Appraisal: Q&A with Hunneman's Jerry Manfra, MAI
Appraisal and Consulting is the critical element in identifying both the problems and opportunities in the real estate market. The Hunneman team works with a broad range of public and private sector clients, representing all segments of industry. We provide independent, confidential opinions, formed by carefully analyzing facts and trends that accurately determine project feasibility and provide timely data to help our clients make the best decisions. To further understand more about our services and to get to know us, Hunneman sat down with our Executive Vice President of Appraisal, Jerry Manfra.
Q: How did you get started in CRE Appraisal?
A: After attaining a BS in electrical engineering, I was commissioned in the United States Navy as a Naval Special Warfare Officer. When my tour of duty was up, I worked in the semiconductor and data networking sectors until I earned my MBA. After that, I started a residential real estate appraisal company and eventually focused my attention on commercial real estate. I was fortunate to work with some great mentors, earn the MAI designation from the Appraisal Institute, earn the right of way appraisal certification (R/W-AC) from the International Right of Way Association (IRWA), and have an extensive network with my peers.
Q: What is your scope of services?
A: We offer a wide range of appraisal and consulting services. Emphasis has been on services for litigation support, estate settlement, partner buy-outs, landlord/tenant negotiations, property acquisition/disposition, and just compensation due to eminent domain/condemnation actions. Recently, we have completed many replacement cost new assignments for management and owner’s association for insurable values.
Q: Can you give us a rough timeline of the process, from initial contact to completion of the appraisal?
A: It depends on the complexity and scope of the assignment and can vary from less than a week to three weeks or more.
Q: Have you seen any significant shifts in appraised values since the interest rate hike campaign/economic shift started?
A: As independent appraisers, we report the market and see the same trends being reported by market participants. But not all shifts are the same. For example, we recently updated an assignment for a 50-acre parcel subdivision originally completed two years ago. Though unit values showed an increase, the increase in infrastructure cost and risk (depicted by higher market discount rates), the overall value of this parcel decreased.
Q: How is the majority of your work split?
A: We have expertise in most property types but have seen an increase in vacant land and redevelopment site assignments—probably 40% to 50% of our work. The other 50% to 60% of our work is predominantly split between multifamily and industrial properties with some retail and office assignments.
Q: Who are the majority of your client base?
A: Most of our work is sourced from municipalities, state and federal organizations, property owners or management groups, and attorneys.
Q: You work with a lot of Unions, Universities and Municipalities. Can you tell us about a past project and what was most challenging?
A: We completed an assignment for a federal organization with a property located in the downtown Boston area. It was a large parcel with site improvements that underutilized the site. The highest and best use of this property was for redevelopment. However, a good amount of the subsurface rights had been conveyed to others as a result of the Big Dig, and how that impacted future development was a substantial part of our development of an opinion of market value.
Similarly, and at a much smaller scale, a Massachusetts town engaged us to determine the value of a private way that should have been conveyed to the town once development was completed. Since the original developer had retired and the underlying land had been sold a few times, estimating the remaining rights of the right of way, as well as a couple of utility easements, was the crux for that assignment.
Q: What sets you/Hunneman apart from others?
A: As the largest privately held full service real estate firm in Boston, reputation is paramount. It means more to us that the appraisal group provides its clients with a well-supported work product so that the client can make the best decision moving forward.
Q: What is the best way to get in contact with you?
A: Call us at 617.457.3298 or e-mail me at jmanfra@hunnemanre.com
For more information please contact:
Jerry Manfra, MAI, Executive Vice President | jmanfra@hunnemanre.com
