A Market Value Appraisal of Retail & Office Condominiums at 320 Central Ave., Southwest in Albuquerque, New Mexico
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A MARKET VALUE APPRAISAL OF RETAIL & OFFICE CONDOMINIUMS AT 320 CENTRAL AVE., SOUTHWEST IN ALBUQUERQUE, NEW MEXICO A Market Value Appraisal In An Appraisal Report Retail & Office Condominiums Comprising The Rosenwald Building Considering A Fee Simple Title & “Assumed As Is” Condition As Of July 28, 2017 Prepared For Mr. James McNeely Real Property Division City of Albuquerque 600 Second Street, Northwest Albuquerque, New Mexico 87102 Prepared By Bryan E. Godfrey, MAI Godfrey Appraisal Services, Inc. 5600 McLeod Road, NE, Suite C Albuquerque, New Mexico 87109 September 28, 2017 Mr. James McNeely Real Property Division City of Albuquerque 600 Second Street, Northwest Albuquerque, New Mexico 87102 Dear Mr. McNeely: In accordance with our agreement, I have made an investigation, study and appraisal of the mixed-use property commonly known as the Rosenwald Building, located at 320 Central Avenue, SW, in Albuquerque, Bernalillo County, New Mexico. Specifically, the subject property is identified as Condominium Units 100-160, 200-250, 300-350, and all related common areas, comprising the whole of the Rosenwald Building Condominiums. The purpose of the appraisal was to estimate the market value of a fee simple title to the real estate, as described in the following report, considering the property in “assumed as is” condition, as of July 28, 2017. The appraisal also includes estimates of value for two groupings of condominium units. The appraisal is subject to extraordinary assumptions outlined in the following report. As requested, an appraisal using all applicable approaches to value has been developed and is hereby presented in an Appraisal Report (Summary format). The following report contains a legal and physical description of the property, and includes maps, plats, and photographs to help visualize the appraised property. Valuation is based on sales comparison approaches to value. Based on the following report, subject to the underlying assumptions, limiting conditions, and term definitions, contained therein, I conclude that ONE MILLION FIFTY THOUSAND DOLLARS represents the market value of a fee simple title to the real estate (all condominium units as a unified whole), as described in the following report, considering the property in “assumed as is” condition, as of July 28, 2017, subject to the extraordinary assumptions outlined in the following report. Exposure time associated with this value estimate is estimated at up to 24 months, assuming active professional marketing. Consideration of individual condominium clusters led to estimates of value of $875,000 for condominium units comprising the first and second floors (and proportional interest in related common areas), and $470,000 for condominium units that comprise the third floor (and proportional interest in related common areas). Respectfully, Bryan E. Godfrey, MAI, State Certified General Appraiser G-192 APPRAISAL CONCLUSION SUMMARY GENERAL INFORMATION Purpose Of The Appraisal Market Value Estimate Type Of Appraisal Appraisal Using The Sales Comparison Approach Type Of Report Appraisal Report (Summary Format) Property Type Retail & Office Condominium Building Property Location The Rosenwald Building 320 Central Avenue, SW Albuquerque, New Mexico Values Estimated “As Is” On Date Of Inspection Rights Appraised Fee Simple Title Hypothetical Conditions None Extraordinary Assumptions Yes – See Report Date Of Appraisal Report April September 18, 2017 Date Of Property Valuation “Assumed As Is” On July 28, 2017 PROPERTY INFORMATION Site Zoning SU-3 For Intense Commercial Development Site Area 10,650 Square Feet Underlying Total Project Improvement Area 41,730 Square Feet Gross Building Area 9,975 Square Feet Ground Floor 10,455 Square Feet Second Floor 10,650 Square Feet Third Floor 10,650 Square Feet Basement (Storage Only) Easements None Known Highest & Best Use Land: Future Mixed-Use Development Improvements: Speculative Holding Potential Environmental Hazards ACMs Identified In Building VALUATION INFORMATION Replacement Cost Approach Not Used Sales Comparison Approach $1,050,000 All Condominium Units As Unified Whole Income Capitalization Approach Not Used Market Value Conclusion $1,050,000 All Condominium Units As Unified Whole Alternate Valuation $875,000 Condominiums Comprising Floors 1 & 2 $470,000 Condominiums Comprising Floor 3 TABLE OF CONTENTS Preface Albuquerque Metro Area Map 1 Major Arterial Map 2 Area Street Map 3 Neighborhood Aerials 4 Downtown Improvement Map 6 FEMA Flood Map 7 Zoning Map 8 Subject Site Plat 9 Subject Condominium Plats 10 Subject Floor Plans 12 Subject Photographs 14 Introduction Property Identification 21 Legal Description 21 Appraisal Purpose 22 Extraordinary Assumptions 22 Client & Intended User Identification 23 Intended Use 23 Scope Of Work 23 City Data 25 Neighborhood Description 33 Site Description 45 Building Description 47 Property Tax Data 52 Prior Sales 53 Office Market Overview 54 Highest & Best Use 57 Appraisal Appraisal Procedure 61 Sales Comparison Approach 62 Final Value Estimate 67 Exposure Time 68 Alternate Condo Unit Valuation 69 Certification 72 Addendum Assumptions, Conditions, Definitions 73 Sale Details & Maps 77 Zoning Data, Condominium Plats & Documents, Condition Assessment 88 Market Value Appraisal – Appraisal Report Rosenwald Building Condominiums 320 Central Avenue, Southwest Albuquerque, NM, Page 1 ALBUQUERQUE METRO AREA MAP Market Value Appraisal – Appraisal Report Rosenwald Building Condominiums 320 Central Avenue, Southwest Albuquerque, NM, Page 2 MAJOR ARTERIAL MAP Market Value Appraisal – Appraisal Report Rosenwald Building Condominiums 320 Central Avenue, Southwest Albuquerque, NM, Page 3 SUBJECT AREA STREET MAP Market Value Appraisal – Appraisal Report Rosenwald Building Condominiums 320 Central Avenue, Southwest Albuquerque, NM, Page 4 2015 NEIGHBORHOOD AERIAL VIEW Market Value Appraisal – Appraisal Report Rosenwald Building Condominiums 320 Central Avenue, Southwest Albuquerque, NM, Page 5 AERIAL ENLARGEMENT Market Value Appraisal – Appraisal Report Rosenwald Building Condominiums 320 Central Avenue, Southwest Albuquerque, NM, Page 6 DOWNTOWN IMPROVEMENT MAP Market Value Appraisal – Appraisal Report Rosenwald Building Condominiums 320 Central Avenue, Southwest Albuquerque, NM, Page 7 FEMA FLOOD MAP Market Value Appraisal – Appraisal Report Rosenwald Building Condominiums 320 Central Avenue, Southwest Albuquerque, NM, Page 8 ZONE ATLAS MAP Market Value Appraisal – Appraisal Report Rosenwald Building Condominiums 320 Central Avenue, Southwest Albuquerque, NM, Page 9 RECORDED SITE PLAT Market Value Appraisal – Appraisal Report Rosenwald Building Condominiums 320 Central Avenue, Southwest Albuquerque, NM, Page 10 CONDOMINIUM PLAT Market Value Appraisal – Appraisal Report Rosenwald Building Condominiums 320 Central Avenue, Southwest Albuquerque, NM, Page 11 CONDOMINIUM PLAT Market Value Appraisal – Appraisal Report Rosenwald Building Condominiums 320 Central Avenue, Southwest Albuquerque, NM, Page 12 SUBJECT FIRST FLOOR PLAN (MOST PARTITIONS NOW REMOVED) Market Value Appraisal – Appraisal Report Rosenwald Building Condominiums 320 Central Avenue, Southwest Albuquerque, NM, Page 13 SUBJECT SECOND & THIRD FLOOR PLAN (NOT PRECISELY ACCURATE) Market Value Appraisal – Appraisal Report Rosenwald Building Condominiums 320 Central Avenue, Southwest Albuquerque, NM, Page 14 BUILDING LOOKING SOUTHEAST & SOUTHWEST BUILDING LOOKING NORTHEAST & NORTHWEST MAIN CENTRAL AVENUE ENTRY DOORS Market Value Appraisal – Appraisal Report Rosenwald Building Condominiums 320 Central Avenue, Southwest Albuquerque, NM, Page 15 GROUND FLOOR INTERIORS GROUND FLOOR INTERIORS GROUND FLOOR INTERIORS Market Value Appraisal – Appraisal Report Rosenwald Building Condominiums 320 Central Avenue, Southwest Albuquerque, NM, Page 16 GROUND FLOOR COMMON AREAS GROUND FLOOR COMMON AREAS GROUND FLOOR COMMON AREAS Market Value Appraisal – Appraisal Report Rosenwald Building Condominiums 320 Central Avenue, Southwest Albuquerque, NM, Page 17 SECOND FLOOR OFFICE SPACE SECOND FLOOR OFFICE SPACE SECOND FLOOR OFFICE SPACE Market Value Appraisal – Appraisal Report Rosenwald Building Condominiums 320 Central Avenue, Southwest Albuquerque, NM, Page 18 SECOND FLOOR COMMON AREAS SECOND FLOOR COMMON AREAS SECOND FLOOR COMMON AREAS Market Value Appraisal – Appraisal Report Rosenwald Building Condominiums 320 Central Avenue, Southwest Albuquerque, NM, Page 19 THIRD FLOOR OFFICE SPACE THIRD FLOOR OFFICE SPACE THIRD FLOOR OFFICE SPACE Market Value Appraisal – Appraisal Report Rosenwald Building Condominiums 320 Central Avenue, Southwest Albuquerque, NM, Page 20 BASEMENT SPACE BASEMENT SPACE FREIGHT ELEVATOR & NEW ROOF Market Value Appraisal – Appraisal Report Rosenwald Building Condominiums 320 Central Avenue, Southwest Albuquerque, NM, Page 21 Identification Of The Subject Property The subject of this appraisal is all of the condominium units that comprise an unoccupied commercial building situated in the downtown central business district (“CBD”) of Albuquerque, New Mexico. Though not large, perhaps only about eight blocks by ten blocks, the CBD remains the home of concentrated City, County, State and Federal government offices and judicial facilities, and has one of the city’s densest concentrations of professional and institutional offices. Like many downtown districts, Albuquerque’s CBD seems constantly in the midst of “revitalization”. Federal, County and Metro Courthouse buildings, and office buildings for various government agencies have been built