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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
{ X } ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the fiscal year ended December 31, 1997
OR
{ } TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from to
Commission file number 000-20147
Realty Parking Properties II L.P.
(Exact Name of Registrant as Specified in its Charter)
Delaware 52-1710286
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
225 East Redwood Street, Baltimore, Maryland 21202
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (410) 727-4083
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on which registered
None
Securities registered pursuant to section 12(g) of the Act:
Assignee Units of Limited Partnership Interests
(Title of class)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
As of December 31, 1997, there were 1,392,800 Units of Assignee and Limited
Partnership Interests held by non-affiliates of the Registrant. Because there is
not an established public trading market for the Units, the aggregate market
value of the Units held by non-affiliates of the Registrant cannot be
calculated.
Documents Incorporated by Reference
The Annual Report for 1997 is incorporated by reference.
REALTY PARKING PROPERTIES II L.P.
Index
Part I Page
Item 1. Business 3
Item 2. Properties 4-5
Item 3. Legal Proceedings 5
Item 4. Submission of Matters to a Vote of Security Holders 5
Part II.
Item 5. Market for Registrant's Common Equity
and Related Stockholder Matters 5-6
Item 6. Selected Financial Data 6
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operation 6-7
Item 8. Financial Statements and Supplementary Data 8
Item 9. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure 8
Part III.
Item 10. Directors and Executive Officers of the Registrant 8-9
Item 11. Executive Compensation 9
Item 12. Security Ownership of Certain Beneficial Owners
and Management 9
Item 13. Certain Relationships and Related Transactions 10
Part IV.
Item 14. Exhibits, Financial Statement Schedules and
Reports on Form 8-K 10-13
Signatures 14
REALTY PARKING PROPERTIES II L.P.
PART I
Item 1. Business
Realty Parking Properties II L. P. (the "Fund") is a Delaware limited
partnership capitalized on December 19, 1990. The Fund's intent was to acquire
surface lots and parking garage buildings (the "Properties") to be held for
appreciation and used for parking operations to produce current income. The
properties were acquired with an emphasis on surface commercial parking lots
believed to have significant future potential for eventual sale as development
sites. The acquisition program is complete and only minor rehabilitation
expenditures and repairs to existing Properties are expected in the future.
The General Partner of the Fund is Realty Parking Company II, Inc., a
Maryland corporation.
A minimum of 100,000 units of assignee limited partnership interests (the
"Units") and an increased maximum of 4,000,000 Units were registered under the
Securities and Exchange Act of 1933, as amended. The Fund issued an aggregate of
1,392,760 Units, raising $34,819,000 of gross offering proceeds, at eighteen
closings through March, 1993.
The Fund has entered into consulting and advisory agreements with Central
Parking System, Inc. ("Central") and Allright Corporation ("Allright"),
respectively. Pursuant to the agreements, Central and Allright agreed to seek
and identify suitable Properties for purchase by the Fund and to lease such
Properties from the Fund following acquisition. The Properties are leased to
Central or Allright (the "lessee") for a 10-year period (expiring between August
2002 and July 2004) with options to extend these leases for two additional terms
of five years. Under the terms of the typical lease agreement the lessees are
obligated to pay the Fund the greater of the minimum rent plus reimbursement of
real estate taxes or 65% of the gross parking revenues ("percentage rent"). The
typical lease agreement calls for minimum rents of (i) 6% of the adjusted
acquisition cost of the property during the first year the lessee operates the
parking facility, (ii) 6.5% of the adjusted acquisition cost during the second
year of operation, and (iii) 7% of the adjusted acquisition cost during the
third and subsequent years. A property's adjusted acquisition cost generally
equals the sum of the property's purchase price, related acquisition expenses
and fees, and site preparation costs. Additionally, under the terms of the
leases, the parking lot operator is responsible for all operating costs,
including ad valorem real estate taxes and general and garage liability
insurance coverage. Each lease is cancelable by the Fund upon the sale of a
property and payment to the lessee of a "termination fee". The termination fee
generally equals 15% of the amount, if any, by which the property's sales
proceeds exceed the original acquisition cost of the property plus a 12%
compounded annual return on the original acquisition cost minus all rents
received by the Fund from the Property. Some of the leases may differ from the
terms outlined above in order to accommodate specific circumstances of an
acquired property.
The Fund acquired twelve Properties through 1994 and sold one property in
1997. The Fund's investment prior to depreciation charges, including acquisition
related costs and improvements, is $27,441,189 at December 31, 1997 (see Item 2.
Properties).
The offering proceeds, net of issuance related fees and working capital
reserves, were used to acquire the Properties. Additionally, the Fund obtained a
line of credit to complete the Fund's acquisition program, to supplement working
capital reserves and to make distributions to partners (see Note 7, "Note
Payable," in Item 8, Financial Statements, herein).
The success of the Fund will, to a large extent, depend on the quality of
management of the Fund, its property acquisitions and the timing, terms and
conditions of any sale or financing. Future development may be delayed or
rendered legally or economically unfeasible as a result, for example, of future
building moratoriums, zoning changes and changes in growth and development
patterns.
The interim use of the Properties for parking operations to produce
current income is dependent on Central's and Allright's ability to pay rents
under the terms of the lease agreements. Rents may vary due to percentage rental
payments (discussed above) which are influenced by a variety of factors,
including competition, traffic levels, parking demand and the location, design
and condition of the parking lot (see Item 7. Management's Discussion and
Analysis of Financial Condition and Results of Operations).
3
REALTY PARKING PROPERTIES II L.P.
Item 2. Properties
The Fund owns eleven properties in total, eight of which are wholly owned
by the Fund. The undivided tenants-in-common ownership of three of the
Properties is noted below. The Properties are not subject to a mortgage or other
lien or encumbrance under the terms of the term loan agreement, however the
collateral security provision of the loan agreement provides for the assignment
of the Fund's rights as a lessor to its interest in the parking lot leases,
contracts and income. As of December 31, 1997 the Fund owns the following
Properties:
Approximate Gross *** 1997
Location Size (Sq. Ft.) Type Investment Cost Rental Income Lease Date
Phoenix, Arizona 275,310 surface lot $ 3,356,534 $ 304,664 5/94- 4/04
Southwest corner of Van
Buren and 44th Streets
San Diego, California 50,000 surface lot 2,226,652 133,104 1/94- 12/03
Block bounded by 8th and 9th
Avenue and A & B Streets
San Diego, California (Union) 35,000 surface lot 3,658,110 197,317 8/94- 7/04
Block bounded by Union,
State, C & B Streets
San Francisco, California 12,720 surface lot 1,941,927 222,585 6/94- 5/04
"L" shaped lot bounded by
New Montgomery, Howard,
and Natoma Streets
Denver, Colorado 106,250 surface lot 2,940,450 174,768 6/94- 5/04
Block bounded by 19th
Avenue, Broadway,
20th Avenue and
Lincoln Street*
Atlanta, Georgia 78,582 surface lot 2,002,269 403,916 4/94- 3/04
Block bounded by Harris and garage
and Williams Streets,
Techwood Drive and
International Boulevard**
Tulsa, Oklahoma 39,646 surface lot 766,285 63,601 12/92- 11/02
Block bounded by South
Boston Avenue, East 3rd
Street and South Cincinnati
Avenue*
Nashville, Tennessee 57,720 surface lot 1,797,731 315,563 9/93- 8/03
North side of Charlotte Avenue and garage
between Fourth and Fifth
Avenues, North
Dallas, Texas 45,714 surface lot 2,200,732 161,082 1/94- 12/03
Southeast corner of Main and and garage
St. Paul Streets
4
REALTY PARKING PROPERTIES II L.P.
Item 2. Properties (continued)
Approximate Gross 1997
Location Size (Sq. Ft.) Type Investment Cost Rental Income Lease Date
Dallas, Texas (Metro) 19,450 surface lot 4,185,681 296,026 3/94- 2/04
Southeastern corner of Field and and garage
Elm Streets
San Antonio, Texas 43,341 surface lot 2,364,818 164,797 7/92- 8/02
Northwest corner of Dwyer
Avenue and Nueva Street
Seattle, Washington 66,179 surface lot - 152,478 10/93- 9/03
Block bounded by Jackson Street,
3rd Avenue, King Street and
2nd Avenue****
$27,441,189 $ 2,589,901
========= =========
* The Fund owns an 80% undivided interest in the Denver, Colorado property and a
60% undivided interest in the Tulsa, Oklahoma property. The remaining interests
of both properties are owned by Central.
** The Fund owns a two-thirds undivided interest in the Atlanta, Georgia
property. The remaining interest of this property is owned by Allright.
*** The gross investment cost reflects the Fund's pro-rata investment in the
jointly owned Properties.
****The Seattle, Washington property was sold during 1997.
Item 3. Legal Proceedings
The Fund is not subject to any material pending legal proceedings.
Item 4. Submission of Matters to a Vote of Security Holders
There were no matters submitted to the security holders for a vote
during the last quarter of the fiscal year covered by this report.
PART II
Item 5. Market for Registrant's Common Equity and Related Stockholder Matters
An established public trading market for the Units does not exist and
the Fund does not anticipate that a public market will develop. Transfer of
Units by an investor and purchase of Units by the Fund may be accommodated under
certain terms and conditions. The Partnership Agreement imposes certain
limitations on the transfer of Units and may restrict, delay or prohibit a
transfer primarily if:
o the transfer of Units would cause a technical termination of the Fund
within meaning of Section 708(b)(1)(A) of the Internal Revenue Code;
o such a transfer would be a violation of any federal or state
securities laws that may cause the Fund to be classified other than
as a partnership for federal income tax purposes and;
o such transfers would cause the Fund to be treated as a "publicly
traded partnership" under Section 7704 and 469(k) of the Internal
Revenue Code.
5
REALTY PARKING PROPERTIES II L.P.
Item 5. Market for Registrant's Common Equity and Related Stockholder
Matters (continued)
As of December 31, 1997, there were 1,955 holders of assignee units of
limited partnership interests of the registrant, owning an aggregate of
1,392,800 units.
The Fund made four quarterly cash distributions in 1997, 1996 and 1995
totaling $1,668,518, $1,626,668 and $1,582,704, respectively, from funds
provided by operations. Additionally in 1997, the Fund distributed sale proceeds
totaling $7,204,117.
Item 6. Selected Financial Data
Revenues and net earnings information furnished below is for the five years
ended December 31, 1997:
1997 1996 1995 1994 1993
Revenues:
Gain - sale $ 2,708,847 $ - $ - $ - $ -
Rental income 2,589,901 2,464,856 2,252,425 1,648,982 555,555
Interest income 35,447 14,495 15,020 122,854 552,983
Net earnings 4,538,493 1,647,840 1,461,945 1,170,914 661,992
Net earnings per Unit * 3.23 1.17 1.04 0.83 0.48
Total assets 27,969,119 32,476,178 32,308,790 32,009,234 29,659,489
Partners' capital 24,531,185 28,865,327 28,844,155 28,964,914 29,420,675
Cash distributions
paid per Unit: *
operations 1.19 1.16 1.13 .78 .30 - .52
return of capital - - - .38 .42 - .73
sale proceeds 5.12 - - - -
* Net earnings per Unit in 1997, 1996, 1995 and 1994 are based
upon 1,392,800 units outstanding during the year. Net earnings
per Unit in 1993 is based upon 1,358,495 weighted average units
outstanding, respectively. Cash distributions paid per Unit
during 1993 vary depending on the date of admittance of the
investors to the Fund. Investors were admitted to the Fund at
eighteen intervals from July 1991 through March 1993.
The above selected financial data should be read in conjunction with
the financial statements and accompanying notes incorporated by reference in
this report.
Item 7. Management's Discussion and Analysis of
Financial Condition and Results of Operations
Liquidity and Capital Resources
The Fund completed its acquisition program in 1994 and does not
anticipate acquiring any additional properties. The Fund acquired and made
improvements to twelve properties. The Fund sold one property during 1997
resulting in $27,441,189 in gross investment in real estate at December 31,
1997. The Fund does not contemplate making any major improvements to its
properties during 1998.
At December 31, 1997, the Fund had a working capital position of cash
and cash equivalents of $887,200, accounts receivable of $283,112 and accounts
payable and accrued expenses and other short term liabilities of $376,934.
Cash and cash equivalents increased $192,795 during 1997. This
increase represents the net effect of $1,861,313 in cash provided by operating
activities, sale proceeds of $7,204,117 and distributions to investors of
$8,872,635.
6
REALTY PARKING PROPERTIES II L.P.
Item 7. Management's Discussion and Analysis of
Financial Condition and Results of Operations (continued)
Liquidity and Capital Resources (continued)
On July 18, 1994 the Fund closed on its $5.6 million line of credit
agreement with a bank. Borrowings under the credit agreement bear interest on
the outstanding principal amount at the bank's prime rate plus 1% per annum.
Effective July 18, 1997, the line of credit agreement was amended to a maximum
$3.5 million capacity, the interest rate on outstanding borrowings was reduced
to the bank's prime rate (8.5% at December 31, 1997) and the commitment was
extended for an additional three years, until July 18, 2000. The principal
balance at December 31, 1997 and 1996 was $3,061,000.
On February 13, 1998, the Fund made a cash distribution to investors of
$349,600. This distribution was derived from cash provided by operations during
1997.
Results of Operations
Parking lot rental income increased $125,045 and $212,431 during 1997 and
1996, as compared to the previous year. This increase is attributable to
scheduled increases in minimum lease rents, as well as higher percentage rent
payments.
The Fund leases its facilities to parking operators under terms that
typically include a minimum rent calculated as a percentage of certain
acquisition costs (see Note 5, "Leases" in Item 8. Financial Statements,
herein). In addition, lessees are typically obligated to pay a percentage rent,
calculated as a percentage of gross parking revenues. During 1997, percentage
rents were earned at the Nashville, Tulsa, Atlanta, Dallas (Metropolitan), San
Francisco and Phoenix facilities totaling $642,958. During 1996, percentage
rents were earned at the Nashville, San Antonio, Tulsa, Atlanta, San Francisco,
Phoenix and San Diego (Union) facilities totaling $409,065. During 1995,
percentage rents were earned at the Nashville, San Diego (Steve), Atlanta, San
Francisco and San Diego (Union) facilities totaling $300,823. Percentage rental
payments have increased in 1997 and 1996 by 57% and 36%, respectively. During
1997 and 1996, the Fund received a substantial amount of percentage rents from
the Atlanta facility. These percentage rents were largely attributable to
additional revenues that were earned due to the impact of the 1996 Olympic
Games, and are not likely to recur.
On June 26, 1997, the Fund sold its 66,179 square foot parcel of land in
Seattle, Washington for $8,000,000. The Fund's investment in the property was
$4,495,268, net of accumulated depreciation of $3,191. The capital gain from the
sale totaled $2,708,847, net of expenses of $795,885. The sale of the Seattle
facility will reduce the Fund's annual rental revenues by $313,668, a 15%
decline on 1997 base rentals (excluding the effect of any percentage rents).
Additionally, the Fund's annual management fee expense will be reduced by
approximately $33,700.
In 1997, interest income increased $20,952 over 1996 due to higher cash
balances. Interest income in 1996 remained consistent with 1995 levels as
interest rates and cash balances were relatively constant.
Expenses in 1997, net of amortization and depreciation, were $615,588,
reflecting a $28,235 decrease over 1996. This decrease is primarily due to
reduced management fees as a result of the Seattle property sale, lower
professional fees and a reduction of interest expense due to the decrease in the
interest rate on the note payable.
Expenses in 1996, net of amortization and depreciation, were $643,823,
reflecting an $8,743 increase over 1995 levels. This net increase is primarily
the result of an increase in travel and administrative expenses due to an
increased focus on the current condition and values of the Properties in the
portfolio, an increase in interest expense due to higher borrowings under the
line of credit and were offset by lower professional fees.
Depreciation charges increased in each of the years in the three-year
period ended December 31, 1997 as a result of additions to depreciable fixed
assets in 1996 and 1995.
7
REALTY PARKING PROPERTIES II L.P.
Item 7. Management's Discussion and Analysis of
Financial Condition and Results of Operations (continued)
Results of Operations (continued)
The information management gained during its site visits has permitted
better analysis of disposition strategies. While it was originally anticipated
that the highest returns would be obtained from property sales to buyers who
desired sites for near term development potential, management now believes that
certain properties could be sold at substantial gains based on their parking
potential. The Fund is particularly alert for such opportunities and has placed
the Dallas-Metropolitan garage under contract to a real estate investment
company which specializes in parking properties. Nonrefundable earnest money of
$250,000 was deposited into an escrow account. The sale should occur in May
1998, however, there is no assurance that the prospective buyer will close
pursuant to the contract of sale.
Management has initiated a program to prepare the Fund's computer systems
and applications for the year 2000. The Fund expects to incur additional
administrative costs as well as consulting and other expenses related to
infrastructures and facilities' enhancements necessary to prepare the systems
for the year 2000. A significant proportion of these costs are not likely to be
incremental costs to the Fund, but rather will represent the redeployment of the
existing information technology resources.
Item 8. Financial Statements and Supplementary Data
Index to Financial Statements:
Page(s)
Herein Annual Report
Independent Auditors' Report 11 5
Balance Sheets 6
Statements of Operations 7
Statements of Partners' Capital 8
Statements of Cash Flows 9
Notes to Financial Statements 10-15
Financial Statement Schedule
Schedule III - Real Estate and
Accumulated Depreciation 12-13
All other schedules are omitted because they are not applicable, or not
required, or because the required information is included in the financial
statements or notes thereto.
Item 9. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure
None.
Part III
Item 10. Directors and Executive Officers of the Registrant
The General Partner of the Fund is Realty Parking Company II, Inc. The
Fund's principal executive offices are located at 225 East Redwood Street,
Baltimore, Maryland 21202, telephone (410) 727-4083. The General Partner has
primary responsibility for the selection and negotiation of terms concerning the
acquisition of the Properties' sites, selecting a manager for the interim
investments, and the structure of the offering and of the Fund. The General
Partner is responsible for overseeing the performance of those who contract with
the Fund, as well as making decisions with respect to the financing, sale and
liquidation of the Fund's assets. It will also provide all reports to and
communications with investors and others, all
8
REALTY PARKING PROPERTIES II L.P.
Item 10. Directors and Executive Officers of the Registrant (continued)
distributions and allocations to investors, the administration of the Fund's
business and all filings with the Securities and Exchange Commission and other
federal or state regulatory authorities. The Agreement of Limited Partnership
provides for the removal of the General Partner and the election of a successor
or additional general partner by investors holding a majority in interest of the
Units.
The directors and principal officers of the General Partner are as
follows:
John M. Prugh, age 49, has been a Director and President of the General
Partner since 1990 and of Alex. Brown Realty, Inc. and Armata Financial Corp.
since 1984. Mr. Prugh graduated from Gettysburg College in 1970, and was
designated a Certified Property Manager by the Institute of Real Estate
Management in 1979. He has worked in property management for H. G. Smithy Co.,
in Washington, D.C., and Dreyfuss Bros., Inc. in Bethesda, Maryland. Since 1977,
Mr. Prugh has been involved in managing, administering, developing and selling
real estate investment projects sponsored by Alex. Brown Realty, Inc. and its
subsidiaries.
Peter E. Bancroft, age 45, has been a Director and Vice President of the
General Partner since 1990 and a Senior Vice President of Alex. Brown Realty,
Inc. and Armata Financial Corp. since 1983. Mr. Bancroft graduated from Amherst
College in 1974, attended the University of Edinburgh, and received a J.D.
degree from the University of Virginia School of Law in 1979. Prior to joining
Alex. Brown Realty, Inc. in 1983, Mr. Bancroft held legal positions with
Venable, Baetjer and Howard and T. Rowe Price Associates, Inc.
Terry F. Hall, age 51, has been a Vice President and Secretary of the
General Partner since 1990 and a Vice President and Secretary of, and Legal
Counsel for, Alex. Brown Realty, Inc. since 1989. Mr. Hall graduated from the
University of Nebraska-Lincoln in 1968, and received a J.D. degree from the
University of Pennsylvania Law School in 1973. Prior to joining Alex. Brown
Realty, Inc. in 1986, Mr. Hall was a Partner at the law firm of Venable, Baetjer
and Howard from 1981 to 1986 and an associate at the same firm from 1973 to
1981.
Timothy M. Gisriel, age 41, has been the Treasurer of the General Partner
and of Alex. Brown Realty, Inc. and Armata Financial Corp. since 1990. He was
the Controller of Alex. Brown Realty, Inc. and Armata Financial Corp. from 1984
through 1990. Mr. Gisriel graduated from Loyola College in 1978 and received his
Masters of Business Administration degree from the Robert G. Merrick School of
Business, University of Baltimore, in 1993. Prior to joining Alex. Brown Realty,
Inc. in 1984, Mr. Gisriel was an audit supervisor in the Baltimore office of
Coopers & Lybrand. He is a Maryland Certified Public Accountant.
There is no family relationship among the officers and directors of the
General Partner.
Item 11. Executive Compensation
The officers and directors of the General Partner received no compensation
from the Fund.
The General Partner is entitled to receive a share of cash distributions
and a share of profits and losses as described in the Agreement of Limited
Partnership (see Note 9. "Partners' Capital" in Item 8. Financial Statements,
herein).
For a discussion of compensation and fees to which the General Partner is
entitled, see Item 13, Certain Relationships and Related Transactions, herein.
9
REALTY PARKING PROPERTIES II L.P.
Item 12. Security Ownership of Certain Beneficial Owners and Management
No person is known to the Fund to own beneficially more than 5% of the
outstanding assignee units of limited partnership interest of the Fund.
The Assignor Limited Partner, Parking Properties Holding Co., Inc., an
affiliate of the General Partner, holds 40 Units representing a beneficial
interest in limited partnership interests in the Fund. The Units held by the
Assignor Limited Partner have all rights attributable to such Units under the
Agreement of Limited Partnership except that these Units of assignee limited
partnership interests are nonvoting.
The General Partner has a 1% interest in the Fund as the General Partner,
but holds no Units.
At December 31, 1997, Central held 42,104 Units (an approximate 3.0%
investment in the Fund).
There are no arrangements, known to the Fund, the operation of which may,
at a subsequent date, result in a change of control of the registrant.
Item 13. Certain Relationships and Related Transactions
The General Partner and its affiliates have and are permitted to engage in
transactions with the Fund. For a summary of fees paid during 1997, 1996 and
1995 to the General Partner and its affiliates, see Note 6, "Related Party
Transactions", in Item 8, Financial Statements, herein.
PART IV
Item 14. Exhibits, Financial Statement Schedules
and Reports on Form 8-K
(a) 1. Financial Statements: See Index to Financial Statements and
Supplementary Data in Item 8 on page 8, herein.
2. Financial Statement Schedule: See Index to Financial Statements and
Supplementary Data in Item 8 on page 8, herein. 3. Exhibits:
(3, 4) Agreement of Limited Partnership on pages 1 through 39 of Exhibit A
to the Fund's Registration Statement on Form S-11 (File No. 33-38437)
incorporated herein by reference.
(13) Annual Report for 1997
(b) Reports on Form 8-K: None.
10
REALTY PARKING PROPERTIES II L.P.
INDEPENDENT AUDITORS' REPORT
The Partners
Realty Parking Properties II L.P.:
Under date of January 23, 1998 we reported on the balance sheets of Realty
Parking Properties II L.P. as of December 31, 1997 and 1996, and the related
statements of operations, partners' capital and cash flows for each of the years
in the three-year period ended December 31, 1997 as contained in the 1997 Annual
Report. These financial statements and our report thereon are incorporated by
reference in the Annual Report on Form 10-K for 1997. In connection with our
audits of the aforementioned financial statements, we have audited the related
financial statement schedule as listed in the accompanying index. This financial
statement schedule is the responsibility of the Fund's management. Our
responsibility is to express an opinion of the financial statement schedule
based on our audits.
In our opinion, such financial statement schedule, when considered in relation
to the basic financial statements taken as a whole, presents fairly, in all
material respects, the information set forth therein.
KPMG PEAT MARWICK LLP
Baltimore, Maryland
January 23, 1998
-11-
REALTY PARKING PROPERTIES II L.P.
SCHEDULE III. REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 1997
page 1 of 2
COLUMN A COLUMN C COLUMN D COLUMN E
COST CAPITALIZED GROSS AMOUNT
SUBSEQUENT CARRIED
INITIAL COST TO THE TO ACQUISITION AT CLOSE OF PERIOD
PARTNERSHIP LAND BUILDING LAND & BUILDING &
DESCRIPTION LAND BUILDING IMPROVE. IMPROVE. IMPROVE. IMPROVEM. TOTAL
PHOENIX, ARIZONA
approximately 275,310 square foot
surface parking lot $3,251,486 105,048 3,356,534 0 3,356,534
SAN DIEGO, CALIFORNIA
approximately 50,000 square foot
surface parking lot 2,197,540 29,112 2,226,652 0 2,226,652
SAN DIEGO, CALIFORNIA (Union)
approximately 35,000 square foot
surface parking lot 3,596,425 61,684 3,658,110 0 3,658,110
SAN FRANCISCO, CALIFORNIA
approximately 12,720 square foot
surface parking lot 1,941,856 71 1,941,927 0 1,941,927
DENVER, COLORADO
approximately 106,250 square foot
surface parking lot 2,914,555 25,895 2,940,450 0 2,940,450
ATLANTA, GEORGIA
approximately 78,582 square foot
surface parking lot & garage 1,206,054 703,019 52,415 40,781 1,258,469 743,800 2,002,269
TULSA, OKLAHOMA
approximately 39,646 square foot
surface parking lot 765,857 428 766,285 0 766,285
NASHVILLE, TENNESSEE
approximately 57,720 square foot
surface parking lot and garage 1,101,312 134,525 133,902 427,992 1,235,214 562,517 1,797,731
DALLAS, TEXAS
approximately 45,714 square foot
surface parking lot and garage 1,351,734 768,578 (21,138) 101,558 1,330,596 870,136 2,200,732
DALLAS, TEXAS (Metro)
approximately 19,450 square foot
surface parking lot and garage 778,602 3,384,762 22,317 778,602 3,407,079 4,185,681
SAN ANTONIO, TEXAS
approximately 43,341 square foot
surface parking lot 2,358,144 6,674 2,364,818 0 2,364,818
$21,463,565 4,990,884 394,091 592,648 21,857,657 5,583,532 27,441,189
12
REALTY PARKING PROPERTIES II L.P.
SCHEDULE III. REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 1997
page 2 of 2
COLUMN A COLUMN F COLUMN H COLUMN I
LIFE ON
WHICH
ACCUMULATED DEPRECIATION
DEPRECIATION DATE IN LATEST I/S
DESCRIPTION ("A/D") ACQUIRED IS COMPUTED
PHOENIX, ARIZONA
approximately 275,310 square foot
surface parking lot 12,996 06/94 SEE NOTE 5
SAN DIEGO, CALIFORNIA
approximately 50,000 square foot
surface parking lot N/A 12/93 N/A
SAN DIEGO, CALIFORNIA (Union)
approximately 35,000 square foot
surface parking lot 19,940 07/94 SEE NOTE 5
SAN FRANCISCO, CALIFORNIA
approximately 12,720 square foot
surface parking lot 543 05/94 SEE NOTE 5
DENVER, COLORADO
approximately 106,250 square foot
surface parking lot 6,175 12/91 SEE NOTE 5
ATLANTA, GEORGIA
approximately 78,582 square foot
surface parking lot & garage 71,148 03/94 SEE NOTE 5
TULSA, OKLAHOMA
approximately 39,646 square foot
surface parking lot N/A 11/92 N/A
NASHVILLE, TENNESSEE
approximately 57,720 square foot
surface parking lot and garage 92,346 02/92 SEE NOTE 5
DALLAS, TEXAS
approximately 45,714 square foot
surface parking lot and garage 110,487 02/93 SEE NOTE 5
DALLAS, TEXAS (Metro)
approximately 19,450 square foot
surface parking lot and garage 337,750 02/94 SEE NOTE 5
SAN ANTONIO, TEXAS
approximately 43,341 square foot
surface parking lot N/A 06/92 N/A
651,385
(1) 1997 1996 1995
REAL ESTATE A/D REAL ESTATE A/D REAL ESTATE A/D
BALANCE AT BEGINNING OF PERIOD $31,939,650 481,828 31,927,313 310,580 31,584,624 156,600
ADDITIONS TO INVESTMENT IN R/E 0 172,748 12,337 171,248 342,689 153,980
REAL ESTATE SOLD (4,498,461) (3,191) 0 0 0 0
BALANCE AT CLOSE OF PERIOD $27,441,189 651,385 $31,939,650 481,828 $31,927,313 310,580
(2) AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $27,441,189 AT DECEMBER
31, 1997 (3) SEE NOTE 3 OF NOTES TO THE FINANCIAL STATEMENTS FOR INFORMATION
REGARDING THE FUND'S
INVESTMENT IN REAL ESTATE.
(4) THERE ARE NO ENCUMBRANCES ON THE REAL ESTATE SET FORTH ABOVE.
(5) LAND IMPROVEMENTS ARE DEPRECIATED OVER 15 YEARS STRAIGHT LINE
BUILDING & IMPROVEMENTS IN SERVICE PRIOR TO JANUARY 1, 1994 ARE DEPRECIATED
OVER 31.5 YEARS STRAIGHT LINE BUILDING & IMPROVEMENTS IN SERVICE AFTER
JANUARY 1, 1994 ARE DEPRECIATED OVER 39 YEARS STRAIGHT LINE
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REALTY PARKING PROPERTIES II L.P.
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange
Act of 1934, as amended, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
REALTY PARKING PROPERTIES II L. P.
DATE: 3/25/98 BY: /s/ John M. Prugh
John M. Prugh
President and Director
Realty Parking Company II, Inc.
General Partner
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
this report has been signed by the following in the capacities and on the dates
indicated.
DATE: 3/25/98 BY: /s/ John M. Prugh
John M. Prugh
President and Director
Realty Parking Company II, Inc.
General Partner
DATE: 3/25/98 BY: /s/ Peter E. Bancroft
Peter E. Bancroft
Vice President and Director
Realty Parking Company II, Inc.
General Partner
DATE: 3/25/98 BY: /s/ Terry F. Hall
Terry F. Hall
Vice President and Secretary
Realty Parking Company II, Inc.
General Partner
DATE: 3/25/98 BY: /s/ Timothy M. Gisriel
Timothy M. Gisriel
Treasurer
Realty Parking Company II, Inc.
General Partner
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