Condominium Building (Kane County)

Suburban Condominium Building
Over $180,000 in tax savings

Condominium Building (Kane County)

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Condominium Building (Kane County)

Highlights

Property Type: Suburban condominium building

Savings: Over $180,000 in tax savings

Location:  Kane County, Illinois

Description:  58-unit condominium development

Key Results:

  • Values reduced after prior attorneys were unable to obtain relief
  • Values reduced below recent sales prices, but consistent with income approach and appraisal
  • Obtained over $180,000 in tax savings

The Challenge

Elliott & Associates was engaged by a bank to contest assessments of bank-owned units in a newly constructed condominium building in Kane County, Illinois.  The bank had previously engaged a Chicago-based law firm with a national tax appeal practice; however, this firm failed to obtain any assessment relief.  Elliott was asked to help.

The developer sold a number of units in the building at relatively high prices; however, after the economic downturn, he was unable to sell the remaining units in the building.  The bank foreclosed, took back the units and leased them out.   The Assessor valued the bank-owned units based on the high sales prices realized by the developer (pre-downturn) that were no longer obtainable.   The income valuation approach supported a lower valuation; however, both the Assessor and the County were unwilling to reduce assessments based on this argument because recent sales in the building supported the Assessor’s valuations.

Our Approach

Elliott believed the sales prices realized by the developer, although somewhat recent, were not indicative of current market value because the market declined significantly after those sales occurred.  While the income approach supported a lower valuation, our firm recognized that the Assessor and County would be unwilling to approve assessment reductions based on the income approach.  In this situation, we recommended appealing to the Property Tax Appeal Board (PTAB) and we were also prepared to try the case.  We also knew that we needed a solid appraisal valuing each unit in the current (deteriorated) market.

The appraisal also valued the units 30% below the Assessor’s valuation, consistent with the income approach, thus solidifying our decision to appeal to the PTAB.  The Assessor, County and a local school district vigorously contested our appeal.

Results

While prepared to try the case, our firm eventually convinced the Assessor, County and Intervenor to settle for a value nearly equal the appraised value.  Elliott then filed appeals for the following two tax years and settled those cases as well.  Total refunds were in excess of $180,000.

The bank recently sold the units in a bulk sale for a value consistent with the appraisal we obtained.