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From YouTube: Board of Equalization Hearing October 12, 2022
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A
A
B
Yes,
thank
you,
madam
chairwoman.
Members
of
the
board
members
of
the
county
good
morning,
901
15th
Street,
is
the
instructor
Pentagon
City
Apartments.
This
property
was
built
in
2002
and
has
325
units
to
start
if
you'd
be
so
kind
as
to
direct
your
attention
to
page
four
of
the
appeal,
you'll
see
the
Drea
summary
page,
it's
important
to
note
the
operating
history
of
this
property.
B
B
Well,
the
county
has
requested
and
was
provided
with
the
January
1st
2022
rent
roll,
which
shows
actual
leases
in
place.
As
of
the
data
value
for
each
of
the
325
units
at
the
property,
this
rent
roll
indicates,
rents
have
decreased
over
the
course
of
2021
and
that
projected
2022
income
is
set
to
be
lower
than
2021.
B
The
county
has
reproduced
this
rent
roll
beginning
on
page
six
of
the
appeal,
if
we
total
the
leases
in
place
and
impute
vacant
units,
at
the
average
rental
rate
for
that
unit
type,
we
get
to
that
total
potential
rental
income
again
of
nine
million
one
hundred
seventy
four
thousand
dollars.
This
is
what
the
lease
is
in
place.
B
So
to
summarize,
these
assessment
has
imputed
potential
rental
income
that
is
greater
than
the
potential
rental
income
reported
on
the
2021
INE
greater
than
the
actual
leases
in
place,
support
and
going
against
that
downward
Trend.
The
property
has
experienced
over
the
prior
three
years:
imputing
the
January
1st
2022,
rent
roll
leases
in
place
to
the
County's
test
column
results
in
a
final
value
of
126
million,
six
hundred
thirty,
eight
thousand
nine
hundred
dollars.
This
is
still
about
1.4
million
dollars
higher
than
the
2021
value
indicates.
B
C
So
with
this
particular
property,
when
I
took
a
look
at
the
2021
rent
roll
and
it's
prior
history
and
reviewing
the
the
rents
that
were
that
they
had
put
in
place,
I
projected
a
very
modest
increase
of
two
percent.
It
was
very
modest:
I
actually
went
to
their
website
and
I
also
checked
out,
co-star
and
they're,
projecting,
for
example,
their
Studios
they're,
projecting
or
Studios
efficiency.
C
However,
you
want
to
call
it
they're,
projecting
those
that
are
much
higher
rate
at
an
average
of
two
thousand
and
fifty
dollars
a
month.
That's
an
average
when
I
review,
like
I,
said
co-star
and
their
website
and
we're
using
something
substantially
less
now,
I'm
also
looking
at
their
concessions.
This
is
their
concession.
Concessions
are
pretty
high
and
that's
because
they
did
what
they
were
able
to
achieve
and
that
is
to
reduce
their
vacancy,
so
they're
lowering
their
vacancy,
and
these
concessions
are
like.
C
C
When
you
compare
them
to
the
2021,
what
I
did
is
I
looked
at
what
would
the
average
was
from
2019
to
2021
and
that's
what
I
I
came
up
for
the
expenses
and
we
made
a
minor
correction
on
the
cap
rate
so
and
when
you
look
at
the
final
value
of
a
130
million,
that
is
substantially
less
substantially
less
than
what
was
last
year's
assessment,
which
was
139
million.
So
we
actually
reduced
it
overall
by
eight
percent
and
I'm
open
for
any
questions.
Thanks.
D
Yeah
real
real,
quick
one,
the
the
appellant
has
5.294
as
a
cap
rate.
You
have
5.293
as
a
cap
rate,
and
you
know
actually
that
that
kind
of
makes
a
little
bit
of
a
difference
which,
what
should
it
be
Lori.
C
It's
5.293
in
my
write-up
on
page
three
I
break
out
the
cap
rate,
so
the
Metro
cap
rate
for
an
effect
with
an
effective
age
of
2002,
it's
5.25
percent
and
then
the
national
Landing
bid
rate
is
.043.
D
E
Thank
you
for
the
appellant
I
think
I
missed
something
they
were
from.
The
very
last
thing
you
said,
or
the
second
to
last
thing
was
the
value
of
something
that's
looking
for,
for
this
year
is
higher
than
in
2021
and
I,
see,
of
course,
you're
asking
for
14
million
dollar
or
so
reduction
from
2021.
So
what
did
I
miss.
B
Oh
yes,
sir,
what
I
did
with
that
statement
was
the.
The
argument
is
that
lease
is
in
place
support
a
lower
total
potential
rental
income.
So
if
we
take
the
leases
in
place
and
total
what's
in
place
and
for
the
year,
it's
nine
million
one
hundred
seventy
four
thousand
dollars.
So
if
we
adjust
the
County's
test
column
by
putting
in
the
actual
leases
in
place,
we
get
to
an
noi
of
six
million.
Seven
hundred
three
thousand
dollars
on
the
County's
test
column
that
value
and
I
should
have
done.
B
B
B
Now,
when
we
look
at
the
2021
noi
and
if
we
use
the
same
cap
rate
as
the
county
5.293,
that
gets
us
a
final
value
of
125
million
271
thousand
seven
hundred
dollars.
So
that's
where
the
1.4
million
dollar
differences,
even
even
if
we
adjust
the
test
column
only
for
rents
in
place.
As
of
the
data
value,
it
still
results
in
a
final
value.
That's
greater
than
what
the
2021
actuals
were
at
the
property.
C
Thank
you
so
once
again,
when
we're
reviewing
these
is
the
assessments
we're
projecting
for
the
the
income,
two
percent,
which
is
very
modest
okay,
especially
as
compared
to
what
they're
showing
at
their
website
and
when
you
look
at
the
noi
historically
take
a
look
at
our
noi
for
column.
F.
It
is
much
lower
than
what
prior
years
for
on
2021
is
an
unusual
year.
Okay,
their
concessions
are
only
going
to
last
a
very
short
time,
so
it's
gonna
it's
going
to
us.
C
It
appears
it
is
getting
back
to
a
normal
State
and
our
eight
percent
vacancy
that's
stabilized
and
once
again
is
for
our
expenses.
We
were
pretty
generous
with
that
and
it
was
a
which
led
to
a
substantial
drop
of
eight
percent
from
last
year
and
which
is
even
more
than
what
the
value
was
the
prior
year.
That's
pretty
much
it.
B
Thank
you.
So
first
off
concessions
are
not
very
high.
They
were
three
percent
over
the
course
of
2021.
that
is
very
low
compared
to
similar
properties
that
we've
seen
and
that
we'll
see
today,
three
percent
concessions.
Currently
the
the
county
mentioned.
They
looked
at
the
website.
Currently
it's
offering
one
month
free
grant,
which
equates
8.3
percent
concessions,
so
concessions
have
gone
up,
co-star
rents,
those
are
simply
asking
rents.
B
The
county
mentioned
studio
apartments
at
two
thousand
fifty
dollars
per
unit,
asking
what
we
have
the
the
better
data
that
we
have
from
the
property
itself.
The
January
1
rinson
place
for
studio
apartments,
average
1689
dollars,
that's
a
far
cry
from
the
co-star
asking
rents,
and
if
we
look
at
the
potential
rental
income
at
this
property,
it
went
down
by
four
percent
from
2019
to
2020..
It
went
down
another
2.7
from
2020
to
2021..
It's
projected
to
go
down
again
in
2022.,
no
reason
to
increase
potential
rent.
Thank
you.
D
Yeah
I'll
go
ahead
and
see
if
anyone
agrees
with
my
thinking,
you
know
I
look
at
this
over
over
in
every
which
way
and
I
mean
it
is
a
very
modest
increase.
You
look
at
the
the
apartment
rent,
just
purely
that
and
you're
going
up
something
like
50
bucks
a
unit
a
month.
D
You
go
down
to
the
bottom
line
and
you're
only
going
up
like
like
less
than
twenty
dollars
a
unit
a
month
and
then,
when
you
look
at
the
appellants
pro
forma,
they
have
a
9.45
vacancy
and
if
that
gets
reduced,
they're
actually
equal
to
the
county
number.
So
in
in
my
thinking,
unless
someone
points
out
something
I'm
not
seeing
I
think
the
county
is
okay,
where
it
is.
E
First
clearly,
the
Appellate
did
the
right
thing
by
appealing
and
getting
the
department
more
modern
numbers
and
which,
yes
to
an
extent,
then
filled
the
the
appellant's
contention
that
there's
been
a
trend
downward,
but
this
helped
that
Trend,
you
know
from
what
originally
was
deduced
by
the
department
to
to
continue
that
Trend
within
a
tolerable
level,
I
mean
it's
not
absolute
dollar
per
dollar,
but
the
trend
is
they're.
Giving
the
2020
is
really
a
screwy
year,
I
think
and
brought
the
trend
down
more
than
it
would
have
had.
E
We
had
a
normal
life.
I
agree.
The
the
expenses
are
a
little
generous
I
am
a
little
the
asking
rents
versus
the
in
place.
Rents
that
gives
me
pause,
I
I
agree.
It
would
have
rent
rolls
from
a
lot
of
get
the
GPI
based
on
that
as
of
one
one
at
the
beginning
of
the
year,
but
I
think
we
can't
go
through
all
of
that.
Now.
It's
too
it's
too
close
to
call
so
I
got
to
support
the
revised
value.
E
Okay,
one
one
last
thing:
excuse
me,
an
8.1
decrease
from
last
year,
as
proposed
by
the
department
this
year,
is
about
as
high
as
we've
seen
in
apartments.
This
is
a
pretty
new
place
and
it's
not
far
from
Metro
and
it's
obviously
not
far
from
from
other
modes
of
transportation.
That
seems
to
be
a
reasonable
reduction
based
on
everything
we've
seen.
Thank
you.
F
Well,
I
did
go
through
the
numbers
10
based
on
the
rental.
F
And
I
mean
I
did
redo
some
rates
closer
to
what
the
average
rents
that
they're
getting
on
efficiencies,
one
bedroom
development
it
does
reduce,
but
the
only
thing
that
it's
really
making
me
a
little
and
easy
to
really
make
a
further
reduction
is
the
noi.
The
noi
is
really
low
yeah.
A
A
A
B
Yes,
thank
you
750
North,
Glebe
Road.
This
is
the
waycroft
apartments
in
Ballston.
This
property
was
built
in
2020
and
consists
of
491
multi-family
units
and
60
000
square
feet
of
retail
space.
This
building
is
technically
in
Boston,
but
it
is
at
the
Western
end
of
the
sub-market.
It's
at
the
intersection
of
Wilson
Boulevard
and
Glebe
Road
on
The
Pedestrian
strained
site
west
side
of
Glebe.
B
The
owner
operates
the
property
as
one
economic
unit
as
such,
the
incoming
expenses
of
both
the
multi-family
and
Retail
component
are
reported
together.
The
Drea
summary
is
on
page
four
of
the
appeal.
The
issue
on
appeal
is
that
the
county
overstates
potential
income
to
start
I'd
like
to
direct
your
attention
to
the
comment
at
the
bottom
of
the
summary
page.
B
This
comment
states
that
the
property
was
97
occupied.
As
of
the
data
value,
now,
I'd
like
to
direct
your
attention
to
page
seven
of
the
appeal
where
the
rent
role
that's
referenced
in
this
comment
is
reproduced.
This
red
role
here
again
tells
us
more
than
just
what
the
occupancy
was
at
one
point
in
time.
This
rent
rule
also
gives
us
the
total
potential
rental
income
based
on
actual
leases
in
place.
B
This
is
important.
This
represents
the
actual
rinse
in
place.
As
of
the
data
value,
if
we
look
to
the
Drea
summary
on
page
four
of
the
appeal,
we
see
the
total
potential
rental
income,
the
assessment
has
imputed
for
the
multi-family
portion
is
listed
between
columns,
H1
and
H2
at
15
million
three
hundred
thirty
one
thousand
five
hundred
twenty
four
dollars.
B
This
is
the
total
assessed
rental
income
for
the
market
units
and
the
affordable
units
combined.
This
value
is
one
hundred
forty
six
thousand
dollars
higher
than
what
the
actual
leases
in
place
support.
There
is
no
rationale
to
increase
the
rents
from
what
is
in
place.
As
of
the
data
value,
it's
important
to
note
that
the
actual
leases
in
place
are
the
rates
before
concessions
are
considered.
B
Concessions
at
this
property
were
twelve
and
a
half
percent.
As
of
the
data
value,
you
can
see
this
with
the
advertisement
included
in
the
appeal
on
page
32..
If
we
remove
12
and
a
half
percent
concessions
from
the
rinse
in
place,
we're
left
with
a
rental
income
of
only
13
million
eight
hundred
ninety
five
thousand
dollars.
B
The
property
was
over
was
ninety
seven
percent
occupied
as
the
as
of
the
data
value
and
over
91
percent
occupied
throughout
2021.
There
is
no
support
for
a
23
percent
increase
in
parking
and
other
income.
The
actual
2021
parking
and
other
income
should
be
used
by
failing
to
consider
the
actual
operating
history
at
the
property.
The
assessment
overstates
potential
income
resulting
in
a
final
value
considerably
higher
than
fair
market
value.
B
The
actual
multi-family
leases
in
place
as
of
the
data
value,
show
a
total
potential
rental
income
again
of
only
15
million
one
hundred.
Eighty
five
thousand
eight
hundred
two
dollars
correcting
the
assessment
to
use
the
actual
rents
in
place
in
the
2021
parking
and
other
income
results
in
a
gross
potential
income
of
19
million.
Four
hundred.
Ninety
nine
thousand.
Ninety
four
dollars,
which
is
a
final
value
of
242
million
936
thousand
six
hundred
dollars.
If
we
use
the
County's
vacancy
and
collection
rate
of
8.5
percent,
the
County's
operating
expenses
and
the
County's
cap
rate.
B
G
Just
that
the
the
assessment
so
Jordan
is
working
been
working
off
of
the
revised
the
test
column
and
the
2021
assessment
was
just
over
200
million
dollars,
so
even
at
the
revised
amount,
this
represents
approximately
a
20
increase
and
so
I
think
that
that's
just
important
the
actual
income
at
the
property
supports
a
value
very
close
to
the
iapsul
2021,
in
terms,
of
course,
the
value
very
close
to
the
20
21
assessment.
So
thank
you.
A
G
H
Yes,
ma'am
good
morning
board
members
good
morning,
Jordan
good
morning,
Eileen,
we
are
speaking
about
the
way
Croft
fairly
well
summarized
by
the
appellants.
We
didn't
really
touch
on
the
retail
aspect.
We
think
it's
a
obviously
a
large
important
component.
H
This
is
going
to
be
anchored
by
Target
and
importantly,
that
they're
there
for
the
next
15
years,
their
second
largest
tenant,
is
there
for
a
next
four
years.
H
Basically
everyone's
in
place
for
four
years
or
more
most
are
in
there
for
10
years.
We're
getting
15.
in
regards
to
what's
going
on
with
the
residential
component.
I
would
note
that,
unlike
last
case
and
in
fact,
unlike
what
we've
done
all
year,
consistently
is
as
Ms
Raskin
point
out,
the
modest
increases
that
we've
noted
throughout
the
years.
H
These
rents
that
are
projected
are
actually
pulled
straight
from
the
Red
Bull,
so
there
is
no
projection
made
by
the
county,
and
we
do
that
kind
of
to
point
out
that
it's
a
little
bit
unlikely
that
a
building
that's
in
its
essentially
third
year,
that's
now
at
97,
fully
occupied
stabilized
occupancy
would
not
increase
its
rents.
We
did
note
that
the
opponents
noted
that
in
January
and
February
they
are
offering
rent
specials
and
concessions
I'd
note
that
they're
not
doing
it
now.
H
We
also
talked
a
little
bit
about
what
co-star
is
doing
in
regards
to
you
know
what
is
being
offered
by
the
property
itself
and
listed
on
co-star,
and
while
again,
we
do
focus
on
the
idea
that
we're
using
the
rent
rolls
in
place.
We
would
point
out
that,
even
if
they're
just
asking
what's,
these
are
asking
rents
that
are
approximately
efficiencies
31
higher
than
what
we're
using
one
bedrooms
27
higher
than
what
we're
using.
H
H
We
talked
a
little
bit
about
parking
revenue
and
revenue
from
parking
increased
by
755
percent.
Last
year,
other
income
increased
by
57
last
year,
utility
reimbursements
increased
by
189
percent
last
year.
These
numbers
are
large
and
that's
because
it's
in
its
ascendancy
it's
in
its
Lisa,
you
know
it
did
what
it
strived
to
do.
It
achieved
the
stabilization
within
essentially
a
year
and
a
half
net
operating
income
I'd
point
that
out
net
operating
income
increased
by
649
percent,
that's
large.
H
So
when
we're
looking
at
our
projections
made
again,
that's
very
easy
to
say
that
these
are
essentially
modest
projections,
increase
of
apartment,
Revenue
by
3.7
percent,
an
increase
of
a
parking
Revenue
by
five
percent,
but
work
with
the
logic
involved
in
the
sense
that
these
numbers
should
grow.
If
the
occupancy
increased,
if
they
were
able
to
achieve
the
numbers
that
they
did
in
2021,
when
there
was
still
some
92
percent
occupied,
would
they
not
increase
their
revenues
by
increasing
their
occupancy
by
over
five
percent?
H
We
believe
they
would
please
note,
too,
that
we
also
adjusted
the
operating
expenses
up
to
account
for
that
increased
occupancy,
increased
operating
expense
of
over
three
percent
well
over
140
000
than
what
was
achieved
last
year
and
again
after
a
year
of
a
649
percent
increase
at
noi.
Ours
is
a
fairly
modest
24
increase.
H
This
did
call
for
revision
down
from
last
or
excuse
me,
our
January
1st
projection,
that's
a
gift,
of
course,
without
the
aid
of
the
2021
INE,
seeing
what
we
saw
in
the
performance
at
the
property,
noting
that
we
did
with
the
occupancy.
Now
it's
stabilized
97
percent.
We
do
believe
that
the
projections
made
in
the
revision
are
modest
and
we
do
call
for
a
confirmation
of
250
million
749
500..
Thank
you.
A
Okay,
thank
you.
Mr
chicas
questions
from
board
members.
D
Yeah
one
for
the
applicant
one
for
the
county
Jordan
on
on
the
target
lease
does
that
have
any
kind
of
owner's
rent
based
on
gross
sales
or
anything
like
that.
B
He
he
you
know,
Mr
Barnes
I
am
not
Mr.
Lawson
I
am
not
certain
on
that
that
lease
began
in
January
20.
I'm,
not
sure.
If
there's
a
percent
rent
included
with
that
Eileen.
Are
you
able
to
comment
with.
D
Okay
for
the
county
Chris,
you
got
a
five
5.9
cap
for
the
affordable
units.
Where
did
you
get
that
from.
H
That's
correct
yeah,
so
for
5.9
would
be
for
those
properties
built
2010
anywhere.
Okay,.
I
H
No
so
yes,
I
know
I
would
say
is
that
the
eye
knees
do
have
a
unit
Matrix
at
the
end
in
which
they
ask
to
break
down
the
units
and
there's
a
special
part.
That's
for
subsidized
units.
So
that's
what
we
consider
are
committed
affordables
and
it's
really
more
for
our
purpose
of
the
descriptional
information.
So
we
can
identify
those
units
because,
as
you
noted,
we
do
take
the
time
to
isolate
them
and
value
them
separately
and
then
as
a
whole.
H
H
G
I
H
Have
other
owners
that'll
fill
out
a
General
commercial
ime
and
submit
both,
in
other
words,
they'll
detail
to
us
that
this
is
for
the
apartment
component?
This
is
for
the
ingredients.
Yeah.
E
E
H
There's
there's
multiple
tenants:
they
we
list
right
now
there
are
six
Target
being
the
anchor
yeah.
H
Yes,
sir,
the
rep
roles
on
page
40
of
41
of
82.
H
Yes
Man
so
again
just
to
kind
of
harp
on
this
matson's
point.
This
is
a
well
amenitized.
Well,
tenant
at
building
anchor
is
in
place
for
another
15
years
14
years.
H
In
regards
to
the
partly
components
we
do
believe
it's
essentially
stabilized
itself
within
a
year
and
a
half
or
so
97
occupancy.
As
we
pointed
out,
the
rents
that
we've
used
are
have
not
been
projected
up,
even
modestly,
one
two
percent.
We
do
believe
based
on
the
rents
that
are
being
asked
for
the
from
the
property
owner.
Considering
that
there's
no
concessions
being
currently
listed
that
those
rents
will
go
up
again.
We
believe
that
our
projections
have
been
done.
H
B
Thank
you,
I'd
like
to
start
by
commenting
on
the
current
concessions
being
offered.
If
you
go
to
this
property's
website
today,
they
are
currently
offering
two
thousand
dollars
per
unit
in
concessions
along
with
six
months
of
free
parking.
This
comes
out
to
just
under
1.3
million
dollars
in
concessions
being
offered
today.
That's
seven
percent
of
2021
gross
potential
income.
This
is
down
from
the
12
and
a
half
percent
that
was
being
offered
at
the
first
of
the
year,
but
it's
it's
still.
Seven
percent.
B
This
property
average
91
occupancy
last
year
were
unlikely
to
see
the
large
increases
in
income
that
the
county
has
has
cited
that
were
achieved
when
this
property
was
leasing
up.
If,
if
the
rental
increases
are
achieved
at
this
point,
they're
speculative
and
they'll
be
assessed
on
the
next
year's
assessment.
If
they
are
achieved
now
for
the
retail
income,
this
is
assessed
in
line
with
what
the
leases
support.
This
is
not
as
big
of
a
difference,
which
is
why
we
didn't
contest
it.
B
D
Sorry,
you
know
the
first
thing
following
us
called
Ken's
question:
it
was
kind
of
hard
for
me
to
try
to
compare
because
we
got
three
broken
down
and
then
we
got
the
one
summary
and
it
was
just
kind
of
hard
for
me
to
track
at.
Maybe
that's
personal
to
me
on
the
retail.
D
You
know
the
west
side
of
Glebe
Road
is
where
retailers
went
to
commit
bankruptcy,
but
we
now
have
enough
development
on
that
side
of
the
road
that
it
seems
to
be
more
healthy
and
the
target
I
go
there
all
the
time
that
place
is
really
busy.
That's
why
I
asked
about
percent
rent
I'm,
okay
on
the
on
the
market
rate
of
units.
D
My
my
issue
with
what
Chris
has
done
is
is
on
the
affordable
units
and
what
I
I've
talked
to
a
couple
of
developers
yesterday
that
don't
have
appeals
in
so
there's
no
conflict
and
I
I
asked
them
what
they
thought.
A
cap
rate
should
be,
and
you
know
we're
we're,
comparing
a
private
developer
who's
in
it
for
profit
versus.
D
You
know
what
a
committed,
affordable
herbal
project
would
be,
and
you
know
with
a
committed
project.
You
often
have
tax
benefits,
you
have
County
subsidies
and
I
know.
You
know
this
developer
got
some
bonus
units,
but
once
that's
once
that's
done
it's
kind
of
a
done
deal.
So
the
only
thing
the
only
adjustment
I
personally
would
like
to
see
is
to
reduce
the
the
affordable
units
and
and
after
talking
to
a
couple
people
I
thought.
Maybe
a
cap
rate
of
seven
percent
would
be
appropriate
and
that
would
lower
the
assessment
by
500
000..
A
E
Yeah
I
was
going
to
say.
Presumably
this
cap
rate
is
derived
from
a
goodly
amount
of
committed,
affordable
units
that
we
have
in
the
county
and
David
news,
this
rate
from
sales-
and
you
know
these
garden
apartment
complexes-
to
sell
how?
How
are
you
connect
the
nice
high-rise
right
by
Metro
to
something?
That's.
You
know,
60
years
old,
on
Columbia
Pike,
you
come
out
with
the
exact
same
cap
rate.
E
I,
don't
know
it
seems
like
it's
kind
of
Orange
Is,
some
tangerines,
but
I'm
I'm
comfortable
enough
with
it,
of
course,
there's
a
built-in
menu.
E
These
are
just
just
terrific
deals,
so
if
there
is
any
offset
it's
it's
made
up
for
by
the
automatic
vacancy
I,
you
know
originally
I
just
said
my
God
I'm
going
to
go
up
24,
that's
an
outrange!
There's
something
clearly
wrong
here
and
of
course,
I
hear
that
no
well
I
know
because
I
live
in
the
neighborhood,
that
this
is
a
new
building
and
it
ramped
up
and
and
now
it's
fully
stabilized
and
that's
where
it's
going
to
be
for
the
next
four
years.
E
Of
course,
nobody
knows,
but
I
nonetheless
was
looking
for
some
way
to
reduce
this
a
bit
a
little
bit
only
because
it
just
seems
so
high
in
a
covered
here
and
I
wasn't
coming
up
with
anything,
exciting
and
and
I'll
and
where,
where
Barn
started,
I
couldn't
track
back
and
forth
the
lump
sum
of
everything
and
changes
of
guidelines
between
CAF
and
Retail
and
all
this
kind
of
stuff,
to
really
make
a
good
comparison
on
the
experience
of
of
2021
by
this,
this
property
versus
what
it
might
be
in
2022.
So.
E
A
No,
as
I'm
saying,
I
understand
what
you
and
Mr
Lawson
are
saying:
I
mean
because
it
is
difficult
when
you've
got
the
operating
year
reported
and
then
also
the
appellants
performa
is
not
spread
out.
You
know
to
look
at
it,
but
if
you
just
do
quick
math,
those
three
columns
are
13
million
and
change.
E
I
mean,
but
it's
one
vacancy
and
concessions
for
all
three
kinds
of
users
and
two
of
them
didn't
have
any
vacancies
or
concessions
well.
Well,
actually,
again
that
not
true,
there
is
a
retail
space
around
the
back
off
of
Wilson
Boulevard
that
absolutely
some
retail
we're
going
to
go
bankrupt,
so
we're.
F
I'm,
okay
with
the
reviser
says,
I
think
you
know
I
try
to
also
look
at
the
rates
and
like
in
the
previous
case,
but
I
think
the
rates
that
are
being
used
now
are
okay
and
I.
Looked
at
the
some
of
the
conversations
that
the
apparent
you
know
said
that
they're
offering,
but
it
seems
like
those
conversations,
are
on
specific
units
that
necessarily
the
whole
thing
so
I'm,
okay,
with
the
revised
system.
K
C
D
C
L
Yeah
I
was
just
gonna,
say
it's
a
really
nice
project
and
at
least
up
really
quickly,
so
that
kind
of
shows
that
there's
demand
for
this
this
product
and
if
anything,
I
think
the
retail
is
under
assessed.
L
You
know
look
around
at
Target
cap
rates.
That's
40,
000
of
the
sixty
thousand
square
feet.
That
number
probably
starts
at
a
five
on
a
national
average
and
they're
getting
a
7.15
cap
on
that
income.
So
I
think
I
was
okay
with
the
original
assessment,
but
you
know
I
I'd
go
along
with
the
revised.
L
Should
go
up
it's
stabilized
now,
yeah,
yeah
and
and
just
one
other
thing
I
meant
to
mention
is-
is
for
Equalization
purposes.
The
assessment
on
the
property
next
door,
which
is
similar
class
of
Apartments,
is
right
about
even
on
a
per
unit
basis
for
the
market
rate
units.
A
A
A
B
Yes,
thank
you.
So
this
is
the
gables
point:
14
apartment
building.
This
is
located
at
1351
North,
Rolf
Street.
This
is
adjacent
to
Highway.
50
was
built
in
2019
and
has
370
units.
It's
important
to
understand
why
this
property
has
struggled
to
achieve
stabilized
occupancy,
based
on
where
this
property
is
located.
One
side
of
the
building
is
across
the
service
road
from
Highway
50.
B
to
get
to
the
Metro
or
any
of
the
restaurants
and
shops
and
Courthouse.
You
have
to
walk
uphill
about
a
half
a
mile.
The
physical
location
of
this
building
makes
it
less
desirable
than
competing
properties
and
helps
account
for
the
higher
vacancy
and
concessions
required
to
achieve
the
occupancy
it
does
have.
B
The
January
1,
rent
roll
included
in
the
appeal
on
page
48
shows
us
that
the
actual
rents
in
place
at
the
property
were
only
9
million
563
582
dollars.
This
is
again
when
we
impute
the
vacant
units,
at
the
average
In-Place
rental
rate,
for
that
unit
type.
The
county
has
imputed
potential
rental
income
at
nine
million.
Nine
hundred
and
twenty
two
thousand
seven
hundred
sixty
four
dollars
on
the
test
column
now,
just
as
a
brief
aside
that
the
county
has,
on
their
summary
page
again,
broken
it
up
between
Market
apartments
and
committed
affordable.
B
B
B
B
This
rate
is
consistent
with
the
property
we
just
discussed
where
vacancy
collection
and
concessions
were
over
16
percent
of
gross
potential
income,
the
weighted
average
vacancy
collection
and
concessions
imputed
by
the
assessment
is
less
than
half
of
the
actual.
Only
7.7
percent
of
growth
potential
income,
the
7.7
percent-
doesn't
even
cover
the
income
loss
attributable
to
vacancies
only
which
was
9.5
percent
of
GPI
in
2021.
B
concessions
were
an
additional
seven
percent
in
2021.
at
the
bottom
of
the
summary
page,
you
can
see
a
comment
by
the
county
that
states
the
property
was
98
occupied.
As
of
the
data
value,
this
is
incorrect.
The
2021
INE
survey
form
states
that
vacancy
was
actually
8.1
percent.
As
of
the
data
value,
average
vacancy
over
2021
was
9.6
percent.
B
Had
we
had
the
opportunity
for
a
department
curing,
we
could
have
explained
this
to
the
county.
This
discrepancy
helps
explain
why
the
assessment
noi
is
nearly
six
hundred
thousand
dollars
higher
than
the
2021
at
noi.
The
county
believes
the
property
was
only
two
percent
vacant.
As
of
the
data
value,
when
in
reality
it
was
over
eight
percent
vacant
keep
in
mind
that
this
is
physical
vacancy
only
and
per
the
Arlington
County
guidelines.
The
vacancy
rate
imputed
on
assessments
also
includes
collection,
loss
and
concessions.
B
B
H
Yes
ma'am,
so
we
don't
want
to
get
into
being
misunderstood,
so
we'll
make
sure
that
we
point
out
the
rent
roll
analysis,
as
provided
by
the
owner,
indicated
that
there
were
only
three
units
that
were
unrented
at
the
end
of
the
year.
So
that's
98,
that's
how
we
get
that
number.
That's
true
vacancy
we're,
not
confusing
vacancy
concessions.
That's
why
the
they're
broken
out
separately,
there's
vacancy
there's,
rent
loss
and
then
there's
concessions.
H
So
let's
be
sure
that
we're
on
the
same
page,
this
property,
just
like
the
last
one,
is
well
stabilized.
It
did
so
in
at
approximately
a
year
and
a
half
much
like
the
last
property.
It
saw
explosive
growth
in
2021,
64
increase
of
apartment,
Revenue
parking,
Revenue
up,
50
percent
utility
reimbursements
up
61
percent
net
operating
income
was
up
62
percent.
H
So
again
we're
looking
at
a
property.
That's
done
very
well!
It's
stabilized
itself
fairly
short
time.
It's
well
located.
It's
adjacent
to
Route
50,
so
getting
into
DC
takes
minutes.
It's
a
half
mile
from
the
Metro.
So
again
as
far
as
walkability
its
index
is
high.
It's
well
amenitized
when
we're
looking
at
this
rent
roll.
This
one
is
a
little
bit
different
in
that
much
like
the
rest
of
the
year.
We
actually
did
use
modest
projections.
These
are
very
moderate
adjustments.
H
That's
been
based
on
what
they've
achieved
when
we
look
at
the
apartment,
rents,
that's
been
projected
and
I'll
point
out
too.
You
don't
need
to
do
any
adjustments
as
far
as
looking
at
revised
mixed
use,
worksheet,
where
you're
welcome
to
do
that.
But
I
take
a
lot
of
time
to
put
these
summer
sheets
together
and
you'll,
see
in
column
o
in
between
lines,
12
19.
H
Essentially,
the
revenue
is
shown
as
a
combination
between
an
apartment,
Market,
rents
and
committed
affordable.
The
gross
potential
is
shown
as
the
combination
between
market
and
affordable,
effective
gross
issue
as
the
combination
of
the
market
affordable
on
down
the
line.
So
you
can
see
that
in
the
summary
sheet
and
compare
that
with
the
appellance
numbers
as
well
as
the
operating
gear,
the
appellance
numbers
essentially
mirror
the
operating
here,
so
it
makes
it
even
easier,
just
capitalizing
what
they
achieved
in
2021.
H
We
differ
there
in
that
we're
looking
at
again
trying
to
stabilize
this
property,
which
they
did
for
us
in
the
sense
that
they
achieved
stabilization
of
one
year's
time.
A.
D
H
And
a
half
when
we
look
at
that
projection
made
for
apartment
Revenue,
please
note
that
it's
approximately
4
4.2
percent
lower
than
what
was
achieved
last
year.
Please
note
that
the
gross
potential
income
projection
is
about
3.4
percent
lower
than
what
was
achieved
last
year.
We
do
this,
of
course,
because
we're
looking
at
a
stabilized,
effective
growths
because
the
building
is
98
occupied.
H
We
know
that
this
eight
percent
vacancy
occupy
and
Concession
projection
made
by
the
county
could
be
deemed
generous
if
we
do
extrapolation
and
we
see
that
vacancy
is
down
approximately
seven
percent.
Even
if
concessions
were
to
stay
at
six
point,
eight
five
percent,
which
is
a
big
if
that
would
be
approximately
eight
percent,
which
is
where
we
are.
Therefore,
you
can
conclude
that
our
projection
is
actually
astute.
H
If
anything
and
modest
again
at
seven
percent
growth,
total
operating
expenditures,
we
actually
projected
Higher
by
almost
the
two
and
a
half
percent
and
what
was
achieved
at
the
property
again,
noting
that,
while
the
property
will
continually
suck,
there
may
be
some
adjustments
to
that
operating
expense.
We
did
an
increase
of
net
operating
income
of
nine
percent,
again
very
modest
after
a
year
of
60
growth
of
62
percent,
in
that
operating
income
and
I.
Think,
most
importantly,
I
would
note.
H
Last
year's
assessment
at
131
million
72
000
were
actually
at
a
very
modest
0.74
percent
increase
over
last
year,
so
less
than
one
percent
indicated
increase
over
last
year
after
growth
of
62
percent
of
net
operating
income
and
I
point
that
out
not
only
to
suggest
that
ours
is
very
moderate
but
that
the
appendants
actually
are
asking
for
an
8.2
percent
decrease.
So
they
believe
that
the
year
after
it's
increased
its
net
operating
income
by
over
60
61
percent
that
it's
actually
gone
down
in
value,
we
believe
the
opposite.
H
We
Believe
again,
this
property
has
shown
itself
to
be
stabilized
in
its
nature.
According
to
the
rent
role
again
with
looking
at
projections
made
by
the
county,
even
with
modest
two
or
three
percent
increases
to
what
was
projected
excuse
me,
projections
based
off
what
was
achieved
in
last
year.
It
still
indicates
a
negative
four
percent
projected
apartment
revenue
from
what
was
achieved
last
year.
H
Given
our
modest
projections
on
the
income
side,
given
our
increase
of
objections
on
the
operating
expense
side
and
given
again
a
very
modest
increased
projected
overall
property
value
less
than
one
percent,
we
do
believe
that
the
revision
columns
should
be
confirmed
at
132
million
44
600..
Thank
you.
A
Okay,
thank
you.
Questions
from
board
members.
A
B
I
do
thank
you
so
first
off
on
the
vacancy
issue.
Page
41
is
the
2021
INE.
The
county
asks
what
is
January
1
vacancy
at
this
property,
the
property
reports
eight
percent.
This
is
supported
by
what
CoStar
has
shown.
This
property
has
never
been
below
eight
percent
vacancy,
so
I
think
what
the
issue
is
with
the
rent
roll
is.
B
If
you
look
at
the
rent
roll
on
page
48,
it
only
lists
units
as
vacant
if
every
unit
in
that
type
of
unit
is
actually
vacant,
so
all
the
vacant
units
or
units
that
only
have
one
or
two
of
that
type
of
unit
the
unit
type
that
has
25
units
is
listed
as
being
occupied.
That
unit
type
May
well
have
some
vacancy
in
there,
but
it's
not
showing
because
every
unit's
not
reported
have
we
had
an
opportunity
for
a
department
hearing.
We
could
have
explained
this.
Our
claimed
value
mirrors
the
reported
2021
noi.
B
J
I
I
find
the
vacancy
issue
compelling,
but
we
don't
have
the
answers
that
I
I
still
I
have
to
go
with
the
revision.
I
everything
else
comes
out
concessions
again,
like
every
other
case,.
D
Yeah
I
think
it's
just
too
much
of
a
jump.
I
mean
you're
you're,
you're,
basically
saying
that
the
rent
must
increase
per
unit
per
month
by
about
a
140
140
dollars,
and
when
you
look
at
this
particular
project
compared
to
the
last
one,
the
last
one
had
had
22,
affordable
use
and
469
Market.
D
L
I
was
just
going
to
say:
we
don't
have
a
lot
of
trend
to
go
on
here,
because
it's
just
kind
of
recently
stabilized.
L
But
if
you
look
at
2021
the
noi
the
county
is
using
and
the
test
is
nine
percent
higher
than
2021
noi,
so
I
kind
of
feel
like.
If
that's
the
only
data
point
we
had
to
go
on,
we
should
just
be
looking
at
their
actuals.
A
Yeah
no
I
I
agree
with
both
of
you.
I
mean
what
I
did
is
I,
took
the
actual
numbers
and
then
backed
out
the
committed
affordable,
which
reduces
the
market
to
104
114
million
and
added
the
committed
affordables
back
in
and
end
up
at
120
9
24
10.
A
You
know
because
I
you
know
I
certainly
think
it's
it's
done
well,
but
I
mean
it's
just
recently.
Stabilized
and
I
mean
the
argument
to
say
is:
oh,
it
went
up
62,
so
you
know
it's
got
to
keep
going.
It
can't
go
up.
Another
62
percent
I
mean
it's
stabilizing
itself.
You
know
and
I
think
because
we
do
assess
every
year.
L
L
Just
capped
the
I
kept
the
2021
actuals
and
just
put
the
5.15
cap
rate
on
it,
and
I
came
out
to
about
122
million
but
I
I,
I'm
I'm.
Okay,
with
your
logic
to.
L
I
mean
the
way
I
see,
it
is
I'm,
not
really
sure
what
am
I
those
are
at.
They
have
income
associated
with
it.
There's
net
income,
so
it
kind
of
It
kind
of
all
gets
thrown
into
the.
A
L
The
overall
building
noi
they're
not
looking
at
it
like
it,
would
be
a
separate
sale
of
30
39
units
or
something
like
that.
So.
E
Revision
reflector
reflects
a
higher
income
than
what
was
achieved
in
2021,
and
you
guys
just
said
it
and
Mary.
You
just
said
the
income,
it's
all
about
the
income
and
I
look
at
looking
at
F1
and
f,
plus
F2
versus
column
A.
What
was
the
cheap
as
a
total,
lower
number
for
apartment
income
for
GPI
and
for
egis?
What
am
I
missing?
Where's
the
income
going
up
according
to
the
county,
I'm
missing,
something
obviously.
A
E
A
A
F
The
expenses,
in
my
opinion,
are
okay
2.9,
but
you
know
the
vacancy
is
really
what's
making
the
difference.
Now,
it's
really
the
two
percent
of
the
eight
percent.
You.
A
Right
they
I
mean
I,
look
at
this
and
think
they
paid
a
lot
in
concession,
gave
up
a
lot
in
concessions
to
get
that
rent.
You
know
and
I
know
we've
had
that
argument
before,
but
this
isn't
stabilized
to
say:
okay,
we'll
just
slap
an
eight
percent
vacancy
on
it,
I
mean
this
is
trying
to
get
up
on
its
feet,
and
you
know
they
did
a
great
job.
J
I
L
Right
then,
I'll
I'll
move
that
we
reduce
to
121
million
894
900,
based
on
the
2021
actual
nli.
A
I'm
sorry
I
was
trying
to
write
that
down
a
motion
in
a
second
by
Mr
Lawson,
all
in
favor
I
opposed
okay.
So
it's
four
to
two
and
that's
without
Mr
panoronda
and
Mr
matskin,
okay,
so
the
assessment
is
reduced
to
121
million
eight.
Ninety
four
nine
hundred.
G
A
J
A
And
I
believe
I
saw
Mr,
Peralta,
Mr
Peralta
and
then
do
we
have
Mr
steinhauser.
Oh
there
he
is
okay,
all
right,
going
back
to
the
case
from
October
6th
rpc-3402002
at
2511,
Richmond,
Highway,
I,
guess
Mr
steinhauser!
If
you
want
to
talk
to
us
about
the
square
footage.
I
Yes,
thank
you.
So
we
were
able
to
get
out
to
the
property
on
Friday
and
view
the
space
I
think
we
were
able
to
come
to
an
understanding.
I
see
Rob
submitted
a
revised
value
to
the
board
for
this
hearing
of
109
million
759
700
and
that
is
acceptable
to
the
owner.
So
we're
willing
to
finalize
it
at
that
number.
A
K
So
this
value
was
generated
using
the
assumptions
of
the
square
foot.
K
For
the
majority
of
the
first
floor,
the
the
square
footages
weren't,
provided
on
site
as
asked
and
I,
followed
up
on
Monday
and
I.
Believe
Grant
said
that
the
project
manager
was
not
available,
so
I
pulled
plans
to
suggest
what
the
management
space
would
be
and
I
included
that
in
the
in
the
packet,
and
that
shows
you
just
the
the
permit
for
the
the
management
space.
K
So
I
was
able
to
kind
of
estimate,
I
guess
what
the
square
footage
for
the
storage
was,
what
the
square
footage
for
the
conference
center
is,
and
it
was
all
from
what
originally
was
the
Covenant
that
was
signed
last
year
as
far
as
the
square
footage
for
the
conference
center,
the
management
space.
So
I
just
like
to
add
that
that
you
know
it
was
based
on
the
assumptions
made
based
on
the
plans.
A
Right
from
the
standpoint
of
the
the
board,
any
questions
on
that
or
are
we
in
agreement
to
accept
Mr,
matskin.
E
Again,
we
saw
a
picture
last
week
of
this
big
open
area,
a
bunch
of
cement
and
off
to
the
right.
According
to
the
picture,
were
a
couple
of
wired
cages
and
I
never
got
to
understanding.
Is
the
storage
only
the
square
position?
Those
cages
there
was
a
little
big
room
assumption.
Is
that
some
well
somebody
will
use
the
balance
of
the
room
as
an
office
or
or
something.
How
did
that
end?.
I
Up
on
on
January
1,
there
was
an
additional
entire
other
area
that
was
also
storage.
They
got
permits
in
May
of
this
year
to
convert
that
into
additional
tenant
amenity
space,
so
like
conference
rooms
and
they
put
their
management
office
all
the
way
back
there
in
the
back
corner
as
well.
So.
K
That's
I
would
I
would
like
to
say
that
the
permit
was
submitted,
12
30
21.
when
I
went
after
my
cases.
Yesterday
I
went
to
the
permit's
office
because
the
information
wasn't
provided
so
I
asked
the
permit's
office
to
give
me
information
to
suggest
what
I
proposed
here
in
the
in
the
case
today.
K
A
All
right
well,
then,
in
piggybacking
on
Mr
Lawson's
comment,
thanks
to
both
of
you
for
working
this
out
and
I
will
move
to
accept
the
County's
new
revised
number
of
109
759-700.
A
A
All
right
that
concludes
the
agenda.
Does
anybody
have
any
other
business
for
this
okay,
then
we
will
stand
adjourned
at
1007
and
re-adjourn
next
Tuesday
the
18th,
and
it
is
100
virtual
at
9am,
like
everybody's
show
of
hands
that
we
understand
that
it
is
virtual
and
no
one's
going
to
show
up.
Do
we
have
you
on
record
here,
because
it's
still
being
recorded,
no
one
will
show
up
to
the
hearing
on
Tuesday.
Thank
you.