Case Study: South Texas Distribution
A property was sold as part of a portfolio at an allocated sale price of $61 million. The assessor acknowledged the property’s value based on the allocated sale price.
Costar didn’t help our case while citing a property purchase value. However, the challenge arose in negotiating with the assessor to minimize the year-over-year (YoY) property valuation increase, aiming for the lowest increase in the past five years.
To address this challenge, we capitalized on our extensive working relationships, particularly with the head of Industrial at the South Texas county appraisal district. With a 12-year working relationship with this gentleman, we utilized our established rapport to initiate negotiations. Additionally, we enlisted the expertise of a specific appraiser who had previously worked with the county, both as an expert witness for them in litigation cases. By engaging in open dialogue and leveraging our expert’s understanding of the appraisal process, we aimed to find common ground and achieve favorable outcomes.
Through strategic negotiations and the combined efforts of our team, we were able to secure a remarkable outcome for our client. Initially, the property values faced a staggering 52% YoY increase. However, utilizing our relationships, expert appraiser, and effective communication, we successfully achieved a substantial reduction. Ultimately, the property valuation increase for our client amounted to just 3.7% YoY, despite it being a sale year. This significant reduction in the increase provided our client with considerable savings and ensured a more favorable financial outcome.