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Docusign Envelope ID: D708FC70-AF18-4B68-9AB6-2D010EOD1629 <br /> Property Address 1 1207 Raleigh Road Parcel ID or Abstract 9798255743 <br /> • Statement of Appeal: Request reduction in value based on actual income from 2023 and 2024 <br /> and a market proforma. <br /> Current Assessed Value $6,641,300 ounty Opinion $6,018,600 <br /> Time of Hearin 10:18 AM Appellant Opinion $4,101,800 <br /> County Representative Roger Gunn Board Decision $6,018,600 <br /> Evidence submitted by the appellant: <br /> • The appellant is requesting a lower valuation based on actual income from 2023 and 2024 and <br /> a market proforma. <br /> Evidence submitted by the county representative: <br /> • The subject is a 29,213 square feet shopping center built in 1961 and 1967 with numerous <br /> updates throughout the years and has an assessed value of$6,641,300 or$227.34 per square <br /> foot. <br /> • The property shows very well and gets high rental rates. The County has primarily relied on an <br /> Income Approach to Value and used the actual Effective Gross Income (EGI) from 2024. The <br /> 2024 expenses reported by the owner are very high and include a one-time bad debt payment in <br /> the non-reimbursable expense category as well as payroll expenses that are atypical for <br /> properties like small strip centers. The County has used a more typical expense number that is <br /> a little bit lower than the 2023 actual expenses. Given that this is a very well maintained <br /> "Gateway Property"to Chapel Hill and that the EGI is inclusive of 16%vacancy(i.e.,there is <br /> opportunity to lease more space and increase EGI),we have used a Chapel Hill appropriate <br /> 6.5%capitalization rate. The rate is loaded since the EGI is based off Gross rents and <br /> reimbursements. <br /> • The County's Income Approach presents a lower value than the current assessed value at <br /> $6,016,565. The comparable sales selected are also more than supportive of this value. <br /> Applying the County's Schedule of Values,the County recommends increasing the E04 <br /> economic modifier on the property to E13 which would result in a revised value of$6,018,600 <br /> or$206.02 per square foot. <br /> • GIS Map of Subject <br /> • Current Property Record Card(6 pages) <br /> • Proposed Property Record Card(6 pages) <br /> • Comparable Sales and Income Approach <br /> Motion of the Board Accept County's Proposed Value: $6,018,600 <br /> Made the motion Richal Vanhook <br /> Seconded the motion Shannon Julian <br /> Voted For All BOER Members <br /> Voted Against <br /> Chair of the Board: <br /> 12 <br />