Pricing Condo and Apartment Sites - Summer 2017

I often receive requests to value a condominium site. On the surface the procedure is relatively simple. First one has to determine zoning and understand the entitlements associated with that zoning – how many units may be built, height restrictions that may be in place and other requirements that might impact pricing such as required setbacks and step-backs. The key is the total number of units permitted under the zoning classification. Occasionally, it is merely a matter of multiplying the per unit value times the number of units. But valuing each entitled unit equally may not be appropriate for every site. As an example: zoning may permit 70 units on a water view site but if the site is long and narrow, only a few of the units might possess premium water views, which would be valued significantly higher than units without water views. A property owner, therefore, would be mistaken to anticipate a water-view price per unit for an entire tract of land where only a fraction of the units would command such a premium. If you have a question or a concern about the value of your condo or apartment site, please call Harshman & Co., Inc. We’re here to help.