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Docusign Envelope ID:056FE2E5-FAD3-473E-9E3E-E287COF06262 <br /> office cap rates has been provided. The County thinks it would be helpful to have a <br /> real historic perspective when considering office and retail capitalization rates. <br /> • In downtown,true smaller to midsize retail suites almost never get over 7%and the 10 <br /> year average is 6%. The most recent capitalization comparable is 5.35%. <br /> • Office rates in Chapel Hill/Carrboro over the past decade have averaged around 7% <br /> with 2023 and 2024 rates ranging from 6.5%to less than 8%with the majority under <br /> 7%. The assessor's sheet uses a capitalization rate of 6.5%. In fee simple,most market <br /> participants would lease this property on a triple net basis(expenses passed on to <br /> tenant), so the income approach for this property is modeled as such.No change in <br /> value is recommended. <br /> • Photograph of Subject <br /> • GIS Map of Subject <br /> • Current Property Record Card of Subject <br /> • Comparable Sales and Income Approach <br /> • Survey of Chapel Hill-Carrboro Downtown Capitalization Rates <br /> • Survey of Chapel Hill-Carrboro Office Capitalization Rates <br /> Motion of the Board Value Changed as Follows: 1 $2,000,000 <br /> Made the motion Leon Meyers <br /> Seconded the motion Saru Salvi <br /> Voted For All BOER Members <br /> Voted Against ... <br /> Property Identification: <br /> Property Owner Riddle Properties LLC Appellant(if different) Joseph Riddle <br /> Property Address 147 E. Franklin Street, Parcel ID or Abstract 9788378534 <br /> Cha el Hill <br /> Statement of Appeal: Request a reduction in value based on an income approach. <br /> Current Assessed Value $992,900 County Opinion $992,900 <br /> Time of Hearin 2:43 PM Appellant Opinion $812,500 <br /> County Representative Roger Gunn Board Decision $992,900 <br /> Evidence submitted by the appellant: <br /> • The subject is currently assessed at$992,900 ($267.34/square foot). The appellant is <br /> requesting a lower valuation of$812,500($218.77/square foot)based on the income <br /> approach given the property's net operating income over the last four years at an 8% <br /> capitalization rate. The appellant also states in his appeal, "Covid period killed <br /> restaurants and retail in Chapel Hill,haven't recovered yet.Also, Streets of <br /> Southpointe,Meadowmont„ and others are killing downtown. Students get most of <br /> their food on campus.University competing with downtown. We have struggled to <br /> collect rent. Your tax rate(highest in NC)is hurting business." <br /> Evidence submitted by the county representative: <br />