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Retail petroleum facilities, including convenience stores, travel
centers, and carwashes are customarily marketed and sold as
operating businesses or “going concerns.” Thus, the real
estate component comprises only part of a combined package
that also contains personal property items (FF & E) and the
intangible assets of a continuing business enterprise; including
goodwill (or a proven track record of successful operations).
Although all of these component parts do contribute to value,
the prices paid for these types of properties are almost always
a direct function of the profitability associated with the
aggregate going concern.
Nevertheless, Federal banking and appraisal regulations
stipulate that appraisers must segregate, analyze and report
the respective value contributions associated with the (1) real
property, (2) personal property, and (3) intangible business
components of the aggregate going concern value. The goal of
these requirements is to improve the reliability of lender risk
assessments in loan underwriting decisions.
However, development of credible and market-supported
analyses for each of these segregated “value components”
requires an experienced appraiser who possesses the highly
specialized knowledge necessary to competently perform
valuations for these property types.
Yes, there are appraisal companies that do specialize in the
valuation of retail petroleum facilities on a regional or even
national basis. Fly-in, inspect the property, and fly-out; these
traveling appraisers may understand gas stations, but are they
really able to keep current on the thousands of unique market
areas across the country? Appraiser competency not only
relates to knowledge and experience for particular property
types, but also to specific geographical market areas.
New West Consulting knows Arizona. We also possess the
specialized skills and depth of experience necessary to value
going concerns, including convenience stores, gas stations,
travel centers and carwashes. Call us.
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