Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Valuation Method topic
No spam. Unsubscribe anytime.
Board sides with petitioner on Port Apache valuation, accepts $24M income approach
Summary
The board unanimously accepted the petitioner’s income‑based valuation for the Port Apache Townhomes project, finding the clustered 79‑unit rental project should be valued as an income‑producing economic unit rather than by aggregating single‑unit sales comps.
The State Board of Equalization voted unanimously to accept an income capitalization valuation of $24,000,000 for Port Apache Townhomes LLC, reversing the assessor’s sales‑comparison aggregation and treating the 79‑unit development as an income‑producing economic unit. Petitioner counsel Jim Wadhams argued the property could not be sold as individual units at the valuation date and that full cash value therefore should reflect the market for a bulk sale to an investor.
Clark County appraisers and counsel urged application of Marshall & Swift cost tables and the sales comparison approach for individual townhome parcels, citing Montage and other Nevada authority that warns against valuing identical physical improvements differently based on owner intent. The petitioner’s broker opinion of value (Northmark) and a capitalized income analysis were before the board; after hearing testimony the board concluded the income approach better reflected how the property would be marketed and sold at the valuation date and directed valuation consistent with the petitioner’s figures.
