REAL PROPERTY APPRAISAL REPORT LOTS 9, 10 AND 11 LEHIGH VALLEY WEST INDUSTRIAL PARK, PHASE II 221, 259 & 371 OLDT ROAD (T-517) VILLAGE OF BREINIGSVILLE UPPER MACUNGIE TOWNSHIP LEHIGH COUNTY, PENNSYLVANIA 18031 DIETRICK GROUP CLIENT FILE # 170057 PREPARED FOR: DAREN J MARTOCCI DIRECTOR OF PLANNING & ZONING UPPER MACUNGIE TOWNSHIP 8330 SCHANTZ ROAD BREINIGSVILLE, PENNSYLVANIA 18031 610.395.4892 ● FAX 610.395.9355 www.uppermac.org [email protected] PREPARED BY: LINDA L. DIETRICK, CCIM DIETRICK GROUP, LLC COMMERCE CORPORATE CENTER 5100 W. TILGHMAN STREET, SUITE 320 ALLENTOWN, PENNSYLVANIA 18104 610.391.8888 ● FAX 610.391.8830 www.dietrickgroup.com [email protected] DATE OF APPRAISAL: MAY 27, 2017 REPORT PREPARATION DATE: MAY 31, 2017 Commercial Real Estate Appraisal, Advisory Valuation & Consultation Services May 31, 2017 Mr. Daren J Martocci Director of Planning & Zoning Upper Macungie Township 8330 Schantz Road Breinigsville, Pennsylvania 18031 [email protected] RE: Market Value Appraisal Report Lots, 9, 10 and 11, Phase II, Lehigh Valley West II Industrial Park 221, 259 & 371 Oldt Road (T-517) Village of Breinigsville, Upper Macungie Township, Lehigh County, Pennsylvania 18031 Dietrick Group Client File #: 170057 Dear Mr. Martocci: Dietrick Group LLC is pleased to submit the accompanying appraisal of the above referenced properties. The purpose of the appraisal is to develop opinions of market value for each of the properties in fee simple title. The client and intended user of this report is Upper Macungie Township and/or affiliates, successors, assigns and any additional users including participants specified herein. The intended use of the report is for potential acquisition decisions in conjunction with a land ‘trade’ of acreage along Twin Ponds Road in Upper Macungie Township, Lehigh County, Pennsylvania. The appraisal is intended to conform to the Uniform Standards of Professional Appraisal Practice (USPAP), the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, and applicable state appraisal regulations. The appraisal is also prepared in accordance with the appraisal regulations issued in connection with the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) and the Interagency Appraisal and Evaluation Guidelines issued December 10, 2010. This report is prepared under the appraisal report option of Standards Rule 2-2 of the 2016-2017 Edition of Uniform Standards of Professional Appraisal Practice (USPAP). Because USPAP gives appraisers the flexibility to vary the level of information in an appraisal report depending on the intended use and intended users of the appraisal, I selected Dietrick Group LLC’s internal criteria for a standard format appraisal report. This type of report has a moderate level of detail. It summarizes the information analyzed, the appraisal methods employed and the reasoning that supports the analyses, opinions and conclusions. 5100 Tilghman Street, Suite 320 Allentown, PA 18104 p: 610.391.8888 f: 610.391.8830 www.dietrickgroup.com Mr. Daren J Martocci Upper Macungie Township May 31, 2017 Page Two (2) The subject consists of three (3) contiguous industrial lots that total ±32.57-acres (gross) located in Phase II of Lehigh Valley West Industrial Park, an 18-lot industrial subdivision located in Upper Macungie Township, Lehigh County, Pennsylvania. Identified as Lots 9, 10 and 11, the sites are located on the north side of Oldt Road in the southern portion of the park, in the greater northwest quadrant of an intersection formed by Nestle Way and Oldt Road, south of limited access US Route 22 and west of Pennsylvania Route 100. While the sites vary slightly in gross acreage, i.e., 8.115-acres, 10.703-acres, and 13.753-acres, all sites are within a fully improved industrial park, are fully served by municipal utilities, have moderate sloping topography and are slightly diminished utility due the presence of flood plain and existence of ponds. Despite the aforementioned impediments, a maximum of ±275,000-sf can be built on effective buildable area, as assembled. Based on the valuation analysis in the accompanying report, my fee simple opinion of value, subject to the definitions, assumptions and limiting conditions, and any hypothetical and/or extra-ordinary assumptions expressed in the report, as of the date of property inspection, is: TABLE 1 MARKET VALUE CONCLUSION Lots 9, 10 & 11, Lehigh Valley West Industrial Park Upper Macungie Township, Lehigh County, Pennsylvania 18031 Appraisal Interest Date of Value Premise Appraised Value Opinion Lot 9, 221 Oldt Road, Lehigh Valley West Industrial Park Fee Simple Estate May 27, 2017 $1,480,000 Lot 10, 259 Oldt Road, Lehigh Valley West Industrial Park Fee Simple Estate May 27, 2017 $1,960,000 Lot 11, 371 Oldt Road, Lehigh Valley West Industrial Park Fee Simple Estate May 27, 2017 $2,520,000 The opinions of value expressed in this report are based on estimates and forecasts that are prospective in nature and subject to considerable risk and uncertainty. Events may occur that could cause the performance of the property to differ materially from my estimate, such as changes in the economy, interest rates, and behavior of investors, lenders, and consumers. Additionally, my opinions and forecasts are based partly on data obtained from interviews and third party sources, which are not always completely reliable. Although I am of the opinion that my findings are reasonable based on available evidence, I am not responsible for the effects of future occurrences that cannot reasonably be foreseen at this time. Valuation assumes that the ownership of the subject property includes all rights that may be lawfully owned, that the title to the property is good and marketable and the fee simple ownership is transferable free from all encumbrances except those specified in this report. This report focuses on the value of the real estate only, including just the underlying land, the site as it now exists and the specific tangible assets that are required for such commercial usage. No additional consideration has therefore been given to any of the subject's intangible assets within the scope of this assignment. If you have any questions or comments, please do not hesitate to contact me. It has been a pleasure to assist you on this matter. Respectfully submitted, DIETRICK GROUP LLC Linda L. Dietrick /s/ Linda L. Dietrick, CCIM PA Certified General Real Estate Appraiser Certification Number GA-001509-L NY Certified General Real Estate Appraiser Certification Number: 46000050756 TABLE OF CONTENTS SECTION 1: GENERAL INFORMATION ................................................................................................................................................... 2 PROPERTY IDENTIFICATION ............................................................................................................................................................................................... 2 CURRENT OWNERSHIP & SALES HISTORY ....................................................................................................................................................................... 2 PURPOSE OF THE APPRAISAL ............................................................................................................................................................................................. 2 DEFINITION OF MARKET VALUE ....................................................................................................................................................................................... 3 DEFINITION OF ‘AS IS’ MARKET VALUE ............................................................................................................................................................................ 3 DEFINITION OF EFFECTIVE DATE OF APPRAISAL ............................................................................................................................................................ 3 DEFINITION OF PROPERTY RIGHTS APPRAISED .............................................................................................................................................................. 3 INTENDED USE AND USER ................................................................................................................................................................................................. 3 APPLICABLE REQUIREMENTS ............................................................................................................................................................................................ 4 REPORT FORMAT ................................................................................................................................................................................................................ 4 PRIOR SERVICES ................................................................................................................................................................................................................... 4 EXPOSURE TIME & MARKETING TIME ............................................................................................................................................................................. 4 EXTRAORDINARY ASSUMPTIONS .....................................................................................................................................................................................