Maritime Park Parcel 1 41,873 Square Foot Vacant Site Southeast Corner of Main Street & Spring Street Pensacola, Florida
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MARITIME PARK PARCEL 1 41,873 SQUARE FOOT VACANT SITE SOUTHEAST CORNER OF MAIN STREET & SPRING STREET PENSACOLA, FLORIDA PART ONE: INTRODUCTION ii SELF CONTAINED APPRAISAL REPORT TITLE PAGE PROJECT NAME Maritime Park Parcel 1 41,873 Square Foot Vacant Site LOCATION Southeast Corner of Main Street & Spring Street Pensacola, Florida DATE OF VALUE DATE OF REPORT March 30, 2012 March 30, 2012 PREPARED FOR Community Maritime Park Associates, Inc. C/O Edward E. Spears City of Pensacola 5th Floor, City Hall 222 West Main Street Pensacola, Florida 32521-0062 Fruitticher Lowery Appraisal Group 3000 Langley Avenue, Suite 402 Pensacola, Florida 32504 iii 3000 LANGLEY AVENUE * SUITE 402 * PENSACOLA, FLORIDA 32504 * (850) 477-0419 FAX (850)477-7931 March 30, 2012 Community Maritime Park Associates, Inc. C/O Edward E. Spears City of Pensacola 5th Floor, City Hall 222 West Main Street Pensacola, Florida 32521-0062 Letter of Transmittal RE: A Self-Contained Appraisal Report of the Maritime Park Parcel 1 Dear Mr. Spears: At your request, an inspection has been made of the above referenced property for the purpose of estimating the current market value of the fee simple interest. In compliance with the "Uniform Standards of Professional Appraisal Practice", this letter of transmittal is followed by a self-contained appraisal report in which all applicable approaches to value are used and with the value conclusion reflecting all known information about the subject property, current and projected market conditions, and other available data. This report contains to the fullest extent possible and practical, explanations of the data, reasoning and analysis used to develop the opinion of value. It also includes thorough descriptions of the subject property, the property’s locale, the market for the property type, and my opinion of highest and best use. Market value will be defined in the appraisal report, but basically assumes a willing buyer-seller, both knowledgeable of the subject real estate market and with the valuation at the property's highest and best use. Both exposure and marketing time periods are estimated to be between six to twelve months. Our office has not previously appraised the subject property in the last three years. RODGER K.LOWERY, MAI TOM FRUITTICHER, MAI State-Certified General Real Estate Appraiser State-Certified General Real Estate Appraiser FL #RZ0001922 * AL #G00445 FL #RZ0002029 * AL #G00788 iv Mr. Edward E. Spears March 30, 2012 Page Two Subject to the above and the limiting conditions and certification as set forth herein, it is my opinion that the market value of the Fee Simple estate as of the last date of inspection, March 30, 2012, was: ONE MILLION ONE HUNDRED THIRTY THOUSAND DOLLARS $1,130,000 (Fee Simple Market Value) The above value gives no consideration to the extraordinary foundation costs that might be associated with a specific building type, as this can vary widely depending on the structure constructed. In addition to the fee simple market value, I also conducted a survey of area developers who are active in land leasing. They identified their required returns and typical net lease structures which are identified within this report in an effort to give the Community Maritime Park Associates guidance for potential land lease negotiations. This information can be found on pages 69-72 of this report. I hereby certify I have no interest, present or contemplated, in the appraised property. This appraisal has been prepared utilizing all of the requirements set forth as Standards for Real Estate Appraisals as established for federally related transactions and the State of Florida. The appraisal conforms to the Uniform Standards of Professional Appraisal Practice (USPAP). The fee for this appraisal was not based on a minimum value nor was the assignment undertaken based on a pre-determined value or guaranteed loan amount. I appreciate the opportunity of doing this work for you and your client. After your review, should you have questions, please call. Respectfully submitted, Tom Fruitticher, MAI State-Certified General Real Estate Appraiser #2029 Email – [email protected] Contact Phone – 850-477-0419 v TABLE OF CONTENTS PART ONE: INTRODUCTION ...............................................................................................................................II TITLE PAGE...........................................................................................................................................................III LETTER OF TRANSMITTAL ....................................................................................................................................... IV TABLE OF CONTENTS........................................................................................................................................ VI CERTIFICATION ................................................................................................................................................. VII SUMMARY OF IMPORTANT CONCLUSIONS ............................................................................................... VIII PART TWO: PREMISES OF THE APPRAISAL...................................................................................................1 ASSUMPTIONS AND LIMITING CONDITIONS.................................................................................................2 POLICY STATEMENT OF THE APPRAISAL INSTITUTE .................................................................................4 PURPOSE OF APPRAISAL ....................................................................................................................................5 USE OF APPRAISAL ..............................................................................................................................................5 MARKET VALUE DEFINITION AND IMPLICATIONS .....................................................................................6 MARKET RENT DEFINITION AND IMPLICATIONS.........................................................................................7 DATE OF VALUE AND OF PROPERTY INSPECTIONS.....................................................................................8 PROPERTY RIGHTS APPRAISED ........................................................................................................................8 SCOPE OF THE APPRAISAL.................................................................................................................................9 PART THREE: PRESENTATION OF DATA.......................................................................................................10 IDENTIFICATION OF THE PROPERTY.............................................................................................................11 NEIGHBORHOOD ANALYSIS............................................................................................................................25 SITE DESCRIPTION .............................................................................................................................................30 PHOTOGRAPHS ...................................................................................................................................................33 LAND USE PLANNING & ZONING....................................................................................................................43 PUBLIC AND PRIVATE RESTRICTIONS ..........................................................................................................45 ENVIRONMENTAL CONCERNS........................................................................................................................45 TAXES AND ASSESSMENT ANALYSIS ...........................................................................................................45 FIVE YEAR HISTORY..........................................................................................................................................46 PART FOUR: ANALYSIS OF DATA AND CONCLUSIONS.............................................................................47 HIGHEST AND BEST USE...................................................................................................................................48 EXPOSURE TIME .................................................................................................................................................51 MARKETING TIME..............................................................................................................................................52 THE VALUATION PROCESS ..............................................................................................................................53 SALES COMPARISON APPROACH ...................................................................................................................54 FINAL LAND VALUE OPINION .........................................................................................................................70 LAND RENTAL ANALYSIS ................................................................................................................................71 ADDENDA.................................................................................................................................................................76 QUALIFICATIONS AS AN APPRAISER ............................................................................................................77 vi CERTIFICATION I certify that, to the best of my knowledge and