Income from the sale of five residential luxury condominiums is $37,787,000.  After construction and miscellaneous expense, $17,710,000 remains as profit from a project that spans 23 months.

Expressing the project profitability as a percentage of costs, $17,710,000 / 20,077,000 is 88% over 23 months, or 46% annualized.  (CSI’s analysis shows a profit of only $2,894,000 after an imaginary expense (Acquisition Cost) of $14,816,000.  See comments on previous page.)

The Developer’s actual financial return is based on his equity, perhaps 20% of the total project cost, borrowing and repaying the remainder from the proceeds.  The Developer’s return is $17,710,000/{(20%)  x $20,077,000} or 441%, 220% annualized.

Some claim that this building is the standard by which the ‘reasonable return’ doctrine must be judged.  It is a valid use of the property, it is As-of-Right, and it is very profitable.  It may be ignored by the BSA, however, because it does not provide the Congregation with their stated goal of replacing their existing Annex, expanding a ‘little synagogue’, adding classroom rental space, and providing more space for unknown uses.