Dakotah Hills Offices Limited Partnership, An Arizona Limited Partnership, William M. and Dianne B. Stephens, Tax Matters Partner, et al. - Page 3

                                        - 3 -                                         
                                  FINDINGS OF FACTS                                   
               This case was submitted on the basis of the entire record.             
          The stipulation of facts and the annexed exhibits are                       
          incorporated herein and found accordingly.  The principal place             
          of business of the partnerships was located in Tucson, Arizona,             
          at the time the petitions were filed.  The partnerships were                
          formed on the following dates:                                              
               Dakotah Hills Offices Limited           October 25, 1984               
               Pavilion II Limited Partnership         May 16, 1986                   
               Copper Crest I Limited Partnership      February 7, 1986               
               Dakotah Hills Retail Limited PartnershipJuly 19, 1985                  
               Club Carmel Limited Partnership         August 22, 1985                
               Pio Decimo II Limited Partnership       December 18, 1984              
               Ina Thornydale Limited Partnership      April 9, 1985                  
               Ironwood Manufacturing Limited PartnershipDecember 3, 1985               
               Vail Commerce Center Limited PartnershipDecember 3, 1985               

               The Agreements and Certificates of Limited Partnership                 
          (Agreements) designated, inter alia, D. Randall Jenkins, and the            
          JNC Companies, as the general partners for the partnerships.                
          Most of the Agreements provided that the partnerships were to be            
          capitalized by promissory notes (investor notes) which were                 
          executed and delivered by the limited partners to the                       
          partnerships as consideration for the acquisition of their                  
          partnership interests, i.e., "partnership units".  In most                  
          instances, the Agreements provided:                                         
                    2.10 First Promissory Note(s):  Shall mean the                    
               Demand Promissory Note(s) executed by the Limited                      
               Partners as payment for each Limited Partnership                       

               3(...continued)                                                        
          indicated.                                                                  




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