2026_02_11_BOER_Minutes - Laserfiche WebLink

Browse Search

Docusign Envelope ID:41A5CO43-OEBB-4B4B-BB6A-9411707F7CAF including the 2021 sale of nearby Eastgate,which although earlier in time of sale is included to show the strength of location for a shopping center in this high barrier to entry market. • From the County's analysis,the appeal is unsupported and no change in value is recommended. • GIS Map of Subject • Current Property Record Card(8 pages) • Comparable Sales and Income Approach Motion of the Board No Change in Assessed Value $21,769,500 Made the motion Shannon Julian 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 3:16 PM Appellant Opinion $11,180,000 County Representative Roger Gunn Board Decision $18,360,200 Evidence submitted by the appellant: • The appellant is requesting a lower valuation based on an income approach that is 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. • Average vacancy rates for retail space in Orange County is significantly lower than the 10% used by the appellant. As the current rent roll only provides a snapshot of the current vacancy, a rate of 5%is used,which is somewhat closer to the sub-market average. It is also worth noting that this property has good parking. Additionally, 5%management and reserves 11