Unique Strategy Creates Additional $548,000 in Tax Value Reduction
The Bottom Line
NOI is at its highest when property taxes are at their lowest — period. By eliminating midstream cost/benefit decisions, Pinnacle consistently provides tax savings that would have never been recovered using a more traditional approach.
Prior Year Value:
$16,700,000
Initial Value:
$18,480,000
ARB Value:
$17,248,000
Final Value:
$16,700,000
“…additional reductions beyond the initial hearing time and again.”
“…additional reductions beyond the initial hearing time and again.”
Pinnacle’s unique approach to property tax has consistently provided excellent results, with additional reductions beyond the initial hearing time and again. I could not imagine going back to the days of feeling like I had to accept an Appraisal Review Board’s unfavorable value or take on additional risk to keep up the fight.
— Senior Asset Manager, The PPA Group
The Client
The PPA Group specializes in core-plus and value-add multifamily investments throughout the southwestern US, typically targeting a three to five year holding period.
The Results
At ARB, this DFW apartment saw its 11% proposed increase cut to less than 3.5%, a taxable value substantially less than it would fetch at market. With the valuation below $57,000 per unit, the owner would have gladly accepted the ARB value; however, our equity data suggested there was more to recover.
Since our approach carried no upfront out of pocket costs to consider, the owner was happy to let us appeal and keep pushing for more. As a result, within three months a settlement was reached. The agreed value was equal to that of 2016’s settlement, holding the value level year-over-year.