CASE STUDIES
Home Sweet Home:
the transformation of a plain vanilla 1970s apartment to stylish condominiums with only one catch: rent control.
Alameda County
Condo conversion
Assignment overview
Our client asked to provide three realistic outcomes based on several market driven factors including accounting for the impact of rent control.
Role
Acting as the independent, third party, we gave the type of analysis that our client would feel comfortable relying upon in making their decision about releasing funds throughout the extended construction period.
Issues
Few entry level housing alternatives
Existing tenants could continue to rent regardless of units being sold
Estimating anticipated pace of unit selling is contingent upon the natural rollover of units in similar situations.
Market trends, including tracking rents, home prices and new condominium developments proved key to the assignment’s credibility.
Follow Up
Only about 10% of tenants opt to buy their units.
Many units turnover once notice is given that the property is going to be converted to condominiums.
Some appreciation in units sold early in the marketing period.
Experience
Valuing a moving target with changes underway can be a daunting task. Beyond Value has handled numerous new construction projects, presenting the data in a user-friendly format that is both realistic and understandable.
Neighbors Don’t Always Get Along.
Alameda County
Encroachment Dispute
Assignment overview
Our client, a title company, has requested our services on several occasions. The last time, the issue concerned an encroachment by the neighbor.
Role
By hiring us, we could be the intermediary and be impartial to either party in the dispute.
Issues
City owned right-of-way impacted valuation
Extent of encroachment considered; the issue was a fence that fully blocked use of the area.
Location of encroachment was highly visible.
Follow Up
Our report presented a realistic value for the area impacted by the encroachment, allowing for our client to negotiate terms for a settlement.
Experience
With potentially sensitive issues, Beyond Value acts in a responsible manner so as not to negatively impact the delicate situation. Furthermore, our ability to pinpoint a value within a narrow range that can stand up to scrutiny requires an expert level of valuation skills.
Feasible to Build?
Contra Costa County
Document Storage Facility
Assignment overview
We were asked to value a mini-storage facility located in the East Bay. This was not just a mini-storage; it also had a moving rental equipment component and a document storage facility. And, because business was going so well, they planned on an expansion.
Role
To provide a value for a loan decision predicated on both real property and the going concern value of the business.
Issues
Surveying the mini-storage and document storage businesses and checking for signs of market saturation.
We analyzed historical data, interviewed the different managers of the departments and correlated that data to the market supported data.
Follow Up
The property is being expanded…again. We have been retained to provide a series of values for the development of the expansion – before, during and after construction is complete.
Experience
Valuing real property, personal property and businesses rely on the same process but terminology varies and varying degrees of expertise are needed. Beyond Value will partner with accountants and business valuation specialists if the assignment warrants such an arrangement. In the end, this project provided our client with the support on market trends, pricing and demographic shifts, elements relied upon in developing our opinion of value.
Waterfront Paradise
Marin County
Prime waterfront
Assignment overview
Luxury waterfront project with high profile location.
Role
We were asked to give a “reality check” for an on-going project to give values at various junctions. Our report also included trends on luxury units: buyer profile, desired finishes, project amenities and sales activity.
Issues
No uniformity between the units;
Potential conflict between the needs of commercial vs. residential, i.e. restaurant noise, cooking odors etc.
No parking on site
Completion and follow up
Project completed with the most expensive unit in contract prior to final finishes installed. Two of the remaining 3 units will be retained by the developer.
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