"I just got off the phone for the chief appraiser regarding the report you recently did for the restaurant... The reviewer said that this was a fantastic report and one of the best reports he has read this year. He says from one MAI to another - KUDOS!"
As you can imagine, there is nothing better than starting out your morning and seeing a message like this in your email. But, this was especially gratifying because it was a new client, and I also sense that the bank was a little uneasy with a one-year-old appraisal of the same property that they had in their file from another appraiser.
Restaurants are specialized appraisal assignments in general, but this was a somewhat unique 16,000+ sq. ft. restaurant and bar located in a south Jersey shore community. Therefore, there was no truly comparable sales or leases in the area. A detailed analysis of the business revenue provided the only credible way of deriving a supportable rental rate.
Going Concern Properties is a vital subcategory of real estate appraisal. More importantly, untangling the parts – separating the real estate component from the equipment as well as the intangible business - is a CRUCIAL part of the process.
Having expertise in valuing restaurant businesses, independent of the real estate, as well as equipment appraisal, certainly helps in assuring that the final allocation is accurate.
Going Concern Properties are a vital subcategory of real estate appraisal. More importantly, untangling the parts – separating the real estate component from the equipment as well as the intangible business - is a CRUCIAL part process.