wien & malkin llp
lincoln building
60 east 42nd street
new york, new york 10165-0015
telephone: (212) 687-8700
telecopier: (212) 986-7679
Wien & Malkin LLP
Lincoln Building
60 East 42nd street
new york, newyork 10165-0015
telephone: (212) 687-8700
telecopier: (212) 986-7679
November 30, 2004
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, 2004. The lessee reported profit of $3,507,582 subject to additional rent for the lease year ended September 30, 2004, as against profit of $5,458,830 subject to additional rent for the lease year ended September 30, 2003. Additional rent for the lease year ended September 30, 2004 was $2,129,791; $752,000 was advanced against additional rent so that the balance of additional rent is $1,377,791.
The profit this year was after significant expenditures for leasing commissions, base building upgrades, tenant installations and pre-builts, including costs for new leases with:
- Duane Reade (4,990 square feet of ground floor retail space) for 15 years at an annual rental of approximately $1,500,000 ($300 per square foot graduating to $364 a foot), plus escalation. Rent under this lease commences in February 2005. Rent previously received from Lechters Inc. for this space was approximately $320,000 a year including escalation.
- National Institute for the Psychotherapies (13,899 square feet) for 15 years at an annual rental of approximately $403,000 ($29 per square foot graduating to $35 a foot), plus escalation. Rent under this lease commenced in October 2004. Rent previously received for this space was approximately $336,000 a year including escalation.
The lessee and Associates have approved a program for additional financing of up to $15,000,000 to cover building upgrade costs. Funds from such financing, to be concluded shortly, will be applied towards building improvement costs. Assuming operations continue on their currently improving trend, such funding will spread these costs over many years, thus stabilizing distributions to participants in accord with the consent program, and should result in increased overage rent next year.
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 deducting $20,000 for reserves and $500 for the annual New York State limited liability company filing fee, $1,357,291 is available for distribution. Accordingly, Wien & Malkin received $135,729 of the additional rent and the balance of $1,221,562 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 and distribution are enclosed.
The additional distribution of $1,221,562 represents a return of about 33.93% 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, 2004 were about 53.93% 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, 2004 | |||||||||||
Secondary additional rent | $1,377,791 | ||||||||||
Less: | Additional reserves | $ 20,000 | |||||||||
NYS 2005 LLC filing fee | 500 | 20,500 | |||||||||
1,357,291 | |||||||||||
Primary additional rent for the lease year ended September 30, 2004 | 752,000 | ||||||||||
2,109,291 | |||||||||||
Less: | Additional basic payment to Wien & Malkin from primary overage rent | 12,000 | |||||||||
Total rent to be distributed | 2,097,291 | ||||||||||
Less: | 15% return on $3,600,000 investment | 540,000 | |||||||||
Subject to additional payment at 10% to Wien & Malkin | $ 1,557,291 | ||||||||||
Additional payment at 10% | $ 155,729 | ||||||||||
Paid to Wien & Malkin as advance for additional rent | 20,000 | ||||||||||
Balance of additional payment to Wien & Malkin | $ 135,729 | ||||||||||
Summary: | |||||||||||
Additional distribution to participants | $ 1,221,562 | ||||||||||
Payment to Wien & Malkin, as above | 135,729 | ||||||||||
Total secondary additional rent available for distribution | |||||||||||
to participants and payment to Wien & Malkin | $ 1,357,291 | ||||||||||
Established 1923
Anchin, Block & AnchinLLP
Accountants 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, 2004 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 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 8, 2004
Fisk Building Associates L.L.C. | ||||||
Special Purpose Statement of Income and Expense | ||||||
Lease Year End 2004 | ||||||
Income: | ||||||
Rent income | $ | 12,351,791 | ||||
Escalation rent income | 1,088,216 | |||||
Net electric income | 532,112 | |||||
Other income | 529,336 | |||||
Total Income | $ | 14,501,455 | ||||
Expenses: | ||||||
Real estate taxes | 2,716,752 | |||||
Labor costs | 2,617,860 | |||||
Repairs, supplies and improvements | 1,668,415 | |||||
Management and leasing | 1,497,428 | |||||
Fuel oil | 157,305 | |||||
Professional fees | 477,282 | |||||
Security monitor system | 30,972 | |||||
Water and sewer charges | 51,687 | |||||
Insurance | 329,142 | |||||
Telephone | 34,119 | |||||
Advertising | 489,605 | |||||
Miscellaneous | 99,915 | |||||
Total Expenses | 10,170,482 | |||||
Net Income before rent expense | 4,330,973 | |||||
Less, Basic rent expense | 823,391 | |||||
Net Income subject to primary and | ||||||
secondary additional rent | 3,507,582 | |||||
Less, Primary additional rent | 752,000 | |||||
Net income subject to secondary additional rent | $ | 2,755,582 | ||||
Secondary additional rent at 50% | $ | 1,377,791 | ||||
Computation of Additional Rent due Landlord: | ||||||
Primary additional rent | $ | 752,000 | ||||
Secondary additional rent | 1,377,791 | |||||
Total Additional rent | 2,129,791 | |||||
Less, Advances against additional rent | 776,042 | * | ||||
Additional rent due Landlord | $ | 1,353,749 | ||||
* | Consisting of primary additional rent of $752,000 and $24,042 of interest earned and retained by 250 West 57th St. Associates L.L.C. on funds borrowed for the improvement program. | |||||
See accompanying Accountants' Compilation Report |