Case Studies

Case Studies……….Problems and Solutions

When our clients call us they rarely ask us to simply estimate the value of a property.  There is always a reason or a story behind the request.  Most of the time they are asking us to solve a real estate problem.  They need advice.  Using our research, analysis and experience…we provide just that.

Here are some examples:

Ex. 1:

A corporation with significant land holdings needed guidance in evaluating the impact of a municipality’s new zoning ordinance on their future development plans.

The town wanted to inhibit development in certain areas of the town by allowing an increase in development in other parts of the town. The mechanism to do this was a TDR – Transfer of Development Rights opportunity in their zoning ordinance.  The TDR would allow an increase in development potential for the “receiving” site if the owner of the receiving site purchased the development rights of various “sending” sites.

The client wanted to know if it was financially feasibility and practical to purchase land in the Township’s designated conservation (sending)  areas in order to obtain development credits for the parcel they already owned in the receiving area.

Ex. 2:

A Fortune 500 company owns a large research farm that they no longer utilize.  They wanted to know if it made sense to sell the property under its current zoning or to voluntarily restrict future use to agricultural use and sell or donate the land.

Ex. 3:

A government agency had condemned a commercial property on a major highway for expansion of the roadway.

The agency hired an appraiser as did the property owner and the parties were about to go to trial.  The attorney for the agency hired Sterling DiSanto & Associates to review and critique both appraisals, evaluate the strengths and weaknesses of each side’s case, and make recommendations based on his findings.  The assignment included fact checking all the data in both expert reports, analyzing the different methodologies, and evaluating the reasonableness of each appraiser’s valuation

Ex. 4:

A restaurant is owned by several family members.  They were in the process of negotiating a long term lease extension.  Some of the family members were not comfortable with the way the negotiations were going.  They hired Sterling DiSanto & Associates to provide guidance, backed by solid market data, in order to negotiate from a position of strength.

Ex. 5:  

A large urban redevelopment project had received a real estate tax abatement many years ago as an incentive to redevelop a particular area.  The tax abatement called for a payment in lieu of traditional real estate taxes based on a certain formula.  The abatement was about to expire and the partner needed an analysis to see if it made financial sense to extend the abatement or return to the traditional real estate tax structure.  Sterling DiSanto & Associates was retained to perform this analysis and present the various scenarios available.

Ex: 6:  

A major pipeline company needed to acquire a 20 year license to install and operate a new pipeline through State preserved parkland.  Sterling DiSanto & Associates was retained by the pipeline company to meet with the Department of Environmental Protection to explain the proposed route, the property rights being acquired as well as the valuation methodology for a 20 year license and how it differed from an easement valuation.

Ex. 7:  

The owner of a shopping center was presented with a proposition from the supermarket anchor of the center.  The supermarket wanted to expand their space by 20,000SF.  If the owners of the shopping center would not agree to the expansion, the supermarket would not exercise their upcoming option to renew.  To expand would require removal of several satellite stores and loss of rental income from those stores.  Sterling DiSanto & Associates was retained to evaluate different scenarios, including evaluating the Highest and Best Use and Market Rent of the undersized existing supermarket space as well as estimating Market Rent and anticipated income for the entire center if the expansion took place.

Commercial Real Estate Appraisals | Design by Scrapsity Consulting
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