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Condo Horse Boarding Facility

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Ken B

Thread Starter
Elite Member
Joined
Feb 18, 2004
Professional Status
Certified General Appraiser
State
Florida
Appraising a condominiumized horse boarding facility. Less than 10% of stalls sold, about 10% of the stalls being held for business purposes, about 1/3 leased, remainder (almost 50%) vacant. Bank wants value on unsold units. Property about 2 years old, no sales in past 1.5 years. Operation is similar to a condo-hotel set up. (Purchased units can only be leased through the operating business' rental pool, operating business has first right of refusal type of restrictions on resales, large condo fee covering daily care of stalls and horses and use of facilities.)

Any suggestions? Appears to be extremely limited ownership demand, nearly impossible to forecast absorption with any credibility. (Doing it as subcontract work for a CG.)
 

Ray Miller

Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Appraising a condominiumized horse boarding facility. Less than 10% of stalls sold, about 10% of the stalls being held for business purposes, about 1/3 leased, remainder (almost 50%) vacant. Bank wants value on unsold units. Property about 2 years old, no sales in past 1.5 years. Operation is similar to a condo-hotel set up. (Purchased units can only be leased through the operating business' rental pool, operating business has first right of refusal type of restrictions on resales, large condo fee covering daily care of stalls and horses and use of facilities.)

Any suggestions? Appears to be extremely limited ownership demand, nearly impossible to forecast absorption with any credibility. (Doing it as subcontract work for a CG.)


How many stall????


This type of set up has been tried many many many times. Most of the time over the years I have been called to either turn them around or get them ready for a Bankrupcy Sale. I have never been able to turn one around again for the many reason of herding cats or appraisers.

This type of barn will has not worked in the Equine Industry for many reasons.

Just off the top of my head the HBU would be some sort of storage building depending on lay out. Or a commercial boarding barn owned by one person.
 

PL1957

Senior Member
Joined
Jul 19, 2004
Professional Status
Certified General Appraiser
State
Illinois
Appraising a condominiumized horse boarding facility. Less than 10% of stalls sold, about 10% of the stalls being held for business purposes, about 1/3 leased, remainder (almost 50%) vacant. Bank wants value on unsold units. Property about 2 years old, no sales in past 1.5 years. Operation is similar to a condo-hotel set up. (Purchased units can only be leased through the operating business' rental pool, operating business has first right of refusal type of restrictions on resales, large condo fee covering daily care of stalls and horses and use of facilities.)

Any suggestions? Appears to be extremely limited ownership demand, nearly impossible to forecast absorption with any credibility. (Doing it as subcontract work for a CG.)
Front page article in yesterday's WSJ about the tanking horse market in FL
 

Ken B

Thread Starter
Elite Member
Joined
Feb 18, 2004
Professional Status
Certified General Appraiser
State
Florida
There are 5 stables with 100 stalls total plus separate office and apartment buildings for groomers. The facility is very well maintained with plenty of paddocks and some nice training rings, but it's not Thoroughbred training facility nice.
 

farmguy

Member
Joined
Jun 27, 2007
Professional Status
Banking/Mortgage Industry
State
Texas
Thats a bunch of stalls. Within 50 miles of Houston, in concentrated suburban settings, I know of several 25 to 50 stall barns that do boarding, teach kid lessons, etc. A few sales come to mind that were under good management, selling with little if any obsolescence. Have one sale of +100 stall racing set up in rural area. Recreational part of state, hills, trees, creeks, etc. The sale had a lot of improvments to deal with but it appeared the stables added about 30% of physically depreciated value, too many stalls and too remote. Very nice place however, concrete block stables, shake roof, 10,000 foot house, waterfall, pool, two care taker houses, two tracks, three covered round pens, 660 acres with year round creeks on two sides.

Never seen the condo approach in this area. Most horse deals that appear to cover operating costs, with some left over, are really just decent interim uses till you plant houses on the land.
 

Ken B

Thread Starter
Elite Member
Joined
Feb 18, 2004
Professional Status
Certified General Appraiser
State
Florida
Thats a bunch of stalls. Never seen the condo approach in this area. Most horse deals that appear to cover operating costs, with some left over, are really just decent interim uses till you plant houses on the land.

Lots of horse manure at the western boundaries of the suburban market here. Someone else in the office is appraising a 600-stall facility (at least it isn't a condo). And let's not even talk about Wellington, which is just north of my property but in the same county, where monthly board runs $2,200/month (that's not a typo). Monthly board at my property is ONLY $1,350.

Can't plant houses...the land is dedicated for preservation/ag reserve.
 

Ray Miller

Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Lots of horse manure at the western boundaries of the suburban market here. Someone else in the office is appraising a 600-stall facility (at least it isn't a condo). And let's not even talk about Wellington, which is just north of my property but in the same county, where monthly board runs $2,200/month (that's not a typo). Monthly board at my property is ONLY $1,350.

Can't plant houses...the land is dedicated for preservation/ag reserve.


$1350 is on the light side, $2200 is more like it if you are getting a return of the investment and a return on the investment. Plus paying all related cost of operation like any business.

That why horses use to be called the "Sport of Kings" and hay burners. They are Knock kneed, splay foot, pig eyed, roman nosed, pigon toed, cow hock, sway back, pinned eared, broom tail cayuses.
 
Joined
Oct 12, 2006
Professional Status
Certified Residential Appraiser
State
Michigan
$1350 is on the light side, $2200 is more like it if you are getting a return of the investment and a return on the investment. Plus paying all related cost of operation like any business.

That why horses use to be called the "Sport of Kings" and hay burners. They are Knock kneed, splay foot, pig eyed, roman nosed, pigon toed, cow hock, sway back, pinned eared, broom tail cayuses.

Hey there now...don't go making fun of those with Roman noses...which we can't figure how our Arabian/Walker obtained.

Anyhow, I've just come up with a conclusion...that us "boarders" are like lenders...and the horse facilities are like appraisers. We (the boarders aka lenders) want the best services for the lowest price!

The smaller private barns (who keep their own horses and board on the side for $$) seem to do okay charging less. But to have a full equine facility, definitely $200-$800 (market indoor board here) wouldn't be enough.

Great concept, but they don't work. Nearby, there was a very nice Horse-minium complete with private clubhouse (for the barn only), but to my knowledge they split it off from the development and sold it to a local horse trainer.
 

JWGen

Freshman Member
Joined
May 23, 2006
Professional Status
Certified General Appraiser
State
Florida
Sounds like Equus but if not you'll find some comps there. Let me know if you need more identification.
 

farmguy

Member
Joined
Jun 27, 2007
Professional Status
Banking/Mortgage Industry
State
Texas
It blows me away to hear those kind of numbers for stall rental. We always hear how Texas is cheap compared to other parts of the country, with regard to housing. I guess it goes for horses as well. I don't know that I could find a place charging that much. Most pretty nice places charge $400 to $600 for stall. If it is just a stall with a roof (no body checking water, turning out, etc.) they are much cheaper. I'm sure there are some high end facilities that cater to the crowd without a saddle horn right in town that would charge more, but once you get a ways out of town that would not be the case.
 
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