Wien & Malkin LLP

LINCOLN BUILDING

60 EAST 42^ND STREET

NEW YORK, NEW YORK 10165-0015

TELEPHONE: (212) 687-8700

TELECOPIER: (212) 986-7679

November 30, 2004

TO PARTICIPANTS IN 60 EAST 42nd ST. ASSOCIATES L.L.C. ("Associates"):

We enclose the operating report of the lessee, Lincoln Building Associates L.L.C., for the fiscal year of the lease ended September 30, 2004. The lessee reported profit of $14,793,207 subject to additional rent for the lease year ended September 30, 2004, as against profit of $14,053,792 subject to additional rent for the lease year ended September 30, 2003. Additional rent for the lease year ended September 30, 2004 was $7,923,504. $1,053,800 at $87,817 per month was advanced against additional rent so that the balance of additional rent is $6,869,704.

Wien & Malkin LLP receives an additional payment for supervisory services of 10% of distributions in excess of 14% per annum on the cash investment. After reserving $700 for payment of the annual New York State limited liability company filing fee of $700, $6,869,004 is available for distribution. Accordingly, Wien & Malkin received $686,900 of the additional rent and the balance of $6,182,104 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 and distribution are enclosed.

The additional distribution of $6,182,104 represents a return of about 88.3% on the original cash investment of $7,000,000. Regular monthly distributions are at the rate of about 14.9% a year, so that distributions for the year ending December 31, 2004 will be about 103.2% per annum.

If you have any question about the enclosed material, please communicate with the undersigned.

Cordially yours,

WIEN & MALKIN LLP

By: Mark Labell

ML:dm

Encs.

60 East 42nd St. Associates L.L.C.
Computation of Additional Payment for
Supervisory Services and Distribution
For the Lease Year Ended September 30, 2004
Secondary additional rent					$ 6,869,704
Less:	NYS 2005 LLC filing fee		700
			6,869,004
Primary additional rent 2004
	Monthly distributions at about 14.9% per annum on $7,000,000 original investment	$ 1,046,420
	Additional monthly payment to Wien & Malkin	7,380	1,053,800
Total rent to be distributed					7,922,804
Less: 14% return on $7,000,000 investment					980,000
Subject to additional payment at 10% to Wien & Malkin						$ 6,942,804
Additional payment at 10%					$ 694,280
Paid to Wien & Malkin as advance for additional payment						7,380
Balance of additional payment to Wien & Malkin						$ 686,900
Summary:
	Additional distribution to participants		$ 6,182,104
	Payment to Wien & Malkin, as above		686,900
Total secondary additional rent available for distribution to participants and payment to Wien & Malkin				$ 6,869,004

Anchin, Block & Anchin LLP

Accountants and Consultants

1375 Broadway

New York, New York 10018

(212) 840-3456

FAX (212) 840-7066

ACCOUNTANTS COMPILATION REPORT

TO THE MEMBERS OF

    LINCOLN BUILDING ASSOCIATES L.L.C.:

We have compiled the accompanying special-purpose statement of income and expense of Lincoln Building Associates L.L.C. (a limited liability company) ("Associates") for the lease year ended September 30, 2004 in accordance with standards established by the American Institute of Certified Public Accountants.

A compilation is limited to presenting information that is the representation of management. We have not audited or reviewed the accompanying special-purpose statement and, accordingly, do not express an opinion or any other form of assurance on it.

The accompanying special-purpose statement of income and expense was prepared for the determination of additional rent due to 60 East 42^nd St. Associates L.L.C. in accordance with the lease, as modified, between Associates and 60 East 42^nd St. Associates L.L.C, and is not intended to be a presentation in conformity with generally accepted accounting principles.

This report is intended solely for the information and use of the managements of Associates and 60 East 42^nd St. Associates, L.L.C., and should not be used for any other purpose.

Anchin, Block & AnchinLLP

New York, New York

November 8, 2004

Lincoln Building Associates L.L.C.
Special Purpose Statement of Income and Expense
Lease Year Ended 2004
Income:
	Rent income	$	39,049,270
	Net electric income		857,337
	Other income		958,222
Total Income						$		40,864,829
Expenses:
	Basic rent			2,330,787
	Real estate taxes			7,751,323
	Labor costs			6,473,808
	Repairs, supplies and improvements			5,407,986
	Steam			627,368
	Management and leasing			1,634,804
	Professional fees			741,785
	Insurance			598,369
	Water and sewer charges			24,809
	Miscellaneous			480,583
Total Expenses					26,071,622
Net Income subject to additional rent								14,793,207
Less, Net Income subject to primary
	Additional rent							1,053,800
Net Income subject to secondary additional rent						$		13,739,407
Secondary additional rent at 50%						$		6,869,704
Computation of Additional Rent due Landlord:
	Primary additional rent					$		1,053,800
	Secondary additional rent							6,869,704
Total Additional rent							7,923,504
Less, Advances against additional rent					1,053,800
Additional rent due Landlord						$			6,869,704
See accompanying Accounts' Compilation Report