SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended March 31, 1996 Commission File Number 0-13500
1626 NEW YORK ASSOCIATES LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
Massachusetts 04-2808184
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization
One International Place, Boston, MA 02110
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (617) 330-8600
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 to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO
<PAGE>
<TABLE>
CONSOLIDATED BALANCE SHEETS
(Unaudited)
- ---------------------------------------------------------------------------------------------------------------------------
March 31, December 31,
1996 1995
(Note 1)
- ---------------------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C> <C>
Real Estate, at cost:
Land............................................................. $ 24,436,720 $ 26,476,945
Buildings and improvements, net of accumulated
depreciation of $123,373,372 and $129,020,358
as of March 31, 1996 and December 31, 1995,
respectively.................................................. 112,308,087 119,259,953
------------- -------------
136,744,807 145,736,898
------------- -------------
Other Assets:
Cash and cash equivalents, at cost, which
approximates market value...................................... 271,996 266,836
Restricted cash.................................................. 12,176,749 11,633,278
Accounts receivable, net of reserves of $316,882 and
$410,703 as of March 31, 1996 and
December 31, 1995............................................. 713,006 756,342
Deferred rent receivable......................................... 8,120,610 8,232,352
Deferred costs, net of accumulated amortization
of $20,551,846 and $21,434,999 as of
March 31, 1996 and December 31, 1995,
respectively.................................................... 5,279,667 6,260,039
Prepaid expenses and other assets................................ 2,697,550 5,826,765
------------- -------------
$ 166,004,385 $ 178,712,510
============= =============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Mortgage note payable to affiliate............................... $ 207,000,000 $ -
Fuji and Sanwa Mortgage.......................................... - 231,409,347
Other Mortgage Notes, Net of unamortized
discount........................................................ 19,254,648 19,272,538
Accounts payable, loans payable, and accrued interest to
general partners and affiliates................................. 10,428,232 46,221,992
Accounts payable, security deposits and
accrued expenses.............................................. 7,348,564 8,616,797
Accrued interest in Mortgage notes payable to affiliate 28,314,354 -
Accrued interest on other mortgage notes 1,021,548 27,929,643
Deferred purchase price obligation............................... 1,497,614 1,497,614
------------- -------------
274,864,960 334,947,931
Partners' Capital:
Limited Partners
Units of Limited Partnership Interest, $250,000 stated value per unit;
1,344 Units authorized and issued,
1,340 outstanding............................................. (111,584,038) (121,456,837)
Less Investor notes.............................................. (68,542) (68,542)
General Partners................................................. 2,792,005 (34,710,042)
--------------- -------------
Total Partners' Deficit....................................... (108,860,575) (156,235,421)
------------- -------------
Total Liabilities and Partners' Deficit $ 166,004,385 $ 178,712,510
============= =============
</TABLE>
<PAGE>
ITEM 1. - FINANCIAL STATEMENTS
<TABLE>
CONSOLIDATED STATEMENTS OF OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------
For the Three Months Ended Three Months Ended
March 31, 1996 and 1995 March 31
(Unaudited) (Note 1) 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Income:
Rental and escalation income..................................... $11,821,961 $11,491,428
Interest and other income........................................ 142,448 221,923
-------------- --------------
$11,964,409 $11,713,351
----------- -----------
Expenses:
Real estate and other taxes...................................... 2,429,859 2,675,801
Payroll ......................................................... 488,632 381,221
Utilities........................................................ 1,108,645 1,015,294
Repairs and maintenance.......................................... 1,216,166 1,589,997
General and administrative....................................... 349,970 505,902
Management fees.................................................. 344,101 642,378
Interest......................................................... 3,015,021 4,025,403
Interest on obligations to affiliates 2,305,898 1,192,250
Depreciation..................................................... 2,725,212 3,058,284
Amortization..................................................... 883,659 947,957
-------------- --------------
14,867,163 16,034,487
------------ ------------
Net loss before extraordinary gain..................................... (2,902,754) (4,321,136)
------------- ------------
Extraordinary gain on transfer of 227 East 45th 13,688,046 -
------------ --------------------
Net Income (loss)...................................................... $10,785,292 $ (4,321,136)
=========== =============
Net Income (Loss) Allocated to General Partners $ 912,493 $ (117,288)
============= ==============
Net Loss Before Extraordinary Item Allocated to
Limited Partners....................................................... (2,865,297) (4,203,848)
Extraordinary Gain Allocated to Investor Limited Partners 12,738,096 -
-------------- ---------------------
Net (Loss) Income Allocated to Investor Limited Partners $ 9,872,799 $ (4,203,848)
============== ==============
Net Loss Per Unit of Investor Limited Partnership
Interest Before Extraordinary Gain..................................... $ (2,138) $ (3,137)
Extraordinary Gain Per Unit of Investor Limited
Partnership Interest................................................... 9,506 -
---------------------------------------
Net (Loss) Income Per Unit of Investor Limited
Partnership Interest................................................... $ 7,368 $ (3,137)
================= ================
Weighted Average Number of Units of Limited
Partnership Interests Outstanding...................................... 1,340 1,340
=================== =================
</TABLE>
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
- -----------------------------------------------------------------------------------------------------------------------------
For the Three Months Ended
March 31, 1996 and 1995 (Unaudited) 1996 1995
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Cash flow from operating activities:
Net income (loss).................................................... $10,785,292 $(4,321,136)
Adjustments to reconcile net loss to
net cash provided by operating activities:
Depreciation and amortization.................................... 3,608,871 4,006,241
Deferred rent receivable, net.................................... (180,617) 285,720
Gain on transfer of 227 East 45th St. (13,688,046) -
------------ -----------------
525,500 (29,175)
Decrease in accounts payable,
security deposits and accrued expenses (1,095,475) (5,358,895)
Decrease in accounts receivable.................................. 43,336 495,395
Decrease in prepaids and other assets 2,180,554 2,629,631
Accrued interest................................................. 1,406,259 1,255,376
----------- -----------
Net cash provided (used) by operating activities 3,060,174 (1,007,668)
----------- -----------
Cash flows from investing activities:
Additions to buildings and improvements (1,733,233) (1,095,467)
Increase in deferred costs....................................... (80,905) (279,884)
--------------- -------------
Net cash used by investing activities (1,814,136) (1,375,351)
------------- -----------
Cash flows from financing activities:
(Increase) decrease in restricted cash (2,191,089) 336,471
Accounts and loans payable to general
partners and affiliates........................................ 968,101 1,969,640
Principal payments on mortgages and other loans (17,890) (24,443)
-------------- ------------
Net cash (used) provided by financing activities (1,240,878) 2,281,668
------------- -----------
Net increase (decrease) in cash and cash equivalents 5,160 (101,351)
Cash and cash equivalents, beginning................................... 266,836 107,865
------------ -------------
Cash and cash equivalents, end......................................... $ 271,996 $ 6,514
------------ --------------
Cash paid for interest................................................. $ 3,099,421 $ 3,962,279
----------- -----------
</TABLE>
NON CASH INVESTING AND FINANCING ACTIVITIES
As further discussed in Note 6, on January 24, 1996, the Operating Partnership
transferred its' ownership interest in 227 East 45th St. to Sanwa Business
Credit Corporation ("Sanwa"). In exchange for this ownership interest the
Operating Partnership was relieved of its obligations to repay the Sanwa
mortgage and notes secured by both the 227 East property and the 509 Fifth Ave.
property. The net book balance associated with all the assets of the property as
of January 24, 1996 was $11,048,644. The recorded amount of all obligations
associated with the properties as of January 24, 1996 totaled $24,360,690.
As further discussed in Note 4, on February 28, 1996, the General Partners
forgave loan balances and other amounts due totaling $36,589,555. This all has
been treated as a capital contribution by the General Partners.
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNER'S CAPITAL
---------------------------------------------------------------------------------------------------------------------------------
Units of
For the Three Months Ended Limited General Limited
March 31, 1996 and 1995 Partnership Partners' Partners' Total
(Unaudited) (Note 1) Interest Capital Capital Capital
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Balance, December 31, 1995 1,340 $(34,710,042) $ (121,525,379) $(156,235,421)
Net Income.............................. - 912,493 9,872,799 10,785,292
Contributions........................... - 36,589,554 - 36,589,554
------------------------------------------------------------------
Balance, March 31, 1996..... 1,340 $ 2,792,005 $ (111,652,580) $(108,860,575)
=============================================================
Balance, December 31, 1994 1,340 (32,683,191) (84,344,235) (117,027,426)
Net Loss................................ - (117,288) (4,203,848) (4,321,136)
-------------------------------------------------------
Balance, March 31, 1995 1,340 $(32,800,479) $(88,548,083) $(121,348,562)
==============================================================
</TABLE>
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31,1996
(Unaudited)
1. ACCOUNTING AND FINANCIAL REPORTING POLICIES
The condensed consolidated financial statements included herein have been
prepared by the Registrant, without audit, pursuant to the rules and regulations
of the Securities and Exchange Commission. The Registrant's accounting and
financial reporting policies are in conformity with generally accepted
accounting principles and include adjustments in interim periods considered
necessary for a fair presentation of the results of operations. All adjustments
are of a normal and recurring nature except as described in Notes 5 and 6.
Certain information and footnote disclosures normally included in consolidated
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such rules and
regulations. It is suggested that these consolidated financial statements be
read in conjunction with the consolidated financial statements and notes thereto
included in the Registrant's latest Form 10-K. The balance sheet at December 31,
1995 was derived from audited financial statements at such date.
The accompanying consolidated financial statements reflect the Partnership's
results of operations for an interim period and are not necessarily indicative
of the results of operations for the year ending December 31, 1996.
2. TAXABLE INCOME
The Partnership's results of operations on a tax basis are expected to differ
from net loss for financial reporting purposes primarily due to the accounting
differences in the recognition of rental income, depreciation and amortization.
3. COMMITMENTS AND CONTINGENCIES
As a general partner of the Operating Partnership, which owns the Property, the
Partnership is liable for recourse debts, liabilities and other obligations of
the Property to the extent not paid by the respective Property.
4. RELATED PARTIES
The Partnership incurred $336,684 of property and asset management fees and
$134,478 of leasing and construction fees through February 28, 1996, payable to
an affiliate of the general partner. As part of the sale of Fuji Loan,
(described in Note 5), the Partnership agreed to retain new management and
leasing agents for all of its properties. Effective March 1, 1996, the
Partnership's properties are managed by Axiom Real Estate Management, Inc. and
leasing activity is performed by the Galbreath Company, Newmark & Co. and Koll
Company. These firms are not affiliates of the general partner.
In connection with the sale of the Fuji Loan, Winthrop Financial Associates
("Winthrop") and certain of its affiliates entered into an agreement with the
Investor Partnership, the Operating Partnership and an affiliate of Zeus (as
hereinafter defined) with regard to amounts owed to Winthrop and its affiliates
by the Investor Partnership and the Operating Partnership (the "Winthrop Debt
Agreement"). Prior to this agreement, Winthrop and its affiliates were owed, in
the aggregate, $46,589,554 by the Investor Partnership and the Operating
Partnership. This amount is comprised of cash advances made by Winthrop to the
Operating Partnership, as well as unpaid deferred fees related to the on-site
management of the properties, asset management and syndication. This amount also
includes accrued interest on these outstanding balances.
Under the Winthrop Debt Agreement, Winthrop and its affiliates contributed
$36,589,554 of the $46,589,554 to the Operating Partnership. The remaining
$10,000,000 receivable has been evidenced by a promissory note issued by the
Operating Partnership (the "Receivables Note") which is secured by a pledge of
excess cash flow from 509 Fifth Avenue and 300 Park Avenue South and is payable
only from those properties. Upon receiving consent of The Dime Savings Bank, the
holder of the first mortgage, the Receivables Note is to be secured by second
mortgages on 509 Fifth Avenue and 300 Park Avenue South. Winthrop then sold the
Receivables Note to an affiliate of Zeus for a payment of $6 million in cash.
The Receivables Note has an annual base interest rate of 6% and an additional
annual contingent interest rate of 9%. Interest is payable only from available
cash flow after payment of debt service on The Dime Savings Bank first mortgage.
Interest, to the extent that it cannot be paid currently, accrues until the
maturity of this Note on July 31, 1997.
Distributions to Limited Partners, if any were to occur, are now subordinate to
only $10,000,000 of debt in respect of the Winthrop receivables instead of
$36,589,554.
5. DEBT MODIFICATION
On February 28, 1996 Zeus Property LLC ("Zeus"), purchased the existing debt
held by the Fuji Bank Ltd. for $115 million. In connection with its purchase of
the Fuji loan, Zeus agreed to grant the Operating Partnership certain
concessions. (See "Item 2. Management Discussion and Analysis of Financial
Condition").
6. DEED IN LIEU OF FORECLOSURE
On January 24, 1996 the Operating Partnership transferred the title to the
property located at 227 East 45th Street to Sanwa Business Credit Corporation
pursuant to a deed in lieu of foreclosure. (see "Item 2. Management Discussion
and Analysis of Financial Condition").
A deed in lieu of foreclosure agreement was reached between the Operating
Partnership and Sanwa on January 15, 1996. Under the deed in lieu agreement, the
Operating Partnership transferred the title to the property located at 227 East
45th St. to Sanwa. In exchange, Sanwa released, as of the closing date, the
Operating Partnership from all claims, demands, liabilities, obligations,
actions and causes of any kind with regards to Sanwa, other than the second
mortgage lien on 509 Fifth Avenue. The 509 Fifth Avenue second mortgage lien
will be released between 106 days to 150 days after the transfer of 227 East
45th St. to Sanwa, provided the Operating Partnership did not file for
bankruptcy within a period of 91 days after the transfer of 227 East 45th St.
As of year end, the balance related to the mortgage was $16,627,710 which was
secured by both 227 East 45th St. and 509 Fifth Avenue. In addition, the Sanwa
note payable, which had a $7,781,634 balance, was secured by both 227 East 45th
St. and 509 Fifth Avenue. As a result of the above described transactions, the
Operating Partnership has recognized an extraordinary gain of $13,688,046. The
property was stated at its fair value at December 31, 1995 as a result of a
recorded write-down.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
This Item should be read in conjunction with the Consolidated Financial
Statements and other Items contained elsewhere in this Report.
Liquidity and Capital Resources
The Partnership serves as the general partner of Nineteen New York
Properties Limited Partnership (the "Operating Partnership"). All of the
Operating Partnership's properties are office buildings located in New York
City. The Partnership's sole source of revenue is from distributions from the
Operating Partnership and interest income on its reserves. The Partnership is
responsible for its operating expenses. The Operating Partnership receives
rental revenue from tenants and is responsible for operating expenses,
administrative expenses, capital improvements and debt service payments.
The Partnership and the Operating Partnership had $271,996 of cash and
cash equivalents and $12,176,749 of restricted cash at March 31, 1996 as
compared to $266,836 and $11,633,278, respectively, at December 31, 1995.
Restricted cash includes amounts held in mortgage collateral accounts,
restricted operating accounts, and tenant security deposits and utility and real
estate tax escrows. The increase in cash at March 31, 1996 as compared to
December 31, 1995 was due to $3,060,174 of cash provided by operating activities
which was substantially offset by $1,814,136 of cash used in investing
activities and $1,240,878 of cash used by financing activities.
The Operating Partnership's only other source of liquidity is a
$19,500,000 unsecured credit line provided by Zeus Property LLC ("Zeus"). This
credit line can be used by the Operating Partnership to fund capital
improvements and tenant lease-up costs at the Fuji Properties. However, any
borrowings under this credit line are subject to Zeus' discretion. Accordingly,
it is possible that the Operating Partnership may not be able to borrow against
this credit line each time it deems it necessary.
On February 28, 1996 Zeus purchased the existing debt held by The Fuji Bank
Ltd. for $115 million. The Operating Partnership obtained a reduction in the
current interest required to be paid under the modified loan which, based on
current projections, will greatly reduce the likelihood of monetary default
under the loan prior to February 28, 1998, the new maturity date for a portion
of the loan. As part of the restructuring of the Fuji loan, each of the
Operating Partnership's 535 and 545 Fifth Avenue, 1372 Broadway and 757 Third
Avenue properties (the "Fuji Properties") were conveyed by the Operating
Partnership to newly-created limited liability companies which are wholly-owned
indirectly by the Operating Partnership and its partners.
The modified Fuji loan (the "Modified Loan") is comprised of several
component non-recourse loans, all held by Zeus and its affiliates. The most
senior loan component consists of a series of secured notes in the aggregate
principal amount of $104,550,000, each having an annual interest rate of 295
basis points over 30-day LIBOR, maturing on February 28, 1998 unless extended at
Zeus' option (the "Secured A Notes").
A junior component consists of secured notes in the aggregate principal
amount of $102,450,000, each having a fixed annual interest rate of 14% for the
next three years and then 16.75% thereafter, maturing on February 28, 2016 (the
"Secured B Notes"). The Secured A Notes and Secured B Notes are collectively
secured by first mortgages on the Fuji Properties. A third component is the
unsecured $19,550,000 note (the "Unsecured Note") representing the additional
financing expected to be drawn upon by the Operating Partnership to fund capital
improvements and tenant lease-up costs with respect to the Fuji Properties. The
Unsecured Note bears interest at a fixed annual rate of 14% for the next three
years and then 16.75% thereafter and matures on February 28, 1998, unless
extended at Zeus' option.
In connection with the Modified Loan, loans in the form of cash advances
and deferred fees were made to the Partnership and the Operating Partnership by
Affliliates of the General Partner were restructured.
See Item 1, Note 4 for a discussion regarding affiliate loans.
<PAGE>
After giving effect to the loan restructuring, the Operating
Partnership's properties (the "Properties") were encumbered by approximately
$236,254,000 of principal amount of mortgage loans. The Partnership believes
that current cash flow will be sufficient to fund the current debt service
requirements on these loans until their maturity (December 31, 1997 with respect
to the loans encumbering 300 Park Avenue South and 509 Fifth Avenue and February
28, 1998 with respect to the Fuji Properties). However, in the absence of a
substantial improvement in the commercial rental market and the operations of
the Properties, the Partnership will not be able to meet its financial
obligations at maturity. Accordingly, if the Properties can not be sold,
refinanced or the existing loans modified at their maturity, there is a
substantial likelihood that some or all of the Properties will be lost through
foreclosure. At present, it appears that the Partnership's original objective of
capital appreciation will not be achieved and the Partnership's partners will
not receive a return of a substantial amount of their original investment.
On January 24, 1996, the Operating Partnership transferred the title to
the property located at 227 East 45th St. to Sanwa Business Credit Corporation
("Sanwa") pursuant to a deed in lieu of foreclosure. In exchange, Sanwa
released, as of the closing date, the Operating Partnership from all claims,
demands, liabilities, obligations, actions and causes of any kind with regards
to Sanwa, other than the second mortgage lien on 509 Fifth Avenue. The 509 Fifth
Avenue second mortgage lien will be released between 106 days to 150 days after
the transfer of 227 East 45th St. to Sanwa, provided the Operating Partnership
did not file for bankruptcy within the 91 days after the transfer of 227 East
45th St.
As part of the debt restructuring process, the Operating Partnership
reviewed the properties to determined whether they have suffered an impairment
in value which is deemed to be other than temporary. Such instances arise when
the Operating Partnership concludes that expected future cash flows will not
enable the Partnerships to recover their investment. In making such assessments,
the Operating Partnership considers certain factors, which includes recessionary
effects on commercial real estate markets, current and future expected occupancy
rates, prospects for leasing at rates sufficient to support the existing
carrying value of the properties, expected changes in operating costs or
appraisal of an independent firm. The Operating Partnership determined that the
Properties suffered an impairment. Management's assessment of impairment is
primarily related to the continued weak New York City commercial real estate
market, coupled with a change in Management's focus given the inability of the
Properties to service the current debt obligations and the continued depletion
of the cash reserves. As a result, the Partnership wrote down its investment in
the Properties by $22,500,000 in 1995.
There have been, and it is possible there may be other Federal, state
and local legislation and regulations enacted relating to the protection of the
environment and individual rights (such as the Americans with Disabilities Act).
The Partnership is unable to predict the extent, if any, to which such new
legislation or regulations might occur and the degree to which such existing or
new legislation or regulations might adversely affect the Partnership's
liquidity and capital resources.
Real Estate Market
The income and expenses of operating the Properties owned by the
Operating Partnership are subject to factor's outside its control, such as the
over-supply of similar properties, increases in unemployment, population shifts,
or changes in patterns or needs of users. Expenses, such as local real estate
taxes and miscellaneous expenses, are subject to change and cannot always be
reflected in rental rate increases due to market conditions. In addition, there
are risks inherent in owning and operating office buildings because such
properties are labor intensive and are susceptible to the impact of economic and
other conditions outside the control of the Partnership.
These Market conditions have and will continue to have a significant
impact on the Partnership. In general, while the General Partners believe that
the loan restructurings represent an accomplishment of the immediate goals set
by the Operating Partnership, there will be little or no direct positive
benefits for the Partnership unless there is a significant recovery in market
conditions.
<PAGE>
Results of Operations
The Partnership generated a net loss before extraordinary gain of approximately
$2.9 million for the first three months of 1996 compared to the net loss of
approximately $4.3 million for the first three months of 1995. The 1996 rental
income increased to $11.8 million in the three months ended March 31, 1996
compared to $11.5 million in the three months ended March 31, 1995.
The rental income was negatively impacted by the loss of the 227 East 45th
property by $758,000 for the quarter ended March 31, 1996. This decrease was
offset by increases in the remaining properties most significantly at 535 Fifth
of $484,000; 1372 Broadway of $183,000 and 300 Park Avenue South of $123,000.
The higher revenues were primarily the result of higher effective rental rates
with improved occupancy.
Total expenses declined by $1,167,000 as a result of the 227 East 45th deed in
lieu of foreclosure saving $530,000 in operating expenses, $398,000 of
depreciation and amortization expenses. Additionally, management fees declined
by $298,000.
Utilities expense increased by $93,000 as a result of significant increases at
all properties. The most significant increases were at 1372 Broadway $50,000;
545 East Fifth Ave. $42,000; 757 Third of $102,000, partially offset by savings
at 227 East 45th of $145,000.
Management fees declined by $298,000 as a result of the elimination of the asset
management fee payable to a related party of $120,000, the 227 East 45th
reduction of $20,000 and the new management agreement changing to a fixed fee
from a previous fee of 2.5% of cash receipts.
The payroll expense increased by $107,000 primarily as a result of the
Partnership paying $90,000 of severance payroll to the employees of the previous
management company in March, 1996.
All other operating expense categories declined as a result of the elimination
of the 227 East 45th property.
The extraordinary gain is the result of the deed in lieu of foreclosure between
the Operating Partnership and Sanwa Credit Corporation relating to the property
located at 227 East 45th Street.
<PAGE>
PART II - OTHER INFORMATION
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K
--------------------------------
a) Exhibit 27, Financial Data Schedule, is filed as an exhibit to this report.
b) Reports on Form 8-K: No Report on Form 8-K was filed during the period.
<PAGE>
SIGNATURE
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.
1626 NEW YORK ASSOCIATES LIMITED PARTNERSHIP
(Registrant)
BY: Two Winthrop Properties, Inc.
Managing General Partner
DATED: May 20, 1996 By: /s/ Michael L. Ashner
Michael L. Ashner
Chief Executive Officer
DATED: May 20, 1996 By: /s/Edward V. Williams
Edward V. Williams
Chief Financial Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information
extracted from unaudited financial statements for the
three month period ending March 31, 1996 and is
qualified in its entirety by reference to such financial
statements
</LEGEND>
<CIK> 0000767411
<NAME> 1626 NEW YORK ASSOCIATES LIMITED PARTNERSHIP
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<EXCHANGE-RATE> 1
<CASH> 12,448,745
<SECURITIES> 0
<RECEIVABLES> 9,150,498
<ALLOWANCES> 316,882
<INVENTORY> 0
<CURRENT-ASSETS> 21,282,361
<PP&E> 260,118,179
<DEPRECIATION> (123,373,372)
<TOTAL-ASSETS> 166,004,385
<CURRENT-LIABILITIES> 18,798,344
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> (108,860,575)
<TOTAL-LIABILITY-AND-EQUITY> 166,004,385
<SALES> 0
<TOTAL-REVENUES> 11,964,409
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 9,546,244
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,320,919
<INCOME-PRETAX> (2,902,754)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 13,688,046
<CHANGES> 0
<NET-INCOME> 10,785,292
<EPS-PRIMARY> 7,367.76
<EPS-DILUTED> 00.00
</TABLE>
