This product is a recording of the Appraisal Institute webinar that was conducted on March 13, 2014.
Once the Appraisal Institute confirms your payment, you will receive an e-mail containing a link to the webinar recording.
Please note: The interactive features of the webinar (e.g. poll/survey questions and the final evaluation) are NOT available in the recording. Appraisal Institute continuing education credit is NOT available for viewing the recording.
Current Issues Regarding Appraisals of Senior Housing and Long-Term Care Properties
Date: March 13, 2014
Duration: 2 hours
With the elderly population growing rapidly, there is increasing demand for the appraisal profession to perform valuation and consulting services on existing and proposed independent living, assisted living memory care, and skilled nursing facilities. This webinar will discuss critical valuation issues for these property types. The valuation issues that will be discussed are relevant to clients and appraisers alike who will gain a better understanding of the integral components of senior housing and long-term care properties.
This webinar will include the following topics:
- What is being appraised - assets or the entire ownership entity?
- Analyzing the competitive market:
- Market saturation analysis
- Identifying new competitive supply
- Forecasting occupancy and payor mix with changing supply and demand
- Absorption estimates
- Issues in the development of the Cost Approach
- Should the land value include the value or expense of costly entitlements?
- Treatment of soft costs – operating deficits during initial absorption, inclusion of developer fees and incentives, pre-opening costs
- Issues in developing the Sales Comparison Approach
- Developing and confirming the sales
- Value drivers and elements of comparison
- Quantitative and qualitative analysis and sale price adjusting
- Income Capitalization Approach
- Pricing structures - private and government payments
- Operating expense tips
- Income capitalization issues – trailing vs. pro forma and consistency
- Partial interests valuation issues
- Leased fee and leasehold
- Fractional interest issues with entrance fee properties
- Allocation of value techniques
- Cost approach and the treatment of soft costs
- Income separation - do typical REIT lease coverage requirements reveal a market-accepted manner of allocation? Is the discontinued HUD proprietary earnings still relevant for allocation purposes?
- How do the license, certificate of need and/or a Medicaid provider number play into intangible value?
- Share your ideas on this hot topic
James K. Tellatin, MAI, Principal, Tellatin, Short & Hansen, Inc., and Sante Partners