Minnesota High Court Upholds $9.3 Million Medical Building Value

A 106,000 square foot suburban Minneapolis property that includes a medical building is worth $9.3 million for tax purposes, the Minnesota Supreme Court held.

The state tax court correctly based Burnsville Medical Building LLC’s property valuation on market rent rate because the property’s tenant improvement allowances or recent concessions, including free rent, were atypical for the market, Justice Theodora Karin Gaïtas said.

• “In other words, market rent already accounts for non-excessive, typical tenant improvement allowances,” the Wednesday opinion said.
• Burnsville’s appraiser came to her valuation by comparing the building to similar properties while adjusting the comparables’ valuations based on their ...