What needed answering?
Vacancy and a gap between book value and market value left the owner with a difficult question: what was the campus worth, and could another use materially improve that position?
Compare campus transactions and alternative uses.
The analysis assembled national campus transaction evidence and market attributes, then examined the subject buildings and alternative uses. The work compared a statistical valuation approach with an independently developed residual value approach.
Examine the range of values.
Conventional office, multifamily and industrial pathways were tested against market inputs. Scenario analysis examined sale values across market inputs and redevelopment assumptions.
What changed?
A different use changed the valuation question.
The study identified destination tournament sports infrastructure as a pathway that could alter the land value equation. The site's existing infrastructure was part of that opportunity, changing the comparison with a greenfield development.
The engagement delivered a valuation framework and a redevelopment hypothesis for the owner to evaluate.
Working through a similar decision?
Discuss your objectives