Appraisal Report of Real Property
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Appraisal Report Of Real Property Fountain Plaza 100 S. Main St. Minot, ND 58701 Real Property Component Prepared For: Ms. Megan Meis, Gate City Bank 500 2nd Ave. N. Fargo, ND 58102 Assignment Reference: Date of Observation: 05/19/2016 Date of Report: 05/27/2016 Date(s) of Value: 05/19/2016 Fountain Plaza, 100 S. Main St., Minot, ND SECTION I – Introduction C V APPRAISAL SERVICES, INC. © 2016 2 Fountain Plaza, 100 S. Main St., Minot, ND Offices in Bozeman and Savage, Montana providing coverage throughout Montana, North Dakota, Wyoming, Hawai’i and the Rocky Mountain West. 91 Morgan Creek Ln. Bozeman, MT 59718 Tel + 1 406.556.1000 [email protected] Letter of Transmittal Advisory May 27, 2016 Consulting Economic Analysis Ms. Megan Meis, Gate City Bank Feasibility Study nd 500 2 Ave. N. Fargo, ND 58102 Forecasting RE: Fountain Plaza Forensic Analysis Real Property Component 100 S. Main St. Litigation Support Minot, ND 58701 Market Studies Dear Ms. Meis; Research At your request, I have prepared an appraisal report of the above referenced property located in Minot, Ward County, North Dakota. The purpose of this Valuation appraisal was to form an opinion of market value of the subject’s leased fee interest, as‐is. The reader of this report is encouraged to review all of the assumptions and limiting conditions found within this appraisal report. This appraisal was performed subject to all of these assumptions and limiting conditions. Any use of this appraisal report represents a full agreement and adherence to any and all assumptions and limiting conditions included. The intended use of this appraisal report is to assist the intended user with collateral analysis for mortgage lending purposes. The appraisal is intended only for the use of the intended user identified in this report and the use also identified. No other use or users are authorized or allowed and no responsibility is accepted by the appraiser for any other use or users. All applicable research and valuation analyses have been applied and a visual observation of the existing subject property along with physical measurements that were made by the appraiser. The letter of transmittal is accompanied by an C V APPRAISAL SERVICES, INC. © 2016 3 Fountain Plaza, 100 S. Main St., Minot, ND appraisal report which is reported as an Appraisal Report as defined by Uniform Standards of Professional Appraisal Practice (USPAP) under Standards Rule 2‐2, 2016‐2017 Edition. The information contained in this report is specific to the needs of the client and for the intended use as stated in this report. Opinions stated in this report are based on my interpretation of an assemblage of data obtained from the observation of the subject, the comparable sales and other gathered data. The value opinion rendered is subject to the general assumptions and limiting conditions found within this report. Your attention is directed to the assumptions and limiting conditions sections of this report. Acceptance of this appraisal report constitutes a full and binding agreement with these conditions and assumptions. This letter of transmittal must remain attached to the report, which contains (101) pages including related exhibits, for the value opinion set forth to be considered valid. The report, in its entirety, including any and all assumptions and limiting conditions, is an integral part of, and inseparable from this letter. After analyses of data collected during the preparation of this appraisal report, opinions of market value were formed as follows: MARKET VALUE OPINION(S) Appraisal Premise Interest Appraised Date of Value Value Opinion As‐Is, Current Leased Fee May 19, 2016 $775,000 Data Compiled by Christopher C. Seeve Further, the estimated marketing and exposure period necessary for the subject to achieve this value under current market conditions is as follows: EXPOSURE PERIOD ESTIMATE(S) Appraisal Premise Interest Appraised Date of Value Exposure Period As‐Is, Current Fee Simple May 19, 2016 ≈6‐12 Months Data Compiled by Christopher C. Seeve The appraisal report that follows sets forth the most pertinent and meaningful data gathered, techniques used and logic followed leading to the reconciled value opinion. Analysis performed and opinions or conclusions were developed in concordance with guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP) and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. C V APPRAISAL SERVICES, INC. © 2016 4 Fountain Plaza, 100 S. Main St., Minot, ND I hope I have been of assistance to you and appreciate the opportunity to serve your needs. Don’t hesitate contacting me with any questions you may have or if I can be of further assistance to you. Thank you. Sincerely, Christopher C. Seeve 05/27/2016 C V APPRAISAL SERVICES, INC. © 2016 5 Fountain Plaza, 100 S. Main St., Minot, ND Table of Contents SECTION I – Introduction ............................................................................................................ 2 Letter of Transmittal ............................................................................................................... 3 Introduction of the Subject Property ...................................................................................... 8 Certification ............................................................................................................................. 9 Executive Summary ............................................................................................................... 10 SECTION II – Premises of the Appraisal Assignment................................................................. 11 General Assumptions ............................................................................................................ 12 General Limiting Conditions.................................................................................................. 14 Extraordinary Assumption(s) ................................................................................................ 16 Hypothetical Condition(s) ..................................................................................................... 17 Identification of the Appraisal Problem................................................................................ 18 Definition of Market Value ................................................................................................... 19 Ownership Rights & Relationships ........................................................................................ 20 Definition of Real Property Estates for the Appraisal Assignment ....................................... 21 Scope of Work ....................................................................................................................... 22 SECTION III – Presentation of Data ........................................................................................... 24 General Market & Neighborhood Data ................................................................................ 25 General Market Data .................................................................................................................... 25 General Market Area & Neighborhood Maps ...................................................................... 62 Subject Property ................................................................................................................... 65 Subject Site............................................................................................................................ 70 Subject Improvements .......................................................................................................... 72 Flood Map ............................................................................................................................. 75 Plat Map ................................................................................................................................ 76 Building Measurement ......................................................................................................... 77 Subject Photos ...................................................................................................................... 78 Subject Photos ...................................................................................................................... 79 SECTION IV – Analysis of Data & Conclusions ........................................................................... 80 Highest & Best Use ................................................................................................................ 81 C V APPRAISAL SERVICES, INC. © 2016 6 Fountain Plaza, 100 S. Main St., Minot, ND Highest & Best Use, As Though Vacant ................................................................................. 83 Highest & Best Use, As Improved ......................................................................................... 84 The Valuation Process ........................................................................................................... 85 Income Approach .................................................................................................................. 87 Reconciliation ........................................................................................................................ 92 Exposure Time & Marketing Period .....................................................................................