[LETTERHEAD OF WIEN & MALKIN LLP]

 

 

 

										April 29, 2005

To Members and Participants in 60 East 42nd St. Associates L.L.C.

	Federal Identification Number 13-6077181	

We enclose the annual report of 60 East 42nd St. Associates L.L.C. ("Associates") for the year 2004.  Associates, which is treated as a partnership for income tax purposes, owns the premises at 60 East 42nd Street (the Lincoln Building), and at 301 Madison Avenue, New York City.  Associates' annual report on Form 10-K for the year 2004 has been filed with the SEC and is available on its website at www.sec.gov.  Historical and more detailed information can be found in our 10-K.

The reported income for 2004 was $6,298,875 which was less than distributions of $7,228,522.  The difference is treated as a return of capital investment, rather than as taxable income, and results from depreciation of building improvements and equipment and amortization of mortgage refinancing costs and leasing commissions. Taking into account that a portion of prior distributions constituted a return of capital, the book value on December 31, 2004 of an original cash investment of $10,000 was a deficit balance of $10,981.

Monthly distributions during 2004 totaled $1,046,420, or about 14.9% per annum on the original cash investment of $7,000,000.  The distributions were made possible by advances from the lessee against additional rent aggregating $1,053,800.

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, $6,869,004 was available for distribution.  Accordingly, Wien & Malkin received $686,900 of the additional rent (in addition to $7,830 per annum paid monthly) and the balance of $6,182,104 was distributed to the participants on November 30, 2004.  The additional distribution of $6,182,104 represented an annual return of about 88.3% on the cash investment of $7,000,000, so that total distributions for 2004 were at the rate of about 103.2% per annum.

Schedule K-1 form(s) (Form 1065), containing 2004 tax information, were mailed to the participants on March 23, 2005.  

If you have any question about the enclosed material please communicate with our office.

Cordially yours,

WIEN & MALKIN LLP

									By:  Mark Labell

ML:mjt

Enc.

 

 

 

 

 

 

[LETTERHEAD OF J.H. COHN, CPA]

 

 

 

 

 

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

 

To the participants in 60 East 42nd St. Associates L.L.C. (a limited liability company):

 

We have audited the accompanying balance sheet of 60 East 42nd St. Associates L.L.C. ("Associates") as of December 31, 2004, and the related statements of income, members' deficiency and cash flows for the year then ended.  These financial statements are the responsibility of Associates' management.  Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of 60 East 42nd St. Associates L.L.C. as of December 31, 2004, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

New York, N.Y.

March 21, 2005

	60 EAST 42ND ST. ASSOCIATES L.L.C.

(A Limited Liability Company)

	BALANCE SHEET

DECEMBER 31, 2004