UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(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, 1994
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: 0-15463
MENDIK REAL ESTATE LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
New York 11-2774249
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) identification No.)
3 World Financial Center, 29th Floor, New York, NY 10285
(Address of principal executive offices) (Zip code)
(212) 526-3237
(Registrant's telephone number, including area code)
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
Consolidated Balance Sheets
June 30, December 31,
Assets 1994 1993
Real estate investments, at cost:
Land $ 27,137,084 $ 27,137,084
Buildings and improvements 198,675,895 200,255,154
225,812,979 227,392,238
Less-accumulated depreciation (45,813,272) (44,575,753)
179,999,707 182,816,485
Properties held for disposition 19,207,512 18,950,000
Less-accumulated depreciation (485,502) -
18,722,010 18,950,000
Cash and cash equivalents 10,818,662 10,346,684
Restricted cash 1,833,744 2,390,734
Rents and other receivables
(includes deferred rent receivable
of $14,322,551 in 1994 and
$14,366,146 in 1993) 14,778,013 15,162,790
Prepaid expenses 26,861 26,861
Other assets, net of accumulated
amortization of $5,266,923 in 1994
and $5,035,517 in 1993 7,943,683 8,104,716
Total Assets $234,122,680 $237,798,270
Liabilities and Partners' Capital (Deficit)
Liabilities:
Accounts payable and accrued
expenses $ 1,263,202 $ 1,335,734
Due to affiliates 1,145,456 1,349,919
Security deposits payable 1,000,910 1,007,873
Accrued interest payable 3,282,748 2,090,609
Mortgage and notes payable 107,180,836 107,042,677
Deferred interest payable 798,777 798,777
Total Liabilities 114,671,929 113,625,589
Minority interest 42,060,842 42,946,374
Partners' Capital (Deficit):
General Partners (1,463,724) (1,425,360)
Special Limited Partner (471,998) (471,998)
Limited Partners 79,325,631 83,123,665
Total Partners' Capital 77,389,909 81,226,307
Total Liabilities and
Partners' Capital $234,122,680 $237,798,270
Consolidated Statements of Operations
Three months ended Six months ended
June 30, June 30,
Income 1994 1993 1994 1993
Rent $ 7,935,400 $ 8,589,100 $ 16,290,566 $ 16,933,153
Interest 41,078 37,676 109,201 92,031
Total Income 7,976,478 8,626,776 16,399,767 17,025,184
Expenses
Property operating 4,977,725 5,393,574 10,346,828 10,720,152
Depreciation and
amortization 2,685,677 2,640,067 5,352,400 5,227,055
Interest 2,830,964 2,545,291 5,249,309 5,015,855
General and
administrative 78,357 113,652 173,160 254,821
Total Expenses 10,572,723 10,692,584 21,121,697 21,217,883
Loss before minority
interest (2,596,245) (2,065,808) (4,721,930) (4,192,699)
Minority interest
in loss of
consolidated venture 458,388 309,043 885,532 761,508
Net Loss $ (2,137,857) $ (1,756,765) $ (3,836,398) $ (3,431,191)
Net Loss Allocated:
To the General
Partners $ (21,379) $ (17,568) $ (38,364) $ (34,312)
To the Limited
Partners (2,116,478) (1,739,197) (3,798,034) (3,396,879)
$ (2,137,857) $ (1,756,765) $ (3,836,398) $ (3,431,191)
Per limited
partnership unit
(395,169) outstanding $ (5.35) $ (4.40) $ (9.61) $ (8.60)
Consolidated Statement of Partners' Capital (Deficit)
For the six months ended June 30, 1994
Special
Limited General Limited Total
Partners' Partners' Partner's Partners'
Capital Deficit Deficit Capital
Balance at
December 31, 1993 $83,123,665 $ (1,425,360) $ (471,998) $81,226,307
Net loss (3,798,034) (38,364) - (3,836,398)
Balance at
June 30, 1994 $79,325,631 $ (1,463,724) $ (471,998) $77,389,909
Consolidated Statements of Cash Flows
For the six months ended June 30, 1994 and 1993
Cash Flows from Operating
Activities: 1994 1993
Net loss $ (3,836,398) $ (3,431,191)
Adjustments to reconcile
net loss to net cash
provided by (used for)
operating activities:
Depreciation and amortization 5,352,400 5,227,055
Minority interest in loss
of consolidated venture (885,532) (761,508)
Increase (decrease) in
cash arising from changes
in operating assets
and liabilities:
Restricted cash 556,990 (114,429)
Rent and other receivables 384,777 164,730
Other assets (746,615) (841,633)
Accounts payable
and accrued expenses (72,532) (1,124,928)
Due to affiliates (204,463) 380,468
Accrued interest payable 1,192,139 38,674
Security deposits payable (6,963) 19,175
Deferred interest payable - 26,581
Net cash provided by (used for)
operating activities 1,733,803 (417,006)
Cash Flows from Investing Activities:
Additions to real estate
assets (1,399,984) (633,375)
Net cash used for investing
activities (1,399,984) (633,375)
Cash Flows from Financing Activities:
Proceeds from mortgage note
payable 138,159 671,384
Net cash provided by financing
activities 138,159 671,384
Net increase (decrease) in cash
and cash equivalents 471,978 (378,997)
Cash and cash equivalents at
beginning of period 10,346,684 10,429,370
Cash and cash equivalents at
end of period $ 10,818,662 $ 10,050,373
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period
for interest $ 4,057,170 $ 4,950,600
Notes to the Consolidated Financial Statements
The unaudited financial statements presented should be read in conjunction with
the Partnership's annual 1993 audited financial statements within form 10-K.
The unaudited interim financial statements include all adjustments consisting
of only normal recurring accruals which are, in the opinion of management,
necessary to fairly present the statement of financial position as of June 30,
1994 and the results of operations, changes in partners' capital (deficit), and
cash flows for the six months then ended. Results of operations for the period
are not necessarily indicative of the results to be expected for the full year.
The following significant events have occurred, subsequent to fiscal year 1993,
or the following material contingencies exist, and require disclosure in this
interim report per Regulation S-X, Rule 10-01, Paragraph (a)(5).
The Stamford Property
Effective January 1, 1994, the Partnership executed a ten-year lease extension
with D&B Computing Services Inc. ("D&B") for approximately 43,000 square feet
in 1351 Washington Boulevard, Stamford, Connecticut (the "Stamford Property").
However, the new rental rate D&B is paying represents a substantial reduction
from the rate paid previously, reflecting current market conditions in
Stamford. As a result of the decline in the property's cash flow, the
Partnership was unable to make full payment of debt service due each month from
February 10, 1994 to August 10, 1994 with respect to the $12.5 million
non-recourse first mortgage loan to which the Stamford Property is subject (the
"Stamford Loan"). Consequently, the Partnership is in default under the terms
of the Stamford Loan. The General Partners are now attempting to sell the
Stamford Property. In addition, the General Partners are negotiating a
short-term agreement with the lender, pursuant to which the lender would
forbear from exercising its remedies under the Stamford Loan and Mendik Realty
Company, Inc. ("Mendik Realty"), an affiliate of Mendik Corporation, would
continue to defer its management fees and leasing commissions with respect to
the Stamford Property. The Partnership would then continue efforts to sell the
Stamford Property or refinance the Stamford Loan during the forbearance period.
However, in light of the fact that the appraised value of the Stamford Property
at December 31, 1993 was less than the mortgage, and the lender is unlikely to
accept a pay off of its mortgage at a discount, it is unlikely that a sale or
refinancing, if achieved, would result in any cash proceeds being available for
distribution. If the forbearance agreement is entered into and if the
Partnership were unable to pay off the Stamford Loan within the proposed
forbearance period, the Partnership would transfer the deed in lieu of a
foreclosure in order to provide an orderly and efficient transfer of title to
the Stam ford Property to the lender. Should title to the Stamford Property
ultimately be transferred to the lender, it would result in the loss of the
Partnership's investment in the Property.
330 West 34th Street
The forbearance agreement expired on June 30, 1994. The General
Partners are currently finalizing documentation to extend the forbearance
period with The First National Bank of Chicago, the property's lender, to
December 31, 1994. The General Partners are pursuing various strategies
including continuing to seek financing to buy out the nonrecourse first
mortgage secured by the Partnership's leasehold interest in the Property or,
alternatively, complete a sale of the Property.
Part I., Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Liquidity and Capital Resources
Despite some limited signs of improvement, the commercial real estate market in
the Greater New York Metropolitan Area remains weak. As vacancy rates have
risen, increased competition among landlords has led to lower rents and
increasingly generous tenant concession packages in the form of tenant
improvements and free-rent periods. The significant cost of tenant
improvements required to be funded under both new and renewal leases has
sharply increased the demand for capital by landlords, including the
Partnership. Expenditures for tenant improvements have contributed to the
Partnership's reduced liquidity. In order to conserve the Partnership's
limited resources, the General Partners have pursued a strategy intended to
position each of the Partnership's four properties, to the extent possible, to
meet its operating and other expenses as they come due using only the operating
income generated by that Property, and, if necessary, proceeds from borrowings
secured by such Property.
During the first six months of 1994, the Partnership funded operating costs,
the cost of tenant improvements, leasing commissions, and building capital
improvements from seven sources: (i) positive cash flow generated by the
approximately 60% joint venture interest in the Property located at Two Park
Avenue, New York, New York (the "Park Avenue Property") and the Partnership's
leasehold interest in 550/600 Mamaroneck Avenue, Harrison, New York (the "Saxon
Woods Corporate Center"), (ii) Partnership reserves, (iii) the deferral of
property management fees by certain affiliates of the General Partners, (iv)
additional borrowings from the $6.5 million non-recourse line of credit (the
"Saxon Woods Line of Credit") secured by a first leasehold mortgage on the
Partnership's leasehold interest in the Saxon Woods Corporate Center (v) a
portion of the $1.25 million security deposit maintained by the unaffiliated
ground lessor for the Property at 330 West 34th Street, New York, New York (the
"34 th Street Property") (vi) the release of approximately $1 million of the
lockbox funds required by The First National Bank of Chicago ("FNBC") pursuant
to the terms of the forbearance agreement with the 34th Street Property (see
below) and (vii) the release of the escrowed funds amounting to approximately
$280,000 required by New York Life Insurance Company ("New York Life") pursuant
to the previously restructured Stamford Loan. It is expected that the
availability of funds from certain of these sources will be reduced in the
future.
Park Avenue Property - Although the Partnership has continued to lease space at
the Property, with the continuing softness in the real estate market, new and
renewal leases generally have been signed at rental rates significantly less
than the rental rates received on leases signed in the mid-1980s. The
Property's cash flow, however, is expected to remain stable for the foreseeable
future because rental rate increases negotiated in leases signed in earlier
years have offset the lower market rental rates reflected in the leases
recently signed by the Partnership. The costs of leasing space at the Property
are being funded with existing property cash flow and reserves maintained by
the joint venture that owns the Park Avenue Property. The General Partners
anticipate that, if the new leases currently under negotiation are signed,
virtually all of the Property's cash reserves will be utilized by year-end
1994. However, it is expected that these leases ultimately will increase the
Prope rty's cash flow which cash flow will be available to establish future
reserves.
The Park Avenue Property currently generates, and is expected to generate in
the future, sufficient revenue to cover operating expenses and debt service
obligations. The indebtedness secured by the Park Avenue Property currently
matures in 1998 (or 1996 at the option of the lender). The Partnership
expects, as the maturity of the loan approaches, to commence negotiations to
extend the existing loan or to seek refinancing. However, as a result of the
current lack of liquidity in the financial marketplace, no assurances can be
made that the Partnership will be able to extend with the existing lender or
refinance with a new lender, on terms acceptable to the Partnership or at all.
Saxon Woods Corporate Center - The Partnership expects that cash flow from the
Saxon Woods Corporate Center will cover operating expenses and debt service
obligations in 1994. Although the Saxon Woods Line of Credit is in the amount
of up to $6.5 million, as a result of Section 13(d) (xviii) of the Partnership
Agreement which prohibits the Partnership from incurring indebtedness secured
by a Property in excess of 40% of the then-appraised value of such Property
(or 40% of the value of such Property as determined by the lender as of the
date of financing or refinancing, if such value is lower) (the "Borrowing
Limitation"), the Partnership is permitted to borrow only $6 million based on
the most recent appraisal of the Saxon Woods Corporate Center which as of
December 31, 1993 was $15 million. The loan agreement provides that all
available cash flow from the Property will be used for expenses incurred at
the Property prior to borrowing any additional funds under the Saxon Woods
Line of Credit. The General Partners expect that additional leasing activity,
the costs of which will be funded in part by borrowing amounts remaining
available under the Saxon Woods Line of Credit, may result in an increase in
the appraised value of the Property thereby enabling the Partnership to borrow
the additional amounts available under the Saxon Woods Line of Credit up to
the full amount of $6.5 million. There can be no assurance that the
Property's appraised value will increase in the future which would enable the
Partnership to borrow additional funds. As of June 30, 1994, the Partnership
had borrowed $4,680,836 under the Saxon Woods Line of Credit. The Partnership
has made commitments to borrow an additional $362,000 which would increase the
total borrowings on the Saxon Woods Line of Credit to $5,042,836.
The indebtedness secured by the Saxon Woods Corporate Center currently matures
in September 1996. The Partnership expects, as the maturity of the loan
approaches, to commence negotiations to extend the existing loan or to seek
refinancing. However, as a result of the current lack of liquidity in the
financial marketplace, no assurances can be made that the Partnership will be
able to extend with the existing lender or refinance with a new lender, on
terms acceptable to the Partnership or at all.
34th Street Property - On February 17, 1993, the Partnership signed a long-term
lease with the City of New York effective August 1, 1992 for approximately
300,000 square feet (45% of the Property's total leasable space) in the 34th
Street Property. The City has the right to terminate the lease without
penalty provided the City gives the Partnership one year's notice of its
intent to terminate the lease. However, should it terminate the lease, the
City would be required to pay the Partnership for certain improvement costs as
defined in the lease. The terms of the lease call for the City to make annual
base rental payments of approximately $5.4 million and pay its proportionate
share of increases in real estate taxes and operating expenses. Per the terms
of the lease, approximately $1.25 million was spent by the Partnership for
tenant improvements required under the terms of the lease. In order to fund
the tenant improvements required by the City lease, the Partnership negotiated
an agreement with the unaffiliated ground lessor pursuant to which the ground
lessor agreed to make available the $1.25 million that was being held as
security under the ground lease. The ground lessor also agreed to waive the
lease requirement that the Partnership deposit an additional $1 million as
security with the ground lessor in connection with the increase in the annual
ground rent in 1992 to $2.25 million.
During 1992, the cash flow from the 34th Street Property did not cover its debt
service obligations after payment of operating expenses, and it was not
expected to meet its debt service obligations in 1993. As a result, in order
to conserve the Partnership's limited working capital reserves and induce FNBC,
the Property's lender, to modify the mortgage's terms, the Partnership
suspended its interest payments to FNBC beginning in September 1992. On August
12, 1993, the Partnership entered into a forbearance agreement which modified
the terms of the nonrecourse first mortgage secured by the Partnership's
leasehold interest in the 34th Street Property (the "34th Street Line of
Credit"). Pursuant to the forbearance agreement FNBC agreed to forbear through
June 30, 1994 from exercising its remedies under the loan agreement as a result
of the Partnership's failure to pay interest. The forbearance agreement also
allowed the Partnership to pay off the 34th Street Line of Credit for $6.5
million at any time through June 30, 1994, a substantial discount to the 34th
Street Line of Credit's current outstanding balance and below the Property's
December 31, 1993 appraised value of $9.8 million. As of June 30, 1994, there
was $15 million of principal and approximately $1.7 million of accrued interest
outstanding on the 34th Street Line of Credit. Also through June 30, 1994, the
Partnership was permitted to make interest payments to FNBC only to the extent
of available cash flow from the 34th Street Property. Since the forbearance
agreement went into effect, the Partnership has not made any interest payments
to FNBC. The General Partners are currently finalizing documentation to extend
the forbearance period with FNBC to December 31, 1994.
The forbearance agreement with FNBC provides the Partnership with an
opportunity to pay off the 34th Street Line of Credit at a substantial discount
while at the same time establishing a cost-effective means to ensure an orderly
and efficient transfer of the Property to FNBC in the event the 34 Street Line
of Credit cannot be paid off. The Partnership has no assurances that it will
be able to obtain the financing necessary to pay off the 34th Street Line of
Credit and any such pay off will depend on numerous factors including general
market conditions. Chief among these is the fact that many traditional sources
of real estate financing such as banks, insurance companies and pension funds
have dramatically curtailed their investment in commercial office properties.
Consequently, only a limited number of investors is likely to be available,
further hampering the Partnership's ability to secure a refinancing. Should
the Partnership be unable to complete a refinancing, it will likely result in
the loss of the Partnership's investment in the Property.
The General Partners are seeking to obtain either debt or equity financing even
if such financing would entail the Partnership's transferring all or a portion
of its interest in the Property to the party providing the financing. In the
event the Partnership obtains from a third party an offer to provide financing
of less than the $6.5 million required by FNBC, the Partnership would explore
with FNBC a pay off at a further discount. Should the Partnership be unable to
pay off the 34th Street Line of Credit by the new deadline or a further
extension is not obtained, the forbearance agreement provides that the
Partnership will assign its interest in the Property and in the ground lease to
the Property to FNBC, at FNBC's election, in lieu of foreclosure.
In order to improve the 34th Street Property's cash flow, beginning in January
1992, Mendik Realty Company, Inc. ("Mendik Realty") voluntarily agreed to defer
its management fees of approximately $170,000 a year that would otherwise have
been payable with respect to the 34th Street Property. In addition, Mendik
Realty agreed to defer its leasing commission with respect to the signing of
the long-term lease with the City of New York and any further leasing
commissions associated with additional leasing activity at the Property. Both
of these provisions will remain in effect pursuant to the terms of the
forbearance agreement with FNBC.
The forbearance agreement requires the Partnership to deposit all receipts from
the Property into a lockbox at FNBC. FNBC will approve all releases from the
lockbox to fund Property costs. As of June 30, 1994, approximately $817,000
was in the lockbox account maintained at FNBC.
Stamford Property - The Partnership previously restructured the nonrecourse
loan secured by the Stamford Property in 1991. As part of the terms of the
restructured loan, Mendik Corporation and an affiliate of NY Real Estate
Services 1 Inc. ("NYRES1") loaned $50,000 and $110,000, respectively, to the
Partnership in each of 1991, 1992 and 1993. The loans were required to be
deposited in an escrow account. During the first quarter of 1994, the balance
of these funds totalling approximately $280,000 was transferred to operating
cash to be used to pay costs and expenses related to the Stamford Property. As
part of the restructured agreement, Mendik Realty also agreed to defer its
management fees of approximately $70,000 a year in connection with the Stamford
Property in each of calendar years 1991, 1992 and 1993.
The restructuring was intended to enable the Stamford Property to generate
sufficient cash flow to meet its operating expenses and debt service
obligations through 1993 without utilizing the Partnership's working capital
reserves in the hope that the Stamford real estate market would recover and
that, as leases at the Property expired, the Partnership would be able to enter
into new or renewal leases at rental rates in excess of the rates being paid by
existing tenants under current leases. However, the Stamford real estate
market continued to deteriorate resulting in a further erosion of market lease
rates. While the cash flow from the Stamford Property, together with the loans
by Mendik Corporation and an affiliate of NYRES1 and the management fee
deferrals by Mendik Realty, were sufficient to cover the Property's operating
expenses and debt service obligations in 1993, due to a decline in the
Property's revenue following the extension of D&B Computing Services Inc.'s
("D&B") lease , the Partnership failed to make full payment of debt service due
February 10, 1994 through August 10, 1994 with respect to the Stamford Loan.
In order to preserve its limited working capital reserves, the Partnership
currently does not intend to fund any operating shortfalls out of reserves. As
a result of the Partnership's failure to make these interest payments, the
Partnership is in default under the terms of the Stamford Loan and the
property's lender, New York Life, may elect to exercise its remedies under the
loan agreement including accelerating the maturity date of the principal
balance of the loan and electing to foreclose on its mortgage As a result of
the default on the Stamford Loan, the interest rate increased to 15% per annum
from 10.3% per annum. The General Partners are now negotiating a short-term
agreement with New York Life, pursuant to which New York Life would forbear
from exercising its remedies under the Stamford Loan and Mendik Realty would
continue to defe r its management fees and leasing commissions with respect to
the Property. The Partnership would then continue its efforts to sell the
Property or refinance the loan during the forbearance period. However, in
light of the fact that the appraised value of the Property at December 31, 1993
was less than the mortgage, and New York Life is unlikely to accept a pay off
of its mortgage at a discount, it is unlikely that such a sale or refinancing,
if achieved, would result in any cash proceeds being available for distribution
to the Partners. If the Partnership were unable to sell the Property and pay
off the Stamford Loan within the forbearance period, the Partnership would
transfer the deed in lieu of a foreclosure in order to provide an orderly and
efficient transfer of title to the Property to New York Life.
During the latter part of 1992, the General Partners concluded that the
Partnership may be unable to hold the 34th Street Property and the Stamford
Property on a long-term basis. As a result, the Partnership determined to
account for each Property as held for disposition. Accordingly, as of December
31, 1993, the carrying value of these properties were reduced to the lower of
their depreciated cost or estimated market value.
Cash Reserves - The Partnership's consolidated cash reserves increased by
$471,978 to $10,818,662 at June 30, 1994 from $10,346,684 at December 31, 1993.
During the six months ended June 30, 1994, approximately $1.4 million was
expended for property improvements at the Park Avenue and 34th Street
Properties, and Saxon Woods Corporate Center. These expenditures were funded
by approximately $138,000 in additional borrowings under the Saxon Woods Line
of Credit and a portion of the $1.7 million in cash flow from operations
generated during the first six months of 1994.
Due to affiliates decreased primarily due to the advance payment of contract
services to an affiliate at June 30, 1994 as compared with December 31, 1993.
Accrued interest payable increased primarily due to 1994 interest accruals on
the 1351 Washington Boulevard and 330 West 34th Street Properties.
Results of Operations
For the three and six months ended June 30, 1994, the Partnership realized
operating income before non-cash expenses, on a consolidated basis, of
approximately $89,000 and $630,000 as compared to operating income of
approximately $574,000 and $1,034,000 for the corresponding periods in 1993.
The decrease in operating income is primarily attributable to declines in
consolidated rental income and increases in interest expense. The Partnership
sustained net losses after depreciation and amortization of approximately $2
million and $3.8 million for the three and six months ended June 30, 1994 as
compared to approximately $1.8 million and $3.4 million for the same periods in
1993.
Rental income for the three and six months ended June 30, 1994 was $7,935,400
and $16,290,566, respectively, compared to $8,589,100 and $16,933,153,
respectively, for the corresponding periods in 1993. The decreases in rental
income for the three and six month periods are primarily due to the following:
(i) establishing a bad debt reserve related to 1994 rent receivables due from
two tenants at the Park Avenue Property, whereas for the three and six months
ended June 30, 1993, no reserves were necessary for these tenants; (ii) a
decline due to the expiration of leases at the Park Avenue Property; and (iii)
a decline due to the lower renewal rate of a significant lease executed January
1, 1994 at the Stamford Property.
Property operating expenses for the three and six months ended June 30, 1994
decreased from the corresponding periods in 1993 due primarily to reduced real
estate taxes resulting from decreases in assessed property values on the Park
Avenue Property, 34th Street Property and the Saxon Woods Corporate Center.
These reductions were partially offset by increases in utilities, repairs and
maintenance, and professional fees.
Despite the addition of capitalized improvements to the Properties,
depreciation and amortization was virtually unchanged from 1993 to 1994 due to
fully depreciated assets and the decline in the carrying values of the 34th
Street Property and Stamford Property.
Interest expense increased primarily due to the default on the Stamford Loan
which resulted in an increase in the interest rate from 10.3% per annum to 15%
per annum. To a lesser extent, additional borrowings on the Saxon Woods Line
of Credit contributed to the increases.
General and administrative expenses decreased for the three and six months
ended June 30, 1994 as compared with the same periods in 1993 due primarily to
reduced legal costs.
The percentage of leased space at each of the properties as of June 30, 1994
and 1993 were as follows: Park Avenue property - 89% vs. 90%; Saxon Woods
Corporate Center, 550 Mamaroneck - 94% vs. 87%, 600 Mamaroneck Avenue - 56% vs.
56%; 34th Street property - 64% vs. 59%; and the Stamford property - 57% vs.
56%.
PART II OTHER INFORMATION
Items 1-4 Not applicable.
Item 5 Other information.
Effective May 20, 1994, American Express Company ("American
Express") distributed to holders of record of American Express,
shares of Lehman Brothers Holdings Inc. ("Lehman Brothers")
common stock. As a result of this transaction, New York Real
Estate Services 1 Inc., a general partner, is no longer an
affiliate of American Express. This change is not expected to
have any impact on the Partnership.
Item 6 Exhibits and reports on Form 8-K.
(a) Exhibits: None
(b) Reports on Form 8-K - No reports on Form 8-K were filed during
the quarter ended June 30, 1994
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.
MENDIK REAL ESTATE LIMITED PARTNERSHIP
BY: NY REAL ESTATE SERVICES 1 INC.
General Partner
Date: August 15, 1994 BY: s/Kenneth L. Zakin/
Name: Kenneth L. Zakin
Title: President and Director
Date: August 15, 1994 BY: s/Mark Sawicki/
Name: Mark Sawicki
Title: Vice President and Chief Financial
Officer
