Miami-Dade Property Appraiser Tomas Regalado has filed lawsuits against 17 property owners in the county, aiming to reverse reductions in market values that led to lower property tax bills for these properties. The lawsuits were filed over two days at the end of July in Miami-Dade Circuit Court.
The targeted owners include affiliates of major firms such as Blackstone, Simon Property Group, Royal Caribbean Group, Prologis, KAR Properties, Midtown Development, Swire Properties, Melo Group, and RER Ventures. These cases focus on a range of high-profile assets and development sites across Miami-Dade County.
Regalado said the number of lawsuits his office filed this year is significantly less than under his predecessor Pedro Garcia. “Last year, my predecessor filed 65 cases,” Regalado told The Real Deal. “We only filed 17 this year. The bottom line is that we are diminishing the number of cases that this agency used to file.”
Despite the reduced caseload, Regalado argued that the current group of property owners received reductions that were too steep. “Still, the 17 property owners his office is suing ‘got a huge discount,’ and ‘they should not have received that kind of reduction,’” he said. He noted negotiations for settlements had started with ten owners before litigation began.
Shahab Karmely, CEO of KAR Properties—one of the defendants—responded to The Real Deal’s request for comment regarding two KAR-owned parcels along the Miami River in Brickell. Karmely said: “We have this unfortunate pattern where the value of raw land that produces no income is arbitrarily increased,” adding that it is difficult to justify mathematically. He pointed out appraisers often overlook factors like higher interest rates and construction costs when valuing development sites.
“Every year that passes, they are like, ‘We are going to tax you more,’” Karmely said. “We have all these headwinds, but somehow these parcels are worth more. I wish that was the case, but it is not.”
Regalado stated he understands some concerns raised by Karmely but maintains the Value Adjustment Board’s reductions went too far for these properties. He also emphasized efforts toward resolving disputes outside court: “My commitment is to make sure that our team looks at a property’s income, looks at market conditions and tries to settle cases for the benefit of the owners,” Regalado said. “And if they prevail in court, we’re going to respect the decision. We will not appeal at all.”
Among properties cited in lawsuits:
– Cruise Terminal A at PortMiami saw its assessed value drop from $68.8 million to $53.7 million; its taxable value was reduced to zero.
– Dolphin Mall’s value dropped from $603 million to $500 million after appeals.
– Blackstone and Link Logistics’ industrial portfolio lost nearly $90 million in assessed value.
– Two Midtown Development sites saw their values cut by more than half.
– Swire Properties’ former Brickell site fell from $98.8 million to $67.9 million before being sold for over $200 million.
– Melo Group’s Edgewater parcel declined from $81.6 million to $66.3 million.
– KAR Properties’ Miami River assemblage dropped from $55 million to $39.2 million.
– RER Ventures’ Coral Gables and Kendall sites fell dramatically from a combined $46.2 million down to just $6.5 million.
– Prologis’ Hialeah warehouse went from an assessed value of $78.7 million down to $53.9 million.
These legal actions reflect ongoing disputes between local governments seeking higher revenues through real estate taxes and property owners contesting valuations amid changing economic conditions.
