Case Study: Kips Bay
Determining the value of a multifaceted Manhattan high-rise.
The Challenge
The Kips Bay Towers are two residential high-rises in the Kips Bay section of Manhattan. SVS was retained by the City of New York to value the property–a condominium–under the assumption that it was a rent-regulated apartment building, during the litigation of a tax certiorari petition of a period of 7 years. The value difference between petitioner and respondent appraisals for any given year ranged from $25 to $33 million.
The Process
To determine a methodology for calculating market rents and capitalization rates, SVS conducted comprehensive market research and analysis and developed a thorough understanding of all applicable laws. A comprehensive, readable report explained our findings and our approach; we also testified in court to present our valuation. Finally, we were able to document numerous flaws with the opposing party’s methodology–an appraisal that was conducted by a senior executive from an international real estate firm.
The Result
The Court decided in our client’s favor, having found both our methodologies and our conclusions appropriate for this and many similar cases
