When Target Corporation needed to review the reasonableness of the property tax bill for one of its large-scale distribution centers, it turned to American Appraisal . . . and received a $1 million tax refund.
Concerned about the reasonableness of the property tax bill for its Oconomowoc, Wisconsin, distribution center, Target Corporation engaged American Appraisal to provide an independent, objective opinion of the facility’s market value.
The distribution center, consisting of 1.5 million square feet on approximately 100 acres of land, was originally built in 1994, with a major addition in 2001. While the building was in overall good condition, its market value was affected by several internal and external factors . . . factors that American Appraisal has particular expertise in identifying and quantifying.
American Appraisal’s consultants conducted extensive research and utilized proprietary databases to develop an independent, objective opinion of value . . . just as American Appraisal has done for 115 years. The value conclusion was derived through the application and correlation of appropriate sales comparison, income capitalization, and cost approach techniques, taking into account that the market and buyer pool for a large scale distribution center are typically regional or national in nature.
The assessed value of the property was ultimately reduced from about $80 million to about $45 million, resulting in the sizable refund and reduction in the property's assessed value.
According to the city’s Finance Director, in a June 8, 2011, Journal Sentinel article, “These very large buildings are difficult to value. . . . Target retained very sophisticated appraisers. . . .”
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