Concerns Over Commercial Property Revaluation

Hundreds of commercial property owners in Newark's Ironbound participated in community meetings to express their concern over the results of the recent property revaluation in the City, and to share information regarding the appeals process which has been extending by several weeks, with the help of local elected officials, including East Ward Councilman Augusto Amador.

Reports of commercial property values increasing by 100 percent and more have prompted many owners to question the methodology used by Appraisal Systems, Inc. to produce wholesale property value increases that appear implausible during a recession when compared against market conditions.

"As representatives of the local business community, we want to make sure that everyone has the information they need to participate in a second interview with Appraisal Systems, Inc. representatives so they can avail themselves of the extended appeals process," said Steven T. Yglesias, President of the Ironbound Business Improvement District (IBID) and a local business and commercial property owner. "We are working together in the Ironbound to make sure that this property revaluation is done properly and fairly and that everyone has the information they need to file their appeals."

Luis Nogueira of Exit Lucky Realty Assoc., an Ironbound-based firm with extensive experience in the City's commercial real estate market, is also a Newark property owner, and believes the appraisal company used financial figures to establish property values that do not reflect true market conditions.

He also stated that commercial property owners who question their new property valuations must schedule a second interview with Appraisal Systems, Inc. by calling 201-493-8530 as soon as possible, and no later than April 15th, based upon information provided by the company.

"After scheduling an interview, property owners must work with their accountants or real estate professionals to prepare their case by gathering information that includes details on their income/expenses/taxes and/or information on comparable property values based on the sale/rental of similar properties," Nogueira stated. "By applying the formula used by Appraisal Systems, Inc., using a multiplier of .0825% on net operating income, property owners can determine what their valuation is based on."

"The results of the recent property revaluation reveal that there's cause for concern, particularly on the commercial side. While the residential property values decreased by approximately 30 to 35 per cent, the commercial properties have increased, in some cases over 100 per cent," noted Councilman Augusto Amador.

"Thus, on Thursday, March 14, Councilman Ramos, Councilman Gonzalez and I met with representatives from Appraisal Systems and members of the Administration and several commitments were made by the firm. Specifically, their representatives will be available for additional weeks to review any inquiries property owners may have. Our office will also be available to serve as support to anyone who has a concern and needs help," he concluded.

Newark property owners who schedule a second interview with Appraisal Systems, Inc. and remain dissatisfied with the new property valuation provided, will still have the opportunity to bring their appeal to the Essex County Tax Board by calling 973-395-8525. However, they must file their appeal with the county no later than May 1, 2013.