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Docusign Envelope ID:5A461AB1-DAAO-4DE6-A842-FA1392OFF4F5 <br /> Property Owner KV Chapel Hill Owner Appellant(if different) Morgan Fowler/Ryan <br /> LLC LLC <br /> Property Address 100 Saluda Court Parcel ID or Abstract 9880443469 <br /> Statement of Appeal: Request reduction in value based on actual income and a market proforma income <br /> approach. <br /> Current Assessed Value $65,262,900 ounty Opinion $52,378,100 <br /> Time of Hearin 2:58PM Appellant Opinion $44,586,000 <br /> County Representative Roger Gunn Board Decision $52,378,100 <br /> Evidence submitted by the appellant: <br /> • The appellant is requesting a lower valuation based on actual income and a market proforma <br /> income approach. <br /> Evidence submitted by the county representative: <br /> • The subject is a 240-unit apartment complex in Chapel Hill known as Solano at Chapel Hill <br /> that was constructed in 1999. The property has an assessed value of$65,262,900 or$271,929 <br /> per unit. <br /> • This property sold for$69,250,000 in late 2021 and, although it is reasonable that it might be <br /> worth less now, it is hard to believe that it would be worth over 30%less per the appellant. It <br /> has underperformed though. For the most part the County has given credit to the subject's <br /> historical operating numbers. Therefore, The County is not that far from the appellant's <br /> estimate of Net Operating Income. The main difference is in the capitalization rate,with the <br /> appellant using a 7%capitalization rate that is almost unheard of in Orange County. The <br /> County has used a more conservative 5.75%rate that suggests a valuation of$52,416,351 by <br /> the income approach. <br /> • Based on this analysis, the County recommends decreasing the land market adjustment from- <br /> 37%to -36%and applying an E20 economic modifier to the property for a revised value of <br /> $52,378,100 or$218,242 per unit which is in range of the comparable sales used in the <br /> analysis. <br /> • GIS Map of Subject <br /> • Current Property Record Card(14 pages) <br /> • Proposed Property Record Card(14 pages) <br /> • Comparable Sales and Income Approach <br /> Motion of the Board Accept Count 's Proposed Value: $52,378,100 <br /> Made the motion Saru Salvi <br /> Seconded the motion Richal Vanhook <br /> Voted For All BOER Members <br /> Voted Against <br /> Property Identification: <br /> Property Owner Chapel Hill 260 LLC Appellant(if different) Morgan Fowler/Ryan <br /> LLC <br /> 7 <br />