Appraising in Special Situations

Special situations, in real estate appraisal, are cases which require more than a simple appraisal. In our practice, we provide opinions of value to make informed decisions, and in the process, also help resolve disputes. Here are a few cases we look back upon and take pride in. In each of these cases we were able to provide for each unique scenario, an appropriate solution:

Expert Witness in a Specialty Property Litigation – Opinion on “As Is” Market Value

In a specialty property case, involving three parties and being litigated in a trial court, the court sought property appraisals from opposing parties to determine the value of the property.

Hired by one of the defendants, we provided a professionally prepared opinion of value of the specialty property. Our opinion of value was well supported by market data and prepared with conventional appraisal practice; we also defended our opinion of value and the appraisal process as an expert witness in the court.

Dispute Resolution – Assisting with a “Third & Determining Appraisal Opinion”

A tri-party dispute involved a mixed-use building owner, its existing tenant in professional practice seeking retirement and intending to sell the remaining lease term, and the subtenant buying out the existing tenant’s practice along with the remaining years and accompanying rights of the lease. As the leasehold value indicated by the independent appraisals were too far apart, the parties could not agree on the amount of compensation to be paid to the property owner for accepting the subtenant.

We were unanimously chosen by the three law firms engaged in this litigation as the final independent appraiser and our opinion of leasehold value helped resolve the dispute.

Assist a Judge to Determine Property Value Using an Objective Capitalization Rate

In a court handling an eminent domain case, the value indications of the disputing parties revolved around the capitalization rate used by the opposing sides. The judge needed an objective opinion of the capitalization rate.

We developed a capitalization rate based on accepted principles of capitalization rate development. This was further supported by market data of the marketplace wherein the property was located.

Partial Value of an Estate in a Marital Dispute

A Manhattan couple decided to amicably settle their marital separation dispute while continuing to keep their property, which they both occupied, within the estate. However, they needed to find a way to settle compensatory obligations between themselves. They had a buyer for the air rights on the property they owned and occupied. The buyer had already submitted an offer to purchase.

We were unanimously chosen by the couple to appraise the air rights. Our appraisal helped them arrive at a base market value of the air rights, from which they negotiated the best possible deal with the potential buyer.

Getting Cash Out to “Cash In” on Market Opportunities

An owner of multiple self-storage properties saw the recession coming and wanted to be prepared with financial liquidity and to take advantage of the acquisition opportunities in a depressed marketplace.

We appraised three of the prime properties (nearly $150 million value) for refinancing purposes, which enabled the owner to find capital to further expand the portfolio.