2026_01_13 BOER Minutes - Laserfiche WebLink

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Docusign Envelope ID:5A461AB1-DAAO-4DE6-A842-FA1392OFF4F5 • The County has used a lower Potential Gross Income than the owner projects and has applied a 7% stabilized vacancy rate. Market expenses and a market capitalization rate of 5%are used. It is worth noting that, even in a period of high deliveries and increasing unit counts, capitalization rates for newer luxury apartments are often below 5%. • Overall, the Income Approach shows a slightly lower value than the current assessment,but the County Assessment is below all sales on a value per unit basis and the current assessment is supported. As a result,no change in value is recommended. • GIS Map of Subject • Current Property Record Card(8 pages) • Comparable Sales and Income Approach • Triangle Luxury Apartment Capitalization Rate Support Motion of the Board Accept Count 's Proposed Value: 1 $45,325,400 No Change in Value Made the motion Saru Salvi Seconded the motion Richal Vanhook Voted For All BOER Members Voted Against Property Identification: Property Owner Chapel Hill Foundation Appellant (if different) Morgan Fowler/Ryan RE Holdings Inc. LLC Property Address 143 W. Franklin Street Parcel ID or Abstract 9788268572.006 Statement of Appeal: Request reduction in value based on an income approach based on actual income and market proforma. Current Assessed Value $24,446,700 ounty Opinion $18,360,200 Time of Hearin 4:05PM Appellant Opinion $11,180,000 County Representative Roger Gunn Board Decision Continue appeal to a later date Evidence submitted by the appellant: • The appellant is requesting a lower valuation based on an income approach based on actual income and market proforma. Evidence submitted by the county representative: • The subject is a set of retail condos located on the ground floor of the larger Carolina Square project in downtown Chapel Hill. The appellant utilizes a square footage of 46,022 square feet, while tax records list a total of 73,705 finished square feet. The appellant has requested a value of$11,180,000 or approximately$243 per square foot based on their square footage figure. • Based on the rent roll provided by the appellant, the subject's average lease rate appears to lag market rates primarily due to the large space occupied by the anchor tenant, Target. Larger retailers such as this, occupying large retail spaces tend to have lease rates lower than the average, as they occupy a much larger than average space. This appears to be reasonable and an average lease rate of$24.25 per square foot per year has been utilized for the purpose of this analysis. 12