2026_01_29 BOER Minutes - Laserfiche WebLink

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Docusign Envelope ID: BOF983D6-EAD9-4D5D-A13A-EE8461FA1918 Time B Meeting called to order 1:01 PM Leon Meyers Meeting adjourned 2:56 PM Richal Vanhook Property Identification: Property Owner Gwendolyn Office Glen Appellant(if different) Morgan Fowler/Ryan Lennox LLC LLC (Presented by Ca O'Day) PropertyAddress 101 Glen Lennox Drive Parcel ID or Abstract 9798274368 Statement of Appeal: Request reduction in value based on actual income from 2024. Current Assessed Value $18,010,500 ounty Opinion $22,934,000 Time of Hearin 1:01 PM Appellant Opinion $8,837,000 County Representative Roger Gunn Board Decision $22,934,000 Evidence submitted by the appellant: • The appellant is requesting a lower valuation based on actual income from 2024. Evidence submitted by the county representative: • The subject is a 114,597 square feet office building constructed in 2020 and has an assessed value of$18,010,500 or$157.16 per square foot. • This is a LEED certified Class A office building in Chapel Hill. Although constructed in 2020, it still has not finished lease up(65% leased with some concessions still left to run out). The agent has provided a rent roll and summary of operations as an un-stabilized building. However, the County must assess the property as stabilized. The leases in place are in the$35 to $40+per square foot per year range with the exception of the restaurant tenant,which is leased for less,but seems to also be paying percentage rent. • Using the rent roll as a guide for potential gross income, market-based expenses, and a market capitalization rate of 8.5%vs the agent's rate of 7.5%,the County's income approach indicates a value of$23,942,443. After a deduction of almost 25%due to retail shell space,this amount is reduced to $22,839,266. • In addition to an Assessor's Sheet, a study on how the LEED certification adds value to office buildings is included. • Based on the County's income approach and the LEED Certification study,the County recommends reducing the 40%economic depreciation on the building to 18%changing the land market adjustment from+33%to+32%and applying an E05 economic modifier to the property which would result in a revised value of$22,934,000 or$200.13 per square foot, which is still below the range for comparable sales in the Triangle market. • GIS Map of Subject • Current Property Record Card(4 pages) 2