REAL PROPERTY APPRAISAL
Transcript of REAL PROPERTY APPRAISAL
(21-139-T)
REAL PROPERTY APPRAISAL
Wallace Springs Utility
Expansion Project
Southern Quadrant Arey and
Wallace Springs Roads
Statesville, Iredell County,
NC 28677
Type Report: Appraisal
Valuation Date
June 26, 2021
(21-139-T)
R e a l P r o p e r t y A p p r a i s e r s a n d C o n s u l t a n t s 1 4 3 0 S o u t h M i n t S t r e e t , S u i t e 1 0 2 , C h a r l o t t e , N o r t h C a r o l i n a 2 8 2 0 3
T e l e p h o n e : 7 0 4 - 3 3 4 - 4 6 8 6 F a x : 7 0 4 - 3 3 4 - 2 7 5 9 8 0 0 - 4 5 3 - 4 4 3 9 W e b : w w w . t b h a r r i s j r . c o m
July 9, 2021
Ron Smith
City of Statesville
City Manager
915 Winston Ave.
Statesville, NC 28687
RE: Appraisal of three contiguous parcels located on the southern quadrant of Arey and
Wallace Springs Roads, Statesville, Iredell County, NC. Tax Parcels 4733-21-7290,
4733-21-9457 and 4733-31-0286.
Dear Mr. Smith:
T.B. Harris, Jr. & Associates has completed an appraisal of the above referenced assemblage and
is providing our analysis and opinion of value for the assemblage. The scope of the assignment
calls for the valuation of the assemblage before and immediately after a proposed acquisition of
easement rights across the subject property by the City of Statesville. The assignment originally
called for the valuation of the two parcels impacted by the acquisition; however, upon research of
the properties, we concluded that the corner parcel’s highest and best use was for assemblage. In
consideration that the adjacent parcel is under the same ownership and the theory of unity of use,
we have included the parcel along Arey Road in the assignment.
Market Note: Recent events including the pandemic of Covid-19 have added speculation into the
market. As of the effective date of this report, the market has recognized some impact to the short-
term real estate market with uncertain long-term impacts. The uncertainty has led to a wide range
in speculation of real estate markets which could impact values of real property in the near term
and possibly long term, either positively or negatively. The United States is a consumer driven
market, and the recovery has commenced, but speculation about the timing of recovery in some
sectors is active and the short-, mid- and long-term impacts are unknown.
Based on our inspection and analysis of the information obtained, it is our opinion that the Market
Value of the Fee Simple interest in the assemblage, as of June 26, 2021 before and immediately
after the proposed acquisition, are:
Land Value Before $100,000
Land Value After $95,525
Difference $4,475
RON SMITH
July 9, 2021
Page 2
(21-139-T)
The appraisal is intended to conform with the Uniform Standards of Professional Appraisal
Practice (USPAP), the Code of Professional Ethics and Standards of Professional Appraisal
Practice of the Appraisal Institute, and the Appraisal guidelines of our client.
The opinion of value is supported by the data and reasoning set forth in the attached narrative.
Your attention is invited to the Assumptions and Limiting Conditions section of this report. The
appraisers certify that we have no present or contemplated future interest in the property appraised,
and that our fee for this assignment is in no way contingent upon the value estimate concluded.
EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS:
• It is an extraordinary assumption of this report that the information provided for this
assignment by the City of Statesville including but not necessarily limited to plans, survey
and areas of acquisition and rights to be acquired are correct. The appraisal relies on this
information in developing our opinions of value and that the project will be completed in
accordance with said plans. Should this information be proven inaccurate, then we reserve
the right to amend this report and alter our conclusions if necessary.
• It is an extraordinary assumption of this assignment; the subject assemblage consists of
3.6 acres. Public records indicate a total size of 5.03 acres. However, the area of the three
parcels appear to include the right-of-way for Wallace Springs and Arey Roads. We have
relied on the measuring tool on the Iredell County website in estimating the total acreage.
We consider the estimate reasonably accurate and the results credible.
• It is an extraordinary assumption that any disturbances made within the Permanent Utility
Easement (PUE) and Temporary Construction Easement (TCE) area will be restored to
their original condition before completion of the project. This is applicable to all items
except the items identified in the report. Should the PUE or TCE not be restored, then we
reserve the right to amend this report and alter our conclusions if necessary.
• Consistent with the assumption regarding the temporary construction easement, we
assume that the project will not impair the use of the existing improvements in the after
value except for those noted in the report. The project will include subterranean
installation of utilities. Based on discussions with our client, the assumption is reasonable
and appropriate given the purpose and intended use of this report.
• The valuation of the property before the acquisition does not consider the influence of the
proposed project. Further, the valuation after the acquisition is performed under the
hypothetical condition that the project is complete. Considering the purpose and intended
use of the appraisal, the hypothetical conditions are reasonable and appropriate.
The content and conclusions of this report are intended for our client and for the specified intended
uses only. They are also subject to the assumptions and limiting conditions as well as the specific
extraordinary assumptions and hypothetical conditions set forth in this report.
RON SMITH
July 9, 2021
Page 3
(21-139-T)
Thank you for the opportunity to be of service. If you have any questions or comments, please let
us know.
Sincerely yours,
T.B. HARRIS, JR. & ASSOCIATES
(21-139-T) T.B. HARRIS, JR. & ASSOCIATES
SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS
Property and Location: Vacant Land
Southern Quadrant Arey and Wallace Springs
Roads
Statesville
Iredell County
NC 28677
Tax Map Reference: 4733-21-7290, 4733-21-9457 and 4733-31-0286
Property Owner: James and Jane Tarman
Appraisal Valuation Date: June 26, 2021
Purpose of Appraisal: Report our opinion of Market Value before and
immediately after a proposed acquisition of
easement rights.
Property Rights Appraised: Fee Simple Interest
Zoning: R20 & RA
Land Area: 3.60 Acres or 156,816 SF
Improvements: None
Present Use: Vacant Land
Highest and Best Use: Residential Development
Appraisal Procedures: Sales Comparison Approach
FINAL VALUE OPINION(S):
Land Value Before
Land Value After
Difference
$100,000
$95,525
$4,475
Appraiser: Michael P. Berkowitz
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TABLE OF CONTENTS
SCOPE OF THE ASSIGNMENT ....................................................................................................................... 7 PREMISES OF THE APPRAISAL .................................................................................................................... 7
Identification of Subject..................................................................................................................................... 7 Client, Purpose, and Intended Use and Intended Users ..................................................................................... 7 Appraiser ........................................................................................................................................................... 8 Property Inspection ............................................................................................................................................ 8 Value Appraised ................................................................................................................................................ 8 Property Rights Appraised ................................................................................................................................. 9 Extraordinary Assumptions/Hypothetical Conditions of Appraisal ................................................................. 10 Effective Date of Value ................................................................................................................................... 11 Date of Report.................................................................................................................................................. 11 Type Report ..................................................................................................................................................... 11 Prior Services ................................................................................................................................................... 11
BACKGROUND DATA ..................................................................................................................................... 11 Ownership and History of the Property ........................................................................................................... 11 Appraisal Assistance ........................................................................................................................................ 12 Report Format .................................................................................................................................................. 12 Community Analysis ....................................................................................................................................... 13
PROPERTY ANALYSIS ................................................................................................................................... 15 Site Analysis .................................................................................................................................................... 15 Improvement Analysis ..................................................................................................................................... 19 Real Estate Taxes and Assessment .................................................................................................................. 19 Zoning and Other Restrictions ......................................................................................................................... 20
HIGHEST AND BEST USE ANALYSIS ......................................................................................................... 21 Highest and Best Use, As Vacant .................................................................................................................... 21 Most Likely Buyer ........................................................................................................................................... 23
VALUATION METHODOLOGY .................................................................................................................... 23 VALUATION ANALYSIS ................................................................................................................................. 24
Land Valuation – Sales Comparison Approach ............................................................................................... 24 THE ACQUISITION ......................................................................................................................................... 30
Description of the Acquisition ......................................................................................................................... 30 Effects of the Taking ....................................................................................................................................... 35 Highest and Best Use After the Taking ........................................................................................................... 35 Valuation of the Property After the Taking ..................................................................................................... 35 Acquisition of Easements ................................................................................................................................ 35
FINAL VALUE CONCLUSION ....................................................................................................................... 36 EXPOSURE AND MARKETING TIME ........................................................................................................ 37
Exposure Time ................................................................................................................................................. 37 Marketing Time ............................................................................................................................................... 38
ADDENDA .......................................................................................................................................................... 39 Certifications ................................................................................................................................................... 40 Assumptions and Limiting Conditions ............................................................................................................ 42 Deeds/Legal Descriptions ................................................................................................................................ 48 Surveys ............................................................................................................................................................ 55 Easement Language ......................................................................................................................................... 58 Appraiser License ............................................................................................................................................ 71 Qualifications of the Appraiser ........................................................................................................................ 73
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SCOPE OF THE
ASSIGNMENT
This appraisal report addresses the appropriate and applicable
methods of appraisal subject to the extraordinary assumptions
and hypothetical conditions set forth in this report. The
appraisal document has been prepared in compliance with the
Uniform Standards of Professional Appraisal Practice
(USPAP).
Our firm was originally engaged to appraise two of the three
parcels constituting the subject before and immediately after
an acquisition of easement rights for the Wallace Springs
Utility Expansion Project. Based on our research, parcel 4733-
21-9457 consists of 0.41 acre. Given its physical
characteristics and associated setbacks with the R-20 zoning
designation, the highest and best use of this parcel is for
assemblage. In consideration that the adjacent parcels are
under the same ownership, we have appraised the three parcels
as an assemblage.
The purpose of the appraisal is to develop our opinion of the
market value of the fee simple interest in the property before
and immediately after the acquisition as of the effective date
of this report. The intended use of this report is as a tool for
measuring compensation to the property owner for the rights
acquired as of the effective date of this report.
PREMISES OF THE APPRAISAL
Identification of Subject 3.6 acres of vacant land
Southern Quadrant Arey and Wallace Springs Roads
Statesville, Iredell County, NC 28677
Tax Parcel ID’s: 4733-21-7290, 4733-21-9457 and 4733-31-
0286.
Client, Purpose, and
Intended Use and Intended
Users
Ron Smith
City of Statesville
City Manager
915 Winston Ave.
Statesville, NC 28687
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The purpose of this report is to provide our opinion of the
market value of the fee simple interest before and immediately
after the acquisition of property rights detailed in the report.
The intended use of this report is as a tool in assisting our
client in determining compensation to the property owner for
the indicated acquisition.
The client and intended users are City of Statesville and its
representatives only and for the intended use stated. The
appraisal and conclusions therein are not intended for any
other user or intended use. The appraisers are not responsible
for the unauthorized use of this report and its conclusions by
any other parties.
Appraiser Michael P. Berkowitz
T.B. HARRIS, JR. & ASSOCIATES
1430 South Mint Street, Suite 102
Charlotte, North Carolina 28203
704-334-4686
www.tbharrisjr.com
Property Inspection Michael Berkowitz made an off-site visual inspection of the
subject property on June 26, 2021. With approval our client,
we proceeded with the assignment with the off-site inspection
after attempts to contact the property owner did not receive a
response. We consider the off-site inspection adequate for the
purpose and intended use of this report. After the inspection,
Mr. Berkowitz received a call from the property owner. Mr.
Berkowitz provided information to Mr. Tarman regarding the
scope of the appraisal and discussed the property. Photographs
of the property were taken during the inspection.
Value Appraised
Market Value: Definitions of market value vary slightly based
on various exacting definitions required by certain courts and
jurisdictions, the Uniform Standards of Professional Appraisal
Practice (USPAP), and even international valuation standards.
The market value used in this report is set forth in the
Dictionary of Real Estate Appraisal, Sixth Edition, by the
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Appraisal Institute. This definition is used by agencies that
regulate federally insured financial institutions in the United
States.
“The most probable price that 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 is the consummation of a sale as of
a specified date and the passing of title from
seller to buyer under conditions whereby:
• Buyer and seller are typically
motivated;
• Both parties are well informed or well
advised, and acting in what they
consider their best interests;
• A reasonable time is allowed for
exposure in the open market;
• Payment is made in terms of cash in
U.S. dollars or in terms of financial
arrangements comparable thereto; and
• The price represents the normal
consideration for the property sold
unaffected by special or creative
financing or sales concessions granted
by anyone associated with the sale.”
(12 C.F.R. Part 34.42(g); 55 Federal
Register 34696, August 24, 1990, as
amended at 57 Federal Register 12202,
April 9, 1992; 59 Federal Register
29499, June 7, 1994) (The Dictionary
of Real Estate Appraisal, 6th ed., 2015)
Property Rights Appraised Fee Simple Interest:
“Absolute ownership unencumbered by any
other interest or estate, subject only to the
limitations imposed by the governmental
powers of taxation, eminent domain, police
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power, and escheat.” (The Dictionary of Real
Estate Appraisal, 6th ed., 2015)
For definitions of all other technical terms in this report, the
reader is referred to the most recent edition of The Dictionary
of Real Estate Appraisal published by the Appraisal Institute.
Extraordinary
Assumptions/Hypothetical
Conditions of Appraisal
It is an extraordinary assumption of this report that the
information provided for this assignment by the City of
Statesville including but not necessarily limited to plans,
survey and areas of acquisition and rights to be acquired are
correct. The appraisal relies on this information in developing
our opinions of value and that the project will be completed in
accordance with said plans. Should this information be proven
inaccurate, then we reserve the right to amend this report and
alter our conclusions if necessary.
It is an extraordinary assumption of this assignment; the
subject assemblage consists of 3.6 acres. Public records
indicate a total size of 5.03 acres. However, the area of the
three parcels appear to include the right-of-way for Wallace
Springs and Arey Roads. We have relied on the measuring
tool on the Iredell County website in estimating the total
acreage. We consider the estimate reasonably accurate and the
results credible.
It is an extraordinary assumption that any disturbances made
within the Permanent Utility Easement (PUE) and Temporary
Construction Easement (TCE) area will be restored to their
original condition before completion of the project. This is
applicable to all items except the items identified in the report.
Should the PUE or TCE not be restored, then we reserve the
right to amend this report and alter our conclusions if
necessary.
Consistent with the assumption regarding the temporary
construction easement, we assume that the project will not
impair the use of the existing improvements in the after value
except for those noted in the report. The project will include
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subterranean installation of utilities. Based on discussions
with our client, the assumption is reasonable and appropriate
given the purpose and intended use of this report.
The valuation of the property before the acquisition does not
consider the influence of the proposed project. Further, the
valuation after the acquisition is performed under the
hypothetical condition that the project is complete.
Considering the purpose and intended use of the appraisal, the
hypothetical conditions are reasonable and appropriate. The
use of extraordinary assumptions and/or hypothetical
conditions may impact the conclusions of this report.
Effective Date of Value June 26, 2021
Date of Report July 9, 2021
Type Report Appraisal Report
Prior Services Appraisers are required to disclose other services they have
provided regarding the subject property in the prior three
years. These other services may include valuation,
management, brokerage, or any other real estates related
services. We have provided no appraisal or appraisal services
regarding the subject property for the three years preceding
the acceptance of this assignment.
BACKGROUND DATA
Ownership and History of
the Property
Owner of record:
James and Jane Tarman
548 Wallace Springs Road
Statesville, NC 28677
It is important to note that the owner of record may not be the
current owner. The actual owner may be different depending
on recent transfers or lack of updated records at the county.
History According to the property owner, the land has been in his
family for many years. The most recent transactions involving
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the subject property are what appears to be the transfer of
ownership between related parties. Parcel 4733-21-7290 was
acquired by the current property owner on December 23,
2010, according to a deed recorded in Deed Book 2099 Page
1306. The deed indicates a size of two acres subject to the
easement and right-of-way of NC Road 1338 (Wallace
Springs) and Old Road (Arey Road) if any. The inclusion of
right-of-way in the deed may account for the variances in the
sizes in public records. We provide a copy of this deed in the
Addenda.
The second deed referencing the subject is recorded in Deed
Book 683 Page 71. This deed was recorded on January 27,
1983. According to the stamps on the deed, the transaction did
not include any monetary considerations. We provide a copy
of the deed in the Addenda. We are unaware of any
transactions involving the subject property for the three
preceding the effective date of this report. We do not believe
the property is listed for sale or under contract as of the
effective date of this report.
Available Information T.B. Harris, Jr. & Associates requests information with
respect to title reports, surveys, building plans, income and
expense information, budgets, construction costs, leases, and
engineering reports. The following information was
requested, however not received.
• Title Opinion for Property
The inability to obtain this information may affect our value
opinion.
Appraisal Assistance This appraisal report has been completed by the Appraiser
identified within this document.
Report Format This report complies with Standard Rule 2-2(a) of the 2020-
2021 USPAP Edition. Flexibility regarding the level of
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information in an Appraisal Report is dependent upon the
intended use and intended users of the appraisal.
This report contains adequate information at a depth and detail
commensurate with the defined appraisal issue and intended
use of the appraisal.
Community Analysis
Boundaries • The US Highway 21 corridor serves as the eastern
boundary of the community. The City of Statesville
and the US Highway 70 corridor serve as the northern
boundary. Buffalo Shoals Road serves as the western
boundary. Old Mountain Road serves as the southern
boundary.
Transportation and
Utility Linkages
• The site has average transportation linkage. US
Highway 21 to the east of the subject provides
connectivity to Interstate 77.
• The utility linkage for the subject is fair. For the
immediate area there is limited neighborhood-
oriented retail. Most services for the area are served
by developments in Troutman to the southeast,
Statesville to the north or the I-77 corridor to the east.
Developments The developments in the area are limited to residential
development. The development pattern is typical as once
rural areas of the Charlotte MSA are transitioning to
suburban developments.
• Hidden Lakes – Hidden Lakes is a residential
subdivision being developed on the northern quadrant
of the intersection of Wallace Springs and Arey
Roads. According to the community plan, there are
approximately 300 residential lots planned for the
development. A review of listings for the
development show houses for sale in the $300 to $350
thousand range.
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• Giant Oak, LLC – Giant Oak, LLC purchased the
property just south of the subject along Wallace
Springs Road. The plans for the subdivision include
277 lots. The property was annexed into the City of
Statesville. This development is the impetus for the
extension of utilities and this appraisal.
Zoning and Area Planning • The subject has split zoning. Historically the area has
served as an agricultural area including low density
residential. The property is in unincorporated Iredell
County. We are aware of several larger agricultural
tracts that have been developed with higher density
residential. Annexation and the extension of
municipal water and sanitary sewer service are
common for these developments.
Land Uses Land uses in the area are primarily low-density residential
and vacant land. Some of the vacant land is used for
agricultural purposes. As noted earlier, there are some newer
residential developments in the area. The increase in roof tops
will eventually lead to non-residential development to meet
the needs of the growing population.
Outlook and Conclusions As the Charlotte MSA continues to grow, the demand for
land is highly competitive. The residential growth in the area
indicates a community at the onset of a growth phase. The
community provides an alternative to the higher land prices
to the areas immediately around Lake Norman and areas
closer to Charlotte. We anticipate the growth to continue as
the Charlotte MSA is in the growth phase of its economic life
cycle.
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COMMUNITY MAP
PROPERTY ANALYSIS
Site Analysis Without the benefit of a current survey, the appraiser cannot
suggest the property is free of encroachments or easements
and recommends further investigation and a current survey.
Location
• Southern Quadrant Arey and Wallace Springs Roads
Statesville, Iredell County, NC 28677
• Tax ID’s: 4733-21-7290, 4733-21-9457 and 4733-
31-0286
Area/Shape/Dimensions • Size - 3.60 Acres. The size of the site is estimated
using the measuring tool on the Iredell County GIS
website. The dimensions appear reasonably accurate
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and are provided on the tax map at the end of this
section.
• The shape of the individual parcels is irregular. By
assembling the three parcels, the shape is an “L” which
provide a higher level of utility.
Topography • The topography is rolling to level and is not an adverse
characteristic of the site.
Floodplain • The subject is not located in a designated floodplain
according to FEMA Flood Panel 3710473300J.
Access/Ingress/Egress
• The assemblage has frontage long two public roads.
The frontage is a contributing factor to the analysis of
the highest and best use.
• Ingress and egress patterns are typical for rural areas
of Iredell County.
Soil and Subsoil Analyses • Assumes no hidden, unapparent, apparent, or toxic
materials.
Utilities • The property does not appear to have access to
municipal water or sanitary sewer service. However,
the lines for these services are in such proximity that a
typical purchaser would recognize the possibility of
obtaining these services without significant expense.
Restrictions/Easements/
Encroachments/
Rights-of-Way
• We are unaware of any restrictions, easements,
encroachments, or rights-of-way that would adversely
impact the value of the subject. The survey provided
for this assignment shows a line 30 feet from the
centerline of Wallace Springs Road, which we assume
is the right-of-way for Wallace Springs Road.
Environmental Hazards • Unless otherwise stated in this report, none known.
Summary The subject site provides a higher level of utility as an
assemblage than as individual parcels. The shape and sizes of
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the individual parcels in conjunction with the current zoning
would limit the utility of the corner lot. Therefore, the most
likely scenario for the sale of the subject is as an assemblage.
The assemblage increases the utility and provide for the
possible development of a wider range of potential uses.
TAX MAP
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AERIAL MAP
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TOPOGRAPHY MAP
Improvement Analysis The site is vacant with no significant improvements.
Therefore, the appraisal does not include an analysis of the
improvements.
Real Estate Taxes and
Assessment
The subject lies in unincorporated Iredell County. As such, the
tax liability for the subject includes a combined rate for Iredell
County and fire services. The combined rate for 2020 is
$0.6275 per $100 of assessed value. The following chart
provides a summary of the tax liability for the subject.
Tax Parcel No. Size*
Land
Assessment
Improvements
Assessment
Other
Assessment
Total
Assessment
CurrentTax
Burden (R)
4733-21-7290 2.00 $38,560 $0 $0 $38,560 $242
4733-21-9457 1.23 $26,170 $0 $0 $26,170 $164
4733-31-0286 1.80 $32,830 $0 $0 $32,830 $206
5.03 $97,560 $0 $0 $97,560 $612
*According to public records
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The sizes of the individual parcels are significantly higher than
our research using the measuring tool from the Iredell County
GIS website. Parcel 9457 has a size of 0.41 acre, which is
significantly smaller than the 1.23 acres from the property card.
Recall that the deed for parcel 7290 indicated a gross size of
two acres subject to the right-of-way. It appears that the public
records include the right-of-way in their assessment. Absent a
survey, we have used the estimates from the measuring tool in
the valuation.
The effective date of the last revaluation of Iredell County is
January 1, 2019. Despite the apparent errors in size, the
assessed value is consistent with the concluded value of this
report before the acquisition. Development in the immediate
area has included higher density residential properties that have
placed upward pressure on land values in the area. As we will
show in the valuation, most of this activity occurred after the
last revaluation by Iredell County.
Zoning and Other
Restrictions
R20 & RA
As shown on the map, the subject has split zoning. The RA and
R-20 zoning designation are residential districts. Some
properties in the area have been annexed into the City of
Statesville. The properties have voluntarily been annexed
likely to acquire access to municipal utilities. The current use
of the property appears compliant with the current zoning
designation.
The area includes residential developments with a variety of
densities. Newer developments have more houses per acre than
the properties with older improvements. Further, there remains
several agricultural users in the immediate area. A change in
zoning may be required if the property were redeveloped, but
it would likely be a residential classification consistent with
other residential developments in the area.
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ZONING MAP
HIGHEST AND BEST USE ANALYSIS
Highest and Best Use,
As Vacant
Physically Possible Uses The physical characteristics of the individual parcels are the
primary reasoning behind the determination that the
assemblage provides more utility than the individual parcels.
As shown in previous exhibits, the shape and size of the corner
parcel provides limited utility. However, the assemblage
mitigates some of these undesirable characteristics. Based on
the physical characteristics of the assemblage, the 3.6-acre site
provides utility for a variety of potential uses limited by the
“L” shape of the assemblage and the size of the site (3.6 acres).
Therefore, based on the physical characteristics, the highest
and best use is for a variety of uses.
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Legally Permissible Uses The subject has split zoning. The recent residential
developments in the area have included annexation into the
City of Statesville and rezoning. Regardless, a residential
classification is the most likely use of the site as vacant. The
front setback for the R-20 zoning is 35 feet for a traditional lot
and 25 feet for a corner lot. The setbacks are a contributing
factor to the conclusion of assemblage as the building
envelope especially for the corner lot is limited. Annexation
would provide access to municipal water and sanitary sewer
service. While the annexation would be voluntary, a
knowledgeable buyer would be aware of this possibility.
Therefore, the highest and best use as vacant based on the
physical and legal characteristics is for residential
development as permitted by zoning.
Financially Feasible Uses Based on our analysis of the market we have considered
demand in the area, and it appears that residential
development is financially feasible. The market for residential
properties has shown a shortage in supply. Based on the lot
sales in the market, lots outside an established subdivision
have sizes more than one acre. Based on the analysis of the
assemblage, we consider it reasonable than three lots could be
developed with a redrawing of the boundaries of each parcel.
This would provide an average size of 1.2 acres per lot, which
is consistent with the residential lot market outside newer
subdivisions. As vacant, the highest and best use of the subject
is for residential development of three residential lots.
Maximally
Productive Uses
There does not appear to be any probable or reasonable use
that would support a higher or better use than residential
development. Development patterns within subdivisions show
smaller lots for development. However, there are some
subdivisions with larger lots. Most residential properties
outside existing or planned subdivisions have larger lot sizes.
Therefore, we conclude that the highest and best use as vacant
is for residential development of three residential lots.
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Most Likely Buyer The most likely buyer of this property is a local builder or land
speculator given the market activity.
VALUATION METHODOLOGY
Appraisers typically consider three approaches to estimate
property value. These are the cost, sales comparison, and
income capitalization approach.
The cost approach is a set of procedures through which a
value indication is derived for the fee simple interest in a
property by estimating the current cost to construct a
reproduction of (or replacement for) the existing structure,
including an entrepreneurial incentive, deducting depreciation
from the total cost, and adding the estimated land value.
Adjustments may then be made to the indicated fee simple
value of the subject property to reflect the value of the
property interest being appraised. (The Dictionary of Real
Estate Appraisal, 6th ed., 2015, Page 54.)
The sales comparison approach is the process of deriving a
value indication for the subject property by comparing market
information for similar properties with the property being
appraised, identifying appropriate units of comparison, and
making qualitative comparisons with or quantitative
adjustments to the sales prices (or unit prices as appropriate)
of the comparable properties based on relevant, market-
derived elements of comparison. (The Dictionary of Real
Estate Appraisal, 6th ed., 2015, Page 207.)
The income capitalization approach is a set of procedures
through which an appraiser derives a value indication for an
income-producing property by converting its anticipated
benefits (cash flows and reversions) into property value. This
conversion can be accomplished in two ways. One year’s
income expectancy can be capitalized at a market-derived
capitalization rate or at a capitalization rate that reflects a
specified income pattern, return on investment, and change in
the value of the investment. Alternatively, the annual cash
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flows for the holding period and a reversion can be discounted
at a specified yield rate. (The Dictionary of Real Estate
Appraisal, 6th ed., 2015, Page 115.)
Value indications from the approaches are reconciled based
on the quality and quantity of available data in the approaches
with consideration given to the applicability of each approach
and the subject property type.
VALUATION APPROACHES
Approach Applicability Use
Cost Approach Not Applicable Not Used
Sales Comparison Approach Most Applicable Used
Income Capitalization Approach Not Applicable Not Used
The proposed acquisition does not include or result in
damages to any of the site improvements. For this reason, the
valuation in this appraisal includes 1) the site value, developed
through the sales comparison approach, and 2) the
contributory value of site improvements (if any) impacted by
the acquisition, developed through a modified cost approach.
As noted earlier and detailed later in the report, the subject has
limited site improvements that appear within the right-of-way
dedicated as shown on the survey.
VALUATION ANALYSIS
Land Valuation – Sales
Comparison Approach
Site Valuation The preferred method of land valuation is by direct
comparison of comparable sites which have sold recently. The
sales price of each comparable is converted into an
appropriate unit of comparison, and then compared on a direct
basis with the subject.
Adjustments are made to the comparables for market
recognized dissimilarities. Adjustments are used to account
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for differences between comparables and the subject. This
value conclusion is arrived at by extraction, judgment, and a
correlation process whereby greatest weight is given to the
sales that are most comparable to the subject.
The unit of comparison selected for the subject is a price per
lot. The physical and legal characteristics of the assemblage
would provide three lots with an average size of 1.2 acres.
This size is consistent with other residential lots in the
community. While some consideration is given to size, we
consider the price per lot most consistent with the market for
an end user. The following chart provides a summary of sales
found in the area. While some of the sales are not used for
direct comparison, we do consider it pertinent to provide the
information as background data to reflect the market.
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LAND SALES SUMMARY
South Quadrant Wallace Springs and Arey Roads
Statesville, NC
DEED
Book &
TAX PARCEL SALES LAND SALES PRICE Page Grantor/
NO. LOCATION DATE Number Price Area/Acres Per Acre Number Zoning Grantee
Subject SQ Wallace Springs & Jun-21 4733-21-6060 N/A 3.60 N/A N/A RA & R-20 N/A
Arey Roads (Three Lots)
Statesville, NC
1 Lot 45 Davidson Woods Apr-21 4722-69-2202 $22,000 1.07 $20,561 2808/1848 R-20 Aleximael Rosario/
212 Winding Cedar Dr. CMH Homes, Inc.
Statesville, NC
2 Lot 11 Buffalo Creek Jan-21 4722-59-5475 $57,600 2.01 $28,714 2776/751 R-20 Robert &
162 Buffalo Creek Dr. Rosa Maria Coelho/
Statesville, NC Robert
Nielson, Jr.
3 Lot 7 Buffalo Creek Mar-21 4723-50-9172 $44,000 2.31 $19,072 2798/2435 R-20 Blackburn
187 Buffalo Creek Dr. Enterprises, Inc./
Statesville, NC Kyle & Laura
Rogers
4 Lot 2 Buffalo Creek Feb-21 4722-59-0470 $30,000 1.55 $19,405 2781/1080 R-20 Blackburn
123 Buffalo Creek Dr. Enterprises, Inc./
Statesville, NC Benjamin &
Laura Lonca
5 Land & Lot 4 Jan-21 4723-62-9262 $45,000 7.78 $5,784 2777/1255 R-20 Max & Betty
Buffalo Shoals Road 4723-71-1758 Davidson/
Statesville, NC Brette &
Andrea Thomas
6 Land Jan-21 4724-45-6696 $95,000 7.50 $12,667 2770/460 R-20 WRGR
Off Westminster Dr Properties, LLC/
Statesville, NC Ilie Ou
7 Land May-21 4730-29-1455 $130,000 11.17 $11,638 2815/2237 R-S Kristie &
Lytton Farm Road Gaddis Pepper/
Troutman, NC Theodore &
Lisa Delisi
8 Land May-21 4741-35-1631 $225,000 22.32 $10,083 2812/372 R-S MMLP, LLC/
Perry Road Bruce Larson
Troutman, NC Rev. Trust
9 Land Nov-20 4732-28-8431 $1,600,500 106.82 $14,983 2758/992 R-20 Jerry Stinson
Wallace Springs Road 4732-18-7463 et al/
Statesville, NC Giant Oak, LLC
NOTES
Abbreviations used: N/A- Not Applicable, N.A.- Not Available
SOURCE
T.B. Harris, Jr. & Associates and parties involved.
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COMPARABLE LAND SALES LOCATION MAP
Sales One through Four are selected for direct comparison.
The remaining sales reflect the market for larger tracts of land.
In most cases, the land was purchased with the intent of
development. Sale Nine is the sale to Giant Oaks, LLC
referenced in the Community Analysis. The purchase price of
approximately $15,000 per acre reflects an increase in land
values for larger tracts in the area. As of the effective data
residential developers are fervently pursuing larger tracts of
land because of the low supply of residential properties and
dwindling supply of developable land. The other sales in the
data set were considered for direct comparison but were less
comparable than Sales One through Four. Regardless, the
market data does provide support for the conclusions from the
following analysis.
The conclusion of the highest and best use for the
development of three residential lots results in an overlapping
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analysis and valuation. The following simultaneously values
the three lots. We considered a discount for the value of the
three lots. However, given the small number of lots and the
relative simplicity of reconfiguring the land, we have values
the assemblage as an aggregate of the concluded values for
each lot.
Explanation of
Adjustments
Adjustments are considered for a variety of factors including
market and physical characteristics. The following provides
an analysis of each type of adjustments deemed appropriate
based on our research of the market. Typically, we would
provide an adjustment chart for the sales; however, given the
wide range in prices paid, the analysis includes details on each
sale used for direct comparison.
Sale One is a residential lot located in Davidson Woods. The
lot has some inferior physical characteristics compared to the
subject lots. The shape of the lot is long and narrow reducing
the building footprint. This sale is slightly smaller than the
three lots constituting the subject. Approximately the rear
third of the lot has steep topography limiting its utility.
Overall, this sale is inferior to the subject and warrants upward
adjustments for shape and topography.
Sale Two is a residential lot located in the Buffalo Creek
subdivision. This is a smaller subdivision with a comparable
location to the subject. This lot is significantly larger than the
subject. As shown on the exhibit, the size and shape are
superior to the subject lots. This is the highest price point in
the data set reflective of the market premium paid for larger
lots with high levels of utility. The topography of the site is
comparable to the subject. Overall, this lot is superior to the
subject because of its larger size and superior building
envelope.
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Sale Three is in Buffalo Creek as well. This site is slightly
larger than Sale Two but sold at a significantly lower price.
The analysis of this sale shows a location on a cul-de-sac with
only 57 feet of frontage. The site has an irregular shape that is
inferior to the subject. Conversely, the size of the lot is
significantly larger than the subject. Further, the location on a
cul-de-sac provides a higher level of privacy and seclusion
compared to the subject.
Sale Four is in Buffalo Creek as well. This site is smaller than
the other two lots used for comparison. The analysis of this
sale shows frontage on two sides of the lot increasing the area
dedicated for setbacks and reducing the building envelope.
The site is larger than the subject lots warranting a small
downward adjustment. The indication is that corner lots in this
market sell for less because of their smaller building envelope.
Market Adjustments The sales selected for direct comparison are reported as the
transfer of the fee simple interest with no unusual financing.
Therefore, no adjustments are warranted for property rights or
financing. The sales were reported as arm’s length
transactions; therefore, we make no adjustments for
conditions of sale. The market does not provide any empirical
evidence to support an adjustment for market conditions over
this time as all the sales closed in 2021.
The prices paid in the market show a range between $22,000
and $57,600. We acknowledge this is a wide range. The
analysis of each sale provides adequate information recognize
the various physical characteristics warranting adjustments.
For the non-cornet lots, we give credence to Sales Three and
Four as there are some offsetting characteristics. We conclude
that a value of $35,000 per lot is reasonable and supported by
the market. For the corner lot, we place credence on Sale Four
and conclude that a value of $30,000 is reasonable for the
corner lot.
As a test of reasonableness, we convert the concluded value
into a price per acre. Dividing $100,000 by the size of the
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subject of 1.04 acres indicates a rate of value of $27,778 per
acre, which is on the upper end of the range of the sales
provided. We consider this test of reasonableness supportive
of the concluded value from the analysis as the site provides
good utility for low-density residential development.
The concluded value for the land is $100,000. We convert this
rate to a rate per square foot of $0.638 per square foot. This
unit of measure is used in the following analyses.
Before Acquisition Land
Value Summary
In the before-acquisition valuation, we would include any site
improvements affected by the acquisition. However, the site
is vacant with no significant site improvements. Therefore, the
land value before the taking is summarized as follows.
Before Land Value $100,000
Site Improvements $0
Improvement Value $ N/A
Total Before Value $100,000
$0.638/SF
THE ACQUISITION
Description of the
Acquisition
The information provided to us by the City of Statesville
includes the taking of property rights for the project impacting
the subject. The acquisition includes areas on two of the three
parcels constituting the assemblage. The following summary
of acquisition areas is followed by a description of the rights
acquired and illustrations of the acquisition. Abbreviations
used in this section include:
PUE- Permanent Easement
TCE – Temporary Construction Easement
Area To Be Acquired Area Remaining Total Area
Fee Simple
Outside R/W
Fee Simple
Inside R/W
Land Area: 0 SF 0 SF 156,816 SF 156,816 SF
0.000 Ac. 0.000 Ac. 3.60 Ac. 3.60 Ac.
Easements:
11,238 SF 5,591 SF 1.0 Yr
0.258 Ac. 0.128 Ac.
PUE Temporary Construction Easement
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Easement Overview The rights to be acquired in each easement area are stipulated
in an easement agreement, a copy of which is included in the
addenda of this report. As noted in the agreement and
confirmed with the client, the rights extend only to the
construction and maintenance of those facilities identified in
the project plans, and not to subsequent projects.
Permanent Utility
Easement
The City of Statesville proposes a permanent utility easement
on the property for the Wallace Springs Utility Expansion
Project. The PUE will include the extension of utilities
including but not necessarily limited to municipal water and
sanitary sewer service to the proposed subdivision located
southwest of the subject.
Temporary Construction
Easement
The temporary construction easement extends ten feet on both
sides of the proposed easement. Based on the assumed right-
of-way for Wallace Springs Road, the proposed easement will
abut the right-of-way. Areas within rights-of-way for an
existing road are usually removed from land areas acquired.
Therefore, we have included an area of ten feet extending into
the site from the proposed easement.
Site Improvements
There are no site improvements within the proposed easement
area.
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The following survey was provided for the assignment. The
survey shows the PUE only. We have derived the size of the
TCE from information on the survey and is considered
reasonable accurate.
SURVEY
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SURVEY (CORNER PARCEL)
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Effects of the Taking The overall functional utility of the site is not significantly
impacted by the acquisition. The permanent easement intends
to extend utilities in the area. Additionally, we assume that
access will be reasonably provided during the one-year TCE
period.
The proposed easements are located within the designated 35-
foot setback for the R-20 zoning district and the 25-foot
setback for the corner lot. This area cannot be built upon based
on its current zoning designation. Based on the location of the
easement adjacent to the assumed right-of-way, the subject
will not be adversely impacted by the proposed easement.
Highest and Best Use After
the Taking
The highest and best use of the property after the taking
remains the same as before the taking which is for the
development of three residential lots.
Valuation of the Property
After the Taking
The value of the property after the taking is estimated in the
same manner as the value before the acquisition. As with the
“before value,” the sales comparison approach for the land is
used in the “after value.” The same sales are used as well since
the total site size is not reduced by the project. All the
currently allowed uses under the subject’s zoning are still
allowed in the after scenario. Therefore, we conclude a value
of $100,000 for the 3.6 acres or $0.638 per square foot.
Acquisition of Easements The calculations for the easement acquisition are shown
below.
The PUE totals 11,238 square feet. Since the property will still
be owned in fee simple, an allocation less than 100% is
warranted. That is, the entire bundle of rights is not taken from
the property owner. Many easements are located within
designated setbacks. The utility of the acquired area before
and after the proposed taking is considered in the portion of
the bundle of rights taken.
The proposed acquisition is located along the assumed edge of
the right-of-way for Wallace Springs Road. The easement has
a depth of 20.17 feet on the northern end and 20 feet on the
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southern boundary. The easement is located entirely within the
setback for the R-20 zoning district. Based on the analysis, we
conclude that an allocation of 50% of fee value is reasonable
for the proposed acquisition. The calculation is as follows:
Temporary Construction
Easement
The area in the temporary construction easement is used by
the contractor during construction. The estimated time frame
used for the temporary construction easement is one year, as
is typical for similar projects. Upon completion of the project,
the previously held property rights in this area revert to the
property owner.
Consideration for compensation of this area includes the
location and extent of the easement, typical land returns and
the temporary nature of the easement. We consider a
reasonable estimate of the TCE impact to be 25% over the area
of the easement. The calculations is shown as follows:
FINAL VALUE CONCLUSION
In estimating the value of the land to be acquired, the sales
comparison approach is used. Compensation is
recommended based on the value of the land on a per unit
basis. The improvements will be unaffected by the taking or
will be replaced with like kind materials, the contributory
value of the improvements remains the same before and
immediately after the acquisition
In developing an opinion of land value for the subject, we
have relied solely on the sales comparison approach as an
Easement - PUE
Easement Area (SF): 11,238
x Land Unit Value: $0.638
x Easement Percentage: 50%
Easement Value: $3,585
Temporary Construction Easement
Easement Area (SF): 5,591
x Land Unit Value: $0.638
x Easement Percentage: 25%
Easement Value: $892
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indication of value in both the before and after scenarios. It
is our opinion, based on our analysis of the facts and
information presented in this report, that a reasonable
opinion of the market value for the subject, based on the
proposed acquisition, as of the date of value, is calculated as
follows:
The opinions, estimates, and forecasts included in this
appraisal document are by their nature prospective and
therefore subject to uncertainty and risk. Actual events and
property performance may vary based on economic
conditions that are subject to fluctuation about lenders,
interest rates, supply and demand, capitalization rates,
investor motivation, and the like. Also, in keeping with
traditional appraisal practice our conclusions and forecasts
are based in part upon third party sources, discussions,
meetings, and may not be in all cases from reliable sources.
Our opinion while supported throughout this document with
research and reason is based on available information at the
time of preparing our opinion. Therefore, we are not
responsible for future happenings that are not reasonably
expected to occur as of the date of the analysis.
EXPOSURE AND
MARKETING TIME
Exposure Time Had the property been exposed to the open market prior to our
date of valuation we believe the property would have required
After Land Value Before Easements: 100,000$
Less: Fee Simple Acquisition Outside R/W 0 SF x $0.638 /SF x 100% -$
Less Permanent Easement(s):
PUE 11,238 SF x $0.638 /SF x 50% (3,585)$
Less: Temporary Construction Easement 5,591 SF x $0.638 /SF x 25% (892)$
After Land Value: 95,523$
Total After Land Value*: 95,525$
*Rounded to the nearest $25
DIFFERENCE BETWEEN BEFORE AND AFTER VALUE
Difference
Land Value 4,475$
Improvement Value
Total Value rounded to nearest $25 4,475$
N/A
100,000$
N/A
100,000$
Before After
95,525$
N/A
95,525$
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an exposure time of 6 to 9 months. The imbalance of supply
and demand for land and residential land tends to indicate a
shortened exposure time.
Marketing Time It is our opinion that an appropriate marketing time from the
date of valuation going forward to consummate a sale at the
appraised value would be 6 to 12 months. The marketing time
could be extended if the potential buyer intends to develop or
redevelop the property. As noted, annexation, rezoning and the
possibility of other conditions of sale could extend the
marketing time to the upper end of the range. Should the buyer
maintain its current use, then the marketing time would be on
the lower end of the range.
Michael P. Berkowitz
Appraiser
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ADDENDA
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Certifications
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CERTIFICATION OF THE APPRAISER
I, Michael P. Berkowitz, 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, impartial, and 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 no
personal interest with respect to the parties involved.
4. I have performed no services, as an appraiser or in any other capacity, regarding the property
that is the subject of this report within the three-year period immediately preceding acceptance
of this assignment.
5. I have no bias with respect to the property that is the subject of this report or to the parties
involved with this assignment.
6. My engagement in this assignment was not contingent upon developing or reporting
predetermined results.
7. My compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value that favors the cause of the client, the
amount of the value opinion, the attainment of a stipulated result, or the occurrence of a
subsequent event directly related to the intended use of this appraisal.
8. The reported analyses, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.
9. The use of this report is subject to the requirements of the Appraisal Institute relating to review
by its duly authorized representatives.
10. I have made a personal inspection of the property that is the subject of this report.
11. No one provided significant real property appraisal assistance to the person(s) signing this
certification other than those individuals having signed the attached report.
Michael P. Berkowitz (NC State Certified General Real Estate Appraiser #A6169)
(SC State Certified General Real Estate Appraiser #CG6277)
July 9, 2021
Date (Rev: 06/18/12)
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Assumptions and Limiting Conditions
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ASSUMPTIONS AND LIMITING CONDITIONS
Limit of Liability
The liability of T.B. HARRIS, JR. & ASSOCIATES and employees is limited to the client only
and to the fee actually received by our firm. Further, there is no accountability, obligation, or
liability to any third party. If this report is placed in the hands of anyone other than client, the client
shall make such party aware of all limiting conditions and assumptions of the assignment and
related discussions. Further, client will forever indemnify and hold T.B. HARRIS, JR. &
ASSOCIATES, its officers, and employees harmless from any claims by third parties related in
any way to the appraisal or study which is the subject of the report. Third parties shall include
limited partners of client if client is a partnership and stockholders of client if client is a
corporation, and all lenders, tenants, past owners, successors, assigns, transferees, and spouses of
client. T.B. HARRIS, JR. & ASSOCIATES will not be responsible for any costs incurred to
discover or correct any deficiencies of any type present in the property, physically, financially,
and/or legally.
Copies, Distribution, Use of Report
Possession of this report or any copy of this report does not carry with it the right of publication,
nor may it be used for other than its intended use; the physical report remains the property of T.B.
HARRIS, JR. & ASSOCIATES for the use of the client, the fee being for the analytical services
only.
The bylaws and regulations of the Appraisal Institute require each member and candidate to control
the use and distribution of each report signed by such member or candidate; except, however, the
client may distribute copies of this report in its entirety to such third parties as he may select;
however, selected portions of this report shall not be given to third parties without the prior written
consent of the signatories of this report. Neither all nor any part of this report shall be disseminated
to the general public by the use of advertising media, public relations, news, sales or other media
for public communication without the prior written consent of T.B. HARRIS, JR. &
ASSOCIATES.
Confidentiality
This report is to be used only in its entirety and no part is to be used without the whole report. All
conclusions and opinions concerning the analysis as set forth in the report were prepared by T.B.
HARRIS, JR. & ASSOCIATES whose signatures appear on the report. No change of any item in
the report shall be made by anyone other than T.B. HARRIS, JR. & ASSOCIATES. T.B. HARRIS,
JR. & ASSOCIATES shall have no responsibility if any such unauthorized change is made.
T.B. HARRIS, JR. & ASSOCIATES may not divulge the material contents of the report, analytical
findings or conclusions, or give a copy of the report to anyone other than the client or his designee
as specified in writing except as may be required by the Appraisal Institute as they may request in
confidence for ethics enforcement, or by a court of law or body with the power of subpoena.
Trade Secrets
This report was obtained from T.B. HARRIS, JR. & ASSOCIATES and consists of “trade secrets
and commercial or financial information” which is privileged and confidential and exempted from
disclosure under 5 U.S.C. 552 (b) (4) of the Uniform Commercial Code. T.B. HARRIS, JR. &
ASSOCIATES shall be notified of any request to reproduce this report in whole or in part.
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Information Used
No responsibility is assumed for accuracy of information furnished by or work of others, the client,
his designee, or public records. We are not liable for such information or the work of
subcontractors. The comparable data relied upon in this report has been confirmed with one or
more parties familiar with the transaction or from affidavit or other sources thought reasonable; all
are considered appropriate for inclusion to the best of our factual judgment and knowledge. An
impractical and uneconomic expenditure of time would be required in attempting to furnish
unimpeachable verification in all instances, particularly as to engineering and market-related
information. It is suggested that the client consider independent verification as a prerequisite to
any transaction involving sale, lease, or other significant commitment of funds for the subject
property.
Financial Information
Our value opinion(s) have been based on unaudited financials, and other data provided to us by
management and/or owners. If these reports are found to be inaccurate, we reserve the right to
revise our value opinion(s). It is noted we are depending on these accounting statements as being
accurate and our interpretation of these statements as being accurate as well. If these assumptions
later prove to be false, we reserve the right to amend our opinions of value.
Testimony, Consultation, Completion of Contract for Report Services
The contract for report, consultation, or analytical service is fulfilled and the total fee payable upon
completion of the report, unless otherwise specified. T.B. HARRIS, JR. & ASSOCIATES or those
assisting in preparation of the report will not be asked or required to give testimony in court or
hearing because of having made the report, in full or in part, nor engage in post report consultation
with client or third parties except under separate and special arrangement and at an additional fee.
If testimony or deposition is required because of any subpoena, the client shall be responsible for
any additional time, fees, and charges, regardless of issuing party.
Exhibits
The illustrations and maps in this report are included to assist the reader in visualizing the property
and are not necessarily to scale. Various photographs, if any, are included for the same purpose as
of the date of the photographs. Site plans are not surveys unless so designated.
Legal, Engineering, Financial, Structural or Mechanical Nature, Hidden Components, Soil
No responsibility is assumed for matters legal in character or nature, nor matters of survey, nor of
any architectural, structural, mechanical, or engineering nature. No opinion is rendered as to the
title, which is presumed to be good and marketable. The property is appraised as if free and clear,
unless otherwise stated in particular parts of the report. The legal description is assumed to be
correct as used in this report as furnished by the client, his designee, or as derived by T.B.
HARRIS, JR. & ASSOCIATES.
T.B. HARRIS, JR. & ASSOCIATES has inspected as far as possible, by observation, the land and
the improvements; however, it was not possible to personally observe conditions beneath the soil,
or hidden structural, mechanical or other components, and T.B. HARRIS, JR. & ASSOCIATES
shall not be responsible for defects in the property which may be related.
The report is based on there being no hidden, unapparent, or apparent conditions of the property
site, subsoil or structures or toxic materials which would render it more or less valuable. No
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responsibility is assumed for any such conditions or for any expertise or engineering to discover
them. All mechanical components are assumed to be in operable condition and status standard for
properties of the subject type. Conditions of heating, cooling, ventilation, electrical, and plumbing
equipment are considered to be commensurate with the condition of the balance of the
improvements unless otherwise stated. We are not experts in this area, and it is recommended, if
appropriate, the client obtain an inspection of this equipment by a qualified professional.
If T.B. HARRIS, JR. & ASSOCIATES has not been supplied with a termite inspection, survey or
occupancy permit, no responsibility or representation is assumed or made for any costs associated
with obtaining same or for any deficiencies discovered before or after they are obtained. No
representation or warranties are made concerning obtaining the above mentioned items.
T.B. HARRIS, JR. & ASSOCIATES assumes no responsibility for any costs or consequences
arising due to the need, or the lack of need, for flood hazard insurance. An agent for The Federal
Flood Insurance Program should be contacted to determine the actual need for Flood Hazard
Insurance.
Legality of Use
The report is based on the premise that there is full compliance with all applicable federal, state
and local environmental regulations and laws unless otherwise stated in the report; further, that all
applicable zoning, building and use regulations, and restrictions of all types have been complied
with unless otherwise stated in the report. Further, it is assumed that all required licenses, consents,
permits, or other legislative or administrative authority, local, state, federal and/or private entity
or organization have been or may be obtained or renewed for any use considered in the value
estimate.
Component Values
The distribution of the total valuation in this report between land and improvements applies only
under the existing program of utilization. The separate valuations for land and building must not
be used in conjunction with any other report and are invalid if so used.
Auxiliary and Related Studies
No environmental or impact studies, special market study or analysis, highest and best use analysis,
study or feasibility study has been required or made unless otherwise specified in an agreement
for services or in the report.
Dollar Values, Purchasing Power
The market value estimated and the costs used are as of the date of the estimate of value, unless
otherwise indicated. All dollar amounts are based on the purchasing power and price of the dollar
as of the date of the value estimate.
Inclusions
Furnishings and equipment or personal property or business operations, except as specifically
indicated and typically considered as a part of real estate, have been disregarded with only the real
estate being considered in the value estimate, unless otherwise stated. In some property types,
business and real estate interests and values are combined.
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Proposed Improvements, Conditional Value
Improvements proposed, if any, onsite or offsite, as well as any repairs required, are considered
for purposes of this report to be completed in a timely, good and workmanlike manner, according
to information submitted and/or considered by T.B. HARRIS, JR. & ASSOCIATES. In cases of
proposed construction, the report is subject to change upon inspection of property after
construction is completed.
Value Change, Dynamic Market, Influences, Alteration of Estimate
The estimated value, which is defined in the report, is subject to change with market changes over
time. Value is highly related to exposure, time, promotional effort, terms, motivation, and
conditions surrounding the offering. The value estimate considers the productivity and relative
attractiveness of the property physically and economically in the marketplace.
In cases of reports involving the capitalization of income benefits, the estimate of market value or
investment value or value in use is a reflection of such benefits and T.B. HARRIS, JR. &
ASSOCIATES' interpretation of income and yields and other factors derived from general and
specific client and market information. Such estimates are as of the date of the estimate of value;
thus, they are subject to change as the market and value is naturally dynamic.
The “estimate of market value” in the report is not based in whole or in part upon the race, color,
or national origin of the present owners or occupants of the properties in the vicinity of the property
appraised.
Report and Value Estimate
Report and value estimate are subject to change if physical or legal entity or financing differ from
that envisioned in this report.
Management of the Property
It is assumed that the property which is the subject of this report will be under prudent and
competent ownership and management.
Hazardous Materials
Unless otherwise stated in this report, the existence of hazardous substances, including without
limitation, asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals,
which may or may not be present on the property, or other environmental conditions, were not
called to the attention of nor did T.B. HARRIS, JR. & ASSOCIATES become aware of such during
their inspection. T.B. HARRIS, JR. & ASSOCIATES had no knowledge of the existence of such
materials on or in the property unless otherwise stated. T.B. HARRIS, JR. & ASSOCIATES,
however, is not qualified to test such substances or conditions. If the presence of such substances
such as asbestos, urea formaldehyde foam insulation, or other hazardous substances or
environmental conditions, may affect the value of the property, the value estimate is predicated on
the assumption that there is no such condition on or in the property or in the proximity that it would
cause a loss in value. No responsibility is assumed for any such conditions, nor for any expertise
or engineering knowledge required to discover them.
Soil and Subsoil Conditions
Unless otherwise stated in this report, T.B. HARRIS, JR. & ASSOCIATES does not warrant the
soil or subsoil conditions for toxic or hazardous waste materials. Where any suspected materials
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might be present, we have indicated in the report; however, T.B. HARRIS, JR. & ASSOCIATES
are not experts in this field and recommend appropriate engineering studies to monitor the presence
or absence of these materials.
Americans with Disabilities Act (ADA)
“T.B. HARRIS, JR. & ASSOCIATES has not made a specific compliance survey and analysis of
this property to determine whether or not it is in conformity with the various detailed requirements
of the Americans with Disabilities Act (ADA), which became effective January 26, 1992. It is
possible that a compliance survey of the property together with a detailed analysis of the
requirements of the ADA could reveal that the property is not in compliance with one or more of
the requirements of the Act. If so, this fact could have a negative effect upon the value of the
property. Since T.B. HARRIS, JR. & ASSOCIATES has no direct evidence relating to this issue,
we did not consider possible non-compliance with the requirements of ADA in estimating the
value of the property.”
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Deeds/Legal Descriptions
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Surveys
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Easement Language
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Appraiser License
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Qualifications of the Appraiser
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QUALIFICATIONS OF THE APPRAISER
Michael P. Berkowitz T.B. Harris, Jr. & Associates
1430 South Mint Street, Suite 102
Charlotte, North Carolina 28203
(704) 334-4686
FAX (704) 334-2759
EDUCATION AND CREDENTIALS
• Duke University
Major: Economics 1985-1989
• Central Piedmont Community College
R-1 - Introduction to Real Estate Appraisal 2002
R-2 - Valuation Principles and Procedures, 2002
R-3 - Applied Residential Property Valuation, 2002
G-1 - Introduction to Income Property Appraisal, 2003
• Bob Ipock and Associates
G-2 - Advanced Income Capitalization Procedures, 2003
G-3 - Applied Property Income Valuation 2004
• Appraisal Institute
520 Highest and Best Use and Market Analysis, 2004
Seminar Rates, Multipliers and Ratios 2005
530 Advanced Sales Comparison and Cost Approaches 2006
Seminar Apartment Appraisal, Concepts & Applications 2009
Seminar Appraising Distresses Commercial Real Estate 2009
Seminar Appraising Convenience Stores 2011
Seminar Analyzing Operating Expenses 2011
Seminar Argus Certification 2013
501 Advanced Income Capitalization Approach 2014
502 Quantitative Analysis 2015
PS-006RB Appraisal of Local Retail Properties 2016
• McKissock Learning Center
Seminar Basic Hotel Appraising 2019
Seminar Basics of Expert Testimony 2019
Seminar Advanced Hotel Appraising 2019
AFFILIATIONS AND ACTIVITIES
• Association Memberships
North Carolina State Certified General Real Estate Appraiser, October 2006, Certificate No.
A6169
RELATED EXPERIENCE
• Provided real estate consulting services for a variety of clients including real estate brokers,
property owners and financial planners
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• Performed financial feasibility studies for multiple property types including golf communities,
and renovation projects.
• Developed plan for self-contained communities.
• Represented property owners, tenants and local governments for property tax appeals including
but not necessarily limited to race tracks, high-tech manufacturing facilities and complex
income producing properties.
APPRAISAL EXPERIENCE
A partial list of types of properties appraised include:
Retail Properties, Single and Multi-Tenant, Proposed and Existing
Office Single and Multi-Tenant Proposed and Existing
Mixed-Use Properties, Proposed and Existing
Industrial Properties, Warehouse, Flex and Manufacturing
Multifamily developments existing and proposed
Medical office space
Vacant Land
Condemnation
C-Stores
Race Tracks
CLIENTELE
Bank of America
Wells Fargo
South State Bank
First Citizens Bank
RBC Centura Bank
City of Charlotte
City of Concord
Union County
Cabarrus County
City of Statesville
Town of Matthews
Mecklenburg County
BB & T
Aegon USA Realty Advisors
Sun Trust Bank
First Charter Bank
Regions Bank
Charlotte Housing Authority
Alliance Bank and Trust
Broadway Bank
Duke Energy Corporation
Jim R. Funderburk, PLLC
Hamilton, Fay, Moon, Stephens, Steele & Martin
Senator Marshall A. Rauch
Perry, Bundy, Plyler & Long, LLP
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Robinson, Bradshaw & Hinson
CSX Real Property
Baucom, Clayton, Burton, Morgan & Wood, PA
City of Mount Holly
Our Towns Habitat for Humanity
Parker, Poe, Adams & Bernstein, LLP
Central Carolina Bank
Horack, Talley, Pharr & Lowndes, P.A.
Hospice of Iredell County
New Dominion Bank
Peoples Bank
CLI Capital
Horizon Development Properties
Hazelhurst & Blake, PLLC
Grier, Furr & Crisp
Nexsen Pruett, PLLC
Blue Harbor Bank
Southern Community Bank and Trust