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) June 28, 1996
BALCOR REALTY INVESTORS - 83
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Exact Name of Registrant
Illinois 0-11805
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State or other jurisdiction Commission file number
2355 Waukegan Road
Suite A200
Bannockburn, Illinois 36-3189175
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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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Walnut Ridge Apartments, Phases I and II
In 1982, the Partnership acquired the Phases I and II of Walnut Ridge
Apartments, Corpus Christi, Texas (together, the "Property"), utilizing
$11,145,725 of offering proceeds. The property was acquired subject to first
mortgage financing of $8,315,000 and $7,390,000 on Phases I and II,
respectively. In order to complete refinancings in 1987, 1989, 1991 and 1993 of
new mortgage loans collateralized by the Property, the Partnership utilized a
total of $3,400,000 of additional Partnership funds towards these refinancings.
The Property's financing currently consists of a first mortgage loan and an
unsecured loan from an affiliate of the General Partner.
On June 28, 1996, the Partnership contracted to sell the Property for a sale
price of $20,000,000 to an unaffiliated party, BH TFL, Inc. On or before July
23, 1996, upon completion of the purchaser's due diligence review, the
purchaser will deposit $200,000 into an escrow account as earnest money. The
remaining portion of the sale price will be payable in cash at closing, which
is scheduled to occur on August 15, 1996. From the proceeds of the sale, the
Partnership will pay the outstanding balances of the first mortgage loan and
the unsecured loan, which are expected to have outstanding principal balances
of approximately $10,793,000 and $734,000 at closing, respectively, and
$250,000 to an unaffiliated party as a brokerage commission. An affiliate of
the third party providing property management services for the Property will
receive a fee for services rendered in connection with the sale of the
property of approximately $150,000. The Partnership will receive the
remaining proceeds of approximately $8,073,000, less closing costs. Neither
the General Partner nor any affiliate will receive a brokerage commission in
connection with the sale of the Property. The General Partner will be
reimbursed by the Partnership for actual expenses incurred in connection with
the sale.
Affiliates of the General Partner have simultaneously contracted to sell 5
other properties to the purchaser.
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 the sale of the Property may not occur.
ITEM 5. OTHER INFORMATION
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Desert Sands Village Apartments
As previously reported, on April 23, 1996, the Partnership contracted to sell
Desert Sands Village Apartments, Phoenix, Arizona, to an unaffiliated party,
ERP Operating Limited Partnership, an Illinois limited partnership, for a
sale price of $14,579,423. The Partnership and the purchaser subsequently
agreed to reduce the purchase price to $14,529,423. The sale closed June 12,
1996. The purchaser exercised its option to assume the existing first
mortgage loan collateralized by the property which had an outstanding
principal balance of $8,951,783 at closing.
From the proceeds of the sale, the Partnership paid legal fees of approximately
$15,000 and a $109,346 fee to an affiliate of the third party providing
property management services for the property for services rendered in
connection with the sale. The Partnership received approximately $5,453,000 of
remaining proceeds. Of such amount, $500,000 is being retained by the
Partnership and will not be available for use or distribution by the
Partnership until 120 days after closing.
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) (a) Agreement of Sale and attachment thereto relating to the
sale of the Walnut Ridge apartment complex, Phases I
and II, Corpus Christi, Texas.
(b) Amendment to Agreement of Sale and Escrow Agreement
relating to the sale of the Walnut Ridge apartment
complex, Phases I and II, Corpus Christi, Texas.
(99) Letter Agreement dated May 22, 1996 relating to the sale of
the Desert Sands Village apartment complex, Phoenix, Arizona.
No information is required under Items 1, 3, 4, 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-83
By: Balcor Partners-XIII, an Illinois
general partnership, its general partner
By: RGF-Balcor Associates-II, an Illinois
general partnership, a 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: July 12, 1996