12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
THE APPRAISAL OF 12-45 RIVER ROAD BOROUGH OF FAIR LAWN BERGEN COUNTY, NEW JERSEY 07410
Presented by
ERICKSON APPRAISAL COMPANY
Prepared for
MS. JANETH ARIAS FREEDOM BANK 99 WEST ESSEX STREET – 2ND FLOOR MAYWOOD, NEW JERSEY 07607
AS OF AUGUST 18, 2015 “AS IS VALUE”
&
AS OF NOVEMBER 18, 2015 “STABILIZED VALUE”
Prepared by
WILLIAM J. DOKA, SRA, SCGREA #00104 ERICKSON APPRAISAL COMPANY 17-10 RIVER ROAD, SUITE 4D FAIR LAWN, NEW JERSEY 07410 201-956-6094
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
DEFINITIONS...... 5
ASSUMPTIONS AND LIMITING CONDITIONS...... 6-8
CERTIFICATION ...... 9-11
SUMMARY OF PERTINENT FACTS...... 12
MARKETING AND EXPOSURE TIME...... 13
PURPOSE, RIGHTS, FUNCTION OF THE REPORT...... 14
DEFINITION OF VALUE BEING APPRAISED INTENDED USER ...... 14
SCOPE OF THE REPORT...... 15
COUNTY/CITY/NEIGHBORHOOD DESCRIPTION...... 16-19
ZONING/UTILITIES/HISTORY...... 20-22
SITE DESCRIPTION ...... 23
GENERAL IMPROVEMENTS...... 24-26
PHOTOGRAPHS OF SUBJECT PROPERTY ...... 27-37
TAXES AND ASSESSMENTS...... 38
HIGHEST AND BEST USE...... 39-41
MARKET STUDY ...... 42-46
APPRAISAL PROCESS ...... 47-48
SALES COMPARISION APPROACH...... 49-56
INCOME CAPITALIZATION APPROACH...... 57-72
RECONCILIATION AND FINAL OPINION OF VALUE...... 73-74
ADDENDA………………………………………………………………………….75-110
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
August 31, 2015
Ms. Janeth Arias Freedom Bank 99 West Essex Street - 2nd Floor Maywood, NJ 07607
Re: Appraisal Report #23310FB Borrower: Jeffrey M. Wallace Subject Property Appraised: 12-45 River Road Fair Lawn, NJ 07410
Dear Ms. Arias,
Pursuant to your request, I have completed a personal inspection of the above referenced property and the surrounding area, and have compiled an analysis of the said subject property for the development of an opinion of value, “as is” as of August 18, 2015 and “as stabilized” as of November 18, 2015. The definition of market value is contained within the pages of this report. The undersigned appraiser certifies that a personal inspection of the property has taken place, described herein, and located at 12-45 River Road, Borough of Fair Lawn, Bergen County, New Jersey 07410, legally known as Block 5611, Lot’s 61, 62, 63. The undersigned has no past, present, or future direct or indirect interest in the said property or the use of this property or the use of this appraisal.
The undersigned's employment in this appraisal is not in any manner contingent upon anything else other than the delivery of this report. To the best of the undersigned's knowledge and belief, all of the statements and opinions contained in this report are correct, and this appraisal has been made in conformity with The Professional Standards of the Appraisal Institute, USPAP, and Freedom Bank, each of which can rely on this appraisal.
Please note that this assignment is considered to be an "Appraisal Report" as requested by Freedom Bank who is the client for this report. This Appraisal Report is intended to comply with the reporting requirements set forth under Standards Rule 2-2 (a) of the Uniform Standards of Professional Appraisal Practice for an Appraisal Report. As such, it presents discussions of the data, reasoning, and analysis that were used in the appraisal process to develop the appraiser's opinion of value.
Furthermore, in accordance with prior agreement between Freedom Bank and the appraiser, this report contains a description of sufficient information to disclose the scope of work used to develop the appraisal to the client and any intended users of the appraisal. The reader of the Appraisal Report should expect to find all significant data in detail.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
Therefore, subject to any assumptions and/or limiting conditions outlined in this report, I am of the opinion that the market value of the subject property, as defined in this report, in "Leased Fee Interest" appraised “as is” as of August 18, 2015 and “as stabilized” as of November 18, 2015 was: “VALUE STABILIZED”
(SEVEN HUNDRED SEVENTY FIVE THOUSAND DOLLARS)
$775,000.00
“VALUE AS IS”
(SEVEN HUNDRED SIXTY THOUSAND DOLLARS)
$760,000.00
The following enclosed pages contain the results of our investigations.
Respectfully submitted,
William J. Doka SCGREA, SRA Chief Appraiser/Certified License NJ Appraiser No. 42RG00010400 Certified License NY Appraiser No. 46000012872
PHOTOGRAPH OF SUBJECT PROPERTY
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
DEFINITION OF MARKET VALUE
The definition of “Market Value” as per the Financial Institutions Reform Recovery and Enforcement Act, (FIRREA) of 1989 is as follows:
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, knowledgeable and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
- Buyer and seller are typically motivated:
- Both parties are well informed or well advised and each are acting in what he considers his own best interest:
- A reasonable time is allowed for exposure in the open market:
- Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and
- The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.
DEFINITION OF LEASED FEE ESTATE
An ownership interest held by a landlord with the right of use and occupancy conveyed by lease to others; usually consists of the right to receive rent and the right to repossession at the termination of the lease.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal report has been made with the following general assumptions:
1. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated.
2. The property is appraised free and clears of any or all liens or encumbrances unless otherwise stated.
3. Responsible ownership and competent property management are assumed.
4. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy.
5. All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property.
6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them.
7. 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.
8. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless nonconformity has been stated, defined, and considered in the appraisal report.
9. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value opinion contained in this report is based.
10. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
ASSUMPTIONS AND LIMITING CONDITIONS
11. Any value opinions provided in the report apply to the entire property, and any proportion or division of the total into fractional interests will invalidate the value opinion, unless such proportion or division of interest has been set forth.
12. Any proposed improvements are assumed to have been completed unless otherwise stipulated; any construction is assumed to conform to the building plans referenced in the report. (Applies only to "Subject to Completion per Plans as Specified")
13. The appraiser assumes that the reader or user of this report has been provided with copies of available building plans and all leases and amendments, if any, encumbering the property.
14. If no legal description or survey were furnished, the appraiser would therefore utilize the county tax plan to ascertain the physical dimension and acreage of the property. Should a survey prove these characteristics inaccurate, it may be necessary for this appraisal to be adjusted. (Applies only if survey is not furnished)
15. The forecasts, projections, or operating estimates contained herein are based upon current market conditions, anticipated short-term supply and demand factors, and a continued stable economy. These forecasts are, therefore, subject to changes in future conditions.
16. This appraisal report complies with the Standards of Professional Practice and the Code of Ethics provided by the Appraisal Institute.
17. The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used.
18. Possession of this report, or a copy thereof, does not carry with it the right of publication.
19. The appraiser, by reason of this appraisal, is not required to give further consultation, testimony, or be in attendance in court with reference to the property in question unless arrangements have been previously made.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
ASSUMPTIONS AND LIMITING CONDITIONS
20. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, of the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser.
21. The enclosed appraisal complies to the requirements set forth in title 12 CFR 34; of the Federal Financial Institutions reform, Recovery and Enforcement Act of 1989, commonly known as "FIRREA". The appraisal also conforms with the Uniform Standards of Professional Appraisal Practice ("USPAP") and discloses any steps taken that were necessary or appropriate to comply with the competency provision of USPAP, and that this appraisal is not based on a requested minimum valuation, a specific valuation or the approval of a loan.
22. This is an "Appraisal Report" which is a written report prepared under Standards Rule 2-2 (a) of an Appraisal performed under Standard 2. (USPAP, 2014-2015 edition, Definitions section, effective 1/1/2014).
23. The information to be included in, and the reasons for this appraisal are the property of “Freedom Bank” are Proprietary and Confidential. As such the appraiser agrees to the following:
A) Not to use or allow the use of any portion of the appraisal or any of the information or other materials used by the appraiser in conducting or formulating the appraisal for any purpose other than for disclosure of the appraisal and its contents within to “Freedom Bank” and:
B) Not to disclose, or allow disclosure to others without the prior written consent of “Freedom Bank” any portion of the appraisal, or any of the information or other materials used by the appraiser in conducting or formulating the appraisal, except to “Freedom Bank” and then only to its affiliates, and their agents, advisors, consultants, affiliates, representatives and employees and designated by authorized “Freedom Bank” personnel.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
CERTIFICATION OF VALUE
I, William J. Doka SRA, SCGREA certify that to the best of my knowledge and belief that this appraisal conforms to Standards Rule 2-2 (a) as an “Appraisal Report” and contains the certification that:
1) That I have made a personal inspection of the property that is the subject of this report and have considered all of the pertinent facts that affected the value thereof.
2) That all market data pertaining to the Final Value Opinion has been accumulated from various sources and, where possible, personally examined and verified as to details, motivation and validity.
3) I, William J. Doka SRA, SCGREA certify that to the best of my knowledge and belief that the statements of fact contained in this report are true and correct.
4) The appraiser has the appropriate knowledge and experience required to complete an appraisal competently for this property type in its locale.
5) The appraiser has no present or contemplated future interest in the property appraised; and neither the employed to make the appraisal, nor the compensation for it, is contingent upon the appraised value of the property.
6) The appraiser has no present or prospective interest in the property that is the subject of this report, and the appraiser has no personal interest or bias with respect to the parties involved. The "Opinion of Market Value" in the appraisal report is not based in the whole or in part upon the race, color or national origin of the prospective owners or occupants of the properties in the vicinity of the property appraised.
7) The appraiser has personally inspected the subject property and has made an exterior inspection of all comparable sales and rentals listed in the report. To the best of the appraiser's knowledge and belief, all statements of fact and information contained in this report are true and correct, and the appraiser has not knowingly withheld any significant information.
8) The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
CERTIFICATION OF VALUE
9) All contingent and limiting conditions are contained herein (imposed by the terms of the assignment or by the undersigned) affecting the analysis, opinions and conclusions contained in the report. The reported analysis, opinions and conclusions are limited only by the appraiser's personal unbiased professional analysis, opinions and conclusions.
10) The appraisers analysis, opinions and conclusions were developed, and this appraisal report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice, Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA)
11) The reported analysis, opinions and conclusions were developed, and this report has been prepared in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.
12) All conclusions and opinions concerning the real estate that are set forth in the appraisal report were prepared by the appraisers whose signatures appear on the appraisal report, unless indicated as "Review Appraiser". No change of any item in the appraisal report shall be made by anyone other than the appraiser, and the appraiser shall have no responsibility for such unauthorized change.
13) As of date of this report, William J. Doka SRA, SCGREA has completed the requirements of the continuing education program of the Appraisal Institute.
14) William J. Doka SRA, SCGREA is currently certified by the New Jersey and New York Board of Real Estate Appraisers as a State Certified General Real Estate Appraiser.
15) No other individual (s) provided significant professional assistance to the person (s) signing this report. (If there are exceptions, the name of each individual providing significant professional assistance must be stated).
16) The appraiser's compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the opinion of value, the attainment of a stipulated result or the occurrence of a subsequent event.
17) The appraiser has acted in an independent capacity and the appraisal assignment was not based on a requested minimum valuation, specific valuation, value within a given range or approval or a loan.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
CERTIFICATION OF VALUE
18) The appraiser has not performed services as an appraiser with regard to the property that is the subject of this report, within a three-year period immediately preceding the acceptance of the assignment.
19) This appraisal does not take into consideration any change in value due to any delinquent mortgage payments, real estate taxes, utilities, unpaid equipment, contractors or soil contamination.
20) The appraiser notes in this report any adverse conditions such as needed repairs, deterioration, the presence of hazardous wastes, toxic substances, etc. observed during the inspection of the subject property or that he or she became aware of during the research involved in performing this appraisal. Unless otherwise stated in this report, the appraiser has no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of the property such as, but not limited to needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc., that would make the property less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, this report must not be considered as an environmental assessment of the property.
21) Any discrepancies or contrary information regarding public records with regard to square footage, building size or lot size have been thoroughly researched by the appraiser or personally measured by the appraiser and are considered more accurate then data provided by public records.
22) This appraisal does not contain any extraordinary assumptions or hypothetical conditions.
23) Any removal from this binding is not permitted.
______8/31/2015 William J. Doka SRA, SCGREA New Jersey License No. 42RG00010400
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
SUMMARY OF PERTINENT FACTS AND CONCLUSIONS
Property Appraised: 12-45 River Road, Borough of Fair Lawn, Bergen County, New Jersey 07410
Block/Lot: Block 5611, Lot’s 61, 62, 63
Ownership: Currently, Wallace Property Group LLC
Effective Value Date August 18, 2015 Report Preparation Date August 31, 2015 Subject’s Observation Date: August 18, 2015 (AKA Inspection Date)
Interest Appraised: Leased Fee Interest – The subject property is a multi-tenant office use property, with one unit being owner occupied, and the remaining units being tenant occupied.
Site Description: The parcel is irregular, level and functional for its current use. According to a survey provided, Block 5611, Lot’s 61, 62, 63 measures 82.85 x 133.02 x 81.80 x 136.70 containing approximately 11,100 square feet.
Building Improvements: The property consists of a one-story commercial structure containing six office units, measuring 3,833 square feet. There is an unfinished basement accessible from a separate outdoor entrance utilized for storage and utilities. As of the date of inspection, the improvements were in average condition.
Year Built: Built in 1957 and maintained over its chronological life
Use: As an office use commercial structure
Highest and Best Use: Fully occupied and utilized in the same manner
Value Indications: “Value Stabilized” “Value As Is”
Sales Comparison Approach: $800,000.00 $785,000.00
Income Capitalization Approach: $775,000.00 $760,000.00
Concluded Market Value: $775,000.00 $760,000.00
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
MARKETING TIME
The definition of “Market Value” as per the Financial Institutions Reform Recovery and Enforcement Act, (FIRREA) of 1989 is defined as an opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of an appraisal. The concluded Market Value is based on an estimated marketing time for the subject of six to twelve months. This was based on the marketing time of the comparable sales and current listings of properties that are similar in design and appeal. Conversations with local brokers within Bergen County concur that the subject, given a prudent asking price, should be able to market well and be sold within the reasonable marketing time noted above. It is also our belief, that if the property is marketed prudently, and remains on the market for over the twelve-month period, a discount factor would be considered to adjust for the changing market conditions, with respect to the typical purchaser/investors expectations.
In regard to marketability and/or sale ability, it is defined as a study of a given property or class of properties focusing on the market segments in which the property is likely to generate demand. It is tested through its highest and best use, its demand in the market, supply of competitive properties, development proposals, projecting an appropriate tenant mix and identifying the end user. In the case of the subject, it falls within an adequate and acceptable range of these tests.
EXPOSURE TIME
According to the Appraisal Standards Board of the Appraisal Foundation, the estimated exposure time may be defined as the estimated length of time the property interest being appraised would have been exposed to the market prior to the hypothetical consummation of a sale at the opinion of market value on the effective date of the appraisal; a retrospective opinion based upon an analysis of past events assuming a competitive and open market. Exposure time is a function of price, time and use, not an isolated estimate of time alone. The reasonable exposure time inherent in a market value concept is always presumed to precede the effective date of the appraisal. The fact that exposure time is always presumed to occur prior to the effective date of the appraisal is substantiated by related facts in the appraisal process: the use of current cost information and supply/demand conditions as of the effective date of the appraisal; the analysis of historical sales information (sold after exposure and after completion of negotiations between the seller and buyer); and the analysis of future income expectancy estimated from the effective date of appraisal. Exposure time is different for various types of real estate and under various market conditions. Based on our valuation conclusion and considering current marketing conditions, we estimate a reasonable exposure time of approximately 12 months for the subject. Our estimate considers the analysis presented herein, the current supply of directly and indirectly competitive properties available in the market, and demand from typical buyers for this property type. The exposure time estimate does not anticipate any dramatic changes from the micro or macro-economic conditions presented within this report. 13
12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
PURPOSE OF THE APPRAISAL
This Appraisal has been made for the purpose of developing an opinion of value for the subject property known as 12-45 River Road, Fair Lawn, NJ 07410 as defined in the enclosed report, as of August 18, 2015. This report reflects the probable market value under typical selling conditions prevalent on the date of inspection.
FUNCTION OF THE APPRAISAL
The function of this Appraisal is to assist Ms. Janeth Arias of Freedom Bank located at 99 West Essex Street - 2nd Floor, Maywood, NJ 07607 in developing an opinion of market value for mortgage financing in “as is condition" as of August 18, 2015 and “value stabilized” as of November 18, 2015 as outlined within this report.
IDENTIFICATION OF THE PROPERTY
The subject property consists of a commercial office structure legally known as Block 5611, Lot’s 61, 62, 63 and the land beneath and is identified as such by the tax assessment map of the Borough of Fair Lawn, Bergen County, New Jersey 07450. Additional details are identified within this report. It is situated in Census Tract #17300.00, Block 2004.
PROPERTY RIGHTS APPRAISED
This Appraisal is made for the commercial office structure as requested by Ms. Janeth Arias of Freedom Bank. The valuation is made with the understanding that the present ownership is unencumbered by any liens and appraised in Leased Fee Interest as the property is tenant occupied and includes all of the rights that may be lawfully owned under existing mortgage agreements. No personalty of business value is included within the scope of this appraisal.
INTENDED USER AND USE OF APPRAISAL
The Intended User is defined as the client and any other party as identified, by name or type, as users of the appraisal, appraisal review, or appraisal consulting report, by the appraiser on the basis of communication with the client at the time of the assignment. The “Intended User” of this appraisal report is Freedom Bank and the “Intended Use” of this appraisal report is to develop an opinion of value "as is” and “as stabilized”, for the subject property known as known as 12-45 River Road, Fair Lawn, New Jersey 07410, in consideration of mortgage financing, as defined in the enclosed report.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
COMPETENCY COMPLIANCE
The principal senior appraiser William J. Doka SRA, SCGREA is an experienced real estate appraiser with Erickson Appraisal Company, (dba EAC Realty) for nearly 30 years qualified to perform comprehensive appraisal reports on residential, multi-family apartment, commercial, industrial, special purpose properties, agricultural and vacant land parcels. Erickson Appraisal Company includes a staff of professional designated appraisers with a combined experience of over 75 years. Each individual in the firm regularly attends academic courses in real estate appraising, financing, building construction and brokerage to continue re-certification and to further their knowledge and expertise.
SCOPE OF THE APPRAISAL
The scope of the appraisal encompasses the necessary research and analysis to prepare a report in accordance with the client's use, the Standards of Professional Practice of the Appraisal Institute, and the Uniform Standards of the Appraisal Foundation. In regard to the subject property, the following steps are utilized:
1. The property is physically inspected and property information is collected from the owner. Analysis is based on any one or more of the following: site and building drawings provided by the owner, measurements made at inspection, municipal data, and information from the deed.
2. County and city information is collected from a variety of primary and secondary sources including demographics from the Urban Decision Systems data service, and the Division of Labor Market & Demographic Research for the Department of Labor in the State of New Jersey.
3. The highest and best use is estimated after analyzing market data for property like the subject and comparing the subject to the market conditions.
4. Three approaches are attempted by analyzing market data relevant to the subject. Sales of land, improved properties and leases similar to the subject are researched from a variety of sources which may include county deed and mortgage records, SRIA records, deed transactions reported by REDI Real Estate Information Service, multiple listing service, interviews with town tax assessors, real estate agents, other appraisers, and buyers and sellers. The search for data begins in the subject community and is expanded into surrounding communities, as more information is required.
5. An indication of market value is concluded only after ample data is collected and thoroughly analyzed to compare to the subject. This Appraisal Report develops an opinion of value in "Leased Fee Interest" in “as is condition” and “value stabilized”. 15
12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
COUNTY DESCRIPTION
BERGEN COUNTY
Bergen County was established in 1683 as one of the four original counties of New Jersey. Today, the county covers 234 square miles of land in the northeastern corner of the state and has a population of 884,118. The county is bounded by Rockland County, New York to the north, Passaic County to the west, and Hudson and Essex Counties to the south. The Hudson River provides a natural border with New York to the east.
The county’s rivers define a picturesque landscape. On its eastern shore, the Palisades rise 500 feet above the Hudson River. From there the land slopes down to the broad Hackensack River Valley, then rises and descends again to the Saddle River and Ramapo River Valleys. The steep slopes of the Ramapo Mountains rise in the northwest.
The George Washington Bridge and the Lincoln Tunnel provide easy driving access to New York City. Commuting is also convenient using public transportation such as NJ Transit and Amtrak, and a network of bus routes. The New Jersey Turnpike, the Garden State Parkway, Interstates 80 and 287, and many local routes traverse the county and connect it to New York State, the northeast, and points south and west.
Bergen County is the largest employment center in New Jersey. Its skilled labor source works mainly in the production, service, and manufacturing industries. The county’s bountiful resources and lands have encouraged the production of paper, textiles, and metals. The service sector provides employment in professions such as health, aeronautics, and engineering.
The county’s parks offer excellent facilities for golf, swimming, hiking, riding and skiing, as well as areas to simply enjoy the great outdoors. The Meadowlands Sports Complex in East Rutherford is the home of the NY Giants and the NY Jets. The NJ Devils moved to Newark, NJ. It is also the setting for a variety of other athletic and cultural events. The complex includes the Prudential Arena, Giants Stadium, and the Meadowlands Racetrack.
Bergen County is known for its excellent schools, rich heritage, and a variety of offerings from Aviation Hall of Fame in Teterboro to Garden State Plaza in Paramus. Bergen County combines natural beauty with an ideal environment for suburban living.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
BOROUGH DESCRIPTION
Location
The Borough of Fair Lawn is located in the central portion of Bergen County and is bordered by Hawthorne and the Passaic River to the west, Glen Rock and Highway Route 208 to the north, Paramus Road, Paramus to the east and Broadway-Elmwood Park and Saddle Brook to the south. Major highways are located near Fair Lawn including US State Highway Route’s 4, 17, 46 and 208 along with Interstate Highway Route 80. The Garden State Parkway is just east of the borough. New Jersey Transit and rail service are also provided within close proximity. The location is good for linking to employment, schools, shopping, and recreation and is considered good. Some neighborhood shopping is available in within the downtown district of Fair Lawn. There are nearby major shopping malls located nearby in Paramus at major indoor malls such as the Paramus Park Mall and the Garden State Plaza among others.
Land Use
The land use in Fair Lawn is primarily residential with a moderate size commercial and moderate industrial base. Residential properties account for 94.32% of the latest valuation. Commercial property provides a valuation at 3.74%, vacant land 1.19%, apartments 0.12% and industrial is a mere 0.63%.
Dwellings are primarily single-family units, generally aged between newer to over 95 years with wood and masonry frame construction and show average to good maintenance practices. Larger commercial buildings are 5 to over 85 years old, from one to over three stories, and primarily masonry frame construction similarly maintained. Pockets of neighborhood commercial uses are scattered throughout the borough with the greatest portion of commercial uses located in the commercial areas of Radburn, Broadway, River Road and Lincoln Avenue. Regional shopping centers are located along the Route 4/17 corridors. The industrial uses are pocketed mostly in the Mc Bride Industrial Park off Highway Route 208.
Taxes
The current tax rate in the Borough of Fair Lawn is $3.078 per hundred. A possible modest increase in the tax rate could however, still occur as local municipal government continues to rise. With this trend in taxes, the borough’s tax rate is competitive compared to other suburban areas and can be attractive to development.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
BOROUGH DESCRIPTION
Real Estate Market
The real estate economy of the borough is affected by the regional economy as a whole, serving a host of residential uses. The real estate market decreased to a standstill due to the last recession and the economic crisis of Fannie Mae, Freddie Mac and high unemployment. Currently, real estate is beginning to slowly rebound in the county, as is the case throughout the country. Interviews with local real estate agents report that in this current market, real estate that is “reasonably priced” generally sell within a six-month period.
Summary
The location is good for linking residences, employment, schools, shopping, and recreation. The population is expected to remain similar. Land use is primarily residential with a moderate portion of commercial uses. The real estate market is beginning to show some positive economic rebounding.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
NEIGHBORHOOD DESCRIPTION
The neighborhood surrounding a commercial property often impacts a structures status, image, class, style of operation and sometimes its ability to attract and properly serve a particular market segment. The neighborhood description of the report investigates the subject property's area and evaluates any pertinent locational factors that could affect its use, vacancy, absorption and leasing abilities along with supply and demand.
The immediate area surrounding the subject is a composite of neighborhood commercial retail, office, mixed-use, and residential properties ranging from twenty to over seventy-five years of age. The micro area is zoned “B-4” River Road Business District which is part of the Special Improvement District, with the subject property considered to be legal non-conforming.
River Road (aka) County Route 507 is a primary two-directional road that runs north and south from Maple Avenue to the north and Broadway/New Jersey Route 4 to the south. The neighborhood boundaries are Paterson across the Passaic River to the West; Hawthorne across Lincoln Avenue to the West; Glen Rock across Harristown Road, Maple Avenue, the Northern border of the Nabisco plant and its extension north of Garwood Road and Naugle Drive to the North; Ridgewood across the Saddle River to the Northeast; Paramus across the Saddle River to the East; Rochelle Park across another point in the Saddle River to the Southeast; Saddle Brook across the two longer portions of South Broadway and their extensions through Rosario Court to the South; and Elmwood Park across the Bergen County Line, New Jersey Route 4 (Broadway), Cyril Avenue, and Willow Street to the South. The municipal building and local police and fire departments are less than a half-mile northeast of the subject and the New Jersey Train Station is within a short walking distance as well.
There is direct access to State Highway Route 208, which runs into State Highway Route 4, and State Highway Route 17 and the Garden State Parkways are all easily accessible, providing access to the New York City area and to other major areas of employment. The property is supported with high traffic volume having good visibility for its use. The structures in the immediate area represent no exterior deferred maintenance, which is typical within the micro neighborhood.
There is limited vacancy of commercial properties in the Borough of Fair Lawn. Vacancy rates for commercial office units in the macro area run anywhere from approximately 3% to 5% depending on usage. The neighborhood appears to be stable in nature and exhibits a good degree of traffic with access to major thoroughfares. Overall, the Borough of Fair Lawn exhibits good market appeal because of its road access and proximity to the greater New York market area. In conclusion, the prognosis for the area is speculatively good. Local properties have decreased in value, as did the rest of the nation; however, they have since stabilized with a forecast to become a viable investment vehicle producing consistent returns over an extended period of time.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
ZONING
The purpose of zoning is to establish and promote homogeneity within a specific area as defined by the zoning board of any given municipality. In essence, zoning attempts to bring compatible land uses together and to restrict land uses that are not compatible. The Appraisal Institute in their book, "Real Estate Appraisal Terminology" defines zoning as:
"The public regulation of the character and intensity of the use of real estate through employment of police power. This is accomplished by the establishment of districts or areas in each of which uniform restrictions relating to improvements, structure, heights, bulk, areas, density of population, and other limitations are imposed upon the use and development of private property."
Based upon the current Fair Lawn zoning map, the subject property is located in the “B-4” River Road Business District. Permitted uses are as follows:
1. All uses permitted in the B-1, B-2 and B-3 Business Zones, except animal hospitals and funeral parlors. Uses permitted in the B-1, B-2 and B-3 Business Zones include:
(1) All uses permitted in any residential zone except one-family, two-family and multiple-family dwellings. This includes: Residence for clergy, such as parsonage, convent or rectory; Public and nonprofit private day schools for elementary and secondary education; Home occupations, as defined in § 125-8; Parking or storage of a boat, boat trailer, house trailer, tandem mounted trailer, snowmobile or camper, as regulated in § 125-40A. (2) Advertising signs and structures relating only to the use or uses conducted on the lot on which the sign is located. (3) Animal hospital for the treatment only of domesticated animals customarily kept as household pets. (4) Bakery or confectionery and similar establishments, provided that all of the products manufactured on the premises prepared therein are sold on the premises at retail. (5) Business services as defined in § 125-8. (6) Clubs as defined in § 125-8. (7) Financial institutions. (8) Funeral homes or mortuaries, but not crematories. (9) Offices. (10) Outdoor cafes subject to the regulations in § 125-43. (11) Personal and household service shops such as barber, shoe repair, beauty parlor, dry cleaner. (12) Private schools conducted for gain. 20
12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
ZONING
(13) Retail sales and services other than conditional uses and uses prohibited in § 125-24D. (14) Studios of photographers or artists. (15) Theaters, bowling alleys, indoor tennis and similar recreational uses, including tennis, except those as prohibited in § 125-24D. (16) Printing establishments. (17) Restaurant, sit-down, as defined in § 125-8.
2. Mixed use buildings containing permitted uses and residences above the first floor. Residences shall be permitted on the second and third floor of any two-, two-and- one-half-, or three-story building at the request and option of the applicant. No residences shall be permitted on the first floor. Retail establishments located in a mixed-use building containing residences above the ground level or first floor shall be prohibited from engaging in the sale of merchandise to the general public between the hours of 12:00 midnight and 5:00 a.m.[Amended 3-11-2003 by Ord. No. 1939- 2003; 6-26-2007 by Ord. No. 2081-2007]
Bulk requirements are as follows: A. Minimal Lot Area 5,000 Square Feet B. Minimum Lot Width: 50 Feet C. Front Yard Minimum: 5 Feet D. Side Yard Minimum: 12 Feet E. Rear Yard Minimum: 20 Feet F. Maximum Building Height: 3 Stories/33 Feet E. Maximum Building Coverage: 40% E. Maximum Impervious Coverage: 90%
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
ZONING
Therefore, after a careful review of the above data, it is the opinion of the appraiser that subject property does not conform to the “B-4” bulk requirements for impervious coverage. This does not have any effect on market value or marketability as similar properties such as the subject was grandfathered or approved with a variance into this district. If for any reason that the building improvements were to be destroyed, it is more likely that it can be rebuilt with variances on the same footprint by the building and zoning departments of the Borough of Fair Lawn. As per the zoning department of the borough, there are no known changes planned to the zoning ordinance at this time. Therefore, the subject property is considered a continuation of a legal non-conforming to its permitted uses.
UTILITIES
All utilities including electricity, gas, water and sewer and telephone service are available and connected to the site. This is common within the immediate neighborhood. The major utility providers are PSE&G, Verizon Telephone and municipal sewer and water.
PROPERTY HISTORY
The Uniform Standards of Professional Appraisal Practice (USPAP) requires the appraiser to analyze any current Agreement of Sale, option or listing of the property being appraised. If such information is available to the appraiser in the normal course of business, the sales history of the property must reveal the last three years of any sales transactions. A sale history provides background on the transfer of title of the property. Tax records indicate the subject has not undergone a deed transfer in the past 3 years. The NJMLS shows no listings for sale or lease within the past 3 years. (See attached municipal tax record) The subject property is in the process of a refinance through Freedom Bank.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
SITE DESCRIPTION
Location: 12-45 River Road, Borough of Fair Lawn, Bergen County, New Jersey 07410
Ownership: Currently, Wallace Property Group LLC
Block/Lot: Block 5611, Lots 61, 62, 63
Lot Size: According to a survey provided, Block 5611, Lot’s 61, 62, 63 measures 82.85 x 133.02 x 81.80 x 136.70 containing approximately 11,100 square feet.
Frontage: 82.85 linear feet along River Road
Shape: The site is irregular in shape
Topography & Terrain: The site is level and functional for its current use. No adverse soil conditions were apparent. Based on the existence of the subject, the load bearing qualities of the soil appear adequate.
Accessibility: Access to the site is via River Road
Utilities: Municipal utilities available to the site include electric, gas, water, sewer and telephone
Site Improvements: Other than the building improvements, the site is improved with sidewalks, curbs and macadam paving. There are approximately sixteen parking spaces in the rear.
Landscaping: There is minimal landscaping
Remarks: The subject property is not located in a designated flood zone area as indicated on Flood Map 340033- 34003C0176G Effective Date 09/30/2005, Zone X is considered not a flood area. Overall the physical characteristics of the site are adequate. It was represented to the appraiser that there are no known underground tanks on the site. Any additional verification would require a field professional. A survey was provided for review.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
DISCRIPTION OF IMPROVEMENTS
Location: 12-45 River Road, Borough of Fair Lawn, Bergen County, New Jersey 07410
Use: An office use commercial structure
Area: Total gross building area is 3,833 s/f. There is an unfinished basement utilized for storage and utilities.
Building Height: One story
Age: The building was built in 1957. Physical upgrades were performed throughout its chronological life.
Foundation: Concrete block with basement
Framing: Masonry
Exterior Walls: Brick
Roof Structure: Rolled rubber roof covering
Ceiling Height: Approximately 8-9 feet
Flooring: Hardwood/ceramic tile/carpet
Windows: Single pane double glaze in metal frame, and double hung double glaze in metal frame
Doors: Metal, glass, and wood
Heating/Plumbing There are two roof mounted HVAC units providing central air conditioning. There is a shared hot water heater, one electric meter, one gas meter, and one water meter for the entire structure. Plumbing is copper, PVC and cast iron. Utilities appear to be to code and were on and operating. There is a central monitoring system on site.
Layout: The subject property consists of a six occupied office units, two of which are offer storefront exposure and could potentially be utilized as retail space. One of the six units is divisible and a seventh unit could thus be rented if vacant. There is an unfinished basement consisting of utilities and storage space. Land to building ratio is 2.90:1.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
GENERAL DESCRIPTION OF IMPROVEMENTS
The subject property is located at 12-45 River Road, Borough of Fair Lawn, Bergen County, New Jersey 07410. Its legal description as per municipal tax records is Block 5611 Lot’s 61, 62, 63. The subject property is improved with a one-story masonry frame commercial use structure containing six commercial office units totaling 3,833 square feet of gross building area. The foundation is masonry, the exterior walls are brick, and the roof is flat.
One of the units is owner occupied and utilized as a UPS store containing approximately 1,300 square feet. The remaining units are tenant occupied by State Farm Insurance, Fair Lawn Chamber of Commerce, HG Weber Tax Services, Fort Nox (an online business), and Glam Spot NJ (offering make-up and hair design services). HG Weber Tax Services was not accessible at the time of inspection. The units are finished with sheetrock walls, carpet, wood and tile floors, and fluorescent lighting in drop ceiling tiles with approximately 8-9 foot ceilings. There is a men and women’s restroom and a common entryway and hallway for the units. The two units offering storefront exposure, UPS and State Farm, each also has a separate entrance.
The basement is unfinished and contains utilities as well as storage space. A shared electric meter, gas meter, water meter and a hot water heater are located in the basement. There is central air conditioning in the structure via two HVAC units located on the roof. The structure also contains a central alarm system. All utilities were on and operating at the time of inspection. Site improvements include sidewalks, macadam streets, and a parking lot for approximately sixteen vehicles in the rear, accessible via both sides of the building. In conclusion, as per the scope of this appraisal, the subject property is appraised in "as is condition". However, given that 34% of the structure is owner occupied, a stabilized value assuming 100% tenant occupancy is also presented.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
GENERAL DESCRIPTION OF IMPROVEMENTS
Effective Age and Economic Life
Having completed an exterior inspection of the building and observing its condition relative to other buildings in the market area, a determination was made as to the subject's effective age and remaining economic life. These terms are defined as follows:
Effective Age:
The age indicated by the condition and utility of a structure.
Economic Life:
The period over which improvement to real property contribute to property value.
The quality of maintenance a structure receives can alter its effective age and economic life. The subject is in average condition and will age consistently with other comparable buildings of similar age in the neighborhood and assuming an adequate level of maintenance, the economic life of the improvements should be prolonged.
As noted, the subject improvements are in average condition. Maintenance and functional utility items are operating and up to date, and the property if marketed or sold can continue to operate as is. Building improvements are addressed in the report. Therefore, the appraiser concluded that the effective age of the building is ten years.
In considering the economic life of the structure, the Marshall and Swift construction cost guide was used which indicated that the remaining economic life of the structures such as the subject property is forty years. This was supported by a survey of similar buildings in the market area.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
PHOTOGRAPHS OF THE SUBJECT PROPERTY FRONT VIEW OF SUBJECT
SIDE VIEW OF SUBJECT
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
PHOTOGRAPHS OF THE SUBJECT PROPERTY REAR VIEW OF SUBJECT
PARKING
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
PHOTOGRAPHS OF THE SUBJECT PROPERTY INTERIOR VIEW – UPS STORE
INTERIOR VIEW – UPS STORE
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
PHOTOGRAPHS OF THE SUBJECT PROPERTY INTERIOR VIEW – STATE FARM
INTERIOR VIEW – STATE FARM
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
PHOTOGRAPHS OF THE SUBJECT PROPERTY INTERIOR VIEW – FAIR LAWN CHAMBER OF COMMERCE
INTERIOR VIEW – FAIR LAWN CHAMBER OF COMMERCE
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
PHOTOGRAPHS OF THE SUBJECT PROPERTY INTERIOR VIEW – FORT NOX
INTERIOR VIEW – FORT NOX
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
PHOTOGRAPHS OF THE SUBJECT PROPERTY INTERIOR VIEW – GLAM SPOT NJ
INTERIOR VIEW – GLAM SPOT NJ
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
PHOTOGRAPHS OF THE SUBJECT PROPERTY INTERIOR VIEW – MEN’S RESTROOM
INTERIOR VIEW – WOMEN’S RESTROOM
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
PHOTOGRAPHS OF THE SUBJECT PROPERTY INTERIOR VIEW – ENTRY/HALLWAY
INTERIOR VIEW – BASEMENT
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
PHOTOGRAPHS OF THE SUBJECT PROPERTY UTILITIES
UTILITIES
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
PHOTOGRAPHS OF THE SUBJECT PROPERTY STREET SCENE FACING NORTHERLY
STREET SCENE FACING SOUTHERLY
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
TAXES AND ASSESSMENTS
The tax obligation on the property is an influence on value and an expense that is considered in the Income Approach. The tax expense is deducted from a property's gross income in the process of determining value. Buyers may be discouraged from purchasing property in high tax areas and sellers in these areas may need to lower prices to compete with lower taxed areas. The trend of the tax rate can also influence value. A rapidly increasing rate can adversely affect value. The subject unit is identified on the tax rolls as Block 5611, Lot’s 61, 62, 63. The current tax rate in the Borough of Fair Lawn is $3.078 per hundred. The estimated tax obligation on the subject is as follows:
BLOCK 5611, LOT’S 61, 62, 63
LAND IMPROVEMENTS
$467,400. $182,600.
TOTAL VALUE: $650,000.
TAX RATE: $3.078/$100.00
TOTAL ANNUAL TAX OBLIGATION: $20,007.
The scope of this appraisal report is to develop an opinion of market value for the subject property. The current equalization ratio is 92.60%. Therefore, the municipal tax office estimates this property to be $701,944. It should be noted that tax assessments do not equal or represent market value. An assessment discrepancy is often due to municipal assessment being based on a replacement cost approach analysis, which does not reflect the true value of properties in the current market.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
HIGHEST AND BEST USE
The economic principles of supply and demand, substitution, balance and conformity are the basic tools for analyzing the relationship between economic behavior and appraisal. An understanding of market behavior is essential to the concept of highest and best use. Since market forces create market value, the interaction between the market forces and highest and best use is of crucial importance. The purpose of an appraisal is to form an opinion of market value and the highest and best use analysis identifies the most profitable competitive use to which the property can be put. Therefore, highest and best use is a market driven concept.
The definition of Highest & Best Use is defined as:
The reasonable probable 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.
Two separate studies are analyzed at this juncture;
A) An analysis of the site as if vacant. B) An analysis of the site as improved.
From the above definition this immediately applies specifically to the highest and best use of the land. It is to be recognized that in cases where a site has existing improvements on it, the highest and best use may very well be determined to be different from the existing use. The existing use will continue, however, unless and until land value in its highest and best use exceeds the total value of the property in its existing use.
Implied within these definitions is the recognition of the contribution of the specific use to community environment or to community development goals in addition to wealth maximization of individual property owners. Also implied is that the determination of the highest and best use results from the appraiser's judgment and analytical skill, i.e., that the use determined from analysis represents an opinion, not a fact to be found. In appraisal practice, the concept of highest and best use represents the premise on which value is based. In the context of most probable selling price (market value) another appropriate term to reflect highest and best use would be most probable use. In the context of investment value an alternative term would be "most profitable use".
A highest and best use conclusion is based upon a deductive process, first considering all uses and then eliminating those that do not meet the following four criteria; Legally Permissible, Physically Possible, Financially Feasible and Maximally Productive.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
HIGHEST AND BEST USE
LAND AS IF VACANT
Legally Permissible - Legal restrictions as they apply to the subject property involve the public restrictions of zoning and the private restrictions of easements and restrictive covenants. The site is zoned “B-4” River Road Business District and the site conforms to the bulk requirements. Other than utilities, no known atypical easements appears affecting any potential site development.
Physically Possible - The site is irregular in shape and contains 11,097 square feet of land. The shape and size of this parcel of land lends itself to the construction of a variety of commercial use structures. The topography and soil compositions appear to be adequate to support full development of the site based upon the existence of the subject and the surrounding properties.
Financially Feasible - The demand for vacant land within the area is difficult to measure due to the minimal sales of vacant sites, which can be developed in a financially feasible manner. Based upon the uses permitted within the zoning codes, the site could be improved with a commercial use structure such as retail, office or mixed-use establishment, which would most likely provide a positive net return to the land and would be economically feasible.
Maximally Productive - Maximum profitability is obtained from that use among those that are financially feasible, which provide the highest present worth to the property. Based upon the analysis of the legally permitted, physically possible and financially feasible uses for the property, the most profitable and highest and best use of the site, if vacant and available for development, is for a commercial retail, office or mixed use establishment permitted by the building and zoning departments of the Borough of Fair Lawn.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
HIGHEST AND BEST USE
LAND AS IMPROVED
Legally Possible - Currently, the zoning requirements permit the operation of the subject property as a legal-conforming use property as the impervious coverage requirements do not conform to the “B-4” River Road Business District as indicated in the zoning section of this report. There is no excess or surplus land as indicated (excess defined as “may be sold off separately” and surplus land defined as “does not have a separate value, cannot be sold off separately”).
Physically Possible - The structure conforms to the physical and economic character of the neighborhood and local utilities that operate are present. The site is accessible and there were no observed impediments that would necessary for the improvement to fully hinder the operation of the improvement.
Financially Feasible - The building improvement is a fully occupied commercial multi-office structure and is utilized as such. The improvements contain the amenities needed to function and if the improvements were to continue functioning as such, it is this appraisers’ opinion that a positive return of income could be achieved as occupied.
Maximally Productive - Maximum profitability is obtained from that use among those that are financially feasible, which provide the highest present worth to the property. The present improvements are in average condition and are considered to be legal non-conforming. The improvements without question contribute value to the site and based upon the property history, no better alternative legal conforming or non-conforming use that could justify a highest and best use. Therefore, after careful analysis of the legally permitted, physically possible and financially feasible uses for the property, it is the opinion of the appraiser that the subject property’s current use is at its’ highest and best use.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
MARKET STUDY
As per the Marshall & Swift Valuation manual, the subject property is considered to be a Class "C” an office use commercial structure. There are similar buildings such as the subject throughout Bergen County and neighboring towns similar in design and usage. An analysis of the micro-market indicates that properties similar to the subject were on an upswing for years, however, the recent recession and tightening credit requirements have put downward pressure on real estate in the area.
Currently, the market appears to have stabilized in some sectors; however, national and regional vacancy rates for commercial properties still appear higher than the pre-recession rates. According to most recent survey done by CoStar, the average vacancy rate for office buildings in Bergen County stands at 13.4% with effective rents approximately $24.33 per square foot. As noted previously, office vacancy rates in Fair Lawn are substantially lower, ranging from 3-5%. I have discussed this data with various residential and commercial office real estate broker and management firms. Realtors and property managers have noted that some properties were facing foreclosure or were listed as “quick sales” as this economy affected employment as well as real estate.
With all of this said however, properties are still priced higher than the average as the northeast is still considered somewhat long-standing as compared to the rest of the United States. Neighborhood office units similar to the subject in this micro-market rent anywhere from $12.00 to over $20.00 per square foot or sometimes higher for properties in demand located in superior areas in good condition and in newer chronological age. Sales range from $100.00 to over $200.00 per square foot for similar neighborhood buildings, depending on key factors like condition, location, income and physical characteristics.
Location makes a difference in rents with higher rents per square foot for properties located in office parks and along roads with high visibility and exposure. The average absorption time for similar office units in the macro area is less than nine months strictly depending on the asking price per square foot, location, unit size, condition and the amenities the building offers.
Given that the subject contains two units offering storefront exposure and potential retail space, both the CoStar Regional Report survey of office and retail vacancy rates in Northern New Jersey are provided below. Bergen County locations are considered prime locations in the Northern New Jersey market. This survey is generally representative of the subject property type. However, the subject is located in an established district of Fair Lawn with close proximity to public transportation to New York thus commanding higher rentals and lower vacancy rates.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
MARKET STUDY
COSTAR REGIONAL OFFICE STATISTICS
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
MARKET STUDY
COSTAR REGIONAL RETAIL STATISTICS
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
MARKET STUDY
Below are analytic charts from CoStar Property indicating occupancy & rental rates for office properties in the Bergen County, NJ area. Included is the average sale price per square feet and the average months on the market to lease. The charts indicate data from year 2010 to the present data.
Occupancy & Leased Percentage
Months on Market
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
MARKET STUDY
Average Sales Price per SF
Capitalization Rates
Lending institutions active in the subject's market area reported that financing currently available on properties similar to the subject would provide a loan to value ratio of 65% to 80% with a fixed interest rate for five to twenty years, from approximately prime-to-prime plus 1.5 to 2.5% and an amortization period of 20 to 25 years.
In conclusion, vacant land for new construction in the immediate area is generally only available with the demolition of existing improvements, which have exceeded their economic life or are otherwise no longer economically viable. There is limited inventory of existing space capable of satisfying some of the current demand. The economic outlook for this market area is expected to continue on a positive trend. 46
12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
APPRAISAL PROCESS
An appraisal is an opinion of value. In order to arrive at this opinion the appraisers follow an orderly procedure by which the appraisal problem is defined; the work necessary to solve the problem is planned; and the data involved is acquired, classified, analyzed, interpreted and translated into an opinion of value. This entire procedure is referred to as the appraisal process.
When valuating real estate, it is, essentially the valuation of the rights inherent to the ownership of the property. The valuation approaches are based on sound economic principles, as they relate directly to real estate. The three traditional approaches to the valuation of real estate are as follows:
THE REPLACEMENT COST APPROACH - In this approach, the improvements are replaced as if new, and any applicable depreciation is deducted to arrive at a net improvement value. To this is added the value of the land and any site improvements or allied appurtenances, in order to arrive at a value opinion.
THE SALES COMPARISON APPROACH - is primarily a comparative method whereby the appraiser extracts from the market similar properties that have sold. These properties or comparable are then adjusted to the subject and a final interpretation is then made in order to arrive at a value for the subject. Since the Sales Comparison Approach is based upon the reaction of informed buyers and sellers, it is this methodology that is used to ascertain the various components in both the Cost and Income Approach.
THE CAPITALIZATION OF INCOME APPROACH - converts the net operating income attributable to the real estate after all expenses, into a valuation opinion. This approach discounts cash flows to present value and capitalizes a future value by an appropriate rate as derived from a market study of similar capitalizes properties and/or competitive investments.
RECONCILIATION - Only under optimum conditions when all factors affecting value are in balance will the value opinion arrived at by the three approaches coincide. Under normal market conditions the values arrived at by one or even two approaches will be more significant than the value arrived at by the others.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
REPLACEMENT COST APPROACH
The Replacement Cost Approach is based on the premise that it is imprudent to pay more for a property than the contributing worth of the sum of its parts. There are four steps involved:
Land Value - The first step is to estimate the value of the land, as though free of the improvements and available for use. This is often accomplished by obtaining data on recent land transactions, analyzing it and adjusting for similarities and differences.
Replacement Cost - The next step is to estimate the total construction costs of the subjects' improvements. By definition, replacement cost is that would be incurred to construct the improvements with similar utility using currently available materials at prevailing prices. Marshall and Swift Valuation Service are utilized to construct a replacement cost new.
Depreciation - Once replacement cost, new, has been estimated, total accrued depreciation must be estimated and then deducted to arrive at a net depreciated cost. Depreciation falls into three broad categories, which consist of physical, functional and external. Physical depreciation may be sub-categorized into curable physical and incurable physical deterioration. Functional obsolescence is a loss of value resulting from defects in design. The defect may be curable or incurable. External obsolescence is the diminished utility of a structure due to negative influences from outside the site. Physical depreciation is allocated according to Marshall & Swift Valuation Service. The service applies effective age to economic life and concludes a depreciation estimate. This estimate is based on actual surveys of depreciated buildings. Functional and external obsolescence are estimated from perceived market patterns.
Other Costs - The third step is to estimate the depreciated value of the site improvements and any other costs. Site improvements include sidewalks, fencing, lighting and landscaping. The last step is to estimate entrepreneurial or developer's profit. Entrepreneurial profit is typically in the 5% to 20% range of replacement cost new. The profit varies according to the market conditions and the type of property constructed. The combination of these costs reflects our estimate of value by the Replacement Cost Approach.
INADEQUACY OF REPLACEMENT COST APPROACH - Several key factors, which comprise the Replacement Cost Approach, are weak. First of all, although land sales are researched in the Borough of Fair Lawn, comparable land sales are scarce. No recent arms- length transactions of land sites are found that can provide comparable land data. Secondly, the cost to replace the existing structure new requires treatment for physical and functional depreciation. These calculations will not be as reliable or accurate as the indications of value from the other approaches due to the age "vs." the effective age of the subject structure. Therefore, the Replacement Cost Approach is not suitable in this case.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
SALES COMPARISON APPROACH
The Sales Comparison Approach is the process of comparing the subject property to recent sales of similar properties and adjusting them for their similarities and differences into a value indication. It is based on the principle of substitution, which infers that a prudent purchaser will not pay more for a property than it will cost to buy or develop a comparable substitute property. This approach is of particular importance in the valuation of the subject, as it interprets the actions of buyers and sellers in the current market.
The Sales Comparison Approach has its greatest value in involving common elements, such as land or improved properties within a particular development, all with similar elements. In the absence of sales with the same amenities, allowing direct comparison, other nearly similar improved properties are considered because they provide a range of unit prices within which the current real estate market is operating and within the appraised property would be expected to sell.
Extensive research of the market, including the Bergen County MLS, assessor’s records, Co Star and Bergen County SR1A’s disclosed few recent closed sales of similar properties in the subject neighborhood. Therefore it was necessary to expand the search area to include similar markets in neighboring areas. The search criteria included an analysis of all commercial office sales in this market area within the past three years. All comparables utilized are located in close proximity to the subject, and closed within the past 36 months, making them the most current data available indicative of current market trends. The comparables utilized are good indicators of the subjects’ value and the best data currently available.
So that we may evaluate these sales on an equitable basis, we have selected the sales price per square foot for comparison. Discussions with market participants have confirmed that this is one method of valuation that they choose to use when making an investment decision. Because this is a recognized method of valuation and is considered more accurate than the previous methods discussed, it is the chosen method of valuation in the development of value in the Sales Comparison Approach. Please note that no business value or licenses are included in this analysis. In my analysis, we will also take into consideration such factors as time, location, condition and amenities when making our value estimate by the Sales Comparison Approach.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
SALES COMPARISON APPROACH
SALE #1
Location: 62 Summit Avenue, Hackensack, Gross Building Area: 2,710 Square Feet New Jersey Block/Lot: Block 240.01, Lot 3.03 Unit Price: $225.09 Per Square Foot Grantor : 62 Summit Avenue, Associates Verification: Deed, SR1A, Assessor Arthur Carlson Grantee: Eastman Realty Associates, LLC Zoning: “C-1” Commercial District Book/Page: Book 1805, Page 1912 Financing: Cash to Seller, No Recorded Mortgage Date of Sale: November 12, 2014 Sale Price: $610,000.00
Remarks: This property consists of a two-story detached commercial office structure. As of the date of sale, the property was fully occupied. The property is considered to be in similar average condition as compared to the subject. It is situated on Summit Avenue considered average to good being in an area of converted residential housing to professional use having good traffic exposure in close proximity to Hackensack Medical Center. There is on-site parking in the rear for 14 vehicles and all public utilities are available to the site, which consists of 10,780 square feet. No personal property or business value was included in this sales price.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
SALES COMPARISON APPROACH
SALE #2
Location: 646 Wyckoff Avenue, Wyckoff, Gross Building Area: 2,522 Square Feet New Jersey Block/Lot: Block 236, Lot 8 Unit Price: $313.24 Per Square Foot Grantor: Kern, Karl (Etal) Verification: Deed, SR1A, Assessor Pamela Steele Grantee: JMM Resource Group LLC Zoning: “B-1” Commercial District
Book/Page: Book 1881, Page 0759 Financing: Cash to Seller, No Recorded Financing Date of Sale: January 15, 2015 Sale Price: $790,000.00
Remarks: This property consists of a two-story detached commercial office structure. As of date of sale, it was tenant occupied and is considered to be in average condition, similar to the subject. Location is superior as Wyckoff commands higher property values compared to the subject. There is on-site parking for ten vehicles and all public utilities are available to the site, which consists of approximately 9,374 square feet. No personal property or business value was included in this sales price.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
SALES COMPARISON APPROACH
SALE #3
Location: 8-14 Saddle River Road, Fair Gross Building Area: 1,588 Square Feet Lawn, New Jersey Block/Lot: Block 1508, Lot 34 Unit Price: $201.51 Per Square Foot Grantor: 8-14 Saddle River Road, LLC Verification: Deed, SR1A, Assessor Tim Henderson Grantee: JQM Realty, LLC Zoning: “B-1” Commercial Business District Book/Page: Book 1596, Page 2062 Financing: Cash to Seller, Conventional Financing, Capital One NA, $220,000 Date of Sale: December 30, 2013 Sale Price: $320,000.00
Remarks: This property consists of a detached one and part-story commercial office structure. As of the date of sale, the property was tenant occupied. The property is considered to be in similar average condition as compared to the subject. It is situated on a corner lot but in an inferior location away opposite from the center of the downtown district with reduced exposure and visibility. There is on-site parking and all public utilities are available to the site, which consists of approximately 6,665 square feet. No personal property or business value was included in this sales price.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
SALES COMPARISON APPROACH
SALE #4
Location: 55 Summit Avenue, Hackensack, Gross Building Area: 3,745 Square Feet New Jersey Block/Lot: Block 248, Lot 23.02 Unit Price: $253.67 Per Square Foot Grantor: 55 Summit Avenue LLC Verification: Deed, SR1A, Assessor Arthur Carlson, Jr Grantee: Happy Kids Health LLC Zoning: Commercial Business District Book/Page: Book 1345, Page 1535 Financing: Cash to Seller, Conventional Financing, PNC Bank, $760,000 Date of Sale: March 7, 2013 Sale Price: $950,000.00
Remarks: This property consists of a tenant occupied detached two-story commercial office structure. As of the date of sale, the property was tenant occupied as three professional offices. The property is considered to be in similar average condition as compared to the subject. It is situated on Summit Avenue considered average to good being in an area of converted residential housing to professional use having good traffic exposure in close proximity to Hackensack Medical Center. There is on-site parking and all public utilities are available to the site, which consists of approximately 13,369 square feet. No personal property or business value was included in this sales price.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
COMPARABLE ADJUSTMENT SALES GRID
Subject Sale #1 Sale #2 Sale #3 Sale #4 8-14 Saddle Property 12-45 River Rd, 62 Summit Ave, 646 Wyckoff Ave, 55 Summit Ave, River Road, Address: Fair Lawn Hackensack Wyckoff Hackensack Fair Lawn Sale Price: -- $610,000 $790,000 $320,000 $950,000 Price per S/F: -- $225.09 $313.24 $201.51 $253.67 Real Property Rights Leased Fee Leased Fee Leased Fee Leased Fee Leased Fee Conveyed:
Adjustment: -- 0% 0% 0% 0% Adjusted Price: -- $610,000 $790,000 $320,000 $950,000 Financing: -- Market Market Market Market Adj: Price: -- $610,000 $790,000 $320,000 $950,000 Condition of -- Arms Length Arms Length Arms Length Arms Length Sale: Adjusted Price: -- $610,000 $790,000 $320,000 $950,000 Expenditures Immed. after -- None None None None Purchase: Adjustment: -- 0% 0% 0% 0% Inspected Market Cond: 11/12/2014 1/15/2015 12/30/2013 3/7/2013 8/18/2015 Adjustment: -- 0% 0% 0% 0% Adjusted Price: -- $610,000 $790,000 $320,000 $950,000 Location: Downtown Superior Superior Inferior Superior Adjustment: -- -20% -20% 10% -20% Condition: Average Similar Similar Similar Similar Adjustment: -- 0% 0% 0% 0% Site Size: 11,097 S/F 10,780 S/F 9,374 S/F 6,665 S/F 13,369 S/F Adjustment: -- 0% 0% 5% 0% Parking: On-Site On-Site On-Site On-Site On-Site Adjustment: -- 0% 0% 0% 0% Building S/F: 3,833 S/F 2,710 S/F 2,522 S/F 1,588 S/F 3,745 S/F Adjustment: -- 0% 0% -10% 0% Professional Physical Chars: Similar Similar Similar Similar Office Adjustment: -- 0% 0% 0% 0% Total -- -20% -20% 5% -20% Adjustment: Adj Price/s/f: --- $180.07 $250.59 $211.59 $202.94
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
EXPLANATION OF ADJUSTMENTS
Following is a sale-by-sale explanation of the adjustments made to the comparable sales and the reasoning behind those adjustments:
Real Property Rights Conveyed: All of the sales were conveyed in Leased Fee Interest and no adjustments were required.
Financing: All of the sales were market financed and no adjustments were applied.
Sale Conditions: All of the sales are considered arm’s length transactions and no adjustments were applied.
Expenditures Immediately after Purchase: No adjustment for expenditure after purchase could be supported.
Market Conditions: No adjustment was applied for market conditions since all sales were recent.
Location: Sale’#1, #2 & #4 are located in a superior area representing greater property values and Sale #3 required a positive adjustment being opposite of the borough’s business district. The remaining was similar.
Condition: All of the sales were similar in condition deeming no adjustments.
Site Size: A positive adjustment was deemed necessary for Sale #3 being smaller and the remaining were similar.
Parking: All of the comparable sales offered on-site parking being similar to the subject.
Building Size: A negative adjustment for Sale #3 was deemed necessary for building size, as smaller structures generally sell for more per square foot based on economies of scale. No other adjustments were applied, as all remaining units of comparison were similar.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
SALES COMPARISON APPROACH
Sale # Adj. Price Per S/F 1. $180.07 2. $250.59 3. $211.59 4. $202.94
Remarks & Conclusions - The appraiser analyzed the four comparable sales and noted that each were somewhat within a close adjusted range. The subject property is an owner and tenant occupied office structure containing a total of 3,833 square feet. It is in average condition and functional in its current use. Therefore, after taking in consideration all physical characteristics, location and use, the estimate of $210.00 per square foot best represents the market value for the subject property and would be justified within the marketplace. Therefore,
Building Size x (Est. Value per S/F) = (Total Value) 3,833 S/F x $210.00 = $804,930.
Rounded: $800,000.
“VALUE STABILIZED”
“VALUE VIA THE SALES COMPARISON APPROACH”
(EIGHT HUNDRED THOUSAND DOLLARS)
$800,000.00
Lease up Period/Absorption/Hard & Soft-Costs -$16,327. (Extracted from the Income Capitalization Approach) Total = $783,673.
Rounded: $785,000.
“VALUE AS IS”
VALUE VIA THE SALES COMPARISON APPROACH
(SEVEN HUNDRED EIGHTY FIVE THOUSAND DOLLARS)
$785,000.00
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
INCOME CAPITALIZATION APPROACH
Income capitalization is the process of converting a stream or series of income payments into a lump sum capital value. It is applied to the valuation of real estate on the premise that value is the present worth of anticipated or forecasted future benefits. The steps to form the opinion are (1) The potential gross income, (2) To deduct vacancy losses and operating income, (3) To utilize an appropriate capitalization method and (4) To conclude with an opinion of value.
Income-producing real estate is typically purchased as an investment, and from an investor’s point of view earning power is the critical element affecting property value. One basic investment premise is that the higher the earnings, the higher the value. An investor who purchases income-producing real estate is essentially trading present dollars for the right to receive future dollars. The income capitalization approach to value consists of methods, techniques and mathematical procedures that an appraiser uses to analyze a property’s capacity to generate benefits (i.e., usually the monetary benefits of income and reversion) and convert these benefits into an indication of present value. The income capitalization approach is one of the three approaches to that an appraiser may use in the valuation process. However, it is not an independent system of valuation that is unrelated to the other approaches.
The valuation process as a whole is composed of integrated, interrelated and inseparable techniques and procedures designed to produce a convincing and reliable opinion of value, usually market value. Within the income approach, the income value is determined by comparing rents from other buildings to the subject in order to estimate a potential gross income. If the subject property is leased and the current lease is not at market, an estimate is assigned to the property. If the current lease or leases are at market, the income generated is utilized as potential gross income.
Subject Property Lease Information
The subject property consists of a commercial structure containing six occupied office units. Leases and income information were provided. The space utilized, as a UPS store is owner occupied for $2,000 per month. As such this is not considered to be an arm’s length lease, and market rates will be investigated and utilized. The remaining units are tenant occupied and leased for one year through five years on modified gross terms. The owner provided income and expense information, however, where information was incomplete the market will be researched and information will be market extracted. The reported rental details are as follows.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
INCOME CAPITALIZATION APPROACH
All Units (Actual Rents)
Rent Total Monthly Per Annual Unit SF (+/-) Terms Rent S/F Rent Tenant Addtl Pmt Landlord Expenses 20% utils + CAM Suite 1 & 3 - UPS (JMW 5 yrs 7/1/10- Charges+ Taxes over Base Taxes, Structural Shipping LLC) 1,300 6/30/15 *$2,000 $18.46 $24,000 base yr 2010 Maintenance and Repairs 27% utils + CAM Base Taxes, Structural Suite 2 - Allstate (Fawaz 1 yr 11/1/14- Charges + Taxes over Maintenance and Repairs Ghannam) 1,200 10/31/15 $2,300 $23.00 $27,600 base yr 2007 Suite 4A &4B - Fair 18% utils + CAM Base Taxes, Structural Lawn Chamber of 5 yrs 12/1/10- Charges + Taxes over Maintenance and Repairs Commerce 633 11/30/15 $676 $12.82 $8,112 base yr 2010 Utilities, Base Taxes, Suite 4C - HG Weber 1 yr 7/1/15- Insurance, Maintenance Tax Services, LLC 200 6/30/16 $475 $28.50 $5,700 N/A and Repairs Utilities, Base Taxes, 1 yr 11/1/14- Insurance, Maintenance Suite 5 - Fort Nox LLC 300 10/31/15 $750 $30.00 $9,000 N/A and Repairs 12% utils + CAM Base Taxes, Structural 2 yrs 7/1/15- Charges + Taxes over Maintenance and Repairs Suite 6 - Glam Spot NJ 200 6/30/17 $670 $40.20 $8,040 base yr 2010
$6,871 $82,452
* Owner occupied unit
Commercial Rent Analysis
The following table presents eight current office leases in the market area that are comparable to the subject. Explanations of the leases will be on a qualitative bases relating to subjective measures where the data tends to fall into nominal or ordinal categories represented by a form of word analysis.
Each of the comparable rentals was verified by either the MLS, the listing broker or from previous reports in the appraiser’s files. Tenant names are confidential. The comparable leases are as follows:
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
INCOME CAPITALIZATION APPROACH
Lease Address Type P/S/F Unit Size Landlord Expenses 5-11 Saddle River Rd, Modified Gross Insurance, Taxes, 1 $23.04 625 S/F Maintenance, & Repairs Fair Lawn, NJ Lease 938 Spring Valley Rd, Modified Gross 2 $25.50 400 S/F Utilities, Insurance, Taxes, Maywood, NJ Lease Maintenance, & Repairs 26 Goffle Road, 2nd Fl, Modified Gross Heat, Water, Insurance, 3 $14.29 630 S/F Lease Taxes, Maintenance & Midland Park, NJ Repairs 555 Goffle Rd, Modified Gross 4 $23.84 604 S/F Utilities, Insurance, Taxes, Ridgewood, NJ Lease Maintenance, & Repairs 36 Franklin Tpke, Modified Gross 5 $36.00 200 S/F Utilities, Insurance, Taxes, Waldwick, NJ Lease Maintenance, & Repairs 312-316 Kinderkamack Rd, 6 Net Lease $22.65 1,987 S/F Structural Maintenance & Westwood, NJ Repairs 19-03 Maple Ave, 7 Net Lease $15.60 1,000 S/F Structural Maintenance & Fair Lawn, NJ Repairs 5-11 Saddle River Rd #2, Modified Gross Insurance, Taxes, 8 Fair Lawn, NJ $17.28 625 S/F Lease Maintenance, & Repairs
Explanation of Pricing Factors
Rental #1 – is a commercial office space containing 625 square feet. The unit is located within close proximity of the subject property; however, the building location is inferior to the subject having decreased exposure and visibility away from the central downtown business district. A positive 10% adjustment is deemed necessary. It is in similar condition and physical characteristics are similar, requiring no adjustment. Parking is on site, similar to the subject. Terms are for 3 years, beginning 5/2015. The adjusted rent conclusion is $25.34 p/s/f.
Rental #2 – is a commercial office space containing 400 square feet. The unit is located in a similar neighborhood on a side street offering reduced exposure and visibility, deeming a 10% positive adjustment. It is in similar condition, requiring no adjustment. Size is similar to the subject, requiring no adjustment. Other physical characteristics are similar. Parking is on site, similar to the subject. Terms are for 3 years, beginning 1/2015. The adjusted rent conclusion is $28.05 p/s/f.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
INCOME CAPITALIZATION APPROACH
Rental #3 – is a second floor commercial office space containing 630 square feet. The unit is located in a similar neighborhood on a main road, deeming no adjustment. It is in similar condition, requiring no adjustment. Size is similar to the subject, requiring no adjustment. The unit is located on the second floor, deeming a 5% positive adjustment. Parking is on site, similar to the subject. Terms are for 3 years, beginning 6/2015. The adjusted rent conclusion is $15.00 p/s/f.
Rental #4 - is commercial office space containing 604 square feet. The unit is located in a superior neighborhood; however, the building location is inferior to the subject having decreased exposure and visibility, and no adjustment is applied. It is in similar condition, requiring no adjustment. Size and other physical characteristics are similar to the subject, requiring no adjustment. Parking is on site, similar to the subject. Terms are for 3 years, beginning 1/2015. The adjusted rent conclusion is $23.84 p/s/f.
Rental #5 – is commercial office space containing 200 square feet. The unit is located in a similar neighborhood on a main road, deeming no adjustment. It is in average condition, similar to the subject. Size is similar as to the subject, deeming no adjustment. Signage at the front of the building is included, deeming a negative 5% adjustment. Parking is on site, similar to the subject. Terms are for 3 years, beginning 12/2014. The adjusted rent conclusion is $34.20 p/s/f.
Rental #6 – is a commercial retail/office space containing 1,987 square feet. This is a net lease; therefore, a positive 20% adjustment is deemed necessary, and the adjusted base rent is $27.18. The unit is located in a similar neighborhood as the subject property on a main road, deeming no adjustment. It is in average condition, similar to the subject. Size is larger than the subject deeming a 5% positive adjustment, as larger properties tend to rent for less based on the economies of scale. Other physical characteristics are similar to the subject. There is on-site parking, similar to the subject. Terms are for 5 years beginning 6/2015. The adjusted qualitative rent conclusion is $28.54 p/s/f.
Rental #7 – is a commercial office space containing 1,000 square feet. This is a net lease; therefore, a positive 20% adjustment is deemed necessary, and the adjusted base rent is $18.72. The unit is located in the same neighborhood as the subject property; however, the building location is inferior to the subject having decreased exposure and visibility away from the central downtown business district. A positive 10% adjustment is deemed necessary. It is in average condition, similar to the subject. Size and other physical characteristics are similar to the subject. There is on-site parking, similar to the subject. Terms are for 5 years beginning 5/2015. The adjusted qualitative rent conclusion is $20.59 p/s/f.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
INCOME CAPITALIZATION APPROACH
Rental #8 – is second floor commercial office space containing 625 square feet. The unit is located within close proximity of the subject property; however, the building location is inferior to the subject having decreased exposure and visibility away from the central downtown business district. A positive 10% adjustment is deemed necessary. It is in similar condition, requiring no adjustment. Size is similar to the subject, requiring no adjustment. The unit is located on the second floor, deeming a 5% positive adjustment. Parking is on site, similar to the subject. Terms are for 2 years, beginning 2/2015. The adjusted rent conclusion is $19.87 p/s/f.
Summary: Based on the analysis of the comparable leases, the appraiser concludes that the estimated market rent for the owner occupied unit would be $24.00 p/s/f on a modified gross basis, or $31,200 annually. The rents for the tenant occupied units totaling $58,452 annually appear to be at market. Therefore the total estimated rent is $89,652 annually, and this will be utilized in the cash flow analysis.
All Units (Estimated Rents)
Rent Total Monthly Per Annual Unit SF (+/-) Terms Rent S/F Rent Tenant Addtl Pmt Landlord Expenses 20% utils + CAM Suite 1 & 3 - UPS (JMW 5 yrs 7/1/10- Charges+ Taxes over Taxes, Structural Shipping LLC) 1,300 6/30/15 $2,600 $24.00 $31,200 base yr 2010 Maintenance and Repairs 27% utils + CAM Taxes, Structural Suite 2 - Allstate (Fawaz 1 yr 11/1/14- Charges + Taxes over Maintenance and Repairs Ghannam) 1,200 10/31/15 $2,300 $23.00 $27,600 base yr 2007 Suite 4A &4B - Fair 18% utils + CAM Taxes, Structural Lawn Chamber of 5 yrs 12/1/10- Charges + Taxes over Maintenance and Repairs Commerce 633 11/30/15 $676 $12.82 $8,112 base yr 2010 Utilities, Taxes, Suite 4C - HG Weber 1 yr 7/1/15- Insurance, Maintenance Tax Services, LLC 200 6/30/16 $475 $28.50 $5,700 N/A and Repairs Utilities, Taxes, 1 yr 11/1/14- Insurance, Maintenance Suite 5 - Fort Nox LLC 300 10/31/15 $750 $30.00 $9,000 N/A and Repairs 12% utils + CAM Taxes, Structural 2 yrs 7/1/15- Charges + Taxes over Maintenance and Repairs Suite 6 - Glam Spot NJ 200 6/30/17 $670 $40.20 $8,040 base yr 2010
$7,471 $89,652
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
PHOTOGRAPHS OF THE COMPARABLE COMMERCIAL RENTALS 5-11 SADDLE RIVER RD, FAIR LAWN, NJ
938 SPRING VALLEY RD, MAYWOOD, NJ
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
PHOTOGRAPHS OF THE COMPARABLE COMMERCIAL RENTALS 26 GOFFLE RD, MIDLAND PARK, NJ
555 GOFFLE RD, RIDGEWOOD, NJ
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
PHOTOGRAPHS OF THE COMPARABLE COMMERCIAL RENTALS 36 FRANKLIN TPKE, WALDWICK, NJ
312-316 KINDERKAMACK RD, WESTWOOD, NJ
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
PHOTOGRAPHS OF THE COMPARABLE COMMERCIAL RENTALS 19-03 MAPLE AVE, FAIR LAWN, NJ
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
INCOME CAPITALIZATION APPROACH
The appraiser analyzed local buildings in the immediate area and concluded these results along with the expenses of the subject property: (Note) Some expenses are tenant and/or landlord responsibilities due to lease terms such as janitorial, snow removal, HVAC, security and elevator maintenance if applicable and landscaping. However, the analysis below represents only typical expenses of properties similar to the subject regardless of agreements between the landlord and the tenants in place. Addresses are confidential and are in the appraisers files.
Comparable #1 - Henley Avenue, Fair Lawn, NJ Comparable #2 - Ackerman Avenue, Emerson, NJ Comparable #3 - 3rd Avenue, Westwood, NJ Comparable #4 – Hartley Place, Fair Lawn, NJ
Expense Comparables LOCATION: Comp 1 - Comp 2 - Comp 3 - Comp 4 - BLD.SIZE: 4,188 S/F - 10,388 S/F - 4,000 S/F - 2,700 S/F - EXPENSE YEAR: 12 Month - Similar - Similar - Similar - Estimate ANALYSIS: Total $'s $/SF Total $'s $/SF Total $'s $/SF Total $’s $/SF R.E. Taxes : $11,932 2.85 $22,045 2.12 $13,500 3.38 $11,538 4.27 Utilities: Tenant --- Tenant --- Tenant --- Tenant --- Insurance: $2,094 0.50 $5,195 0.50 $1,400 0.35 $540.00 0.20 Maintenance: $3,141 0.75 $7,791 0.75 $3,600 0.90 $1,350 0.50 Reserves: $1,465 0.35 $5,194 0.50 $3,000 0.75 $945.00 0.35 Professional/Other $1,200 0.29 $1,500 0.15 $950.00 0.24 $810.00 0.30
Based on the subject property being leased in the open market, the analysis above identifies that the subject property would be in the range of the cost expenses per square foot of the total building size. The overall property is in average condition and the comparables were within the area in similar condition as well as with similar income streams. The subject property will be analyzed with modified gross leases, which does in this case increase the operating expense ratio. Variable utilities are based on tenants use and is not recognized. In relationship to the landlords NOI, each reflected a similar expense cost per square foot. These costs will be utilized in the Stabilized Projected Operating Income Statement.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
INCOME CAPITALIZATION APPROACH
Rental Vacancy Analysis and Summary
My study of the rental market included discussions regarding occupancy levels. A review of regional and local surveys showed vacancy in the area depending on the micro-market. According to CoStar, the average vacancy rate for commercial office buildings in Bergen County stands at 13.4% and the average vacancy rate for retail buildings in Bergen County stands at around 5.1%, which includes all neighborhood locations and all physical characteristics of commercial retail properties. However, further analysis shows that the vacancy rate for office properties is in the range of 5% in the Borough of Fair Lawn. Therefore, based on the data reported in the market study and the local vacancy of buildings similar to the subject of approximate size and location in Fair Lawn and with the subject property being fully occupied, the appraiser will utilize a 5% rate to reflect an allowance for vacancy and 2% for a non-collection loss after vacancy for the subject property as 100% occupied.
Stabilized Projected Operating Income Statement
Total Annual PGI – Base Rent (Current year) ...... $89,652. Additional Rent (Real Estate Taxes)……………………………………………. $4,362. Additional Rent Collected for Utilities…………………………………………. $9,658. Additional Rent Collected for Insurance……………………………………….. $2,018. Total Collected Rent (Base Rent + Pass Through Charges)……………………. $105,690. Less Vacancy (5%) ...... $5,285. Less Non Collections (2%)...... $2,008. Effective Gross Income ...... $98,398.
Less: Real Estate Taxes (2015) ...... $20,007. Utilities ...... $12,543. Insurance (Est)...... $2,621. Management (3% of the EGI base rent only)……...…………………………… $2,555. Maintenance ($0.75 p/s/f) ...... $2,875. Reserves: ($0.50 p/s/f)………………………………………………………….. $1,916. Administrative & Professional ………….……………………………………… $950. Total Expenses...... $43,467. Net Operating Income ...... $54,931.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
INCOME CAPITALIZATION APPROACH
Expenses: Please note that the expenses were either actual or estimated from the marketplace.
Real Estate Taxes: This actual expense is paid by the owner with partial reimbursement by the tenants, as the expense statement indicates. The total annual real estate taxes for 2015 are $20,007. Calculated as the actual real estate taxes of $20,007 / 3,833 total square foot of building = $5.22 p/s/f. As noted, the owner pays this expense as the marketplace represents. This appears to be above the range of the comparable properties, however, typical of properties in the subject market area. Note: the property was assessed at a higher rate for 2014 and the total effective taxes were $21,379, which is the amount used to calculate tenant’s share of real estate taxes above base year 2007 and 2010.
Utilities: Actual utilities are reported on the expense statement to be $12,543 annually or $3.27 p/s/f. The tenants as indicated on the lease agreements pay for a portion of the utilities.
Insurance: This expense of $2,621 is an actual expense on the expense statement paid by the landlord and partly reimbursed by the tenants as indicated. It is in line with expense comparables.
Management: Typically, management fees for smaller type office properties in areas similar to the subject’s neighborhood range from 2% to 5%. Based on a survey of typical market participants, comparable buildings, the real estate market, building or property size and the amount of tenants in the subject, a management fee of 3% of the subject’s effective gross income has been applied. Maintenance & Reserves: Maintenance expenses in properties similar to the subject may include building and common area upkeep. Reserves, however, represent funds put aside by the prudent property owner for any structural maintenance or repairs that may be required. This allowance for maintenance and reserves is based on an analysis of similar properties as indicated by market surveys in addition to historical data provided by RealtyRates.com, which indicates a maintenance range from $0.25 to $1.00. Therefore, a maintenance rate of $0.75 per square foot will be utilized for the entire property with an additional $0.50 for reserves for a total of $1.25 p/s/f, or $4,791 has been applied.
Administrative & Administrative & Professional is estimated at $950 annually for this Professional: property which is in line with public accounting and office fees in the market area. 68
12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
INCOME CAPITALIZATION APPROACH
Capitalization Rate - The capitalization rate can be estimated by several methods. The first approach is by survey of capitalization rates from sales of the same type as the subject property. Another approach is by the band of investment. The band of investment accounts for the return of both mortgage and equity investments. The overall capitalization rate is a composite rate, weighed in proportion to the total property investment represented by debt and equity. The mortgage-equity formula, or Ellwood technique, is based on the theory that mortgage money plays a major role in real property prices and values. This formula addressed the yield requirements of both the lender's interest and investor's equity interest over time.
Band of Investment - A direct capitalization method (Band of Investment) is most appropriate. An annual stabilized income best reflects the thinking of a typical purchaser for a property such as the subject. The subject is not a high investment grade property, and investors with some risk factor involved normally purchase these properties. Therefore, in the case of this property being a commercial office property, the yield capitalization discounted cash flow process would not apply an accurate estimate of value and is not feasible.
The steps in the direct capitalization method are:
1. Estimate a gross annual income by analyzing current and comparable leases.
2. Subtract a vacancy and credit loss, and applicable expense estimate to produce an effective gross income.
3. Estimate the net operating income by subtracting the applicable expenses (except debt service) from the effective gross income.
4. Develop an appropriate rate either by a band of investment or extraction from the market.
5. Divide (capitalize) the net operating income by the capitalization rate to produce a value indication by the income approach.
Information regarding general market trends in investment properties is extracted from the market through several means. One such information source is RealtyRates.com, which conducts market and investors’ surveys, which compile property specific national data from brokerage firms, developers, investors, and lenders.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
INCOME CAPITALIZATION APPROACH
Combining a weighted requirement to the mortgage and equity positions develops the band of investment. An office survey of mortgage loans by the RealtyRates.com investors’ survey for the 2nd quarter of 2015 indicates a mortgage constant for a long-term amortization period averaging 6.51%. The loan to value ratio averages approximately 72.5% in the survey, which is consistent with ratios currently offered by local banks. The Real Estate Investor Survey surveys the equity dividend rate, also known as the equity capitalization rate. National equity capitalization rates range between 7.69% and 16.25% with an average of 12.4% for office properties. These rates are ranges from the nation and general types of office properties. However, it does not specifically focus on office properties in the local market place.
Below are two surveys, retail & office as the subject is an office use property with two units offering storefront exposure and with the potential to be utilized for retail purposes. The loan to value ratios range from approximately 50% to 90% in both surveys, depending on risk factors. Equity capitalization rates for both averages between 12.40% and 13.16%. Interest rates for both range from 2.73% to 9.75% averaging 4.95% with amortization between 15 and 40 years averaging approximately 28 years. Overall capitalization rates from both surveys range from 4.51% to 15.43% averaging approximately 8.53% combined. The subject property represents common neighborhood properties in the micro-market due to its location and its use as a commercial office use structure.
Properties similar to the subject of this type are both owner/user as well as the owner/investor. The proximity to the New York Metro real estate market and in conjunction with the features mentioned regarding the property results in using the following Band of Investment criteria, which is consistent with comparable lending institutional statistics. Considering the characteristics of the regional market, local market and subject property in reference to its risk, size, usage and condition, an 8.50% equity dividend rate is utilized here. 70
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INCOME CAPITALIZATION APPROACH
The overall capitalization rate is as follows:
LTVR X Mortgage Constant = .70 X .0650 = 0.0455 Equity\Value X Equity Dividend Rate = Ratio .30 X .0850 = 0.0255 Overall Capitalization = 0.0710 Rate Say 7.10%
A rate was estimated by use of a band of investment. This is a synthesis of two rates, one for typical financing terms, the rate for the mortgage, and a rate the investor expects from his equity investment, the rate to equity. Typical financing terms were determined after discussions with area bankers and mortgage brokers, noting a 25 year loan at a 4.25% interest rate, based on a 70% loan to value ratio. An equity dividend rate must be estimated in order to formulate the band of investments. A rate of 8.50% was selected by a comparison of alternative investment. This equity dividend rate is appropriate because the subject is an office use structure. These properties are considered moderate grade investment properties, and command dividend rates within this selected range. The overall capitalization rate of 7.10% is considered appropriate and representative of current market expectations for this type of use property. Therefore, the net operating income of $54,931 was capitalized (divided) at 7.10% to derive a value estimate via the Income Capitalization Approach. Therefore, $54,931 / .0710 = $773,676.
Rounded: $775,000.
“STABILIZED VALUE”
VALUE VIA THE INCOME CAPITALIZATION APPROACH
(SEVEN HUNDRED SEVENTY FIVE THOUSAND DOLLARS)
$775,000.00
At this point, the appraiser will determine the “as is value” of the subject property based on absorption, lease-up costs, utility costs, commissions, etc.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
INCOME CAPITALIZATION APPROACH
It is estimated that the owner occupied unit would be marketed for approximately a three- month period, which includes the absorption period having a loss of rent. As indicated in the report, the annual market rent for the owner’s unit is $31,200. Over a three month period, the loss of rent is $7,800. Regarding real estate taxes, the average cost tenants are paying for the unit in question is approximately $1.50 psf. This calulates to $487.50 over the three monts. A minor utility cost charge for the one unit over three months is estimated at approximately $80.00 per month totaling $240.00. Lastly, utilizing contracted five-year lease terms flat over the period, the total income from the one lease will equal $156,000 and a commission of 5% equates to $7,800. Therefore, the loss of rent will be deducted as follows:
Lease up Period/Hard & Soft-Costs = $16,327.
Therefore: Stabilized Value = $775,000
Less Lease up Period/Absorption/Hard & Soft-Costs -$16,327.
Total = $758,672
Say $760,000.00
“AS IS VALUE”
“VALUE VIA THE INCOME CAPITALIZATION APPROACH”
(SEVEN HUNDRED SIXTY THOUSAND DOLLARS)
$760,000.00
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
RECONCILIATION AND FINAL ESTIMATE OF VALUE
The value indicators developed “As Stabilized” and “As Is” for the subject property was:
THE REPLACEMENT COST APPROACH………………………………….Not Applicable THE SALES COMPARISON APPROACH:...... $800,000.00/$785,000.00 THE INCOME CAPITALIZATION APPROACH:………………..$775,000.00/$760,000.00
The subject property is located at 12-45 River Road, Fair Lawn, New Jersey 07410. Its legal description as per the municipal tax office is Block 5611, Lot’s 61, 62, 63. The subject property consists of a commercial office use structure having a total gross building area of 3,833 square feet. All three approaches to value were attempted in order to establish the final value estimate with each indicator specifically analyzed and explained in the reconciliation. The indicated value conclusions were derived through the application of acceptable appraisal principles and concepts. The differences in these estimates were created by variations in the quality and quantity of pertinent information available for analysis and are not indicative of basic conflicts between each appraisal to value.
THE REPLACEMENT COST APPROACH - to value is predominately market oriented. It uses market data for the land value estimate in terms of comparable vacant site sales. Cost estimates were derived from analyzing the base valuation service manual and through market abstraction of sales in the competing neighborhood as well as the age life method, obtaining the amount of depreciation. In this approach, a meaningful indication of value is estimated when: 1) The reproduction cost has been accurately estimated, 2) The site value is based upon recent or available similar sales in an active market, 3) The subject property is depreciated, however, margin of accuracy lie in the difficulty of measurement and 4) The analysis of the subject property reveals a loss in value (diminished utility) due to some physical deterioration. The Replacement Cost Approach was not utilized within this estimate of value due to the fact that there were limited recent arm's length land sales within the market area comparable to the subject. Also, the age "vs" the effective age of the building would objectively depreciate the structure. Lastly, the marketplace does not recognize this approach to be a deciding factor towards market value between buyers and sellers for this type of property in question. With these three factors, the Replacement Cost Approach was not utilized in this report.
THE SALES COMPARISON APPROACH - indicated a value of $800,000.00 “stabilized” and $785,000.00 “as is” and was concluded by means of a comparison of similar properties within the area. The merits of this approach are limited by the heterogeneous nature of the real estate, imperfect market conditions and inherent subjectivity of adjustments. In the subject property's case, the data gathered consisted of four comparable sales being similar in design and usage. Each comparable sale was adjusted to the subject. This approach is considered to be reliable in the final value estimate as it reflected the structure's price per square foot within the open market. Therefore, this approach will be considered and carry weight towards value.
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
RECONCILIATION AND FINAL ESTIMATE OF VALUE
THE INCOME APPROACH – reflected a value of $775,000.00 “stabilized” and $760,000.00 “as is” and established similar indicators towards value for this type of income producing property. This estimated the operating income for the first year, based on market leases and expenses. This method represents the investment thinking prevalent within the marketplace and is reliable in the final value estimate. As noted, this approach represented a similar indicator towards value due to the fact that the net market rent collected can be capitalized into a market value and therefore, weight will also be considered from this approach as well.
Summary - When reconciling the approaches to value, the appraiser must weigh the value conclusions of each approach that is developed. In the case of the subject, the Sales Comparison Approach clearly represents actual sales of similar properties within the market and is considered an indication of market value. The Income Capitalization Approach established a value by capitalizing the net operating income into a value estimate. With each indicator representing similar specific values, and based on its tenancy, property use and the homogeneous make-up of the neighborhood, weight will be given to the Income Capitalization Approach and strongly supported by the Sales Comparison Approach as this facility is best represented as a tenant occupied income producing property.
Therefore, after a careful review and analysis of the available data and after giving consideration to all elements that create and influence real estate value including the factors outlined in this report, I conclude that a reasonable and defensible opinion of value for the subject property as described as tenant occupied in "Leased Fee Interest" appraised “as is” as of August 18, 2015 and “as stabilized” as of November 18, 2015 was:
“VALUE STABILIZED”
(SEVEN HUNDRED SEVENTY FIVE THOUSAND DOLLARS)
$775,000.00
“VALUE AS IS”
(SEVEN HUNDRED SIXTY THOUSAND DOLLARS)
$760,000.00
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ADDENDA (Exhibits)
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
William J. Doka, SRA, SCGREA
EXPERIENCE:
Erickson Appraisal Company, 1985 to present - 17-10 River Road, Fair Lawn, NJ 07410 Current owner and president of Erickson Appraisal Company Inc. Overseeing administration and narrative report appraisal assignments for diversified types of real estate properties. Additional responsibilities include the preparation of comprehensive narrative reports and control of the allocation of work. Also as company president, I have a strong working knowledge of the valuation programs Office/2, Center and Apartment by Pascal and Company along with Windows 95, 98, 2000, XP, Excel, Microsoft Word and WordPerfect Word-processing.
EAC Realty Company, 1992 to present - 17-10 River Road, Fair Lawn, NJ 07410 Current broker, owner and president of commercial/residential real estate brokerage firm.
Hallmark Appraisal Company, 1983, 1984 -Union City, NJ Independent Fee Staff Real Estate Appraiser - Duties were to appraise commercial and residential/multi-family real estate for mortgage lending purposes.
Schlott Realtors, 1982, 1983- Fort Lee, NJ Sales Representative - Appraiser - Notary (Licensed Real Estate Sales Representative)
EDUCATION:
Montclair State University - 1976 Bachelors Degree - Industrial Technology additional 18 credits for Master's Degree
Saint Peters College Englewood Cliffs - 1974 Associate Degree - Secondary Education
PROFESSIONAL AFFILIATIONS:
NJ State Certified General Real Estate Appraiser (SCGREA) #42RG00010400 NY State Certified General Real Estate Appraiser #46000012872 The Appraisal Institute RM/SRA Designation (RM Designation from former AIREA) MAI Candidate Appraisal Institute (Comprehensive Exam to Complete) Past ASA Candidate of the American Society of Appraisers majoring in Machinery & Technical Specialties Discipline and Real Property Valuation. Certified Professional Auctioneer (Missouri Auction School) New Jersey Real Estate Broker and Sales License
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PROFESSIONAL AFFILIATIONS CONT:
Member of the Board of Realtors - GSMLS, Passaic, Hudson and Passaic Counties. President of the Northeast New Jersey Chapter of the Appraisal Institute Years of 1995 & 2005 Public Relations Director with Northeast New Jersey Chapter of the Appraisal Institute and the New Jersey Chapter of the American Society of Appraisers, Years 2001 to Present Past Vice President of the Northeast New Jersey Chapter of the Appraisal Institute - 1994 Past Admissions Chairperson of the Appraisal Institute - 1993 Past Education Chairperson of the Northeast New Jersey Chapter of the Appraisal Institute, Past Treasurer - 1993-94 and National Seminar Division -1995 Past Certified Instructor with the Appraisal Institute and the State of NJ for the Seminar Division & Courses 110 Appraisal Principles, 120 Appraisal Procedures, 210 Case Study Current Adjunct Professor - Bergen Community College, Intro to Real Estate Appraising
PROFESSIONAL EDUCATION:
- American Institute of Real Estate Appraisers (Currently the Appraisal Institute)
- Residential and Commercial Property Courses (Penn State University)
- Successfully Attended Courses are: Real Estate Appraisal Principles Residential Valuation Basic Valuation Procedures Standards of Professional Practice Parts A, B & C Capitalization Theory and Techniques Part A Capitalization Theory and Techniques Part B Advanced Income Capitalization Course 510 Advanced Sales Comparison and Cost Approaches Course 530 Case Studies in Real Estate Valuation Report Writing and Valuation Analysis Narrative Report Writing (SREA) Separating Real and Personal Property from Intangible Business Assets Course 800
- Frank Kovats Real Estate School
- Albert Lowry Education Advancement Institute
Programs Include:
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
PROFESSIONAL EDUCATION CONT:
Property Selection Financing Financial Analysis Negotiating Improvements Taxes Property Management Estate Planning
- Dale Carnegie and Associates, Inc. (The Harley Institute Inc.) Courses Satisfactory Completed: Effective Speaking and Human Relations
Business Management A Human Relations Approach to Professional Selling
- Building Inspectors R.C.S. (Certified Building Inspector) Programs included:
Structural Design and Analysis Technique Wood Framing Construction Light Steel Construction Foundations of Materials Field Identification of Materials Plan Review - Fire Protection Requirements Height and Area Limitations Blueprint Reading Inspection Techniques Inspection Tools and Methods Basic Inspection Report Writing
- Appraisal Institute Comprehensive Seminars
Appraisal Regulations of the Federal Banking Agencies Hotel/Motel Valuation Rates, Ratios and Reasonableness Accrued Depreciation The New Uniform Residential Appraisal Report (URAR) Standards of Professional Practice, (Course 420) The High-Tech Appraisal Office The Internet and Appraising USPAP (Uniform Standards Professional Appraisal Practice) Valuing Green Buildings Supervisory Appraiser/Trainee Course Valuation of Closely Held Businesses New Jersey Appraisal Law Business Practices and Ethics 78
12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
CURRENT CLIENT BASE:
ABN-AMRO Mortgage Group, Inc. Across Nations CBC Allied Capital Corporation Atlantic Stewardship Bank Bayonne Community Bank Banco Popular Business Lenders, LLC Broadway Funding Chase Bank Freedom Bank Connect One Bank Commercial Funding Corp. Citi-Bank, N.A Equity One Freedom Bank Kearny Federal Bank Life Bank Mortgage Strategies National Bank Sussex County Nikko Enterprises (USA) Inc. New Bank New Jersey Transit (NJT) New Jersey Business Finance Corporation New Jersey Department of Transportation (DOT) New York Mortgage Corporation Option One Mortgage P&A Financial Services Par Pharmaceutical Inc. PNC Mortgage Company, Inc. Popular Financial Services, LLC Freedom Bank (RTC) Resolution Trust Corporation Small Business Administration Southern Pacific Thrift & Loan Spencer Savings Bank Summit Bank Sun Bank Statewide Capital Corp. The Money Store Investment Corporation UC Lending Corp. Velocity Commercial Capital Wilshire State Bank 79
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Location Map
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12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
Subject Property
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277-281 BROADWAY, HILLSDALE, NEW JERSEY
Tax Record
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Tax Map
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Zoning Map
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Survey 85 12-45 RIVER ROAD, FAIR LAWN, NEW JERSEY
COMPARABLE SALES MAP
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COMMERCIAL LEASE MAP
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FLOOD MAP
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LEASE AGREEMENT – STATE FARM
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LEASE AGREEMENT FAIR LAWN CHAMBER OF COMMERCE
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LEASE AGREEMENT HG WEBER TAX SERVICES
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LEASE AGREEMENT FORT NOX
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LEASE AGREEMENT GLAM SPOT NJ
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INCOME & EXPENSES
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ENGAGEMENT LETTER
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