Chicago Chapter/ Appraisal Institute 205 W. Wacker Drive

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205 W. Wacker Drive Suite 202 Chicago, IL 60606

Chicago Chapter/ Appraisal Institute www.ccai.org

Dear Chicago Chapter Colleagues, Please join me in congratulating our newest MAI and AI-GRS designated members in 2019:

• Adam K. Zimmerman, MAI

• Douglas Duda, MAI

• Nicholas Masella, MAI

• Charles Brigdan, MAI • David Ibarra, MAI • Nikolas R. Rex, MAI

• Lorraine M. Apiecinoek, AI-GRS

• Julie A. Broman, AI-GRS

Education

As previously stated, my first goal as President was to focus on our educational offerings with a concentration on career development, so that our members can be more successful in building their expertise and advancing their careers. In 2019, the members of the Chicago Chapter will have access to the some of the newest and most applicable classes the Appraisal Institute has to offer. Below are the classes being held at the Chicago Chapter through August:

• Basic Appraisal Principles (July 15-18)

• General Income Approach/Part 1 (July 15-18)

• General Appraisal Site Valuation & Cost Approach (July 22-25)

• Basic Appraisal Procedures (July 29-August 1)

• 15 Hour National USPAP Course (August 5-6)

• Supervisory Appraiser/Trainee Appraiser Course (August 7)

• Il Portion of the Supervisor/Trainee Seminar (August 7)

• Real Estate Finance, Statistics and Modeling (August 26-27)

For a complete list of classes through year end visit our newly designed website: WWW.CCAI.ORG

INSIDE THIS ISSUE

President’s message .................. .1

Newly designated members ...... 2

Special events 2019 ................... 4

CE Deadline ............................... 5

CFMAP — Update ..................... 6

Scholarships .............................. 7

Upcoming education & events .. 8

2020 Installation Celebration ... 8

Appraisal Institute Education ... 8

A message from LA.................... 9

Executive Director search ......... 9

2020 Chapter Leadership ......... 10

Job opportunities ...................... 11

Sponsors .................................... 11

Reflection................................... 12

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Chicago Chapter/ Appraisal Institute July 2019 Newsletter

Newly Designated Members

The Chicago Chapter is proud to announce the following newly designated MAI Members.

Adam K. Zimmerman, MAI

Douglas V. Duda, MAI

Nicholas Masella, JR., MAI

Charles Brigdan, MAI

David Ibarra, MAI

Nikolas R. Bex, MAI

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Newly Designated Members

The Chicago Chapter is proud to announce the following newly designated AI-GRS Members.

Lorraine M. Apiecionek, MAI, AI-GRS

Julie A. Broman, AI-GRS

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Special Events 2019

March 27, 2019—Real Estate Conditions Seminar The annual “Condition of the Chicago Real Estate Market” took place at the Chapter Education Center with over 100 in attendance. The presenters were well received.

Geoffrey Kasselman, Newmark Knight Frank – “A Tale of Two Halves” George Ratiu , NAR – “Economy & Commercial Real Estate: a 10-Year Anniversary” Jack Siragusa, CBRE – Retail Market Presentation Kiser Group – Multi Family Housing Market Presentation Michael Berkshire, City of Chicago – “Strengthening Chicago’s Sustainable Development Policy” Ted Mandigo, TR Mandigo & Company – Chicago Hotel Outlook

Once again attendees received a wide-ranging examination of conditions in the Chicago real estate market from some of its most active market participants.

Kevin Byrnes, MAI was the chair for this year’s Conditions seminar. February 7, 2019—Fairness, transparency and professionalism to the property tax system” Fritz Kaegi, Cook County Assessor was the Chapter’s guest speaker for this luncheon which took place at Wildfire — Chicago. Key points of the seminar focused on how his office will modernize the Cook County Assessor‘s System. Takeaways included the County’s plan to implement a property valuation model that will be open, fair and generate less regressivity, how underwater mortgages, vacancy rates, foreclosure and short sales impact home values, best practices for data collection, potential legislation addressing concerns of how commercial properties are assessed, how the county plans to improve assessment methodologies and how an overhaul is needed for improvement in communication. June 25, 2019—”Golfonomics” Our member and active president Richard DeVerdier organized the well-attended Golfonomics Seminar which offered 4 hours of continuing education. The Seminar was led by Laurence A. Hirsh, CRE, MAI, SGA who boasts a very impressive track record and is responsible for valuing over 3,000 golf courses nationwide. Partnering this event with the annual golf outing proved to be successful as over 25 attendees sat for the Seminar and record numbers came out for the golf outing. The Seminar began focusing on the origins and history of golf and the key role management plays. Discussions of market and property analysis and how food and beverage revenue and expenses affect profitability. It also focused on the strengths, weaknesses, opportunities and threats to golf course facilities. This seminar then dove into Highest and Best Use of golf courses, the dynamics of buying and selling golf courses, the development of new facilities and renovation of existing facilities. As can be expected with any appraisal seminar, the discussion then led into the approaches to value and the value reconciliation. Discussions of allocation of Real, Personal and intangible properties took place and the unique consideration that must be considered when valuing a golf course property, golf communities, along with common mistakes made when valuing a golf course property. The seminar left its attendees ready to hit the links with their new found knowledge. Golfing will never be the same in the eyes of the educated pups.

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Special Events 2019

June 25, 2019—Annual Golf Outing

Fresh off the heals of the Golfonomics Seminar, eager chapter members and friends took to the links in the 4 person scramble event. Thanks to the hard work of Dan Berenschot and Sam Louise record numbers were achieved. The weather could not have cooperated more and course conditions were the best in years. With unlimited refreshments and a free dog at the turn the stage was set for the lowest recorded score in event history.

As is par for the course, dinner, drinks and door prizes provided a time for colleagues and friends to reunite and share stories. With Dan Berenschot as the MC handling everything from gift cards and lady’s golf balls to Yeti coolers and Callaway drivers; the door prizes were plentiful. There is still a lot of head scratching on how Sam Louise turned down the lottery ticket basket that produced only $14 in winnings and walked away with the most coveted prize of the night a 55’ Samsung OLED TV and Richard DeVerdier managed to get his hands or feet on the highly fashionable Electric Scooter.

There were many behind the scenes volunteers who made this event spectacular. Thanks to all.

Continuing Education Deadline

The Illinois continuing education deadline was June 30, 2019.

• CE completed after this deadline must provide evidence of completion and an “administrative fee”

of $100 per credit hour.

• Course completion evidence will not be considered if the Administrative Fee is unpaid.

• Credit hours taken or submitted before the renewal deadline may not be applied to a future renewal

cycle.

The Illinois License Renewal Deadline is September 30, 2019.

• Licensees who fail to submit satisfactory evidence of CE compliance or fail to pay “administrative

fees” will be unable to practice and may be subject to disciplinary proceedings.

• Licensees who fail to renew are unable to practice; practicing without an active license is unlicensed

activity that is subject to prosecution.

Reminder: 28 total hours of approved CE per renewal cycle; Must have completed a

7 hour USPAP course by June 30; All qualifying CE, must be submitted by June 30.

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CFMAP—Update

In late 2016 the Appraisal Institute unveiled a new Chapter Financial Management and Administrative Policy (CFMAP) that would have the national office handle all the bookkeeping, accounting, and bill payment functions for chapters; the policy as then formulated also required chapters to pool their reserves with National. This was met by considerable pushback from the Chicago Chapter as well as larger chapters around the country, and as a result, National pulled back and left the matter open for commentary. In mid-2018 National announced that the pooling of reserves would be optional, not mandatory; but joining CFMAP would become mandatory with all chapters to be in the program by the end of 2020. As a chapter of the Appraisal Institute, we will comply. We have had a number of conversations with Beata Swacha, the CFO of the Appraisal Institute, and Beata has also met with Chapter officers and our Executive Director, L.A. Anderson. We have made, and will continue to make, all appropriate efforts to see that the program is implemented to our advantage in 2019, in order to realize the promised benefits of greater efficiency and the freeing of our staff’s time to devote to more member services. As of November 2018, 24 chapters have transitioned to CFMAP with 9 more in the pipeline. According to a recent survey by the Appraisal Institute, 72% of executive directors and chapter officers responding to the survey rated CFMAP as “very good” or “good.” 75% of chapter treasurers report time savings or efficiencies from using CFMAP. The main hurdles seem to be the time required to learn the new systems, the perceived complexity of the instruction manuals, and learning the computer interface, which seem to be typical in adopting a major new computer-driven system. Due to the size of our chapter, National will take us in alone, without any other chapters during our intake period. The main perceived critical concern from chapters that have not entered CFMAP yet (cited by 35%) is “loss of control over chapter finances.” Under CFMAP, chapters are required to establish their own budgets and make their own decisions over which vendors to hire, which expenses to incur, what kind of education to run, and so forth; CFMAP as put forth by National is basically a clerical system. Of course, we will keep you up to date as we move into the implementation of this system.

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Scholarships

The Chicago Chapter of the Appraisal Institute provides $500 scholarships to foster diversity, to encourage trainees to become candidates for designation, and to assist candidates for designation in taking courses needed for the MAI, SRA, AI-GRS, or AI-RRS designations. The Appraisal Institute also has an Education Trust that helps members with research and other initiatives. These scholarships are summarized below. $500 Diversity Scholarship This scholarship program was developed to encourage and assist Minorities and Women who have shown intent to become a Candidate for Designation of the appraisal Institute or pursue the Appraisal Institutes SRA or MAI, AI-GRS or AI-RRS designations. Application due dates are March 1st or September 1st. $500 Real Estate Trainee Appraiser Scholarship This scholarship program was developed to encourage and assist licensed Real Estate Trainee Appraisers who have shown intent to become a Candidate for Designation of the Appraisal Institute. Application due dates are March 1st or September 1st. $500 Crommelin Scholarship The Crommelin Scholarship is available to Candidates for Designation who belong to the Chicago Chapter of the Appraisal Institute that are pursing either the MAI or SRA designation. Jacques B. Crommelin was a Member of the Appraisal Institute, holding both the MAI and SRA designations. Mr. Crommelin believed in the value of education and had great respect for the education programs provided by the Chicago Chapter after completing his appraisal education in Chicago. The Crommelin Scholarship, funded posthumously, was established to assist in the efforts of the Chicago Chapter in continuing to provide quality education to appraisers and help associates along their designation paths. Application due dates are March 1st or September 1st. $500 Schroeder Scholarship The Schroeder scholarship program was developed to encourage and assist members of the Chicago Chapter of the Appraisal Institute who are Candidates for the MAI Designation. James J. Schroeder, MAI was a member of the Chicago Chapter who devoted many of his years teaching appraisers. During his tenure, he held numerous committee chair and officer positions including President of the Chicago Chapter in 1979. He also received awards for his excellence such as, the Heritage Award (1997), the Skip Del Campo Award (2000) and the Gregory Opelka Award (2003). The Schroeder Scholarship was developed to honor Mr. Schroeder in continuum. Application due date is March 1st.

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Upcoming Education & Events

Remaining in 2019 we have over 23 education offering at the Chicago Chapter. Please go to https://www.ccai.org/education for a complete listing and links for registration.

CCAI 2020 Installation Celebration

In January of 2020 we will install our 2020 President, Ken Konrath, MAI, our other chapter officers, directors, regional representatives and alternative regional representatives.

The celebration will include hors d’oeuvres, a cocktail hour or two, a three course meal and an open bar.

CCAI’s Installation Celebration is the premier annual event which honors the Chapters leadership team

who serves its 900+ members. Enjoy an evening of networking with some of the most respected,

influential leaders and decision makers in the Chicagoland area.

Special honorees include Scholarship award winners, President’s award winners, the Scipio “Skip” del

Campo Award, as well as Distinguish Service Awards.

More details on this celebration to come.

Appraisal Institute Education

Online Education: Learn at your own pace anytime, anywhere. Top-notch Appraisal Institute courses and seminars come straight to your desktop with online education! Learn from any computer anywhere, whenever you have time. It’s easy, convenient and a great way to get the education you want. Check out the current course listing now!

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https://www.ccai.org/education

https://www.ccai.org/education

http://www.appraisalinstitute.org/education/online-education-view_programs.aspx

http://www.appraisalinstitute.org/education/online-education-view_programs.aspx

https://www.appraisalinstitute.org/education/online-education/

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A Message from LA

Dear CCAI Membership,

The time has come….. but I wanted you to hear the news from me first hand.

I will be leaving CCAI at the end of January, 2020 after 31 happy and productive years.

I want to express my sincere gratitude for the excellent support that you all have given me over the years, and for the friendships we have shared.

The success of the Chicago Chapter is derived from many sources and from the efforts of many people who genuinely care about the organization.

A special Thank You to all of my Past Presidents who I had the honor of working with over the years.

Most of all, I will miss all of the conversations which were creative and stimulating; sometimes rambling, BUT always entertaining.

I wish each one of you success in your business and personal life and know, I can be reached if you need me! I am very sad to leave. However, it’s time to start a new chapter in my life. Please remember, I will never forget any of you and I thank you from the bottom of my heart for being my friends.

My best to you all

L A

Search for new Chapter Executive Director

The Chicago Chapter Officers are in the process of searching for a new Executive Director to fill LA’s shoes. In an effort to make the transition as seamless as possible, the new Executive Director will work along side of LA until her departure in January 2020.

LA officially announced her retirement at the beginning of May, and the Chapter Officers announced their search for a new Executive Director in mid-May. More details will come as a selection is made.

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2020 Chicago Chapter Officer, Directors, Region Representatives and

Alternate Region Representatives

OFFICERS:

President - Kenneth Konrath, MAI

President Elect - Dave Binz, SRA

Vice President: - Bruce Darata, MAI

Treasurer - Matt Magdziarz, MAI

Secretary – Cameron Rex, MAI

DIRECTORS:

Alexandra Meade, MAI [2022]

Peter Poulos, MAI - [2022]

Karen Emerle, SRA - [2021]

Pete Helland, MAI – [2020]

Ivette Collins, MAI - [2021]

Jim Kutill, MAI – [2020]

Susan Ulman, MAI - [2022]

John Urubek, MAI – [2020]

James Smith, SRA - [2021]

REGION REPRESENTATIVES:

Stacey Nadolny, MAI – [2021]

John O’Dwyer, MAI – [2021]

Andrew Richter, MAI - [2020]

Jonathan Mitchie, SRA – [2021]

James Erik Smith, SRA – [2020]

Robert Becker. MAI, SRA – [2020]

Mark Pollach, C4D – [2020]

Maureen Sweeney, SRA – [2021]

Kimberly MacPherson, C4D -[2021]

Kenny Konrath, MAI - President [2020]

David Binz, SRA – President Elect [2020]

ALTERNATE REGION RESENTATIVES:

Geri Bresnahan - [2020]

Doug Jirka, MAI - [2020]

Mike Roth, MAI – [2020]

Leon Sweet, MAI [2020]

Anthony Uzemack Jr., C4D – [2020]

Mary Wagner, MAI – 2020]

Steve Shockley, MAI, SRA – [2020]

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Job opportunities & Sponsors

Are you looking for a new job opportunity? View new openings on the CCAI website:

https://www.ccai.org/jobs-board.php

You may also send your resume to the Chapter office to be given out to possible employers. If you are interested,

send your resume to: [email protected]

Are you hiring appraisers? You may post positions for FREE by going to the jobs board link above, or you may

contact L.A. Anderson ([email protected]) with your ad.

Thank you to our 2019 Corporate Sponsors:

BBG

CBRE

Collins Real Estate Advisors LLC

Cushman & Wakefield

IRR-Chicago

JLL

The Herbert H. Landy Insurance Agency

NPV Advisors

Praedium Valuation Group

Lee & Associates

Valbridge Property Advisors

Thank you to our 2019 Member Sponsors:

David W. Binz, SRA

Michael Hobbs, MAI, SRA

If you are interested in becoming a sponsor or sponsoring an event, please go to: https://www.ccai.org/

sponsors#becomesponsor or contact L.A. — [email protected]

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https://www.ccai.org/jobs-board.php

mailto:[email protected]


https://www.ccai.org/sponsors#becomesponsor

https://www.ccai.org/sponsors#becomesponsor


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Reflection

As we all settle-in and start our morning, 20oz coffee in hand (possibly our second on the day), checking emails first for client review comments, second for new engagement RFP’s, we might have a wondering thought that goes something like this – “another day, another dollar (gees, same fee as it was in 1987), why I am still in this business ?”

Consider this.

….who has not driven past a former engagement property and wondered how it’s doing, did that proposed lease commence yet

….who has not driven past an odd property – second-story retail with first floor office – and wondered how you would approach that as an appraisal assignment

….who has not struggled to find sale comparable sales and after many, many hours researching, uncovers a perfect comp which bring a tidal wave of elation

….who has not watched Amazon grow and looked for ways to link the Amazon effect to your retail and industrial valuation engagements

….who has not gone through a non-traditional property valuation, spent 300% of budget and frustration, yet looked back proudly on the report product

….who has not gone the extra mile for a client even though you spent more time that originally scoped

….who has not gotten client review comments, groaned at the length and depth, yet actually appreciated the insight and perspective offered

….who has not, deep down, enjoyed many of the CE classes

….who has not driven past a property and looked at their (husband, wife, significant other, children….or stranger) and commented “I did that appraisal”

….who has been at the closing table when a refinance, or a borrower’s purchase-and-sale is closing – none of us - but our work product was there right alongside the survey, title report, mortgage document, and closing statement

It is part of us. Parts that we love to hate but that stubbornly hang on and keep up in the game.

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Documents

Chicago Chapter/ Appraisal Institute 205 W. Wacker Drive