10.

Commitments and Contingencies

Legal

July 3, 2017,

the New York Supreme Court (the “Court”) ruled in favor of

present or former tenants of apartment units at the Company’s buildings located at

Murray Street and

Park Place in Manhattan, New York, who brought an action against the Company alleging that they were subject to applicable rent stabilization laws with the result that rental payments charged by the Company exceeded amounts permitted under these laws because the buildings were receiving certain tax abatements under Real Property Tax Law

421

-g. The Court also awarded the plaintiffs, their attorney’s fees and costs. The Court declared that the plaintiff-tenants were subject to rent stabilization requirements and referred the matter to a special referee to determine the amount of rent over-charges, if any. On

July 18, 2017,

the Court stayed the above decision; the Company subsequently appealed the decision to the Appellate Division, First Department. On

January 18, 2018,

the Appellate Division unanimously ruled in favor of the Company, holding that the Company acted properly in de-regulating the apartments. The Appellate Division decision and order was subject to a motion for leave to appeal, which was granted on

April 24, 2018.

There can be

assurance as to the outcome of the appeal. Due to the inherent uncertainty and unpredictability of litigation, we cannot determine at this time with any specificity the Company’s potential liability.

In addition to the above, the Company is subject to certain legal proceedings and claims arising in connection with its business, including a claim under the Americans with Disabilities Act of

1990

at the

141

Livingston Street property. Management believes, based in part upon consultation with legal counsel, that the ultimate resolution of all such claims will

not

have a material adverse effect on the Company’s consolidated results of operations, financial position, or cash flows.

Commitments

The Company is obligated to provide parking availability through

August 2020

under a lease with a tenant at the

250

Livingston Street property; the current cost to the Company is approximately

$205

per year.

Concentrations

The Company’s properties are located in the Boroughs of Manhattan and Brooklyn in New York City, which exposes the Company to greater economic risks than if it owned a more geographically dispersed portfolio.

The breakdown between commercial and residential revenue is as follows:

	Commercial			Residential			Total
Year ended December 31, 2018		25	%		75	%		100	%
Year ended December 31, 2017		27	%		73	%		100	%
Year ended December 31, 2016		26	%		74	%		100	%