Note 1 - Organization
X. Xxxx Price Realty Income Fund III, America's Sales-Commission-
Free Real Estate Limited Partnership (the "Partnership"), was
formed October 20, 1986, under the Delaware Revised Uniform
Limited Partnership Act for the purpose of acquiring, operating,
and disposing of existing income-producing commercial and
industrial real estate properties. X. Xxxx Price Realty Income
Fund III Management, Inc., is the sole General Partner. The
initial offering resulted in the sale of 253,641 limited
partnership units at $250 per unit.
In accordance with provisions of the partnership agreement,
income from operations is allocated and related cash
distributions are generally paid to the General and Limited
Partners at the rates of 1% and 99%, respectively. Sale or
refinancing proceeds are generally allocated first to the Limited
Partners in an amount equal to their capital contributions, next
to the Limited Partners to provide specified returns on their
adjusted capital contributions, next 3% to the General Partner,
with any remaining proceeds allocated 85% to the Limited Partners
and 15% to the General Partner. Gain on property sold is
generally allocated first between the General Partner and Limited
Partners in an amount equal to the depreciation previously
allocated from the property and then in the same ratio as the
distribution of sale proceeds. Cash distributions, if any, are
made quarterly based upon cash available for distribution, as
defined in the partnership agreement. Cash available for
distribution will fluctuate as changes in cash flows and adequacy
of cash balances warrant.
Note 3 - Transactions with Related Parties and Other Entities
As compensation for services rendered in managing the affairs of
the Partnership, the General Partner earns a partnership
management fee equal to 9% of net operating proceeds. The
General Partner earned partnership management fees of $282,000,
$342,000, and $297,000 in 1995, 1994, and 1993, respectively. In
addition, the General Partner's share of cash available for
distribution from operations, as discussed in Note 1, totaled
$28,000, $34,000, and $30,000 in 1995, 1994, and 1993,
respectively.
In accordance with the partnership agreement, certain operating
expenses are reimbursable to the General Partner. The General
Partner's reimbursement of such expenses totaled $77,000,
$74,000, and $82,000 for communications and administrative
services performed on behalf of the Partnership during 1995,
1994, and 1993, respectively.
An affiliate of the General Partner earned a normal and customary
fee of $12,000, $15,000, and $16,000 from the money market mutual
funds in which the Partnership made its interim cash investments
during 1995, 1994, and 1993, respectively.
LaSalle Advisors Limited Partnership ("LaSalle") is the
Partnership's advisor and is compensated for its advisory
services directly by the General Partner. LaSalle is reimbursed
by the Partnership for certain operating expenses pursuant to its
contract with the Partnership to provide real estate advisory,
accounting, and other related services to the Partnership.
XxXxxxx's reimbursement for such expenses during each of the last
three years totaled $120,000.
An affiliate of LaSalle earned $54,000, $37,000, and $7,000 in
1995, 1994, and 1993, respectively, as property manager for
several of the Partnership's properties.
