ITEM 1. DESCRIPTION OF BUSINESS
Excel Properties, Ltd., a California limited partnership (the "Partnership"), was organized to purchase commercial real estate properties for cash and to hold these assets for long-term investment.
The general partners of the Partnership are Excel Realty Trust, Inc., a Maryland corporation, and Gary B. Sabin, an individual. The Partnership was formed on September 19, 1985, and will continue in existence until December 31, 2015, unless dissolved earlier under certain circumstances.
Properties that have been acquired by the Partnership are subject to long-term triple-net leases. Such leases require the lessee to pay the prescribed minimum rental plus all costs and expenses associated with the operations and maintenance of the property. These expenses include real property taxes, property insurance, repairs and maintenance and similar expenses, the net effect being that, under normal circumstances, no expenses will offset the rental payment. Most of the leases also provide some form of inflation hedge which calls for the minimum rent to be increased, based upon adjustments in the consumer price index, fixed rent escalation, or by receipt of a percentage of the gross sales of the tenant.
Properties have been acquired free and clear of liens and encumbrances. The Partnership may seek to finance one or more of the properties and distribute the financing proceeds to the partners, but only if the financing proceeds equal or exceed 100% of the Partnership's capital invested in the property or properties (including a prorata amount of the Partnership's public offering unit selling commissions and organization expenses). To date, no properties owned by the Partnership have been the subject of any mortgage financing, therefore, at the present time, all properties remain free and clear from any mortgage loan, lien or encumbrance.
The principal investment objectives of the Partnership are to provide to its limited partners: (1) preservation, protection and eventual return of the investment, (2) distributions of cash from operations, some of which may be a return of capital for tax purposes rather than taxable income, (3) distributions of cash from financing the properties, and (4) realization of long-term appreciation in value of properties.
The general partners have selected properties they believe meet certain minimum investment standards and that are most likely to accomplish the investment objectives of the Partnership. Properties were acquired through arms-length negotiations with third parties.
ITEM 2.
ITEM 2. PROPERTIES
The Partnership presently owns twenty properties. These properties are briefly described on the following pages:
KINDER-CARE LEARNING CENTERS
The Partnership owns seven properties on lease to Kinder-Care, Inc., the nation's largest provider of day care centers.
KINDER-CARE LEARNING CENTER - GAHANNA, OHIO
Date of purchase: May 28, 1987
Purchase price: $216,822
Property description: This property is located approximately fifteen miles northeast of Columbus, Ohio in the suburb of Gahanna. The building is located on .551 acres and contains 4,528 square feet.
The current lease expires June 30, 1998 with gross rents of $21,000 per year.
KINDER-CARE LEARNING CENTER - GROVE CITY, OHIO
Date of purchase: May 28, 1987
Purchase price: $222,340
Property description: This property is located in Grove City, Ohio, seven miles south of Columbus, Ohio. The building is located on .8939 acres and contains 4,528 square feet.
The current lease expires November 30, 1998 with gross rents of $21,000 per year.
KINDER-CARE LEARNING CENTER - WEST CARROLLTON, OHIO
Date of purchase: May 28, 1987
Purchase price: $190,337
Property description: This property is located approximately eight miles southwest of Dayton, Ohio in the suburb of West Carrollton. The building contains 4,560 square feet and is situated on .55 acres of land.
The current lease expires December 31, 2001. The annual rent over the remainder of the lease is as follows:
January 1, 1996 to December 31, 1998 $ 33,202 January 1, 1999 to December 31, 2001 $ 35,526
KINDER-CARE LEARNING CENTER - COLUMBUS, OHIO
Date of purchase: May 28, 1987
Purchase price: $190,337
Property description: This property is located in Columbus, Ohio. The building is situated on .538 acres and contains 4,650 square feet. The property has been sublet by Kinder-Care to Children Today, another child-care provider.
The property is on lease until December 31, 2001. The annual rent over the remainder of the lease is as follows:
January 1, 1996 to December 31, 1998 $ 33,202 January 1, 1999 to December 31, 2001 $ 35,526
KINDER-CARE LEARNING CENTER - DAYTON, OHIO
Date of purchase: May 28, 1987
Purchase price: $190,337
Property description: This property is located approximately thirty miles northeast of Dayton, Ohio in the Mud River Township. The building is situated on .645 acres and contains 4,650 square feet.
The current lease expires December 31, 2001. The annual base rent over the remaining term of the lease is as follows:
January 1, 1996 to December 31, 1998 $ 33,202 January 1, 1999 to December 31, 2001 $ 35,526
KINDER-CARE LEARNING CENTER - INDIANAPOLIS, INDIANA
Date of purchase: May 2, 1989
Purchase price: $201,079
Property description: This property is located at 1034 N. Whitcomb Ave. in Indianapolis, Indiana. The building contains 4,487 square feet and is situated on .598 acres.
The current lease expires December 31, 2000 with gross rents of $49,694 per year.
KINDER-CARE LEARNING CENTER - INDIANAPOLIS, INDIANA
Date of purchase: May 2, 1989
Purchase price: $201,079
Property description: This property is located at 29 N. Coronado in Indianapolis, Indiana. The building contains 4,487 square feet and is situated on 1.106 acres. The gross rents are $18,000 per year and the lease expires December 31, 2000.
PARAGON RESTAURANT GROUP, INC.
The Partnership owns two properties operated as Mountain Jack's Restaurants, on lease to Paragon Steakhouse Restaurants, Inc. The company, headquartered in San Diego, California, is one of the nation's premier specialty restaurant chain operators. Their trade names include Mountain Jacks's and Hungry Hunter.
MOUNTAIN JACK'S RESTAURANT - MIDDLEBURG HEIGHTS, OHIO
Date of purchase: July 21, 1987
Purchase price: $1,046,222
Property description: The property, situated on 1.72 acres and containing 6,331 square feet, is an upscale steak and seafood restaurant located in Middleburg Heights, Ohio, a suburb of Cleveland. It has seating for approximately 163 persons and parking for approximately 115 cars.
The annual lease payment is the greater of $104,500 or 5% of the gross sales. The lease expires on July 20, 2005.
MOUNTAIN JACK'S RESTAURANT - LAFAYETTE, INDIANA
Date of purchase: September 29, 1987
Purchase price: $1,080,097
Property description: This property is located at 2411 State Road 26 East, Lafayette, Indiana. Lafayette is strategically located between Chicago, Illinois to the north and Indianapolis, Indiana to the south. It is the home of Purdue University. The property is situated on 1.72 acres, contains 8,112 gross square feet, and has seating for approximately 294 persons. The site is ideally located along a main commercial artery and is surrounded by seven hotels.
The annual lease payment is the greater of $107,800 or 5% of the gross sales. The lease expires on September 28, 2005.
KENTUCKY FRIED CHICKEN - BLAINE, MINNESOTA
Date of purchase: May 6, 1988
Purchase price: $424,762
Property description: This property is located at 8770 University Avenue N.E., Blaine, Minnesota. It contains 3,090 square feet, and has seating for 92 persons. The surrounding area is predominantly commercial and includes such major retail stores as K-Mart and Club Food stores, in addition to the Northtown Shopping Center.
The lease in guaranteed by Kentucky Fried Chicken. The annual lease payment is the greater of $48,240 or 5% of the gross sales. The lease expires on February 29, 2000.
WENDY'S - BLAINE, MINNESOTA
Date of Purchase: May 6, 1988
Purchase price: $398,478
Property description: The property is located at 8780 University Avenue N.E., Blaine, Minnesota. Blaine is located eight miles north of Minneapolis. The property is across the street from a major regional shopping mall. The building contains 2,474 square feet and has seating for 92 persons.
The lease is guaranteed by Wendy's International, Inc., the parent corporation. The annual lease payment is the greater of $45,360 or 5% of the gross sales. The lease expires on February 29, 2000.
NORTHERN AUTOMOTIVE CORPORATION
The Partnership owns two auto parts stores leased to Northern Automotive Corporation, the nation's largest auto parts chain. Northern Automotive markets its specialty automotive parts and accessories through its retail outlets located throughout the country under the trade names of Checker, Kragen, and Schuck's Autoworks stores. Northern Automotive operates over 475 retail outlets. The company caters to the do-it-yourself market and maintains a broad product line of both private label and national brand names.
AUTOWORKS - BELLEVUE, NEBRASKA
Date of purchase: July 5, 1988
Purchase price: $688,579
Property description: The property is located at a major shopping center at 915 Fort Crook Road, Bellevue, Nebraska, a suburb of Omaha, Nebraska. Bellevue is the home of the Strategic Air Command (SAC) which contributes largely to the area economy. The improvements consist of a free standing concrete block and glass building containing 4,870 square feet.
The base minimum annual rent is $80,484 per year with scheduled rental increases occurring every third year of the lease based on increases in the Consumer Price Index not to exceed a 10% increase. The lease expires on July 5, 2008.
AUTOWORKS - LITTLETON, COLORADO
Date of purchase: July 5, 1988
Purchase price: $715,925
Property description: This property is located at 8219 South Holly in Littleton, Colorado and is surrounded by new commercial complexes and extensive single and multi-family developments. The property is situated on approximately .75 acres and contains 4,960 square feet.
The base minimum annual rent is $83,720 per year with scheduled rental increases occurring every third year of the lease based on increases in the Consumer Price Index not to exceed a 10% increase. The lease expires on July 6, 2008.
DENNY'S RESTAURANT - LAKEWOOD, COLORADO
Date of purchase: July 27, 1988
Purchase price: $603,992
Property description: The property is located at 565 Union Blvd., Lakewood, Colorado. The area is extensively developed in commercial, retail and office uses. The property, located on approximately .75 acres, contains improvements of 4,489 square feet.
The lease is guaranteed by Denny's Inc. and calls for minimum rent of $47,420 to be paid annually or 6% of the tenant's gross sales, whichever is greater. The Partnership received $36,994 in percentage rent from this property in 1995. The lease expires on July 23, 1996 and calls for a full CPI increase from the inception of the lease upon exercise of a 10-year lease option.
PONDEROSA RESTAURANT - ANN ARBOR, MICHIGAN
Date of purchase: January 20, 1989
Purchase price: $759,619
Property description: The property, containing 5,033 square feet, is situated on approximately one acre located at 3354 East Washtenaw Street, Ann Arbor, Michigan. The property is surrounded by numerous commercial enterprises including the Arbor Land enclosed shopping mall.
The lease calls for a minimum rent of $77,400 plus 6.5% of the annual gross sales in excess of the average annual sales for the years 1989 and 1990. The lease expires September 22, 2003.
PONDEROSA RESTAURANT - ALTON, ILLINOIS
Date of purchase: January 31, 1989
Purchase price: $924,379
Description of property: The building, containing 5,587 square feet, is situated on approximately one acre at 3354 Homer-Adams Parkway along Highway 111, which is the major east/west road system through the city. Alton, Illinois is situated across the Mississippi River from St. Louis, Missouri. The property is in the center of one of the city's prime commercial areas.
The lease calls for a minimum annual rent of $94,070 plus 6.5% of the gross sales generated by the property in excess of the average annual sales for the year 1989 and 1990. The lease expires September 22, 2003. The tenant has vacated the premises but continues to pay the monthly base rent.
PAYLESS SHOE STORE - PLANT CITY, FLORIDA
Date of purchase: December 1, 1989
Purchase price: $648,123
Property description: The property is located at 1801 Jim Redman Parkway, Plant City, Florida. Plant City is located approximately 18 miles northeast of the central business district of Tampa, Florida. The property is situated on .89 acres and contains 2,989 square feet.
The lease is guaranteed by the May Department Store Co. which has a net worth in excess of $3 billion. The property is on lease until November 30, 1999 with four additional 5-year options. The minimum rent is $70,785 per year. The rent would be $82,682, $94,578, $106,495 and $118,372 for each option period should the options be exercised by the tenant.
TIMBER LODGE STEAKHOUSE - BURNSVILLE, MINNESOTA
Date of purchase: February 12, 1990
Purchase price: $722,040
Property description: This family restaurant is located at 13050 Aldrich Avenue South. Burnsville is a suburb approximately 11 miles south of Minneapolis. The property contains 6,916 square feet and is situated on 1.43 acres. The current rent is $60,000 per year and the lease expires on July 14, 2001.
TODDLE HOUSE RESTAURANT - KENNER, LOUISIANA
Date of purchase: November 26, 1991
Purchase price: $218,738
Property description: Toddle House Restaurants is a national restaurant chain. It features 24-hour service with a cook-to-order menu. Toddle House Restaurants, Inc. is a wholly owned subsidiary of Diversified Hospitality Group, Inc. (DHG) which also operates the Steak 'N' Eggs Kitchen restaurants. The property is located at 2841 Loyola, Kenner, Louisiana and contains 2,175 square feet. The land on which the restaurant is located is 16,800 square feet.
The current annual rent is $34,998 and the lease expires on November 25, 2011. Toddle House is currently in Chapter 11 Bankruptcy and did not pay any rent in 1995. The Partnership has been in negotiations with the company to begin collecting rent again. The Partnership collected $3,168 in rent in February 1996.
LAND - LAS VEGAS, NEVADA
Date of purchase: March 9, 1995
Purchase price: $195,152
Property description: A 39% undivided interest in two parcels of land located on Sahara Avenue in Las Vegas, Nevada. The land is not currently generating any rental income. The parcels are being held for sale which is expected to happen in 1996.
ITEM 3.
ITEM 3. LEGAL PROCEEDINGS
None
ITEM 4.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable
PART II
ITEM 5.
ITEM 5. MARKET FOR REGISTRANT'S LIMITED PARTNERSHIP UNITS AND RELATED SECURITY HOLDER MATTERS
A) A public market for the Partnership's units does not exist and is not likely to develop.
B) As of December 31, 1995, there were 1,633 investors holding 135,299 units.
C) The Partnership made its first cash flow distribution from operations in May 1987. Since that date, consistent cash distributions have been made at the end of each calendar quarter through December 31, 1995. The Partnership expects to continue to make cash distributions on a quarterly basis in the future.
ITEM 6.
ITEM 6. SELECTED FINANCIAL DATA
The following information has been selected from the financial statements of the Partnership.
INCOME STATEMENT DATA
ITEM 7.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the financial statements and the notes thereto as noted in Item 8
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The Partnership is filing as part of this report, its financial statements which contain the following:
ITEM 9.
ITEM 9. DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
The Partnership had no disagreements with its independent public accountants over accounting or financial disclosure.
PART III
ITEM 10.
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE PARTNERSHIP
The general partners of the Partnership are Excel Realty Trust, Inc., a Maryland corporation, and Gary B. Sabin.
Neither Gary B. Sabin, nor the executive officers of Excel Realty Trust, Inc. receive compensation from the Partnership. The General Partner and the officers and employees of Excel Realty Trust, Inc. spend such time in the administration of Partnership affairs to the extent deemed necessary.
The names, ages and positions of responsibility held by the executive officers and directors of Excel Realty Trust, Inc. are as follows:
FAMILY RELATIONSHIPS
Gary B. Sabin and Ronald H. Sabin are brothers.
BUSINESS EXPERIENCE
The following is a brief background of the directors and executive officers of Excel Realty Trust, Inc.
GARY B. SABIN has served as Chief Executive Officer, President and Chairman of the Board of Directors since January 1989. He is a graduate of Brigham Young University and Stanford University's Graduate School of Business where he received a master's degree as a Sloan Fellow. Mr. Sabin has extensive experience in the financial services industry with emphasis in the areas of commercial real estate and marketable securities.
RICHARD B. MUIR has served as Executive Vice President, Secretary and Director of the Company since January 1989. Mr. Muir has worked extensively in the field of commercial real estate, developing expertise in real estate acquisition, property management, leasing and project financing. He has also been actively involved in the securities brokerage industry. He is a general and financial and operations principal with the National Association of Securities Dealers.
DAVID A. LUND, CPA has served as Chief Financial Officer of the Company since June 1994. He previously served from 1989 to 1994 in various capacities with the Company, including Vice President and Vice President of Finance. From 1983 to 1989 he worked for various affiliated companies. Prior to 1983, Mr. Lund was a partner in a CPA firm.
RONALD H. SABIN has served as Senior Vice President of the Company in charge of property management since January 1989. Mr. Sabin has also served in various similar capacities with other affiliated companies since 1979.
GRAHAM R. BULLICK, Ph.D. has served as Senior Vice President of the Company since January 1991. Prior to joining the company, Mr. Bullick served for four years as an account manager of a company specializing in organizational development and service/quality systems.
MARK T. BURTON has served as Vice President of the Company since January 1989 and was recently promoted to Senior Vice President. Mr. Burton's duties for the Company primarily consist of the evaluation and selection of property acquisitions and dispositions. Mr. Burton has served in various capacities with other affiliated companies since 1984.
S. ERIC OTTESEN has served as General Counsel of the Company since January 1995. Prior to 1995, Mr. Ottesen worked as a partner in a law firm based in San Diego, California.
ITEM 11.
ITEM 11. EXECUTIVE COMPENSATION
The Partnership has no executive officers and has not paid nor proposes to pay any compensation or retirement benefits to the directors or executive officers of Excel Realty Trust, Inc. See ITEM 13 for compensation to the general partner.
ITEM 12.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT
No person is known by the Partnership to be the beneficial owner of more than 5% of the limited partner units.
The following information sets forth the number of units owned directly or indirectly by each general partner.
ITEM 13.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
The table below reflects compensation paid to the general partner or their affiliates during the year ended December 31, 1995:
ITEM 14.
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
(A) Documents filed as part of this report:
(1) (2) Financial statements under Item 8 in Part II hereof.
(3) Exhibits:
None
(B) Reports on Form 8-K
No reports on Form 8-K have been filed during the past year.
SIGNATURES
Pursuant to the requirement of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: March 22, 1996 Excel Properties, Ltd. (Registrant)
Excel Realty Trust, Inc. (General Partner)
By: /s/ Gary B. Sabin --------------------------- Gary B. Sabin President
By: /s/ David A. Lund --------------------------- David A. Lund Principal Financial Officer
EXCEL PROPERTIES, LTD.
----------
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners Excel Properties, Ltd.
We have audited the accompanying balance sheets of Excel Properties, Ltd., as of December 31, 1995 and 1994, and the related statements of income, changes in partners' equity, and cash flows for each of the three years in the period ended December 31, 1995. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Excel Properties, Ltd., as of December 31, 1995 and 1994, and the results of operations and its cash flows for each of the three years in the period ended December 31, 1995, in conformity with generally accepted accounting principals.
Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. Financial statement Schedules II and III are presented for the purpose of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
SQUIRE & CO.
February 9, 1996 Poway, California
EXCEL PROPERTIES, LTD.
BALANCE SHEETS DECEMBER 31, 1995 AND 1994
----------
The accompanying notes are an integral part of the financial statements.
EXCEL PROPERTIES, LTD.
STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
----------
The accompanying notes are an integral part of the financial statements.
EXCEL PROPERTIES, LTD.
STATEMENTS OF CHANGES IN PARTNERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
----------
The accompanying notes are an integral part of the financial statements.
EXCEL PROPERTIES, LTD.
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
----------
The accompanying notes are an integral part of the financial statements.
EXCEL PROPERTIES, LTD.
NOTES TO FINANCIAL STATEMENTS
----------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
ORGANIZATION
Excel Properties, Ltd. was formed in the State of California on September 19, 1985, for the purpose of, but not limited to, acquiring real property and syndicating such property.
REAL ESTATE
Land and buildings are recorded at cost. Buildings are depreciated using the straight-line method over the tax life of 31.5 years. The tax life does not differ materially from the economic useful life. Expenditures for maintenance and repairs are charged to expense as incurred. Significant renovations are capitalized. The cost and related accumulated depreciation of real estate are removed from the accounts upon disposition. Gains and losses arising from the dispositions are reported as income or expense.
CASH DEPOSITS
At December 31, 1995, the carrying amount of the Partnership's cash deposits total $1,817,201. The bank balances are $1,855,566 of which $200,000 is covered by federal depository insurance.
STATEMENT OF CASH FLOWS - SUPPLEMENTAL DISCLOSURE
There was no interest or taxes paid for the years ended December 31, 1995, 1994 or 1993. The Partnership had no noncash investing or financing transactions in 1995 or 1994. The Partnership received notes receivable of $877,500 in 1993 from the sale of two buildings.
INCOME TAXES
The Partnership is not liable for payment of any income taxes because as a partnership, it is not subject to income taxes. The tax effects of its activities accrue directly to the partners.
ACCOUNTS RECEIVABLE
All net accounts receivable are deemed to be collectible within the next 12 months.
FINANCIAL STATEMENT ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Continued EXCEL PROPERTIES, LTD.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
----------
2. FINANCIAL STATEMENT AND TAX RETURN DIFFERENCES
The Partnership had the following differences between the financial statements and the Partnership tax return.
3. FEES PAID TO GENERAL PARTNER:
The Partnership has paid the General Partner or its affiliates the following fees:
Continued EXCEL PROPERTIES, LTD.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
----------
4. NOTES RECEIVABLE:
The Company had the following notes receivable at December 31, 1995 and 1994:
5. MINIMUM FUTURE RENTALS:
The Company leases single-tenant buildings to tenants under noncancelable operating leases requiring the greater of fixed or percentage rents. The leases are either: (1) triple-net, requiring the tenant to pay all expenses of operating the property such as insurance, property taxes, repairs and utilities, or (2) requiring the tenant to reimburse the Company for substantially all of the tenant's share of real estate taxes and other common area maintenance expenses.
Minimum future rental revenue for the next five years for the commercial real estate currently owned and subject to noncancelable operating leases is as follows:
Continued EXCEL PROPERTIES, LTD.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
----------
6. PURCHASE OF PROPERTY:
In March 1995, the Partnership purchased a 39% undivided interest in a parcel of ground in Las Vegas, Nevada for $1,410,233. The ground was leased with the Partnership's share of rent equaling $169,228 per year. The ground was subdivided into three building lots and the lessee constructed a building on one of the three lots. The building was sold in November 1995 as described in Note 7 below. The Partnership still has a 39% undivided interest in the remaining two parcels of land.
7. SALES OF PROPERTIES:
In November 1995, the Partnership sold part of the ground that had been purchased in February 1995. The sales price was $1,566,234 which included an equity participation with the builder/lessee. The Partnership recognized a $351,152 gain on the sale.
In February 1995, the Partnership sold a building in Phoenix, Arizona that was on lease to Childrens World. The sales price was $1,135,000 less $28,729 in selling expenses. The Partnership recognized a gain of $99,141.
In November 1993, the Partnership sold a building in Tucson, Arizona, that was on lease to Fuddruckers. The sales price was $937,500 less $39,267 in selling expenses. The Partnership recognized a gain of $358,155 on the sale. As part of the sale, the Partnership received a note receivable of $757,500 from the purchaser as mentioned in Note 4.
In November 1993, the Partnership sold a building in Eagan, Minnesota, that was on lease to Rax Restaurant. The sales price was $150,000 less $16,539 in selling expenses. The Partnership recognized a loss of $84,903 on the sale. As part of the sale, the Partnership received a note receivable of $120,000 from the purchaser as mentioned in Note 4.
EXCEL PROPERTIES, LTD. SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
EXCEL PROPERTIES, LTD. SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 1995
EXCEL PROPERTIES, LTD. SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 1995 (Continued)
(a) Also represents cost for federal income tax purposes. (b) Reconciliation of total real estate carrying value for the three years ended December 31, 1995 is as follows:
(c) Reconciliation of accumulated depreciation for the three years ended December 31, 1995 is as follows: