FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(Mark One)

[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2000

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ___________

Commission file number 0-2666

250 WEST 57th ST. ASSOCIATES

(Exact name of registrant as specified in its charter)

A New York Partnership 13-6083380

(State or other jurisdiction of (I.R.S. Employer

incorporation or organization) Identification No.)

60 East 42nd Street, New York, New York 10165

(Address of principal executive offices)

(Zip Code)

(212) 687-8700

(Registrant's telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required tofile such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [ X ]. No [ ] .

An Exhibit Index is located on Page 14 of this Report. Number of pages (including exhibits) in this filing: 14

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

250 West 57th St. Associates

Condensed Statement of Income

(Unaudited)

For the Three Months	For the Six Months

Ended June 30,	Ended June 30,

2000	1999	2000 	1999
Income:

Basic rent income, from a 

related party (Note B)	$ 103,387	$ 79,289	$204,905	$158,579

Advance of primary overage

rent from a related

Party (Note B)		188,000	188,000	376,000	 376,000

Dividend income	11,133	 -0- 	 29,092	 -0-

				-------------	-----------	-------------		-----------

Total income		$ 302,520	$267,289	 $609,997	$534,579

				-------------	-----------	-------------	------------

Expenses:

Interest on mortgage	 	 89,370	65,904	177,043	131,955

Supervisory services, to a

related party (Note C)	15,000	 15,000	30,000	 30,000

Amortization of mortgage

refinancing costs		 8,610	1,957	 42,724	3,915

Professional fees 		74,660	-0-	 74,660	 -0-

				------------	------------	------------	----------

Total expenses			$ 187,640	$ 82,861	$ 324,427	$ 165,870

				------------	-----------	------------	------------

Net income for period		$ 114,880	$ 184,428	$ 285,570	$ 368,709

				========	=======	=======	=======

Earnings per $5,000 

	participation unit, based on 

	720 participation units 

	outstanding during the period		$ 159.56	$ 256.15	$ 396.63	$ 512.10

						=======	=======	=======	======

Distributions per $5,000

	participation consisted of

	the following:

Income					$159.56	$ 250.00	$ 396.63	$ 500.00

Return of Capital	 90.44	-0-	 103.37	-0-

	-----------	--------------	-------------	--------------

Total distributions	$ 250.00	$ 250.00	$ 500.00	$ 500.00

	=======	======	======	======

At June 30, 2000 and 1999, there were $3,600,000 of participations outstanding.

250 West 57th St. Associates

Condensed Balance Sheet

(Unaudited)

Assets					June 30, 2000	December 31, 1999

Current assets:

Cash					$ 96,737	$ 92,274

Fidelity U.S. Treasury

Income Portfolio		 420,212	 1,381,731

Additional rent due from 

Fisk Building Associates	 -0-	 11,835

					----------	-----------

Total current assets		 516,949 1,485,840

					----------	-----------

Real estate, at cost:

Property situated at 250-264 West 

57th Street, New York, New York:

Land 				 2,117,435	 2,117,435

---------- -----------

Building:				 4,940,682	 4,940,682

Less: Accumulated depreciation	 4,940,682	 4,940,682

					----------	-----------

					 -0-	 -0

---------- -----------

Building improvements:	 688,000	 688,000

Less: Accumulated depreciation	 688,000	 688,000

					----------	----------- 					 -0-	 -0-

---------- ----------- 

Tenants' installations and

improvements			 249,791	 249,791

Less: Accumulated amortization	 249,791	 249,791

					----------	-----------

					 -0-	 -0-

---------- -----------

Building improvements, construction 

in progress			 1,502,847	 244,960

---------- -----------

Other assets:

Mortgage refinancing costs	 130,608	 130,508

Less: Accumulated amortization	 116,257	 73,533

					----------	-----------

					 14,351	 56,975

					----------	-----------

	Total assets		$4,151,582	$ 3,905,210

					==========	===========

250 West 57th St. Associates

Condensed Balance Sheet

(Unaudited)

(CONTINUED)

Liabilities and Capital (Deficit):

Current liabilities:

Accrued interest payable	$ 30,042	$ 30,214

Due to Fisk Building Associates,

a related party		 579,688	 244,960

Accrued expenses		 2,109	 2,109

First mortgage (Note B)	$2,775,417 $ 4,289,171

Second mortgage (Note B)	 1,500,000	 -0-

					----------	-----------

	Total current liabilities	 4,887,256	 4,566,454

Capital (deficit) (See analysis, page 5):

June 30, 2000			 (735,674)	 -0-

December 31, 1999		 -0-	 (661,244)

					----------	-----------

	Total liabilities and 

	 capital (deficit):

June 30, 2000			$4,151,582

December 31, 1999		==========	 $3,905,210

						===========

250 West 57th St. Associates

Analysis of Capital (Deficit)

(Unaudited)

 

 

						June 30, 2000		December 31, 1999

Capital (deficit):

January 1, 2000			$ (661,244)	

January 1, 1999					 (624,219)

Add, Net income:

	January 1, 2000 through

	 June 30, 2000		 285,570		 -0-

	January 1, 1999 through

	 December 31, 1999		 -0-	 2,719,635

						----------	-----------

						 (375,674)	 2,095,416

						----------	-----------

Less Distributions:

Distribution, November 30, 1999

of Secondary Overage Rent for 

the lease year ended 

September 30, 1999		 -0-	 2,036,660

Distributions January 1, 2000

through June 30, 2000	 360,000	 -0-

Distributions January 1, 1999

through December 31, 1999	 -0-	 720,000

						----------	-----------

						 360,000	 2,756,660

						----------	-----------

Capital (deficit):

June 30, 2000			 (735,674)

December 31, 1999			==========	$ (661,244)

							===========

250 West 57th St. Associates

Condensed Statement of Cash Flows

		January 1, 2000	 January 1, 1999

	 through	 through

	June 30, 2000	 June 30, 1999

Cash flows from operating activities:

Net income			$ 285,570	$ 368,709

Adjustments to reconcile net income 

to cash provided by operating 

activities:

Amortization of mortgage refinancing 

costs				 42,724	 3,915

Change in accrued interest payable 	 (172)	 (98)

Decrease in rent receivable 	 11,835		 -0-

Increase in mortgage refinancing

Costs				 (100)		 -0-

Due to Fisk Building Associates	 334,728		 -0-

					----------	----------

	Net cash provided by operating

	 activities		 674,585	 372,526

					----------	----------

Cash flows from investing activities:

Improvements in progress	(1,257,887)	 -0-

					----------	----------

	Net cash used in investing

	 activities		(1,257,887)	 -0-

					----------	----------

Cash flows from financing activities:

Cash distributions		 (360,000)	 (360,000)

Principal payments on long-term debt	 (13,754)	 (12,525)

					----------	----------

	Net cash used in financing 

	 activities 		 (373,754)	 (372,525)

					----------	----------

Net increase (decrease) in cash	 (957,056)		 1

Cash and cash equivalents, 

beginning of period		 1,474,005	 84,124

					----------	----------

Cash and cash equivalents, 

end of period			$ 516,949	$ 84,125

					==========	==========

January 1, 2000	January 1, 1999

					through	through

					June 30, 2000	June 30, 1999

Cash paid for:

Interest				$ 177,215	$ 132,054

					===========	==========

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

Note A Organization and basis of Presentation

		In the opinion of management, the accompanying unaudited condensed financial statements reflect all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position of Registrant as of June 30, 2000, itsresults of operations for the six and three months ended June 30, 2000 and 1999, its cash flows for the six months ended June 30, 2000 and 1999 and its changes in Partners' capital for the six months ended June 30, 2000. Information included in thecondensed balance sheet as of December 31, 1999 has been derived from the audited balance sheet included in Registrant's Form 10-K for the year ended December 31, 1999 (the "10-K") previously filed with the Securities and Exchange Commission (the "SEC").Pursuant to rules and regulations of the SEC, certain information and disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted from these financial statementsunless significant changes have taken place since the end of the most recent fiscal year. Accordingly, these unaudited condensed financial statements should be read in conjunction with the financial statements, notes to financial statements and the otherinformation in the 10-K. The results of operations for the six months ended June 30, 2000 are not necessarily indicative of the results to be expected for the full year.

 

Note B Interim Period Reporting

		

		Registrant is a New York joint venture which was organized on May 25, 1953. On September 30, 1953, Registrant acquired fee title to the "Fisk Building" (the "Building") and the land thereunder located at 250-264 West 57th Street, New York, NewYork (collectively, the "Property"). Registrant's joint venturers are Peter L. Malkin and Anthony E. Malkin (the "Joint Venturers"), each of whom also acts as an agent for holders of participations in their undivided joint venture interests in Registrant(the "Participants").

		Registrant leases the Property to Fisk Building Associates (the "Net Lessee"), under a long-term net operating lease (the "Net Lease"), the current term of which expires on September 30, 2003. Net Lessee is a New York partnership in whichtrusts created by Peter L. Malkin for family members are beneficial owners of an interest in the Net Lessee. In addition, one of the Joint Venturers is also a member of Wien & Malkin LLP, 60 East 42nd Street, New York, New York, which providessupervisory and other services to Registrant and Net Lessee ("Supervisor"). See Note C of this Item 1 ("Note C"). 

		Under the Net Lease, Net Lessee must pay (i) annual basic rent equal to the sum of $28,000 plus an amount equal to the rate of constant payments for interest and amortization required annually under the first mortgage described below (the"Basic Rent"), and (ii)(A) primary overage rent equal to the lesser of (1) Net Lessee's net operating income for the preceding lease year or (2) $752,000 (the "Primary Overage Rent"), and (B) secondary overage rent equal to 50% of any remaining balance ofNet Lessee's net operating income for such lease year ("Secondary Overage Rent").

		Net Lessee is required to make a monthly payment to Registrant, as an advance against Primary Overage Rent, of an amount equal to its operating profit for its previous lease year in the maximum amount of $752,000 per annum. Net Lessee currentlyadvances $752,000 each year, which permits Registrant to make regular monthly distributions at 20% per annum on the Participants' remaining original cash investment.

		For the lease year ended September 30, 1999, Net Lessee reported net operating profit of $5,277,912 after deduction of Basic Rent. Net Lessee paid Primary Overage Rent of $752,000, together with Secondary Overage Rent of $2,262,956 for thefiscal year ended September 30, 1999. The Secondary Overage Rent of $2,262,956 represents 50% of the excess of the net operating profit of $5,277,912 over $752,000. After deducting $226,296 to Supervisor as an additional payment for supervisory services,the balance of $2,036,660 was distributed to the Participants on November 30, 1999.

		Secondary Overage Rent income is recognized when earned from Net Lessee, at the close of the lease year ending September 30. Such income is not determinable until Net Lessee, pursuant to the Net Lease, renders to Registrant a certified reporton the operation of the Property. The Net Lease does not provide for the Net Lessee to render interim reports to Registrant, so no income is reflected for the period between the end of the lease year and the end of Registrant's fiscal year. 

		The Net Lease provides for one renewal option of 25 years. The Participants in Registrant and the partners in Net Lessee have agreed to execute three additional 25-year renewal terms on or before the expiration of the then applicable renewalterm. 

		Effective March 1, 1995, the first mortgage loan on the Property, in the principal amount of $2,890,758, held by Apple Bank for Savings ("Apple Bank") was refinanced (the "Refinancing"). The material terms of the refinanced mortgage loan (the"Mortgage Loan") are as follows:

	(i) a maturity date of June 1, 2000 that on April 19,2000 was extended to December 1, 2000;

	(ii) monthly payments of $24,096 aggregating $289,157 per annum applied first to interest at the rate of 9.4% per annum and the balance in reduction of principal; 

	(iii) no prepayment until after the third loan year. Thereafter, a 3% penalty will be imposed in the fourth loan year and a 2% penalty during the fifth loan year. No prepayment penalty will be imposed if the Mortgage Loan is paid in full during thelast 90 days of the fifth loan year; and

	(iv) no Partner or Participant will have any personal liability for principal of, or interest on, the Mortgage Loan. 

		Effective September 22,1999, a second nonrecourse mortgage loan, also held by Apple Bank for Savings in the amount of $1,500,000 was placed on the Property. The terms are interest only at the thirty day LIBOR rate with a maturity date of June1, 2000. On April 19, 2000, this mortgage was also extended to December 1, 2000.

Note C - Supervisory Services

		Registrant pays Supervisor for special services at hourly rates and supervisory services and disbursements. The supervisory fees are $40,000 per annum (the "Basic Payment"): plus an additional payment of 10% of all distributions to Participantsin any year in excess of the amount representing a return to them at the rate of 15% per annum on their remaining cash investment (the "Additional Payment"). At June 30, 2000, the Participants' remaining cash investment was $3,600,000. Of the BasicPayment, $28,000 is payable from Basic Rent and $12,000 is payable from Primary Overage Rent received by Registrant.

		No remuneration was paid during the six month period ended June 30, 2000 by Registrant to either of the Joint Venturers as such. Pursuant to the fee arrangements described herein, Registrant also paid Supervisor $20,000 of the Basic Payment and$10,000 on account of the Additional Payment for the six month period ended June 30, 2000.

		The supervisory services provided to Registrant by Supervisor include real estate supervisory, legal, administrative and financial services. The services include, but are not limited to providing or coordinating with counsel to Registrant,maintaining all of its partnership and Participant records, performing physical inspections of the Building, reviewing insurance coverage and conducting annual partnership meetings. Financial services include monthly receipt of rent from Net Lessee,payment of monthly and additional distributions to the Participants, payment of all other disbursements, confirmation of the payment of real estate taxes, and active review of financial statements submitted to Registrant by Net Lessee and financialstatements audited by and tax information prepared by Registrant's independent certified public accountant, and distribution of such materials to the Participants. Supervisor also prepares quarterly, annual and other periodic filings with the Securitiesand Exchange Commission and applicable state authorities. 

		Reference is made to Note B of Item 1 ("Note B") for a description of the terms of the Net Lease between Registrant and Net Lessee. The respective interests, if any, of each Joint Venturer in Registrant and in Net Lessee arise solely from suchperson's ownership of participations in Registrant and partnership interests or participations in Net Lessee. The Joint Venturers receive no extra or special benefit not shared on a pro rata basis with all other Participants in Registrant or partners inNet Lessee. However, one of the Joint Venturers, by reason of his respective partnership interest in Supervisor, is entitled to receive his share of any fees or other remuneration paid to Supervisor for services rendered to Registrant and Net Lessee.

		As of June 30, 2000, certain of the Joint Venturers in Registrant held additional Participations as follows:

Anthony E. Malkin owned of record as trustee, but not beneficially, $8,333 of Participations. Anthony E. Malkin disclaims any beneficial ownership of such Participations.

Trusts for the benefit of members of Peter L. Malkin's family owned of record and beneficially $88,333 of Participations. Mr. Malkin disclaims any beneficial ownership of such Participations, except that such Trusts are required to complete scheduledpayments to Mr. Malkin.

Item 2. Management's Discussion and Analysis of

Financial Condition and Results of Operations.

		Registrant was organized solely for the purpose of owning the Property subject to a net operating lease of the Property held by Net Lessee. Registrant is required to pay, from Basic Rent, the charges on the Mortgage Loan and amounts forsupervisory services, and then to distribute the balance of such Basic Rent to holders of Participations. See Note C. Pursuant to the Net Lease, Net Lessee has assumed sole responsibility for the condition, operation, repair, maintenance and management ofthe Property. Accordingly, Registrant need not maintain substantial reserves or otherwise maintain liquid assets to defray any operating expenses of the Property.

		Registrant's results of operations are affected primarily by the amount of rent payable to it under the Net Lease. The amounts of Primary Overage Rent and Secondary Overage Rent are affected by the New York City economy and its real estatemarket. It is difficult to forecast the New York City economy and real estate market over the next few years. 

		Registrant does not pay dividends. During the six month period ended June 30, 2000, Registrant made regular monthly distributions of $83.33 for each $5,000 participation ($1,000 per annum for each $5,000 participation). On November 30, 1999,Registrant made an additional distribution of $2,829 for each $5,000 participation. Such distribution represented the balance of Secondary Overage Rent paid by Net Lessee in accordance with the terms of the Net Lease after deducting the Additional Paymentto Supervisor. See Notes B and C. There are no restrictions on Registrant's present or future ability to make distributions; however, the amount of such distributions depends solely on the ability of Net Lessee to make monthly payments of Basic Rent,Primary Overage Rent and Secondary Overage Rent to Registrant in accordance with the terms of the Net Lease. Registrant expects to make distributions so long as it receives the payments provided for under the Net Lease. See Note B.

		The following summarizes with respect to the current period and corresponding period of the previous year, the material factors affecting Registrant's results of operations for such periods:

Total income increased for the six month period ended June 30, 2000, as compared with the six month period ended June 30, 1999. Such increase was the result of an increase in basic rent received from the Net Lessee for the six month period ended June30, 2000 as compared with the six month period ended June 30, 1999 and dividend income earned on funds temporarily invested.

Total expenses increased for the six month period ended June 30, 2000, as compared to the six month period ended June 30, 1999. Such increase was the result of an increase in interest on the mortgages, increased amortization of the mortgage refinancingcosts and professional fees for the six month period ended June 30, 2000.

Liquidity and Capital Resources

		There has been no significant change in Registrant's liquidity for the six month period ended June 30, 2000, as compared with the six month period ended June 30, 1999.

		The amortization payments due under the Mortgage Loan (see Note B of Item 1 hereof) will not be sufficient to fully liquidate the outstanding principal balances thereof at maturity in 2000. Registrant does not maintain any reserve to cover thepayment of any mortgage indebtedness at or prior to maturity. Therefore, repayment of such indebtedness will depend on Registrant's ability to arrange a further refinancing of the Mortgage Loan. The ability of Registrant to obtain any such refinancingwill depend upon several factors, including the value of the Property at that time and future trends in the real estate market and the economy in the geographic area in which the Property is located.

		Registrant anticipates that funds for working capital for the Property will be provided by rental payments received from the Net Lessee and, to the extent necessary, from additional capital investment by the partners in the Net Lessee and/orexternal financing. However, as noted above, Registrant has no requirement to maintain substantial reserves to defray any operating expenses of the Property. 

 

 

 

 

 

 

 

Inflation

		Registrant believes that there has been no material change in the impact of inflation on its operations since the filing of its report on Form 10-K for the year ended December 31, 1999, which report and all exhibits thereto are incorporatedherein by reference and made a part hereof.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

		The Property of Registrant is the subject of the following pending litigation:

		Wien & Malkin LLP, et. al. v. Helmsley-Spear, Inc., et. al. On June 19, 1997 Wien & Malkin LLP and Peter L. Malkin filed an action in the Supreme Court of the State of New York, against Helmsley-Spear, Inc. and Leona Helmsley concerningvarious partnerships which own, lease or operate buildings managed by Helmsley-Spear, Inc., including Registrant's property. In their complaint, plaintiffs sought the removal of Helmsley-Spear, Inc. as managing and leasing agent for all of the buildings.Plaintiffs also sought an order precluding Leona Helmsley from exercising any partner management powers in the partnerships. In August, 1997, the Supreme Court directed that the foregoing claims proceed to arbitration. As a result, Mr. Malkin and Wien& Malkin LLP filed an arbitration complaint against Helmsley-Spear, Inc. and Mrs. Helmsley before the American Arbitration Association. Helmsley-Spear, Inc. and Mrs. Helmsley served answers denying liability and asserting various affirmative defensesand counterclaims; and Mr. Malkin and Wien & Malkin LLP filed a reply denying the counterclaims. By agreement dated December 16, 1997, Mr. Malkin and Wien & Malkin LLP (each for their own account and not in any representative capacity) reached asettlement with Mrs. Helmsley of the claims and counterclaims in the arbitration and litigation between them. Mr. Malkin and Wien & Malkin LLP are continuing their prosecution of claims in the arbitration for relief against Helmsley-Spear, Inc.,including its termination as the leasing and managing agent for various entities and properties, including the Registrant's Lessee.

Item 6. Exhibits and Reports on Form 8-K.

	(a) The exhibits hereto are being incorporated by reference. 

	(b) Registrant has not filed any report on Form 8-K during the quarter for which this report is being filed.

 

 

 

 

 

SIGNATURES

		Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		The individual signing this report on behalf of Registrant is Attorney-in-Fact for Registrant and each of the Joint Venturers in Registrant, pursuant to Powers of Attorney, dated March 29, 1996 and May 14, 1998 (collectively, the "Power").

 

250 WEST 57TH ST. ASSOCIATES

(Registrant)

 

 

By /s/ Stanley Katzman

Stanley Katzman, Attorney-in-Fact*

 

Date: August 14, 2000

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the undersigned as Attorney-in-Fact for each of the Joint Venturers in Registrant, pursuant to the Power, on behalf of Registrant on the date indicated.

 

By /s/ Stanley Katzman

Stanley Katzman, Attorney-in-Fact*

 

Date: August 14, 2000

 

 

 

 

 

 

 

 

 

 

_______________________________

* Mr. Katzman supervises accounting functions for Registrant.

EXHIBIT INDEX

 

 

Number				 Document 				Page*

3(a)			Registrant's Joint Venture Agreement, dated May 25, 1953, which was filed as Exhibit No. 3(a) to Registrant's Registration Statement on Form S-1 (the "Registration Statement"), is incorporated by reference as an exhibit hereto.

 

3(b)			Amended Business Certificate of Registrant filed with the Clerk of New York County on July 24, 1998, reflecting a change in the Partners of Registrant effective as of April 15, 1998, which was filed as Exhibit 3(b) to Registrant's10-Q-A for the quarter ended September 30, 1998 and is incorporated by reference as an exhibit hereto.

 

24			Powers of Attorney dated March 29, 1996 and May 14, 1998 between Partners in Registrant and Stanley Katzman and Richard A. Shapiro, which was filed as Exhibit 24 to Registrant's 10-Q for the quarter ended March 31, 1998 and isincorporated by reference as an exhibit hereto. 

 

 

 

 

 

 

 

 

 

 

 

_______________________________

* Page references are based on sequential numbering system.