Watchtower Portfolio Analysis

Watchtower Portfolio Analysis
January 2016

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

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%

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
50 Orange Street
173 Front Street
177 Front Street
89 Hicks Street
67 Livingston Street
67 Remsen Street
21 Clark Street
97 Columbia Heights
48/58 Columbia Heights
67 Furman Street
76 Willow Street
80 Willow Street
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

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
6,600,000
2012
Site 19
234
29
3,000,000
Site 20
234
28
Site 21
226
50 Orange Street
Site 24
234
24
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

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