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| Rising light on the ESB issue |
Our story:
Recent major life transitions found our family struggling to understand the finances. We knew there was a "Wien/Malkin" investment, but had no idea what that meant in terms of the type of investment or its worth. Financial professionals could not help because it is a private holding. Checks were rather small so we figured the investment must also be small.
Last spring we started getting correspondence from Malkin and messages on check stubs, none of which were comprehensible to us. In June or July we received a call inviting us to join a conference call about this investment. We were eager to participate as we thought we needed to have some idea of what was going on.
What we have learned so far from that call and other communications:
- There are only 2800 owners of the Empire State building, the land on which it stands, and the master lease. The current owners bought or inherited their "units" by way of a 1961-2 agreement made between Larry Wien and friends, aquaintances, and family members. The original investors were very often not wealthy yet put together their investment of because they had great faith and trust in Mr. Wien. This original agreement was to run to the year 2076.
- The Malkins and the Helmsley's, without the knowledge of most of the 2800 owners of record, decided to file for a Real Estate Investment Trust stock market offering, making the Empire State Building the flagship in a group of 18-23 other NYC buildings which would comprise the REIT. To date, this filing has cost us Legacy Owners a huge sum in expenses and we understand has had significant impact on the way the Securities and Exchange Commission codes and the Federal Tax system operates.
- Now here is where we get really confused. For reasons that don't make sense to us, the Malkins and the Helmselys will get vastly higher proceeds from this deal than the owners of record. Trying to wrap our brains around the "facts" presented in written and phone communications with the Malkins, press coverage and highlights from two websites into which untold time and effort have been put (search for Empire State Building Investors and Independent Information for ESB Associates) only serve to obfuscate the issue.
- Then what concerns us, is that Merrill-Lynch and one of the big Wall Street banks involved in the banking fiasco are putting this deal together for the Malkins and the Helmsleys (and certainly getting paid big bucks: we suspect "our bucks"). Given the recent banking debacle, we don't feel comfortable that this partnership will be watching after the little folks.
Using this blog and/or conference calls, we hope that others will share their family history/stories with this investment and will, with combined effort, help to straighten out the facts as you interpret them, using "plain English" which we all know and love. (Feel free to correct our information using that same language.)
So, after reviewing the 1,000 - 1,500 page document and the 20 page summary from the Malkins we are all to receive if the SEC approves this deal, how will you cast your vote? It is an important vote, as 80% of us have to approve this deal before it will go forward.
Oh, and, it was mentioned on the first conference call we participated in that a different deal could yield much fairer results. Perhaps some enlightenment on this prospect would be useful.
And we get confused when the press refers to the "owner' of the Empire State Building as the Malkins. Aren't they the "leaseholders"? Aren't we the Owners?
If you would like to send us email: BGBFAM @ yahoo.com
Cindy ...
