Harrisonburg board adjusts assessments for multiple commercial parcels after appeals

The Board of Equalization for Harrisonburg (Independent City) voted to adjust assessed values on several commercial parcels during hearings that included presentations from property representatives and outside appraisers.

Representatives for the Cloverleaf/Spotswood Valley shopping-center properties and other appellants appeared before the board and described differences between market transactions and the city’s assessments. Jeff, a commercial real-estate broker with Lean Associates, told the board the center’s actual rents and tenant mix mean market value is lower than the assessor’s calculations. “We’re significantly off on, by $5,000,000 on where this thing would likely sell versus where it’s assessed,” Jeff said, explaining his firm used the city’s net operating income formula but plugged in actual gross rent figures from the center’s tenant roll.

The board approved motions adjusting the following parcel valuations after discussion and motions on the record: - “Move to adjust the value of Parcel 027 N 3 to $985,100.” — motion carried. - “Move to adjust the value of Parcel 027 N 4 to $1,884,000.” — motion carried. - “Move to reduce or to adjust the value of Parcel 02701 to $14,209,000.” — motion carried. - “Move to adjust Parcel 02703 to evaluation of $1,085,000.” — motion carried. - “Move to adjust Parcel 02704 to a value of $206,000.” — motion carried.

The board also considered a larger community shopping-center appeal (BZA Spotswood LLC) and voted to change the assessed value for the tax map account referenced in that appeal: the board moved to set the new assessed value at $24,700,000 and the motion carried. In separate action, the board moved on another tax-map appeal (listed in the transcript as tax map numbers 025 P 2 T / 025 P 3 T) on the record with the motion described as “net change excess value,” and the chair announced the motion carried.

Several appellants told the board they had relied on recent sales, tenant rents and local market cap rates to support their requests for reduced assessments. Jeff explained differences in tenant composition at the center — “food line anchored shopping center” with national tenants limited to Food Lion and Aaron’s and mostly small independent operators — and said that affected achievable rents and net operating income. Board members and staff discussed the appraisal inputs, vacancy and operating-expense assumptions and whether the city’s expense ratios applied appropriately to properties where tenants pay varying amounts of taxes, insurance and common-area maintenance.

The board recorded motions and carried them by voice vote; individual roll-call counts were not recorded on the transcript. Appellants were told they would receive written notice of decisions by mail.

Votes at a glance - Parcel 027 N 3 — adjusted to $985,100 (motion carried). - Parcel 027 N 4 — adjusted to $1,884,000 (motion carried). - Parcel 02701 — adjusted to $14,209,000 (motion carried). - Parcel 02703 — adjusted to $1,085,000 (motion carried). - Parcel 02704 — adjusted to $206,000 (motion carried). - BZA Spotswood LLC (tax map referenced in transcript as 73 d 1) — adjusted to $24,700,000 (motion carried). - Tax map 025 P 2 T / 025 P 3 T — motion for “net change excess value” carried (motion text recorded on the transcript).