Complete Self-Contained Appraisal Report

COMPLETE SELF-CONTAINED APPRAISAL REPORT
OF
A .537 ACRE LOT
AT THE CORNER OF PRINCE STREET AND HAMAR STREET
THE CITY OF BEAUFORT
BEAUFORT COUNTY, SOUTH CAROLINA
AS OF
MAY 4,2005
BY
DlGHT L. OLLIFF, MAl
DIGHT OLLIFF AND ASSOCIATES, INC.
Real Estate Appraisers and Consultants
May 5, 2005
Ms. Paula B. Edgerly, CPPO
Purchasing Director
BEAUFORT COUNTY
100 Ribaut Road, Room 105
Beaufort, South Carolina 29902
RE:
Appraisal of 0.537 acres at Prince and Hamar Street
City of Beaufort, Beaufort County, South Carolina
Dear Ms. Edgerly:
As requested, I have inspected the above referenced property consisting of a 1.537 acre lot located at Prince Street
and Hamar Street in the City of Beaufort, Beaufort County, South Carolina. I have estimated the market value of
the fee simple interest as of May 4, 2005.
Enclosed is a complete self-contained appraisal report cont.aining the research and analysis conducted in
preparing this appraisal. The market value of the fee simple interest subject to the Limiting Conditions and
Assumptions included in this report as of May 4, 2005 is estimated to be:
ONE HUNDRED FIFTY-FIVE THOUSAND DOLLARS
($155,000)
The value estimates stated above assume payment in cash or its equivalent as cited in the market value definition
included in this report This appraisal has been completed in accordance with the Uniform Standards of
Professional Appraisal Practice, and the Standards of Professional Practice and Code of Ethics of the Appraisal
Institute.
This appraisal report reflects or addresses any significant information kno\\'"Il to this appraiser which may
materially alter the "as is" nature of the appraisal. This appraisal assignment was not based on a requested
minimum valuation, a specific valuation, or the approval of a loan.
Acceptance, reliance upon, or use of this report by any person or persons constitutes acknowledgment and
acceptance of the Limiting Conditions and Assumptions contained in the report and any specific Limiting
Conditions and Assumptions stated anywhere in the report or this letter.
It has been my pleasure to serve you in this matter. If I can be of further assistance, please do not hesitate to
contact me.
Respectfully submitted,
Dl~ AND ASSO• ..-..-rc__, INC
D~~
S.C. Certified Appraiser No. CGl64
Dight L. Olliff, MAl P.O. Box 4964 Hilton Head Island, South Carolina 29938
(843) 686-4004
TABLE OF CONTENTS
SUMMARY OF SALIENT FACTS AND
CONCLUSIONS
PROPERTY IDENTIFICATION
PURPOSE AND DATE OF APPRAISAL
AREA DATA
,
NEIGHBORHOOD ANALYSIS
SITE DESCRIPTION AND ANALYSIS
TAXES AND ASSESSMENTS
ZONING AND RESTRICTIONS
HIGHEST AND BEST USE ANALYSIS
VALUATION PROCEDURE AND SITE
VALUATION
APPENDIX A
CERTIFICATION
LIMITING CONDITIONS AND
ASSUMPTIONS
QUALIFICATIONS: DIGHT L. OLLIFF
.
'"
1
Page 3
Page 5
Page 10
Page 13
Page 16
Page 17
Page 18
Page 20
Page 26
Page 31
Page 32
Page 36
View of site at Prince Street
II
Street scene; Prince Street
Street scene; Hamar Street
111
SUMMARY OF SALIENT FACTS AND CONCLUSIONS
PROPERTY DATA
Property I.D.:
HighestfBest Use:
Marketing time:
The subject property consists of a .537 acre lot located at
the comer of Prince Street and Hannar Street in the City
of Beaufort, Beaufort County, South Carolina.
May 4, 2005.
Fee simple interest subject to the Limiting Conditions and
Assumptions contained in this report.
The property is located in the City of Beaufort on Port
Royal Island in northern Beaufort County. Northern
Beaufort County includes a significant military population
due to the location of the Marine Corps Air Station and
Parris Island Recruit Depot in the area. In addition, the
area is developing a flourishing tourist industry.
The subject is located just west of the original dovvntown
area of Beaufort. The neighborhood is dominated by
bungalow style residential dwellings on small lots.
The site measures .537 acre with 180 feet frontage at
Prince Street and 130.01 feet frontage at Hamar Street.
General Residential.
The Beaufort County Tax Assessor values the property at
$23,000. However, no taxes are assessed as the property
is ovvned by Beaufort County.
Subdivision into three to four residential lots.
Three to six months.
VALUE CONCLUSIONS
Site value:
$155,000
Date of Appraisal:
Property Rights:
Area data:
Neighborhood:
Site:
Zoning:
Taxes:
PROPERTY IDENTIFICATION
General Identification
The subject property consists of a .537 acre lot located at the corner of Prince Street and
Hamar Street in the City of Beaufort, Beaufort County, South Carolina.
Descriptions of the property included in this report are based on an on-site inspection, a
PLAT PREPARED FOR SOUTH CAROLINA DEPARTMENT OF MENTAL
RETARDATION OF 0.537 ACRES CITY OF BEAUFORT BEAUFORT COUNTY,
SOUTH CAROLINA dated January 24, 1991 by A.H. Schwacke, III, Registered Land
Surveyor No. 13855, and Beaufort County tax maps and records.
The property is described in further detail in the Site Description and Analysis section of
this report.
Legal Description
The property is legally identified as follows:
All that certain piece, parcel or tract ofland lying and being in the City
ofBeaufort, Beaufort County, South Carolina, in the northeast corner of
the intersection ofPrince Street and Hamar Street, containing 0.537
acres, more or less, and being shown on a PLAT PREPARED FOR
SOUTH CAROLINA DEPARTMENT OF MENTAL RETARDATION OF
0.537 ACRES CITY OF BEA UFORT BEA UFORT COUNTY, SOUTH
CAROLINA dated January 24, 1991 by A.H Schwacke, Ill, Registered
Land Surveyor No. 13855. Said plat is recorded in the Office ofthe
Register ofDeeds for Beaufort County, South Carolina in Deed Book
1285 at Page 1258.
Tax Map and Parcel
The Beaufort County Tax Assessor identifies the property as Parcel R120 003 0000157
0000.
Page 2
Ownership History
The property is currently recorded in the name of COUNTY COUNCIL OF
BEAUFORT COUNTY who obtained the property from the SOUTH CAROLINA
DEPARTMENT OF MENTAL RETARDATION by Limited Warranty Deed on April
20, 2004. The SCDMR had been deeded the property by Beaufort County on March I,
1991 with the condition that if they did not use the property for a live-in residential
facility for disabled persons it would revert to the County.
There have been no sales of property, to my knowledge, in the past five years.
Beaufort County has reportedly received two offers to purchase the property at a price of
$180,000 in the past week. To my knowledge, both were verbal offers; thus, it is
unknown is the offers were subject to any contingencies or due diligence clauses. The
offers are slightly higher than the market value estimate reflected in this report.
Page 3
PURPOSE AND DATE OF APPRAISAL
The purpose of the appraisal is to estimate the market value of the fee simple interest
subject to the Limiting Conditions and Assumptions contained in this report as of May
4,2005.
Market value is defined as
"The most probable price which a property should bring in a competitive
and open market under all conditions requisite to afair 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 ofa sale as ofa specified date and the passing oftitle
from seller to buyer under conditions whereby:
1) buyer and seller are typically motivated;
2) both parties are well in/ormed or well advised, and acting in what
they consider their own best interests;
3) a reasonable time is allowedfor exposure in the open market;
4) payment is made in terms ofcash in Us. dollars or in terms of
financial arrangements comparable thereto; and
5) the price represents the normal considerationfor the property sold
unaffected by special or creative financing or sales concessions granted
by anyone associated with the sale. " I
Fee simple interest is defined as
"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. ,,2
2
Uniform Standards of Professional Appraisal Practice, 1994 Edition, pages 7-8.
Appraisal Institute, The Dictionary of Real Estate Appraisal, 1993, Page 140.
Page 4
Scope of the Appraisal
This appraisal is a complete appraisal prepared in a self-contained format as defined by
the Uniform Standards of Professional Appraisal Practice.
In preparing this appraisal, I have assembled and verified data on sales of vacant lots in
the immediate neighborhood. The data included in this report is sufficient to provide the
basis for a reasonable value estimate and this report conforms with the Uniform
Standards of Professional Appraisal Practice, and the Standards of Professional
Appraisal Practice and the Code of Professional Ethics of the Appraisal Institute.
This report has been prepared for BEAUFORT COUNTY for use in determining the
value of the property in consideration of a proposed purchase or donation. This report
may not be used by any person or entity other than BEAUFORT COUNTY or for any
purpose other than that described above without written consent ofBEA UFORT
COUNTY and the author.
This report or any part thereofmay not be reproduced or disseminated to third parties
without the express written permission ofDight L. Olliff, MAl and Dight Olliffand
Associates, Inc.. Dight L. Olliff, MAl and Dight Olliffand Associates, Inc. is not
responsible for unauthorized use ofthis report.
Page 5
AREA DATA
The subject property is located in the City of Beaufort on Port Royal Island in northern
Beaufort County, South Carolina. Beaufort is the county seat of Beaufort County,
located on the South Carolina coast about 45 miles north of Savannah, Georgia, and 70
miles south of Charleston, South Carolina. The Greater Beaufort Area includes Port
Royal Island, Lady's Island, St. Helena Island, and Fripp Island.
Access and transportation
Beaufort has good road access provided by U.S. Highway 21 which intersects U.S. 17
about 10 miles west of the city and Interstate 95 about 15 miles to the west. Both routes
provide access to Charleston and Colwnbia to the north, and Savannah to the south. In
addition, South Carolina Highway 170 provides access to Hilton Head Island and
Savannah- Highway 170 is currently being expanded to four lanes including bridges
across the Beaufort River and Chechessee River which will further enhance access to the
area.
The Savannah and Charleston airports serve the area with commuter and commercial
airlines which compliment the network of State and Federal highways providing good
access to Beaufort. In addition, the City is located on the Atlantic Intra coastal
Waterway, providing good access via water with numerous recreational marinas in the
area, and also has a good rail network for industrial and commercial shipments.
Population and growth
The population of Beaufort County, which includes Lady's Island and Hilton Head
Island, was estimated by the 2000 census at 120,937 persons, reflecting a growth of
about 39.9% (3.425% per annum) since 1990. The Town of Port Royal's population has
Page 6
Figure I: Map showing location of Beaufort
Page 7
increased from 2,985 in 1990 to 3,950 in 2000, a 32.33% change. The City of Beaufort's
population has been increasing steadily over the past decade and is estimated at 12,950
persons. Including Port Royal, Beaufort, Lady's Island, and other surrounding islands,
the population of the Northern Beaufort County is estimated at 67,486 and has increased
by 2] .7% since 1990. In addition, 20,000 recruits annualJy receive basic training at the
Marine Corps Recruit Depot at Parris Island.
Beaufort County was first in the state in population growth between 1990 and 2000,
with Hony, Edgefield, and Jasper Counties following. Beaufort County's growth of
39.90,10 is significant compared to South Carolina's at 15.1%. The majority of the
county's growth has occurred in the
southern portion at Blumon and Hilton
Head Island as a result of resort
.
60
50
~---
development. The "Southern Beaufort
;-"
County Area" population is estimated at
10
53,451 and has increased by 73% since
G
. - _..........
1980
"
--~./
1990
1990. Although the northern part of the
county lags behind the southern portion,
./
'"
zooo
2G1G
2020
County.proj.
Census/pro,.
Figure 2 Growth forecasts
s..."",: a.- COUfll\OC....... 2000
the entire county shows an impressive
growth rate.
Income and Employment
Beaufort County has a relatively wide range of income classes. Hilton Head leads the
State in median per capita income reported in 1999 at $36,621, considerably more than
the City of Beaufort at $20,501. The Greater Beaufort population is dominated by lower
and middle income families compared to Hilton Head which includes a significant upper
class. This is due in part to a large population of military dependents and civilian military
employees as well as retirement of wealthy northerners to Hilton Head.
Page 8
Beaufort's economy is characterized by its military bases and, to an extent, tourism.
Beaufort's military bases have been spared in the recent closings and a change in their
status is not anticipated. In addition, the increasing tourism and retirement development
is rapidly replacing the military as the leading industry. Tourism has become the second
leading industry in the area with the number of visitors to the City exceeding 300,000
persons. Over 1,500 persons are employed in tourism related jobs and total travel
related expenditures exceed $50,000,000.
Employment, in addition to the military bases and tourism industry, is provided by
development, home building, agriculture, and retail and service businesses which
supply these industries. Employment in Beaufort County, like population, has increased
steadily. Employment was estimated at 47,862 in 2000, up from 33,743 in 1990,
reflecting an annual employment growth rate of 5.15%. Employment is dominated by
nonmanufacturing jobs, with services and trade alone comprising over 50%. Beaufort
County has one of the lowest unemployment rates in the state, estimated at less than four
per cent. However, no specific figures are available for the Greater Beaufort area.
Development trends
The greatest stimulant of growth in the county has been resort and retirement residency
to the coastal islands, led by Hilton Head and Bluffton in the southern part of the
County. However, Beaufort and Lady's Island have emerged as resort and retirement
destinations, capitalizing on the City's history and charming ante bellum houses along
the water front. Local residential development has grown primarily to the east of the
city on several of the small barrier islands. Fripp Island, Lady's Island, and Dataw Island
are experiencing primarily affluent residential growth and some resort influence.
Page 9
Commercial development has expanded with residential development with significant
construction occurring over the past five years. Growth has been more active to the
west and south of the city near the marine bases on U.S. Highway 21 (BoW1dary Street)
and Ribaut Road (South Carolina Highway 281), and more recently on Lady's Island to
the east. Primary growth in the area consists of retail shopping centers, restaurants and
mixed office development.
Overall, the Beaufort area is experiencing significant growth with the economy shifting
from one of military and government domination to real estate and tourism.
Page 10
NEIGHBORHOOD ANALYSIS
The neighborhood is located in the City of Beaufort, just west of the original downtown
area ofthe City. It is bounded by Charles Street to the east, the Beaufort River to the
south, Ribaut Road to the west, and Boundary Street to the north. The neighborhood is
laid out in a "block" configuration with streets running north to south and east to west.
The neighborhood is dominated by residential development with a wide mix of styles
and income levels. Beaufort is one of the oldest cities in South Carolina and some of
the dwellings were constructed in the late 1700's, notably those houses fronting Bay
Street overlooking the Beaufort River. Generally, these dwellings are colonial mansions
ranging from 4,000 to 8,000 square feet with prices exceeding $2,000,000 for recently
renovated structures. Some of these structures have been converted to Bed and
Breakfast Inns or Historic
hillS
and a limited number are used for offices.
Larger, colonial style dwellings are also located at King Street and on the eastern
boundary along Charles Street, with a few scattered throughout the neighborhood.
The interior section of the neighborhood north of Bay Street is dominated by small,
bungalow style dwellings ranging from about 700 square feet to about 1,500 square feet,
with prices ranging up to about $250,000. The majority of these dwellings were
constructed in the early to mid 1900's though a significant number date back to the late
1800's and several have been built recently. This portion of the neighborhood is
undergoing change from a low income area to a moderate income area as professionals
and retirees are moving into the area and renovating the existing structures.
Page 11
8ltMt All. . USA._
Figure 3: Neighborhood map
Page 12
Prices in the area are increasing rapidly. Recent sales indicate an increase of 20% to
over 30% per year for vacant lots, and current listings indicate asking prices 50% to
200% higher than sales of a year ago. Individual lots range from about $40,000 to
$50,000.
Additional uses in the neighborhood include multifamily uses, corrunercial uses and
institutional uses. Multifamily use is limited and consists of two duplex developments
of the Beaufort Housing Authority, one of which is one block west of the subject, and a
small town house development about four blocks east of the subject. Additional
multifamily uses are not anticipated as it is inconsistent with the areas historical
character.
Institutional uses include an elementary school across Prince Street from the subject,
government offices including the County Human Resources building west of the subject,
and recreational facilities along Green Street.
Commercial uses are concentrated at the neighborhood's boundaries along Charles
Street, King Street, Ribaut Road and Boundary Street. Uses along Charles Street and
King Street generally consist of converted residences utilized for real estate and
attorney's offices opposed to more typical retail structures along Ribaut Road and
Boundary Street. One notable corrunercial development is a construction site located
one block east of the subject.
In conclusion, the neighborhood is rapidly changing from a lower income area to a
moderate income area as professionals and retirees are attracted by the historic
significance of the area and its proximity to the downtown area. Commercial
encroachment appears to be stabilizing at Charles Street and King Street with the
majority of the interior areas remaining residential.
Page 13
SITE DESCRIPTION AND ANALYSIS
General Description and Location
The site measures 0.537 acre with 180 feet frontage at Prince Street on its southern
boundary and 130.01 feet frontage at Hamar Street on its western boundary. It is
rectangular shaped, measuring 180.03 feet on its northern boundary adjacent to
residential sites fronting Duke Street, and 129.80 feet on its eastern boundary adjacent to
residential lots fronting Adventure Street.
Prince Street and Hamar Street are two lane macadam streets traversing the
neighborhood. Prince Street intersects Ribaut Road three blocks west of the subject site
and Carteret Street 11 blocks east of the site. It contains mostly residential development
though commercial development consisting of mostly converted residences becomes
prominent to the east of Charles Street. Hamar Street intersects Bay Street two blocks
south of the subject and Boundary Street four blocks north of the subject. It contains
primarily residential development with the exception of the school located across from
the subject site.
Topography and Vegetation
The site is generally level, at grade with Prince and Hamar Streets. The lot is mostly
cleared with trees concentrated along the boundaries.
Flood hazard
According to FEMA Flood Hazard Rate Map 450026 0050, the property is located in
flood hazard Zone C. Zone C denotes an area of minimal flooding and is not
considered a special flood hazard area.
Page 14
N
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Figure 4- Copy of Plat
."
Page 15
Utilities
Public utilities include overhead electric and telephone wires at Prince Street and Hamar
Street. Public water and sewer is provided by the City of Beaufort and available at the
right-of-way of Prince Street and Hamar Street.
Easements
The plat does not show any easements encumbering the property and none were evident
upon inspection.
Overall, the site is well-located for small single family development consistent with
surrounding development.
Page 16
TAXES AND ASSESSMENTS
The Beaufort County Tax Assessor values the property at $23,000. South Carolina
assesses nonresidential real property at six per cent, reflecting an assessed value of
$1,3 80 for the subject. The current millage rate for District 120 is .1986, reflecting a tax
liability of$274. Taxes are paid in arrears and are due in December.
As the property is currently owned by Beaufort County, it is not assessed taxes.
The assessor's value estimate is
considerably less than the value estimate
0.3000
reflected in this report and is
o.aoo -
inconsistent with comparable properties.
0.2600
D.2400
D.2200
Beaufort County taxes have increased in
recent years from 4% to 17% annually
although decreasing slightly from 1995
0.2000
D.1800
0.1600
1211
11D
2llll
300
4lIO
0.«00
111118
to 1996. At the other extreme, taxes for
1110
1999
2000
2001
2IlD2
2003
Rgute 5: Changes In Millajj8 Rate
Source: Beaufort County Tax Assessor
1992 increased over 1991 by 16% and
1993 taxes increased by about 12%. Figure 5 reflects increases in the millage for
northern Beaufort County between the 1998 reassessment and the 2004 reassessment.
Page 17
ZONING AND RESTRICTIONS
The subject tract is zoned General Residential by the City of Beaufort. Specific uses
include single family and multi family residential uses.
The site is also subject to Historic District design review.
Specific requirements of the General Residential District are shown below:
Density:
Single family setbacks:
Front:
Side:
Rear:
Multi family setbacks:
Front:
Side:
Rear:
Parking:
IBR:
2BR:
3 or more BR:
Maximum bldg. height:
Single family:
Multi family:
25 units per acre
12 feet
6 feet
15 feet
25 feet
10 feet
15 feet
1 space per uni t
1.75 space per unit
2 spaces per urn t
35 feet
50 feet
Page 18
HIGHEST AND BEST USE ANALYSIS
Highest and best use is defined as
"The reasonably probable and legal use ofvacant land or an improved
property, which 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 legal permissibility,
physical possibility, financial feasibility, and maximum profitability". 3
Determination of highest and best use is dependent on the legal and physical constraints
on the property as well as market conditions for various alternate uses.
Highest and best use analysis considers four basic criteria for establishing the highest
and best use of a property: The highest and best use is the use among those uses which
are physically possible, legally permissible, and financially feasible that is maximally
productive or reflects the greatest return to the property.
The highest and best use analysis considers the highest and best use of the site "as
vacant" and ready for development, and "as is" or in its current (or proposed) state of
development. As the subject is a vacant tract, only the highest and best use "as vacant"
is considered in this analysis.
liAs vacant"
The highest and best use analysis for the vacant site indicates the use, or uses, that create
the highest site value, and is generally not to great enough depth to establish a specific
use. For example, it may indicate a retail use vs. an office, but would not indicate a
specific type of retail use. Generally, the highest and best use of a vacant site is
dependent on surrounding land uses and the compatibility of a proposed or alternative
use.
3
Appraisal Institute, The Dictionary of Real Estate Appraisal, 1993, Page 171.
Page 19
The subject site is restricted by zoning to single family or multi family residential uses.
Under ideal conditions, the site could be developed with up to 13 multi family units.
However, such a development would likely require a minimum offout stories and
would be incompatible with surrounding development.
The area is dominated by single family residential uses including most recent
development in the area. While limited multi family development exists in the
neighborhood, it is inconsistent with changes occurring and the revitalization of the
neighborhood as an historic residential area. Thus, single family development is
considered indicative of the highest and best use of the S1 teo
The site is larger than typical single family sites in the neighborhood and subdivision
into three or four single family sites is most probable.
Page 20
VALUATION PROCEDURE AND SITE VALUATION
As the subject is a vacant site, the sales comparison approach is considered the most
reasonable technique for estimating the value of the property. The sales comparison
approach is a technique of comparing characteristics of recent sales of similar properties
to those of the subject. The reliability of the technique is dependent on the quality and
quantity of the sales data and is generally superior to other techniques such as allocation
or residual techniques.
Seven sales of vacant lots in the immediate area have been utilized in estimating the
value of the subject. The sales are summarized in Table 1 and described more
thoroughly in Appendix A.
Sale Location
1 2205 Prince Slreet
2 2213 Prince Street
3 1204 Greene Street
4 2211 Prince Street
5 1711 Duke Street
6 1505/1201 Washingbn
7 2209 Prince Street
Table 1: COlllJarable Site Sales
Date Acres
Aug-03 0.17
Feb-04 0.16
Mar-04 0.17
Aug-04 0.16
Aug-04 0.19
Aug-04 0.18
Ule 0.16
Price
$44,000
$35,000
$42,000
$43,100
$45.000
$48,000
$50,000
$/Acre
$258,824
$224,206
$247,059
$268,052
$236,842
$266,667
$310,965
The sales are located within about five blocks of the subject in the historic residential
district of downtown Beaufort. They have occurred within the past two years and are
the most recent that compare to the subject. All are residential lots with little potential
for conversion to commercial use.
The sales compare well with the subject with the exception of size. The subject site is
considerably larger than the comparables and is suitable for subdivision into several
smaller lots.
Page 21
Is::sa'
FIgure 6: Comparable Sales
,If
:
l?!
V
~
I
Page 22
Sales 1, 2, 4 and 7 are located on Prince Street and compare very well with the subject in
terms of location. These sales reflect prices ranging from $35,000 to $50,000 and unit
prices of $224,000 to $311,000 per acre. Unit prices vary primarily due to date of sale
which varies from August 2003 to a current contract for sale.
Sale 3 is located four blocks northeast of the subject on Greene Street. The site sold in
March 2004 for a unit price of $247,059 per acre. It is significantly smaller than the
subject but otherwise compares well.
Sale 5 is located one block north of the subject on Duke Street. It sold in August 2004
for a unit price of$236,842 per acre.
Sale 6 consists of two noncontiguous lots in the 1200 and 1500 block of Washington
Street. The lots have a combined size of .18 acre and sold in August 2004 for a unit
price of $266,667 per acre.
The sales are adjusted for dissimilarities in order to equate them to the subject as shown
in Table 2 on the following page.
Prices in the area have been escalating rapidly due to the renewed interest in the historic
district. Several lots have sold multiple times over the past several years and indicate
annual increases of20% to over 30%. Several of these sales are shown below:
2211 Prince 8/04 $43,100
2209 Prince UIC $50,000
Increase of 20% per year
2213 Prince 2/04 $35,000
2205 Prince UIC $50,000
Increase of 29% per year
Page 23
2205 Prince 6/01
$30,000
2205 Prince 1/04 $44,000
Increase of 21 % per year
7/01
$21,000
1711 Duke
1711 Duke
8/04 $45,000
Increase of 29% per year
Based on the above comparisons, an adjustment of 25% per year is applied to the sales
in this analysis.
Sale No.
Price
Properly Riah1s
Adius1:id Price
FinancinafConcessions
Adjusted Price
Market Conditions
Adiusild Price
Adiusted Price/Unit
LocationlF ron1aQe
Physical Char.- Size
PhysicaIChar.- other
U~litv
NetAdiustment
Indicaled Value
Table 2: Adjustment Grid .
1
$44000
$0
$44000
$0
$44 000
$22000
$66,000
$388235
$0
($58235
$0
$0
($58235
$330000
2
$35000
$0
$35 000
$0
$35000
$8750
$43750
$280257
$0
($42039
$0
$0
($42039
$238219
3
$42000
$0
$42000
$0
$42000
$10500
$52500
$308824
$0
($46324
$0
$0
($46324
$262500
4
$43 100
$0
$43100
$0
$43100
$10775
$53875
$335,065
$0
($50260
$0
$0
($50260
$284805
5
$45000
$0
$45,000
$0
$45000
$11 250
$56250
$296,053
$0
($44408
$0
$0
($44 408
$251 645
6
$48000
$0
$48000
$0
$48,000
$12,000
$60000
$333333
$0
($50000
$0
$0
($50000
$283 333
7
$50,000
$0
$50000
$0
$50000
$0
$50000
$310,965
$0
($46645
$0
$0
($46645
$264 320
Each of the sales is adjusted for size as they are considerably smaller than the subject.
The adjustment is based on historical indications of a change in unit price as size varies
by a factor of two and is estimated at 15% in this analysis.
No other adjustments are warranted.
The sales reflect an adjusted value range of $238,219 to $330,000 per acre and are most
consistent from about $250,000 per acre to $285,000 per acre. Considering the rapid
Page 24
changes in market conditions that are occurring, a unit value in the upper end of the
range at $285,000 per acre is reasonable and reflects a total value of $153,900.
Based on the analysis presented above, the market value of the fee simple interest
subject to the Limiting Conditions and Assumptions included in this report as of May 4,
2005 is estimated to be:
ONE HUNDRED FIFTY-FIVE THOUSAND DOLLARS
($155,000)
Exposure and Marketing Time
Exposure time is defined as the estimated length of time the property interest being
appraised wouJd 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 estimate based upon an analysis of past events assuming a competitive and
open market (note that the market value estimate preswnes that the exposure time occurs
prior to the date of the appraisal). The overall concept of reasonable exposure
encompasses not only adequate, sufficient and reasonable time but also adequate,
sufficient and reasonable effort.
Marketing time, as opposed to exposure time, is an estimate of the amount of time it
might take to sell a property interest at the estimated market value level during the
period immediately after the date of the appraisal, and mayor may not equate to
reasonable exposure time.
As with any real estate, both exposure and marketing time can vary widely due to needs
of specific buyers active in the market. Often several similar properties may sell in a
short period of time followed by an extended period with no sales. A lengthy marketing
Page 25
period, assuming the property is priced appropriately, is not anticipated. In this case,
both exposure and marketing time are estimated at three to six months.
Page 26
APPENDIX A
Comparable sales data
Page 27
SALE NO.1
PROPERTY:
2205 Prince Street
GRANTOR:
Angus F. Trask
GRANTEE:
Corey D. Post
DATE OF SALE:
August 15,2003
SIZE:
.17 acres
PRICE:
$44,000
PRICE PER ACRE:
$258,824
DEED REFERENCE:
1821-0440
COMMENTS:
None.
SALE NO. 2
PROPERTY:
2213 Prince Street
GRANTOR:
Carrie Bell Smalls
GRANTEE:
Corey Post
DATE OF SALE:
February 2004
SIZE:
.16 acres
PRICE:
$35,000
PRICE PER ACRE:
$224,206
DEED REFERENCE:
1921-0602
COMMENTS:
None.
Page 28
SALE NO. 3
PROPERTY:
1204 Greene Street
GRANTOR:
Alice G. Wright
GRANTEE:
Patricia A. Schlatterer
DATE OF SALE:
March 19,2004
SIZE:
.17 acres
PRICE:
$42,000
PRICE PER ACRE:
$247,059
DEED REFERENCE:
1927-0231
COMMENTS:
None.
SALE NO. 4
PROPERTY:
2211 Prince Street
GRANTOR:
Joseph Owens
GRANTEE:
Adam Stewart
DATE OF SALE:
August 4, 2004
SIZE:
.16 acres
PRICE:
$43,100
PRICE PER ACRE:
$268,052
DEED REFERENCE:
2003-1787
COMMENTS:
None.
Page 29
SALE NO. 5
PROPERTY:
1711 Duke Street
GRANTOR:
The Dumac Co., Inc.
GRANTEE:
Joseph Culbertson
DATE OF SALE:
August 31, 2004
SIZE:
.19 acres
PRlCE:
$45,000
PRlCE PER ACRE:
$236,842
DEED REFERENCE:
2012-2542
COMMENTS:
None.
SALE NO. 6
PROPERTY:
150511201 Washington
GRANTOR:
The Dumac Co., Inc.
GRANTEE:
C.D. Post Construction
DATE OF SALE:
August 31, 2004
SIZE:
.18 acres
PRICE:
$48,000
PRICE PER ACRE:
$266,667
DEED REFERENCE:
2014-2430
COMMENTS:
This sale consists of two non contiguous lots at
Washington Street that total. 18 acre.
Page 30
SALE NO. 7
PROPERTY:
2209 Prince Street
GRANTOR:
GRANTEE:
DATE OF SALE:
Under contract
SIZE:
.16 acres
PRlCE:
$50,000
PRlCE PER ACRE:
$310,965
DEED REFERENCE:
N/A
COMMENTS:
This lot is currently under contract for sale.
Page 31
CERTIFICATION
The undersigned does hereby certify that, except as otherwise noted in this appraisal
report:
1.
The statements of fact contained in this report are true and correct.
2.
The reported analyses, opinions, and conclusions are limited only by the
reported assumptions and limiting conditions, and are my personal,
unbiased professional analyses, opinions, and conclusions.
3.
I have no present or prospective interest in the property that is the subject
of this report, and I have no personal interest or bias with respect to the
parties involved.
4.
My compensation is not contingent upon the reporting of a predetermined
value or direction in value that favors the cause of the client, the amount
of the value estimate, the attainment of a stipulated result, or the
occurrence of a subsequent event.
5.
My analyses, opinions, and conclusions were developed, and this report
has been prepared, in conformity with the Uniform Standards of
Professional Appraisal Practice and the Standards of Professional
Practice and Code of Professional Ethics of the Appraisal Institute.
6.
I have made a personal inspection of the property that is the subject of
this report.
7.
No one provided significant professional assistance to the person signing
this report.
8.
I certify that the use of this report is subject to the requirements of the
Appraisal Institute relating to review by its duly authorized
representatives.
9.
As of the date of this report, I have completed the requirements of the
continuing education program of the Appraisal Institute.
Die~/V>"/:7/.
S.C. State Certified Appraiser No. CG164
Page 32
LIMITING CONDITIONS AND ASSUMPTIONS
The appraisal is made subject to the following conditions and assumptions:
I.
Any legal description or plats reported herein are assumed to be accurate.
Any sketches, plats or drawings included in this report are included to
assist the reader in visualizing the property. We have made no survey of
the property and assume no responsibility in connection with such
matters.
2.
No responsibility is assumed for matters legal in nature. Title is assumed
to be good and marketable and in fee simple unless discussed otherwise
in the report. The property is appraised as free and clear of existing liens,
assessments and encumbrances, except as noted in the attached report.
3.
The appraiser assumes no liability for structural features not visible on
ordinary careful inspection, nor does he assume any responsibility for
subsurface conditions.
4.
Unless otherwise noted herein, it is assumed that there are no
encroachments, zoning, or violations of any regulations affecting the
subject property.
5.
Any proposed improvements are assumed to have been completed unless
stipulated otherwise in the report; any construction is assumed to
conform with the building plans and/or improvements descriptions
included in the report.
6.
The appraiser assumes that the reader or user of this report has been
provided with copies of available building plans and all leases and
amendments, if any, encumbering the subject property.
7.
The property is assumed to be under competent and aggressive
management.
8.
Certain infonnation used in the appraisal was provided by sources which
are considered reliable but cannot be guaranteed.
9.
The value estimate reported herein applies to the entire property, and any
proration or di vision of the total into fractional interests will invalidate
Page 33
the value estimate, unless such proration or division of interests is set
forth in the report.
10.
The division of the land and improvements values estimated herein is
applicable only under the program of utilization shown. These separate
valuations are invalidated by any other application.
11.
We are not required to give testimony or attendance in court by reason of
this appraisal, with reference to the property in question, unless
arrangements have been previously made therefore.
12.
Neither all nor any part of the contents of this report shall be conveyed to
the public through advertising, public relations, news, sales, or other
media, without the prior written consent and approval of the author; this
pertains particularly to valuation conclusions, the identity of the
appraiser or finn with which he is associated, any reference to the
Appraisal Institute of or to the MAl or RM professional appraisal
designations.
13.
The projections of income and expenses, including the reversion at time
of resale, are not predictions of the future. Rather, they are the best
estimate of current market thinking of what future trends will be. No
warranty of representation is made that these projections will materialize.
The real estate market is constantly fluctuating and changing. It is not
the task of the appraiser to estimate the conditions of a future in tenns of
expectations of growth in rental rates, expenses and supply and demand.
14.
The valuation of tax advantaged investments considered future benefits
from many sources, including tax savings as a result of favorable tax
treatment. While the estimates of tax liabilities are based on the best
infonnation available, no warranty or representation is made that the
projected amounts will be allowed by the Internal Revenue Service.
15.
No subsoil data based upon engineering core borings were furnished to
us. We have assumed there are no subsoil defects present that would
impair development of the land to its maximum pennitted use, or would
render it more or less valuable.
16.
Unless otherwise stated within this report, the existence of hazardous
materials including, but not limited to, toxic waste, asbestos, radon gas
and urea fonnaldehyde foam insulation, which mayor may not be present
on the property, was not recognized by the appraiser. The appraiser has
Page 34
no knowledge of the existence of such materials on or in the property.
The appraiser, however is not qualified to detect such substances. The
conclusions and value estimates herein are predicated on the assumption
that there is no such substance on or in the property that would contribute
to or cause a loss in value. No responsibility is assumed for any such
condition or for the expertise required to discover them. The client is
urged to retain an expert in this field, if desired.
17.
The subject property mayor may not be located in or adjacent to a
wetlands area. The appraiser is not qualified in the area of engineering
pertaining to the determination of wetlands. Therefore, the appraiser is
unable to determine the wetlands status of the subject property. The
appraiser assumes the appropriate permit, if required, can be or has been
obtained from the U.S. Army Corps or Engineers. The appraise also
assumes that the jurisdictional determination study and/or permit
regarding construction in a wetlands area, if required, does not result in
the alteration of the subject property description contained in this
appraisal report.
Page 36
QUALIFICATIONS: DIGHT L. OLLIFF
BUSINESS AFFILIATIONIEXPERJENCE:
President, Dight Olliff and Associates, Inc., a real estate appraisal firm located
at Hilton Head Island, South Carolina. Engaged in real estate valuation since
December, 1980.
FORMAL EDUCATION
Bachelor of Science in Economics, Georgia Southern College, Statesboro,
Georgia - graduated June 1980.
REAL ESTATE APPRAISAL EDUCATION
American Institute of Real Estate Appraisersffhe Appraisal Institute
Course 1A-1:
Real Estate Appraisal Principles, 1984
Course 8-2:
Residential Valuation, 1984
Course SPP:
Standards of Professional Practice, 1984, 1993
Course 1A-2:
Basic Valuation Procedures, 1985
Course 1B-1 :
Capitalization Theory & Techniques, Part A, 1986
Course 1B-2:
Capitalization Theory & Techniques, Part B, 1986
Course 2-1:
Case Studies in Real Estate Valuation, 1987
Course 2-2:
Valuation Analysis & Report Writing, 1987
Course 4:
Litigation Valuation, 1988
Course 520:
Highest and Best Use/ Market Analysis, 1995
Course 430:
Standards of Professional Practice, Part C, 1998
Course 510:
Advanced Income Capitalization, 1999
Page 37
QUALIFICATIONS - DIGHT L. OLLIFF (Continued)
PROFESSIONAL AFFILIATIONS & CERTIFICATIONS
THE APPRAISAL INSTITUTE
Designated MAl by the American Institute of Real Estate Appraisers in
December 1990.
Designated RM by the American Institute of Real Estate Appraisers in January
1988.
Member of Residential Review Panel, 1991 - present (previously member of
Residential Experience Review Committee of the SC Chapter of AIREA, 1988 ­
1990).
Member of MAl Review Panel, 1992 - present.
Member of Region IX Review and Counseling Regional Panel, 1993 - 1997.
Editor of The South Carolina Appraiser, the newsletter of the South Carolina
Chapter of the Appraisal Institute, 1993 - 1994.
STATE OF GEORGIA
Certified Real Estate Appraiser, Certificate No. 1126
STATE OF SOUTH CAROLINA
State Certified General Real Estate Appraiser, Certificate No. CG 164
EMPLOYMENT EXPERIENCE
2/92- Present
7/87- 1/92
5/86- 6/87
1983-1986
1980-1982
Dight Olliff and Associates
Hilton Head Island, SC
Keenan and Associates, Inc.
Hilton Head Island, SC
Southern Appraisal Co.
Albany, GA
Johnston Realty
Statesboro, GA
USDA, Farmers Home Administration
Lyons, GA
Loan Examiner