The appraisal of the Allen County Courthouse, completed by Joe Alerding of the Valbridge Property Advisors | Indiana office, offers valuable insights into this historic structure. Built in 1902, the courthouse in Fort Wayne, Indiana, was entered on the National Register of Historic Places in 1976 and was further distinguished as a National Historic Landmark in 2003. The building has 160,000 square feet and includes courtrooms, judges’ quarters, general offices, sheriff’s offices, and holding cells.

Appraising a unique property requires a multifaceted approach. Joe implemented a comprehensive methodology that began with thorough historical research to understand the building’s unique architectural characteristics. Among the building’s most distinctive elements is its extensive use of scagliola—a faux marble crafted through a unique coloring process. It has been noted that the scagliola in Fort Wayne is likely the most important example of the technique to be found anywhere in the world.

The building features encaustic floor tiles and an original rain barrel which collected rainwater from the roof in the early 1900s and served as the primary water supply. This appraisal was commissioned to assist the municipality with a bridge loan for bond financing aimed at constructing a new jail for the county.

Uniquely constructed buildings like the Allen County Courthouse, with high-end finishes, can be difficult to value with all three of the traditional appraisal valuation approaches. Sales of municipally owned buildings rarely transfer on the open market, and when they do it is often due to the functionality of the buildings becoming obsolete, which may not be a good representation of a well-maintained and functional municipal building. In order to complete the Sales Comparison Approach or the Income Approach, data must be used that requires such significant adjustments that the credibility of the approaches comes into question.

This often leaves the Cost Approach as the most credible method when determining value. Experts in the cost approach are engaged, and those experts need to be experienced in both determining the difference between cost and value and consulting with the end-user on the nuanced differences between cost and value. The appraiser’s consultation with the municipality throughout the process was a key component of a successful client experience. Education throughout the assignment benefits the end user, who often has constituents and elected officials to whom they need to then explain the valuation results. Appraisers who offer to be a part of the public process in explaining their rationale and determination are crucial to a successful client experience and ensuring their role in the public’s investment in financial responsibility.