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HomeMy WebLinkAbout20091850.tiff‘tt 44wr COLORADO September 1, 2009 GREELEY GKD LLC C/O GK DEVELOPMENT INC 303 EAST MAIN ST STE 201 BARRINGTON, IL 60010 CLERK TO THE BOARD PHONE (970) 336-7215, Ext. 4226 FAX: (970) 352-0242 P. O. BOX 758 GREELEY, COLORADO 80632 RE: THE BOARD OF EQUALIZATION, 2009, WELD COUNTY, COLORADO - STIPULATE PETITIONER'S APPEAL AND AFFIRM ASSESSOR'S VALUE DESCRIPTION OF PROPERTY: ACCOUNT #: R4473306 PARCEL #: 096119218003 - GR GM LOT 3 GREELEY MALL MINOR SITUS: 2050 GREELEY MALL ST GREELEY 80631 Dear Petitioner: On July 28, July 30, and August 5, 2009, the Board of County Commissioners of Weld County, Colorado, convened, and acting as the Board of Equalization, pursuant to Section 39-8-101, C.R.S., et.seq., considered the Stipulation on your petition of appeal of the County Assessor's valuation of your property described above, for the year 2009. The Stipulation was entered into between the Assessor and said petitioner(s), and accepted by the Board of Equalization, agreeing that the assessment and valuation of the Weld County Assessor be Stipulated as follows: ACTUAL VALUE AS DETERMINED BY ASSESSOR ACTUAL VALUE AS STIPULATED $644,848 $403,030 C' C• As, °'+, 1P& C i- J 2009-1850 AS0073 GREELEY GKD LLC - R4473306 Page 2 If you have questions or need additional information, please do not hesitate to contact me at (970) 336-7215, Extension 4226. Very truly yours, a Esther E. Gesick Deputy Clerk to the Board cc: Christopher Woodruff, Assessor DOWNEY & MURRAY LLC 383 INVERNESS PKWY STE 300 ENGLEWOOD, CO 80112 2009-1850 AS0073 A ASA 04 u0u40g0a WhLOCUUNTYASSESSOR II002/007 2009 COUNTY BOARD OF EQUALIZATION WELD COUNTY ASSESSOR'S ACCOUNT NUMBER R4473306 STIPULATION (As To Tax Year 2009 Actual Value) RE PETITION OF: NAME: GREELEY GKD LLC C/O GK DEVELOPMENT INC 303 EAST MAIN ST STE 201 BARRINGTON. IL 60010 Petitioner(s), GREELEY GKD LLC and the Weld County Assessor, hereby enter into this Stipulation regarding the tax year 2009 valuation of the subject property, and jointly move that the Board of Equalization to enter its order based on this Stipulation. Petitioner(s) and the Assessor agree and stipulate as follows: 1. The property subject to this Stipulation is described as: GR GM LOT 3 GREELEY MALL MINOR SITUS: 2050 GREELEY MALL ST GREELEY 806310000 2. The subject property is classified as Commercial property 3. The County Assessor originally assigned the following actual value to the subject property for 2009. LAND: $644.848 IMPROVEMENTS: $Q TOTAL: $644,848 4. After further review and negotiation, the petitioner(s) and Weld County Assessor agree to the following actual value for the subject property. LAND: IMPROVEMENTS: TOTAL: $493.Q30 1403.030 *Mt= was LOTS OaanlYIanWho. @nm ao aewlY n*unMODS! Mei0000 90 39Cd S31vIODSSWA3NMOG ZZIIEI8E0E 00:LL 600Z/t'0/80 08/.'4/2009 16:37 FAX 9703046433 WRLOCOUNTYASSESSOR x003/007 MOTION 5. The valuations, as established above, shall be binding only with respect to tax year 2009, 8. Brief narrative as to why the reduction was made: Value was adjusted based upon the general market prices per sq. ft. that were in place in the base period, additionally the income was considered as backup for the market. 7. Both parties agree that the hearing scheduled before the Weld County Board of Equalization on 8/5/2009 at 3:30 AM be vacated. DATED this 4 day of August, 2009. Petitioners) or Attorney 0 Petitioner(s) or Attorney �`ddress: ,��� � Address: �i` efocy ' • /2 Telephone: <E03, )3 2,) / Telephone: rk County Assessor: ADDRESS: 1400 N.17th Avenue Greeley, CO 80631 (970) 353-3845 ext. 3656 a ml Urfa SMILEY MALL MINOR ST%* 110 GRIMM liAll.EGMEKEY onto= L0 3Edd 531CIOOSSvvh3NMOQ ::ItEI8E0E 00:Lt 600:/170/80 Weld Count CHRISTOPHER M. WOODRUFF COUNTY ASSESSOI BRENDA DONES, DEPUTY ASSESSO VALUATION REPORT OF COMMERCIAL PROPERTY FOR County Board of Equalization GREELEY MALL I/GKD FUND I LLC PETITIONER vs. WELD COUNTY ASSESSOR'S OFFICE RESPONDENT Parcel Number: 0961-19-2-18-001 0961-19-2-18-020 0961-19-2-18-052 0961-19-2-18-002 0961-19-2-18-043 0961-19-2-18-003 Schedule Number: R4473006 R3761086 R1044296 R4473206 R0072287 R4473306 Log Number: 2480 Date: 08/05/2009 Time: 3:30 Board: CBOE PREPARED BY APPRAISERS NAME Enclosed mall Dillards Pizza Hut Strip Center Habitat (old Safeway) Land Parcel east Signature Chuck Jack Date 08/05/09 ASSESSOR'S OFFICE STAFF APPRAISER Page 1 ,k,O9-/85c SALIENT FACTS AND CONCLUSIONS Purpose of Appraisal Property Rights Appraised Location Land Area To determine Market Value as of 1/1/09 based on an appraisal date of 6/30/08. Unencumbered fee simple interest. 2050 GREELEY MALL ST GREELEY 2,593,759 Square Feet (59.55 acres) Property Type Commercial Regional Shopping Center Year Built Year Remodeled Quality Class 1973 Constant & on -going Good Metal Frame Number of Stories 1 Improvement Sq. Ft. 425,752 Value Indications: Land Cost Approach Market Approach Income Approach Assessor's Value $10,375,036 $ 39,620,811 $ 42,575,200 $ 35,289,053 $39,354,303 Page 2 Enclosed Mall DILLARDS PIZZA HUT PAGE 4 STRIP CENTER HABITAT (OLD SAFEWAY) SKETCH OF ENCLOSED MALL BLDG #1 Location of Sears Blt 2[103 6,552 sq.tt. 260' r3pO I 113 0' a mu d ay. a 9v 1100' 910 255.0' Location of 12-Plex Theater 282.0 85.0' 85.0• 230.0' 243.0 221.0' 1-1-020' nD 50 1 160 60.0'>D Open Walkway 3726.0 sf Location of WC_ Pennys sketch by Apex Medina'. 1020 6n Bldg #1 Enclosed Mall Area 221L},409 Siccitift 263.0' 80.0' Location of Dillards DILLARDS SKETCH 186.0' 220.0' Bldg #3 Dillards Department Store 41,140 sq ft 102.0' 3 0 16.0' Op .1 11.0 102.0' Second Floor 1980.0 sf 2D sax 51.0 corrr.1531 0 al 4100' 86.0' 0 0 03 0 Sketch by Apex Medina". son PAGE 6 Pizza Hut 40O CONC. SLAB 1283.5 1n 3 3.0 SMnch by Pon IV' 19.0' 19.0' 330' RESTAURANT BLT 1995 CLASS D Stucco Siding 15' - 18'wh HVAC 3,617 sq.ft. 373 sqRequp loft COOLER 120.0 8' WH Page 7 N N U Habitat (old Safeway) 0a O Lip N -o m Convenience Center ILO 0 CO N CO tY) 3 m cr lodee 83140 AZEI ii .0 -LC of Ala 3I Sketch by Apex IVVIA Co a. 0. COST APPROACH LAND VALUE Sales utilized to establish the value in the subject neighborhood are from 2007 and the first six months of the 2008 market for the 2009 assessment date. The comparative sales approach is the most reliable method of land valuation. Pursuant to 39-104-(10.2) (c) C. R. S., the Assessor may utilize sales from July 2003 through June 2008 to establish the proper value, if sufficient information not available in the prior 18 months. Also, comparables outside the subject property area may be used. The Weld County Assessor has an established ongoing sales confirmation and validation program for property transactions used in developing value. The land size of the subject is 2,593,759 square feet. It has been determined from market sales of similar land that a value of $4.00 psf or $10,375,036 is applicable for the subject properties land are Comparable 1 Comparable 2 Comparable 3 Comparable 4 Parcel Number Sale Date Sale Price Land Size Per Acre 095914416001 Centerplace 11/16/07 $4,183,851 721,332 $5.80 095922149001 Greeley Commons 06/30/04 $3,070,000 627,046 $4.90 095914310001 Lowes 095914309001 Kohls Centerplace 04/29/04 07/17/03 $2,750,000 580,443 $1,868,500 533,864 $4.74 $3.50 Range $3.50 to $5.80 Average $4.73 Median $4.82 ASSESSOR'S SUBJECT LAND VALUE $10,375,036 Page 10 Cost Approach Summary PARCEL NUMBER PROPERTY OWNER ADRESS CITY, STATE, ZIP DATE OF APPRAISAL OCCUPANCY: FLOOR AREA (SQ. FT.) CLASS: COST RANK HEATING AND COOLING RCN BASIC STRUCTURE COST perimeter adjustment wall height adjustment Current multiplier Local multiplier Adjusted RCN Basic Cost EXTRAS: Conc. Asphalt Loading Docks TOTAL RCN LESS DEPRECIATION All forms RCN LESS DEPR. ADD IN LAND VALUE TOTAL VALUE VALUE PER Sq Ft 096119218001 + Greeley Mall 2050 Greeley Mall Street Greeley, Colo 06/30/08 Regional Shopping ctr NUMBER OF STORIES 1 AVERAGE STORY 425,752 HEIGHT 18 S YEAR BUILT 1973 Avg Effective Age 1985 Warm & Cool Air Zoned Estimated Life 55 UNITS 425,752 Sq Ft 28,680 998,614 1,290 0.21 $89.39 0.82 1.127 1.00 0.99 Cost PSF $2.80 $2.10 $17.87 $7,774,122 COST TOTAL $38,057,97 $34,819,1£ 80,304 2,097,08E 23,052 $37,019,6: $29,245,5C $10,375,0c $39,620,54 $93.i MARKET APPROACH SUMMARY Real Property for the tax year 2009 must be valued utilizing data for the period one and one-half years immediately prior to July 1, 2008. If comparable valuation data is not available from such one and one-half year period to adequately determine the level of value for a class of property, the perioc of five years immediately prior to July 1, 2008 shall be utilized to determine the level of value. The Assessor has appropriately considered the Market Approach to value for the property on appeal The Sales Comparison Approach was considered in developing a market value for the Subject. Sale used to establish a market value for the tax year 2009 are from January 1, 2007 through June 30, 2008. Pursuant to 39-1-104 (10.2)(c) C. R. S., the Assessor may utilize sales five years prior to July 1, 2008 to establish the proper value. All sales have been confirmed and verified through transfer declarations as well as interviews with buyers, sellers or their representatives to the sale. All sales used are arm's length transactions, and considered to be the most comparable properties sold in relationship to the Subject property. Based upon investigation and analysis, it is the opinion of the appraisers that the value of $100.00 accurately reflects the market value of the subject property. VALUE As INDICATED BY THE MARKET APPROACH $42,575,200 Page 12 COMPARATIVE SALES APPROACH Y M c co 0 g w 2 M) aN N c_ 5 c Windsor Market C _ U 0) >, J G)) N N T CO (O N 0 in _O N M O > N M N O U C (a a) O O co a T 0 (0 n a O N a CO N N CO N a) N d W N U a) U oW N O Y v Windsor Holdings South Street Realty Ventures 0 N N 0 0 a` E. N N 0 0 o Si CO ('a J V Off) co Op O o 0 CO N �' N E a VD V VI v U o L co O N CA 0 O O N CO N O LOO O) N N O >•••c 0 N () E CO N a) E a) a N E r N N E N 0 tt-1-1N (DOM Err y C7 U CO a(orv( x)00000 NNN M Cu N co N0 —N CIO CO •4• CO Cu N' O N V (0 20_' CC CC CC CC r y 0000 COCO0z CIS o O 0 N 0 1 N CO r CO N CO cK d N(ONNN KK=cecc 2050 Greeley Mall O O 0 O O N O O O O O O 0 0 O O 0 0 N LA (rs; u) 0 (�+) CO N (0 7 co 0) N 0) C/) N 'E U E C C E o o U) 0) O a. O L 0 : N N c U E E 0 O 0) O M 0) N to to `m .3,c 'V co N co C (i (00 0 O (0 t O E 0) O O NV (.0j N E C l0 V M m U o L 0) c CO 0 0 0) a O (0 0 0 co O a (Lj C 0 0 0 (O CO N L N 0 _ 0 O O V N a) a) (C' ((I O 0 M N 4'S N M a) U O N a O (n A M 0 (\ CO C U 0 N 7'Cr N O (H 69 (9 r CO CU N N J N (nvxU�!0 w O CO (0 G f a) _Nom v 0 ILl 0 0 w a) a CO (O (O CO N (O a) N U) O O N N N CO 0 �. Cr) r t M N CO N co Q N N N 0 V' N OV O 7 10 _ R'd'2a'2'LL' N It W ct y a a r _ $42,575,200 $100.00 x 425,752 4-( ow 7 3 CO 0) C N CO 0) a ' l- O a p M r U) M L N O 0 N y M CO- N O) N 0 aa) N M O 0 n C U 63 Q N N O 69 N CC 0- (I) C 0 O N d 0 0 r 0 .. O N N_ .� LL N E m C o .. O d N in R 0 m c O. a. a) N Z. it 2 R N 'C 'o N CO 9 0 (0n N .. 0) 9 6 6 0 co in —I n m>- =>u -a< o r r S C9 S S Comps range: CompsMedian: 0) ct a E O U COMPARABLE SALE #1 ACCOUNT PRIMARY OCC: Regional Shopping Center SECONDARY OCC: THIRD OCC: ADDRESS: R4473006 + 8A 2003 6.552 sq A :07 30 7 a a 9 let _ imu MO Licit on t11i.Pite rt ri q .el /SO .x3 nit 0>r° Warily 172E 3 n a' that, by M. N IM./e s louts° 0 J C. Ps°np er $17 rec 17�0707 ODa t Rog #1 Enclosed Mall Area 225310 0 830 Lembo° et ASS 4100 188.0' 220.0' Bldg #3 Cderds Department Store 42,852 s1 188.0• 102.0' 3 0' 18 0' 102.0' PI a --r op tar .IY COUNTY: WELD PARCEL NUMBER: PERCENT: 100% PERCENT: PERCENT: 2050 GREELEY MALL ST, GREELEY RECEPT NUMBER: 3407475 & 3407476 GRANTOR: MACERICH GREELEY ASSOCIATES GRANTEE: GREELEY MALL I/GKD FUND I LLC YEAR BUILT: EFFECTIVE AGE: LAND SIZE (SF): BLDG SIZE (SF): WALL HEIGHT: STORIES: BSMNT SIZE: BSMNT FINISH: ZONING: QUALITY: COMMENTS: 1973, 1995, 2003 2,603,453 477,446 20 1 Average The sale as one economic unit. SALE DATE: SALE PRICE: ADJ SALE PRICE: CLASS: LAND/BLDG RATIO: LAND VALUE: IMPS PRICE/SF: SALE PRICE/SF: INTEREST RATE: DOWN PYMT: LOAN TERM (YRS): POINTS PAID: 096119218001 + 7/27/2006 $49,200,000 $49,180,000 C 5.34 $10,413,812 $77.13 $103.00 Secure Floor 1$101) at 45.1 Si" '—See 110171st 704 PAGE 14 COMPARABLE SALE #2 ACCOUNT PRIMARY OCC: SECONDARY OCC: THIRD OCC: R3118504 Community Shopping Center ADDRESS: 4711 THRU 4759 29 ST GREELEY RECEPT NUMBER: 3321190 GRANTOR: GREELEY COMMONS LLC GRANTEE: GREELEY SHOPPING CENTER LLC YEAR BUILT: 2004 & 2005 EFFECTIVE AGE: LAND SIZE (SF): 627,046 BLDG SIZE (SF): 138,446 WALL HEIGHT: STORIES: 1 BSMNT SIZE: BSMNT FINISH: ZONING: QUALITY: Good COUNTY: WELD PARCEL NUMBER: 095922149001 PERCENT: 100% PERCENT: PERCENT: SALE DATE: SALE PRICE: ADJ SALE PRICE: CLASS: LAND/BLDG RATIO: LAND VALUE: IMPS PRICE/SF: SALE PRICE/SF: INTEREST RATE: DOWN PYMT: LOAN TERM (YRS): POINTS PAID: 8/25/2005 $21,000,000 4.62 $2,506,304 $133.58 $151.68 COMMENTS: GREELEY COMMONS SHOPPING CENTER HAS SIX SEPARATE RETAIL BUILDINGS AND ONE BANK WITH DRIVE -UP FACILITY. IT IS ANCHORED BY BIG BOX TENANTS SUCH AS CIRCUIT CITY 21,236 SF, OFFICE MAX 19,848 SF, and MICHAEL'S 21,323 SF. APPROXIMATELY 5,073 SF VACANT AS SHELL BUILDING SPACE AT TIME OF SALE. Page 15 COMPARABLE SALE #3 ACCOUNT NUMBER: R2587603 & R2587703 PRIMARY OCC: Community Shopping Center SECONDARY OCC: THIRD OCC: ADDRESS: COUNTY: WELD PARCEL NUMBER: 095914309001 & 002 PERCENT: 100% PERCENT: PERCENT: 4224 CENTERPLACE DR GREELEY RECEPT NUMBER: 3213029 GRANTOR: CENTERPLACE GREELEY LLC GRANTEE: GREELEY REALTY VENTURES LLC YEAR BUILT: 2003 EFFECTIVE AGE: LAND SIZE (SF): 491,948 BLDG SIZE (SF): 98,039 WALL HEIGHT: 20 STORIES: 1 BSMNT SIZE: BSMNT FINISH: ZONING: GRE PUD SALE DATE: SALE PRICE: ADJ SALE PRICE: CLASS: LAND/BLDG RATIO: LAND VALUE: IMPS PRICE/SF: SALE PRICE/SF: INTEREST RATE: DOWN PYMT: LOAN TERM (YRS): POINTS PAID: QUALITY: 8/6/2004 $11,900.000 $1 1,900,000 C 5.09 $1,967,792 $101.30 $121.38 Average PAGE 16 CBOE_COMM _01C Page COMPARABLE SALE #4 ACCOUNT R2459886 PRIMARY OCC: Neighborhood Shopping SECONDARY OCC: THIRD OCC: ADDRESS: COUNTY: WELD PARCEL NUMBER: 095913412013 PERCENT: 100% PERCENT: PERCENT: 2305 THRU 2401 W 27 ST GREELEY RECEPT NUMBER: 3357052 GRANTOR: 2305 GREELEY LLC UND 20% INT & GRANTEE: SOUTH STREET PARTNERS LTD LLC YEAR BUILT: EFFECTIVE AGE: LAND SIZE (SF): 368,561 BLDG SIZE (SF): 86,064 WALL HEIGHT: 16 STORIES: 1 BSMNT SIZE: BSMNT FINISH: ZONING: QUALITY: COMMENTS: SALE DATE: SALE PRICE: ADJ SALE PRICE: CLASS: LAND/BLDG RATIO: LAND VALUE: IMPS PRICE/SF: SALE PRICE/SF: INTEREST RATE: DOWN PYMT: LOAN TERM (YRS): POINTS PAID: 1979 THRU 1986 GRE CH Average WILLOW STATION SHOPPING CENTER I S AN UNANCHORED CENTER WITH FIVE SEPARATE RETAIL BUILDINGS. APPROXIMATELY 20% VACANT AT TIME OF SALE. CONFIRMED WITH NAVID SAIDI. 1/19/2006 $7.100,000 C 4.28 $1,474,244 $65.36 $82.49 PAGE 17 CBOE_COMM _01( Page COMPARABLE SALE #5 ACCOUNT R2429803 PRIMARY OCC: Community Shopping Center SECONDARY OCC: THIRD OCC: ADDRESS: COUNTY: WELD PARCEL NUMBER: 080718402001, 002,003, 006, 013 PERCENT: 100% PERCENT: PERCENT: 1520, 1540, 1550, 1560 MAIN ST WINDSOR RECEPT NUMBER: 3431469 GRANTOR: NEW WINDSOR MARKETPLACE LLC GRANTEE: NSS WINDSOR HOLDINGS LLC YEAR BUILT: 2003 EFFECTIVE AGE: LAND SIZE (SF): 472,389 BLDG SIZE (SF): 96,062 WALL HEIGHT: 25 & 22 STORIES: 1 BSMNT SIZE: BSMNT FINISH: ZONING: QUALITY: Good SALE DATE: SALE PRICE: ADJ SALE PRICE: CLASS: LAND/BLDG RATIO: LAND VALUE: IMPS PRICE/SF: SALE PRICE/SF: INTEREST RATE: DOWN PYMT: LOAN TERM (YRS): POINTS PAID: 10/24/2006 $9,900,000 $9,600,000 C 4.92 $2,834,334 $70.43 $99.94 COMMENTS: NEW WINDSOR MARKETPLACE HAS 96,062 S.F. OF RETAIL SPACE. THE CENTER IS ANCHORED BY A 66,662 S.F. KING SOOPER'S STORE WITH AN ATTACHED SMALL RETAIL STRIP WING WITH 15,400 S.F.. A SECOND STANDALONE RETAIL BUILDING CONTAINS 14,000 S.F.. THE PURCHASE PRICE WAS ADJUSTED BY $300,000 FOR THE KING SOOPER SELF SERVE GAS STATION INCLUDED IN SALE. 4,200 S.F. WAS VACANT OR 4.3% AT TIME OF SALE. CONFIRMED SALE WITH NICK STUDEN JR. PAGE 18 CBOE_COMM_01 C Page f 0 U COMPARATIVE SALES APPROACH M N C X 3 I- 3 O O U C C C (a a)0 U o a) N O r O 0 (O 0 N ❑ 9 O 0 a J O O` co o (9 OL r O 3 Ica) >, a) a)a)a m c U o m J N d 0 0 Y (0 J Stevinson Family Simon Property October -07 co M M 0 0 v (A 0 0 O 6- 0) N M 0* U) N 0 O O 0 r O O O 6 (o O v O (N O O O 0 0 M rn 0 N M O 0 0 N M 0 CO a r Shopping Center et) n 0) C L. co to a a) 0 a at 0 cp 0 0 0 L U en L7 N 0 a co N V 0 0 0) 0000 = 0) N V NCD 01 OM 3 C O(o �000V 2 >, n C O 0 O CO O O O O Shopping Center O O r D OO 1'000`' 0 a) a) 0 7 0 6 O? 0•cr NL 0) O r M W r 0 a) a) 11 N O co M co V ca O C M N Tr r co (0 (0 O C7 N a) in t-- cN r 0 O N M m m O^ N U NO ) V'0't r Cr) V' O V NCC ot W J y CC CC CC CC 0 U m 0) ins -0 0 O m N > 0 "O U N c EL' c — 0 0 m E5:O2 -J O O O O r 0 O 0 0) O CO 0 O O N N N M M r M N on N (o Tr N N N V I O V O' V M r V O V CC CC CC CC CC CC N 27. a a) d Y () w o d 0 0 U t7 O URI ) I) () Adj. Sales Price a (O N M a O CV - 0 (o N O N (O N a C a a Mo a) a 0 C �— a� r C O a a) Q' N O N y CO CO V ea 0 n m r m Value Per Sq Ft MCD M y) N IC i N r O M O a) a 0 U Comps Median: co 0 U) Comps Range: O h to to $100.00x425,725 = Subject Value: INCOME APPROACH SUMMARY The Weld County Assessor has appropriately considered the Income Approach to value for the Subject property on appeal. The Assessor has gathered income information from local commercial properties for the time frame January 1, 2007 through June 30, 2008. This information, combined with statewide and industry-wic data, is used to determine typical income and expenses for various property types. In conclusion of the Income Approach, the Assessor has considered both groups of data and has pu more emphasis on the local factors and data than the state and national data. This information was then applied to the subject property to arrive at an appropriate Income Approach Value. TOTAL INCOME VALUE FOR THE SUBJECT PROPERTY $35,289,053 Page 20 CBOE_COMM_01 Pag, Capitalization Rates The overall capitalization rate was established by utilizing the Winter 2007/2008 issue of the Burbach & Associates Real Estate Investment Survey and the Korpacz Real Estate Investor Survey. The Burbach Report showed a range of stabilized cap rates from 6.5% to 8.5%. The Korpacz Report showed an average rate of 6.78%. For the purpose of this report a capitalization rate of 8.0% was chosen to be applicable for the subject property. Added to the 8.0% cap rate was an effective ta) rate of 2.18% and then rounded to 10.5% . The 10.5% was reduced 2.0% to 8.5% for the land only leases. This was done because a land capitalization rates do not include a recapture rate. Recapture is the return of the portion of the investment in an asset that will waste away (be used up) during the investment period. Land does not waste away thus the 2.0% reduction it the land capitalization rate. The recapture rate was determined by dividing 1 by the expected life of the subject's building or 1/50 = 2%. Page 21 CBOE_C0MM_01 Peg, Income Approach (Actual Income and actual vacancy) Lot #1 Enclosed Mall (includes Dillards) Land Leases Total Lot #1 Lot #2 Habitat (old Safeway) Main Strip Center Auto Zone Land Gas Station Land Total #2 Total Income (both lots 1- 2) Total Value per the income Approach! Net Operating Income Cap Rate Value per Income $2,874,739 10.5% $27,378,467 $504,971 8.5% $5,940,835 $3,379,710 $33,319,302 -$13,737 10.5% -$130,829 $169,453 10.5% $1,613,838 $36,850 8.5% $433,529 $4,523 8.5% $53,212 $197,089 $1,969,751 $3,576,799 $35,289,053 Page 22 CBOE_COMM_01 Pag CONCLUSION Real property for tax year 2009 must be valued utilizing the level of value for the period of one and one-half years immediately prior to July 1, 2008. Except that, if comparable valuation data is not available from such one -and one -half -year period to adequately determine the level of value of a cla; of property. The period of five years immediately prior to July 1, 2008 shall be utilized to determine the level of value. Said level of value shall be adjusted to the final day of the data gathering period. Changes occurring between base years are not to be accounted for until the following level of value implemented, other than additions, change in use, detrimental acts of nature, damage due to fire, et or creation of a condominium, or any new regulations restricting or increasing the use of the land, or combination thereof. {39-1-104(11)(b)(1) C. R .S.} The subject property has been classified as Commercial Property for assessment purposes. Commercial property value shall be determined by appropriate consideration of the Cost Approach, Market Approach, and Income Approach to value. {39-1-103(5)(a) C. R. S.} The Assessor has consider( all three approaches to value for the subject parcel on appeal. FINAL RECONCILIATION After consideration of the cost, market and income approaches, it is the Weld County Assessor's opinion that the value of $39,384,303 most accurately reflects the value of the subject property in Weld County for the 2009 tax year. Cost Approach Sales Comparable Approach Income Approach $39,620,811 $42,575,200 $35,289,053 Assessor's Value Land $10,375,036 Improvements $28,979,267 Total Value $39 354 303 Page 23 COOE_COMM_O Pao osed Value Based on the Subiect's Actual Income & Vacanc O a, 4- d E 0 V n. 3 o a`¢ T1 c co o 3E C pa 0 CU O> a_ o2 a O aC) 3 _ 0 16 a� O 0_ 0 0 CO O> a -0 O R as O) O O d N 7 O � H w C C) 0 7 > N Q. > 8 a J 3 a > a N Parcel Number a n n r N ER $21,820,797 $29,410,736 M CO CO CO U) Ce $22,884,314 $31,558,530 CO N CD CD CC Ce co CA a- a r l0 N CO CO N CA CO r UO N a O 00 r Vi Efi -a-- to Ce OC0 O O N CO C0 C CO 'Cr N- a a a o aN r o Oa co C6 cr> t- o o CO N 0 CD 't N N C6 fn r CA S cri co S ER CO `. O0 N N O CO 0 CO d N r 0 coo r r co Ce EA CO CO CC6 b4 0 ER ER N O r co co tr) a a CA co 7 to a Ce ER ao ER a a CO u-)0VO' 10 CO CO r CO V O CO N r M CO Ce _ (Pk O O CO C0 CO 0 N r 0 CO CO r 0 IC o cCO r CO M N r M V3 CO. fA H9 N N a U) N N CO CO r 0 l0 0 V 0 a 2 a Co co as CO ao a co r J-. r "' r r r w r N O N N N D N N N N O i O) U a N CA (C6 r a O CD a rr CNO r C r CO CO - CO CO co a W co0 • Od OU) al a a) $28,979,267 $39,354,303 N at Ct N o m a s 0 0 U 0 REAL AND PERSONAL PROPERTY NOTICE OF DETERMINATION Christopher M. Woodruff WELD Assessor 1400 N 17th Ave GREELEY, CO 80631 Date of Notice: 6/24/2009 Telephone: (970) 353-3845 Fax: (970) 304-6433 Office Hours: 8:00 AM - 5:00 PM SCHEDULE/ACCOUNT NO. TAX YEAR TAX AREA LEGAL DESCRIPTION/ PHYSICAL LOCATION R4473306 2009 4049 GR GM LOT 3 GREELEY MALL MINOR SITUS: 2050 GREELEY MALL ST GREELEY 806310000 2050 GREELEY MALL ST GREELEY, CO 806310000 PROPERTY OWNER i GREELEY GKD LLC C/O GK DEVELOPMENT INC 303 EAST MAIN ST STE 201 BARRINGTON, IL 60010 PROPERTY CLASSIFICATION ASSESSOR'S VALUATION ACTUAL VALUE PRIOR TO REVIEW ACTUAL VALUE AFTER REVIEW COMMERCIAL 644,848 644,848 TOTAL $644,848 $644,848 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: LHO2 - No change has been made to the valuation of this property. Colorado law requires us to send this notice of denial for all properties on which we do not adjust the value. 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.S. The deadline for filing real property appeals is July 15. The deadline for filing personal property appeals is July 20. 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. DOWNEY & MURRAY LLC 383 INVERNESS PARKWAY SUITE 300 ENGLEWOOD CO 80112 2009-1850 APPEAL PROCEDURES County Board of Equalization Hearings will be held from July 1 through August 5 at 915 10th Street, Greeley, CO 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 915 10TH Street, P.O. Box 758 Greeley, Colorado 80632 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 and on or before July 20 for personal 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 11. 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 9`" Avenue and 9`" Street, P.O. Box C Denver, CO 80203 Greeley, Colorado 80632 (303) 866-5880 Telephone (970) 356-4000 Ext. 4520 www.dola.colorado.qov/baa 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. PETITION TO COUNTY BOARD OF EQUALIZATION What is your estimate of the property's value as of June 30, 2008? (Your opinion of value in terms of a specific dollar amount is required r real property pursuant to § 39-8-106(1.5), C.R.S.) $ f d What is the basis for your estimate of value r 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.) ATTESTATION I, the undersigned owner or agent' of the property identified above, affirm that the statements co wined he ' nd on an attachments ereto are true and complete. Signature Telephone Number Da e 'Attach letter of authorization signed by property owner. 15-DPT-AR PR 207-08/08 NOD #'. 7494 EXHIBIT "A" ATTACHMENT TO COUNTY BOARD OF EQUALIZATION PETITION OF GREELEY GKD LLC, SCHEDULE NUMBERS R4473206, R4473306 and R0072287 1. The Assessor has failed to give appropriate consideration to all the requisite approaches to valuation in determining the value of the property. 2. The current year actual value assigned by the assessor does not reflect the actual value of the subject property during the 18 month period ending June 30, 2008. 3. Upon consideration of all the approaches to value, values given to comparable land and improvements and upon consideration of the requirements of Colorado law that require that assessments be uniform, just and equitable, a reduction in the current year actual value of this property is warranted. 4. The $2,171,650 value assigned to schedule numbers R4473206 for 2009, is excessive and should be reduced. Review of the actual income and expenses indicates of value of approximately $1, 500,000. Approximately 8,262 square feet of the 25,142 gross area was vacant as of the January 1, 2009 assessment date. We request that the value be reduced to $1,500,000. 5. The $644,848 value assigned to schedule numbers R4473306 for 2009 is excessive and should be reduced. We believe that the assigned value of $4.00 per square foot is excessive and that an assigned value of $2.00 per square foot is reasonable. We request that the value be reduced to $322,424. 6. The $1,387,115 value assigned to schedule number R0072287 for 2009 is excessive and should be reduced. This 28,605 square foot property is occupied by a thrift store and operates at a loss. Review of the actual income and expenses for this parcel indicates a negative value. We request that the value be reduced to $ 1.00. 7. Analysis of this property is ongoing. Further quantification of the economic obsolescence and other market factors may warrant a further reduction in the requested value. m C\l0 v~i ONJ (rim 000- •Z awm s o • 0 6 jO Z W N m to c 2 7009 0820 0001 4910 0445 a rd of Equalization Cr) o N O Pa Nco c0 T L unO L Cl) I- U Q .c L C O 0) o m r v . v in 0 a) m• '3 Cn W C7 tit Wine COLORADO July 27, 2009 GREELEY GKD LLC C/O GK DEVELOPMENT INC 303 EAST MAIN ST STE 201 BARRINGTON, IL 60010 Dear Petitioner(s): CLERK TO THE BOARD PHONE (970) 356-4000 EXT 4226 FAX: (970) 352-0242 WEBSITE: www.co.weld.co.us 915 10TH STREET P.O. BOX 758 GREELEY, COLORADO 80632 Parcel No.: 096119218003 Account No.: R4473306 The Weld County Board of Equalization has set a date of August 5, 2009, at or about the hour of 3:30 PM, to hold a hearing on your valuation for assessment. This hearing will be held at the Weld County Centennial Center, First Floor Hearing Room, 915 10th 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, 2009, and mailed to you on or before August 12, 2009. Because of the volume of cases before the Board of Equalization, all cases shall be limited to 15 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. GREELEY GKD LLC - R4473306 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 DOWNEY AND MURRAY LLC ATTN: THOMAS DOWNEY 383 INVERNESS PARKWAY STE 300 ENGLEWOOD, CO 80112 Esther Gesick From: Sent: To: Cc: Subject: Mr. Downey, Esther Gesick Friday, July 24, 2009 12:12 PM 'ted@downeymurray.com' Courtney Anaya; 'Esther Gesick, Weld County' Weld County Board of Equalization (BOE) Although I had previously sent letters indicating the Greeley Mall accounts were scheduled for July 28, 2009, at 3:45 p.m., the Assessor's Office informed me that the accounts were rescheduled to Wednesday, August 5, 2009, at 3:30-4:30 p.m., to allow additional time to review the properties. The accounts are as follows: R0072287 - Greeley GKD, LLC R4473206 - Greeley GKD, LLC R4473306 - Greeley GKD, LLC R4473006 - Greeley Mall I/GKD Fund I, LLC R3761086 - Dillards Property Tax Dept R1044296 - Preferred Income Investors LLC, dba, c/o Pizza Hut - Greeley Mall Please accept this e-mail as your notification to disregard the letters concerning a hearing on the 28th and I will follow-up with revised letters for the hearing on August 5, 2009. If you have any questions, please reply or call me at the address below. Thank you. Esther E. Gesick Deputy Clerk to the Board Weld County, Colorado 915 10th Street Greeley, CO 80631 (970)356-4000 X4226 (970)352-0242 (fax) 1 Esther Gesick From: To: Sent: Subject: Tom Downey [ted@downeymurray.com] Esther Gesick Friday, July 24, 2009 12:16 PM Read: Weld County Board of Equalization (BOE) Your message was read on Friday, July 24, 2009 12:16:06 PM (GMT -07:00) Mountain Time (US & Canada). Hello