The City of New York condemned a multifamily building in Brooklyn. The property was subject to rent stabilization and both experts found the highest and best use was for continued use as a multifamily dwelling complex. Both appraisers used the sales comparison (market) approach to valuation. Then the valuation process went screwy. The City made a massive deduction for alleged critical repairs on the subject property and applied an Akerson format capitalization formula which accounts for both the cost and availability of mortgage financing. An approach never used in valuing… read more
September 21, 2021