A regional lender originally engaged The McEnery Company to opine on the value of this Downtown bank headquarters to assist in asset disposition, and then we were subsequently engaged by another lender interested in financing an eventual acquisition of the property. The property is a five-story, 61,837 square foot office multi-tenant office building in downtown Lafayette with a ground floor bank branch. A portion of the building’s interior was contaminated with asbestos which contributed to a low overall tenant occupancy. We developed an appraisal that provided both an as-is market value under the hypothetical condition there was no environmental hazard present as well as an additional value premise in which cost to cure estimates were utilized to determine the market value following remediation efforts. As a part of this valuation, a detailed income approach was developed that incorporated a discounted cash flow analysis in order to account for the time necessary to bring the property back to a stabilized occupancy.
