Minnesota Tax Court Lowers Minneapolis Office Property Value

The Minnesota Tax Court lowered the estimated market value of an office property in Minneapolis. The subject property is a Class A office building with 871,232 square feet of net rentable area, constructed in 2001, with portions of the building having undergone renovations. After considering competing appraisals, with the taxpayer’s expert valuing the property at $72,000,000 and the county’s expert at $117,000,000, the court gave greater weight (80 percent) to the county’s appraisal, which correctly classified the property as Class A and used a discounted cash flow analysis to account for the unstable office market conditions. [RiverSource Life Ins. Co. ...