Same market, different math: Condo taxes on Long Island
OWNERS, DEVELOPERS & MANAGERS Lark opens The Penny Lane hotel; design by KKAD Design & Arch. and Laura Patricia Studio
In municipalities that employ a multi-class property tax system, certain condominiums are exempt from these restrictions. New York City and Nassau County employ a four-class tax system that cate- gorizes condominiums based on building height. Condominiums of four stories or more are classified as Class 2 and are valued using the income approach. Condominiums of three stories or fewer are classi- fied as Class 1 and are valued based on comparable sales, in the same manner as single-family homes. Similarly, the town of Islip uses a two-class system that distin- guishes between homestead and non-homestead properties. There, the age of the development deter- mines classification. Residential condominiums built after 1984 are considered homestead properties and are taxed in the same manner as single-family homes. Older condominiums are effectively grandfathered into the non-home- stead classification and remain subject to restricted assessment. All other Suffolk County towns use restricted assessments. For condominium owners seek- ing to challenge their assessments, these classifications affect their options. In either scenario, the Con- dominiumActallowsacondomini- um board to initiate a unified tax appeal on behalf of all participating unit owners in the community. Owners must affirmatively opt in to the appeal through a written authorization, but unanimous participation is not required. By signing the authorization, an owner grants the board full authority to prosecute and resolve the appeal on their behalf. One of the board’s most import- ant responsibilities in this process is selecting the right attorney. Tax certiorari is a specialized area of practice with some of the strictest deadlines in the law. It often requires retaining counsel experienced in tax assessment
litigation, separate from the attor- ney who handles the condomini- um’s general governance matters. Boards should evaluate potential attorneys carefully, considering fee structures, responsibility for upfront costs such as filing and appraisal fees, communication practices, and availability to attend meetings or respond to questions from residents. Perhaps most importantly, the Board needs a clear under- standing of who is responsible for distributing any tax refunds resulting from the appeal. This is an administratively complex process, involving issuing checks to every participating unit owner, determining closing dates for units sold while the appeals are pending, and locating former owners who no longer reside in the condominium. Ideally, the responsibility for calcu- lating and distributing tax refunds or invoices should rest with the attorney, not the Board. For condominiums that are not subject to restricted assessments, individual unit owners may file a Small Claims Assessment Review (SCAR) petition, as single-family homeowners do. Once a SCAR petition is filed, it supersedes any board-initiated appeal for that spe- cific unit. In contrast, condomini - ums with restricted assessments are not eligible for SCAR, making a board-led proceeding the only available path to relief. Ultimately, the board is the final decision-maker in the appeal. It may approve or reject settlements or direct the case to proceed to trial. These decisions should be made in consultation with legal counsel, and any resolution should treat all participating unit owners fairly and equitably.
Christopher Byrnes Schroder & Strom, LLP
Homeowners on Long Island are very familiar with property taxes, which are among the highest in the nation. For condominium owners, however, those taxes are often calculated differently than for single-family homes, depending on factors such as location, number of stories, and the age of the complex. These differences can create a meaningful financial advantage. The rules are not always intuitive, and they can vary based on where the property is located. Under New York State law, the process for challenging a tax as- sessment is known as tax certiorari, a particularly active legal practice area in the region. If you live in a condominium, the appeal process can be more nuanced than it is for single-family homes. First, under Section 339(y) of the Real Property Law (a subsec- tion of the “Condominium Act”), each condominium unit must be assessed separately for tax pur- poses. In many areas, however, condominiums are subject to “restricted assessments,” mean- ing assessors are not permitted to base those assessments on market sales. Instead, they must apply a legal framework that treats the entire condominium as if it were a rental apartment complex, then allocate that total value among the individual units. This appraisal methodology, known as the income approach to value, almost always results in lower tax burdens compared to similarly priced single-family homes, providing a significant benefit to condominium owners. Whether a condominium receives this favorable treatment depends on how the municipality classifies the property. MANHATTAN, NY RFR has added two tenants to the roster and two existing tenants will double their footprints at the 475 Fifth Ave. office building located at Fifth Ave. and 41 st St. in the Bryant Park submarket. Harkness Capital Partners, a private equity investment firm focused on lower middle market businesses, has signed on to a seven-year, 8,013 s/f full-floor, pre-built suite at the 24-story tower. Jellycat, known for its popular branded toys, gifts and accessories,
SOUTHAMPTON, NY Lark, the premi- um development and management company encompassing multiple boutique hospitality brands, has opened its first Hamptons proper - ty, The Penny Lane, in Hampton Bays. Overlooking a canal off Shin- necock Bay, two miles from the Atlantic Ocean, The Penny Lane reflects the water that surrounds it, with coastal design and modern amenities. In addition to its 18 rooms and suites, a private outdoor pool, and waterfront lawn, The Penny Lane also has dock space for guest use. “The Penny Lane marks our first foothold in the Hamptons, and it’s an exciting debut,” said Lark CEO, Peter Twachtman. “Hampton Bays is a hidden gem in the Hamptons, perfect for MANHATTAN, NY The Durst Organi- zation and The Port Authority of New York and New Jersey have signed Energy Capital Partners (ECP), an energy transition in- frastructure focused investor, an expansion lease at One World Trade Center to the entire 59 th floor. With ECP’s existing space on the 58 th floor, the company now occupies 70,425 s/f at the building. This is ECP’s third expansion at One World Trade Center since 2017, when they first leased 6,173 s/f. The Durst Organization was represented in house by Eric Engelhardt, Karen Rose, and
travelers who seek authenticity, with upscale accommodations and experiences. We love the fact that the property honors its roots as a classicAmericanmotorinn,while intentionally upgrading for sophis- ticated travelers. We are excited to introduce guests to another side of the Hamptons – one we have fallen head over heels for.” Designed by the award-win- ning team at KKAD Design & Architecture Studio and Laura Partica Studio, The Penny Lane embraces the same relaxed charm of its origins as a classic Hamptons motor inn. Custom wallpaper be- hind each bed pays homage to the location with bespoke Hampton Bays images. A palette of white and cream is accented by olive and sage green and wooden furniture. FOR FULL STORY VISIT NYREJ.COM Sayo Kamara, and by Newmark’s David Falk, Peter Shimkin, Hal Stein, Nathan Kropp, and Paige Raisides. ECP was represented by Eric Zemachson and Corey Borg from Newmark. “One World Trade Center is one of the most dynamic build- ings in New York City with direct access to transit and all the cultural and retail attractions lower Manhattan has to offer. We are proud that ECP and many other companies have chosen to stay and grow in the building,” said Jody Durst, president of The Durst Organization. FOR FULL STORY VISIT NYREJ.COM
Energy Capital Partners grows to 70,425 s/f at Durst Organization’s One World Trade Center
Christopher Byrnes, Esq., is a partner at Schroder & Strom, LLP, Garden City, NY
RFR inks new and expanded leases comprising of 26,581 s/f at 475 Fifth Ave. office building
top floor at 475 Fifth.Additionally, financial services holding company UnitedAtlantic Capital doubled its footprint, extended its term by nine years, and will move into a 10,107 s/f space. RFR was represented in house by AJ Camhi, Paul Milunec and Rob Weller on the transactions. “These pre-built spaces are ideal for tenants seeking workspaces with distinctive architectural ele- ments combined with permanently protected views of Bryant Park and Fifth Ave.,” said Camhi of RFR.
Optima Salon Suites signs retail lease at TF Cornerstone’s Chelsea Centro
will occupy the ground-floor space in one of the city’s most dynamic neighborhoods. TFC was represented in the transaction by Danyiel Cohen, Thomas Galo, and Steven Baker of RTL. Optima Salon Suites was also represented by RTL.
MANHATTAN, NY TF Cornerstone (TFC) has signed Optima Salon Suites to a 2,388 s/f retail lease at Chelsea Centro, TFC’s residential development located at 278 7 th Ave. The beauty concept, which leases fully customizable studio spaces to independent beauty professionals,
committed to a five-year, 4,319 s/f pre-built space while software developer Eoch Group will take the full-floor, 4,142 s/f suite on the
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20 May 12, 2026
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