FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date of Report (Date of earliest event reported) December 29, 1995
GARMENT CAPITOL ASSOCIATES
(Exact name of registrant as specified in its charter)
New York Partnership 0-768 13-6083208
(State or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification No.)
incorporation)
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 formal fiscal year, if changed
since last report)
Item 5. Other Events
Registrant is the fee owner of the Garment Capitol
Building and the underlying land (the "Property"), located at 498
Seventh Avenue, New York, New York. Until December 29, 1995,
Registrant net leased the Property to 498 Seventh Avenue
Associates, a New York partnership (the "Original Lessee"),
pursuant to a long-term net operating lease (the "Net Operating
Lease").
Effective as of December 29, 1995, the Original Lessee,
in accordance with the terms of the Net Operating Lease, assigned
its leasehold estate in the Property to 4987 Corporation, a New
York corporation (the "New Lessee"). The New Lessee assumed the
obligations of the lessee under the Net Operating Lease as of that
date.
In January 1996, the New Lessee paid to Registrant the
monthly installment of basic rent under the Net Operating Lease,
but failed to pay to the City of New York real estate taxes and
assessments as required pursuant to the Net Operating Lease in the
amount of $965,875. Registrant has been advised that the
shareholders of the New Lessee have reached an agreement in
principle, subject to documentation, with Apple Bank for Savings,
the fee mortgagee (the "Bank"), to provide a guarantee of payment
of real estate taxes in exchange for the forbearance by the Bank
from exercising its rights and remedies under the fee mortgage
based on the non-payment of real estate taxes when due. The Bank
has taken no action pending documentation of the agreement.
Registrant is assessing its rights and options in
connection with the Property and under the Net Operating Lease and
following closely the progress of the documentation of the
agreement with the Bank.
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
Partners in Registrant, pursuant to Powers of Attorney, dated March
30, 1989 (the "Power").
GARMENT CAPITOL ASSOCIATES
(Registrant)
By: /s/ Stanley Katzman
Stanley Katzman, Attorney-in-Fact
Date: February 14, 1996
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 Partners in Registrant, pursuant
to the Power, on behalf of Registrant and as a Partner in
Registrant on the date indicated.
By: /s/ Stanley Katzman
Stanley Katzman, Attorney-in-Fact*
Date: February 14, 1996
