Valuation Committee meeting notes. (News from NCREIF).
This soup-to-nuts presentation highlighted the risks and rewards associated with real estate development, from both debt and equity investor perspectives. Topics included the land acquisition and entitlement process; planning, design and architecture; project risk assessment; project finance; and construction phasing.
As is custom, Bruce Kellogg, MAI, (Cushman & Wakefield, Inc.), and chair of the Standards Subcommittee, kicked off the second day's Valuation Committee sessions. Following Bruce's update on the Appraisal Foundation Advisory Council (TAFAC) initiatives and activities, Peter Korpacz, MAI (editor of Emerging Trends in Real Estate 2002), gave the committee a sneak preview of emerging trends.
Chuck Harris (director of Research & Analysis for Cushman & Wakefield, Inc.), then moderated a panel of Southern California real estate experts that included an industrial market overview by Chuck Belden (C&W), an office market overview by David Dowd (C&W), a multifamily Presentation by Sean Deasy (CB Richard Ellis), and a retail overview by Anthony Buono (CB Richard Ellis). The panelists displayed a thorough grasp of Southern California real estate dynamics, and gave out the facts and figures appraisers can never get enough of.
Jerry Witte, MAI (Hein + Associates), gave a brief presentation on real estate financial statements to help real estate appraisers look more critically at property-level financial documents.
Real Estate Information Standards (REIS) continue to be developed, with the Valuation Committee focusing on the merits of and guidelines for the frequency of appraisals needed by NCREIF members, and the extent to which third-party appraisers are mandated. Numerous practical and economic considerations drove these lively debates, and Ted Williams, MAI, (from Principal Capital Management and former Valuation Committee Chair) navigated the process.
The Valuation Committee's agenda overflows with hot industry topics for NCREIF's next conference at the end of February at Snowbird Ski and Summer Resort in Utah. Bob Murphy (Prudential) and Richard Kozak (MRI) will conduct a review of the most recent advances in real estate-related technology. Ellen Kerr, MAI, (JP Morgan Chase) will lead a workshop on the practical uses and applications of Dyna software. Jeff Fisher, PhD, (Indiana University) will update the committee on emerging research tools, including the NCREIF Property Index, the Data Consortium, and the Appraisal Institute's LoopNet database initiative. Finally, Joe Iadarola, MAI, (David L. Babson & Co.) will lead a panel discussion on The Post 9-11 Economic Outlook. Korpacz (PricewaterhouseCoopers, editor-in-chief, Korpacz Real Estate Investor Survey), Doug Herzbrun (CB Richard Ellis), Michael Gately (Cornerstone Real Estate), and Rick Latella (Cushman & Wakefield) have signed on as panelists.
Looking ahead, Chuck Dannis, MAI, (Crosson & Dannis) is leading the development of the next NCREIF Symposium to be sponsored by the Valuation Committee.
Peter Goodell, MAI, is the 2002-2003 chair of the NCREIF Valuation Committee. Peter is based in the New York City office of Marshall & Stevens, Inc., and provides real estate litigation support and expert witness services for the firm.
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|Date:||Apr 1, 2002|
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