Intangibles Are the Real Thing
Probate and Property, September/October 2004, Volume 18, Number 5
By David C. Lennhoff
David C. Lennhoff is president of the Appraisal Division of Delta Associates, a Transwestern Company in Vienna, Virginia.
Usually when a hotel or nursing home is sold, the total assets of the business are transferred. In such cases, the real property rarely is sold separate from the other assets unless distress is involved. Often, however, appraisers are asked to value just the real property component of the total assets of a business, particularly if lenders will lend or condemning authorities will compensate only on the real property component, or if the real property is subject only to real estate assessment. In these situations—and others—appraisers may be asked to allocate the total assets among the various component parts. This determination involves separating the tangible real and personal property from the intangible assets.
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