Adaptive Reuse

Banking.JPG

FACILITY TYPE
Banking
40,813 sf

 CLIENT DATA
Facility Cost: $1,385,311
Space Type: Resale
Addl. Savings: YES

SAVINGS IDENTIFIED:
$82,881

CLIENT IDENTITY

The client purchased this building, built in 1965, for approximately 20% of the building’s worth from the previous owner, the operating bank.  The bank wished to remain a tenant on the ground floor, and the new owner utilized floors 2-5 as white collar office share space for lease.

 

PROJECT SUMMARY

Located in a downtown district of a large city, separating out the value of the land was an important first step to deriving value, as land value was high. Due to the building’s age, a replacement cost new (RCN) had to be established. As the former regional headquarters of a mid-size bank, the finish level of all interior space was of the highest quality, and created great opportunity for accelerated depreciation. However, because the client purchased the building at a large discount, the benefit was limited by the discount from the RCN value. Additional savings for this client included Section 179, which has recently been expanded under TCJA. Had the business purchased this site at the current market value, savings would have reached approximately $500,000.