Challenge

In order to not only achieve the lowest fair and equitable tax position for the overall property, but also to mitigate tenant grievances with the owner with respect to their portion of the tax expense, Altus implemented a multi-step process to the appeal. In Step One, Altus determined which tenants were not on a “proportionate share” basis for tax recovery. Second, attempts were made to contact the representative or agent for each of those tenants. Third, the valuation methodology for that tenant was shared with the tenant’s agent, and the agent was invited to express their opinion on how that unit should be valued. Fourth, Altus negotiated with the Assessor on the overall value of the property, while taking into account the positions advocated in Step 3.

While the overall negotiation was successful in significantly reducing the tax burden of the property, not all tenants were satisfied. Therefore, a formal appeal was filed with the Board of Revision. At the hearing, Altus invited the agents of the anchor tenants to speak on each unit’s valuation as expert witnesses, in addition to Altus handling the remainder of the property’s valuation (including an overall capitalization rate argument). Great care was taken to ensure the position of one tenant did not jeopardize the position of the overall property.