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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.; Glenborough Realty Trust Inc. |
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Date: |
2004 |
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Size: |
Preview shows 18KB of 152KB total |
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Price: |
$49 |
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ID: |
#274971 |
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REFLECTIONS (GREENSPRING MANOR)
7999 SILVERLEAF DRIVE
INDIANAPOLIS, INDIANA
MARKET VALUE -
FEE SIMPLE ESTATE
AS OF MAY 7, 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 LOGO]
{PAGE}
[AMERICAN APPRAISAL ASSOCIATES LOGO]
9441 LBJ Freeway Suite 114
Dallas, Texas 75243
Telephone: (972) 994-9100
Fax: (972) 994-0516
UNITED STATES INTERNATIONAL
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Seattle
JULY 9, 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: REFLECTIONS (GREENSPRING MANOR)
7999 SILVERLEAF DRIVE
INDIANAPOLIS, MARION COUNTY, INDIANA
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 582 units with a
total of 459,080 square feet of rentable area. The improvements were built in
1972. The improvements are situated on 37.749 acres. Overall, the improvements
are in average condition. As of the date of this appraisal, the subject property
is 61% 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
REFLECTIONS (GREENSPRING MANOR), INDIANAPOLIS, INDIANA
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 May 7, 2003 is:
($25,700,000)
Respectfully submitted,
AMERICAN APPRAISAL ASSOCIATES, INC.
/s/ Kenneth W. Kapecki
----------------------
July 9, 2003 Ken Kapecki, MAI
#053272 Managing Principal, Real Estate Group
State of Indiana, Certified General Appraiser,
#CG49600008
Report By:
John Nolan
{PAGE}
AMERICAN APPRAISAL ASSOCIATES, INC. TABLE OF CONTENTS PAGE 3
REFLECTIONS (GREENSPRING MANOR), INDIANAPOLIS, INDIANA
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
REFLECTIONS (GREENSPRING MANOR), INDIANAPOLIS, INDIANA
EXECUTIVE SUMMARY
PART ONE - PROPERTY DESCRIPTION
PROPERTY NAME: Reflections (Greenspring Manor)
LOCATION: 7999 Silverleaf Drive
Indianapolis, Indiana
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: May 7, 2003
DATE OF REPORT: July 9, 2003
PHYSICAL DESCRIPTION - SITE & IMPROVEMENTS:
{TABLE}
{S} {C}
SITE:
Size: 37.749 acres, or 1,644,346 square feet
Assessor Parcel No.: 000651
Floodplain: Community Panel No. 18097C0039E (January 5, 2001)
Flood Zone X, an area outside the floodplain.
Zoning: D-6II (Low Density Multifamily District)
BUILDING:
No. of Units: 582 Units
Total NRA: 459,080 Square Feet
Average Unit Size: 789 Square Feet
Apartment Density: 15.4 units per acre
Year Built: 1972
{/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}
Eff/1Ba - EA10 450 $ 420 $ 0.93 $ 100,800 $1,209,600
1Br/1Ba - 1A10 770 $ 580 $ 0.75 $ 60,320 $ 723,840
1Br/1Ba - 2A15 950 $ 660 $ 0.69 $ 66,000 $ 792,000
2Br/2Ba - 2A25 1,200 $ 770 $ 0.64 $ 66,220 $ 794,640
2Br/2Ba - 3A25 1,400 $ 880 $ 0.63 $ 45,760 $ 549,120
----- ---------- ---------- ---------- ----------
Total $ 339,100 $4,069,200
========== ==========
{/TABLE}
{TABLE}
{S} {C}
OCCUPANCY: 61%
ECONOMIC LIFE: 45 Years
EFFECTIVE AGE: 15 Years
REMAINING ECONOMIC LIFE: 30 Years
{/TABLE}
{PAGE}
\
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 5
REFLECTIONS (GREENSPRING MANOR), INDIANAPOLIS, INDIANA
SUBJECT PHOTOGRAPHS AND LOCATION MAP:
SUBJECT PHOTOGRAPHS
[PICTURE] [PICTURE]
EXTERIOR - APARTMENT BUILDING EXTERIOR - APARTMENT BUILDING
AREA MAP
[AREA MAP]
{PAGE}
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 6
REFLECTIONS (GREENSPRING MANOR), INDIANAPOLIS, INDIANA
NEIGHBORHOOD MAP
[NEIGHBORHOOD MAP]
{TABLE}
{S} {C}
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.
{/TABLE}
{PAGE}
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 7
REFLECTIONS (GREENSPRING MANOR), INDIANAPOLIS, INDIANA
PART TWO - ECONOMIC INDICATORS
INCOME CAPITALIZATION APPROACH
{TABLE}
{CAPTION}
DIRECT CAPITALIZATION Amount $/Unit
-------------------------------------- ----------- -------
{S} {C} {C} {C}
Potential Rental Income $ 4,069,200 $ 6,992
Effective Gross Income $ 3,904,798 $ 6,709
Operating Expenses $ 1,793,535 $ 3,082 45.9% of EGI
Net Operating Income: $ 2,023,963 $ 3,478
Capitalization Rate 7.75%
DIRECT CAPITALIZATION VALUE $25,300,000 * $43,471 / UNIT
DISCOUNTED CASH FLOW ANALYSIS:
Holding Period 10 years
2002 Economic Vacancy 61%
Stabilized Vacancy & Collection Loss: 7%
Lease-up / Stabilization Period 18 months
Terminal Capitalization Rate 8.25%
Discount Rate 10.50%
Selling Costs 2.00%
Growth Rates:
Income 3.00%
Expenses: 3.00%
DISCOUNTED CASH FLOW VALUE $25,600,000 * $43,986 / UNIT
RECONCILED INCOME CAPITALIZATION VALUE $25,600,000 $43,986 / UNIT
{/TABLE}
SALES COMPARISON APPROACH
{TABLE}
{S} {C} {C}
PRICE PER UNIT:
Range of Sales $/Unit (Unadjusted) $34,268 to $61,397
Range of Sales $/Unit (Adjusted) $41,122 to $48,678
VALUE INDICATION - PRICE PER UNIT $ 26,500,000 * $45,533 / UNIT
EGIM ANALYSIS
Range of EGIMs from Improved Sales 5.31 to 7.04
Selected EGIM for Subject 6.25
Subject's Projected EGI $ 3,904,798
EGIM ANALYSIS CONCLUSION $ 23,600,000 * $40,550 / UNIT
NOI PER UNIT ANALYSIS CONCLUSION $ 26,000,000 * $44,674 / UNIT
RECONCILED SALES COMPARISON VALUE $ 25,800,000 $44,330 / 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
REFLECTIONS (GREENSPRING MANOR), INDIANAPOLIS, INDIANA
PART THREE - SUMMARY OF VALUE CONCLUSIONS
{TABLE}
{S} {C} {C}
SALES COMPARISON APPROACH:
Price Per Unit $26,500,000
NOI Per Unit $26,000,000
EGIM Multiplier $23,600,000
INDICATED VALUE BY SALES COMPARISON $25,800,000 $44,330 / UNIT
INCOME APPROACH:
Direct Capitalization Method: $25,300,000
Discounted Cash Flow Method: $25,600,000
INDICATED VALUE BY THE INCOME APPROACH $25,600,000 $43,986 / UNIT
RECONCILED OVERALL VALUE CONCLUSION: $25,700,000 $44,158 / UNIT
{/TABLE}
{PAGE}
AMERICAN APPRAISAL ASSOCIATES, INC. INTRODUCTION PAGE 9
REFLECTIONS (GREENSPRING MANOR), INDIANAPOLIS, INDIANA
INTRODUCTION
IDENTIFICATION OF THE SUBJECT
The subject property is located at 7999 Silverleaf Drive, Indianapolis, Marion
County, Indiana. Indianapolis identifies it as 000651.
SCOPE OF THE ASSIGNMENT
The property, neighborhood, and comparables were inspected by John Nolan on May
7, 2003. Ken Kapecki, MAI has not made a personal inspection of the subject
property. John Nolan performed the research, valuation analysis and wrote the
report. Ken Kapecki, MAI reviewed the report and concurs with the value. Ken
Kapecki, MAI and John Nolan have extensive experience in appraising similar
properties and meet the USPAP competency provision.
The scope of this investigation comprises the inspection of the property and the
collection, verification, and analysis of general and specific data pertinent to
the subject property. We have researched current improved sales and leases of
similar properties, analyzing them as to their comparability, and adjusting them
accordingly. We completed the Sales Comparison and Income Capitalization
Approaches to value. From these approaches to value, a concluded overall value
was made.
DATE OF VALUE AND REPORT
This appraisal was made to express the opinion of value as of May 7, 2003. The
date of the report is July 9, 2003.
PURPOSE AND USE OF APPRAISAL
The purpose of the appraisal is to estimate the market value of the fee simple
interest in the subject property. It is understood that the appraisal is
intended to assist the clients in litigation settlement proceedings. The
appraisal was not based on a requested minimum valuation, a specific valuation,
or the approval of a loan.
PROPERTY RIGHTS APPRAISED
We have appraised the Fee Simple Estate in the subject property (as applied in
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