Challenging Assignments
The following are examples of particularly complex appraisal problems that Closser Associates has solved in recent years. Finding accurate answers to these problems required significant effort, time, and knowledge of the market and appraisal techniques.
Windermere Point, Mackinac Island, Michigan
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Windemere Point is the only undeveloped parcel of commercial waterfront land in the City of Mackinac Island. Currently utilized as an open space park, the privately owned parcel is a choice hotel site. Land values in downtown Mackinac Island are quite high, especially for water frontage. The property owner wanted to protect the site with a conservation easement, and Closser Associates was asked to value the site both before and after the dedication of the conservation easement.
Challenges included a lack of land sales in the downtown area and the impact of a conservation easement on a parcel with high demand for development. The assignment included a detailed highest and best use analysis, including the number of hotel units that could be developed on the site, a study of the site value per permitted hotel unit in the local market, and a study of various sites that sold subject to conservation easements with the correlation between the impact on value of the conservation easement and the development pressure on the sites.
Waterfront Condominiums, Marquette, Michigan
A former railroad warehouse with views of the Marquette harbor was proposed to be redeveloped to 26 luxury condominiums. This unique development presented many challenging valuation problems including the feasibility of selling units that were to be priced above anything yet built in the market. Our assignment involved a market study of condominium developments in Marquette, including the number of units built and sold in each of the past 10 years as well as current sales, offers and proposed projects. Using this information as well as sales of new high-priced single-family residences that would compete with the project, we were able to predict the rate of absorption of the units as well as establish probable sale prices.
Dead River Basin, Marquette County, Michigan
This appraisal involved more than 30 miles of water frontage encompassing the entire Dead River Basin in Marquette County, Michigan. The property was owned by a forest resource company and had been leased for many years to waterfront cottage owners at nominal rents. An effort to raise rents to market levels precipitated an agreement to sell the land to an association made up of the nearly 400 cottage owners.
We first appraised all of the leased waterfront land and more than 5,000 acres of backlands. This appraisal required an extensive search for large waterfront land sales throughout the Upper Great Lakes region. We then appraised each of the 400 cottage sites, as vacant. The sites included a variety of water frontage types, with differing access, zoning, and utility services. We researched sales of waterfront lots throughout the area and developed a systematic methodology for handling the mass of subject property and sale information.
Fishtown, Leland, Michigan:
This historic fishing village in Leland, Michigan on the shore of Lake Michigan is a cluster of fish shanties originally owned by commercial fishermen that had been acquired and preserved by the last surviving fisherman. The shanties were occupied by the remaining fishing operation and by a variety of tourist-oriented shops and eating establishments. Listed on the National Register of Historic Places, Fishtown was to be purchased by a local historic-preservation organization. The land on which Fishtown was located was very valuable, but there were significant zoning and permitting restraints on potential development. Highest and best use was a significant issue. The appraisal involved research throughout the Midwestern and New England states for similar historic fishing villages, of which five were identified and researched.
K.I. Sawyer Air Force Base, Marquette County, Michigan
Closser Associates was the prime contactor for the appraisal of the entire K.I. Sawyer Air Force Base during its closure process. We led a group of appraisers from three firms who split the workload of appraising all buildings as well as runways and large tracts of vacant land. Months of property inspections were followed by extensive market analyses as well as supply/demand and highest and best use studies. Finally, we produced a report consisting of four volumes which described in detail the vacant land, the individual buildings, our market analysis, valuation process and value conclusions for the entire base.
Ferry Dock, Mackinac Island, Michigan
The Arnold Transit dock is the largest ferry dock on Mackinac Island and has been in continuous use since the late 1700s. Reconstructed many times over its long life, the dock, which had several warehouses on it, was 650 feet long and 85 feet wide, constructed on wood pilings with a concrete deck. The State of Michigan wanted to acquire one side of the dock in order to expand the adjacent marina. This created problems for the docking and maneuvering of the ferries that carry a majority of the one-million-plus island visitors to and from the mainland, because there was limited maneuvering space on the remaining side of the dock. That side of the dock was also used for freight operations. The company also owned an adjacent dock and the assignment involved the feasibility of moving freight operations to the second dock (which would have to be rebuilt). Other problems also had to be addressed. Research focused on sales and leases of ferry docks.
Marquette County Airport, Michigan
What is the market value of a county airport if it is no longer needed as an airport? This is a very challenging appraisal question which first requires answers to other questions: What is the highest and best non-airport use of a relatively large terminal building, of several hangars and other industrial-type buildings, a landing strip, and a large tract of vacant land? To answer these questions we made detailed market analyses which included studying the physical and financial feasibility of converting the passenger terminal to an alternative use.
102 W. Washington St. Suite 224 
Marquette, Michigan 49855 (906)228-9133 bclosser@closserassociates.com