Two values, not one
German lenders report a second, conservative value beside market value. No Pfandbrief has ever defaulted. Should US lenders see a second number too?
Read it · Download the PDF 2 pages, 404 KB
Commercial real estate · For banks and credit unions
Independent commercial appraisal review and compliance.
We review commercial real estate appraisals for lenders. We do not produce them. Every review is written to USPAP Standard 3 and the Interagency Guidelines, and scored so your examiner can follow the reasoning. AI-GRS designated reviewers oversee the work.
20,000+reviews completed
50 states + PRreview coverage
AI-GRSdesignated review oversight
Flat feequoted before work starts
Who we work for
We support your appraisal function. We do not replace it.
Most of our clients already have a review process. Some run it in house under a chief appraiser. Others run it through credit. ARC fits either one.
Banks with a chief appraiser
Overflow and the files that do not fit.
Your chief appraiser stays in charge. We take the volume spikes, the backlog, and the property types your staff would rather not sign alone.
- Review overflow and backlog
- Special-purpose and hard-to-value commercial property
- Large, complex, and contested CRE collateral
Banks without in-house review
Your independent third-party reviewer.
An outside reviewer satisfies the independence requirement by structure. There is no internal reporting line for an examiner to question.
- Every commercial appraisal reviewed before the credit decision
- Review policy and checklists built to the Guidelines
- Examination and audit support
Services
What you can order from ARC
Each product has a defined scope and a flat fee. You know the price and the turnaround before we start.
| Desk Review | A written review of a single existing commercial appraisal, scored on a ten-point scale for USPAP and Interagency Guidelines compliance, with a stated conclusion on whether the value is supported. | Best forRoutine and overflow files |
|---|---|---|
| Credit Risk Addendum | A short independent memo attached to a single credit file. It states whether the appraised value is supported by the debt the loan will carry. | Best forLoan committee, workouts, problem credits |
| SBA Loan Review | A review of the appraisal behind an SBA 7(a) or 504 loan, tested against SBA's SOP 50 10 requirements as well as USPAP and the Interagency Guidelines. Real estate value separated from business value. | Best forSBA 7(a) and 504 lenders |
| HUD RCS Review | A substantive review of a Rent Comparability Study for a Section 8 contract renewal, under Chapter 9 of HUD's Section 8 Renewal Policy Guide, with a stated disposition. | Best forHUD contract administrators |
| Portfolio Scan | Scheduled review of appraisals on existing loans, with updated valuations where market conditions warrant. | Best forMonthly retainer, existing book |
| Review Policy | A written appraisal and evaluation review policy built to the Interagency Guidelines, with checklists your staff can run. | Best forNew programs and exam findings |
| Evaluations and Training | Evaluations where the Guidelines permit them. USPAP and review training for lender staff. | Best forBelow-threshold credits, staff development |
Every commercial property type
- Office
- Retail
- Industrial and flex
- Multifamily
- Hospitality
- Self-storage
- Medical and owner-occupied
- Mixed use
- Special purpose
- Land and construction
- Net lease
- Portfolios
Also reviewed when a credit file needs it: business enterprise, machinery and equipment, aircraft, vessels, and residential.
How it works
From your file to a finished review
A named reviewer owns the file from start to finish and stands behind it afterward.
- Send the report
Email the appraisal to chris@arcappraisers.com or use the contact page.
- Get a flat fee
We quote the fee and turnaround before any work starts.
- We complete the review
An ARC reviewer completes and scores it under AI-GRS designated oversight.
- We stand behind it
Examiner questions go to the person who did the work.
“An institution should establish reporting lines independent of loan production for staff who administer the institution's collateral valuation program.” Interagency Appraisal and Evaluation Guidelines, December 2010
Why independent review matters
An internal reviewer satisfies that requirement by policy. An outside reviewer satisfies it by structure.
Our principals have sat on the other side of the desk: on a financial institution's board and its loan and credit committee, on a state appraiser licensing board as chairman and head of investigations, and as CMBS lenders. We know what an examiner asks and what a credit committee needs.
Free tool for lenders
CRE loan sizing calculator
Size a loan at the lesser of DSCR, LTV, and debt yield. See the value the debt will support. Or start from a loan request and get the appraised value and NOI it needs. ARC median cap rates by property type are built in.
Sample resultExample
- Requested loan
- $4,500,000
- Value needed at 75% LTV
- $6,000,000
- NOI needed at 1.25x
- $487,895
- Supportable loan
- $3,919,904
7.25% rate, 25-year amortization, $425,000 NOI.
Insights
Collateral Observations
A quarterly read on what is moving collateral risk: rates, delinquencies, and what they do to a loan at maturity. Every illustration shows its inputs.
The retrade is the debt talking
A 60 bp rate move erased about $692,000 of loan proceeds on a $20 million apartment sale. The seller cut the price $600,000.
Read it · Download the PDF 3 pages, 442 KB
Cap rates have held near 7%. The cushion under them has not.
The cap rate spread over the 10-year Treasury is down to about 200 bps. Base case for 2027: up 35 bps. Built on 3,013 sales in ARC's own data, 2023 to 2026.
Read it · Download the PDF 4 pages, 627 KB
Questions
Appraisal review, answered
Short answers to the questions lenders ask us most.
What commercial property types does ARC review?
All of them: office, retail, industrial, multifamily, hospitality, self-storage, medical, mixed use, special purpose, land and construction, net lease, and portfolios. Commercial real estate is most of what we review.
What is an appraisal review?
A written opinion, developed under USPAP Standard 3, on the quality of another appraiser's work. It states whether the report is credible, complies with the applicable standards, and supports the value conclusion.
What qualifications should a reviewer have?
The Interagency Guidelines call for the education, experience, and expertise to judge the appraisal in front of them, plus independence from loan production. A state certification is a minimum. ARC reviews are completed under the oversight of review appraisers holding the AI-GRS.
Does ARC produce appraisals?
No. We review appraisals and evaluations prepared by others. Because we do not produce the appraisal, the review is independent of it.
Do you review anything besides commercial real estate?
Yes, when a credit file needs it: business enterprise, machinery and equipment, aircraft, vessels, and residential. We review them to the same standard we apply to commercial real estate.
How is a review priced?
Flat fee per review, quoted before work starts. No percentage of value. No fee taken from the appraiser.
Team
The people who do the work stand behind it
Every service line is supervised by a Designated Member of the Appraisal Institute.
Chris Baker
MAI, AI-GRS, FRICS, CCIM
Owner, Principal and Chief Appraiser
Thirty years in commercial real estate and business assets from every side of the transaction. He has appraised and reviewed commercial collateral, placed CMBS debt on it, closed it as a title agent, managed it, owned it, and brokered it. Every seat at the deal table but one: the lawyer's.
He served six years on the Alabama Real Estate Appraisers Board, one term as chairman and all six as head of investigations and complaints. As Chief Hearing Officer for the New Orleans City Council, he decided more than 12,000 tax appeals. Certified General Appraiser in Alabama, Florida, and Louisiana, listed on the ASC National Registry. English and Spanish.
Todd ThurmanMAI, AI-GRS
Designated Reviewer
Designated Reviewer
Angie FrostChief Operating Officer
Patrick MackinMBA
Senior Review Appraiser
Senior Review Appraiser
Dianne WordChief Financial Officer