CONCRETE FORM MAKING FACILITIES -

[Tom Hildebrandt]

Help is needed in obtaining sales and lease information for concrete manufacturing facilities.

The subject manufactures concrete pavers (such as would be used in patios and driveways).

My preliminary data is sketchy, discussions with local market participants indicates that most of the improvements (offices, storage buildings) have little value (makes sense since this is a very specific use facility) and that the only real value is in the land. However, there is a very healthy long term lease, way above what I would opine to be the fee value of the land.

I have no data to compare leases and one market participant said that sometimes the only buyer is the holder of the longterm lease.

Comp assistance and advice is welcome. Depending on quality of data, some compensation is possible.

Regards

Tom Hildebrandt GAA

 

[xmrdfghap]

Closest thing I have done was an indian drum factory, and that was mostly sheds for guys to use chain saws, a rawhide storage, assembly area and small showroom.....but, as I contemplate the problem given the information you have provided, I think I would tend to approach it from the present value of the current lease, minus the present value of a typical lease, plus the present value of that type of land, minus cost of removal of existing buildings and site prep.........Except as factors to determine a fair lease, I do not see how comparable properties with similar utility could be used. As with most unique usage properties, the cost approach appears to be the most valid, with income approach being right up there. Market data will not be real useful.

Now that I think about it, Indian smoke shops are similar.....the lease amount has nothing to do with the value of the premises. It has everything to do with the income generated. The buildings are often portable buildings on graveled vacant land with a power pole.....no development at all, yet the leases often run several thousand dollars a month.....based on cigarette sales.

Wish I could be of more help, but sorry...thats about it.