Commercial Valuation

Valuation of income producing real estate has become a very complex business over the past two decades. Rapidly changing markets, greater computer sophistication, as well as a globalization for the real estate market requires adept appraisal skills.

Our valuation experience includes a wide variety of projects in different locations nationwide. In addition, we have the capability of applying several different computer software packages to any particular real estate valuation issue. In order to generate current market value appraisals, an extensive database in all project categories is maintained on a continuous basis.

Small Loan Program

In recognition of the diverse property types considered by our clientele, ARH&Co. has designed a cost effective valuation process to address properties with values under $1 million. This process results in a client specific appraisal format that addresses all the requirements promulgated by USPAP as well as the client’s individual needs.

Clients are encouraged to contact us for information necessary to properly analyze projects at hand prior to acquisition or financing commitment.

Consulting Services

Consulting services are not only oriented to a general buy/sell scenario, but include sensitivity analysis, residual analysis, fractional interest valuations, as well as arbitration estimates in a variety of categories (lease breach, partnership dissolutions, etc.)

We also provide educational forums with respect to a market overview in our investor surveys, computer software classes and have also been speakers at a variety of national panels on real estate valuation and related issues. Members of our Company are approved instructors for both the Appraisal Institute as well as the TriState Realtors Commercial Alliance.

Expert Witness

Expert witness services are provided with respect to real estate valuation and consulting issues. Extensive expertise with regard to a wide variety of property types, circumstances, timing related issues, as well as the ability to successfully defend one’s position in a hostile environment is critical. The best defense is a thoroughly prepared report which properly analyzes and discusses all pertinent assumptions and conclusions to the satisfaction of courts of pertinent jurisdiction.

Testimony opinions have been rendered in such areas as:

  • Arbitration
  • Tax Appeals
  • Condemnation
  • Bankruptcy Proceedings
  • Tax Appeals

Prudent management today requires hands-on, aggressive monitoring of all operating expenses. Careful review of all expenditures, especially real estate taxes which comprise anywhere from 30-50% of operational expenses, is extremely important. A clear understanding of valuation issues, assessment procedures, and jurisdictional requirements is necessary.

Related to this discipline, we have experience in several jurisdictions on a variety of high profile cases. Thoroughness of information provided to the assessment division and/or the tax court is paramount in the successful tax appeal process.

Review and consulting services are also rendered as part of the tax appeal process in terms of strategy, timing, and negotiations.

Feasibility Studies

In markets where demand is evident for a particular property type, reliable forecasts as to the future performance are necessary. The reliability of these forecasts, however, is tied directly to the reasonableness of all pertinent assumptions.

Proper database analysis and current market data must be properly analyzed so that prudent forecasts can be made.

Our data sources, in either case, are continuously monitored and updated so that reliable future forecasting can be accomplished.

Portfolio Analysis

Sophisticated financial analysis of real estate assets is imperative to this particular discipline. The ability to generate and analyze cash-flows for a wide diversity of property types is necessary.

Charting historical yields as well as considering optimum sales points at future dates is also mandatory.

Future expectations, with regard to anticipated yield on both a current and prospective basis, also must be sensitive to a clear understanding of a variety of marketplaces throughout the country.

As an adjunct to this service, we provide concurrence opinions with respect to the reliability of internally generated numbers by such clients as major pension funds and insurance companies.