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i <br />I <br />i <br />The Market (Just) Value assessment presented :at the beginning of the ;hearing was <br />$293,119 or $159.30 SF. <br />The PA presented 5. comparable sales :most of which :were single tenant office_ or <br />retail buildings (only four of the sales were considered appticable:as one was: sold <br />for land value). The 4 sales, indicated a range from:$224 SF to $634 SF. No cost of <br />sale adjustment was shown or applied. The range of the: sale supported the PA's,: <br />belief that the subject's assessed value of $293,11:9 or $159 SF was reasonable. <br />The PA presented an.income approach. The: PA use a market rental rate of $16.00 <br />SF NNN. The rent rate was applied to the. 1,840 SF of GBA and :resulted in an <br />estimate of annual rent (PGI). of $29,440: A .5% vacancy and collection loss was. <br />applied to the PGI for an EGI of $27,968. Expense of :$1.67 ,SF :or $3,076 (11%: of <br />EGI due to the NNN lease) were deducted :and resulted in a NOI of $24,892. The <br />net operating income was capitalized at 7.0%. (no tax load). This indicated a . <br />preliminary value of $355,593 and was rounded to $350,000. <br />The. PA made no deduction for the. Cost of Sale (COS) .in the income. approach. <br />The PA concluded that the subject's assessment of $293,119:is well below the <br />indicated value by the income approach, <br />A_ <br />f <br />Only one rent comp from LoopNet was provided to support the: rental rate. The: <br />balance of the support for the income approach was from the Commercial Market } <br />Insights Report by the National Association of Realtors: <br />Summary of evidence presented by the:petitioner: <br />The petitioner valued the subject property with an income approach. The petitioner <br />utilized a market: rental rate of $14.00 SF NNN and applied it to the gross building <br />area of 1,840 SF. This resulted in a PGI of 525;760.. A vacancy and collection loss <br />of 10% was applied and indicated an EGI of $23,184. Operating expenses of { <br />$2,318 (10% of EGI), including real estate taxes; were deducted and indicated a <br />NOI of $20,866. The NOI was capitalized at 7.0% (no tax load). This indicated a a <br />preliminary value of $298,080. A 15% cost ofsale deduction was made for the 11 <br />and P criteria and indicated a just value of $253,368. This was the requested just . <br />value. The petitioner resented 2 rent comparables from Costar to su ort the <br />p p P .:.: Pp <br />income approach inputs. <br />bi <br />1 <br />2 <br />1 <br />2023-042-34 _ Page 3 of 4 j <br />