Evaluation Of Partial Interest In Commercial Properties?

[rmbirch]

Any good references? Court cases? What types of things can you discount for? Things to stay away from? Thanks! RMB

 

[Gobears81]

Can you provide a little more information? Partial interests related to ownership? Or are you referring to partial interests in the context of leased fee/ leasehold?

 

[Terrel L. Shields]

The IRS frowns on large discounting & divorce generally gets no discount. The more partners the higher the discount. I would back it up with a similar transaction.

 

[Pittsburgh Pete]

Any good references? Court cases? What types of things can you discount for? Things to stay away from? Thanks! RMB

Limited liquidity, lack of control, ...............

 

[Peter LeQuire]

Lum Library ought to have helpful information on partial interest valuation.

 

[Gobears81]

I've always taken care of the value of the whole, and passed on the partial interest valuation to a CPA, but maybe that's just me.

 

[Peter LeQuire]

This is an older article published in The Appraisal Journal: “Valuation of Fractional Interests in Real Estate Limited Partnerships - Another Approach” published in the Appraisal Journal, a quarterly publication of the Appraisal Institute, April, 1992.)

 

[DWiley]

The AI has a book on the subject as well.

 

[Michigan CG]

The data is very hard to come by. I give folks an appraisal of the property and they can figure the rest out for themselves. I have never had a complaint.

 

[Terrel L. Shields]

This is what business appraisers do. So outside of mineral interests where there is no discount to deal with, I don't value LLC discounts, feuding partners, etc.