Axe the Pied-à-terre

New York and other high income tax states are scampering to find new sources of revenue on the heels of the federal tax reform act that eliminated tax deductions for state and local income taxes. The politicians recognize that they cannot pile on more income tax levies, and at the same time, they are incapable of reigning-in spending or reducing expenses. So last week New York politicians announced that they are proposing to institute a Pied-à-terre tax on co-ops and condominiums with market values of $25 million or more, arguing that they are owned by the super-rich who can afford it.

Calculations indicate that the tax levy would cut the value of these properties by almost 50%. Not surprisingly, the real estate industry is furiously lobbying against the plan, rightfully arguing that the tax would destroy the upper-end of the real estate market in Manhattan where the development of luxury residential properties has fueled a construction boom. For example, from my office at the MetLife building I can count construction cranes for 5 luxury high-rise buildings.

Of course the politicians are not capable of calculating the cost of the loss of revenues associated with the construction industry, or the domino effect of the departure of the affluent who fuel the critical top end of the economy. Listening to the rhetoric among the emerging presidential candidates aimed at taxing the wealthy, and with nonsense such as the Pied-à-terre tax, we are on a slippery slope that, in the end, will undermine the robust economic growth that we currently enjoy.

Job Listings

SPONSORED JOB HOME CITY DEVELOPMENT, INC. Director of Real Estate Development (SPRINGFIELD, MA) Duties include evaluating potential projects for agreement with HCDI’s mission and overall viability; preparing business cases to support the Board of Directors; and developing policy recommendations and implementing board decisions related to real estate development and asset management.

ROSS STORES Director, Finance – Property Development (DUBLIN, CA) Director will be responsible for reviewing, reporting, analyzing and coordinating all aspects of the Property Development occupancy budgets for all Ross Dress for Less and dd’s Discounts stores. Director will assist the VP Property Management with fiscal year budgeting; long range financial planning and analysis; and forecasting change and trends.  

BROADVIEW REAL ESTATE PARTNERS Investments Associate (NEW YORK, NY) Duties include: underwriting and modeling transactions based on understanding of industry dynamics in real estate asset classes and valuation methodologies within each sector; due diligence of transactions; and preparing presentations and analysis for review by the investment committee.  

ULLICO INC. Associate – Asset Management (CHICAGO, IL) Position will support the Ullico Infrastructure Fund’s asset management and portfolio management teams in monitoring and governing portfolio investments, managing the portfolio’s financial and key performance indicator tracking system, and maintaining and building relationships with investment partners, operators and third party asset managers.  

MAPLETREE INVESTMENTS PTE LTD Analyst, Asset Management, Corporate Housing and Multi-Family (LONG BEACH, CA) Position will assist asset management team in creating strategies and plans for corporate housing and multi-family assets to optimize net operating income and maximize value.  

EYA Project Manager/Owner’s Representative (Multi-Family Construction) (ALEXANDRIA, VA) Responsibilities include contract administration, consultant management, construction coordination, stakeholder reporting, budget and schedule control, due diligence and project documentation.  

LOTUS CAPITAL PARTNERS Associate (NEW YORK, NY) Associate will focus on executing structured debt placement mandates. The firm is a flat organization and the Associate will support the execution of debt, mezzanine, and equity financing mandates on large and complex capitalizations in the United States, Europe, and the Caribbean.  

THOR EQUITIES, LLC Asset Manager (NEW YORK, NY) Position will be responsible for creating the long-run analyses of assets, advising the CEO/EVP of Asset Management directly and overseeing all strategic decision-making in regard to the asset.  

MILESTONE PARTNERS Paid Private Equity Internship (LOS ANGELES / ORANGE COUNTY, CA) Company is seeking an acquisitions intern to join its growing Co-GP investment platform. Duties include: underwriting, modeling, due diligence, and supporting the execution of investment opportunities; preparing term sheets and offering initial structuring feedback and commentary; and evaluating feedback on PSA’s, Loan Docs, and other 3rd party legal agreements as able.  

QUADREAL Development Coordinator (VANCOUVER, BC, CANADA) Development Coordinator will be responsible for supporting day-to-day development tasks and driving the development process; assisting Development lead with project tendering and Requests for Proposals; and preparing monthly project status reports and ensure they are updated in a timely manner.