Argianas Appraises a Biodiesel Processing Facility

We believe every real estate valuation we perform is special; however, unique assignments are our favorites. That was indeed the case when our team was called to assess a biodiesel processing facility that produces ethanol fuel. (Quick Refresher: Special purpose real estate assets are properties that are limited in use due to their unique design, layout or business-specific related purposes for which they serve.)

What is it?

This expansive property consisted of several hundred acres of underlying land, with improvements associated with biodiesel processing and with a series of buildings constructed in multiple stages from 2000-2015.  For this property, features included farm and industrial production/processing buildings, specialty equipment and storage tanks, and intermodal (ground, rail and riverbarge) staging facilities.

triple threat

Special property valuations require an understanding of industry-specific needs served by such properties, consideration of economic/supply and demand conditions are critical to a proper analysis.  And the contributory value attributed to such a property’s transportation mode (waterways, highway, and/or rail) cannot be overlooked or marginalized.

Our subject property, proximate to interstate highway linkage, was situated along a major inland barging waterway, with river barge infrastructure improvements that included heavy reinforced concrete pavement, seawalls, river dolphins, and underground and surface-covered conveyor belts and pipelines that delivered product to and from the waterway’s loading docks/slips. And with its heavy industrial rail service, this property’s shipping capabilities couldn’t get much better.

some alternative thinking

Properly constructed biodiesel processing real estate protected processing equipment from weather elements.  Key to the valuation process is market-supported quantification of physical, functional and external obsolescence, as applicable, and our valuation team also considered property tax abatements, industry trends and economic conditions, along with market-area demographics.

bright futures

Often the biggest difficulty in the work we do is simplifying what at first glance seems complicated. Parsing out various components, identifying unique value determinants, and properly analyzing market value determinants are factors that make up the Argianas valuation.

Argianas and Associates has over 30 years of specialized valuation experience that was utilized to create an accurate, all-inclusive appraisal for their client. If you have a unique, special purpose property that requires appraisal or consulting services, or if you have questions about the valuation process, don’t hesitate to contact our experts.  Call or email us to learn more about how our services can satisfy your specialty valuation needs.  Join our mailing list to receive our e-newsletter featuring case studies, industry events, and news.