Miami-Dade County is pursuing higher property valuations for several high-profile properties and development sites, a move that could result in increased tax bills for their owners. Miami-Dade Property Appraiser Tomas Regalado’s office filed lawsuits against 17 property owners who received reductions in their market values for the 2024 tax year.
The legal actions, filed over two days at the end of July, target a range of entities including Blackstone, Simon Property Group, Royal Caribbean Group, Prologis, KAR Properties, Midtown Development, Swire Properties, Melo Group and RER Ventures. These owners had previously secured lower market valuations from the county’s Value Adjustment Board.
Regalado said this approach is less aggressive than that of 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 filing fewer lawsuits than before, Regalado noted the size of the valuation reductions was significant. He said his staff had already started settlement talks with ten owners before filing suit. “Still, the 17 property owners his office is suing ‘got a huge discount,’ and ‘they should not have received that kind of reduction,’” Regalado said.
Shahab Karmely, CEO of KAR Properties—one of those sued—commented on broader appraisal practices: “We have this unfortunate pattern where the value of raw land that produces no income is arbitrarily increased,” Karmely said. “It’s not something that can be mathematically justified.” He added that appraisers often overlook factors like rising interest rates and construction costs as well as slower new construction activity when valuing land.
“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 acknowledged some agreement with Karmely’s assessment but argued recent valuation cuts were excessive: he has directed his legal team to pursue settlements rather than protracted litigation if possible. “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 those targeted by lawsuits:
– Cruise Terminal A (2000 North Cruise Boulevard), owned by affiliates of Royal Caribbean and Icon Infrastructure; its assessed value dropped from $68.8 million to $53.7 million.
– Dolphin Mall (11401 Northwest 12th Street), owned by Simon Property Group affiliates; its valuation decreased from $603 million to $500 million.
– A portfolio managed by Blackstone and Link Logistics covering 21 industrial sites mostly in Doral saw its combined valuation reduced from $549.6 million to $460 million.
– Two Midtown Development sites on Northeast 36th Street and North Miami Avenue experienced reductions from $73.7 million to $42 million and from $95.1 million to $54.2 million respectively.
– A former Swire Properties site on Brickell Avenue saw its value fall from $98.8 million to $67.9 million before being sold for over $200 million.
– Melo Group’s Edgewater site slated for Aria Reserve condos dropped in value from $81.6 million to $66.3 million.
– KAR Properties’ Miami River assemblage declined from $55 million to $39.2 million; it will be developed into Faena Residences with Fortune International Group and Alan Faena.
– RER Ventures’ Coral Gables and Kendall holdings went down sharply—from a combined value of over $46 million to just under seven.
– Prologis’ warehouse in Hialeah was reduced in assessed value from nearly $79 million down to about $54 million.
These disputes reflect ongoing tensions between local governments seeking revenue through higher assessments and developers concerned about what they view as unrealistic land valuations amid changing economic conditions.
