we have a fairly robust property tax

appeal department and and the the

the space of doing property tax appeal

work

is a pretty granular

niche that if you don’t do it because of

the fact that there are extremely

critical dates and timelines in

the assessing bodies don’t send out

notices of the proposed assessed values

all at one time and you never know when

they’re coming so you really have to be

on the lookout for this stuff

the experience in my office doing

property tax appeal work is well over 30

years

and we’ve represented all types of

real estate owners investors buyers when

clients of ours are purchasing

or looking to develop

new properties in cook county in the

chicago market

we will do evaluation

and tell them what we think the property

tax burden is likely to be on a given

asset

so i looked at a few deals even within

the last three weeks where i had a

client that sent me a pro forma of a 25

unit

proposed condominium building on the

near north side of chicago

and they had penciled in 160 thousand

dollars in annual property tax

burden

once the building was stabilized well

once we did an analysis of it

we came to the conclusion that the

client was about two hundred thousand

dollars light

and that the burden would actually be

around three hundred and sixty thousand

dollars well

if you take 200 000

of cash flow

away from a 25 unit

apartment building

and you cap that

at

a six cap or a five cap you’re talking

somewhere between

a million seven fifty and two million

dollars of value

just sucked out of the deal

because someone might not have properly

forecast what the property tax burden

would be would be in that particular

case the client decided to scrap the

deal

because there wasn’t enough profit in

the deal

and

you know that that’s happening a lot

right now

in cook county because it’s very

difficult to forecast

what that property tax burden is going

to be on a given investment