2025 City of Madison Heights Henkel RE 44-25-02-176-016 Evidence.pdf

Henkel Corporation, Petitioner Vs. City Of Madison Heights, Respondent · 25-002424-TT

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Assessment Analysis

 Independent Member Crowe Global

 320 East Jefferson Boulevard

Post Office Box 7

South Bend, Indiana 46624-0007

Tel +1 346-308-8514

www.crowe.com 

Property Owner

HENKEL CORPORATION

Location

32100 Stephenson Highway

Account / Parcel

44-25-02-176-016, 44-25-02-176-010 & 44-25-02-176-014

City

Madison Heights

Site Code

N/A

County

Oakland

Tax Year

2025

State

MI

Price PSF

Net Rentable Area

224,138 Sq.Ft. Improvement

11,867,271

$ 

52.95

$ 

Land Size (AC)

13.65 Acres Land

3,177,220

$ 

5.34

$ 

Year Built

1963 Total Market

15,044,491

$ 

67.12

$ 

9,042,000

$ 

40.34

$ 

Indicated Value

$ /SF

7,188,685

$ 

32.07

$ 

10,275,658

$ 

45.85

$ 

9,661,844

$ 

43.11

$ 

Indicated Value

$ /SF

9,042,062

$ 

40.34

$ 

9,661,844

$ 

43.11

$ 

8,580,109

$ 

38.28

$ 

Allocation Amount

Allocation %

2,395,989

$ 

33.33%

3,425,904

$ 

33.34%

3,220,293

$ 

33.33%

9,042,186

$ 

100.0%

Property Notes:

► The subject property is over valued. 

► A cost approach based on the Marshall & Swift handbook supports a reduction in the subject's assessment. 

► Recent nearby sales of similar properties supports a reduction in  the subject's assessment.

► An Income Approach supports a reduction in  the subject's assessment.

► An equity comparison of nearby similar properties confirms the subject is over assessed. 

► The Opinion of Value based on allocation supports a reduction the subject's assessment. 

Cost Approach Allocation

Sales Approach Allocation

Income Approach Allocation

Valuation Method

Assessment

Value Comparisons

Valuation Method

Cost Approach Estimate

Sales Comparison Approach Estimate

Income Approach Estimate

All Approaches Mean (Average)

Property Description

Assessment Equity Comparison

All Approaches Median (Middle)

Comparison Method

Subject Property

Valuation Method Indicators

Value Correlation

Opinion of Market Value

Assessor Description & Assessment

Total Assessed Value

15,044,491

$ 

Total Indicated Value

9,042,000

$ 

Adjusted

15,044,491

$ 

Adjusted

9,042,000

$ 

Parcel Number

Assessed Value

% of Total

Parcel Number

Parcel Value

44-25-02-176-016

8,361,060

$ 

55.60%

44-25-02-176-016

5,027,352

$ 

44-25-02-176-010

3,658,620

$ 

24.30%

44-25-02-176-010

2,197,206

$ 

44-25-02-176-014

3,024,800

$ 

20.10%

44-25-02-176-014

1,817,442

$ 

Valuation Indications By Parcel

Property Owner

HENKEL CORPORATION

Account

44-25-02-176-016, 44-25-02-176-010 & 44-25-02-176-014

Site Code

N/A

Location

32100 Stephenson Highway

City

Madison Heights

County

Oakland

State

MI

Subject Images

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Rec Owner 

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Address 

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Rec Owner 

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Address 

Po Box 80615, Indianapolis, IN 46280 

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Bldg Area 

41,920 

SF 

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Land Area 

245 AC 

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Rec Owner 

HENKEL CORPORATION 

Address 

1 Henkel Way, Rocky Hill, CT 06067 

Parcel 

25-02-176-010 

Zoning 

M2HEA 

Bldg Area 

49,618 SF 

Land Area 

248 AC 

4Q pioduod

Subject

32100 Stephenson Highway

Type 

Address

32100 Stephenson Highway

Class

Account

44-25-02-176-016, 44-25-02-176-010 & 44-25-02-176-014

Type

Total Building Area

224,138 Sq.Ft.

Year Built

1959, 1969

Subject Actual Age

62 Actual

Year Constructed - 1963

Land Size

13.65 Acres

Subject Effective Age

52 Effective

Effective Year - 1973

Property Type by Dollar / Square Foot

68.76

$ 

Improvement Square Footage

224,138 Sq.Ft.

Composite Cost Multiplier

0.97

Primary Improvement Replacement Cost New (RCN)

14,949,377.01

$ 

Percent Good from Marshall & Swift

25.00%

Primary Structure Replacement Cost New Less Depreciation (RCNLD)

Other Improvements

Size

$/Unit

RCN

Age

% Good

Value

Other Improvements

210,417.00

$ 

27 Effective

50%

105,208.50

$ 

Surface Parking

544 Spaces

2,070.00

$ 

1,126,080.00

$ 

25 Effective

15%

168,912.00

$ 

Other Improvements 

Notes: 

Land Improvements

32.07

$ 

Cost Approach Indicated Value

Subject Property Cost Approach Indicated Value

Land Value

Total -->

3,177,220.00

$ 

Cost Approach Indicated Value /SF

7,188,685

$ 

3,737,344.25

$ 

Land Value

Total -->

274,120.50

$ 

Cost Approach

Primary Structure RCNLD

Light Manufacturing

C

Low Cost

Primary Structure Replacement Cost New Less Depreciation (RCNLD)

Address

City

State

Type

 Building SF

 Grade

Price

Sale Date

Sale Status

Price / SQF

Time Adjust Sale 

Price

Time Adj. Price 

Per SF

32100 Stephenson Highway

Madison Heights

MI

Industrial

224,138 Sq.Ft.

C

N/A

N/A

N/A

N/A

N/A

N/A

Days before 

Assess Date

Annual % of 

Time

Annual Inflation Rate

Adjustment

Adjustment 

Factor

Time Adjust Sale 

Price

Assessed Value

Assessed Value 

PSF

N/A

N/A

N/A

N/A

N/A

N/A

15,044,491

$ 

67.12

$ 

Address

City

 State

 Type

 Building SF

 Grade

 Price

Sale Date

Sale Status

Price / SQF

Time Adjust Sale 

Price

Time Adj. Price 

Per SF

29880 Groesbeck Hwy

Roseville

MI

Industrial

228,269 Sq.Ft.

C

12,700,000

$ 

4/19/2023

SOLD

55.64

$ 

12,916,769.86

$ 

56.59

$ 

8111 Middlebelt Rd

Romulus

MI

Industrial

159,600 Sq.Ft.

C

7,000,000

$ 

1/13/2023

SOLD

43.86

$ 

7,137,890.41

$ 

44.72

$ 

799 Ladd Rd

Walled Lake

MI

Industrial

279,115 Sq.Ft.

C

7,200,000

$ 

3/14/2024

SOLD

25.80

$ 

7,257,797.26

$ 

26.00

$ 

24030-24060 Hoover Rd

Warren

MI

Industrial

110,673 Sq.Ft.

C

6,100,000

$ 

4/12/2023

SOLD

55.12

$ 

6,205,287.67

$ 

56.07

$ 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Date

Assessment Date 

Days before 

Assess Date

Annual % of 

Time

Annual Inflation Rate

Adjustment

Adjustment 

Factor

Time Adjust Sale 

Price

Average Price 

Per SF

Median Price Per 

SF

Adjustment 

Mode

4/19/2023

1/1/2025

623

1.706849315

1.0%

1.70685%

1.0170685

 

12,916,769.86

$ 

Sales

1/13/2023

1/1/2025

719

1.969863014

1.0%

1.96986%

1.0196986

 

7,137,890.41

$ 

45.10

$ 

49.49

$ 

Unadjusted

3/14/2024

1/1/2025

293

0.802739726

1.0%

0.80274%

1.0080274

 

7,257,797.26

$ 

Per SF

4/12/2023

1/1/2025

630

1.726027397

1.0%

1.72603%

1.0172603

 

6,205,287.67

$ 

Time

 

 

 

 

 

 

 

 

45.85

$ 

50.40

$ 

Adjusted

 

 

 

 

 

 

 

 

Per SF

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assessment Date 1/1/2025

Annual RE Inflation Rate 1.0%

Annual Days 365

N/A

224,138 Sq.Ft.

45.85

$ 

10,275,658

$ 

Notes: 

Sales Comparison Approach 

Subject Sales Price:

Subject Property

Assessed Value

Subject Property Time Adjustment

Comparable Property Sales

Central Measures

Comparable Sales Time Adjustments

Subject Property Sales Comparison Approach Indicated Value

Subject Square Footage:

Average Time Adjusted Sales Price Per SF

Sales Comparison Indicated Value

Owner:

HENKEL CORPORATION

Net Rentable Area:

Location:

32100 Stephenson Highway

Year Built:

Account:

44-25-02-176-016, 44-25-02-176-010 & 44-25-02-176-014

Market Rent:

PSF

% EGI

Rent

X

NRA

=

Income

Potential Gross Income:

$9.05 Per Sq.Ft. X

224,138 Sq.Ft. =

2,028,449

$ 

9.05

$ 

105.3%

Expense Recovery:

0.00% =

-

$ 

-

$ 

0.0%

Concessions:

0.00% =

-

$ 

-

$ 

0.0%

Secondary Income:

0.00% =

-

$ 

-

$ 

0.0%

Total Secondary & Other Income:

=

-

$ 

-

$ 

0.0%

Total Income (PGI + Other Income)

=

2,028,449

$ 

9.05

$ 

105.3%

Less Economic Vacancy Factor (1 - Vacancy %):

95.0% =

101,422

$ 

0.45

$ 

5.3%

=

1,927,026

$ 

8.60

$ 

100.0%

PSF

% EGI

Variable Expenses:

20.00% =

385,405

$ 

1.72

$ 

20.0%

Management Expenses:

5.00% =

96,351

$ 

0.43

$ 

5.0%

Reserve for Replacement:

2.00% =

38,541

$ 

0.17

$ 

2.0%

Tenant Improvements:

0.00% =

-

$ 

-

$ 

0.0%

Total Variable Expenses:

27.00% =

520,297

$ 

2.32

$ 

27.0%

Common Area Maintenance (CAM):

2.50% =

48,176

$ 

0.21

$ 

2.5%

Taxes:

12.85% =

247,575

$ 

1.10

$ 

12.8%

Insurance:

2.50% =

48,176

$ 

0.21

$ 

2.5%

Total Fixed Expenses:

17.85% =

343,926

$ 

1.53

$ 

17.8%

44.85% =

864,224

$ 

3.86

$ 

44.8%

Net Operating Income

1,062,803

$ 

4.74

$ 

55.2%

Capitalization Rate

11.00%

Notes: 

Subject Property Indicated Income Approach Value

43.11

$ 

9,661,844

$ 

Total Expenses

Indicated Income Approach Value / SF

Operating Expenses

Effective Gross Income

Income and Expense Analysis - Market

224,138 Sq.Ft.

1963

$9.05 Per Sq.Ft.

Revenues

Subject Property Income Approach Indicated Value

Address

Primary Parcel ID

Property Type

Property Grade

County NLA

Year built 

Assessment

PSF

32100 Stephenson Highway 25-02-176-016, 44-25-02-176-01

Industrial

C

224,138 Sq.Ft.

1963

15,044,491

$ 

67.12

$ 

Comparable Address

Parcel ID

Property Type

Property Grade

County NLA

Year built 

Assessment

PSF

31440 Stephenson Hwy

25-02-328-005

Industrial

C

138,844 Sq.Ft.

1953

5,923,220

$ 

42.66

$ 

1100 E Mandoline St

25-01-251-022

Industrial

C

120,333 Sq.Ft.

1967

5,294,500

$ 

44.00

$ 

6600 E 15 Mile Rd

10-10-33-126-005

Industrial

C

376,904 Sq.Ft.

1955

10,621,800

$ 

28.18

$ 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes: 

Average 

38.28

$ 

Median

42.66

$ 

Equity PSF Value

38.28

$ 

Subject Property Value

8,580,109

$ 

Equity Comparison Analysis

Equity Comps 

Subject Property

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