[Wien & Malkin LLP Letterhead]
November 30, 2003
TO PARTICIPANTS IN 250 WEST 57th ST. ASSOCIATES L.L.C. ("Associates"):
We enclose the operating report of the lessee, Fisk Building Associates L.L.C., for the fiscal year of the lease ended September 30, 2003. The lessee reported profit of $5,458,830 subject to additional rent for the lease year ended September 30, 2003, as against profit of $3,088,058 subject to additional rent for the lease year ended September 30, 2002. Additional rent for the lease year ended September 30, 2003 was $3,082,160; $752,000 was advanced against additional rent so that the balance of additional rent is $2,330,160.
Wien & Malkin LLP receives an additional payment for supervisory services of 10% of distributions in excess of 15% per annum on the original cash investment of $3,600,000. After reserving $20,000 for advances by Associates for payment of New York State 2004 estimated tax for non-resident individual investors and deducting $500 for the annual New York State LLC filing fees, $2,332,915 is available for distribution. Accordingly, Wien & Malkin LLP received $233,292 of the additional rent and the balance of $2,099,623 is being distributed to the participants. A check for your share of the additional distribution and the computation of the additional payment to Wien & Malkin LLP and distribution are enclosed.
The additional distribution of $2,099,623 represents a return of about 58.3% on the original cash investment of $3,600,000. Regular monthly distributions are at the rate of 20% a year, so that distributions for the lease year ended September 30, 2003 were about 78.3% per annum.
If you have any question about the enclosed material, please communicate with the undersigned.
Cordially yours,
WIEN & MALKIN LLP
By: Mark Labell
ML/fm
Encs.
250 West 57th St. Associates L.L.C. | ||||
Computation of Additional Payment for | ||||
Supervisory Services and Distribution | ||||
For the Lease Year Ended September 30, 2003 | ||||
Secondary additional rent | $ 2,330,160 | |||
Primary additional rent for the lease year ended September 30, 2003 | 752,000 | |||
3,082,160 | ||||
Add: | Additional in connection with interest earned on excess mortgage proceeds | 23,255 | ||
3,105,415 | ||||
Less: | Reserve for advances by Associates for payment of 2004 New York State estimated tax for non-resident individual investors | $ 20,000 | ||
NYS 2004 LLC filing fee | 500 | 20,500 | ||
3,084,915 | ||||
Less: | Additional basic payment to Wien & Malkin LLP from primary overage rent | 12,000 | ||
Total rent to be distributed | 3,072,915 | |||
Less: | 15% return on $3,600,000 investment | 540,000 | ||
Subject to additional payment at 10% to Wien & Malkin LLP | $ 2,532,915 | |||
Additional payment at 10% | $ 253,292 | |||
Paid to Wien & Malkin LLP as advance for additional rent | 20,000 | |||
Balance of additional payment to Wien & Malkin LLP | $ 233,292 | |||
Summary: | ||||
Additional distribution to participants | $ 2,099,623 | |||
Payment to Wien & Malkin LLP, as above | 233,292 | |||
Total secondary additional rent available for distribution | ||||
to participants and payment to Wien & Malkin LLP | $ 2,332,915 |
Anchin, Block & AnchinLLPAccountants and Consultants
1375 Broadway
New York, New York 10018 (212) 840-3456
FAX (212) 840-7066
ACCOUNTANTS' COMPILATION REPORT
TO THE MEMBERS OF
FISK BUILDING ASSOCIATES L.L.C.:
We have compiled the accompanying special-purpose statement of income and expense of Fisk Building Associates L.L.C. (a limited liability company) ("Associates") for the lease year ended September 30, 2003 in accordance with standards established by the American Institute of Certified Public Accountants.
A compilation is limited to presenting information that is the representation of management. We have not audited or reviewed the accompanying special-purpose statement and, accordingly, do not express an opinion or any other form of assurance on it.
The accompanying special-purpose statement of income and expense was prepared for the determination of additional rent due to 250 West 57th St. Associates L.L.C. in accordance with paragraph 2(B) of the lease, as modified, between Associates and 250 West 57th St. Associates L.L.C, and is not intended to be a presentation in conformity with generally accepted accounting principles..
This report is intended solely for the information and use of the managements of Associates and 250 West 57th St. Associates L.L.C., and should not be used for any other purpose.
Anchin, Block & AnchinLLP
New York, New York November 5, 2003
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Special Purpose Statement of Income and Expense |
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October 1, 2002 through September 30, 2003 |
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Income: |
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| Rent income |
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| $ | 12,428,572 |
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| Escalation rent income |
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| 1,285,643 |
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| Net electric income |
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| 601,628 |
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| Other income |
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| 266,978 |
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Total Income |
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| $ | 14,582,821 |
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Expenses: |
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| Real estate taxes |
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| 2,467,128 |
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| Labor costs |
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| 2,448,658 |
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| Repairs, supplies and improvements |
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| 1,541,500 |
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| Management and leasing |
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| 547,793 |
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| Fuel oil |
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| 166,857 |
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| Professional fees |
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| 571,380 |
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| Security monitor system |
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| 39,853 |
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| Water and sewer charges |
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| 76,686 |
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| Insurance |
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| 289,038 |
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| Telephone |
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| 35,407 |
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| Advertising |
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| 149,539 |
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| Miscellaneous |
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| 37,767 |
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Total Expenses |
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| 8,371,606 |
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Net Income before rent expense |
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| 6,211,215 |
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Less, Basic rent expense |
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| 752,385 |
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Net Income subject to primary and secondary additional rent |
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| 5,458,830 |
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Less, Primary additional rent |
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| 752,000 |
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Net income subject to seconday additional rent |
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| $ | 4,706,830 |
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Seconday additional rent at 50% |
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| $ | 2,353,415 |
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Computation of Additional Rent due Landlord: |
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| Primary additional rent |
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| $ | 752,000 |
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| Secondary additional rent |
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| 2,353,415 |
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Total Additional rent |
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| 3,105,415 |
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Less, Advances against additional rent |
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| 775,255 | * | |||
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Additional rent due Landlord |
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| $ | 2,330,160 |
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* | Consisting of primary additional rent of $752,000 and $23,255 of interest earned and retained by 250 West 57th St. Associates L.L.C. on funds borrowed for the improvement program. |
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See accompanying Accountants' Compilation Report |
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Fisk Building Associates L.L.C.
Special Purpose Statement of Income and Expense
October 1, 2002 through September 30, 2003
Note 1 - The lease asmodifiedeffective January 1, 1984 provides for additional rent, as follows:
Additional rent equal to thefirst$752,000 of the Lessee's net operating income, asdefined,in each lease year.
Further additional rent equal to 50% of the Lessee's remaining net operating income, asdefined,in each lease year.