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) December 18, 1996
BALCOR PENSION INVESTORS-III
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Exact Name of Registrant
Illinois 0-11129
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State or other jurisdiction Commission file number
2355 Waukegan Road
Suite A200
Bannockburn, Illinois 36-3164211
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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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The Woods Apartments
In 1983, the Partnership funded a $3,162,826 loan evidenced by a $6,480,000
promissory note and collateralized by a wrap-around third mortgage lien on The
Woods Apartments, Austin, Texas. The Partnership later advanced an additional
$1,300,000 on the loan. The Partnership received $625,000 as a principal
reduction of the loan in 1988. In 1993, the Partnership purchased the first
and second mortgage loans held by unaffiliated parties for a total of
$2,562,433. The Partnership obtained title to the property through a
non-judicial foreclosure in 1994.
As previously reported, on January 9, 1997, the Partnership contracted to sell
the property to an unaffiliated party, Austin Woods Limited Partnership, an
Illinois limited partnership, for a sale price of $11,650,000. On January 31,
1997, 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.
On March 12, 1997, the Partnership contracted to sell the property to an
unaffiliated party, Mid-America Apartments of Texas, L.P., a Texas limited
partnership. The sale price is $10,300,000. The purchaser is obligated to
deposit $200,000 into an escrow account as earnest money. The remainder of the
sale price will be payable in cash at closing. The closing will be on or
before April 17, 1997. From the proceeds of the sale, the Partnership will pay
$206,000 as a brokerage commission to an affiliate of the third party providing
property management services for the property and will receive the remaining
proceeds of approximately $10,094,000, less closing costs. Of such proceeds,
$200,000 will be retained by the Partnership and will not be available for use
or distribution by the Partnership until 60 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 actual expenses incurred in connection with
the sale.
Affiliates of the General Partner sold five other properties to the purchaser
during 1996 and 1997.
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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Perimeter 400 Center
As previously reported, on December 2, 1996, a general partnership consisting
of the Partnership and three affiliates (the "General Partnership") which owned
the Perimeter 400 Center, Fulton County, Georgia, contracted to sell the
property for a sale price of $40,700,000 to an unaffiliated party, Devon
Properties, Inc., a New York corporation. The sale closed on December 18,
1996. From the proceeds of the sale, the General Partnership paid $68,765 in
closing costs, $814,000 as a brokerage commission to an affiliate of the third
party providing property management services for the property and received
the remaining proceeds of $39,817,235. Of such proceeds, $1,750,000 will be
retained by the General Partnership until September 1997. The Partnership's
share of the total proceeds is approximately $5,049,000.
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) Termination Letter relating to the Agreement of Sale dated
January 9, 1997 relating to the sale of The Woods
Apartments, Austin, Texas.
(b) Agreement of Sale dated March 12, 1997 relating to the sale
of The Woods Apartments, Austin, Texas.
(c) Letter Agreement dated March 20, 1997 relating to the sale
of The Woods Apartments, Austin, 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 PENSION INVESTORS-III
By: Balcor Mortgage Advisors-II, 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: March 25, 1997