SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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) February 21, 1996
BALCOR REALTY INVESTORS 86 - SERIES I
A REAL ESTATE LIMITED PARTNERSHIP
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Exact Name of Registrant
Illinois 0-15649
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State or other jurisdiction Commission file number
2355 Waukegan Road
Suite A200
Bannockburn, Illinois 36-3327914
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Address of principal I.R.S. Employer
executive offices Identification
Number
60015
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Zip Code
Registrant's telephone number, including area code:
(847) 267-1600
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
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In 1986, the Partnership acquired the Lakeside garden apartment complex
utilizing approximately $6,800,00 of offering proceeds. The Partnership
financed the acquisition of the property with a first mortgage loan in the
amount of approximately $12,800,000.
On February 21, 1996, the Partnership contracted to sell the property for a
sale price of $14,100,000 to an unaffiliated party, Mid-America Apartments,
L.P., a Tennessee limited partnership. The purchaser has deposited $300,000
into an escrow account as earnest money. The remaining $13,800,000 of the sale
price will be paid in cash by the purchaser at closing, scheduled to be held on
March 12, 1996. From the proceeds of the sale, the Partnership will pay to an
unaffiliated party a brokerage commission of $423,000 and to the holder of the
first mortgage loan the outstanding balance of the loan, expected to be
approximately $12,430,000 at closing, plus an additional amount equal to 50% of
the net sale proceeds in excess of $12,654,000. The General Partner will be
reimbursed by the Partnership for its actual expenses incurred in connection
with the sale. The Partnership will receive $211,500 from the broker for its
services. The purchaser will pay from its own funds a brokerage commission
estimated to be $130,000 to an affiliate of the company which provides property
management services at the property.
The closing is subject to the satisfaction of numerous terms and conditions.
There can be no assurance that all of the terms and conditions will be complied
with and, therefore, it is possible that the sale of the property may not
occur.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
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(a) FINANCIAL STATEMENTS AND EXHIBITS:
None
(B) PRO FORMA FINANCIAL INFORMATION:
None
(C) EXHIBITS:
(2) Agreement of Sale and attachment thereto relating
to the sale of the Lakeside apartment complex.
No information is required under Items 1, 3, 4, 5, 6 and 8 and these items
have, therefore, been omitted.
Signature
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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.
BALCOR REALTY INVESTORS 86 - SERIES I
A REAL ESTATE LIMITED PARTNERSHIP
By: Balcor Partners-IX, an Illinois
general partnership, its general
partner
By: The Balcor Company,
a Delaware corporation,
a partner
By: /s/ Jerry M. Ogle
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Jerry M. Ogle, Vice President
and Secretary
Dated: March 5, 1996