Buyer of $28M unit at 520 Park Ave races to save nearly $1M on taxes

The sale of the sponsor unit closed about two weeks before New York's new progressive taxes go into effect
By Erin Hudson | June 25, 2019 07:00AM

520 Park Avenue and William Zeckendorf (Credit: Google Maps and Getty Images)

520 Park Avenue and William Zeckendorf (Credit: Google Maps and Getty Images)

An anonymous buyer has closed on a full-floor pad at Zeckendorf Development’s 520 Park Avenue for just over $28 million, according to public records. And he or she wasted no time in getting the deal over the finish line.

The contract for Unit 33 was signed on April 12, which means the four-bedroom condo sale fell within a narrow three-month window where the buyer and seller could avoid the new taxes if they closed before July 1. The rush to avoid the new taxes is causing a last-minute crunch for many lawyers and brokers.

The sale closed on June 18 just ahead of New York’s new mansion and transfer taxes going into effect on July 1. If the buyer had waited another two weeks, the new tax bill would have been $1.67 million, compared to around $791,000, according to The Real Deal‘s calculations.

The buyer of Unit 33 is listed as the entity “520Park33 LLC.” Spanning roughly 4,600 square feet, the anonymous buyer paid about $6,000 a square foot for the apartment.

Zeckendorf Marketing handled the sale on behalf of the developer. Zeckendorf did not respond to a request for comment, nor did real estate attorney Jason Polevoy of Patterson Belknap, the authorized signatory of the buyer’s LLC.

Closings at the 64-story luxury condo tower began last September and have included some of the priciest sales in the city, despite a tough market. Though most, like unit #33, were purchased through anonymous LLCs, billionaire investment banker Ken Moelis and vacuum cleaner mogul and British billionaire James Dyson are among the buyers that are publicly known.