The McEnery Company was engaged to complete an appraisal assignment for a portfolio of locally owned (c-store) properties located throughout the New Orleans metropolitan market area. The purpose of the engagement was to provide the client with going-concern valuations of each location, recognizing the integrated nature of the real estate, trade fixtures, and operational business components typical of c-store assets.
The scope of work required an allocation of total going-concern value into three distinct components:
- Real Estate Only – land and improvements, valued based on market sales of comparable c-store and retail properties, with adjustments for location, site utility, building size, age, and condition.
- Furniture, Fixtures & Equipment (FFE) – fuel dispensers, refrigeration units, shelving, POS systems, and other operational fixtures, valued via market extraction and/or depreciated replacement cost methods.
- Business Enterprise Value (BEV) – the intangible component representing the going-concern profitability of the store operations, analyzed using income-based approaches incorporating in-place sales volumes, fuel margins, in-store merchandise revenues, and operating expenses.
The analysis considered each location’s trade area dynamics, competitive positioning, and operational performance, while reflecting broader market trends impacting c-stores in the region, such as evolving consumer demand, fuel price volatility, and increasing operational costs. The final results provided the client with site-specific valuation allocations suitable for financing, acquisition, or strategic asset management purposes.