Client

A Regional Commercial Bank providing acquisition + construction financing for Legacy Ventures (developer)

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Project Overview​​​

The Dillard House is a historic inn and restaurant at the gateway to the Blue Ridge Mountains in Rabun County, Georgia. Dillard House was born in 1794, when Captain John Dillard was awarded a land grant for his service during the American Revolution. In 1917, Carrie and Arthur Dillard welcomed their first guest, and the operation was family run until Legacy Ventures acquired the ±120-acre resort property in early 2024.

 

Legacy Ventures is in the process of a $40+ million redevelopment, with completion targeted for early 2027. The transformation includes a comprehensive renovation of all existing buildings, the construction of the 60-room Grand Lodge, and the addition of new treehouse and cottage units, increasing the room count from 96 to 156 guest rooms. Upon completion, the property will offer multiple dining experiences including the famous and fully renovated Dillard House Restaurant; a new restaurant offering in the Rock House; and the new Rabun Brewery and Doghobble Wine Tasing Room will border the newly renovated Oak Lawn outdoor gathering area. The property’s 11,000 square feet of meeting space will be fully renovated with expanded outdoor space, including a large central garden area with outdoor event space. On-site activities and wellness offerings will include The Spa at Dillard House, horse riding, a new resort-style outdoor pool and bar, modern fitness center, bocce courts, reimagined outdoor spaces throughout the extensive grounds, and a working production farm.

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Scope of Work​​

Our firm was engaged to appraise The Dillard House three times as the project evolved: 1) an initial appraisal in April 2024 supporting the bank's underwriting for Legacy Ventures' acquisition of the property and initial 128-room plans; 2) a follow-up appraisal two months later reflecting a revised 158-room plan with a new hotel building and relocated brewery; and 3) an update in April 2025 reflecting an expanded new construction component and additional upscale amenities.

 

Specific parameters of the engagements included the following:

• Developing opinions of value under three premises at each engagement:

  • "As Is": reflecting the property's condition first at acquisition, and later at successive stages of construction;

  • "Prospective As Complete" upon completion of the redevelopment;

  • "Prospective As Stabilized" following stabilization of the repositioned operation.

• Performing multiple valuation techniques including the Sales Comparison Approach and Income Approach, utilizing both Discounted Cash Flow (DCF) and Direct Capitalization methods.

• Developing a separate land valuation analysis for the complex, 12-parcel site totaling roughly 120 acres, several of which were acquired individually by ownership over time to support the expanded footprint of the resort.

• Inspecting the property and evaluating the scope, budget, and phasing of the renovation and new construction plan at each stage against ownership's evolving business plan.

• Analyzing the operating complexity of a multi-department resort, including multiple operated food and beverage outlets, a leased brewery and winery tasting room, a spa, a fitness center, an equestrian center, a production farm, and extensive event and conference facilities.

• Conducting a competitive market survey and benchmarking analysis to project post-renovation occupancy, ADR, and RevPAR performance against comparable upper-upscale resort and group-oriented properties in the region.

• Preparing a projected operating statement reflecting the property's numerous revenue streams.

• Analyzing local and state tax incentives associated with the property, including a finalized local sales tax rebate and a pending Georgia Tourism Development Act (TDA) incentive, and evaluating their treatment in the real property bundle of rights.

• Delivering USPAP- and FIRREA-compliant appraisal reports suitable for the bank's underwriting requirements across the acquisition and successive rounds of construction financing.

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Results​​

• Delivered full narrative appraisal reports to support Legacy Ventures' acquisition of the historic property in 2024 and its initial renovation plans.

• Performed two subsequent appraisals as the redevelopment plan evolved, tracking the proposed unit count growth from 128 to 158 keys and a shift toward a larger ground-up new construction component alongside the historic renovation.

• Provided “As Is” and prospective "As Complete" and "As Stabilized" value opinions at each phase, supporting the bank's underwriting for construction financing through completion and stabilization of the redevelopment.

• Provided independent, third-party market and financial analyses validating the repositioning plan's projected performance.

• Redevelopment is underway, with Legacy Ventures targeting completion in early 2027.

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