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Board lowers Potomac Towers assessment after agreeing to higher operating expense assumption
Summary
An appeal for Potomac Towers (2001 N. Adams St.) led the board to increase assumed operating expenses to 30% and reduce the 2026 assessment to $136,449,000; parties disagreed over annualized rent‑roll potential vs. concessions reported in 2025.
The Board reviewed an appeal for Potomac Towers, a 10‑story high‑rise apartment building with 406 units in the North Highlands submarket. Appellant Mr. Warren said the owner reported 2025 gross potential rent and that ongoing concessions (one month free on a 12‑month lease) and tenant incentives meant that the rent‑roll potential should not be treated as full collectible income.
“The actual calendar year 2025 operating expenses reported at the subject property were 3,400,000, 30% of EGI,” Mr. Warren said during the appellant presentation and asked the board to reflect the property’s reported income and concessions. County analyst Ms. Shuttlesworth described renovations, inspection history and the department’s reconstruction of the 2025 rent roll, and said county test columns used published cap‑rate and rent indices.
Board members focused on operating expense averages and concessions; several members raised concerns that the county’s original expense percentage understated the property’s recent reported expenses. A motion to raise expenses to 30% on the original assessment and reduce the 2026 assessment to $136,449,000 carried unanimously.
