APPRAISAL REPORT Motel 2021 Regal Drive Corsicana, Texas
Total Page：16
File Type：pdf, Size：1020Kb
RESTRICTED USE APPRAISAL REPORT Motel 2021 Regal Drive Corsicana, Texas BY GALBRAITH AND ASSOCIATES, INC. GALBRAITH AND ASSOCIATES, INC. 9817 ANGORA STREET • DALLAS, TEXAS 75218 • 214-320-2122 • FAX: 214-320-2639 March 21, 2013 Linda Huynh EH National Bank 43385 Business Park Drive, Suite 200 Temecula, CA 92590 RE: Appraisal of the Motel, 2021 Regal Drive Corsicana, Texas Dear Ms. Huynh: Pursuant to your request, the purpose of this assignment is to provide the following: A current opinion of Market Value for the Subject property, subject to the Assumptions, Limiting Conditions and Certification contained within the report. The client and intended user of this report is Excel National Bank. Pursuant to the client’s request, this Report has been prepared as a Restricted Use Appraisal Report in conformance with the Uniform Standards of Professional Appraisal Practice (“USPAP”). Per USPAP guidelines, Restricted Use reports are limited for use only by the client referenced above. Furthermore, the appraiser’s opinions and conclusions set forth in a Restricted Use report may not be understood properly without additional information contained within the appraiser’s work file. Nonetheless, per USPAP guidelines, data contained within the appraiser’s work file is sufficient to produce a Summary report. The analysis and conclusions relative to the purpose of this assignment are provided herein. This analysis concludes that the Market Value of the subject’s fee simple interest, as of March 15, 2013 is considered reasonable at: ONE MILLION SIX HUNDRED THIRTY THOUSAND DOLLARS ($1,630,000) Sincerely, Galbraith and Associates, Inc. Will Galbraith, Jr., MAI, SRA Brian Galbraith Texas General Appraisal Certification #1320458G Texas General Appraisal Certification #1336791G SUMMARY OF SALIENT FACTS Subject Property: The subject property consists of a 92-room motel. One building consists of the 48-room Super 8 Motel and the second building will operate as an independent motel after the completion of renovation. Location: 2021 Regal Drive, Corsicana, Texas Parcel No.: 48377, 65949, and 65950 Land Area: 3.013 acres Year Built: 1984 (Renovated in 2008-2009 and 2011-2012) Gross Building Area: 42,835 SF Highest and Best Use: Continued motel use, assuming completion of the eastern building (independent motel) Property Rights Appraised: Fee Simple Interest Effective Date of Value: March 15, 2013 Date of Report: March 21, 2013 Value Indications (Super 8 Motel): Cost Approach Not Applicable Income Approach $980,000 Sales Comparison Approach $975,000 Final Market Value Estimate $980,000 (Super 8 Motel) Value Indications (Independent Motel): Cost Approach Not Applicable Income Approach $860,000 Sales Comparison Approach $850,000 Preliminary Market Value Estimate $860,000 Less: Value Loss Incurred During Stabilization 60,000 Less: Renovation Cost 150,000 Final Market Value Estimate $650,000 (Independent Motel) Total Estimated Value of the Two Motels: Total Estimated Value Super 8 Motel (48-Units) $980,000 Independent Motel (44-Units) $650,000 Total Value $1,630,000 Final Market Value Estimate: $1,630,000 Insurable Value: $2,580,000 Liquidation Value: $1,220,000 TABLE OF CONTENTS Summary of Salient Facts INTRODUCTION Assumptions and Limiting Conditions .................................................................................................................. 1 Extraordinary Assumption ..................................................................................................................................... 1 General Conditions ................................................................................................................................................ 2 Appraiser’s Liability Limitations, Special Report Conditions, and Client Agreements ........................................ 4 Purpose of the Appraisal ........................................................................................................................................ 4 Intended Use of the Appraisal ................................................................................................................................ 5 Property Rights Appraised ..................................................................................................................................... 5 Definition of Market Value ................................................................................................................................... 5 Definition of "Going-Concern" Value ................................................................................................................... 6 Date of Value Estimate .......................................................................................................................................... 6 Date of Report ....................................................................................................................................................... 6 Competency of Appraiser ...................................................................................................................................... 6 Scope of Work ....................................................................................................................................................... 7 Appraisal Methods and Techniques Employed ..................................................................................................... 7 Identification of the Property .................................................................................................................................. 8 History of the Property ........................................................................................................................................... 8 Neighborhood ......................................................................................................................................................... 9 Site Description .................................................................................................................................................... 12 Description of the Improvements ........................................................................................................................ 14 Property Taxes ..................................................................................................................................................... 17 Highest and Best Use ........................................................................................................................................... 18 Value Estimate of the 48-Room Super 8 Motel .................................................................................................... 22 Value Estimate of the 44-Room Independent Motel ............................................................................................ 44 Insurable Value .................................................................................................................................................... 52 Liquidation Value ................................................................................................................................................ 53 Marketing/Exposure Period Analysis .................................................................................................................. 54 ADDENDA Certification of Value Photographs Maps Flood Plain Map Zoning Map Engagement Letter State Certification Qualifications of the Appraiser STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS The Certification of Value appearing in the appraisal report is subject to the following conditions and to such other specific and limiting conditions as are set forth in the report. EXTRAORDINARY ASSUMPTION The Uniform Standards of Professional Appraisal Practice defines an Extraordinary Assumption as “an assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser’s opinions or conclusions. Comment: Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. Pursuant to the client’s request, information relative to the Subject Property is derived from a previous appraisal which was performed by Galbraith and Associates Inc. with an Effective Date of Value of August 9, 2012. Additional information was derived from conversations with management on March 6, 2013 and March 20, 2013. The client is fully aware that Galbraith and Associates Inc. did not make a current inspection and the appraisal is based on the assumption that the building is currently the same or very similar to that of when the previous inspection which is noted above was performed. In addition, data relative to the current opinion of Market Value is based strictly on a desktop review of comparable sale data, as well as consultation with real estate professionals familiar with the Subject’s market area and property type. Therefore, as a result of the limited Scope of Work associated with this assignment, this appraisal is completed under the following Extraordinary Assumptions: 1. That there are no unknown physical, legal or other conditions prevalent on or around the Subject property or the comparable properties that may otherwise have been observed during a field inspection. 2. That there are no unknown physical, legal or other conditions