Appeals court says Vornado will have to pay that $25M transfer tax after all

Use of sale value instead of city estimate could impact other REITs

New York /
Apr.April 30, 2019 08:43 AM
Vornado CEO Steve Roth (Credit: Getty Images and iStock)

Vornado CEO Steve Roth (Credit: Getty Images and iStock)

Vornado Realty Trust will have to pay an additional $25.5 million in taxes on previous property sales, a New York state appeals court has confirmed.

The court upheld a February 2018 decision by the New York City Tax Appeals Tribunal, which resulted from an audit of the company’s 2011 sale of a stake in One Park Ave and now involves the taxes on several other transfers, the New York Post reported.

Vornado and its subsidiary Alexander’s had relied on the city’s Finance Department estimates of market value to calculated their discounted transfer taxes, while the new taxes will be based on the actual sale value, which is generally much higher.

The previous ruling also found that Vornado’s sale of One Park Ave fell just short of the 40 percent threshold that would qualify it for lower taxes. Two weeks ago, Vornado sold a 45 percent stake in prime retail portfolio valued at $5.6 billion to a group of investors including Crown Acquisitions and Qatar Investment Authority.

City property owners are now concerned that other past transfers may subjected to similar tax hikes, according to the Post. Because the court’s decision was unanimous, Vornado will have to seek leave to appeal from the state court of appeals. [NYP] — Kevin Sun


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)
Free and clear: Vornado pays off debt at 220 CPS
Free and clear: Vornado pays off debt at 220 CPS
Signature Bank president and chief executive officer Joseph DePaolo (iStock)
“It’s a good time to make loans:” Multifamily lender smashes earnings record
“It’s a good time to make loans:” Multifamily lender smashes earnings record
Brian Kingston, managing partner & CEO, Brookfield's Real Estate Group and Brookfield Property Partners, in front of Two Blue Slip in Greenpoint (Brookfield Property Partners, Two Blue Slip, iStock)
Brookfield scores $330M refi at Greenpoint Landing
Brookfield scores $330M refi at Greenpoint Landing
Sam Chandan will head NYU Stern’s real estate programs  (samchandan.com, iStock)
NYU Schack Institute Dean Sam Chandan stepping down to join Stern
NYU Schack Institute Dean Sam Chandan stepping down to join Stern
Billionaire investor Daniel Och and 200 Central Park South (Wikipedia, Getty Images, Illustration by Kevin Cifuentes for The Real Deal)
A $190M megadeal at 220 Central Park South
A $190M megadeal at 220 Central Park South
1009-1011 South Congress Avenue and Turnbridge's Andrew Joblon (Music Lane ATX, LinkedIn)
Exclusive: Turnbridge Equities closes $500M Texas recap deal
Exclusive: Turnbridge Equities closes $500M Texas recap deal
arrow_forward_ios

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

Loading...