EX-13 4 r13brep.txt EXHIBIT 13B [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.