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Home My WebLink About2025_09_10 BOER Minutes Docusign Envelope ID:056FE2E5-FAD3-473E-9E3E-E287COF06262 MINUTES Orange County Board of Equalization and Review rvieeting held on September 10, 2oz5 Board Members in attendance: Chair of the Board Leon Meyers Yes Regular Member Saru Salvi Yes Regular Member Richal Vanhook Yes Alternate Member Shareese Alston No Alternate Member Hunter Beattie No Alternate Member Tony Blake No Alternate Member Vaughn Compton No Alternate Member Shannon Julian No Alternate Member Barbara Levine No Orange County Staff in attendance: Tax Administrator Nancy Freeman Office Assistant Jennifer Rigsbee Real Property Appraisal Manager Roger Gunn Appraiser Jimmy Milliken Temporary Appraiser Assistant Rob Teachout Commercial Property Consultant Paul Snow Meeting Schedule: No. Time PIN or Abstract Appellant Appeared Appeal Type 1 1:00 PM 9873180351 M4 Property Management LLC Yes Value- Real (Continued from 7/23/25) 2 1:06 PM 9788167051 Diane Harrell Trustee Yes Value- Real 3 1:14 PM 9788166083 Diane Harrell Trustee Yes Value- Real 4 1:20 PM 9788155918 Diane Harrell Trustee Yes Value- Real 5 1:24 PM 9788164037 Diane Harrell Trustee Yes Value- Real 6 2:18 PM 9788165175 Diane Harrell Trustee Yes Value- Real 7 2:43 PM 9788378534 Riddle Properties LLC Yes Value- Real 8 2:58 PM 9788376242 Riddle Commercial Properties Inc. Yes Value- Real Time By Meeting called to order 1:00 PM Leon Meyers Meeting adjourned 3:46 PM Leon Meyers Motion Time By Second To move into recess 2:51 PM Leon Meyers Saru Salvi To return to order 2:57 PM Leon Meyers Saru Salvi Docusign Envelope ID:056FE2E5-FAD3-473E-9E3E-E287COF06262 Property Identification: Property Owner M4 Property Management Appellant(if different) Brian McGregor LLC Property Address 2207 Leah Drive, Parcel ED or Abstract 9873180351 Hillsborough Statement of Appeal: Request a reduction in value based on comparable sales and values in the same business park. Current Assessed Value $2,170,600 County Opinion $1,872,800 Time of Hearin 1:00 PM Appellant Opinion $1,699,584 County Representative Roger Gunn Board Decision $1,872,800 Evidence submitted by the appellant: • I know the value of my property has gone up over the years but it's hard to believe that the property went up in value from 2020 to 2021 raised 11.94%from 2024 to today the valuation showed a 146.21% increase. In dollar terms 1,289,000.00. I believe the real value is a lot less. My research shows that there are not many sales in the area. Comparing the valuation to other properties in the business park is also high. The new sales are below. Parcel Id 9873067931 sold last year for 825,000.00(Has 2 buildings= 4496 sq ft)Building value= 121.57 per Sq ft Parcel id 9873282865 Land sale last year.paid 200000.00 for 2.12 acres(94,339.62 per acre)Parcel id 9873176344 Land sale.paid 355,000.00 for 2 lots 1.64 and 1.70=3.34 acre 106,287.42 per acre My Building(parcel Id 9873180351)is 12800 sq ft By using the same cost per sq ft 121.57 = 1,556,096.00 My land is 1.35 acres @ 106.00(By using the highest sold comp)= 143488.00 The total value is= 1,699,584 There are more examples based from your own evaluations of commercial properties in Old Mill Business Park. Parcel id 9873272844 This property has a 10,020 sq ft building that is all brick exterior,fully finished office and air conditioned with land to expand for more buildings. The current 1,529,200.00 Evaluation is 641,400.00 less than my property. Parcel id 9873180593 This property is next door and has a evaluation of 1,482,400.00 that is 688,200.00 less than my property Parcel ID 9873170966 This property is also next door and has a evaluation of 1,393,400 that is 777200.00 less than my property. The square footage is wrong due to a mezzanine and office upstairs. Based off of the last three parcels the value should be some were between 1,393,400.00 and 1,529,200.001 would like to say that my building is a flex warehouse type space which has a small office and work area and a warehouse. (3 rental units total)Unit 1. 1200 sq ft office, 1200 sq ft production, 4400 sq ft warehouse with a total of 6800 sq ft Unit 2. 1200 sq ft office,2000 sq ft warehouse and total 3000 sq ft Unit 3. 1200 sq ft office,2000 sq ft warehouse and total 3000 sq ft. Evidence submitted by the county representative: • Per the County's commercial property consultant, "The appeal contains a lot of information. The start is a discussion of a sale at parcel 9873067931. The sales price is referenced at$121.57/SF,but it is actually$183/SF, so I think that the owner has referenced a sale but then pulled only the building assessment out of that?It's worth noting that the sale is not very comparable. Then a number of land sales are referenced Docusign Envelope ID:056FE2E5-FAD3-473E-9E3E-E287COF06262 for a"pieces and parts" argument,but the entire value needs to be appealed. Then there is an equity argument concerning a number of nearby parcels. Let me know if you need me to do a deep dive on that argument. A very nearby similar parcel has space like the subject's for rent at$17/SF NNN,which means the subject is only assessed at around a 10%cap.Also,the owner does not provide any income data for their property,which is fully leased. I don't believe there is enough relevant evidence for a change at this time." • At the July 23,2025 meeting,this appeal was continued in order for the County to perform an equity analysis(attached)with other Industrial Flex buildings in the Hillsborough market area. Upon review,it is the County's recommendation to adjust the grade of the subject from A to 13+05 to be more equitable with the other properties in the equity analysis. • County recommends a change in value to $1,872,800 • Photograph of Subject • GIS Map of Subject • Current Property Record Card of Subject • Equity Analysis • Proposed Property Record Card of Subject Motion of the Board Accept Coun 's Proposed Value: $1,872,800 Made the motion Richal Vanhook Seconded the motion Saru Salvi Voted For All BOER Members Voted Against ... Property Identification: Property Owner Diane Harrell Trustee Appellant(if different) Joseph Riddle Property Address 23 acre on Yates Motor Parcel ID or Abstract 9788167051 Company Alley(Lot 4) Statement of Appeal: Request a reduction in value based on a recent independent appraisal. Current Assessed Value $220,000 County Opinion $120,000 Time of Hearin 1:06 PM Appellant Opinion $120,000 County Representative Jimmy Milliken Board Decision $120,000 Evidence submitted by the appellant: • Appraisal from Keystone Consulting Group Evidence submitted by the county representative: • After reviewing the submitted appraisal,The subject is a small dirt lot that has been used for parking. As suggested from sales comparison in the appellant's appraisal report,it is the county's recommendation to change the current access adjustment an additional -25%totaling- 70%to reflect a revised market value of$120,000 for 2025. • Current Property Record Card of Subject Docusign Envelope ID:056FE2E5-FAD3-473E-9E3E-E287COF06262 • Proposed Property Record Card of Subject • GIS Map of Subject Motion of the Board Accept Coun 's Proposed Value: $120,000 Made the motion Richal Vanhook Seconded the motion Saru Salvi Voted For All BOER Members Voted Against ... Property Identification: Property Owner Diane Harrell Trustee Appellant if different Joseph Riddle Property Address 109 N Basnight Ln. (Lot Parcel ID or Abstract 9788166083 5 Statement of Appeal: Request a reduction in value based on a recent independent appraisal. Current Assessed Value $220,000 County Opinion $80,000 Time of Hearin 1:14 PM Appellant Opinion $84,000 County Representative Jimmy Milliken Board Decision $84,000 Evidence submitted by the appellant: • Appraisal from Keystone Consulting Group Evidence submitted by the county representative: • After reviewing the submitted appraisal,The subject is a small dirt lot that has been used for parking. As suggested from sales comparison in the appellant's appraisal report, it is the county's recommendation to change the current access adjustment an additional-35%totaling-80%to reflect a revised market value of$80,000 for 2025. • Current Property Record Card of Subject • Proposed Property Record Card of Subject • GIS Map of Subject Motion of the Board Accept A ellant's Proposed Value: $84,000 Made the motion Saru Salvi Seconded the motion Richal Vanhook Voted For All BOER Members Voted Against ... Property Identification: Property Owner Diane Harrell Trustee Appellant(if different) I Joseph Riddle Property Address Lot 2,Basnight Lane Parcel ID or Abstract 19788155918 Docusign Envelope ID:056FE2E5-FAD3-473E-9E3E-E287COF06262 Statement of Appeal: Request a reduction in value based on a recent independent appraisal. Current Assessed Value $220,000 County Opinion $100,000 Time of Hearin 1:20 PM Appellant Opinion $94,000 County Representative Jimmy Milliken Board Decision $94,000 Evidence submitted by the appellant: • Appraisal from Keystone Consulting Group Evidence submitted by the county representative: • The subject is a small dirt lot that has been used for parking. After reviewing the sales comparison approach in the appellant's appraisal report,the County recommends adjusting the existing-45%for the land an additional-30%,totaling-75%for a new value of$100,000. • Current Property Record Card of Subject • Proposed Property Record Card of Subject • GIS Map of Subject Motion of the Board Accept A ellant's Proposed Value: $94,000 Made the motion Leon Meyers Seconded the motion Saru Salvi Voted For All BOER Members Voted Against ... Property Identification: Property Owner Diane Harrell Trustee Appellant(if different) Joseph Riddle Property Address 425 W. Franklin Street Parcel ID or Abstract 9788164037 Statement of Appeal: Request a reduction in value based on an income approach and a recent independent appraisal. Current Assessed Value $2,636,900 County Opinion $2,636,900 Time of Hearin 1:24 PM Appellant Opinion $450,000 County Representative Roger Gunn Board Decision $2,000,000 Evidence submitted by the appellant: • The subject is currently assessed at$2,636,900 ($176.50/square foot). The appellant is requesting a lower valuation based on the income approach for its current use as a paid public parking lot leased to the Town of Chapel Hill. The appellant also submitted an independent appraisal as of January 1, 2025 in which the property was valued at $1,880,000($125.84/square foot). Evidence submitted by the county representative: Docusign Envelope ID:056FE2E5-FAD3-473E-9E3E-E287COF06262 • Per the County's commercial property appraisal consultant review,the property is a parking lot in a very good W. Franklin Street location. It lays out well for development and the most likely purchaser would be a developer that would entitle the property for a multistory building. The owner has presented the income data as a parking lot,but the highest and best use is for development,and it has been assessed that way based on other development parcels. This property is more desirable than most development parcels given its location,frontage and depth and is assessed in the upper middle part of the range of sales values.No adjustment to the current value is supported. • Photograph of Subject • GIS Map of Subject • Current Property Record Card of Subject • Comparable Sales Motion of the Board Value Changed as Follows: $2,000,000 Made the motion Leon Meyers Seconded the motion Saru Salvi Voted For All BOER Members Voted Against ... Property Identification: Property OwnertDiane Harrell Trustee A ellant(if different) Joseph Riddle Property AddreW. Franklin Street Parcel ID or Abstract 9788165175 el Hill Statement of Appeal: Request a reduction in value based on an income approach and a recent independent appraisal. Current Assessed Value $2,268,000 County Opinion $2,268,000 Time of Hearin 2:18 PM Appellant Opinion $1,560,000 County Representative Roger Gunn Board Decision $2,000,000 Evidence submitted by the appellant: • The subject is currently assessed at$2,268,000 ($261.77/square foot). The appellant is requesting a lower valuation of$1,560,000($180.06/square foot)based on net operating income from 2021-2024 and the income approach. The appellant has also provided an independent appraisal as of January 1,2025 with an indicated value of $1,510,000($174.28)for the subject. Evidence submitted by the county representative: • The subject is an 8,664 square foot building currently used as an office building.Per the County's commercial property appraisal consultant review, although upfitted for office,this property has fantastic retail exposure and future retail use is certainly possible, if not probable,if it wasn't already upfit and leased for office use. • To help understand Capitalization Rates, a 10-year cap rate search in Chapel Hill and Carrboro for downtown cap rates and a separate sheet for Chapel Hill and Carrboro Docusign Envelope ID:056FE2E5-FAD3-473E-9E3E-E287COF06262 office cap rates has been provided. The County thinks it would be helpful to have a real historic perspective when considering office and retail capitalization rates. • In downtown,true smaller to midsize retail suites almost never get over 7%and the 10 year average is 6%. The most recent capitalization comparable is 5.35%. • Office rates in Chapel Hill/Carrboro over the past decade have averaged around 7% with 2023 and 2024 rates ranging from 6.5%to less than 8%with the majority under 7%. The assessor's sheet uses a capitalization rate of 6.5%. In fee simple,most market participants would lease this property on a triple net basis(expenses passed on to tenant), so the income approach for this property is modeled as such.No change in value is recommended. • Photograph of Subject • GIS Map of Subject • Current Property Record Card of Subject • Comparable Sales and Income Approach • Survey of Chapel Hill-Carrboro Downtown Capitalization Rates • Survey of Chapel Hill-Carrboro Office Capitalization Rates Motion of the Board Value Changed as Follows: 1 $2,000,000 Made the motion Leon Meyers Seconded the motion Saru Salvi Voted For All BOER Members Voted Against ... Property Identification: Property Owner Riddle Properties LLC Appellant(if different) Joseph Riddle Property Address 147 E. Franklin Street, Parcel ID or Abstract 9788378534 Cha el Hill Statement of Appeal: Request a reduction in value based on an income approach. Current Assessed Value $992,900 County Opinion $992,900 Time of Hearin 2:43 PM Appellant Opinion $812,500 County Representative Roger Gunn Board Decision $992,900 Evidence submitted by the appellant: • The subject is currently assessed at$992,900 ($267.34/square foot). The appellant is requesting a lower valuation of$812,500($218.77/square foot)based on the income approach given the property's net operating income over the last four years at an 8% capitalization rate. The appellant also states in his appeal, "Covid period killed restaurants and retail in Chapel Hill,haven't recovered yet.Also, Streets of Southpointe,Meadowmont„ and others are killing downtown. Students get most of their food on campus.University competing with downtown. We have struggled to collect rent. Your tax rate(highest in NC)is hurting business." Evidence submitted by the county representative: Docusign Envelope ID:056FE2E5-FAD3-473E-9E3E-E287COF06262 • Per the County's commercial property appraisal consultant review,it looks like the previous restaurant tenant,Dame's Chicken and Waffles, left and Voodoo Wings came in early 2025. So,the 2024 statement is for a partial year of rent. There is no information on what the new lease rate is,which would have been known at the time of the reassessment. There is a pretty big range of sales,but the assessed value is bracketed and supported by Sales Data. • Around 2,400 SF is on the first floor, and the rest is upstairs. It's a long deep space, which leads to some lower than typical rents. However,rents still point to a value higher than the assessed value,the premise that restaurants are dead on Franklin Street is outdated with Starbucks staying in downtown,Playa Bowl,Zaxby's etc. locating there. There was plenty of new leasing in 2024 including a new lease in this property. • No change in value is recommended. • Photograph of Subject • Location Map of Subject • Current Property Record Card of Subject • Comparable Sales and Income Approach • Survey of Chapel Hill-Carrboro Downtown Capitalization Rates • Survey of Chapel Hill-Carrboro Office Capitalization Rates Motion of the Board Accept Coun 's Proposed Value: $992,900 No Change in Value Made the motion Saru Salvi Seconded the motion Richal Vanhook Voted For All BOER Members Voted Against ... Property Identification: Property Owner Riddle Commercial Appellant(if different) Joseph Riddle Properties Inc. Property Address 108 E. Franklin Street, Parcel ID or Abstract 9788376242 Chapel Hill Statement of Appeal: Request a reduction in value based on an income approach and a recent independent appraisal. Current Assessed Value $16,324,000 County Opinion $13,712,100 Time of Hearin 2:58 PM Appellant Opinion $6,000,000 County Representative Roger Gunn Board Decision $11,500,000 Evidence submitted by the appellant: • The subject is currently assessed at$16,324,000($299.49/square foot). The appellant is requesting a lower valuation to $6,000,000($110.08/square foot)based on the income approach given the property's net operating income over the last two and vacancy being 25,414 square feet. The appellant has also provided an independent appraisal as of January 1,2025 that estimates the property's value at$9,720,000 $178.33/s uare foot). Docusign Envelope ID:056FE2E5-FAD3-473E-9E3E-E287COF06262 Evidence submitted by the county representative: • The subject is a 54,506 square foot retail,restaurant, and office building known locally as the Top of the Hill because of its well-established restaurant that bears that name. After reviewing the County's commercial real property appraiser consultant's analysis (attached),the county recommends applying an E 16 economic modifier to the property which would reduce its overall value to $13,712,100. • Photographs of Subject(Front and Side Views) • GIS Map of Subject • Current Property Record Card of Subject(12 pages) • Commercial Real Property Appraisal Consultant's Analysis(6 pages) • Proposed Property Record Card of Subject(12 pages) • Survey of Chapel Hill-Carrboro Downtown Capitalization Rates • Survey of Chapel Hill-Carrboro Office Capitalization Rates Motion of the Board Value Changed as Follows: 1 $11,500,000 Made the motion Leon Meyers Seconded the motion Saru Salvi Voted For All BOER Members Voted Against ... Chair of the d signed by: Leon Meyers U 9/29/2025 Recording Secr �cu6igned by: Jennifer Rig K� SWA_ R8889oe€s�t� 9/29/2025