Appraisers took center stage in a Longmont, Colo., retail property controversy last week. The property in question is a Dillard’s. The Longmont Urban Renewal Authority (LURA) has filed to condemn the property to initiate a redevelopment and has valued the property at $3 million. The Dillard’s has other plans in mind, valuing the property at $6 million.
Larry Stark, president of National Valuation Consultants, took to the stand and noted the importance in not factoring in the potential of the redevelopment deal nor recent economic ups and downs. According to the Times Call, Stark “limited himself to recent sales comparisons -- no more than two or three years -- involving businesses of a similar size, type and setting. In a separate analysis, he compared lease properties to see what kind of income an investor could expect from the property.”
Stark arrived at $6.3 million.