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OFFICE

    Total Assessed Value Reductions: $ 1,200,000,000

    Total Tax Savings: 12+ Million Dollars

    Each year Protax LLC represents nearly 3 million square feet of office space. The typical office building that we represent receives a reduction of approximately 20% saving on average $10,000/year.

     

     

     

    Case Study #1: Hurricane Floyd threatens potential property tax refund!

    Case Study #2: Major Defense contractor saves over 1 million dollars on its corporate facilities!

    Case Study #3: Downtown high-rise saves 53% while its building remains fully occupied!

    Case Study #4: A large insurance carrier faces massive losses on its REO portfolio!

     

    Case Study #1: Hurricane Floyd threatens potential property tax refund!

    Total Tax Savings: $150,000

    The owner of 560,000 square foot multi-building office complex hired Protax LLC to file a formal assessment appeal.  Protax LLC prepared an appeal application to challenge the assessed value and forwarded them to the owner in South Carolina for signature. On September 14, 1999, two million people fled the eastern coast as hurricane Floyd devastated the shoreline. The Governor of South Carolina declared a state of emergency ordering a mandatory evacuation of the area. As a result, the appeal application was received by the County Clerk’s office after the September 15 deadline. The clerk denied the application citing Section 1603 of the Revenue and Taxation Code with the following explanation:

    “The California Property Tax Law Guide has no provision for filing outside this window period and the Clerk has no authority to make any exceptions.”

    Protax LLC petitioned the Assessment Appeals Board for a jurisdictional hearing in order to determine if a valuation hearing would indeed take place. Protax LLC cited several sections of the code that gave the Assessment Appeals Board the explicit right to schedule a valuation hearing independent of an application being filed by the applicant. In addition, Protax LLC also provided significant documentation to the Appeals Board demonstrating the “good faith” intent of the applicant to file the appeal accompanied by several newspapers articles of the devastation that prevented the applicant from filing. The Assessment Appeals Board agreed to schedule a valuation hearing despite the repeated protests and challenges of the Assessment Appeals clerk and the county counsel. The Assessment Appeals Board voted 2-1 in favor of a valuation hearing. Protax LLC then negotiated a significant reduction in the assessed value with the Assessor that eventually produced a refund in the amount of $75,426.08.

     

    Case Study #2: Major Defense contractor saves over 1 million dollars on its corporate facilities!

    Total Tax Savings $ 1,380,000

    For over 5 years Protax LLC served as the property tax agent for a large San Diego defense contractor. This client owns a prime corporate center comprised of multiple office, industrial and R&D buildings totaling approximately 650,000 square feet. During this time period, San Diego County experienced a rash of high vacancies and falling rental rates very similar to the current exodus by the “dot coms” in Silicon Valley today. In both instances, there was a lack of immediate sales data clearly demonstrating the dramatic decline in real estate values.

    Despite this lack of comparable sales data, Protax LLC was able to utilize its knowledge of the Revenue and Taxation Code in order to obtain some substantial property tax relief. By employing the “income approach to value”, our firm demonstrated that even fully occupied buildings had experienced a loss in “fair market value” based upon falling market rental rates and increasing market vacancies. Even though these buildings were 100% occupied by the owner, the “fair market value” was negatively impacted by these market forces. In the end, the client realized a dramatic property tax savings of $1,380,000.

     

    Case Study #3: Downtown high-rise saves 53% while its building remains fully occupied!

    Total Tax Savings: $ 423,000

    A publically traded company housed its corporate headquarters in a class “A” office building located in a major downtown city. The building was fully occupied with a number of long term leases that were negotiated at the peak of the last California real estate boom.  Several years later the asking market rental rates had fallen by nearly 50%. Although the property was almost fully occupied and enjoyed a tremendous cash flow from the prior above market leases, Protax LLC was able to secure a substantial 53% tax reduction based on actual “market rental rates” which MUST be used when assessing real estate for property tax purposes. Overall, the client saved nearly a half million dollars.

     

    Case Study #4: A large insurance carrier faces massive losses on its REO portfolio!

    Total Tax Savings: $ 725,000

    A major Life Insurance company hired Protax LLC to manage its property taxes for their entire real estate portfolio, which included a significant number of REO properties. As a recession took hold, the number of properties facing foreclosure and/or financial difficulty increased exponentially. The real estate department was increasingly understaffed while its responsibilities grew exponentially.

    Protax LLC provided a full service solution to their increasing property tax requirements which allowed the limited personnel in the real estate department the time to focus on the monumental task of negotiating loan work outs. By researching all of the various tax payments and appeal deadlines many penalties and delinquency fees were avoided completely. Their corporate location consisted of a Class A three building office complex with approximately 270,000 square feet. The assessed value was reduced from $40,000,000 to $19,000,000 for an annual tax savings exceeding $200,000.