HomeMy WebLinkAbout20132103August 8, 2013
CLERK TO THE BOARD
PHONE (970) 336-7215, EXT 4226
FAX (970) 352-0242
WEBSITE: www.co.weld.co.us
1150 O STREET
P.O. BOX 758
GREELEY CO 80632
KASSITY-LOWELL ERIE LLC
C/O WALGREEN CO REAL ESTATE PROP TAX
PO BOX 1159
DEERFIELD, IL 60015
RE: THE BOARD OF EQUALIZATION 2013, WELD COUNTY COLORADO
APPROVAL OF STIPULATION BETWEEN PETITIONER AND ASSESSOR
ACCOUNT NO.: R5341708
Dear Petitioner:
On August 01, 2013, the Board of County Commissioners of Weld County Colorado
convened and acting as the Board of Equalization, pursuant to C.R.S. Section 39-8-101 et seq.,
considered your request to approve and adopt a valuation of your property arrived at by a
Stipulation between you and the Weld County Assessor, for the year 2013.
The Board of Equalization found that the evidence presented at the hearing supported the
stipulated value placed upon the above -described property as set forth below. Such evidence
indicated the value was reasonable, equitable, and derived according to the methodologies,
percentages, figures and formulas dictated by law.
ACTUAL VALUE AS STIPULATED VALUE
DETERMINED BY ASSESSOR APPROVED BY BOARD
$4,827,015.00 $2,175,759.00
The above 'Stipulated Value' is the value which will be used in the calculation of your property
taxes for 2013. This value is not appealable.
If you have questions concerning the above information, please call me at (970) 336-7215,
Ext. 4226.
Very truly yours,
Esther E. Gesick, Deputy Clerk
Weld County Board of County Commissioners
Cc: Christopher Woodruff, Weld County Assessor
STERLING PROPERTY TAX SPECIALISTS INC
950 S CHERRY ST SUITE 320
DENVER, CO 80246
CC: ' 8 (�
2013-2103
AS0085
COUNTY BOARD OF EQUALIZATION
WELD COUNTY
Single County Schedule Number R5341708
STIPULATION (As To Tax Year_2013_ Actual Value)
RE PETITION OF :
NAME: KA.SSITY-LOWELL ERIE LLC
ADDRESS: 490 Erie Pkwy
Erie CO
29 2,0,'B
Nest
°vas. .. 1d Cm
Petitioner (s) and the Weld County Assessor hereby enter into this Stipulation
regarding the tax year 2013 valuation of the subject property, and jointly move the Board
of Equalization to enter its order based on this Stipulation.
Petitioner (s) and Assessor agree and stipulate as follows:
1. The property subject to this Stipulation is described as:
L10 COAL CREEK CENTER
2. The subject property is classified as Commercial property.
3. The County Assessor originally assigned the following actual value to the
subject property for the tax year 2013:
Total $4,827,015.00
4. After further review and negotiation, Petitioner (s) and Weld County Assessor
agree to the following tax year 2013 actual value for the subject property:
Total $2,175,759.00
5. The valuation, as established above, shall be binding only with respect to tax
year 2013.
6. Brief narrative as to why the reduction was made:
Value of goodwill established by BAA decision.
7. Both parties agree that:
®The hearing scheduled before the Board of Equalization on 7/30/2013 at
11:00 AM be vacated.
DA hearing has not yet been scheduled before the Board of Equalization.
R5341708
1
2013-2103
ATED 23 day of July, 2013.
Pet ioner(s)g Agent or Attorney
Address:
47151 S. at/7,1St•
-
S ✓,t 3 2O kl
�V 'Q,nv-v i C.6 g 02-'t (o
Telephone: -3 ,- N.er—
Docket Number n/a
Stip-1.Frm
("Assistt) Coun Attorney for
Respondent, Weld County Board of
Commissioners
Address:
1150 "O" Street
P.O. Box 758
Greeley, CO 80632
Telephone: 970) 336-7235
ce,,a
County Assessor
Address:
1400 N.17th Avenue
Greeley, CO 80631
Telephone: (970) 353-3845 ext. 3697
R5341708
2
7/: u6
NOTICE OF DETERMINATION
Christopher M. Woodruff
Weld County Assessor
1400 N 17th Ave
Greeley, CO 80631
ACCOUNT NO.
TAX YEAR
TAX AREA
LEGAL DESCRIPTION/ PHYSICAL LOCATION
R5341708
2013
1333
L10 COAL CREEK CENTER 490 ERIE PKWY ERIE,
CO
PROPERTY OWNER
KASSITY-LOWELL ERIE LLC
C/O WALGREEN CO REAL ESTATE PROP TAX
PO BOX 1159
DEERFIELD, IL 60015
PROPERTY CLASSIFICATION
ASSESSOR'S VALUATION
ACTUAL VALUE PRIOR TO
REVIEW
ACTUAL VALUE AFTER
REVIEW
COMMERCIAL
4,827,015
4,827,015
TOTAL
$4,827,015
$4,827,015
The Assessor has carefully studied all available information, giving particular attention to the
specifics included on your protest. The Assessor's determination of value after review is based on
the following:
CM05 - The law requires that all of 2011 and the first 6 months of 2012 data be used to establish
current values. We have considered all (3) three approaches to value in arriving at your current
valuation. We have denied your appeal based upon this data.
If you disagree with the Assessor's decision, you have the right to appeal to the County
Board of Equalization for further consideration, § 39-8-106(1)(a), C.R.R.
The deadline for filing real property appeals is July 15.
The Assessor establishes property values. The local taxing authorities (county, school district, city,
fire protection, and other special districts) set mill levies. The mill levy requested by each taxing
authority is based on a projected budget and the property tax revenue required to adequately fund
the services it provides to its taxpayers. The local taxing authorities hold budget hearings in the fall.
If you are concerned about mill levies, we recommend that you attend these budget hearings.
Please refer to last year's tax bill or ask your Assessor for a listing of the local taxing authorities.
Please refer to the reverse side of this notice for additional information.
Date of Notice: 6/27/2013
Telephone: (970) 353-3845
Fax: (970) 304-6433
Office Hours: 8:00 AM - 5:00 PM
STERLING PROPERTY TAX SPECIALISTS INC
950 S CHERRY ST SUITE 320
DENVER, CO 80246
RECEIVED
JUL 172013
WELD COUNTY
COMMISSIONERS
15-DPT-AR
PR 207-08113
R5341708 17327
APPEAL PROCEDURES
County Board of Equalization Hearings will be held from
July 1 through August 5 at 1400 N 17 AVE.
To appeal the Assessor's decision, complete the Petition to the County Board of Equalization shown
below, and mail or deliver a copy of both sides of this form to:
Weld County Board of Equalization
1150 O Street, P.O. Box 758
Greeley, CO 80631
Telephone: (970) 356-4000 ext, 4225
To preserve your appeal rights, your Petition to the County Board of Equalization must be
postmarked or delivered on or before July 15 for real property — after such date, your right to
appeal is lost. You may be required to prove that you filed a timely appeal; therefore, we
recommend that all correspondence be mailed with proof of mailing.
You will be notified of the date and time scheduled for your hearing. The County Board of
Equalization must mail a written decision to you within five business days following the date of the
decision. The County Board of Equalization must conclude hearings and render decisions by August
5, § 39-8-107(2), C.R.S. If you do not receive a decision from the County Board of Equalization and
you wish to continue your appeal, you must file an appeal with the Board of Assessment Appeals by
September 12, § 39-2-125(1)(e), C.R.S.
If you are dissatisfied with the County Board of Equalization's decision and you wish to continue your
appeal, you must appeal within 30 days of the date of the County Board's written decision to ONE of
the following:
Board of Assessment Appeals District Court
1313 Sherman Street, Room 315 Contact the District Court in the County
Denver, CO 80203 where the property is located. See your
(303) 866-5880 local telephone book for the address and
www.dola.colorado.qov/baa telephone number.
Binding Arbitration
For a list of arbitrators, contact the County Commissioners at the address listed for the County Board
of Equalization.
If the date for filing any report, schedule, claim, tax return, statement, remittance, or other document
falls upon a Saturday, Sunday, or legal holiday, it shall be deemed to have been timely filed if filed
on the next business day, § 39-1-120(3), C.R.S.
I PETITION TO COUNTY BOARD OF EQUALIZATION
What is your estimate of the property's value as of June 30, 2012? (Your opinion of value in terms of a
specific dollar amount is required for real property pursuant to § 39-8-106(1.5), C.R.S.)
$ 11/15, Soo
What is the basis for your estimate of value or your reason for requesting a review? (Please attach
additional sheets as necessary and any supporting documentation, i.e., comparable sales, rent roll, original
installed cost, appraisal, etc.) SeiC JO11
ATTESTATION
I, the undersigned owner or agent
of the property identified above, affirm that the statements contained
h in and on any att hments hereto are true and complete. /
�Z! 303-161 -88�� Y/g f l3
Sig natu a Telephone Number Dateeelll
i'Yidoc iiYJ jV jldols-caifa
Email
239 Attach letter of authorization signed by property owner.
Address
15-DPT-AR
PR 207-08/13
R5341708 17327
PROPERTY TAX SPFCIALISTS. INC.
May 15, 2013
Mr. Christopher M. Woodruff
Weld County Assessor
1400 N. 17th Avenue
Greeley, CO 80631
RE: Walgreens located in Weld County. See Schedule Numbers set forth on Exhibit A
attached hereto and made an integral part hereof (the "Property")
Dear Assessor:
95o S. Cherry Street
Suite 320
Denver, CO 80246
303.757.8865
fax 303.757.7691
www.sterlingpts.com
The undersigned, Sterling Property Tax Specialists, Inc., represents the single tenant user of the
Property for the purpose of protesting the 2013 Notices of Valuation of all Walgreens set forth
on Exhibit A attached hereto. A copy of the Letter of Authorization is attached hereto and made
an integral part hereof. Only the schedule numbers set forth on Exhibit A are being protested
hereunder.
The Property consists of seven "build -to -suit" freestanding Walgreens Drug Stores ranging in
size between 13,000 square feet to 15,000 square feet. Properties of this type have built-in
obsolescence because they were built and designed to meet the needs of a specific single user,
rather than the needs of a variety of users. This also limits the Properties' market potential and
when compared with other 10,000 square feet to 20,000 square feet properties with mass
market potential, the subject Properties' values are overstated.
The typical retail property utilizes street level window exposure for marketing of merchandise;
however the windows in the subject Properties are three to four feet above street level.
Therefore, the Properties' flexibility to other users as a conversion retail property also limits the
market value of the subject Properties.
Most generic retail spaces in the 10,000 square feet to 20,000 square feet range have a larger
number of potential tenants. This is not true for the subject Properties due to the unique design
and size specifications for this particular single user. The square foot size range does not fit the
needs of other single tenant users in the market place. The space is either too large or too
small, which limits its market potential.
The general layout of the Properties also presents complications for any potential typical retail
user. Set within the center of a one to two acre land parcel, the parking layout is designed to
accommodate only a single tenant, with only one ideal entrance to the building. A property of
this size is too large for the typical single -tenant retailer. The space would better accommodate
two smaller users. This parking layout, as well as the single entrance potential, creates an
inflexible design for a multi -tenant use. Additionally, there is only one loading area. In order for
Walgreens located in Weld County
Page 2
the Properties to be marketable to the typical retail user, substantial renovations would have to
be implemented at an uneconomical cost.
The Assessor's current values are examples of use value and investment value, rather than
market value. The Assessor's Property values reflect the subjective relationship between
investors and investments, and the value a specific property has for a specific user. The
Property is subject to "build -to -suit" arrangements that include the following:
1. The percentage of development cost is pre -arranged (rent -to -cost ratio).
2. The lease is never negotiated on the open market.
3. The developer acts as a construction and financing arm of the user.
The Assessor, for calendar year 2013, has substantially increased the value of each of these
Walgreens stores from approximately $276 per square foot to $335 per square foot. Certainly
nothing has changed in the marketplace from the previous base year and based on the
information set forth below, Petitioner contends the Assessor has erroneously increased the
market value of the real estate involved in these seven parcels.
Therefore, we have performed a market derived triple net income approach relative to a retail
user of this size. We believe the income approach set out below applicable to these seven
Walgreens stores reflects the high -end range of the Properties' values.
Attached hereto as Exhibit B is a portion of the CoStar report for mid -year 2012. The rental rate,
mostly for multi -tenant retail space, ranges from $10.79 per square foot to $12.71 per square
foot for the Longmont retail; North outlying retail; and Northeast retail. We have utilized a $15
per square foot market rental rate and also utilized an 8% vacancy allowance for this base
period. As these are based on triple net rents, we have allocated 5% for operating expenses.
We have also used an overall capitalization rate of 8.75%.
Attached hereto as Exhibit C is a recent Board of Assessment Appeals decision relating to a
14,490 square foot Walgreens store built in 2002. As reflected in the decision of the Board of
Assessment Appeals relating to this 2002 Walgreens, the Board applied a market rent of $15 per
square foot for the base period of June 30, 2010. The concluded value of $152 per square foot
is similar to the requested values set forth below by Petitioner for its 2013 Walgreens store
values. The Arapahoe County Board of Equalization has appealed this case to the Colorado
Court of Appeals. The appeal is based on the legal issue of valuation of this property based on a
specific user only and not based upon the general market value of the real estate as a general
retail property. The Board of Assessment Appeals as trier of fact rejected the Board of
Equalization's argument and did not acknowledge that the value should be based on a sale -
leaseback value. We believe Weld County generally does not follow specific user approach
based on non -market sale -leaseback transactions, therefore, we believe the Board of
Assessment Appeals, as trier of fact, correctly interpreted the valuation of these types of
properties.
Walgreens located in Weld County
Page 3
Our income approach for each of these seven Walgreens is as follows:
Potential Gross Income
Vacancy (8%)
Effective Gross Income
Operating Expenses (5%)
Net Operating Income
Capitalization Rate
Property Value
$ 15.00 per square foot
5 1.20 per square foot
$ 13.80 per square foot
$ 0.69 per square foot
$_.31__Iipersquarefoot
8.75%
$ 151 per square foot (rounded)
Petitioner is aware of only two Weld county sales of larger retail parcels not involving the sales -
leaseback transactions reflecting above market rental rates that occurred in Weld County during
the base period. One was a 10,402 square foot building at 2733 8th Avenue in Greeley which
sold on January 3, 2011, for $52.54 per square foot. The second is an auto dealership with
18,714 square feet of improvements, but on substantially larger land square footage, which sold
on May 11, 2011 for $98.05 per square foot. This was located at 1015 Champion Drive in
Windsor, Colorado. As reflected in the decisions of the Board of Assessment Appeals, non -arms
length sales of Walgreens stores need such major adjustments that the Walgreens sales do not
reflect market value of the real estate. The requested value of $151 per square foot is
substantially higher than the two sales and in line with previous valuations set by Weld County
for the subject parcels.
Based upon the foregoing, Petitioner hereby requests the Assessor adjust the value for the
Property for calendar year 2013 for the seven parcels to $151 per square foot. Petitioner's
requested value for each parcel is set forth on Exhibit A attached hereto and made an integral
part hereof.
All information contained herein should be considered confidential and not available to any
third parties.
Sincerely,
STERLING PROPERTY TAX SPECIALISTS, INC.
By:
delett-
Barry J. Goldstein, President
LETTER OF AUTHORIZATION
June 3, 2013
Sterling Property Tax Specialists, Inc.
950 South Cherry Street, Suite 320
Denver, Colorado 80246
RE: 2013 and 2014 Property Tax Assessment Matters
Gentlemen:
The undersigned, as owner(s) of property located in Weld County, Colorado, at 1480
Main Street, and more particularly described on Assessor's Notice of Valuation,
Schedule No(s). R2569303 hereby authorizes Sterling Property Tax Specialists, Inc. and
Barry J. Goldstein, Esq., to act as agent on my behalf regarding all 2013 and 2014
property tax assessment matters, and obtain any and all documents relating thereto and
file any protests necessary. This Authorization shall be effective as of the date set forth
above.
MCR Farnsworth, LLC
By:
Printed
Title:
Telephone: 847-527-4418
'r-,1 1 1..+ 7 . 1 f.
There's a way"
LETTER OF AUTHORIZATION
April 19, 2013
Sterling Property Tax Specialists, Inc.
950 South Cherry Street, Suite 320
Denver, Colorado 80246
RE: 2013 and 2014 Property Tax Assessment Matters
Gentlemen:
The undersigned, as owner, or Lessee entitled to protest the valuation of the Property
under our lease, located in Weld County, Colorado, at See Attached, and more
particularly described on Assessor's Notice of Valuation, Schedule No(s). See Attached
hereby authorizes Sterling Property Tax Specialists, Inc. and Barry J. Goldstein, Esq., to
act as agent on my behalf regarding all 2013 and 2014 property tax assessment matters,
and obtain any and all documents relating thereto and file any protests necessary. This
Authorization shall be effective as of the date set forth above.
WALGREEN COMPANY
By: Anna Pelts, Real Estate Tax Administrator
Telephone: 847-527-4418
Walgreen Co. • 300 Wilmot Road • Deerfield, IL 60015
www.walgreens.com
rrhFi tg4Twa —
Weld County
2013 / 2014
1641 23rd Ave R3919505
1641 23rd Ave R3919605
1480 Main Street R2569303
3700 35th Avenue R2682304
3700 W 10th Street R2941404
5962 Firestone Blvd 83846705
2600 11th Ave R4696707
NEC of Mountain View & Hwy 7 R6775936
490 Erie Parkway R5341708
Walgreen Co. • 300 Wilmot Road • Deerfield, IL 60015
www.walgreens.com
Property Address
Walgreens
Protested Parcels
Weld County
2013
Petitioner's Exhibit A
Schedule Value @ $151 per sq.
Numbers Square Footage ft. (rounded)
1641 23 Ave.
3700 35 Ave.
1480 Main St.
3700 10 St.
5962 Firestone Blvd.
2600 11th Ave.
490 Eire Parkway
R3919605
R2682304
R2569303
R2941404
R3846705
R4696707
R5341708
14,406 $2,175,300
14,744 $?226.300
14,488 $2,187,700
14,736 $2,225,100
14,739 $2225,600
13,625 $2,057,400
14,409 $2,175,800
YE
RETAIL MARKET
GENERAL RETAIL MARKET STATISTICS
Aurora Ret 368 3,766.915 155,754 155,754 4.1% 27,350 0
Boulder Ret 320 3,509,132 143,738 159414 4592 281
Central ket
Colorado BI/Cherry Ck Ret 206 1,791,546 32920 38.920 2.2% 11,660 0
Downtown Ret 262 4,102.539 61,639 61,639 1.5% (12691) 0
Longmont Ret 341 2,946,650 133,042 137,468 4.7% (5,900) 0 0 812.71 i--
North Outlying Ret 135 917,670 26,846 26,846 2.9% (14,601) 0 0 510.75
Northeast ket 711 5,201 726 261,843 273,820 5.3% 45,693 17722 15,066 311.85
Northern Colorado Ret 1,573 12_,741,564 1,016 809 1,019,509 8.0% (4935) 0 400
Northwest Ret 852 8,72_9,332_ 421,579 482,164 5.5% (11435) 3,390 5,700
1,783 12_,050967 371,037 371,037 3.1 % 1,631
0
2,134
CnSTat
Mid -Year 2012
44 763
11,467
1,624
11,900
0
511.63
520.36
314.87
523.88
$1940
South ket 406 5,560,543 122,663 12_5,649 2.3% (24,336) 0 211,838
Southeast Outlying Ret 209 1,382,044 38,978 40,278 2.9% 4,314 0 0
Southeast Ret 323 4,265.580 275,182 275,182 6.5% (25.543) 0 0
Southwest Outlying Ret 87 502,107 24,348 24,348 4.8% 652 0 (3
__._...._... _..._. .. .. ...tent __._. _..__.._.._....�-- .— ___......__._—_..._�_..
Southwest Ret 196 2,247,573 6 71 62,371 2.8% (1,736) 0 0
_._.., ..__ ..._...... _.. _ ___ `"'.. _060 42_3 577,083 5 5 263. 73V _6.6% ^'(36.617) 3.949 ry .._..._._
West Ret t 438 9,�9 9,636
-Totals . +' 9.210 I... 78,776,711 -i 3,733,832 I "3;1349,662
Source: Ca3u, F,oeertyP'
MALL MARKET STATISTICS
4.9%{ -:£46,013)1 x: 27195 tt
510.49
$11.97
$14.84
$15.77
$18.13
514.90
314.36
$9.53
312:594.x1 513.30,
Mid -Year 2012
Maistinganuentow valet 7333 3lader Am�ed
-4113aa '.Tmatt A lluf[G3F 7yp13F liar= ' eletesies ""' I tSF
Aurora Ret 1 1084,453. 0 0 0,0%' 0 0 0 50.00
Boulder Ret 1 716,230 12413 25,513 3 6 7,747 0 0 523.59
Central ket 1 724,8__ 9,508 9,508 13% 6,592 0 0 32025
Colorado BI/Cherry a Ret 1 1,177 400 0 0 0 0% 0 0 0 $0.00
Downtown Ret 0 0 0 0 0 0% 0 0 0 $0.00
_._. __..�.._ .. _teen_ .. __....._ __...__._ __.___. _.. _.__ ..... ._.,._.__._.
Longmont Ret 1 462,653 81,886 81,88 ,6 17 % 0 0 0 5_0.00
North Outlying Ret 0 0 0 0 0 0% 0 0 0 $0.00
. _ .tent._ ..._.__.. _.__. _... ..__ ._. ____. _. ___.,,.,.. _. __.,
Northeast Ret 1 1,148,615 136,184 136164 11 9% 5,290 0 0 522_.50
Northern Colorado Ret 4 2792,678 2_38,714 2_38714 85% 9,690 0 0 520.73
Northwest Ret 3 2 626,250 418,569 418,569 15.9% (145,698) 0 25,000 311.00
nett ... .._._ _ ..,._ .. _., _.,. .. .. .,_. ._..... -
SouthRet 3 2,906,650 115,700 117,195 4.0% 28123 0 0 530.80
Southeast Outlying Ret 1 202,683 4,999 4,999 2 5% 0 0 0 319.36
Soutneast Ret 1 1,435,081 95,303 95,303 6 6% 3,973 0 0 $0.00
Southwest Outlying Ret 0 0 0 0 0.0% 0 0 0 40.00
Southwest Ret 1 1 483,079 219,580 219,580 14,8% (27 687) 0.. 0 511 42
West ket 2 _,313,910.. 2,533 _.. 23,696 10% 1,000 0.. 0 520.50
Totals
Source Caner Royer -1O
21 I 19,074,534 1 1,335.389 I 1.371,147
7.2%1 (110,970)1
0 f 25,000 1 521-27
r,?012 COSTAR GROUP, INC.
THE COSTAR RETAIL REPORT
9
UDC_ 770 d- - 6(0
BOARD OF ASSESSMENT APPEAT S,
STATE OF COLORADO
1313 Sherivan Street, Room 315
Denver, Colorado 80203
Petitioner:
OBK AURORA LLC,
v.
Respondent:
ARAP A HOE COUNTY BOARD OF
EQUALIZATION.
Docket Nos.:
60205 Sr 60966
PETITIONER'S
EXHIBIT
C
ORDER
THIS MATTER was heard by the Board of Assessment Appeals on October 15; 201?,
Diane M. DeVries and Brooke B. Leer presiding. Petitioner was represented by Kendra L.
Goldstein, Esq. Respondent was represented by George Rosenberg, 'Esq. Petitioner is protesting
the 2011 actual value of the subject property.
The actual value conclusion for 2011 will also be applied for the 2012 tax year. The
testimony and exhibits presented at the hearing of Dockets 60I96, 60960; 60202 and 60968 on
September 24, 2012 are incorporated as evidence herein.
Subject property is described as follows:
18620 East IIiff Avenue, City of Aurora, Arapahoe County, CO
Arapahoe County Schedule No, 1975-27-2-18-001
The subject property is a nee -standing, single -tenant, concrete and mvsonry retail
building. It is leased by Walgreens. The. building has one level, contains 14,490 square feet, and
was built in 2002.
Petitioner is requesting an actual value of S2,130,000 for the subject property for tax
years 3011 and 2012. Respondent assigned a value of $3,155,000: This value is the maximum
value determined by Respondent at the County Board of Equalization. Respondent's appraisal
presented at the hewing had a higher value conclusion of $3,300,000. The Board has addressed
the differences in the valuation procedures used by Petitioner and Respondent and selected the
60205 & 60966
method of analy-ls that the Board finds to be the most appropriate for ad valorem purposes, for
the subject's property type.
Petitioner's expert witness, Christopher N. Baker, Mid and Certified General appraiser,
appraised the subject property with a June 30, 2010 valuation date. He appraised the fee simple
estate applying all three approaches to value. He concluded the highes≤ and best use of the
subject as continued current retail -related use.
Petitioner's appraiser presented the income capitalization approach and used rental data
from two former `vi'aliireens stores offered for lease at $15.00 (Comparable 1) and $16.00
(Comparable 2) per square foot, one located on Parker Road in Aurora and the other in west
Denver on Colfax. The other rental data presented (specifically, Comparables 3 and 4) were
south and east of the subject but in relatively similar areas to the subject. The base rental rates
were $13.50 and $14.00 per square foot for national credit tenants. On page 40 of Petitioner's
report there is a table containing specific rent information for national credit tenants. The better
comparable rents to the subject from this table are ones built between 2003 and 200£, in the
12,000 to 20,000 square foot range and in Aurora. The base rents, applying these parameters,
range from $12.00 to $15.00 per square foot, rounded. Petitioner applied a market rent of $1100
per square foot to the subject building. The Board concludes the market rent applied at $15.00
per square foot is reasonable based on the market rents referred to in Aurora. Petitioner applied a
vacancy rate at 8%. Some minimal deductions for managemen* and replacement reserves are
appropriate as applied.
Petitioner's witness also presented the sales comparison approach to value the subject
Three retail sales used were in different areas than the subject and ranged from $136.17 to
$174.75 per square foot. Two listings were presented, one of a former Waigreens and the other
of an Office Depot store, ranging from $151.41 to $159.98 per square foot. After adjustments
were made, the sales,/listings ranged from $136.17 to $157.28. Although outside of the subject
area, Comparables 3, 4 and 5 are located in similar areas and have demographics comparable to
the subject. The Board concludes that the value range applied by Petitioner's appraiser to the
subject by the sales comparison approach at $140.00 to £145.00 is low and will be compared to
the income capitali^ation approach conclusions.
Petitioner's appraiser also prepared a cost approach to value the subject but indicated it
was not weighted in the conclusion of value.
Respondent's appraiser and expert witness, Gary 7. Mycoth, Certified General Appraiser
and an employee of the Arapahoe County Assessor's Office, appraised the fee simple estate of
the subject property with an effective appraisal date of June 30, 2010. The appraiser applied all
three approaches to value the subject property. Mr. Mycock's conclusion of the highest and best
use of the subject property is a free standing retail drug store.
In the analysis presented, the data used in general was reflective of the value for a
Waigreens store, based primarily on data from other Walgreens facilities. The actual rental data
from other Walgreens stores was applied in the income capitalization approach with adjustments.
The sales of other operating Walgreens facilities were used, with the above market rents in place
66205 & 60966
2
at the time of sale, and adjustments were applied to reflect a fee simple interest rather than the
leased fee interest.
Respondent's valuation presumes that the subject property will likely continue as a
drugstore and the data from other drugstores, with adjustments, that reflect the fee simple
interest, should be the primary data used to value the subject property.
Respondent's appraiser prepared a cost approach and suggested it had some validity in
concluding a final value estimate because of the relatively recent year of construction in 2002
and because about 50% of the value was in the land.
The Board concludes that the adjustments to the Walgreens sales and rents for a leased
fee interest should be significant enough to be reflective of what other well -located retail
facilities are being sold and rented for in the open market. The subject location caters to a
national credit retail user. Sales and leases of drugstores to other drugstore users in the subject
area would be the ideal data to use in the valuation of the subject; no such sales or leases were
presented for the Board's • consideration. The testimony of Ms. Anna Pelts, a Walgreens
employee and witness for Petitioner, indicated that drugstores _generally do not sell or lease to
other drugstore users in Colorado. She testified that most sales and lease agreements involving
Walgreens facilities restrict sales to a similar user.
The Board concludes that the market for the subject, if available in the open market for
sale or lease as of June 30, 2010, would be to a single tenant retail user, which is reflective of the
existing use. Some adaptations may be necessary to the subject to attract a different user. Sales
and rental data from other free-standing retail facilities in the subject area would be the most
helpful in valuing the fee simple interest of the subject. Such sales are necessary to use in
adjusting the above market lease in place to a market rent. The Walgreens lease is based on the
cost to build and represents a leased fee interest. The rents from other good quality facilities in
similar areas would be appropriate to use to estimate market rent and derive a fee. simple interest
for the subject.
The adjustments applied to the sales, rents and costs in Respondent's appraisal report
were not sufficient enough to be reflective of what the general retail user would be willing to pay
for the subject property. The Board finds that the conclusion of $3,300,000 from Respondent's
appraisal report overstates the fee simple market value of the subject for the 2011 and 2012
valuation years.
The Board has placed the most weight in valuing tha subject property for ad valorem
purposes on the data presented in Petitioner's appraisal report. The rental data specifically is
generally reflective of the subject location and surrounding demographics in the area. The
market rental data for the Aurora and Southeast areas from the CBRE report suggests an average
asking rental rate in Aurora (subject area) for the second quarter of 2010 of $13.58 per square
foot and in the Southeast area of $16.27 per square foot. The vacancy percentage in Aurora is
125% for this time period. The Board concludes that the rental rate at $15.00 is reasonable for
the subject with a vacancy rate of 7%; slightly less than the 8% applied by Petitioner.
60205 & 60966
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The Board considered and read both articles presented at the September 24, 2012 hearing,
Petitioner's Exhibit C, and Respondent's Exhibit 1, Addendum F. The Board also accepted
Petitioner's data related to equalization in valuation, however no testimony was allowed
concerning it. The Board had indicated to both parties, that the Board would determine what
weight would be given to the data. The Board concluded that sufficient information was
provided to reach the decision of a fee simple value for the subject and no weight was given to
the equalization data.
The Board concluded that the highest and best use of the subject property, if exposed on
the open market, with a willing buyer and seller, would be to develop the property with a free
standing retail building that is attractive to a national credit tenant. The most important factors
in valuing the property are the market data in the subject area, actual rents and sales.
To -estimate a fee simple market value of the subject property as of Tune 30, 2010, the
Board applied the following values using the income capitalization approach:
Market rent- $15
Vacancy rate- 7%
Management fee- 3%
Reserves- $-10 per square foot
Capitalization rate- 8.5%-9.0%
The data above suggested a value range of $149.00 to $158.00 per square foot for the
subje : property.
The sales data range presented by Petitioner's appraiser in the sales comparison approach
was front $140.00 to $145.00 per square foot which the Board concluded was low.
The Board concludes a subject value based on the parameters from the income
capitalization approach at $152.00 per square foot. This value applied to the subject's 14,490
Square, feet indicates a fee simple market value of $2,202,480.
ORDER:
Respondent is ordered to reduce the 2011 and 2012 actual value of the subject property to
$2.202,480. The Arapahos County Assessor's Office is directed to change their records
accordingly.
APPEAL:
If the decision of the Board is against Petitioner, Petitioner may petition the Court of
Appeals for judicial review according to the Colorado appellate rifles and the provisions of
Section 24-4-106(11), C.R.S. (commenced by the filing of a notice of appeal with the Court of
Appeals within forty-five days after the date of the service of the final order entered).
6020.5 & 60966
4
If the decision of the Board is against Respondent, Respondent, upon the
recommendation of the Board that it either is a matter of statewide concern or has resulted in a
sianificant decrease in the total vahuation of the respondent county, may petition the Court of
Appeals for judicial review according to the Colorado appellate rules 9nd the provisions of
Section 24-4-106(11), C.R.S. (commenced by the fling of a notice of appeal with the Court of
Appeals within forty-five days after the date of the service of the final order entered).
In addition, if the decision of the Board is against Respondent, Respondent may petition
the Court of Appeals for judicial review of alleged procedural errors or errors of law within thirty
days of such decision when Respondent alleges procedural errors or errors of law by the Board.
If the Board does not recommend its decision to be a matter of statewide concern or to
have resulted in a significant decrease in the total valuation of the respondent county,
Respondent may petition the Court of Appeals for judicial review of such questions within thirty
days of such decision.
Section 39-8-108(2), C.R.S.
DATED and M4TT,ED this 21st day ofNovember, 2012.
BOARD OF ASSESSMENT APPEALS
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Brooke B. Leer
I hereby certify that this is a true
and correct copy of the deci
the. -Be d of Assessment Appeal
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60205 & 60966
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PROPERTY TAX SPECIAIISTS. INC_
95o S. Cherry Street
Suite 320
Denver, CO 80246
Weld County Board of Equalization
c/o Weld County Assessor
1400 N. 17th Avenue
Greeley, CO 80631
TFP STATES
POSTAL SEP VICE
1000
80631
V
RETURN RECEIPT
REQUESTED
U.S. POSTAGE
PAID
DENVER. CO
80246
JUL 15.'13
AMOUNT
$7.17
00075155-10
July 22, 2013
CLERK TO THE BOARD
PHONE (970) 336-7215, EXT 4226
FAX (970) 352-0242
WEBSITE: www.co.weld.co.us
1150 O STREET
P.O. BOX 758
GREELEY CO 80632
KASSITY-LOWELL ERIE LLC
C/O WALGREEN CO REAL ESTATE PROP TAX
PO BOX 1159
DEERFIELD, IL 60015
Account No.: R5341708
Dear Petitioner(s):
The Weld County Board of Equalization has set a date of July 30, 2013, at or about the hour of
11:00 AM, to hold a hearing on your valuation for assessment. This hearing will be held at the
Weld County Administration Building, Assembly Room, 1150 O Street, Greeley, Colorado.
You have a right to attend this hearing and present evidence in support of your petition. The
Weld County Assessor or his designee will be present. The Board will make its decision on the
basis of the record made at the aforementioned hearing, as well as your petition, so it would be in
your interest to have a representative present. If you plan to be represented by an agent or an
attorney at your hearing, prior to the hearing you shall provide, in writing to the Clerk to the
Board's Office, an authorization for the agent or attorney to represent you. If you do not choose
to attend this hearing, a decision will still be made by the Board by the close of business on
August 5, 2013, and mailed to you on or before August 12, 2013.
Because of the volume of cases before the Board of Equalization, most cases shall be limited to
10 minutes. Also due to volume, cases cannot be rescheduled. It is imperative that you
provide evidence to support your position. This may include evidence that similar homes in your
area are valued less than yours or you are being assessed on improvements you do not have.
Please note: The fact that your valuation has increased cannot be your sole basis of
appeal. Without documented evidence as indicated above, the Board will have no choice but to
deny your appeal.
If you wish to obtain the data supporting the Assessor's valuation of your property, please submit
a written request directly to the Assessor's Office by fax (970) 304-6433, or if you have questions,
call (970) 353-3845. Upon receipt of your written request, the Assessor will notify you of the
estimated cost of providing such information. Payment must be made prior to the Assessor
providing such information, at which time the Assessor will make the data available within three
(3) working days, subject to any confidentiality requirements.
AS0085
KASSITY-LOWELL ERIE LLC - R5341708
Page 2
Please advise me if you decide not to keep your appointment as scheduled. If you need any
additional information, please call me at your convenience.
Very truly yours,
BOARD OF EQUALIZATION
Esther E. Gesick
Deputy Clerk to the Board
cc: Christopher Woodruff, Assessor
STERLING PROPERTY TAX SPECIALISTS INC
950 S CHERRY ST SUITE 320
DENVER, CO 80246
AS0085
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