Golden Isles Baptist Church

Transcription

APPRAISAL REPORT
Proposed Golden Isles Baptist Church
Proposed Worship Facility
12 Acres, Harry Driggers Boulevard
Brunswick, GA 31525
Prepared For:
Five Star Credit Union
P.O. Box 2028
Dothan , AL 36302
Requested By:
Amanda Lowe
As Of:
May 1, 2014
By:
Dustin A. Lewis, MAI, SRA
DUSTIN LEWIS APPRAISAL ASSOCIATES, INC.
99 PALMETTO STREET
ST. SIMONS ISLAND, GA 31522
DUSTINLEWISAPPRAISALASSOCIATES.COM
(912)634-8330
DUSTIN LEWIS APPRAISAL ASSOCIATES
View of Subject Property
TABLE OF CONTENTS
Page
Summary of Salient Facts and Conclusions .................................................................................................. 1 Purpose of the Appraisal ............................................................................................................................... 1 Intended Use/Client and Intended User(s) .................................................................................................... 2 Competency of the Appraisers ...................................................................................................................... 2 Interest Appraised ......................................................................................................................................... 2 Effective Date of Value ................................................................................................................................ 2 Date of Report ............................................................................................................................................... 2 Scope of Work .............................................................................................................................................. 3 Legal Description ............................................................................................................................. 4 Property History/Ownership ............................................................................................................ 4 Taxes and Assessments .................................................................................................................... 4 Neighborhood Description ............................................................................................................................ 7 Site Description ........................................................................................................................................... 13 Topography/Drainage .................................................................................................................... 13 Soil/Subsurface .............................................................................................................................. 13 Environmental Concerns ................................................................................................................ 13 Rail Access .................................................................................................................................... 13 Functional Utility ........................................................................................................................... 13 Off-Site Improvements .................................................................................................................. 13 Adjacent Properties ........................................................................................................................ 13 Utilities and Services ..................................................................................................................... 13 Subject Utilities.............................................................................................................................. 13 Zoning Designation........................................................................................................................ 14 HUD Flood Data ............................................................................................................................ 14 Easements and Encroachments ...................................................................................................... 14 Improvements Description .......................................................................................................................... 19 General Details .............................................................................................................................. 19 General Layout/Efficiency ............................................................................................................. 19 Construction Details....................................................................................................................... 19 Americans with Disabilities Act (ADA) ........................................................................................ 20 Highest and Best Use .................................................................................................................................. 24 Physically Possible ........................................................................................................................ 24 Legally Permissible........................................................................................................................ 25 Financially Feasible/Maximally Productive .................................................................................. 31 As If Vacant ................................................................................................................................... 31 As Improved .................................................................................................................................. 31 Appraisal Procedure .................................................................................................................................... 32 Valuation ..................................................................................................................................................... 34 Cost Approach ............................................................................................................................................ 34 Land Adjustment Grid ................................................................................................................... 45 Land Sales Analysis ....................................................................................................................... 47 Replacement Cost New ............................................................................................................................... 48 DUSTIN LEWIS APPRAISAL ASSOCIATES
TABLE OF CONTENTS
Page
Sales Comparison Approach ....................................................................................................................... 50 Improved Comparable Write-ups .................................................................................................. 51 Improved Sales Adjustment Grid................................................................................................... 62 Improved Sales Analysis................................................................................................................ 64 Income Approach ........................................................................................................................................ 66 CERTIFICATION ...................................................................................................................................... 67 ASSUMPTIONS ......................................................................................................................................... 69 DEFINITIONS ............................................................................................................................................ 72 ADDENDA
Subject Exhibits
Engagement Letter
Qualifications of Appraisers
99 Palmetto Street, St. Simons Island, GA 31522
(912)634-8330 (888)335-8330 Fax: (912)634-8347
www.dustinlewisappraisalassociates.com
E-Mail: [email protected]
May 8, 2014
Ms. Amanda Lowe
Five Star Credit Union
P.O. Box 2028
Dothan , AL 36302
Re: The subject of this appraisal is a proposed 6,700 square foot worship facility located on Harry Driggers
Boulevard, conisisting of worship area, stage/platform, kitchen, classrooms, nursery, minister's study, and
other site improvements.
Dear Ms. Lowe:
Thank you for the opportunity to provide appraisal services. Based on our agreement with you, we have
performed an appraisal and reported our findings in this Appraisal Report. This report is intended to comply
with the reporting requirements under Standards Rule 2.2(a) of the Uniform Standards of Professional
Appraisal Practice (USPAP 2014-2015 edition).
This appraisal is based on plans and specifications provided by the borrower for a proposed 6,700
square foot worship facility o a 12.39 acre tract. As of the date of inspection, the property is in the
process of being cleared for construction; however, no vertical construction is in place.
The purpose of this appraisal is mortgage finance. The fee simple interest was appraised; liens and
encumbrances, if any, have been disregarded. It should be noted that the fee simple interest is being
appraised, not the leased fee interest.
The subject is a proposed worship facility. Since the building is a specialty purpose building, similar
overall consideration is applied to the sales comparison approach and cost approach.
The subject of this appraisal assignment is currently a vacant parcel. The majority of this assignment is
performed under the extraordinary assumption that the subject is constructed within a 24 week time period,
but valued as if complete at the current time.
As this is proposed construction, the completed
improvements could vary from plans and specifications. This appraisal is contingent on a final inspection
upon completion.
This report is the result of the appraiser and client concurring on the appropriate valuation methods
based on the subject property specifics resulting in a credible value opinion. The following Table
summarizes our value conclusions and relevant data. The scope of the appraisal and the definition of market
value are found in the Introduction section of this report.
Our analysis produced the following value opinion for the property as of May 1, 2014.
“As Is” Market Value
Two Hundred Eighty Thousand Dollars
$280,000
Prospective “Upon Completion” Market Value as of October 1, 2014
One Million Two Hundred Thousand Dollars
$1,200,000
The following report sets out our reasoning, methodology, and conclusions. It has been prepared in
accordance with the appraisal standards and procedures as currently promulgated by the Appraisal
Standards Board of the Appraisal Foundation (USPAP 2014-2015 Edition). The report is also prepared in
accordance with the standards of Five Star Credit Union as well as the Code of Professional Ethics and
Standards of Professional Practice of the Appraisal Institute. This report reflects a self-contained
appraisal report.
We strive to present the most timely market data with pertinent analytical methods reflective of
current market participants. Nonetheless, we are receptive to suggestions of methodology, presentation or
other concerns about this report. We appreciate this opportunity to provide service and look forward to
providing appraisal or consulting services for Five Star Credit Union in the future.
Respectfully submitted,
Certified General
5465
GIBC Proposed
Table 1
Summary of Salient Facts and Conclusions
Property Name
Proposed Golden Isles Baptist Church
Property Address
12 Acres, Harry Driggers Boulevard
Brunswick GA 31525
Property Location
West Side of Harry Driggers Boulevard, Immediately
North of Southern Landing Subdivision
Property Tax Identification Number(s)
03-15022
Owner of Record
Golden Isles Baptist Church of Glynn County, Inc.
Date of the Report
May 8, 2014
Effective Date of the Appraisal
May 1, 2014
Property Rights Appraised
fee simple interest
Land Area
539,708 square feet, 12.39 acres
Gross Building Area
6,700 square feet
Building Size Useable
6,700 square feet
Occupancy
Proposed-Owner Occupied
Parking/Ratio
36 spaces; 0.19 spaces per 1,000 sq. ft. of building area
Year Built
2014
Actual/Physical Age
0 years
Effective Age of Building(s)
0 years
Total Economic Life
50 years
Remaining Economic Life
50 years
Zoning Designation
The property is zoned PD-G, Planned DevelopmentGeneral by Glynn County. The property has a proposed
worship facility land use.
Highest and Best Use As Vacant
Worship facility
Highest and Best Use As Improved
Estimated Exposure Time and Marketing Period
Highest_and_best_use_improved
12-months 12-months
Market Value Conclusions
Prospective
“Upon Completion”
$1,570,000
$940,000
n/a
Cost Approach
Sales Comparison Approach
Income Approach
Land
Excess Land
Going Concern/Business
Value
FF&E
Final Value Conclusion
“As Is”
$280,000
$280,000
n/a
$280,000
n/a
n/a
n/a
$280,000
$1,200,000
Purpose of the Appraisal
The purpose of this appraisal is mortgage finance of the fee simple interest of the subject.
Intended Use/Client and Intended User(s)
The intended use of this report is for construction finance of a new loan. It is our understanding that
the intended user of the report is for Five Star Credit Union, the client. The definition of market value
relied upon is included before the Addenda.
Competency of the Appraisers
The appraisers' specific qualifications are included within this report. These qualifications serve as
evidence of their competence for the completion of this appraisal assignment in compliance with the
competency provision in USPAP. The appraisers' knowledge and experience, combined with their
professional qualifications, are commensurate with the complexity of this assignment. The appraisers
have previously provided consultation and value opinion for properties similar to the subject in GA.
Interest Appraised

Fee Simple Interest is absolute ownership unencumbered by any other interest or estate, subject
only to the limitations imposed by the governmental powers of taxation, eminent domain, police
power, and escheat.

Leased Fee Interest is an ownership interest held by a landlord with the rights of use and
occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the
lessee are specified by contract terms contained within the lease.
Effective Date of Value
May 1, 2014
Date of Report
May 8, 2014
Scope of Work
Scope of work is the most critical decision an appraiser will make in performing an assignment.
Solving an appraisal problem involves three steps:
1. Identifying the problem
2. Determining the solution (or scope of work)
3. Applying the solution
None of the three steps can be omitted, and each must be performed in order. To analyze the
problem, the appraiser identifies seven key assignment elements: (1) client, (2) intended users in addition
to the client, (3) intended use, (4) objective of the appraisal, or type of value and its definition, (5)
effective date, (6) property characteristics that are relevant to the assignment such as the interest to be
valued and physical and legal characteristics), and (7) assignment conditions such as hypothetical
conditions, extraordinary assumptions, and other requirements. These elements provide the framework for
the assignment and allow the appraiser to identify the problem to be solved.
The second step is to determine the scope of work to solve the problem. Scope of work encompasses
all aspects of the valuation process, including which approaches to value will be used; how much data is
to be gathered, from what sources, from which geographic area, and over what time period; the extent of
the data verification process; and the extent of property inspection, if any. The scope of work decision is
appropriate when it allows the appraiser to arrive at credible assignment results and is consistent with the
expectations of similar clients and the work that would be performed by the appraiser’s peers in a similar
situation.
Source: Appraisal of Real Estate 14th Edition
Inspection
Representing the Appraisal Associates at the time of inspection was Dustin A. Lewis, MAI, SRA.
The Appraisal Associates, Inc.’s professionals are not engineers and are not competent to judge matters
of an engineering nature, nor has Dustin Lewis Appraisal Associates, Inc. retained independent structural,
mechanical, electrical, or civil engineers in connection with the report. As such, The Appraisal Associates,
Inc.makes no representations relative to the condition of the improvements, if any exist. Unless otherwise
noted in the report, no problems were brought to the attention of The Appraisal Associates, Inc.’s
professionals by ownership or management.
Unless otherwise noted, The Appraisal Associates, Inc.’s professionals inspected less than 100% of the
entire interior and exterior portions of the improvements. If questions regarding engineering studies are
critical to the decision process of the reader, the advice of competent engineering consultants should be
obtained and relied upon.
Data Research
We collected factual information about the subject property and the surrounding market. Our
research included Navica MLS, GAMLS, LoopNet, GSCCCA, appraisal files and to some degree the
Glynn County Property Appraiser’s Office. We generally researched two years from the date of our
valuation including reviewing any relevant current listings. We confirmed that information with various
sources such as buyers, sellers and brokers.
Methodology
The subject is a proposed worship facility. Since the building is a specialty purpose building, similar
overall consideration is applied to the sales comparison approach and cost approach.
Legal Description
We have provided a copy of the legal description in the Addenda of this report.
Property History/Ownership
According to the Glynn County Property Appraiser’s Office, the current owner of record is Golden
Isles Baptist Church of Glynn County, Inc.. The property is identified as 03-15022.
The subject property transferred, as vacant land, from The Trustees of First Baptist Church of
Brunswick to Golden Isles Baptist Church of Glynn County on 12/5/2011 for $118,000. This transaction
does not appear at arm’s length as buyer and seller are of the same denomination. The subject is not
currently listed for sale, nor are there any known agreements for the purchase of the subject property.
Taxes and Assessments
As the subject is owned by a religious organization and is not an income producing property, the subject
is not taxed as real estate by the local taxing authority.
Definition of Market Value1
Market Value means the most probable price which a property should bring in a competitive and open
market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and
knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the
consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions
whereby:
1. buyer and seller are typically motivated;
2. both parties are well informed or well advised and acting in what they consider their own best
interests;
3. a reasonable time is allowed for exposure in the open market;
4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements
comparable thereto; and
5. the price represents the normal consideration for the property sold unaffected by special or
creative financing or sales concessions granted by anyone associated with the sale.
1
Definition is from regulations published by federal regulatory agencies pursuant to Title XI of the
Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 between July 5, 1990,
and August 24, 1990, by the Federal Reserve System (FRS), National Credit Union Administration
(NCUA), Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS), and the
Office of Comptroller of the Currency (OCC). This definition is also referenced in regulations jointly
published by the OCC, OTS, FRS, and FDIC and in the Interagency Appraisal and Evaluation Guidelines,
dated December 2, 2010.
Client
The party or parties who engage an appraiser (by employment or contract) in a specific assignment.
Assignment
A valuation service provided as a consequence of an agreement between an appraiser and a client.
Intended Use
The use or uses of an appraiser’s reported appraisal, appraisal review, or appraisal consulting
assignment opinions and conclusions, as identified by the appraiser based on communication with the
client at the time of the assignment.
Intended User
The client and any other party as identified, by name or type, as users of the appraisal, appraisal
review, or appraisal consulting report by the appraiser on the basis of communication with the client at the
time of the assignment.
Marketing Time
The reasonable marketing time is an opinion of the amount of time it might take to sell a real or
personal property interest at the concluded Market Value level during the period immediately after the
effective date of an appraisal. Marketing time differs from exposure time, which is always presumed to
precede the effective date of an appraisal. In this instance, we have determined a 12-months marketing time
for the subject.
Exposure Time
Reasonable exposure time is one of a series of conditions in most Market Value definitions.
Exposure time is always presumed to precede the effective date of the appraisal.
Exposure time may be defined as follows: the length of time the property interest being appraised
would have been offered on the market prior to the hypothetical consummation of a sale at Market Value
on the effective date of the appraisal; a retrospective opinion based on an analysis of past events assuming
a competitive and open market.
Exposure time is different for various types of property and under various market conditions. It is
noted that the overall concept of reasonable exposure encompasses not only adequate, sufficient, and
reasonable time but also adequate, sufficient, and reasonable effort. This statement focuses on the time
component.
The fact that exposure time is always presumed to occur prior to the effective date of the appraisal is
substantiated by related facts in the appraisal process: supply/demand conditions as of the effective date
of the appraisal; the use of current cost information; the analysis of historical sales information (sold after
exposure and after completion of negotiations between the seller and buyer); and the analysis of future
income expectancy projected from the effective date of the appraisal.
Source: Standards 6 (SMT-6) Uniform Standards of Professional Appraisal Practice, 2014-2015 Edition,
published by the Appraisal Standards Board of the Appraisal Foundation
Exposure period can be based on statistical information about days on market; information gathered
through sales verification and interviews of market participants. In this instance, we have determined a 12month exposure time for the subject.
The Market Value of the property appraised in this report is determined as of the date shown in the
Certification. Constantly changing economic conditions have varying effects upon real property values.
Even after the passage of a relatively short period of time, property values may change substantially.
Extraordinary Assumption
An assumption, directly related to a specific assignment, which, if found to be false, could alter the
appraiser’s opinions or conclusions.
Comment: Extraordinary assumptions presume as fact otherwise uncertain information about
physical, legal, or economic characteristics of the subject property; or about conditions external to the
property, such as market conditions or trends; or about the integrity of data used in an analysis.
The definition of “extraordinary assumption” builds upon the definition of “assumption”. Therefore,
the first thing to acknowledge with regard to an extraordinary assumption is that we really believe an
extraordinary assumption to be true. Second, we acknowledge that if we found that the extraordinary
assumption was actually not true, then our value opinion could be impacted or changed as a result. This is
what makes it extraordinary, because it is so relevant to our appraisal or value opinion. Therefore SR 21(a) requires that all extraordinary assumptions be disclosed, so that everyone knows that the value
opinion depends upon the extraordinary assumption being true.
Hypothetical Condition
That which is contrary to what exists but is supposed for the purpose of analysis.
Extraordinary Assumptions Compared to Hypothetical Conditions
The best way to distinguish between an extraordinary assumption and a hypothetical condition is, if as
of the date of value, the condition in question is known to be false; then it is a hypothetical condition. If, as
the date of value, the fact of the condition is unknown and it is reasonable to believe that the condition is
true, then the condition is an extraordinary assumption.
Comment: Hypothetical conditions assume conditions contrary to known facts about physical, legal, or
economic characteristics of the subject property; or about conditions external to the property, such as
market conditions or trends; or about the integrity of data used in an analysis.
Neighborhood Description
The subject is located along Harry Driggers Boulevard. This area is mostly comprised of single-family
residential developments, cluster homes, and apartments. There is a public recreation park, a county public
elementary school and a public middle school along Harry Driggers. Nearby amenities include a
convenience center, a regional mall, and two outdoor centers, access to Interstate 95. Nearby employers
include the Federal Law Enforcement Training Center, a Georgia Pacific fluff pulp plant, Pinova mill, and
local government offices. This location is approximately 10 to 15 minutes from the Central Business
District of Glynn County/Brunswick.
Site Description
The subject is a rectangular shaped 12.39 acre parcel located immediately north of Southern
Landing Subdivision, to the west of Harry Driggers Boulevard and directly east of Interstate 95. As the
property is situated, it is proposed for construction of a worship facility with parking and other infrastructure
for the operation of a worship facility. The borrower plans to construct a larger sanctuary at a later time, so
there is no excess land. The site also sets aside land for a retention pond.
Site Description
Topography/Drainage
Soil/Subsurface
Environmental Concerns
Rail Access
Functional Utility
Off-Site Improvements:
Alleyway
Curb/Gutter
No. of Lanes
Sidewalks
Street Lights
Traffic Lights
The site is mostly level, the development
plan calls for a retention area on the
northwestern section of the site.
Gradient, no soil percolation issues
visible
None
None
Good
None
None
2
Concrete, County Maintained
County Maintained
None Adjacent
Properties adjacent to the subject are as follows:
North
West
South
East
Adjacent Properties
Vacant Site Owned by United Methodist Church
Interstate 95
Southern Landing Subdivision
Country Walk Subdivision
Utilities and Services
Utilities and services are detailed below.
Subject Utilities
Electricity
Gas
Internet
Telephone
Police/Fire
Sewer
Water
Georgia Power
None, bottle LP only
Comcast & AT&T
Comcast & AT&T
Glynn County
Brunswick-Glynn
County Joint Water &
Sewer Commission
Brunswick-Glynn
County Joint Water &
Sewer Commission
Zoning Designation
The property is zoned PD-G, Planned Development-General by Glynn County. Please refer to the
Highest and Best Use section of this report for further discussion.
HUD Flood Data
The subject site is generally at road grade. Per FEMA Map No. 13127C0115F, dated September 6,
2006, the property is situated in Flood Zone X. Flood hazard insurance is not required for buildings
situated in this zone.
Easements and Encroachments
No survey was provided. We assume that there are no easements or encroachments that would
negatively impact the property.
Summary
The site size and configuration are conducive for development, especially considering that all utilities
are available.
Aerial Map
Survey Map
Legal Description
Flood Map
Improvements Description
General Details
Our discussion of the improvements is based on our physical inspection of the property and surrounding
features. The subject is a proposed 6,700 square foot worship facility with sanctuary, stage/platform,
classrooms, nursery, kitchen, and pastor's study. This building is proposed as a multipurpose building as the
borrower plans construction of a larger sanctuary as the congregation grows. The physical components of
the property are detailed in the following.
General Layout/Efficiency
The subject is a proposed 6,700 square foot worship facility with sanctuary, stage/platform,
classrooms, nursery, kitchen, and pastor's study. This building is proposed as a multipurpose building as
the borrower plans construction of a larger sanctuary as the congregation grows.
Year Built/Condition
Gross Building Size
Building Size Useable
Overall Property Condition
Market Class
No. of Stories
Floor Area Ratio
Land:Building Ratio
Occupancy
No. of Rooms
Parking
Floor area ratio
Construction Type
Foundation
Mezzanine
Basement
Superstructure
Roof Structure
Exterior Doors
Exterior Walls
Windows
Plumbing System
HVAC
Electrical Service
Sprinkler
Security System
Elevator
Fire Alarm
General Building Details
2014
6,700 square feet
6,700 square feet
Proposed
Good Class C
1
0.01
80.55:1
Proposed-Owner Occupied
11
36
0.01
Construction Details
Worship Facility
Concrete slab
None
None
Wood Frame
Gabled
6-Panel
Brick Veneer
Fixed, Double Paned
PVC
Package
200-amp
Sprinkler
Monitored
Elevator
Monitored
Site Improvements
Drainage/Retention
Retaining Wall
Paving
Parking Spaces
Parking Ratio/1,000
Landscaping
Fencing
Exterior Lighting
Signage
Proposed retention area
None
Asphalt
36
0.19
Good
None
Perimeter
Sign adjacent to road
Americans with Disabilities Act (ADA)
The Americans with Disabilities Act was passed on July 26, 1990. This Act provides comprehensive
civil rights protection for individuals with disabilities in the areas of employment, public accommodations,
state and local government services, and telecommunications. This Act was designed to remove barriers
which prevent qualified individuals with disabilities from enjoying the same employment opportunities and
access to public facilities available to persons without handicaps. We have not made an ADA compliance
survey as it is beyond the scope of our expertise as appraisers.
Summary
The proposed improvements are consistent with the market. The property owner intends to
expand when the congregation grows and has additional land to add a larger sanctuary and worship
facility in the future.
Front View from Harry Driggers Blvd.
Street Scene
Building Plans
Property Appraiser’s Record
Highest and Best Use
According to the Dictionary of Real Estate Appraisal 5th Edition, highest and best use is defined as: The
reasonably probable and legal use of vacant land or an improved property that is physically possible,
appropriately supported, financially feasible and that results in the highest value. The four criteria the
highest and best use must meet are physically possible, legally permissible, financially feasible and
maximally productive. Alternatively, the probable use of land or improved property - specific with respect
to user and timing of the use -that is adequately supported and results in the highest present value.
When a site is improved, we must recognize that the highest and best use may differ from the existing
use; however, the existing use will continue, unless and until, land value (at its highest and best use) exceeds
the total value of the property in its present use. The definition of highest and best use recognizes the
contribution of a specific use to the community or to individual property owners.
The determination of highest and best use results from the appraiser's judgment and analytical skill; i.e.,
determination of highest and best use is an opinion, not a fact to be found. In appraisal practice, the concept
of highest and best use is the premise upon which value is based. In the context of investment value, "most
profitable use" is another alternative term but the degree of risk must be considered.
The highest and best use concept requires an analysis of the subject as if it were vacant and also as
improved to determine if the land is more valuable as vacant than the property as improved. There are four
criteria that must be met. The highest and best use must be 1) physically possible; 2) legally permissible; 3)
financially feasible; and, 4) maximally productive. These criteria are generally considered sequentially and
the analysis may indicate more than one use.
Physically Possible
The subject site, given its size and configuration, is well suited for a variety of development. The
property has access from Harry Driggers Boulevard. All utilities are available, with the exception of natural
gas, to the property, further promoting its potential.
The subject property is located in a growing residential area that runs adjacent to Interstate 95. The
following table shows nearby traffic counts:
Traffic Count Map
Legally Permissible
The property is zoned PD-G, Planned Development-General by Glynn County The property has a
proposed worship facility land use.
Financially Feasible/Maximally Productive
Those uses which are financially feasible and that use which is maximally productive are generally
closely related. Any use that results in a net return to the land after satisfying the return to the improvements
is considered to be financially feasible; however, that use which returns the maximum dollars to the land is
considered the use which is maximally productive.
This area is mostly developed residential subdivisions. There currently one worship facility along the
subject corridor and there is land set aside for another worship facility; however, that organization has no
short term plans to relocate and may not build on that site for at least 10 years. The subject site is not large
enough to develop for any other residential use, and there is no demand for commercial construction on this
corridor.
As If Vacant
It is our opinion that the highest and best use of the subject property, as if vacant, would be for a
worship facility.
As Improved
It is our opinion that the highest and best use of the subject property, as improved, is considered its
proposed use. The proposed building is large enough to accommodate the size of the current
congregation, and there is land set aside for future expansion. It is our opinion that the improvements will
continue to add value over and above land value into the foreseeable future. With the highest and best use
identified, we can proceed with our valuation.
Appraisal Procedure
The main purpose of an appraisal is to solve a problem of a specific property. The appraiser must
define the problem, inspect the property, gather all pertinent data, analyze the findings to arrive at a solution,
and then present all salient facts and conclusions in the form of an appraisal report.
Since characteristics of real property vary widely, the appraiser must proceed in a systematic fashion
producing a thorough and accurate appraisal in an efficient manner.
During the past fifty years, a method of evaluating real estate, "The Appraisal Process", has evolved.
The appraisal process involves three different approaches to value, when applicable.
The Cost Approach
In this approach, the appraiser first develops an opinion of value of the land as though vacant as of the
date of appraisal. Next, the replacement or reproduction cost new of all improvements is determined. From
this total, estimated depreciation is deducted. Depreciation is any loss in improvement value due to physical
deterioration and/or functional or external obsolescence. The value of the land is then added to the
depreciated replacement or reproduction cost to arrive at an indication of value for the property as a whole.
The Sales Comparison Approach
This is an appraisal technique in which the market value opinion is predicated upon prices paid in actual
market transactions and current listings, the former fixing the lower limit of value (price) in a static or
advancing market and the higher limit of value in a declining market, with the latter fixing the higher limit
in any market. The Sales Comparison Approach is a process of correlation and analysis of similar, recently
sold properties. The reliability of this technique is dependent upon: (1) the degree of comparability of each
property with the property under appraisement; (2) the time of sale; (3) the verification of the sales data; and
(4) the absence of unusual conditions affecting the sale.
The Income Approach
This is a technique in which the anticipated net income is processed to produce an indication of value.
The reliability of this technique is dependent upon: (1) the reasonableness of the estimate of the anticipated
net annual income; (2) the duration of the net annual income, usually the economic life of the building,
when improved; (3) derivation of an appropriate capitalization (discount) rate; and (4) the method of
conversion of income to capital.
The remaining step is the reconciliation of the value opinion arrived at in the different approaches to
value. The appraiser must consider and re-evaluate all pertinent data in order to arrive at a final value
opinion. Although each of the techniques produces an independent value, all three approaches are
interrelated and integrated techniques, dependent upon operation of market forces.
In some cases, due to the availability (or unavailability) of pertinent market data, these approaches have
varying degrees of applicability.
Applied Technique
The subject is a specialty purpose building constructed particularly for a worship facility. That said, the
sales comparison approach and cost approach are given similar overall consideration. As the subject is not
proposed as an income producing property, the income approach is considered irrelevant. The strengths and
weaknesses of each approach are discussed in the Reconciliation and Final Value Conclusion(s) section.
Valuation
Cost Approach
The Cost Approach to value attempts to determine the current market value of a property through a
process in which the appraiser estimates the cost to replace or reproduce all improvements and then deducts
the total estimated loss in value (depreciation) for the improvements. The market value of the land
component is then added.
We have presented transactions involving sites purchased for Worship Facility development on the
following pages.
Land Comparable Write-ups
COMPARABLE LAND SALES SUMMARY TABLE
No.
1.
2.
3.
4.
5.
Location
4325 Old Cypress Mill Road
5939 New Jesup Highway
310 Gateway Center Boulevard
4116 Highway 99
5537 Habersham Street
Sale
Date
05/24/2013
06/10/2011
12/30/2011
05/30/2012
09/11/2013
Price
$125,000
$135,000
$260,000
$138,404
$113,900
Size in
Acres
15.487
4.396
9.328
48.100
1.875
Price/
Acre
$8,071
$30,710
$27,873
$2,877
$60,747
Page 35
Land Sale No. 1
Property Identification
Record ID
Property Type
Property Name
Address
Location
Tax ID
MSA
Market Type
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Property Rights
Marketing Time
Conditions of Sale
Financing
Verification
Sale Price
Cash Equivalent
Adjusted Price
198
Acreage, Medium Residential
Old Cypress Mill
4325 Old Cypress Mill Road, Brunswick, Glynn County,
Georgia 31525
S/E Corner Old Cypress Mill Road & Altama Connector
03-16488
Brunswick MSA
Multifamily
Federa Deposit Insurance Corp.
John M. Gantt, Jr.
May 24, 2013
3166/124
Fee Simple
213 days
Foreclosure
Cash to Seller
Don Wright, broker; Aaron Carone, MAI, appraiser for FDIC,
Other sources: Navica MLS, Glynn County GIS, Confirmed by
$125,000
$125,000
$125,000
Page 36
Land Sale No. 1 (Cont.)
Land Data
Zoning
Topography
Shape
Land Size Information
Gross Land Size
Useable Land Size
Unusable Land Size
Wetlands Land Size
Indicators
Sale Price/Gross Acre
Sale Price/Gross SF
Sale Price/Useable Acre
Sale Price/Useable SF
Sale Price/ Unit
Medium Residential, MR
Multifamily
Irregular
15.487 Acres or 674,614 SF
10.000 Acres or 435,600 SF , 64.57%
3.760 Acres or 163,786 SF , 24.28%
2.087 Acres or 90,910 SF , 13.48%
72
$8,071
$0.19
$12,500
$0.29
$1,736
Remarks
This property consists of two parcels of non-contiguous tracts of vacant and wooded land, with a
total of 15.487-acres. They are located across the street from one another. The main parcel is a
12.087-acre tract (10.000-acres), which has been zoned for multi-family development by Glynn
County. The second tract is a 3.760-acre tract which has been designated as a conservation
easement area, presently zoned residentially. There were no physical structures on the sites, and
they adjoin a small retention pond to the rear of Home Depot. The broker and zoning office
indicated that it could support 136 units, but after the sale the end-user is developing it with a mix
of duplex type untis to a total of 72-units according to Eric Landon and the Glynn County
Planning and Zoning Office.
It originally sold for $990,000 in 2004. This tract was taken back by the lender, who was since
shut down by the FDIC. The FDIC listed the property for sale with Don Wright and Associates
for $750,000. It eventually sold at auction for $125,000.
Page 37
Land Sale No. 2
Record ID
Property Type
Property Name
Address
Location
Tax ID
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Property Rights
Marketing Time
Conditions of Sale
Verification
115
Commercial, Acreage
Former Coastal Homes property
5939 New Jesup Highway, Brunswick, Glynn County, Georgia
31523
W/S New Jesup Highway, north of River Ridge Road
03-13148
State Bank & Trust Company
Teramore Development, LLC
June 10, 2011
Fee Simple
Fee Simple
135
Cash to Seller
Russell Sweat, listing agent; Other sources: Navica MLS, Glynn
County GIS, Confirmed by Dustin A. Lewis, MAI, SRA
Sale Price
Cash Equivalent
Adjusted Price
$135,000
$135,000
$135,000
Land Data
Zoning
Topography
Utilities
Shape
Highway Commercial, HC
Mostly level
Power only
Slightly irregular
Page 38
Gross Land Size
Useable Land Size
Front Footage
4.396 Acres or 191,490 SF
4.396 Acres or 191,490 SF , 100.00%
New Jesup Highway
Indicators
Sale Price/Gross SF
$30,710
$0.70
$30,710
$0.70
Remarks
This is the former location of a manufactured home dealer. The buyer has purchased for future
development but has no immediate plans.
Page 39
Land Sale No. 3
Record ID
Property Type
Property Name
Address
Location
Tax ID
Market Type
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Property Rights
Conditions of Sale
Verification
108
Planned Development, Commercial
310 Gateway Center Blvd
310 Gateway Center Boulevard, Brunswick, Glynn County,
Georgia 31525
S/W Corner Canal Road & Gateway Center Blvd
03-26563
Commercial Land
United Community Bank
Canal Road Investors
December 30, 2011
2947/224
Fee Simple
Cash to Seller
Robert Driggers, MAI, CCIM (broker); Other sources:
GSCCCA, Glynn County GIS, Confirmed by Dustin A. Lewis,
MAI, SRA
Sale Price
Cash Equivalent
Adjusted Price
$260,000
$260,000
$260,000
Land Data
Zoning
Topography
Utilities
Planned Development-General, PD-G
Mostly level
All municipal
Page 40
Shape
Landscaping
Irregular
Typical
Gross Land Size
Useable Land Size
9.328 Acres or 406,328 SF
9.328 Acres or 406,328 SF , 100.00%
Indicators
Sale Price/Gross SF
$27,873
$0.64
$27,873
$0.64
Remarks
This parcel is a 9.328 Acre portion of a 22 acre tract zoned for planned development. This
property has frontage along Canal Road and Gateway Center Boulevard and is in proximity to
Exit 38 on Interstate 95.
Page 41
Land Sale No. 4
Record ID
Property Type
Property Name
Address
Location
Tax ID
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Property Rights
Marketing Time
Conditions of Sale
Financing
Verification
113
Acreage, Planned Development
4116 Highway 99
4116 Highway 99, Brunswick, Glynn County, Georgia 31523
S/S Hwy 99, 1,340 feet west of New Jesup Highway
03-07290
Branch Banking & Trust Company
EJC Investments, LLC
May 30, 2012
3006/485
Fee Simple
576 days
Bank Owned
Cash to Seller
Mark Stambaugh, buyer; Robert Jahn, agent, Other sources:
GSCCCA, Glynn County GIS, Navica MLS, Confirmed by
Sale Price
Cash Equivalent
Adjusted Price
$138,404
$138,404
$138,404
Land Data
Zoning
Topography
Utilities
Planned Development, PD
Mostly level
Water & Sewer, Telephone, Power
Page 42
Shape
Slightly irregular
Gross Land Size
Uplands Land Size
Wetlands Land Size
Planned Units
48.100 Acres or 2,095,236 SF
41.000 Acres or 1,785,960 SF , 85.24%
8.000 Acres or 348,480 SF , 16.63%
90
Indicators
Sale Price/Gross SF
Sale Price/Uplands Acre
Sale Price/Uplands SF
Sale Price/Planned Unit
$2,877
$0.07
$3,376
$0.08
$1,538
Remarks
The buyer purchased the property to build a family estate and hold for potential development in
10 years or until there is sufficient demand. The property was surveyed by the buyer, who noted
the site area at 48.1 acres with slightly over 8 acres of wetlands and ponds. The property was
initially listed for $975,000 and was listed for $200,000 at the time of sale.
Page 43
Land Sale No. 5
Record ID
Property Type
Property Name
Address
Location
Tax ID
MSA
Market Type
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Property Rights
Marketing Time
Conditions of Sale
Financing
Verification
183
General Commercial, Acreage
5537 Habersham Street
5537 Habersham Street, Brunswick, Glynn County, Georgia
31520
S/S Habersham Street, south of Community Road
03-20482
Brunswick MSA
Commercial
Red Barn Investments, LLC
Atlantic Southeast Enterprises, LLC
September 11, 2013
3217/31
Fee Simple
1036 days
Normal
Cash to Seller
R.B Gentry, broker; Other sources: Navica MLS, GSCCCA,
Confirmed by Dustin A. Lewis, MAI, SRA
Sale Price
Cash Equivalent
Adjusted Price
$113,900
$113,900
$113,900
Land Data
Zoning
General Commercial, GC
Page 44
Topography
Utilities
Shape
Mostly leve
All municipal
Slightly irregular
Gross Land Size
Useable Land Size
1.875 Acres or 81,675 SF
1.875 Acres or 81,675 SF
Indicators
Sale Price/Gross SF
$60,747
$1.39
$60,747
$1.39
Remarks
This property is 1 lot south of the intersection of Habersham Street and Community Road.
Page 45
Land Adjustment Grid and Adjustment Grid
Land Sales Summary and Adjustment Grid
Subject
Location:
12 Acres,
Harry Driggers
Boulevard
Submarket:
Brunswick
O.R. Book/Page:
Seller:
Buyer:
Date of Sale:
Sale Price:
Adjusted Sale Price:
Site Size (Acres):
12.39
Unadjusted Price/Acre:
Adjustments
Rights Transferred:
Financial Considerations:
Conditions of Sale:
Market Conditions - Time:
Time Adj. Cash Equiv. Price/Acre:
Location:
Comp 1
4325 Old
Cypress Mill
Road
S/E Corner
Old Cypress
Mill Road &
Altama
Connector
Comp 2
Comp 3
5939 New
310 Gateway
Jesup Highway Center
Boulevard
S/W Corner
W/S New
Canal Road &
Jesup
Gateway
Highway,
north of River Center Blvd
Ridge Road
Comp 4
Comp 5
4116 Highway 5537
99
Habersham
Street
S/S Hwy 99, S/S
1,340 feet west Habersham
of New Jesup Street, south of
Community
Highway
Road
3166/124
Federa Deposit
Insurance
John M. Gantt,
Jr.
May-13
$125,000
$125,000
15.49
$8,071.29
Fee Simple
State Bank &
Trust
Teramore
Development,
June-11
$135,000
$135,000
4.40
$30,709.74
2947/224
United
Community
Canal Road
Investors
December-11
$260,000
$260,000
9.33
$27,873.07
3006/485
Branch
Banking &
EJC
Investments,
May-12
$138,404
$138,404
48.10
$2,877.42
3217/31
Red Barn
Investments,
Atlantic
Southeast
September-13
$113,900
$113,900
1.88
$60,746.67
Fee simple
Market
Fee simple
Market
Fee simple
Market
Fee simple
Market
Fee simple
Market
Bank Sale
10%
Stable
Bank Sale
10%
Stable
Bank Sale
10%
Stable
Bank Sale
10%
Stable
Arm's Length
0
Stable
$8,878.41
Similar
0%
15.49
0%
$33,780.71
Similar
0%
4.40
-10%
$30,660.38
Similar
0%
9.33
0%
$3,165.16
Similar
0%
48.10
25%
$60,746.67
Similar
0%
1.88
-15%
Highway
Commercial
Planned
Planned
Development- Development
General
General
Commercial
-15%
Similar
0%
-25%
$25,335.53
0%
Similar
0%
0%
$30,660.38
-15%
Similar
0%
-30%
$42,522.67
Site Size (Gross Acres):
12.39
Zoning:
PD-G, Planned Medium
Development- Residential
General
Utilities:
Net Adjustments:
Adjusted Price/Acre:
0%
Similar
0%
0%
$8,878.41
0%
Similar
0%
25%
$3,956.46
Page 46
Land Comparables Map
Page 47
Land Sales Analysis
The preceding sales were confirmed to offer the best indication of value of the subject site via the Sales
Comparison Approach. A number of sales were examined, and in the final analysis they were narrowed to
the 5 most comparable transactions. We have researched sales specifically acreage for planned
development or complementary use sites from Glynn County.
There are several units of comparison generally employed in the analysis of acreage for planned
development or complementary use land. In this instance, the market dictates the most appropriate index
is price per acre. The adjustment categories include location, site size, zoning and available utilities.
All of the transactions were financed at market terms by third party financial institutions; hence, no
adjustments for financing were required. If atypical financing were involved in the transaction, the
appraiser would determine if those terms had a quantifiable effect on the sale price necessitating an
adjustment.
Each transaction was confirmed to be arm's length between willing buyers and sellers; therefore, no
adjustments for abnormal conditions of sale were necessary. However, if a listing is included in the
analysis, a downward adjustment is considered to reflect a typical cushion for negotiations. Nonetheless, the
amount of adjustment, if any, would depend on the asking price as it relates to the market at that time. Some
transactions might include a bank sale sometimes referred to as "short sale". An adjustment will be made if
warranted based on confirmation of that transaction.
Adjustments for time and price trends attempt to quantify changes in market conditions between the
date of each sale and the date of the appraisal, based on current market conditions and available
properties. All of the transactions are relatively timely, taking place from June, 2011 to September, 2013.
Adjustment for this category would be based on any quantifiable appreciation or depreciation, typically
identified through paired sales analysis.
Adjustments for location typically are associated with the general demographics of the area and
property specific influences such as traffic counts, ingress/egress, proximity to linkages such as interstates
and overall characteristics of an area.
Site size is an adjustment in which comparables site size is compared to the subject. Depending on the
market segment, variation in site size can have effect up to a point on the price per square foot index.
Typically, if a comparable site is larger than the subject site, an upward adjustment is applied to reflect
economies of scale. Conversely, if a comparable site is smaller than the subject site, a downward
adjustment was applied. This category can also include adjustments for parcels that may have off-site
retention and reflect a fully buildable lot.
Zoning is an important consideration in land sales analysis as it specifies the development potential of a
given parcel. In this category, the comparables zoning classification relative to allowable uses, building
setbacks and other restrictions are compared to the subject. Generally speaking, zoning classifications that
allow more uses and flexible development are superior.
The availability of municipal services, specifically water and sewer, is an important attribute to a
typical site. The adjustment would be applied if the comparable has a different availability of municipal
services as the subject. This is especially true for parcels that may need to have municipal lines extended
to the property at a cost.
Page 48
After adjustments, the sales range from $3,956.46 to $42,522.67 per square foot, with a mean of
$22,270.69 per acre. Based on the relative merits of each sale, but placing greater emphasis on the more
recent transactions with the fewest net adjustments, we have concluded to value of the subject site at
$22,300 per acre.
All comparable sales are of similar location and have similar potential use. I have given similar overall
consideration to all comparable sales. My math is as follows:
12.39 Acres of Land Area x $22,300/SF = $276,297
Land Value Estimate
Rd. $280,000
Replacement Cost New
The subject is considered to be a Good, Class Class C Worship Facility under the Marshall and Swift
description. The hard costs are $170 per square foot, which includes adjustments for variances, including
local, cost, perimeter and story height multipliers. After consideration of applicable multipliers, we have
estimated the replacement cost for the subject via Marshall and Swift.
Site development costs for the site were estimated at $90,000, comprising site grading, utilities hookup,
paving of the parking lot and landscaping. Indirect development costs, also known as soft costs, were
estimated at 5% of total direct costs. These expenses include impact fees, and are generally consistent with
other projects we are familiar with.
Entrepreneurial profit incentive is due a developer for putting a package together, resulting in a value in
excess of the indirect and direct dollars extended. Typically, a profit level of 10% to 20% should be
achievable where a project is viewed as feasible. Given the subject’s property grade, 0% entrepreneurial
profit was input.
The subject has an effective age of 0 years and a total economic life of 50 years. Therefore, we divided
effective age by the total economic life which results in a physical depreciation factor of 0%. The building
was constructed with a functional layout. Therefore, functional obsolescence was not considered to be
present. External obsolescence was not deemed to exist. The following reflects the estimated replacement
cost new.
Page 49
Replacement Cost New
Direct Development Costs
6,700
Sq. Ft. of Building Area
Site Development Costs
Total Direct Development Costs
5%
Indirect Development Costs at
Plus: Entrepreneurial Profit at
0%
Total Replacement Cost
Less: Depreciation
Physical
Functional
External
Total Depreciation
Depreciated Value of Improvements
Plus: Land Value (/Buildable Sq. Ft.)
"As Is" Market Value via Cost Approach
/SF Bldg.
$169.92
$13.43
$183.05
$9.10
$0.00
-$173.95
Total
$1,136,454
$90,000
$1,226,454
$61,000
$0
$1,287,454
$41.79
$233.95
Rd.
$0
$0
$0
$0
$1,287,454
$280,000
$1,567,454
$1,570,000
Based on the foregoing, we have estimated the market value of the subject property via the Cost
Approach to be $280,000 $1,570,000 rounded.
“As Is” Market Value via Cost Approach
Rd. $280,000
Prospective “Upon Completion” Market Value via Cost Approach
Rd. $1,570,000
Page 50
Sales Comparison Approach
The Sales Comparison Approach involves a detailed comparison of the subject property with similar
properties which have recently sold in the same or competitive markets. This approach is based primarily
on the Principle of Substitution which states, "When several commodities or services with substantially the
same utility are available, the lower price attracts the greatest demand and widest distribution". In other
words, a prudent investor/purchaser would not pay more to acquire a given property in the market when an
alternative property may be purchased for less. The five basic steps in this analysis are listed below.

Research the market to identify similar properties for which pertinent sales, listings, offerings and/or
rental data is available;

Qualify the data as to terms, motivating forces, or bona fide nature;

Analyze the salient characteristics of the comparable properties in relation to the property under
appraisement, particularly those items relating to date of sale, location, physical characteristics, and
conditions of sale;

Consider all dissimilarities and the probable effect on the price of each sale property, and derive
individual market value indications for the property being appraised;

Formulate an opinion of market value from the pattern developed from the foregoing analysis.
Direct Sales Comparison is a valuation technique in which a value opinion is predicated on prices paid
in actual market transactions. In this process, comparison is made between properties having a satisfactory
degree of similarity to the subject. We have presented transactions involving similar Proposed Worship
Facility buildings on the following pages, with an adjustment grid presented in the following Table
Page 51
Improved Comparable Write-ups IMPROVED SALES SUMMARY TABLE
No.
1.
2.
3.
4.
5.
Location
4232 Old Cypress Mill Road
411 East Main Street
4341 Dallas Highway
109 Hibernia Avenue
5526 Hog Mountain Road
Sale Date
Price
11/07/2011
01/18/2013
08/31/2012
10/30/2012
07/15/2013
$223,900
$257,950
$1,150,000
$731,000
$600,000
Building
Size (SF)
2,625
2,500
14,028
7,480
5,578
Price/
SF
$85.30
$103.18
$81.98
$97.73
$107.57
Page 52
Improved Sale No. 1
Record ID
Property Type
Property Name
Address
Location
Tax ID
173
Worship Facility, Church
Former Victorious Life Church
4232 Old Cypress Mill Road, Brunswick, Glynn County,
Georgia 31525
W/S Old Cypress Mill Road, south of Poplar Street
03-04920
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Property Rights
Marketing Time
Conditions of Sale
Financing
United Pentecostal Church
New Vision for Life Church Ministries, Inc.
November 07, 2011
2926/225
Fee Simple
49 days
Normal
Cash to Seller
Page 53
Improved Sale No. 1 (Cont.)
Verification
Jimmy Shanken, agent; Other sources: GSCCCA, LoopNet,
Glynn County GIS, GAMLS, Confirmed by Dustin A. Lewis,
MAI, SRA
Sale Price
Cash Equivalent
Adjusted Price
$223,900
$223,900
$223,900
Land Data
Land Size
Zoning
Topography
Utilities
Shape
Landscaping
0.230 Acres or 10,019 SF
R-12, Residential
Mostly level
Water, sewer, power
Mostly rectangular
Average
General Physical Data
Building Name
Building Type
Gross SF
Church
Single Tenant
2,625
HVAC
Stories
Year Built
Condition
Heat Pump
1
1960 Approximate
Average
Indicators
Sale Price/ SF
Floor Area Ratio
Land to Building Ratio
Occupancy at Sale
$85.30
0.26
3.82:1
Owner
Remarks
This is a worship facility in Brunswick, GA. The property includes an unpaved parking area and
is in an average location with average exposure.
Page 54
Improved Sale No. 2
Record ID
Property Type
Property Name
Address
Location
Tax ID
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Property Rights
Marketing Time
Conditions of Sale
Financing
Verification
174
Former Lighthouse Christian Church
411 East Main Street, Statesboro, Bulloch County, Georgia
30458
N/S E. Main Street Between Blue Ridge Dr. & Packinghouse
Rd.
MS70000004 001
The International Pentecostal
Iglesia Penetcostes Rios De Agua Viva IP
January 18, 2013
2155/44
Fee Simple
67 days
Normal
Cash to Seller
Dan Smith, agent; Other sources: GAMLS, GSCCCA, Bulloch
County GIS, Confirmed by Dustin A. Lewis, MAI, SRA
Sale Price
Cash Equivalent
Adjusted Price
$257,950
$257,950
$257,950
Land Data
Land Size
Zoning
5.000 Acres or 217,800 SF
R15, Residential
Page 55
Topography
Utilities
Shape
Landscaping
Mostly level
All municipal
Mostly rectangular
Average
Building Name
Building Type
Gross SF
Church
Single Tenant
2,500
Roof Type
Foundation
Electrical
HVAC
Stories
Year Built
Condition
Composite Shingle
Slab
200-amp
Heat Pump
1
1998
Good
Indicators
Sale Price/Gross SF
Floor Area Ratio
Occupancy at Sale
$103.18
0.01
87.12:1
Owner
Remarks
This is an owner occupied worship facility in Statesboro, GA. The property includes parking area
and excess land.
Page 56
Improved Sale No. 3
Record ID
Property Type
Property Name
Address
Location
Tax ID
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Property Rights
Marketing Time
Conditions of Sale
Financing
Verification
179
4341 Dallas Highway
4341 Dallas Highway, Marietta, Cobb County, Georgia 30064
S/S Dallas Highway
19001500040
ECCU
First Nazarene
August 31, 2012
14977/5467
Fee Simple
501 days
Normal
Cash to Seller
Matt Massier; Other sources: Cobb County GIS, LoopNet,
Confirmed by Dustin A. Lewis, MAI, SRA
Page 57
Sale Price
Cash Equivalent
Adjusted Price
$1,150,000
$1,150,000
$1,150,000
Land Data
Land Size
Zoning
Topography
Utilities
Shape
Landscaping
11.700 Acres or 509,652 SF
CLT, Commercial
Slight grade
All municipal
Rectangular
Average
Building Name
Building Type
Gross SF
Church
Single Tenant
14,028
Construction Type
Roof Type
Foundation
Stories
Year Built
Average Class D
Membrane
Slab
2
2006
Indicators
Sale Price/Gross SF
Floor Area Ratio
Occupancy at Sale
$81.98
0.03
36.33:1
Vacant
Remarks
This church building was vacant at the time of sale. The list price was $1,295,000 at the time of
sale indicating a list to sale ratio of 89%.
Page 58
Improved Sale No. 4
Record ID
Property Type
Property Name
Address
Tax ID
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Property Rights
Marketing Time
Conditions of Sale
Financing
Verification
217
Decatur Church
109 Hibernia Avenue, Decatur, DeKalb County, Georgia 30030
15 236 01 135
Decatur United Christian Church of Christ (OCC), Inc.
Oak Grove Homes, LLC
October 30, 2012
23386/286
Fee Simple
127 days
Normal
Cash to Seller
Broker; Other sources: GAMLS, GSCCCA, Confirmed by
Sale Price
Cash Equivalent
Adjusted Price
$731,000
$731,000
$731,000
Land Data
Land Size
Zoning
Topography
Shape
1.730 Acres or 75,359 SF
Church
Slight grade
Mostly rectangular
Page 59
Building Name
Building Type
Gross SF
Church
Single Tenant
7,480
Construction Type
Roof Type
Foundation
Electrical
HVAC
Stories
Floor Height
Year Built
Condition
Frame
Gabled
Basement
200-amp
Package
2
12
1965
Average
Indicators
Sale Price/Gross SF
Floor Area Ratio
Occupancy at Sale
$97.73
0.10
10.07:1
Vacant
Remarks
This building is from an established church in Decatur, Georgia. The building includes
sanctuary, classrooms, offices, commercial kitchen, and exterior storage building. According to
the MLS, the building seats 250-275 and has 75 parking spaces.
Page 60
Improved Sale No. 5
Record ID
Property Type
Property Name
Address
Tax ID
Sale Data
Grantor
Grantee
Sale Date
Deed Book/Page
Property Rights
Financing
Verification
218
Slavic Full Gospel Church, Flowery Branch
5526 Hog Mountain Road, Flowery Branch, Hall County,
Georgia 30542
15047 000010F
Peachtree Christian Church, a Georgia non-profit corporation
SLavic Full Gospel Church, a Georgia non-profit corporation
July 15, 2013
7219/165
Fee Simple
Owner Financed
Broker; Other sources: LoopNet, GSCCCA, Confirmed by
Sale Price
Cash Equivalent
Adjusted Price
$600,000
$600,000
$600,000
Land Data
Land Size
Shape
8.500 Acres or 370,260 SF
Wedge
Page 61
Building Name
Building Type
Gross SF
Church
Single Tenant
5,578
Construction Type
Roof Type
Foundation
Electrical
HVAC
Stories
Floor Height
Year Built
Condition
Block
Metal
Slab
200-amp
Package
1
16'
2007
Good
Indicators
Sale Price/Gross SF
Floor Area Ratio
Occupancy at Sale
$107.57
0.02
66.38:1
Vacant
Remarks
This building sold with the buyer paying down $125,000 and the owner financing $475,000 with
pay off dus on 9/1/2018.
Page 62
Improved Sales Adjustment Grid
Improved Sales Summary and Adjustment Grid
Subject
Comp 1
Property Name:
Proposed
Former
Golden Isles
Victorious Life
Baptist Church Church
Location:
Comp 3
4341 Dallas
Highway
109 Hibernia
Avenue
Comp 5
Slavic Full
Gospel
Church,
Flowery
Branch
5526 Hog
Mountain
Road
S/S Dallas
14977/5467
ECCU
Date of Sale:
N/S E. Main
2155/44
The
International
Iglesia
Penetcostes
January-13
23386/286
Decatur
United
First Nazarene Oak Grove
Homes, LLC
August-12
October-12
7219/165
Peachtree
Christian
SLavic Full
Gospel
July-13
Sale Price:
$223,900
$257,950
$1,150,000
$731,000
$600,000
Adjusted Sale Price:
$223,900
$257,950
$1,150,000
$731,000
$600,000
2,625
2,500
14,028
7,480
5,578
$85
$103
$82
$98
$108
Rights Transferred:
Fee simple
Fee simple
Fee simple
Fee simple
Fee simple
Financial Considerations:
Market
Market
Market
Market
Market
Conditions of Sale:
Arm's Length
Arm's Length
Arm's Length
Arm's Length
Arm's Length
Market Conditions - Time:
Stable
Stable
Stable
Stable
Stable
$85
$103
$82
$98
$108
Inferior
Inferior
Similar
Similar
Inferior
Buyer:
411 East Main 4341 Dallas
Street
Highway
Comp 4
Decatur
Church
4232 Old
Cypress Mill
Road
W/S Old
2926/225
United
Pentecostal
New Vision
for Life
November-11
Submarket:
O.R. Book/Page:
Seller:
12 Acres,
Harry Driggers
Boulevard
Brunswick
Comp 2
Former
Lighthouse
Christian
Church
Cap Rate:
Building Size:
6700
Unadjusted Price/SF:
Adjustments
Time Adjusted
Cash Equiv. Price/SF:
Location:
Average
Building Size (SF):
6,700
15%
15%
0%
0%
15%
2,625
2,500
14,028
7,480
5,578
0%
0%
15%
0%
0%
Year Built/Condition: 2014
1960
1998
2006
1965
2007
25%
10%
5%
25%
5%
Classrms&Amenities: Yes
No
No
Yes
Yes
Yes
15%
15%
0%
0%
0%
0.26
0.01
0.03
0.10
0.02
10%
0%
0%
5%
0%
Net Adjustments:
65%
40%
20%
30%
20%
Adjusted Price/SF:
$141
$144
$98
$127
$129
Floor Area Ratio:
0.01
Page 63
Improved Comparables Map
Page 64
Improved Sales Analysis
The preceding sales were confirmed to offer the best indication of value of the subject via the Sales
Comparison Approach. A number of sales were examined, and in the final analysis they were narrowed to
the 5 most comparable transactions.
There are several units of comparison generally employed in the analysis of worship facility properties.
In this instance, the market dictates price per square foot index is most appropriate. The adjustment
categories include location, building size, age/condition and classrooms & amenities.
All of the transactions were financed at market terms by third party financial institutions; hence, no
adjustments for financing were required. If atypical financing were involved in the transaction, the
appraiser would determine if those terms had a quantifiable effect on the sale price necessitating an
adjustment.
Each transaction was confirmed to be arm's length between willing buyers and sellers; therefore, no
adjustments for abnormal conditions of sale were necessary. However, if a listing is included in the
analysis, a downward adjustment is considered to reflect a typical cushion for negotiations. Nonetheless, the
amount of adjustment, if any, would depend on the asking price as it relates to the market at that time. Some
transactions might include a bank sale sometimes referred to as "short sale". An adjustment will be made if
warranted based on the confirmation of that transaction.
Adjustments for time and price trends attempt to quantify changes in market conditions between the
date of each sale and the date of the appraisal, based on current market conditions and available properties.
All of the transactions are relatively timely, taking place from November, 2011 to July, 2013. Adjustment
for this category would be based on any quantifiable appreciation or depreciation, typically identified
through paired sales analysis.
Adjustments for location typically are associated with the general demographics of the area and
property specific influences such as traffic counts, ingress/egress, proximity to linkages such as interstate
and overall characteristics of an area.
Building size is an adjustment in which comparables site size is compared to the subject. Depending on
the market segment, variation in building size can have effect up to a point on the price per square foot
index. Typically, if a comparable site is larger than the subject site, an upward adjustment is applied to
reflect economies of scale. Conversely, if a comparable site is smaller than the subject site, a downward
adjustment is applied. This category can also include adjustments for parcels that may have off-site
retention and reflect a fully buildable lot.
The effective age and condition of the sales are compared to the subject to determine if adjustments are
necessary. The historical or chronological age of the structure is less meaningful than its effective age at the
time of sale. Effective age is the agent indicated by the condition and utility of the structure and is based on
the appraiser's judgment and interpretation of market perceptions. Generally speaking, if one building is
better maintained than other buildings in its market area, the effective age of the building may be less than
its actual age. If a building is poorly maintained, its effective age may be greater than its actual age. If a
building has received typical maintenance, its effective age and actual age may be the same.
Floor area ratio (FAR) reflects the building component divided by the land component, its inverse
would be a land-to-building ratio. Depending on the market segment and location, FAR’s reflect an
optimal parcel size and configuration. Sometimes a very low FAR can result in extra or remaining land
not needed to support a specific use which may reflect excess or surplus land. In any event, within this
category, adjustments are applied if the appraiser's judgment determines that the comparables’ FAR are
outside of a typical norm which would warrant an adjustment as it compares to the subject.
Page 65
An upward adjustment is typically applied when a comparable has a lower FAR as compared to the
subject suggesting additional land area for potential of building expansion, additional parking and general
overall site utility. Conversely, a downward adjustment is applied when a comparable has a higher FAR
as compared the subject.
All comparable sales are adjusted for difference and reconciled.
After adjustments, the sales range from $98 to $144 per square foot, with a mean of $128 per square
foot. Based on the relative merits of each sale, but placing greater emphasis on the more recent transactions
with the fewest net adjustments, we have concluded to value of the subject at $140 per square foot.
Our math is as follows:
6,700 Square Feet of Building Area x $140/SF = $940,000
“As Is” Market Value via Sales Comparison Approach
Rd. $280,000
Prospective “As Complete” Market Value Sales Comparison Approach
Rd. $940,000
Page 66
Income Approach
The Income Approach is typically the most heavily emphasized valuation technique for the appraisal of
income producing real estate. This technique broadly consists of five steps:
 Estimate gross income for the subject through a market analysis of competitive properties;
 Estimate vacancy loss and operating expenses;
 Determine net operating income by subtracting the vacancy loss and operating expenses from gross
income;
 Determine the appropriate capitalization technique and gather market supported data for its
application;
 Capitalize net income to value.
The subject property is a proposed worship facility. The income approach is not applicable.
Page 67
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 are our personal, impartial, and unbiased professional analyses, opinions, and
conclusions.
 We have no present or prospective interest in the property that is the subject of this report and no
personal interest with respect to the parties involved.
 We have no bias with respect to the property that is the subject of this report or to the parties involved
with this assignment.
 Our engagement in this assignment was not contingent upon developing or reporting predetermined
results.
 The appraisal assignment was not based on a requested minimum valuation, a specific valuation, or
the approval of a loan.
 Compensation for completing this assignment is not contingent upon the development or reporting of
a predetermined value or direction in value or direction in value that favors the cause of the client, the
amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent
event directly related to the intended use of this appraisal.
 Our analyses, opinions, and conclusions were developed, and this report has been prepared, in
conformity with the Uniform Standards of Professional Appraisal Practice, 2014-2015 Edition.
 Dustin A. Lewis, MAI, SRA did made a personal inspection of the property that is the subject of this
report.
 No one provided significant real property appraisal assistance to the persons signing this certification.
 Our analyses, opinions, and conclusions have been developed, and this report has been prepared, in
compliance with the requirements of the Code of Professional Ethics and Standards of Professional
Appraisal Practice (USPAP) as promulgated by the Appraisal Standards Board of The Appraisal
Foundation, and in accordance with the appraisal-related mandates within Title XI of the Federal
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). This report was
also prepared in conformance with the State of Florida Standards for Certified General Real Estate
Appraisers and with Five Star Credit Union’s appraisal requirements.
 We have not relied on unsupported conclusions relating to characteristics such as race, color, religion,
national origin, gender, marital status, familial status, age, receipt of public assistance income,
handicap, or an unsupported conclusion that homogeneity of such characteristics is necessary to
maximize value.
 It is our opinion that the subject does not include any enhancement in value as a result of any natural,
cultural, recreational or scientific influences retrospective or prospective.
 We have extensive experience in appraising properties similar to the subject and are in compliance
with the Competency Rule of USPAP.
Page 68
 The use of this report is subject to the requirements of the Appraisal Institute relating to review by its
duly authorized representatives.
 The Appraisal Institute conducts a program of continuing education for its designated members and
members are awarded periodic educational certification. Dustin A. Lewis, MAI, SRA is currently
certified under the mandatory continuing education program of the Appraisal Institute.
 We have not relied on the work of others if we have a reasonable doubt that the work is credible.
 I have not provided valuation services on the subject property as an appraiser, or in any other
capacity, within the past 36 months.
The market value of the property described herein, as of May 1, 2014, is certified to be the following:
“As Is” Market Value
$280,000
Two Hundred Eighty Thousand Dollars
Prospective “Upon Completion” Market Value as of October 1, 2014
$1,200,000
One Million Two Hundred Thousand Dollars
Certified by,
Certified General
5465
Page 69
ASSUMPTIONS
1.
This is an appraisal report presented in an Appraisal Report which is intended to comply with the reporting requirements set
forth under Standard Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice. It is understood between the
parties that the scope of the assignment is limited and we relied on information obtained from the public records of Glynn
County, published data sources and discussions with market professionals such as investors and brokers relative to County,
published data sources and discussions with market professionals such as investors and brokers relative to the subject’s income
performance and physical composition. The Appraisal Associates is not responsible for unauthorized use of this report.
2.
Unless otherwise specifically noted in the body of the report, it is assumed that title to the property or properties which are
identified as the subject of the report, are clear and marketable and there are no recorded or unrecorded matters or exceptions to
title that would adversely affect marketability or value. The Appraisal Associates, Inc. has not examined title and makes no
representations relative to the condition thereof.
3.
Unless otherwise specifically noted in the body of the report, the legal description furnished is assumed to be correct. Any
abbreviations or discrepancies relative to the legal would be identified.
4.
It is assumed that surveys and/or plats furnished to, or acquired by, the appraiser and used in the making of this report are
correct. The Appraisal Associates, Inc. has not made a land survey or caused one to be made unless identified in the report and
therefore, assumes no responsibility for accuracy of same.
5.
It is assumed any improvements have been, or will be, constructed according to approved architectural plans and specifications
in conformance with recommendations contained in or based on any soil report(s). Unless otherwise noted, The Appraisal
Associates, Inc. has not retained independent engineer(s) or architect(s) in connection with the report and therefore, makes no
representations relative to conformance with approved architectural plans, specifications, or recommendations contained in or
based on any soil(s) report.
6.
It is assumed that all factual data furnished by the client, property owner, owner's representative, or persons designated by the
client or owner are accurate and correct unless otherwise specifically noted in the report. I do not guarantee the correctness of
such data, although as far as is reasonably possible, the data has been checked and is believed to be correct. Information and
data referred to in this paragraph may include but is not limited to information relative to the subject of the report regarding
numerical street addresses, lot and block numbers, assessors parcel numbers, land dimensions, square footage area of land,
dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count, room count, rent schedules,
income data, budgets, historic operating expenses, and related data. Information obtained regarding demographics, comparable
verification, and data of a general sense is assumed factual as confirmed and the source(s) reliable. Any material error in the
gathered data could have substantial impact on the conclusions reported; as a result, The Appraisal Associates, Inc. reserves a
right to amend conclusions reported if made aware of such an error.
7.
Unless otherwise noted in the body of the report, it is assumed that there are no mineral or sub-surface rights of value involved
in the report and there are no other development rights of value that may be transferred. Subsurface rights, minerals and oils,
were not considered in making this report unless otherwise stated.
8.
Any riparian and/or littoral rights identified by survey or plat are assumed to go with the property unless easements and/or deeds
of record were found by the appraiser to the contrary.
9.
It is assumed that there is full compliance with all federal, state, and local environmental regulations and laws, unless noncompliance is stated, defined, and considered in the report.
10. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless the non-conformity
has been stated, defined, and considered in the report. Unless otherwise noted, it is assumed that no changes in the present
zoning ordinances or regulations governing use, density, or shape, are being considered.
11. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from
any local, state, or national government or private entity or organization has been, or can be, obtained or renewed for any use on
which the value estimate contained in the report is based.
12. Unless otherwise stated in the report, the existence of hazardous material, which may or may not be present on the property,
was not observed by the appraisers. The appraisers have no knowledge of the existence of such material on or in the property.
The appraisers, however, are not qualified to detect such substances. The presence of substances such as asbestos, urea
formaldehyde foam insulation, contaminated ground water, or other potentially hazardous materials may affect the value of the
property. The value estimate is predicated upon the assumption that there is no such material on or in the property that would
cause loss in value or affect its marketability. No responsibility is assumed for any such conditions, or for any expertise or
engineering knowledge required to discover them. The client is urged to retain an expert in this field if desired.
13. The soil of the area which is the subject of the report appears to be firm and solid. Unless otherwise stated, subsidence in the
area is unknown or uncommon, but The Appraisal Associates, Inc. does not warrant against this condition and/or occurrence.
Page 70
14. It is assumed that the utilization of the land and improvements is within the boundaries or property lines as described in the
report, and there is no encroachment or trespass, unless noted.
15. The date of value of which the opinions in the report apply is set forth in the body of the report. The Appraisal Associates, Inc.
assumes no responsibility for economic or physical factors occurring at some later date which may affect the opinions stated in
the report.
16. Unless specifically noted in the body of this report, it is assumed that the property or properties described are structurally sound,
seismically safe, and that all building systems (mechanical, electrical, HVAC, elevator, plumbing, etc.) are, or will be upon
completion, in good working order with no major deferred maintenance or repair required; that the roof and exterior are in good
condition and free from intrusion from the elements; that the property or properties have been engineered in such a manner that
it/they will withstand any known elements such as wind storm, flooding, or similar natural occurrences; and that the
improvements as currently constituted conform to all applicable local, state, and federal building codes and ordinances. The
Appraisal Associates, Inc.’s professionals are not engineers and are not competent to judge matters of an engineering nature, nor
has The Appraisal Associates, Inc. retained independent structural, mechanical, electrical, or civil engineers in connection with
the report. As such, The Appraisal Associates, Inc. makes no representations relative to the condition of the improvements.
Unless otherwise noted in the report, no problems were brought to the attention of The Appraisal Associates, Inc.’s
professionals by ownership or management. Unless otherwise noted, The Appraisal Associates, Inc.’s professionals inspected
less than 100% of the entire interior and exterior portions of the improvements. If questions regarding engineering studies are
critical to the decision process of the reader, the advice of competent engineering consultants should be obtained and relied
upon. If engineers and consultants retained should report negative factors of a material nature or if such are later discussed
relative to the condition of the improvements, such information could have a substantial negative impact on the conclusions
reported. Accordingly, if negative findings are reported by engineering consultants, The Appraisal Associates, Inc. reserves the
right to amend the report conclusions.
17. Unless otherwise specifically noted, this report is not being prepared for use in conjunction with litigation. Accordingly, no
rights to expert testimony, pretrial or other conferences, disposition, or related services are included in this appraisal. If as a
result of this undertaking, The Appraisal Associates, Inc. or any its officers, professionals, and/or consultants are requested or
required to provide any of the foregoing services, such shall be subject to the availability of The Appraisal Associates, Inc.’s
professionals or consultants at the time and shall further be subject to the party or parties requesting or requiring such services
paying the then applicable professional fees and expenses.
18. Neither all nor any of the contents of the report shall be conveyed to the public through advertising, public relations, news, sales
or other media without written consent and approval of Appraisal Associates, Inc. ., particularly as to the valuation conclusions,
the identity of the professionals or firm, or any reference to the Appraisal Institute, the MAI designation, or certification by the
State of Florida. Exempt from restrictions relative to the transmittal of this report to third parties is duplication for internal use
of the client-addressee and/or transmission to attorneys, accountants, or advisors of the client-addressee. Also exempt from this
restriction is transmission of the report to any court, governmental authority, or regulatory agency having jurisdiction over the
party/parties for whom the report was prepared, providing that the report and/or its contents shall not be published, in whole or
in part in any public document without the express written consent of The Appraisal Associates, Inc.or its principals, which
consent The Appraisal Associates, Inc. reserves the right to deny. The report should not be advertised to the public or otherwise
used to induce a third party to purchase the property. Any third party not covered by the exemptions herein who may possess
this report is advised that he should rely on his own independently secured advice for any decision in conjunction with the
property. Appraisal Associates, Inc. ., its professionals and/or principals, shall have no accountability or responsibility to any
such third party.
19. Unless specifically set forth in the body of the report, nothing contained therein shall be construed to represent any direct or
indirect recommendation to buy, sell, or hold the property(ies) at the value(s), or development scenario as stated. Such
decisions involve substantial investment strategy and must be specifically addressed in consultation form.
20. The distribution of the total valuation in this report between land and improvements applies only under the existing program of
utilization. The separate valuations for land and building must not be used in conjunction with any other report and are invalid
if so used.
21. The forecasts, projections, and/or operating estimates contained herein are based on current market conditions, anticipated
(though recognizably short term) supply and demand factors, and a continued stable economy, unless otherwise stated. Any
forecasts are therefore subject to changes in future conditions.
22. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. The Appraisal Associates, Inc. has not made
a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various
detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of
the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the
Act. If so, this fact could have a negative effect upon the value of the property. Since The Appraisal Associates, Inc. has no
direct evidence relating to this issue, we did not consider possible non-compliance with the requirements of ADA in estimating
the value of the property.
Page 71
23. Insurable value is not provided in this report. Taking the difference between our reported Market Value and
estimated land value is not an appropriate method for estimating replacement cost of improvements for insurance
coverage purposes. We recommend a proper insurance representative to estimate an appropriate coverage for the
subject property. Insurable value has two definitions per Marshall and Swift LP. 1. The value of an asset or asset group
that is covered by an insurance policy. It can be estimated by deducting costs of non-insurable items (e.g., land value) from
Market Value. 2. Value used by insurance companies as the basis for insurance. Often considered to be replacement or
reproduction cost plus allowances for debris removal or demolition less deterioration and non-insurable items. Sometimes
cash value or Market Value, but often entirely a cost concept.
Page 72
DEFINITIONS
Building Classifications
Class A - building has excellent location and access to attract the highest quality tenants. Building must
be a superior construction and finish, relatively new or competitive with new buildings, and providing
professional on-site management.
Class B - building with a good location, management, construction land tenancy. Can compete at low
end of Class A.
Class C - generally an older building with growing functional and/or economic obsolescence.
Class D - an older building in need of extensive renovation as a result of functional obsolescence or
deterioration.
Build-to-Suit
A method of leasing property whereby the landlord builds a new building in accordance with a tenant's
specifications and leases the entire building to the tenant.
Common Area
The area owned in common by the owners of condominiums or planned unit development homes in a
subdivision. Also, the total area within the shopping center that is not designed for rental to tenants but
that is available for common use by all tenants or groups of tenants, their invitees and adjacent stores.
Parking and its appurtenances, malls, sidewalks, landscaped areas, public toilets, truck and service
facilities, and the like are typically included in the common area.
Common Area Maintenance (CAM) charges
Includes income collected from tenants for operating and maintaining items pertaining to common areas.
Shopping center leases usually contain a clause requiring the tenant to pay its share of operation and
maintenance for common areas. Such clauses typically define the basis on which charges are made and
the type of cost items allocable to maintenance of the common area. The most common methods by
which landlords prorate common area charges among tenants are (1) a prorated charge based on a tenants
leased area as a portion of the total leasable area of the center or the linear exposure in store frontage, (2)
a fixed charge for a stated area, and (3) a variable charge based on a percentage of sales. Some centers
include a cost-of-living increase in the common area charges.
Concessions
Capital extended by the landlord in the form of rent abatement, build-out allowance or other payments to
induce the tenant to sign a lease.
Core Factor
The percentage of common areas in a building (restrooms, hallways) that, when added to the net usable
square footage, equals the net rentable square footage. May be computed for building or floor of a
building. A loss factor or load factor is calculated by dividing the rentable square footage by the usable
square footage.
Page 73
Economic Rent
Calculations or analysis to determine market rental value of a property at any given time, even though the
actual rent may be different.
Effective rent
The rental rate actually achieved by the landlord after deducting the value of tenant improvements and
other concessions from the basic rental rate paid by a tenant, usually expressed as an average rate over the
term of the lease.
Efficiency Factor
The number resulting from dividing the usable area by the gross building area in office building,
providing a benchmark measurement for the economic efficiency of that buildings use as an office
building.
Expense Stop
Provision in a lease establishing the maximum level of operating expenses to be paid by the landlord.
Expenses beyond this level are to be reimbursed by the tenant. May be applied to specific expenses only,
such as real estate taxes or insurance.
Flex Space
A one or two story building with high ceilings, load-bearing floors and loading dock facilities with little
or no common areas. Usually configured to allow a small amount of office space in combination with
light assembly or warehouse/distribution uses.
Gross Building Area
The total floor area in office building measured in square feet or square meters that is associated with that
buildings use as an office building. The area extends to the outer surface of exterior walls and windows
and includes office area, retail area, and other rentable area such as vending machine space and storage
area but excludes parking and roof space.
Gross Lease
A lease that provides that the landlord shall pay all expenses of the leased the property, such as real estate
taxes, insurance, maintenance, utilities, etc.
Ground Lease
A lease covering the use of land only, but the lease sometimes secured by improvements installed by the
tenant. Also called a land lease.
Ground Rent
Rent paid for vacant unimproved property. If the property is improved, ground rent is that portion of the
total earnings attributable to the land only.
HVAC
An acronym for heating, ventilating and air-conditioning. Refers to the equipment used to heat and cool a
building.
Like-Kind Property
The tax term used in certain real property exchanges. Property must be exchanged for like-kind property
and the tax consequences postponed pursuant to Section 1031 of the Internal Revenue Code. The term
does not refer to the physical similarity of the properties but the purpose and intent of the taxpayer.
Market Rent
The rental income that a property would most probably command on the open market based on current
rents paid for on the open market for comparable space.
Page 74
Leasehold Improvements
Improvements made to the leased premises by a tenant.
Net Rentable Area
Floor area of a building less any vertical penetrations of the floors. No deductions are made for the
necessary columns and projections of the building (BOMA Standard).
Pass Throughs
(1) a method of escalation found in modern leases whereby the tenants indirectly pays increases in
operating expenses of the property. (2) a method of paying interest directly to certificate holders of a
mortgage pool. (3) building and operating expenses that are paid by the tenant under the terms of a lease.
Percentage Lease
A lease, generally on a retail business property, in which the rent is calculated as a percentage of gross or
net sales. There is usually a minimum or base rent in the event of poor sales.
Rentable Area
Usable square feet plus a percentage (the core factor) of the common areas on the floor, including
hallways, bathrooms and telephone closets (and sometimes main lobbies). Rentable square footage is the
number of square feet on which a tenant's rent is based.
Sale-Leaseback
A sale and subsequent lease from the buyer back to the seller. Often, a financing arrangement in which a
property owner sells all or part of the property to an investor and then leases it back. Although the lease
actually follows the sale, both are agreed to as part of the same transaction.
Triple Net (NNN) Rent
Rent stipulated in a lease in which the tenant agrees to pay a share of the landlord’s operating expenses
including insurance, maintenance or real estate taxes for the building proportionate to the amount of space
it occupies.
Source: Black's Guide
ADDENDA
Page 75

Golden Isles Baptist Church

Transcription

Similar documents

Hexter-Fair FirstAmerican Title~

Appraisal Districts San Antonio Area

request to correct name or address on a real property account

Pope John Paul II`s Teaching on Sexuality and Marriage: An Appraisal

Full-sized poster

By Eric Overmyer - Princeton University

Preview

Happy Hour - Houston Metropolitan Chamber of Commerce

Estimating Home Value