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| Vicki Rollins |
Los Angeles, CA, Nov 15, 2023 - A Los Angeles County hospital, committed to serving the city's homeless and disadvantaged communities, has emerged victorious in a significant multi-million dollar tax dispute with the LA County Assessor's office.
In 2019, LA Downtown Medical Center acquired the property at 1711 W. Temple Street in a court ordered bankruptcy sale for $36 million.
However, the hospital's
vision to expand its vital services for underserved communities faced a
considerable setback when the Assessor's office appraised the property at an
astonishing $114 million, potentially subjecting them to an annual tax increase
of nearly $850,000.
Wes Nichols, the Founder & CEO of Paramount Property Tax Appeal, who represented the hospital in its appeal against the assessment, expressed the significance of this victory.
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| Wes Nichols |
"LA Downtown Medical Center plays a crucial role in providing healthcare solutions to the city's underserved, including mental health patients and the homeless population in downtown Los Angeles," says Nichols. "An adverse judgment, imposing hundreds of thousands in added annual capital expenditures, affects their capacity to deliver essential services."
Vicki Rollins, President of The LA Downtown Medical Center, is grateful for this significant tax savings victory. Rollins said, “This outcome will allow us to allocate more resources where they are needed most, directly benefiting our patients and the city we serve."
The
sale of the property was conducted on the open market as part of bankruptcy proceedings
against its previous owner.
Bankruptcy sales often result in
discounted sale prices as the trustee’s primary aim is to recover money for debtors
through an auction of property.
In this case, the property was marketed to the healthcare industry
and generated several offers among which LA Downtown Medical Center was the
winning bid.
According
to Nichols, the property tax assessment should have reflected the purchase
price paid on the open market. However, the Assessor valued the property
under foreclosure guidelines, where the trustee is selling to regain the debt
owned on the property to the bank.
“By enrolling the property under foreclosure
guidelines at more than three times what was paid for it, the Assessor made the
investment unfeasible,” said Nichols.
"We were able to show that the open market transaction and a verified depreciation of the property reflected the true value.
"Our approach to property tax valuation and preparation for the tax appeal hearing using reliable data, expert witnesses and comparable property sales allowed us to maximize the tax reduction for our client.”
The outcome was highly favorable for LA Downtown Medical Center, as their property received a new assessment value of $44.5 million, marking a significant reduction of $70 million.
This achievement promises substantial tax savings,
providing the hospital with valuable financial relief for as long as they own
the property.
Contact:
David Ebeling
Ebeling Communications
949.861.8351
949.278.7851 (Cell)
Member of the National Association of Real
Estate Editors (NAREE)
“PR Strategist for the Commercial Real
Estate Industry: I do what I love and love what I do.”
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