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Four Points by Sheraton 5064 23 Ave S <br />Parcel Number: 01-8428-00020-000 Owner: Fargo South Hospitality LLC <br />Information provided above is a summary of the analysis conducted.  Further analysis is provided from the City of Fargo Assessment Dept.  <br />Appeal of Assessment for Year: 2022 <br /> Name of Applicant: KAJ Hospitality Representative: Pivotal Tax Solutions <br />Assessed Value(s) 2022 $ 6,134,500  <br />Applicants Requested Value(s) 2022   $3,272,000   ‐47%  <br />General Property Information <br />Property Type Hotel  <br />Year Built 2013  <br />Last Sold (03/26/2019) $9,161,400  <br />Declared Constr Cost (Excluding Land) $5,817,915  <br />Current Land Value $1,198,000  <br />Summary The applicant is requesting a reduction in value of a 47%. The applicant utilized a heavily modified income approach to justify a reduction. The applicant utilized one year’s worth of income and expenses from the subject property. The applicant did not provide support for the capitalization rate used in their analysis. No comparable sales were provided by the applicant. We feel the support used to justify the reduction is not acceptable. <br />The land was purchased for $1,056,000 and the declared improvement costs were $5,817,915 for a total of $6,873,915 in 2011. We also feel the assessed value is supported by sales (including a recent sale of $9,161,400 for the subject itself), and is equalized appropriately. <br />Comparable Sales Summary <br />Property Name/Type Address Sales Date Adjusted Sale Price Total $/Unit Total $ / SF <br />Holiday Inn Express 1040 40 St S 03/01/2016 7,681,000 109,729 190.46 <br />Holiday Inn Express 4711 19 Ave S 06/08/2017 12,113,300 110,121 172.69 <br />Microtel 705 23 Ave E (W. Fargo) 06/01/2018 5,106,000 58,023 124.30 <br /> Subject 5064 23 Ave S 68,161 95.43 <br />Competing Properties (Assessed Values) Summary <br />To test for uniformity among assessments, we studied the <br />assessed valuations of similar properties. Our sample set consisted of 21 hotels and motels built after the year 2000. We <br />found these properties appropriately bracket the subject in both price per room and per square foot. We feel the subject is <br />appropriately valued higher than typical as it is an upscale property. <br />Value Per Room Value Per SF <br />Maximum 190,187 $324.73 <br /> 3rd Quartile 65,929 $ 93.17 <br />Median 53,350 $ 82.50 <br /> 1st Quartile 49,759 $ 77.35 <br />Minimum 25,058 $ 65.01 <br /> Subject $ 68,161 95.43 <br />Recommended Action: Retain the current value of $6,134,500 for the 2022 Assessment. <br />City of Fargo Info