It Was Peaches And Cream for a Dairy
With Suburban Expansion Plans on the Table, Argianas & Associates Knew to Ask the Right Questions During the Valuation Process
When Argianas & Associates was called in to determine the value of a dairy located in Chicago’s western suburbs with an aggressive plan for growth, we knew we needed an equally aggressive valuation appraisal strategy. This complex project featuring a dairy processing plant, packaged good facilities and multiple commercial stand-alone, sit-down retail locations, required us to tap into our extensive experience with fast-food outlets as well as retailers.
For this project that included both commercial retail and special use properties, the team also had to know what to include in the final valuation. “We knew that for this particular dairy, it wasn’t just a simple brick and mortar valuation. To really get to the best estimate of value for them, we had to determine and analyze several factors some of which were apparent, and some of which were not,” explained Argianas & Associates Founder, Charles Argianas. “For example, we looked beyond real estate and factored in their brand as a premium dairy that only uses farm fresh milk.”
To formulate the appraisal strategy, the knowledgeable team kept asking the right questions such as:
• What are the industry trends occurring in the dairy market?
• If a store were to become vacant, what would be the main attraction for the next occupant?
• What is the benefit of appraisal features like their upscale, old-fashioned ice cream parlor feel and character?
• What is the value of the higher finish materials such as the ceramic tile and upgraded furniture and fixtures?
• What entitlements should be investigated?
• What is the added value of their high-end, premium ice cream and dairy brand?
• How much does it cost to build and purchase a dairy outlet versus their strip mall counterparts?
• What are the easement benefits and parking agreements for the stand-alone locations?
• What is the intrinsic advantage of having stores in high-visibility locations?
• What other surrounding towns and adjacent businesses should be analyzed?
At the end of the day, it was all peaches and cream for the dairy company. The Argianas & Associates team asked the right questions to provide the client with a comprehensive, custom written report that allowed them to secure funding and continue their suburban expansion plans.
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