Expert: Terrence Cullen - 10/6/2008

Question
I would like to find good published financial data for c-store investors (cap rates, ratios, etc).  I review appraisals for a community bank and we have one c-store "expert" who doesn't use market data to support his value conclusion.  I am hoping to find market data to check his data.  Any suggestions or resources you can offer will be greatly appreciated!  Thank you!

Answer
Linda,
  There are several sources of information concerning markets that I have used and continue to use, but most have curtailed their free market
stuff.

 Reis,Co-star,Trepp,Hendricks partners,Marcus & millichap are a few. Keep in mind the markets are in serious flux and comps will not be a valid indication of value or cap rates in fluctuating markets.

 I think that the loan amount's will be constrained by larger debt service coverage and lower LTVs until the market stabilizes. In the smaller markets where there just isn't enough data, I will estimate the value by determining an NOI, setting a DSC (between 1.20-1.45 depending on property type) and using (65-75 LOAN TO VALUE depending on property type.
 
 Market data and market comps are very useful, especially using market averages to determine median line item expenses, but each property is different and if the market sample isn't extensive defer to the historicals.

Good Luck, TC