APPRAISAL OF FORMER AUDUBON SCHOOL/ CARROLLTON COURTHOUSE PROPERTY 719 SOUTH CARROLLTON AVENUE NEW ORLEANS, LOUISIANA70118
FOR MR. LESLIE J. REY EXECUTIVE DIRECTOR PURCHASING/ANCILLARY SERVICES & TRANSPORTATION 3520 GENERAL DE GAULLE DRIVE 5TH FLOOR, ROOM 5078 NEW ORLEANS, LOUISIANA 70053 BY HENRY W. TATJE, III ARGOTE, DERBES & TATJE, LLC REPORT DATE 512 N. CAUSEWAY BLVD NOVEMBER 28, 2016 METAIRIE, LA 70001 504.830.3864 DIRECT LINE OUR FILE NUMBER 504.830.3870 FAX 16-296.003
ARGOTE, DERBES & TATJE, LLC. REAL ESTATE APPRAISAL & COUNSELING 512 N. Causeway Boulevard Metairie, Louisiana 70001 Direct Line: (504) 830-3864 Email: [email protected]
November 28, 2016 Our File No. 16-0296.003
Mr. Leslie J. Rey Executive Director Purchasing/Ancillary Services & Transportation 3520 General De Gaulle Drive 5th Floor, Room 5078 New Orleans, Louisiana 70114
RE: Appraisal of Former Audubon School/Carrollton Courthouse Property 719 South Carrollton Avenue New Orleans, Louisiana 70118 Owner: Orleans Parish School Board
Dear Mr. Rey:
In accordance with your request, I have prepared a real property appraisal of the above-referenced property, presented in a summary appraisal report format. This appraisal report sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to my opinion of the current market value of the Unencumbered Fee Simple Interest in and to the appraised property in current “As Is Condition”. Market Value, as used herein, is defined as: "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus." The property rights appraised is the Unencumbered Fee Simple Interest which is defined as: “an absolute fee; a fee without limitations to any particular class of heirs or restrictions, but subject to the limitations of eminent domain, escheat, police power, and taxation. An inheritable estate". The date as of which the current market value estimates applies is November 15, 2016 the date of my last inspection of the property. The extent of my investigation and analyses are described in the Scope of the Appraisal. The analyses and report have been prepared for the sole use of the Orleans Parish School Board, the client for this engagement and/or their assigns. The accompanying narrative report describes my conclusions and analysis. In order to understand the analyses and conclusions, the report must be read in its entirety; no part of the report is valid without the support of the other sections of the report. The appraisal, the analyses and the report are intended to comply with the provisions of the Uniform Standards of Professional Appraisal Practice (USPAP) in force as of the appraisal date, applicable to the development and reporting of this market value analysis. The report itself is intended to be consistent with the requirements of USPAP Standards Rule 2-2(a) for an appraisal report and in conformity with the requirements of the State of Louisiana for State Certified Real Estate Appraisers.
ARGOTE, DERBES & TATJE, LLC. REAL ESTATE APPRAISAL & COUNSELING 512 N. Causeway Boulevard Metairie, Louisiana 70001 Direct Line: (504) 830-3864 Email: [email protected]
Mr. Leslie J. Rey Orleans Parish School Board November 28, 2016 Page Two
The subject property consists of 8 structures containing a total building area of approximately 32,919 square feet with the main structure being a 16,900 square foot two-story Greek Revival style building constructed in 1852 as the Carrollton courthouse, but used as a public school since 1889. Site improvements include approximately 9,000 square feet of asphalt paved play yard and driveway, 1,600 square feet of covered walkways connectors with wrought iron and chain link perimeter and interior fencing. The buildings and other improvements occupy an entire 275' by 275' city block containing about 75,625 square feet. Orleans Parish School Board is the client in this assignment. The intended user of this report is Orleans Parish School Board and/or its assigns. The intended use is to assist in developing a strategic plan and disposition program for the property. The value opinions reported herein are subject to the definitions, Assumptions and Limiting Conditions, and Certification contained in this report. The acceptance of this appraisal assignment and the completion of the appraisal report submitted herewith are contingent on the General Assumptions and Limiting Conditions stated in the body of the report. Based upon my analysis and reasoning contained herein, it is my opinion that the Unencumbered Fee Simple Interest in and to the Appraised Property in its "As Is Condition" has an estimated current market value, as of November 15, 2016, of:
THREE MILLION FIFTY THOUSAND AND NO/100 DOLLARS ($3,050,000.00)
Enclosed is my report, including exhibits, which describes my method of approach and contains all the pertinent data gathered and used by me to reach a final value conclusion.
No responsibility has been assumed for matters legal in nature, nor has the title been examined by the appraiser. The value estimate arrived at herein is made as though the property were free from unknown adverse encumbrances and under responsible ownership.
My research of recent sales of comparable properties to the subject, in similarly competitive market locations indicates that typical marketing and exposure times for a property like the appraised property in this market at the value concluded herein appear to both be between 6 and 12 months.
This is to certify that I have no interest, present or contemplated, in the appraised property. My opinions of value are subject to the Assumptions and Limiting Conditions which are stated in the body of the report. This is to certify that this appraisal was not made contingent upon a minimum value, range of values or approval of a loan.
ARGOTE, DERBES & TATJE, LLC. REAL ESTATE APPRAISAL & COUNSELING 512 N. Causeway Boulevard Metairie, Louisiana 70001 Direct Line: (504) 830-3864 Email: [email protected]
Mr. Leslie J. Rey Executive Director Purchasing/Ancillary Services & Transportation November 28, 2016 Page Three
This letter of transmittal is not considered valid if separated from this report, and must be accompanied by all sections of this report as outlined in the Table of Contents, in order for the value opinions set forth above to be valid.
Respectfully submitted,
Henry W. Tatje, III, MAI Louisiana Certified General Real Estate Appraiser License #G-0321
Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 TABLE OF CONTENTS
Cover Page Letter of Transmittal TABLE OF CONTENTS ...... 1 SUMMARY OF SALIENT FACT AND CONCLUSIONS ...... 2 GENERAL ASSUMPTIONS AND LIMITING CONDITIONS ...... 4 CERTIFICATION ...... 9 INTRODUCTION ...... 10 Client and Other Intended Users of the Appraisal ...... 10 Intended Use of the Appraisal ...... 10 Real Estate Identification ...... 10 Real Property Interest Appraised ...... 10 Definition of Market Value ...... 10 Effective Date of Value...... 10 Date of Report ...... 10 Scope of Work ...... 11 AREA MAP ...... 13 NEIGHBORHOOD MAP ...... 14 NEIGHBORHOOD DATA ...... 15 TITLE DATA ...... 18 SITE DATA ...... 19 FLOOD ZONE MAP ...... 20 ZONING ...... 21 ZONING MAP...... 23 AERIAL VIEW OF SUBJECT ...... 24 DESCRIPTION OF IMPROVEMENTS ...... 25 SUBJECT PHOTOGRAPHS ...... 28 HIGHEST AND BEST USE ANALYSIS ...... 33 SALES COMPARISON APPROACH TO VALUE ...... 37 "SITE AS THOUGH VACANT LAND" ...... 37 "AS IMPROVED" ...... 49 ADDENDA ...... QUALIFICATIONS OF THE APPRAISER......
ARGOTE, DERBES, & TATJE, LLC -1- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 SUMMARY OF SALIENT FACT AND CONCLUSIONS
OWNER: Orleans Parish School Board LOCATION: 719 South Carrollton Avenue New Orleans, Louisiana 70118
LEGAL DESCRIPTION: All of Square 84 bounded by South Carrollton Avenue, Maple, Short and Hampson Streets, Seventh Municipal District, Orleans Parish, Louisiana LAND AREA: 75,625 square feet approximately 1.736 acres
PURPOSE OF THE APPRAISAL: To estimate the Current Market Value of the Fee Simple Interest in the subject property in existing condition for possible sale proposes. PROPERTY RIGHTS APPRAISED: The property rights appraised are of the Fee Simple Estate. ZONING: HU-RD1 Two-Family Residential District FLOOD ZONE: X; Area of reduced flood risk due to levee BRIEF PROPERTY DESCRIPTION: The subject property consists of 8 structures containing a total building area of approximately 32,919 square feet. The main structure is an approximately 16,900 square foot two-story Greek Revival style building which, according to information provided, was constructed beginning in 1852 for use as the Carrollton courthouse. It had been used as a school building since it became the John McDonogh No. 23 School in 1889. Various buildings have been added over time including a 100+ year old raised one-story frame building containing 1,510 square feet with an attached 349 square foot ground level storage building; a one-story masonry cafeteria building and a locker room building containing about 5,200 square feet. There are additionally five fair quality raised one-story "portable" classroom buildings reportedly installed on the site between 1958 and 1962 containing a total area of about 8,960 square feet. The main structure is structurally sound but in fair condition with evidence of substantial deferred maintenance and some termite damage. The attached cafeteria and locker rooms are structurally sound and in average to fair condition with numerous items of deferred maintenance. The 100+ year old wood frame building was structurally sound and in average condition at the time of inspection. The five portable buildings were in fair to poor condition and have outlived their economic lives. Site improvements include approximately 9,000 square feet of asphalt paved play yard and driveway, 1,600 square feet of covered walkways connectors with wrought iron and chain link perimeter and interior fencing.
ARGOTE, DERBES, & TATJE, LLC -2- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 SUMMARY OF SALIENT FACT AND CONCLUSIONS (Continued)
HYPOTHETICAL CONDITIONS: None
EXTRAORDINARY The value conclusion arrived at herein assumes approval ASSUMPTIONS: of a multifamily/condominium use of the former Carrollton Courthouse building.
HIGHEST AND BEST USE As Vacant Single Family or Two-Family Residential development
As Improved Conversion of Historic 162-year old 16,900 square foot building, on a 75' by 275' 20,625 square foot portion of the site fronting South Carrollton Avenue with rear parking fronting Short Street into apartments and/or condominiums. Demolition of the remaining improvements and resubdivision of the remaining vacant land area into separate residential lots.
EFFECTIVE DATE OF VALUE: November 15, 2016
APPROACHES TO VALUE
Cost Approach N/A Sales Comparison Approach $3,050,000 Income Approach N/A
FINAL VALUE CONCLUSION: $3,050,000
APPRAISER: Henry W. Tatje, III, MAI Louisiana Certified General Real Estate Appraiser License #G-0321
ARGOTE, DERBES, & TATJE, LLC -3- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 GENERAL ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal is subject to the following limiting conditions:
1. The legal description – if furnished – is assumed to be correct. 2. No responsibility is assumed for legal matters, questions of survey or title, soil or subsoil conditions, engineering, availability or capacity of utilities, or other similar technical matters. The appraisal does not constitute a survey of the property appraised. All existing liens and encumbrances have been disregarded and the property is appraised as though free and clear, under responsible ownership and competent management unless otherwise noted.
3. Unless otherwise noted, the appraisal will value the property as though free of contamination. Argote, Derbes & Tatje, LLC has not conducted any hazardous materials or contamination inspection of any kind. It is recommended that the client hire an expert if the presence of hazardous materials or contamination poses any concern.
4. Unless otherwise noted, it is assumed there are no encroachments, zoning violations or restrictions existing in the subject property.
5. The appraiser is not required to give testimony or attendance in court by reason of this appraisal, unless previous arrangements have been made. Unless expressly specified in the engagement letter, the fee for this appraisal does not include the attendance or giving of testimony by Appraiser at any court, regulatory, or other proceedings, or any conferences or other work in preparation for such proceeding. If any partner or associate of Argote, Derbes & Tatje, LLC is asked or required to appear and/or testify at any deposition, trial, or other proceeding about the preparation, conclusions or any other aspect of this assignment, client shall compensate Appraiser for the time spent by the partner or associate in appearing and/or testifying and in preparing to testify according to the Appraiser’s then current hourly rate plus reimbursement of expenses.
6. The values for land and/or improvements, as contained in this report, are constituent parts of the total value reported and neither is to be used in making a summation appraisal of a combination of values created by another appraiser. Either is invalidated if so used.
7. The dates of value to which the opinions expressed in this report apply are set forth in this report. I assume no responsibility for economic or physical factors occurring at some point at a later date, which may affect the opinions stated herein. The forecasts, projections, or operating estimates contained herein are based on current market conditions and anticipated short-term supply and demand factors and are subject to change with future conditions.
8. The sketches, maps, plats and exhibits in this report are included to assist the reader in visualizing the property. The appraiser has made no survey of the property and assumed no responsibility in connection with such matters.
ARGOTE, DERBES, & TATJE, LLC -4- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 GENERAL ASSUMPTIONS AND LIMITING CONDITIONS (Continued)
9. The information, estimates and opinions, which were obtained from sources outside of this office, are considered reliable. However, no liability for them can be assumed by the appraiser.
10. Possession of this report, or a copy thereof, does not carry with it the right of publication. Neither all, nor any part of the content of the report, or copy thereof (including conclusions as to property value, the identity of the appraisers, professional designations, reference to any professional appraisal organization or the firm with which the appraisers are connected), shall be disseminated to the public through advertising, public relations, news, sales, or other media without prior written consent and approval.
11. No claim is intended to be expressed for matters of expertise that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers. The appraiser claims no expertise in areas such as, but not limited to, legal, survey, structural, environmental, pest control, mechanical, etc.
12. This appraisal was prepared for the sole and exclusive use of the client for the function outlined herein. Any party who is not the client or intended user identified in the appraisal or engagement letter is not entitled to rely upon the contents of the appraisal without express written consent of Argote, Derbes & Tatje, LLC and Client. The Client shall not include partners, affiliates, or relatives of the party addressed herein. The appraiser assumes no obligation, liability or accountability to any third party.
13. Distribution of this report is at the sole discretion of the client, but no third-parties, not listed as an intended user on the face of the appraisal or the engagement letter may rely upon the contents of the appraisal. In no event shall client give a third-party a partial copy of the appraisal report. We will make no distribution of the report without the specific direction of the client.
14. This appraisal shall be used only for the intended use stated herein, unless expressly authorized by Argote, Derbes & Tatje, LLC.
15. This appraisal shall be considered in its entirety. No part thereof shall be used separately or out of context.
16. Unless otherwise noted in the body of this report, this appraisal assumes that the subject property does not fall within the areas where mandatory flood insurance is effective. Unless otherwise noted, The appraiser has not completed nor has the appraiser contracted to have completed an investigation to identify and/or quantify the presence of non-tidal wetland conditions on the subject property. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination.
ARGOTE, DERBES, & TATJE, LLC -5- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 GENERAL ASSUMPTIONS AND LIMITING CONDITIONS (Continued)
17. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures which would render it more or less valuable. No responsibility is assumed for such conditions or for engineering which may be required to discover them.
18. My inspection included an observation of the land and improvements thereon only. It was not possible to observe conditions beneath the soil or hidden structural components within the improvements. I inspected the buildings involved, and reported damage (if any) by termites, dry rot, wet rot, or other infestations as a matter of information, and no guarantee of the amount or degree of damage (if any) is implied. Condition of heating, cooling, ventilation, electrical and plumbing equipment is considered to be commensurate with the condition of the balance of the improvements unless otherwise stated.
19. This appraisal does not guarantee compliance with building code and life safety code requirements of the local jurisdiction. It is assumed that all required licenses, consents, certificates of occupancy or other legislative or administrative authority from any local, state or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value conclusion contained in this report is based unless specifically stated to the contrary.
20. When possible, I have relied upon building measurements provided by the client, owner, or associated agents of these parties. In the absence of “as-built” plans provided to me, I have relied upon my own measurements of the subject improvements. I followed typical appraisal industry methods; however, I recognize that some factors may limit my ability to obtain accurate measurements including, but not limited to, property access on the day of inspection, basements, fenced/gated areas, grade elevations, greenery/shrubbery, uneven surfaces, multiple story structures, obtuse or acute wall angles, immobile obstructions, etc. Professional building area measurements of the quality, level of detail, or accuracy of professional measurement services are beyond the scope of this appraisal assignment.
21. I have attempted to reconcile sources of data discovered or provided during the appraisal process. Ultimately, the measurements that are deemed by me to be the most accurate and/or reliable are used within this report. While the measurements and any accompanying sketches are considered to be reasonably accurate and reliable, I cannot guarantee their accuracy. Should the client desire a greater level of measuring detail, they are urged to retain the measurement services of a qualified professional (space planner, architect or building engineer). I reserve the right to use an alternative source of building size and amend the analysis, narrative and concluded values (at additional cost) should this alternative measurement source reflect or reveal substantial differences with the measurements used within the report.
22. In the absence of being provided with a detailed land survey, I have used the deed documents to ascertain the physical dimensions and acreage of the property. Should a survey prove this information to be inaccurate, I reserve the right to amend this appraisal (at additional cost) if substantial differences are discovered.
ARGOTE, DERBES, & TATJE, LLC -6- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 GENERAL ASSUMPTIONS AND LIMITING CONDITIONS (Continued)
23. Unless otherwise stated in this report, the value conclusion is predicated on the assumption that the property is free of contamination, environmental impairment or hazardous materials. Unless otherwise stated, the existence of hazardous material was not observed by the appraiser and the appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required for discovery. The client is urged to retain an expert in this field, if desired.
24. The Americans with Disabilities Act (“ADA”) became effective January 26, 1992. I have not made a specific compliance survey of the property to determine if it is in conformity with the various requirements of the ADA. It is possible that a compliance survey of the property, together with an analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this could have a negative effect on the value of the property. Since I have no direct evidence relating to this issue, I did not consider possible noncompliance with the requirements of ADA in developing an opinion of value.
25. This appraisal applies to the land and building improvements only. The value of trade fixtures, furnishings, and other equipment, or subsurface rights (minerals, gas, and oil) were not considered in this appraisal unless specifically stated to the contrary.
26. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated, unless specifically stated to the contrary.
27. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute prediction of future operating results. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance.
28. Any estimate of insurable value, if included within the scope of work and presented herein, is based upon figures developed consistent with industry practices. However, actual local and regional construction costs may vary significantly from our estimate and individual insurance policies and underwriters have varied specifications, exclusions, and non-insurable items. As such, we strongly recommend that the Client obtain estimates from professionals experienced in establishing insurance coverage. This analysis should not be relied upon to determine insurance coverage and we make no warranties regarding the accuracy of this estimate.
ARGOTE, DERBES, & TATJE, LLC -7- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 GENERAL ASSUMPTIONS AND LIMITING CONDITIONS (Continued)
29. The data gathered in the course of this assignment (except data furnished by the Client) shall remain the property of the Appraiser. The appraiser will not violate the confidential nature of the appraiser-client relationship by improperly disclosing any confidential information furnished to the appraiser. Notwithstanding the foregoing, the Appraiser is authorized by the client to disclose all or any portion of the appraisal and related appraisal data to appropriate representatives of the Appraisal Institute if such disclosure is required to enable the appraiser to comply with the Bylaws and Regulations of such Institute now or hereafter in effect.
30. If any claim is filed against any of Argote, Derbes & Tatje, LLC, its affiliates, officers or employees, or the firm providing this report, in connection with, or in any way arising out of, or relating to, this report, or the engagement of the firm providing this report, then (1) under no circumstances shall such claimant be entitled to consequential, special or other damages, except only for direct compensatory damages and (2) the maximum amount of such compensatory damages recoverable by such claimant shall be the amount actually received by the firm engaged to provide report.
31. Argote, Derbes & Tatje, LLC shall have no obligation, liability, or accountability to any third party. Any party who is not the “client” or intended user identified on the face of the appraisal or in the engagement letter is not entitled to rely upon the contents of the appraisal without the express written consent of Argote, Derbes & Tatje, LLC. “Client” shall not include partners, affiliates, or relatives of the party named in the engagement letter. Client shall hold Argote, Derbes & Tatje, LLC and its members and associates harmless in the event of any lawsuit brought by any third party, lender, partner, or part-owner in any form of ownership or any other party as a result of this assignment. The client also agrees that in case of lawsuit arising from or in any way involving these appraisal services, client will hold Argote, Derbes & Tatje, LLC harmless from and against any liability, loss, cost, or expense incurred or suffered by Argote, Derbes & Tatje, LLC in such action, regardless of its outcome.
32. Acceptance and/or use of this appraisal report constitutes acceptance of the foregoing General Assumptions and Limiting Conditions as well as any Special Assumptions and Limiting Conditions contained in this report.
EXTRAORDINARY ASSUMPTIONS
1. The value conclusion arrived at herein assumes approval of a multifamily/condominium use of the former Carrollton Courthouse building.
ARGOTE, DERBES, & TATJE, LLC -8- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 CERTIFICATION
I certify that, to the best of my knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. 8. I have made a personal inspection of the property that is the subject of this report. 9. No one has provided significant real property appraisal assistance to the person signing this certification. 10. The reported analyses, 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, which include the Uniform Standards of Professional Appraisal Practice. 11. The use of this report is subject to the requirements of the state of Louisiana relating to review by the Louisiana Real Estate Appraisers Board of Certification and the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 12. As of the date of this report, I have completed the requirements of the continuing education program of the Appraisal Institute. 13. I have not provided previous appraisal services regarding the subject property within the three years prior to this assignment.
Henry W. Tatje, III, MAI Louisiana Certified General Real Estate Appraiser License #G-0321
ARGOTE, DERBES, & TATJE, LLC -9- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 INTRODUCTION
Client and Other Intended Users of the Appraisal The client in this assignment is Orleans Parish School Board and/or its assigns. The intended users of this report are Orleans Parish School Board and/or its assigns. Intended Use of the Appraisal The intended use is to assist the Orleans Parish School Board in developing a strategic plan and disposition program for the property. Real Estate Identification The subject property consists of a former public school property containing multiple buildings which has been vacant since 2013. Real Property Interest Appraised I have appraised the Fee Simple Interest in and to the appraised property. "Fee Simple Interest" is defined as: “an absolute fee; a fee without limitations to any particular class of heirs or restrictions, but subject to the limitations of eminent domain, escheat, police power, and taxation. An inheritable estate". Definition of Market Value Market Value, as herein used, is defined by the United States Treasury Department, Comptroller of the Currency 12 CFR part 34, § 34.2 (f) as, "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and acting in what they consider their own best interest; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale." Effective Date of Value The effective date of the current market value estimate is as of November 15, 2016 the date of my last inspection of the subject site. Date of Report The date of this report is November 28, 2016 the date of the letter of transmittal.
ARGOTE, DERBES, & TATJE, LLC -10- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 INTRODUCTION (Continued) Scope of Work The scope of work includes all steps taken in the development of the appraisal. This includes 1) the extent to which the subject property is identified, 2) the extent to which the subject property is inspected, 3) the type and extend of data researched, 4) the type and extend of analysis applied, and the type of appraisal report prepared. These items are discussed as follows:
Extent to Which the Property Is Identified Legal Characteristics The subject was legally identified via the Orleans Parish Conveyance Records. Physical Characteristics The subject was physically identified via an exterior and interior inspection.
Extent to Which the Property Is Inspected I inspected the subject site on November 15, 2016. I have relied upon the legal description provided by the Orleans Parish School Board and is assumed to be accurate. Type and Extent of the Data Researched I researched and analyzed: 1) market area data, 2) property-specific, market-analysis data, 3) zoning and land-use data, and 4) current data on comparable listings, sales, and rentals in the competitive market area. Real Estate Brokers and Leasing Agents were consulted for additional information, such as verification of sales, leasing and other data. Type and Extent of Analysis Applied An analysis is made of the subject property to estimate its highest and best use in the market area as of the date of appraisal. Next, the data is analyzed by comparison of the criteria described above with respect to the subject and comparables. Additionally, the area and neighborhood in which the property is located is analyzed. In the valuation of real estate, the normal procedure is to apply the three commonly accepted approaches to value, i.e., the Cost Approach, the Income Capitalization Approach, and the Sales Comparison Approach. The Cost Approach consists of a study of comparable land sales to estimate the current market value of the appraised site consistent with its highest and best use. Then, the depreciated replacement cost of all buildings and site improvements are added to the land value as an estimate of the total value of the property. The Cost Approach was not considered a necessary approach to produce credible appraisal results in light of old age, fair condition and probable redevelopment highest and best use of one of the buildings on the site. The Sales Comparison Approach relies upon a comparison of sales of similar properties to the appraised property. These comparisons are based upon the physical and economic similarities between the properties. If adequate data is available, this method presents the most direct and often best evidence of the market value of the appraised property.
ARGOTE, DERBES, & TATJE, LLC -11- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 INTRODUCTION (Continued)
Type and Extent of Analysis Applied (Continued) The Income Capitalization Approach involves a study of rental and expense data for the subject and comparable properties to estimate the income the appraised property is capable of generating. Then, this income is converted into a value estimate through a process of capitalization and/or discounting. The value conclusions reached under each appropriate method are subsequently reconciled and final market value estimates for the subject property in current “As Is Condition” is set forth. In this case, the property being appraised is a vacant former school property with older buildings that are in generally fair to poor condition. The highest and best use of the property is for renovation and conversion of the historic Carrollton Courthouse building to a multifamily/condominium residential use with demolition of the remaining buildings/improvements and resubdivision of the remaining land area into separate residential lots. The property has no income producing potential in its existing configuration and as such the Sales Comparison Approach to Value is the only one of the approaches to value utilized herein.
Type of Appraisal and Report Option The result of my analysis is presented in a Narrative Report format.
Use of Real Estate as of the Effective Date of Value At present the property is a vacant school complex.
ARGOTE, DERBES, & TATJE, LLC -12- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 AREA MAP
ARGOTE, DERBES, & TATJE, LLC -13- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 NEIGHBORHOOD MAP
ARGOTE, DERBES, & TATJE, LLC -14- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003
NEIGHBORHOOD DATA
The subject property is located ±4 miles southwest of the Central Business District in the Carrollton area, also known as the Riverbend, of Uptown New Orleans, Louisiana. The area was incorporated as a town in 1845, became a city in 1859 and was the Jefferson Parish seat for 1852 until 1874. When Carrollton was annexed to the City of New Orleans the Jefferson Parish seat moved to Gretna on the west bank of the Mississippi River. The most distinctive building from this era is the Greek Revival Parish Courthouse which was constructed in 1855 and is the subject of this appraisal report. Historically the boundaries of the city of Carrollton were the Mississippi River, the downriver border of Jefferson Parish, Fig Street, and Lowerline Street. The Carrollton Historic District (added to the National Registry of Historic Places in 1987) is bounded by Lowerline Street, the Mississippi River, Monticello Avenue and Earhart Boulevard. The main north south street in the neighborhood is Carrollton Avenue, a tree lined street with two lanes on each side of a central median running from the Mississippi River to City Park. The primary east/west though fare is St. Charles Avenue which transverses all of Uptown New Orleans from the Mississippi River to Canal Street with the famous St. Charles Street car line down it center tree lined median. In the immediate subject area, Maple Street is a secondary east/west route with a dining, shopping and other commercial uses catering to the neighborhood. The Carrollton area is also the location of two of the largest universities in the region, Tulane and Loyola, with many of the students and facility residing in the neighborhood. The immediate area of the appraised property is developed with mostly single and two to four family multifamily residential homes with some low density commercial development along Carrollton Avenue, Maple Street and St. Charles Avenue. The neighborhood is fully developed with few vacant sites or buildings. The housing market is dominated by renters who occupy ±62% of dwellings. Based on information compiled from the Gulf South Real Estate Information Network, Inc.'s MLS the past year the average price per square foot for a single family home in the neighborhood increased 9% while the number of days the house was publically available for sale fell.
Single Family Residential Sales Carrollton Historic District Number Avg Days on Period Average Price Average Size Avg Price/SF of Units Market Current Listings 72 $417,893 1,851 $225.76 70
2016 Year to Date 139 $365,532 1,764 $207.22 49
2015 172 $338,041 1,757 $192.40 58
On the following page is a demographic profile of the Carrollton Historic District which shows population growth of 1,322 since 2010, an increase of over 8%, with average household income levels slightly above that for Orleans Parish as a whole.
ARGOTE, DERBES, & TATJE, LLC -15- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 NEIGHBORHOOD DATA (Continued)
Demographic and Income Profile
Carrollton Historic District Prepared by Esri Area: 1.81 square miles
Summary Census 2010 2016 2021 Population 16,191 17,513 18,617 Households 7,416 8,126 8,702 Families 3,371 3,577 3,768 Average Household Size 2.16 2.13 2.12 Owner Occupied Housing Units 3,208 3,059 3,289 Renter Occupied Housing Units 4,208 5,067 5,413 Median Age 34.9 35.9 37.0 Trends: 2016 - 2021 Annual Rate Area State National Population 1.23% 0.77% 0.84% Households 1.38% 0.85% 0.79% Families 1.05% 0.68% 0.72% Owner HHs 1.46% 0.85% 0.73% Median Household Income 1.08% 2.12% 1.89% 2016 2021 Households by Income Number Percent Number Percent Carrollton Historic District Median Household Income $38,023 $40,128 Average Household Income $63,866 $69,037 Per Capita Income $30,084 $32,696
Orleans Parish Median Household Income $37,227 Average Household Income $62,432 Per Capita Income $26,908
State of Louisiana Median Household Income $44,609 Average Household Income $65,016 Per Capita Income $25,497
Census 2010 2016 2021 Race and Ethnicity Number Percent Number Percent Number Percent White Alone 7,943 49.1% 8,980 51.3% 9,909 53.2% Black Alone 7,221 44.6% 7,350 42.0% 7,365 39.6% American Indian Alone 55 0.3% 55 0.3% 56 0.3% Asian Alone 366 2.3% 409 2.3% 449 2.4% Pacific Islander Alone 7 0.0% 8 0.0% 9 0.0% Some Other Race Alone 243 1.5% 284 1.6% 335 1. 8 % Two or More Races 356 2.2% 428 2.4% 493 2.6%
Hispanic Origin (Any Race) 823 5.1% 968 5.5% 1, 13 5 6.1% Data Note: Income is expressed in current dollars.
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2016 and 2021. November 08, 2016
ARGOTE, DERBES, & TATJE, LLC -16- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 NEIGHBORHOOD DATA (Continued)
The Carrollton area is characterized by a mixture of older small to medium sized improvements which vary in age, style and condition and include mixed commercial and residential uses. Commercial uses include a variety of small retail shops, service establishments, restaurants, bars and offices. South Carrollton Avenue, along with most of Uptown New Orleans, continues to experience strong demand for all property types. The neighborhood is one with an increasing population, growing incomes, and increasing real estate prices, with these trends expected to continue into the near future.
ARGOTE, DERBES, & TATJE, LLC -17- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003
TITLE DATA Ownership of Record
Orleans Parish School Board
Legal Description
All of Square 84 bounded by South Carrollton Avenue, Maple, Short and Hampson Streets Seventh Municipal District, Orleans Parish, Louisiana
Sales History of the Subject Property
There have been no conveyances of the subject property within the five-year period preceding the effective date of this appraisal. The last transfer was from the City of New Orleans to the Orleans Parish School Board on April 4, 1957.
Real Estate Taxes and Assessments
The Orleans Parish Assessor's records indicate the following for the subject property:
OWNER: Orleans Parish School Board Tax Bill Number 103103602 Assessed Total Estimated Building Total Assessed Year Land Value Building Assessed Real Estate Value Value Land Value Total Value Value Taxes Mileage 2017 $1,900,400 $411,800 $2,312,200 $190,040 $61,770 $251,810 151.17 $38,066.12 2016 $1,897,500 $0* $1,897,500 $189,750 $0* $189,750 148.77 $28,229.11 2015 $437,700 $0* $437,700 $43,770 $0* $84,950 148.77 $12,638.01 * Building assessmentwas omitted erroneously. Corrected for 2017
The 2017 assessment implies a market value basis of $2,312,200 for the entire subject property. Based upon the value concluded herein for the property, this is well below what the assessment should be.
The subject property is owned by a tax exempt nonprofit entity and thus, as per state law, is exempt from all real estate taxes.
ARGOTE, DERBES, & TATJE, LLC -18- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 SITE DATA Size and Shape
The subject site consists of the entire square block measuring 275' by 275' with street frontage on South Carrollton Avenue, Maple, Short and Hampson Streets. The site contains a total area of 75,625 square feet.
Elevation and Utilities
The site is level and just above the adjoining street grades. All public utilities are available and connected to the property, including water, sanitary sewerage, natural gas, and electricity.
Easements/Encroachments
There are no apparent adverse easements or encroachments known or observed on the subject site. The site is subject to typical utility servitudes which do not adversely affect the use or value of same.
Flood Zone
According to flood zone maps prepared by the Federal Emergency Management Agency, Flood Zone Map 22071C0209F dated 09-30-2016, the appraised site is located Moderate Flood Hazard Zone "X"; Area with reduced flood risk due to levee.
Zone X, is described by FEMA as: "Areas between the limits of the base flood and the 0.2-percent-annual-chance (or 500-year) flood. Areas outside the 100-year floodplains, areas of 100-year sheet flow flooding where average depths are less than 1 foot, areas of 100-year stream flooding where the contributing drainage area is less than 1 square mile, or areas protected from the 100-year flood by levees. No Base Flood Elevations or depths are shown within this zone." "Flood insurance is not required but recommended."
ARGOTE, DERBES, & TATJE, LLC -19- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 FLOOD ZONE MAP
ARGOTE, DERBES, & TATJE, LLC -20- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 ZONING
The Comprehensive Zoning Ordinance for the City of New Orleans, assigns the zoning classification "HU-RD1; Two-Family Residential District" to the appraised property.
The HU-RD1 Two-Family Residential District is intended to provide for the creation and maintenance of urban neighborhoods consisting of compact residential areas having a mix of housing types. The district accommodates two-family developments on smaller lots in older, more densely populated sections of the City. Limited non-residential uses such as places of worship, historic neighborhood commercial establishments, and recreational facilities that are compatible with surrounding residential neighborhoods may be allowed.
Permitted Uses Residential Uses permitted include single and two-family dwellings, townhouses (with conditional approval) small group homes and residential care facilities Commercial Uses are not permitted, however conditional use as a neighborhood commercial establishments is allowed for art galleries/studios, daycare centers, offices, specialty restaurants, personal service or retail establishments. These neighborhood establishments are limited to 3,000 square feet of gross floor area on the first floor of existing structures which are non- residential in construction and original use. Institutional permitted uses include convents, monasteries, primary and secondary educational facilities and places of worship. Other permitted uses include agriculture (except livestock), parks, playgrounds and pumping stations.
Bulk and Yard Regulations
Non- HU-RD1 Single Family Two- Family Multi- Family Residential Minimum Lot Area 2,250 SF 2,200 SF 2,000 SF 10,000 SF Minimum Lot Width 30' 40' 50' Minimum Lot Depth 90' 90' 90' Maximum Height 35' 35' 35' Max Impervious Surface 40% 40% 40% N/A Minimum Open Space 30% 30% 30% Front Yard Depth Max 20' Max 20' Max 20' Side Yard Widths 3' 3' 5-10' Rear Yard Depth 20% of depth 20% of depth 20% of depth
ARGOTE, DERBES, & TATJE, LLC -21- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 ZONING (Continued)
Off-Street Loading and Parking
Parking is prohibited in the required front and corner side yards. Parking is prohibited in front of the building line or within five (5) feet of the front property line when located within a corner side yard. No off-street parking is required for single and two-family residential dwellings on lots of 30' or less in width, otherwise the requirement is one space per dwelling unit. One off-street loading space is required for multifamily residential uses from 20,000 to 100,000 square feet of gross floor area.
Zoning Conformity
The subject site is improved with buildings most recently used as a school. These building are vacant but use of the property as a school is a permitted use.
ARGOTE, DERBES, & TATJE, LLC -22- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 ZONING MAP
ARGOTE, DERBES, & TATJE, LLC -23- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 AERIAL VIEW OF SUBJECT
ARGOTE, DERBES, & TATJE, LLC -24- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 DESCRIPTION OF IMPROVEMENTS General
The subject property consists of 8 structures containing a total building area of approximately 32,919 square feet with the main structure being a two-story Greek Revival style building completed in 1855 for use as the former Carrollton courthouse, but used as a school building since 1889. The two-story ±16,900 square foot School/former Carrollton Courthouse Building was designed by one of New Orleans’ most noteworthy architects, Henry Howard, in the Greek Revival style. Henry Howard was commissioned to design the building in 1852 as a replacement of a smaller courthouse building on the same site. Construction on the new building began in 1854 and was completed in 1855. The building has cement plaster over double brick exterior walls, with interior brick and wood frame supporting walls and arches and a limestone masonry foundation supported by brick footings. There is a wood trussed roof which was originally covered with 10×20 inch Welsh but has since been replaced with a bitumen seal tab roof. Interior walls are a mix of drywall and plaster over brick and/or wood framing with ceramic tile 6' wainscoting in the bathrooms. Most of the original yellow pine 5 inches wide plank flooring remains in place, with ceramic tile flooring in the restrooms and some tile and the foyer which has tile. The building has 16' high interior ceilings with beaten tin plate ceiling finishes behind a dropped ceiling grid with 2' by 2' acoustical tile panels, with suspended florescent lighting, and double hung wood windows. The building has a central radiant heating system with window unit air conditioners. The Cafeteria Building is connected to the School/former Courthouse building by way of a raised enclosed hallway with two ground level locker rooms added at a later date, all containing a total area of 5,200 square feet. The Cafeteria building itself is composed of an 43.5' by 61.5' Annex building, constructed circa 1925, on brick piers, with stucco over brick exterior walls, steel support columns and a hip shingle roof. A 27' by 61.5' addition was made to the original building (late 1950's early 1960's) along with the enclosed hallway and locker rooms. These are of concrete block construction on a concrete slab with an asphalt shingle mansard and flat built-up section. Interior finishes are painted drywall and concrete block walls, acoustical tile ceilings (dropped ceiling panels in some areas) and vinyl tile flooring. The buildings have roof mounted central air-conditioning and heating units supplemented by suspended radiant heaters. The site also has five "portable" buildings, installed in the early 1960's, containing a total of 8,960 square feet and herein identified as Buildings 1-5. These are prefabricated wood frame buildings on concrete block piers with pitched asphalt roofs. Interior finishes are painted wood walls and ceilings with vinyl tile flooring. These buildings have thru wall window unit air-conditioners. Building 6 is a ±1,510 square foot wood frame classroom building (est 1920' construction) on brick piers with an asphalt shingled hip roof. Interior finishes are painted drywall walls, dropped acoustical tile ceilings, vinyl tile flooring with thru wall window unit air conditioners. There is a concrete block ground level storage area of about 349 square feet attached to the Hampson Street side of this building. Site Improvements Site improvements include approximately 9,000 square feet of asphalt paved play yard and driveway, 1,600 square feet of covered walkways and wrought iron and chain link perimeter and interior fencing.
ARGOTE, DERBES, & TATJE, LLC -25- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 DESCRIPTION OF IMPROVEMENTS (Continued)
Condition/Needed Repairs
School/former Carrollton Courthouse Building - Structurally sound, but in overall fair condition with evidence of some termite damage as well as subsidence. Electrical and plumbing systems are dated and in need of complete overhaul or replacement. Interior floors, walls and ceilings are in need of repair, replacement and painting.
The Cafeteria Building with connecting Hallway and Lockers - Overall average to fair condition but in need of cosmetic repairs and maintenance and updated or new plumbing and electrical systems.
The "Portable" Buildings (1-5) are in fair to poor condition and should be demolished having outlived their economic lives.
Building 6 is an older wood frame building which appears to be in average to fair condition.
ARGOTE, DERBES, & TATJE, LLC -26- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 SITE/BUILDING PLAN
ARGOTE, DERBES, & TATJE, LLC -27- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 SUBJECT PHOTOGRAPHS
Front View Main Building Rear View Main Building
Main Building looking north from Hampson Street
View Looking west along Maple Street with Cafeteria on the right
ARGOTE, DERBES, & TATJE, LLC -28- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 SUBJECT PHOTOGRAPHS (Continued)
Cafeteria/Locker Building Portable Building 3
Portable Building 1 Portable Building 2
Side Building 6 Rear Building 6 and Storage Building
ARGOTE, DERBES, & TATJE, LLC -29- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 SUBJECT PHOTOGRAPHS (Continued)
First Floor Main Building
First Floor Restroom Main Building
First Floor Classroom Termite Damage
ARGOTE, DERBES, & TATJE, LLC -30- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 SUBJECT PHOTOGRAPHS (Continued)
Hallway/Lockers Locker Room
Cafeteria
Classroom Library
ARGOTE, DERBES, & TATJE, LLC -31- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 SUBJECT PHOTOGRAPHS (Continued)
Tin Ceiling Second Floor Termite Damage
Stairwells
Typical Interior Portable Buildings
ARGOTE, DERBES, & TATJE, LLC -32- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 HIGHEST AND BEST USE ANALYSIS
“Highest and Best Use” is defined in The Dictionary of Real Estate Appraisal, Fifth Edition, as:
“The reasonably probable and legal use of vacant land or an improved property, that is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity.”
This use must be logical, likely, reasonably probable, and proximate and not such as is merely possible. Size, location, neighborhood character and trend of development are pertinent to the highest and best use of the site. The uses permitted by the Zoning Ordinance are also controlling factors. With many properties, the highest and best use of the property is the one permitted by zoning. However, the Zoning Ordinance could permit a use which is more intense than would be reasonable for the site and there could be a possibility that the zoning could be changed to a higher or lower density ordinance. While normally the legality and physical adaptability of the site is apparent, the most profitable use is sometimes difficult to ascertain. There are typically two aspects of the highest and best use estimation -- one being for the site "as though vacant and available for development". Later, if applicable, the total property, including existing improvements, is analyzed. Basically, there are four major tests that appraisers utilize in estimating the Highest and Best Use of the vacant or improved site. These are: 1. The use must be legally permissible -- private restrictions (protective covenants), zoning regulations, building codes, and easements may restrict development of a site to a certain use:
2. The use must be physically suitable -- physical characteristics, such as location, size, topography, soil and sub-soil conditions, drainage and access can limit utilization;
3. The use must be financially feasible -- the proposed use must produce an income, or return, equal to or greater than the amount needed to satisfy operating expenses, financial obligations, and capital amortization;
4. The use must be maximally profitable -- the use should produce the highest residual land value consistent with the rate of return warranted by the market for that use.
In estimating the Highest and Best Use of the appraised site "as though vacant" and the appraised property “as currently improved”, we must first carefully study the existing land use patterns and trends of the area.
ARGOTE, DERBES, & TATJE, LLC -33- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 Site As Though Vacant Highest and Best Use of Land or a Site as though Vacant is defined in The Dictionary of Real Estate Appraisal, Fifth Edition, as: “Among all reasonable, alternative uses, the use that yields the highest present land value, after payments are made for labor, capital, and coordination. The use of a property based on the assumption that the parcel of land is vacant or can be made vacant by demolishing any improvements.”
In estimating the highest and best use of the subject site, as if vacant, a study of the existing properties and surrounding influences within the neighborhood was necessary. The preceding four tests determine the most probable and the best use of the property as if vacant. The first step is that the use must be legally permissible. The subject's HU-RD1 zoning allows for single and two-family residential dwellings and some institutional uses such as schools, churches, parks, etc. The second test is physical possibility. The subject site encompasses an entire city block with frontage on South Carrollton Avenue, a prominent local thoroughfare. The site is also large enough to accommodate a variety of uses including a residential subdivision, school, church or a combination of thereof. Financial feasibility is the test that limits the physically and legally possible uses to those that would be feasible to construct. The feasible use that produces the highest return, or greatest profit, is the highest and best use. The neighborhood is one with an increasing population, growing incomes and increasing real estate prices with these trends expected to continue into the near future. It is experiencing strong demand for residential properties with few vacant sites available. There is no evidence of demand for institutional use as land values in the location do not allow for such a use to be economically feasible. Thus the highest and best use of the site as vacant is for single, townhome or two-family residential development.
Property as Improved Highest and Best Use of Property "As Improved"
Highest and Best Use of Property As Improved is defined in The Dictionary of Real Estate Appraisal, Fifth Edition, as: “The use that should be made of a property as it exists. An existing improvements should be renovated or retained "as is” so long as it continues to contribute to the total market value of the property, or until the return from a new improvement would more than off-set the cost of demolishing the existing building and constructing a new one."
ARGOTE, DERBES, & TATJE, LLC -34- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 HIGHEST AND BEST USE ANALYSIS (Continued)
Highest and Best Use of Subject Site, "As Improved"
The highest and best use of the existing improvements can be determined by utilizing the "marginal dollar" concept. This concept suggests that the property's highest and best use can be determined by estimating the income that various "alternative uses" of the property could produce and selecting the use which produces the highest net return to the property as its highest and best use. Additional considerations such as: The location of the property and surrounding uses; The physical attributes of the buildings on the site (age, layout, condition, etc); Permissibility of likely uses under current zoning as well as optimal zoning; Interim Use(s) and Adaptive Re-use;
The appraised site is currently improved with a complex of older buildings centered around a 161 year old former courthouse building, most recently used as a school, that is in overall fair condition and in need of extensive repair and replacements for any continuation of use. Although the courthouse was placed on The National Trust for Historic Preservation 2015 list of "America's 11 Most Endangered Historic Places," it is not on the list of legally protected historic places and thus not protected from demolition, although attempts to demolish the building would likely meet with strenuous opposition from multiple parties. This building would be eligible for Federal Historic Rehabilitation Tax Credits if the property was rehabilitated for applicable uses. The other buildings on the site are considered economically obsolete and do not lend themselves to adaptive re-use. The preponderance of older school and church buildings sold in New Orleans over the past 5 to 10 years have been converted to or are proposed for conversion to multifamily or condominium residential use, including all of the Improved Comparable Sales used in this report, with conditional use permits or zoning changes ultimately approved for those properties not zoned for multifamily or condominium residential use. Thus the highest and best use of the property "as improved" would be renovation and conversion of the historic courthouse building into a multifamily residential or condominium development. The remaining improvements should be demolished. The remainder of the site could then be subdivided into a separate legal lot for the courthouse building, and the balance of the land subdivided into small individual residential lots. An example of a potential resubdivision (also shown on the following page) would have the historic courthouse on a 75' by 275' plot with nine (9) 30' wide single family residential lots on each side.
ARGOTE, DERBES, & TATJE, LLC -35- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 HIGHEST AND BEST USE ANALYSIS (Continued)
Highest and Best Use of Subject Site, "As Improved"
POTENTIAL RESUBDIVISION
ARGOTE, DERBES, & TATJE, LLC -36- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 SALES COMPARISON APPROACH TO VALUE "SITE AS THOUGH VACANT LAND"
The value of the appraised site, "as improved" has been estimated within this section of the report.
There are numerous methods of Land Valuation, including the Market Data or Comparative Method, Land Distribution, Abstraction or the Allocation Method, and the Land Residual Technique. In each methodology, the objective is to estimate the fair market value of the site, as though vacant and ready for development.
In instances where sufficient sales data is available, the Direct Sales Comparison or Market Data Approach or Comparative Method is preferred. It is the most direct method, and the easiest to apply and understand. Foremost in consideration, however, is the fact that this method reflects the actions of buyers and sellers in the market for similar properties.
Employing this method, the appraised site is compared with sales of similar vacant sites. These sales are investigated and adjustments are made for the differences between the sites sold and the site being appraised, and from which conclusions are drawn.
To estimate the value of the Appraised Site considered “as though vacant land ready for development”, an examination was made of the Parish Conveyance Records relative to land sales in the vicinity of the Appraised Site. Generally, the most recent sales of similar sites are considered the best indicators of value. However, offers or options to purchase or sell may be considered. Adjustments for the time at which each sale occurred, the location of the comparable site in relation to the appraised site, and physical characteristics of the comparable sales are usually considered in estimating the value of the appraised site.
In the immediate case, the appraiser was able to find a number of recent land sales of smaller similarly zoned sites in the Uptown neighborhoods of New Orleans. The subject is located in a densely developed area with few vacant lots or parcels of land, and in particular lots zoned for single or two-family development. The land sales used herein are all smaller than the subject but similar in location and zoning. Following is an analysis of these land sales and my conclusions as to the indicated value of the appraised site considered “as though vacant land ready for development”.
ARGOTE, DERBES, & TATJE, LLC -37- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 COMPARABLE LAND SALE NO. 1
LOCATION: Philip and Chippewa Streets New Orleans, LA DATE: October 17, 2016
RECORDATION: NA # 2016-42128 and 2016-42130 (Orleans Parish)
VENDORS: NA# 2016-42128 - Household of Faith Family Worship Church International, represented by Antoine Barriere, Pastor NA# 2016-42130 - Hummel Construction, LLC, represented by Roland Hummel, Manager VENDEE: Sidewalk Side Properties, LLC, represented by Joseph Aluise, Manager
SALES PRICE: NA# 2016-42128 $700,000 NA# 2016-42130 $610,000 TOTAL $1,310,000 TERMS: CASH
LEGAL DESCRIPTION: NA# 2016-42128 - Lots 1 and 2, part of Lot 3 and Lot 2 NA# 2016-42130 - Part of Lots 3 and 4, Lot 2 Square 65, Fourth District, Orleans Parish, LA
LAND SIZE: NA# 2016-42128 - 80.54'/52.34'/132.92' x 159.79'/120'/39.79' NA# 2016-42130 - 90' x 105.5' LAND AREA: NA# 2016-42128 - 14,917 square feet NA# 2016-42130 - 9,495 square feet
TOTAL 24,412 square feet
ZONING: HU-RD-2; Historic Urban Two Family Residential District
UTILITIES: All available
UNIT SALES PRICE: $53.66
COMMENTS: This is the sale of two corner parcels of land in the same square, a 14,917 square foot parcel at the corner of Philip and St. Thomas Streets and a 9,495 square foot parcel at the corner of Philip and Chippewa Streets. The 9,495 square foot parcel was purchased from Household of Faith Family Worship Church International by Hummel Construction for $480,000 ($50.55/SF) on November 8, 2015. Square 65 had 3 separate lots legally described as Lot 2 which is why multiple Lot 2s in the legal description above.. The purchaser has resubdivided both parcels into a total of 6 buildable lots. According to the documents submitted for resubdivision the purchaser plans to build single family residences on the each lot for resale. Mr. Aluise, the manager of the purchasing entity, has built several new homes on Uptown vacant lots.
ARGOTE, DERBES, & TATJE, LLC -38- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 COMPARABLE LAND SALE NO. 1 (Continued)
LOCATION: Philip and Chippewa Streets New Orleans, LA
ARGOTE, DERBES, & TATJE, LLC -39- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 COMPARABLE LAND SALE NO. 2
LOCATION: 4820-22 Coliseum Street New Orleans, LA DATE: May 13, 2016
RECORDATION: NA # 2016-19193 (Orleans Parish)
VENDOR: Ryan C. Marcomb, LLC, represented by Ryan C, Marcomb, Member VENDEE: Edward Louis Nickolaus, Jr. and Daniel L. Niscchke
SALES PRICE: $675,000 TERMS: CASH
LEGAL DESCRIPTION: Lot 16-A, Square 294, Sixth District, City of New Orleans, Louisiana
LAND SIZE: 60' x 127.5'
LAND AREA: 7,650 square feet
ZONING: HU-RD-2; Historic Urban Two Family Residential District
UTILITIES: All available
UNIT SALES PRICE: $88.24
COMMENTS: This is the sale of two legal lots fronting Coliseum between Lyons and Bordeaux Streets which was improved with an older 1-story 1,800 square foot brick single family residence in fair condition. The purchasers demolished the improvements at a reported cost of $9,000 and are constructing two new single family residences on the lots.
ARGOTE, DERBES, & TATJE, LLC -40- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 COMPARABLE LAND SALE NO. 3
LOCATION: 2608 Robert Street and 2611, 13 and 21 Soniat Street New Orleans, LA DATE: April 21, 2016
RECORDATION: NA # 2016-16741 (Orleans Parish)
VENDOR: Succession of Samuel and Betsy Bowles and Succession of Gevena and Matthew Bowles VENDEE: CAB Real Estate Rund, LLC, represented by Nicholas Bruno and Daniel Crowley, its authorized Members
SALES PRICE: $420,000 TERMS: CASH
LEGAL DESCRIPTION: Lots 19, C, 4 and 5 Square 653, Sixth District, City of New Orleans, Parish of Orleans, Louisiana
LAND SIZE: 90' x 110' plus 30' x 110
LAND AREA: 13,200 square feet
ZONING: HU-RD-2; Historic Urban Two Family Residential District
UTILITIES: All available
UNIT SALES PRICE: $31.82
COMMENTS: This is the sale of 3 contiguous 30' x 110' vacant lots fronting Soniat Street and a 30' x 110 foot lot in the same city block fronting on Robert Street. There are 3 single family residences and 1 two-family residence being constructed on the lots.
ARGOTE, DERBES, & TATJE, LLC -41- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 COMPARABLE LAND SALE NO. 4
LOCATION: 7715 Pearl Street New Orleans, LA DATE: March 11, 2016
RECORDATION: NA # 2016-09880 (Orleans Parish)
VENDOR: K. Hinnant Designs, LLC, represented by Catherine R. Hinnat, Member VENDEE: GCH, LLC represented Christian G. Hooper, Member
SALES PRICE: $237,500 TERMS: CASH
LEGAL DESCRIPTION: Lot 23-A, Square 64, Seventh District, City of New Orleans, Parish of Orleans, Louisiana
LAND SIZE: 35' x 90'
LAND AREA: 3,150 square feet
ZONING: HU-RD-2; Historic Urban Two Family Residential District
UTILITIES: All available
UNIT SALES PRICE: $75.40
COMMENTS: This is the sale of a lot at the northwest corner of Adams and Pearl Streets. At the time of sale if was improved with a ±1,400 SF single family residence in poor condition. The purchasers demolished the house, at a reported cost of $6,600, and listed the now vacant lot for sale on September 16, 2016 at an original asking price of $415,000 ($131.75/SF), which has since been reduced to $399,000 ($126.67/SF). The purchasers have also submitted plans for the construction of a new single family residence on the site. The seller in this sale purchased the house in November, 2015 for $225,000 ($71.43/SF) from a succession. The property was on the market for 7 days at an asking price of $199,000. K. Hinnant Designs then listed the house for sale in on February 18, 2016 at an asking price of $239,750.
ARGOTE, DERBES, & TATJE, LLC -42- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 COMPARABLE LAND SALE NO. 4 (Continued)
LOCATION: 7715 Pearl Street New Orleans, LA
ARGOTE, DERBES, & TATJE, LLC -43- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 COMPARABLE LAND SALE NO. 5
LOCATION: 8204 Plum Street New Orleans, LA DATE: December 30, 2015
RECORDATION: NA # 2016-00244 (Orleans Parish)
VENDOR: 8204-06 Plum Street, LLC represented by David Fuselier, Member VENDEE: Bifocal Investments, represented by Melanie Fawer, Member SALES PRICE: $166,000 TERMS: CASH
LEGAL DESCRIPTION: Lot T, Square 150, Seventh District, City of New Orleans, Parish of Orleans, Louisiana
LAND SIZE: 32.5' x 120'
LAND AREA: 3,900 square feet
ZONING: HU-RD-2; Historic Urban Two Family Residential District
UTILITIES: All available
UNIT SALES PRICE: $42.56
COMMENTS: This is the sale of a lot fronting Plum Street between Dublin and Dante Streets. The vendee purchased the lot and is constructing a two-story 2,100 SF single family home which is currently listed for sale at $599,000. The vendor purchased the lot from the owner of the adjoining double at 8208 Plum Street for $95,000 ($24.36/SF on June 25, 2015) with the intention of resale.
ARGOTE, DERBES, & TATJE, LLC -44- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 COMPARABLE LAND LISTING A
LOCATION: Northwest corner of Benjamin and Adams Streets New Orleans, LA
LISTING DATE: October 31, 2016 ASKING SALES PRICE: $450,000
LEGAL DESCRIPTION: Lots 1 and 2, Square 47, Seventh District, City of New Orleans, Parish of Orleans, Louisiana
LAND SIZE: 60' x 105'
LAND AREA: 6,300 square feet
ZONING: HU-RD-2; Historic Urban Two Family Residential District
UTILITIES: All available
UNIT SALES PRICE: $71.43
COMMENTS: This is the listing of two lots in the Carrollton's Black Pearl neighborhood. It is improved with a small house used as an office with an attached concrete paved work yard with a metal workshop. The property is being marketed as two residential lots. The listing agent reports interest in the site but no offers. Listed with Liz Winston of Wirth-Moore Realty.
ARGOTE, DERBES, & TATJE, LLC -45- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 LAND SALES MAP
ARGOTE, DERBES, & TATJE, LLC -46- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 SALES COMPARISON APPROACH LAND VALUE
The following are summaries of comparable land sales used in valuing the subject site. Land Sales Summary Land Date Gross Sale Price Per Sale No. of Sale Sq. Ft. Location Zoning CEP Sq. Ft. 1 10/17/2016 24,412 Philip Street HU-RD2 $1,310,000 $53.66 New Orleans LA 2 5/13/2016 7,650 4820-22 Coliseum Street HU-RD2 $675,000 $88.24 New Orleans LA 3 4/21/2016 13,200 2611, 12 & 21 Soniat Street and HU-RD2 $420,000 $31.82 2608 Robert St New Orleans LA 4 3/11/2016 3,150 7715 Pearl Street HU-RD2 $237,500 $75.40 New Orleans, LA 5 12/16/2015 3,900 8204 Plum Street HU-RD2 $166,000 $42.56 New Orleans LA A Listing 6,300 NW Corner of Benjamin and HU-RD2 $450,000 $71.43 Adams New Orleans LA Subject 11/2016 75,625 709 S Carrollton Avenue HU-RD2 New Orleans LA
Analysis of the Comparable Land Sales
Conditions of Sale and Cash Equivalency All of the comparable sales presented are closed, arms-length transactions with no extraordinary circumstances. Furthermore, each was sold for cash, or financed at prevalent market terms (cash equivalent). Accordingly, no adjustments are necessary for conditions of sale or seller financing.
Market Conditions (Time) -- The comparable sales are all within the past 12 months and no adjustment is needed for changes in market conditions during this time period.
Overall the sales indicate a price per square foot range of $31.82 to $88.42. Comparable Land Sale No. 3 ($31.82/SF) is considered to have a somewhat inferior location at the northern edge of the Uptown area. The subject site is much larger than any of the comparable land sale as there were no recent sales or listings of similar sized sites in the past few years. This can be attributed to the subject's location in a densely populated neighborhood with a limited supply of vacant sites. As such these sales are more indicative of the prices which individual lots would be worth if the subject site was subdivided into smaller end user residential lots as per the conclusion of the site's highest and best use "as though vacant". A potential purchaser or developer would incur costs in subdividing the site and in marketing the resulting lots and would expect an adequate profit on the initial investment. As such, a unit value well below that of Comparable Land Sale Nos. 2 and 4 and Comparable Land Listing A ($71.31/SF to $88.24/SF), which are sales of small lots, is indicated for the much larger subject site.
ARGOTE, DERBES, & TATJE, LLC -47- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 SALES COMPARISON APPROACH LAND VALUE
Analysis of the Comparable Land Sales (continued)
It is, therefore, the appraiser opinion, based primarily on Comparable Land Sale Nos. 1 ($53.66/SF) and 3 ($31.82/SF) that a unit price of $35.00 per square foot is indicated and thus it is concluded that the Market Value of the Fee Simple Interest in the subject site As Though Vacant, is as follows:
75,625 SF @ $35.00/SF = $2,646,875 SAY $2,650,000
ARGOTE, DERBES, & TATJE, LLC -48- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003
SALES COMPARISON APPROACH TO VALUE "AS IMPROVED"
The Sales Comparison Approach involves a comparison of the appraised property to similar properties which have sold in the same or in a similar market to derive an indication of current market value for the property being appraised. Carefully verified and analyzed market data is good evidence of value when it represents typical actions and reactions of buyers, sellers, users and investors. The Sales Comparison Approach, like the Cost Approach, is based on the economic principle of substitution. In this approach, it is implied that a prudent person will not pay more to buy a property than it will cost to buy a comparable substitute property. One method of valuation by this approach is a direct comparison based upon the overall sales price per square foot of gross building area. However, this comparison can be affected by both the location of the property and the land to building ratio. In this case, the "Breakdown Method" can be utilized - allocating a contributory value to the site and improvements for further comparison. Another method of valuation is an analysis based on Net Operating Income per square foot of net rentable area. The ratio of Net Operating Income per Square Foot to the Sales Price is a number which expresses the ratio between the sales price of a property and its net operating income. If we have a large number of recent sales with reliable income data, this may be appropriate, especially if each comparable has similar occupancy and expense ratios compared to the subject property, and financing terms are similar. These are simplistic comparisons which can be influenced by numerous conditions affecting each property, including the age, condition, and construction quality of the improvements. The appraiser must also investigate the motivations of the buyer and seller and consider any leases which encumber the property which is sold. The historic former Carrollton Courthouse building is the only structure on the site considered to have any contributory value as determined earlier in the highest and best use analysis. The unit of comparison utilized in this analysis is a physical unit of comparison as determined through a Breakdown Method Analysis. This approach "breaks down" or allocates the sales price of each comparable between the physical components of the property -- i.e., site, site improvements, and buildings A search of data sources and public records, a field survey, interviews with knowledgeable real estate professionals in the area, as well as a review of my internal database was also conducted to obtain and verify comparable sales and listings of similar properties. I have included five sales in my analysis, as these sales are judged to be the most comparable in developing an indication of the market value of the former courthouse/school building located on the subject property. Summary sheets detailing pertinent information on each of the Comparable Building Sales is presented on the pages and are followed by a location map.
ARGOTE, DERBES, & TATJE, LLC -49- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 IMPROVED COMPARABLE SALE NO. 1
PROPERTY: Our Lady of Good Counsel School LOCATION: 1215 Louisiana Avenue New Orleans, Louisiana SALE DATE: October 16, 2015
RECORDATION: N.A. #2015-44798
VENDOR: Our Lady of Good Counsel, Inc., represented by John L. Eckholdt, Secretary-Treasurer
VENDEE: Good Counsel Partners, LLC represented by Ryan Gootee, Manager
SALE PRICE: $960,000 TERMS: Cash
LAND AREA: 26,663.2 square feet (as per survey) BUILDING AREA: 25,975 square feet ZONING: HU-RD1; Historic Urban Two-Family Residential District
IMPROVEMENT DATA: The is the sale of a 94 year old, three-story, average quality, wood frame, and brick school with an attached one-story rear auditorioum sold by the Archdiocese of New Orleans to a private developer. The school is situated on a raised brick pier foundation and is of wood frame and brick construction with a pitched asphalt shingle roof system and metal gutters and downspouts. The attached auditorium building is of wood frame and brick construction on a ground level concrete slab foundatio with a flat composition surfaced roof. The school building was completely gutted of interior finishes at the time of sale, with ceilings ranging in height from 12’ to 14’ with the auditorium having a ceiling height of ±24’ There was ±1,800 SF of asphalt paving and concrete walkways, a large brick front stairway, and average quality landscaping with some chain link and wood fencing.
COMMENTS: In July 2016 a conditional use permit was issued to renovated and convert the building into a 22-unit apartment complex at a reported cost of $6,000,000 or $231/SF of building area.
ARGOTE, DERBES, & TATJE, LLC -50- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 IMPROVED COMPARABLE SALE NO. 1 (Continued)
PROPERTY: Our Lady of Good Counsel School LOCATION: 1215 Louisiana Avenue New Orleans, Louisiana BREAKDOWN METHOD ANALYSIS Sale Price $960,000 Contributory Site Value 26,663.2 SF X $16.88/SF $450,000 Contributory Value of Site Improvements $ 15,000 Contributory Value of Building 25,975 SF X $19.06/SF $495,000
ARGOTE, DERBES, & TATJE, LLC -51- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 IMPROVED COMPARABLE SALE NO. 2
PROPERTY: Former Morris F.X. Jeff Elementary School LOCATION: 800 North Rendon Street New Orleans, Louisiana SALE DATE: September 12, 2014
RECORDATION: N.A. #2014-36870
VENDOR: Orleans Parish School Board, represented by Nolan Marshall, Jr. Board President VENDEE: McDonogh 31, LLC, represented by Joseph A. Stebbins, II, its authorized Member/Manager
SALE PRICE: $920,000 TERMS: Cash
LAND AREA: 55,981 square feet BUILDING AREA: 29,654 square feet ZONING: RD-3; Two-Family Residential District
IMPROVEMENT DATA: This is the sale of a vacant 26,348 SF 3-story school building, with a 1-story rear cafeteria building of 3,306 SF, built in 1904 as McDonogh #31 school and later renamed the Morris F.X. Jeff Elementary School. The property sits on an L-shaped site forming the southeast corner of North Rendon and St. Ann Streets and the northwest corner of St. Ann and North Lopez Streets. The school building has a concrete frame on a concrete foundation with solid brick exterior walls and a pitched roof with composite shingles. The cafeteria building is wood frame on concrete footings with wood siding and a pitched roof with composite shingles. The buildings were in overall poor condition at the time of sale with roof damage, water damaged wood floors and signs of water infiltration of the foundation. There was no on-site parking and site improvements consisted of perimeter fencing and about 3,500 square feet of asphalt paved yard area and an approximately 1,200 SF of concrete paved driveway from N. Lopez Street to the cafeteria building.
COMMENTS: The purchaser plans to renovate and convert the school building into apartments/condominiums with 3 single family homes along N. Lopez Street, these plans have yet to be approved.
ARGOTE, DERBES, & TATJE, LLC -52- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 IMPROVED COMPARABLE SALE NO. 2 (Continued)
PROPERTY: Former Morris F.X. Jeff Elementary School LOCATION: 800 North Rendon Street
BREAKDOWN METHOD ANALYSIS Sale Price $920,000 Contributory Site Value 55,941 SF X $10.00/SF $559,410 Contributory Value of Site Improvements $10,000 Contributory Value of Buildings 29,654 SF X $11.82/SF $350,590
New Orleans, Louisiana
School Cafeteria
ARGOTE, DERBES, & TATJE, LLC -53- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 IMPROVED COMPARABLE SALE NO. 3
PROPERTY: Blessed Sacrament Church and School LOCATION: 5030 Constance Street New Orleans, Louisiana SALE DATE: February 21, 2014
RECORDATION: N.A. #2014-07724
VENDOR: Blessed Sacrament Inc., represented by Rev. Charles Andrus, S.S.J., as Agent
VENDEE: Valmont Investments. LLC, represented by Mark R. Schreiner, Managing Member
SALE PRICE: $450,000 TERMS: Cash
LAND AREA: 12,866 square feet BUILDING AREA: 8,440 square feet ZONING: RM-2; Multi-Family Residential District
IMPROVEMENT DATA: This is the sale of a vacant average quality church building with 10,333 S.F. of total building area with 4,753 S.F. of classroom area on the second floor. The building was in need of repairs at the time of sale but was structurally sound and was not flooded during Hurricane Katrina.
COMMENTS: The purchaser is renovating the building and adding a third floor for use as 8 multifamily units at a reported cost of $1,500,000. . BREAKDOWN METHOD ANALYSIS Sale Price $450,000 Contributory Site Value 12,866 SF X $25.00/SF $257,320 Contributory Value of Site Improvements $8,000 Contributory Value of Buildings 8,440 SF X $21.88/SF $184,680
ARGOTE, DERBES, & TATJE, LLC -54- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 IMPROVED COMPARABLE SALE NO. 3 (Continued)
PROPERTY: Blessed Sacrament Church and School LOCATION: 5030 Constance Street New Orleans, Louisiana 70115
ARGOTE, DERBES, & TATJE, LLC -55- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 IMPROVED COMPARABLE SALE NO. 4
PROPERTY: Former Frank T. Howard Elementary School LOCATION: 3601 Camp Street New Orleans, Louisiana 70115 SALE DATE: February 28, 2013
RECORDATION: N.A. #2013-08368
VENDOR: Orleans Parish School Board represented by Ira Thomas, Sr., Board President VENDEE: 3601 Camp Street, LLC represented by Oliver S. Montagnet, Member/Manager
SALE PRICE: $1,200,000 TERMS: Cash
LAND AREA: 30,875 square feet BUILDING AREA: 25,006 square feet ZONING: RD-2; Two-Family Residential District
IMPROVEMENT DATA: This is the sale of a 3-story school building constructed in 1903 and originally operated as Frank T. Howard School, later as the New Orleans Free School, and most recently as a charter school which ceased operation in 2009. The school structure occupies the central portion of the site, with the rear yard fronting Chestnut which was historically used as a play area, and 11 head-in off-street parking spaces located in the Foucher Street corner side yard. The site is an L-shaped parcel located at the northwest intersection of Camp and Foucher Streets and with rear frontage on 60' Chestnut Street approximately 125' frontage on Camp Street and 187' frontage on Foucher Street. The property was in need of renovation and repairs at the time of sale but was structurally sound. The purchaser was attracted to the building because of its design and street appeal. COMMENTS: In January 2016 a permit was issued to renovate and convert the building into a 21 unit multifamily residential complex with 49 off-street parking spaces. The property was rezoned RM2A- Multifamily Residential in 2014 at the purchaser's request. .
ARGOTE, DERBES, & TATJE, LLC -56- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 IMPROVED COMPARABLE SALE NO. 4 (continued)
PROPERTY: Former Frank T. Howard Elementary School LOCATION: 3601 Camp Street New Orleans, Louisiana 70115
BREAKDOWN METHOD ANALYSIS Sale Price $1,200,000 Contributory Site Value 30,825 SF X $19.95/SF $615,000 Contributory Value of Site Improvements $20,000 Contributory Value of Buildings 25,006 SF X $25.00/SF $625,000
ARGOTE, DERBES, & TATJE, LLC -57- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 IMPROVED COMPARABLE SALE NO. 5
PROPERTY: Former New Orleans Center for Creative Arts Building LOCATION: 6048 Perrier Street New Orleans, Louisiana SALE DATE: November 16, 2011 RECORDATION: N.A. #2011-42859 VENDOR: Orleans Parish School Board represented by Lourdes Figueroa Moran, President VENDEE: LaSalle School, LLC represented by James MacPhaille, Managing Member
SALE PRICE: $2,450,000 TERMS: Cash
LEGAL DESCRIPTION: Lots 1, 2, 3, 4, 5, W, T, 9, 10, 16, 17 & 18; Square 41, Sixth District, City of New Orleans. Site forms corner of Perrier & Webster Streets in square bounded by State and Coliseum Streets.
LAND AREA: 51,328 square feet
BUILDING AREA: School 40,339 square feet Caretaker's Cottage 1,258 square feet Total 41,597 square feet ZONING: RD-2; Two Family Residential District
IMPROVEMENT DATA: The site is improved with a four-story wood frame and masonry former school building constructed in 1900 containing about 40,339 square feet which was in unrenovated condition at the time of sale and a 1,258 square foot caretaker’s residence in poor condition.
From the Louisiana Landmarks Society’s Webpage in 2008 – “LaSALLE ELEMENTARY SCHOOL (New Orleans Center for the Creative Arts) Uptown 6048 Perrier Street ca. 1900 Threats: Neglect, abandonment. The former NOCCA building in the Uptown Historic District was built in the Italianate style circa 1900. It is a prominent and unique building in this primarily residential neighborhood and is housed on a significant corner lot with plenty of land surrounding it, as well as a custodian’s cottage. The large, elegant building displays rounded arch windows with corbelled hoods in relief, as well as corbels at the eaves on the facade and a pronounced entry. Prior to functioning as NOCCA it housed LaSalle Elementary School. In 2000, NOCCA moved out of the building to the riverfront and the building has been vacant ever since . . . Due to neglect and deferred maintenance, the building’s condition continues to worsen. Weeds are growing out of the roof and along the walls and many windows are broken leaving the building open to the elements. According to the 2008 School Facilities Master Plan for Orleans Parish, the building is slated for “complete replacement”, although the structure is still viable and would function well in a variety of public or private uses.”
ARGOTE, DERBES, & TATJE, LLC -58- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 IMPROVED COMPARABLE SALE NO. 5 (continued)
PROPERTY: Former New Orleans Center for Creative Arts Building 6048 Perrier Street, New Orleans, Louisiana COMMENTS (continued):
This property which was originally constructed and operated for many years as a elementary school (LaSalle Elementary) and was taken over by the New Orleans Center for Creative Arts (NOCCA) in 1973. NOCCA operated their school from the property until 2000. It had been vacant since then. It had been declared “Surplus Property” by the Orleans Parish School Board and several attempts to auction the property over a number of years was unsuccessful. A March 31, 2008 auction had a minimum bid set at $3,200,000 which was not met. It finally sold at auction held on April 28, 2011 when the minimum bid was set at $1,500,000 (based on land value less demolition costs) when a local developer/investor outbid two other bidders.
On June 27, 2012 the vacant land at the corner of Webster and Coliseum Streets was subdivided from the 51,321 square foot site into two residential lots - a 7,630 square foot corner lot L-3 and a 7,095 square feet lot L-2 fronting on Webster Street. New single- family houses were constructed on two lot, each selling for more than $2 million. On February 23, 2013 the City Planning Commission approved plans for the for the conversion of the school building, situated on the 36,605 square foot lot L-1, into a 13 unit condominium project with 7 two-bedroom units and 6-three bedroom units ranging in size from 2,106 square feet to 3,371 square feet. The approval also included permission for an 1,186 square foot "not for sale" first floor efficiency unit for the use of guests of the condominium owners. The 13-units sold at an average price of $1.4 million or $510/SF.
BREAKDOWN METHOD ANALYSIS Sale Price $2,450,000 Contributory Site Value 51,328 SF X $29.22SF $1,500,000 Contributory Value of Caretakers Cottage (1,258 SF) $ 0 Contributory Value of Site Improvements $ 10,000 Contributory Value of Buildings 40,339 SF X $23.30/SF $940,000
ARGOTE, DERBES, & TATJE, LLC -59- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 IMPROVED COMPARABLE SALE NO. 5 (continued)
PROPERTY: Former New Orleans Center for Creative Arts Building 6048 Perrier Street, New Orleans, Louisiana
School
Caretaker's Cottage
ARGOTE, DERBES, & TATJE, LLC -60- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 IMPROVED COMPARABLE SALES MAP
ARGOTE, DERBES, & TATJE, LLC -61- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 SALES COMPARISON APPROACH TO VALUE "AS IMPROVED"
Analysis of the Improved Comparable Sales
All of the sales are analyzed, and adjustments are made for differences in the various elements of comparison, including real property rights, financing terms, conditions of sale, expenditures made immediately after purchase, market conditions, location, size, and other relevant factors. If the comparable sale is considered superior to the subject, I applied a negative adjustment to the comparable. A positive adjustment to the comparable is applied if it is considered inferior to the subject. Transaction adjustments are applied prior to the application of market conditions and property adjustment and include Real Property Rights Conveyed, Financing Terms, Conditions of Sale, and Expenditures Made Immediately After Purchase. The adjustments are discussed as follows.
Real Property Rights Conveyed In the case of the subject property, the fee simple interest is being appraised. The sale comparables all reflect the fee simple interest as well, with no adjustments required. Financing Terms The transaction price of one property may differ from that of an identical property due to different financial arrangements. Sales involving financing terms that are not at or near market terms require adjustments for cash equivalency to reflect typical market terms. A cash equivalency procedure discounts the atypical mortgage terms to provide an indication of value at cash equivalent terms. All of the comparable sales involved typical market terms by which the sellers received cash or its equivalent and the buyers paid cash or tendered typical down payments and obtained conventional financing at market terms for the balance. Therefore, no adjustments for this category were required. Conditions of Sale When the conditions of sale are atypical, the result may be a price that is higher or lower than that of a normal transaction. Adjustments for conditions of sale usually reflect the motivations of either a buyer or a seller who is under duress to complete the transaction. Another more typical condition of sale involves the downward adjustment required to a comparable property’s for-sale listing price, which usually reflects the upper limit of value. A review of the sales did not indicate any condition of sale adjustments to be warranted for atypical conditions. Expenditures Made Immediately After Purchase A knowledgeable buyer considers expenditures that will have to be made upon purchase of a property because these costs affect the price the buyer agrees to pay. Such expenditures may include: (1) costs to cure deferred maintenance, (2) costs to demolish and remove any portion of the improvements, (3) costs to petition for a zoning change, (4) costs to remediate environmental contamination and/or (5) costs to occupy or lease-up the property to a stabilized occupancy The relevant figure is not the actual cost incurred, but the cost that was anticipated by both the buyer and seller. Unless the sales involved expenditures anticipated upon the purchase date, no adjustments to the comparable sales are required for this element of comparison.
ARGOTE, DERBES, & TATJE, LLC -62- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 SALES COMPARISON APPROACH TO VALUE "AS IMPROVED"
Analysis of the Improved Comparable Sales (Continued)
All of the comparable sales were in need of renovation and extensive repairs and all were purchased for renovation and conversion to residential use. This is similar to the expectations a potential purchaser would have for the subject so no adjustments are made for expenditures made immediately after purchase. Market Conditions Adjustment Market conditions change over time as a result of inflation, deflation, fluctuations in supply and demand and other factors. Changing market conditions creates the need for adjustments to sale comparables that represent transactions during periods of dissimilar market conditions. The method of comparison used in this Sales Comparison Approach for the Building portion of appraised property is the Price per Square Foot of Building Area Analysis. Estimates of the contributory value of the building and land portions of the subject property are analyzed separately in this section of the report, thus the estimated contributory value of land value in the Comparable Sales and the value of any site improvements has been deducted from the sales price in the analysis of the building portion. There has been continued strong demand and increasing values for buildings like the subject and the comparables over the past few years thus upward time of sale adjustments are made to all of the sales for superior current market conditions. Property Adjustments Property adjustments are usually expressed quantitatively as percentages that reflect the increase or decrease in value attributable to the various characteristics of the property. In some instances, however, qualitative adjustments are used. These adjustments are based on locational and physical characteristics and are applied after the application of transaction and market conditions adjustments. My adjustments to the sale comparables are summarized in a narrative format below with an adjustment grid to follow. These adjustments are based on my market research, best judgment, and experience in the appraisal of similar properties. Location Location adjustments may be required when the locational characteristics of a comparable are different from those of the subject. These characteristics can include general neighborhood characteristics, freeway accessibility, street exposure, corner versus interior lot location, neighboring properties, view amenities, and other factors. Sale Nos. 1 and 2 are in areas of lower property values which are considered inferior to the subject in location requiring upward adjustments. The remaining sales are in market locations similar to the subject. Age/Condition All else being equal, older properties typically command a lower price per square foot than newer properties. However, although a property may be physically older than another property, the effective age may be similar to a newer property and no adjustment may be indicated. This may be due to the older property being well maintained or a recent renovation. I have based this adjustment category on the effective age of the comparables and not their physical age, as this takes the overall condition of a property into consideration. All of these properties were purchased for renovation, however Sales 1 and 2 were partially or fully gutted at the time of sale and are adjusted upward for condition.
ARGOTE, DERBES, & TATJE, LLC -63- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 SALES COMPARISON APPROACH TO VALUE "AS IMPROVED"
Analysis of the Improved Comparable Sales (Continued)
Size The size adjustment identifies variances in the physical size of the comparables and the subject improvements, specifically the main buildings. Typically, the larger a building, the lower the sale price per unit. This inverse relationship is due, in part, to the principle of “economies of scale.” The size differentials between the historic courthouse building and the school and school/church buildings used as improved comparable sales used in this report are not considered significant enough to warrant adjustment. Thus no adjustments are made herein for differences in size. Construction Quality While there are some differences between the subject and the comparable sales regarding physical construction quality, they are all older buildings able to be renovated for similar adaptive redevelopment uses. Thus no adjustments to any of the sales are made for quality of construction. Design/Functional Utility All of the comparable sales were unrenovated buildings purchased for redevelopment and are considered similar to the subject property in their unrenovated design and functional utility.
Other Features None of the sales had any significant other features, such as landscaping, ponds, walkways, etc which would require adjustment in comparison to the subject.
Following is an adjustment grid summarizing the adjustments noted above.
ARGOTE, DERBES, & TATJE, LLC -64- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 SALES COMPARISON APPROACH TO VALUE "AS IMPROVED"
IMPROVED SALES ADJUSTMENT GRID
719 SOUTH CARROLLTON AVENUE COMPARABLE SALES ADJUSTMENT GRID PRICE PER SF BUILDING AREA ANALYSIS Comparable No. Subject12345
Our Lady of Good Morris F.X. Jeff Blessed Sacrement Frank T. Howard Name/Location Audubon Carrollton Site Former NOCCA Counsel School Elementary School Church and School Public School Address 719 S. Carrollton Ave 1215 Louisiana Ave 800 N. Rendon St 5030 Constance St 3601 Camp Street 6048 Perrier Street NO, LA 70118 NO, LA 70115 NO, LA 70119 NO, LA 70115 NO, LA 70115 NO, LA 70118 School Built converted Property Type School School Church/School School School from Courthouse No. of Stories 233 2 33 Age/Condition 1855/Fair 1924/Gutted 1904/Poor 1934/Average to Fair 1903/Fair 1900/Fair
Construction Quality/ Class C/Good D/Average B/Average D/Average C/Average C/Average
Date of Sale 16-Oct-15 12-Sep-14 21-Feb-14 28-Feb-13 16-Nov-11 Sales Price $960,000 $920,000 $450,000 $1,200,000 $2,450,000 Land Area (SF) 75,625 26,663 55,941 12,866 30,875 51,328 Building(s) Area (SF) 16,900 25,975 29,654 8,440 25,006 40,339 Price/SF of Building Area $36.96 $31.02 $53.32 $47.99 $60.74 Contributory Value of Building (Gross) $495,000 $350,590 $184,680 $565,000 $940,000 Unadjusted Contributory Value of Building (SF) $19.06 $11.82 $21.88 $22.59 $23.30
Transactional Adjustments
Property Rights Conveyed 0% 0% 0% 0% 0% Financing Terms 0% 0% 0% 0% 0% Conditions of Sale 0% 0% 0% 0% 0% Expenditures Immediately After Sale ($/SF) 0.00 0.00 0.00 0.00 0.00 Market Conditions 3% 7% 8% 11% 17%
Adjusted Price Per SF $19.63 $12.65 $23.63 $25.08 $27.26
Adjustments:
Location 15.0% 35.0% 0.0% 0.0% 0.0% Age/Condition 10.0% 30.0% 0.0% 0.0% 0.0% Constrution Quality/Class 0.0% 0.0% 0.0% 0.0% 0.0% Design/Functional Utility 0.0% 0.0% 0.0% 0.0% 0.0% Other 0.0% 0.0% 0.0% 0.0% 0.0% COMPOSITE ADJUSTMENTS 25% 65% 0% 0% 0% INDICATION VALUE PER SF FOR THE $24.54 $20.87 $23.63 $25.08 $27.26 APPRAISED PROPERTY
RANGE OF INDICATIONS $20.87 to $27.26 /SF MEAN INDICATION FROM SALES: $24.28 /SF MEDIAN INDICATION FROM SALES: $24.54 /SF
ARGOTE, DERBES, & TATJE, LLC -65- Appraisal of Audubon Carrollton Site 719 South Carrollton Avenue, NO, LA Our File No. 16-0296.003 SALES COMPARISON APPROACH TO VALUE "AS IMPROVED"
Due to the dissimilarities between the comparable sales and the appraised property, the unit of comparison utilized in this analysis is a physical unit of comparison known as the Breakdown Method Analysis. This approach "breaks down" or allocates the sales price of each comparable between the physical components of the property -- i.e., site, site improvements, and buildings.
Contributory Site Value is estimated for each comparable based upon the relationship between the overall sales price and the individual property components. The Contributory Site Values for the Improved Comparable Sales which are considered improved to their highest and best use are typically near the underlying land values "as if vacant land". From the market data available, five sales - three schools, a church and rectory and a church/school building - were considered the most comparable to the subject. The unadjusted sale prices for the comparable sales ranged from $11.82 to $23.30 per square foot for the contributory value of the building. I have adjusted the comparable sales based on pertinent elements of comparison as discussed earlier and summarized the adjustments in the preceding grid. The final adjusted sale prices reflected a range from $20.87 to $27.26 per square foot, with a mean of $24.28 and a median of $24.54 per square foot. Based on the adjusted prices of the comparable sales, a unit value for the former school/courthouse building is near the middle of the adjusted range, or $27.00 per square foot. In the highest and best use section of this report it was concluded the other buildings on the site should be demolished and the remainder of the site subdivided into a courthouse building site and vacant residential lots. A potential purchaser/investor would consider demolition costs in evaluating the value of the property. Therefore a deduction for demolition costs of the other buildings is being made in the determining of market value of the appraised property as improved.
BREAKDOWN METHOD ANALYSIS Main School/former Courthouse Building 16,900 SF x $27.00 psf = $456,300 Contributory Land Value 75,625 SF x $35.00 psf = $2,650,000 LESS: Demolition Costs Cafeteria/Lockers Annex Building 5,200 SF x $4.00 psf = ($20,800) Building 6 - Classroom /Storage 1,859 SF x $4.00 psf = ($7,436) Portable Buildings 1- 5 8,960 SF x $2.00 psf = ($17,920) Covered Walkways/ Asphalt Paved Areas 10,600 SF x $0.25 psf = ($2,650) TOTAL $3,057,494 TOTAL INDICATED MARKET VALUE "AS IS" VIA SALES COMPARISON APPROACH TO VALUE say $3,050,000
ARGOTE, DERBES, & TATJE, LLC -66-
ADDENDA
QUALIFICATIONS OF THE APPRAISER Henry W. Tatje, III, MAI
ARGOTE, DERBES, & TATJE, LLC
QUALIFICATIONS OF THE APPRAISER
HENRY W. TATJE, III, MAI
BUSINESS ADDRESS: 512 North Causeway Boulevard, Metairie, Louisiana 70001 E-MAIL ADDRESS: [email protected] WEB SITE adgst.com BUSINESS TELEPHONE: 504 833-8234 ext 218 or 504 830-3864 (direct line) FAX NUMBER: 504-830-3870
BUSINESS EXPERIENCE:
Appraiser – Realtor – Max J. Derbes, Inc. 1976 to 1983
Appraiser – Secretary/Treasurer – Metropolitan Valuation Services, Inc. 1983 to Present
Appraiser – Partner – Argote, Derbes, Graham, Shuffield and Tatje 1986 to Present
Broker – Partner – Derbes-Tatje, Realtors 1983 to Present
Broker – Owner – Cypress Property Management 1995 to Present
Appraiser – Senior Managing Director – Valbridge Property Advisors 2013 to Present
EDUCATION:
Graduate of Holy Cross High School, New Orleans, Louisiana 1972 Bachelor of Business Studies, Tulane University, New Orleans, Louisiana 1976 American Institute of Real Estate Appraisers: Course IA - Basic Appraisal Principles Methods and Techniques 1976 Course IB - Capitalization Theory and Techniques 1977 Course 2 - Urban Properties: Application of Appraisal Theory and Technique 1978 Course 6 - Introduction to Real Estate Investment Analysis 1981 Seminar on Statistical Analysis for Real Estate Market Decisions 1977 Various other Seminars and Courses related to Continuing Education 1976 to Present
PROFESSIONAL ASSOCIATIONS:
American Institute of Real Estate Appraisers MAI Certificate No. 7026 State of Louisiana General Real Estate Appraiser License/Certification No. G0321 National Association of Realtors Louisiana Realtors Association Saints Board of Realtors Local Director 1981 to 1984 Treasurer 1985 Secretary 1986 Member of Various Committees 1981 to 1987 Jefferson Board of Realtors The Chamber - New Orleans and River Region 1991 to Present Chairman - River Area Council 1993
ARGOTE, DERBES, & TATJE, LLC
QUALIFICATIONS OF THE APPRAISER (Continued)
HENRY W. TATJE, III, MAI
APPROVED APPRAISER FOR: Chase Bank Bank Plus Mississippi River Bank Hancock Bank First American Bank – Vacherie G E Capital Public Finance First National Bank U.S.A. Regions Bank Capital One Bank Bank of New Orleans First NBC Bank Community Bank First Bank & Trust - New Orleans Whitney National Bank Fidelity Homestead Greater New Orleans Homestead State of Louisiana Department of Transportation and Development
APPRAISAL ASSIGNMENTS COMPLETED FOR: Department of the Navy U.S. Department of Justice U.S. Fish & Wildlife Service GCR & Associates U.S. Army Corps of Engineers New Orleans Aviation Board St. John the Baptist Parish C.S.X. Corporation St. Charles Parish Marathon Oil Company City of New Orleans Port of New Orleans Chevron Oil Port of South Louisiana U.S. Internal Revenue Service Union Pacific Railroad Travelers Insurance F.D.I.C City of Kenner North Houston Bank. Federal Bureau of Investigation (FBI) Nalco Chemical Company Schlumberger Offshore Services Aristech Chemical Corp. Phelps Dodge Corp. Stolt-Neilson Electro-Coal Transfer Co.
MAJOR PROJECTS: Appraisals of numerous large river front industrial sites and parcels of river batture fronting the Mississippi River in the industrial corridor between Baton Rouge and the mouth of the River, for various private and government entities.
Review of all commercial appraisals for site acquisitions over a 35 square block area in Mid City of New Orleans, Louisiana for New VA and LSU Hospitals.
Appraisals of numerous levee and drainage servitudes over varying properties for levee and drainage improvements in Jefferson, Plaquemines and St. Charles Parishes, post Hurricane Katrina, for U.S. Army Corps of Engineers and local levee districts, in southeast Louisiana.
Various other appraisal assignments, including single and multifamily residential, commercial, industrial, and vacant land for mortgage lending, expropriation, counseling, and other purposes.
Appraisals of Salt Domes and related pipelines in Louisiana and Texas for the U.S. Army Corps of Engineers for Strategic Oil Storage Program in the 1970’s and early 1980’s.
ARGOTE, DERBES, & TATJE, LLC
QUALIFICATIONS OF THE APPRAISER (Continued)
HENRY W. TATJE, III, MAI
COURT EXPERIENCE:
Qualified as an expert witness in the following jurisdictions:
United States Court, Eastern District of Louisiana 19th JDC, East Baton Rouge Parish, State of Louisiana 29th JDC, St. Charles Parish, State of Louisiana 40th JDC, St. John the Baptist Parish, State of Louisiana 24th JDC, Jefferson Parish, State of Louisiana 25th JDC, Plaquemines Parish, State of Louisiana Civil District Court, Parish of Orleans, State of Louisiana United States Court of Federal Claims
COURT APPEARANCES AND DEPOSITIONS SINCE 1985:
State of Louisiana vs. Angela D. wife of/and Mark L. Magee 24th JDC, Division A, Jefferson Parish, State of Louisiana Docket No. 709-308 Deposition: June 20, 2016 Court Testimony: September 16, 2016
St. Rose Farms, Inc. vs. Earl A. Folse 23rd JDC, Division E, St. James Parish, State of Louisiana Docket No. 35991 Appraisal of a small parcel of Mississippi River batture, Convent, Louisiana Court Testimony: May, 3, 2016
East Bank Consolidated Special Service Fire Protection District of Jefferson Parish Louisiana vs. Posey R. Bowers, Jr. 24th JDC, Division I, Jefferson Parish, State of Louisiana Docket No. 739-787 Appraisal of a small sliver of land, Veterans Memorial Boulevard near N. Causeway Boulevard, Metairie, Louisiana Deposition: December 8, 2015
Board of Supervisors of Louisiana State University and A&M College vs. Dixie Brewing Co., Inc. Civil District Court, Parish of Orleans, State of Louisiana, Division J, Section 5 Case No. 2010-4351 Review of Appraisals of an old, abandoned, former beer brewery, 2401 Tulane Avenue, New Orleans, Louisiana Deposition: January 8, 2015
Sid-Mar’s Restaurant & Lounge, Inc., Marion Gemelli Burgess and Sidney Kent Burgess vs. State of Louisiana, Through the Governor and/or the Division of Administration, State Land Office 24th JDC, Division K, Jefferson Parish, State of Louisiana Docket No. 632-032 Summary Appraisal Report, Vacant Commercial Site, 1824 Orpheum Avenue, Lots 1, 2 and 3, Square 128, Metairieville Subdivision, Metairie, Louisiana Deposition: July 16, 2009 Court Testimony: November 12, 2014
ARGOTE, DERBES, & TATJE, LLC
QUALIFICATIONS OF THE APPRAISER (Continued) HENRY W. TATJE, III, MAI
COURT APPEARANCES AND DEPOSITIONS SINCE 1985: (Continued)
Board of Supervisors of Louisiana State University and Agricultural and Mechanical College vs. Marshall F. Gerson, et al Civil District Court, Parish of Orleans, State of Louisiana, Division I Case No. 2011-2614 Review of Appraisals of Small One Story Commercial Building, 1831-35 Tulane Avenue, New Orleans, Louisiana, For Property Acquisitions for Proposed New LSU Medical Center Court Testimony: October 28, 2014
Board of Supervisors of Louisiana State University College vs. Southern Electronics Supply, Inc. Civil District Court, Parish of Orleans, State of Louisiana, Division L Case No. 2011-1631 Technical and Factual Review of Appraisal of Office/Warehouse/Service Building Property at 1901 Tulane Avenue, New Orleans, Louisiana Deposition: September 5, 2014 Court Testimony: October 24, 2014
Edwin and Catherine Pearson vs. Jack A. Blossman, Sr., J.A.B.T.F., Inc., Robert L. Torres, Sr., and Tammany Holding Corporation 22nd JDC, Division C, St. Tammany Parish, State of Louisiana Case No. 99-13849 Appraisal of ±7.2 Acre Vacant Parcel of Land, Oak Harbor Blvd., at Howze Beach Road, Slidell, Louisiana Court Testimony: October 23, 2014
Board of Supervisors of Louisiana State University and Agricultural and Mechanical College vs. Michael P. Villavaso Civil District Court, Parish of Orleans, State of Louisiana, Division D Case No. 2011-3852 Review of Appraisals of Vacant Commercial Site, 1837 Tulane Avenue, & 316-68 S. Roman Street, New Orleans, Louisiana For Property Acquisitions for Proposed New LSU Medical Center Deposition: June 12, 2014 Proffer of Testimony: June 12, 2014
Catherine Lebeouf Moore, Troy Lebeouf, Charmaine Lebeouf, Barbara Lebeouf, and The Succession of Elmo Lebeouf, Jr. vs. Lebeouf Real Estate Company, et al 23rd JDC, Section D, St. James Parish, State of Louisiana Docket No. 35191 Retrospective Appraisal, ±170 Acre Primarily Vacant River Front Site, at Brookstown Community, West Bank Of Mississippi River, Near River Mile 164.5 and Village Of St. James, St. James Parish, Louisiana Deposition: April 29, 2014 Court Date: May 14, 2014
ARGOTE, DERBES, & TATJE, LLC
QUALIFICATIONS OF THE APPRAISER (Continued) HENRY W. TATJE, III, MAI
COURT APPEARANCES AND DEPOSITIONS SINCE 1985: (Continued)
Board of Supervisors of Louisiana State University and Agricultural and Mechanical College vs. Tukandu, Inc., et al Civil District Court, Parish of Orleans, State of Louisiana, Division M Case No. 11-1588 Review of Updated Appraisals of Small Two Story Commercial/Rooming House Bldg, 1926-34 Canal Street, New Orleans, Louisiana for Property Acquisitions for Proposed New LSU Medical Center Deposition: April 10, 2014
Board of Supervisors of Louisiana State University and Agricultural and Mechanical College vs. DEO Company, Inc., et al Civil District Court, Parish of Orleans, State of Louisiana, Division G Case No. 2010-8717 Technical and Factual Review Appraisals of Tenant Occupied Commercial Property at 2217-31 Tulane Avenue, New Orleans, Louisiana Court Testimony: February 5, 2014
St. Bernard Parish Government, et al vs. The United States of America United States Court of Federal Claims Case No. 05-1119L Appraisal of Flood Damage Appropriate Rent Payment Resulting from a Temporary flowage easement over eleven varying properties as a result of flooding caused exclusively by the breaching of the levees of the Mississippi River Gulf Outlet Deposition: September 27, 2013
Parish of Jefferson vs. Katie Sternberger 24th JDC, Division I, Jefferson Parish, State of Louisiana Docket No. 719-094 Appraisal of Single Family Residence at 1008 N. Lester Avenue, Metairie, Louisiana for Expropriation Court Testimony: July 12, 2013
Religious & Celeste, LLC vs. Cambrie Celeste, LLC, Steven Anderson, et al United States Bankruptcy Court for Eastern District of Louisiana Section B Case No. 10-11958 Appraisal of 12 Unit Condominium Project, 621 Celeste Street, New Orleans, Louisiana Court Testimony: April 22, 2013
St. Charles Parish Land vs. City of New Orleans by and through the New Orleans Aviation Board 29th JDC, Division D, St. Charles Parish, State of Louisiana Case No. 72,824 Retrospective Appraisal of Wetlands and Canal Areas under Runway, Louis Armstrong Airport for Expropriation, St. Charles Parish, Louisiana Deposition: October 3, 2011 Court Testimony: March 6, 2013
ARGOTE, DERBES, & TATJE, LLC
QUALIFICATIONS OF THE APPRAISER (Continued) HENRY W. TATJE, III, MAI
COURT APPEARANCES AND DEPOSITIONS SINCE 1985: (Continued)
Board of Supervisors of Louisiana State University and Agricultural and Mechanical College vs. Boudreaux’s Tire & auto Repair, L.L.C., et al Civil District Court, Parish of Orleans, Division B, Section 15 Case No. 2010-8662 Small Two-Story Commercial/Warehouse Building at 2301-09 Tulane Avenue, New Orleans, Louisiana Deposition: December 15, 2011 Deposition: March 13, 2012 Court Testimony: November 15, 2012
Board of Supervisors of Louisiana State University and Agricultural and Mechanical College vs. Southern Electronics Supply, Inc. (F/K/A Southern Radio Supply Company, Inc.), et al Civil District Court, Parish of Orleans, Division L, Section 6 Docket # 2011-1631 Review of Appraisal of Office/Warehouse Building at 1909 Tulane Avenue, New Orleans, Louisiana for Expropriation for New LSU Hospital Deposition: September 5, 2012 Court Testimony December 7 & 8, 2014
Hudson Americas, LLC vs. B-G & G Investors IV and V U.S. Bankruptcy Court, Eastern District of Louisiana Case Nos. 12-10307 & 12-10308 Appraisal of Two Apartment Complexes, New Orleans, Louisiana Court Testimony: July 27, 2012
Sugar Hill vs. United States United States Court of Federal Claims Case No. 09-690 (Fed Cl.) Appraisal of Recreational Vehicle Park, Convent, Louisiana Deposition - December 22, 2011 Court Testimony January 26, 2012
Phillip Family et al vs. Bayou Fleet Partnership 29th JDC, St. Charles Parish, State of Louisiana Appraisal of Riparian Rights to Mississippi River Batture, Hahnville, Louisiana Deposition - October 24, 2011 Court Testimony - October 26, 2011
Entergy Louisiana LLC vs. Harvey Canal Holdings III, LLC, et al 24th JDC, Jefferson Parish, State of Louisiana Appraisal Review of Power Line Right-of-Way Over Vacant Industrial Land, Harvey, Louisiana Deposition - September 26, 2011
Board of Supervisors of LSU vs. 2400 Canal, LLC Civil District Court, Parish of Orleans, State of Louisiana Review of Appraisals of 6 Story Office Building, New Orleans, Louisiana Deposition - September 8, 2011
ARGOTE, DERBES, & TATJE, LLC
QUALIFICATIONS OF THE APPRAISER (Continued) HENRY W. TATJE, III, MAI
COURT APPEARANCES AND DEPOSITIONS SINCE 1985: (Continued)
Board of Supervisors of LSU vs. Oreo, LLC Civil District Court, Parish of Orleans, State of Louisiana Appraisal Review of Small Improved Commercial Property, New Orleans, Louisiana Deposition - May 12, 2011
West Jefferson Levee District vs. Allstate Financial Company/Choice Property and Advance Mortgage Co., LLC 24th JDC, Jefferson Parish, State of Louisiana Appraisal of Vacant Wetland Acreage, Avondale, Louisiana Deposition - May 3, 2011
Shell Pipeline Company, L.P., vs. Beaulieu Plantation, Inc. 18th JDC, Division A, West Baton Rouge Parish, State of Louisiana Case No. 34,883 Appraisal of Pipeline Rights-of-Way through Mississippi River Batture, Port Allen, Louisiana Deposition - October 3, 2007
LA Homes, Inc., vs. Parish of Jefferson, et al 24th JDC, Division H, Jefferson Parish, State of Louisiana Docket No. 590-500 Appraisal of Vacant Commercial Land, Marrero, Louisiana Court Testimony - March 28, 2006
Fashion Plantation, LLC vs. Union Pacific Railroad Company United States District Court, Eastern District of Louisiana Case No. 03 - 1812 (N) (3) Market Consultation on Value Loss from Denial of Railroad Crossing Deposition - March 7, 2005
Charles Elmer vs. West Jefferson Levee District 24th JDC, Division B, Jefferson Parish, State of Louisiana Docket No. 375 - 817 Appraisal of 100 Acres Tract of Vacant Land, Westwego, Louisiana Deposition - November 11, 2003
Pontchartrain Levee District vs. Charles A. Ostarly, et al 29th JDC, Division D, St. Charles Parish, State of Louisiana Appraisal of Wetlands for Levee Right-of-Way, St. Rose, Louisiana Court Testimony - December 17 and 18, 2002
United States of America vs. Marcia P. Shornstein, et al United States District Court, Eastern District of Louisiana, Mag. Division I, Section P Case No. 95-2337 Davis Pond Freshwater Diversion Project Deposition and Court Testimony - October, 1996
ARGOTE, DERBES, & TATJE, LLC
QUALIFICATIONS OF THE APPRAISER (Continued) HENRY W. TATJE, III, MAI
COURT APPEARANCES AND DEPOSITIONS SINCE 1985: (Continued)
Louisiana Department of Transportation Development vs. Charbonnet, et al U.S. Highway 90 at I-510/State Project 450 - 43 – 47/I-410 N. O. Loop (Gulf Outlet Bridge - I-10) New Orleans, Louisiana Deposition - January 1995
Chevron Pipeline Company vs Bertha Coleman Riley, et al Empire Terminal 25th Judicial District Court Plaquemine Parish, Louisiana Court Testimony - August, 1994
Parish of Jefferson vs. Marie Krantz Sunset Boulevard Right-of-Way 24th Judicial District Court Jefferson Parish, Louisiana Court Testimony - February, 1994
Finest Foods, Inc., vs. Greater Lakeside Corp. 24th Judicial District Court Jefferson Parish, Louisiana Court Testimony - December, 1992
Sheryl LeBlanc, et al, vs. Janell Faul, et al 24th Judicial District Court Jefferson Parish, Louisiana Court Testimony - December, 1992
Del Remy Corp & Fidelity Insurance Corp. vs. Lafayette Insurance Company Single Family Home Fire Claim 40th Judicial District Court St. John the Baptist Parish, Louisiana Court Testimony - February, 1992
Eastern District U.S. Bankruptcy Court Before Judges Kingsmill and Brahaney Representing F.D.I.C., R.T.C. and or Related Banks and S & L's New Orleans, Louisiana 40+ Appearances in U. S. Bankruptcy Court Between - 1987 and 1992
Numerous State Court Appearances Centering on Road Right-of-Ways, Pipeline Servitudes, etc. From 1985 to Present
ARGOTE, DERBES, & TATJE, LLC
PUBLICATIONS AUTHORED OVER THE PAST 10 YEARS:
None
BASIS FOR COMPENSATION FOR APPRAISAL REPORTS AND TESTIMONY:
$300.00 Per Hour
Qualifications – 2016
ARGOTE, DERBES, & TATJE, LLC