DLP Capital Founder and CEO Don Wenner, joined by members of DLP’s leadership team and a panel of third-party real estate and financial experts, discussed why a single property can carry multiple values at the same time. The conversation examined how lenders, appraisers, and assessors each evaluate commercial real estate through a different lens.
LoanCore Capital Director Lauren Lambe provided insight into the key factors influencing how much capital they are willing to advance, including loan-to-value, loan-to-cost, debt yield, and debt service coverage ratios.
Next, Ross Friedman, Managing Director at Partner Valuation Advisors discussed the appraisal process, examining how value is determined throughout an asset’s lifecycle, from its current condition through completion of its business plan. The panelist discussed the different approaches used to determine these values, including analyzing replacement costs, comparable sales, and an asset’s income potential, as well as the role of net operating income (NOI) and capitalization rates in determining value.
Finally, Tyler Dowell, Director at KE Andrews, explained how assessed value is determined and the role of tax appeals in commercial real estate. The panelist highlighted how county assessors and property owners can approach a property’s value differently and why actively managing tax values is prudent ownership. He goes into detail in explaining how challenging and fighting for lower assessments, not only protect current NOI and asset performance but can also boost the property’s overall market value and strengthen its borrowing capacity.