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AAI:  Appraiser & Lender Perspectives Mitch Kreeger, MAI, SRA Chief Appraiser, Affinity Bank [email_address]
Introduction ,[object Object],[object Object],[object Object],[object Object]
USPAP Advisory Opinion 9 – “Appraisal of Real Property That May Be Impacted by Environmental Contamination” ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Terms  (USPAP AO-9) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Terms, cont.  (AO-9) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Valuation Issues, As If Unimpaired ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Valuation Issues, As Impaired (Brownfields) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Satisfying USPAP SR 1-4 (Scope of Work) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Valuation Issues – Detrimental Conditions (DC) Matrix (Sources:  Randall Bell, MAI; USPAP AO-9) Market resistance (stigma) Provide incentives for timely repairs -- Uncertainty -- Fear of unknowns -- Assess depth & breadth of issues Risk (Stigma) Ongoing Loss of Utility Loss of Utility during Redevelopment Loss of Utility Assessment Use -- O & M Plan -- Monitoring -- Ongoing costs -- Repair costs -- Remediation costs -- Redevelopment -- Assess extent of contamination -- ESAs, RAP Cost Ongoing Repair Assessment
Stages of Value Recovery (Source:  Randall Bell, MAI)
Valuation (Appraisal) Issues  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Valuation Issues, cont. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Lender Point of View: Affinity Bank
Lender Point of View - Affinity Bank ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Lender Point of View - Affinity Bank Initial Due Diligence ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Lender Point of View - Affinity Bank  Ongoing Due Diligence ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Lender Point of View: Lender Survey
Other Lender Policies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Lender Survey:  1) “AAI” Policy Changes? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],Lender Survey:  2) Brownfield loans?
Lender Survey:  3) Due diligence? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Lender Survey:  3) Due diligence? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Questions?
Sources & Links: ,[object Object],[object Object],[object Object],[object Object],[object Object]

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Phoenix Brownfields University 2005

  • 1. AAI: Appraiser & Lender Perspectives Mitch Kreeger, MAI, SRA Chief Appraiser, Affinity Bank [email_address]
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9. Valuation Issues – Detrimental Conditions (DC) Matrix (Sources: Randall Bell, MAI; USPAP AO-9) Market resistance (stigma) Provide incentives for timely repairs -- Uncertainty -- Fear of unknowns -- Assess depth & breadth of issues Risk (Stigma) Ongoing Loss of Utility Loss of Utility during Redevelopment Loss of Utility Assessment Use -- O & M Plan -- Monitoring -- Ongoing costs -- Repair costs -- Remediation costs -- Redevelopment -- Assess extent of contamination -- ESAs, RAP Cost Ongoing Repair Assessment
  • 10. Stages of Value Recovery (Source: Randall Bell, MAI)
  • 11.
  • 12.
  • 13. Lender Point of View: Affinity Bank
  • 14.
  • 15.
  • 16.
  • 17. Lender Point of View: Lender Survey
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 24.