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) October 7, 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 from an
unaffiliated party and an unsecured loan from an affiliate of the General
Partner.
On October 7, 1996, the Partnership contracted to sell the Property for a sale
price of $19,475,000 to an unaffiliated party, BH Equities, Inc. The purchaser
is obligated to deposit $194,750 into an escrow account as earnest money. The
remainder of the sale price will be payable in cash at closing, scheduled for
December 20, 1996. The purchaser will receive a credit against the sale price
of $300,000 for deferred maintenance. 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 $10,760,000 and
$734,000 at closing, respectively, a prepayment penalty of approximately
$431,000 and $243,438 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 up to $146,063 for services rendered in
connection with the sale of the Property. The Partnership will receive the
remaining proceeds of approximately $6,860,000, 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 its actual expenses incurred in connection
with the sale.
In June 1996, an affiliate of the purchaser contracted to purchase the
Property, which contract was terminated in August 1996.
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: October 22, 1996