2025_12_02 BOER Minutes - Laserfiche WebLink

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Docusign Envelope ID: B280D705-EADF-4415-899E-F125316E835B an unreallistic 6%cap rate, the use of leased rather than market rents that ignore vacant units, and the exclusion of substantial other income and accurate tenant fee reimbursements—making the appellant's pro forma inconsistent with true market value. Comparable sales also support the assessment, as the subject property's per-unit value is near the low end of the relevant range. Additionally,the current assessment reflects only a 2%increase from the 2016 purchase price despite rising rents,whereas the appellant's proposed value represents an unsupported 8.5%decrease; given the property's relative newness and expected appreciation,the County concludes that the appellant has not met the burden of evidence required to justify a lower valuation. • Individual Unit Information • Image of subjects • GIS Map • Analysis provided by consulting Commercial Appraiser Motion of the Board Accept County's Proposed Value: $13,812,700 -No change in value for each individual unit Made the motion Shannon Julian Seconded the motion Richal Vanhook Voted For All BOER Members Voted Against Property Identification: Property Owner Rainbow Hospitality LLC Appellant(if different) Property Address 202 Cardinal Drive Parcel ID or Abstract 19863892477 Statement of Appeal: Request reduction in value based on consideration of Income Approach, Sales Comparison Approach, and Cost Approach. Current Assessed Value $5,784,800 ounty Opinion 1 $4,700,100 Time of Hearin 3:37 PM Appellant Opinion $2,531,491 County Representative Roger Gunn Board Decision $4,700,100 Evidence submitted by the appellant: We respectfully disagree with the current assessed value for Rainbow Hospitality,LLC(Parcel ID: 9863892477)and request a reassessment to reflect a more accurate market valuation. This property is a Holiday Inn Express,Midscale class hotel in Orange County with 42,250 of square feet. Taxpayer did not note any repairs or deferred maintenance as of January 1, 2025. In our valuation analysis, we considered all three standard approaches to value: • Income Approach: An income and expense statement for 2024 and 2023 was reviewed and provided with our analysis. The property has 83 rooms, and all room were available during the year. For 2024,total income was $2,164,238 and expenses were $1,886,536. The cap rate was calculated using a conservative base rate of 9.5%and an effective tax rate of 1.47%for a total cap rate of 10.97%. Cap rates ranged from 8.56 to 11.21%for similar class hotels in North Carolina. A cap rate study from PWC is also included in our analysis. This shows a base cap rate of 9.68%for Economy and Midscale hotels. Given the income, expenses and overall cap rate for this property,