[LETTERHEAD OF
WIEN, MALKIN & BETTEX]
November 30, 1996
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,
1996. The lessee reported profit of $4,068,953 subject to addi-
tional rent for the lease year ended September 30, 1996, as
against profit of $3,060,683 for the lease year ended September
30, 1995.
Additional rent for the lease year ended September 30, 1996
was $2,410,477; $752,000 was advanced against additional rent so
that the balance of additional rent is $1,658,477.
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 $165,848 of the additional rent and the balance of
$1,492,629 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 $1,492,629 represents a return
of about 41.5% 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, 1996 were about
61.5% per annum.
If you have any question about the enclosed material please
communicate with the undersigned.
Cordially yours,
WIEN, MALKIN & BETTEX
By: Stanley Katzman
SK/fm
Encs.
[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, 1996.
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, 1996.
Respectfully submitted
/s/ Kaufman Goldstein
Kaufman Goldstein
New York, New York
October 22, 1996
Fisk Building Associates
Statement of Income and Expense
October 1, 1995 through September 30, 1996
Income:
Rent income $ 9,125,194
Escalation income 665,995
Electric income, net 650,925
Other income 57,388
Total Income 10,499,502
Expenses:
Real estate taxes $1,690,033
Labor costs 1,753,200
Repairs, supplies and improvements 1,329,198
Management and leasing 442,085
Fuel oil 114,475
Professional fees 177,627
Security 160,291
Security monitor system 43,562
Water 55,400
Insurance 123,267
Rubbish removal 75,936
Telephone 12,663
Advertising 104,423
Miscellaneous 31,232
Total expenses before rent expense 6,113,392
Net income before rent expense 4,386,110
Less, Basic rent expense 317,157
Net income subject to primary and
secondary additional rent 4,068,953
Less, Primary additional rent 752,000
Net income subject to secondary
additional rent $ 3,316,953
Secondary additional rent at 50% $ 1,658,477
Computation of Additional Rent due Landlord:
Primary additional rent $ 752,000
Secondary additional rent 1,658,477
Total Additional Rent 2,410,477
Less, Advances against additional rent 752,000
Additional rent due landlord $ 1,658,477
The accompanying letter of transmittal and notes are an integral part
of this statement.
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.
250 West 57th St. Associates
Computation of Additional Payment for
Supervisory Services and Distribution
For the Lease Year Ended September 30, 1996
Secondary additional rent $1,658,477
Primary additional rent for the lease
year ended September 30, 1996 752,000
2,410,477
Less, additional basic payment of Wien,
Malkin & Bettex from primary overage
rent 12,000
Total rent to be distributed 2,398,477
15% return on $3,600,000 investment 540,000
Subject to additional payment at 10%
to Wien, Malkin & Bettex $1,858,477
Additional payment at 10% $ 185,848
Paid to Wien, Malkin & Bettex as
advances for additional rent 20,000
Balance of additional payment to
Wien, Malkin & Bettex $ 165,848
Summary:
Additional distribution to participants $1,492,629
Payment to Wien, Malkin & Bettex, as above 165,848
Total secondary additional rent available
for distribution to participants and
payment to Wien, Malkin & Bettex $1,658,477