This ex-trophy building owner is New York’s biggest tax dodger

Japanese firm Hiro Real Estate owes $40M on 650 Madison Avenue, 150 East 42nd Street

New York /
Aug.August 18, 2014 11:00 AM

A Japanese firm that unloaded its New York City trophy buildings following a bitter family dispute failed to pay $40 million in city and state taxes, making it Gotham’s biggest tax dodger.

Hiro Real Estate owes the taxes on two New York City real estate entities, the New York Post reported. Through those entities, Hiro previously controlled the Mobil Building at 150 East 42nd Street, which it sold to New York investor David Werner for $900 million earlier this year. In 2008, it offloaded 650 Madison Avenue in a $680 million sale to Ashkenazy Acquisitions and the Carlyle Group.

Hiro’s parent company closed for business in July 2013 following a lengthy power struggle between its owners, brothers Mitsuhiro and Hirokuni Honzawa, according to the newspaper.

“We continue to pursue all means available to us to collect the tax debt owed to New York state,” a spokesman for the New York state tax department told the Post. [NYP]Tom DiChristopher


Related Articles

arrow_forward_ios
Former WeWork CEO Adam Neumann (Getty Images, iStock, Yard 8 Miami, Stacks on Main, Trulia, Power Design Inc., Inkwell Decatur, Wikipedia, Illustration by Kevin Cifuentes for The Real Deal)
Depreciation Man: Adam Neumann’s real estate binge to ease tax bill
Depreciation Man: Adam Neumann’s real estate binge to ease tax bill
NYC hotel property taxes skyrocketed to 30% of revenue: report
NYC hotel property taxes skyrocketed to 30% of revenue: report
NYC hotel property taxes skyrocketed to 30% of revenue: report
Stephen Ross and Charles Kushner (Getty)
Stephen Ross, Charles Kushner, other titans paid no federal taxes for years
Stephen Ross, Charles Kushner, other titans paid no federal taxes for years
Attorney General Letitia James, Tax Equity Now’s Policy Director Martha Stark and Mayor-Elect Eric Adams (Getty)
Do-or-die: Group files final appeal for property tax reform
Do-or-die: Group files final appeal for property tax reform
From left: Robert Mercer with 48-05 Metropolitan Avenue and Gary Barnett with 17 West 60th Street (Getty, Google Maps, Bulado General Contractors Corp)
$730M loan bundle funds slew of NYC projects
$730M loan bundle funds slew of NYC projects
Moishe Mana, Eugene Lemay and the Mana Contemporary (Getty, Wikimedia)
Moishe Mana employee indicted in $7.8M tax avoidance scheme
Moishe Mana employee indicted in $7.8M tax avoidance scheme
Ministerial privilege: Would Tony Blair’s transfer tax loophole work in the US?
Ministerial privilege: Would Tony Blair’s transfer tax loophole work in the US?
Ministerial privilege: Would Tony Blair’s transfer tax loophole work in the US?
Startup wants to demystify real estate tax breaks
Startup wants to demystify real estate tax breaks
Startup wants to demystify real estate tax breaks
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...