A client has asked us to conduct an as completed appraisal on a large mixed use resort development to include hotel, golf, residential, etc etc. off shore.
I wanted to see if anyone out there has tackled this form of appraisal. It is an off shore development and there is a local land appraiser conducting the appraisal on the land based on local comp sales. For our portion of the as completed appraisal of the resort, this is our approach:
Insofar as the master resort appraisal, the land value would be an input to our process where we would prepare As Completed Appraisals on each component via income approach ; Hotel ,Golf, residential, etc. Thus arriving at an Overall value for the resort at a point in time assuming a level of completion within say a 7 to 10 year period. Backing out development costs to get to that level of completion would in theory leave a residual land value to be reconciled with the local appraiser's Input land value.
Phasing and residential absorption becomes critical, but any thoughts on the above approach?
I wanted to see if anyone out there has tackled this form of appraisal. It is an off shore development and there is a local land appraiser conducting the appraisal on the land based on local comp sales. For our portion of the as completed appraisal of the resort, this is our approach:
Insofar as the master resort appraisal, the land value would be an input to our process where we would prepare As Completed Appraisals on each component via income approach ; Hotel ,Golf, residential, etc. Thus arriving at an Overall value for the resort at a point in time assuming a level of completion within say a 7 to 10 year period. Backing out development costs to get to that level of completion would in theory leave a residual land value to be reconciled with the local appraiser's Input land value.
Phasing and residential absorption becomes critical, but any thoughts on the above approach?
