Solutions Beneficial to Our Clients and the Community

At Rabin we specialize in finding solutions that not only work for the seller; but we also try to find the best solution for the buyer as well as the community where the business resides.  Such was the case with the Catalyst Paper Mill in Snowflake, Arizona that closed in August 2012.  Since the company did not want the facility to be used as a paper mill in the future, all of the equipment would need to be liquidated. 

Our job was further complicated by a landfill with environmental liabilities and 45 miles of railroad track that had contributed to the economic growth of the community impacted by the closing of the paper mill.  To provide solutions for all concerns, Rabin purchased the property that contained the paper mill, the equipment, machinery and vehicles, the 19,000 acres of grazing land, the landfill and the industrial acreage. 

We sold a portion of the land and the landfill to an adjacent neighbor as well as held a successfully auction for the equipment, vehicles, and machinery.  In addition, we worked with the town and the railroad to come to terms on an agreement that would continue to provide the town of Snowflake services for low-cost transportation of freight.  The final piece of the project was to work with the local water district to discover ways to maximize the 19,000 acres of land.   

This is one example of the Rabin difference.  By building on our decades of experience in equipment auctions and appraisals, we can specifically target manufacturing plants and facilities as well as the equipment and processing lines, and any surplus, new/unused, rebuilt, and used/second hand equipment.  Our comprehensive services include auctioning the equipment as well as repositioning the real estate.

Rabin is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Our operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Rabin Worldwide is headquartered in San Francisco with a European subsidiary office in Manchester, United Kingdom.

Is Your Business Closing? Helpful Tips for Liquidating

If you wish to close your business and have been unable to find a buyer, liquidating assets can offer a valuable solution.  Although before you do anything, you need to take the time to set up a plan, which should include consulting with your attorney and tax advisor.  Also, remember that if you are liquidating assets to satisfy creditors you may need to obtain their consent to do so. 

To get started, make a list of all the company’s assets such as equipment and machinery, office furniture, technical devices, vehicles and property that the business owns.  Include your inventory and intangible assets like business licenses, permits, patents, or trademarks as well as your customer list and business contacts. 

Make a note the condition of the asset, the age, maintenance history and repairs, and any warranty information along with taking photos.  Evaluate the condition of an item, and if anything is worn out or obsolete, it can be donated and used as a tax deduction or recycled.  If you have leased equipment, find out how much you still owe and whether it makes sense to buy it if you think you could sell it for more money than you owe. 

To establish the liquidation value of your assets, it is a smart idea to work with a qualified appraiser.  You are going to want a written liquidation value appraisal before you consider any purchase offers.  By using the services of an a company that specializes in asset recovery and disposition, they can assist with the sale as well as help to determine the best type of sale for your situation whether it is through an auction or liquidation.

Once you start to liquidate these assets, remember to keep good records of the marketing process, purchaser, and the amount of money you received.  You will need all of this information for your tax returns.

Rabin Worldwide is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Past auctions include names such as Hostess, Braniff Airlines, Montgomery Ward, and the Railway Express Agency.  Please contact us to discover how we can help you with our professional asset liquidation process.

Asset Valuation Process - Definition of Terminology

At Rabin, our professional machinery and equipment appraisal team has worked together for over 25 years and have extensive experience in nearly every facet of industrial equipment.  Their collective expertise has allowed them to complete hundreds of reports over the years that provide our clients with real-world obtainable value conclusions.  The following is our final blog discussing terminology used in the asset valuation process. 

Our definitions are from the American Society of Appraisers who define the following as a starting point based on standard appraisal theory.  ASA’s states the definitions may be expanded or refined as the purpose and function of an appraisal dictate, as long as the fundamental concepts are not altered. (Other than laws by a country, state, region, or regulatory agency that may take precedent)  

·         Salvage Value - An opinion of the amount, expressed in terms of money that may be expected for the whole property or a component of the whole property that is retired from service for possible use elsewhere, as of a specific date.

·         Scrap Value - An opinion of the amount, expressed in terms of money that could be realized for the property if it were sold for its material content, not for a productive use, as of a specific date.

·         Insurance Replacement Cost – An opinion of the amount of the replacement cost new as defined in the insurance policy less the replacement cost new of the items specifically excluded in the policy, if any, as of a specific date.

·         Insurance Value Depreciated – An opinion of the insurance replacement cost new less accrued depreciation considered for insurance purposes as defined in the insurance policy or other agreements, as of a specific date.

To discuss your machinery and equipment appraisal needs, please see our website for contact information.  We are more than happy to answer any questions you may have regarding your equipment appraisal situation.

In business for over 60 years, Rabin is an industrial auction and real estate investment company, with a focus on the acquisition and sale of industrial equipment and facilities around the world.  Rabin Worldwide is headquartered in San Francisco with a European subsidiary office in Manchester, United Kingdom.

Source:

Machinery & Technical Specialties Committee of the American Society of Appraisers, July 25, 2010

http://www.appraisers.org/Disciplines/Machinery-Technical-Specialties/mts-appraiser-resources/DefinitionsOfValue

More Terms Used in the Appraisal Process

At the Rabin Company we are a family-held industrial auction and real estate investment company that has a focus on the acquisition and sale of industrial equipment and facilities around the world.  This is our second installation of blogs dealing with terminology used by the industry for determining valuation in an asset-based lending or disposition process.

The American Society of Appraisers defines the following terms based on standard appraisal theory: 

·         Fair Market Value in Continued Use with Assumed Earnings - An opinion, expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts, as of a specific date and assuming that the business earnings support the value reported, without verification.

·         Fair Market Value in Continued Use with Earnings Analysis - An opinion, expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts, as of a specific date and supported by the earnings of the business.

·         Fair Market Value (Installed) - An opinion, expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts, considering market conditions for the asset being valued, independent of earnings generated by the business in which the property is or will be installed, as of a specific date.

·         Fair Market Value (Removed) - An opinion, expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts, considering removal of the property to another location, as of a specific date.

Our professional asset appraisal services provide an essential starting point for any asset-based lending or disposition process.   At Rabin we base valuations on our actual sales as well as sales values in the marketplace, and we consistently deliver asset values to banks and corporations that they know they can rely on.  

In addition to being specialists in providing companies with expert asset valuation and asset recovery services, we also run an in-house commercial real estate investment and management company. Our seasoned appraisers have completed hundreds of reports, providing our clients with real-world obtainable value conclusions.  Please contact us to learn more about our comprehensive services. 

Source:

Machinery & Technical Specialties Committee of the American Society of Appraisers, July 25, 2010

http://www.appraisers.org/Disciplines/Machinery-Technical-Specialties/mts-appraiser-resources/DefinitionsOfValue

Definition of Terms Used in the Asset Valuation Process

For more than 60 years, Rabin has been a family-held industrial auction and real estate investment company, with a focus on the acquisition and sale of industrial equipment and facilities around the world.  This is the first of a blog series that defines common terminology used by the industry. 

Our information comes from the American Society of Appraisers.  ASA states that the following definitions are the starting point for terms that are based in standard appraisal theory.  Furthermore while they “provide the fundamental value concepts; they are not the only acceptable definitions, since contracts or jurisdictions may dictate somewhat different philosophies.”  The ASA definitions are as followed:

·         Fair Market Value - An opinion expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts, as of a specific date.

·         Reproduction Cost New - The cost of reproducing a new replica of a property on the basis of current prices with the same or closely similar materials, as of a specific date.

·         Replacement Cost New - The current cost of a similar new property having the nearest equivalent utility as the property being appraised, as of a specific date.

·         Orderly Liquidation - An opinion of the gross amount, expressed in terms of money, that typically could be realized from a liquidation sale, given a reasonable period of time to find a purchaser (or purchasers), with the seller being compelled to sell on an as-is, where-is basis, as of a specific date.

·         Forced Liquidation Value - An opinion of the gross amount, expressed in terms of money, that typically could be realized from a properly advertised and conducted public auction, with the seller being compelled to sell with a sense of immediacy on an as-is, where-is basis, as of a specific date.

As leading industrial and commercial liquidators, Rabin has sold equipment assets in every trade sector and on almost every continent.  Our professional asset appraisal services provide an essential starting point for any asset-based lending or disposition process.   

At Rabin, our professional machinery and equipment appraisal team has been working together for more than 25 years—gaining extensive experience in nearly every facet of industrial equipment.  Our seasoned appraisers have completed hundreds of reports, providing our clients with real-world obtainable value conclusions.  Please contact us to learn more about our comprehensive services. 

Source:

Machinery & Technical Specialties Committee of the American Society of Appraisers, July 25, 2010

http://www.appraisers.org/Disciplines/Machinery-Technical-Specialties/mts-appraiser-resources/DefinitionsOfValue

Using Your Equipment and Machinery Assets as Collateral

Collateral is the property or other assets that a borrower offers to a lender to secure a loan, and will be forfeited and typically sold in the event of a default.  Very often businesses use assets such as equipment, machinery, buildings or inventory as collateral to reassure lenders that they have another source of repayment if the need should arise.  

When financing new business assets, they are in most cases automatically considered collateral until such a time that the loan is paid in full.  If the amount of equity you put toward the purchase of the new assets is considered insufficient, other assets may be required as collateral toward the debt. 

According to the U.S. Small Business Association, “Certified appraisals are required for loans greater than $250,000 secured by commercial real estate. The SBA may require professional appraisals of business and personal assets, plus any necessary survey and/or feasibility study.”  They further state that when real estate is being used as collateral, banks and other regulated lenders are required by law to obtain third-party valuation on transactions of $50,000 or more.

For any SBA loan, all owners are required to make a personal guaranty that consists of 20% or more of the business along with any other individuals who hold key management positions. They state that, “Whether a guaranty will be secured by personal assets or not is based on the value of the assets already pledged and the value of the assets personally owned compared to the amount borrowed.”

This is where the services of a company such as Rabin are invaluable by offering accurate third-party valuations to a business.  Our asset appraisal services provide an essential starting point for any asset-based lending or disposition process.  For over 60 years, we have expertly assisted companies with obtaining working capital by valuing assets promised as collateral to asset-based lenders and investors. 

Rabin is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Rabin’s operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Past auctions include names such as Hostess, Braniff Airlines, Montgomery Ward, and the Railway Express Agency. 

Source:

Small Business Association https://www.sba.gov/content/collateral

Rabin’s Auctions are Run Extremely Well

Rabin auctions are fun and exciting and offer bidders not only an opportunity to bid on great machinery and equipment at a fraction of the original price but to network with others in the industry.  However in order for our auctions to run smoothly and efficiently, it takes a team of proficient, experienced professionals to ensure that always happens.

 

In addition to the preparations that are required to get auction items ready to sell, we also have work to do to get an auction site ready before the sale takes place.  Generally our crew starts preparing the site the day before but it depends on the size of the auction. For bigger sales, the site preparation may require a few days. 

If the auction is scheduled to take place in the factory, it is cleaned and everything is double-checked to make sure it is ready to go.  The next step is to set-up the technology that will be used during the sale.  Rabin’s auctions require state-of-the-art audio visual equipment, screens, a stage, a podium for the auctioneer as well as tables and chairs set-up for the bidders. 

To simultaneously run the live auction site and the Internet bidding, we utilize screens, computers, and PA systems to professionally deliver the auction proceeding to our bidders.  Additionally we need to set-up high-speed Internet connections and phone services to allow online customers to bid over the Internet or to call-in a bid. 

Our decades of experience and a proven track record of providing successful auction and liquidation services have allowed our clients to put their trust in us.  Please check out our website to learn more information about upcoming auctions.  If you wish to sell surplus items, please contact us and we will provide you with a free, confidential consultation. 

Rabin is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Rabin’s operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Past auctions include names such as Hostess, Braniff Airlines, Montgomery Ward, and the Railway Express Agency.  

Professional Auctions and Liquidation Sales at Rabin

As leading industrial liquidators and auctioneers, we have been offering both sellers and buyers with exceptional auction and liquidation services for over 60 years.  You will find we sell industry equipment and machinery that encompasses a wide range of industries. 

   

An example of one of our recent auctions included a Major Producer of Fresh and Frozen Bakery Products that was held in partnership with the Gordon Brothers Group and Capital Recovery Group.  The online bidding took place at bidspotter.com and the live auction site was at the Dobake Oakland Facility in Oakland, CA. 

The types of equipment included a complete cracker/biscuit production line with rebuilt sigma type tilt mixer, APV pre-sheeter, Sasib gauge rolls, BP 1 meter x 200' direct fired oven, Illapak right and left hand wrappers, Hayes cartoner and case packer.  The equipment and machinery is suited for quick serve restaurants, food service outlets, retailers, schools, warehouse club packs, convenience stores, and vending applications throughout the USA.

As for our liquidation services, we are currently listing high-quality construction equipment that is available for immediately sale.  The items are located at the Port of Mobile, Alabama.  Examples of the equipment include several 2006 Komatsu Haul trucks along with several Caterpillar Haul trucks.  Also the listing includes two Hitachi EX1800 Excavators that are located at Port of Jamaica. 

  

At Rabin we have sold equipment assets in every trade sector and on almost every continent.  For buyers we encourage you to take a look at our website to see all of our current liquidation items or to find out information regarding upcoming auctions.  If you need to sell surplus equipment, our services can help you to realize maximum value.  Please contact us for a free, confidential consultation. 

Rabin is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Rabin’s operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Past auctions include names such as Hostess, Braniff Airlines, Montgomery Ward, and the Railway Express Agency.  

An Environmentally Responsible Way to Recycle Equipment

It may not have occurred to you but auctions are an environmentally-friendly service.  They offer an efficient way to keep functioning machinery and equipment out of landfills, and instead, get it into the hands of companies who need it.  Large, well-established companies can get rid of their older equipment in a cost-effective manner by selling it to make room for new, up-dated pieces.  Smaller companies or start-ups benefit by having an opportunity to purchase equipment they could never afford to buy brand-new. 

At auction a new company may be able to buy a complete production line or purchase their first pieces of manufacturing equipment to get the business started.  Sometimes companies only use the equipment until they have the means to purchase new or newer used equipment.  This cycle of companies selling off their older equipment to purchase new or newer used equipment keeps it out of landfills while it is still operational.  Often a piece of machinery may be sold several times over before it has outlived its usefulness.

   

Even once a piece of machinery is no longer operational or becomes obsolete, auctions provide a method for selling unusable equipment for scrap metal.  The metal is extracted from the machinery and then sold to refineries to be recycled into new products or building materials, thus continuing the recycling process.

We invite you to visit the Rabin website and take a look at our current auction listings that are comprised of a wide range of industries.  Also be sure to check back frequently as we are always updating our inventory of equipment and machinery.  In addition if you have surplus equipment to sell, please contact us for a free confidential consultation.

Rabin is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Rabin’s operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Past auctions include names such as Hostess, Braniff Airlines, Montgomery Ward, and the Railway Express Agency.  

Great Deals on Equipment Can be Found at Auctions

If you are a business owner and want to expand operations or need better-quality equipment, you know it is not easy to come up with the type of capital required to buy brand-new.  This is why you should look into purchasing used equipment at auction or through liquidation sales.

   

Manufacturing equipment is different from high-tech devices such as computers as it is built to last and can easily run for decades.  Furthermore just because a company decides to sell used equipment does not necessarily mean it has outlived its usefulness.  It may be a case of downsizing or needing to make room for up-dated equipment.  In some cases, a company may be going out of business and must sell.  Whatever the reason, it presents a perfect opportunity for small businesses such as yours to come in and buy up equipment that would be out of reach if it was brand-new. 

Frequently used equipment is from large corporations that have the ability to invest the type of capital that is required to purchase brand new, state-of-the-art equipment.  Many times they routinely replace their equipment once newer models become available with improved capacities, faster output and new engineering designs.  This does not mean that the older equipment is past its prime; on the contrary, it should have plenty of life left to admirably perform many more years on your factory floor. 

   

We encourage you to let an auction company expertly assist you in the process.  At Rabin our auctions allow smaller or entrepreneurial companies just starting out to have the opportunity to purchase high-quality, working equipment for a fraction of the original purchase price.  We provide a superior buying and selling experience with the most accurate product descriptions, high-quality photos and unmatched customer service.  Ask our buyers—Rabin auctions are organized, professional and fun!

Rabin is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Rabin’s operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Past auctions include names such as Hostess, Braniff Airlines, Montgomery Ward, and the Railway Express Agency.  

RABIN 24/7 - Our All Online Auctions

As a multi-generational, family owned asset recovery, valuation, and sales company, we provide financial solutions for a wide range of clients.  One of the many services we offer is Rabin 24/7 Online Auctions that utilize the most up-to-the-date technology to bring customers a safe and efficient online auction site. 

Rabin 24/7™ is our proprietary, timed auction system in where all bidding is conducted online.  The extremely powerful system has the capability to automate the bidding process in real time.  However as one of the leading companies in the industry, we do not rely entirely on our state-of-the-art technology, irrespective of the efficiency of our system.  To ensure the trustworthiness of our auction site and to protect sellers and buyers, we employ a team of highly experienced professionals that oversee the process and keep it running smoothly.  We understand no technology in the world can take the place of excellent customer service and that hands-on attention is vital to maximizing client returns and providing the optimal bidding experience. 

During each and every auction, our expert staff monitors the system to make sure everything is on track.  We especially pay attention once lots are starting to close.  You will not have to worry if you make an accidental bid or miss-type an entry as we are ready to correct all errors.  At Rabin we react to each and every problem quickly and effectively.

Please see our website or contact one of our sales representatives if you are interested in participating in one of our auctions or wish to sell items.  Our unique combination of diversified experience and unparalleled professional expertise sets Rabin apart.

Rabin is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Rabin’s operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Past auctions include names such as Hostess, Braniff Airlines, Montgomery Ward, and the Railway Express Agency.  

Looking for Machinery and Equipment Financing?

At Rabin, we have specialized in offering our clients a wide range of exceptional services for over 60 years.   Along with our excellent reputation as an industrialauction and real estate investment company, we also offer businesses help with financing essential machinery and equipment. 

When your company decides to finance, it allows you to purchase new equipment to keep up with the demands of a growing business or to use the equity in equipment you already own to access working capital. Our machinery and equipment based financing programs offer businesses with a financial leverage but an inadequate cash flow the opportunity to move forward with an asset based secured term loan that provides the required liquidity.

To underwrite your business a loan, we take our years of experience and use that knowledge to place a value on your industrial assets and real estate that is based on our actual sales or sales from the marketplace.  We have the advantage of being able to accurately evaluate your assets so you will not require a third party to appraise the supporting assets to provide a fair value.  Our seasoned industrial equipment and machinery appraisers are more than qualified to do the job and have been together for over 25 years providing clients real world-obtainable value conclusions. 

Furthermore Rabin can offer financing secured by machinery and equipment in turnarounds and other situations that may not get approval at a more conservative commercial bank.  You will find many of the terms on our website but we encourage you to contact one of our financial representatives by filling out an online form to find out more about our machinery and equipment based financing programs. 

Rabin is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Rabin’s operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Past auctions include names such as Hostess, Braniff Airlines, Montgomery Ward, and the Railway Express Agency.  Please contact us to discover how we may assist with your asset liquidation process.

Industrial Real Estate Properties for Sale

At Rabin Worldwide we currently own and manage approximately 1,625,000+ square feet of industrial real estate throughout North America.  As a privately held firm with low debt, we have the capacity and flexibility to act quickly on projects of interest.  Our focus is on distribution markets that exhibit strong demand characteristics, possess high barriers to entry or other value-add opportunities.

Drawing on extensive experience, we target manufacturing plants and facilities that include equipment and processing lines, including surplus, new/unused, rebuilt, and used/second hand equipment.  We expertly handle all component of a sale from auctioning equipment and machinery to repositioning the real estate.

To give you an idea of the scope of our real estate business, we currently have a couple of listings for large industrial complexes.  The Capital Commerce Center (CCC) in Sacramento County, CA offers up to 1.3 million square feet of industrial space for sale or lease and is located on 129 acres.  The site features 24/7 security, abundant parking with space for 250 trailers, 50 loading docks and 25 grade doors.  The existing space includes dry warehouse/distribution, production/food preparation and freezer/cooler, and can be divided into smaller units for tenants requiring less square footage.

With an unparalleled infrastructure, the CCC can cater to the Food and Beverage industry as well as to manufacturers and distributers.  Attributes include a heavy un-metered water supply, heavy power supply and sewer capacity.  

Our other industrial listing at the moment is the Beech Bottom Plant in West Virginia and offers approximately 360,000 square feet of improved industrial property.  It includes approximately 90 acres of usable and relatively flat industrial land that is ready for development. In addition there is a potential for barge loading as the usable property is adjacent to the river.  There is also a wastewater treatment plant on-site that can be restarted. 

We invite you to take a more comprehensive look at these two properties listed on our website and check to see if we have anything new.  Furthermore please contact us if you have an industrial property to sell.    

Rabin Worldwide is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Rabin’s operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Past auctions include names such as Hostess, Braniff Airlines, Montgomery Ward, and the Railway Express Agency.  

Prepare Beforehand for a Professional Appraisal

If you are thinking about selling surplus machinery or equipment or need to determine the value for asset-based lending, or to provide a “selling tool”, you will want the services of a professional appraiser.  However before you contact an appraiser, there are some steps you can take to help improve the value of your equipment. 

One of the first things you need to do is to clean and if necessary paint the items to maximize the appraised value.  Additionally make sure items are fully functional and take care of any repairs.  The time to do all of this is before you bring in the appraiser.  

The next step is to put together a detailed list of the equipment and machinery to be appraised, include descriptions, photographs, general condition and any repair records if applicable.   Add to that all of the information regarding the purchase of the items such as receipts, owner’s manuals, warranty certificates, and serial numbers.

Now you are ready to look for an appraiser that has specific experience with your industry and is familiar with the type of equipment and machinery you need appraised.  The appraisal will base valuations on actual sales and take into consideration factors such as: the age, condition and maintenance of the items, market conditions and demands, geographic location, specialized design and/or modifications, technological obsolescence, and industry trends/economic fluctuations. 

At Rabin, our professional machinery and equipment appraisal team has been working together for more than 25 years and has extensive experience in nearly every facet of industrial equipment.  We offer clients appraisals that are exceptionally thorough and provide real-world obtainablevalue conclusions.

Rabin is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Rabin’s operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Past auctions include names such as Hostess, Braniff Airlines, Montgomery Ward,and the Railway Express Agency.  

The Art of Appraising Real Estate

At Rabin, we are a family-held industrial auction and real estate investment company with a focus on the acquisition and sale of industrial equipment and facilities around the world.  We acquire, re-develop and operate industrial assets in North America, and are experts in the appraisal of real estate as well as equipment and machinery assets. 

In order to list real estate to sell, finance, and obtain property insurance or to do an investment analysis, a professional appraisal is done to determine the value.  So what steps are used to appraise property?  Accurate commercial and industrial property appraisals are based on many concepts and require a more thorough process than is typically done on most residential property.  The following is but a few of the particulars that are taken into account in a commercial or industrial appraisal.

 

A seasoned appraiser must consider the highest and best use of the property, long-term industry trends and fluctuations, and market competition.  Also research needs to be done to learn if there are any legal restrictions pertaining to the property such as zoning ordinances and eminent domain, easements or encroachments.  Along the same lines an appraisal must determine if there are any environmental factors connected to the industrial use that may impact the value down the road. 

In addition more traditional factors are compiled such as comparable sales, replacement costs, location of the property and proximity to infrastructure such as railroads or highways. An appraisal will also factor in the value of the property based on the income it produces such as in rental properties and apartment buildings. 

Rabin currently owns and manages 1,625,000+ square feet of industrial real estate in North America.  The Rabin Management Company (RMC), a private real estate investment and asset management company based in San Francisco, California, currently owns and manages 1,000,000+ square feet of office, industrial, multifamily and retail commercial real estate in the Sacramento, San Francisco Bay area, and Michigan.

Rabin is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Rabin’s operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Past auctions include names such as Hostess, Braniff Airlines, Montgomery Ward, and the Railway Express Agency.  Please contact us to discover how we may assist with your asset liquidation process.

How Does Depreciation Affect Your Equipment’s Value?

For accounting purposes, depreciation is defined as a decrease in the value of an asset as a result of wear and tear, age, or obsolescence.  Thus most assets lose value or depreciate over the course of their lifetime and need to be replaced once they reach the end of their lifecycle.  However when machinery and equipment assets are appraised, depreciation is handled in a slightly different manner. 

The NEBB Institute, who among other things certifies professionals in the art of machinery/equipmentappraisals, explains that depreciation has a different meaning to machinery and equipment appraisers.  They add that, “To appraisers, depreciation is the estimated decrease in value of an asset from its initial purchase price.  The estimated decrease is based on a number of criteria, such as physical, functional, and/or economic factors.”  In other words it may not matter what the actual age is of a piece of equipment, but rather if it is operational and still used in the industry.  Finally the most important fact that impacts the value of the asset is, “How strong is the market demand”?

By having a professional appraisal done before you try to market your surplus equipment, will help to ensure you get the maximum value for your assets.  Additionally there are some circumstances where it is not only a good idea but may be required for insurance purposes, mergers and acquisitions and in orderly or forced liquidations. 

Another reason that certified appraisals make sense is they are more readily accepted by financial institutions and corporations as well as the IRS and the courts.   Keep in mind that appraisals are defined by factors such as replacement cost for new or used equipment or machinery, fair market value, geographic location and specialized design and/or modification.  Other considerations that impact value are technological obsolescence and industry trends as well as economic fluctuations. 

 Sources: nebbinstitute.wordpress.com/

Rabin Worldwide is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Rabin’s operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Past auctions include names such as Hostess, Braniff Airlines, Montgomery Ward, and the Railway Express Agency.  Please contact us to discover how we may assist with your asset liquidation process.