[LETTERHEAD OF WIEN & MALKIN LLP]

 

 

 

 

 

	April 30, 2004

To Participants in 250 West 57th St. Associates L.L.C.

     Federal Identification Number 13-6083380		

We enclose the annual report of 250 West 57th St. Associates L.L.C. ("Associates") for the year ended December 31, 2003. Associates, which is treated as a partnership for income tax purposes, owns the Fisk Building at 250 West 57th Street, New York City.

The reported income for 2003 was $2,501,788.  This was less than distributions of $2,819,623 representing the current monthly distributions totaling $720,000 per annum and the additional distribution of $2,099,623, which was paid to participants on November 30, 2003.  The difference results primarily from depreciation of building improvements and amortization of mortgage refinancing costs.

Since the inception of this investment, a portion of the distributions has constituted a return of capital, and has not been reportable as income.  As a result, the book value on December 31, 2003 of an original cash investment of $10,000 was a deficit balance of $4,179.

Additional rent for the lease year ended September 30, 2003 was $3,105,416 (including $23,255 of interest earned and retained on funds borrowed for the improvement program) or an excess of $2,353,416 over advances of $752,000 by the lessee against additional rent ($720,000 to participants, $32,000 to Wien & Malkin LLP).  As approved by the participants, Wien & Malkin LLP receives an additional payment for supervisory services of 10% of distributions in excess of 15% per annum on the original cash investment of $3,600,000.  After reserving $20,000 for advances by Associates for payment of New York State 2004 estimated tax for non-resident individual investors and deducting $500 for the annual New York State 2004 LLC filing fees, $2,332,915 is available for distribution.  Accordingly, Wien & Malkin LLP received $233,292 of the additional rent and the balance of $2,099,623 was distributed to the participants on November 30, 2003.  The additional distribution of $2,099,623 represented an annual return of about 58.3% on the original cash investment of $3,600,000.  Regular monthly distributions are at the rate of 20% per annum on the cash investment so that total distributions for the year ended December 31, 2003 were about 78.3% on the original cash investment.

Schedule K-1 forms (Form 1065), containing 2003 tax information, were mailed to the participants on March 12, 2004.

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

	Cordially yours,

	WIEN & MALKIN LLP

	By:  Mark Labell

ML:fm

Encs.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

250 WEST 57TH STREET ASSOCIATES L.L.C.

FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[LETTERHEAD OF J.H. COHN LLP]

 

 

 

 

 

 

 

 

Independent Auditors' Report

 

To the Members' of

 250 West 57th Street Associates L.L.C.

We have audited the accompanying balance sheet of 250 West 57th Street Associates L.L.C. ("Associates") at December 31, 2003, and the related statements of income and members' deficit and cash flows for the year then ended.  These financial statements are the responsibility of the Associates' management.  Our responsibility is to express an opinion on these financial statements based on our audit.  

We conducted our audit in accordance with auditing standards generally accepted in the United States of America.  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.

As more fully described in Note 2 to the financial statements, Associates has computed depreciation in accordance with the Modified Accelerated Cost Recovery System required for federal income tax purposes, which does not allocate depreciation to expense over the estimated useful lives of the assets.  In our opinion, those assets should be depreciated over their estimated useful lives to conform with accounting principles generally accepted in the United States of America ("US GAAP").  If the financial statements were corrected for that departure from US GAAP, based on a straight line depreciation method, accumulated depreciation would be increased by approximately $2,400,000 at December 31, 2003 and net income would be decreased by approximately $223,000 for the year then ended.

In our opinion, except for the effects of computing depreciation as discussed in the preceding paragraph, the financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of 250 West 57th Street Associates LLC at December 31, 2003, 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, New York

March 1, 2004