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 PENSION INVESTORS - VI
------------------------------------------------------------
Exact Name of Registrant
Illinois 0-14332
- ------------------------------- ---------------------------------
State or other jurisdiction Commission file number
2355 Waukegan Road
Suite A200
Bannockburn, Illinois 36-3319330
- ------------------------------- ---------------------------------
Address of principal I.R.S. Employer
executive offices Identification
Number
60015
- -------------------------------
Zip Code
Registrant's telephone number, including area code:
(847) 267-1600
ITEM 5. OTHER INFORMATION
- ----------------------------------------------------------------------
a) Sand Pebble Village I Apartments
In April 1987, the Partnership and an affiliate funded a $22,400,000 first
mortgage loan collateralized by the Sand Pebble Village I Apartments ("Sand
Pebble I"), Riverside, California. The amount advanced by the Partnership
towards the loan was $10,000,000. In July 1992, a joint venture ("Joint
Venture") consisting of the Partnership and the affiliate obtained title to the
property through foreclosure.
On June 28, 1996, the Joint Venture contracted to sell the property for a sale
price of $19,411,765 to an unaffiliated party, RREEF America L.L.C., a Delaware
limited liability company. The purchaser has deposited $150,000 into an escrow
account as earnest money and will pay the remaining $19,261,765 at closing,
which is scheduled for August 1, 1996. From the proceeds of the sale, the
Joint Venture will pay $242,647 to an unaffiliated party as a brokerage
commission and a fee of $145,588 to an affiliate of the third party providing
property management services for the property for services rendered in
connection with the sale. The Joint Venture will receive the remaining
proceeds of $19,023,530, less closing costs, which will be distributed among
the Partnership and the affiliate in accordance with their participating
percentages in the Joint Venture. The Partnership is expected to receive
approximately $8,493,000. 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 Joint Venture for actual expenses
incurred in connection with the sale.
The Partnership and the affiliate, through another joint venture, own Sand
Pebble Village II Apartments ("Sand Pebble II"), located adjacent to Sand
Pebble I, and have simultaneously contracted to sell Sand Pebble II to the
purchaser, as described elsewhere in this Report. If the purchaser terminates
this or the agreement of sale for Sand Pebble II for any reason, the other
agreement of sale will also be deemed terminated.
The closing is subject to the satisfaction of numerous terms and conditions,
including the closing of the sale of Sand Pebble II. 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.
b) Sand Pebble Village II Apartments
In October 1993, a joint venture ("Joint Venture") consisting of the
Partnership and an affiliate purchased Sand Pebble Village II Apartments ("Sand
Pebble II"), Riverside, California for a purchase price of $9,300,000. The
property was acquired subject to first mortgage financing of $5,000,000. The
amount advanced by the Joint Venture towards the purchase of Sand Pebble II was
$4,300,000, of which the Partnership's share was $1,191,520.
On June 28, 1996, the Joint Venture contracted to sell Sand Pebble II for a
sale price of $12,088,235 to an unaffiliated party, RREEF America L.L.C., a
Delaware limited liability company. The purchaser has deposited $150,000 into
an escrow account as earnest money and will pay the remaining $11,938,235 at
closing, which is scheduled for August 1, 1996. From the proceeds of the sale,
the Joint Venture will repay the first mortgage loan which is expected to have
an outstanding balance of $4,859,155 at closing, and $151,103 to a third party
as a brokerage commission. An affiliate of the third party providing property
management services for the property will receive a fee of $90,662 for services
rendered in connection with the sale. The Joint Venture will receive the
remaining proceeds of approximately $6,987,315, less closing costs,
which will be distributed among the Partnership and the affiliate in
accordance with their participating percentages in the Joint Venture. The
Partnership is expected to receive approximately $3,116,342. 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 Joint Venture for actual expenses incurred in
connection with the sale.
The Partnership and the affiliate, through another joint venture, own
Sand Pebble Village I Apartments ("Sand Pebble I"), located adjacent
to Sand Pebble II, and have simultaneously contracted to sell Sand Pebble I
to the purchaser, as described elsewhere in this Report. If the purchaser
terminates this or the agreement of sale for Sand Pebble I for any reason,
the other agreement of sale will also be deemed terminated.
The closing is subject to the satisfaction of numerous terms and conditions,
including the closing of the sale of Sand Pebble I. 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.
c) Woodscape Apartments
In 1985, the Partnership funded a $3,512,651 loan collateralized by a
wrap-around mortgage on Woodscape Apartments, Raleigh, North Carolina. The
Partnership subsequently advanced an additional $125,000 pursuant to a loan
modification. The Partnership took title to the property through foreclosure
in 1992 subject to the first mortgage loan. In 1994, the Partnership repaid
the first mortgage loan in the amount of $3,387,000 and paid a prepayment
penalty of $102,000.
On July 15, 1996, the Partnership contracted to sell the property for a sale
price of $9,550,000 to an unaffiliated party, ERP Operating Limited
Partnership, an Illinois limited partnership. The purchaser has deposited
$300,000 into an escrow account as earnest money. The remainder of the sale
price will be payable in cash at closing, scheduled for August 30, 1996. From
the proceeds of the sale, the Partnership will pay $167,125 to a third party as
a brokerage commission, and 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 $95,500. The Partnership will
receive the remaining proceeds of approximately $9,287,375, less closing costs.
Of such proceeds, an amount not to exceed $500,000 will be retained by the
Partnership and will not be available for use or distribution by the
Partnership until 120 days after the closing. 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 its actual expenses incurred in connection with the sale.
Affiliates of the General Partner have recently sold or contracted to sell 24
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 7. FINANCIAL STATEMENTS AND EXHIBITS
- ----------------------------------------------------------------------
(a) FINANCIAL STATEMENTS AND EXHIBITS:
None
(B) PRO FORMA FINANCIAL INFORMATION:
None
(C) EXHIBITS:
(99) (a) Agreement of Sale and attachment thereto relating to the
sale of Sand Pebble Village I Apartments, Riverside,
California.
(b) Agreement of Sale and attachment thereto relating to the
sale of Sand Pebble Village II Apartments, Riverside,
California.
(c) Agreement of Sale and Letter Agreement thereto relating
to the sale of Woodscape Apartments, Raleigh, North
Carolina.
No information is required under Items 1, 2, 3, 4, 6 and 8 and these items
have, therefore, been omitted.
Signature
- -------------
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 PENSION INVESTORS-VI
By: Balcor Mortgage Advisors-VI, an
Illinois general partnership, its
general partner
By: The Balcor Company,
a Delaware corporation,
a partner
By: /s/ Jerry M. Ogle
------------------------------------
Jerry M. Ogle, Vice President
and Secretary
Dated: July 26, 1996