[Wien & Malkin LLP Letterhead]
November 30, 2005
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, 2005. The lessee reported profit of $4,319,160 subject to additional rent for the lease year ended September 30, 2005, as against profit of $3,507,582 subject to additional rent for the lease year ended September 30, 2004. Additional rent for the lease year ended September 30, 2005 was $2,535,579; $752,000 was advanced against additional rent so that the balance of additional rent is $1,783,579.
The ongoing upgrade and repositioning of 250 West 57th Street is accomplishing its objectives. With the combination and reconfiguration of decades old, small suites into newly built, larger suites the number of tenants at this 512,430 square feet building has been decreased from 277362 to 232234. The new, larger tenants are of higher credit quality and with longer lease terms. At the same time, occupancy has been maintained and by December 31, 2005 is expected to be well over 90%.
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 $500 for the annual New York State limited liability company filing fee, $1,783,079 is available for distribution. Accordingly, Wien & Malkin received $178,308 of the additional rent and the balance of $1,604,771 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 $1,604,771 represents a return of about 44.58% 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, 2005 were about 64.58% 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/dm
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, 2005 | |
Secondary additional rent | $1,783,579 |
Less: NYS 2005 LLC filing fee | 500 |
Primary additional rent for the lease year ended September 30, 2005 | 752,000 |
2,535,079 | |
Less: Additional basic payment to Wien & Malkin from primary Overage rent | 12,000 |
Total rent to be distributed | 2,523,079 |
Less: 15% return on $3,600,000 investment | 540,000 |
Subject to additional payment at 10% to Wien & Malkin | $1,983,079 |
Additional payment at 10% | $ 198,308 |
Paid to Wien & Malkin as advance for additional rent | 20,000 |
Balance of additional payment to Wien & Malkin | $ 178,308 |
Summary: | |
Additional distribution to participants | $ 1,604,771 |
Payment to Wien & Malkin, as above | 178,308 |
Total secondary additional rent available for distribution to participants and payment to Wien & Malkin | $ 1,783,079 |
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
LINCOLN BUILDING ASSOCIATES L.L.C.:
We have compiled the accompanying special-purpose statement of income and expense of Lincoln Building Associates L.L.C. (a limited liability company) ("Associates") for the lease year ended September 30, 2005 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 60 East 42nd St. Associates L.L.C. in accordance with the lease, as modified, between Associates and 60 East 42nd 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 60 East 42nd St. Associates, L.L.C., and should not be used for any other purpose.
New York, New York
November 14, 2005
Fisk Building Associates L.L.C. | ||||
Special Purpose Statement of Income and Expense | ||||
Lease Year End (2005 & 2004) | ||||
L/Y/E 9/30/05 | L/Y/E 9/30/04 | |||
Income | ||||
Rent income | $14,306,241 | $12,351,791 | ||
Escalation rent income | 1,513,893 | 1,088,216 | ||
Net electric income | 459,774 | 532,112 | ||
Other income | 259,763 | 529,336 | ||
Total Income | $16,539,671 | $14,501,455 | ||
Expenses: | ||||
Real Estate taxes | 3,002,168 | 2,716,752 | ||
Labor Costs | 2,629,579 | 2,617,860 | ||
Repairs, supplies and improvements | 3,533,930 | 1,668,415 | ||
Management and leasing | 508,123 | 1,497,428 | ||
Fuel oil | 161,371 | 157,305 | ||
Professional fees | 384,194 | 477,282 | ||
Security monitor system | 15,319 | 30,972 | ||
Water and sewer charges | 18,382 | 51,687 | ||
Insurance | 333,608 | 329,142 | ||
Telephone | 30,333 | 34,119 | ||
Advertising | 409,940 | 489,605 | ||
Miscellaneous | 112,607 | 99,915 | ||
Total Expenses | 11,139,554 | 10,170,482 | ||
Net Income before rent expense | 5,400,117 | 4,330,973 | ||
Less, Basic rent expense | 1,080,957 | 823,391 | ||
Net Income subject to primary and secondary additional rent Less, Primary additional rent |
|
4,319,160 752,004 | 3,507,582 752,000 | |
Net income subject to secondary additional rent | $3,567,156 | $2,755,582 | ||
Secondary additional rent at 50% | $1,783,578 | $1,377,791 | ||
Computation of Additional Rent due Landlord: | ||||
Primary additional rent | $ 752,004 | $ 752,000 | ||
Secondary additional rent | 1,783,578 | 1,377,791 | ||
Total Additional rent | 2,535,582 | 2,129,791 | ||
Less, Advances against additional rent | 806,219* | 776,042 | ||
Additional rent due Landlord | $1,729,363 | $1,353,749 |
* Consisting of primary additional rent of $752,004 and $54,215 of interest earned and retained by 250 West 57th St. Associates L.L.C. on funds borrowed for the improvement program