15 December 2017

Happy Holidays, from Valbridge

Happy Holidays, from ValbridgeFrom the 675 women and men of Valbridge Property Advisors, throughout 70 offices coast to coast, we would like to wish you a very happy holiday season.

7 December 2017

City Summit | Annual Conference of the National League of Cities

City Summit | Annual Conference of the National League of CitiesValbridge recently attended the National League of Cities, City Summit conference in Charlotte, North Carolina in mid-November. Local leaders had the opportunity to come together and learn from experts and each other, with NLC University seminars centered on building technical and leadership skills. Also featured were Host City Mobile workshops around Charlotte that showcased real-world collaborative solutions to issues facing local government. There were an abundance of sessions spanning many topics relevant to conference attendees and their respective communities.

During this annual conference, local leaders worked with experts on topics including economic development, climate change, transportation and leadership development, aiding them with tools and resources designed to help in planning for the future of their cities and towns. Mayors, council members, and city staff also learned from hands-on workshops, various networking events with fellow city leaders and mobile tours of innovative projects completed by the City of Charlotte.

Projects completed by the City of Charlotte include the Charlotte-Mecklenburg Police Department’s Real-Time Crime Center featuring innovative technology solutions like automated license plate readers and electronic monitoring. Guests on this tour had the opportunity to meet with law enforcement officials and discuss the use of crime analysis and criminal intelligence as a factor in crime reduction. Another tour was on the LYNX Blue Line Extension (BLE) light rail project. This project adds an additional 9.3 miles to the existing 9.6-mile Blue Line light rail system. This system has an average of more than 16,000 daily riders, proving the need for development on the BLE. Another notable project in the City of Charlotte is the Goodwill Opportunity Campus. This is a state-of-the-art facility in west Charlotte that provides resources and opportunities for individuals facing employment barriers. The City of Charlotte has partnered with Goodwill on Project PIECE (Partnership for Inclusive Employment and Career Excellence), a job training and opportunity effort and the Safe Home Program, which assists senior citizens, handicapped citizens, and low-income families to improve their homes in the interest of health and safety.

Other projects completed by the City of Charlotte include a renovation of an enclosed mall into a mixed-use center with condos, restaurants, and offices, totaling almost one million square feet; a creative neighborhood improvement model that provides financial and technical support to create sustainable public and private partnerships, build neighborhood capacity, and support quality of life in low to moderate income neighborhoods; and the Charlotte Mecklenburg Storm Water Services (CMSWS). CMSWS has implemented some of the most innovative quality management programs in North Carolina and has been awarded national recognition for these efforts.

Additional activities at the conference included an exposition hall with over 250 vendors on hand introducing new products, services and programs. Networking events provided the opportunity to meet and build relationships with other local leaders to exchange ideas. Constituency group events were open to all attendees and provided a great opportunity to find a niche within NLC and meet others with common backgrounds and interests. Member council meetings were also open to all attendees. These meetings brought together representatives from similar communities to share ideas about solutions to issues specific to their communities. Member councils included Small Cities Council, Large City Council, First Tier Suburbs Council, University Communities Council, and Military Communities Council.

NLC, in conjunction with ULI offered a workshop in city redevelopment at the conference. Given a set of development criteria- open space, retail, affordable housing, parking, and requirements for returns to the city and investors, a plan of development was presented. The photo attached is the model plan that VPA’s Gary DeClark, Chicago Metro | Senior Managing Director and his group prepared during the workshop.

29 November 2017

NAEPC Advanced Estate Planning Conference

NAEPC Advanced Estate Planning ConferenceValbridge Property Advisors attended the 54th annual NAEPC Advanced Estate Planning Strategies Conference in New Orleans, Louisiana in mid-November. VPA was proud to participate as an exhibitor at the conference to help promote estate planning collaboration and education.

The three-day estate planning conference included one full day of pre-conference sessions for council leadership including board members, officers, and staff of all NAEPC’s affiliated local councils. The development session focused around the topic of communication across generations and the impact of family philanthropy.

The remaining two days of the conference held sessions on the multiple different aspects of estate planning including life insurance and product selection, modern use of partnerships, marketing decisions in estate planning scenarios, advanced planning applications, minimizing family conflicts in estate planning, current developments and hot topics, asset protections, and more.

Hosting the exhibit booth were Rick Armalvage, CEO, Valbridge Property Advisors, and Gerald A. Teel, Senior Managing Director, Valbridge Property Advisors | Houston. While at the event, VPA held a daily drawing for gift cards. The winners were Joanna Averett, Professional Fiduciary, Redlands CA, and Julie Buschman, CAP, AEP, Senior Vice President, Northern Trust, Dallas Texas. Valbridge would like to thank everyone who stopped by the booth to visit and be a part of our conversation.

VPA offers Estate Planning Council/members, or any other clients that need valuations for real estate, partial interest valuations, business valuations, or entity valuations, consistent coverage throughout the continental United States. VPA believes that it starts with a single point of contact to manage the process, and continues through the consistency of valuation reporting. VPA emphasis on the importance of one point of contact, a single brand, a consistent template, and national scale.

VPA believes that current valuations for estate planning are important for future plans, including sales, gifts to heirs, and planning for estate taxes. Valuations are also important for real estate and business because they typically represent the most valuable assets in an estate. Valuing these assets is essential in developing a solid tax plan strategy. Updating valuations periodically ensures the plan chosen is still working. Increases in value over time may necessitate adjustments, as estate planning is a continuing process. Using a qualified appraiser for these valuations ensures methodologies adhere to Internal Revenue Rulings and Procedures.

VPA appreciates the opportunity to participate in NAPEC and showcase our expertise in valuation for estate planning across the United States.

16 November 2017

Industrial Appraisal in Southern California Involving 1.6 Million Square Feet

Industrial Appraisal in Southern California Involving 1.6 Million Square FeetValbridge Property Advisors, Orange County, recently completed an industrial appraisal in Southern California involving 1.6 million square feet of aircraft manufacturing space with 75 foot ceilings, 60 foot doors, cranes, access to an airport runway, and more.

23 October 2017

NMHC Student Housing Conference

NMHC Student Housing ConferenceValbridge Property Advisors attended the NMHC Student Housing Conference in Tampa, Florida in September. This event brings together leaders from all parts of the sector including owners, developers, investors, lenders, brokers, university partners, and more, to discuss the beginning of another school year and share the most up-to-date industry information including lease-up numbers, new developments, millennial marketing strategies, technological innovations, new entrants, and other valuable information designed to help improve negotiating skills and bottom line results. The conference creates an opportunity for networking and one-on-one between industry professionals.

The keynote speaker for the conference was Coach Ken Carter, Author and Founder & Chairman of the Coach Ken Carter Foundation. He spoke on the aspects of leadership, hard work, and bringing value to the workplace. Some of Carter’s prolific quotes from the conference include, You don't get paid by the hour, but by the value you bring to the hour”, “Working hard is a skill” and “Lead from the front to inspire”.

Among the global economic uncertainty, investors are pursuing business in the U.S. student housing market due to continued enrollment growth at universities and colleges and the sector’s consistent performance on delivering attractive, risk-adjusted returns. American Campus Communities CEO Bill Bayless spoke on the topic, stating, “Investors are seeing the consistent performance of student housing from a revenue and NOI perspective.” It was noted that the capital today is different than it was just five years ago.

Many student housing executives claim that the bulk of their partners are people they were not working with just two years ago, and that foreign institutional investors are playing a prominent role in the market, making up 51 percent of the capital in the market. They are planning to make up an even larger percent by doubling or even tripling their investments in the future. J. Wesley Rogers, president and CEO of Landmark said, “The deals are getting bigger, the companies are getting bigger, and the checks are getting bigger.” Executives say they are consistently seeing more development deals in the $75 million to $100 million range.

For the first time at the NMHC Student Housing Conference, there was a focus group of 16 undergraduate and graduate students, including domestic and international. The students shared their thoughts and opinions on their personal preferences when searching for a place to rent for the school year. Proximity to campus was a top priority for the students, preferring a short commute as well as an emphasis on the level of safety that comes with living near campus. Other factors included a strong online presence by the community that makes it easier for students to narrow their search with photos and online reviews, and amenities like club houses, fitness centers, study areas, and virtually fail-proof internet connectivity.

Construction timelines were a topic of interest at the conference, due to the costly consequence for student housing firms if the project isn’t complete by the start of a new academic year. Student housing projects are getting much more complicated thanks to factors like higher-density developments, weather, and labor. These all adds risk to the project timeline. Brain Dinerstein, president of The Dinerstein Companies, spoke on the issue, saying, “The challenge is construction. Costs are a mess. There are a hundred reasons why. Start with weather. Labor. Add in immigration. The fact that we don’t have as many mature, experienced people on staff. The equity needs to be aware of that. Everything takes longer.” Many student housing executives are building more cushion in to their construction schedules and moving completion dates back while also trying to work with the calendar to take advantage of school breaks and tweaking occupancy strategies to minimize risk, such as moving residents in while their units are being upgraded.

During a session focused on driving net operating income (NOI), student housing managers shared their strategies. For cost improvements and controls, they are renegotiating contracts for better pricing, looking carefully at utility cost, and some are even moving away form all-inclusive utility as a better way to control operating costs. Julie Bonnin, COO of Asset Campus Housing, commented on the advantage of hiring a third-party vendor for the task of managing utility billing, saying that an outside utility management firm has offered piece of mind. “Different states have different requirements, so if you get in trouble, it’s a nightmare. There have been massive lawsuits in a number of states. And it’s just not worth it.” Contrary to this, some firms still handle the utility billing on their own due to cutting expenses and having the extra cost for covering the service go to them directly.

Other important topics that were discussed include rebranding and how it drives performance improvements, cybersecurity concerns and how to stay ahead of the curve. Another conference highlight included a session on the transaction market  featuring shark tank-style presentations, where student housing deals were fast pitched to a panel of investors in hopes of nailing down an important piece of their capital stacks.

Valbridge Property Advisors appreciated the opportunity to attend the NMHC Student Housing Conference. Events like these are one of the many ways Valbridge works to stay well-informed of various industry trends and perceptions.

10 October 2017

National Investment Center (NIC) Fall Conference Re-Cap

National Investment Center (NIC) Fall Conference Re-CapValbridge Property Advisors recently attended the 2017 NIC Fall Conference in Chicago, Illinois. In attendance for Valbridge was Rob Klein, National Director Health Care, Gerald A. Teel, Senior Marketing Director- Houston, and Karl P. Finkelstein, Vice President of Marketing and Business Development.

The conference consisted of two educational sessions, special programming, and three days of networking time and thought-provoking conversations. The conference kicked off with a pre-event boot camp for around 100 industry newcomers. The boot camp walked participants through a case study of whether or not to invest in, or develop a particular property.

Keynote speakers for a session titled, “The Impact of the Trump Administration’s Policies on Economic Growth: A Debate,” included U.S. House Speaker Newt Gingrich and former Treasury Secretary Lawrence Summers. They spoke on the future of healthcare and the fact that 30-40% of retirees have enough assets for care, 25% are right at the margin, and the other 35-40% will have to rely solely on the government. They also discussed their opposing opinions on the current political environment, Gingrich stating that he is optimistic that tax reform will be passed, while Summers does not foresee major reforms.

Educational sessions were held examining trends shaping the senior housing and skilled nursing industry, whether to re-develop a property, and how to scale up operations. Topics included an analysis on properties that lease-up quickly versus properties that do not, assessing infrastructure and utilizing market data to grow wisely, and how to cultivate and maintain a high quality of workforce in today’s changing environment.

NIC Talks, the popular and provoking speaker series, returned to the conference for a third consecutive year. Highlights from this session included “Tell Me Something I Don’t Know About Aging,” touching on issues such as the longevity bonus, ageism, and environments that promote a long and happy life. This session was led by Kim Campbell, wife of singer Glen Campbell who recently died of Alzheimer’s disease. She shared moving insights on the difficult role of the caregiver.

“Making the Case for Investments in Operations” was a session focused on the way investors and operators can come together and make a difference in property performance and employee/customer satisfaction. Michael Schonbrun, Balfour Senior Living, noted, “The industry needs to do a better job of training.”

During the session titled, “Innovations in Seniors Housing Around the Globe,” a conversation was led on the unique developments in senior housing. Other sessions that were focused on senior living trends, the future of aging, and the latest findings on Alzheimer’s disease included “Deep Dive,” “The Upsides of Aging,” and “The Future Demand for Alzheimer’s Care: What Current Research Reveals.” Speakers included Dan Hutson, Dan Buettner, Paul Irving, Jack Callison, Phil Anderson, Ashton Applewhite, Heidi Brunet, Randy Bufford, and more.

Wrapping up the conference were four thought leaders who presented innovative approaches to technology and how smart buildings and artificial intelligence will drastically change the aging process in the future. NIC’s founder, former president and CEO of 27 years, and current strategic advisor, Bob Kramer, closed the conference with a challenge to the industry, “Remember in our field, we will be the disruptors or we will be disrupted.”

3 October 2017

Valbridge- ULI Capital Markets Conference Re-Cap

Valbridge- ULI Capital Markets Conference Re-CapValbridge Property Advisors recently sponsored the ninth annual ULI Capital Markets Conference held at Kiawah Island in South Carolina on September 5-6, 2017. ULI is an organization dedicated to developing and maintaining leadership that creates responsible use of land to result in thriving communities worldwide. ULI’s goal and mission is to improve the quality of the places people live. ULI believes this starts with the open and honest sharing of practical experience and pragmatic solutions. This is done through their various leadership and assistance programs and annual conferences.

The 2017 conference included several topics including State of the Market, Senior Housing Trends, Industrial Insights, Repositioning Retail, and a Fireside Chat with Charles P. Buddy Darby III, one of the premier resort developers in the country. Darby has been in the real estate development business for over 30 years. He oversaw the development, sales, marketing, planning, and operations of the award-winning resort community that is Kiawah Island.

The opening keynote for the conference began with Mark Vitner, Managing Director & Senior Economist for Wells Fargo, speaking on the State of the Market for CRE in the Southeast and what the outlook is for the remainder of 2017 and beyond. Vitner shared insight on housing markets, commercial real estate, regional economies, and inflation.

Greg Newman from Bank of the Ozarks was part of the panel of speakers who discussed seizing opportunities in a tight market with creative solutions based on market knowledge and essential real estate fundamentals. Highlighted in this panel was the subject of lenders continuing to tighten reins, causing construction financing to dry up and create permanent debt being subjected to lower leverage and stricter underwriting.

Robert Morgan from Greystar participated in a panel discussion lending perspective as a developer, financer, and operator on senior population expansion and the increased demand happening in senior housing trends. Senior housing is a major growth area in commercial real estate. Longer life expectancy in the U.S. means there will be an increase in the number of senior citizens required to move into a senior living facility.

Sarah Quinlan, Senior Vice President of MasterCard and expert analyst on consumer spending patterns, delivered a speech on global macro spending trends based on real consumer data for the economy and the real estate industry. Sarah also participated on a panel at the conference talking about reposition retail. This topic was necessary for discussion due to the large amounts of department store closes due to the “Amazon effect”. The panel gave insight to the world of retail as a whole and how it will continue to evolve and the importance of gaining and maintaining a competitive edge in the industry.

Valbridge was proud to sponsor the ULI Capital Markets conference. Events like these are one of the many ways Valbridge continuously works to stay abreast of industry trends, providing the highest level of insight and appraisal expertise to our clients.

28 September 2017

Restaurant Appraisals and Why You Need an Expert When Buying or Selling

Restaurant Appraisals and Why You Need an Expert When Buying or SellingAccording to recent State of the Industry numbers from the National Restaurant Association, restaurants in 2017 will generate $799 billion dollars in sales with more than 1 million restaurant locations nationwide. The restaurant industry is big business in the U.S. and with new restaurants going up every day, there is growing demand for valuation in this industry.

Restaurant appraisal goes beyond standard commercial real estate appraising requiring a certain level of art combined with the science of financial data. Restaurant appraisals allow a buyer and a seller to work together to determine the value of a restaurant and reach a selling price. Appraising a restaurant involves assessing its physical assets such as the building, land, and in some cases, equipment and furniture, and examining the financial performance of the establishment such as the recent cash flow, loans, balance sheet, insurance policies, and long-term leases. In addition to tangible assets, there are other factors involved in determining value like location, employee base and ease of operation. A restaurant determined to be “turn-key” is guaranteed to command a higher sales price than one that is poorly organized or in need of an overhaul. An opinion of the market value of this involves developing total assets of the business (MVTAB).

In many instances, buyers and sellers are interested in the value of the real property, which may involve a long-term triple net lease, an owner-operated property, or a tenant with only a short term remaining on the lease. Each of these scenarios requires different data sets and expertise in understanding the market. For instance, does the tenant have 200 locations and a successful 20-year history, or is this their first venture into fast-food. This will measurably impact the value of the real property, and your consultant needs to understand these market conditions.

Another aspect of restaurant appraising is discussing employee agreements. An appraiser must determine if/what employees will be available after the restaurant is sold. This involves checking to see if employees have signed any kind of agreement relating to being a part of the possible sale or not. Restaurants intangibles, such as the name, logo, trademark, licenses, and recipes, must also be examined to determine if the buyer could operate the business without them and decide which ones will transfer with the sale.

An additional important consideration in to valuation of a lease asset is if the corporate franchisor is backing the lease. A lease backed by Yum Brands may produce a completely difficult value than a Taco Bell franchisee with three units. It is imperative the valuation expert understand these variations in lease terms.

Also, the valuation of an owner occupied asset presents a different set of challenges. Is a lender involved? Some lenders require an as-dark (vacant) value, others allow for an assignment condition that considers the possibility the property could be leased. This subtle difference could result in a value variance of as much as 50%. It is important the borrower, lender and valuation expert are all fully on the same page before the assignment begins. It may impact which lender a borrower chooses when seeking financing.

In restaurant valuation, it is extremely important to focus on an income approach “excess earnings approach”, which focuses heavily on the market rent, a real estate capitalization rate, and a business multiple. This method is popular across the industry because of the credible results it produces. It is also important for appraisers to differentiate between restaurants and recognize whether the establishment has a regional or national presence. According to Nation’s Restaurant News, the restaurant industry is seeing a "gold rush" unlike any in the industry’s history from private equity firms and investors looking for the next “big thing” in upstart chains with 20 or fewer locations. This trend indicates the need for expertise in this specialty market.

Valbridge Property Advisor’s newly introduced Specialty Practice Group, Franchise Finance and Single Tenant, now offers restaurant appraisal service for both local and national brands. Valbridge Advisors have expert knowledge that can help the buyer and seller of a restaurant examine all the important and complex details to properly appraise and value restaurants. For more information on the Franchise Finance and Single Tenant Specialty Practice Group visit

23 August 2017

Apartments are Going Up with No Plan of Slowing Down

Apartments are Going Up with No Plan of Slowing DownYardi Matrix and Rent Cafe data show that 2017 will be another record year for apartment construction. The number of units being built is at the highest level since the 1980s. In 2016, 285,000 units were built. With 2017 estimated to top 345,000 units, in one year national apartment construction will have a 21 percent increase.

Three main main factors contribute to the increased demand for apartments: delayed home purchases, aging population, and immigration.

  • Delayed Home  Purchases- Marriage and children are the biggest drivers that influence purchasing a house. In 1960, 44 percent of US households were married couples with children; today it is only 19 percent. With the expectation for this trend to continue, the need for apartments will rise and the amount of houses purchased will likely decrease.
  • Aging Population- People are living longer, and they don’t want to maintain a large house in their latter years. The natural place for this population to turn for housing is apartments. In the northeast, 30 percent of apartment renters are 55 and older.
  • Immigration- Approximately 51 percent of population growth comes from international immigration. Research conducted by the National Apartment Association (NAA) shows that immigrants typically choose to rent and for long periods of time. With border states expecting higher growth, this population increase will affect the positive demand for apartments.

By 2030, the US will need about 4.6 million new apartments to meet demand and keep prices in check, according to the National Multifamily Housing Council and National Apartment Association. To reach that number, about 373,000 new units will be needed each year.

The nation is getting closer to meeting the growing demands from renters. "From an affordability standpoint, things are starting to look better for renters," says Doug Ressler, Yardi Matrix senior analyst. "Rent growth is slowing down, even in the country’s most expensive markets and it doesn't stop at that. With more units on the table, renters may be able to get some discounts and concessions on new leases, including one month of free rent, waived move-in fees, and free gym memberships."

Valbridge has over 675 employees staffing 68 office locations across the United States. Our commercial appraisal service offerings include all types of multifamily housing, including market-rate apartments, senior living buildings and properties, and affordable housing. Whether your need is national or local, our team of appraisal experts has the experience and past performance to professionally and efficiently service your commercial appraisal needs. To learn more about Valbridge Property Advisors’ services or to request an appraisal from an office near you, click here

14 August 2017

Trends that Attract Traveling Millennials

Trends that Attract Traveling MillennialsMillennials have been described as the most educated, conscious, and diverse generation. These characteristics have fueled the creation of new lodging trends. With one third of hotel guests being in their 20s and 30s, being aware of these trends will help companies brand their establishments to target these digital natives.

Incorporate Co-Living

Co-living is a modern, urban lifestyle that revolves around openness and collaboration. This environment attracts purpose-driven millennials. Co-living is when two or more like-minded individuals share the common spaces in a living facility to get a genuine sense of a community. For example, two or more people can reserve a co-living hotel room that allows them to share the bathroom, kitchen, and living area while still having their own sleeping quarters. Airbnb and hostels follow the co-living model by giving sociable entrepreneurs a homelike environment with networking opportunities. It is projected for Airbnb to reach $2.8 billion in revenue for 2017. The hotel industry started seeing a decline in 2016 as a response to new co-living renter companies. Corporate hotel companies will need to integrate co-living options to spark an interest with millennials.

Personalizing Experiences

When millennials stay somewhere for business or vacation, they try to create their own story. Giving this diverse generation a chance to co-create your brand will help reach a wider following for future business. Targeting personalized interests with a survey when they make their reservation will help the hotel supply the accommodations for their unique experience. If a famous food blogger is staying at your hotel, one way to boost your recognition and brand would be to inform the blogger of some local favorites in the area. This will resonate with the blogger who will then feel inclined to share this with others in the industry to influence others to stay at your hotel because of the local insight.

Invest in Them & They will Invest in You

Millennials as a whole have been labeled as a conscientious generation that likes to be able to give back through their spending. Eco-friendly options and socially-responsible views attract this generation to companies that share these values. Millennials will stand up for what they believe in and support companies that are trying to make a difference. Being able to implement ways of making the hotel more sustainable by being conservative with energy and water use will appeal to millennials. There are simple ways to make a big difference; set up recycling bins around the hotel, purchase recycled or green products, allow towels and sheets to be reused if the customer would like, and install appliances that use less water.

Because technology encompasses such a large part of our lives, bloggers and social media personalities have tremendous influence on buying behavior. Being able to target them through the above changes is a great way to increase your millennial customer base. 

12 July 2017

Beginning With the End in Mind

Beginning With the End in MindThe Framework for the Valuation Analysis

By Kenneth Cantrell, MAI

The assumptions related to highest and best use are akin to a hypothesis. Essentially, you’re following the scientific method where you need to test various components against each other. Since the highest and best use lays the foundation for the valuation analysis, differing conclusions can result in dramatically different values.

Read the full article in Right of Way Magazine

9 June 2017

Valbridge Property Advisors’ Robert Saia, MAI, SRA Writes First Book of Its Kind on Appraising Manufactured Home Communities

Valbridge Property Advisors' Robert Saia, MAI, SRA Writes First Book of Its Kind on Appraising Manufactured Home CommunitiesLOS ANGELES, June 01, 2017 (GLOBE NEWSWIRE) -- Robert S. Saia, MAI, a Director at Valbridge Property Advisors, today announced the launch of "Appraising Manufactured Mobile Home Communities and Recreational Vehicle Parks,” the first book of its kind to constructively analyze this subject matter"

A photo accompanying this announcement is available at

Rob is a Senior Appraiser/Director at Valbridge Property Advisors – Los Angeles/Inland Empire, part of the largest independent national appraisal company in the U.S. with 68 offices and 200 MAI-designated appraisers nationwide. Valbridge Property Advisors provides comprehensive commercial real estate valuation and advisory services for corporations, institutions, and private and public clients.

Published by the Appraisal Institute®, this well-researched book defines the complex legal, physical and economic challenges facing owners of mobile home communities and RV parks. It also provides appraisers with a broad overview of this fast-growing segment of real estate which requires a particular level of expertise to understand.

"Nearly 8% of Americans live in manufactured home communities (mobile home and RV parks)," says Rob, "which amounts to 38,000+ mobile home parks and 9,000 to 10,000 RV parks. Once thought of as low-quality housing, this real estate segment is now being built with many upgrades including nice landscaping, sidewalks, pools, saunas, tennis courts, recreational facilities, security features and other amenities that make it comparable to a good-quality, site-built subdivision."

Mr. Saia notes that manufactured homes make up a substantial part of America’s housing and come with a unique set of social, legal and environmental aspects that appraisers need to know about because they differ significantly from typical site-built housing in the U.S. Manufactured homes’ popularity is due, in part, to the enormous cost savings they provide. Saia says it costs approximately $93 per square foot for a site-built home while a typical manufactured home runs about $44 per square foot.

Additionally, RV parks are now offering upgrades, never before seen, as in Disney’s destination park which offers live entertainment, swimming pools, golf courses, marinas with boating and fishing, high-quality restrooms and showers, and the availability of the requisite dump stations. In this book, Mr. Saia explains that while mobile home communities and RV parks are high-risk endeavors, they also typically offer higher rates of return over other ownership holdings when properly managed. However, operators and appraisers need to be aware of any local ordinances that govern this type of real estate, which can differ state to state and county to county.

"RV parks in particular require a high degree of business acumen," he says. "You want your appraiser to be a specialist in this area because of all the nuances of manufactured homes. It’s important to have an appraiser who really understands these properties when they are doing an appraisal because it’s a business entwined with real estate."

According to Jim Amorin, MAI, SRA, and 2017 President of the Appraisal Institute, "Saia’s book, Appraising Manufactured (Mobile) Home Communities and Recreational Vehicle Parks, provides appraisers with a broad overview of the mobile home and RV industries and the methods used in valuing mobile home and RV communities. Because this book provides insight into the methodology applied in analyzing these properties, it can also be useful to investors, regulators, owners, and buyers and sellers of mobile home and RV parks."

Robert S. Saia, MAI, SRA has been a real estate appraiser since 1981. His previous book, "A Guide to Appraising Recreational Vehicle Parks," was published by the Appraisal Institute in 1998. He is currently a Director with Valbridge Property Advisors – Los Angeles/Inland Empire in the Pasadena office.

Valbridge Property Advisors’ Southern California real estate appraisal and consulting services cover a wide variety of commercial and geographic areas, including: Los Angeles County, Orange County, Riverside & San Bernardino Counties (Inland Empire), among others.

For a quote on an appraisal for manufactured home parks, RV parks, industrial developments, retail shopping centers, office or multifamily properties, or any other commercial properties, please email us at or call us at 626-486-9327.

25 May 2017

Commercial Appraisals: The Role of Cyberattacks in Assigning Value

Commercial Appraisals: The Role of Cyberattacks in Assigning ValueShould a cyberattack be a considered factor when assigning value in appraisals?

Cyberattacks are a well-known risk to individuals and businesses alike. The fact that someone could invade a business’ IT system or any other digitally-connected device and access company data and financial transactions is a serious risk.  But should you factor in the risk and security that’s been put in place to combat cyberattacks?

Commercial Real Estate and the Risk of Cyberattack

Cyberattacks in general are increasing, and no business is immune. In 2016, there were eight major ones that Forbes identified as some of the largest attacks in history, and a survey by Deloitte found that cyberattacks are a top concern for nearly 75% of corporate executives. Most people are aware of the major cyberattacks against retail giant Target and search engine company Yahoo, but fewer think about them affecting commercial real estate organizations.

The truth is, though, that commercial properties – and those who own or manage them – are vulnerable to any number of attacks. Many business systems for office suites and other commercial properties are managed and controlled remotely, and on-site managers may not take the precautions necessary to protect the properties they oversee.

Commercial real estate companies may not be making the headlines for cyberattacks, but the businesses contain a wealth of data assets that make them a solid target for people looking to inflict harm. Security measures must be implemented, and company leadership needs to assess how their existing technological practices may leave them vulnerable to cyberattack.

Cyberattacks and Appraisals

The role of the appraiser is to produce a credible estimate of a commercial property’s market value. That can get complicated when considering the  risk of cyberattack. Does a cyberattack fall under the definition of a hypothetical or extraordinary assumption and, if so, should it impact the value of the property?  

When a property derives much of its value from the rental rates received, what happens if those rents can’t be collected? Failures from a cyberattack can hurt not only cash flow, but reputation and therefore leasability of properties.

Heightened awareness of the risk of cyberattacks has forced owners and managers of commercial buildings to incorporate security enhancements in an effort to counter such activity. Likewise, appraisers need to consider not only the risk of attacks, but the impact of security measures on a property. If the threat of cyberattack is real, is it quantifiable? And if so, do security measures make a property more valuable than one without them?


The commercial appraisal industry is just beginning to understand cyberattacks and what role they, and the security measures put in place to thwart them, play in assigning value. What’s known for certain is that no industry is safe from a cyberattack. The topic will require continued assessment and vigilant planning. At a minimum, the appraisal industry needs to have conversations about  the risks and whether to consider them, and  protection measures a property owner or manager has in place, when assigning value to a commercial property.


15 May 2017

The Rights Remaining

The Rights RemainingConsidering The Value Impact Of An Easement Acquisition

By Kenneth Cantrell, MAI

I recently appraised several parcels for a major power company that involved rebuilding an older power line through densely developed areas of Atlanta, Georgia.The powerline and its associated easement rights had existed for over 60 years, but the power company needed to acquire additional easement rights in order to reconstruct the line. When easements overlay other easements, it can get extremely complicated.

Read the full article in Right of Way Magazine

25 April 2017

Marcus & Millichap Multifamily Forum

Marcus & Millichap Multifamily ForumATLANTA, Georgia - April 13, 2017 - Valbridge was in attendance at the Multifamily Forum. Thanks to M&M for putting on an informative event.

Keynote Speakers included:

Dennis Lockhart, Former President and CEO, Federal Reserve Bank of ATL.

Hessam Nadji, CEO, M&M

John Sebree, FVP of National Multi Housing Group, M&M

  • Discussion centered around future of Interest rates, and their expected level trajectory for the next 12-18 months.
  • True home ownership will / should be around 60-62%, down from the inflated numbers that approached 70% prior to the 2007/2008 Crash
  • Demographics driving solid demand for many different MF products
  • Loan volume expected to grow in 2017 as deal pipeline continues
  • Demand drivers still remain job growth, Supply, age demographics
  • Class B is the new Darling of the MF properties
  • Spreads expected to come down between OARs and Treasuries as time goes on. Spreads now are some of the widest in recent memory.

Other speakers included Marvin Banks, M.Banks Realty Partners; Steve Carlson, Waterton; Jack Fiorella, Equity Resources;

28 April 2017

Multifamily Developers are Getting Creative to Attract Renters

The multifamily property market continues to outperform other sectors and has the lowest vacancy rates of all major property types. It's a market driven by solid economic fundamentals, and one that many experts feel confident will continue to grow. It's predicted that renter households will increase in every generational demographic, with millennials leading the way. To attract them, developers are getting more creative, experimenting with new designs, offering modern amenities, and taking an innovative approach to marketing.

Amenities Evolution

Amenities-rich multifamily housing is shaping the now and future market. Mixed-income, mixed-use neighborhood developers are offering up a slew of amenities designed to both attract and compete. Nice pools and large fitness centers are now mostly a given, but they aren’t the only communal amenities residents seek when choosing the perfect place to live. Today’s multifamily dwellers want all the amenities they’d find in a single-family suburban market, and are searching for perks like:

  • Ample off-street parking.
  • Recycling facilities.
  • Storage space outside the unit.
  • Community Wi-Fi and a business center.
  • Secured access.

Many mixed-use developers are also including grocery stores and other retailers who offer residents quick access to life’s necessities. Many millennials state they want a place to live, work, and play without ever getting behind the wheel.

Innovative Design

One design trend taking the market by storm is micro-apartments, which have found impressive success in coastal cities with a high cost-of-living. Even inland cities like Cleveland, Detroit, and Pittsburgh are taking a chance on micro, building properties that feature units that are typically 400 square feet or less. They’re betting that younger renters will prefer the smaller, but more luxurious, spaces that often come fully furnished and feature millennial-friendly amenities such as high-speed internet and rooftop vegetable gardens.

Other trends include housing designed with aging-in-place in mind. Empty nesters are also attracted to multi-family living and are looking for a low-maintenance, walkable experience enhanced by amenities that address their age-specific needs.


One of the more innovative and exciting trends in multifamily housing is non-real estate brands moving into the market’s development phase. Luxury brands in particular are looking to expand into diverse markets that let them showcase their expertise in design and craftsmanship. The Aston Martin Residences in Miami are a great example. The 66-story, 390 high-end condominium tower will boast Aston Martin-designed interiors, including seven penthouses, a two-story fitness center, and a full-service spa.

Other brands like Versace, Bulgari, and Armani have also dipped their collective toe in the multifamily housing design pool. The brands believe it offers them a great opportunity to expand into new arenas in exchange for lending their respective brand’s prestige and unique design touch. Key to the success of such co-branding endeavors is a developer partnering with a brand it believes will resonate with its desired target audience.

Marketing That Makes a Connection

Renting is no longer a simple transaction involving building banners and lease agreements. And where renting was once considered a stepping stone to homeownership, the new American dream for a large segment of the population is a rental to call home. To adapt to this new reality, developers, owners, and management companies are reconfiguring their marketing strategies to include a more emotional component.

The best way to reach potential residents on an emotional level is by understanding why they’re choosing to rent in the first place. Today’s renters want their space to feel like home, not a temporary holding location. They want all the same conveniences and amenities homeowners enjoy, want their friends nearby, and want to feel they are part of a real community. Developers who are able to tap into a renter’s heart and mind will have the greatest impact in today’s multifamily housing market.

21 April 2017

Valbridge Becomes Wealth Management Group’s Preferred Provider

North America’s Largest Independent Commercial Valuation Firm Teams Up With FEI

NAPLES, Florida - April 18, 2017 - Valbridge Property Advisors (Valbridge), North America’s largest independent commercial valuation firm, is pleased to announce their selection as the preferred provider of appraisals and business valuation services for The Financial Engineering Institute’s (FEI) network of over 2,200 wealth management professionals.

"We are excited to add Valbridge to our Expert Sourcing Team," said FEI President and Managing Partner, Nick Gregory, ChFE, CEBA, ChFWA. "Accurate, compliant property appraisals and business valuations are a necessity when it comes to comprehensive wealth management. Valbridge’s national presence and expertise in this market make them a natural fit for our team."

Valbridge CEO Rick Armalavage, MAI added, "To achieve the wealth management goals of a family or business and remain fully compliant, you have to assemble a great team. We are honored to join one in FEI’s Expert Sourcing Team."

With this announcement, Valbridge joins an arsenal of best-of-breed expert sourcing firms to provide services to FEI’s network of wealth management firms, investment and insurance advisors, attorneys, and CPAs across the nation. The result is the fusion of advanced knowledge, experience, services, and products with sound engineering principles to create a synchronized hub for family and business wealth building.

Valbridge Property Advisors is the largest independent commercial valuation firm in North America, with 200 MAI-designated appraisers, total staff of over 675, and 68 locations. They offer comprehensive valuation services including all types of commercial property appraisals, market & feasibility studies, consulting/advisory services, litigation support, business valuations, and construction consulting. For more information about Valbridge Property Advisors, visit 

The Financial Engineering Institute (FEI), headquartered in Tampa, FL, serves over 2,200 wealth management firms, investment and insurance advisors, Attorneys, and CPAs across the nation. FEI helps these professionals harmonize the complex wealth of families and businesses through the organization’s WealthBlueprintingTM Process. FEI is also the governing body and grantor of the Chartered Financial Engineer (ChFE) professional designation. For more information about The Financial Engineering Institute, visit or call 888.884.3332

13 April 2017

White Paper - Fractional Interest Discounts Real Estate

White Paper - Fractional Interest Discounts Real EstateBy: John D. Penner, MAI

A fractional (or partial) interest discount on the value of a real estate property is allowable by the IRS when there is less than a 100% interest in the business entity that owns the real estate. The discount relates to the fact that the ownership interest has a "Lack of Control" over the operation and disposition of the real estate and a "Lack of Marketability" due to the difficulty in selling an interest that is not publicly-traded and is not easily financeable.

Examples of ownership entities that own a fractional interest include:

  • Limited Partnerships (LP)
  • Limited Liability Partnerships (LLP)
  • Limited Liability companies (LLC)
  • Tenants in Common (TIC)

The two instances where this discount generally applies are for the gifting of a fractional interest or upon the death of a person that owns a fractional interest in real estate.

Courts have held that discounts for lack of control and marketability exist in the market and should therefore be considered when valuing a fractional ownership interest. The amount of the discounts can vary depending upon the:

  • Particular ownership entity to be valued
  • Percentage of ownership
  • Rate of return on the investment
  • Amount of debt
  • Market time and conditions in which it is to be considered

Based on our experience in the market we have seen discounts as low as 15% and as high as 67%. The majority of these transactions ranged from a discount of 25% to 40%. In each instance, the ownership interest needs to be valued based on its own specific merits.

Finally, it is noted that upon submission, the IRS requires support in the form of an appraisal for the determination of a discount pertaining to a fractional interest. Per IRS guidelines, the appraisal must consist of a "qualified appraisal" and be completed by a "qualified appraiser."

Valbridge Property Advisors is the largest independent commercial valuation firm in North America and includes a proprietary national database of fractional interest sales. Our appraisals are the most comprehensive in the industry and will help your client sleep better at night.

For more information or questions contact the National Director for Fractional Interest Valuation John D. Penner.

Phone: (714) 449-0852

27 March 2017

Air ways

Air WaysAn appraiser floats several options to determine highest and best use for a dirigible hangar

By Jeffrey S. Harris, MAI

The nation’s only steel hangar for blimps remaining from World War II stands near Elizabeth City, North Carolina. The building is massive, measuring 960 feet by 328 feet and standing 190 feet tall, and its steel construction allows it to flex several inches to withstand wind forces. The property is zoned for industrial use, and improvements total 317,500 square feet of net leasable space

Read the full article in Valuation Magazine

24 March 2017

Valbridge Opens Boston Office

North America’s Largest Independent Commercial Valuation Firm Expands

NAPLES, Fla. - March 21, 2017 - Valbridge Property Advisors (Valbridge), North America’s largest independent commercial valuation firm, is pleased to announce the opening of a new Boston office. Located in Sudbury, MA, the office will be led by James J. Marotta, MAI, a 30+ year appraisal veteran in the area, and Matthew Merrill, a 15+ year veteran.

The new office will offer Valbridge's full scope of independent commercial real estate valuation and advisory services, with particular expertise in affordable housing.

Mr. Marotta on the announcement: “I could not be more excited to join the Valbridge family. Becoming part of a team of over 200 MAI-designated appraisers and having access to Valbridge’s state-of-the-art appraisal technology means there is no job too big for us to handle.”

"James’ wealth of experience in such an important market reinforces the Valbridge philosophy of having a national reach while maintaining local knowledge," added Valbridge CEO, Rick Armalavage, MAI.

Valbridge Property Advisors is the largest independent commercial valuation firm in North America, with 200 MAI-designated appraisers, total staff of over 675 and 68 locations. They offer comprehensive valuation services including all types of commercial property appraisals, market & feasibility studies, consulting/advisory services, litigation support, business valuations, and construction consulting.


Media Contact:
James J. Marotta, MAI
(978) 443-3515

10 March 2017

The Value of Property Taken

The Value of Property TakenAppraising real estate acquired through eminent domain

By Kenneth Cantrell, MAI

A typical appraisal provides an opinion of market value and is required for lending and other real estate purposes. However, in cases where eminent domain is involved, the market value is essentially an interim step leading to the final conclusion of just and adequate compensation.

Read the full article in Right of Way Magazine

1 March 2017

NOTES FROM MBA CREF San Diego, California February 2017

NOTES FROM MBA CREF San Diego, California February 2017Earlier this week, more than 3,000 commercial real estate professionals descended on San Diego for the MBA CREF conference.

Valbridge Property Advisors was pleased to be an exhibitor at the event, and enjoyed meeting current and future clients. We were represented by professionals from California, Texas, Georgia, Virginia and South Carolina. In addition to visiting with so many professionals, education sessions were also on the schedule. Below are a few highlights from the perspective of a life insurance company panelist.

Multi-Family Product Class

The life company panelist stated they were focusing more on Class B apartments because they have historically had lower volatility than Class A or Class C apartments. Class A is strong when the economy is good, but suffers when tenants step down to Class B during bumps in the economy. Class C does better when economic times are uncertain, but suffers when the economy turns and tenants move up to Class B.

In both scenarios, Class B apartments are buffered from changes in demand.

Production Forecast for 2017

Life companies are continuing to have record production years, due to struggles in the CMBS world, and expect 2017 to be another strong year. However, many forecasts are for loan production to temper in the near future due to decreases in loan renewals, interest rate increases and unforeseen world events that affect financial markets.

8 February 2017

Valbridge Opens Baltimore Washington Metro Office

Nation’s Largest Independent Commercial Valuation Firm Expands

NAPLES, Fla. - February 7, 2017 - Valbridge Property Advisors (Valbridge), the country’s largest independent commercial valuation firm, is pleased to announce the opening of a new Baltimore Washington Metro office. Located in Marriottsville, MD, the office will be led by David H. Brooks, MAI, a 30+ year appraisal veteran in the area, and Michael Haller, MAI.

The new office will offer Valbridge's full scope of independent commercial real estate valuation and advisory services, with particular expertise in commercial real estate and fractional interest valuations throughout Maryland, Washington, D.C., Northern VA, and Delaware.

Mr. Brooks on the announcement: "Opening a new office can be a challenge. Thankfully, we're in an area we know and love, and have the amazing Valbridge team to help make this a smooth transition."

"David’s wealth of experience in such an important market reinforces the Valbridge philosophy of having a national reach while maintaining local knowledge," added Valbridge CEO, Rick Armalavage, MAI.

The office will include two MAI appraisers, two certified general appraisers, and two associate appraisers, as well as support staff.

Valbridge Property Advisors is the largest independent commercial valuation firm in the country, with 200 MAI-designated appraisers, total staff of over 675 and 68 locations. They offer comprehensive valuation services including all types of commercial property appraisals, market & feasibility studies, consulting/advisory services, litigation support, business valuations, and construction consulting.


Media Contact:
David H. Brooks, CRE, MAI
(443) 333-5525

8 February 2017

Valbridge Opens Miami-Ft. Lauderdale Office

Nation’s Largest Independent Commercial Valuation Firm Expands

NAPLES, Fla. - February 7, 2017 - Valbridge Property Advisors is pleased to announce the opening of its new office in the Miami / Ft. Lauderdale area. The new office is located at 8200 N.W. 41st Street, Doral, Florida and serves the Broward, Miami-Dade, and Monroe County markets. Geri F. Armalavage, MAI, CBA, CVA, CMEA will manage the new location.
Ms. Armalavage, a 30-year appraisal veteran and Chairwoman of the Board of Directors of Valbridge Property Advisors says, "We’re excited to be a part of the dynamic Miami-Ft. Lauderdale market.  Our new location provides greater reach for us in Southeastern Florida and will better serve our existing client base throughout this flourishing real estate market."
"This new office strengthens our commitment to be the industry leader for independent commercial real estate valuation services across the U.S. while having a local presence," added Valbridge CEO Richard L. Armalavage, MAI.

Valbridge Property Advisors, headquartered in Naples, FL, is the largest independent commercial real estate valuation and advisory services firm in the country, with over 200 MAI-designated members of the Appraisal Institute among over 675 professionals and 69 offices nationwide.  The company’s proprietary technology platform allows for proficient and secure delivery of services nationwide.


Media Contact:
Suzette Smith
(305) 639-8029

30 January 2017

Estate Planning & Valuation in the Age of Trump

Estate Planning & Valuation in the Age of TrumpIn the not-so-distant past, taxes drove everything in estate planning. Today, a new administration, recent changes in tax laws, and the fact that less than .02% of Americans pay any estate taxes have many people rethinking their estate plans. No matter what the new president does, however, there are still many issues on the table that should drive clients to your door, and many of them require an accurate, independent valuation of the assets involved.

State Taxes

President Trump may work to repeal federal estate taxes, but that still leaves the issue of estate taxes at the state level. With state rates as high as 20% (Washington state), individuals will have plenty of reasons to need estate planning services. Currently, fourteen states and the District of Columbia have an estate tax, six states have an inheritance tax, and Maryland and New Jersey have both.

New Capital Gains Tax?

One idea the new president has floated is a new capital gains tax if he is successful in repealing the federal estate tax. There are few specifics, but an exemption of at least $10 million to protect small businesses and farm owners has been discussed. The application of the tax is unclear however, particularly regarding whether it would apply to unrealized gains or only when the assets are sold. Regardless, as stated by Adrienne Penta of Brown Brothers Harriman,

"If the estate tax is replaced by a capital gains tax, it could be even more complex to administer and to produce the documentation on cost basis."

Estate Valuation

Benjamin Franklin’s well-known phrase that an ounce of prevention is worth a pound of cure could not be more true than when applied to estate planning. Far too often, people leave estate planning and its related issues until it’s too late to take advantage of the benefits available to them and their heirs. Regardless of where estate-related rules and regulations are headed, do yourself and your clients a great service by having an accurate, independent valuation of estate assets completed.

The Valbridge Estate Planning Specialty Group can help you with any of your estate valuation needs, including:

  • Valuations for 706 and 709 filings for all types of real estate
  • Fractional interest valuation/discount studies for LPs, GPs, LLCs, and TICs
  • National Database of Fractional Interest Sales
  • Expert witness/litigation support
  • Partition actions
  • Business valuations
30 January 2017

Heckerling 2017

Valbridge Property Advisors was again a gold Sponsor of the 51st Heckerling Institute. Held in Orlando the Week of January 9-13, it is the premier conference for estate planning professionals providing unparalleled educational and professional development opportunities for all members of the estate planning team, including the task of Real Estate Valuation and Appraisals.

This year’s speakers covered topics of timely interest to attorneys, trust officers, accountants, charitable giving professionals, insurance advisors, elder law specialists, wealth management professionals, educators and non-profit advisors.

Highlights included:

  • a focus on the issues surrounding intra-family wealth transfers including planning with portability, obtaining greater divorce/creditor protection, using GRATs and other freeze techniques, planning for the retirement accounts of married couples, and business succession planning
  • an update on international planning including recent developments and trends in global tax transparency, planning for non-U.S. persons investing in the U.S., and advising clients seeking U.S. tax deductions for international charitable donations.
  • Discussion of tax aspects of fiduciary litigation, recent cases involving fiduciaries, the role of an attorney as an expert witness, how to identify critical pressure points in the estate plan, and how to avoid malpractice liability.

The Institute is also the home of the nation’s largest exhibit hall dedicated entirely to the estate planning industry. Valbridge was also a booth exhibitor, giving us the opportunity to meet and interact with many Estate Planning Professionals. And congratulations to our Allen Brothers Steaks give away winner, Heidi Bitterman with US Trusts. 

20 January 2017

Notes From CREFC Miami, Florida January 2017

Notes From CREFC Miami, Florida January 2017For the 3rd consecutive year, a Valbridge Property Advisors contingent attended the annual CREFC conference. The meetings were held the first week of January at the Loews resort in sunny Miami, Florida; except for the unwelcome day of rain, wind, and cool temperatures.

Following are a few notes that might be of interest.

Multi Family

  • Multifamily debt exceeds $1 trillion
  • GSE’s account for 44% of the debt
  • Freddie believes their business can increase 5% in 2017
  • About 50% of Fannie loans in 2016 were for purchases
  • Fannie is projected to have a volume of $54 billion in 2017

Rent growth is expected to slow to 3%, down from 4.5%

Markets that may see 5% growth include Portland and Seattle

Appreciation in value is also slowing

New York City is adding 13% new inventory to the market. NYC will join overbuilt markets such as Dallas, Atlanta and Nashville.

Foreign Investments

US is the number 1 place for safe investment

Favorite foreign investments are multi-family and industrial

There is foreseen change in this trend

Interest Rates

A survey of CBRE brokers says prices have adjusted 25 basis points since the rise in interest rates. So far, very few deals have been re-traded or terminated.

Government Actions

Marty of CREFC indicated tax reform in inevitable. It could be radical on the commercial side, but not as much on the personal side. There is some support for the elimination of the interest deduction.

There will be GSE reform in Q3 or Q4 of 2017.

Special Servicers

Risk to special servicers of not being enough funds in event of unexpected expenses or litigation

Advance Committees are being established to assist with expenses to alleviate special servicers from taking a hit.

Lending Trends

Insurance companies have shown the lowest losses of all lenders

Banks are now lending in every market, and on all property types. There is no over leveraging as in past cycles. Smaller banks have been pulling back, primarily due to regulatory concerns.

Portfolio transactions are down significantly

Life companies were up in volume for the first two quarters of 2016, while CMBS is down. Bank lending also increased

Forecast for 2017 is for bank lending to be flat, CMBS to be down, and life companies to increase.

The CMBS implementation of the 5% risk retention will have a negative impact. CMBS is pulling back from the higher leverage deals. This is creating uncertainty on takeout’s (maturing loans)

A great number of refis will require a capital infusion due to higher equity requirements.

There will likely be a broadening of cap spread between asking price and contract price.