The Real Deal New York

Tax commission slashes value of office tower partially owned by Trump by $92M

Break at 1290 Sixth Ave marks single largest assessment reduction of 2015

October 05, 2016 09:15AM

1290 Sixth Avenue (inset: Donald Trump)

1290 Sixth Avenue (inset: Donald Trump)

Poll support isn’t the only number falling around Donald Trump these days. The New York City Tax Commission slashed the assessed value of an office tower partially owned by Trump by $92.3 million last year over an earlier assessment by the New York City Department of Finance. That marks the city’s single largest assessment reduction in 2015.

The department had initially proposed to raise the tower’s value by $137.5 million, but the tax commission disagreed and slashed the increase to $45 million. Vornado Realty Trust TRData LogoTINY owns the majority of 1290 Sixth Avenue, with Trump holding a non-controlling stake. Vornado has been redeveloping the property and re-tenanting, which has impacted the tax flow, the New York Post reported. An office tower’s assessed value isn’t necessarily equal to its current market value, but simply serves as a tool to calculate a tower’s tax burden. The owners will pay $36.2 million in taxes this fiscal year.

The Republican presidential candidate bought his stake after selling his interest in the Riverside South project to Chinese investors. Tenants in the 2.1 million-square-foot tower include Hachette Book Group and State Street Bank. Asset manager Neuberger Berman is set to take 355,000 square feet in the tower at the end of the year.

The MetLife Building at 200 Park Avenue had the second-biggest assessment reduction last year, with $56.4 million slashed. Other properties that saw large 2015 reductions are 1221 Sixth Avenue at $24 million and Radio City Music Hall at $36 million. At least 16 Manhattan towers saw assessment reductions of $20 million or more. [NYP, 1st item]Konrad Putzier

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