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APPRAISAL REPORT
OF:
A Vacant Tract of Land Located at:
The Northwest Corner of Sanford Wilson Rd. & H.R. Ashbaugh
Dr. Truth or Consequences, NM 87901
Market Value As Is Effective January 23, 2015
For: New Mexico Spaceport Authority
c/o Mr. Ryan T. Noble, General Counsel 901 E. University Ave.,
Suite 965L
Las Cruces, NM 88001
By: Dominion Property Advisors
1429 Central Ave. NW, Suite #1 Albuquerque, New Mexico 87104
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February 27, 2015 New Mexico Spaceport Authority c/o Mr. Ryan T.
Noble, General Counsel 901 E. University Ave., Suite 965L Las
Cruces, NM 88001 575.373.6110 Re: Appraisal of a vacant tract of
land located at:
The northwest corner of Sanford Wilson Rd. & H.R. Ashbaugh
Dr. Truth or Consequences, NM 87901 (Dominion Job No.
14-205-665)
Dear Mr. Noble: At your request, we made an inspection of the
above-referenced property and investigated the current real estate
market in order to provide an opinion of market value as is of the
fee simple interest in the subject property. The intended use of
the appraisal report is to provide an opinion of market value for
decision related to potential asset acquisition. Your attention is
directed to the Assumptions and Limiting Conditions, found in the
Introduction, which identify the scope and use of this report. This
appraisal report is intended to comply with the reporting
requirements set forth under the Uniform Standards of Professional
Appraisal Practice (USPAP) and/or guidelines of the Appraisal
Institute. The extent of research and scope of the project have
been clearly outlined in the Scope of Work section of this report.
The report is a brief recapitulation of the appraisers data,
analysis, and conclusions consistent with the reporting guidelines
of Standards Rule 2-2 (a) and is intended to meet the appraisal
requirements of the Financial Institution Recovery Reform and
Enforcement Act of 1989 (12 U.S.C. 331-3351). Supporting
documentation is retained in the appraisers file. The appraisal is
also intended to be in compliance with the Code of Professional
Ethics of the Appraisal Institute. A copy of your letter of
authorization and list of appraisal instructions has been included
in the addenda. The appraisers are unbiased with respect to the
parties involved and have no present or contemplated future
interest in the property appraised. Accordingly, statements of fact
are, to the best of our knowledge, correct, and compensation for
making this appraisal is not contingent on the value conclusions
reported herein. Furthermore, this appraisal was not based on a
requested minimum valuation, a specific valuation, or the approval
of a loan. Based on the data and analysis presented herein, the
following is our opinion of market value as is of the fee simple
interest in the subject property, effective January 23, 2015:
Market Value As Is: $1,045,000 THE ABOVE MARKET VALUE CONCLUSION IS
QUALIFIED BY THE GENERAL ASSUMPTIONS AND LIMITING CONDITIONS SET
FORTH IN THIS REPORT.
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Mr. Ryan T. Noble New Mexico Spaceport Authority February 27,
2015 Page 2 Respectfully submitted, DOMINION PROPERTY ADVISORS LLC
BRIAN D. WHITE, MAI, CCIM GENERAL CERTIFIED APPRAISER, NM #756-G
ANTHONY KUNA GENERAL CERTIFIED APPRAISER, NM #03041-G JARED C.
MICHNOVICZ APPRENTICE APPRAISER, NM #03048-A
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TABLE OF CONTENTS
PREFACE Executive Summary Maps/Site Surveys/Floor Plans
Photographs of the Subject Property
INTRODUCTION 4Overview of the Appraised Property 4Legal
Description 4History of the Subject Property 4Scope of the
Assignment 4Intended Use/Intended User(s) 5Market Value Defined
5Property Rights Defined 5Marketing Time 5Effective Dates of
Appraisal 6
LIMITING CONDITIONS AND ASSUMPTIONS 7DESCRIPTION AND ANALYSIS
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Summary T or C / Sierra County Profile 11Immediate Neighborhood
14Site Description 15Building Description 16Highest and Best Use
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VALUATION 18Sales Comparison Approach 18
RECONCILIATION OF VALUE INDICATIONS 38CERTIFICATION
39ADDENDA
Flood Plain Map Qualifications of the Appraiser Engagement
Letter
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Dominion Property Advisors
EXECUTIVE SUMMARY Subject: A vacant tract of land Location: NWC
of Sanford Wilson Rd. & H.R. Ashbaugh Dr. Truth or
Consequences, NM 87901 Client: New Mexico Spaceport Authority c/o
Mr. Ryan T. Noble, General Counsel 901 E. University Ave., Suite
965L Las Cruces, NM 88001 Site Area: 6.0 acres or 261,360 SF Site
Description: The site is mostly level, rectangular in shape and
above street grade along the west side of H.R. Ashbaugh Dr.
Site Improvements: None Zoning: C-1 Flood Zones: Zone X Property
Rights Appraised: Fee Simple Highest and Best Use: As Is: Hold for
future development Value Conclusions: Market Value As Is:
$1,045,000 Effective Dates: Market value as is effective January
23, 2015. The
date of this report is February 27, 2015.
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Dominion Property Advisors
REGIONAL MAP
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Dominion Property Advisors
CITY MAP
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Dominion Property Advisors
NEIGHBORHOOD MAP
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Dominion Property Advisors
AERIAL VIEW
Note: property lines are approximate and are for illustration
purposes only.
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Dominion Property Advisors
SUBJECT SURVEY
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Dominion Property Advisors
SUBJECT PHOTOS
Subject site looking north from south property line
Subject site looking northwest from southeast corner
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Dominion Property Advisors
Location of proposed visitor center building. Billboard to be
removed.
Street scene looking east along Sanford Wilson Rd.
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Dominion Property Advisors
Street scene looking north along H.R. Ashbaugh Dr.
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INTRODUCTION Overview of the Appraised Property The subject of
this appraisal is a vacant tract of land containing a total site
area of 6.0 acres fronting the northwest corner of Sanford Wilson
Rd. and H.R. Ashbaugh Dr. in Truth or Consequences, NM. The subject
also has good visibility and substantial frontage along the west
side of Interstate 25. The subject propertys metro address has not
yet been determined. This report will provide opinions of market
value as is and hypothetical market value as if complete of the fee
simple interest in the subject property, effective January 23,
2015.
Legal Description According to Sierra County records, the
subject is legally defined as follows:
Parcel 2, New Hot Springs Retail Center as recorded September
26, 2013 in Book 122, Page 1736, Sierra County, NM within Section
28, Township 13 South, Range 4 West, NMPM.
History of the Subject Property Ashbaugh Construction Co. Inc.
has owned the subject property for approximately 10 years. The
subject has been under contract since October 2012 to sell to New
Mexico Spaceport Authority for $1,045,440 or $4/SF. Based on the
research and analysis contained herein, we believe the subjects
current contract purchase price, despite being negotiated more than
two years ago, is representative of market value. We noted a
billboard located on the subjects west property line (frontage
along Interstate 25); however, we were not provided details
regarding the billboard lease. We were informed that this billboard
was to be razed upon purchase of the subject site to make way for a
New Mexico Spaceport visitors center. The buyer (New Mexico
Spaceport Authority) was planning to construct a visitor center for
the New Mexico Spaceport at a reported cost of approximately
$4,848,048 or $762.99/SF (based on gross square footage of 6,354
SF). The proposed building was intended to serve as a visitor
center, ticketing center and embarking facility for transport to
Spaceport America for guided tours; however, Virgin Galactic's
suborbital space plane SpaceShipTwo suffered a serious malfunction
during a rocket-powered test flight over Mojave, California on
October 31, 2014 resulting in the loss of the spacecraft. The New
Mexico Spaceport, a $220 million facility owned by the State of New
Mexico located roughly 15 miles southeast of Truth or Consequences,
has been completed; however, commercial space flights by Virgin
Galactic have been delayed indefinitely due to recent events. As
such, the New Mexico Spaceport Authority has postponed plans to
develop the proposed visitors center indefinitely. To the best of
our knowledge there has been no other real estate activity
pertaining to the subject property in the last three years.
Scope of the Assignment The assignment is to provide an opinion
of market value as is of the fee simple interest in the subject
property and to deliver an appraisal report of our findings and
conclusions. This document is an Appraisal Report consistent with
reporting requirements of the Uniform Standards of Professional
Appraisal Practice (USPAP). The appraisers have:
Made a physical appraisal inspection of the subject property as
well as a visual inspection of the surrounding neighborhood.
Relied on a visual inspection of the site and reviewed Sierra
County Assessor records in order to identify documented or apparent
easements, restrictions or encroachments.
Concluded a highest and best use.
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researched and collected relevant vacant land sales data,
derived appropriate adjustments and reconciled sales data and
subsequent analysis into a credible indication of market value as
is for the subject site via the sales comparison approach.
Excluded the cost approach as the subject site is vacant.
Excluded the income approach as vacant parcels similar to the
subject are rarely leased in the
subjects immediate market area and sales of ground-leased
parcels are virtually non-existent; Reconciled all data and
analysis into a final opinion of market value as is for the subject
property.
The appraisal report is intended to conform to the guidelines of
the Appraisal Institute. The report is a recapitulation of the
appraisers data, analysis, and conclusions consistent with the
reporting guidelines of Standards Rule 2-2 (a). Supporting
documentation is retained in the appraisers file.
Intended Use/Intended User(s) The intended user of this report
is New Mexico Spaceport Authority. The report is intended for use
by New Mexico Spaceport Authority as an aid in decisions related to
asset acquisition. This appraisal may not be used or relied upon by
any individual or entity other than the client for whom it was
prepared.
Market Value Defined Market value means 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. 5. 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. Source: Department of the Treasury,
Office of the Comptroller of the Currency, 12 CFR Part 34 [Docket
No. 90-16], Real Estate
Appraisals, published in the Federal Register, Vol. 55 No. 165,
August 24, 1990: Final Rule.
Property Rights Defined The fee simple ownership right is being
appraised in this assignment as the subject is not currently
encumbered by any lease agreements. The 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. Source: The
Dictionary of Real Estate Appraisal, 5th Edition, Appraisal
Institute, Chicago, 2010, p. 78)
Marketing Time A reasonable exposure time is the amount of time,
leading up to the date of market value, necessary to expose a
property to the open market in order to achieve a sale. Marketing
periods for similar sales of this
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type of property typically range from a few to 12 months. In our
opinion, less than 12 months is a reasonable exposure time for the
subject under current market conditions. The projected marketing
time is the length of time it would probably take to sell the
subject placed on the market as of the appraisal date. If placed on
the market and appropriately priced, we believe there is a high
likelihood the subject would sell within less than three years.
During the foreseeable future, we project that the marketing time
for the subject should be equal to or lower than the estimated
exposure time, i.e., less than three years. Effective Dates of
Appraisal Our most recent inspection of the subject property was
January 23, 2015; therefore, the effective date of market value as
is is January 23, 2015. The date of this report is February 27,
2015.
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LIMITING CONDITIONS AND ASSUMPTIONS The appraisal described and
contained herein is expressly limited and conditioned upon the
terms, assumptions and other matters contained in this section
entitled "Limiting Conditions and Assumptions." Said limiting
conditions and assumptions are hereby incorporated into the
appraisal in their entirety by this reference. Appraisal Report
This document represents an Appraisal Report as stated in Standards
Rule 2-2 (a). This appraisal report is intended to
comply with the reporting requirements set forth under Standards
Rule 2-2 (a) of the Uniform Standards of Appraisal Practice (USPAP)
for an appraisal report. The scope of this report has been detailed
in the Scope of Work section which clearly outlines approaches used
to estimate value.
A. Scope of the Appraisal Dominion Property Advisors
("Appraiser"), acting herein by and through its authorized
appraisers, have been retained
by the Client to provide an opinion of market value as is of the
fee simple interest in the Property, which opinion is fully set
forth in the Appraisal. In compiling the Appraisal, the Appraisers
have relied upon information provided to them by the Client. The
assumptions which have been made concerning the Appraisal include
the foregoing and other specific assumptions more particularly set
forth in the Appraisal. The Appraisers have not independently
verified all of the information furnished to them or assumptions
made with respect to the Appraisal unless otherwise indicated by
the Appraisers and therefore are not responsible for their content
or their effect on the Market Value of the Property.
B. Intended Use of the Appraisal The Appraisers have been
engaged by the Client to provide an opinion of market value as is
of the fee simple interest
in the Property for making a credit decision in a real estate
transaction. Any other use of the Appraisal without the prior
written consent of the Appraisers is strictly forbidden. Any
unauthorized use of the Appraisal will render the Appraisal null
and void and of no force or effect.
C. Severability No portion of the Appraisal may be reproduced in
whole or in part without the prior written consent of the
Appraisers. D. Copies, Publication, Distribution, Use and Ownership
of Report Possession of this report or any copy thereof does not
carry with it the right of publication, nor may it be used for
other
than its intended use; the physical report(s) remain the
property of Dominion Property Advisors 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 appraisal report signed by such Member or
Candidate; this appraisal report shall not be given to third
parties without the prior written consent of the signatories of
this appraisal report. Neither all nor any part of this appraisal
report shall be disseminated to the general public by use of
advertising media, public relations, news, sales or other media for
public communication without the prior written consent of Dominion
Property Advisors.
E. Other Services The Appraisers have not been engaged to
fulfill any services other than those set forth in the discussions
with the lender,
the terms and conditions of which are hereby incorporated herein
by this reference. The Appraisers are not obligated to provide any
other services, including but not limited to, testimony in court or
before any other body charged with interpretation of enforcement of
the Appraisal. The Appraisers shall not provide any post-appraisal
consultations with
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the Client or other parties without the payment of additional
fees of the Appraiser's normal hourly rates for such services then
in effect.
If Appraisers shall be required to provide any testimony
pursuant to any subpoena, Client shall pay any costs and
expenses
associated with such testimony, which shall include, but not be
limited to, reasonable attorneys' fees and compensation of the
Appraisers at their normal hourly fee.
F. Real Estate Values Due to the nature of real estate valuation
and the complexities of external and internal factors which dictate
the Market
Value and Prospective Market Value of any real estate, and the
rapid changes and fluctuations with respect to the valuation of
real estate, the opinion of the Appraisers set forth in the
Appraisal concerning the Market Value of the Property is reliable
as of the Effective Date and should not be considered as reliable
at any time thereafter.
G. No Guarantee or Warranty The Appraisers make no guarantee or
warranty, whether implied or expressed, concerning the Market Value
and
Prospective Market Value set forth in the Appraisal. The
Appraisal merely set forth the Appraisers opinions of such Market
Values based upon information submitted by the Client and
assumptions made by the Appraisers with respect to the
Property.
H. Americans with Disabilities Act "ADA" The appraisers have not
made or been furnished with a specific compliance study to
determine if the subject property
(existing and or proposed) is in compliance with the specialized
requirements of the ADA. It is possible that the subject property
is not in compliance with the ADA requirements which became
effective in January of 1992. This could negatively impact the
market value of the subject property and any such finding might
require revision of this appraisal and its market value estimate.
Unless evidence is furnished to the contrary, the appraiser assumes
compliance. It is recommended that the Client obtain an expert
opinion in regard to the specific requirements of the ADA.
I. Legal, Engineering, Financial, Structural or Mechanical
Components; Nature, Hidden or Unapparent Conditions, and
Soil No responsibility is assumed for matters legal in character
or nature, or matters of survey, nor of any architectural,
structural, mechanical or engineering nature. No opinion is
rendered as to the title of the subject property, which is presumed
to be good and merchantable. 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 the Appraisers.
Please note that no advice is given regarding mechanical
equipment or structural integrity or adequacy, nor soils and
potential for settlement, drainage and such (seek assistance
from qualified architect and/or engineer), nor matters concerning
liens, title status, legal marketability and such (seek legal
assistance). The lender and owner should inspect the Property
before any disbursement of funds; further it is likely that the
lender or owner may wish to require mechanical or structural
inspections by a qualified and licensed contractor, civil or
structural engineer, architect, or other expert.
The Appraisers have 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 or unapparent structural, or other components. We have not
critically inspected mechanical components within the improvements
and no representations are made herein as to these matters unless
specifically stated and considered in the report. The value
estimate considers there being no such conditions that would cause
a loss of value. The land or the soil of the area being appraised
appears firm, however subsidence in the area is unknown. The
Appraisers do not warrant against this condition or the occurrence
of problems arising from soil conditions.
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The Appraisal 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
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, ventilating, electrical and plumbing equipment is
considered to be commensurate with the condition of the balance of
the improvements unless otherwise stated. No judgment is made as to
adequacy of insulation, type of insulation or energy efficiency of
the improvements or equipment.
If the Appraisers have not been supplied with a survey, 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.
The Appraisers assume 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.
J. Legality of Use The Appraisal 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 for 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 can be obtained or renewed for
any use considered in the value estimate.
K. Subsurface Rights Subsurface Rights (minerals and oil) were
not considered in this Appraisal unless otherwise specifically
stated. L. Insulation and Toxic Materials Unless otherwise stated
in this report, the Appraisers signing this report have no
knowledge concerning the presence or
absence of any toxic materials and/or urea-formaldehyde foam
insulation in existing improvements; if such is present, the value
of the property may be adversely affected and re-appraisal at
additional cost may be necessary to estimate the effects of
such.
M. Terms of Sale and Full Disclosure The State of New Mexico
does not have full disclosure laws regarding real estate
transactions. Therefore, the Appraisers
had to confirm all sales and rental comparables with brokers,
property managers, mortgage brokers, grantors, grantees and other
parties familiar with the transaction. The Appraisers' results are
limited by the accuracy of the information supplied by the
aforementioned individuals. Whenever possible, the information was
verified by county records.
N. Environmental Hazard Notice Comprehensive federal and state
laws and regulations have been enacted in the last few years in an
effort to develop
controls over the use storage, handling, clean-up, removal and
disposal of hazardous wastes or substances. Some of these laws and
regulations, such as the so-called "Superfund Act," provide for
broad liability schemes wherein an owner, tenant or other use of
the property may be liable for clean-up costs and damages
regardless of fault. Other laws and regulations set standards for
the handling of asbestos or establish requirements for the use,
modification, abandonment, or closing of underground storage
tanks.
It is not practical or possible to list all such laws and
regulations in this Notice. Therefore, owners, buyers, tenants,
and
lenders involved with the property which is the subject of this
report, and any other use and/or uses of this report are urged to
consult legal counsel to determine their respective rights and
liabilities with respect to the proposed transactions
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involving the subject of this appraisal. If hazardous wastes or
substances have been, or are going to be used, or if underground
storage tanks are present, it is essential that legal and technical
advice be obtained in determining, among other things, what permits
and approvals have been or may be required, if any, estimated costs
and expenses associated with the use, storage, handling, clean-up,
removal or disposal of the hazardous wastes or substances, and what
contractual provisions and protections are necessary or desirable.
It may also be important to obtain expert assistance for site
investigations and building inspections. The past uses of the
property may provide valuable information as to the likelihood of
hazardous wastes or substances, or underground storage tanks being
on the property.
We have not made investigations or obtained reports regarding
the subject matter of this Notice, except as may be
specifically described within the body of this appraisal. We
make no representations regarding the existence or non-existence of
hazardous wastes or substances, or underground storage tanks on the
property. The user and/or users of this report should contact a
professional, such as a civil engineer, geologist, industrial
hygienist or other persons with experience in these matters to
provide advice concerning the property.
The term "hazardous wastes or substances" is used in this Notice
in its very broadest sense and includes, but is not limited
to, petroleum based products, paints and solvents, lead,
cyanide, DDT, printing inks, acids, pesticides, ammonium compounds,
asbestos, PCB's and any storage tanks that may be present on all
types of real property. This Notice is, therefore, meant to apply
to any type of real property, whether improved or unimproved.
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DESCRIPTION & ANALYSIS TRUTH OR CONSEQUENCES/SIERRA COUNTY
PROFILE Geographic Area The City of Truth or Consequences (T or C)
was incorporated in 1916 under the name Hot Springs. In 1950, the
people of Hot Springs voted to change the citys name to Truth or
Consequences after Ralph Edwards, an NBC television and radio
producer, called for a city to name itself after the then popular
radio program Truth or Consequences on its 10th anniversary. The
city has a population of approximately 6,700 and encompasses an
area of about 13 square miles. The elevation averages 4,242' above
sea level and the city enjoys a moderate climate. T or C is located
between Las Cruces and Albuquerque along Interstate 25 and is
renowned for its moderate climate, recreational facilities and its
hot springs mineral waters. The Elephant Butte Reservoir, which is
the primary recreational destination for water activities for
people from Albuquerque and especially southern New Mexico,
attracts a steady amount of seasonal tourism from year to year.
Many retirees have begun to relocate to T or C and a national
publication, Where to Retire, just named the city one of the top
retirement destinations in the United States. Sierra County is also
the home of Spaceport America, the nations first purpose-built
commercial space facility which is currently under construction.
Population Trends Sierra County population grew from approximately
4,619 in 1920 to approximately 7,186 in 1950 then experienced a net
population gain of 6,084 persons over the next 50 years, peaking in
2000 at 13,270. The University of New Mexico Bureau of Business and
Economic Research (BBER) projected Sierra County population growth
over the next 30 years, estimating a 2015 population of 13,793 and
a 2020 population of 13,887. These projections appear optimistic as
both Sierra County and Truth or Consequences have exhibited a
downward trend in population since 2000. Population growth in T or
C, Sierra County and the state of New Mexico from 1970 to 2012 is
shown in the following chart: Historical and Projected Population
Data: 1970 2012 (most recent)
T or C Annual Sierra County Annual New Mexico AnnualYear
Population Total Growth Rate* Population Total Growth Rate*
Population Total Growth Rate*
Historical1970 4,656 7,189 1,017,0551980 5,219 1.15% 8,454 1.63%
1,303,303 2.51%1990 6,224 1.78% 9,912 1.60% 1,515,069 1.52%2000
7,276 1.57% 13,303 2.99% 1,828,596 1.90%2001 7,173 -1.42% 13,173
-0.98% 1,851,525 1.25%2002 7,039 -1.87% 13,042 -0.99% 1,874,593
1.25%2003 7,096 0.81% 12,910 -1.01% 1,897,658 1.23%2004 6,986
-1.55% 12,778 -1.02% 1,920,756 1.22%2005 6,861 -1.79% 12,647 -1.03%
1,943,827 1.20%2006 6,744 -1.71% 12,515 -1.04% 1,966,890 1.19%2007
6,681 -0.93% 12,383 -1.05% 1,989,996 1.17%2008 6,784 1.54% 12,251
-1.07% 2,013,064 1.16%2009 6,468 -4.66% 12,120 -1.07% 2,036,124
1.15%2010 6,491 0.36% 11,955 -1.36% 2,065,195 1.43%2011 6,481
-0.15% 11,967 0.10% 2,078,674 0.65%2012 6,411 -1.08% 11,895 -0.60%
2,085,538 0.33%
Projected2015 - - 12,020 -1.44% 2,208,450 2.73%2020 - - 12,048
0.05% 2,351,724 1.27%
*annual compound rate of growth Source: US Bureau of the Census,
BBER-UNM
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Projections from BBER anticipate nearly flat growth in Sierra
County through 2020. Based on historical population growth in the
region over the last 40 years, we expect modest population growth
over the next 20 years. Employment Trends The following table shows
historical overall employment in Sierra County, the state of New
Mexico and the United States from 1994 through 2012. Historical
Employment Information (Civilian Labor Force)
Sierra County New Mexico United States # % Unemploy. # %
Unemploy. # % Unemploy.
Year Emp. Change Rate Emp. Change Rate *Emp Change Rate2000
5,041 - 4.4% 810,024 - 5.0% 137,614 - 4.0%2001 5,126 1.69% 4.7%
821,003 1.36% 4.9% 136,047 -1.14% 4.7%2002 5,063 -1.23% 5.4%
823,191 0.27% 5.5% 136,426 0.28% 5.8%2003 5,031 -0.63% 5.6% 835,835
1.54% 5.9% 138,411 1.46% 6.0%2004 5,048 0.34% 5.9% 849,970 1.69%
5.8% 140,125 1.24% 5.5%2005 5,131 1.64% 5.4% 870,288 2.39% 5.2%
142,752 1.87% 5.1%2006 5,162 0.60% 4.4% 896,359 3.00% 4.2% 145,914
2.22% 4.6%2007 5,378 4.18% 3.3% 912,167 1.76% 3.5% 146,173 0.18%
4.6%2008 5,668 5.39% 4.1% 919,466 0.80% 4.2% 143,188 -2.04%
5.8%2009 5,647 10.06% 5.2% 873,960 0.42% 6.8% 137,792 -3.47%
9.3%2010 5,563 -1.49% 6.2% 861,503 -3.89% 7.9% 139,064 0.92%
9.6%2011 5,534 2.90% 6.4% 862,043 -5.50% 7.5% 139,869 0.58%
8.9%2012 5,544 -2.19% 6.2% 871,299 -5.24% 6.8% 142,469 -0.50%
8.1%Average 1.77% 5.17% -0.12% 5.63% 0.13% 6.31% Sierra County has
experienced relatively stable unemployment since 2000 with an
increase reported in 2009 concurrent with the recession; however,
the unemployment rate in 2012 remains below the state and national
averages.
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Employed Persons According to Categories: Sierra County 2001
2011 AVERAGE ANNUAL COVERED WAGE AND SALARY EMPLOYMENT# BY MAJOR
INDUSTRIAL SECTORSIERRA COUNTY
Sector 2004 2005 2006 2007 2008 2009 2010 2011Grand Total 2,803
2,891 2,962 3,031 3,287 3,247 3,285 3,183Total Private 1,876 1,993
2,075 2,166 2,395 2,351 2,392 2,310 Ag. For. Fish. & Hunting
192 D D D D D 284 D Mining 0 D D D D D 6 D Utilities D D D D D D D
D Construction 127 147 198 262 303 259 257 253 Manufacturing 90 108
119 127 128 112 121 85 Wholesale Trade D D D D D D D 10 Retail
Trade 300 303 314 335 420 456 441 434 Transportation &
Warehousing 17 18 19 17 16 9 8 D Information 17 15 17 15 14 20 18
24 Finance & Insurance 68 68 65 67 72 71 68 66 Real Estate
& Rental & Leasing 27 37 31 21 25 25 22 19 Professional
& Technical Services 132 159 149 151 134 86 70 61 Management of
Companies & Enterprises 0 0 0 0 0 0 0 0 Administrative &
Waste Services 10 13 12 14 23 41 29 19 Educational Services D D D D
D D D D Health Care & Social Assistance D D D D D D D D Arts,
Entertainment & Recreation 33 36 41 D D D 40 52 Accommodation
& Food Services 376 393 380 D D D 402 404 Other Services, ex.
Public Administration 79 79 59 64 69 65 77 74 Unclassified 0 0 0 0
0 0 0 0Total Government 927 898 887 865 893 896 893 873 Federal 119
108 103 98 115 122 126 121 State 306 306 305 287 291 291 278 259
Local 502 484 479 479 487 483 489 493
Note: All years have been revised in accordance with U.S. Dept.
of Labor, Bureau of Labor Statistics, databases.
# Data are by location of the employer's establishment and
represent counts of workers covered by New Mexico unemployment
insurance (UI) law and related statutes. For a complete definition
of covered employment see the attached definition sheet.
D Withheld to avoid disclosing confidential data. Data that are
not disclosed for individual industries are always included in the
totals. Therefore, the individual industries may not sum to the
totals.
Source: U.S. Dept. of Labor, Bureau of Labor Statistics,
Quarterly Census of Employment and Wages.
Table prepared by: Bureau of Business and Economic Research,
University of New Mexico. Source: BBER
Approximately 68% of all employment is related to the private
sector with retail trade and accommodations and food services
commanding approximately 43% of 2011 private sector employment.
Sierra County receives a significant amount of seasonal tourism, so
we would expect accommodations and food services and retail trade
to command a significant amount of employment. Sierra County has a
large amount of government employment as a result of containing
three state parks. Classifying the medical service providers is
more difficult due to both the local and regional nature of the
services. City government and the school districts are non-basic
industries as are restaurants and most retail establishments.
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New Develoment
Sierra County is the host of Spaceport America, a $220 million
project, which is the nations first purpose-built commercial space
facility. Spaceport America has the potential to bring a
significant amount of economic activity to Sierra County and
surrounding areas. In its winter newsletter, Spaceport America
reports that local contractors have confirmed 467 jobs at work with
an additional 150 to 300 anticipated as the Terminal Hangar
Facility once other remaining project elements come online.
Spaceport America has been working closely with companies such as
Virgin Galactic, Lockheed Martin and UP Aerospace. Designed, built
and operated by the New Mexico Spaceport Authority (NMSA),
Spaceport America has completed the first phase of construction,
which includes basic operational infrastructure such as an
airfield, launch pads, terminal / hangar facility, emergency
response capabilities, utilities and roadways. The site is= capable
of accommodating the activities of both vertical and horizontal
takeoff space launch vehicles, serving as the base for pre-flight
and post-flight activities, and providing a tourism experience for
interested visitors and spectators. As noted in the Subject
History, commercial space flight operations have been postponed
indefinitely. Per Capita Income Per Capita Income has exhibited
considerable increases in the last several years and is summarized
in the following table: Per Capita Income: Sierra County 2000 2011
(most recent)
Year Income % Change2000 $17,174 -2001 $18,165 5.8%2002 $18,057
-0.6%2003 $18,092 0.2%2004 $19,476 7.6%2005 $20,488 5.2%2006
$21,866 6.7%2007 $24,020 9.9%2008 $29,562 23.1%2009 $29,853
1.0%2010 $31,653 6.0%2011 $32,794 3.6%
Source: UNM-BBER
Gross Receipts: City of Truth or Consequences 2004 through 2013
(most recent)
Year Gross Receipts % Change2004 $99,094,251 -2005 $96,320,005
-2.8%2006 $447,180,346 364.3%2007 $136,778,568 -69.4%2008
$131,682,760 -3.7%2009 $135,896,377 3.2%2010 $141,998,595 4.5%2011
$136,874,827 -3.6%2012 $141,164,561 3.1%2013 $137,676,670 -2.5%
Source: Bureau of Business and Economic Research, Gross Receipts
2004-2013 (most recent)
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Summary Truth or Consequences/Sierra County Profile Overall,
Truth or Consequences/Sierra Countys economy appears to be
generally stable and has remained relatively sheltered from the
national recession. Conversations with real estate professionals
familiar with the Truth or Consequences market indicate that
seasonal tourism remains strong and that property values for both
residential and commercial properties have remained relatively
stable over the past couple of years. The outlook for Truth or
Consequences is for modest appreciation in value for all types of
real estate as the surrounding communities continue to grow and
expand. The New Mexico Spaceport should provide a significant boon
to the local economy if and when it becomes fully operational.
Immediate Neighborhood The subject property is located near the
north city limits of Truth or Consequences, NM. The neighborhood
boundaries are as follows:
North: Truth or Consequences City Limits East: Truth or
Consequences City Limits South: W. Marie St. West: Interstate
25
Major land uses or developments affecting the neighborhood:
Major Development: Truth or Consequences Middle School WalMart
Supercenter Truth or Consequences Elementary School Surrounding
Development: Commercial development in the subjects neighborhood
consists
of several freestanding retail properties, a self-storage
facility, full and quick service restaurants, a limited service
hotel, multi-family residential properties and an ample supply of
vacant developable land. Relatively recent development along N.
Date St consists of a newer limited service hotel and a Wal-Mart
Supercenter located north of the subject property. Older, average
quality single-family residential development is located south and
east of the subjects neighborhood along minor collector streets
intersecting N. Date St.
Neighborhoods are typically characterized as being in one of
four life cycle stages: growth, stability, decline and
revitalization. The immediate neighborhood is approximately 50%
built out with an ample supply of vacant land available for
development. The subjects neighborhood is considered to be within
the stabilization phase of its life cycle as growth has been
minimal in recent years. All factors considered, the subjects
neighborhood appears to be stabilized and the outlook for the
neighborhood is for continued stabilization, with intermittent
periods of modest growth as demand warrants.
Site Description Address: TBD NWC of Sanford Wilson Rd. &
H.R. Ashbaugh Dr. Truth or Consequences, NM 87901
Access: The subject is immediately accessible via two curb cuts
along the west side of H.R. Ashbaugh Dr. General access to the site
is average as the subject
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fronts a minor collector street in close proximity to N. Date
St. which provides access to Interstate 25 less than one-quarter
mile to the north.
Frontage/Depth: The subject has approximately 368 of frontage
along the west side of H.R. Ashbaugh Dr. and roughly 710 of depth
to the west.
Site Area: 6.0 acres or 261,360 SF Shape: Slightly irregular.
Topography: Generally level and above street grade along the west
side of H.R.
Ashbaugh Dr. Zoning: C-1 Commercial District. Allowable uses
include strip and free-standing
retail, assembly spaces, professional and medical office and
industrial uses. The subjects proposed use is legally
conforming.
Drainage: On-site run off appears to generally flow toward the
subjects east property line.
Flood Zones: The subject site is located on FIRM #3500730005C,
effective July 16, 1996 and lies within Flood Zone X, areas
determined to be outside the 0.1% annual chance floodplain (refer
to the addenda of this report for a copy of the subjects flood
plain map).
Soils: We were not provided with a soils analysis for the
subject site; however, we noted no signs of structural shifting
caused by soil conditions associated with the subject or
surrounding development.
Utilities: All public utilities are located long the subjects
east property line. Easements: We were not provided with a title
report for review; however, according
to the warranty deeds filed with Sierra County, the subject site
is encumbered by typical perimeter easements. We noted several
shared access easements along the subjects east property line. None
of the easements are considered adverse.
Encumbrances: The subject property is being appraised as though
free and clear of all liens and financial encumbrances.
Landscaping: Average Environmental: No adverse environmental
conditions were noted upon visual inspection
of the subject site as confirmed by the Phase I environmental
survey which was provided by the buyer.
Parking: None Property Taxes:
Parcel # 16585 - Fee Simple ParcelTax Year 2013 Land
Improvements TOTAL Assessed Value: $654,555 - $654,555 Taxable
Value: $218,185 Property Tax: 24.392 Mills $5,322.00
PROPERT TAX SUMMARY
Property taxes are current and paid in full as of January 23,
2015. The
subjects current and historic property tax information is
included in the addenda for reference. The subject appears to be
under-assessed relative
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to the opinion of market value concluded herein; therefore,
contesting is not recommended. We noted that the assessment above
pertains to subdivided parcels 1 and 2 (subject) which have not yet
been assessed separately by the Sierra County Assessors office.
Floor Area Ratio: N/A Site Improvements: None
Highest and Best Use As Is:
The subject site is comprised of a single tract of land
containing approximately 6.0 acres. Most types of development
typically found on sites of this size are physically possible as
the site is generally level and has a workable configuration. The
subjects C-1 Commercial District zoning allows for several types of
commercial development including professional and medical office,
assembly buildings, strip retail and full and quick-service
restaurants and are approved on a case-by-case basis by the City of
Truth or Consequences. As a result, legally permissive uses are
fairly numerous. The economy in Truth or Consequences appears to be
stable but the overall lack of population and employment growth do
not bode well of the local economy. The subject has a good location
anchored by Wal-Mart Supercenter in a relatively high demand area
within Truth or Consequences. We noted some retail vacancy upon
visual inspection of the subjects neighborhood. Speculative
investment-grade development is not feasible due to the lack of
supporting population and difficulty in obtaining favorable
financing for such projects. For the aforementioned reasons, any
financially feasible development would need to be built-to-suit or
for owner-occupancy. The subject property is situated within an
area primarily characterized by big box, professional office,
freestanding and strip retail uses. The principle of conformity
holds that a propertys value is maximized by conforming to
surrounding development. Therefore, the maximally productive use of
the subject site is for commercial/retail use; however, as
previously noted, the lack of supporting population precludes most
large-scale commercial/retail development at this time. Based on an
analysis of physically possible, legally permissible, financially
feasible and maximally productive uses; we believe the highest and
best use of the subject site is for to hold for future
development.
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VALUATION Sales Comparison Approach The Sales Comparison
Approach is based on sales of vacant tracts of land from which
units of physical comparison have been extracted. Our data set
includes six sales and two current listings of vacant tracts
located in the subjects market area. We have made quantitative
adjustments to the comparable sales depicted in the adjustment grid
below; however, considering the differences between the subjects
market and the markets of the comparable set, making quantitative
adjustments to the comparable sales is somewhat subjective
considering the wide range of physical and locational
characteristics. We have therefore converted qualitative
adjustments to quantitative percentage adjustments using the
following as a guide. A detailed discussion of each adjustment is
presented on the following page.
Qualitative Adjustment Quantitative Adjustment
Far Inferior/Superior = +/- 15% + Inferior/Superior = +/- 10%
< to 15% Slightly Inferior/Superior = +/-5% < to 10% Similar
= 0%
The following chart summarizes the comparable sales data:
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Land Comparables Summary and Adjustment Grid Sale/Listing No.
Subject Property Sale 1 (Subject) Sale 2 Sale 3 Sale 4 Sale 5 Sale
6 Listing 1 Listing 2
Sale Price - $1,045,440 $17,000 $257,000 $600,000 $750,000
$264,023 $1,500,000 $650,000 Sale Date - U/C Jul-14 Jul-12 Oct-11
Aug-09 Jun-09 N/A Listing N/A ListingLand Area (SF) 261,360 261,360
6,098 73,616 108,508 51,706 50,099 261,360 237,837Land Area (Acres)
6.0000 6.00 0.14 1.69 2.49 1.19 1.15 6.00 5.46Zoning C-1 C-1 C-1
C-1 C-1 C-1 C-1 C-1 C-1Sale/List Price per SF - $4.00 $2.79 $3.49
$5.53 $14.51 $5.27 $5.74 $2.73Property Rights Conveyed - 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0%Adjusted Sale Price/SF - $4.00 $2.79
$3.49 $5.53 $14.51 $5.27 $5.74 $2.73Financing - 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0%Adjusted Sale Price/SF - $4.00 $2.79 $3.49 $5.53
$14.51 $5.27 $5.74 $2.73Conditions of Sale - 0.0% 0.0% 35.0% 0.0%
0.0% 0.0% -25.0% 10.0%Adjusted Sale Price/SF - $4.00 $2.79 $4.71
$5.53 $14.51 $5.27 $4.30 $3.01Expenditures After Sale - 0.0% 0.0%
0.0% 0.0% 4.0% 0.0% 0.0% 0.0%Adjusted Sale Price/SF - $4.00 $2.79
$4.71 $5.53 $15.09 $5.27 $4.30 $3.01Market Conditions - 0.0% 0.0%
0.0% 0.0% -15.0% -15.0% 0.0% 0.0%Adjusted Sale Price/SF - $4.00
$2.79 $4.71 $5.53 $12.82 $4.48 $4.30 $3.01Adjustments: Location: -
0.0% 25.0% 0.0% 0.0% -20.0% 0.0% 0.0% 0.0% Size: - 0.0% -10.0%
-10.0% -10.0% -10.0% -10.0% 0.0% 0.0% Topography/Configuration: -
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 20.0% Utilities: - 0.0% 0.0%
0.0% 0.0% -10.0% 0.0% 0.0% 0.0% Zoning: - 0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0%Net Adjustment - 0.0% 15.0% -10.0% -10.0% -40.0%
-10.0% 0.0% 20.0%Adjusted Sale Price per SF - $4.00 $3.21 $4.24
$4.98 $7.69 $4.03 $4.30 $3.61
Median Adjusted Sale Price $4.14Average Adjusted Sale Price
$4.51
1980 N. Date St., Truth or Consequences, NM
905 N. Date St., Truth or Consequences, NM
Location Parcel 2, New Hot Springs Retail Center, Truth or
Consequences, NM
1920 N. Date St., Truth or Consequences, NM
I-25 Hubble, Tract 4, Truth or Consequences, NM
Lot 1, Block 2, New Hot Springs Retail Center, Truth or
Consequences, NM
2201 F. G. Amin St., Truth or Consequences, NM
Parcel 2, New Hot Springs Retail Center, Truth or Consequences,
NM
SWC Broadway St. and Clancy St., Truth or Consequences, NM
Quantitative Adjustments: Property Rights Conveyed:
All comparable sales conveyed fee simple interest. As we are
appraising the fee simple interest in the subject, no adjustments
were made. Financing:
There were no reported factors related to financing that had an
impact on prices paid among the comparables; therefore, no
adjustments were made. Conditions of Sale
Adjustments for conditions of sale usually reflect the
motivations of the buyer and the seller. Circumstances surrounding
a sale may influence the price in such a manner that the buyer and
seller act under conditions that cause the price to be other than
typical market conditions. Special conditions of sale may include a
favorable price given to a relative or business partner buying the
property, a quick sale at below market
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prices to generate cash for the seller under duress, or a
premium price paid by a developer to complete an assemblage. All
sales are considered to have occurred under normal conditions of
sale; therefore, no adjustment was necessary. Listings 1 and 2 are
only asking prices. Properties rarely sell at full asking price and
we have seen sale prices ultimately fall anywhere from 5% to 15%
below asking prices. Listing 1 appears to be listed well above
market based on an analysis of competitive sales and a conversation
with the listing broker; therefore, a sizable downward adjustment
was made. Listing 2 was listed for $950,000 or $3.99/SF for
approximately one year before the seller lowered the asking price
to $2.73/SF (32%) in January 2015. The most recent asking price
appears slightly below market value as it falls below the range
exhibited by the comparables and reflects the high motivation of
the seller to move the property, according to the listing broker;
therefore, an upward adjustment was made. Expenditures Subsequent
to Purchase:
None of the comparable sales required expenditures subsequent to
purchase and did not require adjustment. Market Conditions: Market
conditions can change between the date of sale and the effective
date of appraisal. Property values can fluctuate in response to
changing market conditions resulting from factors such as
inflation, deflation or supply and demand. The dates of sale range
from June 2009 to July 2014 with two active listings and one
currently under contract (subject). Market conditions from 2011 to
present have remained relatively stable as very few land sales
transact in any given year in the subjects market; therefore, no
adjustments were made to Sales 1 through 4. Sale 5 and 6 transacted
under superior market conditions due to the fact that the tangible
onset of the national recession began to affect property values in
2010. Based on conversations with real estate professionals
familiar with the vacant land market in Truth or Consequences,
market conditions from 2009 to present have fallen by approximately
15%; therefore, downward adjustments were made to Sales 5 and 6.
Qualitative Adjustments: Location: The subject is located in close
proximity to the Wal-Mart Supercenter. Sales 1, 3, 4 and 6 and
Listing 1 exhibit similar locations in close proximity to Wal-Mart
Supercenter and are considered similar to the subject with regard
to location. Sale 2 fronts the southwest corner of two secondary
arterials within Downtown Truth or Consequences and is not anchored
by a national retailer; therefore, Sale 2 is considered far far
inferior to the subject with regard to location. Sale 5 is anchored
by Wal-Mart Supercenter and is considered superior to the subject
with regard to location due to its superior frontage along T or Cs
primary retail corridor. While Listing 2 also has an address on N.
Date St. and is anchored by Wal-Mart Supercenter, the majority of
the site is located one lot set-back from N. Date St.; therefore,
it exhibits a similar location as the subject property. Size
Adjustment: Typically, larger parcels of land sell for less per
square foot or unit than do smaller ones. All things being equal,
smaller parcels benefit from a much larger pool of potential buyers
creating a greater demand and driving prices upward. All comparable
sales, save Sale 1 (subject) and Listings 1 and 2, are superior to
the subject with regard to size. Sale 1 (subject) and Listings 1
and 2 are similar to the subject with regard to size.
Topography/Configuration: Typically, vacant tracts of land that
undulate or are moderately to severely sloped will sell for a lower
price per unit than sites that are relatively flat and at street
grade. Sloping and undulating properties increase development costs
as a result of increased earthwork needed to create a workable
building pad and/or the
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need for retaining walls. Properties with irregular
configurations may not be conducive to all development types. The
subject is generally level and has a workable configuration which
is conducive to development. All comparables, save Listing 1, are
similar to the subject with regard to topography and configuration.
Listing 1 is extremely undulate and is considered far inferior to
the subject with regard to topography. Utilities: All comparables,
save Sale 5, are similar to the subject with regard to utilities as
their respective utilities are located at their lot lines. Sale 5
has utilities extended to the interior of the site and is superior
to the subject with regard to utilities. Zoning: The subjects C-1
zoning allows for retail, professional/medical office, some
industrial and outdoor storage uses and is considered one of the
least restrictive zoning designations in Truth or Consequences. The
subjects zoning designation is considered similar to all comparable
sales. Market Value Indication from Competitive Sales The
comparable sales range from $3.21/SF to $7.69/SF. We have applied
percentage adjustments to the comparables based on qualitative
ratings, as outlined above, and the resultant adjusted average of
the comparable set is $4.51/SF. Furthermore, we have considered the
subjects contract purchase price of $1,045,440 or $4/SF, which is
well bracketed by the comparable set and falls slightly below the
average exhibited by the comparable set. Additionally, we have
analyzed the comparables, adjusted only for property rights
conveyed, financing, conditions of sale, expenditures and market
conditions, which exhibit a range from $2.79/SF to $12.82/SF. The
comparable sales are considered good relative to market activity
and provide a credible indication of market value for the subject
site as is. All factors considered, we have placed the subject in
its most likely position based on the overall comparability ratings
of the comparable sales as follows:
RANKING ANALYSIS Sale No. Sale Price/SF Overall
Comparability
5 $12.82 Far Superior 4 $5.53 Superior 3 $4.71 Superior 6 $4.48
Superior
Listing 1 $4.30 Similar Sale 1 - Subject $4.00 Similar
Listing 2 $3.01 Slightly Inferior 2 $2.79 Far Inferior
We have ranked the subject property in its most likely position
based on the ranking analysis above. The subject is most similar to
Sale 6 (rated superior) and Listings 1 and 2 (rated similar and
slightly inferior, respectively), as they exhibit generally similar
zoning and locations compared to the subject. Our opinion of market
value as is is $4/SF summarized as follows:
Unit Value $4/SF Square Feet 261,360 Indicated Market Value As
Is $1,045,440 Market Value As Is (rounded) $1,045,000
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COMPARABLE SALES MAP
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RECONCILIATION OF VALUE INDICATIONS A single approach to value
has been employed in this appraisal to provide an opinion of market
value as is. The data collected for and subsequent analysis of the
cost approach has been detailed and presented. The value
indications are as follows: Market Value As Is (Vacant Land):
Cost Approach $1,045,000Sales Comparison Approach N/AIncome
Approach N/A
The sales comparison approach gains strength from its close
association with the actions of buyers and sellers in the
marketplace and with the definition of market value. Although Truth
or Consequences, NM has a somewhat limited amount of market
activity for vacant land in any given year, the comparable sales
are considered good and representative of current market
conditions. Therefore, the sales comparison approach provides the
most credible indication of market value in this instance. The
sales comparison approach will be given sole consideration in this
appraisal. Additionally, we have considered the subjects current
contract purchase price of $1,045,000, which we believe to be
representative of market value. Our opinion of market value as is
of the fee simple interest in the subject property (effective
January 23, 2015) is as follows:
Market Value As Is ONE MILLION FORTY-FIVE THOUSAND DOLLARS
($1,045,000)
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CERTIFICATION The undersigned certify that, to the best of our
knowledge and belief:
the statements of fact contained in this report are true and
correct. the reported analyses, opinions, and conclusions are
limited only by the reported assumptions and
limiting conditions, and are our personal, unbiased professional
analyses, opinions and conclusions. we have no present or
prospective interest in the property that is the subject of this
report, and we
have no personal interest with respect to the parties involved.
we have no bias with respect to the property that is the subject of
this report or to the parties
involved with this assignment. our engagement in this appraisal
assignment was not contingent upon developing or reporting
predetermined results. our 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.
Our analyses, opinions, and conclusions were developed, and this
report has been prepared, in conformity with the requirements of
the Code of Professional Ethics and Standards of Professional
Appraisal Practice of the Appraisal Institute.
Anthony Kuna and Jared Michnovicz have made a personal
inspection of the property that is the subject of this report.
we certify that we have not provided any other services
regarding the subject property as an appraiser or in any other
capacity within the past three years.
Anthony Kuna and Jared Michnovicz provided significant real
property appraisal assistance to the person signing this
certification.
we certify that the use of this report is subject to the
requirements of the Appraisal Institute relating to review by its
duly authorized representatives.
As of the date of this report, Anthony Kuna has completed the
Standards and Ethics education Requirements for Candidates of the
Appraisal Institute.
As of the date of this report, Brian D. White, MAI has completed
the continuing education program for designated members of the
Appraisal Institute.
This opportunity to provide appraisal services to your
organization is appreciated, and questions from authorized users of
the report will be welcomed if any aspect of the research or
analysis requires clarification. DOMINION PROPERTY ADVISORS BRIAN
D. WHITE, MAI, CCIM ANTHONY M. KUNA GENERAL CERTIFIED APPRAISER, NM
#756-G GENERAL CERTIFIED APPRAISER, NM #03041-G JARED C. MICHNOVICZ
APPRENTICE APPRAISER, NM #03048-A
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ADDENDA
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FLOOD MAP
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BACKGROUND AND EXPERIENCE BRIAN D. WHITE, MAI, CCIM
PRESENT POSITION
Owner, Dominion Property Advisors, Albuquerque, New Mexico
CONTACT INFORMATION 505.878.9400 Direct 505.259.8672
Cell505.878.9700 Fax [email protected]
EDUCATION
University of North Texas, Denton, Texas Bachelor of Business
Administration Majors: Real Estate and Real Estate Finance
REAL ESTATE COURSE WORK
Real Estate Principles Real Estate Law Real Estate Appraisal
Real Estate Investments Real Estate Development Subdivision
Analysis Appraisal Principles Basic Valuation Procedures
Capitalization Theory Part A Capitalization Theory Part B Standards
of Professional Practice Part A Standards of Professional Practice
Part B Special Use Property Valuation
EXPERIENCE
Appraisal/Consulting
Brian D. White has completed various commercial appraisal and
consulting assignments involving properties located in the
Southeastern and Southwestern United States. He has worked
independently and with various MAI designated appraisers. Prior to
being active in New Mexico, Mr. White was active as a fee appraiser
in the Dallas/Fort Worth Metroplex with prestigious firms such as
the Wilson K. Mason Company, McRoberts & Company and the Jay
Massey Company for approximately seven years. Clients served
included individuals, Fortune 500 corporations, banks and
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other lending institutions, government agencies, life insurance
companies and attorneys. Estates appraised included fee simple,
leased fee, leasehold and subleasehold. Property types appraised
included the following:
Retail Buildings Freestanding, Strip and Big Box Office
Buildings Professional, Medical and Dental Multi-Family Residential
Apartment Properties Light Industrial Facilities -
Office/Warehouses and Distribution Warehouses Flex/Research and
Development Facilities Single Family Residential Subdivisions
Single Family and Commercial Condominiums Vacant Land Commercial,
Residential, Agricultural and Ground Leased Restaurants Full and
Quick Service Gasoline Stations Houses of Worship Truck Terminals
MarinasNumerous Mixed Use Developments Other Special Purpose
Properties
Financial Industry
Mr. White has also been active as a specialized real estate
consultant with two of the top financial institutions in the
country for a combination of nearly 10 years. These two financial
institutions are Bank of America/Amresco in Dallas. Texas, and
Norwest Bank/Wells Fargo in New Mexico. His professional duties
with Bank of America/Amresco were as a review appraiser and a
marketing/transactional consultant for both operating properties
and liquidation properties within an REO portfolio. His
professional duties with Norwest Bank/Wells Fargo were as a staff
appraiser, review appraiser, appraisal manager and real estate
consultant and trainer for loan officers within the institution. He
also served as a voting member and consultant for the Loan
Committee. Mr. White qualifies as an expert witness in real estate
disputes and recently played a critical role in reducing his
clients damages by more than $6 million. He has owned and operated
Dominion Property for over eight years.
AFFILIATIONS
Member, Appraisal Institute-MAI (No. 10,773) New Mexico General
Certified Appraiser (No. 000375-G) Commercial Investment Real
Estate Institute-CCIM (No. 8,261) Texas State Real Estate
Salesman-Inactive Status
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ANTHONY M. KUNA BACKGROUND AND EXPERIENCE
PRESENT POSITION Staff Appraiser, Dominion Property Advisors,
Albuquerque, NM CONTACT INFORMATION 505.883.8477 Direct
505.710.7097 Cell 505.878.9700 Fax [email protected]
EDUCATION Bachelor of Business Administration Anderson School of
Management University of New Mexico, Albuquerque, New Mexico Major:
International Business Management REAL ESTATE COURSE WORK APPRAISAL
INSTITUTE Basic Appraisal Principles Basic Appraisal Procedures
General Income Approach Part I General Income Approach Part II
Advanced Income Capitalization Advanced Concepts and Case Studies
Highest and Best Use and Market Analysis The Appraiser as an Expert
Witness EXPERIENCE Anthony Kuna has quickly become one of the most
respected commercial real estate appraisers in New Mexico under the
mentorship of Brian D. White, MAI. Anthony has demonstrated a
superior aptitude for commercial appraisal over his eight years in
the industry as a result of an intense workload often involving
complex properties with unique components of value. Anthony has
earned his NM General Certification and is currently enrolled in
the Appraisal Institutes MAI Designation program. Property types
appraised include the following: Office Buildings Professional,
Medical and Dental Retail Buildings Freestanding, Strip and Big Box
Light Industrial Facilities Office/Warehouse, Distribution
Warehouse Heavy Manufacturing and Food Processing Facilities
Multi-Family Residential Apartment Properties Hotels - Limited
Service, Full Service (Independent and Franchised) Tax Income
Credit Properties Single Family Residential Subdivisions (Urban and
Rural) Commercial Subdivisions Non-Profit Medical Treatment
Facilities
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Farm/Ranch Properties Houses of Worship Veterinary
Clinics/Hospitals Restaurants - Full Service, Quick Service
Gasoline Stations/Convenience Stores Bed & Breakfast Properties
Vacant Land - Commercial, Residential, Agricultural, Ground Leased
Car Washes - Self Service/Full Service
RV/Campground Facilities
AFFILIATIONS New Mexico General Certified Appraiser Associate
Member of the Appraisal Institute
Prior Professional Experience Facilities Coordinator Ericsson
Wireless Communications, San Diego, California 2000-2003
Responsibilities: Managed corporate travel program for the business
unit. Assisted nine departments with various facilities-related
services including short and long-term space planning activities,
administrative support services, workers compensation claims and
ergonomic requirements.
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Jared C. Michnovicz BACKGROUND AND EXPERIENCE
PRESENT POSITION Apprentice Appraiser, Dominion Property
Advisors, Albuquerque, New Mexico CONTACT INFORMATION 505.217-0430
Direct 505.249-1044 Cell 505.878.9700 Fax
[email protected]
EDUCATION 2 Years Undergraduate Work TVI 1 Year Undergraduate
Work Austin Community College Relevant Course Work: Business
Administration Economics Statistics REAL ESTATE COURSE WORK Uniform
Standards of Professional Appraisal Practice Basic Appraisal
Principles Basic Appraisal Procedures General Appraiser Sales
Comparison Approach
EXPERIENCE Jared has completed the aforementioned courses to
become a certified apprentice appraiser in the State of New Mexico.
In addition, through his role as market research analyst at
Dominion Property Advisors, Jared has been exposed to numerous
appraisal techniques for a wide variety of property types where he
has observed what he learned in the classroom applied.
Additionally, Jared has been trained and mentored by Brian D.
White, MAI, CCIM and Anthony M. Kuna, General Certified Appraiser
as well as other appraisers at Dominion Property Advisors. Finally,
Jareds undergraduate education has proved to be a valuable asset
for being an apprentice appraiser, and it has greatly benefited
Jared to exhibit a superior aptitude for commercial appraisal.
AFFILIATIONS New Mexico Registered Apprentice Appraiser (License
#03048-A) Prior Professional Experience Apprentice Appraiser
Dominion Property Advisors, Albuquerque, NM February 2011 Current
Responsibilities: Market, sale, lease, vacancy, absorption, expense
and other forms of data collection and
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analysis in Albuquerque and throughout New Mexico. Assisted
Brian D. White, MAI, CCIM and Anthony M. Kuna on site and building
inspections and prepared and cosigned appraisal reports. Market
Research Analyst Dominion Property Advisors, Albuquerque, NM April
2007 December 2010 Responsibilities: Market, sale, lease, vacancy,
absorption, expense and other forms of data collection and analysis
in Albuquerque and throughout New Mexico. Assisted Brian D. White,
MAI, CCIM and Anthony M. Kuna on site and building inspections and
aided in the preparation of appraisal reports. Sales Training
Manager CitiCards Customer Service/Sales, Albuquerque, NM Man 2005
March 2007 Responsibilities: Training the customer service/sales
staff in sales techniques and methods. Wrote several curriculums
pertaining to sales techniques and methods for use at
CitiCards.
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Dominion Property Advisors, 2014
AGREEMENT FOR PROFESSIONAL VALUATION SERVICES Parcel 2, New Hot
Springs Retail Center, Truth or Consequences, Sierra County, NM
DATE OF AGREEMENT: 1/23/2015 PARTIES TO AGREEMENT: Client:
Appraiser: New Mexico Spaceport Authority Anthony Kuna, Managing
Member c/o Mr. Ryan T. Noble, General Counsel Dominion Property
Advisors 901 E. University Ave, Suite 965L 1429 Central Ave. NW,
Suite 1 Las Cruces, NM 88001 Albuquerque, NM 87104 Phone: (575)
373-6110 505.710.7097 (C) Fax: (575) 373-6120 505.878.9700 (F)
[email protected] [email protected] Client
hereby engages Appraiser to complete an appraisal assignment as
follows: PROPERTY IDENTIFICATION Parcel 2, New Hot Springs Retail
Center as recorded 26 September, 2013 in Book 122 Page 1736, Sierra
County, NM within the Section 28, Township 13 south, Range 4 west,
NMPM. PROPERTY TYPE Vacant Land INTEREST VALUED Fee Simple INTENDED
USERS New Mexico Spaceport Authority Note: No other users are
intended by Appraiser. Appraiser shall consider the intended users
when determining the level of detail to be provided in the
Appraisal Report.
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Dominion Property Advisors, 2014
INTENDED USE To assist Client in establishing fair market value
for the subject property. TYPE OF VALUE Market value As Is as
defined by the appraisal requirements pursuant to FIRREA DATE OF
VALUE Current HYPOTHETICAL CONDITIONS, EXTRAORDINARY ASSUMPTIONS
None anticipated, to be detailed in transmittal letter if
appropriate APPLICABLE REQUIREMENTS OTHER THAN THE UNIFORM
STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE (USPAP) The Code of
Professional Ethics and Standards of Professional Appraisal
Practice of the Appraisal Institute ANTICIPATED SCOPE OF WORK Site
visit On-site inspection Valuation approaches Sales Comparison
Approach Note: Appraiser shall use all approaches necessary to
develop a credible opinion of value. APPRAISAL REPORT Report option
Appraisal Report as defined by USPAP Standards Rule 2-2 (a) Form or
format: Narrative CONTACT FOR PROPERTY ACCESS, IF APPLICABLE N/A
DELIVERY DATE On or before January 30, 2015. DELIVERY METHOD Fully
executed digital PDF copy. NUMBER OF COPIES: N/A
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Dominion Property Advisors, 2014
PAYMENT TO APPRAISER $4,000 (including NMGRT @ 7%) PROPOSED
IMPROVEMENTS If the property appraised consists of proposed
improvements, Client shall provide to Appraiser plans,
specifications, or other documentation sufficient to identify the
extent and character of the proposed improvements. PROPERTIES UNDER
CONTRACT FOR SALE If the property appraised is currently under
contract for sale, Client shall provide to Appraiser a copy of said
contract including all addenda. CONFIDENTIALITY Appraiser shall not
provide a copy of the written Appraisal Report to, or disclose the
results of the appraisal prepared in accordance with this Agreement
with, any party other than Client, unless Client authorizes, except
as stipulated in the Confidentiality Section of the ETHICS RULE of
the Uniform Standards of Professional Appraisal Practice (USPAP).
CHANGES TO AGREEMENT Any changes to the assignment as outlined in
this Agreement shall necessitate a new Agreement. The identity of
the client, intended users, or intended use; the date of value;
type of value; or property appraised cannot be changed without a
new Agreement. CANCELLATION Client may cancel this Agreement at any
time prior to the Appraisers delivery of the Restricted Appraisal
Report upon written notification to the Appraiser. Client shall pay
Appraiser for work completed on assignment prior to Appraisers
receipt of written cancellation notice, unless otherwise agreed
upon by Appraiser and Client in writing. WHEN APPRAISERS
OBLIGATIONS ARE COMPLETE Appraisers obligations pursuant to this
Agreement are complete when the Appraisal Report in the form
specified in this Agreement is delivered to Client pursuant to this
Agreement. Appraiser agrees to be responsive to Clients legitimate
inquiries regarding the contents of the report after delivery. USE
OF EMPLOYEES OR INDEPENDENT CONTRACTORS Appraiser may use employees
or independent contractors at Appraisers discretion to complete the
assignment, unless otherwise agreed by the parties.
Notwithstanding, Appraiser shall sign the written Appraisal Report
and take full responsibility for the services provided as a result
of this Agreement. SERVICES NOT PROVIDED The fees set forth in this
Agreement apply to the appraisal services rendered by Appraiser as
set forth in this Agreement. Unless otherwise specified herein,
Appraisers services for which the fees in this Agreement apply
shall not include meetings with persons other than Client or
Clients
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Dominion Property Advisors, 2014
agents or professional advisors; Appraisers deposition(s) or
testimony before judicial, arbitration or administrative tribunals;
or any preparation associated with such depositions or testimony.
Any additional services performed by Appraiser not set forth in
this Agreement will be performed on terms and conditions set forth
in an amendment to this Agreement, or in a separate agreement.
TESTIMONY AT COURT OR OTHER PROCEEDINGS Unless otherwise stated in
this Agreement, Client agrees that Appraisers assignment pursuant
to this Agreement shall not include Appraisers participation in or
preparation for, whether voluntarily or pursuant to subpoena, any
oral or written discovery; sworn testimony in a judicial,
arbitration or administrative proceeding; or attendance at any
judicial, arbitration or administrative proceeding relating to this
assignment. GOVERNING LAW AND JURISDICTION This Agreement shall be
governed by the law of the state in which Appraisers office as
specified in this Agreement is located, exclusive of that states
choice of law rules. The parties agree that any legal proceeding
brought by either party to interpret or enforce this Agreement, or
to enforce an arbitration award entered pursuant to this Agreement,
shall be brought in a state or federal court having jurisdiction
over the location of Appraisers office as specified in this
Agreement, and the parties hereby waive any objections to the
personal jurisdiction of said court. APPRAISER INDEPENDENCE
Appraiser cannot agree to provide a value opinion that is
contingent on a predetermined amount. Appraiser cannot guarantee
the outcome of the assignment in advance. Appraiser cannot ensure
that the opinion of value developed as a result of this Assignment
will serve to facilitate any specific objective of Client or others
or advance any particular cause. Appraisers opinion of value will
be developed competently and with independence, impartiality and
objectivity. NOTICES Any notice or request required or permitted to
be given to any party shall be given in writing and shall be
delivered to the receiving party by: a) registered or certified
mail, postage prepaid; (b) overnight courier, such as Federal
Express, United Parcel Service or equivalent; or (c) hand delivery.
The address for delivery of any notice shall be the address for the
party as specified in this Agreement, or at such other address as
party may designate by written notice to the other party in
conformance with this paragraph. Unless otherwise specified herein,
notice shall be effective the date it is postmarked or given to a
third party for delivery to the receiving party, whether or not the
receiving party signs for or accepts delivery of such notice. NO
THIRD-PARTY BENEFICIARIES Nothing in this Agreement shall create a
contractual relationship between Appraiser or Client and any third
party, or any cause of action in favor of any third party. This
Agreement shall not be construed to render any person or entity a
third party beneficiary of this Agreement, including, but not
limited to, any third parties identified herein.
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Dominion Property Advisors, 2014
MEDIATION & ARBITRATION In the event of a dispute concerning
the subject matter of this Agreement, the parties shall in good
faith attempt to resolve such dispute by negotiation between the
parties principals, or, if such negotiation is unsuccessful, by
mediation conducted by a third-party mediator. If such mediation
results in an impasse, the parties shall submit their dispute to
binding arbitration. Such mediation or, if necessary, binding
arbitration shall be conducted pursuant to the mediation procedures
or the commercial arbitration rules of the American Arbitration
Association. Any arbitration shall be conducted in the city in
which Appraisers office as specified herein is located. The parties
shall share equally the costs of any mediation. In the event of
binding arbitration, the arbitrators shall, in addition to any
relief appropriate to be awarded to the prevailing party, enter an
award in favor of the prevailing party for that partys costs of the
arbitration, including the partys reasonable attorneys fees and
arbitration expenses incurred in prosecuting or defending the
arbitration proceeding. Subject to the right of the prevailing
party to recover its share of the costs of the arbitration services
pursuant to the arbitrators award, the costs of the arbitration
services shall be borne equally by the parties. If the prevailing
party seeks judicial confirmation of any arbitration award entered
pursuant to this Agreement, the court shall, in addition to any
other appropriate relief, enter an award to the prevailing party in
such confirmation proceeding for its reasonable attorneys fees and
litigation expenses incurred in confirming or successfully opposing
the confirmation of such an award. SPECIAL OR CONSEQUENTIAL DAMAGES
Neither party shall under any circumstances be liable to the other
party for special, exemplary, punitive or consequential damages,
including, without limitation, loss of profits or damages
proximately caused by loss of use of any property, whether arising
from either partys negligence, breach of the Agreement or
otherwise, whether or not a party was advised, or knew, of the
possibility of such damages, or such possibility was foreseeable by
that party. In no event shall Appraiser be liable to Client for any
amounts that exceed the fees and costs paid by Client to Appraiser
pursuant to this Agreement. ASSIGNMENT Neither party may assign
this Agreement to a third party without the express written consent
of the other party, which the non-assigning party may withhold in
its sole discretion. In the event this Agreement is assigned by
mutual consent of the parties, it shall become binding on the
assigning partys permitted assigns. SEVERABILITY In the event any
provision of this Agreement shall be determined to be void or
unenforceable by any court of competent jurisdiction, then such
determination shall not affect any other provision of this
Agreement and all such other provisions shall remain in full force
and effect. CLIENTS DUTY TO INDEMNIFY APPRAISER Client shall have
the right to settle any Claim, provided that Appraiser shall have
the right to approve any settlement that results in any
modification of Appraisers rights under this Agreement, which
approval will not be unreasonably withheld, delayed or
conditioned.
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Dominion Property Advisors, 2014
CLIENTS REPRESENTATIONS AND WARRANTIES Client represents and
warrants to Appraiser that (1) Client has all right, power and
authority to enter into this Agreement; (2) Clients duties and
obligations under this Agreement do not conflict with any other
duties or obligations assumed by Client under any agreement between
Client and any other party; and (3) Client has not engaged
Appraiser, nor will Client use Appraisers Appraisal Report, for any
purposes that violate any federal, state or local law, regulation
or ordinance or common law. EXTENT OF AGREEMENT This Agreement
represents the entire and integrated agreement between the Client
and Appraiser and supersedes all prior negotiations,
representations or agreements, either written or oral. This
Agreement may be amended only by a written instrument signed by
both Client and Appraiser. This Agreement includes the following
Appendices, which are incorporated into, and made a part of this
Agreement:
N/A - TBD EXPIRATION OF AGREEMENT This Agreement is valid only
if signed by both Appraiser and Client within 7 days of the Date of
Agreement specified. By Appraiser: By Client:
________________________________ _______________________
(Signature) (Signature) ________________________________
_______________________ (Printed name) (Printed name)
________________________________ _______________________ (date)
(date)
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