Summary
Owner representative cited a high vacancy rate and rent‑loss adjustments; county staff pointed to a June 2023 refinance appraisal that it says values the asset substantially higher.
A representative for the Briarcliff Office (Building 1, part of a five‑building office portfolio) asked Clay County to lower the assessment for a single building citing prolonged vacancy, tenant improvement costs and market weakness for class‑B office space.
The owner representative said the building has suffered long‑term vacancy since 2019 (citing suites vacant on multiple floors) and estimated a significant two‑year rent loss and tenant improvement allowance that together lowered the building's value. He said recent rents achieved on occupied suites were about $28.29 per square foot but that many older leases were well below market. Using a loaded overall rate of about 11.2% after applying the tax load, he concluded a value near $7.0–$7.4 million for the subject building.
Mike Jacoby for the county said the property owner refinanced the five‑building portfolio in June 2023 and that the refinance appraisal (which the owner declined to provide to the assessor) shows a portfolio value the county interprets as about $12.0 million for the building in question. Jacoby told the board the county's valuation incorporated the appraisal and other market data and that without seeing the owner's refinance appraisal the county could not accept the lower number.
The hearing included detailed back‑and‑forth about how to calculate rent loss (subtracting a standard 9% market vacancy from observed vacancy to compute incremental rent loss), the proper vacancy and TI assumptions for an office property, and whether office market obsolescence justified an additional rent‑loss adjustment. The county asked the owner to supply the refinance appraisal; the owner said the lender appraisal was confidential and the owner had not provided it to the assessor. The assessor said the county must see the appraisal to verify the claimed lower value.
The board told the parties it would review any appraisals or supporting financials and issue a written decision.
