546 N Madison

The Broker Opinion of Value Reports that Williamson typically creates for their Clients provides an estimated value of the property based upon how a local developer would analyze and calculate what could be developed based upon the current zoning and restrictions, as well as the current market conditions, which then translates to an estimated value range that a sophisticated developer should be willing to pay for the property (also known as the residual land value).

For example for 546 N Madison, it was a family home that was held for three generations since the 1920s, and so when it came time to sell, the owner was contemplating developing it himself.

However after walking through the process with him, taking and doing the proper due diligence with the City, and then analyzing and underwriting the potential development costs and potential revenue and income of the property at different stages:

Stage 1 - selling the property As-Is

Stage 2 - selling the property with Ready to Issue (RTI) permits in place

Stage 3 - selling the property developing it yourself or with a joint-venture developer partner

…..the end result was to list the property As-Is, so that we could also assist the Clients with their 1031 exchanges.

See how we were able to help walk our client through this complex process below by getting a copy of this analysis and let us know what questions you may have!