Case Studies : Rubicon American Trust

Case Studies : Rubicon American Trust
Rubicon American Trust (Rubicon) is a trust that seeks to provide investors with attractive income returns and potential for capital growth, by investing in stable income-producing properties in the US. By systematic hedging of foreign currency and interest rate risk, the trust aims to deliver consistent income with the potential for capital appreciation.

Challenge
Rubicon American Trust (Rubicon) purchased a bulk portfolio of thirty (30) properties across the country. Each property was a build-to-suit property for GSA tenants, which had high lease rates due to the included construction costs, and ultimately triggered an increase in tax assessments after the sale. McIntosh & Associates, LLC (M & A) was engaged by Rubicon to provide an in-depth analysis for each property to identify appeal opportunities for the entire portfolio of recently purchased properties.

Solution
First, M & A utilized its extensive network of brokers, property managers and project managers across the country to identify current market conditions for each Rubicon asset. M&A's property tax group then prepared its valuation position using the three approaches to value; cost, income and market. Because of the sale prices and the complex nature of the leases, M&A settled the cases with local legal counsel at the Tax Court Level.

Benefit
As a result of our tax work over the last year, Rubicon American Trust has saved over $1.3 million in taxes for their properties in California, Colorado, Washington DC, Louisiana, and Virginia.