June 06, 2014
Lower Manhattan’s iconic Woolworth Building is poised to break a price record: Developer Alchemy Properties is listing the penthouse apartment, a mammoth nine-story unit, at $110 million, according to Bloomberg Businessweek. The previous record-holder in that general area was the penthouse at the Walker Tower in Chelsea, which sold for $50.9 million in January.
Because the price for the Woolworth penthouse is only on the offering plan as of now, it’s difficult to predict whether it will actually sell for that or what the taxes might be on such an expensive condominium unit. Eric Weiss, a tax attorney and partner at the law firm of Tuchman, Korngold, Weiss, Liebman & Gelles, says even making an educated guess at the taxes is difficult because according to New York State tax law, the amount is based on not the apartment's market price but on its theoretical, "comparable" rental value. “The problem is there really isn't a rental market for that [kind of unit],” he says. Since the annual property-tax bill on the Walker Tower penthouse is nearly $49,000, he notes, it’s easy to imagine the Woolworth Building taxes breaking at least six figures.
Co-op and condo board business broken down into bite-sized bits - 2 stories each week. Read now on all digital devices.
A free digital resource for co-op/condo board directors. Published twice a month. Read now on all digital devices.