EFTA01818573

To: From: Jeffrey Epstein Sent Thur 9/10/2009 10:39:06 PM Subject: Re: From Anthony call i tried to call you On Thu, Sep 10, 2009 at 6:30 PM, ar • wrote: Hi jeffrey, Just wanted to update you as to how things arc going: Spring St Decided not to go ahead with the hotel beginning of 2008 and tried to sell the building. I had a contract with the Quatar Investment Authority ( they were going to build a hotel) for $65M. This was in Sep 08. All fell apart after that.( were about two months too late) - The building is 30% vacant and I am in the process of rerenting. Market is extremely bad and this will take some time even at the low rents. I am seeing no new demand. A few exisitng tenants are jumping around but otherwise no one new is coming to the market. The debt comes due Sep next year ($2.8M) Should not have any problem to refinance. ... Van Dam I also had a lease signed for 50% of the building to a new private high school. Their financing fell apart end of last year. We had $250K deposit that we kept. They did not even move in . Two floors arc still available. 301 I try to keep everything rented. It has been very slow on getting back stabilized tenants. ( last year only 1 apartment) Rents are down about 20% and everyday is a negotiation to keep a tenant. We are getting killed on the real estate taxes. Getting huge increases last two years. (10% each year) - Taxes on the apartments alone are $1.5M/ yr. I don't see this ending. Some of the individual owners are trying to sell units, many offers but financing in the building is impossible as we don't meet the FHA and Fannie guidelines as we have only 22% sold. We used to have local banks who would do portfolio lending approve the abuilding and this was never an issue. Not sure how to get around this.-- Any ideas? Retail Restaurant is still going well ( nearly 19 years). Jennifer Convertables defaulted and I worked a deal with them to stay in the space on a month to month deal. Reatil demand has been non existant and rents arc down 30-40%. Both of these mortgages arc not due till 2011. EFTA_R1_00190757 EFTA01818573 I have not seen Mark for a while but his kids are around the building alot and seem to be doing fine. They both started school this week. His daughter is a real character.. Very smart, stubborn, independent type. Everyone in the family is well. Time really flies with now 13 years old already. This year we are home schooling again. I was not impressed with the private school last year and feel it is much better value to hire teachers and do it ourselves. The kids love it and seem to be !caring alot. Next yr goes to high school so this will be the last year we can do this. Nicky and her family are in Park City and love it out there. We go visit once in a while . Jonathan is still with his hedge Ale have been dolling really well, although the last year was tough .. He had a baby boy and Paul is still with JP Morgan. He moved more to the private client side and is covering some big investors there. He seems to be having a great time.. Let me know when I can come down to visit, I will be in Miami in November for a wedding. Regards Anthony Anthony Barrett Ossa Properties Inc 301 East 66th St NY NY 10065 *** *********** **** ******** ********************************* The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return c-mail or by c-mail to [email protected], and EFTA_R1_00190758 EFTA01818574 destroy this communication and all copies thereof, including all attachments. EFTA_R1_00190759 EFTA01818575