2025_12_02 BOER Minutes - Laserfiche WebLink

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Docusign Envelope ID:7407D742-46FF-40B4-9943-4A3D2B49D298 Current Assessed Value $16,323,400 County Opinion $13,322,100 Time of Hearin 9:49 AM Appellant Opinion $11,392,500 County Representative Roger Gunn Board Decision $13,322,100 Evidence submitted by the appellant: • Based on 2022,2023, and 2024 financial documents,the indicated value from the income approach is $11,392,500. Evidence submitted by the county representative: • The agent has used 2023 and 2024 Profit and Loss to generate their estimated value of $11,392,500 or$113,925 per unit. The property is older but is prime real estate in a walkable prime location. It is 99%occupied and looks to be well taken care of with plenty of maintenance and notable capital investment. The main issue is the capitalization cap rate. The agent uses 6.5%,which is near the top rate used in for apartments of this class in Chapel Hill. Based on actual rents and expenses,the capitalization rate should be lower. A 5.75%is used in the income approach below. $145,434 Monthly Rent(12/24 Rent Roll) ($6,356) Credit Loss $139,078 Monthly Net Rent $1,668,933 Effective Gross Income $29,206 Other Income @ 1.75%of EGI $1,698,139 EGI Adjusted ($679,256)Expenses at 40%of EGI adjusted. ($33,963)Reserves @ 2.00%of EGI adjusted. $984,921 Net Operating Income 5.75%Capitalization Rate 1.65%Loaded for Tax Rate 7.40%Loaded Rate $984,921/.074=$13,309,741 • Applying the Orange County schedule of values,the County recommends applying an E 19 economic market adjustment to the property which would reduce its value from$16,323,400 to $13,322,100. • GIS Map of Subject • Current Property Record Card(6 pages) • Proposed Property Record Card(6 pages) Motion of the Board Accept Coun 's Proposed Value: $13,322,100 Made the motion Saru Salvi Seconded the motion Richal Vanhook Voted For All BOER Members Voted Against ...