What constitutes "special purpose properties"?

Special purpose properties are defined as properties that are designed for a specific use and often have unique valuation considerations. These properties typically do not have a general market demand or usage that can easily be substituted for other types of properties. Examples include schools, churches, hospitals, and amusement parks.

Due to their specialized nature, the valuation of these properties can be complex, often requiring expertise in the specific type of asset and an understanding of the unique factors that influence their value. This specificity can include things such as zoning regulations, the costs associated with converting the property to another use, and the presence of specialized equipment or fixtures that are integral to its intended function.

In contrast, options that describe broadly applicable properties, residential features, or commercial properties in prime locations do not capture the essence of special purpose properties, as they either suggest general applicability or fail to address the unique valuation complexities associated with properties designed for specific functions.