Four major retail landlords are suing the city to lower their property taxes, which they say are unfairly based on their pre-pandemic rents.
According to the suit first reported by the Real Deal, owners of prime retail condos on Fifth Avenue and East 59th Street claim their property taxes are grossly overassessed because theyre based on income and expenses in 2022, which reflected leases signed prior to the pandemic.
Stores such as Harry Winston, Versace and Ikea subsequently moved out or negotiated smaller new leases.
Harry Winston, for example, relinquished three upper floors at 697 Fifth Ave., reducing the rent to landlord Vornado from $22 million to $6 million.
At 205 E. 59th St., landlord Zucker Organization lost Ikeas $2 million in annual rent after its lease expired in November.
Prominent real estate dealmakers agreed with the landlords predicament and said the city was unfairly attempting to squeeze more money from them.
The city historically does not look at these assessments the way an investor does. Theyre not basing it on current market rents and thats an issue, Daniel Kaplan, a senior vice-president at CBREs Investment Properties Group, told The Post.
The problem is, youre projecting rent revenue based on current rents but the tax is based on old, higher rents.
The over-assessments not only put retail condo owners in a pickle, they also impact a sale price if theyre trying to sell, he added.
One property named in the lawsuit, the former Ikea space at 205 E. 59th St., is up for sale rather than for lease.
The decline in rents should in turn result in lower taxes due to lower imputed or realized income for these properties, said a retail broker at a different firm, who didnt want to be named:
Cushman & Wakefield leasing legend Joanne Podell noted, Taxes are ultimately a burden for landlords and occupiers — because retailers look at the present per-square-foot rent and future costs which include taxes over a base year.
The retail scene was staggered after rents peaked in 2015-16 and crashed due to Covid 19 — on top of the blow from online shopping.
The Post reported this week that Kim Kardashians shapewear brand Skims leased 20,000 square feet at Oxford Properties and Crown Acquisitions 647 Fifth Ave. for 75% less than the $770 per square foot that previous tenant Versace paid.
The lawsuit says the Skims deal will bring the landlords a mere $5.5 million a year, although the city based its assessment on estimated gross income of $18 million.
Fitch recently downgraded the mortgage on 647 Fifth Ave. due to reduced rental revenue expectations.
A Department of Finance rep said the suit was under review.
A senior Hamas official has confirmed the militant group is in direct talks with the United States over peace in Gaza, adding that it believes Donald Trump can help broker a deal.
They are calling for “a prisoner exchange, total withdrawal of Israeli forces, allowing all the aid to get into Gaza and rebuilding of [the] Gaza Strip without forceful immigration,” he said.
Image: Basem Naim
Dr Naim also addressed whether Hamas – which has been in power since it won the 2006 Palestinian election – could step down from government in order to secure peace.
“We have also told the Americans, we are ready to, again, to hand over the government immediately if we reach an end of this war,” he said.
Image: Trump, seen here at a US airbase in Qatar, is on the final day of a Middle East tour
Dr Naim added Hamas has “accepted” an Egyptian peace proposal which “is talking about forming a Palestinian, independent, politically unaffiliated body to run the Gaza Strip”.
“Before that, as long as we are still occupied people, we have all the right to continue defending our people and resisting the occupation with all means including under resistance,” he said.
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Turning his attention directly to the US president, the senior Hamas official said he thinks Mr Trump “has the capability and the will to reach this peaceful situation”.
He said: “Gaza and Gazans are deserving, like all other people everywhere, to live in peace and dignity.
“And I think President Trump can do it if he exercises enough pressure on the Israelis to end this war immediately. And we are ready to cooperate with him to achieve this goal of a more peaceful region.”
Responding to the interview with Hamas, White House National Security Council spokesman James Hewitt told Sky News that Hamas “has not demonstrated they are serious about peace” and that Mr Trump “has been clear Hamas must lay down their arms”.
“Hamas continues to wrongfully hold hostages, including American bodies, in the dungeons of Gaza who could easily be freed and have shown no changes in behaviour to indicate they will cease to attack civilians,” he added.
Hamas has set out ceasefire conditions – but Trump remains as stern as ever
Donald Trump’s Middle East tour has been full of surprises.
But the revelation that officials in his administration are speaking directly to Hamas is one of the most significant.
As the US president addressed troops at the Al Udeid airbase in Qatar – the largest in the region – I sat down with a senior Hamas official who confirmed direct talks were ongoing.
In an exclusive interview, Dr Bassem Naim praised Trump and talked up chances of finding a peaceful resolution.
It’s a remarkable statement from a senior figure within the group, which is considered by the US and UK to be a terrorist organisation.
Much has been made of Trump’s ‘transactional’ approach here in the region.
His commitment to the ‘art of the deal’ can often achieve unexpected results but also anger his allies – which is almost certainly the case with Israel’s embattled Prime Minister Benjamin Netanyahu.
When I asked Dr Naim about the demands from Israel and the United States for Hamas to disarm and accept that it can no longer be the governing force in Gaza, he set out conditions that Hamas says would have to be met.
However, President Trump’s public stance on Hamas remains as stern as ever.
The group “needed to be dealt with” he said earlier, adding he has “concepts for Gaza,” and that the US should “take it” and turn it into a “freedom zone”.
Israel’s war in Gaza has now entered its 20th month with more than 53,000 people believed to be dead, according to Gaza’s Hamas-run health ministry.
Some 15,000 of them are children, according to UNICEF.
There are still more than 50 Israeli hostages held by Hamas in the Strip.
It continued: “We expect, based on the understandings reached with the American side, and with the knowledge of the mediators, that humanitarian aid should have entered the Gaza Strip immediately, a call been made for a permanent ceasefire, and that comprehensive negotiations would have been held on all issues to achieve security and stability in the region, a goal we aspire to achieve.
“However, failure to achieve these steps, especially the entry of humanitarian aid to our people, will cast a negative effect over any efforts to complete negotiations on the prisoner exchange process.”
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4:01
Analysis: Israel’s escalation in Gaza
The US president has previously shared plans of his own for Gaza and in February, he posted a bizarre AI video showing the region transformed into a paradise complete with its own Trump tower and exotic beaches.
The States could “own that piece of land” and develop it, he said – but the idea was swiftly condemned as the effective “ethnic cleansing” of Palestinians from Gaza.
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0:43
Moment of Israeli strike on house
Mr Trump is currently on a visit to the Middle East, which has included stops in the United Arab Emirates, Qatar and Saudi Arabia – but not Israel.
There had been hopes his trip could lead to a ceasefire deal, but Israeli Prime Minister Benjamin Netanyahu has pushed ahead with an escalation of force on the Gaza Strip.
The co-founder of Ben & Jerry’s has been arrested after disrupting a Senate hearing with a pro-Gaza protest.
Ben Cohen, Ben of the famous ice cream company Ben & Jerry’s, was one of seven people arrested at a Senate Health, Education, Labor and Pensions Committee hearing on Wednesday, Sky News’ US partner NBC News reported.
Robert F Kennedy Jr was speaking to the committee when the protests started with someone shouting: “RFK kills people with AIDs!”
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“When Bobby lies, children die,” is also heard, as well as: “Anti-vax, anti-science, anti-America” in reference to Mr Kennedy’s vaccine views.
Police quickly flooded into the room and began dragging out protesters.
Moments after, Mr Cohen got to his feet and accused the US government of playing a role in the deaths of children in Gaza.
The ice cream boss can be seen in footage of the incident on his feet, gesturing as he shouted at the US health secretary.
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“You’re killing poor kids in Gaza and paying for it by cutting Medicaid for kids here,” shouted Mr Cohen.
He is one of the last protesters hauled out of the room.
But even as he’s removed, he can still be heard shouting.
“Congress and the senators need to ease the siege. They need to let food into Gaza. They need to let food to starving kids,” he said.
Image: Mr Cohen was dragged out along with a number of other protesters.
Pic: Reuters
The other six protesters were charged with resisting arrest and assault on an officer, NBC News said.
Earlier on Wednesday, Mr Cohen had attended a pro-Palestine event with Democratic Representative Rashida Tlaib.
Afterwards, Mr Cohen tweeted out a video of the incident, saying: “I told Congress they’re killing poor kids in Gaza by buying bombs, and they’re paying for it by kicking poor kids off Medicaid in the US.
Mr Cohen is no stranger to protests or getting arrested.
In July 2023, he was arrested after protesting about the US prosecution of Julian Assange.
‘Poor kids in Gaza’
Israel has killed around 53,000 Palestinians during its war with Hamas, many of them women and children, according to the Hamas-run health ministry.
The Gaza health ministry does not distinguish between civilians and combatants in its count, but said that more than half of the fatalities are women and children.
It is said the real death toll in Gaza is higher because thousands of bodies remain buried under the rubble or in areas that medics cannot access.
Image: Ben Cohen, of Ben & Jerry’s.
File pic: AP
The fighting began after the militant group led an attack across the border in October 2023, killing 1,200 people and taking around 250 hostage.
Since Israel broke a ceasefire on 18 March, almost 3,000 people have been killed, the ministry said.
The Israeli military has claimed, without evidence, to have killed 17,000 militants.
Three climbers have died after they fell hundreds of feet on to jagged rock, while the survival of one man in the group is being called “miraculous”.
Vishnu Irigireddy, 48, Tim Nguyen, 63, Oleksander Martynenko, 36, died while climbing down a steep gully on the 7,800ft Early Winters Spire peaks in Washington state on Sunday.
Their fall was likely caused by a “weathered” piton, which is a metal spike serving as an anchor used to slow the descent down a steep mountainside, tearing from the rock, the Okanogan County Sheriff’s Office said.
The fourth climber, Anton Tselykh, 38, from Seattle, miraculously survived, despite also plummeting 200ft on to jagged rock and tumbling another 200ft before coming to rest in a tangle of ropes and climbing equipment.
Image: Rescuers near where the climbers were found. Pic: Okanogan County Sheriff’s Office/AP)
He suffered internal bleeding and severe head trauma, which caused him to pass out until around 10pm, hours after the estimated time of the fall, police said.
He managed to untangle himself before “crawling and feeling around in nearly pitch darkness” to find his way back to his car, Okanogan County Undersheriff David Yarnell told Sky News’ US partner NBC News.
Mr Tselykh drove west over the mountain range and collided with a guardrail on the way, falling unconscious, before finally reaching a pay phone to call for help.
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His survival “is miraculous to say the least,” Mr Yarnell said.
Mr Tselykh is being treated in a Seattle hospital and is in “satisfactory condition”, according to a hospital spokesperson.
Image: The bodies of the three climbers have been recovered. Pic: Okanogan County Sheriff’s Office/AP
The bodies of the three climbers have since been recovered, locating them via a GPS device in their kit.
Police said the three men had suffered massive leg and cranial traumas.
Authorities believe the group had been ascending the north Early Winters Spire peak when they decided to reverse course due to an approaching storm.
The Early Winters Spires in the Northern Cascades consist of two 7,800ft peaks, which are popular with climbers.
The route the group was taking was of moderate difficulty and sees climbers moving between ice, snow and rock, according to a local guide, who cautioned that conditions can change rapidly depending on the weather.