[LETTERHEAD OF WIEN & MALKIN LLP]

 

 

 

 

										May 25, 2006

 

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, 2005.  Associates, which is treated as a partnership for income tax purposes, owns the Fisk Building at 250 West 57th Street, New York City.  Associates' annual report on Form 10-K for the year 2005 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 2005 was $1,633,312.  This was less than distributions of $2,324,771, representing current monthly distributions totaling $720,000 per annum and the additional distribution of $1,604,771, which was paid to participants on November 30, 2005.  The difference results primarily from depreciation of building improvements and amortization of mortgage refinancing costs and leasing commissions.

		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, 2005 of an original cash investment of $10,000 was a deficit balance of $7,424.

		Additional rent for the lease year ended September 30, 2005 was $2,535,579 (including $54,215 of interest earned and retained on funds borrowed for the improvement program) or an excess of $1,783,579 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 receives an additional payment of 10% of distributions in excess of 15% per annum on the original cash investment of $3,600,000.  After deducting $500 for the annual New York State 2006 LLC filing fees, $1,783,079 was available for distribution.  Accordingly, Wien & Malkin  received $178,308 of the additional rent and the balance of $1,604,771 was distributed to the participants on November 30, 2005.  The additional distribution of $1,604,771 represented an annual return of about 44.6% 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, 2005 to investors were about 64.6% on the original cash investment.

		Building improvement and tenant installation costs in excess of $20,000,000 have been incurred through 2005 and paid by Associates through its borrowing facility, in accord with the program approved by the participants.  This comprehensive upgrade of the property and the replacement of Helmsley-Spear, Inc. as the managing agent by the operating lessee continue to improve the property and its operating profit.  

		Schedule K-1 forms (Form 1065), containing 2005 tax information, were mailed on March 27, 2006.

		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 LLP]

 

 

 

 

 

 

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Participants in 250 West 57th Street Associates L.L.C. (a limited liability company):

We have audited the accompanying balance sheet of 250 West 57th Street Associates L.L.C. as of December 31, 2005, 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 250 West 57th Street Associates L.L.C. at December 31, 2005, 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 24, 2006