Valuation is a core function that underpins real property transactions. Many businesses see valuation as an unwanted and unnecessary expense. This is not always the case and if used effectively they can prove to add an arsenal of information and achieve business successes.
I was requested to appraise a hospital property -a special purpose property. A special-use property is defined as a building with special construction materials, unique physical design or arrangement that limits its utility to the use for which it was built. They are typically single-purpose buildings which are adaptable to only one particular process, use or even one particular company.
The purpose of my valuation is to render an opinion of market value of the property. I’m quite bit excited to do the job yet anxious of its complexity. It is not just a hospital, it is an institution built for quite a long time; its name was synonymous to a place of medical care in the region.
The improvements suitability of use and capacity has been affected by advances in technology, resulting in some older hospital facilities becoming obsolete. But in analyzing the property, it is important to take it as a whole. The property in its entirety has many potential uses. Its strength lies in its location, since it is situated along the main road of the heart of the city.
Special use properties are truly unique, they require detailed knowledge of their exclusive characteristics, and the additional skill required in their valuation process become a specialty service area.
After a month, I just read in the news that the hospital owner has just inked a joint venture agreement with a big mall company for a construction of a commercial and hospital facilities.
Truly, appraisal can be an arsenal towards business transaction success. With this assignment, I learned that appraisal of special purpose properties makes our profession more interesting. Appraisers should never stop learning.