 1,771,100
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Expenses:
Depreciation and amortization 873,900 (197,300) (146,400) 530,200
Property operating:
Affiliates 152,800 (61,600) (51,800) 39,400
Nonaffiliates 450,300 (32,800) (140,800) 276,700
Real estate taxes 312,900 (78,000) (61,900) 173,000
Insurance - Affiliate 39,100 (8,500) (12,600) 18,000
Repairs and maintenance 435,100 (36,500) (134,900) 263,700
General and administrative:
Affiliates 36,200 36,200
Nonaffiliates 98,300 98,300
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2,398,600 (414,700) (548,400) 1,435,500
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Net income $ 1,250,200 $ (487,800) $ (426,800) $ 335,600
=========== =========== =========== ============
Net income allocated to General Partner $ 12,500 $ (4,900) $ (4,300) $ 3,300
=========== =========== =========== ============
Net income allocated to Limited Partners $ 1,237,700 $ (482,900) $ (422,500) $ 332,300
=========== =========== =========== ============
Net income allocated to Limited
Partners per Unit (688,194 Units
outstanding) $ 1.80 $ (0.70) $ (0.62) $ 0.48
=========== =========== =========== ============
The accompanying notes are an integral part of the pro forma financial
statements.
Page 7
FIRST CAPITAL INSURED REAL ESTATE LIMITED PARTNERSHIP
PRO FORMA STATEMENT OF INCOME AND EXPENSES
(All dollars rounded to nearest 00s
except per Unit amounts)
Year Ended December 31, 1995
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Pro Forma
Previous Statement of
Statement of Pro Forma Pro Forma Income and
Income and Adjustments Adjustments Expenses
Expenses (Unaudited) (Unaudited) (Unaudited)
------------ ------------- ------------ ------------
Income:
Rental $ 4,727,500 $ (1,164,300) $(1,402,100) $ 2,161,100
Interest on short-term investments 220,600 220,600
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4,948,100 (1,164,300) (1,402,100) 2,381,700
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Expenses:
Depreciation and amortization 1,027,700 (260,000) (189,700) 578,000
Property operating
Affiliates 276,600 (69,800) (72,900) 133,900
Nonaffiliates 589,600 (50,100) (210,200) 329,300
Real estate taxes 410,700 (105,000) (64,300) 241,400
Insurance - Affiliate 49,100 (11,500) (17,600) 20,000
Repairs and maintenance 581,200 (53,900) (175,700) 351,600
General and administrative
Affiliates 40,800 40,800
Nonaffiliates 146,800 146,800
Provision for value impairment 1,300,000 1,300,000
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4,422,500 (550,300) (730,400) 3,141,800
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Net income (loss) $ 525,600 $ (614,000) $ (671,700) $ (760,100)
============= ============= ============ ============
Net income (loss) allocated to General Partner $ 5,300 $ (6,200) $ (6,700) $ (7,600)
============= ============= ============ ============
Net income (loss) allocated to Limited Partners $ 520,300 $ (607,800) $ (665,000) $ (752,500)
============= ============= ============ ============
Net income (loss) allocated to Limited
Partners per Unit (688,194 Units
outstanding) $ 0.76 $ (0.88) $ (0.97) $ (1.09)
============= ============= ============ ============
The accompanying notes are an integral part of the pro forma financial
statements.
Page 8
FIRST CAPITAL INSURED REAL ESTATE LIMITED PARTNERSHIP
Notes to Pro Forma Balance Sheet and
Pro Forma Statements of Income and Expenses
1) For the purpose of the Pro Forma Balance Sheet:
a) the accounts for land, buildings and improvements, accumulated
depreciation and amortization, rents receivable, other assets, accounts
payable and accrued expenses, security deposits and other liabilities have
been adjusted as of September 30, 1996 to reflect the sale of the
Registrant's interest in the Property and other property sold in 1996.
b) Cash and cash equivalents has been adjusted to include the net cash
received by the Registrant from the purchasers of the properties.
c) Distributions payable has been adjusted to reflect the approximate amount
of the special distributions of net sales proceeds to Limited Partners as if
such special distributions had been declared as of September 30, 1996.
2) For the purpose of the Pro Forma Statements of Income and Expenses for the
nine months ended September 30, 1996 and for the year ended December 31,
1995, the adjustments to the income and expenses reflect the Registrant's
interest in the operations of the Property and other property sold in 1996.
Page 9