EX-13 3 west13b.txt EXHIBIT 13 B [LETTERHEAD OF WIEN & MALKIN LLP] November 30, 2000 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, 2000. The lessee reported profit of $5,903,444 subject to addi- tional rent for the lease year ended September 30, 2000, as against profit of $5,277,912 for the lease year ended September 30, 1999. Additional rent for the lease year ended September 30, 2000 was $3,327,722; $801,999 was advanced against additional rent so that the balance of additional rent is $2,525,723. 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 $252,572 of the additional rent and the balance of $2,273,151 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 $2,273,151 represents a return of about 63.1% 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, 2000 were about 83.1% 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. -47- 250 West 57th St. Associates Computation of Additional Payment for Supervisory Services and Distribution For the Lease Year Ended September 30, 2000 Secondary additional rent $2,525,723 Primary additional rent for the lease year ended September 30, 2000 752,000 3,277,723 Less, additional basic payment of Wien & Malkin LLP from primary overage rent 12,000 Total rent to be distributed 3,265,723 15% return on $3,600,000 investment 540,000 Subject to additional payment at 10% to Wien & Malkin LLP $2,725,723 Additional payment at 10% $ 272,572 Paid to Wien & Malkin LLP as advances for additional rent 20,000 Balance of additional payment to Wien & Malkin LLP $ 252,572 Summary: Additional distribution to participants $2,273,151 Payment to Wien & Malkin LLP, as above 252,572 Total secondary additional rent available for distribution to participants and payment to Wien & Malkin LLP $2,525,723 -48- [LETTERHEAD OF ROGOFF & COMPANY, P.C. CERTIFIED PUBLIC ACCOUNTANTS] Fisk Building Associates 60 East 42nd Street New York, New York 10165 Gentlemen: In accordance with our engagement, we have compiled the special- purpose statement of income and expense of Fisk Building Associates for the lease year ended September 30, 2000. 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 compilation, 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, 2000. New York, New York October 23, 2000 -49- Fisk Building Associates Statement of Income and Expense October 1, 1999 through September 30, 2000 Income: Rent income $11,332,902 Escalation income 629,162 Electric income, net 809,577 Other income 124,892 Total Income 12,896,533 Expenses: Real estate taxes $1,806,333 Labor costs 2,035,706 Repairs, supplies and improvements 789,112 Management and leasing 856,811 Fuel oil 96,964 Professional fees 366,327 Security 228,188 Security monitor system 83,328 Water 73,975 Insurance 51,900 Rubbish removal 46,979 Telephone 27,334 Advertising 147,953 Miscellaneous 19,159 Total expenses before rent expense 6,630,069 Net income before rent expense 6,266,464 Less, Basic rent expense 363,020 Net income subject to primary and secondary additional rent 5,903,444 Less, Primary additional rent 752,000 Net income subject to secondary additional rent $ 5,151,444 Secondary additional rent at 50% $ 2,575,722 Computation of Additional Rent due Landlord: Primary additional rent $ 752,000 Secondary additional rent 2,575,722 Total Additional Rent 3,327,722 Less, Advances against additional rent 801,999* Additional rent due landlord $ 2,525,723 *Consisting of primary additional rent of $752,000 and $49,999 of interest earned and retained by 250 West 57th St. Associates on funds borrowed for the improvement program. The accompanying letter of transmittal and notes are an integral part of this statement. -50- 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. -51-