Orange County NC Website
Docusign Envelope ID: B280D705-EADF-4415-899E-F125316E835B <br /> Evidence submitted by the county representative: <br /> • 2024 NOI is$1,043,847 after taxes and the agent uses a loaded cap rate of 7.4153%to <br /> estimate a property value of$17,672,400. That is below the 2021 sale at$18,715,000 with a <br /> 5.73%cap rate. In general, apartments rose in value until mid-2022 and then fell due to rising <br /> interest rates only to rise in value again due to rising rents and some relief to rates by the <br /> date of January 1, 2025. Overall,the previous sale is indicative of the general value range for <br /> this property. <br /> • The agent used a 5.75% capitalization rate, which is lower than the cap rate used to establish <br /> the current value and is reasonable for a property that is in an "improvement cycle". The <br /> County's analysis of the property's financial data is below: <br /> • 2024 Gross Income $2,395,000 Less Vacancy ($119,750) 5% Concessions ($35,925) 2% Bad <br /> Debt($23,950) 1% Loss to Lease ($71,850) 3% Other Income $167,650 7%$2,311,175 <br /> Expenses ($855,135) 37% Reserves ($69,335) 3.0%Total Expenses ($924,470) Net Operating <br /> Income $1,386,705 Capitalization Rate 6.25%Tax Rate 1.67%Total OAR 7.92% Indicated RE <br /> FMV$17,519,298 Agent's Value $17,672,400 <br /> • Based on this County's analysis and a reasonable request by the appellant, the County <br /> recommends applying an E04 economic market adjustment to the property which would <br /> reduce its value from $18,363,000 to$17,628,500. <br /> Motion of the Board Accept County's Proposed Value: $17,628,500 <br /> Made the motion Richal Vanhook <br /> Seconded the motion Shannon Julian <br /> Voted For All BOER Members <br /> Voted Against ... <br /> Property Identification: <br /> Property Owner Environs at East 54 LLC Appellant(if different) Morgan Fowler, <br /> Ryan LLC <br /> Property Address 5008 Environ Way(58 Parcel ID or Abstract 9798345972.134-191 <br /> individual condominium <br /> units) <br /> Statement of Appeal: 58 individual units. Request reduction in value based on income as of 9/25. <br /> Current Assessed Value Total: County Opinion $13,812,700 -No change in <br /> $13,812,700 value for each individual unit <br /> Time of Hearin 3:11 PM Appellant Opinion Total: $10,575,000 <br /> County Representative Kelly Wells Board Decision $13,812,700 -No change in <br /> value for each individual unit <br /> Evidence submitted by the appellant: <br /> • Opinion of value based on income as of 9/25. <br /> Evidence submitted by the county representative: <br /> • The County argues that its assessed value of$13,812,700 is well supported by market data and <br /> proper valuation methods,noting that the appellant relied on flawed assumptions—including <br />