Multifamily Appraisal Services
The apartment industry in the United States has attracted significant investor interest. From small time investors to large private investment first and real estate investment trusts, multifamily properties have become a desirable asset class for owners. McCoy Valuation has significant experience appraising properties ranging from duplexes to large communities with hundreds of units.
Low-Rise Garden and Walk-Up Apartment Valuation
Low-rise garden apartments are typically two to four stories, featuring a mix of units and common outdoor areas. The defining characteristic of this property type is lower height, which allows for a greater connection to the surrounding landscape and a more community-oriented atmosphere. Many smaller properties are less than 30-units and typically have no elevator. Additionally, these properties may have private balconies or patios and shared outdoor spaces, but typically there are few amenities and without enclosed common areas.
Walk-up apartments may be slightly larger at two to five stories, with stairway access instead of elevators. Typically, these properties are located in suburban markets and select urban locations where space is limited by high-rise buildings are uncommon or not permitted. For owners, lack of enclosed common areas can reduce electricity and maintenance costs. Oftentimes, these properties are popular among renters who are looking for a convenient but budget-friendly option for renting.
Mid-Rise Apartment Appraisals
Mid-rise apartments are commonly in the four to ten story range with between 100 and 300 apartment units. Unlike low-rise or garden apartments, mid-rise multifamily properties require an elevator and feature interior corridors with more common space and amenities. Frequently, these properties have a on-site property manager and may have structured parking incorporated on lower parts of the building.
Factors that are considered in mid-rise apartment appraisals include location, unit mix, rental income, market demand, and physical condition of the property. The McCoy Valuation team will analyze comparable properties in the subject’s market to determine if rents are in-line with nearby competitors. Popular amenities such as fitness centers, pools, business centers, grilling ares, and game rooms, will also be taken into consideration.
Affordable, or low-income, housing is another common property type analyzed by the McCoy Valuation team. As lower income residents cannot afford home ownership, states and localities often support affordable housing initiatives to increase the supply of high-quality apartments in a given area. Agencies such as U.S. Department of Housing and Urban Development, the Virginia Housing Development Authority (VHDA), and the North Carolina Housing Finance Agency (NCHFA) are among government entities supporting these initiatives.
Communities for older residents often resemble traditional multifamily communities with the exception of modifications that are tailored for senior living. In addition to being occupied by residents who are 55 or 65 or better, senior communities may emphasize amenities such as transportation vans, community meeting space, and planned events. These properties often have on-site staff that may assist with activities beyond property management such as an activities coordinator, nursing assistance, and other caregivers. For some senior living communities, services such as shopping assistance, salons, or dining may be offered in addition to renting the apartment space.
Condos and Co-Ops
A condominium (“condo”) or cooperative (“co-op) is a multifamily property that resembles a traditional apartment community but is owned by its residents. Typically, each unit within a given property is individually owned rather than rented. Common areas and certain amenities may be shared by residents which requires oversight by a homeowners’ association or board. Under special circumstances, multifamily apartment properties may be converted to condominiums, requiring a more specialized appraisal to determine the property value.
Major Multifamily Appraisal Assignments
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