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RETAIL

    Total Assessed Value Reductions: $ 750,000,000

    Total Tax Savings: 7.5+ Million Dollars

    Protax LLC has represented nearly every type of retail property imaginable, from the smallest retail property such as a local shopping center owned by an individual investor up to the largest Regional Shopping Mall owned by coroporate conglomerates.

     

     

     

    Case Study #1: Foreign investor sinks over $30 million in poorly planned retail shopping center!

    Case Study #2: Large community shopping center receives a facelift!

    Case Study #3: Three high end retail stores take a dip on the “strip” in Palm Springs!

    Case Study #4: Auto dealers save a bundle in property taxes!

    Case Study #5: Functional Obsolescence threatens Regional Shopping Mall!

     

    Case Study #1: Foreign investor sinks over $30 million in poorly planned retail shopping center!

    Total Tax Savings: $255,000

    An investment group from the Netherlands constructed a 150,000 square foot retail center in an urban location in Southern California. The area profile consisted of residents with above average income, however the demographics of the area demonstrated a lack of population to support a center of this type and size. The cost of the center eventually exceeded $36,000,000 and the developer was forced into bankruptcy. When the receiver contacted Protax LLC, the center was performing quite poorly with little chance of recovery with an assessed value of $22,668,721.

    After completing an extensive study of the property, Protax LLC approached the Assessor’s Office with a dramatic request to reduce the assessment by over 75% based on a complex analysis including a strongly formulated argument that the actual highest and best use for the property was something other than a retail center. The assessment was initially reduced $5,445,000 producing a one year tax savings of $238,546.  The following tax year the property recognized an additional reduction lowering the value to $ 4,350,000. In conclusion, Protax LLC reduced the original assessment by over 80% producing a total tax savings of $255,000.

     

    Case Study #2: Large community shopping center receives a facelift!

    Total Tax Savings: $200,000

    A 500,000 square foot community shopping center originally built in the early 1970’s underwent a major renovation. Many new buildings were added while several old ones including an outdated cinema were torn down. In addition, the entire mall received a face lift as the old facades were replaced. Protax LLC was hired to review all the supplemental invoices issued by the county and to assist the owner in determining how the assessments for each parcel applied to the tenants based on the county records and a review of the existing leases. After many hours of detailed work, the property recognized a total tax savings of approximately $200,000 which was distributed evenly and appropriately between the tenants and the owner.

     

    Case Study #3: Three high end retail stores take a dip on the “strip” in Palm Springs!

    Total Tax Savings: $167,000

    El Paseo Drive is the place to be in Palm Springs with wide streets and great shopping and variety stores; in fact the locals affectionately compare it to “Rodeo Drive” in Beverly Hills. However, no area is immune to the drastic affects of an economic slowdown and these three high end retail stores were no exception when the recession of the early 1990’s tightened its grip. Rents fell dramatically as sales and prices plummeted. Many properties went into foreclosure and on many days the “strip” resembled a scene from a Hollywood movie about ghost towns. For over ten years, our client has recognized a 25% reduction in his overall property tax expenses saving $167,000

     

    Case Study #4: Auto dealers save a bundle in property taxes!

    Total Tax Savings: $750,000

    Protax LLC has represented many high profile auto dealers throughout the State saving the industry hundreds of thousands of dollars over the past ten years. This is a highly competitive business that tends to monitor their expenses very closely. Even though the industry is highly dependant on the overall economy the values of their real estate are less volatile than one would suspect. Nevertheless, the industry experienced a rather dramatic downturn in the early 1990’s with the Gulf War as car sales took a dip. Protax LLC negotiated a series of reductions during this timeframe which helped many of these dealers survive this difficult period. Recent trends are beginning to show signs that may lead to some dramatic tax savings for auto dealers.

     

    Case Study #5: Functional Obsolescence threatens Regional Shopping Mall!

    Total Tax Savings: $140,000

    A 670,000 square foot regional shopping mall was deteriorating fast. The neighborhood profile was changing rapidly and many of the stores could not adapt to the changing needs of the new residents. The mall was experiencing functional obsolescence as its outdated construction created some significant delivery and operational problems for the tenants. Many of the anchor tenants (Sears, Mervyns, Longs, Miller’s Outpost & Mann’s Theatres) were seriously concerned about the long-term viability of the mall as the traffic, which had been falling for years, nearly disappeared.

    The owner turned to a local re-development agency requesting a large cash infusion in order to re-furbish the mall. The renovations eventually brought the center back to life just as the economy began to rebound.  At the same time the owner hired Protax LLC to secure whatever property tax relief might be available due to the problems facing the mall and to ensure that the money being allocated for the renovations was assessed appropriately.  Protax LLC successfully argued that the functional and economic obsolescence within this mall justified a significant reduction of the assessed value.