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) September 11, 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 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 of new mortgage loans collateralized by the
Property in each of 1987, 1989, 1991 and 1993, 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 September 11, 1996, the Partnership contracted to sell the Property for a
sale price of $20,200,000 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 October 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 be
approximately $10,777,000 and $734,000 at closing, respectively, a prepayment
penalty of approximately $431,000 and $252,500 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 of $151,500 for
services rendered in connection with the sale of the property. The Partnership
will receive the remaining proceeds of approximately $7,854,000, 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 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.
In 1996, the Partnership sold one other property to the purchaser. In
addition, during 1996, affiliates of the General Partner sold or contracted to
sell 22 other properties to the purchaser or an affiliate of 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
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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
Walnut Ridge Apartments, Phases I and II, Corpus Christi, Texas.
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-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: September 20, 1996