Estate of Etta H. Weinberg - Page 12

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             below with their yield and discount to net asset value                   
                                           Type of            Discount                
             Partnership                   Investment  Yield   to NAV                 
             American Insured Mortgage 86  M           10.6%  35%                     
             American Insured Mortgage 88  M           9.1%   30%                     
             Hutton/ConAm Realty Investors 4E           8.9%   NA3                     
             IDS/Balcor Income Properties  E           11.1%  51%                     
             Krupp Insured Plus            M           10.9%  29%                     
             Krupp Insured Plus II         M           10.1%  13%                     
             Shearson Lehman Sr. Income FundE           11.5%  NA3                     
             3 Not available.                                                         

             Four of the above partnerships, those with an “M” in the                 
             column entitled Type of Investment, did not own real                     
             properties but invested in portfolios of federally insured               
             mortgages.  Mr. Siwicki believed that they were “less risky              
             than their equity-based counterparts” and “would be                      
             expected to have lower discounts to NAV compared to equity-              
             based real estate partnerships.”  He selected the IDS                    
             Balcor Income Properties, a partnership that owned only two              
             apartment buildings, as the limited partnership that was                 
             most comparable to Hill House that owned a single property.              
             The data for IDS Balcor reported a yield of approximately                
             11 percent and a net asset value discount of 51 percent.                 
                  In identifying an appropriate income stream,                        
             Mr. Siwicki noted that there was a "disconnect between the               
             performance of the [Hill House] partnership and the amount               
             of distributions being made".  For that reason, he chose as              

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Last modified: May 25, 2011