NJ Tax Court Judge Cites BBG Appraiser’s Credible Appraisal and Testimony as Factors in Decision to Reduce the Shopping Center’s Value
BBG litigation support services expert, Louis Izenberg, MAI, SRA, provided legal support, expert testimony and a comprehensive appraisal on behalf of West Orange Plaza Shopping Center. His diligence contributed to a Tax Court ruling that provided $2 million in tax refunds and savings for the owners of the West Orange Plaza Shopping Center.
The case hinged on a fundamental disagreement of property value based on a few key factors:
- The reduced value of the shopping center due to the departure of the 160,000-SF K-Mart.
- The unsupported feasibility and costs to repurpose the Kmart space as presented by the City was rejected.
- Rental rate assumptions for an unused, dated and unappealing basement area of the center.
- Assumptions of the various market rents and expenses for the remaining center.
During the trial, Mr. Izenberg brought in accurate comparable rental data to support his professional valuation. This information and his expert testimony convinced the judge to reduce the property value which resulted in the City having to refund the substantial over payment of taxes.
Mr. Izenberg commented on the court ruling: “This judgment recognized credible expertise and sound methodology. It’s rewarding to help a property owner negatively impacted by the retail challenges faced with a loss of a large anchor tenant.”
The BBG litigation team has more than 350 years of experience helping property owners and municipalities evaluate tax assessments of large commercial real estate. The comprehensive legal services include valuation, litigation strategy and expert witness testimony. Clients across the country benefit from BBG’s expertise in this area.