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Overview

In 2018, a global asset management company purchased an apartment complex in Buckhead, GA for over $70M. However, before the purchase, Fulton County assessed the apartment complex at just over $45M and after purchase assessed it at $69M. The client was not pleased with the notable increase in assessed value and reached out to us for consultation. 

 

 

Challenge

When we began reviewing this property assessment, there were numerous factors that needed to be considered. Georgia’s 299c regulation caps the assessed value of a property, for an additional two years after the initial value has been settled. Which is why the value for this apartment complex, should have held for tax years 2017 and 2018. However, the assessor’s office unrightfully broke the 299c cap because of renovations beginning in mid-2018 and due to the sale of the complex. Unfortunately, they chose to assess this property as if the renovations were complete and commensurate to the full purchase price, which was a substantially larger amount than the assessed value. 

 

Solution

The removal of the 299c cap, was wrong and did not allow for an accurate assessed value to be allocated to this property. Due to the sale of the complex, the county incorrectly pulled the 299c off one year early. This made it clear that the assessor’s office was simply chasing the purchase price of the property. In our appeal we claimed that the property’s transaction was not a change in market condition, therefore the 299c should have remained in place.   

 

 

Result

Our appeal was successful, and we were able to reduce the $69M assessment for 2018 by 27% and 10% for 2019. Overall, for 2018 and 2019 we cut $23M off of the total assessments and saved our client almost $400K in property taxes, which they were ecstatic about. 

Services provided

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