[LETTERHEAD OF WIEN & MALKIN LLP]
November 30, 2001
TO PARTICIPANTS IN 250 WEST 57TH ST. ASSOCIATES:
We enclose the operating report of the lessee, Fisk Building Associates,
for the fiscal year of the lease ended September 30, 2001. The lessee reported
profit of $6,343,859 subject to additional rent for the lease year ended
September 30, 2001, as against profit of $5,903,444 for the lease year ended
September 30, 2000.
Additional rent for the lease year ended September 30, 2001 was
$3,547,930; $815,541 was advanced against additional rent so that the balance
of additional rent is $2,732,389.
Wien & Malkin LLP receives an additional payment for supervisory services
of 10% of distributions in excess of 15% per annum on the cash investment.
Accordingly, Wien & Malkin LLP received $273,239 of the additional rent and
the balance of $2,459,150 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 $2,459,150 represents a return of about
68.31% on the 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, 2001 were about 88.31% per annum.
If you have any question about the enclosed material please communicate
with the undersigned.
Cordially yours,
WIEN & MALKIN LLP
By: Stanley Katzman
SK/fm
Encs.
250 West 57th St. Associates
Computation of Additional Payment for
Supervisory Services and Distribution
For the Lease Year Ended September 30, 2001
Secondary additional rent $2,732,389
Primary additional rent for the lease
year ended September 30, 2001 752,000
3,484,389
Less, additional basic payment to Wien &
Malkin LLP from primary overage rent 12,000
Total rent to be distributed 3,472,389
15% return on $3,600,000 investment 540,000
Subject to additional payment at 10%
to Wien & Malkin LLP $2,932,389
Additional payment at 10% $ 293,239
Paid to Wien & Malkin LLP as
advances for additional rent 20,000
Balance of additional payment to
Wien & Malkin LLP $ 273,239
Summary:
Additional distribution to participants $2,459,150
Payment to Wien & Malkin LLP, as above 273,239
Total secondary additional rent available
for distribution to participants and
payment to Wien & Malkin LLP $2,732,389
[LETTERHEAD OF ROGOFF & COMPANY P.C.]
Accountants' Compilation Report
Fisk Building Associates
60 East 42nd Street
New York, New York 10165
We have compiled the special-purpose statement of income and expense of
Fisk Building Associates for the lease year ended September 30, 2001 for
the determination of additional rent due to 250 West 57th St. Associates
in accordance with paragraph 2 (B) of the lease, as modified, between
Fisk Building Associates and 250 West 57th St. Associates. Such report
is not intended to be a presentation in conformity with generally
accepted accounting principles. Our engagement was conducted in
accordance with Statements for Accounting and Review Services issued by
the American Institute of Certified Public Accountants.
A compilation is limited to presenting, in the form of financial
statements, information that is the representation of management. We
have not audited or reviewed the accompanying special-purpose financial
statement and, accordingly, do not express an opinion or any other form
of assurance on it.
This report is intended solely for the information and use of the
managements of Fisk Building Associates and 250 West 57th Street
Associates, and should not be used for any other purpose.
New York, New York
October 19, 2001
Fisk Building Associates
Special Purpose Statement of Income and Expense
October 1, 2000 through September 30, 2001
Income:
Rent income $11,653,584
Escalation income 766,647
Electric income, net 748,461
Other income 149,629
Total Income $13,318,321
Expenses:
Real estate taxes $1,865,604
Labor costs 2,210,149
Repairs, supplies and improvements 761,356
Management and leasing 373,847
Fuel oil 146,345
Professional fees 327,435
Security 226,907
Security monitor system 80,769
Water 64,025
Insurance 83,700
Rubbish removal 33,661
Telephone 34,157
Advertising 214,885
Miscellaneous 16,168
Total expenses before rent expense 6,439,008
Net income before rent expense 6,879,313
Less, Basic rent expense 535,454
Net income subject to primary and
secondary additional rent 6,343,859
Less, Primary additional rent 752,000
Net income subject to secondary
additional rent $ 5,591,859
Secondary additional rent at 50% $ 2,795,930
Computation of Additional Rent due Landlord:
Primary additional rent $ 752,000
Secondary additional rent 2,795,930
Total Additional Rent 3,547,930
Less, Advances against additional rent 815,541*
Additional rent due landlord $ 2,732,389
*Consisting of primary additional rent of $752,000 and $63,341 of interest
earned and retained by 250 West 57th St. Associates on funds borrowed for
the improvement program.
See accompanying Accountants' Compilation Report and Selected Information.
Fisk Building Associates
Selected Information
Note 1 - The lease as modified effective October 1, 1984 provides for
additional rent, as follows:
Additional rent equal to the first
$752,000 of the Lessee's net operating
income, as defined, in each lease
year.
Further additional rent equal to 50%
of the Lessee's remaining net
operating income, as defined, in each
lease year.