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A
Morning
today
is
Wednesday
July
20
26th.
This
is
the
Arlington
County
Board
of
Equalization
hearing.
There
are
four
cases
on
the
agenda
today.
We
do
have
a
quorum
president
and
Mr
panaranda
is
attending
virtually.
The
first
case
on
the
agenda
is
RPC
1702-503h
on
North
Oak
Street.
That
case
it
was
asked
to
be
withdrawal.
I
assume
deter
that
there's
no
objection
from
the
county.
A
So
I
will
move
to
accept
the
withdrawal.
Do
I
have
a
second
bye,
Mr
Lawson,
all
in
favor.
Okay,
it's
unanimous
in
that
case
is
withdrawn.
The
next
case
on
the
agenda
is
RPC
one:
zero,
zero,
zero
one,
three
zero
g
on
Washington
Boulevard.
A
Let
the
record
reflect
that
Mr
Lawson
has
a
conflict,
so
he
will
be
recused
from
this
case,
but
there
is
a
quorum
with
the
remaining
members,
so
Ms
Norman
I,
don't
know
whether
you
or
Mr
Harmon
are
going
to
speak,
but
you
can
start
with
your
eight
minutes
to
tell
us
about
this
property.
C
Yes,
thank
you,
madam
chairwoman,
members
of
the
board
members
of
the
county
good
morning,
I
hope
everyone
is
well
and,
and
had
a
restorative
off-season,
happy
to
see
everyone
back
and
with
that
I'll
get
right
into
it.
So
this
is
the
Westover
Shopping
Center.
We
heard
this
case
last
year
where
we
argued
that
two
Parcels
that
make
up
part
of
the
parking
lot
were
being
double
tax.
C
C
We
see
that
the
2023
assessment
increased
by
eight
percent
over
the
value
set
last
year.
This
is
despite
the
fact
that
noi
decrease
year
over
year
at
the
property,
so
there's
two
issues
on
appeal
today:
the
potential
rental
income
and
the
operating
expenses
column
F
on
the
Drea
test
page
is
a
recreation
of
our
submitted
stabilized
potential.
You
can
see
the
difference
in
value
on
on
potential
rental
incomes
based
on
the
least
retail
income.
We
pulled
the
income
directly
from
the
contracts
in
place.
C
D
C
C
I'll
note
that
2020
operating
expenses
were
artificially
low
due
to
the
coveted
pandemic
shutdowns
and
restrictions
which
severely
limited
the
use
of
this
property
by
the
tenants.
So
2020
operating
expenses
you
can
see
are
an
outlier.
For
that
reason,
I
didn't
include
them,
but
the
three-year
average
of
2019-2021
and
2022
is
5.36
per
square
foot.
C
So
we
have
three
years
of
operating
expenses
at
that
level
and
again
the
assessment's
only
at
3.76
per
square
foot,
no
potential
purchaser
would
impute
operating
expenses
at
a
rate
31
percent
lower
than
what
the
prior
year
of
experience,
especially
given
the
inflation
present
in
the
market.
As
of
the
data
value,
the
Arlington
economic
development's
third
quarter,
2022
report
showed
inflation
was
6.5
percent
at
that
time.
C
E
Good
morning,
everyone
again
you're
discussing
the
West
Oakland
shopping
center,
located
right
on
Washington
Boulevard.
It
has
roughly
about
43
Calvin
897
area,
the
largest
tenant
U.S
Postal
Service
Forest
in
one
of
the
government
vacated
the
premises
last
year
in
June,
and
the
lease
was
replaced
with
the
new
tenants,
not
just
west
over
tackle
that's
what
we
calls.
This
case
was
called.
E
E
We
have
rectified
of
issue,
we
included
this
course
so,
just
recently,
in
the
total
economic
unit,
there
was
another
person
mentioned
this
year
and
the
events
right
up
the
parcel
ending,
ending
006.
the
castle
was
not
Army
last
year,
but
it
has
been
mentioned
this
year,
even
though
the
appeal
has
been
filed.
This
is
another
adjacent
Standalone
car
show
But.
It
includes
the
single
family,
residential
and
the
part
of
the
parking
lot
that
is
also
dedicated
to
the
Westover
shopping
center.
Now
we
couldn't
apply
the
same
treatment
to
this
person.
E
We
couldn't
include
it
in
the
commercial
unit
because
it's
not
our
sex,
it's
appraised
by
the
residential
team,
but
we
did
recognize.
There
was
an
issue
of
partial
double
taxation,
so
Laurie
Ross
can
collaborated
with
residential
team
to
address
the
issue
and
what
we
did.
We
used
the
pictometry
to
approximate
the
square
footage
of
the
law
that
should
be
dedicated
allocated
to
the
commercial
unit.
That's
why,
on
the
summary
sheet,
the
summer
sheets,
you
can
see
the
line
adjustment
of
400
12
600
dollars
so
again,
Lori
rothin
collaborated
with
residential
team.
E
If
you
have
any
questions,
particularly
to
this
parcel,
she'll
be
more
than
happy
to
answer
your
questions.
After
I'm
done
with
my
presentation,
we
have
also
analyzed
the
provided
ionies
for
years
2019
2022.
We
do
acknowledge
that
our
operating
expenses
that
we
used
for
2023
evaluations
are
below
the
expenses
reported
by
the
Appellate
of
the
2022
INE.
However,
we
are
support
to
focus
on
the
bottom
line.
E
Look
at
the
noi
we
used
in
our
evaluation
and
look
at
the
mli
reported
by
the
accountants
for
the
past
two
years,
our
NRI
significantly
loved
and
why
they
reported
it
is
even
significantly
below
the
noi
they
use
in
the
performance
for
2023.
So
we
asked
the
board
nothing
in
all
that
fact.
Now
this
year,
the
reason
the
events
are
contesting
the
assessment
is
again
operating
expenses
and
Recovery.
E
So
they
stated
the
rate
the
treasure
where
you're
not
was
going
for
as
of
December
30th
2022,
which
was
a
3.88.
Now
they
failed
to
acknowledge
that
this
is
a
fluctuating
rate.
E
They
didn't
mention
that
as
of
January
31,
it
was
going
for
1.79
and
as
of
June
30th,
it
was
going
at
2.98,
also
not
the
less
of
December
31st
2021,
but
then
you'll
notice
was
only
at
1.52
and
by
applying
the
methodology
of
the
event,
you
would
think
that
our
package
should
be
significant,
significantly
increased,
but
we
didn't
decrease
the
coverage
of
time.
This
is
about
how
Mass
appraisal
Works
selecting
One
Day
in
the
year
facing
our
assessment
of
the
10
year.
Treasury
note
was
going
for
and
ignoring
the
rest
of
the
year.
E
Ignoring
the
sales
data,
ignoring
the
hundreds
of
Ines
we
have
analyzed
would
be
just
Reckless
and
unacceptable
and.
F
E
Also
appreciate
the
balanced
comment
that
it
is,
you
think
that
the
return
on
television
or
not,
which
is
the
risk-free
investment
which
is
also
I've,
been
upon.
It's
not
a
test
screen
so
and
our
favorite
was
a
okay
in
the
2023
Board
of
Equalization
book,
which
the
14th
Street.
E
Well
now
they
bring
soccer
rates
on
the
page
five,
but
when
you
look
at
soccer
rates
and
liberal
rates
on
the
nightly,
if
you
have
conclude
that
the
post
office,
however,
if
you
wanted
to
make
it
a
compelling
argument,
you
would
show
us
how
your
client
was
impacted
by
those
changing
condition.
They
failed
to
provide
an
Evidence.
They
didn't
explain
how
the
client
was
impacted.
They,
admittedly
long
section
on
the
ionism
right,
where
we
ask
dflats
to
use
long
information
in
place.
They
didn't
provide
that
information.
E
If
I
was
an
agent,
if
I
wanted
to
make
it
a
compelling
argument,
I
would
explain.
For
example,
they
took
out
a
loan
three
years
ago
at
three
percent
and
at
least
that
it
wasn't
loading
right-
and
we
said,
let's
say
at
eight
percent
I-
will
share
that
information
or
I.
Don't
know
they
just
recently
long
at
night
percent
because
they
need
to
take
care
of
some
major
repairs.
E
They
should
mention
that
too.
We
gave
them
opportunities
to
do
Soviet,
they
didn't
do
it,
they
skipped
our
section
and
if
I
was
an
agent,
the
only
three
reasons
why
I?
Let's
keep
that
section,
because
either
I
was
too
busy
and
I
didn't
feel
it
out
which
would
really
make
it
the
service
to
my
clients
number
two.
If
there
was
definitely
no
locking
place,
if
that's
the
case,
they
wouldn't
have
Merit.
E
In
this
arguments
and
the
number
three
they
took
out
a
lot
longer
recently
that
the
appraisal
attached
to
it
produced
higher
value
than
our
assessment
and
I
wouldn't
mention
it
either.
So
I
have
several
cases
with
workers
and
artists
that
copy
them,
based
in
the
same
company
to
every
single
case,
and
just
in
this
case
they
didn't
fill
out
the
loan
application.
A
G
To
the
department
normally
I'll
question:
is
it
true
that
normally
you
take
vacancy
collection
rates
from
a
guidelines
and
if
there's
some
extraordinarily
High
vacancy
rating,
you
know
look
at
the
trend,
but
otherwise,
if
it's
very
low
or
non-existent?
Okay,
and
that's
what
you've
done
here-
13
April
cents.
F
G
You
we
I'm
asking
this
because
you
refer
to
the
nois
being
consistent
with
prior
years
in
the
future
future
estimates,
but
it
seems
great
question
is
given
that
it's
normal
for
you
to
take
under
these
normal
circumstances
the
standard
guideline
vacancy
rates.
It
seems
that
you
upset
that,
because
you
really
didn't
have
13
right,
this
is
being
tortured
but
lower
than
therefore
the
upgrading
expenses
below
what
they
have
been
experiencing.
This
is
a
very,
very
stabilized
property
for
sure
other
than
the
parcels
that
come
in
and
out.
E
C
C
It
accounts
for
any
future
potential
of
that.
Now
it's
important
to
note
that
Virginia
law
requires
generally
accepted
appraisal.
Practice
be
applied
to
assessments
generally
accepted
appraisal.
Practice
does
require
a
uniform
Market
vacancy
and
collection
rate
be
applied,
but
Drea
has
told
us
for
this
property
type.
That
market
rate
is
13,
so
they're
required
by
law
to
apply
that
it's
a
uniformity
issue
as
well
to
say
that,
because
it's
100
lease
there's
going
to
be
No,
Vacancy
loss,
no
rent,
loss,
no
concessions,
and
so
we're
going
to
knock
down
operating
expenses.
C
H
Yeah
Jordan,
the
pro
forma
23
noi,
is
that
factoring
in
the
rent
abatement
for
the
new
tenant.
E
Yes,
Again
by
including
parcel
Andy
with
007
to
the
total
of
economic
units
and
applying
the
load,
the
line
adjustment
of
400
12
600.
We
believe
we
haven't
done
the
issue
of
double
taxation.
We
ask
them
or
to
pay
attention
to
the
noi.
We
use
the
2023
valuation
and
preparing
to
the
last
two
years
of
Illinois,
supported
by
the
MLS.
For
that
being
said,
I
asked
the
board
to
confirm
the
subject's
2023
assessment
at
16
544.
C
Thank
you.
Just
to
summarize,
we
have
the
assessment
increased
by
eight
percent
if
we
stabilize
the
2022
assessment
for
the
double
taxation
that
the
county
used
this
year
to
adjust
that
so
assessment
increased
eight
percent,
while
noi's
decreasing
the
Drea,
did
not
address
why
their
retail
rental
rate
is
higher
than
what's
listed
on
the
1231
rent
roll.
We
use
the
actual
rinse
in
place.
As
of
data,
the
data
value
for
operating
expenses.
That's
the
big
issue.
Again,
it's
5.36
per
square
foot.
Over
the
past
three
stable
years.
H
I
mean
the
county
definitely
put
in
the
work
that
fixed
the
issue
with
the
residential
lot,
so
I
think
that's
kind
of
behind
us
now,
which
is
good
and
we
reduced
it.
Last
year
and
a
little
bit
over
the
number
from
last
year,
I
felt
pretty
comfortable
with
the
number
we
were
at
before.
I
got
a
new
10-year
lease
I,
like
I,
wouldn't
see
like
a
two.
B
H
A
Right
I
mean
I,
agree.
I
I
feared
the
appellate's
argument
that
the
expenses
are
low,
which
I
would
agree.
But
when
you
look
at
so
was
the
income
I
mean?
Because
when
you
look
at
the
noi,
the
ROI
speaks
for
itself.
So
I
think
you
know
I
can
see
why
the
county
didn't
do
a
test.
So
I'm
fine
with
the
assessment.
A
Well,
relative
to
I'm
sorry,
the
noi
Islam.
G
I
understand
and
appreciate
that,
but
why
I
asked
my
question
the
way
I
did
up
front
this
13
everybody
gets,
it
must
have
got
50.
Okay,
you
get
when
you
get
zero
over
15
right
right
and,
of
course
it
knew
the
answer,
but
I
wanted
to
set
up
my
logic.
The
logic
PCP,
and
that
is
that
the
operating
expenses
are
the
operating
expenses
and
to
say:
well,
they
have
low
vacancy
and
concessions
historically.
G
A
G
Well,
what
I
did
was
when
Charlie
took
added
about
70
000
to
70
000,
to
experiences
to
make
it
about
200
I
forget
that,
but
about
235
000,
whatever
it
is,
and
I
did
all
the
caps
in
the
reproduction
and
all
that
stuff.
I
came
up
with
a
number
I,
don't
know
if
this
is
good
or
bad,
but
15
millionaire,
585.
H
A
I
I
wanted
to
point
out
a
Ken
on
the
summary
sheet:
the
proforma
column,
the
the
appellance
numbers
I,
think,
is
miscalculated
on
the
expenses
because
they're
taking
the
18
out
of
the
total
income
that
they're
not
deducting
the
vacancy,
so
that
number
should
be
instead
of
250
some.
It
should
be
195
791
and
when
I
calculated
the
18.
I
If
we
were
to
use
on
the
assessment
it
becomes
to
about
a
hundred
and
ninety
eight
thousand,
so
they
were
pretty
close
and
again,
you
know,
looking
at
the
noi
I'm
pretty
comfortable
with
the
assessment,
the
way
it
is,
but
if
there
was
any
adjustment
to
be
made
based
on
the
expenses,
you
know,
I
think
the
only
increase
that
I
would
see
is
to
increase
the
expenses
to
18,
which
would
increase
to
like
I,
said
198
000
042
instead
of
165,
but
I
would
lower
the
value
by
all
about
a
half,
a
million
dollars
to
16
million
91
800.
I
But
yeah
I
think
the
column
is
a
little
bit
misleading
because
the
number
is
incorrect.
A
A
C
C
C
By
choosing
to
leave
the
capitalization
rate
unchanged
from
the
past
six
years,
the
Drea
has
ignored
all
factors
that
would
either
increase
risk
in
the
office.
Market
decrease
profitability
in
the
market
for
increase
in
required
minimum
return
or
opportunity
cost
of
owning
Office
Buildings
in
the
market.
The
Drea
did
make
adjustments
to
the
cap
rate
in
the
past
to
reflect
Market
changes
in
2010,
the
Drea,
then
under
the
direction
of
Tommy
rice
increased
the
cap
rate
by
175
basis
points
to
reflect
the
increased
cost
of
capital
and
risk
in
the
Market
at
that
time.
C
For
2023
an
appropriate
tap
rate
adjustment
is
200
basis
points
to
reflect
the
increased
opportunity
cost
and
the
increased
risk
present
in
the
office
Market.
As
of
the
data
value,
now,
the
minimum
required
return
on
office
Investments
increased
significantly
over
the
course
of
2022..
This
is
because
the
Federal
Reserve
hiked
interest
rates
more
aggressively
over
the
course
of
2022
than
it
had
at
any
time.
In
recent
history,
the
federal
funds
rate
began
increasing
in
March
of
2022
and
ultimately
increased
by
425
basis
points
over
the
course
of
the
year.
C
This
is
important
because
the
10-year
T
bill
is
commonly
used
as
a
proxy
for
the
minimum
required
return
for
Real
Estate
Investments
236
basis
points
increase.
Is
higher
than
any
other
year
in
the
past
50
years
and
significantly
higher
than
the
160
basis
point
increase
experienced
in
2009
during
the
last
financial
crisis,
at
which
time
the
Drea
increased
cap
rates
by
175
basis
points
the
following
year,
if
the
risk-free
rate
increases
by
the
highest
rate
in
the
past
50
years,
the
floor
for
risky
office,
Investments
necessarily
increases
as
well.
C
C
C
C
Another
component
of
the
capitalization
rate,
the
return
on
investment
and
the
riskiness
of
the
investment
have
fundamentally
shifted.
As
of
January
1
2023,
due
to
the
institutionalization
of
hydrate
work
over
the
past
three
years,
the
United
States
has
undergone
a
fundamental
transformation
in
the
way
we
work
and
with
that,
the
demand
for
office
space
has
decreased
drastically
to
call
work
from
home
and
hybrid
work
policies
once
in
a
lifetime
is
an
understatement.
This
is
more
akin
to
the
Industrial
Revolution,
a
structural
change
in
society
with
noted,
impacts
on
sectors
cheap
among
them.
C
The
office
sector,
as
a
Drea
has
told
the
board
the
pandemic
is
over.
Covet
is
over.
It
is
time
to
assess
office
properties
accordingly,
this
is
now
the
fourth
year
in
a
row.
The
Drea
has
assessed
properties
as
the
covet
related
work
from
home
policies
are
only
temporary
and
have
no
impact
on
office.
Risk
investors
and
owners.
New
hybrid
work
policies
and
reduced
demand
were
here
to
stay
because
of
the
data
value.
The
stickiness
of
work
from
home
and
hybrid
work
policies
has
borne
out
over
the
past
three
years
and
was
a
known
fact.
C
As
of
the
data
value
office,
demand
was
known
to
not
be
on
the
rebound
to
pre-pandemic
levels.
We
can
see
this
in
the
data
vacancy
and
sublet
space
available
have
increased
significantly.
Net
absorption
has
been
negative
each
of
the
past
three
years.
New
leases
are
for
smaller
footprints
on
average
than
before.
The
pandemic.
Tenants
are
not
physically
using
the
office
space.
They
sign
before
the
pandemic,
signaling
a
likely
decrease
in
the
amount
of
space
they
retain
upon
expiration.
C
New
leases
are
for
shorter
terms
and
often
include
early
termination
options.
Additionally,
another
2.5
million
square
feet
of
new
office
was
set
to
come
online.
As
of
the
data
value,
the
reduced
demand
has
impacted
not
only
occupancy,
but
also
profitability.
Again,
we
see
this
in
the
data,
rental
rates
have
decreased
across
the
board,
concessions
have
increased
dramatically,
vacancy
has
increased,
so
the
office
Market,
as
of
the
data
value,
had
dramatically
reduced
demand
and
lower
net
effective
rents,
both
of
which
showed
no
signs
of
abating.
C
Clearly,
the
office
Market
was
riskier
and
less
profitable
on
the
data
value
2023
than
it
was
January
1
2018
when
the
Drea
last
adjusted
office
cap
rates.
So
where
does
this
leave
this?
In
addition
to
seeing
the
10-year
t-bill
increase
by
236
basis
points
over
the
course
of
2022.
again,
with
more
increases
known
to
be
coming?
We
also
looked
at
market
sales
that
occurred
most
recently
in
the
county
by
sales.
They
close
between
October
2020
and
February
2022
to
update
these
sales
to
reflect
the
market.
C
C
C
Now
it's
important
to
note
that
these
five
sales
were
some
of
the
best
tenanted
buildings
in
the
county.
The
average
occupancy
at
the
time
of
sale
was
95
percent,
with
a
weighted
average
lease
term
remaining
of
over
seven
years.
Additionally,
many
of
the
tenants
were
captive.
Tenants
due
to
the
extensive
build
out
they
had
invested
in
the
property.
Many
of
these
tenants
also
require
in-office
work
due
to
the
nature
of
their
work.
So
the
January
1
market
cap
rate
for
well-occupied
buildings
was
7.25
percent.
C
The
subject:
property
1981
effective
age,
higher
than
Market
vacancy,
is
assessed
at
a
market
cap
of
only
six
percent,
only
74
occupied
and
a
remaining
wall
of
3.7
years.
In
addition
to
reduced
demand
and
profitability.
Again,
the
supply
of
office
space
in
the
county
is
set
to
increase
by
2.5
million
square
feet.
Clearly,
the
office
Market
is
riskier
than
it
has
been
at
any
time
over
the
past
six
years.
C
This
was
known
while
hindsight
is
2020,
and
we
know
today
that
properties
are
training
trading
for
double-digit
cap
rates,
some
as
high
as
14
percent,
knowing
what
we
knew
as
of
the
data
value,
a
minimum
of
200
basis
points
above
the
January
1
2022
tap
rate
is
appropriate
in
closing.
I
want
to
State
Eileen
and
I
have
spent
hundreds
of
hours
researching
The
Capri
and
the
drda
guidelines,
but
simply
the
guidelines
do
not
reflect
the
market
as
of
the
data
value
and
result
in
assessments
greater
than
fair,
fair
market
value.
C
B
Actually
going
to
speak
for
the
first
couple
of
minutes
of
Madam
chair,
if
you
don't
mind
so
the
office,
the
county
is
confident
in
the
cap
rate
announced
conducted
for
the
2023
cap
rates.
As
the
agent
stated,
cap
rates
have
remained
consistent
for
the
for
2021
through
2023,
but
they
have
been
historically
conservative
each
year
we
conduct
an
annual
internal
cap
rate
analysis,
which
includes
researching
and
analyzing
market
sales
that
are
local
sales
review
and
Publications,
and
these
Publications
are
typically
through
third
quarter
of
each
year.
B
B
What
we
found
was
that
office
sales
this
year
were
pretty
limited,
but
it,
but
to
account
for
the
the
no
changing
the
cap
rates.
We
also
look
at
each
property
individually
when
we
that
are
under
appeal.
We
are
using
a
net
effective
rent.
If
you
look
at
any
of
the
cases
that
are
coming
before
you,
these
are
net
effective
rents
that
are
applied,
which
is
taking
account
all
concessions
that
are
I'm,
sorry,
concessions
that
are
being
offered
for
these
tenants.
We
are
also
using
a
higher
TI
rate
than
last
year.
B
Last
year
was
70.
This
year
is
ninety
dollars.
In
addition
to
that,
we
are
taking
a
below
the
line.
Reduction
I
mean
a
deduction
for
leasing
commissions,
so
we
are
actually
looking
at
what's
happening
in
the
market,
without
making
adjustments
going
back,
making
adjustments
to
a
cap
rate
that
we
feel
confident
in
as
of
the
date
of
the
of
the
assessments.
B
In
addition
to
that
I
just
want
to
address
the
cap
rate,
I
mean
the
t-bill
comment
a
little
bit.
The
t-bill
rate
is
a
national
rate
when
we
look
at
the
market.
Sales
for
our
cap
rate
analysis
we're
looking
at
local
market
sales,
so
that
rate,
isn't
it
shouldn't
be
taken
into
account
for
for
our
evaluation,
we
also
consulted
with
neighboring
jurisdictions.
They
also
don't
factor
in
the
cat.
The
T
bill
into
their
cap
rate
analysis.
We
don't
feel
that
that
argument
should
be
should
be.
B
A
lot
of
ways
should
be
supported
to
that
argument.
In
this
particular
case,
the
what
we
have
found
is
that
when
we
look
at
the
cases
for
the
upcoming
cases,
the
gross
potential
income
is
not
particularly
used
in
a
lot
of
these
cases.
B
They
are
providing
an
actual
income
which
does
lower
our
projects
a
lower
income
than
what's
actually,
which
should
be
it's
projected
for
the
property,
and
we
just
want
you
to
understand
that
we're
using
a
stabilized
gross
potential
and
vacancy
when
we
are
projecting
these
cases,
they're
projecting
a
an
effective
gross
income.
I'll
jump
in
if
Rob
has
anything
else
that
he
needs
for
me
to
comment
on.
J
Thank
you
for
this
particular
case,
4040
Fairfax.
If
we
can
turn
to
the
summary
page,
this
property
has
been
leasing
up
year
over
year
from
2019
at
46
vacant
to
40
in
2020
33
in
2021
and
in
2022
they're
at
26
percent
vacant
for
the
property.
The
original
assessment
did
calculate
a
higher
vacant
square
footage.
We
did
make
corrections
to
this
case
using
the
2022
INE,
and
so
we
captured
it.
J
26
percent
47
869
square
feet
to
be
exact
vacant
for
this
property
you'll
see
that
we
did
do
a
reconstruction
for
the
2022
INE.
What
the
Reconstruction
represents
is
the
added
income
that
is
potentially
for
this
property
based
on
that
vacant
square
footage.
So
if
you
compare
columns
e
to
E1,
you'll
see
that
in
20
in
column
e,
they
didn't
report
the
vacant
income
for
that
square
footage.
J
So
what
we
did
is
we
used
in
E1
the
the
agents
inputted
income
to
kind
of
demonstrate
what
the
potential
income
of
the
property
should
be.
If
you
scroll
down
to
the
noi
and
compare
e
to
E1
you'll,
see
that
there's
a
difference
there.
J
The
main
difference
again
is
that
26
vacant
income
that
the
department
imputed
to
give
the
board
a
general
idea
of
what
this
projected
income
should
be.
If
you
inputted
that
income
of
the
26
vacant
square
footage.
J
When
looking
at
the
test
in
column
F,
the
department
used
the
rent
roll
to
determine
what
were
the
leases
in
place.
Based
on
that
rental,
the
county
found
that,
for
the
leases
in
place,
the
average
was
40.95
and
Retail
was
forty
six
dollars.
You'll
see
that
we
did
take
out
concessions
for
this
property
and
we
imputed
a
per
square
foot
rate
of
36.85
for
leases
in
place.
J
Thirty
four
dollars
for
vacant
square
footage
and
the
rest
of
the
the
retail
at
forty
six
dollars
a
square
foot
almost
similar
to
what
the
appellant
has
projected
in
column.
G1
you'll
see
that
our
figures
are
somewhat
close,
only
two
dollars
off
on
the
vacant
square
footage
again,
our
our
vacant
square
footage
was
based
on
the
new
leases
that
were
teneted
in
this
property.
You'll
see
there
that
there
is
a
2023
lease
if
you
turn
to
the
rent
roll
on
the
County's
analysis,
there's
a
one.
J
Two
three:
five:
twenty
twenty
two
leases
and
the
average
for
those
new
leases
or
is
37.97
again.
The
county
is
using
thirty
four
dollars
to
account
for
concessions
for
those
leases
and
overall,
if
you
look
at
the
noi,
you'll
see
that
in
the
test
column,
the
county
did
arrive
at
a
slightly
higher
slightly
higher
noi
compared
to
the
original
assessment.
This
is
again
to
capture
the
the
added
tenancy
in
the
in
the
building.
Again,
the
original
assessment
we
captured
at
59
253
square
feet
vacant.
J
We
did
adjust
for
the
test
and
lowered
that,
based
on
the
rent
roll
at
forty,
seven
thousand,
eight
sixty
nine
square
foot
bacon
and
as
a
result
of
the
test,
we
asked
that
the
board
confirmed
the
original
assessment
at
55
million
133
700.
B
I
just
want
to
make
one
comment:
I'm,
sorry,
so
I
just
want
to
I
just
want
to
reiterate
that
we
value
as
of
January
1..
All
the
data
that
we
use
is
through
third
quarter
of
the
prior
year.
We
do
try
to
take
into
account
any
sales
that
occur
after
that
quarter,
but
we
do
not.
B
H
Yeah
Jordan,
when
you
were
talking
about
the
five
sales
and
the
average
cap
rate,
that
was
from
a
study
and
you
you
said
7.25,
but
that's
I'm,
assuming
that's
not
what
the
tax
rate
loaded
into
the
actual
cap
rates.
Probably
like
you
know,
8.28
or
something
like
that,
but.
C
K
Yeah
from
Jordan
I
have
other
jurisdictions
done
regarding
the
cap
rate
for
Office
Buildings
have
any
of
them
changed.
C
D
Also,
the
city
of
Alexandria
on
appeal
has
been
increasing
office
cap
rates
by
50
basis
points,
so
Alexandria
is
a
little
bit
more
in
tune
with
recognizing
actually
the
cap
rates
associated
with
individual
properties.
But
you
know
so.
If
there's
a
high
vacancy
Rate
Property,
it's
going
to
have
a
higher
cap
rate.
If
the
there's
a
lot
of
Capital
Improvements
that
are
needed
at
the
property,
they'll
have
a
higher
capitalization
rate
but
again
on
appeal.
They've
been
going
up,
50
basis
points.
K
J
K
Well,
you
came,
but
let
me
ask
Jordan
I
I
I'm
just
going
to
follow
up.
If
you
don't
mind
so
the
vacancy
in
this
went
from
46
to
40,
to
36
to
26.
K
K
C
I
think
it's
one
of
the
more
affordable
properties
in
the
Boston
sub
Market
I.
If
you
all,
are
familiar
with
this
building,
it's
kind
of
it
kind
of
stands
out
for
its
age
and
Condition.
It's
the
black
building,
it's
in
between
J
Seoul,
on
one
side
and
and
the
other
side.
You
have
Bronson
beer
hall.
So
it's
it's
a
again.
It
was
built
in
1966,
effective
age
assigned
this
year
of
1981..
So,
while
I
don't
know
specifically
what
they
their
marketing
program
was,
I
would
have
to
assume
it's.
C
D
Lawson,
the
leases
have
gone
to
a
shorter
duration,
the
weighted
average
lease
term
or
wall
to
this
property.
Jordan
I
think
you
said
it
was
3.6
years
so
they've
also
increased
concessions
and
the
rental
rates
have
declined
to
get
people
in
the
building.
Okay,.
J
Yes,
so
with
Fairfax
County,
they
also
lower
the
cap
rate
based
on
effective
age
as
well,
whereas
the
county
has
used
a
wider
range
to
reflect
the
cap
rate.
So
when
you're
looking
at
this
property
to
answer
your
second
question,
what
what
have
they
done?
They
did
amenitize
the
building.
They
did
create
spec
Suites,
which
would
you
know
lease
up
a
lot
faster
than
you
know.
Just
you
know
a
a
vacant.
J
What
do
they
call
it?
The
a
demise
floor,
if
you
will
so
it
did
make
these
spaces
readily
available.
It
did
take
a
lot
of
the
Imagination.
If
you
will
out
of
the
minds
of
the
future
tenants
they
created
spaces
where
they
can
kind
of
plug
and
play
so
to
speak.
If
you
see
I
added
the
co-star
report
to
this
property,
we
have
captured
the
effective
areas
at
1981..
J
You
can
see
like
they
create
a
deck
area.
The
bathrooms
have
been
improved.
The
spec
Suite
so
give
you
a
general
idea
of
the
picture
of
the
spec
Suites
on
page
11
of
99.,
and
when
looking
at
this
property
and
looking
at
our
sales,
our
sales
support
our
current
cap
rates.
J
You
see
that
there
was
no
change
when
looking
at
our
commercial
guidelines.
If
the
boy
remembers
all
the
sales
that
were
included
our
assessment,
the
sales
ratio
based
on
the
last
few
years
have
been
relatively
low,
and
that
is
because,
although
our
cap
rate
didn't
change,
we
did
every
year
make
adjustments
to.
You
know
the
the
market
rents
that
we're
seeing
based
on
the
rent
rolls
based
on
the
feedback
that
we're
receiving
even
input
from
Eileen
and
Jordan.
J
Saying
hey,
you
know,
take
a
look
at
concessions,
so
we
added
concessions
one
year
because
we
were
able
to
you
know
analyze
those
concessions,
because
they
were
provided
more
in
detail
in
the
rent
rolls
so
from.
As
the
board
remembers,
we
increased
from
six
percent
to
ten
percent
and
now
I
believe
leave
Eileen
and
Jordan
are
pushing
for
12,
because
that's
what
they're
seeing
in
the
current
market.
So
you
know,
as
as
we
follow
the
market,
we
do
make
adjustments
and
there's
different
ways
to
affect
the
value.
D
Chairman
I'd
like
to
enjoy
address
the
if
I
could
address
the
two:
the
sales
assessment
ratio,
because
that
is
brought
up
and
it's
absor
information.
A
A
J
Yes
again
we're
looking
at
the
this
case,
we
do
see
that
the
noi
is
Justified
based
on
the
original
assessment
and
our
test.
We
did
demonstrate
what
the
INE
should
look
like
when
projecting
for
all
square
foot
of
the
property
when
respect
to
the
sales
affecting
the
effective
age
and
affecting
the
cap
rate
of
this
property,
we
are
looking
at
all
evidence
to
to
demonstrate
exactly
what
these
cap
rates
are.
J
We
you'll
see
in
in
future
cases
that
we've
asked
for
the
appraisals
when,
when
the
property
has
sold,
we
did
ask
and
emailed
the
appellants
and
the
Agents
what
these
cap
rates,
what
the
purchase
agreement
was
if
we
can
get
a
copy
of
that,
what
the
appraisals
are
to
kind
of
demonstrate,
what
the
cap
rates
have
shown,
as
the
board
remembers
in
our
first
two
or
three
cases
of
this
year
in
office,
there
were
appraisals
attached
to
the
cases,
and
the
cap
rates
supported
our
current
cap
rates
for
these
properties.
A
J
C
Thank
you.
First
off,
we
did
not
receive
a
request
for
a
purchase
agreement
for
this
property
or
appraisals
that
maybe
other
properties
Mr
Peralta
is
talking
about
now.
As
for
the
sales
supporting
the
historical
cap
rates,
that's
simply
not
the
facts
on
the
ground.
Look
at
two
sales
in
particular
675
North
Randolph
sold
September
of
2021.,
the
Capri
at
sale
per
the
buyer
6.14
percent.
C
C
These
properties,
it's
important
to
note,
are
96
and
100
occupied
some
of
the
best
tenanted
buildings
in
the
county.
Now
it's
Illustrated.
There
were
three
sales
in
December
of
2022.
so
to
test
the
Drea's
guidelines.
Let's
look
at
these
sales
that
the
county
by
their
own
admission,
did
not
have
time
to
adjust
to
to
recognize
the
sale
price.
C
So
we
have
1805
1840
Wilson
Boulevard
sold
for
10.5
million
December
16th
of
last
year,
2023
assessment,
21.3
million
a
200
percent
assessment
to
salaries
ratio,
1776
Wilson
sold
was
assessed
this
year
at
115
of
the
sale
price
and
2445
Army
Navy
Drive
sold
in
December
of
last
year
assessed
at
140
percent
of
the
of
the
sale
price
using
the
County's
guidelines.
Clearly,
the
guidelines
are
not
reflective
of
the
market.
Thank
you.
H
I'm
sitting
here
watching
an
auction
for
a
very
similar
we're,
almost
building
in
Tyson's
walking
distance
to
Spring
Hill
Metro.
The
current
bid
is
70
a
square
foot
and
it
ends
in
one
hour,
so
I
mean
we're
in
July
seven
months
from
January,
but
that
I
just
want
to
put
that
data
point
out
there
very
similar
71
occupied
1986
office,
credit,
tenants,
okay,
seventy
dollars
a
square
foot,
this
property.
Now
the
department
has
assessed
297
dollars
a
square
foot.
H
The
issue
I
had
that
pointed
out
with
the
county
on
the
corpaz
cap
rate
study-
is
that
he
completed
that
study
in
spring
and
summer
of
last
year,
published
it
in
August
with
the
data
valuation
of
January
1st
2023..
So
he
was
looking
forward
into
the
future
into
his
crystal
ball
when
and
I'm
going
to
use
sofa,
because
that's
what
real
estate
lending
is
based
on
now,
but
sopher
was
1.9
in
August
when
he
published
the
report
and
it
was
in
January
23.
H
It
was
4.1,
which
is
the
difference
between
2.2
or
220
basis,
points.
H
This
cap
rate
argument
is
very
real
if
you
point
to
the
corporate
report,
it
is
a
dated
report.
As
of
January
1st
I
suggested
that
the
county
get
him
to
amend
it
and
update
it
on
January
1st,
and
then
we
wouldn't
be
adding
these
arguments.
We.
H
With
the
court
bags
report,
but
they
declined
to
do
that
so
I'm
I'm,
somewhat
inclined
to
go
with
the
I
mean
if
you
think
2.2
it
added
to
the
7.2
cap
rate
that
Peter
Corp
has
recommended
you're
at
9.4,
but
I
do
know
that
real
estate
lags
interest
rates
and
so
I'm
kind
of
looking
at
an
8.5,
because
I
think
Jordan's
sale,
comps
support
that.
H
So,
if
I
put
an
eight
and
a
half
cap
on
this
thing,
I
come
up
with
46
million
423
900,
which
I
think
is
still
too
high.
But
it's
250,
a
square
foot
and
I.
Think
it's
going
to
come
down
again
next
year.
K
Yeah
I
can't
I
did
something
kind
of
similar
and
and
I
guess,
I'm
going
to
say
that
for
the
years
I've
been
on
this
board,
I've
heard
the
arguments
from
Property
Owners
why
their
property
is
not
worth
what
it's
assessed
at
and
then
it
sells
two
months
after
we
had
the
hair
before
that
for
more
than
what
the
cap,
what
the
set's
value
was.
K
But
this
is
different
and
I
think
that
the
world
has
changed
and
you
know
I
read:
I
read
the
material
that
was
supplied,
I
read
it
again
this
morning
and
I
think
the
cavity
is
just
disassociated
from
reality.
In
this
with
the
office
situation,
this
particular
property
has
trended,
it's
gone
from
46
to
26
percent.
So
what
I
looked
at
was
an
8.2
cabinet.
K
F
H
K
You
know
that
one
of
the
things
that
I
found
that
was
really
interesting
is
somewhere.
It
said
that
if
a
lease
has
a
termination
date,
lenders
are
assuming
it
will
in
fact
terminate
they're,
not
saying
it
or
they'll,
probably
renew
they'll
they're
they're,
assuming
they're,
going
to
terminate
thinking
it's.
What
I
found
persuasive
that
happened
in
my
own
building.
G
A
H
G
K
G
Family
I,
don't
know
so
I'm,
also
very
sensitive
to
fair
market
value,
but
being
equal
to
or
this
contention
is
greater
than
the
numbers,
the
initi
by
picking
so
you're
making.
Yours
is
very
logic
of.
G
G
Sure
I
mean
the
Department's
contention
is
that
we
not
only
look
at
core
packs
which,
which
I
clearly
make
the
case.
It's
it's
weak
rule
in
such
a
dynamic
economy
that
we
had
last
year,
but
they
say
we're
looking
at
all
sales
which
aren't
a
lot.
But
that's
what
you
look
at
to
get
a
cap
rate.
What
are
people
paying
square
foot
for
this
kind
of
building
and
the
department
of
defends
themselves
in
a
logical
way
and
I'm
really
sympathetic
to
everything?
You've
said
right:
I'm
not
blowing
up.
G
H
H
That
is
trying
to
find
somebody
to
pay
100
bucks,
a
square
foot
for,
and
they
can't
fly
so
that
we're
not
going
to
see
that
sale
until
who
knows
when
it'll
go
into
pre-foreclosure
foreclosure
and
the
lender
is
going
to
take
it
over.
We
won't
see
that
sale
profit
until
the
markets
come
back
up,
but
we
know
the
value.
H
H
And
you
know
multi-penant,
where
you
got
a
couple
of
campaign
marketing
companies
they're
going
to
be
out
of
here
after
the
next
election
anyway,
and
you
know
things
like
that,
it
Marymount
just
built
their
new
building
right
and
how
long
are
they
going
to
stay
here?
Market's
going
to
look
at
that
and
say
I'm
going
to
Discount
that
you
know
you
know
so.
I
think
that
Katie
picked
the
right
time
to
leave.
H
I
Where
are
you
on
this?
Well,
historically,
we
haven't
made
any
changes
and
I
feel
confident
that
you
know
the
county
has
always
done
their
homework
to
come
up
with
cap
rates.
It's
not
like
they
just
ignore
it
and
try
to
see
you
know
it's
and
a
lot
of
the
comparisons.
I'm
hearing
it's
from
you
know,
looking
at
other
jurisdictions
that
we
normally
don't
see
even
DC
that
is
so
close
to
Arlington.
I
We
don't
even
look
at
you
know
what
they
do
over
there
for
what
care
cap
rates
are,
and
you
know
the
value
itself
is
lower
than
previous
years.
I,
don't
think
so.
I
think
the
vacancy
has
you
know
like
they
showed
is
not
going
down,
but
I
feel
I'm.
Okay,
with
the
current
assessment.
The
way
it
is
in
the
cap
rate.
G
So
it
makes
you
haven't,
got
another
good
point:
we're
comparing
this
bill
into
this
building
and
I
was
at
4.3
4.8
increase
that
seemed
High
to
me
and
it's
the
first
thing:
I
look
at
it,
but
they've
done
a
good
they've
done
what
they
needed
to
do.
Keep
this
building.
G
You
know
I
would
prefer
making
one
percent
increase,
but
it's
not
a
20
decrease
based
on
the
FED
funds
rate.
It
just
isn't
yeah.
G
K
G
Of
conceptual
campaign-
and
but
you
know
so
in
in
December
of
2024-
some
double-digit
vacancies
going
to
occur
because
of
the
nature
of
the
day.
Because
aren't
we
supposed
to
worry
about
that
that
I
feel
very
uncomfortable,
I?
Think
that's
not
that's
not
how
it's
a
good
randomizing
cylinders
are
analyzed
and
we
sort
of
started
whenever
Bob
was
created
60
years
ago
or
whatever
start.
We
should
just
go
to
get
a
bunch
of
commercial
Realtors
to
sit
out
and
forget
about
everybody
else
and
just
whether
they
think
it's
going
to.
K
G
K
H
A
Is
8.2
but
it's
a
commodity.
K
E
K
H
K
The
193
700
are.
H
F
K
K
G
G
F
K
Awesome
I
make
a
motion
that
we
reduce
the
assessed
value
of
49
million
921
700.,
based
upon
an
adjustment
to
the
test
column,
which
is
number
F
and
utilize.
An
8.2
cap
rate
versus
the
seven
point.
A
C
Yes,
ma'am.
Thank
you,
200
North
Glee.
This
property
is
located
at
Glebe
Road,
it's
just
north
of
the
intersection
of
Highway
50..
If
you're
familiar
with
this
area,
there's
a
car
wash
across
the
street,
some
various
low-rise
retails.
So
this
building
kind
of
sticks
out
on
its
own.
C
At
this
location
it
was
built
in
1970
and
the
issues
on
appealed
in
the
imputed
rent,
the
operating
expenses
and
the
capitalization
rate
and
vacancy
did
increase
at
this
property
year
over
year
now,
I'm
going
to
turn
it
over
to
Eileen
and
she's,
going
to
delve
into
the
issues
a
little
further.
Thank
you.
D
So
I'm
going
to
just
just
initially
focus
on
the
capitalization
rate
guidelines
that
the
department
used
and
in
their
guidelines
they
state
that
there
are
a
number
of
factors
that
were
used
to
develop
the
cap
rates.
One
was
market
sales
and
in
the
board
in
the
County's
guidelines.
They
list
a
number
of
sales.
D
The
county
has
since
gone
back
and
reduced
that
assessment,
but
it
shows,
based
on
the
initial
201
percent
assessment
sale
ratio,
that
the
guidelines
do
not
produce
an
assessment
in
accordance
with
bear
market
value,
the
second
sale
and
they
they
actually
went
back
and
decreased.
That
assessment
by
24.
D
D
So
next
year,
when
we
see
the
guidelines
or
we
see
the
office,
sales
you'll
be
seeing
those
assessments
at
a
reduced
rate,
and
it
will
appear
that
the
assessment
sale
ratio
was
closer
to
correct
the
sales
that
are
used
by
the
county
and
by
Mr
corpax
and
I'll.
Just
go
through
a
few
of
them
in
a
little
bit
more
detail.
D
What
we
have
is
a
situation
in
which
properties
that
are
tenanted
by
defense
contractors
or
Mission,
critical
or
secured
buildings
are
are
more
valuable
now,
because
those
tenants
can't
work
from
home,
so
those
buildings
are
are
basically
a
carve
out
and
in
Arlington
County.
D
Then
the
sale
cap
rate,
the
owner
of
that
building,
is
an
investment
fund
that
investment
fund
specializes
and
invests
in
its
criteria
are
government
tenanted
buildings
and
there
is
a
set
rate
of
return
in
that
fund.
This
building
fit
that
rate
of
return
and
tenant
occupancy,
and
that
is
why
this
building
was
bought
by
them
and
even
with
those
lower
rates
of
return
requirements,
they
still
were
at
a
six
four
one
four,
while
the
county
is
valuing
it
as
a
5.4.
D
Now
we
can
speak
with
the
owner
and
the
seller
of
that
building
and
the
owner
said
that,
as
of
January
1
of
this
year,
they
would
have
valued
it
at
a
6.89
rate
to
a
7.14
rate.
The
seller
believes
they
would
get
in.
If
they
were
going
to
the
market,
they
would
get
an
eight
percent
rate,
another
sale
that
the
county
references
is
Sequoia,
Plaza
and
Sequoia.
Plaza
is
2100
2110
and
2120
Washington
Boulevard.
D
That
sale
took
place
in
21
and
again
this
was
to
Boyd
Watterson,
and
this
was
for
a
different
investment
fund
that
they
have
and
this
sale
at
the
time
of
sale
was
99
occupied
by
Arlington,
County
and
the
sale.
The
purchase
cap
rate
was
a
5.34
again.
D
That
fund
was
formed
prior
to
the
change
in
the
financial
markets
and
is
a
lower,
but
had
a
lower
required
rate
of
return
than
the
than
most
investors
I,
the
Walt
on
that
sale
or
the
weighted
average
lease
term
was
9.72,
so
you
have
a
well
tenanted
property.
That's
99
occupied
with
almost
10
years
of
lease
term
left
the
owners
of
that
property
said
that
they
would
pay
that
for
that
property
on
January
1
2023
between
6.09
and
6.34.
D
The
county
is
slightly
lower
on
that
property,
but
this
seems
to
be
the
property
on
which
the
guidelines
are
built.
So
if
you
have
a
what
I'll
call
a
unicorn
property,
a
property
with
10
years
of
weighted
average,
lease
term
or
Walt
left,
you
might
pay
someplace
around
6.09
to
634
in
terms
of
the
cap
rate,
another
Arlington
sale
again,
we've
mentioned
at
2900,
Quincy
was
purchased
and
Jordan
indicated
at
a
6.8
percent
cap
rate,
as
of
January
1.
D
The
buyer
of
that
property
would
not
buy
it
for
less
than
a
nine
percent
cap
rate
and
the
seller
of
that
property
did
not
believe
that
if
they
took
it
to
Market
on
January
1,
they
would
be
able
to
sell
it
for
anything
less
than
a
9.4
to
a
9.8
percent
cap
rate.
The
county
used
a
5.85
percent
market
cap
to
Value
this
property,
almost
a
full
hundred
basis
points
below
the
rate
that
was
used
in
purchasing
it
another
sale.
The
county
references
is
1400
Crystal,
which
sold
at
a
5.75.
D
D
So
in
short,
the
sales
referenced
in
corepax's
study
had
a
95
occupancy
rate
and
a
weighted
average
lease
term
or
Walt
of
seven
years.
D
The
county
also
says
in
their
guidelines
that
they
used
that
their
rates
were
based
on
the
financial
markets.
We
have
asked
repeatedly
what
in
the
financial
markets,
supports
their
capitalization
rate
and
we've
received
no
response.
During
our
hearings,
we've
asked
about
the
cap
rates
and
we've
been
told.
No
discussion
will
be
had
on
the
cap
rates
and
in
fact,
we've
asked
for
meetings
on
the
cap
rates
and,
and
that
has
not
occurred.
D
So
the
financial
markets
do
tell
a
story
and
Jordan
went
through
the
Fed
rates
and
he
went
through
so
far
and
something
that
does
occur
on
a
daily
basis
is
properties
are
repriced
by
the
financial
markets
every
single
day
and
those
are
in
real
estate.
Investment
trusts
that
are
traded
and
local
real
estate.
Investment
trusts
such
as
jbg
Smith,
went
down
35
percent
over
the
year,
Brandywine
went
down
56
percent
over
the
year,
Boston
properties,
I'm,
sorry,
I,.
D
Okay,
the
other
item
that
I
will
mention
is
that
the
department
states
that
they
referenced
Publications
in
our
board,
it'll.
B
B
Rob,
let
me
just
let
me
just
speak
for
a
second,
so
I
just
want
to
I
just
want
to
go
back
a
little
bit
and
just
talk
about
the
guidelines
and
how
they're
developed
every
year
we
are
actually
using
market
sales
that
occur
that
occur
approximately
12
months
behind
the
market.
So
there
is
a
and
like
we're
using
the
mass
appraisal
approach
to
valuing
these
properties.
B
Our
guidelines
are
developed
using
actual
income
and
expense
data
that
is
reported
from
each
property
class.
That
information
is
that
we
use
for
that,
for
the
2023
guidelines
was
2021
in
the
information,
so
there
is
a
lag
everything
we
do.
B
We
understand
that
there
is
a
lag
in
what
we
do
and
we
do
not
take
into
account
additional
information
or
twin
twin
two
information
unless
the
property
is
under
appeal,
some
of
the
properties
that
were
brought
up
that
show
that
there
was
a
change
in
value
were
due
to
additional
information
that
was
provided
our
information,
our
guidelines.
We
feel
very
confident
in
every
information,
because
we
are
taking
that
information
exactly
from
the
properties
themselves.
The
county
has
had
several
conversations
with
the
agent
regarding
the
cap
rate.
B
We
have
eventually
decided
that
we
had,
we
chose
not
to
make
any
changes
to
the
cap
rate,
make
any
adjustments
to
the
cap
rate
of
2023,
and
there
was
no
need
to
have
further
discussions
for
the
cap
rate.
B
It
was
discussed
with
the
director
two
times
with
me,
one
time
and
with
several
other
appraisers,
so
to
say
that
we
haven't
had
a
Calvary
discussion,
isn't
actually
Fair
I
do
want
to
also
note
that
some
of
the
office
sales
that
we
that
we
are
using
office
sales
prior
to
the
analysis
period,
and
we
are
also
looking
at
cap
rates
and
cap
rates
based
on
the
information
that
was
available
prior
to
January
1..
B
The
agent
is
asking
us
to
take
into
account
people
factoring
people's
feelings
and
what
they
feel
the
property
was
valued
should
be
valued.
The
cap
rate
should
be
value
assessed
after
January,
1.
and
I
just
want
to
make
sure
that
we
are
appointing
those
putting
those
things
out.
Sorry
Rob,
please
go
ahead.
J
Okay,
I'm
gonna
concentrate
mainly
on
the
sales.
If
the
board
has
any
direct
questions
regarding
this
property,
I'm
open
to
ask
I
mean
open
to
answer
any
specific
details.
You
may
see
between
the
test,
and
you
know
the
original
assessment
compared
to
what
the
appellant
has
shown
in
their
pro
forma.
J
With
respect
to
the
sales
for
this
for
the
the
office
guidelines,
the
National
Science
teachers,
Foundation
sale
at
201
assessment
sales
ratio
that
is
slated
for
redevelopment,
so
we're
looking
at
that
and
that
included
two
Standalone
retail
retail
buildings,
so
that
is
explained
for
redevelopment
I,
believe
it's
an
apartment
building
so
that
sale
isn't
a
true
office
sale.
If
you
sort
of
speak,
when
you
look
at
a
1776
Wilson
that
did
come
before
my
review
this
year,
we
did
make
adjustments
that
sale.
J
We
did
request
the
the
appraisal.
It
was
not
provided
if
it
was
compelling
to
say
that
there
was
a
cap
rate
issue
that
would
have
Justified
any
cap
rate
questions
that
the
board
may
have.
Unfortunately,
it
didn't
go
to
the
board.
We
did
make
an
adjustment,
the
sale
that
this
woman
didn't
point
out
is
1300
Wilson
and
that
is
was
at
57
assessment
and
sales
ratio.
J
So
when,
when
we're
talking
about
when
the
appellant
in
this
Borman
and
Jordan
are
talking
about
these
cap
rates,
these
cap
rates-
you
know,
judging
on
on
these
two
sales
that
occurred
in
the
county,
1776
Wilson
and
1300
Wilson
and
again,
1400
Crystal
Drive
came
in
at
65
percent
assessment
of
sales
ratio.
So,
although
our
cap
rates
didn't
change,
what
the
sales
did
show
from
last
year
is
that
we
should
have
reduced
our
cap
rates.
So
again
we
do
follow
the
market.
J
We
do
wait
until
you
know,
cap
rates
have
adjusted
in
the
sales.
Now,
if
you
know
the
current
market
is
in
the
current
climate
is
saying
that
there's
a
20
decrease
in
in
the
sales
or
the
assessments
of
properties.
We
would
love
to
see
those
those
sales
come
in.
Unfortunately,
that's
not
the
case
so
when,
when
the
board
is
teetering
between
8.2
percent
and
8.5
percent,
on
the
last
case,
we
don't
have
that
Liberty
to
make
adjustments
minute.
J
Is
that
from
property
to
property
we
again
are
doing
Mass
appraisal
based
on
the
information
that's
provided
to
the
county?
It's
not
changed
over
the
years.
I'll
go
further
and
and
show
that
we
did
ask
the
appellants
for
875
North
Randolph
4001,
North,
Fairfax,
1100,
North
Glebe
are
up
on
appeal
for
this
year.
We
did
ask
for
the
purchase
agreements.
We
did
ask
for
the
appraisals.
Nothing
has
been
submitted
to
the
county.
J
Thus
far,
I
have
emails
to
show,
and
I
will
include
that
in
these
cases,
in
the
future
cases
that
come
before
you
again
when
we're
looking
at
the
Sequoia
sales.
What
what
Ms
Borman
didn't
elect
to
to
tell
the
board
is
that
we
came
in
at
89
sales
to
assessment
ratio
on
one
of
the
buildings,
62
percent
assessment
to
sales
ratio
on
another
building
and
on
the
third
Sequoia
Plaza
we're
at
55
percent
assessment
to
sales
ratio.
So
you
know
I'll
point
to
our
guidelines.
J
I'll
show
if
the
board
wishes
to
see
a
copy
of
you
know
our
guidelines.
I
have
it
on
my
screen.
If,
if
they
want
to
see
exactly
what
those
ratios
are
and
how
it
compares
to
the
actual
sales
that
came
in
again,
although
we
didn't
change
the
cap
rates,
we
do
make
adjustments
across
the
board
from
the
vacancy
adjustments
to
the
concessions,
and
you
know
we
wonder
if
our
cap
rates
are
supported
with
these
sales.
What
kind
of
rent
are
they
using
when
they
appraise
these
properties?
J
If
our
you
know,
if
our
rents
are,
you
know
much
lower
than
what
they're
using
then
that's
why
our
assessments
are
supported?
That's
why
our
cap
rates
are
supported.
They
may
be
using
a
higher
a
higher
rent
per
square
foot.
They
made
me
adjustments
that
we
don't
typically
see
I
mean
based
on
whatever
climate,
or
you
know
the
appellant
is
suggesting
that
we're
in.
We
have
sympathy
with
respect
to
what
is
happening,
but
as
a
county,
as
you
know,
our
government
body
we're
not.
J
We
don't
have
the
ability
to
adjust
on
the
Fly
we're
going
to
have
the
ability
to
make
you
know.
Cap
rates
based
on
hearsay
based
on
opinions
of
you,
know,
property
owners
that
suggest,
when
led
by
the
appellant,
to
suggest
what
the
cap
rate
may
be
and
what
their
current
climate
is.
J
We
asked
the
board
to
really
consider
and
really
look
at
the
sales
that
the
county
has
it.
You
know
researched
over
the
years
and
really
weigh
that
the
impact
of
what
making
an
adjustment
to
cap
rate
will
do
to
our
assessments.
B
J
B
Just
wanna
I
just
want
to
also
add
that
the
core
packs
report
is
just
a
reference.
I
know
it
was
brought
up
in
the
original
K
in
the
first
case,
but
that's
one
reference
that
the
county
used.
We
also
rely
on
Publications
and
the
actual
market
sales
that
we
analyze.
That
is
one
reference
additionally,
core
pack
study
has
also.
It
has
indicated
that
we
lower
cap
rates.
We
continue
to
keep
our
cap
rates
consistent,
so
I
just
wanted
to
make
that
point.
Thank
you
for
your
time.
K
Lawson
yeah,
this
is
for
Jordan
or
Eileen.
We
have
the
operating
year
2022.
K
in
in
the
the
column
h,
you
have
lowered
that
to
two
million
736.025.
C
Yes,
sir,
so
first
Off
column
e
includes
150
000
in
miscellaneous
income.
That
is
an
insurance
reimbursement
that
goes
to
a
capital
expense
first,
which
Gear
replacement.
So
if
you
look
at
the
prior
three
years
across
all
three
years,
there's
only
140
dollars
in
miscellaneous
income
so
that
that's
an
error
on
the
Drea's
part
to
include
that
in
the
capitalized
value.
That's
a
one-time
insurance
reimbursement
and
I
go
straight
to
Capital
expenses.
It's
not
going
to
be
repeatable.
The.
C
So
I'm
at
column
e
2022
open
year.
It
is
miscellaneous
row.
Six,
so
E6
shows
150
000
in
miscellaneous
income,
that's
insurance
reimbursement.
As
listed
on
the
INE.
The
cap.
The
Drea
was
aware
of
that
and
that's
what
that
is.
You
can
see
again:
19
20
21
total
miscellaneous
income,
140
so
less
than
fifty
dollars
a
year,
so
that
is
an
outlier,
so
that's
part
of
it.
Additionally
the
owner
reports,
net
income
so
stabilizing
it
for
vacancy,
reduces
it,
and
we
also
increase
the
operating
expenses.
C
D
Also
Mr
Lawson:
this
building
has
leases
in
it
that
have
concessions
that
take
place
not
during
the
first
year
of
the
lease
and
which
is
actually
pretty
smart
for
and
I
think
we're
seeing
it
more.
There
are
concessions
in
years
two
year,
three
year,
four
Etc,
so
the
rental
rate
that
we
used
moving
forward
reflects
a
stabilized
concession
rate
of
10
across
the
board
and
those
concessions,
as
I
said,
I
think
there
were
Jordan
correct
me.
D
H
H
H
A
J
Yes,
DARPA
building
was
sold
at
99
of
our
assessment
value
they're
very
when
looking
at
this
property
again.
K
J
Looking
at
our
original
assessment
was
lower
than
what
they
projected
in
the
last
three
years:
2022
2021
and
2020
our
test
column
were
almost
477
000
dollars
lower
than
what
they
reported
in
2022.
This
is
accounting
again
for
the
concessions
for
the
vacancy,
and
we
made
adjustments
based
on
that.
J
You
see
what
the
the
appellons
is
showing
645
thousand
dollars
lower
than
what
they
reported
in
2022
320,
000
thousand
dollars
lower
than
2021
260
000
lowered
in
2020..
Obviously,
there's
a
disconnect
between
what
this
property
could
potentially
make.
If
they're
making
an
argument
on
cap
rate
again
we're
going
back
and
we're
looking
at
what
the
assessment
and
sales
ratio
would
show
based
on
the
sales
value
that
occurred
during
the
assessment
periods
in
the
last
few
years.
Again,
all
the
sales
would
show
that
we
should
lower
the
assessment
and
lower
our
cap
rates.
D
Actually,
I'll
I'll
wrap
up.
So
in
terms
of
this
case,
the
biggest
issue
is
obviously
the
cap
rate,
and
we
believe
that
the
market
has
clearly
stated
that
cap
rates
are
higher
than
the
amount
that
the
county
used.
Given
the
changes
in
the
financial
markets,
given
the
verifications
of
the
sales
given
the
January
1
updates
to
the
sales
and
given
the
sales
that
occurred
post
after
the
FED
started,
raising
rates
and
the
fact
that
the
County's
values
were
115
percent,
greater
on
1776
and
140
percent,
greater
on
24.45,
clearly
24
45,
Army
Navy.
D
This
clearly
indicates
that
the
guideline
capitalization
rates
are
broken.
Their
rates
are
also
much
lower
than
the
rate
they're
lower
than
the
rates
of
their
cap
rates
are
lower
than
the
rates
at
the
time
of
sale
for
all
of
the
sales.
Those
five
sales,
with
the
exception
of
one
I,
also
take
Umbridge.
A
K
Yeah,
here's
the
problem
with
what
the
County's
done
and
let's
say
you
own
a
building
and
you
have
a
loan
on
it.
Let's
say
it's
worth:
100
million
and
your
loan
is
95
million
and
you
want
to
sell
it,
but
the
market
will
not
pay
you
more
than
80
million
you're
not
going
to
sell
it.
K
You're
gonna,
you're
gonna
hold
it
because
you're
gonna
hope
like
hell
that
the
economy
comes
back
before
that
Notes
too,
and
if
it
doesn't,
then
it's
you're
going
to
deed
it
back
in
blue
or
foreclosure
or
the
bank's
put
up,
foreclosed
or
whatever,
and
so
you're
not
seeing
sales
that
prove
that
their
cap
rate's
wrong,
because
they're
not
being
sold
because
the
lender
won't
won't
discount
for
them.
So
I
want
to
share
with
you
that
that's
the
reality
that
everybody
has
that
you're
not
seeing
yeah.
J
K
The
second,
the
second
thing
that
I'll
share
is
that
I
took
the
operating
year
and
I'm,
not
sure
this
is
necessarily
A
Catherine
case,
but
anyhow
I.
B
K
B
K
H
Mean
I
thought
if
it
was
going
to
be
anything
it'd,
be
a
modest
production,
because
I
kind
of
feel
the
same
about
being.
G
K
G
And
so
two.
H
And
a
half
acres
in
Arlington
means
you've
got
a
mission,
critical
diocese,
tenanted
building
that
can
carry
this
thing
until
it
can
be
redeveloped.
So
the
market
would
look
at
this
as
I.
Don't
need
a
huge
return.
I
can
buy
it
at
an
eight
cap
and
and
redevelop
this
thing
and
put
residential
or
whatever
on
it
in
the
future.
But
it's
it.
You
can't.
K
H
G
Of
that
yeah
I've
been
struggling
since,
before
this
assessment
season,
Equalization
season
started
on
the
concept
that
state
law
and
Judiciary
findings
give
a
lot
of
weight
to
fair
market
value,
especially
when
it's
way
off
from
getting
assessments
and
I
can't
figure
it
out.
In
this
particular
case,
helped
me
a
lot
I
think
I'm,
not
sure.
There's
anything
I
heard
that
was
new,
but
I
got
to
tell
it,
and
one
of
them
is
the
time
lap
function.
We
see
that
a
lot
in
residential
and
we
say
out
loud
to
ourselves.
G
Well,
nobody
complains
when
you
know
the
Market's
getting
soft
and
it's
time
lagged.
I
only
complain
when
it's
getting
you
know,
timeline
were
built
up
and
so
over
time
things
kind
of
adjust
themselves
to
this
and
severe
of
mass
appraisal.
Of
course
it's
Trends
over
time,
and
we
talk
about
that.
A
lot.
G
And-
and
these
would
be
the
fair
market
value
argument
well
on
January
1st:
this
is
what
it
would
sell
for
discounting
what
the
buyers
think
it's
going
to
sell,
that's
not
hardcore,
but
when
they
actually
pay
money
that
that
counts.
G
I
take
that
seriously
but
I
don't
know
how
the
department
could
possibly
in
December
of
each
year,
I'll
give
them
not
one
day,
but
an
entire
month
go
through
the
fair
market
values
and
all
the
nuances,
the
6300
commercial
properties
and
another
whatever
it
is:
50
000.,
presidential
properties,
it's
probably
60
000.
G
and
so
I
continue
and
so
I,
don't
think
it's
an
accident
that
mass
appraisal
depends
on
time,
lapse
and
Trends,
and
it's
very
cumbersome
and
it's
like
a
train.
It
takes
a
while
to
stop,
but
eventually
it'll
get
there.
G
It's
easy
to
legislate
and
find
from
the
Judiciary
point
of
view,
no
notes
bear
market
value,
because
that's
really
what
it's
going
to
trade
for
I'm,
very
sympathetic
to
that,
but
I'd
like
to
see
them
figure
out
how
to
do
that
other
than
Through
Time,
Lapse
and
tracks
so
I'm
getting
really
having
voted
for
the
increase.
Last
time.
Only
the
last
case,
because.
F
G
H
And
I
just
want
to
say
to
Rob's
point
when
he's
kind
of
given
the
tables
and
the
things
to
work
with,
he
only
has
a
limited
amount
of
leeway
and
I
appreciate
that
for
sure
it's
up
at
the
higher
levels
of
the
county,
where
they
need
to
pay
stress
in
the
market,
how
to
properly
value
these
things
and
Empower
their
agents
to
proper
these
things,
because
he
does
a
good
job
of
pulling
it
up.
I
mean
these
packages
are
great
Rob
and
Deirdre
and
everybody.
That's
that's
pulling
these
things
together.
H
K
Do
what
we
do
I
mean
you
and
I
negotiate
with
lenders,
and
we
know
we.
We
know
the
trials
and
tribulations
owners
of
office
Builders.
What
they're
going
through
now
and.
H
K
H
F
I
think
it's
quite
a
lot
but
I'm
impressed
with
how
well
I
think
the
county
does
in
the
analyzing
these
numbers
and
bringing
them
up
to
where
they
were
last
year
and
really
their
projections
have
been
good
tweak
here
and
there,
but
the
numbers
are
working
and
the
other
thing
I
made
a
note
of
it
that
lag
time.
It's
the
same
as
we
do
on
the
residential
I
agree.
F
K
I'll
go
ahead
and
I'll
go
ahead
and
and
the
motion
that
we
confirmed
the
current
assessed
value
at
35
million
572,
300
and
I'm
gonna
face
that
upon
based
upon
the
actual
income,
as
has
been
reported.
A
All
right,
I'll,
second,
all
in
favor
aye,
so
that's
unanimous,
the
county
is
confirmed
at
35
million
572-300.