I’m looking at a multi family construction deal in Jersey City where the sponsor is underwriting stabilized property taxes at 10% of EGR. In NYC we typically see at least 20%.
Can someone please let me know what the rule of thumb is for UW property taxes in NJ for residential? Thanks
thisguy22, shame nobody has responded. Maybe one of these topics will help:
If those topics were completely useless, don't blame me, blame my programmers...
sorry, but i'm struggling to understand the logic of your RET assumption, being that it's a % of EGR? I mean theoretically I understand it, being that revenue drives value so the higher the revenue the higher the value thus the higher taxes...but it's a bit unusual from my experience.
Whenever working on a potential development/acq in a new market, I spend a good bit of time on the county website...obviously to pull the millage rates, but more importantly how often do they assess / are there any oddities like franchise excise taxes / whats their stance on a material change of the building that would trigger a reassessment?
With all this info, you should be able to get a decent underwriting for your proforma model. Not sure the size of your shop of the pursuit dollars available to you...but there's always the option of outsourcing and paying for a tax opinion (Ryan, etc.)
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