Minnesota Tax Court Values Medical Building at $9 Million

A property including a medical office building was assessed $9.3 million by the Minnesota Tax Court, accepting most of an appraiser’s analysis but rejecting reductions for occupancy rate and future tenant improvements.

Burnsville Medical Building LLC’s appraiser, Kelsey Hornig, used both the sales comparison and income approach to arrive at a valuation of $7.1 million, the opinion said.

Dakota County didn’t provide affirmative evidence to contest most of Hornig’s analysis of other similar properties’ sales, so it stood unchallenged, the court said.

However, the county legitimately contested Hornig’s adjustment downward for four comparable properties due to occupancy rate, regardless of ...