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Board of Equalization hears contested valuations for industrial, storage properties; two Coca‑Cola appeals settled by agreement
Summary
The Board of Equalization heard multiple commercial valuation appeals June 15, including a flex industrial building at 120 N. Rockwell and a mini‑storage facility, where owners argued vacancy and operating data should lower values; two Coca‑Cola distribution properties were settled that day by mutual agreement (values set at $5,824,700 and $7,300,000).
The Board of Equalization on June 15 heard a series of contested commercial property valuations and negotiated two mutual agreements with a corporate taxpayer.
120 North Rockwell (BOE #161) Property representatives for a roughly 101,500‑square‑foot flex industrial building told the board the property was deeply affected by vacancy (40% reported as of the record date) and that the assessor’s income analysis applied inappropriate lease assumptions. The owner presented three income‑based approaches that yielded results ranging from roughly $5.24 million (a conservative income approach using current income and a 9.53 loaded cap) to higher stabilized values when lease‑up assumptions were applied. The assessor countered that market practice in the area often reflects triple‑net lease assumptions, and the assessor’s current work produced a range near $6.7M to $7.9M depending on lease‑up and cap‑rate choices. The board asked staff to review the competing inputs and scheduled a written decision for Thursday.
Mini‑storage facility (BOE #164) A taxpayer representative said the facility (built 2018; expanded in 2022) was only about 60% occupied and that local oversupply depressed effective rents; the assessor used broader market occupancy and lower expense assumptions and produced a higher income‑approach value. Parties debated expense ratios, ancillary income, and lease‑up costs; the board deferred a final decision.
Coca‑Cola distribution properties (BOE #176 and #177) Two Coca‑Cola distribution/warehouse appeals reached mutual agreement on value after review and discussion. On the record the parties and assessor agreed to set fair market values by mutual consent: BOE #176 at $5,824,700 and BOE #177 at $7,300,000. The board moved and approved those agreements.
Across the commercial docket, the board heard technical exchanges about cap rates, vacancy assumptions, lease‑up costs and whether triple‑net or modified‑gross lease treatments should be applied in market‑value calculations. Chair Elanar Thompson reminded parties that the board’s statutory task is to determine fair market value as of the valuation date and that decisions and written findings would be issued after deliberation.
