Property Taxes After Acquisition of Retail Commercial

[Jae Kim]

Hello - I'm looking at a commercial retail deal where the real property taxes shown on the operating expenses are super low in comparison to the purchase price of the building. I know after the purchase, the tax expense may significantly go up (5X) as currently listed. The leases have NNN reimbursements by the tenants, but there will be significant sticker shock when the tax bill comes out or when the new NNN charges are set. I think Seller will say that Tenant have to pay for this so this is not an issue. But I feel like this disparity in the historical property taxes and future taxes will be a risk factor and warrant an adjustment on the purchase price. Anyone have experience in dealing with this issue and can give advise? The property is in Texas and taxes are usually assessed based on value derived from rent stream and with cap rate determined by county applied to it.

Thanks.