value of liquor license

[Pittsburgh Pete]

thank you lucky stars you don't have to deal with PA's archaic liquor control policies. In our little backwater, you can't buy more than two six packs at a bar--cases have to be purchased at a beer distributor. A violation of my Constitutional rights?

Haven't had to deal with one in a while but once in an eminent domain case, the liquor license was a "free agent," meaning it could be moved anywhere, even places where new licenses were restricted. The price of that bad boy was astronomical.

 

[hastalavista]

thank you lucky stars you don't have to deal with PA's archaic liquor control policies. In our little backwater, you can't buy more than two six packs at a bar--cases have to be purchased at a beer distributor. A violation of my Constitutional rights?

Good to know.
If I ever visit you, I'll BYOB!

 

[Pittsburgh Pete]

Good to know.
If I ever visit you, I'll BYOB!

If you need a "B" you gotta go to a State Liquor Store. Probably why we are such a sober crowd in these parts.

 

[Michigan CG]

thank you lucky stars you don't have to deal with PA's archaic liquor control policies. In our little backwater, you can't buy more than two six packs at a bar--cases have to be purchased at a beer distributor. A violation of my Constitutional rights?.....

Back in the 1980's my parents moved to PA. I went to visit them and went to a large grocery store. I went up and down every isle looking for beer. Finally there was a gal there who worked at the store and I said to her "Where do y'all keep the beer?"

She looked at me like I was an idiot and asked where I was from.

 

[sputnam]

I can't figure out any way in which a liquor license could be real property. If you are appraising the market value of the real estate, then it probably shouldn't be included in the valuation. If you are appraising a going concern, then sure...but if you have apples to apples comparables, it's not a separate issue. As for method, how about capitalizing the income that's attributable to having a liquor license.

On the other side of it, I guess the lender can include or exclude any part of a property they want to. Underwriting/lending decisions are beyond my scope of work.

 

[CANative]

If you are appraising a going concern, then sure...but if you have apples to apples comparables, it's not a separate issue. As for method, how about capitalizing the income that's attributable to having a liquor license.

I don't see how capitalizing the "income attributable" would be appropriate if appraising the going concern.

 

[Terrel L. Shields]

I remember State Stores in W. VA....so we drove over the line to Ohio

 

[Howard Klahr]

I can't figure out any way in which a liquor license could be real property.

How about in the situation where the license is not transferable to another location but is attached to the specific property? Furthermore, many specialized properties are valued on a going concern basis. Why would this be different?

 

[CANative]

Wouldn't a nightclubs liquor license be like a hotels FF&E, or maybe like it's management (flag)?

 

[PropertyEconomics]

In my market the licenses are limited by the state, sales must be approved by the state, and they are chattel, that being said, I have seen liquor licenses sell from $50,000 to $850,000 depending on the community and county they are in.

When I have appraised them I have found sales of similar licenses and done a direct comparison and included them as an "intangible" within the appraisal report, recognizing their presence was necessary to achieve the value of the bar or restaurant, assuming that was the subjects highest and best use as identified by market analysis and the sales were of similar properties.