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Appellant asks board to cut Courthouse Tower valuation to $44.175 million, citing rising expenses and concessions
Summary
The appellant’s representative, Ms. Ross, told the Board of Equalization that Courthouse Tower’s net operating income fell sharply in 2025 and that generous rent abatements and higher operating costs justify lowering the 2026 assessment to $44,175,000.
Ms. Ross, speaking for the appellant, asked the board to reduce Courthouse Tower’s assessed value, arguing the building’s net operating income (NOI) has fallen and operating expenses are higher than the county’s estimate.
"The property's NOI continues to decline over the years," Ms. Ross said, citing a drop from 8.7 in 2024 to 5.5 in 2025 and noting "excess vacancy" as a principal driver. She told the board owners are offering long-term concessions to attract tenants — "18 month full rent abatements and ... an additional 6 month partial rate of abatements" — and that some tenants now pay below $46.20 per square foot.
Ms. Ross flagged operating expenses as a key concern: she said 2025 actual expenses were $12.41 per square foot compared with the county's $10 per square foot estimate, and she signaled a correction to the appellant's own lease-up discount to exclude amenity space. Based on these inputs the appellant's preliminary value was $47,902,000, and after the correction Ms. Ross requested a revised value of $44,175,000.
Ms. Ross closed by reiterating uncertainty about which expenses the county excluded when it produced its operating-year numbers and thanked the board for its time.
