A TrueDiligence evaluation and report provide measurable results for our valued clients during the sales and acquisition phase.

 

Aspen Resource Group has produced significant property tax savings for our clients. We proactively mitigate tax increases through proactive and highly effective assessor negotiations and intelligence reporting

 

Below are representative examples of how our TrueDiligence services have benefited property owners involved in the purchase and selling of commercial properties throughout the United States.

 

WASHINGTON DC | ASSESSOR RESOLUTION

 

Challenge:  An institutional investor acquired an office building and hotel on the same tax parcel in Washington, DC.  The seller had sub-divided the main parcel so that the office and hotel could be sold separately.

 

The Washington, DC Office of Tax and Revenue then reassessed all parcels and arrived at a total assessment that was greater than had existed prior to re-parceling.

 

Solution:  We met with the DC Office of Tax and Revenue and demonstrated to them that they had erroneously increased the assessment via the re-parceling project.  We provided detailed income and expense analyses for the office building and hotel which supported the pre-acquisition assessment. 

 

Result:  The assessment was reduced back to the pre-acquisition level at the assessor level appeal resulting in $120,000 in reduced real estate taxes.

 

WASHINGTON DC | BUYER AND SELLER ALLOCATION RESOLUTION

 

Challenge:  Our client purchased a limited-service hotel in Washington DC for $75,000,000.  The assessment at the time of purchase was $47,000,000.  Buyer and seller were unable to agree on an allocation of the transaction price and a real estate value of $73,000,000 was recorded for transfer tax and recordation purposes.  This transaction created a potential annual real estate tax increase exposure of $550,000.

 

Solution:  We completed a State and Local Tax Allocation, and provided a comparable assessment study and income and expense analysis to the assessor while he was working on the upcoming assessment roll.  

 

Result: After several rounds of negotiations with the assessor and his supervisor, we reached a settlement at a value of $47,400,000, effectively eliminating the possible $500,000+ tax increase.

 

MIDWEST | RETAIL RECOVER RESOLUTION

 

Challenge:  A client specializing in retail assets was looking at a Center in the Midwest that had some cost recovery challenges.  Specifically, one of the out parcels was significantly undervalued and the excess value was placed on the main parcel.

 

Solution:  We worked proactively with the local assessor to move value from the main parcel to the out parcel so that the out parcel assessment was in line with the fair market value and the main parcel had more manageable recovery.

 

Result:  Fair market value achieved and liability reduced.

 

CALIFORNIA | PROPOSITION 13 RESOLUTION

 

Challenge:  An institutional hotel investor paid $50,000,000 for a select-service hotel in Southern California that had an existing assessment of $25,000,000.  The Purchaser was looking for a way to keep the post-acquisition assessment under $40,000,000 in order for the deal to pass underwriting.

 

Solution:  We recommended an independent State and Local Tax Allocation that would provide guidance with respect to the recorded real estate transfer value.  Additionally, we performed a modified Rushmore Approach Income and Expense analysis that supported the purchase price allocation.  

 

Result:  All information was submitted in the PCOR and in direct negotiations with the assessor during the enrollment process, and the resulting assessment was issued at just over $35,000,000.

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