Situated in the historic Treme neighborhood, the G.O. Mondy School was vacant for over a decade when The McEnery Company was engaged by a regional lender to determine the As-Is and Prospective Market Values for a proposed 35-unit low income housing development. The development was eligible for State and Federal Historic Tax Credits as well as LIHTC. Additionally, all 35 units were approved for government subsidy by the Housing Authority of New Orleans. Our analysis included the sales, cost and income approaches, with our income approach based on rent restricted and subsidized rental rates. We determined the prospective upon completion and prospective upon stabilization market values, as well as the prospective upon stabilization market value inclusive of the tax credits. Within our appraisal, our market area analysis highlighted recent developments in the market area to gauge the stabilized occupancy potential for the property. The McEnery Company has completed numerous appraisals of proposed conversions of historic school buildings to a re-purposed use as apartments, and we remain on the cutting edge of the measurement of this ongoing trend in our marketplace.
