restricted use appraisal report
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APPRAISAL REPORT REAL ESTATE LOCATED AT: REAL ESTATE LOCATED AT NORTHEAST CORNER OF EAST MAGNOLIA AVENUE AND NORTH BAY STREET EUSTIS, LAKE COUNTY, FLORIDA
PREPARED FOR MS. TRACY M. JEANS, DIR. OF PURCHASING CITY OF EUSTIS ECONOMIC DEVELOPMENT 10 N. GROVE STREET EUSTIS, FL. 32726 FILE NO. 150801B
APPRAISALS INC. OF
CENTRAL FLORIDA
690 West Montrose Street
Clermont, FL 34711
JOHN L. ROCKER III, MAI, SRA
State-Certified General Real
Estate Appraiser RZ1678
AICF
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APPRAISALS OF CENTRAL FLORIDA
John L. Rocker, III, MAI, SRA State-Certified General Real Estate Appraiser RZ1678
COMMERCIAL REAL ESTATE APPRAISERS - CONSULTANTS 690 Montrose Street • Clermont • Florida 34711
(352) 394-3490 •FAX (352) 394-8588 E-Mail Address: [email protected]
August 25, 2015 Ms. Tracy M. Jeans, Dir. Of Purchasing City of Eustis Economic Development 10 N. Grove Street Eustis, FL. 32726 RE: Appraisal of Real Estate located at the northeast corner of East Magnolia Avenue and
North Bay Street, Eustis, Lake County, Florida. At your request and authorization, I have prepared an Appraisal of the above referenced real property and presented my analysis in the following appraisal report. The purpose of this appraisal was to estimate the market value of the fee simple interest. The appraisal premise was “As Is”. The function of this appraisal was to serve as the basis for establishing value for asset evaluation decisions by the City of Eustis. The subject consists of 4,403 square feet of land area (subject to formal survey confirmation) in Eustis, Lake County, Florida. The subject is more fully described, legally and physically within the enclosed report.
Data, information, and calculations leading to the value conclusion are incorporated in the report following this letter. The report, in its entirety, including all assumptions and limiting conditions, is an integral part of and inseparable from this letter. Based on the analysis, market value of the subject was concluded as follows:
MARKET VALUE CONCLUSION
Appraisal Premise Interest Appraised Date of Value Value Conclusion
“As Is” Fee Simple August 20, 2015 $35,000
SS Source: Appraisals Inc. of Central Florida
This report was prepared in conformance with, Uniform Standards of Professional Appraisal Practice (USPAP) as set forth by the Appraisal Foundation; and in accordance with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.
It has been a pleasure to assist you in this assignment and if you have any questions concerning this analysis, please contact us.
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CERTIFICATION OF THE APPRAISAL
I certify to the best of our knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, opinions, and conclusions.
3. I have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect to the parties involved with this assignment.
4. My engagement in this assignment was not contingent upon developing or reporting predetermined results.
5. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
6. This appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan.
7. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice of The Appraisal Foundation, the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.
8. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
9. John L. Rocker, III, MAI, SRA has completed the requirements of the continuing education program of the Appraisal Institute and/or the State of Florida.
10. John L. Rocker, III, MAI, SRA has made a personal inspection of the property that is the subject of this report.
11. John L. Rocker, III, MAI, SRA has extensive experience in the appraisal/review of similar property types.
12. John L. Rocker, III, MAI, SRA is currently certified in the state where the subject is located.
13. John Rocker, MAI, SRA has not performed any prior services, including appraisal services, for the subject property in the previous 3 years.
Respectfully submitted, APPRAISALS INC. OF CENTRAL FLORIDA
John L. Rocker, III, MAI, SRA State-Certified General Real Estate Appraiser RZ1678
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SUBJECT PHOTOGRAPHS
WESTERLY STREET SCENE ALONG MAGNOLIA AVENUE
SUBJECT PROPERTY ON RIGHT
TYPICAL PROPERTY SCENE
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AERIAL OF THE SUBJECT PROPERTY
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SUMMARY OF SALIENT FACTS
Property Location: Northeast corner of East Magnolia Avenue
and North Bay Street, Eustis, FL Assessor’s Alternate Key Number: 1187591 Owner of Record: Rock & Pickle, Inc. Property Description: 4,403 square feet of land area Improvement Description: Zoning: CBD, Central Business District, City of
Eustis Zoning Authorities Highest and Best Use: As Vacant: Future Commercial Development Estimated Exposure Time: 12 – 15 months
MARKET VALUE CONCLUSION
Appraisal Premise Interest Appraised Date of Value Value Conclusion
“As Is” Fee Simple August 20, 2015 $35,000
SS Source: Appraisals Inc. of Central Florida
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TABLE OF CONTENTS
CONCLUSION OF VALUE.......................................................................................................... 2
CERTIFICATION OF THE APPRAISAL ......................................................................................... 3
SUBJECT PHOTOGRAPHS .......................................................................................................... 4
SUMMARY OF SALIENT FACTS ............................................................................................... 6
TABLE OF CONTENTS .................................................................................................................. 7
INTRODUCTION………………………………………………………………………………………….8
AREA ANALYSIS……………………………………………………………………………………….10
NEIGHBORHOOD ANALYSIS ……………………………………………………………………….35
PROPERTY DESCRIPTION…………………………………………………………………………..38
HIGHEST AND BEST USE .......................................................................................................... 40
APPRAISAL METHODOLOGY ................................................................................................. 41
DIRECT SALES COMPARISON APPROACH .......................................................................... 42
ASSUMPTIONS AND LIMITING CONDITIONS ........................................................................ 46
Addendum
A Lake County Property Appraiser’s Property Record Card B Qualifications C Appraisal Definitions D Purchase Order
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INTRODUCTION
PROPERTY IDENTIFICATION
The subject property consists of 4,403 square feet of land area located at the northeast corner of East Magnolia Avenue and South Bay Street, Eustis, Lake County, Florida.
OWNERSHIP AND PROPERTY HISTORY
According to Lake County Public Records, title to the property is currently vested in the name of Rock & Pickle, Inc. According to Lake County Public Records, there was no other sales history for the subject property for the previous three years.
DATE OF INSPECTION/VALUE
The subject property was inspected on August 20, 2015. The date of value was August 20,
2015.
DATE OF REPORT
The date of report was August 25, 2015.
PURPOSE OF THE APPRAISAL
The purpose of this appraisal was to estimate the opinion of market value.
PREMISE OF THE APPRAISAL
The premise of this appraisal valuation is “As Is”.
INTENDED USE/USER OF REPORT
This appraisal is to aid Ms. Tracy M. Jeanes the Director of Purchasing for the City of Eustis Economic Development Department in asset evaluation of the subject property for acquisition purposes.
PROPERTY RIGHTS APPRAISED
The interest appraised represents the fee simple estate.
APPRAISAL DEVELOPMENT AND REPORTING PROCESS/ SCOPE OF WORK
The following steps were completed for this assignment:
1. identified the subject property; inspected the subject property; understood the intended use of the report;
2. applied appropriate appraisal methodology;
3. analyzed the comparable data to arrive at a probable range of value via each approach to value used in this report;
4. reconciled the results of each approach into a reasonable and defensible final estimate of value for the subject, as defined herein; and
5. estimated a reasonable exposure time associated with the value estimate. To develop the opinion of value, I performed an Appraisal as defined by the Uniform Standards of Professional Appraisal Practice (USPAP). In this Appraisal, I used the Direct Sales Comparison Approach to value. Furthermore, the value conclusion reflects all known information about the subject, market conditions, and available data. This appraisal of the subject has been presented with reporting requirements set forth under Standards Rule 2-2(b) of USPAP. This report incorporates a description of all information significant
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to the solution of the appraisal problem. It also includes descriptions of the subject property and the market for the subject property type.
EXPOSURE TIME
Exposure time is not intended to be a prediction of a date of sale or a one-line statement. Instead, it is an integral part of the appraisal analysis and is based on one or more of the following:
statistical information about days on the market
information gathered through sales verification
interviews of market participants. The reasonable exposure period is a function of price, time, and use. It is not an isolated estimate of time alone. Exposure time is different for various types of real estate and under various market conditions. Exposure time is the estimated length of time the property would have been offered prior to a hypothetical market value sale on the effective date of appraisal. It is a retrospective estimate based on an analysis of recent past events, assuming a competitive and open market. It assumes not only adequate, sufficient, and reasonable time but also adequate, sufficient, and reasonable marketing effort. Exposure time is therefore interrelated with appraisal conclusion of value.
In consideration of these factors, I have analyzed the following:
exposure periods of comparable sales revealed during the course of this appraisal;
knowledgeable real estate professionals.
Based on the foregoing analysis, an exposure time of 12-15 months is reasonable, defensible, and appropriate. I assume the subject would have been competitively priced and aggressively promoted regionally.
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AREA ANALYSIS FOR ORLANDO METROPOLITAN STATISTICAL AREA (MSA)
LOCATION
The Orlando Metropolitan Statistical Area
(MSA) is located in the geographical center of
Florida and covers Orange, Seminole, Lake
and Osceola Counties. Orlando, Winter Park
and south Seminole County comprise the
primary population base, which covers
approximately 300 square miles and is the
growing hub of activity in Central Florida. The
Orlando MSA is located 148 miles southwest
of Jacksonville, 57 miles west of Cocoa
Beach, 220 miles north of Miami and 80 miles
east of Tampa.
HISTORICAL ECONOMIC OVERVIEW
Economic growth in Orlando is affected by
several significant events in the previous
decades:
Walt Disney World’s Magic Kingdom
opened in 1971 and the Orlando area subsequently entered a dynamic growth period.
The Greater Orlando Aviation Authority was founded in 1975 to build and then manage
the new Orlando International Airport on the former McCoy Air Force Base. Airside 3,
which filled out the North Terminal, was completed in 2000, with the last additional gates
added in 2006.
Florida Technical University was expanded in 1978 to all academic fields and renamed
the University of Central Florida (UCF). With more than 53,000 students, including more
than 1,250 students of international origin, UCF is the country’s third largest university in
the nation. Maybe even more important is the school’s growing reputation as a top
metropolitan research university, and its focus on meeting the needs of the local
business community.
Walt Disney World expanded in 1982 with EPCOT; MGM Studios Tour in 1989; Animal
Kingdom in 1998. Each of these major new attractions was accompanied with
significant new hotel rooms on Disney property and in southwest Orlando.
In 1983, the first phase of the Orange County Convention/Civic Center (325,000 sq. ft.)
was completed, broadening the appeal of the area as a convention destination.
Universal Studios Orlando opened in 1990 and Islands of Adventure at Universal
Studios opened in 1999.
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The development of the Orange County Courthouse in 1997 began another boom in
downtown high-rise development.
The Orange County Convention Center was expanded in 2003 to have a total of 2.05
million square feet of exhibition space and 479,200 square feet of meeting rooms; now
one of the three largest convention facilities in the country.
The newly constructed Amway Center opened in 2010 home of the Orlando Magic and
other popular venues.
POPULATION
The Orlando MSA is the third largest MSA in Florida behind Miami and Tampa. The population
base is centered in and around the city of Orlando with 55% of the MSA population in Orange
County. The City of Orlando is the sixth largest city in Florida and Florida’s largest inland city.
The following projections are based upon the 2000 census with projections based on an urban
growth simulation model. Historical population statistics and projected trends for the Orlando
MSA are summarized as follows:
POPULATION STATISTICS
1990 2000
Annual %
Change 2008
Annual %
Change 2013
Annual %
Change
Orange County 677,491 896,344 2.8% 1,091,830 2.5% 1,215,878 2.4%
Seminole County 287,529 365,196 2.4% 421,812 1.8% 457,562 1.7%
Osceola County 107,728 172,493 4.8% 266,182 5.6% 326,064 5.0%
Lake County 152,104 210,528 3.3% 298,742 4.5% 355,045 4.1%
Orlando MSA 1,224,852 1,644,561 3.0% 2,078,566 3.0% 2,354,549 2.8%
Source: Claritas
The area population base is centered in and around the city of Orlando with 55% of the MSA
population in Orange County.
POPULATION AND HOUSEHOLD PROJECTIONS
O rlando State of United
Population MSA Florida States
2013 Projected Population 2,354,549 20,253,440 319,161,431
2008 Estimated Population 2,078,566 18,599,579 304,141,549
2000 Census Population 1,644,561 15,982,378 281,421,906
1990 Census Population 1,224,852 12,937,926 248,709,873
Growth 2008-2013 13.28% 8.89% 4.94%
Growth 2000-2008 26.39% 16.38% 8.07%
Households
2013 Projected Households 894,481 8,070,862 120,741,378
2008 Estimated Households 790,271 7,398,258 114,694,201
2000 Census Households 625,248 6,337,929 105,480,101
1990 Census Households 465,275 5,134,869 91,947,410
Growth 2008-2013 13.19% 9.09% 5.27%
Growth 2000-2008 26.39% 16.73% 8.74%
Source: Claritas
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Population and household growth has historically outpaced both the State of Florida and the
United States. The upward trend in the MSA's population growth, spurred by a substantial
amount of economic development activity both underway and planned, is anticipated to
moderate in the near to mid-term. The following is a summary of household income levels:
HOUSEHOLD INCOME LEVELS
O rlando State of United
Income MSA Florida States
2013 Prj. Median Household Income $55,325 $52,229 $55,374
2008 Est. Median Household Income $50,019 $46,943 $50,142
2000 Cen. Median Household Income $42,111 $38,911 $42,339
1990 Cen. Median Household Income $30,121 $27,680 $29,970
Growth 2008-2013 10.6% 11.3% 10.4%
Growth 2000-2008 18.8% 20.6% 18.4%
Growth 1990-2000 39.8% 40.6% 41.3%
Source: Claritas
The Orlando MSA Household Income Levels are generally higher than the State of Florida,
reflecting a large working class and lower retiree population.
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EMPLOYMENT
The following is a summary of the largest employers in the region:
Company City County Employment Walt Disney Co. Lake Buena Vista Orange 58,000
Publix Super Markets MSA MSA 17,521
Adventist Health System Orlando Orange 16,700
Orlando Health Orlando Orange 14,000
Universal Orlando Orlando Orange 13,000
Lockheed Martin Orlando Orange 13,000
Sea World Parks Orlando Orange 7,000
Marriott International Inc. Orlando Orange 6,312
Starwood Hotels & Resorts Orlando Orange 5,369
Walgreen Co. MSA MSA 5,004
Darden Restaurants Inc Orlando Orange 4,800
Central Florida Investments Orlando Orange 3,861
Siemens Orlando Orange 3,500
AT&T Corp Lake Mary Seminole 3,210
FedEx Corp Orlando Orange 3,000
Space Gateway Support Orlando Orange 2,886
Lowes Cos. Inc MSA MSA 2,872
Wyndham Worldwide Corp. Orlando Orange 2,790
Mears Transportation Group Orlando Orange 2,776
Wachovia Corp Orlando Orange 2,765
Rosen Hotels & Resorts Orlando Orange 2,667
SunTrust Banks Inc Orlando Orange 2,644
CVS Corp. Orlando MSA 2,500
Orange Lake Resort & Country Club Kissimmee Osceola 2,500
Central Florida Health Alliance Leesburg Lake 2,480 Source: OBJ Book of Lists 2011, Orlando Sentinel Top Employers
The following is a summary of local employment by industry and comparisons:
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The Orlando Area Economy is heavily concentrated in the service industry, given the strong
tourism influence. However, the economy has evolved over the past decades to include a
growing presence in education, medical, defense and high-tech industries.
UNEMPLOYMENT STATISTICS
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TOURISM
Central Florida’s tourism industry hopes to build on the record crowds of the past several years.
Orlando, the first U.S. travel market to draw more than 55± million visitors annually, expects 60
million to drop in this year, according to Visit Orlando, its tourism-marketing agency. The
number of international travelers – who tend to stay longer and spend more than domestic
visitors – is forecast to increase. Canada and South America are among the promising
international feeder markets, said Gary Sain, Visit Orlando’s president and chief executive
officer. While leisure travel rebounded quickly from the recession, corporate travel has been
slower to return to business as usual. Sain said he expects more companies and industries
booking conventions, trade shows and meetings. Central Florida’s hospitality industry is
headed for a growth spurt this year, with thousands of new rooms set to hit the market. Several
hotel projects are slated to open this year, resulting in the addition of significantly more rooms,
according to Visit Orlando.
MAJOR NEW DEVELOPMENTS
Orlando has seen a substantial amount of development activity in recent years, leaving many
portions of the area significantly oversupplied. As a result, much of the private sector proposed
construction activity has either been cancelled or placed on indefinite hold.
Although, many private development projects have been cancelled, several large
public/governmental projects such as the New Orlando Magic Arena and Orlando Veterans
Administration Center.
The Orlando Veterans Administration Center will be a 134-bed hospital, 120-unit nursing home,
60–bed assisted living facility, outpatient clinic and benefit center. The entire project is
estimated to be over one-million square feet. This will be one of the largest veteran centers in
the county employing over 2,000. It will be located in the Lake Nona Science and Technology
Park.
TRANSPORTATION
Roadway Transportation The metropolitan area is continually expanding its network of highways and thoroughfares.
Interstate 4 traverses the metropolitan Orlando area in a generally northeasterly/southwesterly
direction and services as a main link in the tri-county area. Additionally, Interstate 4 connects
Orlando with other population centers in central Florida including Tampa to the southwest and
Daytona Beach to the northeast. Interstate 4 is a six- and eight-lane highway, however several
construction projects are currently underway to widen Interstate 4 as well as create a more
efficient interchange system, which should help to ease traffic congestion along the Interstate 4
corridor.
The Central Florida Expressway System (SR 408, SR 417, SR 528, SR 429 and Florida
Turnpike) is a limited access toll road system that is constantly being expanded and will
eventually circumnavigate the metro area. The expressway has quickly improved access to
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outlying areas, making them more suitable for development and contributing to urban sprawl.
Construction was completed in December 2006 on the southwestern portion extending the
Western Expressway south from the Florida Turnpike to Interstate 4 near Walt Disney World.
The completion date for the final, northwestern or “Wekiva Parkway” portion connecting Apoka
to Interstate 4 is yet to be determined.
Air Transportation The Orlando market is serviced by two International Airports: Orlando International (MCO) and
Sanford International. Orlando International is the primary airport serving the region. The
Sanford Airport largely caters to second tier regional carriers and some International flights from
the UK.
The Orlando International Airport has four terminals with more than 5.0 million square feet of
terminal space. The following chart shows passenger activity trends at Orlando International
Airport:
SUMMARY STATISTICS – ORLANDO INTERNATIONAL (MCO)
Annual Daily
Passengers 36,401,000 99,728 Operations (Arrivals & Departures) 296,000 810 Commercial Operations 279,000 765 (Air Carrier,Commuter,Cargo) Other Operations 16,000 45 (Military,General Aviation, etc.) Airlines 41 Passenger 37 Cargo Only 4
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SUMMARY STATISTICS – ORLANDO SANFORD INTERNATIONAL
Passenger Counts
UTILITIES
Availability of utilities, particularly regarding treating and disposing of wastewater, has been a
key issue for new development in the Orlando MSA. Overall, it appears that sufficient capacity
is currently available in most of the metro area. Local governments are increasing the share of
the cost burden with system users, particularly new users in the form of “impact fees”.
The Local Government Comprehensive Planning and Land Development Regulation Act
requires each local government to have in place "concurrent" with the impact of any
development the necessary public facilities and services to serve the development. This
provision is known as the "concurrency requirement" and is one of the most innovative growth
management techniques in the United States. The intent was to encourage infill development,
but the result was more urban sprawl.
If concurrency restricts a project, the developer may choose to provide the facilities and services
necessary to support the project and maintain the required level of service. This could mean
substantial expense for impact fees and off-site improvements not directly related to the project.
In some cases this will render a project economically unfeasible.
2014
Domestic International
Enplanements 932,643 Enplanements 147,609
Deplanements 952,550 Deplanements 149,819
Transit* 2,080
Total Domestic 1,885,193 Total International 299,508
Total Passengers 2,184,701
2013
Domestic International
Enplanements 799,496 Enplanements 206,722
Deplanements 814,385 Deplanements 211,137
Transit* 940
Total Domestic 1,613,881 Total International 418,799
Total Passengers 2,032,680
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METRO ORLANDO HOME DATA
Orlando home prices have almost doubled from the bottom of the market four years ago but
remain far from the peak prices of 2007, a new report shows.
The median price for a house in the core Orlando market, which includes mostly Orange and
Seminole counties, was $181,900 in May — that was up 10 percent from a year earlier and 4
percent from a month earlier, according to a report released Monday by Orlando Regional
Realtors Association.
Orlando's sales prices of early summer are a stark contrast from July 2011, when the midpoint
price for a home was $94,900.
Two relatively new communities helped drive up prices. With 31 sales, Baldwin Park had an
average sales price of $506,813. Lake Nona, with 25 sales, averaged $487,315. Winter Park
had 50 sales, with an average sales price of $503,159; Windermere had 77 sales that averaged
$465,252.
As sales prices pushed up last month, sales volume dropped from 3,107 sales in April to 2,951
sales in May. And inventory of home listings increased from a 3.77-month supply in April to a
four-month supply in May.
"The number of homes now on the market is up 8 percent over this time last year," said Sharon
Voss, Orlando Realtor president and an agent with Watson Realty Corp. "In addition, there are
considerably more non-distressed homes available. These easier-to-close homes now make up
80 percent of our total inventory."
Even with prices almost doubling over four years, Orlando sales prices remain far below the
median of $264,436 set at the top of the market in July 2007.
Not only were prices higher, so were interest rates. They ran 3.9 percent for a 30-year, fixed-
rate mortgage in May, which was up from 3.7 percent in April.
Buyers also lost some negotiating power: Sales prices in May were 96.84 percent of asking
price, down from 95 percent a month earlier.
Multi-family occupancy and rental rates have increased as well as new construction of
subdivision homes.
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AREA TRENDS
To further analyze the Orlando MSA, it can be divided into four quadrants: northwest,
southwest, southeast, and northeast.
The northwest quadrant is comprised of Orange County, Lake County, and western Seminole
County. The Western Expressway (Toll Road 429) has significantly improved access to this
quadrant resulting in increased residential growth as well as commercial growth along US
Highway 441, State Road 50 and other main thoroughfares. Significant suburban growth is also
occurring in Clermont in southern Lake County; northern Lake County remains popular as a
retirement destination.
The southwest quadrant is comprised of Orange and Osceola counties and is home to the
majority of the tourism related activities in the Orlando MSA. The Disney World and Universal
Studios theme parks are located within this quadrant as wells as a significant number of other
tourist attractions and major resorts. Also located within this quadrant is International Drive, the
Orange County Convention Center and other major employers.
The southeast quadrant is comprised of Orange and Osceola counties. The Orlando
International Airport is located within this quadrant and is the primary economic driver, creating
demand for the numerous hotels and restaurants nearby. The southeast quadrant also has the
largest inventory of industrial space in the MSA. As well, this sector includes sprawling major
new planned residential developments including Waterford Lakes, Vista Lakes and Lake Nona.
The Lake Nona area will benefit from the proposed Burnham Institute, the UF Medical Research
Facility, the UCF Medical School and new VA hospital.
The northeast quadrant encompasses northeast Orange County and Seminole County and
includes the cities of Maitland, Altamonte Springs, and Lake Mary. These cities are more
established with limited development land. Large scale retail development is occurring in
northern Seminole County surrounding the Seminole Towne Center Mall in Sanford. On the
east side, the University of Central Florida and Research Park continue to drive growth as
enrollment approaches 50,000± students.
CONCLUSION
Job growth in the Orlando MSA has improved over the past year and troubles in the housing
market have dramatically improved. The slowing of employment growth during the recession
has negatively impacted demand for all property types, except education, healthcare and
defense, however most sectors have appeared to have bottomed out and have greatly
improved. It is expected that strong demographic trends, a steady supply of educated workers,
and moderate costs of living bode well for Orlando in the longer term.
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NEIGHBORHOOD ANALYSIS
LOCATION MAP OF SUBJECT PROPERTY
A neighborhood is a separately identifiable, cohesive area within a community with some interest shared by its occupants. Most neighborhoods have recognizable natural or manmade boundaries and while physical boundaries are often stipulated than other boundaries of influence. A neighborhood may be further defined as a grouping of complementary uses affected in a similar manner by social, economic, governmental, and environmental factors, or by perceptible changes in land use and the architectural style and condition of improvements thereto. In addition, every neighborhood is subject to influence by the greater abutting or surrounding community or metropolitan area. The City of Eustis is located within central Lake County, Florida and is considered a northwest suburb of the Orlando MSA. The city has benefited from its location within the tri-city area of Eustis, Tavares and Mount Dora known as the “Golden Triangle” area. This area is centered midway between both coasts of Florida and is within short driving distances to area attractions. The neighborhood is bounded by the City of Umatilla to the north, County Road 439 to the east, the City of Mount Dora to the south and Lake Eustis to the west.
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Development History The subject neighborhood had grown rapidly in the early to mid 2000’s with strong absorption in the residential market but has since slowed due to the decline in national and local economic conditions. Commercial development had also experienced somewhat of a strong growth in the past several years along the U.S. Highway 441 and State Road 19 corridor with recent development of office and retail facilities. The neighborhood is suburban in nature. A more graphic illustration of the neighborhood land uses is as follows: Commercial 15% Industrial 5% Agricultural 10% Residential 65% Special Purpose 5% Total 100% Eustis has seen a significant economic decline in its downtown commercial and retail market since the relocation of Florida Hospital Waterman, which anchored the downtown district, to the U.S. Highway 441 corridor. Due to the downward economic trend, the City of Eustis has since structured and approved a master plan to significantly renovate and redevelop its downtown district with hopes to bring new life to the area. The plan is intended to beautify and functionalize the existing improvements while expanding and intensifying future commercial as well as residential development. A map of the proposed area of focus for this master plan is illustrated below.
Economic Base The neighborhood is primarily characterized as a service sector of the Orlando MSA. The area has good access and most employment centers are a 10 to 50 minute drive. The residential districts consist of both older and newer somewhat stabilized areas, targeting middle income households and retirees. Major Commercial Districts are located downtown and along U.S. Highway 441. The downtown district consists of multiple restaurants, retail shops, office/residential and multi-purpose uses while the U.S. Highway 441 sector includes most commercial uses and some anchored by big box retail stores and Florida Hospital Waterman, one of the area’s major employers. The city has a wide range of businesses and industries that include Florida Food Products, Mercer Products, Inc., Service Trucking, U.S. Nutraceuticals, AgriStarts, and Accent Marketing, to name a few. The population mix is pretty even among white collar, blue collar and retirees.
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Access/Transportation Regional access for the subject neighborhood is provided by three major arterial roadways, including U.S. Highway 441, State Road 19 and State Road 44. US Highway 441 is a major east-west right of way, that provides access to most area cities, including Orlando, which is located south of the neighborhood. State Road 19 a.k.a. Bay Street, is a north-south right of way that terminates south at Old Highway 441 and extends northerly into the Ocala National Forest. State Road 44 is an east-west right of way that provides access from the downtown district as far east as the east coast of Florida. There is limited public transportation, which is not considered a detriment. Local transportation consists primarily of LakeXpress, a busing system that provides public transportation along the U.S. Highway 441 corridor, including the municipalities of Eustis, Fruitland Park, Lady Lake, Leesburg, Mount Dora and Tavares. The closest major airport hub is in Orlando (Orlando International Airport), an hour drive to the southeast, or the Sanford International Airport is a 30± minute drive to the east, which is a significantly smaller facility with a lower number of daily flights. Rail access is also located in Orlando or in the City of Sanford, a 30 minute drive to the east. Deepwater ports are located in Port Canaveral, Jacksonville and the Tampa area. Overall, neighborhood access and transportation for the subject neighborhood is considered good. Neighborhood Conclusion In summary, the subject neighborhood is mixed in character, supporting a variety of uses. The primary use and characteristics of the neighborhood classify it as a commercial/residential sector with adequate road network. Overall, it is our opinion that the subject neighborhood will continue to remain a desirable area, consideration given to the population base, and will continue to experience moderate development over the next decade, with potential for experiencing more favorable market conditions than presently exist and that have existed in the previous boom era .
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PROPERTY DESCRIPTION
Site Description. The subject consists of 4,403± square feet of land area and is rectangular in shape with a generally level topography, (subject to formal survey confirmation). Soil conditions are assumed to be favorable for development, typical of the area. There were no restrictions, adverse easements or encroachments noted upon review of the Lake County Property Appraiser’s Official data. The site is accessed via the north side of two lane paved East Magnolia Avenue and the east side of 2 lane, one-way, south bound, paved North Bay Street a/k/a State Road 19. All municipal utilities are available to the site. The subject property is currently zoned Central Business District by the City of Eustis Zoning Authorities. A common and usually central area of the community where citizens carry on commercial trade and purchasing. The central business district is distinguished from satellite business centers, shopping districts, and highway commercial districts. This land use designation has a mix of commercial, public/institutional and residential uses that is desired in the downtown areas. The subject property currently has some municipal park improvements on it.
According to the Federal Emergency Management Agency (FEMA) map number 12069C0356E, dated December 18, 2012, the subject property appears to be located within Zone X, an area of minimal flooding. Actual flood plain amounts cannot be determined without formal survey confirmation.
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There was no personal property, trade fixtures, furniture, fixtures or equipment included in this appraisal. According to Lake County Public Records, the subject property is legally described as follows: EUSTIS S 8 FT OF W 107.4 FT OF LOT 11, W 107.4 FT OF LOT 12 BLK 34 PB 1 PG 79 ORB 1603 PG 764
TAX AND ASSESSMENT DATA
The subject’s assessed values are summarized below.
TAXES AND ASSESSMENT DATA
Tax ID Number Assessed Value Assessed Taxes
11-19-26-010003401101 $28,363 $ 685.25
Source: Lake County Property Appraiser’s Office
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HIGHEST AND BEST USE
In appraisal practice, the concept of highest and best use represents the premise upon which value is based. The four criteria the highest and best use must meet are:
* legal permissibility; * physical possibility; * financial feasibility; and * maximum profitability.
AS VACANT
Legal Permissibility
The legally permissible uses were summarized in Zoning section of the Site Description of this report. Essentially, the subject site is located within the City of Eustis Central Business District, which would allow a wide number of uses such as a commercial development.
Physical Possibility
The site is generally level and has some municipal related improvements situated on it. Based on the adjacent uses the subject could be physically improved with numerous types of improvements.
Financial Feasibility
The subject is adjacent to numerous commercial type businesses that have been in existence for many years. This indicated that many uses including commercial development could be financially feasible.
Maximum Profitability
The allowable uses in the neighborhood more intensive uses consists of commercial development. Thus it would appear that commercial development would appear to provide the highest yield to the land and the maximum profitability.
CONCLUSION: HIGHEST AND BEST USE AS VACANT
Consequently, after considering the physically possible, legally permissible, financially feasible and maximum productivity of the subject property, the highest and best use of the site as vacant is for future commercial development when demand dictates such.
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APPRAISAL METHODOLOGY
In appraisal practice, an approach to value is included or omitted based on its applicability to the property type being valued and the quality and quantity of information available.
COST APPROACH
The Cost Approach is based upon the proposition the informed purchaser would pay no more for the subject than the cost to produce a substitute property with equivalent utility. This approach is particularly applicable when the property being appraised involves relatively new improvements which represent the highest and best use of the land or when relatively unique or specialized improvements are located on the site and for which there exist few sales or leases of comparable properties.
SALES COMPARISON APPROACH
The Sales Comparison Approach utilizes sales of comparable properties, adjusted for differences, to indicate a value for the subject. Valuation is typically accomplished using physical units of comparison such as price per square foot, price per unit, price per floor, etc., or economic units of comparison such as gross rent multiplier. Adjustments are applied to the physical units of comparison derived from the comparable sale. The unit of comparison chosen for the subject is then used to yield a total value. Economic units of comparison are not adjusted, but rather analyzed as to relevant differences, with the final estimate derived based on the general comparisons.
INCOME CAPITALIZATION APPROACH
The Income Capitalization Approach reflects the subject’s income-producing capabilities. This approach is based on the assumption that value is created by the expectation of benefits to be derived in the future. Specifically estimated is the amount an investor would be willing to pay to receive an income stream plus reversion value from a property over a period of time. The two common valuation techniques associated with the Income Capitalization Approach are direct capitalization and the discounted cash flow (DCF) analysis.
METHODOLOGY APPLICABLE TO THE SUBJECT
In valuing the subject, the Direct Sales Comparison Approach was used and considered most meaningful. The Cost Approach was not used since it is not applicable when appraising vacant land. The Income Approach was not used since the subject property is not an income producing property.
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DIRECT SALES COMPARISON APPROACH
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SUMMARY OF VALUATION & ANALYSIS
I have applied a Sales Comparison Approach to estimate market value of the subject property. Sales prices of like/kind properties are compared on a unit basis such as per acre or per square foot of land area. The most widely used indicator for like-kind sales is price per square foot of land area. A grid is used to summarize the direction and magnitude of adjustments judged appropriate to the comparable sales. In some cases adjustments may be derived directly from quantifiable data (e.g., the estimated off-site costs). However, in many instances the adjustments involve the judgment of the appraiser. After a diligent effort has been made to identify and adjust for all salient differences, one of several patterns is likely to emerge:
1. There may be a clear clustering of adjusted values within a narrow range; 2. there may be no discernible pattern; or 3. there may be a general clustering, but with one or several adjusted sales outside the
general range indicated by the other data. In the first instance, an estimate of value within the resulting adjusted range is typically concluded. In the second instance, it is generally possible only to conclude a reasonable value range. In the third instance, the "outliers" typically receive little weight in the analysis unless they are the most comparable sales, represent a fundamental change in market dynamics, or are otherwise particularly relevant to the subject analysis.
The sales selected were most comparable to the subject. A summary of the comparables
utilized is included below as well as a location map.
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LAND SALES ANALYSIS
Land Sale 1 was located in the northeast quadrant of Orange Avenue and N. Grove Street, Eustis, Lake County, Florida and was purchased in December 2014 for $25,000 or $5.67 per square foot of land area. The sale consists of 4,408 square feet of land area which is nearly rectangular in shape, has average access, is zoned CBD by the City of Eustis and has all municipal utilities available. In comparison with the subject property, the sale would be adjusted upward for it being a bank owned distressed sale, improved market conditions since the sale occurred (time), location (not located on a main thoroughfare like the subject) and access i.e. not be on a corner like the subject. Overall adjustments were upward reflecting a higher unit value for the subject property.
DESCRIPTION SUBJECT SALE 1 ADJ SALE 2 ADJ SALE 3 ADJ
Prop. Rights Conveyed:
---- Fee Simple Fee Simple Fee Simple
Conditions of Sale:
---- Bank Owned (Distressed)
+10% Arm’s Length Arm’s Length
Financing: ---- Cash or
Equivalent Cash or Equivalent Cash or Equivalent
Sale Date: ---- 12/2014 +5% 11/2013 +10% 04/2015
Location:
NEQ of E Magnolia
Ave. & Bay St., Eustis
NEQ of E. Orange Ave. & N Grove St., Eustis
+10% SEQ of N. Dewey St. & E. Clifford
Ave., Eustis +15%
SEQ of W 13th
Ave. & Donnelly St., Mount Dora
Sale Price/SF: --- $25,000/
$5.67
$83,000/ $5.13
$113,500/
$5.79
Land Area (SF): 4,403 4,408 16,186 +15% 19,600 +15%
Topography: Generally
Level Generally Level Generally Level Generally Level
Shape: Rectangular N. Rectangular Rectangular Rectangular
Access: Good Average +10% Good Good
Zoning: CBD CBD CBD/RT +10% RP +15%
Utilities Available:
All All All All
Recorded: 4570/1903 4401/2138 4619/1017
Net Adjustments
+35% +50% +30%
Adjusted Unit Sale Price
$7.65 $7.69 $7.53
LAND SALE ANALYSIS
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Land Sale 2 was located in the southeast quadrant of N. Dewey Street and E. Clifford Avenue, Eustis, Lake County, Florida and was purchased in November 2013 for $83,000 or $5.13 per square foot of land area. The sale consists of 16,186 square feet of land area which is rectangular in shape, has good access, is zoned CBD and RT (Residential Office Transitional district) by the City of Eustis and has all municipal utilities available. In comparison with the subject property, the sale would be adjusted upward for improved market conditions since the sale occurred (time), location (not being on a main thoroughfare like the subject), size since larger land parcels typically sell for lower unit sale prices and zoning. Overall adjustments were upward reflecting a higher unit value for the subject property. Land Sale 3 was located in the southeast quadrant of W. 13th Street and Donnelly Avenue, Mount Dora, Lake County, Florida and was purchased in April 2015 for $113,500 or $5.79 per square foot of land area. The sale consists of 19,600 square feet of land area which is rectangular in shape, has good access, is zoned RP by the City of Mount Dora and has all municipal utilities available. In comparison with the subject property, the sale would be adjusted upward for size since larger land parcels typically sell for lower unit sale prices and zoning. Overall adjustments were upward reflecting a higher unit value for the subject property. CONCLUSION The price per square of land area was considered the best unit of comparison to appraise the subject property. There have been very limited vacant land sales data for the downtown Eustis Central Business District and the sales available were believed to be the best available to appraise the subject property. Consequently, after considering the economic and physical differences of each sale and applying appropriate adjustments, we have concluded the opinion of market value for the subject property to be about $7.50 per square foot x 4,403 square feet or $33,022 (R) $35,000.
THIRTY FIVE THOUSAND DOLLARS ($35,000)
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Assumptions and Limiting Conditions
1. Unless otherwise specifically noted in the body of the report, it is assumed that title to the property or properties appraised is clear and marketable and that there are no recorded or unrecorded matters or exceptions to total that would adversely affect marketability or value. Appraisals Inc. of Central Florida is not aware of any title defects nor has it been advised of any unless such is specifically noted in the report. Appraisals Inc. of Central Florida, however, has not examined title and makes no representations relative to the condition thereof. Documents dealing with liens, encumbrances, easements, deed restrictions, clouds and other conditions that may affect the quality of title have not been reviewed. Insurance against financial loss resulting in claims that may arise out of defects in the subject property’s title should be sought from a qualified title company that issues or insures title to real property. Appraisals Inc. of Central Florida assumes no private deed restrictions, limiting the use of the subject property in any way.
2. No survey of the boundaries of the property was undertaken. All areas and dimensions furnished are presumed to be correct. It is further assumed that no encroachments to the realty exist.
3. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined and considered in the appraisal report.
4. Also, unless otherwise noted in the body of this report, it is assumed that no changes in the present zoning ordinances or regulations governing use, density, or shape are being considered. The property is appraised assuming that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, nor national government 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 is based, unless otherwise stated.
5. Appraisals Inc. of Central Florida is not aware of any contemplated public initiatives, governmental development controls, or rent controls that would significantly affect the value of the subject.
6. Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the property was not observed by the appraisers. Appraisals Inc. of Central Florida has no knowledge of the existence of such materials on or in the property. Appraisals Inc. of Central Florida, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated groundwater or other potentially hazardous materials may affect the value of the property. The 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. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired.
I have inspected, as thoroughly as possible by observation, the land; however, it was impossible to personally inspect conditions beneath the soil. Therefore, no representation is made as to these matters unless specifically considered in the appraisal.
7. Unless otherwise noted in the body of the report, it is assumed that there are no mineral deposit or subsurface rights of value involved in this appraisal, whether they be gas, liquid, or solid. Nor are the rights associated with extraction or exploration of such elements considered unless otherwise stated in this appraisal report. Unless otherwise stated it is also assumed that there are no air or development rights of value that may be transferred.
8. Unless otherwise specifically noted in the body of this report, it is assumed: that the existing improvements on the property or properties being appraised are structurally sound, seismically safe and code conforming; that all building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required; that the roof and exterior are in good condition and free from intrusion by the elements; that the property or properties have been engineered in such a manner that the improvements, as currently constituted, conform to all applicable local, state, and federal building codes and ordinances. Appraisals Inc. of Central Florida professionals are not engineers and are not competent to judge matters of an engineering nature. Appraisals Inc. of Central Florida has not retained independent structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no representations relative to the condition of improvements. Unless otherwise specifically noted in the body of the report: no problems were brought to the attention of Appraisals Inc. of Central Florida by ownership or management; Appraisals Inc. of Central Florida inspected less than 100% of the entire interior and exterior portions of the improvements; and Appraisals Inc. of Central Florida was not furnished any engineering studies by the owners or by the party requesting this appraisal. If questions in these areas are critical to the decision process of the reader, the advice of competent engineering consultants should be obtained and relied upon. It is specifically assumed that any knowledgeable and prudent purchaser would, as a precondition to closing a sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity of building systems. Structural problems and/or building system
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problems may not be visually detectable. If engineering consultants retained should report negative factors of a material nature, or if such are later discovered, relative to the condition of improvements, such information could have a substantial negative impact on the conclusions reported in this appraisal. Accordingly, if negative findings are reported by engineering consultants, Appraisals Inc. of Central Florida reserves the right to amend the appraisal conclusions reported herein.
9. It is assumed that all factual data furnished by the client, property owner, owner’s representative, or persons designated by the client or owner to supply said data are accurate and correct unless otherwise specifically noted in the appraisal report. Unless otherwise specifically noted in the appraisal report, Appraisals Inc. of Central Florida has no reason to believe that any of the data furnished contain any material error. Information and data referred to in this paragraph include, without being limited to, numerical street addresses, lot and block numbers, Assessor’s Parcel Numbers, land dimensions, square footage area of the land, dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count, room count, rent schedules, income data, historical operating expenses, budgets, and related data. Any material error in any of the above data could have a substantial impact on the conclusions reported. Thus, Appraisals Inc. of Central Florida reserves the right to amend conclusions reported if made aware of any such error. Accordingly, the client-addressee should carefully review all assumptions, data, relevant calculations, and conclusions within 30 days after the date of delivery of this report and should immediately notify Appraisals Inc. of Central Florida of any questions or errors.
10. The date of value to which any of the conclusions and opinions expressed in this report apply, is set forth in the Letter of Transmittal. Further, that the dollar amount of any value opinion herein rendered is based upon the purchasing power of the American Dollar on that date. This appraisal is based on market conditions existing as of the date of this appraisal. Under the terms of the engagement, I will have no obligation to revise this report to reflect events or conditions which occur subsequent to the date of the appraisal. However, Appraisals Inc. of Central Florida will be available to discuss the necessity for revision resulting from changes in economic or market factors affecting the subject.
11. The estimate of Market Value, which may be defined within the body of this report, is subject to change with market fluctuations over time. Market value is highly related to exposure, time promotion effort, terms, motivation, and conclusions surrounding the offering. The value estimate(s) consider the productivity and relative attractiveness of the property, both physically and economically, on the open market.
12. Unless specifically set forth in the body of the report, nothing contained herein shall be construed to represent any direct or indirect recommendation of Appraisals Inc. of Central Florida to buy, sell, or hold the properties at the value stated. Such decisions involve substantial investment strategy questions and must be specifically addressed in consultation form.
13. Any value estimate provided in the report applies to the entire property, and any pro ration or division of the title into fractional interests will invalidate the value estimate, unless such pro ration or division of interests has been set forth in the report.
14. The distribution of the total valuation in this report between land and improvements applies only under the existing program of utilization. Component values for land and/or buildings are not intended to be used in conjunction with any other property or appraisal and are invalid if so used.
15. The maps, plats, sketches, graphs, photographs and exhibits included in this report are for illustration purposes only and are to be utilized only to assist in visualizing matters discussed within this report. Except as specifically stated, data relative to size or area of the subject and comparable properties has been obtained from sources deemed accurate and reliable. None of the exhibits are to be removed, reproduced, or used apart from this report.
16. No opinion is intended to be expressed on matters which may require legal expertise or specialized investigation or knowledge beyond that customarily employed by real estate appraisers. Values and opinions expressed presume that environmental and other governmental restrictions/conditions by applicable agencies have been met, including but not limited to seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses, building codes, permits, licenses, etc. No survey, engineering study or architectural analysis has been made known to Appraisals Inc. of Central Florida unless otherwise stated within the body of this report. If the Consultant has not been supplied with a termite inspection, survey or occupancy permit, no responsibility or representation is assumed or made for any costs associated with obtaining same or for any deficiencies discovered before or after they are obtained. No representation or warranty is made concerning obtaining these items. Appraisals Inc. of Central Florida assumes no responsibility for any costs or consequences arising due to the need, or the lack of need, for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance.
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17. Appraisals Inc. of Central Florida assumes that the subject property analyzed herein will be under prudent and competent management and ownership; neither inefficient or super-efficient.
18. All furnishings, equipment and business operations, except as specifically stated and typically considered as part of real property, have been disregarded with only real property being considered in the report unless otherwise stated. Any existing or proposed improvements, on or off-site, as well as any alterations or repairs considered, are assumed to be completed in a workmanlike manner according to standard practices based upon the information submitted to Appraisals Inc. of Central Florida This report may be subject to amendment upon re-inspection of the subject property subsequent to repairs, modifications, alterations and completed new construction. Any estimate of Market Value is as of the date indicated; based upon the information, conditions and projected levels of operation.
19. Acceptance and/or use of this report constitutes full acceptance of the Contingent and Limiting Conditions and special assumptions set forth in this report. It is the responsibility of the Client, or client’s designees, to read in full, comprehend and thus become aware of the aforementioned contingencies and limiting conditions. Neither the Appraiser nor Appraisals Inc. of Central Florida assumes responsibility for any situation arising out of the Client’s failure to become familiar with and understand the same. The Client is advised to retain experts in areas that fall outside the scope of the real estate appraisal/consulting profession if so desired.
20. The Americans with Disabilities Act (ADA) became effective January 26, 1992. Notwithstanding any discussion of possible readily achievable barrier removal construction items in this report, Appraisals Inc. of Central Florida has not made a specific compliance survey and analysis of this property to determine whether it is in conformance with the various detailed requirements of the ADA. It is possible that a compliance survey of the property together with a detailed analysis of the requirements of the ADA could reveal that the property is not in compliance with one or more of the requirements of the ADA. If so, this fact could have a negative effect on the value estimated herein. Since Appraisals Inc. of Central Florida has no specific information relating to this issue, nor is Appraisals Inc. of Central Florida qualified to make such an assessment, the effect of any possible non-compliance with the requirements of the ADA was not considered in estimating the value of the subject property.
21. Client shall not indemnify Appraiser or hold Appraiser harmless unless and only to the extent that the Client misrepresents, distorts, or provides incomplete or inaccurate appraisal results to others, which acts of the Client proximately result in damage to Appraiser. The Client shall indemnify and hold Appraiser harmless from any claims, expenses, judgments or other items or costs arising as a result of the Client’s failure or the failure of any of the Client’s agents to provide a complete copy of the appraisal report to any third party. In the event of any litigation between the parties, the prevailing party to such litigation shall be entitled to recover from the other reasonable attorney fees and costs.
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ADDENDUM
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COMPARABLE SALES PLATS
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LAND SALE 1
52
LAND SALE 2
53
LAND SALE 3
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ADDENDUM A
LAKE COUNTY PROPERTY APPRAISER’S PROPERTY RECORD CARD
55
56
57
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ADDENDUM B
QUALIFICATIONS FOR JOHN L. ROCKER III, MAI, SRA
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ADDENDUM C
APPRAISAL DEFINITIONS
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APPRAISAL DEFINITIONS Definition of Market Value 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 is 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 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.
(Source: Federal Register, vol.55, no. 163, August 22, 1990, pages 34228 and 34229; also quoted in the Glossary of the Uniform Standards of Professional Appraisal Practice, 2000 edition.) Definition of Fee Simple Interest According to the 13th Edition of the Appraisal of Real Estate the definition of fee simple estate is: 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. Definition of Highest and Best Use According to the 13th Edition of the Appraisal of Real Estate the definition of highest and best use is defined as: the reasonably probable and legal use of vacant land or an improved property that is physically possible, legally permissible, appropriately supported, financially feasible, and that results in the highest value.
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ADDENDUM D
PURCHASE ORDER
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