2025_11_05 BOER Minutes - Laserfiche WebLink

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Docusign Envelope ID:8B4E4C2D-EF27-44DE-897D-E2195346C10E Property Identification: Property Owner Westdale Poplar Place LP Appellant(if different) Wes Peters,Property Tax Representative Property Address 605 Jones Ferry Road Parcel ID or Abstract 9778336394 Statement of Appeal: Request a reduction in value based on an income approach for this property. Current Assessed Value $27,289,900 ounty Opinion $27,289,900 Time of Hearin 1:01PM Appellant Opinion $26,410,000 County Representative Roger Gunn Board Decision $26,849,950 Evidence submitted by the appellant: • The appellant is requesting a lower valuation because the income approach with deduction of personal property value supports a lower valuation. Evidence submitted by the county representative: • Per the County's commercial property appraisal consultant review,the current valuation of $118,652 per unit(230 units)is below the valuation indicated by recent apartment sales,the income approach, and past sales of apartment complexes in Chapel Hill and Carrboro. • Additional consultant comments are, "This appeal is pretty reasonable,but I believe both the appeal and the County's 2025 assessment to be low. On a historical basis(see attached sales in Carrboro and Chapel Hill over past 10 years), it's hard to find a large apartment sale under $120,000 per unit. Chateau sold earlier this year at roughly$125,000 per unit on a 5.73%cap rate. It would be hard to say that Poplar Place is not superior based on sales before and after the lien date. Just providing some context since the appellant is shooting for$115,000 per unit. I do not believe the owner would have sold for that number. • Poplar Place has been sinking a good bit of money into freshening units in recent years. The property shows very well at this point. Looking backwards they have modeled 9.45%vacancy and high continued expenses at over 40%of effective gross income(IREM has the average at under 30%for the Triangle with taxes being included). The County has also modeled some income. Even without forecasting more gross rent looking forward,using a more reasonable looking forward 7%vacancy rate(considering the improvements made to the property), high expenses at 40%(topped that out) and a similar 5.5%cap rate,the County assessment is nearly supported. The Sales Data brackets the value on the high side. As said above,there are very few$120,000 and under sales in this market. Given how well this property looks and the investment the owners have made, I don't anticipate that the property would price at the dead bottom(or below)the range of sales on a price per unit.No change is recommended. • Location Map of Subject • Current Property Record Card of Subject(26 pages) • Sales and Income Approach Worksheet • Historical Sales of Chapel Hill and Carrboro Apartments Motion of the Board Value Changed as Follows: $26,849,950 Made the motion Barbara Levine