Huge difference between appraised value and city assessed value
I'm looking to buy a NNN 8% cap in a HCOL city. Everything about the building looks good, bank appraised it at $950k and I'm planning to get it for $875k. One thing I'm worried about is how low the property assessment for 2019 was. It's being assessed at $280k by the city. Why would that be? 

I'm concerned if I buy this building, the taxes will shoot up and the tenant will not be pleased. Have any brokers witnessed this kind of disparity?
[{"id": "fhtr3ws", "text": "Assessed value is irrelevant in determining the actual true market value of a property. AV should only be used to determine your tax liability. \n\nThe biggest concern would be if the taxing jurisdiction increases the assessed value upon a sale, as many counties/cities cap tax increases during a single ownership period.\n\nIn your case, the tenant is triple net, so it would not financially impact you day 1, however the tenant would incur a substantial additional tax liability that would affect their decision to renew.", "replies": [], "depth": 1}, {"id": "fhtr7yb", "text": "I\u2019ve dealt with this with staggeringly similar numbers. Sold for 800 and assessed at about 325. Within a few years the assessed value had almost tripled. The tax assessed value has never mattered. Not even once. You should assume it\u2019ll normalize and underwrite the deal with what the taxes \u201cshould be\u201d though.", "replies": [], "depth": 1}, {"id": "fhtx1bt", "text": "Assessed value is totally meaningless in terms of valuation.  After the housing market crashed, many property owners were doing tax appeals and winning at about an 80% rate - municipalities were getting crushed between lower tax revs collected and legal fees they paid out for every case. Finally, the assessors caught on and figured out a way around it.... They lowered assessed values across the board, but raised tax rates. People can appeal the assessed value, they can\u2019t appeal their actual taxes. So, by lowering assessed values and raising tax rates, they beat the appeal system. People aren\u2019t going to come in and say my property assessed value is too low - and they know if they appeal, their taxes are only going up.", "replies": [], "depth": 1}, {"id": "fhusuyz", "text": "Is this in California by chance?", "replies": [], "depth": 1}, {"id": "fhw8zgz", "text": "Some cities, ahem Newark, don\u2019t have realistic city appraised values so they can keep taxes low.  They get state funding or go broke instead,  but that seems irrelevant to them.", "replies": [], "depth": 1}]