In addition to commercial appraisals, we provide the following services to our clients:

Due Diligence

Commercial Property Inspections

Highest and Best Use Studies

Audit Reasonability and Sensitivity Testing

Specialized Services

Types of Market Studies Preformed:

LIHTC rental housing - Market rate rental developments - Government subsidized rental housing developments (HUD and USDA Rural Development projects) - Integrated multi-family and senior (Mixed developments) - Assisted living - Student housing - Condominiums - Single Family/Owner-Occupied - Subdivisions - Senior Housing - Congregate-care - Continuum of care - Commercial (Retail & Industrial)

A Rent Comparability Study (RCS) must be submitted with a Section 8 contract renewal. Because the RCS is submitted to HUD, it must meet specific requirements and guidelines. The Rent Comparability Studies are prepared in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP) and the supplemental standards of HUD Chapter 9. Market rents are defined and estimated in accordance with Section 9-7 through Section 9-13 of Chapter 9, and the reports are prepared in accordance with Section 9-14 through Section 9-16 of Chapter 9.

The need for real estate appraisals has become increasingly common in litigation proceedings. Considering today’s legal climate, to win settlements or court decisions involves a need for highly skilled professionals. Schnepf Ellsworth Appraisal Group LLC’s staff has tremendous experience in litigation support and expert witness services. Clients who have used our expert testimony services include government agencies, tax entities, financial institutions, legal and accounting firms and many other businesses.

We have been appraising HUD insured properties for the Phoenix HUD Office since 1988. The Multifamily Accelerated Processing (MAP) Guide, originally published May 17, 2000, was revised March 15, 2002. The MAP Guide is approved for use by MAP-approved Lenders and by HUD Multifamily Offices.

Lean Processing of Section 232 Projects

HUD developed its Lean process for Section 232 applications in 2008. Previously, loans were processed under Multifamily Accelerated Processing (MAP) or Traditional Application Processing (TAP) by the local HUD Field Office. It should be noted that non-Section 232 projects will continue to be processed under MAP or TAP.

We are experienced as appraisers for LIHTC properties. Given the use and income restrictions, these are very unique properties to appraise and the misuse or misapplication of data can lead to erroneous conclusion if the analysts is not well seasoned. As part of the Tax Reform Act of 1986, the United States Congress created the Low Income Housing Tax Credit (LIHTC) (IRC Section 42) Program to promote the development of affordable rental housing for low-income individuals and families. To date, it has been the most successful rental housing production program in Arizona, creating thousands of residences with very affordable rents. The Low Income Housing Tax Credit, rather than a direct subsidy, encourages investment of private capital in the development of rental housing by providing a credit to offset an investor’s federal income tax liability.

With an appetite for Phoenix’s hot market, out-of-state investors ended 2020 with a slew of big apartment purchases. Because housing is a necessity, multifamily will always be a secure investment, said Linda Fritz-Salazar, vice president and associate broker for Orion Investment Real Estate in Scottsdale. “Combine that necessity with our continued population growth and strong employment base, it is no surprise that investors flocked to Phoenix during 2020 to acquire investments in a secure and promising market,” she said. “It’s hard to determine what commercial real estate will look like for 2021 with a new administration in office, but I feel that multifamily will continue to be very strong.” January 8, 2021

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San Diego-based MG Properties Group plunked down $145.25 million for a 576-unit apartment community in Phoenix — the biggest multifamily acquisition of the year so far. Paul Kaseburg, chief investment officer for MG Properties Group, said he’s not done yet. “We are actively looking for more properties to buy there,” he said. MG Properties Group now owns nine properties totaling 3,944 units in the Valley. With more than 650 employees, MG Properties’ current portfolio includes more than 20,000 units valued at $5 billion in California, Washington, Arizona, Nevada and Oregon. “Phoenix continues to benefit from the migration to more affordable markets and has been a very strong market for us,” Kaseburg said. “Multifamily sales in metro Phoenix went out with a bang in 2020 and rang in the new year with buyers continuing to be relentless in their pursuit to find multifamily assets,” Fritz-Salazar said. “Our market continues to be one of the most attractive destinations for buyers, as our fundamentals remain strong and investors know they can expect excellent returns. I expect 2021 to be as eventful as last year.” January 29, 2021

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Phoenix topped the list of cities across the nation with the most eviction filings during the coronavirus pandemic, according to a new study by the United Way. The report, conducted by the Eviction Lab at Princeton University, shows Phoenix had 16,685 eviction filings in the past year during Covid-19, followed by Houston with 16,563 filings and Memphis, Tennessee, with 8,792 filings. Phoenix and Maricopa often are at or near the top of researchers’ lists when it comes to eviction numbers, said Scott Davis, public information officer for Maricopa County Justice Courts. “Whether our area ranks high or low in comparison to others is dependent on factors outside of court control: housing affordability, housing availability, the job market, eviction law, the legal climate for both landlords and tenants, etc.,” Davis said. “As a court system, our mission is to adjudicate all cases that come before us according to the laws and rules of the state.” March 4, 2021

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Arizona State University often touts its annual U.S. World News rating as the number 1 university in the world for “innovation.” But what does that really mean? How does this concept fit into Arizona’s economic outlook? Michael Porter, a Harvard professor who has dedicated his career to studying economic competitiveness, believes that “Innovation is more than just scientific discovery. Innovation stretches beyond science and technology, and includes all the activities involving the discerning of needs and the transformation of knowledge into commercial products, processes, and services. In advanced regions, prosperity rests heavily on the capacity for continuous innovation.” March 2, 2021

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California investors are driving transaction volumes in Arizona during the pandemic. California investors typically account for 30% to 40% of transaction volumes in the market, but recently, that number has increased to 50%. While the pandemic has impacted all markets, California investors continue to flock to business friendly markets, like California. “We attribute this recent surge to a widening disparity in business climate in Arizona versus California,” Ari Spiro, founding principal of Orion Investment Real Estate, tells GlobeSt.com. “Increased concern of regulation and taxation on investment properties is causing concern and Arizona’s historic pro-business environment has proven to be attractive to businesses relocating here as well as investment capital.” September 8, 2020

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The U.S. economy has roared back to life in 2021, with first-quarter growth set to defy even the rosiest expectations as another fresh influx of cash looms. Manufacturing data Monday showed the sector at its highest growth level since August 2018. That report from the Institute for Supply Management in turn helped confirm the notion among economists that output to start the year is far better than the low single-digit growth many had been predicting back in late 2020. The Atlanta Federal Reserve, which tracks data in real time to estimate changes in gross domestic product, now is indicating a 10% gain for the first three months of the year. The GDPNow tool generally is volatile early in the quarter then becomes more accurate as the data roll in through the period. March 2, 2021

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