Market Study Report Prepared
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Cooke & Washington Avenue Redevelopment Carteret Borough Middlesex County, New Jersey MARKET STUDY REPORT OG. File No. 20060009 55 Lamson Lane Block 801, Lot 55 Logan Township Gloucester County, New Jersey PREPARED FOR John Kainer Mr. 50 Lamson Lane, LLC 16 Lehigh Drive Kendall Park, NJ 08824 OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH 800-458-7161 www.otteau.com New Jersey Office (Mail) New York Office Pennsylvania Office 100 Matawan Road, Suite 320 112 W. 34th Street, 18th Floor 325 - 41 Che stnut Street, Suite 800 Matawan, NJ 07747 Manhattan, NY 10120 Philadelphia, PA 19106 July 2, 2020 Mr. John Kainer 50 Lamson Lane, LLC 16 Lehigh Drive Kendall Park, NJ 08824 RE: OG. File No. 20060009 55 Lamson Lane Block 801, Lot 55 Logan Township Gloucester County, New Jersey Dear Mr. Kainer: In accordance with your request, we submit our market study report for the above referenced property in Logan Township. The purpose of the market study is to determine whether the proposed warehouse development will have any adverse effect on the market value of surrounding residential properties. The intended use of the study is to provide consulting services related to a use variance application. It is also anticipated that the Township of Logan may rely upon this study in considering a use variance application. In developing this study, we have investigated home selling prices in Gloucester County, New Jersey municipalities near to or bordering warehouse development. The results of these analyses were then compared to selling prices of homes that are not bordering or near to warehouse development. Based upon my investigation and analysis, it is my considered opinion that the proposed warehouse development will not have any adverse effect on the market value of surrounding residential properties. This market study report summarizes the various processes employed in developing our conclusions, the relevant data which formed the basis of our analyses, various exhibits, and documents upon which we have relied and any assumptions upon which our study has been based. The World Health Organization declared COVID-19 as a world-wide pandemic on January 30, 2020 and the United States declared a national emergency on March 13, 2020. These events have caused accelerated economic contraction, market disruption and increased risk for real estate. The data and analyses that appear in this report reflect market data which precede the above referenced dates. Therefore, this report has not considered potential economic or real estate market impacts resulting from COVID-19. It is our opinion however that the validity of our findings are not changed by recent events. Respectfully submitted, Jeffrey G. Otteau, President, American Society of Appraisers, Accredited Senior Appraiser (ASA) National Assoc. of Independent Fee Appraisers, Designated Appraiser (IFA) New Jersey Certified General Real Estate Appraiser, #42RG00094100 New York Certified General Real Estate Appraiser, #46000045325 Pennsylvania Certified General Real Estate Appraiser, #GA003481 Christopher J. Otteau, MAI, AI-GRS Principal New Jersey Certified General Real Estate Appraiser, #42RG00219400 New York Certified General Real Estate Appraiser, #46000049674 Pennsylvania Certified General Real Estate Appraiser, #GA003794 JGO/CJO/td OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH Table of Contents PART I – INTRODUCTION .......................................................................................................... 1 Executive Summary .................................................................................................................... 1 Subject Property Location........................................................................................................... 2 Date of the Study ........................................................................................................................ 3 Identification of Property ............................................................................................................ 3 Purpose & Intended Use of the Study ......................................................................................... 3 Intended User of the Study ......................................................................................................... 3 Scope of Work ............................................................................................................................ 3 Ownership & History of Property ............................................................................................... 4 Tax and Assessment Analysis ..................................................................................................... 5 PART II – PROPERTY DESCRIPTIONS ..................................................................................... 6 Land Use Regulation................................................................................................................... 6 Neighborhood Analysis .............................................................................................................. 7 Site Analysis ............................................................................................................................. 10 Proposed Improvement Analysis .............................................................................................. 11 PART III – ANALYSES & CONCLUSIONS ............................................................................. 13 Paired Sales Analysis Technique .............................................................................................. 13 Conclusion ................................................................................................................................ 16 PART IV – ADDENDUM ............................................................................................................ 17 Limiting Conditions, Assumptions, and Hypothetical Conditions ........................................... 17 Subject Property Photos ............................................................................................................ 21 Subject Property Survey and Maps ........................................................................................... 23 About Otteau Group, Inc........................................................................................................... 28 1 PART I – INTRODUCTION Executive Summary Date of Study Report: July 2, 2020 Effective Date of Study: June 15, 2020 Market Data of Study: January 1, 2015 – December 31, 2019 Geographic Study Area: Gloucester County, New Jersey (Logan Township, West Deptford Township, and Deptford Township) Synopsis: The subject of this market study is identified as Block 801, Lot 55 on the municipal tax map of Logan Township, Gloucester County, New Jersey. The site consists of 27.95-acres of agricultural land that is assessed as qualified farmland. The property is proposed for a 262,500 ft2 warehouse development, which is currently not a permitted use in the zoning district. The purpose of the market study is to determine whether the proposed warehouse development will have any adverse effect on the market value of surrounding residential properties. The intended use of the study is to provide consulting services related to a use variance application. It is also anticipated that the Township of Logan may rely upon this study in considering a use variance application. In developing this study, we have investigated home selling prices in Gloucester County, New Jersey municipalities near to or bordering warehouse development. The results of these analyses were then compared to selling prices of homes that are not bordering or near to warehouse development. Summary of Paired Data Analysis: Our analysis indicates the selling prices of homes located adjacent to warehouse development sell for a similar price as comparable homes compared further away. This can be seen in the average selling price deviation between these properties of only 0.9% (-) on an unadjusted basis, and 0.9% (+) on an adjusted basis. Also significant is that the Target Group all are adjacent to warehouse development compared to the Control Group residential homes, which are an average of 1.8 miles to the nearest warehouse development. These findings indicate there is no adverse effect on home prices resulting from their proximity to warehouse development. Conclusion: Our investigation has determined that the presence of warehouse development bordering or near to residential homes does not result in a greater discount than homes not near or bordering warehouse development. Based upon my investigation and analysis, it is my considered opinion that the proposed warehouse development will not have any adverse effect on the market value of surrounding residential properties. OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH 2 Subject Property Location Subject OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH 3 Date of the Study The date of this market study report is July 2, 2020, which identifies when the analyses and report were prepared. The effective date of the market study is June 15, 2020, which establishes the context for the analysis in terms of economic, demographic and real estate market conditions. Identification of Property The subject of this market study is identified as Block 801, Lot 55 on the municipal tax map of Logan Township, Gloucester County, New Jersey. The site consists of 27.95-acres of agricultural land that is assessed