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Docusign Envelope ID:5A461AB1-DAAO-4DE6-A842-FA1392OFF4F5 <br /> • Average vacancy rates for retail space in Orange County is significantly lower than the 10% <br /> used by the appellant. As the current rent roll only provides a snapshot of the current vacancy, <br /> a rate of 5%is used,which is somewhat closer to the sub-market average. It is also worth <br /> noting that this property has good parking. Additionally, 5%management and reserves <br /> expenses are accounted for, which is a much more typical expense when compared to the non- <br /> recoverable 10%expenses indicated by the appellant. <br /> • The Net Operating Income is capitalized at a rate of 5.5%. This rate is reasonable based on the <br /> age of the subject and its prime location and is selected relative to a broad set of retail sales in <br /> downtown Chapel Hill over the past 10 years. The result would indicate a value of <br /> $18,313,095 or approximately$398 per square foot based on the square footage listed in the <br /> County tax records. <br /> • As a result of this analysis, applying the County's Schedule of Values,the County recommends <br /> changing the grade of all buildings from A+40 to A and the E02 economic modifier on the <br /> property to E08 which would result in a revised value of$18,360,200. <br /> • GIS Map of Subject <br /> • Current Property Record Card(8 pages) <br /> • Proposed Property Record Card(8 pages) <br /> • Income Approach <br /> • Downtown Chapel Hill-Carrboro Capitalization Rates <br /> Motion of the Board Continue to a Future Date/Time: Continue appeal to a later date <br /> Made the motion Leon Meyers <br /> Seconded the motion Saru Salvi <br /> Voted For All BOER Members <br /> Voted Against <br /> Property Identification: <br /> Property Owner Chapel Hill Foundation Appellant(if different) Morgan Fowler/Ryan <br /> Real Estate Holdings Inc. LLC <br /> Property Address 123 West Franklin Street Parcel ID or Abstract 9788268572.007 <br /> Units 520, 530, 540, 550 <br /> Statement of Appeal: Request reduction in value based on an income approach using a market proforma. <br /> Current Assessed Value $10,378,400 ounty Opinion $8,108,100 <br /> Time of Hearin 4:10PM Appellant Opinion $8,110,000 <br /> County Representative Roger Gunn Board Decision Continue appeal to a later date <br /> Evidence submitted by the appellant: <br /> • The appellant is requesting a lower valuation based on an income approach using a market <br /> proforma. <br /> Evidence submitted by the county representative: <br /> 13 <br />