ITEM 1: BUSINESS - ----------------
The registrant, Realmark Property Investors Limited Partnership-VI B ("the Partnership"), is a Delaware limited partnership organized in 1987 pursuant to an Agreement and Certificate of Limited Partnership (the "Partnership Agreement"), under the revised Delaware Uniform Limited Partnership Act. The Partnership's general partners are Realmark Properties, Inc. (the "Corporate General Partner"), a Delaware corporation, and Joseph M. Jayson (the "Individual General Partner").
The Registrant commenced the public offering of its limited partnership units, registered with the Securities and Exchange Commission under the Securities Act of 1933, as amended, on November 11, 1988. The first interim closing took place on February 2, 1989, and the initial $2,134,300 of contributed capital was released to the Partnership at which time it began operations. The offering was concluded February 28, 1990 at which time the Partnership had raised $7,862,510, before deducting sales commissions and syndication costs.
The Partnership's primary business and its only industry segment is to own and operate income-producing real property for the benefit of its limited partners. Through December 31, 1998, the Partnership owned two apartment complexes, totaling 336 units. In addition, the Partnership is a partner in the Foxhunt Apartments Joint Venture owning 11.5% of a 250 unit apartment complex in Kettering, Ohio, and in the Lakeview Apartments Joint Venture, owning 16.22% of a 168 unit apartment complex in Milwaukee, Wisconsin.
In June 1991, the Partnership purchased the 144 unit Players Club North Apartments, located in Lutz, Florida, and Fairway Club Apartments (formerly the Villa Apartments), a 192 unit apartment complex in Greenville, South Carolina. The average occupancy level at Players Club North in 1998 was 97%; Fairway Club (formerly the Villa) averaged approximately 71%. For 1997, occupancy at Players Club North averaged 95%, while Fairway Club (formerly the Villa) was 83%. Occupancy during 1996 averaged 94% at Players Club North and 92% at Fairway Club (formerly the Villa). For the year ended December 31, 1998, Players Club accounted for approximately 55% of total Partnership revenue, while Fairway Club (formerly the Villa) accounted for 45%. Fairway Club (formerly the Villa) accounted for approximately 51% of total Partnership revenue generated during 1997. Players Club generated approximately 49% of total Partnership revenue during the same year. For the year ended December 31, 1996, Fairway Club (formerly the Villa) generated 55% of total Partnership revenue, and Players Club accounted for 45% of total Partnership revenue.
The business of the Partnership is not seasonal. The Partnership, as of December 31, 1998, did not directly employ any persons in a full-time position. All regular employees who rendered services on behalf of the Partnership through December 31, 1998 were employees of the Corporate General Partner or its affiliates.
The Partnership's investment objectives are to (1) provide a return of capital plus capital gains from the sale of appreciated properties; (2) provide partners with cash distributions until properties are sold; (3) preserve and protect partners capital and; (4) achieve build-up of equity through the reduction of mortgage loans.
This annual report contains certain forward-looking statements concerning the Partnership's current expectations as to future results. Such forward-looking statements are contained in Item 7: Management's Discussion and Analysis of Financial Conditions and Results of Operations. Words such as "believes", "forecasts", "intends", "possible", "expects", "estimates", "anticipates" or "plans" and similar expressions are intended to identify forward-looking statements.
ITEM 2:
ITEM 2: PROPERTIES - ------------------
The following is a list of Properties and Joint Ventures owned by the Partnership as of December 31, 1998:
ITEM 3:
ITEM 3: LEGAL PROCEEDINGS - -------------------------
The Partnership is not a party to, nor is any of the Partnership's property the subject of, any material pending legal proceedings that would impact the future financial position and operations of the Partnership.
ITEM 4:
ITEM 4: SUBMISSIONS OF MATTERS TO A VOTE OF SECURITY HOLDERS - ------- ----------------------------------------------------
None.
PART II
ITEM 5:
ITEM 5: MARKET FOR REGISTRANT'S UNITS OF LIMITED PARTNERSHIP INTEREST - ---------------------------------------------------------------------
There is currently no active trade market for the units of Limited Partnership Interest of the Partnership and it is not anticipated that any will develop in the future. As of December 31, 1998, there were 1,075 record holders of units of Limited Partnership Interest.
ITEM 6:
ITEM 6: SELECTED FINANCIAL DATA - -------------------------------
ITEM 7:
ITEM 7: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS - ------------------------------------------------------------------------------- OF OPERATIONS -------------
Liquidity and Capital Resources: - --------------------------------
The Partnership utilized existing cash reserves to fund current operations. The remaining cash reserves are available to provide for future capital improvements. The Partnership did not make any distributions during 1998, but management hopes to once again make distributions in the coming year. Capital improvement work is still being done at Fairway Club (formerly the Villas), and until such time as the work is completed, management has postponed making a distribution. Management believes that when all work is done at this property, potential tenants will find it more attractive, thus resulting in increased occupancy and a return to positive cash flow from operations. A new marketing strategy was implemented for Fairway Club (formerly The Villas) during the latter part of 1998 starting with the re-naming of the complex. Management felt that the new name would create a different image for the property. The complex underwent renovations in the form of new carpeting for all common areas, fresh paint, new lighting, etc. The market where this property is located has become increasingly competitive due to new construction of apartments; management feels with the renovations and attractive rental concessions being offered, such as free months rent or discounted rents for signed leases, Fairway Club will become more competitive in the coming year.
The General Partners continued their efforts throughout 1998 to locate a buyer for the Lakeview Joint Venture property (the Partnership owns 16.22% of the Lakeview property), as the sale of this property was deemed to be in the best interests of the limited partners. The property was sold on December 29, 1998 to an unrelated third party at a sales price of $3.4 million. The sale resulted in a total gain of $851,317; this Partnership was allocated $138,084 of the gain. The proceeds from sale were used to pay closing costs, property taxes, etc. with the balance paid to the lender to be applied against the existing mortgage. The proceeds did not result in enough cash to pay the entire mortgage, however management had negotiated a settlement with the lender which resulted in forgiveness of debt totaling $253,159 of which $41,062 was allocated to this Partnership as a joint venture partner.
Foxhunt Apartments (the Partnership owns 11.50% of the Foxhunt property) saw a slight decrease in occupancy during the year ended December 31, 1998 as compared to that of the previous year; occupancy at December 31, 1998 was 86% versus 89% at December 31, 1997. Management feels that the occupancy level will increase in the coming year due to significant capital improvements being done to the property. The property has replaced carpeting throughout much of the complex, has painted both the interior and exterior, has re-paved the entire parking area, and has contracted for roof repairs, which are expected to be completed by mid-April of 1999, totaling approximately $15,000. Management hopes that the result of this work will be to once again reach the occupancy level where the complex was at December 31, 1995 and prior (i.e., 95%).
Management successfully refinanced Foxhunt Apartments during 1998; the building has a $6,000,000 interest only mortgage which replaced its previous HUD-insured mortgage which had a balance of $4,498,327 at December 31, 1997. The new mortgage is set up as a one-year bridge loan which matures in August 1999. Management is working on permanent financing or an extension on this loan. In 1999, management intends to market Foxhunt Apartments for sale as this is deemed to be in the best interest of both joint venture partners. Marketing efforts will include advertising in national newspapers, such as The Wall Street Journal, and mailing of sales packages and follow-up telephone calls to brokers. Currently offers have been received, but they have been lower than what management feels the property is worth in the current marketplace. Foxhunt had come under contract for sale in July of 1996. The sale was subject to a number of contingencies and was cancelable at any time by the buyer. During 1997, the contract for sale was canceled by the buyer and management temporarily discontinued its plan to sell the property until 1999.
ITEM 7: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS - ------------------------------------------------------------------------------- OF OPERATIONS -------------
Liquidity and Capital Resources (Con't.): - -----------------------------------------
The Partnership has conducted a review of its computer systems to identify the systems that could be affected by the "year 2000 issue" and has substantially developed an implementation plan to resolve such issues. The year 2000 issue is the result of computer programs being written using two digits rather than four digits to define the applicable year. Computer programs that have time-sensitive software may recognize a date using "00" as the year 1900 rather than the year 2000. This could result in a system failure or miscalculations causing disruptions of operations, including, among other things, a temporary inability to process transactions, send invoices, or engage in similar normal business activities. Management has discussed with outside independent computer consultants its readiness for the Year 2000. The majority of the software in use is either "2000 compliant" or will be with little adaptation and at no significant cost per information provided by their software providers. Management has also engaged a computer firm to re-write its tax software making it Year 2000 compliant. This work is scheduled to begin May 1, 1999 and is expected to take three months. Management has a complete inventory of its computers and feels that the cost of replacing those which will not be "2000 compliant" will be relatively minor (i.e., most likely under $20,000). Non-informational systems have also been evaluated and management feels that there will be little, if any, cost to preparing these for the Year 2000 (i.e., most likely under $20,000). Management expects to be fully Year 2000 compliant with all testing done by September 30, 1999. The Partnership is working on a contingency plan in the unlikely event that its systems do not operate as planned. It is management's belief that in the unlikely event that its informational systems do not operate as planned in the year 2000, all records could be maintained manually until the problems with its systems are resolved. Management feels that its external vendors, suppliers and customers, for the most part, will be unaffected by the Year 2000 as most do not rely on information systems in their businesses.
Results of Operations: - ----------------------
For the year ended December 31, 1998, the Partnership incurred a net loss of $859,817 or $10.61 per limited partnership unit. This is an almost 28% increase from the year ended December 31, 1997 when the loss totaled $674,316 or $8.32 per limited partnership unit. For the year ended December 31, 1996 losses incurred totaled $222,082 or $2.74 per limited partnership unit.
ITEM 7: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS - ------------------------------------------------------------------------------- OF OPERATIONS (Con't.) ----------------------
Results of Operations: - ----------------------
Partnership revenues for the year ended December 31, 1998 totaled $1,629,554, consisting of rental income of $1,446,398 and other income, which includes interest, laundry income, and other miscellaneous sources of income of $183,156. The decrease in rental revenue from that of the previous years of 1997 and 1996 when it totaled $1,531,418 and $1,552,571, respectively, can be attributed to an increase in vacancies and bad debts at Fairway Club (formerly The Villas). Net rental income from Players Club North increased from that of the previous year by approximately $36,000 or 4.6%; between the years ended December 1997 and 1996, net rental income similarly increased approximately $64,000 or 9%. Occupancy at Players Club remained relatively constant throughout the year; the average occupancy for the year ended December 31, 1998 was 97%, a slight increase over the 95% of the prior year. Players Club North continues to take advantage of the strong rental markets in which they are located. Although the property had slightly higher concessions for 1998 as compared to 1997, the property also continued to maintain its good collection history. The staff continue to be attracting tenants through current leasing and marketing strategies, as well as successfully retaining current tenants. Occupancy levels at Fairway Club (formerly The Villas) unfortunately decreased rather significantly during the year ended December 31, 1998 as compared to those of the previous two years; the decrease in occupancy was first noted last year and continued through 1998. For 1998, occupancy at this complex averaged only 71%, while it was 83% for 1997 and 92% for 1996. In order to increase occupancy in the coming year, management intends to continue offering attractive incentive programs (e.g., free rent, reduced rent, etc.) to potential tenants for signed leases. Although this may be successful in increasing occupancies, it is also likely in the short-term to decrease revenues. There was also approximately a 10% increase in other income during the year ended December 31, 1998 as compared to that earned in 1997, bringing this income figure back up near that reported for the year ended December 31, 1996. This increase is primarily attributable to an increase in late charges at Fairway Club (formerly The Villas) and increased month-to-month rental surcharges at Players Club North (i.e., a "premium" rent charged for tenants who are on month-to-month leases as opposed to yearly leases).
Partnership expenses for the year ended December 31, 1998 totaled $2,372,575, an increase of approximately $88,000 over the expenses of the year ended December 31, 1997 of $2,284,176 and almost $518,000 over those for the year ended December 31, 1996 of $1,854,988. Virtually the entire increase in expenses may be seen in property operations costs. Management has been performing a considerable amount of capital improvements and repair work at the properties in this partnership due to the properties' age. Both complexes have been doing significant interior and exterior painting and appliance and carpet replacement. Payroll and related expenses likewise increased at both complexes, increasing by over $31,000 or almost 18% at Fairway Club (formerly The Villas) and by almost $15,000 or 16% at Players Club North. Management has hired additional on-site personnel as more repair and maintenance work is being performed by on-site employees as opposed to by outside contractors in order to keep costs under control. As stated previously, both complexes have put significant funds into replacement of carpeting and appliances over the past year with a combined total of over $188,000 being expended on these two items as compared to only $48,000 during 1997. Other operations expenses, such as utility costs, insurance expense and real estate taxes remained essentially unchanged at both properties. Management continues to look for new ways to save on expenses at the properties; as an example, utility costs are "regularly" measured, and cost-savings ideas are implemented wherever possible and practical. Management is currently investigating the costs associated with the bulk purchase of certain utilities. Additionally, insurance costs are also reviewed regularly, as are real estate taxes with appeals being filed as deemed practical.
ITEM 7: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Con't.)
Results of Operations (Con't.): - -------------------------------
Depreciation and amortization expense decreased significantly between the years ended December 31, 1998 and 1997. Amortization expense for 1997 was unusually high due to the new financing obtained during that year on both Fairway Club (formerly The Villas) and Players Club North. The new financing led to the write-off of the majority of the previously capitalized mortgage acquisition costs. The write-off of such costs amounted to approximately $208,665.
Administrative expenses totaled $349,535 and $344,466 for the years ended December 31, 1998 and 1997, respectively. Administrative expenses paid to affiliates decreased by just over $23,000, which is a result of decreased expenses for accounting management and portfolio expenses. Other administrative expenses increased between 1997 and 1998 by over $28,000 due to increased legal and accounting expenses incurred by the Partnership as well as increased advertising and promotional costs at Fairway Club (formerly The Villas) which resulted from the increase in vacancies experienced during 1998. There was also an increase in costs associated with the model at Players Club North due to improvements and furniture rental. Interest expense increased by just over $13,000 when comparing 1998 to 1997; the increase between interest expense reported in 1998 and 1996 was over $120,000 which was the result of the increase in the principal balances on the mortgages at both The Villas and Players Club North resulting from the refinancings that took place on both of these mortgages during 1997.
The Foxhunt Joint Venture generated a net loss of $943,631 for the year ended December 31, 1998 as compared to the income of $41,576 which resulted in the year ended December 31, 1997 and the loss of $129,930 which was reported for 1996. The primary reason for the increase in the loss was the result of improvements made at Foxhunt Apartments. Such improvements included new carpeting in all common areas and in a considerable number of apartments, both interior and exterior painting, and replacement of a significant number of appliances and cabinets in the apartments totaling approximately $409,000. In accordance with the joint venture agreement, 11.5% of the income or loss is allocated to the Partnership and 88.5% is allocated to the other joint venturer. Accordingly, $108,517 of the 1998 loss is allocated to the Partnership and $797,428 is allocated to the other joint venture partner; $4,781 of the 1997 income was allocable to the Partnership and $36,795 was allocated to the other joint venturer, while for the year 1996, $14,942 of the reported loss was allocable to the Partnership and $114,988 was allocable to the other joint venturer.
The Lakeview Village Joint Venture generated a net loss of $51,040 for the year ended December 31, 1998; the loss from operations however totaled $1,155,516 with the difference being the result of income from debt forgiveness and the gain that resulted from the sale of the property. The property was sold during December of 1998 for a sales price of $3.4 million. The proceeds were not enough to pay the debt obligation and all associated costs of the sale, but management negotiated a partial forgiveness of debt with the lender. The sale resulted in a total gain of $851,317 and income from extinguishment of debt totaling $253,159. The loss for the year ended December 31, 1997 was $290,713 while the loss for 1996 was $222,600. In accordance with the joint venture agreement, 16.22% of the loss is allocated to the Partnership and 83.78% is allocated to the other joint venturer. For 1998, the loss allocated to the Partnership is $8,279 and $42,761 is allocated to the other joint venture partner. For 1997, $47,154 of the loss was allocated to the Partnership and $243,559 was allocated to the other joint venturer and for 1996, $36,106 of the loss was allocated to the Partnership and $186,494 of the loss was allocable to the other joint venturer.
ITEM 7: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Con't.)
Results of Operations (Con't.): - -------------------------------
The tax basis loss for the Partnership for the year ended December 31, 1998 was $622,261 or $7.68 per limited partnership unit. The sale of Lakeview Apartments resulted in a taxable gain to the Partnership of $176,547 or $2.18 per limited partnership unit. For the year ended December 31, 1997, the tax basis loss for the Partnership was $656,602 or $8.10 per limited partnership unit compared to a tax loss of $136,486 or $1.68 per unit for the year ended December 31, 1996. The Partnership agreement provides for the taxable income or losses to be allocated 97% to the Limited Partners and 3% to the General Partners, and in accordance with this and the Internal Revenue Code, the loss for the year ended December 31, 1998 was allocated in this fashion.
ITEM 7A:
ITEM 7A: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK - -------------------------------------------------------------------
The Partnership does not have investments in instruments which are subject to market risk (e.g., derivatives, options or other interest sensitive instruments).
ITEM 8:
ITEM 8: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA - ---------------------------------------------------
Listed under Item 14 of this report.
ITEM 9:
ITEM 9: CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND - ----------------------------------------------------------------------- FINANCIAL DISCLOSURE --------------------
None.
PART III
ITEM 10:
ITEM 10: DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT - -----------------------------------------------------------
The Partnership, as an entity, does not have any directors or officers. The Individual General Partner of the Partnership is Joseph M. Jayson. The directors and executive officers of Realmark Properties, Inc., the Partnership's Corporate General Partner, as of March 1, 1999, are listed below. Each director is subject to election on an annual basis.
Joseph M. Jayson, President and Director of Realmark Properties, Inc. and Judith P. Jayson, Vice President and Director of Realmark Properties, Inc., are married to each other.
The Directors and Executive Officers of the Corporate General Partner and their principal occupations and affiliations during the last five years or more are as follows:
Joseph M. Jayson, age 60, is Chairman, Director and sole stockholder of J. M. Jayson and Company, Inc. and certain of its affiliated companies: U.S. Apartments LLC, Westmoreland Capital Corporation, Oilmark Corporation and U.S. Energy Development Corporation. In addition, Mr. Jayson is chairman of Realmark Corporation, Chairman of Realmark Properties, Inc., wholly-owned subsidiaries of J. M. Jayson and Company, Inc. and co-general partner of Realmark Property Investors Limited Partnership, Realmark Property Investors Limited Partnership-II, Realmark Property Investors Limited Partnership-III, Realmark Property Investors Limited Partnership-IV, Realmark Property Investors Limited Partnership-V, Realmark Property Investors Limited Partnership-VI A, and Realmark Property Investors Limited Partnership-VI B. Mr. Jayson is a member of the Investment Advisory Board of the Corporate General Partner. Mr. Jayson has been in real estate for the last 36 years and is a Certified Property Manager as designated by the Institute of Real Estate Management ("I.R.E.M."). Mr. Jayson received a B.S. Degree in Education in 1961 from Indiana University , a Masters Degree from the University of Buffalo in 1963, and has served on the Educational Faculty of the Institute of Real Estate Management. Mr. Jayson has for the last 36 years been engaged in various aspects of real estate brokerage and investment. He brokered residential properties from 1962 to 1964, commercial investment properties from 1964 to 1967, and in 1967 left commercial real estate to form his own investment firm. Since that time, Mr. Jayson and J. M. Jayson & Company, Inc. have formed or participated in various ways with forming over 30 real estate related limited partnerships. For the past seventeen years, Mr. Jayson and J.M. Jayson & Company, Inc., and an affiliate have also engaged in developmental drilling for gas and oil.
Judith P. Jayson, age 59, is currently Vice President and a Director of Realmark Properties, Inc. She is also a Director of the property management affiliate, Realmark Corporation. Mrs. Jayson has been involved in property management for the last 37 years and has extensive experience in the hiring and training of property management personnel and in directing, developing and implementing property management systems and programs. Mrs. Jayson, prior to joining the firm in 1973, taught business in the Buffalo, New York High School System. Mrs. Jayson graduated from St. Mary of the Woods College in Terre Haute, Indiana, with a degree in Business Administration. Mrs. Jayson is the wife of Joseph M. Jayson, the Individual General Partner.
ITEM 10: DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT (Con't.) - --------------------------------------------------------------------
Michael J. Colmerauer, 40, is Secretary and in-house legal counsel for J.M. Jayson and Company, Inc., Realmark Corporation, Realmark Properties, Inc. and other companies affiliated with the General Partners. He received a Bachelor's Degree (BA) from Canisius College in 1980 and a Juris Doctors (J.D.) from the University of Tulsa in 1983. Mr. Colmerauer is a member of the American and Erie County Bar Association and has been employed by the Jayson group of companies for the last 15 years.
ITEM 11:
ITEM 11: EXECUTIVE COMPENSATION - -------------------------------
No direct remuneration was paid or payable by the Partnership to directors and officers (since it has no directors or officers) for the years ended December 31, 1998, 1997 or 1996, nor was any direct remuneration paid or payable by the Partnership to directors or officers of Realmark Properties, Inc., the Corporate General Partner and sponsor, for the years ended December 31, 1998, 1997 or 1996.
The following table sets forth for the years ended December 31, 1998, 1997 and 1996, the compensation paid by the Partnership, directly or indirectly, to affiliates of the General Partners:
The Corporate General Partner is entitled to a continuing Partnership Management Fee equal to 7% of net cash flow (as defined in the Partnership Agreement) of which 2% is subordinated to the receipt by the Limited Partners of a non cumulative annual cash return equal to 7% of the average of their adjusted Capital Contributions (as defined in the Partnership Agreement). These fees amounted to $15,900 for the year ended December 31, 1996. No such fees were paid for the years ended December 31, 1998 and 1997. The General Partners are entitled to 3% of Distributable Cash (as defined in the Partnership Agreement) and to certain expense reimbursements with respect to Partnership operations.
ITEM 11: EXECUTIVE COMPENSATION (Con't.) - ------------------------------- --------
Net income or loss and proceeds arising from a sale or refinancing of property shall be distributed: first, to the Limited Partners and amount equivalent to a 7% return on the average of their adjusted capital contributions; second, to the corporate general partner a 3% property disposition fee provided, however, that such fees shall be reduced, but not below zero, by the amounts necessary to pay to Limited Partners whose subscriptions were accepted by January 31, 1989, an additional cumulative annual return (not compounded) equal to 2% of their average adjusted capital contributions, and to Limited Partners whose subscriptions were accepted between February 1, 1989 and June 30, 1989, an additional cumulative annual return (not compounded) equal to 1% of their average adjusted capital contributions commencing with the first fiscal quarter following the termination of the offering of units; third, to the Limited Partners, an amount equal to their capital contributions, then an amount equal to an additional 5% of the average of their adjusted capital contributions; fourth, to all Partners, an amount equal to their respective positive capital balances; finally, in the ratio of 87% to the Limited Partners and 13% to the General Partners.
ITEM 12:
ITEM 12: SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT - -----------------------------------------------------------------------
No person is known to the Partnership to own of record or beneficially, more than five percent (5%) of the Units of Limited Partnership Interests of the Partnership. The General Partners, as of December 31, 1998 owned no Units of Limited Partnership Interest.
ITEM 13:
ITEM 13: CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS - -------------------------------------------------------
(a) Transactions with Management and Others - --- ---------------------------------------
No transactions have occurred between the Partnership and those in the management of Realmark Properties, Inc. All transactions between the Partnership and Realmark Properties, Inc. (the Corporate General Partner) and any other affiliated organization are described in Item 11 of this report and in Note 7 to the financial statements.
All other schedules are omitted because they are not applicable or the required information is shown in the financial statements or the notes thereto.
(b) Reports on Form 8-K - --- -------------------
None.
(c) Exhibits
4. Instruments defining the rights of security holders, including indentures
(a) Certificate of Limited Partners filed with the Registration Statement of the Registrant Form S-11, filed September 30, 1987 and subsequently amended, incorporated herein by reference.
10. Material contracts
(b) Property Management Agreement with Realmark Corporation included with the Registration Statement of the Registrant as filed and amended to date incorporated herein by reference.
INDEPENDENT AUDITORS' REPORT
The Partners Realmark Property Investors Limited Partnership-VI B:
We have audited the accompanying balance sheets of Realmark Property Investors Limited Partnership- VI B as of December 31, 1998 and 1997, and the related statements of operations, partners' capital (deficit), and cash flows for each of the three years in the period ended December 31, 1998. Our audits also included the financial statement schedule listed in the Index at Item 14.