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A break in arena property taxes this year for the Maloofs

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If you think your property tax bill is high in Sacramento County, take a look at the amount paid out each year by Maloof Sports & Entertainment for Power Balance Pavillion (formerly Arco Arena). More than just the numbers, what do you make up such a steep decline in property taxes over the past year? How does that impact the City of Sacramento?

There are actually five separate parcels for the arena in Natomas, but the above graph only considers 1 Sports Pkwy since it is the largest and most heavily taxed parcel (it’s the parcel that includes the arena). The other four parcels really only added up to just over $430,000 in assessed value for 2010, which is about $6,500 in property taxes.

Breakdown of assessed value and property taxes for 1 Sports Parkway
2011 assessed value: $29,129,000 ($450,000 in property taxes – estimate)
2010 assessed value: $56,534,445 ($881,208 in property taxes)
2009 assessed value: $58,844,792 ($904,003 in property taxes)
2008 assessed value: $59,595,796 ($940,690.94 in property taxes)

It might seem surprising to see such a low assessed value for an entire arena, but keep in mind the original stadium was constructed for about $40 million in 1987 (Wikipedia states today’s costs would be $74.3 million).

What do you think of the numbers above? How much of a role does the arena play in the health of our local economy?

FYI: Property taxes for 2011 were posted yesterday by the Sacramento County Assessor. I strongly recommend all property owners to look over their assessed value closely (click this link) to make sure you are paying your fair share of taxes – and no more. If you have any questions about the tax appeal process or would like my tax appeal company to look up your property for free, please click here.

UPDATED POST: If you’re visiting from the Forbes article that mentioned this post, you can also see an updated version of this post here for 2012.

If you have any questions, or real estate appraisal or property tax appeal needs in the Greater Sacramento Region, contact Lundquist Appraisal by phone 916-595-3735, email, Facebook or subscribe to posts by email.

The L Street Lofts, Kevin Martin & Condo Sales

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It’s Day 3 of “Condo Week” on the Sacramento Appraisal Blog, so let’s take a look at all condominium sales in the City of Sacramento in Downtown and Midtown over the past three years. You can see all condo sales in a previous post if you wish to see the overall context of the condo market. What do you see in the graph below?

Most of the higher condominium sales over the past three years are from the L Street Lofts in Midtown Sacramento. These lofts have quite a selling range depending on floor location, view and size of course. Between the lofts not being listed on the market between June 2008 to the end of 2009, a challenging real estate market in general, and difficulties for buyers to obtain financing in this development, there have been few loft sales as shown above. Per conversation this week with Michael Onstead of Coldwell Banker, there were many buyers lined up to purchase lofts, but financing stood in the way. With that being said, imagine the graph above with more sales at higher levels. That could change the overall look of the trend line, couldn’t it?

Right now the lofts on L Street are typically listed between $300,000 to $600,000 for the most part (that doesn’t include penthouse lofts though). If you’re local, you’ve probably seen or read stories about the L Street Lofts having gone into foreclosure. Hopefully this unique project will be able to resume their sales program soon. 

As an FYI, former Sacramento Kings basketball player Kevin Martin is currently selling his penthouse loft on L Street. He paid $1,340,000 in September 2008 and it is currently listed as pending in MLS at $899,000. This is one beautiful property!!

What is your favorite condominium development in Sacramento? Why?

If you have any real estate appraisal, consulting, or property tax appeal needs in the Greater Sacramento Region, contact me at 916.595.3735, by email, on our appraiser website or via Facebook. 

Is there a connection between the Sacramento Kings and property value?

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The talk of the town has been whether the Sacramento Kings will stay in Sacramento or move to a different arena in Southern California (Anaheim). I won’t rehash all the details here, but I did want to compare the past thirteen years of the Kings’ NBA seasons with the market median price in Sacramento over that same time period. Is there a connection between NBA wins and property value? What do you see?  

Let me make it clear that I don’t really believe there is any connection whatsoever between property value and how well the Sacramento Kings have done. I just find it interesting to think about out of the ordinary faux-indicators for real estate. When we do analyze the graphs above though, there is a similar trend with property values beginning to decline in 2005 and the Kings slipping to either 4th or 5th place from 2005 onward. It seems as if both home prices in Sacramento and our NBA team reached their peak in 2005. Also, when the Kings began to play extremely well for four seasons beginning in 2001, the real estate market was booming in Sacramento. There is even evidence of a slight uptick in each graph above for the most recent years. Median price graph by Wright Real Estate. Coincidence or not, you be the judge.   🙂 

What sort of impact will it have on the Sacramento area if the Kings do leave?

If you have any real estate appraisal, consulting, or property tax appeal needs in the Greater Sacramento Region, contact me at 916.595.3735, by email, on our appraiser website or via Facebook.