This was a Special Asset that was acquired by CenterState Bank from one its bank acquisitions. The bank sold this vacated branch bank to an investor for all cash. The investor had to wait 6 months to borrow the money from CenterState which he did. During the interim, he put the property on the market for lease. He ended up leasing the property to American Car Center under long-term lease (NNN) as-is for use as a used car lot operation. The Investor reportedly created a very significant cash flow after debt service. My valuation was after the property was purchased for the permanent loan.
Bishop Vaughn McLaughlin of The Potter's House asked me to re-evaluate this tract for possible sale purposes since a national charter school was interested in acquiring over half of the site - the more prime section that fronted both commercial arterials. I valued the site years ago which at the time had 4.5 acres of wetlands based on the City of Jacksonville topo maps. However, my research revealed that the city had increased the wetlands to 11.99 acres which had a significant impact on value in the opposite direction. I advised my client to hire their own independent surveyor and not rely on the buyer's surveyor to determine the amount of wetlands which he did. Bishop had a minimum expectation for a price for the entire tract based on commercial zoning in the front for the school site and multi-family in the rear which overlooks a canal. Demographics is lower income at this location which is on a fairly busy commercial arterial in a densely populated area (Lane Avenue). Further due diligence revealed that the site was located in an Opportunity Zone which eliminates open area requirements (very significant) and that a portion of the wetlands could be mitigated. I determined that Sr. Housing targeted at the lower end of the market would be an excellent potential use for the rear section of the site overlooking the greenery and the canal. The survey revealed that the city was way off and estimated around 5 acres wet. My due diligence and evaluation of the market put the church in a much better position for both sites (the school and Sr. Housing sites).
Bishop Vaughn McLaughlin (the church) bought a vacated Costco and an adjacent closed-down mall years earlier for pennies on the dollar and completely renovated/converted both properties - went on to become a mega success story on a national level in the church community.
Kingdom Plaza is the renovated and converted mall situated next to The Potter's House church
Typical small vacant single user buildings like these can make good conversion opportunities for a host of different users.
A 530 room hotel/motel along the U.S. Hwy. 192 corridor by Disney with an Angels restaurant (50's theme) that was purchased for conversion to an extended stay operation - one of many examples of conversion opportunities. My valuation was to establish market value as is prior to the conversion.
View of the extended stay operation - motel conversion of Holiday Maingate.
This is a 138,206 SF vacant anchored shopping center with 36,453 SF of detached local tenant space - situated on 13.67 acres - and has land available for multiple out-parcels along U.S. Hwy. 17-92 at the Greenway and Airport Blvd. This was a K-Mart center that went dark - was later renovated - and then went dark again after the 2008 recession. WaWa tendered an offer to acquire 2.67 acres in the front on 17-92 which was declined by the owner who only wanted to sell the center as a whole (not motivated from an HBU standpoint). I felt the center was an excellent candidate for a self storage conversion with multiple out-parcel potential. Seller ended up selling the center to Public Storage for an otherwise lower price.
My assignment was prior to the conversion and rehab of the center – good example of rehab - conversion opportunities.
Valuation assumes prudent management. Sometimes we come into a situation of lower occupancy - lack of maintenance - and below market rents to name a few. Our job is to find out why? Issues fall into 3 basic categories - things inherent in the property - the economy - and/or situations with the ownership. Some owners can successfully manage and lease out their own space - others not so successful for a variety of reasons. This property was appraised as part of a portfolio for Estate Tax Planning purposes which worked out well for the client in his estate planning.
My valuation was as a Special Asset for the bank after the 2008 recession. Excellent example of buying good product at fireside sale prices and in this case had the added benefit of excess land.