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Valuation of 44 Acres of a Former
Industrial Site
Location: Western Michigan
Client Needs:
In the mid-2000s, RECI was hired
by a major national appliance manufacturer to
determine the market value of five parcels of land
totaling 44 acres on the former manufacturing
facility site that the company operated between
about 1940 and the mid-1980s. Several years
after the plant closed, a partnership was formed
between the manufacturer and public and private
concerns which developed a comprehensive land
use plan that was implemented in the early 2000s.
The plan called for a 500+ acre residential, golf,
recreational and waterfront community featuring a
wide range of amenities, including a marina village
and riverwalk, town center with restaurants and
shops, health and fitness center, deep-water
marina, with a four-star hotel and spa, miles of
recreational trails and rivers, and acres of parks
and green space. The manufacturer was to donate
the five parcels to the host city as part of their
contribution to the site’s redevelopment.
Why RECI:
RECI was engaged because of the
experience of its principals and senior staff in
analyzing and valuing raw land, mixed use
developments and redevelopment projects on a
nation-wide basis. In fact, RECI’s principals have
considerable experience performing acquisition,
due diligence, and valuations on large residential,
commercial and special purpose properties,
including shopping centers, office, industrial,
residential condominium projects, residential
subdivisions, apartments, golf courses, hotels and
other property types. RECI maintains an in-depth
understanding of the market for these property
types and drivers of demand.
Solution:
RECI worked with the manufacturer and
the developer, preparing an appraisal on parcels of
the land that was to be developed with a marina,
commercial space and single family residential
dwellings. RECI studied the market for retail,
office, residential and recreational land uses to
ascertain the parcels’ highest and best uses and
integration into the master plan.
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