real estate appraisal no. 14960002 1710 river road july 28 ... · rroark aappraisal sservices,...

REAL ESTATE APPRAISAL NO. 14960002

1710 River Road Apartments1710 River Road

Jacksonville, Fl 32202

Inspection DatesJuly 28 and 29, 2014

Effective Date of ValueAugust 5, 2014

Preparedfor

Mr. James Michael MathewsSabrina Land Trust

PO Box 550855Jacksonville, Florida 32255

Preparedby

Sid J. Roark, MAI, SRACert Gen RZ 146

Roark Appraisal Services, Inc.1840 Moorings Circle

Middleburg, Florida 32068

904-215-6006

RRoark AAppraisal SServices, IInc.1840 Moorings Circle Phone 904-215-6006Middleburg, Florida 32068 Fax 888-227-1017SID J. ROARK, MAI, SRA CHERYL G. ROARKCERT GEN. RZ146 CERT GEN. RZ296

August 27, 2014

Mr. James Michael MathewsSabrina Land TrustP O Box 550855Jacksonville, FL 32055

Re: Appraisal #14960002 - Sabrina Land Trust1710 River Road Apartments1710 River RoadJacksonville, Fl 32202

Dear Mr. Mathews;

In accordance with your request for professional valuation services, I have prepared a real estate appraisal, for the abovecaptioned property. This report is for the exclusive use of the addressee. The appraiser is not responsible for unauthorized useof this report.

This Appraisal in a summary format is intended to comply with the requirements set forth under Standards Rules 1-4 and 2-2 of the Uniform Standards of Professional Appraisal Practice for Appraisal Reports, effective January 1, 2014. This reportis the result of an Appraisal process that allows for certain departures from specific guidelines of the USPAP were invoked. This is in a summary format because it relies on the Sales Comparison Approach.

It is my opinion that the “As Is” Market Value of the Fee Simple Interest, in the subject, as of the valuation date August 5,2014 was; $800,000.00

It is my opinion that the “Upon Completion” Market Value of the Fee Simple Interest, in the subject, approximately 120 daysforward of the valuation date August 5, 2014, as a condominium, will be; $960,000.00

I certify that, during the completion of the assignment, I personally inspected the property that is the subject of this report. Ifurther certify that I have no past, present or anticipated future interest in the real estate and to the best of my knowledge thefacts contained herein are true and correct.

We appreciate this opportunity to be of service.

Respectfully submitted,

Sid J. Roark, MAI, SRACert Gen RZ146SJR/sr

APPRAISERS CERTIFICATION

I certify that, to the best of my 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, andare my personal, unbiased professional analyses, opinions, and conclusions.

I have no present or prospective interest in the property that is subject of this report, and I have no personal interest or biaswith respect to the parties involved.

my compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the useof, this report.

my analyses, opinions, and conclusions were developed, and this report has been prepared in conformity with the requirementsof the Code of Professional Ethics, the Uniform Standards of Professional Appraisal Practice of the Appraisal Institute, theAppraisal Foundation (USPAP) and is in compliance with FIRREA and the State of Florida for State-Certified General RealEstate Appraisers.

the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorizedrepresentatives and the State of Florida relating to review by the Real Estate Appraisal Subcommittee of the Florida RealEstate Commission.

as of the date of this report Sid J. Roark has completed the requirements of the continuing education program of the AppraisalInstitute and the State of Florida for State-Certified General Real Estate Appraisers.

This appraisal assignment is not contingent upon:1) a predetermined result2) results that favor the client3) value amount4) attainment of a stipulated result, or5) occurrence of a subsequent event.

no one provided significant professional assistance to the person signing this report except as noted herein.

Based upon the Definition of Market Value, as defined in Chapter 12, Code of Federal Regulation, Part 34.42 (f) is:"The most probable price which a property should bring in a competitive and open market under allconditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, andassuming the price is not affected by undue stimulus. Implicit in this definition is the consummation ofa 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 U.S. dollars or in terms of financial arrangements comparable thereto; and,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.1

I have never appraised this property prior to this assignment.

The undersigned completed the analysis and valuation in this assignment.

I personally inspected the subject property Sid J. Roark, MAI, SRACert Gen RZ146

1Chapter 12, Code of Federal Regulation, Part 34.42(f)

SUBJECT PHOTOGRAPHS

South elevation

North elevation

Front elevation

SUBJECT PHOTOGRAPHS

East elevation and parking area

Looking south along River Road

looking north along River Road

SUBJECT PHOTOGRAPHS

Looking south along St. Johns River

Looking north along St. Johns River

River front view of building

SUBJECT PHOTOGRAPHS

Subject boat dock

Subject boat dock

Subject boat dock & slips

SUBJECT PHOTOGRAPHS

Kitchen

Bathroom

SUBJECT PHOTOGRAPHS

Bathroom

Living Room

1710 River Road Apartments, 1710 River Road, Jacksonville, Fl.

TABLE OF CONTENTSPAGE

Letter of TransmittalCertification and Definition of Market ValueSubject Photographs

Section 1Subject Property Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Effective Date of Appraisal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Function of the Appraisal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Definitions, Fee Simple . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Intended Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Scope of the Appraisal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Exposure & Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Special Assumptions and Limiting Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Assumptions and Limiting Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 - 7

Section 2Neighborhood Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 - 2

Section 3Site Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 - 2Description of Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 6Highest and Best Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 - 8

Section 4Sales Comparison Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 - 13Reconciliation and Opinion of Final Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Estimated Cost of Renovations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 - 15

ADDENDUMLegal DescriptionEngagement LetterAppraisers State Certification

1710 River Road Apartments, 1710 River Road, Jacksonville, Fl. Sec. 1 Pg. 1

SUBJECT PROPERTY SUMMARY

Subject Properties: 1710 River Road Apartments1710 River RoadJacksonville, Fl 32207

Effective Date of Value: July 29, 2014Date of Inspections: July 28 & 29, August 5, 2014

Property Type/Use: Residential Apartments

Exposure Time 12 MosMarketing Period 12 Mos

Easements/Encroachments: None detrimental

Prior Appraisal: I have never appraised this property prior to this appraisal assignment.

Tax Identification No.:Parcel Number: 081117-0020Year 2013Assessed Value: $774,944R. E. Taxes: $14,873.27 Less 4% $14,278.34Millage: 0.0191927

Highest & Best Use: As Vacant: Low Rise Condo As Improved: Rental apartments do not generate the income that reflects the value of this

river front location. HBU is considered to be as a 4 unit condominium.

Flood Zone: Zone X; Outside 500 year flood plain, Duval County; Verify with survey

Site Size: 8,940 SFGross Building Size: 4,859 SF

Site Improvements: Water, sewer, fill, paved parking, sidewalks, landscaping, sprinkler system,storm water runoff into public storm sewers.

Inspection: I completed interior inspections on Apartments 2, 3 & 4.


PROPERTY INTEREST APPRAISEDThe expressed value estimate considers the FEE SIMPLE interest in the subject property.

PURPOSE OF APPRAISAL AND USE RESTRICTIONSThe purpose of this Appraisal is to estimate the MARKET VALUE of the FEE SIMPLE INTEREST in the subjectas a four unit condominium building.

FUNCTION:This report is for the exclusive use Mr. Matthews and owners. It is my understanding that this report will beuse by Mr. Mathews to assist in establishing the AS IS and Upon Completion Market Value of the subject property.

DEFINITION OF MARKET VALUEMarket Value as used within this report is as defined by the Office of the Controller of the Currency under 12 CFR,Part 34, Subpart C.

“FEE SIMPLE” ESTATEAbsolute ownership unencumbered by any other interest or estate; subject only to the limitations of eminent domain,escheat, police power and taxation.


SCOPE OF WORK TO COMPLETE APPRAISAL ASSIGNMENTThe purpose of this appraisal is to form an opinion of the "As Is" and Upon Completion Market Value of theFee Simple Interest in each of the subject residential units as a condominium unit building. In this Appraisalassignment the Cost Approach has not been utilized. However the cost to complete the renovations and conversionto a condominium property is a consideration in estimating the AS IS Market Value of the property. It is theappraisers opinion the Sales Comparison Approach is sufficient to value the subject property.

To value the subject property, the appraiser will first consider the various forces that influence values within theneighborhood, the site, and the improvements.

T In preparing this appraisal the appraisers made detailed inspection of the subject property.T Researched the commercial market in the subject area..T Gathered and confirmed information on comparable properties.T Completed the applicable approaches to value.T Reconciled the value estimates to conclude a final opinion of requested Fee Simple Market Value.

The appraisal process therefore involved the departure from applicable sections of Standards Rule 1& 2.

This Appraisal Report, in a summary format, sets forth only the appraiser’s conclusions and presents limiteddiscussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser’sopinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in theappraiser’s file. The appraiser is not responsible for unauthorized use of this report.

COMPETENCY OF THE APPRAISERSThe appraisers have the knowledge and experience, within the geographic area, necessary to complete the requestedappraisal of the subject property.

REASONABLE EXPOSURE TIME“Exposure time” is defined within the Standards of Professional Appraisal Practice of the Appraisal Institute asfollows: the estimated length of time the property interest being appraised would have been offered on the marketprior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; aretrospective opinion based upon an analysis of past events assuming a competitive and open market. Exposure timeis always presumed to precede the effective date of the appraisal. An exposure time of 12 months is consideredreasonable to expose the subject property to the market today.

ESTIMATED MARKETING TIMEThe subject property is located on the St. Johns River in the San Marco Historic area. Based on knowledge of theNortheast Florida area, market data research services such as CoStar, LoopNet, MLS, etc. and current economicconditions, it is my opinion a marketing time of twelve months could be realistically expected for the subjectproperty assuming an aggressive marketing campaign.


SPECIAL ASSUMPTIONS AND LIMITING CONDITIONS1. The appraisal assignment is not based on a requested minimum value, a specific value, or the approval of

a loan.

2. The appraiser has no present or contemplative future interest in the property appraised and neither theemployment to make the appraisal nor the compensation for it is contingent upon the appraised value of theproperty.

3. The Americans With Disabilities Act is briefly described in the Assumptions and Limiting Conditions. ThisAct requires all existing and new public buildings to be in compliance with this Act unless, in the case ofexisting buildings, it is a financial burden or impossible to comply without total renovations. As appraisers,we are not qualified to make a determination as to a buildings compliance with the Americans WithDisabilities Act. No attempt has been made to determine if the subject is in compliance with this Act. Ifcompliance is a concern a qualified architect or building engineer should be consulted. More informationon the ADA is included in the General Assumptions and Limiting Conditions (No. 35).

4. No evidence of soil contamination was noted during my inspection of the property. However, as anappraiser I am not qualified or licensed to conduct contamination surveys and do not warrant the presenceof, or lack of, contamination with regard to the subject property.


ASSUMPTIONS AND LIMITING CONDITIONS

1. This appraisal represents the best opinion of the evaluators as to market value of the property as of the appraisal date. The term "market value" is defined in the appraisal report.

2. The appraisers have no present or prospective interest in the property that is the subject of this report, and have nointerest or bias with respect to the parties involved.

3. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with therequirements of the Code of Professional Ethics, the Standards of Professional Practice of the Appraisal Institute, theAppraisal Foundation and the applicable state appraisal board.

4. The statements of fact contained in this report are true and correct; the reported analyses, opinions, and conclusionsare limited only by the reported assumptions and limiting conditions, and are our personal, unbiased professionalanalyses, opinions, and conclusions.

5. Possession of this report, or copy thereof, does not carry with it the right of publication or reproduction, nor may it beused by any but the applicant without prior written consent of the applicant and the appraiser, and in any event, onlyin its entirety.

6. The appraisers, by reason of this report, are not required to give testimony in court with reference to the propertyherein, nor obligated to appear before any governmental body, board, or agent, unless arrangements have beenpreviously made therefor.

7. This appraisal report covers only the premises herein, and no figures provided, analysis thereof, or any unit valuesderived therefrom are to be construed as applicable to any other property, however similar they may be.

8. Distribution of the total valuation in this report between land and improvements applies only under the existingprogram of utilization. Separate valuations of land and improvements must not be used in any other manner, not inconjunction with any other appraisal, and are invalid if so used.

9. Certain data used in compiling this report was furnished by the client, his counsel, employees, and/or agent, or fromother sources believed reliable. Data has been checked for accuracy as possible, but no liability or responsibility maybe assumed for complete accuracy

10. No responsibility is assumed for matters legal in nature, nor is any opinion rendered herein as to title, which is assumedto be good and merchantable. The property is assumed free and clear of all liens and encumbrances, unless specificallyenumerated herein, and under responsible ownership and management as of the appraisal date.

11. Consideration for preparation of this appraisal report is payment in full by the employer of all charges due theappraisers in connection therewith. Any responsibility by the appraisers for any part of this report is conditioned uponfull and timely payment.

12. Neither all nor any portion of the contents of this appraisal shall be conveyed to the public through advertising, publicrelations, news sales, or other media without the written consent and approval of the appraisers, particularly as tovaluation conclusions, identity of the appraisers or firm with which they are connected, or any reference to theAppraisal Institute, or to the MAI or SRA designations.

13. Possession of this report or copy thereof does not convey any right of reproduction or publication, nor may it be usedby any but the client, the mortgagee, or its successors or assigns, mortgage insurers, or any state or federal departmentor agency without the prior written consent of both the client and the appraisers, and, in any event, only in its entirety.

14. If not specifically prepared for the user any loans or commitments that are predicated on value conclusions reportedin this appraisal, the user should verify the facts and valuation conclusions contained in this report with the appraisers.

15. The use of this report is subject to the requirements of the Appraisal Institute and the State Appraisal Board relating


to review by duly authorized representatives.

16. No one provided significant professional assistance other than person(s) signing this report, or indicated in the reportas having made a substantial contribution to the substance or value conclusions.

17. Under Florida's Growth Management Plan, which took effect April 1, 1991, any future or additional developmentof the Subject Property will be subject to approval by the appropriate governmental bodies. Issues which will beconsidered at the time include concurrency and levels of service in regards to transportation, utilities, refuse, recreation,potable water, etc. Concurrency restrictions and levels of service are at all times subject to change. All futuredevelopment is subject to adequate available levels of service. The lack of sufficient available service levels willimpact future development potential and will likely impact the value at that time.

18. No survey of the property was made or caused to be made by the appraisers. It is assumed the provided legaldescription closely delineate the property, and was prepared by a qualified individual. Drawings in this report are toassist the reader in visualizing the property and are only an approximation of grounds or building area.

19. No engineering survey was made or caused to be made by the appraisers, and any estimates of fill or other site workare based on visual observation, and accuracy is not guaranteed.

20. No test boring or typing and analysis of sub-soils were made or caused to be made by the appraisers. Soil of the parcelunder appraisement appears firm and solid, typical for the area; and subsidence in the area is unknown or uncommon. The appraisers, however, cannot warrant against such condition or occurrence.

21. Sub-surface rights (minerals, oil, or water) were not considered in this report, unless directed by the client to make suchconsiderations.

22. Any tracts that, according to survey, map or plat, indicate riparian and/or littoral rights, are assumed to go with theproperty unless easements or deeds are found that indicate otherwise.

23. Information as to the type and variety of trees, shrubs, and other vegetation mentioned in the report are believed correctfrom observation and personal knowledge, but no responsibility is assumed for complete accuracy

24. All value estimates have been made contingent on zoning regulations and land use plans in effect as of the date ofappraisal, and based on information provided by governmental authorities and employees.

25. The appraisers determination of the flood plain status of the property is based on an estimate of the approximatelocation of the subject property on the current FEMA flood map. This actual flood plain status should be verified bya qualified civil engineer.

26. Description and condition of physical improvements, if any, described herein are based on visual observation. As noengineering tests were conducted, no liability can be assumed for soundness of structural members. All constructionis assumed to be in compliance with applicable building codes in enforce at the time of construction.

27. Cost estimated for construction or replacement of improvements were referenced with known replacement of similarfacilities and compared with date obtained from Marshall Valuation Service or other cost information.

28. Estimates of expenses, particularly as to assessment by the county property appraiser and subsequent taxes, are basedon study of historical or typical data. Such estimates are based on assumptions and projections which, as with anyprediction, are affected by external forces, many unforeseeable. While all estimates are based on our best knowledgeand belief, no responsibility can be assumed that such projections will come true.

29. The forecasts or projections included in this report are used to assist in the valuation process and are based on currentmarket conditions, anticipated short-term supply and demand factors, and a continued stable economy. These forecastsare therefore subject to changes in future conditions, which cannot be accurately predicted by the appraiser and couldaffect the future income and/or value forecasts.


30. The appraisers have carefully inspected any improvements described in the report, and any reference as to termites,dry rot, wet rot, or other infestation was reported as a matter of information by the appraisers; and existence oramount of damage noted, if any, is not guaranteed and the appraisers expressly disclaim any responsibility relatingthereto. Inspection by a reputable pest control company is recommended for any existing improvement.

31. In this appraisal assignment, the existence of potentially hazardous material used in the construction or maintenanceof the building, such as the presence of urea formaldehyde foam insulation, and/or existence of toxic waste, which mayor may not be present on the property, has not been considered. The appraiser is not qualified to detect suchsubstances. We urge the client to retain an expert in this field if desired.

32. Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, maypresent health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelineshave been found in buildings in Florida. Additional information regarding radon and radon testing may be obtainedfrom your county public health unit.

33. Properties contaminated with toxic waste is a newly emerging topic. In some instances, the cost of governmentordered remedial action may be substantial compared to or may even exceed a property's value. Also, a governmentmay restrict the use of contaminated property in ways which substantially limits market value. In valuing yourproperty, it is assumed that the site does not contain any contaminated waste product. We were not provided with atest depicting this to be the case, yet this is an assumption that will be build into the value. Obviously, is at a later dateany form of contaminated waste is found upon the site, the appraised value will be affected accordingly.

34. Many older structures in Florida and Southwest Florida were constructed with materials that contain some asbestos. As per federal guidelines, this asbestos is being eliminated from many buildings. The appraisal of this property is asthough there is no asbestos present in the improvement, unless reported to us by a qualified expert.

35. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. The appraisers have not madea specific compliance survey and analysis of this property to determine whether or not it is in conformity with thevarious detailed requirements of the ADA. It is possible that compliance survey of the property, together with adetailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or moreof the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since theappraisers have no direct evidence relating to this issue, possible noncompliance with the requirements of ADA inestimating the value of the property has not been considered.

The appraisers are not qualified to, and make no judgement as to the ADA Compliance Regulations with regards to thesubject property.


NEIGHBORHOOD DESCRIPTIONNeighborhood and district boundaries identify the physical area that influences the value of a subject property. These boundaries may coincide with observable changes in prevailing land use or occupant characteristics. Physical features such as the type of structures, street patterns, terrain, vegetation, and lot sizes tend to identify landuse districts. Transportation arteries (highways, major streets, and railroads), bodies of water (rivers, lakes andstreams), and changing elevation (hills, mountains, cliffs and valleys) can also be significant boundaries.2

The general neighborhood is San Marco an older HISTORIC neighborhood located across the St. Johns River fromdowntown Jacksonville along the easterly and southerly banks of the St. Johns River. Neighborhood boundariesinclude Interstate 95 to the east, the St. Johns River to the north and west and University Boulevard West to thesouth. Extensive development in this area began in the 1930's. This is one of the older close in areas that is nowbecoming more desirable as growth has pushed new development farther out of the city resulting in greatly increasedcommute times and greater traffic congestion. Small infill subdivisions are occurring in all areas of the city wheresmall vacant tracts of land are available.

The driving influence in the San Marco area is Baptist and Nemors Children’s Hospitals, the historic estate homes located along the St. Johns River and the surrounding residential neighborhoods all in close proximity to downtownJacksonville. Many of the retail and office buildings in the San Marco neighborhood have been renovated over theyears. San Marco Square is a prestigious local neighborhood shopping and dining area that is the focal point of theSan Marco neighborhood.

The subject location is a 5 minute commute across the St. Johns River into downtown Jacksonville. The San Marcoarea is convenient to the Southpointe and Baymeadows areas of the city. These areas are primary employment andleisure centers of the city.

The residential area neighborhoods are fully developed with numerous subdivision neighborhoods. Improvementsinclude single family residences, scattered duplexes and small multi family properties and older small multi-familyapartment complex. Neighborhood elementary schools in the area support residential development in the area.

Commercial development is primarily older neighborhood shopping centers and small business nodes like SaintNicholas and San Marco. The area has regained some of it’s lost appeal as Jacksonville has expanded and drivetimes to down town employment have become longer from the outlying areas of the city. The close inneighborhoods are rebounding with renewed buyer. Homes and business property are being purchased andrenovated to serve the economic improvement taking place in the older close in neighborhoods. Wal-Mart openeda supercenter just south of the neighborhood area on Philips Highway, north of University Boulevard in the springof 2006. To conclude the San Marco area is a diverse well balanced neighborhood. As land for development became scarceland prices and home prices have increased significantly. Less expensive, moderate housing and mid prices housingis not found in this area. This area continues to be desirable due to convenient local support both in the commercialand service areas. Rising gas prices and longer commute times from outlying areas have made the close in areasmore desirable. Most important is good access to the employment centers of the City of Jacksonville.

2Appraisal Institute, The Appraisal of Real Estate, Fourteenth Edition, (2013)

Copyright © and (P) 1988–2007 Microsoft Corporation and/or its suppliers. All rights reserved. http://www.microsoft.com/streets/Certain mapping and direction data © 2007 NAVTEQ. All rights reserved. The Data for areas of Canada includes information taken with permission from Canadian authorities, including: ©Her Majesty the Queen in Right of Canada, © Queen's Printer for Ontario. NAVTEQ and NAVTEQ ON BOARD are trademarks of NAVTEQ. © 2007 Tele Atlas North America, Inc. All rights reserved. Tele Atlas and Tele Atlas North America are trademarks of Tele Atlas, Inc.

SAN MARCO NEIGHBORHOOD

0 mi 1 2 3


SITE LOCATIONLocation: The subject four unit apartment building fronts on the St. Johns River in Historic San Marco. Thelocation is three blocks from San Marco Boulevard and within one mile of San Marco Square retail center. SanMarco is located across the St. Johns River south of downtown on the south and east banks of the St. Johns River.Baptist Hospital and Nemours Children’s Hospital are a major influence on the San Marco Area along with theinfluence of the St. Johns River. There is a concrete seawall along the river front.

Access: The subject fronts on River Road along the parking area behind the building.

Size: The subject site fronts 60 feet on the St. Johns River and has a depth of 149 feet. Site is 8,940 square feet. The site accommodates the building and provides adequate parking. Storm water retention is into the city stormsewers along the streets.

Topography: The elevation and grade of the subject site is generally level and just above street grade.

Soil Contamination Concerns: The site is primarily level. There appear to be no contamination concerns. NOTE: No attempt has been made by the appraisers to determine

if any soil contamination is present on the subject site.

Easements: Based on a review of the provided plat it does not appear that the site is subject to any adverseeasements. Typical easements are utility easements. In my opinion these do not adversely affect the market valueof the subject property.

Utilities: Water and sewer service is provided by JEA Utilities. Electric service is provided by JEA and telephoneservice by Comcast and AT&T. Police protection is provided by the City of Jacksonville Police Department. Fireprotection and emergency medical services are provided by Jacksonville Fire and Rescue.

Functional Utility of the Site: This residential site has adequate access to River Road. The small size of the sitelimits the possible uses. It is my opinion that the subject site is functionally adequate for a limited number of usesone being the existing apartment building. The site does provide adequate parking for the four apartments. Thehighest and best use is converted to a small condominium building.


IMPROVEMENTS ANALYSISThe subject building was built in 1938. The gross building area is 4,859 square feet under roof including thestairways to the two second floor apartments. The average apartment size is approximately 1,200 square feet makingsome allowance for the stairways. The two story building has four residential apartment units. Each unit is the fulllength of the building front to back which gives all four apartments front age on the St. Johns River. The first floorunits have washer/dryer closets under the stairways to the second floor. There is no washer/dryer plumbing for thesecond floor units. There is a detached laundry building in the parking lot that is used by the tenants.

Each apartment has an enclosed sun room at the front, living room/dining area, kitchen, two bedrooms and onebathroom.

Following is a brief description of existing building:

Foundation/Floor Concrete footing and foundation to support above ground wood floor, woodframe joist for second floor.

Exterior Walls Full brick exterior, aluminum frame full panel picture windows in the frontwalls and single hung window units in all exterior walls of all four apartments. All apartments have two exterior access doors.

Roof System Gable roof structure, wood trusses and deck with composition shingle roofing.

Interior Finishes: Interior finishes hardwood and tile floors. Painted drywall and plaster interiorwalls and ceilings, painted wood trim, crown molding and two panel interiordoors. Kitchens have wood upper and base cabinets and marble counter tops.Bath rooms have tub /ceramic tile shower, vanity or pedestal lavatory, tilefloors and tile wall trim.

Age: The building was built in 1938 and has been renovated over the years and isbeing well maintained. Some recent remodeling includes some wood floors, new upgraded kitchens and bathrooms. Effective age is estimated to be 10years with a remaining economic life of 50 years.

Dock and Boat Slips: There is a wood piling and composite material deck and dock for four boats.There are two inside slips and two outside slips moored along the dock withoutside pilings. Boat slips will accommodate boats with approximated 10 footbeam. The dock has a deck area that is some 35 feet wide and 15 feet in depth(525 SF) that will accommodate deck chairs and tables.

Site: Site improvements include concrete paved parking. Mature landscaping andsprinkler system. There is a concrete seawall with a concrete cap along thefront of the lot on the St. Johns River. There is no on site retention.


UPGRADES TO CONDOMINIUM STANDARDS

Upgrades needed to bring the subject apartments (units) to condominium standards similar to the comparable salesused in the valuation of the subject as condominium units that will compete with the condominium units presentlybeing sold or offered for sale on the St. Johns River in the San Marco area.

The following list is intended to recognize the work needed to complete the upgrades to the subject units.

KITCHENS:Two (2) of the kitchens need to be renovated to include new or refinishing the cabinets, granite counters, newplumbing fixtures and new stainless steel appliances.

BATHROOM:One bathroom needs to be upgraded, ceramic tile, tub, lavatory etc. (As Needed)

INTERIORS:Any upgrades to floors, walls and ceilings needed. Primarily painting, replacing carpeting where needed etc. tobring unit up to move-in condition. Work needed should be determined on a unit by unit basis.

Cost To Complete Needed Work:The cost to complete the needed work should be determined by estimate or bid by a qualified contractor.

Added to this cost should be indirect costs and a profit motive that sufficiently rewards the risk and supervision ofcompleting the conversion to a condominium property.

Legal cost of documents.

To conclude an AS IS Market Value of the subject property these costs should be deducted from the UponCompletion Market Value as a Condominium Property.

A preliminary cost estimate is included on Page 15 in Section 4.


ACCRUED DEPRECIATION:Accrued Depreciation

"Accrued depreciation is a loss in value from the reproduction or replacement cost ofimprovements that may emanate from physical deterioration, functional obsolescence,external obsolescence, or any combination of these sources."3

There are three basic sources of accrued depreciation: physical deterioration, functional obsolescence, and externalobsolescence. These elements will be considered by the Breakdown Method whereby an estimate of each elementof accrued depreciation is analyzed separately. There are five basic elements of accrued depreciation: curablephysical depreciation, incurable physical deterioration, curable functional obsolescence, incurable functionalobsolescence, and external obsolescence. These elements will be analyzed separately.

Curable Physical Deterioration: This element of accrued depreciation is best identified as deferred maintenance. The subject building is being adequately maintained and there is no significant deferred curable maintenance.

Incurable Physical Deterioration: This element of deterioration is composed of those items which are notcurrently feasible to correct. It relates to structural elements not included in the physically curable category. Theestimate of this component of accrued depreciation is by the modified economic life method. The subjectimprovements have an estimated Total Economic Life of 80 plus years. The average effective age of the fourapartments is estimated to be 5 years subject to the renovations needed to bring the subject property up to thestandard needed to qualify as condominium units in good condition.

Curable Functional Obsolescence: This element of accrued deterioration is a result of poor design or designbecoming obsolete as a result of improved current standards or materials. For functional obsolescence to be curable,the expense incurred in fixing a problem must at least be offset by an anticipated increase in value. The measureof this component of accrued depreciation is the cost to effect the cure. The improvements are functional in design. There is no curable functional obsolescence inherent in the subject design.

Incurable Functional Obsolescence: This element of deterioration may be the result of a deficiency or a superadequacy within an improvement. A deficiency is measured by the net income loss, which is a result of thedeficiency, in comparison to other similar properties. The net income loss is capitalized at the building capitalizationrate. Functional obsolescence which is the result of over improvement is measured by the present value of the addedcost of ownership which can be attributable to the super adequacy, (i.e. taxes), as well as by subtracting the excesscost of super adequacies. The subject improvements appear to be well designed and make use of modern andefficient materials. There appears to be no incurable functional obsolescence.

External Obsolescence: This form of obsolescence is a result of negative influences outside of the property, andis always incurable. External obsolescence may be calculated by the capitalization of rent loss attributable to thenegative factors, or by pairing sales of similar properties that are comparable in most respects, except that one ofthe properties is subject to the negative influence, while the other property is not. When appropriate, this loss maybe allocated between the land and improvements based upon the ratio of the value of the improvements to totalproperty value. It does not appear that the subject property suffers from any form of external obsolescence.

3Appraisal Institute, The Appraisal of Real Estate, Fourteenth Edition. (2013)


HIGHEST AND BEST USE ANALYSISReal estate is appraised in terms of its highest and best use which is defined as:"The reasonablyprobable and legal use of vacant land or an improved property, which is physically possible,appropriately supported, financially feasible, and that results in the highest value."4

In appraisal practice, the concept of highest and best use represents the premise upon which value is based. Thedefinition of market value includes the words "most probable price." In the context of highest and best use, theconcept of "most probable use" is utilized. The definition of highest and best use indicates there are two types ofhighest and best use. The first type is highest and best use of the site as though vacant. The second type is highestand best use of a property as improved. Each type requires a separate analysis.

Highest and Best Use as though Vacant:This analysis assumes that a parcel of land is vacant or can be made vacant through demolition of the improvements. The question this analysis answers is what type of improvement should be constructed. To represent the highestand best use (as vacant or improved), a use must meet four criteria. The criteria are that the highest and best usemust be:

1. Physically Possible2. Legally Permissible3. Financially Feasible4. Maximally Productive

These criteria must be considered sequentially.

Physically Possible:The subject apartment building is located in the San Marco District. A prestigious Historic Neighborhood locatedacross the St. Johns River from downtown Jacksonville. The subject site is adequate in size for the present use. Thesite accommodates the building and parking. No on site retention was required when this building was built. Theelevation and grade of the subject site is generally level with small changes in elevation.

Based on a review of the provided plat it does not appear that the site is subject to any adverse easements. Typicaleasements would be utility easements. In my opinion these do not adversely affect the market value of the subjectproperty.

Water and sewer service is provided by JEA Utilities. Electric service is provided by JEA and telephone service byComcast and AT&T. Police protection is provided by the Jacksonville Police Department. Fire protection andemergency medical services are provided by the City of Jacksonville.

Legally Permissible:Zoning: The subject property is zoned RMD - D; Residential Medium Density

4Appraisal Institute, The Appraisal of Real Estate, Fourteenth Edition (2013)


Financially Feasible:Financially feasible uses refer to those uses that produce a positive net operating income. A review of the improvedproperties in the subject neighborhood demonstrates that a wide range of uses are financially feasible. Propertyvalues in the subject neighborhood have remained stable over the past several years and should remain stable forat least the foreseeable future. The financially feasible uses that should be given consideration would include mostall of the physically possible, legally permissible uses for the subject site. Today the financially feasible use is toconvert to a condominium property and sell the four units to individual owner that would typically occupy the units. Rental rates do not support the market value of the individual units, which is typical of residential dwelling units.

Maximally Productive:Among the financially feasible uses, the use that provides the highest value is the highest and best use. Indetermining the maximally productive use of the subject site the physically possible and legally permissible usesshould be given consideration. An average to above average residential condominium complex is the evidentmaximally productive use of the subject site due to the value of the frontage on the St. Johns River.

Highest and Best Use Analysis As Is:The present use as a rental apartment complex is not considered to be the highest and best use of the site. Anaverage to above average residential condominium complex is the evident maximally productive use of the subjectsite due to the value of the frontage on the St. Johns River.


SALES COMPARISON APPROACH

The Market Approach, or Sales Comparison Approach, is a method of estimating market value whereby a subjectproperty is compared with comparable properties that have sold recently. The primary appraisal principle inherentin the Market Approach is the principle of supply and demand. If demand for a potential type of property is high,then prices tend to increase. Shifts in the supply of real estate tend to lag behind shifts in demand. Thus, theemphasis in analyzing real estate markets at a particular point in time tend to be on the demand side. A closelyrelated principle to supply and demand is the principle of balance. Another primary principle is the principle ofsubstitution. This principle, as it applies to the Market Approach, holds that the value of a property that isreplaceable in the market tends to be set by the cost of acquiring an equally desirable substitute property. As withall properties, external forces, both positive and negative, affect all property types. These forces are evident withinthe neighborhood of a property.

The Market Approach is applicable to all property types for which there is a sufficient number of recent, reliabletransactions to create value patterns in a market. When sufficient sales information, such as financing terms,conditions of sale, market conditions, location, physical characteristics, and income characteristics, are actuallyverified and evaluated, this approach is usually a indicator of value.

In applying the Sales Comparison Approach, an appraiser follows a systematic procedure. The appraiser mustalways compare like with like. That is, the appraiser must adjust each comparable to the subject property. The stepsof the procedure are as follows:

1. Research the market to obtain information about transactions, listings, and other offerings ofproperties similar to the subject property.

2. Verify the information by considering whether thea. data obtained are factually accurateb. transactions reflect arms's length market considerations.An appraiser verifies information by consulting a knowledgeable source, usually one of theparticipants in the transaction.

3. Determine relevant units of comparison (e.g., acre, square foot, multiplier), and develop acomparative analysis for each unit.

4. Compare the subject and comparable sales according to the elements of comparison and adjust thesale price of each comparable as appropriate or eliminate the property as a comparable.

5. Reconcile the multiple value indications that result from the comparable sales into a singleindication of value.

On the following pages are summaries of comparable sales used in the valuation of the subject. All sales have beenverified by grantor, grantee, or broker and all data confirmed accordingly.


RESIDENTIAL TOWNHOME SALES NO. 1 & 2

Name: Villa Venezia TownhomesLocation: 1720, 1722 & 1724 River Road, Jacksonville, FL.Date Unit Size Price Price/SFSales:3/2014 1722 1,774 $440,000 $2485/2013 1720 1,863 $350,000 $1884/2013 1724 1,754 $300,000 $171

Recorded O.R.: VariousGrantor: VariousGrantee: (1) Alford, (2) Morrill (3) WalcuttZoning: RMD-DVerification: Inspection, Public Records: MLSYear Built: 1995; Eff Age 5 YrsMarketing Time: 12 MonthsFinancing: Cash to SellerRemarks: This is a three unit townhouse complex located on the St. Johns River. Units 1720 and 1722 front onthe river and Unit 1724 is a back unit that extends over the garages and has a south balcony for a river view. Eachunit originally was a three bedroom, 2.5 bath townhouse unit. Unit 1722 was modified to add a mini-kitchen in thedown stairs bedroom making it a 2/2.5 townhome. Master bedrooms are on second floors of the units. All areaccessed by a common gated courtyard on the south side of the building. Recent exterior renovations includerefinishing exterior and a new roof.

Interior finishes include carpet, wood & ceramic tile floors, painted gypsum board walls, knockdown finish overgypsum board ceilings, painted wood trim, crown molding, upgraded cabinets, hard surface counter tops etc.


RESIDENTIAL TOWNHOME SALES NO. 1 & 2; (Con’t);

Each unit has a one car garage and all have balconies with river views. The two townhomes fronting on the riverhave patios and balconies. Each townhome has a one third (1/3) interest in the common elements which includeoutside parking, courtyard and grounds in front of the building.

Good quality, upgraded high ceilings town home complex. Unique courtyard, each unit has a one car garage.

The selling Realtor reported this Unit 1724 was vacant and had not been lived in or updated for several years. Buyerpurchased below market value from a seller motivated to sell. Buyer completely renovated this unit after purchase.


RESIDENTIAL CONDOMINIUMS NO. 3, 4 & 6

Name: The Alexandria CondominiumLocation: 1556 Palm Ave., 809 LaSalle St. and 826 Cedar St, Jacksonville, FL.Date Unit Size Price Price/SFSale: List Price $224,00012/2013 1556 1,650 $212,000 $128

List Price $240,0004/2013 809 1,708 $210,000 $123Listing:Active 826 1,610 $265,000 $165Recorded O.R.: VariousGrantor: VariousGrantee: VariousZoning: RMD-D (Condo)Verification: Inspection, Public Records: MLSYear Built: 1941; Eff Age 5 YrsMarketing Time: 12 MonthsFinancing: Cash to SellerRemarks: The Alexandria is a multi building condominium complex that has both flats and townhome units. Buildings are full brick construction. The two units listed above have river views. Both have been remodeled andupgraded and both are in condition. The sales is a 2/3, three story end unit and the listing in a 3/2 town home. Bothunits have balconies. Units have assigned open parking. Complex has full time management.

Interior finishes include carpet, wood & ceramic tile floors, painted gypsum board walls, knockdown finish overgypsum board ceilings, painted wood trim, upgraded cabinets, hard surface counter tops etc.

Common elements include a swimming pool and community center. There is access from two streets into openparking area next to the units. Complex has brick perimeter wall and is not gated. Common elements include aswimming pool and community center.


RESIDENTIAL CONDOMINIUMS NO. 3, 4 & 6

1556 Palm Avenue is a 3/2 that sets back in the courtyard and has limited direct views of the St. Johns River. Thisis a townhome unit that has been updated over the years and is considered to be in average condition.

809 Lasalle Street is a three story townhouse that is a 3/3 with a bathroom on each floor. This townhouse has aunique curved wood stair case between the three floors. (Not a circular stairway) This unit has been remodeled overthe years and is considered in average condition. This townhouse has a somewhat restricted view of the St JohnsRiver.

826 Cedar Street is a 2/2 townhouse that has a bathroom on each floor. This townhouse has updated over the yearsand is considered to be in average condition. This townhouse has a somewhat restricted view of the St. Johns River.


RESIDENTIAL CONDOMINIUM LISTING NO. 5

Name: San Juline CondominiumLocation: 1635 Riverside Ave, Jacksonville, FL.Date Unit Size Price Price/SFSales:April 2014 1635 1,307 $217,600 $166

Recorded O.R.: 16350/0584Grantor: McNutty, Thad & V irginiaGrantee: Gallagher, Thomas MZoning: RMD-D; CondominiumVerification: Inspection, Public Records: MLSYear Built: 1918; Eff Age 10 YrsMarketing Time: 2 MonthsFinancing: Cash to Seller

Remarks: This sale is a second floor unit. Second floor units have interior stairways. This small condominiumcomplex includes fourteen units. The building front on Riverside Avenue and has a view across Memorial Park tothe St. Johns River. Open parking is located behind the buildings with access from May Street. Each unit has acovered front porch looking out over the park to the St. Johns River.

Interior finishes include carpet, wood & ceramic tile floors, painted gypsum board and plaster walls , plasterceilings, painted wood trim, painted wood two panel fir interior doors, varnished handcrafted wood cabinets, granitecounter tops, stainless steel appliances and granite counter tops, etc.

This unit has a fireplace. The private balcony awning is operated electrically by remote control.


RESIDENTIAL CONDOMINIUM LISTING NO. 7

Name: LECO CondominiumLocation: 915 Landon Avenue, Jacksonville, FL.Date Unit Size Price Price/SFListing:Active 915-B1 1,031 $183,000 $177

Recorded O.R.: VariousGrantor: Univ. Of Florida FoundationGrantee: N/AZoning: RMD-D; CondominiumVerification: Inspection, Public Records: MLSYear Built: 1945; Eff Age 5 YrsMarketing Time: 12 MonthsFinancing: Cash to Seller

Remarks: This small condominium complex includes two, two story buildings and a total of 8 units. One buildingfronts on River Road and the other is on the corner of Landon Avenue and River Road across the street from theriver. The subject unit is the first floor west unit that has river views from the living room and one bedroom. Eachunit has a one car carport located on the alley behind the two buildings.

Interior finishes include carpet, wood & ceramic tile floors, painted gypsum board walls, knockdown finish overgypsum board ceilings, painted wood trim, crown molding, upgraded cabinets, hard surface counter tops etc.

Copyright © and (P) 1988–2007 Microsoft Corporation and/or its suppliers. All rights reserved. http://www.microsoft.com/streets/Certain mapping and direction data © 2007 NAVTEQ. All rights reserved. The Data for areas of Canada includes information taken with permission from Canadian authorities, including: ©Her Majesty the Queen in Right of Canada, © Queen's Printer for Ontario. NAVTEQ and NAVTEQ ON BOARD are trademarks of NAVTEQ. © 2007 Tele Atlas North America, Inc. All rights reserved. Tele Atlas and Tele Atlas North America are trademarks of Tele Atlas, Inc.

COMPARABLE CONDOS & TOWNHOMES

0 mi 0.2 0.4 0.6 0.8 1


DISCUSSION OF COMPARABLE SALES AND LISTINGS:At this time there is no consistency in the river front condo market in the San Marco area. Value seems to be more a function of view of river from the unit, condition and size. The condominium units in mid-rise buildings reflecta different market. They have higher maintenance and management fees, offer less privacy and less convenienceof access. None of the sales or listings in the mid-rise buildings have been included in the valuation of the subjectproperty.

Villa Venezia Town HomesThe three sales in Villa Venezia set the upper limit of value. That is not a surprising since all have ground floorcourtyard entries, are a small complex and are the most attractive, unique, have garage parking and offer moreprivacy. The exterior had just been renovated including a new roof and the interiors are above average in detail andupgrades. The other sales and listings in the San Marco area support the conclusion that these three town homescommanded a market value above all the other complexes along the St. Johns River in the San Marco neighborhood. Significant adjustments have been made to these three sales for their overall appeal, size, exterior and interiorcondition. These three sales set the upper end of the market and based on the prices paid buyers considered themto be superior to units in mid rise buildings and/or in larger complexes.

The AlexandriaThere has been several sales and there are several listing in The Alexandria. The two sales are considered to be inaverage condition in this market. The listing has been completely renovated and very good condition. Most of theunits in The Alexandria have restricted views due to either or both location and landscaping around the grounds. The sales and listing are larger than the subject.

San Juline CondoThis is a small older condo complex on the west side of the St. Johns River that has views of the St. Johns Riverfrom across Memorial Park. This sale has a clear view of the river. This is a upgraded historic unit that isadequately maintained although it still contains some of the older style doors, windows and trim. It is consideredto be in average condition.

LECO CondominiumThis is an 8 unit condo complex located in two, two story 4 unit apartment buildings. The active listing is pricesat $183,000 and is in very good condition. It is small and only has a river view out of the west windows in the livingroom and bedroom on the west side of the unit. Based on the other sales and listings it appears to be overpriced at$183,000 for 1,031 square feet and a covered carport. However the listing broker stated the List Price was basedon an appraisal. Adjustments have been made for size and interior condition.


VALUE CONCLUSION:Sales Price Per Square Foot of Building AreaTo estimate the Fee Simple Value of the subject using physical units of comparison, the sales will be analyzed andcompared specifically to the subject. The methodology of valuation will be the price per square foot of living area Each comparable will be compared specifically to the subject making adjustments for differences in dates of sale,size, age, location, quality and condition where appropriate.

Conditions of Sale Adjustment:The comparable sales occurred in the time period April 2013 to March 2014. The two listing have been on themarket for 100 days or less as of August 5, 2014 and each has been adjusted a -10% to reflect a likely acceptablecontract prices. Sales No. 1 and No. 2 are located next door to the subject and are considered superior in design andstyle and each has been adjusted for these superior features.

Size:The comparable sales and listings range in size from 1,031 to 1,863 square feet of living area. The subjectapartments are approximately 1,200 square feet each. Adjustments have been made to recognize the differences insize, bathrooms etc.

Year Built/ Age:The age adjustment is often based upon the estimated remaining economic life of the subject and comparable sales. The comparable sales effective ages are all estimated to be 5 years with a remaining economic life of 70 plus years. The condition of the units in the subject building are assumed to be completely renovated and in Good Condition. Sales No. 1, 2 and Listings No. 6 & 7 are considered to be similar to the condition of the subject when renovationshave been completed that are still needed in the subject units. Sales No. 3, 4 & 5 are each adjusted a +$10 per squarefoot for condition assumed to be inferior to the subject when all renovations have been completed.

Location:Comparable Sale No. 1 has a direct river view like the subject units. Comparable Sales No. l 2, 3, 4 and ListingsNo. 6 & 7 have indirect or inferior river views and each has been adjusted for these inferior views. Based on acomparison of the Sales in The Alexandria to Sale No. 1 it was concluded there is a significant premium for thequality of the river views. The most important motivation to living on the river is the view.

Quality/Design:Villa Venezia: The exterior had just been renovated including a new roof and the interiors are above average indetail and upgrades. The other sales and listings in the San Marco area support the conclusion that these three townhomes commanded a market value above all the other complexes along the St. Johns River in the San Marconeighborhood. Significant adjustments have been made to these sales for their overall appeal, size, exterior and/orinterior condition. Unadjusted these sales set the upper end of the market and based on the prices paid by buyershave considered them to be superior to the other sales in condominiums along the St. Johns River in the San Marcoarea.. to units in uildings and/or in larger complexes.

The Alexandria: Adjustments have been made for size and interior condition. The older units in The Alexandria,although well maintained are considered to be of less value due to being townhomes, having inferior views, morelikely maintenance due to age etc and they command lower prices. The prices in The Alexandria are considerablylower than the prices paid per square foot of living area for Sales No. 1, 2, 5 and Listing No. 7.


LECO Condominium: Adjustments have been made for size, interior condition, river view and parking.

Boat Slips: The subject includes a boat slip/dock for each unit. Based on a 30 foot boat slip at $6.00 per lineal foot per month or $2,160 per year at a multiplier of 12 a value of $25,000 has been considered as market value for theindividual boat slip. The Alexandria has a day dock that is a common element of the condo. The Alexandria unitshave been adjusted a +$20,000 giving a value of $5,000 to the day dock. Sales No. 1, 2, 4 and Listing No. 7 haveeach been adjusted a +$25,000.


Reconciliation of Market Analysis:To estimate the value via the Market Approach, the appraisers analyzed the comparable sales and compared eachsale on a one-on-one basis to the subject property. The physical unit of comparison utilized was the sales price persquare foot of building area.

Five sales and two listing have been compared to the subject in the valuation of the subject as individualcondominium units. Adjustments have been made for differences in quality, exterior condition, interior conditionetc. Greatest weight has been given to Sales No. 2 & 5 and Listing No. 7 which required the least adjustments incomparison to the subject. The adjusted prices per square foot were $191, $199 and $211 per square foot.

Based on this analysis it is my opinion the “Upon Completion” Market Value, of the subject as condominium units,some 120 days forward of the valuation date of July 29, 2014 will be;:

Apt. Size Value/SF Value1,200 SF @ $ 191.00/SF = $ 229,000 Rd1,200 SF @ $ 211.00/SF = $ 253,000 Rd

OPINION of “UPON COMPLETION” MARKET VALUE/APT $ 240,000.00

TOTAL INDICATED AS IS MARKET VALUE4 APTS @ $240,000 EACH = $ 960,000.00

NINE HUNDRED SIXTY THOUSAND DOLLARS*** $ 960,000.00 ***


“AS IS” MARKET VALUEas of

JULY 29, 2014


ESTIMATED “AS IS” MARKET VALUEIt was concluded the highest and best use of the subject unit is for conversion to a condominium thatcontains four units. Two on the ground floor and two on the second floor. The conversion and sale ofthe subject building appears to be not the highest and best use. There is some resistance to townhome units for older persons and families with small children. In my opinion this is evident in TheAlexandria where the sales prices per square foot are less than in flats.

An attempt to value the subject units AS IS based on market sales was considered impossible due tonot being able to identify a specific point of comparison. Subsequently a value as a upgradedcondominium unit deducting the cost to make the needed upgrades and deducting this cost from theUpon Completion Market Value to arrive at an AS IS Market Value was the method of valuation. Thiscan be supported by obtaining estimated or bids from qualified contractors.

Below are general cost estimated for completion of needed renovations. If some cost is omitted orover stated it will effect the AS IS Market Value according to the difference it the cost to complete therenovations.

2 Kitchens to include cabinets, granite counter tops and appliances $40,0001 Bathroom $10,0004 Units interior painting, decorating, electric to boat slips, etc $20,000

Hard Costs $70,000Overhead (10%) $ 7,000Total $77,000Profit (40%) $30,800

$107,800Legal Expense (?) 5,000Marketing Costs (5%) $48,000TOTAL COSTS (RD) $160,800

MARKET VALUE AS CONDO UNITS $960,000LESS COST TO REMODEL AND SELL $160,800

“AS IS” MARKET VALUE $799,200Rounded $800,000

real estate appraisal no. 14960002 1710 river road july 28 ... · rroark aappraisal sservices,...

Documents