| BALANCE SHEET | |
| ASSETS | |
| Real Estate - 32 West 40th Street New York, New York | |
| Land | 1,982,360 |
| Building | 5,339,490 |
| Building improvements | 5,070,986 |
| 12,392,836 | |
| Less: Accumulated depreciation | 6,268,120 |
| Real estate (at net book value) | 6,124,716 |
| Cash and cash equivalents | 522,955 |
| Investment in certificates of deposit | 100,000 |
| Escrow - Northmarq Capital | 114,169 |
| Accounts receivable - tenants | 156,180 |
| Accounts receivable - commercial tenants | 169,096 |
| Other receivables | 6,975 |
| Prepaid expenses | 131,041 |
| Deferred leasing costs | 11,205 |
| Security deposits held by agent | 65,712 |
| Mortgage refinance costs (net) | 80,473 |
| TOTAL ASSETS | 7,482,522 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |
| LIABILITIES | |
| First mortgage payable | 5,306,831 |
| Leases payable | 63,426 |
| Accounts payable and accrued expenses | 85,752 |
| Accrued mortgage interest | 25,773 |
| Prepaid maintenance | 24,264 |
| Alteration deposits payable | 43,806 |
| Security deposits payable | 66,027 |
| Due to shareholders - real estate tax abatement | 91,198 |
| TOTAL LIABILITIES | 5,707,077 |
| STOCKHOLDERS' EQUITY | 1,775,445 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 7,482,522 |
| STATEMENT OF INCOME AND EXPENSES | |
| REVENUES | |
| Maintenance and special assessments | |
| Maintenance | 1,291,503 |
| Special assessments | 302,006 |
| 1,593,509 | |
| Less: paid-in capital re: mortgage amortization | (176,612) |
| Total maintenance and special assessments used for operations | 1,416,897 |
| Other operating revenues | |
| Commercial and rental income | 464,669 |
| Laundry and storage income | 64,861 |
| Total other operating revenues | 529,530 |
| Other revenues | |
| Transfer fees | 99,330 |
| Sublet fees | 17,916 |
| Interest income | 9,586 |
| Late fees | 34,690 |
| Insurance reimbursement | 43,240 |
| Move in/out fees | 28,045 |
| Miscellaneous income | 15,323 |
| Total other revenues | 248,130 |
| TOTAL REVENUES | 2,194,557 |
| COST OF OPERATIONS | |
| Administrative expenses - Schedule 1 | 74,810 |
| Operating expenses - Schedule 2 | 622,596 |
| Repairs and maintenance - Schedule 3 | 151,517 |
| Real estate tax (net of $7,279 refund in 2011) | 838,476 |
| Mortgage interest | 308,062 |
| Interest on capital leases | 28,802 |
| Corporation taxes | 10,987 |
| TOTAL COST OF OPERATIONS | 2,035,250 |
| Income (Loss) from operations before depreciation and amortization | 159,307 |
| Depreciation and amortization | 386,303 |
| NET INCOME (LOSS) | (226,996) |