Shipping Container Part Of Real Estate

[NachoPerito]

I am wondering if a shipping container on a commercial property occupied by a landscaping company would be classified as personal property or real estate.

The County has classified it as real estate.

It sits on concrete blocks above some kind of base. The asphalt has been paved up to the access point. Electrical has been installed. Six rollup doors are installed on the side to access the long side of the container for storage.

Use of appraisal is for bank financing.

Thanks in advance for the input.

 

[hastalavista]

What, from a practical point of view, is the difference between the shipping containers as configured vs. a steel building configured the same way?

 

[Mike Kennedy]

The County has classified it as real estate. << which department?

 

[NachoPerito]

The County has classified it as real estate. << which department?

The Assessor

 

[NachoPerito]

What, from a practical point of view, is the difference between the shipping containers as configured vs. a steel building configured the same way?

Not much. The foundation on blocks is less stable than a fixed foundation. I didn't see it attached to the foundation anywhere. The drainage is also not necessary adequate without gutters or downspouts.

 

[Tim The Enchanter]

What, from a practical point of view, is the difference between the shipping containers as configured vs. a steel building configured the same way?

It looks like a steel building. But, could you pick it up piece by piece with a fork lift and take it away on a truck?

 

[CGgonnabee]

The county could be double-dipping (not necessarily on purpose). I had an assignment for a petroleum distributor...the above-ground tanks were taxed as real estate. I started asking questions and it turned out that the company accountant was reporting the same tanks as business property. Long story short...the company was double-taxed for quite a few years. I figured this out...the company recouped enough money to pay my fee several times.

 

[hastalavista]

Not much. The foundation on blocks is less stable than a fixed foundation. I didn't see it attached to the foundation anywhere. The drainage is also not necessary adequate without gutters or downspouts.

I'd say that's enough to argue it is chattel (or personalty as CANative likes to call it) and not a fixture.

It is a storage today; tomorrow it could be yard space.

 

[gregb]

I'd say that's enough to argue it is chattel (or personalty as CANative likes to call it) and not a fixture.

It is a storage today; tomorrow it could be yard space.

If it is considered a chattel or personal property not a fixture, how would you address any income attributable to this amenity in the appraisal?

 

[hastalavista]

If it is considered a chattel or personal property not a fixture, how would you address any income attributable to this amenity in the appraisal?

I'd attribute it to the business and not the real property except the portion that is attributable to the land (rent).

It sounds like yard space that has containers on it that are being used for storage. Not a bad trick if you can then rent out the space for storage.