Integra – San Diego Appraises El Cajon Retail Center

Integra – San Diego has completed an appraisal of a 68,000 SF neighborhood retail center in El Cajon. The property is located on 5.76 acres, and includes 3 buildings, one of which is a Big Box retailer.  This property was 96% leased as of the effective appraisal date. The client wanted to estimate the property’s value assuming a hypothetical subdividing/remapping of the existing site, creating two newly created land pads.  The appraisal was completed for a financial services firm on behalf of a national financial institution.

Integra – San Diego Appraises Downtown Office High-Rise

Integra – San Diego has just completed the appraisal of a 22 story multi-tenant, high-rise office tower property in downtown San Diego. The entire building,  including the ground-floor retail, and basement consists of 447,164 SF. The appraisal report was completed for a financial institution.

Class B Multi-Tenant Office High-Rise

Class B Multi-Tenant Office High-Rise Containing 448,000 SF Rentable Area

 

IRR – San Diego Values “Egyptian” Commercial Condos, Hillcrest, San Diego

Integra – San Diego appraised the retail condominium units of a high-visibility mixed-use, commercial/residential property in San Diego. This property was originally built as a movie theater in 1911, and preserving only the Egyptian Revival architecture facade, in 2005 it was developed as a six-story mixed-use building containing 80 residential units, as well as the commercial condos. Site area for the entire project is .76 acre. The six retail condominium units were appraised as a single unit, for loan underwriting purposes for a financial institution.

2015 Changes to Estate Taxes (and How it Affects Real Estate Appraisals)

IRS-Estate-Tax-Appraisal-San-DiegoAs 2014 comes to an end, it is important to look at what is changing to estate tax requirements in 2015. Here is a summary of estate tax laws, what is to come next year, and how these changes affect the valuation of your real estate.

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Office Appraisal in Carmel Valley, San Diego

Office-Tower-Appraisal-Carmel-Valley-San-Diego

Integra Realty Resources – San Diego has completed a commercial appraisal of a multi-tenant office tower property located in the community of Carmel Valley in the city of San Diego. The building, built in 2001, is approximately 76,000 square feet in size and 99% leased to 25 tenants. The improvements are located on a 3.04 acre site. The purpose of this commercial valuation was for loan underwriting purposes for a life insurance company.

The Difference Between Gross Income and Effective Gross Income

Potential-Gross-Income-Effective-Gross-Income-San-Diego-Real-Estate-AppraiserIn appraising income-producing residential properties (such as apartments), gross income multipliers are used as a method of determining an opinion of value. Depending on your area, however, the multiplier can be based on potential gross income or effective gross income. Here is the difference between the two.

Potential Gross Income

Potential gross income (also known as PGI or gross potential rent) is the total revenue a property could generate if 100% leased at market rent. This may or may not be what is actually happening with the subject property, but many times this is not the case. For example, some rents may be over or under market, or the property may not be 100% occupied. Nevertheless, PGI reflects the the most annual rent a property would collect.

Effective Gross Income

Effective Gross Income (of EGI) is the amount of income a property generates after other factors are considered. Depending on the property type, the first factor are expense reimbursements, which are operating expenses that are paid for by the tenant. This could include a portion of the expenses (such as real estate taxes and insurance), or, in the case of an absolute net lease, all of the expenses. Expense reimbursements depend on the terms of the lease, but in the case of multifamily properties the tenant is generally only responsible for paying their pro-rata share of the utilities.

Another item to consider is vacancy and collection loss. Vacancy occurs when all or a portion of the property is not occupied, while collection loss is an estimate of how much rent is expected to not be collected during the projection period. This is typically estimated based on the subject’s historical performance, comparable properties, and/or industry benchmarks.

The last item to consider would be other income, which can include parking, laundry income, vending machines, and other types of income not included in the rent. Similar to vacancy and collection loss, other income is typically based on historical figures and comparable properties.

Summary

In short, potential gross income is the total rent a property could generate is 100% leased at market rent, while effective gross income is a net figure that considers expense reimbursements, vacancy and collection loss, and other income. In estimating these two figures, especially EGI, it is best to determine what income is affected by vacancy. For example, some other income (like rent from a billboard), is not necessarily affected by occupancy. However, items such as expense reimbursements could be affected if there is a higher than typical vacancy rate. When performing due diligence on a property, an appraiser would look at both historical numbers and the property’s competitors in estimating market value for the subject.

If you have any questions about income, multifamily properties, or are in need of a commercial real estate appraisal, please contact us today.

Strip Retail Appraisal in San Marcos, San Diego County

Strip-center-appraisal-san-marcos-san-diego-county-california

Integra San Diego has completed a commercial appraisal of a strip retail property located in San Marcos in San Diego County. The building is approximately 18,000 square feet in size and is located on a 1.95 acre site. Built in 2008, the property was 100% leased to 12 tenants as of the effective appraisal date, including credit tenants such as Subway and 7-Eleven. The purpose of this commercial valuation was for loan underwriting purposes for a lender.

Proposed Hotel Appraisal in San Diego

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IRR San Diego has completed a commercial appraisal of a proposed hotel property located in San Diego. The property is a 0.63 acre site currently developed with an limited-service hotel, but the owners plan to redevelop the property as a multi-occupancy structure with a hotel, residential condominiums, retail, and a restaurant.  The project is expected to be delivered in approximately two years. The purpose of this commercial valuation was for loan underwriting purposes for a lender.

Waterfront/Sandwich Leasehold Appraisal

Waterfront-appraisal-coronado-san-diegoIntegra San Diego has completed a commercial appraisal of a waterfront property located in Coronado in San Diego County. The property consists of three different property types: a 4,500 square foot office building, a 9,200 square foot restaurant building, and a 20,000 square foot vacant pad. The total site area is about 7 acres. As a waterfront property, parts of the subject are either underwater or not. In this case, the site consists of a filled upland parcel (also known as a land parcel) and a submerged tideland parcel (also known as a water area parcel).

As with most waterfront properties in San Diego, this property is subject to a ground lease.  The subject is 100% owner-occupied by the master ground lease, and the restaurant is 100% subleased to a single tenant. The purpose of this commercial valuation was for loan underwriting purposes for a lender.

Poway Medical Office Condominium Appraisal

Poway-medical-office-condominium-appraisal

Integra Realty Resources – San Diego has completed a commercial appraisal of a medical office property located in Poway in San Diego County. The subject property consists of several non-contiguous medical office condominiums located in the same building. The units total approximately 15,000 square feet, with suite sizes ranging from about 1,100 square feet to 4,700 square feet. The building is located on a 3.59 acre site. The units are 100% leased to two tenants, one occupying four units and the other occupying a single unit. The purpose of this commercial valuation was for loan underwriting purposes for a local credit union lender.

Medical Office Appraisal in La Jolla, San Diego

Medical-Office-Appraisal-La-Jolla-San-DiegoIRR San Diego has completed a commercial appraisal of a medical office property located in La Jolla, San Diego. The building, located along Ivanhoe St., is approximately 3,400 square feet in size and is located on a 0.08 acre site. The property is 100% occupied by an owner-user. The purpose of this commercial valuation was for asset valuation purposes for a lender.

Oceanside Shopping Center Appraisal

Shopping-center-retail-real-estate-appraisal-oceansideIRR San Diego has completed a  commercial appraisal of a retail (shopping center) property located in Oceanside in San Diego County. The property consists of approximately 16,000 square feet of gross leasable area in two buildings and is located on a 1.83 acre site. Built in 2003,  the shopping center is 100% leased to 10 tenants. The purpose of this commercial valuation was for loan underwriting purposes for a life insurance company.

Recent Hotel Appraisal: Bed and Breakfast in Chula Vista, San Diego County

Hotel-Appraisal-El-Cajon-San-Diego-County

IRR San Diego has completed a  commercial appraisal of a hotel property located in Chula Vista in San Diego County. The property consists of a bed & breakfast constructed in the 1930’s and renovated in the early 2000’s. The gross building area is approximately 7,720 square feet and is situated on a 0.21 acre site. The purpose of this commercial valuation was for loan underwriting purposes for a lender.

As the leading hotel property appraiser, Integra San Diego specializes in the valuation of all hospitality types throughout San Diego County. If you have any questions about the hotel valuation process or are in need of a hotel appraiser, please visit our hospitality page for more information or contact us today.

 

Recent Mixed-Use Land Appraisal in La Jolla, San Diego County

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Integra Realty Resources – San Diego has completed an appraisal of commercial land located in La Jolla, San Diego County. The property consists of three contiguous parcels that total 32,139 square feet, or 0.74 acres.  The property is zoned LIPD-3, La Jolla Planned District Zone 3, which permits retail, mixed-use, and multifamily uses with a density up to 29 dwelling units per acre. Based on the subject’s size (and excluding other development regulations), this equates to about 21 units. The purpose of this commercial land valuation was for loan underwriting purposes for a lender.

Recent Agricultural Appraisal in Warner Springs, San Diego County

 

Agricultural-Commercial-Land-Appraiser-Warner-Springs-San-Diego-CountyIntegra San Diego has completed an appraisal of agricultural land located in Warner Springs, San Diego County. The property consists of several non-contiguous parcels located along Highway 79 that total almost 500 acres.  Approximately half of the acreage is irrigated and suitable for agricultural use; the other half consists of rolling, sloping land that is unsuitable for ag-use. The property is zoned A-70, which is located in the County of San Diego zoning jurisdiction and allows for agricultural uses as well as low density residential.

 

Recent Commercial (Industrial) Appraisal: Contractor Storage Yard Property in Escondido

Industrial-Appraiser-Contractor-Storage-Yard-EscondidoIRR San Diego has completed a  commercial appraisal of an industrial property (contractor storage yard) located in Escondido, San Diego County. This type of industrial property is unique from other industrial property types in that it typically consists of a small building on a larger site. In this case, the building has 850 square feet of rentable area and is located on a 11,250 square foot site (0.26 acres), which equates to an FAR of 0.076. The purpose of this commercial valuation was for loan underwriting purposes for a lender.

For more information on the appraisal of industrial properties, please check out our recent post on adjustments made during the valuation process.

Recent Appraisal: Office Tower in Downtown San Diego

Office-Tower-Appraisal-San-Diego-DowntownIRR San Diego has completed a commercial appraisal of an office tower located in Downtown San Diego. The multi-tenant building measures almost 340,000 square feet and has over 30 tenants. The site area of the property equates to 1.31 acres. The purpose of this commercial valuation was for loan underwriting purposes.

Mixed-Use (Residential/Retail) Appraisal in Point Loma, San Diego

Point-Loma-San-Diego-Commercial-Appraisal-Mixed-UseIRR San Diego has completed a commercial appraisal of a mixed-use property located in the Point Loma community of San Diego in San Diego County. The proposed development is approximately 47,195 square feet, is located on a 0.96 acre site, and will consist of townhomes and commercial space. The purpose of this commercial valuation was for loan underwriting purposes for a lender.

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