Case Study: Kips Bay
Determining the value of a multifaceted Manhattan high-rise.
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.
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 Court decided in our client’s favor, having found both our methodologies and our conclusions appropriate for this and many similar cases