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Board affirms county's valuation for former hotel converted to apartments at 1500 Arlington Blvd
Summary
The Board confirmed the county's 2026 valuation for a 261-unit property converted from a hotel at 1500 Arlington Boulevard after county staff explained why reserves are excluded from income statements and are reflected in cap rates; the board unanimously confirmed the assessed value.
Arlington County's Board of Equalization confirmed the county's 2026 assessment for the former hotel at 1500 Arlington Boulevard (now a 261-unit multifamily property), after county staff explained accounting treatment of reserves and capital expenditures and presented conservative NOI projections.
County representative Ms. Shelsworth told the board that reserves for replacements and capital expenditures are not included "below the line" in the income statement but are accounted for in the cap rate. "We do not include the reserves for replacements in the income statements. We include those in our cap rates," she said, noting that the county used conservative projections and a tested OPEX and that the county's tested NOI remained above the 2026 assessment of $72,370,200.
Appellant counsel acknowledged renovations performed during conversion and disagreed on which capital costs should be included in the income stream, but the county said the capital expenses quoted by the appellant had not been incurred or registered as of the Jan. 1 assessment date and therefore could not be treated "below the line." The county asked the board to confirm the assessment.
Board members had no major objections; the panel moved and unanimously confirmed the county's assessment of $72,370,200.
No additional actions or follow-up were recorded.
