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Title: |
Market Value - Fee Simple Estate |
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Entities: |
Aimco Properties, LP; American Appraisal Associates, Inc.; Apartment Investment & Management Co. |
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Date: |
2004 |
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Size: |
Preview shows 13KB of 144KB total |
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Price: |
$49 |
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ID: |
#274970 |
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BIG WALNUT
5280 GATEHOUSE DRIVE
COLUMBUS, OHIO
MARKET VALUE -
FEE SIMPLE ESTATE
AS OF APRIL 30, 2003
PREPARED FOR:
APARTMENT INVESTMENT AND MANAGEMENT COMPANY
(AIMCO)
C/O LINER YANKELEVITZ SUNSHINE & REGENSTREIF LLP
&
LIEFF CABRASER HEIMANN & BERNSTEIN
ON BEHALF OF NUANES, ET. AL.
[AMERICAN APPRAISAL ASSOCIATES(R) LOGO]
{PAGE}
[AMERICAN APPRAISAL ASSOCIATES(R) LOGO]
[AMERICAN APPRAISAL ASSOCIATES(R) LETTERHEAD]
JUNE 30, 2003
Apartment Investment and Management
Company ("AIMCO") c/o
Mr. Steven A. Velkei, Esq.
Liner Yankelevitz Sunshine & Regenstreif LLP
1100 Glendon Avenue, 14th Floor
Los Angeles, California 90024-3503
Nuanes, et al.( "Plaintiffs") c/o
Ms. Joy Kruse
Lieff Cabraser Heimann & Bernstein
Embarcadero Center West
275 Battery Street, 30th Floor
San Francisco, California 94111
RE: BIG WALNUT
5280 GATEHOUSE DRIVE
COLUMBUS, FRANKLIN COUNTY, OHIO
In accordance with your authorization, we have completed the appraisal of the
above-referenced property. This complete appraisal is intended to report our
analysis and conclusions in a summary format.
The subject property consists of an apartment project having 251 units with a
total of 303,703 square feet of rentable area. The improvements were built in
1968. The improvements are situated on 19.497 acres. Overall, the improvements
are in average condition. As of the date of this appraisal, the subject property
is 94% occupied.
It is our understanding the appraisal will be used by the clients to assist the
San Mateo Superior Court in the settlement of litigation between the above
mentioned clients. The appraisal is intended to conform to the Uniform Standards
of Professional Appraisal Practice ("USPAP") as promulgated by the Appraisal
Standards Board of the Appraisal Foundation and the Code of Professional Ethics
and Standards of Professional Practice of the Appraisal Institute. The appraisal
is presented in a summary report, and the Departure Provision of USPAP has not
been invoked in this appraisal. It is entirely inappropriate to use this value
conclusion or the report for any purpose other than the one stated.
{PAGE}
AMERICAN APPRAISAL ASSOCIATES, INC. LETTER OF TRANSMITTAL PAGE 2
BIG WALNUT, COLUMBUS, OHIO
The opinions expressed in this appraisal cover letter can only be completely
understood by reading the narrative report, addenda, and other data, which is
attached. The appraisal is subject to the attached general assumptions and
limiting conditions and general service conditions.
As a result of our investigation, it is our opinion that the fee simple market
value of the subject, effective April 30, 2003 is:
($9,800,000)
Respectfully submitted,
AMERICAN APPRAISAL ASSOCIATES, INC.
-s- Brian Johnson
June 30, 2003 Brian Johnson, MAI
#053272 Managing Principal, Real Estate Group
Report By:
Richard Mupo
{PAGE}
AMERICAN APPRAISAL ASSOCIATES, INC. TABLE OF CONTENTS PAGE 3
BIG WALNUT, COLUMBUS, OHIO
TABLE OF CONTENTS
Cover
Letter of Transmittal
Table of Contents
{TABLE}
{S} {C}
APPRAISAL DATA
Executive Summary............................................... 4
Introduction.................................................... 9
Area Analysis................................................... 11
Market Analysis................................................. 14
Site Analysis................................................... 16
Improvement Analysis............................................ 16
Highest and Best Use............................................ 17
VALUATION
Valuation Procedure............................................. 18
Sales Comparison Approach....................................... 20
Income Capitalization Approach.................................. 26
Reconciliation and Conclusion................................... 38
{/TABLE}
ADDENDA
Exhibit A - Photographs of Subject Property
Exhibit B - Summary of Rent Comparables and Photograph of Comparables
Exhibit C - Assumptions and Limiting Conditions
Exhibit D - Certificate of Appraiser
Exhibit E - Qualifications
General Service Conditions
{PAGE}
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 4
BIG WALNUT, COLUMBUS, OHIO
EXECUTIVE SUMMARY
PART ONE - PROPERTY DESCRIPTION
{TABLE}
{S} {C}
PROPERTY NAME: Big Walnut
LOCATION: 5280 Gatehouse Drive
Columbus, Ohio
INTENDED USE OF ASSIGNMENT: Court Settlement
PURPOSE OF APPRAISAL: "As Is" Market Value of the Fee Simple Estate
INTEREST APPRAISED: Fee simple estate
DATE OF VALUE: April 30, 2003
DATE OF REPORT: June 30, 2003
PHYSICAL DESCRIPTION - SITE & IMPROVEMENTS:
SITE:
Size: 19.497 acres, or 849,289 square feet
Assessor Parcel No.: 090-005526-00
Floodplain: Community Panel No. 390180-278G (August 2, 1995)
Flood Zone X, an area outside the floodplain.
Zoning: A2 (Apartment District)
BUILDING:
No. of Units: 251 Units
Total NRA: 303,703 Square Feet
Average Unit Size: 1,210 Square Feet
Apartment Density: 12.9 units per acre
Year Built: 1968
{/TABLE}
UNIT MIX AND MARKET RENT:
GROSS RENTAL INCOME PROJECTION
{TABLE}
{CAPTION}
Market Rent
Square ------------------ Monthly Annual
Unit Type Feet Per Unit Per SF Income Income
------------ ------ -------- ------ --------- ---------
{S} {C} {C} {C} {C} {C}
1B/1B-1A10 694 $ 519 $ 0.75 $ 12,456 $ 149,472
1B/1B-1B10 705 $ 469 $ 0.67 $ 11,256 $ 135,072
1B/1B-1C10 975 $ 549 $ 0.56 $ 11,529 $ 138,348
1B/1.5B-1A15 733 $ 519 $ 0.71 $ 12,456 $ 149,472
2B/1.5B-2A15 1,282 $ 649 $ 0.51 $ 27,258 $ 327,096
2B/1.5B-2B15 1,395 $ 649 $ 0.47 $ 19,470 $ 233,640
2B/1.5B-2C15 1,649 $ 679 $ 0.41 $ 50,246 $ 602,952
2B/2B-2A20 1,195 $ 649 $ 0.54 $ 7,788 $ 93,456
Total $ 152,459 $1,829,508
{/TABLE}
OCCUPANCY: 94%
{PAGE}
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 5
BIG WALNUT, COLUMBUS, OHIO
ECONOMIC LIFE: 45 YEARS
EFFECTIVE AGE: 20 YEARS
REMAINING ECONOMIC LIFE: 25 YEARS
SUBJECT PHOTOGRAPHS AND LOCATION MAP:
SUBJECT PHOTOGRAPHS
[EXTERIOR - ENTRANCE PICTURE] [EXTERIOR - RESIDENTIAL UNITS PICTURE]
AREA MAP
[AREA MAP]
{PAGE}
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 6
BIG WALNUT, COLUMBUS, OHIO
NEIGHBORHOOD MAP
[NEIGHBORHOOD MAP]
HIGHEST AND BEST USE:
As Vacant: Hold for future multi-family development
As Improved: Continuation as its current use
METHOD OF VALUATION: In this instance, the Sales Comparison and Income
Approaches to value were utilized.
{PAGE}
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 7
BIG WALNUT, COLUMBUS, OHIO
PART TWO - ECONOMIC INDICATORS
{TABLE}
{CAPTION}
Amount $/Unit
------ ------
{S} {C} {C} {C}
INCOME CAPITALIZATION APPROACH
DIRECT CAPITALIZATION
Potential Rental Income $1,829,508 $ 7,289
Effective Gross Income $1,808,647 $ 7,206
Operating Expenses $ 780,682 $ 3,110 43.2% of EGI
Net Operating Income: $ 965,215 $ 3,845
Capitalization Rate 10.00%
DIRECT CAPITALIZATION VALUE $9,500,000 * $37,849 / UNIT
DISCOUNTED CASH FLOW ANALYSIS:
Holding Period 10 years
2002 Economic Vacancy 7%
Stabilized Vacancy & Collection Loss: 8%
Lease-up / Stabilization Period N/A
Terminal Capitalization Rate 10.50%
Discount Rate 11.75%
Selling Costs 2.00%
Growth Rates:
Income 3.00%
Expenses: 3.00%
DISCOUNTED CASH FLOW VALUE $9,900,000 * $39,442 / UNIT
RECONCILED INCOME CAPITALIZATION VALUE $9,800,000 $39,044 / UNIT
SALES COMPARISON APPROACH
PRICE PER UNIT:
Range of Sales $/Unit (Unadjusted) $29,377 to $35,814
Range of Sales $/Unit (Adjusted) $34,678 to $43,142
VALUE INDICATION - PRICE PER UNIT $9,600,000 * $38,247 / UNIT
EGIM ANALYSIS
Range of EGIMS from Improved Sales 5.39 to 6.37
Selected EGIM for Subject 5.50
Subject's Projected EGI $1,808,647
EGIM ANALYSIS CONCLUSION $9,800,000 * $39,044 / UNIT
NOI PER UNIT ANALYSIS CONCLUSION $9,600,000 * $38,247 / UNIT
RECONCILED SALES COMPARISON VALUE $9,700,000 $38,645 / UNIT
{/TABLE}
------------------
* Value indications are after adjustments for concessions, deferred maintenance,
excess land and lease-up costs, if any.
{PAGE}
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 8
BIG WALNUT, COLUMBUS, OHIO
PART THREE - SUMMARY OF VALUE CONCLUSIONS
{TABLE}
{S} {C} {C}
SALES COMPARISON APPROACH:
Price Per Unit $9,600,000
NOI Per Unit $9,600,000
EGIM Multiplier $9,800,000
INDICATED VALUE BY SALES COMPARISON $9,700,000 $38,645 / UNIT
INCOME APPROACH:
Direct Capitalization Method: $9,500,000
Discounted Cash Flow Method: $9,900,000
INDICATED VALUE BY THE INCOME APPROACH $9,800,000 $39,044 / UNIT
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