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Board debates whether 2019 transaction reflected fee-simple sale or lease premium
Summary
Board members and appraisers disputed whether a 2019 transaction for the Walgreens site reflected a fee-simple sale or a sale of a leased fee that included a lease premium; the parties disagreed on whether any buyout occurred and on how to interpret implied rent from the transaction.
Members of the BCA probed the 2019 transaction that some participants cited as evidence of higher market value. One participant asked whether about $10–11 million paid in 2019 represented a buyout of a long-term Walgreens lease that would imply a higher effective rent and therefore a higher market value. Another participant responded that there was no lease buyout recorded and described the transaction as a leased-fee sale, not an exposed market sale.
A board member asked for documents to clarify the implied rent derived from the buyout or sale price; the appellant agreed to provide a copy of the lease. Board members noted that if the sale included a buyout or unusual lease terms (for example, the standard Walgreens 75-year lease and a 'no broker' clause), that could limit the transaction's usefulness as a market-comparable sale. The board deferred further analysis until the inspection and reconvened hearing.
