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12-45 River Road, Fair Lawn, New Jersey 1 the Appraisal

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12-45 River Road, Fair Lawn, New Jersey 1 the Appraisal 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 1 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 2 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. 3 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 4 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. 5 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. 6 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
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