Miami-Dade Property Appraiser Tomas Regalado is seeking higher market valuations for a handful of signature properties and development sites in the county.
During a two-day span of July 29 and July 30, the property appraiser’s office filed separate lawsuits in Miami-Dade Circuit Court against 17 owners that scored reductions in their properties’ market values in 2024, which in turn led to lower property tax bills.
Some of the defendants include affiliates of New York-based investment giant Blackstone, Indianapolis-based national shopping mall owner Simon Property Group, Miami-based cruise line Royal Caribbean Group and San Francisco-based industrial real estate investment firm Prologis. Regalado’s office is also suing affiliates of KAR Properties, Alex Vadia’s Midtown Development, Swire Properties, Melo Group and RER Ventures that own seven separate development sites in Miami-Dade.
The practice of seeking to redo market valuations for trophy properties and development sites via litigation began under Regalado’s predecessor, Pedro Garcia, who was Miami-Dade Property Appraiser from 2008 until 2024. In a phone interview, Regalado said he’s not as aggressive as 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.”
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. His staff had already begun negotiating settlements with 10 owners prior to the lawsuits being filed, he added.
Shahab Karmely, CEO of KAR Properties, was the only defendant who responded to requests for comment from TRD. Regalado’s office is suing two KAR affiliates that own a Miami River assemblage in the city’s Brickell neighborhood.
In general, property appraisers across the nation often overestimate the value of development sites, Karmely told TRD. “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.”
For instance, property appraisers take into account what can be developed on the land, but don’t factor in rising interest rates and construction costs, high inflation and the fact that new construction starts have slowed.
“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 said he agrees with Karmely, but the property market value haircuts provided by the Miami-Dade Value Adjustment Board to the 17 owners went too far. Still, he has instructed the property appraiser’s legal staff to work out settlements, Regalado said.
“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.”
Here are the properties that are targeted in the property appraiser’s lawsuits:
Cruise Terminal A, 2000 North Cruise Boulevard, Miami
An affiliate of Royal Caribbean and London-based investment firm Icon Infrastructure that owns the cruise ship terminal allegedly obtained an incorrect reduction in the property’s market value from $68.8 million to $53.7 million, the property appraiser’s lawsuit states. The affiliate also allegedly incorrectly received a reduced taxable value of zero dollars from the Miami-Dade County Value Adjustment Board.
Dolphin Mall, 11401 Northwest 12th Street, Sweetwater
Two affiliates of Simon Property Group that own the 1.4 million-square-foot Dolphin Mall allegedly obtained an incorrect reduction in the property’s market value from $603 million to $500 million, according to the property appraiser’s lawsuit.
Blackstone’s Miami-Dade portfolio
An affiliate of Blackstone and its industrial subsidiary, Link Logistics, that owns 21 industrial sites in the county, mostly in Doral, allegedly obtained an incorrect reduction in the market value of the properties from a combined $549.6 million to $460 million, according to the property appraiser’s lawsuit.
Midtown Development sites, 110 Northeast 36th Street and 3055 North Miami Avenue, Miami
The property appraiser’s lawsuit states that an affiliate of Vadia’s Midtown Development that owns a 3.5-acre vacant site at 110 Northeast 36th Street allegedly obtained an incorrect reduction in the property’s market value from $73.7 million to $42 million. The site is currently used as a green space adjacent to the Target at Midtown Miami’s retail center.
Another Midtown Development affiliate that owns a nearly 5-acre site at 3055 North Miami Avenue allegedly obtained an incorrect reduction in the property’s market value from $95.1 million to $54.2 million, the property appraiser’s lawsuit states. Midtown is partnering with Carlo Rosso’s Rosso Development to build the Midtown Park mixed-use project, which will also include the 28-story, 288-unit Midtown Park Residences by Proper condo tower.
2.8-acre development site, 700-799 Brickell Avenue, Miami
An affiliate of Swire Properties that previously owned a 2.8-acre development site at 700-799 Brickell Avenue allegedly obtained an incorrect reduction in the property’s market value from $98.8 million to $67.9 million, according to the property appraiser’s lawsuit. Swire abandoned plans for a supertall office building, and in May the firm sold the site to Miami-based Melo Group for more than $200 million.
Aria Reserve development site, 711 Northeast 23rd Terrace, Miami
An affiliate of Melo Group that owns the 5-acre development site in Miami’s Edgewater neighborhood allegedly obtained an incorrect reduction in the property’s market value from $81.6 million to $66.3 million, according to the property appraiser’s lawsuit. Melo Group is planning to develop the property into Aria Reserve, a two-tower project with 800 condos.
Faena Residences development site, 90 Southwest Third Street, Miami
Affiliates of KAR Properties that own a Miami River assemblage allegedly obtained an incorrect reduction in the property’s market value from $55 million to $39.2 million, according to the property appraiser’s lawsuit. KAR is partnering with Fortune International Group and Alan Faena to develop Faena Residences, a two-tower project with 440 condos.
RER Ventures development sites in Coral Gables and Kendall
An affiliate of Miami-based RER that owns a 2-acre development site in Coral Gables and a 0.8-acre lot in Kendall allegedly obtained an incorrect reduction in the properties’ market value from $46.2 million to $6.5 million, the property appraiser’s lawsuit states.
Warehouse, 3760 West 108th Street, Hialeah
An affiliate of Prologis that owns a two-story warehouse in Hialeah allegedly obtained an incorrect reduction in the property’s market value from $78.7 million to $53.9 million, according to the property appraiser’s lawsuit.
(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)
