It Always Pays to Trust Your Gut in an Appraisal
A Client in the Middle of Construction Calls on Argianas & Associates to Complete a Market Valuation to Secure Financing
When the team at Argianas & Associates takes on an appraisal project, we look at your business from every angle and take the time to understand what you do before we begin your valuation. Recently, we were called to do a cut-and-dry market valuation on a build-to-suit industrial warehouse in the middle of construction completing an addition that would allow them to expand operations.
The property was being customized for Fortune 500 companies that required an industrial facility located in a premier location. “At first look, this property was a one-story, masonry-constructed warehouse in an industrial complex. The client had requested a market valuation, which would estimate the current price of the property for a loan they needed to get additional financing,” explained Argianas & Associates Founder, Charles Argianas. “We did a gut check and knew intuitively that we needed to apply a direct capitalization rate to estimate the income that this property could generate over the next several years. We wanted to arm our client with the best possible information to secure their loan.”
Upon doing even further research, the Argianas team also realized that the warehouse was classified incorrectly by the county assessor and recommended that it be re-classified as a special purpose property in character used by multiple tenants. This allowed us to include the value of the creditworthiness of the current tenants renting space in the warehouse in the final customized real estate appraisal report.
As they say, it always pays to listen to your gut! The team at Argianas & Associates did exactly that, and the client was able to secure the loan they needed to complete their expansion project.
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