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disbursements, including legal and realty brokerage fees and the expenses of this offering, will increase the acquisi-tion cost to $68,000,000. Associates proposes to obtain the $68,000,000 as follows: $29,000,000, by causing the building to be conveyed to The Prudential Life Insurance Company of America (Prudential already owns the land and is the lessor under the existing ground lease, having purchased the land in 1951 for $17,000,000. Upon acquiring the bUilding, ~rudential will execute a Master Lease of the land and building to Associates)~ $13,000,000 by a Leasehold Mortgage; and ($26,000,000 through the sale to the public of that amount of participations being offered. However. the mortgage may be a smaller amount or there may be no mortgage at all. In the latter event, the maximum amount of $39,000,000 of Participations will be sold hereunder. Each partner in Associates will sell Participations in his partnership interest equal to one-third of the amount required.
When the above transactions are closed, Associates will own the Master Lease on the property. Its contribution to the total cost of acquisition (including disbursements) will be $39,000,000, which will be derived either from the proceeds of the sale of Participations and a Leasehold Mortgage, or from the sale of participations alone. The Master Lease will be a net lease of the entire premises which, with renewal privileges, will run for 114 years to 2075. It will provide for the payment by Associates of an annual rent.
Associates will not operate the property. Simultaneously with the purchase, it will execute a net sublease of the entire premises to Empire State Building Company, with the same term and renewal privileges as the Master Lease. Empire State Building Company is a joint venture composed of Wien, Harry B. Helmsley, and two corporations owned by others. Associates proposes to obtain the Leasehold Mortgage from Real Estate Investing Associates, Inc., 56~ of whose stock is owned by Wien and Helmsley.
Click here for Source: 1961 SEC filing
This website is not affiliated with Malkin Holdings LLC or Empire State Building Associates LLC
disbursements, including legal and realty brokerage fees and the expenses of this offering, will increase the acquisi-tion cost to $68,000,000. Associates proposes to obtain the $68,000,000 as follows: $29,000,000, by causing the building to be conveyed to The Prudential Life Insurance Company of America (Prudential already owns the land and is the lessor under the existing ground lease, having purchased the land in 1951 for $17,000,000. Upon acquiring the bUilding, ~rudential will execute a Master Lease of the land and building to Associates)~ $13,000,000 by a Leasehold Mortgage; and ($26,000,000 through the sale to the public of that amount of participations being offered. However. the mortgage may be a smaller amount or there may be no mortgage at all. In the latter event, the maximum amount of $39,000,000 of Participations will be sold hereunder. Each partner in Associates will sell Participations in his partnership interest equal to one-third of the amount required.
When the above transactions are closed, Associates will own the Master Lease on the property. Its contribution to the total cost of acquisition (including disbursements) will be $39,000,000, which will be derived either from the proceeds of the sale of Participations and a Leasehold Mortgage, or from the sale of participations alone. The Master Lease will be a net lease of the entire premises which, with renewal privileges, will run for 114 years to 2075. It will provide for the payment by Associates of an annual rent.
Associates will not operate the property. Simultaneously with the purchase, it will execute a net sublease of the entire premises to Empire State Building Company, with the same term and renewal privileges as the Master Lease. Empire State Building Company is a joint venture composed of Wien, Harry B. Helmsley, and two corporations owned by others. Associates proposes to obtain the Leasehold Mortgage from Real Estate Investing Associates, Inc., 56~ of whose stock is owned by Wien and Helmsley.
Click here for Source: 1961 SEC filing
This website is not affiliated with Malkin Holdings LLC or Empire State Building Associates LLC