City overestimates “market value” of Time Warner office condo by $389M

Figure grew to $944M this year from $492M in an apparent error

TRD New York /
May.May 31, 2016 11:10 AM

The Related Companies’ office condominium at 10 Columbus Circle may be valuable, but the city seems to have accidentally overshot the mark.

The Department of Finance agreed to lower the “market value” it uses to assess taxes on the property by about $389 million after the landlord pointed out a mistake by the agency, to $555 million, the New York Post reported.

Related developed the two-tower, 2.8 million-square-foot Time Warner Center in 2003.

Time Warner owned and occupied the 1.1 million-square-foot office condo at 10 Columbus Circle until it sold the property in 2014 to Related for $1.3 billion, with plans to move to a 1.6 million-square-foot office condo at Related’s 30 Hudson Yards, which is slated to open in 2019. In the meantime, the media conglomerate leased the space from Related.

City officials, apparently misunderstanding the nature of the transactions, used an unusually low cap rate of 6.88 percent to gauge the property’s value, which they rated at $944 million — nearly double its $492 million “market value” the previous year.

The city’s assessed “market value” is often significantly lower than a property’s true market value, if it were to sell. [NYP]Ariel Stulberg

Related Articles

Related's Jamar Adams and Steve Ross with 14-06 Gateway Boulevard (Credit: Getty Images and Google Maps)

Related is the latest developer to target the Rockaways

Related Chairman Stephen Ross (Credit: Getty Images, Wikipedia)

Related drops 700-foot-long “wall” from Hudson Yards plan

Shaun Osher, CORE CEO (Credit: Getty Images and iStock)

CORE becomes latest NY resi brokerage to expand into South Florida

Related Companies chairman Stephen Ross and Hudson Yards (Credit: Getty Images)

Next phase of Hudson Yards could include 700-foot-long wall

15 Hudson Yards (Credit: StreetEasy)

Hudson Yards pad resells for 22% premium

From left: 200 East 66th Street; Extell’s 157 West 57th Street; and 15 Hudson Yards (Credit: Street Easy)

Four home sales that caught our eye — and cost an arm and a leg

Related chairman Stephen Ross and a rendering of Western Yard (Credit: Getty Images and Hudson Yards)

Related no longer giving timetable for finishing Hudson Yards

Related chairman Stephen Ross with 30 Hudson Yards, 1633 Broadway and 55 Hudson Yards (Credit: Getty Images, Paramount, Wikipedia)

Here were NYC’s largest real estate finance deals of 2019