Conley Real Estate Appraisals, Inc. 321 Ohio Street, Upper Suite 1, Terre Haute, Indiana 47807 Phone and Fax: (812) 235-4576 E-Mail address: [email protected]December 11, 2006 Mr. Kurt Jones Jones & Sons, Inc. 1400 Springhill Road Terre Haute, Indiana 47802 RE: Real Estate Appraisal Jones & Sons, Inc. Property 1400 Springhill Road Terre Haute, Indiana 47802 Dear Mr. Jones: In accordance with your request, I have personally inspected the above captioned real estate to determine an estimate of Market Value for the purpose of determining a sales price. My estimate of Market Value, in this particular instance, is predicated upon the Sales Comparison Approach to value. By comparing the subject property with other properties of the like kind, and analyzing it with sales as documented through the Terre Haute Area Association of Realtors Multiple Listing Service and area brokers, it is my opinion that the subject property would have an Estimate of Market Value as of November 27, 2006 of TWO HUNDRED NINETY SEVEN THOUSAND FIVE HUNDRED DOLLARS ($297,500) If you should have any questions, please feel free to contact my office at your convenience. Respectfully submitted, Brian F. Conley, GRI Indiana Certified General Appraiser State Certification Number: CG 69100221 BFC:tlf File #06112102 C
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Conley Real Estate Appraisals, Inc. 321 Ohio Street, Upper Suite 1, Terre Haute, Indiana 47807 Phone and Fax: (812) 235-4576 E-Mail address: [email protected] December 11, 2006 Mr. Kurt Jones Jones & Sons, Inc. 1400 Springhill Road Terre Haute, Indiana 47802 RE: Real Estate Appraisal
Jones & Sons, Inc. Property 1400 Springhill Road Terre Haute, Indiana 47802
Dear Mr. Jones: In accordance with your request, I have personally inspected the above captioned real estate to determine an estimate of Market Value for the purpose of determining a sales price. My estimate of Market Value, in this particular instance, is predicated upon the Sales Comparison Approach to value. By comparing the subject property with other properties of the like kind, and analyzing it with sales as documented through the Terre Haute Area Association of Realtors Multiple Listing Service and area brokers, it is my opinion that the subject property would have an Estimate of Market Value as of November 27, 2006 of
TWO HUNDRED NINETY SEVEN THOUSAND FIVE HUNDRED DOLLARS
($297,500) If you should have any questions, please feel free to contact my office at your convenience. Respectfully submitted,
Brian F. Conley, GRI Indiana Certified General Appraiser
State Certification Number: CG 69100221
BFC:tlf File #06112102
C
REAL ESTATE APPRAISAL
Jones & Sons, Inc. Property 1400 Springhill Road Terre Haute, Indiana 47802 Prepared For: Mr. Kurt Jones Jones & Sons, Inc. 1400 Springhill Road Terre Haute, Indiana 47802 December 11, 2006 Prepared By: Brian F. Conley File # 06112102
Conley Real Estate Appraisals, Inc. 321 Ohio Street, Upper Suite 1, Terre Haute, Indiana 47807
Phone and Fax number: (812) 235-4576 E-Mail Address: [email protected]
C
Conley Real Estate Appraisals, Inc.
1400 Springhill Road, Terre Haute, Indiana Page 2
TABLE OF CONTENTS
Cover Page Table of Contents..................................................................................................................................................2 Purpose of the Appraisal....................................................................................................................................19 Intended Use of Report ......................................................................................................................................20 Property Rights Appraised................................................................................................................................20 Effective Date of Value.......................................................................................................................................20 Inspection Date ...................................................................................................................................................20 Date of Report.....................................................................................................................................................20 Exposure Time....................................................................................................................................................20 Appraisal Development and Reporting Process ..............................................................................................21 Description of Real Estate Appraised ...............................................................................................................21 Description of Real Estate Appraised ...............................................................................................................21 Description of Real Estate Appraised ...............................................................................................................22 Identification of Property ..................................................................................................................................22 Three Year History.............................................................................................................................................22 Zoning, Flood Plain, and Census Tract ............................................................................................................22 Flood Plain Map .................................................................................................................................................24 Site Data ..............................................................................................................................................................25 Plat Map ..............................................................................................................................................................26 Description of Improvements ............................................................................................................................27 Highest & Best Use .............................................................................................................................................29 Summary of Analysis and Valuation ................................................................................................................29 Sales Comparison Approach .............................................................................................................................29 Three Year History.............................................................................................................................................34 Three Year History.............................................................................................................................................46 Three Year History.............................................................................................................................................48 Comparable Sales Summary .............................................................................................................................52 Plat Map ..............................................................................................................................................................53 Conclusion...........................................................................................................................................................54 Cost Approach to Value.....................................................................................................................................55 Income Capitalization Approach ......................................................................................................................55 Assumptions and Limiting Conditions .............................................................................................................56 Certification ........................................................................................................................................................59 Qualifications of Appraiser................................................................................................................................60
Conley Real Estate Appraisals, Inc.
1400 Springhill Road, Terre Haute, Indiana Page 3
JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
NOVEMBER 27, 2006
VIEW: Front view of the office & showroom building looking north across Springhill Road
VIEW: West side view of the office & showroom building looking east from South 14th Street
Conley Real Estate Appraisals, Inc.
1400 Springhill Road, Terre Haute, Indiana Page 4
JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
NOVEMBER 27, 2006
VIEW: Rear or north side view of the office & showroom building
VIEW: Rear or north side view of the office & showroom building
Conley Real Estate Appraisals, Inc.
1400 Springhill Road, Terre Haute, Indiana Page 5
JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
NOVEMBER 27, 2006
VIEW: East side view of the office & showroom building
VIEW: Reception area in the office & showroom building
Conley Real Estate Appraisals, Inc.
1400 Springhill Road, Terre Haute, Indiana Page 6
JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
NOVEMBER 27, 2006
VIEW: Showroom
VIEW: Showroom
Conley Real Estate Appraisals, Inc.
1400 Springhill Road, Terre Haute, Indiana Page 7
JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
NOVEMBER 27, 2006
VIEW: Showroom
VIEW: Private office
Conley Real Estate Appraisals, Inc.
1400 Springhill Road, Terre Haute, Indiana Page 8
JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
NOVEMBER 27, 2006
VIEW: Storage room
VIEW: Employee break room
Conley Real Estate Appraisals, Inc.
1400 Springhill Road, Terre Haute, Indiana Page 9
JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA
SUMMARY APPRAISAL REPORT This is a Summary Appraisal Report, which is intended to comply with the reporting requirements set forth under Standards Rule 2-2 (b) of the Uniform Standards of Professional Appraisal Practice for a Summary Appraisal Report. As such, it presents only summary discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser’s opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser’s file. The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated below. The appraiser is not responsible for unauthorized use of this report. CLIENT: Mr. Kurt Jones Jones & Sons, Inc. 1400 Springhill Road Terre Haute, Indiana 47802 APPRAISER: Brian F. Conley
Conley Real Estate Appraisals, Inc. 321 Ohio Street, Upper Suite 1
Terre Haute, Indiana 47807 SUBJECT: Jones & Sons, Inc. Property 1400 Springhill Road Terre Haute, Indiana 47802
“ The reasonably probable and legal use of vacant land or improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value.”2
Highest and best use as though vacant: Some type of
commercial development consistent with what would be found
along Springhill Road for the front 1-2 acres. The back 1.61
to 2.61 could be used for residential development.
Highest and best use as though improved: Its current use for a
retail showroom and office building with storage.
SUMMARY OF ANALYSIS AND VALUATION
Sales Comparison Approach
This is an appraisal technique in which the market value
estimate is predicated upon prices paid in actual market
transactions and current listings. It is a process of
correlation and analysis of recently sold properties.
This appraiser attempted to find recent sales of older
retail/office buildings used for sales and storage. There
were no such sales found. Below are several sales in Vigo
Comparable Sale # 1 Type Property Commercial Address 1033 N Fruitridge Ave County Vigo Terre Haute, Indiana Township Harrison
Date Sold: May 30, 2003 Price: $190,000 Seller: Barcus Square Foot: 6656 Buyer: Gutish $ Per Square Feet: 28.56 Exterior Construction: Alum/
Steel Site Size:
# of Stories: One Building to Land %: Unknown # of Rooms: Zoning: M-2 # of Baths: 2 Deed Record Information: Basement: Slab Building Date: 1982 Square Foot: %Finished: Parcel Number: 18-06-13-200-010 Legal Description: Total Assessed Value: Unknown Condition of Sale: Arms Length Financing: Cash to Seller Date Verified: 12/22/03 Verified By: MLS #10781 Comments: Highest and Best Use: Commercial
Comparable Sale # 2 Type Property Industrial Address 1025 N. Fruitridge Ave. County Vigo Terre Haute, IN 47803 Township Harrison Date Sold: November 11, 2002 Price: $625,000 Seller: Oakley Corp. Square Foot: 16,080 Buyer: Reynolds & Co. $ Per Square Feet: $38.87 Exterior Construction: Steel Site Size: 3.86 Acres # of Stories: One Building to Land %: 9.6% # of Rooms: -- Zoning: M-2 # of Baths: -- Deed Record Information: Basement: Slab Building Date: 1983 Square Foot: %Finished: Parcel Number: 18-06-13-200-011 Legal Description: Prt N ½ W ½ W ½ NE, 13-12-9 Total Assessed Value: $94,470 Condition of Sale: Arms Length Financing: Cash to Seller Date Verified: 03/30/2003 Verified By: VC Auditor SD
form Comments: Highest and Best Use: Industrial/Wrhse – 2,600 SF of office space
General Asking Price: $395,000 Zoning: M-1 List Agent: PFISTER, MARY CAYE Parcel #: 1-18-0634181001 Agent Phone: (812)232-5083 Township: Other Listing Office: PFISTER BH&G Business Type: DISTRIBUTION Office Phone (812)232-5083 Year Built: 1968 Compensation-Buyer Broker:
2.5 A.V.: 194900
Compensation-Variable Rate:
2.5 Bldg#1 Total SqFt: 29160
Compensation-Contingency (Y/N):
N Bldg#1 WH SqFt: 0
Keybox: No Bldg#1 Office SqFt: 0 Keybox-Number: N Bldg#1 Mfg. SqFt: 0 Owner Name/Phone: NATIONWIDE POSTAL MG-N/A Bldg#1 Ceiling Ht-
Max: 16'
Listing Date: 04/11/1997 Showing Instructions: CALL LIST OFFICE Lot Size: 2.6 ACRES Features * EXTERIOR CONSTRUCTION * MISCELLANEOUS EXTERIOR * ROADS Masonry Onsite Parking City Street * LOCATION Paved Parking * WATER Industrial Loading Dock City Water * HEATING * POSSESSION * SEWER Natural Gas Immediate City Sewer Financial Taxes: 23534 Financing Terms: CASH Remarks VERSATILE BUILDING ADAPTABLE TO VARIOUS USES. MOSTLY WIDE-OPEN WORK AREA, SOME OFFICE AREA, LUNCH ROOM, RESTROOMS.LARGE COVERED LOADING DOCK. ABUNDANCE OF PARKING. PREVIOUSLY USED AS A POST OFFICE DISTRIBUTION CENTER. ABUNDANCE OF CONCRETE PARKING, 18,000 Addendum SF OF ASPHALT. ALSO PARKING ACROSS 12TH STREET. ALSO AVAILABLE FOR LEASE. Sold How Sold: Conventional Selling Office 1: PFISTER BH&G Contract Date: 02/26/2002 Buyer: Posey Closing Date: 06/11/2002 Concessions: None Sold Price: $325,000 DOM: 1887 Selling Agent 1: P, HOUSE
MLS #: 28314 Baths: 2 Class: COMMERCIAL/INDUSTRIAL Basement: NO Type: OTHER Stories: OT Area: Vigo County Price: $325,000 Status: SLD Address: 1925 S 13TH ST ZIP: 47802 Terre Haute For Sale
Site Size Date Location B/L % Construction Condition Age Office Use Multiple
BuildingsAdjusted
Value
1400 Springhill --- 10,816 --- 3.61 A 11/27/06 Average 7% CB/Pole Fair 1974 Large Retail Yes
1 1033 Fruitridge $190,000 6,656 $28.55 2.2 A 5/30/03 Average 7% Pole Average 1992 Large Retail No $22.46-10% +9% +10% -10% -10% -10%
2 1025 N. Fruitridge $625,000 16,080 $38.87 3.86 A 11/11/02 Average 10% Pre-Engi Average 1983 Small Industrial No $42.27+20% +13% -10% -10% -0- +10% -10%
4 5176 N. Clinton $300,000 10,560 $28.41 4.89 A 04/20/06 Average 4% Pole Average 1990 Large Office/Ware No $22.78-0- -0- +10% -10% -10% -10%
5 1624 E. Springhill 365,000 9,060 $40.29 2.38A 05/18/05 Average 9% Various Average Various Large Retail/Storage Yes $36.98-0- +3% -0- -0- -10% -10% -0-
6 1925 S. 13th St. $325,000 29,160 $11.15 2.6a 06/11/02 Average 25% Pre Engi Average 1968 Small Dist Wrhs No $12.8430% +13% -0- +10% -20% -10% -0- +10% -10%
7 800 E. Haythorne Ave. $375,000 20,000 $18.75 6.53 A. 05/05/04 Average- 7% Pre Engi/Stl Average 1999 None Industrial No $17.6830% +6% +10% -20% -10% -20% +20% -10%
8 951 Ohio Street $525,000 22,000 $23.86 .98 A. 03/25/03 Average+ 52% Brk/Alum/Stl Average 1993 Small Wrhse/Office No $29.28+30% +9% -10% +20% -0- -10% -10% +10% -10%
9 175 Canal St $300,000 6,240 $48.08 1.01 A 6/27/05 Average 14% Pole Average 1985 Small Office/Storage Yes $38.83-20% +3% -0- 10% -10% -10% +10% -0-
10 3601 N. Fruitridge $375,000 7,800 $48.08 2.00 A 7/29/03 Average 9% Metal/Pole Average 83/94 Large Retail/Ware Yes $33.11-10% +9% -0- -0- -10% -10% +10% -0-
11 1041 N. Fruitridge $525,000 12,508 $41.97 2.3 A 1/15/05 Average 12% Brick/Pole Average 1984 Large Retail/Ware No $34.67+10% +3% -0- -0- -10% -10% -10%
ASSUMPTIONS AND LIMITING CONDITIONS: 1. As agreed upon with the client prior to the preparation of
this appraisal, this is a Limited Appraisal because it invokes the Departure Provision of the Uniform Standards of Professional Appraisal Practice. As such, information pertinent to the valuation has not been considered and/or the full valuation process has not been applied. Depending on the type and degree of limitations, the reliability of the value conclusion provided herein may be reduced.
2. No responsibility is assumed for legal or title
considerations. Title to the property is assumed to be good and marketable, unless otherwise stated in this report.
3. The property is appraised free and clear of any or all
liens and encumbrances, unless otherwise stated in this report.
4. Responsible ownership and competent property management is
assumed, unless otherwise stated in this report. 5. The information furnished by others is believed to be
reliable. However, no warranty is given for its accuracy. 6. All engineering is assumed to be correct. Any plot plans
and illustrative material in this report are included only to assist the reader in visualizing the property.
7. It is assumed that there are no hidden or unapparent
conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them.
8. It is assumed that there is full compliance with all
applicable federal, state, and local environmental regulations and laws, unless otherwise stated in this report.
9. It is assumed that all applicable zoning and use
regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in this appraisal report.
10. It is assumed that all required licenses, certificates of occupancy or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this report are based.
11. Any sketch in this report may show approximate dimensions
and is included to assist the reader in visualizing the property. Maps and exhibits found in this report are provided for reader reference purposes only. No guarantee as to accuracy is expressed or implied, unless otherwise stated in this report. No survey has been made for the purpose of this report.
12. It is assumed that the utilization of the land and
improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass, unless otherwise stated in this report.
13. The appraiser is not qualified to detect hazardous waste
and/or toxic materials. Any comment by the appraiser that might suggest the possibility of the presence of such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such determination would require investigation by a qualified expert in the field of environmental assessment. The presence of substances such as asbestos, urea-formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The appraiser’s value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value, unless otherwise stated in this report. No responsibility is assumed for any environmental conditions, or for any expertise or engineering knowledge required to discover them. The appraiser’s descriptions and resulting comments are the result of the routine observations made during the appraisal process.
14. Unless otherwise stated in this report, the subject
property is appraised without a specific compliance survey having been conducted to determine if the property is or is not in conformance with the requirements of the Americans with Disabilities Act. The presence of architectural and communications barriers that are structural in nature that would restrict access by disabled individuals may adversely affect the property’s value, marketability, or utility.
15. Any proposed improvements are assumed to be completed in a good workmanlike manner in accordance with the submitted plans and specifications.
16. The distribution, if any, of the total valuation in this
report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used.
17. Possession of this report, or a copy thereof, does not
carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event, only with proper written qualification and only in its entirety.
18. Neither all nor any part of the contents of this report
(especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news sales, or other media without prior written consent and approval of the appraiser.
19. This appraisal report has been prepared for the exclusive
benefit of Mr. Kurt Jones of Jones & Sons, Inc. It may not be used or relied upon by any other party. Any party who uses or relies upon any information in this report, without the preparer’s written consent, does so at his own risk.
I certify that to the best of my knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased, professional analyses, opinions, and conclusions.
3. I have no present or prospective interest in the property that is the subject of this report and I have no personal interest or bias with respect to the parties involved.
4. My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event.
5. This appraisal was not base on a requested minimum valuation, a specific valuation, or the approval of a loan.
6. My analyses, opinions, and conclusions were developed, and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice.
7. I have made a personal inspection of the property that is the subject of this report.
8. No one provided significant professional assistance to the person signing this report.
9. The reported analyses, opinion, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.
10. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
Brian F. Conley, GRI Indiana Certified General Appraiser
Bachelor of Business Administration - Indiana State University, 1976. Appraisal Course IA-1 - (Real Estate Appraisal Principles) - sponsored by the Appraisal Institute, completed at Indiana University, 1978 and 1990. Appraisal Course IA-2 - (Basic Valuation Procedures) - sponsored by the Appraisal Institute, completed at Indiana University, 1978 and 1990. Appraisal Course IB - (Capitalization) - sponsored by the Appraisal Institute, taken at Indiana University, 1980. Appraisal Course II - (Valuation Analysis) - sponsored by the Appraisal Institute, taken at Indiana University, 1981. Graduate Realtors Institute (GRI) - sponsored by the Indiana Association of Realtors, taken at Indiana University, 1979. Fair Housing Laws - sponsored by the Education REsources, taken in Indianapolis, August 2004. Market Analysis and the Site to do Business Seminar – Sponsored by the Appraisal Institute, taken in Indianapolis, July 2005 Americans with Disabilities Act Seminar - sponsored by the Education REsources, taken in Indianapolis August 2006 Standards of Professional Practice - sponsored by Education REsources, taken in Indianapolis, August 2006. Legal Descriptions & Surveying for Condemnation - sponsored by Education REsources, taken in Indianapolis, August 2002. Contemporary Environmental Issues - sponsored by the Education REsources, taken in Indianapolis, August 2004 PROFESSIONAL EXPERIENCE: Southeast Drainage Project. Projects 13, 14, 15, 17, 18, 19 and 20 Sewer Projects, Board of Sanitary Commissioners. Honey Creek-Vigo Conservancy District Plan A and Plan B Flood Control Project.
Chamberlain Road project and Industrial Park Sewer Easements, Vigo County Commissioners. Federal National Mortgage Association (FNMA), Relocation Companies, various attorneys and private parties. All major banks in the Terre Haute area. Has been continuously associated with real estate appraisals for over 30 years with the present firm of Conley Real Estate Appraisals, Inc., of which he is president.
Appointed by and testified in Vigo County Superior Court, Clay County Circuit Court, and Owen County Circuit Court as an appraiser. Appointed by Governors B. Evan Bayh and Frank O’Bannon as a real estate appraiser for the State of Indiana. Approved appraiser with Indiana Department of Transportation.
PROFESSIONAL AFFILIATIONS: Indiana Certified General Appraiser license # CG69100221
Appointed by Governor B. Evan Bayh to the Indiana Real Estate Commission (June 1, 1991 through May 31, 1999). Reappointed by Governor Frank O’Bannon (June 1, 1999 through May 31, 2003). Resigned to accept a new position on August 14, 2001 Appointed by Governor Frank O’Bannon to the Indiana Real Estate Appraiser Licensure Board, August 14, 2001 through October 12, 2006. Served as Board Chairman 2004 & 2005. Associate Member, Appraisal Institute.
Indiana Real Estate Brokers License number IB20501035.
Past Chairman, Education Committee, Terre Haute Area Association of Realtors.
Member, past director and past president of Terre Haute Board Association of Realtors.
Member and past director of Indiana Association of Realtors.
Member of National Association of Realtors.
President and member Terre Haute Area Association of REALTORS Multiple Listing Service.
Terre Haute Area Association of REALTORS, 1985 and 2003 REALTOR of the Year.
Member of the Terre Haute Homebuilders Association
Former member of Terre Haute City Council. (1988-1995).
Past member of Vigo County Area Plan Commission.
Awarded Sagamore of the Wabash by Governor B. Evan Bayh, January 1997
Member and current Vice Chairman of the Terre Haute Redevelopment Commission (appointed November