Lower Pontalba Building Real Estate Counseling Market Rental Study- 28 Apartment Units 503, 509, 511, 515, 519, 527, 531, 535, 539, 541, and 543 St
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LOWER PONTALBA BUILDING REAL ESTATE COUNSELING MARKET RENTAL STUDY- 28 APARTMENT UNITS 503, 509, 511, 515, 519, 527, 531, 535, 539, 541, AND 543 ST. ANN STREET 806 AND 810 CHARTRES STREET AND 807 AND 811 DECATUR STREET NEW ORLEANS, LOUISIANA PREPARED FOR STEVEN V. MAKLANSKY ASSISTANT SECRETARY OFFICE OF THE STATE MUSEUM 751 CHARTRES STREET NEW ORLEANS, LOUISIANA 70116 APPRAISER GAYLE H. BOUDOUSQUIE, MAI LOUISIANA CERTIFIED GENERAL REAL ESTATE APPRAISER, LICENSE NO. G0125 AND BONNIE R. CURRY LOUISIANA CERTIFIED GENERAL REAL ESTATE APPRAISER LICENSE NO. G1023 AS OF JULY 10, 2017 2017 Rent Study lower Pontalba.doc 1 Appraisal Report Lower Pontalba Apartments, New Orleans, La. Gayle Boudousquie & Associates 228 St. Charles Ave. Suite 1331 New Orleans, LA. 70130 (504) 525-5700 Cell (504) 495-2772 E-mail [email protected] August 25, 2017 Mr. Steven V. Maklansky Assistant Secretary Office of the State Museum 751 Chartres Street New Orleans, Louisiana 70116 Our File No. Lower Pontalba 2017 Rent Study Re: Real Estate Counseling Market Rent Study Lower Pontalba Building 503-543 St. Ann Street 806-810 Chartres Street 807-811 Decatur Street New Orleans, Louisiana Dear Mr. Maklansky: In accordance with your letter of instruction, we have physically inspected the above referenced property, and analyzed data relevant to the estimation of current market rent as defined in the body of this report for each of the 28 individual units. The assignment is to determine the current market rent for 28 separate apartment units on the 2nd and 3rd floors of the Lower Pontalba Apartments. The Lower Pontalba (owned by the State of Louisiana) and the Upper Pontalba (owned by the city of New Orleans, directly on the other side of Jackson Square) are believed to be the first commercially rented apartment buildings in the United States. The apartment units in the Lower Pontalba range in size from 942 to 1,727 square feet. In the French Quarter usage is based on number of rooms rather than number of bedrooms. The condition of the units ranges from average to excellent. There are two townhouse units fronting St. Ann Street, both in excellent condition. One unit is held vacant and is utilized by the “State Museum” as a complementary unit for overnight museum guests. An individual analysis will be performed for each unit projecting a market rent and will include a floor plan and photo. In 2016 new interior unit floor plans were drawn by the State Museum and are incorporated in this report. All rents are based on the current rentable area. Based upon the analysis and conclusions presented in the body of the report, as well as current economic conditions, it is our opinion the current market rent for the units ranges from $1.35 per square foot to $2.60 per square foot. A complete unit-by-unit analysis is contained within the report. 2017 Rent Study lower Pontalba.doc 2 Appraisal Report Lower Pontalba Apartments, New Orleans, La. Steven V. Maklansky Page 2 The effective date of the rental study is July 10, 2017. Units were inspected between July 10, 2017 and July 11, 2017. Following are the projected rents for each apartment: Lower Pontalba Current Current Condition/ Projected Projected Sec.# Unit # Size Total Rent Tenant Quality Rent Rent Per sq. Rent ft. Per sq. ft. Rounded St. Ann 1 503-2 1,510 $3,835 $2.54 McNamara Exc/Good $2.40 $3,625 2 503-3 1,453 $2,903 $2.00 MelanconGood/Avg. $1.90 $2,760 3 509-T 1,013 $2,405 $2.37 Berger Excl./Good $2.60 $2,635 4 511-2 1,547 $2,382 $1.54 Holden Avg./Older $1.50 $2,320 5 511-3 1,597 $3,059 $1.92 Caples Good/Good $1.90 $3,035 6 515-2 1,681 $2,382 $1.42 Sahuc Avg./Older $1.35 $2,270 7 515-3 1,644 $2,595 $1.58 Cole Avg/Avg. $1.55 $2,465 8 519-2 1,693 $2,570 $1.52 Lambert Avg/Avg. $1.55 $2,625 9 519-3 1,727 $3,479 $2.01 Crane Good/Good $1.85 $3,195 10 527-2 1,608 $2,570 $1.60 Georges Avg/Avg. $1.60 $2,575 11 527-3 1,687 $3,059 $1.81 Maurin Good/Good $1.90 $3,205 12 531-2 1,682 $3,252 $1.93 Hogan Excl./Good $2.30 $3,870 13 531-3 1,550 N/A N/A Vacating Good/Good $1.95 $3,025 14 535-2 1,622 N/A N/A Vacant Good/Good $2.00 $3,245 15 535-3 1,526 $3,552 $2.33 Dumas Good/Good $1.95 $2,975 16 539-2 1,603 $3,622 $2.26 Simpson Good/Good $2.00 $3,205 17 539-3 1,586 $2,885 $1.82 Woodridge Good/Avg. $1.85 $2,935 Middleber 18 541-t 942 $2,242 $2.38 g Excl./Good $2.60 $2,450 19 543-2 1,548 $3,236 $2.09 Berger Good/Good $2.05 $3,175 20 543-3 1,508 $3,185 $2.11 Creed Good/Good $1.95 $2,940 Chartres 21 806-2 1,269 N/A N/A Museum Good/Good $2.05 $2,600 22 806-3 1,300 $2,681 $2.06 LeydeckerGood/Good $1.95 $2,535 23 810-2 1,202 $2,388 $1.99 Lewis Good/Avg. $2.00 $2,405 24 810-3 1,295 $2,305 $1.78 McNalty Good/Avg. $1.90 $2,460 Decatur 25 807-2 1,325 N/A N/A Vacating Good/Good $2.05 $2,720 26 807-3 1,295 $2,161 $1.67 Lafaye Avg./Avg. $1.40 $1,815 27 811-2 1,200 $2,497 $2.08 Ahers Good/Good $2.05 $2,460 28 811-3 1,230 $2,550 $2.07 Bayer Good/Good $2.00 $2,460 2017 Rent Study lower Pontalba.doc 3 Appraisal Report Lower Pontalba Apartments, New Orleans, La. Steven V. Maklansky Page 3 Although Commercial rents carry an expense pass through to the tenant, residential rents reflect the tenant paying electrical/gas utilities and the landlord paying water/sewerage/garbage and all other expenses to maintain the property. The rents in this report do not add any pass through expenses, and reflect only market information for units in close proximity to the Subject. The location adjustment in each grid reflects the fact that the Subject is on Jackson Square. We hereby certify that we have no present or future contemplated interest in the subject property or any related third party interest in this property. This letter of transmittal only serves to report the final value estimate conclusion reached in the report, which follows, and must not be misconstrued to represent a complete appraisal in and of itself. This report is subject to the assumptions and limiting conditions as stated herein. We sincerely hope this report serves the needs of Louisiana State Museum adequately. If there are any questions or if we may be of further service, please feel free to call. Respectfully submitted, Gayle H. Boudousquie, MAI Bonnie R. Curry Louisiana Certified General Louisiana Certified General Real Estate Appraiser License, No. G0125 Real Estate License No. G1023 2017 Rent Study lower Pontalba.doc 4 Appraisal Report Lower Pontalba Apartments, New Orleans, La. CONSULTING CERTIFICATION We certify that, to the best of our knowledge and belief . - the statements of fact contained in this report are true and correct. - the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and is our personal, unbiased professional analyses, opinions, and conclusions. - We have no present or perspective interest in the property that is the subject of this report, and we have no personal interest or bias with respect to the parties involved. - our compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this report. - the analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics of which the undersigned is a member of The Appraisal Institute. - the analyses, opinions, and conclusions were developed and this report prepared in conformity with the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation and the Louisiana Certified Real Estate Appraisers Law. - the use of this report is subject to the requirements of the appraisal organizations of which the appraiser is a member relating to review by its duly authorized representatives. - We have made a personal inspection of the property that is the subject of this report. We have made an exterior inspection of the comparables that are used in this report. - no one other than associates in this office or outside consultants as noted provided significant professional assistance in the preparation of this report. - the consulting assignment was not based on a requested minimum valuation, or specific valuation or the approval of a loan. - the undersigned designated appraisers have completed the requirements under the continuing education program of the appraisal organizations for which he is a member. - We have completed previous consulting assignments of similar type properties. ___________________________________ _________________________________ GAYLE H. BOUDOUSQUIE, MAI BONNIE R. CURRY LOUISIANA CERTIFIED GENERAL LOUISIANA CERTIFIED GENERAL REAL ESTATE APPRAISER LICENSE No. G-0125 REAL ESTATE APPRAISER LICENSE NO. G1023 2017 Rent Study lower Pontalba.doc 5 Appraisal Report Lower Pontalba Apartments, New Orleans, La. QUALIFICATIONS OF THE APPRAISER – GAYLE H. BOUDOUSQUIE, MAI – Page 1 APPRAISER: GAYLE H.