FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(Mark One)

[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2001

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ___________

Commission file number 0-2673

NAVARRE-500 BUILDING ASSOCIATES

(Exact name of registrant as specified in its charter)

A New York Partnership 13-6082674

(State or other jurisdiction of (I.R.S. Employer

incorporation or organization) Identification No.)

60 East 42nd Street, New York, New York 10165

(Address of principal executive offices)

(Zip Code)

(212) 687-8700

(Registrant's telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [ X ]. No [ ].

An Exhibit Index is located on Page 11 of this Report.

Number of pages (including exhibits) in this filing: 11

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

Navarre-500 Building Associates

Condensed Statement of Income

(Unaudited)

For the Three Months

Ended March 31,

2001 2000

Income:

Rent income, from a

related party (Note B) $ -0- $ -0-

Dividend Income 40,478 33,046

Interest Income -0- 35,034

--------- ---------

Total income 40,478 68,080

--------- ---------

Expenses:

Leasehold rent (Note B) -0- -0-

Supervisory services, to a

related party (Note C) -0- -0-

Professional fees (Note D) 13,753 -0-

Interest Expense -0- 9,542

--------- ---------

Total expenses 13,753 9,542

--------- ---------

Net income $ 26,725 $ 58,538

========= =========

Earnings per $5,000

participation unit, based on

640 participation units

outstanding during the period $ 41.76 $ 91.47

========= =========

Distributions per $5,000

Participation:

Income $ -0- $ 91.47

Return of capital -0- 73,528.66

--------- ---------

Total distributions $ -0- $ 73,620.13

========= =========

As of March 31, 2001, the investment of the Participants had been repaid in full but the Participants continue to hold pro rata interests in Registrant based upon the original participating interests.

See notes to condensed financial statements.

Navarre-500 Building Associates

Condensed Balance Sheet

(Unaudited)

Assets March 31, 2001 December 31, 2000

Cash $ -0- $ -0-

Escrow Account held by

Wien & Malkin LLP 2,961,701 2,934,976

----------- -----------

Total Assets $ 2,961,701 $ 2,934,976

=========== ===========

Current Liabilities

Total Current liabilities $ -0- $ -0-

=========== ===========

Capital

Capital January 1: $ 2,934,976 $49,881,171 Add, Net income

January 1, 2001 through

March 31, 2001 26,725

January 1, 2000 through

December 31, 2000 -0- 170,687

----------- -----------

$ 2,961,701 $50,051,858

Cash distributions -0- (47,116,882)

----------- -----------

Capital, March 31, 2001 2,961,701 -0-

Capital, December 31, 2000 -0- 2,934,976

---------- -----------

Total liabilities and

Capital:

March 31, 2001 $2,961,701

==========

December 31, 2000 $ 2,934,976

===========

See notes to condensed financial statements.

Navarre-500 Building Associates

Condensed Statement of Cash Flows

(Unaudited)

January 1, 2001 January 1, 2000

through through

March 31, 2001 March 31, 2000

Cash flows from operating activities:

Net income and net cash provided

by operating activities $ 26,725 $ 58,538

----------- ----------

Cash flows from investing activities:

Purchase Money Note receivable $ -0- $52,500,000

Accrued Interest receivable -0- 56,937

Accrued expenses of sale -0- (212,647)

----------- ----------

Net cash provided by investing

activities -0- 52,344,290

----------- ----------

Cash flows from financing activities:

Cash Distributions -0- (47,116,882)

Advances from Partner -0- (2,525,935)

----------- ----------

Net cash used in financing

activities -0- (49,642,817)

----------- ----------

Increase in cash during period 26,725 2,760,011

Cash, beginning of quarter 2,934,976 62,816

----------- ----------

Cash, end of quarter $ 2,961,701 $2,822,827

=========== ==========

See notes to condensed financial statements.

Notes to Condensed Financial Statements (unaudited)

Note A Organization and Basis of Presentation

In the opinion of management, the accompanying unaudited condensed financial statements reflect all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position of Registrant as of March 31, 2001, its results of operations and cash flows for the three months ended March 31, 2001 and 2000 and its changes in Partners' capital for the three months ended March 31, 2001. Information included in the condensed balance sheet as of December 31, 2000 has been derived from the audited balance sheet included in Registrant's Form 10-K for the year ended December 31, 2000 (the "10-K") previously filed with the Securities and Exchange Commission (the "SEC"). Pursuant to rules and regulations of the SEC, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted from these financial statements unless significant changes have taken place since the end of the most recent fiscal year. Accordingly, these unaudited condensed financial statements should be read in conjunction with the financial statements, notes to financial statements and the other information in the 10-K. The results of operations for the three months ended March 31, 2001 are not necessarily indicative of the results to be expected for the full year.

Note B Interim Period Reporting

Registrant was organized as a partnership on March 21, 1958. Registrant owned the tenant's interest in the long-term ground lease (the "Lease") of the buildings located at 500 and 512 Seventh Avenue and 228 West 38th Street, New York, New York (the "Property") until Registrant sold the Lease on December 23, 1999. Registrant ceased to be a partnership on December 23, 1999 when the interests of its partner Agents were redeemed by conveyance to them of direct pro rata interests in the Property. The partnership's final tax return was filed for the period ending December 23, 1999. After December 23, 1999, such former partners (the "Agents") continued the ownership of the Lease as co-tenants for the benefit of the Participants, and the co-tenancy has conducted its business under the name "Navarre-500 Building Associates, a co-tenancy", all for the benefit of the Participants on all the same pre-existing economic and investment terms through the date of such sale and thereafter. In accordance with the terms of the contract of sale, Seller is required to hold 5% of the gross sales price in reserve for one year for contingencies. At March 31, 2001 the balance in the escrow account was $2,961,701. Accordingly, reference herein to Registrant is a reference to Navarre-500 Building Associates, a co-tenancy. Registrant's Agents were Peter L. Malkin and Thomas N. Keltner, Jr. who are now the co-tenant Agents. The land underlying the buildings was owned by an unaffiliated third party and was leased to

Registrant under the Lease. The current term of the Lease as extended was to expire on May 1, 2024. The Lease provided for one 21-year renewal option. The annual rent payable by Registrant under the Lease was $487,500 during the current and renewal term.

Registrant did not operate the Property, but subleased the Property to 500-512 Seventh Avenue Associates ("Sublessee") pursuant to a net operating sublease (the "Sublease"), the current renewal term, was to expire on April 30, 2024. The Sublease provided for one renewal option co-extensive with the Lease. Peter L. Malkin, an Agent in Registrant, has also been a partner, and now a co-tenant in Sublessee. The Agents in Registrant are also members of Wien & Malkin LLP, which provides supervisory and other services to Registrant and to Sublessee ("Supervisor"). See Note C of this Item 1 ("Note C").

Under the Sublease, Sublessee must pay (i) annual basic rent of $1,167,500 during the current renewal term and the additional renewal term (the "Basic Rent") and (ii) additional rent to Registrant during the current term and the renewal term equal to 50% of Sublessee's net operating profit in excess of $620,000 for each lease year ending June 30 (the "Additional Rent").

Note C Supervisory Services

Registrant paid Supervisor for special services at hourly rates and for supervisory services and disbursements. The supervisory fees were $40,000 per annum (the "Basic Payment") plus 10% of all distributions to Participants in any year in excess of the amount representing a return at the rate of 23% per annum on their remaining cash investment in Registrant (the "Additional Payment"). At March 31, 2001, the investment of the Participants had been repaid in full but the Participants continue to hold pro rata interests in Registrant based upon the original participating interests.

No remuneration was paid during the three month period ended March 31, 2001 by Registrant to any of the Agents as such. The supervisory services included, among other items, the preparation of certain reports required by the Securities and Exchange Commission, the monitoring or coordination of certain other areas of legal compliance, the preparation of certain financial reports, as well as the supervision of accounting and

other documentation related to the administration of Registrant's business.

Reference is made to Note B of Item 1 (Note "B") for a description of the terms of the Sublease between Registrant and Sublessee. The respective interests, if any, of the Agents in Registrant and Sublessee arise solely from their respective ownership of participations, if any, in Registrant and, in the case of Mr. Malkin, his ownership of a partnership or co-tenant interest in Sublessee. The Agents received no extra or special benefit not shared on a pro rata basis with all other Participants in Registrant or partners or co-tenants in Sublessee. However, each of the Agents, by reason of his respective interest in Supervisor, is entitled to receive his pro rata share of any fees or other remuneration paid to Supervisor for services rendered to Registrant and Sublessee.

As of March 31, 2001, the Partners owned of record and beneficially $8,125 participations in Registrant, representing 0.25% of the currently outstanding participations therein.

In addition, as of March 31, 2001, certain of the Partners in Registrant (or their respective spouses) held additional Participations as follows:

Entities for the benefit of members of Peter L. Malkin's family owned of record and beneficially $35,000 of Participations. Mr. Malkin disclaims any beneficial ownership of such Participations, except that related Trusts are required to complete scheduled payments to Mr. Malkin.

Peter L. Malkin, Trustee of Mattee Saunders 1983 Trust, owned $7,500 of Participations. Mr. Malkin disclaims any beneficial ownership of such Participations.

In accordance with the provisions of the respective participating agreements, Peter L. Malkin, in his capacity as agent, purchased from non-consenting Participants an aggregate of $1,875 of participations for the benefit of consenting Participants, all on the terms described in the Agents' Consent Solicitations dated July 15, 1999. Each such purchase may be revised at the discretion of the Agents upon receipt of the consent from the applicable non-consenting Participant.

Note D Professional Fees

During the quarter ended March 31, 2001, professional fees totaling $13,303 were paid to the firm of Wien & Malkin LLP,a related party.

Item 2. Management's Discussion and Analysis of

Financial Condition and Results of Operations.

Registrant was a partnership and is now a co-tenancy. As stated in Note B, Registrant was organized for the purpose of acquiring the Master Lease subject to the Sublease. Basic Rent received under the Sublease was used to pay annual rent due under the Master Lease and the Basic Payment to Supervisor for supervisory services. The balance of the Basic Rent was distributed to the Participants. Additional Rent was distributed to the Participants after the Additional Payment to Supervisor. See Note C above. Pursuant to the Sublease, Sublessee had assumed sole responsibility for the condition, operation, repair, maintenance and management of the Property. Registrant did not need to maintain substantial reserves or otherwise maintain liquid assets to defray any operating expenses of the Property.

Registrant did not pay dividends. On January 1, 2000, a regular distribution of $36,882 was made to participants and a distribution of sales proceeds of $47,080,000 was made on January 14, 2000.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

The Property of Registrant is the subject of the following pending litigation:

Wien & Malkin LLP, et. al. v. Helmsley-Spear, Inc., et. al. On June 19, 1997 Wien & Malkin LLP and Peter L. Malkin filed an action in the Supreme Court of the State of New York, against Helmsley-Spear, Inc. and Leona Helmsley concerning various partnerships which own, lease or operate buildings managed by Helmsley-Spear, Inc., including Registrant's property. In their complaint, plaintiffs sought the removal of Helmsley-Spear, Inc. as managing and leasing agent for all of the buildings. Plaintiffs also sought an order precluding Leona Helmsley from exercising any partner management powers in the partnerships. In August, 1997, the Supreme Court directed that the foregoing claims proceed to arbitration. As a result, Mr. Malkin and Wien & Malkin LLP filed an arbitration complaint against Helmsley-Spear, Inc. and Mrs. Helmsley before the American Arbitration Association. Helmsley-Spear, Inc. and Mrs. Helmsley served answers denying liability and asserting various affirmative defenses and counterclaims; and Mr. Malkin and Wien & Malkin LLP filed a reply denying the counterclaims. By agreement dated December 16, 1997, Mr. Malkin and Wien & Malkin LLP (each for their own account and not in any representative capacity) reached a settlement with Mrs. Helmsley of the claims and counterclaims in the arbitration and litigation between them. Mr. Malkin and Wien & Malkin LLP then continued their prosecution of claims in the arbitration for relief against Helmsley-Spear, Inc., including its termination as the leasing and managing agent for various entities and properties, including the Registrant's Lessee. The arbitration hearings were concluded in June 2000, and the arbitrators issued their decision on March 30, 2001, ordering that the termination of Helmsley-Spear, Inc. would require a new vote by the partners in the Lessee, setting forth procedures for

such a vote, and denying the other claims of all parties. Following the decision, Helmsley-Spear, Inc. applied to the court for confirmation of the decision, and Mr. Malkin and Wien & Malkin LLP applied to the court for an order setting aside that part of the decision regarding the procedure for partnership voting to terminate Helmsley-Spear, Inc. and various other parts of the decision on legal grounds. The parties' applications to the court are pending.

Item 6. Exhibits and Report on Form 8-K

(a) The exhibits hereto are incorporated by reference.

(b) Registrant has not filed any report on Form

8-K during the quarter for which this report is being filed.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

The individual signing this report on behalf of Registrant is Attorney-in-Fact for Registrant and each of the Partners in Registrant, pursuant to Powers of Attorney, dated August 6, 1996 and May 14, 1998 (collectively, the "Power").

NAVARRE-500 BUILDING ASSOCIATES

(Registrant)

By /s/ Richard A. Shapiro

Richard A. Shapiro, Attorney-in-Fact*

Date: May 21, 2001

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the undersigned as Attorney-in-Fact for each of the Partners in Registrant, pursuant to the Power, on behalf of Registrant on the date indicated.

By /s/ Richard A. Shapiro

Richard A. Shapiro, Attorney-in-Fact*

Date: May 21, 2001

__________________________

* Mr. Shapiro supervises accounting functions for Registrant.

EXHIBIT INDEX

Number Document Page*

3(a) Partnership Agreement, dated March 21, 1958, which was filed as Exhibit 1 to Registrant's S-1, as amended, by letter dated April 3, 1958 and assigned File No. 2-14019, is incorporated herein by reference.

3(b) Amended Business Certificate of Registrant which was filed as Exhibit 3(b) to Registrant's Annual Report on 10-K for the fiscal year ended December 31, 1996 and is incorporated herein by reference.

4 Form of Participation Agreement, which was filed as Exhibit 4 to Registrant's S-1 by letter dated April 3, 1958 and assigned File No. 2-14019, is incorporated herein by reference.

24 Powers of Attorney dated August 6, 1996 and May 14, 1998 between Peter L. Malkin and Thomas N. Keltner, Jr., as Partners in Registrant, and Stanley Katzman and Richard Shapiro, which was filed as Exhibit 24 to Registrant's 10-Q for the quarter ended March 31, 1998 and is incorporated herein by reference.

__________________________

* Page references are based on sequential numbering system.

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