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
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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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