Auto Lube Facilities-Methodology

[PropertyEconomics]

We have searched over 30 counties over our 3 state area and were unable to find comps that high. I have also sent out a general message to our local AI chapter and only recieved comps less than $250/SF. That is why I am wondering if it is a SF issue.

PE-I was under the impression that these things sold with a leased fee intrest. I am not sure what business value you are talking about--it is not a national credit tenant (i.e. Jiffy Lube). It does have a flag of an oil company, but, it is leased and ran much like a fast food company that owns the rights to the franchise. The flag mostly just puts the name of one of our fine oil companies on the building (customers believe they are a national brand they can trust to put the oil cap back on).:new_all_coholic:

Many Jiffy Lubes in my market have gone dark. Kind of something to think about.

Additionally, my bold above, is of great concern to me. Read it and see where I think you have made your mistake.
Again .. is this a "value in use" and what does your mentor say about this assignment.

 

[Stan Carman]

There is no floor above it Stan.

I am unsure of what you mean no floor above it. There is a floor above the pit area. This is one of those places that you roll over a big hole in the floor and the guy works on you car from the basement without having to jack up the car. So are you saying you would use the basement as GBA?

 

[PropertyEconomics]

I am unsure of what you mean no floor above it. There is a floor above the pit area. This is one of those places that you roll over a big hole in the floor and the guy works on you car from the basement without having to jack up the car. So are you saying you would use the basement as GBA?

Stan you are missing the point. I know whats above it. You are treating this too much like a house appraisal.
Are you doing a cost approach? Are you using gross building area?

 

[Stan Carman]

Many Jiffy Lubes in my market have gone dark. Kind of something to think about.

Additionally, my bold above, is of great concern to me. Read it and see where I think you have made your mistake.
Again .. is this a "value in use" and what does your mentor say about this assignment.

When I say values that high I mean to support the Income Approach. I am not trying to make a number work. I am making sure I am using a generally accecpted practice per USPAP. This is not a value in use. Is a restaurant a value in use? Is an office building a value in use? There is a market for these things.

 

[PropertyEconomics]

When I say values that high I mean to support the Income Approach. I am not trying to make a number work. I am making sure I am using a generally accecpted practice per USPAP. This is not a value in use. Is a restaurant a value in use? Is an office building a value in use? There is a market for these things.

Perhaps your Income Approach is telling you something relative to your market approach.
WHat does your mentor say?

 

[Stan Carman]

Perhaps your Income Approach is telling you something relative to your market approach.
WHat does your mentor say?

My income approach is telling me a differnt story than my market approach--This is the central issue.

 

[PropertyEconomics]

My income approach is telling me a differnt story than my market approach--This is the central issue.

Yes it is and IM trying to get you to think why that may be.

 

[Wayne Tomlinson]

How solid is your income and expense information?

Sometimes it is not what the IRS was told. At least some of those are treated like an all cash business, where all the cash does not get into the report.

There should be a rule of thumb on those which correlates the quarts of oil consumed to gross income, but I don' t remember any more.

I did a new one to be built one time. I googled oil change facilities,and got names of several companies. I called, got several brochures and talked to a couple of compamuy representatives who helped a lot.

Start with the brand on the facility.

Wayne Tomlinson

 

[PropertyEconomics]

What does your supervising appraiser say? I see you have never answered that question.

 

[Stan Carman]

He is sitting right beside me. We have the same questions. It is not a value in use in that you could find alternate uses. Why do you want to know that?