2025_12_18 BOER Minutes - Laserfiche WebLink

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Docusign Envelope ID: BE7173ED-52F6-47B6-A7EB-347CE2C7F857 obsolete given abnormally high core factor. Net leasable area is 10,913 square feet,not 15,008 square feet. As it is the most reliable approach,we ask that the income approach be applied and given 100%weight. There are limited comparable sales, and the general office market is known to be very weak. The property's first floor was recently marketed at$20 per square foot (see marketing flyer). This is reasonable indication of market rent for building. CoStar lists Orange County vacancy rate at>8%. The County's Schedule of Values allow a 40%expense ratio which reflects market expense level for general office. CoStar lists 3-star office cap rates at 9%which is low for general office. Please note that medical offices are performing much better than general offices in terms of vacancy,rent, and overall value. Medical offices are not comparable to the subject but are included in the Costar data. Loading this 9%cap rate with the 1.6529 2024 tax rate results in a 10.65%loaded cap rate. This market data indicates a value of$1.131 million. (10913*20*0.92*0.6)/0.1065). • Please note abnormally high core factor noted in appraisal and that net leasable area is 10,913 square feet, well below the gross building area of 15,008 square feet. • Please see recent marketing flyer. • Please note conclusion noted on page 2 that property is incurably functionally obsolete. Office market has deteriorated since appraisal.Appraisal is too large for upload into appeal module. Please contact Dave Pawlowski for full copy of appraisal. Evidence submitted by the county representative: • The agent has presented an appraisal from 2021 that clarifies some issues that the property faces that keep it from performing as compared to other local office spaces. A lot of the space is demised into smaller suites, which creates an abnormal amount of common area that generates expenses but no income. Please note that the agent does not present a current rent roll or Profit&Loss statement to back up their claims on the appropriate rental rate for the building and, although it's true that office space has generally suffered, small suite space is quite popular and rents may have gone up at this property,not down, since the 2021 appraisal. The County has taken a reasonable approach to value the property by the attached income approach at$1,310,523. Asa result,the County recommends removing the E18 economic modifier on the property value and adding 70%functional depreciation for design to the building which would result in a revised assessed value of$1,307,300. • GIS Map of Subject • Current Property Record Card • Proposed Property Record Card • Comparable Sales and Income Approach • Agent's Acceptance of Proposed Value Motion of the Board Accept Coun 's Proposed Value: $1,307,300 Made the motion Saru Salvi Seconded the motion Richal Vanhook Voted For All BOER Members Voted Against Property Identification: Property Owner Sidney A. Martin Jr. Appellant if different Property Address 108 North Graham Street Parcel ID or Abstract 19788068275