Redline Industrial Partners · CRE Asset Managers · Dallas, TX
Redline Industrial Partners recovered $310,000 in Texas property taxes in its first appeal cycle
A 25-property industrial REIT scored its 14 Texas assets against sales, income and peer assessments, protested the nine that were over-assessed, and cut $13.2 million of appraised value in one cycle. The five assets that scored at or below market were left alone.
- $310,000
- Annual property tax savings across the Texas portfolio in the first appeal cycle
- 9 of 14
- Texas properties protested after the audit; the other five scored at or below market
- $13.2M
- Appraised value removed from $142M of protested value
- 9.3%
- Average reduction on protested properties, at a blended 2.35% effective tax rate
The challenge
Redline owns distribution and light-manufacturing buildings under triple-net leases, and tenants reimburse the real estate tax. That makes assessments a leasing issue as much as an NOI issue: tenants audit the tax line in their reconciliations, and an over-assessed building is harder to renew at market rent. Before ATALI ELECTRIC, Redline's asset managers relied on outside consultants who each handled a county or two, reported on different schedules, and handed back results in formats no one could roll up into a portfolio view.
The Texas portfolio was the clearest example. Fourteen buildings sat in five appraisal districts, each with its own notice timing, informal hearing practice and ARB calendar. The VP of Asset Management had no single place to see which buildings had been protested, which had settled and which deadlines were still open, and no consistent test for whether a protest was worth the fee.
“We generated $310,000 in property tax savings across our Texas portfolio in our first appeal cycle.”
The approach
Redline loaded all 14 Texas notices into Assessment Audit in one batch and ranked the buildings by over-assessment score. Nine scored well above the benchmark: their appraised values exceeded the value indicated by verified industrial sales and by income capitalized at the submarket rate, and several sat above the median appraised value per square foot of comparable warehouses nearby. The other five already sat at or below indicated value and were not protested.
For the nine, Income Valuation applied market rents, stabilized vacancy and reserves to each rent roll, Sales Comps adjusted verified arms-length sales for size, clear height, age and market conditions, and Equity Uniformity built the matrix for the ARB. Petition Generator assembled the binders, and Deadline Tracker put every hearing on a shared calendar visible to the asset managers and the outside consultants. The nine protested buildings carried $142 million of appraised value. The protests removed $13.2 million of it, an average 9.3% reduction, which at a blended 2.35% effective rate is about $310,000 in annual tax savings. Because the leases are triple net, most of that saving flows to tenants first, and the leasing team now brings the result to renewal conversations.
Stop overpaying commercial property tax on a flawed mass appraisal.
Upload an assessment notice. ATALI ELECTRIC returns a valuation audit and comp analysis in about two minutes.