Michigan Tax Tribunal Exhibit - 261 Black River Street Valuation Evidence.pdf
Andrew J Geraghty Petitioner V City Of South Haven Respondent · 26-002253-TT
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PETITIONER'S COMPARABLE MARKET AND ECONOMIC EVIDENCE EXHIBIT Property Address: 261 Black River Street, South Haven, MI Parcel Number: Parcel #80-53-715-020-60 Proceeding: Michigan Tax Tribunal - Assessment Appeal I. Introduction and Subject Property Context The subject property, located at 261 Black River Street #6, South Haven, MI, was acquired in June 2025 for $415,000. This purchase price represented a composite valuation encompassing not solely the real estate asset, but also its established operational positioning and income-generating capability as a short-term rental (STR) asset. Subsequent to acquisition, the implementation of the City of South Haven's updated short-term rental regulations and overlay mapping excluded the subject parcel from the permitted STR zone, imposing severe external obsolescence, rendering the license non-transferable, and materially compressing its true cash value. II. Comparable Sales Market Analysis (Post-Ordinance) To establish the true market value under the current regulatory climate, the following recent arm's-length sales of comparable units—all influenced by the post-overlay market reality—demonstrate that the assessor's valuation exceeds true cash value: Parcel Number Address / Location Sale Date Sale Price Comparative Notes 80-53-767-001- 10 650 Conger ST 12/01/2025 $250,000 Sold .5 miles from 261 Black River and outside STR overlay. Notably, a prior sale in the same building (Parcel #80-53-767-001-60) occurred on 07/01/2022 for the exact same price of $250,000, proving flat-to-declining value stagnation post-overlay.
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Parcel Number Address / Location Sale Date Sale Price Comparative Notes 80-53-715-020- 70 Harborside Condominiums 08/28/2026 $351,000 Shares a wall directly with the subject unit. Fully updated interior, yet closed at $351,000, illustrating the ceiling of market value under current regulatory constraints. 80-53-715-020- 30 Harborside Condominiums 08/22/2025 $377,500 Located within the same building as the subject unit, capturing immediate post-ordinance market sentiment. III. Analysis of Asset Value, Included Assets, and Revenue Impact The original purchase of 261 Black River Street #6 in 2025 for $415,000 incorporated critical components beyond raw real estate square footage: ● Going-Concern and Included Assets: The acquisition included chattel, furnishings, and operational assets required to maintain an active short-term rental business. ● Income Stream Integration: The purchase price reflected the capitalization of projected short-term rental revenue streams. ● Regulatory Depreciation: Because the subsequent municipal overlay map excluded this parcel and enforced non-transferability of licenses upon sale, the business asset component has been heavily impaired. A prospective buyer can no longer rely on transferable operational status, destroying the enterprise value that formed part of the original acquisition price. IV. Conclusion The combination of stagnant historical comps at 650 Conger Street ($250,000 in 2022 versus $250,000 in late 2025), direct same-building sales ($351,000 and $377,500), and the severe external obsolescence caused by the STR overlay exclusion demonstrates that the assessor's valuation fails to reflect the true cash value of 261 Black River Street #6.