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Docusign Envelope ID:41A5CO43-OEBB-4B4B-BB6A-9411707F7CAF Voted For All BOER Members Voted Against Property Identification: Property Owner Chapel Hill North Station Appellant(if different) Morgan Fowler/Ryan, LLC LLC Property Address 1838 Martin Luther King Parcel ID or Abstract 9880275036 Jr. Boulevard Statement of Appeal: Request reduction in value based on a market proforma income approach. Current Assessed Value $17,720,900 ounty Opinion $20,089,700 Time of Hearin 4:05 PM Appellant Opinion $15,249,357 County Representative Roger Gunn Board Decision $20,089,700 Evidence submitted by the appellant: • The appellant is requesting a lower valuation based on a market proforma income approach. Evidence submitted by the county representative: • The subject is a 95,261 square feet shopping center on 13.39 acres built in 1998. The property currently has an assessed value of$17,720,900 or$186.02 per square foot. It is 100%occupied and is anchored by a Harris Teeter supermarket. • The appellant provides a rent roll,but no Income and Expense information. They provide an Income Approach to value using actual rents. They use a high non-recoverable expense of 15%with nothing to support it. The capitalization rate used in their analysis is 8.5%,which is high for Chapel Hill and much higher than actual sales in the area in the low to mid 7%range. Overall, the analysis needs more support. • The County has used sales and income approaches to value the property. The two main differences between the County's income Approach and the Appellant's income approach is non-recoverable expenses, where the County uses 5%,which is reasonable for a center with significant inline spaces and an anchor that is paying TICAM reimbursements,and the capitalization rate chosen. Harris Teeter centers tend to fare better than many other types of centers. Given the local comparables and the location,the County has used a 7.5%rate. Based on the County analysis,primarily the Income Approach,the indicated value of the shopping center is higher than the current assessed value at $20,087,098. • Applying the County's schedule of values, the County recommends removing the existing E20 economic modifier on the property and instead applying 20% economic depreciation to the structures. This would result in a revised value of$20,089,700 or$210.89 which is well supported by comparable area shopping center sales. • GIS Map of Subject • Current Property Record Card(6 pages) • Proposed Property Record Card(6 pages) • Comparable Sales and Income Approach Motion of the Board Accept County's Proposed Value: $20,089,700 14