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Watchtower Portfolio Analysis

January 2016

Watchtower Portfolio Analysis


Summary

This analysis includes 37 properties that make up the Watchtower Portfolio

Calculations were made covering the following sale profits and forgone tax revenue:
1. Forgone Property Tax Revenue: $138.6mm
2. Forgone Real Property Transfer Tax Revenue: $21.1mm
3. Forgone Capital Gains Tax Revenue: $209.1mm

TOTAL forgone tax revenue: $368.7mm

Watchtower Portfolio Analysis


Methodology
1.

Forgone Property Tax Revenue ($138.6mm)

This analysis includes 37 identified sites that make up the Watchtower portfolio
DOF inputs were used and included all available data (as far back as 2006 making this
estimate very conservative)
Formula for Forgone Tax Revenue = Transitional Exemption Value*Annual Tax Rate
*In a few instances when the transitional AV was unavailable, assessed value (AV) was used to
calculate forgone revenue

2.

Forgone Real Property Transfer Tax Revenue ($21.1mm)

3.

This analysis includes a summation of forgone Real Property Transfer taxes from the 14
sales (21 properties) since 2004
The current NY transfer tax rate of 2.625% was applied (this rate used for sale if value is
more than $500,000)
Formula for Forgone Real Property Transfer Tax Revenue = Sale Amount*Transfer Tax Rate

Estimated capital gains via sale of property ($201.1mm)

Profit captures only 4 of 14 sales since 2004 as Watchtower purchase price (many in the
1980s) was difficult to confirm
Formula for Forgone Capital Gains Tax Revenue = Difference of Purchase & Sale
Amount*Capital Gains Tax Rate of 31.5%

Watchtower Portfolio Analysis


Forgone Property Tax Revenue

Sold or No Longer Tax-Exempt

Forgone Property Tax Revenue of 37 Watchtower sites is $138.6mm


Watchtower Potfolio: Summary of Forgone Property Tax Revenue (2006 - 2015 or sale date)
BBL

Block

Lot

Address

Tax Class

Time Period of Capttured


Forgone Tax Revenue

Site 1
Site 2
Site 3
Site 4
Site 5
Site 6
Site 7
Site 8/9
Site 10
Site 11
Site 12
Site 13
Site 14
Site 15
Site 16
Site 17
Site 18
Site 19
Site 20
Site 21
Site 22
Site 23
Site 24
Site 25
Site 26
Site 27
Site 28
Site 29
Site 30
Site 31
Site 32
Site 33
Site 34
Site 35
Site 36
Site 37

76
77
63
`
87
87
45
51
54
41
54
208
204
248
225
235
234
234
234
226
41
41
234
226
265
248
230
219
224
208
208
208
224
229
208
229

1
1
1
25
5
9
25
25
4
13
1
2
1
15
13
37
17
29
28
8
44
42
24
4
5
14
1
1
5
106
12
1
20
21
101
10

117 Adams Street


77 Sands Street
55 Prospect Street
81 Prospect Street
175 Pearl Street
90 Sands Street
30 Front Street
68 Adams Street/51 York Street
61 Adams Street
200 Water Street
87 Jay Street
51 Furman Street
25 Columbia Heights
98 Montague Street
34 Orange Street
105 Willow Street
183 Columbia Heights
161 Columbia Heights
165 Columbia Heights
50 Orange Street
173 Front Street
177 Front Street
169 Columbia Heights
89 Hicks Street
67 Livingston Street
67 Remsen Street
21 Clark Street
97 Columbia Heights
107 Columbia Heights
124 Columbia Heights
48/58 Columbia Heights
67 Furman Street
76 Willow Street
80 Willow Street
128 Columbia Heights
119 Columbia Heights

4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
2B
2
2B
1
2
4
4
2
2
2
2B
4
2
4
4
4
4
1
2
4
4

2006 - 2013
2006 - 2013
2006 - 2013
2006 - 2013
2006 - 2013
2006 - 2015
2006 - 2015
2006 - 2015
2006 - 2015
2006 - 2012
2006 - 2014
2006 - 2015
2006 - 2015
2006 - 2012
2006 - 2012
2006 - 2015
2006 - 2013
2006 - 2012
2006 - 2013
2006 - 2012
2006 - 2012
2006 - 2012
2006 - 2007
2006 - 2013
2006
2006 - 2012
2006 - 2015
2006 - 2015
2006 - 2015
2006 - 2015
2006 - 2015
2006 - 2015
2006 - 2013
2006 - 2015
2006 - 2015
2006 - 2015

Forgone Annual Tax Revenue


(Transitional EV*Annual Tax Rate),
Nominal $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

2,323,184
2,744,915
2,949,885
1,082,115
2,718,899
25,073,095
1,003,638
501,939
2,930,407
444,238
2,508,251
18,657,736
18,514,809
11,476,937
107,765
164,081
581,672
161,868
130,109
203,275
70,707
84,774
812,255
1,076,609
186,312
237,700
16,614,348
6,499,072
7,629,155
2,226,523
84,827
86,939
86,236
256,106
6,847,425
1,476,589

TOTAL $

138,554,395

Watchtower Portfolio Analysis


Forgone Real Property Transfer Tax Revenue and Capital Gains
Forgone Real Property Transfer Tax Revenue: $21.1mm (14 sale transactions)
Very conservative estimate of capital gains via sale of property: $209.1mm (Only
five sales available as Watchtower purchase data was unknown)
Watchtower Portfolio: Summary of Capital Gains & Forgone Transfer Tax Revenue from Sold Properties
Site

Block Lot

Address/Name

Sites 1-6 multiple

Multiple/Kushner Portfolio

Sites
11,22,23

multiple

200 Water Street; 173 Front


Street; 177 Front Street

Site 15

248

15

98 Montague Street

Site 16

225

13

Site 17

235

Site 18

Purchase Amount

Sale Amount Sale Year

500,010 $ 375,000,000

Real Property TransferTax


Rate (Value over $500k)

Capital
Difference Between Sale
Gains Tax
and Purchase Amount
Rate

2015

0.02625 $

374,499,990

30,600,000

2013

0.02625

4,774,545 $

81,000,000

2012

0.02625 $

34 Orange Street

2,825,000

2012

0.02625

NA

37

105 Willow Street

3,300,000

2012

0.02625

234

17

183 Columbia Heights

6,600,000

2012

Site 19

234

29

161 Columbia Heights

3,000,000

Site 20

234

28

165 Columbia Heights

Site 21

226

50 Orange Street

Site 24

234

24

169 Columbia Heights

Site 25

226

89 Hicks Street

Site 26

265

67 Livgingston Street

Site 27

248

14

67 Remsen Street

Site 28

NA

360 Furman Street

TOTALS

0.315 $ 117,967,496.85 $

9,843,750
803,250

24,011,018.33 $

2,126,250

0.315

NA $

74,156

NA

0.315

NA $

86,625

0.02625

NA

0.315

NA $

173,250

2012

0.02625

NA

0.315

NA $

78,750

4,100,000

2012

0.02625

NA

0.315

NA $

107,625

7,100,000

2011

0.02625

NA

0.315

NA $

186,375

50,000,000

2007

0.02625

NA

0.315

NA $

1,312,500

3,275,000 $

14,000,000

2006

0.02625 $

3,378,375.00 $

367,500

18,600,000

2006

0.02625

1,100,000 $

2,250,000

2012

0.02625 $

1,150,000

0.315 $

362,250.00 $

59,063

3,900,000 $ 205,000,000

2004

0.02625 $

201,100,000

0.315 $

63,346,500.00 $

5,381,250

663,700,445

209,065,640 $

21,088,594

76,225,455

10,725,000
NA

0.315

Forgone Transfer Tax


Payment for Real
Property Transfer

NA $

NA

Estimated
Capital Gain
from Sales

0.315 $

0.315 $
0.315

NA

488250

Note: For Kushner Portfolio; deed confirmed purchase price of $10 for 90 Sands St.; For remaining five Kushner buildings purchase price of $100,000 per site was assumed