2025_12_02 BOER Minutes - Laserfiche WebLink

Browse Search

Docusign Envelope ID: B280D705-EADF-4415-899E-F125316E835B Meeting adjourned 3:45PM Richal Vanhook Property Identification: Property Owner KRE Hip Loft Chapel Hill Appellant(if different) Owner LLC Property Address I 1001 S. Hamilton Road Parcel ID or Abstract 9798345972.001 Statement of Appeal: Request reduction in value based on analysis of 2024's actual income capitalized at 10.65%suggesting a lower valuation. Current Assessed Value $11,355,400 ounty Opinion $11,355,400 Time of Hearin 1:16 PM Appellant Opinion $8,200,000 County Representative Roger Gunn Board Decision $11,355,400 No change in value Evidence submitted by the appellant: • An analysis of 2024's actual income capitalized at 10.65% suggests a lower valuation of $8,200,000. Evidence submitted by the county representative: • The tax appeal is not supported for several reasons. 1. Please note that the appellant has only provided only one year of income and expenses, which weakens the appeal. No trending can be seen when there is only one year of Profits &Losses. There are some line-item expenses that could be questioned, and it would be easier to analyze them with more information rather than snapshot data. 2. The appellant included personal property taxes in their pro-forma expenses. This is inappropriate. The capitalization rate is loaded to account for taxes and thus,taxes should be removed. If removed Net Operating Income would be higher. This historical Net Operating Income without property taxes removed is shown in the assessor's sheet. There is another inappropriate deduction for personal property on page 5,where the income attributed to personal property is removed prior to a lump sum adjustment deduction for personal property. Only one deduction can be made,not repeated ones for the same item. 3. It is well worth noting that the property sold in 2021 for$15,169,000($117,000 per room) and the agent is asking for an assessment of only$9,275,074 prior to deduction of personal property, which is $71,000 per room. There are multiple sources that discuss how the hotel market has rebounded since Covid including this one: "Value appreciation: According to HVS, an investor acquiring a hotel in 2021 could expect a 28%increase in value by 2025,based on current market conditions." The Counties Assessed Value is $11,355,400 or$87,000 per room is low by this comparison against the previous price,but a more reasonable number than the one suggested by the agent. 4. There are no sales analyzed by the rep,but the property does not look at all like a low value property. • Based on sales of comparable hotels in the Triangle,the subject would have an indication of value of$16,036,268. After deduction of 2025 Orange County business personal value of $858,559,the indication of value for the real estate would be $15,177,709, well above the