Corporate headquarters facilities often suffer from several forms of functional and external obsolescence. If an assessor doesn’t realize this, the property can be overtaxed, which is what happened with the corporate headquarters of this Fortune 500 medical technology company in Fridley, Minn.
Using comparable sales and comparable assessment data, Robert Hill Law, in conjunction with a Twin Cities real estate firm, proved that a potential buyer would not pay the assessed value on this property because the property was specifically tailored for the medical tech company. This resulted in the city assessor and the county reducing the assessed value of the property over time on a step-down basis.
Today, this company’s corporate headquarters is valued at $35 million, down from $43 million in 2008.
- Assessed value: $43 million
- Negotiated value: $35 million
- Amount saved on property taxes: $1.32 million