The first complete multidisciplinary work
on fractional interest valuation
Dennis A. Webb
ASA, MAI, FRICS
What you get in 2.0
The real estate appraisal and business valuation professions have long struggled with valuing fractional interests in real property, especially since its multidisciplinary demands are so strong. After years of research and experimentation, Dennis Webb has pulled off a feat that has been sorely needed. This work offers two practical, eye-opening case studies that are a significant advance in fractional interest valuation methodology and cooperation between two almost completely separated professions.
The central theme is a comprehensive application of the income approach. This practice upgrade builds on decades of marketability discounting, public partnership trading, and option pricing, adapting each specifically for real estate entities. The resulting methodology, version 2.0, offers a more effective, flexible, and persuasive way to think about this practice niche.
No other book combines the real property appraisal and business valuation discipline technologies into one cohesive methodology. This book is your single, most comprehensive resource for mastering critical, multidisciplinary valuation challenges.
This book’s scope is much more comprehensive than its 2004 predecessor, Valuing Undivided Interests in Real Property: Partnerships and Cotenancies. In addition to basic case studies using the net asset value method, this transformed version now includes:
The long view, from fractional interest formation through long-term operation and the (inevitable) generational changes that can threaten an original legacy
The income approach as the key foundation for fractional interest valuation 2.0.
A REIT database and award-winning analysis of impaired control
A Management Risk Classification System for assessing the risk level posed by the property and its management
The extremely useful inside and outside concept that describes differences between the public worlds of real estate and securities markets and the private world of a subject partnership
A comprehensive Subject Interest Control Attributes System for assessing an interest’s ability to mitigate risk
A much-needed options pricing model adapted for analyzing short-term scenarios.
A chapter on special situations that covers many vexing valuation dilemmas
An extensive glossary for multidisciplinary term usage not available anywhere else