Property Tax Underwriting and Due Diligence

Skoloff & Wolfe, P.C.’s property tax due diligence team works closely with our clients so that they can make informed investment and underwriting decisions. Rather than relying on market assumptions and generalities, Skoloff & Wolfe, P.C. provides data-based analysis and recommendations. Skoloff & Wolfe, P.C. assists clients on projecting and understanding taxes from acquisition through stabilization and disposition.

With a focus on the capital markets, Skoloff & Wolfe, P.C. has completed property tax due diligence and underwriting for institutional investors and developers on billions of dollars of transactions in recent years.

 The following are examples of matters on which Skoloff & Wolfe, P.C. has counseled clients:

• Hotel Portfolio: counseled client on property tax risk and opportunities related to acquisition of national hotel portfolio. 
• Value Add Multifamily: counseled client on $85M acquisition of asset assessed for $45M. Client executed investment thesis and exited without receiving a material reassessment. 
• Provided property tax due diligence on $1B+ multifamily portfolio.
• Corporate Headquarters: counseled client on potential property tax reduction associated with acquisition of $1.1 billion square-foot corporate headquarters.
• Super Regional Mall: counseled client on potential property tax reduction associated with acquisition of super regional mall.

* All assessments rounded to nearest million. Results may vary depending on your particular facts and legal circumstances.

Property taxes can be the largest unknown variable for a developer or a real estate investor — and the largest expense. 

Whether you’re a developer acquiring a single property, a financial institution underwriting commercial real estate deals, or an investment committee evaluating a portfolio of properties, a wrong call on property taxes will frequently be fatal to executing an investment thesis. 

Skoloff & Wolfe, P.C. provides our clients with in-depth analysis and formal or informal data-driven opinion letters so clients and investment committees can fully understand the impact that future property taxes will have on the value of their investment. 

Property tax due diligence: don’t risk your investment based on generalities.

It is common for others to base their opinions on broad generalities and rules of thumb. These generalities can expose investors and developers to significant risk. Property taxes are the single line item that can throw an investment thesis into turmoil, which is why special attention must be paid to their impact on your organization’s property acquisitions going forward. 

Call Skoloff & Wolfe, P.C. to learn more about our due diligence services.

We provide opinion letters to some of the largest financial institutions in the world for property acquisitions from coast to coast. Count on Skoloff & Wolfe, P.C. to do the due diligence you require to reduce property tax risks and set your investment on the right path. Call 973.992.0900 to learn more.