Southland Valuation Inc. provides commercial real estate appraisals and consultations with a focus on the Southern California region including Los Angeles, Orange, Riverside, San Bernardino, San Diego, Ventura, Kern, San Luis Obispo, and San Diego counties. We also offer reviews and consultations throughout California and several other states. As an appraisal firm specializing in commercial (retail, industrial, office, hospitality, gas stations) and multi-family residential properties, we recognize the time and effort required for in-depth research of specific product types and the dynamics impacting neighborhood and boutique markets. To understand the nuances affecting the subject property we examine regional, city and neighborhood market data coupled with interviews of real estate brokers and a direct look at comparable properties. This is especially important in the current market environment as more due diligence in the appraisal process is required. We service a broad range of property types and appraisal expertise including:.
► Market Value Appraisals
► Leased Fee & Leasehold Analysis
► Prospective Value Analysis
► Market Feasibility Studies
► Mark to Market Valuation
► Date of Death Analysis (Retrospective Value)
► Fractional Interest Analysis
Fees
Our fees vary from $1,500 to $7,500, depending on the report type and complexity of the property.
Preliminary Value or Value Check
Due to the complexities of commercial properties, we are not able to provide “preliminary value” or “value check”; however, for a nominal fee, we can provide consulting services that will give you an understanding of property values.
Turnaround Time
The typical time required to complete a commercial appraisal is 2 to 3 weeks. Shorter turnaround times can be accommodated in time-sensitive situations.
Importance of appraisal as function of due diligence – In these uncertain economic times, it is our deepest belief that appraisals should be just one part of the party’s due diligence for every transaction and that the client determines if the appraiser’s qualifications meet the needs of their property. There are countless examples of problems investors face relying solely on a single or unqualified entity to protect their interest. A recent example is as follows:
In a recent appraisal, a foreign investor paid over $10 million, all cash, for a retail project in Southern California. Immediately after the acquisition, Southland Valuation was hired by a regional bank to appraise the property for financing purposes. Utilizing market data, supported by interviews with brokers familiar with the property, the market value was 30% less than the purchase price.
Additional due diligence prior to the acquisition would have greatly benefited the foreign investor. Our job is to understand the market dynamics in order to reflect the actual market value, without consideration to the advocated purchase/contract price or loan.
Research
Southland Valuation takes great pride in quantitative and qualitative research. Critical appraisal skills require sound market data research and surveys of market participants. Some of our resources are, but not limited to the following:
► California Retail Survey
► CoStar
► Compstak
► Commerical Real Estate Company
► First American Title
► Loopnet
► NDCdata
► Korpacz Investor Survey (Published by PriceWaterCooper)
► IREM Expenses for Apartments, Shopping Center and Offices
► Marshall Valuation Cost Guide
The preceding resources are utilized as a basis of our analysis. The resulting data is verified with the respective brokers/buyers/sellers. This is probably the most important step of the appraisal process and is often overlooked by less experienced appraisers. Additional steps include reviewing market research reports and surveying brokers/market participants to better understand the subject property’s market. Southland Valuation’s market data research is unparalleled in the appraisal industry. Before engaging any appraiser, it is advised that the client determines the extent of research performed by the company.
Certified General Appraiser & MAI
Real estate licensing has evolved since the S&L crisis of the early 1990s. It has helped our profession with increased educational requirements; however, there is an unforeseen detriment to the general public as not all appraisers with similar “Certified General Appraiser” licenses have the same qualifications or diligence.
Certified General Appraiser is permitted to provide all real estate appraisal services without regard to real property type, or complexity provided that they have the experience required for any specific assignment they undertake, or the requisite knowledge to perform the assignment competently, or associate themselves with another appraiser who has the necessary experience for a particular assignment.
Thomas H. Lim, Southland Valuation’s chief appraiser, is a designated MAI, Member of the Appraisal Institute. The MAI stands for Member of the Appraisal Institute, which is the highest achievement that is available to an appraiser. The requirements to become an MAI essentially double the requirements set forth for a certified general appraiser. Bear in mind that an MAI Appraiser is also a Certified General Appraiser capable of doing any assignments in the appraisal spectrum.