30 — June 2026 — Owners, Developers & Managers — M id A tlantic Real Estate Journal
www.marej.com
O wners , D evelopers & M anagers
By Carlo L. Batts, MAI, Rittenhouse Appraisals and The Reduxx Group Family businesses with multi-state properties need strategic attention
states, prop- erty acqui- sition often follows op- portunity. But when succession time comes, those scat- tered proper- W
hen family busi- nesses expand across multiple
become a shared responsibility among heirs. The heirs now manage real estate spanning multiple jurisdictions, each with its own tax obligations and assessment standards. It’s at this time when several complications can emerge. As heirs manage urgent matters such as legal structure, tax fil - ing, and operational continu- ity, property taxes, in contrast, feel routine. The bills arrive and they get paid. This routine can mask a potential problem. Overas- sessed properties continue generating higher tax bills
month after month. Because property tax payments feel like ordinary operating ex- penses, heirs may not investi- gate whether assessments are accurate while they manage other succession priorities. This results in the heirs los- ing money they didn’t need to lose. As each state and county has different appeal proce- dures and deadlines, by the time heirs realize an assess- ment might be unfair, appeal deadlines may have passed. Additionally, property val- ues may not be clearly docu- mented. This creates practical
problems during estate settle- ment when values must be established for tax purposes and equitable distribution among heirs. A Case Study: Multi-State Property Portfolio A family concrete company owned nine properties across five states. When the owner passed, these properties trans- ferred to the heirs along with the business. The family worked with their estate attorney and CPA to manage the succes- sion. They engaged our firm to evaluate the nine proper-
ties and ensure there were accurate valuations for estate tax purposes. This required understanding each prop- erty’s market value across five different states with varying assessment standards. We provided valuations that allowed them to file their estate taxes accurately and document clear property val- ues for the heirs. The estate settled with documented prop- erty values and transparent tax reporting. The family’s situation is common but is manageable when addressed strategi- cally. All real estate holdings should be audited, to docu- ment values, and understand which assessments may be unfair. Once the assessments are corrected, clear records need to be created for the heirs. In this fashion, when succession happens, the next generation inherits organized assets, not surprises. Documentation & Planning Succession planning typically addresses legal structure, tax strategy, and leadership transition. Busi- nesses with properties over several states need to add an additional task, and incor- porate these considerations into succession planning. When heirs inherit orga- nized records - valuations, assessment histories, ap- peal procedures - they can manage those properties more effectively. Conversely, incomplete or outdated prop- erty information creates con- fusion during transition and makes future management decisions more difficult. We encourage all family businesses to ensure their properties are properly val- ued, assessed fairly, and documented clearly. Succession planning that accounts for multi-state prop- erties, their valuations, and their tax implications results in smoother transitions and better-informed heirs. Carlo L. Batts, MAI is the principal of Ritten- house Appraisals and The Reduxx Group, both based in Center City Phil- adelphia. He has a B. S. in Urban Planning and Real Estate Urban Land De- velopment from Virginia Commonwealth Univer- sity and received his MAI designation from the Ap- praisal Institute. MAREJ
Carlo L. Batts
ties can become a complicated inheritance puzzle for the next generation. During business transitions, property management can
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