Estate of James Barudin, Deceased, Muriel B. Clarke, Executrix - Page 7

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          FC Partnership remained at $40,000 for each ownership unit.                 
               In July 1988, when the New York City real estate market was            
          thriving, the FC Partnership refinanced its mortgage on the                 
          Partnership Properties.  As a result of additional funds that               
          were available to the FC Partnership from this refinancing, the             
          FC Partnership made a special cash distribution of $140,000 to              
          each general partner with respect to each ownership unit in the             
          partnership.                                                                
               In 1988, for purposes of refinancing its mortgage, the FC              
          Partnership obtained from Cushman & Wakefield, Inc. (C&W), an               
          appraisal of the Partnership Properties (1988 C&W report).  Using           
          for its methodology comparable sales and income capitalization              
          and assuming that economic conditions and the New York City                 
          commercial real estate market would continue to improve, the 1988           
          C&W report concluded that, as of May 9, 1988, the estimated fair            
          market value of the underlying Partnership Properties equaled               
          $110 million.  The 1988 C&W report did not attempt to value the             
          FC Partnership, nor an ownership unit in the FC Partnership.                
               In the spring of 1989, Mr. Silver was informed that CUNY had           
          decided to build its own campus and that when the new campus was            
          completed in 1994, CUNY would terminate a large portion of its              
          lease of the Partnership Properties.                                        
               During the early and mid-1980's, real estate leasing                   
          activity in midtown Manhattan increased each year.                          






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