Miami-Dade Property Appraiser Tomas Regalado has filed lawsuits in an effort to increase the market valuations of several high-profile properties and development sites in Miami-Dade County. The move could lead to higher property tax bills for owners of sites such as Dolphin Mall, a Royal Caribbean cruise terminal, and various other commercial properties.
On July 29 and July 30, Regalado’s office initiated separate legal actions against 17 property owners who had previously secured reductions in their assessed values for 2024. These reductions resulted in lower property taxes for the owners. Defendants named in the suits include affiliates of Blackstone, Simon Property Group, Royal Caribbean Group, Prologis, KAR Properties, Midtown Development, Swire Properties, Melo Group, and RER Ventures.
The strategy of challenging market valuations through litigation was first adopted by former appraiser 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.”
Regalado noted that although his office is filing fewer lawsuits than before, he believes some property owners received excessive reductions. “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. He added that negotiations toward settlements with ten owners were already underway before legal proceedings began.
KAR Properties CEO Shahab Karmely responded to inquiries from The Real Deal regarding two company affiliates targeted by these lawsuits over land they own along the Miami River in Brickell. Karmely said it is common for appraisers across the country to overvalue development sites: “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 argued that appraisals often do not consider rising interest rates or construction costs and noted slower new construction activity: “Every year that passes, they are like, ‘We are going to tax you more.’ 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 developers but maintains many valuation cuts granted by Miami-Dade’s Value Adjustment Board were too large: “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 named in recent lawsuits:
– Cruise Terminal A (2000 North Cruise Boulevard): An affiliate owned by Royal Caribbean and Icon Infrastructure saw its market value reduced from $68.8 million to $53.7 million; its taxable value was also set at zero dollars.
– Dolphin Mall (11401 Northwest 12th Street): Two Simon Property Group affiliates owning this shopping center reportedly had their valuation cut from $603 million to $500 million.
– Blackstone/Link Logistics’ portfolio: Twenty-one industrial sites mostly located in Doral had their combined assessment dropped from $549.6 million to $460 million.
– Midtown Development: Two vacant lots controlled by affiliates saw respective reductions from $73.7 million down to $42 million (110 Northeast 36th Street) and from $95.1 million down to $54.2 million (3055 North Miami Avenue).
– Swire Properties/Melo Group site (700–799 Brickell Avenue): Valuation fell from $98.8 million down to $67.9 million prior to being sold for over $200 million.
– Aria Reserve site (711 Northeast 23rd Terrace): Owned by Melo Group; assessment decreased from $81.6 million down to $66.3 million.
– Faena Residences site (90 Southwest Third Street): Affiliates linked with KAR Properties reported a reduction from $55 million down to $39.2 million.
– RER Ventures’ Coral Gables/Kendall lots: Values dropped collectively from $46.2 million down to just $6.5 million.
– Prologis warehouse (3760 West 108th Street): Market value lowered from $78.7 million down to $53.9 million.
If successful in court or through settlement negotiations led by Regalado’s office staff—as he indicated remains his preferred approach—property taxes on these major assets could rise significantly.
