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BOE affirms county assessment for 3835 Fairfax Drive after dispute over vacancy and cap rates
Summary
A 383‑unit apartment owner asked the BOE to reduce the assessment, citing an 11% vacancy as of Jan. 1, 2026 and recommending higher cap rates; the county defended its tested figures and the board confirmed the county assessment.
The Arlington BOE heard competing testimony over vacancy rates and cap‑rate selection for a 383‑unit multifamily property at 3835 Fairfax Drive and ultimately confirmed the county's assessment.
Appellant representative (Mr. Haim) told the board the property reported about 43 vacant units (roughly 11% vacancy) as of the valuation date and that a 5% vacancy assumption used by the county was too low; he proposed a base cap rate near 5.75% (loaded to about 6.98%) to reflect market publications and to produce a requested value of about $120.6 million.
County staff (Miss Shuttlesworth) countered that the rent roll submitted to the county showed 10 vacant units (2.6%) as of Jan. 1, 2026, and that the countytested increases for potential rent and NOI were conservative; the county also said its cap‑rate references were drawn from standard third‑quarter investment publications.
Board members expressed differing views on how much weight to give a single year's vacancy reading versus a multiyear trend. After discussion the board voted to confirm the countyassessment as presented.
Why it matters: vacancy assumptions drive income‑approach valuations for apartments; small variances in vacancy or cap‑rate choice can materially change assessed values.
