C Conley Real Estate Appraisals, Inc. - Jones and...
Transcript of C Conley Real Estate Appraisals, Inc. - Jones and...
Conley Real Estate Appraisals, Inc. 321 Ohio Street, Upper Suite 1, Terre Haute, Indiana 47807 Phone and Fax: (812) 235-4576 E-Mail address: [email protected] December 11, 2006 Mr. Kurt Jones Jones & Sons, Inc. 1400 Springhill Road Terre Haute, Indiana 47802 RE: Real Estate Appraisal
Jones & Sons, Inc. Property 1400 Springhill Road Terre Haute, Indiana 47802
Dear Mr. Jones: In accordance with your request, I have personally inspected the above captioned real estate to determine an estimate of Market Value for the purpose of determining a sales price. My estimate of Market Value, in this particular instance, is predicated upon the Sales Comparison Approach to value. By comparing the subject property with other properties of the like kind, and analyzing it with sales as documented through the Terre Haute Area Association of Realtors Multiple Listing Service and area brokers, it is my opinion that the subject property would have an Estimate of Market Value as of November 27, 2006 of
TWO HUNDRED NINETY SEVEN THOUSAND FIVE HUNDRED DOLLARS
($297,500) If you should have any questions, please feel free to contact my office at your convenience. Respectfully submitted,
Brian F. Conley, GRI Indiana Certified General Appraiser
State Certification Number: CG 69100221
BFC:tlf File #06112102
C
REAL ESTATE APPRAISAL
Jones & Sons, Inc. Property 1400 Springhill Road Terre Haute, Indiana 47802 Prepared For: Mr. Kurt Jones Jones & Sons, Inc. 1400 Springhill Road Terre Haute, Indiana 47802 December 11, 2006 Prepared By: Brian F. Conley File # 06112102
Conley Real Estate Appraisals, Inc. 321 Ohio Street, Upper Suite 1, Terre Haute, Indiana 47807
Phone and Fax number: (812) 235-4576 E-Mail Address: [email protected]
C
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1400 Springhill Road, Terre Haute, Indiana Page 2
TABLE OF CONTENTS
Cover Page Table of Contents..................................................................................................................................................2 Purpose of the Appraisal....................................................................................................................................19 Intended Use of Report ......................................................................................................................................20 Property Rights Appraised................................................................................................................................20 Effective Date of Value.......................................................................................................................................20 Inspection Date ...................................................................................................................................................20 Date of Report.....................................................................................................................................................20 Exposure Time....................................................................................................................................................20 Appraisal Development and Reporting Process ..............................................................................................21 Description of Real Estate Appraised ...............................................................................................................21 Description of Real Estate Appraised ...............................................................................................................21 Description of Real Estate Appraised ...............................................................................................................22 Identification of Property ..................................................................................................................................22 Three Year History.............................................................................................................................................22 Zoning, Flood Plain, and Census Tract ............................................................................................................22 Flood Plain Map .................................................................................................................................................24 Site Data ..............................................................................................................................................................25 Plat Map ..............................................................................................................................................................26 Description of Improvements ............................................................................................................................27 Highest & Best Use .............................................................................................................................................29 Summary of Analysis and Valuation ................................................................................................................29 Sales Comparison Approach .............................................................................................................................29 Three Year History.............................................................................................................................................34 Three Year History.............................................................................................................................................46 Three Year History.............................................................................................................................................48 Comparable Sales Summary .............................................................................................................................52 Plat Map ..............................................................................................................................................................53 Conclusion...........................................................................................................................................................54 Cost Approach to Value.....................................................................................................................................55 Income Capitalization Approach ......................................................................................................................55 Assumptions and Limiting Conditions .............................................................................................................56 Certification ........................................................................................................................................................59 Qualifications of Appraiser................................................................................................................................60
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JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
NOVEMBER 27, 2006
VIEW: Front view of the office & showroom building looking north across Springhill Road
VIEW: West side view of the office & showroom building looking east from South 14th Street
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JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
NOVEMBER 27, 2006
VIEW: Rear or north side view of the office & showroom building
VIEW: Rear or north side view of the office & showroom building
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JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
NOVEMBER 27, 2006
VIEW: East side view of the office & showroom building
VIEW: Reception area in the office & showroom building
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JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
NOVEMBER 27, 2006
VIEW: Showroom
VIEW: Showroom
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JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
NOVEMBER 27, 2006
VIEW: Showroom
VIEW: Private office
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JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
NOVEMBER 27, 2006
VIEW: Storage room
VIEW: Employee break room
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JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
NOVEMBER 27, 2006
VIEW: Storage room
VIEW: Unheated storage building, south side view
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JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
NOVEMBER 27, 2006
VIEW: Unheated storage building, south side view
VIEW: East side view of the unheated storage building
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JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
NOVEMBER 27, 2006
VIEW: North side view of the unheated storage building
VIEW: North side view of the unheated storage building
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JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
NOVEMBER 27, 2006
VIEW: View of the outside storage yard
VIEW: View of the outside storage yard
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JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
NOVEMBER 27, 2006
VIEW: Interior view of the unheated storage building, former kiln
VIEW: Interior view of the unheated storage building
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JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
NOVEMBER 27, 2006
VIEW: Interior view of the unheated storage building
VIEW: Interior view of the unheated storage building
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JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
NOVEMBER 27, 2006
VIEW: Interior view of the unheated storage building
VIEW: Street view looking east along Springhill Road
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JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
NOVEMBER 27, 2006
VIEW: Street view looking west along Springhill Road
VIEW: View of the 1 Acre lot located north of the building improvements looking east from South 14th Street
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JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
NOVEMBER 27, 2006
VIEW: View of the 1 Acre lot located north of the building improvements looking east from South 14th Street
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SUMMARY APPRAISAL REPORT This is a Summary Appraisal Report, which is intended to comply with the reporting requirements set forth under Standards Rule 2-2 (b) of the Uniform Standards of Professional Appraisal Practice for a Summary Appraisal Report. As such, it presents only summary discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser’s opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser’s file. The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated below. The appraiser is not responsible for unauthorized use of this report. CLIENT: Mr. Kurt Jones Jones & Sons, Inc. 1400 Springhill Road Terre Haute, Indiana 47802 APPRAISER: Brian F. Conley
Conley Real Estate Appraisals, Inc. 321 Ohio Street, Upper Suite 1
Terre Haute, Indiana 47807 SUBJECT: Jones & Sons, Inc. Property 1400 Springhill Road Terre Haute, Indiana 47802
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PURPOSE OF THE APPRAISAL
The purpose of this appraisal is to provide the
appraiser’s best estimate of the market value of the subject
real property as of the effective date. Market value is
defined by the federal financial institutions regulatory
agencies as follows:
The most probable price which a property should bring in
a competitive and open market under all conditions requisite
to a fair sale, the buyer and seller each acting prudently and
knowledgeably, and assuming the price is not affected by undue
stimulus. Implicit in this definition are the consummation of
a sale as of a specified date and the passing of title from
seller to buyer under conditions whereby:
1) buyer and seller are typically motivated;
2) both parties are well informed or well advised, and
acting in what they consider their own best interests;
3) a reasonable time is allowed for exposure in the open
market;
4) payment is made in terms of cash in US dollars or in
terms of financial arrangements comparable thereto;
and
5) the price represents the normal consideration for
property sold unaffected by special or creative
financing or sales concessions granted by anyone
associated with the sale.
(Source: Office of the Comptroller of the Currency under 12 CFR, Part 34, Subpart C-Appraisals, 34.42 Definitions {f}.)
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INTENDED USE OF REPORT
This appraisal is intended to assist the client, Mr. Kurt
Jones of Jones & Sons, Inc., in determining the market value
of the subject to help determine a sales price.
PROPERTY RIGHTS APPRAISED
The property rights appraised, for this appraisal report,
are those of fee simple estate. Fee simple estate is defined
as "absolute ownership unencumbered by any other interest or
estate, subject only to the limitations imposed by the
governmental powers of taxation, eminent domain, police power
and escheat."1
EFFECTIVE DATE OF VALUE: November 27, 2006
INSPECTION DATE: November 27, 2006
DATE OF REPORT: December 11, 2006
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APPRAISAL DEVELOPMENT AND REPORTING PROCESS On November 21, 2006, the client engaged the appraiser to
perform a real estate appraisal on the subject property. The
client has purchased another property and intends to move the
business to the new location. The client intends to sell the
subject property. The client wants the appraisal to help
establish a possible sale price for the property. The
appraiser met the client at the property on November 27, 2006.
In preparing this appraisal, the appraiser inspected the
subject site and both the exterior and interior of the
improvements. Information on improved sales was gathered,
confirmed, and analyzed and the Sales Comparison Approach was
applied.
Per prior agreement with the client, the appraiser did
not use the Cost Approach or the Income Approach to value.
Because these approaches would not generally be considered
meaningful in appraising a property of this type, the
appraiser believes the primary approach to value is the Sales
Comparison Approach. This Summary Appraisal Report is a brief
recapitulation of the appraiser’s analyses and conclusions.
Supporting documentation is retained in the appraiser’s file.
1 The Appraisal of Real Estate, The Appraisal Institute, 11th Edition, 1996, Chicago, Illinois, p. 137
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DESCRIPTION OF REAL ESTATE APPRAISED
Identification of Property
According to the Vigo County Assessor's office, the
subject property is vested in the name of Jones & Sons, Inc.
The subject property is made-up of one two parcels. The short
legal descriptions used by the assessor's office are as
follows:
103-09-10-252-007: Prt W Side SW NE, 10-11-9, 2.610 AC. 1400 Springhill Road.
103-09-10-252-023: C F Hilton Sub, Lot 1, 10-11-9, 1.00 AC. No common street address.
Three Year History
The current owner has owned tax parcel 103-09-10-252-007,
uninterrupted, since 1999. Tax parcel 103-09-10-252-023 was
purchased from Hilton on September 22, 2003 for $12,500. The
total property has not been and is not currently for sale.
The use of the property has not changed over the past three
years. The client is intending to sell the property.
Zoning, Flood Plain, and Census Tract
Effective as of November 22, 1996 all properties in Vigo
County except the City of Terre Haute are covered by the
Unified Zoning Ordinance for Vigo County, Indiana.
According to the code, the subject property is zoned M-1
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or Light Industry District. The subject’s current use as a
concrete block sales and warehousing business is a permitted
use under the county zoning classification.
According to the National Flood Insurance Program Federal
Emergency Management Agency Flood Map No. 180263-0070B the
property is in zone AO or is in the 100 year flood plain. The
location within the flood plain does not have a negative
affect on the market value.
The 2000 census tract number for the subject property is
0107.01.
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FLOOD PLAIN MAP
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Site Data
The subject site is made up of two tax parcels located on
the northeast corner of Springhill Road and Hilton Street,
also known as South 14th Street. The site has frontage on
Springhill Road of 297.12’, and a combined depth of 531’, for
a total land area of 3.61 acres. It appears from the plat map
that the site goes to the center of Springhill Road, therefore
the effective acreage would be something less than 3.61 acres.
The site is level at street grade with no obvious
drainage problems. It appears that most of the site is
covered by the improvements except for the back 1 acre.
Located on the site is a fuel pump which appears to have an
underground fuel storage tank. For the purpose of this
appraisal, it is assumed that the underground fuel storage
tank meets all federal and state requirements. All public
utilities are currently available and in service at the site.
The site is large enough for its current use as a
concrete block sales facility and would be ideally suited for
a commercial retail building, and/or some type of residential
development.
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Description of Improvements
Located on the site are two separate building. The front
building is a one story, one unit; commercial retail building
built about 1974. This is a concrete block building built on
a concrete slab, and has a 3-1 asphalt shingled roof. There
is 3,000 square feet of building area.
The building is used as a retail showroom and office
building. The interior is made up of a showroom, two small
office areas, one unfinished storage room, a finished storage
room and a three half baths.
The back building is a former production building for the
creation of concrete blocks. The building is now used for
unheated storage space. This is a 7816 square foot unheated,
unfinished, concrete block, and pole constructed building
built on a concrete slab. The total building area of the two
buildings is 10,816 square feet.
Located north and east of the buildings is an open
storage yard and materials storage area.
Overall, the improvements appear to be in fair to average
condition. No personal property or equipment is included in
this appraisal.
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BUILDING SKETCHES
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Highest and Best Use
“ The reasonably probable and legal use of vacant land or improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value.”2
Highest and best use as though vacant: Some type of
commercial development consistent with what would be found
along Springhill Road for the front 1-2 acres. The back 1.61
to 2.61 could be used for residential development.
Highest and best use as though improved: Its current use for a
retail showroom and office building with storage.
SUMMARY OF ANALYSIS AND VALUATION
Sales Comparison Approach
This is an appraisal technique in which the market value
estimate is predicated upon prices paid in actual market
transactions and current listings. It is a process of
correlation and analysis of recently sold properties.
This appraiser attempted to find recent sales of older
retail/office buildings used for sales and storage. There
were no such sales found. Below are several sales in Vigo
County that meet some of the search criteria.
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Comparable Sale No. 1
The property at 1033 North Fruitridge Avenue sold on May
30, 2003. The seller was Barcus and the buyer was Gutich.
This was a one-story, one-unit pole constructed
commercial/industrial building that was originally built in
1982. The building measured 52 feet by 128 feet or 6656
square feet. This building, built on a concrete slab, was
situated on a 2.04-acre site. The reported sale price was
$190,000 or $28.55 per square foot building area.
2 The Appraisal of Real Estate, The American Institute of Real Estate Appraisers, 11th Edition, 1996, Chicago, Illinois, P. 50.
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Comparable Sale # 1 Type Property Commercial Address 1033 N Fruitridge Ave County Vigo Terre Haute, Indiana Township Harrison
Date Sold: May 30, 2003 Price: $190,000 Seller: Barcus Square Foot: 6656 Buyer: Gutish $ Per Square Feet: 28.56 Exterior Construction: Alum/
Steel Site Size:
# of Stories: One Building to Land %: Unknown # of Rooms: Zoning: M-2 # of Baths: 2 Deed Record Information: Basement: Slab Building Date: 1982 Square Foot: %Finished: Parcel Number: 18-06-13-200-010 Legal Description: Total Assessed Value: Unknown Condition of Sale: Arms Length Financing: Cash to Seller Date Verified: 12/22/03 Verified By: MLS #10781 Comments: Highest and Best Use: Commercial
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Comparable Sale No. 2
On April 14, 2000, the Louis Vitale Trust sold to Dever
Family Limited Partnership the property at 1025 N. Fruitridge
Avenue in Terre Haute, Indiana. This was a 16,080 square foot
pole barn constructed metal commercial building situated on
3.86 acres. This property is located immediately north of the
subject property. The reported purchase price was $540,000 or
$33.50 per square foot building area.
Dever later told this appraiser that he sold this
property to the Oakley Corporation on May 30, 2001 for
$560,000 or $34.82 per square foot building area.
A Sales Disclosure Form filed in the Vigo County Auditors
office shows that on November 11, 2002 Oakley Corporation sold
to Reynolds & Co. the property for $625,000 or $38.87 per
square foot of building area.
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Comparable Sale # 2 Type Property Industrial Address 1025 N. Fruitridge Ave. County Vigo Terre Haute, IN 47803 Township Harrison Date Sold: November 11, 2002 Price: $625,000 Seller: Oakley Corp. Square Foot: 16,080 Buyer: Reynolds & Co. $ Per Square Feet: $38.87 Exterior Construction: Steel Site Size: 3.86 Acres # of Stories: One Building to Land %: 9.6% # of Rooms: -- Zoning: M-2 # of Baths: -- Deed Record Information: Basement: Slab Building Date: 1983 Square Foot: %Finished: Parcel Number: 18-06-13-200-011 Legal Description: Prt N ½ W ½ W ½ NE, 13-12-9 Total Assessed Value: $94,470 Condition of Sale: Arms Length Financing: Cash to Seller Date Verified: 03/30/2003 Verified By: VC Auditor SD
form Comments: Highest and Best Use: Industrial/Wrhse – 2,600 SF of office space
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Comparable Sale No. 3
The property at 2408 Hendricks Ave sold on June 21, 2006.
The seller was Sparkle Pools Inc. and the buyer was Willig.
This was a one-story one-unit warehouse building with 8920
square feet of warehouse space and approximately 200 square
feet of office space for total building area of 9120 square
feet. This building sat on a .752-acre site having been built
in 1980.
The reported purchase price was $70,000 or $7.68 per
square foot up building area.
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COMPARABLE SALE NO. 3
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Comparable Sale No. 4
The property located at 5176 North Clinton St in Terre
Haute sold on May 22, 2006. This was a 10,560 square foot
warehouse and office building formerly used by Sargent
Electric. This property is located at the northwest corner of
Park Street and Lafayette Avenue in the North Terre Haute
area. This building had 2400 square feet of conference room
and office space with a warehouse of 8160 square feet. This
warehouse space was well insulated and heated. This building
was situated on a 4.89-acre site. The seller was Sargent
Electric and the buyer was Dake.
The reported purchase price was $300,000 or $28.41 per
square foot of total building area.
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COMPARABLE SALE NO. 4
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Comparable Sale No. 5
The property at 1624 East Springhill Drive sold on July
1, 2005. The seller was Sanders and the buyer was Brucken.
This property consisted of four separate buildings. Located
on the property was a 1460 square foot house, a newer 4000
square foot retail building, formerly used as a lighting
center, a 40' x 26' storage building and a 40' x 64' storage
building. All of these buildings were located on a 2.38-acre
site. The total building area for this sale was 9060 square
feet. The buyer purchased this property and converted the
retail building into a medical office building.
The reported purchase price was $365,000 or $40.29 per
square foot of total building area.
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COMPARABLE SALE NO. 4
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Comparable Sale No. 6
The property at 1925 South 13th Street sold on February
26, 2002. The seller was Nationwide Postal Management and the
buyer was Posey. This was a one-story one unit industrial
building built in 1968 for use as the United States Post
Office annex building. This building had 29,160 square feet
of area situated on a 2.6-acre site. This building was on the
market for over three years. The reported purchase price was
$325,000 or $13.54 per square foot a building area.
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COMPARABLE SALE NO. 6
General Asking Price: $395,000 Zoning: M-1 List Agent: PFISTER, MARY CAYE Parcel #: 1-18-0634181001 Agent Phone: (812)232-5083 Township: Other Listing Office: PFISTER BH&G Business Type: DISTRIBUTION Office Phone (812)232-5083 Year Built: 1968 Compensation-Buyer Broker:
2.5 A.V.: 194900
Compensation-Variable Rate:
2.5 Bldg#1 Total SqFt: 29160
Compensation-Contingency (Y/N):
N Bldg#1 WH SqFt: 0
Keybox: No Bldg#1 Office SqFt: 0 Keybox-Number: N Bldg#1 Mfg. SqFt: 0 Owner Name/Phone: NATIONWIDE POSTAL MG-N/A Bldg#1 Ceiling Ht-
Max: 16'
Listing Date: 04/11/1997 Showing Instructions: CALL LIST OFFICE Lot Size: 2.6 ACRES Features * EXTERIOR CONSTRUCTION * MISCELLANEOUS EXTERIOR * ROADS Masonry Onsite Parking City Street * LOCATION Paved Parking * WATER Industrial Loading Dock City Water * HEATING * POSSESSION * SEWER Natural Gas Immediate City Sewer Financial Taxes: 23534 Financing Terms: CASH Remarks VERSATILE BUILDING ADAPTABLE TO VARIOUS USES. MOSTLY WIDE-OPEN WORK AREA, SOME OFFICE AREA, LUNCH ROOM, RESTROOMS.LARGE COVERED LOADING DOCK. ABUNDANCE OF PARKING. PREVIOUSLY USED AS A POST OFFICE DISTRIBUTION CENTER. ABUNDANCE OF CONCRETE PARKING, 18,000 Addendum SF OF ASPHALT. ALSO PARKING ACROSS 12TH STREET. ALSO AVAILABLE FOR LEASE. Sold How Sold: Conventional Selling Office 1: PFISTER BH&G Contract Date: 02/26/2002 Buyer: Posey Closing Date: 06/11/2002 Concessions: None Sold Price: $325,000 DOM: 1887 Selling Agent 1: P, HOUSE
MLS #: 28314 Baths: 2 Class: COMMERCIAL/INDUSTRIAL Basement: NO Type: OTHER Stories: OT Area: Vigo County Price: $325,000 Status: SLD Address: 1925 S 13TH ST ZIP: 47802 Terre Haute For Sale
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Comparable Sale No. 7
The property at 800 East Haythorne Avenue sold on May 5,
2004. This was a one-story one-unit commercial/industrial
pre-engineered steel building built in 1999 on 6.53 acres.
This building was originally built for use as an indoor
raceway park for go-carts. The building measured 100 feet by
200 feet or 20,000 square feet. This building had limited
uses because of a 16-foot ceiling height. Next to this
building was a 1200 square foot pole barn building used for
storage. This building added no value to this property. The
reported sale price for this property was $375,000 or $18.75
per square foot of building area.
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COMPARABLE SALE NO. 7
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Comparable Sale No. 8
The property at 951 Ohio St sold on March 25, 2003. This
was a one-story one unit retail and warehouse building
situated on a .98-acre site. The building had a total of
22,000 square feet of area with 13,700 square feet in
warehouse space 2800 square feet in office space and 5500
square feet in retail space. This building was built in 1993
on a concrete slab. The seller was WWH Corporation and the
buyer was Terre Haute Electrical Joint Apprenticeship Program.
The reported purchase price was $525,000 or $23.87 per square
foot of building area.
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COMPARABLE SALE NO. 8
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Comparable Sale No. 9
The property at 175 Canal St sold on June 27, 2005. The
seller was B & S Plumbing and the buyer was D’Amico. This
building had 6240 square feet of area situated on a 148’ x
298’ lot. This building was built in 1985 office and
warehouse space for the plumbing company.
The reported purchase price was $300,000 or $48.08 per
square foot building area.
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COMPARABLE SALE NO. 9
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Comparable Sale No. 10
The property 3601 North Fruitridge Ave sold on July 29,
2003. The seller was WCO Limited and the buyer was Ferrall.
This was a retail building and warehouse building situated on
the northeast corner of Fruitridge Avenue and Fort Harrison
Road at the entrance to the Fort Harrison Industrial Park.
There was 4800 square feet in the retail building that was
built in 1983 and 3000 square feet of area in the warehouse
building built in 1994. These buildings were situated on a
two-acre site located within one block of the subject
property.
The reported purchase price was $325,000 or $41.67 per
square foot building area.
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COMPARABLE SALE NO. 10
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Comparable Sale No. 11
The property at 1041 North Fruitridge Ave sold on January
11, 2005. This was a 12,508 square foot retail and warehouse
building situated on a 2.3 acre site. The seller was Modesitt
and the buyer was BRSH, LLC. This building was built in 1984
and had 5255 square feet of retail area and 7248 square feet
in the warehouse. Modesitt had purchased the property in
October of 2003 for $425,000.
The reported purchase price in January 2005 was $525,000
or $41.97 per square foot of total building area.
Conley Real Estate Appraisals, Inc.
1400 Springhill Road, Terre Haute, Indiana Page 51
COMPARABLE SALE NO. 11
Conley Real Estate Appraisals, Inc.
1400 Springhill Road, Terre Haute, Indiana Page 52
Comparable Sales Summary
Sale No. ADDRESS Sale
PriceSquare
FeetPrice / Sq Ft
Site Size Date Location B/L % Construction Condition Age Office Use Multiple
BuildingsAdjusted
Value
1400 Springhill --- 10,816 --- 3.61 A 11/27/06 Average 7% CB/Pole Fair 1974 Large Retail Yes
1 1033 Fruitridge $190,000 6,656 $28.55 2.2 A 5/30/03 Average 7% Pole Average 1992 Large Retail No $22.46-10% +9% +10% -10% -10% -10%
2 1025 N. Fruitridge $625,000 16,080 $38.87 3.86 A 11/11/02 Average 10% Pre-Engi Average 1983 Small Industrial No $42.27+20% +13% -10% -10% -0- +10% -10%
3 2408 Hendricks Ave $70,000 9,120 $7.68 0.752 6/21/06 Average- 28% Pole Poor 1980 None Warehouse No $12.14-0- -0- +10% +10% +10% +10% -0- +20% -10%
4 5176 N. Clinton $300,000 10,560 $28.41 4.89 A 04/20/06 Average 4% Pole Average 1990 Large Office/Ware No $22.78-0- -0- +10% -10% -10% -10%
5 1624 E. Springhill 365,000 9,060 $40.29 2.38A 05/18/05 Average 9% Various Average Various Large Retail/Storage Yes $36.98-0- +3% -0- -0- -10% -10% -0-
6 1925 S. 13th St. $325,000 29,160 $11.15 2.6a 06/11/02 Average 25% Pre Engi Average 1968 Small Dist Wrhs No $12.8430% +13% -0- +10% -20% -10% -0- +10% -10%
7 800 E. Haythorne Ave. $375,000 20,000 $18.75 6.53 A. 05/05/04 Average- 7% Pre Engi/Stl Average 1999 None Industrial No $17.6830% +6% +10% -20% -10% -20% +20% -10%
8 951 Ohio Street $525,000 22,000 $23.86 .98 A. 03/25/03 Average+ 52% Brk/Alum/Stl Average 1993 Small Wrhse/Office No $29.28+30% +9% -10% +20% -0- -10% -10% +10% -10%
9 175 Canal St $300,000 6,240 $48.08 1.01 A 6/27/05 Average 14% Pole Average 1985 Small Office/Storage Yes $38.83-20% +3% -0- 10% -10% -10% +10% -0-
10 3601 N. Fruitridge $375,000 7,800 $48.08 2.00 A 7/29/03 Average 9% Metal/Pole Average 83/94 Large Retail/Ware Yes $33.11-10% +9% -0- -0- -10% -10% +10% -0-
11 1041 N. Fruitridge $525,000 12,508 $41.97 2.3 A 1/15/05 Average 12% Brick/Pole Average 1984 Large Retail/Ware No $34.67+10% +3% -0- -0- -10% -10% -10%
AVERAGE $27.55
SUBJECT
COMPARABLE SALES
Conley Real Estate Appraisals, Inc.
1400 Springhill Road, Terre Haute, Indiana Page 54
CONCLUSION
After reviewing the 11 comparable improvement sales and
making adjustments for building sizes, site sizes, dates of
sale, building construction, building conditions, building
ages, office space, and multiple buildings the adjusted values
range from a low of $12.14 per square foot building area to a
high of $42.27 per square foot of total building area with an
average of $27.55 per square foot of building area. Because
none of the 11 sales is considered comparable to the subject
property, it seems reasonable to believe that the subject
would meet the market close to this average or say $27.50 per
square foot of total building area. I therefore estimate the
market value by the Sales Comparison Approach as of November
27, 2006 to be $297,440 say
TWO HUNDRED NINETY THOUSAND DOLLARS
($297,500)
Conley Real Estate Appraisals, Inc.
1400 Springhill Road, Terre Haute, Indiana Page 55
Cost Approach to Value
In the Cost Approach, an estimate of the vacant land is
first developed. This is followed by estimating the
reproduction cost of the building and improvements.
Thereafter, the various types of depreciation were analyzed,
estimated and deducted from the reproduction cost.
The cost approach was not used for this particular
appraisal problem because of the advanced ages of the
improvements.
Income Capitalization Approach
The Income Capitalization Approach is the process that
converts anticipated income to be derived from ownership of
the property into a value estimate. Anticipated future income
and/or revisions are discounted to a present worth figure
through a capitalization process.
The Income Approach to Value was not used in this
appraisal process because the typical buyer for this property
would be a user as apposed to a real estate investor looking
to derive a net income from renting the buildings.
Conley Real Estate Appraisals, Inc.
1400 Springhill Road, Terre Haute, Indiana Page 56
ASSUMPTIONS AND LIMITING CONDITIONS: 1. As agreed upon with the client prior to the preparation of
this appraisal, this is a Limited Appraisal because it invokes the Departure Provision of the Uniform Standards of Professional Appraisal Practice. As such, information pertinent to the valuation has not been considered and/or the full valuation process has not been applied. Depending on the type and degree of limitations, the reliability of the value conclusion provided herein may be reduced.
2. No responsibility is assumed for legal or title
considerations. Title to the property is assumed to be good and marketable, unless otherwise stated in this report.
3. The property is appraised free and clear of any or all
liens and encumbrances, unless otherwise stated in this report.
4. Responsible ownership and competent property management is
assumed, unless otherwise stated in this report. 5. The information furnished by others is believed to be
reliable. However, no warranty is given for its accuracy. 6. All engineering is assumed to be correct. Any plot plans
and illustrative material in this report are included only to assist the reader in visualizing the property.
7. It is assumed that there are no hidden or unapparent
conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them.
8. It is assumed that there is full compliance with all
applicable federal, state, and local environmental regulations and laws, unless otherwise stated in this report.
9. It is assumed that all applicable zoning and use
regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in this appraisal report.
Conley Real Estate Appraisals, Inc.
1400 Springhill Road, Terre Haute, Indiana Page 57
10. It is assumed that all required licenses, certificates of occupancy or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this report are based.
11. Any sketch in this report may show approximate dimensions
and is included to assist the reader in visualizing the property. Maps and exhibits found in this report are provided for reader reference purposes only. No guarantee as to accuracy is expressed or implied, unless otherwise stated in this report. No survey has been made for the purpose of this report.
12. It is assumed that the utilization of the land and
improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass, unless otherwise stated in this report.
13. The appraiser is not qualified to detect hazardous waste
and/or toxic materials. Any comment by the appraiser that might suggest the possibility of the presence of such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such determination would require investigation by a qualified expert in the field of environmental assessment. The presence of substances such as asbestos, urea-formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The appraiser’s value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value, unless otherwise stated in this report. No responsibility is assumed for any environmental conditions, or for any expertise or engineering knowledge required to discover them. The appraiser’s descriptions and resulting comments are the result of the routine observations made during the appraisal process.
14. Unless otherwise stated in this report, the subject
property is appraised without a specific compliance survey having been conducted to determine if the property is or is not in conformance with the requirements of the Americans with Disabilities Act. The presence of architectural and communications barriers that are structural in nature that would restrict access by disabled individuals may adversely affect the property’s value, marketability, or utility.
Conley Real Estate Appraisals, Inc.
1400 Springhill Road, Terre Haute, Indiana Page 58
15. Any proposed improvements are assumed to be completed in a good workmanlike manner in accordance with the submitted plans and specifications.
16. The distribution, if any, of the total valuation in this
report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used.
17. Possession of this report, or a copy thereof, does not
carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event, only with proper written qualification and only in its entirety.
18. Neither all nor any part of the contents of this report
(especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news sales, or other media without prior written consent and approval of the appraiser.
19. This appraisal report has been prepared for the exclusive
benefit of Mr. Kurt Jones of Jones & Sons, Inc. It may not be used or relied upon by any other party. Any party who uses or relies upon any information in this report, without the preparer’s written consent, does so at his own risk.
Conley Real Estate Appraisals, Inc.
1400 Springhill Road, Terre Haute, Indiana Page 59
CERTIFICATION
I certify that to the best of my knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased, professional analyses, opinions, and conclusions.
3. I have no present or prospective interest in the property that is the subject of this report and I have no personal interest or bias with respect to the parties involved.
4. My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event.
5. This appraisal was not base on a requested minimum valuation, a specific valuation, or the approval of a loan.
6. My analyses, opinions, and conclusions were developed, and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice.
7. I have made a personal inspection of the property that is the subject of this report.
8. No one provided significant professional assistance to the person signing this report.
9. The reported analyses, opinion, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.
10. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
Brian F. Conley, GRI Indiana Certified General Appraiser
State Certification Number: CG 69100221
Conley Real Estate Appraisals, Inc.
1400 Springhill Road, Terre Haute, Indiana Page 60
BRIAN F. CONLEY INDIANA GENERAL CERTIFIED APPRAISER Conley Real Estate Appraisals, Inc.
321 Ohio Street Upper Suite #1 Terre Haute, IN 47807
Phone and Fax (812) 235-4576 email: [email protected]
EDUCATION:
Bachelor of Business Administration - Indiana State University, 1976. Appraisal Course IA-1 - (Real Estate Appraisal Principles) - sponsored by the Appraisal Institute, completed at Indiana University, 1978 and 1990. Appraisal Course IA-2 - (Basic Valuation Procedures) - sponsored by the Appraisal Institute, completed at Indiana University, 1978 and 1990. Appraisal Course IB - (Capitalization) - sponsored by the Appraisal Institute, taken at Indiana University, 1980. Appraisal Course II - (Valuation Analysis) - sponsored by the Appraisal Institute, taken at Indiana University, 1981. Graduate Realtors Institute (GRI) - sponsored by the Indiana Association of Realtors, taken at Indiana University, 1979. Fair Housing Laws - sponsored by the Education REsources, taken in Indianapolis, August 2004. Market Analysis and the Site to do Business Seminar – Sponsored by the Appraisal Institute, taken in Indianapolis, July 2005 Americans with Disabilities Act Seminar - sponsored by the Education REsources, taken in Indianapolis August 2006 Standards of Professional Practice - sponsored by Education REsources, taken in Indianapolis, August 2006. Legal Descriptions & Surveying for Condemnation - sponsored by Education REsources, taken in Indianapolis, August 2002. Contemporary Environmental Issues - sponsored by the Education REsources, taken in Indianapolis, August 2004 PROFESSIONAL EXPERIENCE: Southeast Drainage Project. Projects 13, 14, 15, 17, 18, 19 and 20 Sewer Projects, Board of Sanitary Commissioners. Honey Creek-Vigo Conservancy District Plan A and Plan B Flood Control Project.
Chamberlain Road project and Industrial Park Sewer Easements, Vigo County Commissioners. Federal National Mortgage Association (FNMA), Relocation Companies, various attorneys and private parties. All major banks in the Terre Haute area. Has been continuously associated with real estate appraisals for over 30 years with the present firm of Conley Real Estate Appraisals, Inc., of which he is president.
Conley Real Estate Appraisals, Inc.
1400 Springhill Road, Terre Haute, Indiana Page 61
Appointed by and testified in Vigo County Superior Court, Clay County Circuit Court, and Owen County Circuit Court as an appraiser. Appointed by Governors B. Evan Bayh and Frank O’Bannon as a real estate appraiser for the State of Indiana. Approved appraiser with Indiana Department of Transportation.
PROFESSIONAL AFFILIATIONS: Indiana Certified General Appraiser license # CG69100221
Appointed by Governor B. Evan Bayh to the Indiana Real Estate Commission (June 1, 1991 through May 31, 1999). Reappointed by Governor Frank O’Bannon (June 1, 1999 through May 31, 2003). Resigned to accept a new position on August 14, 2001 Appointed by Governor Frank O’Bannon to the Indiana Real Estate Appraiser Licensure Board, August 14, 2001 through October 12, 2006. Served as Board Chairman 2004 & 2005. Associate Member, Appraisal Institute.
Indiana Real Estate Brokers License number IB20501035.
Past Chairman, Education Committee, Terre Haute Area Association of Realtors.
Member, past director and past president of Terre Haute Board Association of Realtors.
Member and past director of Indiana Association of Realtors.
Member of National Association of Realtors.
President and member Terre Haute Area Association of REALTORS Multiple Listing Service.
Terre Haute Area Association of REALTORS, 1985 and 2003 REALTOR of the Year.
Member of the Terre Haute Homebuilders Association
Former member of Terre Haute City Council. (1988-1995).
Past member of Vigo County Area Plan Commission.
Awarded Sagamore of the Wabash by Governor B. Evan Bayh, January 1997
Member and current Vice Chairman of the Terre Haute Redevelopment Commission (appointed November
1999)