[LETTERHEAD OF
WIEN MALKIN & BETTEX
COUNSELLORS AT LAW]
November 30, 1995
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,
1995. The lessee reported profit of $3,060,683 subject to addi-
tional rent for the lease year ended September 30, 1995, as
against profit of $3,487,544 for the lease year ended September
30, 1994.
Additional rent for the lease year ended September 30, 1995
was $1,906,342; $752,000 was advanced against additional rent so
that the balance of additional rent is $1,154,342. The total
amount to be distributed is $1,132,037 after payment of $22,305
for expenditures in connection with the refinancing of the first
mortgage on March 1, 1995.
Wien, Malkin & Bettex receives an additional payment for
supervisory services of 10% of distributions in excess of 15% per
annum on the cash investment. Accordingly, Wien, Malkin & Bettex
received $113,204 of the additional rent and the balance of
$1,018,833 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 & Bettex and distribution
are enclosed.
The additional distribution of $1,018,833 represents a return
of about 28.3% on the cash investment of $3,600,000. Regular
monthly distributions are at the rate of 20% a year, so that dis-
tributions for the lease year ended September 30, 1995 were about
48.3% per annum.
If you have any question about the enclosed material please
communicate with us at our New York office or, if it is more con-
venient, at our branch office in Palm Beach, Florida.
Cordially yours,
WIEN, MALKIN & BETTEX
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, 1995
Secondary additional rent $1,154,342
Less, mortgage refinancing costs 22,305
Subject to Secondary additional rent 1,132,037
Primary additional rent for the lease
year ended September 30, 1995 752,000
1,884,037
Less, additional basic payment of Wien,
Malkin & Bettex from primary overage
rent 12,000
Total rent to be distributed 1,872,037
15% return on $3,600,000 investment 540,000
Subject to additional payment at 10%
to Wien, Malkin & Bettex $1,332,037
Additional payment at 10% $ 133,204
Paid to Wien, Malkin & Bettex as
advances for additional rent 20,000
Balance of additional payment to
Wien, Malkin & Bettex $ 113,204
Summary:
Additional distribution to participants $1,018,833
Payment to Wien, Malkin & Bettex, as above 113,204
Total secondary additional rent available
for distribution to participants and
payment to Wien, Malkin & Bettex $1,132,037
[LETTERHEAD OF
KAUFMAN GOLDSTEIN
CERTIFIED PUBLIC ACCOUNTANTS]
Fisk Building Associates
60 East 42nd Street
New York, New York 10165
Gentlemen:
In accordance with our engagement, we have reviewed the
special-purpose statement of income and expense of Fisk Building
Associates for the lease year ended September 30, 1995.
Our engagement included the examination of statements of
receipts and disbursements for the property, together with supporting
records, but did not include the verification by direct communication
of the income from tenants or liabilities and disbursements to
vendors.
We have no knowledge of any other contingent liabilities
that should be disclosed.
Based on our review, subject to the above, the accompanying
special-purpose statement of income and expense presents fairly the
net operating income, as defined, for the computation of additional
rent, of Fisk Building Associates, for the lease year ended September
30, 1995.
Respectfully submitted,
Kaufman Goldstein
New York, New York
October 18, 1995
Fisk Building Associates
Statement of Income and Expense
October 1, 1994 through September 30, 1995
(Unaudited)
Income:
Rent income $ 9,008,305
Escalation income 752,402
Electric income, net 531,890
Other income 67,733
Total Income 10,360,330
Expenses:
Real estate taxes $2,033,393
Labor costs 1,781,145
Repairs, supplies and improvements 1,625,922
Management and leasing 706,097
Fuel oil 74,261
Professional fees 197,354
Security 171,188
Security monitor system 22,892
Water 41,000
Insurance 110,068
Rubbish removal 88,270
Telephone 11,057
Advertising 76,924
Miscellaneous 27,303
Total expenses before rent expense 6,966,874
Net income before rent expense 3,393,456
Less, Basic rent expense 332,773
Net income subject to primary and
secondary additional rent 3,060,683
Less, Primary additional rent 752,000
Net income subject to secondary additional rent 2,308,683
Secondary additional rent at 50% $1,154,342
Computation of additional rent due landlord:
Primary additional rent $ 752,000
Secondary additional rent 1,154,342
Total additional rent 1,906,342
Less, Advances against additional rent 752,000
Additional rent due landlord $1,154,342
The accompanying letter of transmittal and notes are an integral part of this
statement.
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Fisk Building Associates
Notes to Financial Statement
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.
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