Exhibit (a)(9)
May 18, 2007
TO: UNIT HOLDERS OF CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES 2
SUBJECT: EXTENDED AND FURTHER INCREASED OFFER TO PURCHASE UNITS
Dear Unit Holder:
We are amending the Offer to Purchase and related Letters of Transmittal sent to
you on March 26, 2007, as amended May 4, 2007 (the "Offer"), which was made by
the Purchasers identified in the Offer. The Purchasers are offering to purchase
up to 181,811 Units of limited partnership interest (the "Units") in
CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES 2 (the "Partnership") at the
further increased Offer Price of:
$12 per Unit
The Offer will provide you with an opportunity to liquidate all, or a portion
of, your investment without the usual transaction costs associated with market
sales or partnership transfer fees. Reasons you may wish to sell your Units
include:
o HIGHEST OFFER PRICE YET. This offer is 20% HIGHER than what an affiliate
of the General Partner is currently offering, as amended. Withdraw your
Units from AIMCO and tender them to us for $2 per Unit more!
o NO DISTRIBUTIONS! The Partnership has paid no distributions since 2001!
The Partnership has stated that "there can be no assurance that the
Partnership will generate sufficient funds from operations, after planned
capital expenditures, to permit any distributions to its partners in 2007
or subsequent periods." (emphasis added)
o UNCERTAINTY OF PARTNERSHIP TERMINATION. Our offer provides you with the
opportunity to receive liquidity. The general partner has given no
indication when the partnership will be liquidating. The Partnership term
extends through 2013! Therefore, investors may not see liquidity for some
time.
o NO FUTURE IRS FILING REQUIREMENTS. The tax year in which you sell your
Units will be the final year for which you will be obligated to file a K-1
for the Partnership with your tax return. This may represent a reduction
in costs associated with filing complicated tax returns. Your decision to
sell may have other favorable or unfavorable tax consequences and
potential sellers should consult their individual tax advisers.
The Purchasers are extending the Expiration Date to June 5, 2007. You can view
the amended Offer materials at www.mpfi.com (Click on MPF Tenders). If you
already completed and sent a Letter of Transmittal to the Depositary, you need
not send another, you will automatically receive the higher price. You no longer
have to get a Medallion Guarantee.
After carefully reading the enclosed Offer, if you elect to tender your Units,
mail (using the enclosed pre-addressed, postage paid envelope) or fax (then
mail) a duly completed and executed copy of the Letter of Transmittal (printed
on pink paper) and change of address forms, and any other documents required by
the Letter of Transmittal, to the Depositary for the Offer at:
MacKenzie Patterson Fuller, LP
1640 School Street
Moraga, California 94556 Facsimile: (925) 631-9119
We've enclosed a Notice of Withdrawal that you can fax or deliver to the agent
for AIMCO Properties, LP if you already tendered your Units to AIMCO and you
wish to receive more money! The AIMCO Offer expires on May 30, 2007 (unless
further extended), so its depository, The Altman Group, must receive your Notice
of Withdrawal by midnight Eastern Time on that date for you to withdraw from
that offer. You must also deliver to us an executed copy of our Letter of
Transmittal to accept our Offer. If you have any questions or need assistance,
please call the Depositary at 800-854-8357.