Case Study 3 – Appraisal Value Dispute

​

The property in question is subject to a ground lease for which rent is defined as the imputed value of the land given its highest and best use subject to incorporating a 400-car parking garage in a future development. The appraised value of the property was in dispute between the lessor and the client (lessee). Mr. Hammerschlag was engaged to determine if the appraised value as determined by an appraiser, who was selected jointly by the client’s and lessor’s appraisers when they couldn’t agree on a value, was reasonable by using his intimate knowledge of the specific asset which he once operated and as an owner and developer of parking structures.

 

As an added value to the client, Mr. Hammerschlag exposed serious factual inaccuracies in the analysis of the chosen appraiser.