The McEnery Company was engaged by a regional lending institution to provide an AS IS and Prospective Market Value of a proposed retail center with a recently secured lease to the first Trader Joes’s grocery store to enter the New Orleans market. Trader Joe’s Anchored Retail Center is a 45,000 square foot retail center comprised of three buildings which is scheduled to open in the 1st Quarter 2017. Our valuation experience with this property includes a 2015 appraisal at which point the subject property was a vacant development tract and a 2016 updated appraisal when the development was partially completed. In 2015 the scope of work entailed an as-is valuation of the vacant development tract as well as prospective market values upon completion and upon stabilization of the proposed retail center. In 2015 the property had secured Trader Joe’s as an anchor tenant and the valuation required a market rent and lease up period forecast for the remainder of the retail space. Both valuations required consideration of vacant residential lots and single family homes which were adjacent to the retail center and a part of the subject property; and our initial valuation proved to accurately target the eventually secured market rental rates not leased at the time of our first appraisal. The center is being developed on the former Tolmas Tract on Veterans Boulevard, arguably on the best retail locations in the MSA.
