2025_12_17 BOER Minutes - Laserfiche WebLink

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Docusign Envelope ID:OA23A6A2-42FE-4EAO-B414-FA2F89F77BF7 Property Identification: Property Owner S V Center LLC Appellant(if different) Property Address 400 Market Street Unit Parcel ID or Abstract 9787056725 100 Statement of Appeal: Request reduction in value based on an independent fee appraisal. Current Assessed Value $4,580,100 ounty Opinion $3,751,200 Time of Hearin 9:12 AM Appellant Opinion $3,650,000 County Representative Roger Gunn Board Decision $3,751,200 Evidence submitted by the appellant: • The appellant is requesting a reduction in value based on an independent fee appraisal as of January 1, 2025,with an indicated value of$3,550,000 from the sales comparison approach, $3,700,000 from the income approach and a reconciled value of$3,650,000. Evidence submitted by the county representative: • The appellant has submitted an appraisal into evidence. Generally speaking,the report aligns with the County's schedule of values and is considered reasonable evidence. However, there are three key points that seem to create a greater difference in the County assessment and the owner's estimate of value than might otherwise exist. 1.) The appraisal downplays the retail component of the property,which includes long-term tenants such as Subway. There is over 24%retail in this building,which has lower vacancy rates and capitalization rates than office spaces enjoy. CoStar Market Reports show that near end 2024 vacancy sat at 1.3%in Orange County. There was very little new construction and asking rates were on the rise. 2.) It doesn't give enough credit to the walkable location,which is considered very desirable for office space. It is considered one of the main amenities that separates desirable from undesirable office locations. 3.) The property has some medical (dental) space. Medical office buildings (MOBS)greatly outperform typical office in terms of vacancy, rents and capitalization rates. • The attached income approach uses the same income as the appraisal but adjusts the vacancy from 10%to 7%to better reflect the medical and retail nature of this walkable building. Expenses are similar. Comparables for the extraction of the capitalization rate are also provided. • The indicated value from the income approach is$3,757,583. As a result,the County recommends increasing the economic depreciation of the buildings from 35%to 49%for a revised value of$3,751,200. • Location Map of Subject • Current Property Record Card(8 pages) • Proposed Property Record Card(8 pages) • Income Approach • Com arables for Office Capitalization Rate