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 25, 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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Springs Pointe Apartments
In 1982, the Partnership acquired Springs Pointe Apartments, Las Vegas, Nevada
(the "Property"), utilizing approximately $7,833,000 of offering proceeds. The
Property was acquired subject to first mortgage financing of $12,055,000. The
first mortgage loan was refinanced in 1986 with a new first mortgage loan in
the amount of $12,100,000.
On September 25, 1996, the Partnership contracted to sell the Property for a
sale price of $20,046,011 to an unaffiliated party, AIMCO Properties, L.P., a
Delaware limited partnership. Pursuant to the agreement of sale, the purchaser
is obligated to deposit $344,729 into an escrow account as earnest money upon
completion of the purchaser's due diligence review. The remainder of the sale
price will be payable in cash at closing, scheduled for November 18, 1996.
From the proceeds of the sale, the Partnership will repay the outstanding
balance of the first mortgage loan, which is expected to be approximately
$10,689,000 at closing, and $200,460 to an unaffiliated party as a brokerage
commission. The Partnership will receive the remaining proceeds of
approximately $9,157,000, less closing costs. Of such proceeds, $345,000 will
be retained by the Partnership and will not be available for use or
distribution by the Partnership until 90 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.
The purchaser has simultaneously contracted to purchase two properties adjacent
to the Property, one of which is owned by an affiliate of the General Partner
(the "Affiliate") and one of which is owned by an unaffiliated party. A
default by the purchaser, the Partnership or any other seller under any
agreement of sale will be considered a default under all three agreements. If
the agreements are terminated due to a default by the Partnership or another
seller, the purchaser will be entitled to receive a return of its earnest money
and interest accrued thereton plus additional damages in an amount equal to the
earnest money deposits. If the agreements are terminated due to a default by
the purchaser, the Partnership and other sellers will retain all earnest money
and interest accrued thereon. In the event the purchaser terminates any
agreement, other than by a default, the other agreements will also be
terminated, and the purchaser will receive a return of all earnest money
previously deposited plus interest accrued thereon.
If the agreements are terminated due to a default by the unaffiliated seller,
such seller is obligated to reimburse the Partnership and the Affiliate for
any damages paid by them to the purchaser arising from the termination. If the
agreements are terminated due to a default by the Partnership or Affiliate,
such sellers are obligated to reimburse the unaffiliated seller for any damages
paid to the purchaser arising from the termination.
Affiliates of the General Partner have previously sold or have contracted to
sell other assets to affiliates 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 5. OTHER EVENTS
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a) Walnut Ridge Apartments, Phases I & II
As previously reported, on September 11, 1996, the Partnership contracted to
sell Walnut Ridge Apartments, Phases I and II, Corpus Christi, Texas, to an
unaffiliated party, ERP Operating Limited Partnership, an Illinois limited
partnership, for a sale price of $20,200,000. On October 1, 1996, the
purchaser exercised its option to terminate the agreement of sale. Pursuant to
the agreement of sale, the earnest money previously deposited by the purchaser
and interest accrued thereon has been returned to the purchaser.
b) Sandridge Apartments, Phase II
As previously reported, on August 27, 1996, the Partnership contracted to sell
Sandridge Apartments, Phase II, Pasadena, Texas, to an unaffiliated party,
Alliance Holdings, L.L.C., an Illinois limited liability company, for a sale
price of $5,483,333. Pursuant to a Second Modification Agreement dated October
2, 1996, the Partnership and purchaser have agreed to reduce the purchase price
to $5,250,000. The closing date has been extended to October 30, 1996. In
addition, the purchaser has the option to further extend the closing date to
December 30, 1996 upon written notice to the Partnership on or before October
25, 1996 and an additional deposit of $75,000 which amount is non-refundable in
the event the sale does not close.
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
Springs Pointe Apartments, Las Vegas, Nevada.
(99) (a) Notice of Disapproval relating to the sale of Walnut Ridge
Apartments, Phases I and II, Corpus Christi, Texas.
(b) Second Modification Agreement relating to the sale of
Sandridge Apartments, Phase I, Pasadena, Texas.
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: October 9, 1996