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Board of Equalization reduces assessment for 650 North Quincy St. to $70.63M
Summary
After hearing competing appraisals and testimony about 2025 NOI and cap-rate classification, the Arlington County Board of Equalization voted to lower the 2026 assessment for 650 North Quincy St. to $70,634,800 using the appellant's column E NOI at the county cap rate.
The Arlington County Board of Equalization voted to reduce the 2026 assessment for 650 North Quincy St. to $70,634,800 after hearing an appeal that challenged the county's income and cap-rate assumptions.
Appellant representative Chris Harmon told the board the county’s use of a 2.3% projected NOI increase was “flawed for two reasons,” saying the property’s NOI fell in 2025 amid weaker federal employment and fewer travelers and that nothing in the available market data suggested a turnaround for 2026. Harmon asked the board to “reduce the property’s assessment to reflect what the property actually reported in 2025 NOI.”
County representative Jordan Chicas defended staff methodology, saying the county uses national and regionally calibrated surveys (PwC, RERC) as inputs and that the county’s modest 2.3% revision still places the property well below its 2023 high. “When we get close to those numbers that are then represented in the subsequent IVD, it definitely gives us reason to believe that we’re on the right path,” Chicas said.
Harmon also contested the cap-rate classification, saying the county treated the hotel-style residence as a limited-service midscale when, by ADR and STR category, it should be treated as limited-service upscale; he said applying the upscale category would shift the cap rate by about 50 basis points. Harmon argued the inconsistent classification produced an assessment premium compared with other recent equalized properties.
During deliberations, board member Michael Mendez said he ran the appellant’s column E NOI at the county’s current cap rate and arrived at a value of $70,634,800. Mendez moved to reduce the assessment to that figure; the motion was seconded by Mr. Panaranda and approved with no opposition. The board’s clerk announced: “The assessment is reduced to $70,634,800 based on using column E, NOI at the current county cap rate and deducting the personal property.”
The hearing record shows the board balanced the appellant’s lease and sales evidence against county survey-based methods. The board did not instruct additional staff follow-up beyond the order reducing the assessment.
The Board of Equalization adjourned and said it will reconvene the next day for remaining business.
