August 17, 2026 Hearings - Aug 17, 2026

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Loudoun County Board Committees and Advisory Boards 39 min 8 agenda items transcribed 2 days ago official recording ↗

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Why did the Board start the meeting with a recording error notice?

Chrissy Goodrum 0:02

We are gonna record. So welcome back to um our appeals. Today is August seventeenth, twenty twenty six. I'm the chair today for the Board of Equalization, Chrissy Goodrum. Um wanna let everybody know, unfortunately for that last case, we forgot to press the record button. So um sorry for that technical difficulty, but we did take notes. And uh anyway, um W we now are supposed to be listening to appeal six nine nine five for address seven one A East Main Street, Percivalville, Virginia. Um the appellant is uh Sean Radden with Cavalier Cavalry Real Estate Advisors. Is Sean in the building in the room? No Okay. Um we could listen to this case or what would the uh board like to do? Would you like to review the case or do you want to go ahead and

Chrissy Goodrum 1:07

Votes Uh

Unknown 1:10

we'll have some questions.

Chrissy Goodrum 1:11

Yes.

Unknown 1:11

So it seems like the whole sole discrepancy are these two one time payments that they receive. Right, they're saying that the termination fee and the uh the other one. Total there's basically saying those should not be included. in a properties value. Not quite. So the Walgreen building is owned by the Walgreen. So the the ground lease amount that they pay every month is included in the income stream. But not the building. So what we do, same with the termination fee, we add it below the line, otherwise it would escape taxation. The second item that they um have uh uh that they contested was the um termination fee for the BB and T bank that left. They had a they had a remaining ten year lease on the building.

Unknown 2:08

So this is this is building if you If I can share my are we Go

Chrissy Goodrum 2:16

ahead.

Unknown 2:26

So it's it's um on page three, two and three, two shows you the buildings. Um the um the BB and T is building One twenty North Maple. It's one On the western part. Of the parcel, everything within the The Turquise border is part of the shopping center. So the B B and T left, they had a ten year lease left, and so they had a predetermined amount three million three point nine million um because they had ten years left, and that was the termination fee. They moved out in twenty twenty two and the termination fee was paid in twenty twenty four. So it's a one time fee. that the owner received as an income. But it's not capitalized, it's not included in the income stream. It's added below the line. So if you go to my page

Unknown 3:32

Three. Is where I have laid out how the income approach was derived. Mm. And they provided the income to us with the termination fee included. So the lease base is sixty-four thousand seven hundred and eighty-four, and the PGI comes to one million one point nine eleven one twenty-eight. There's a vacancy four percent that gets us to the EGI. Then we're subtracting the expenses and we're getting to an NY of one two one million two fifty-one C. Six twenty seven. we're capitalizing that and we're getting to um An income value of fourteen million seven hundred and thirty two two one. Now we're adding the Wall Green Building, just the building. and the termination fee.

Dr. Salzman 4:24

I thought it was just the land.

Unknown 4:27

The land the Walgreen is on a ground lease, meaning they're only leasing the ground.

Dr. Salzman 4:31

Yeah, so the value why is the Walgreen building as opposed to the Walgreen land? Add it in.

How are termination fees for the BB&T lease treated in the property valuation?

Unknown 4:41

The Walgreen land is already captured in the lease.

Dr. Salzman 4:46

Okay.

Unknown 4:47

The building is not because the Walgreen owns their own building.

Dr. Salzman 4:51

So why is that capitalized for this solar? If Walgreens owns the building.

Unknown 4:58

The the building is not capitalized.

Dr. Salzman 5:01

Then what does the one point seven represent?

Unknown 5:04

The building.

Dr. Salzman 5:06

Building that's owned by Walgreens.

Unknown 5:08

Correct. Not by the shopping center owner.

Dr. Salzman 5:10

Right. It's owned by Walgreens.

Unknown 5:12

Correct.

Dr. Salzman 5:13

But this is the shopping centre owner's taxes we're looking.

Unknown 5:17

Be because there's no separate pin for the tenant. We are valuing the entire shopping center. All real estate related to the shopping centre. We're not valuing the tenants. individual easeholes. When the when the when the Walgreens leaves the the building reverts back to the tenant. To the owner, I'm sorry.

Dr. Salzman 5:42

Oh we'll So Walgreens owns the building but when they leave it goes to the tent. To the

Unknown 5:50

owner. To the shopping center owner, that's correct.