|
|
|
|
Document Preview Market Value - Fee Simple Estate |
||||
|
|
||||
|
Click "Add to Cart" button to purchase document. |
||||
|
|
||||
|
Title: |
Market Value - Fee Simple Estate |
|||
|
Entities: |
Aimco Properties, LP; American Appraisal Associates, Inc.; Apartment Investment & Management Co. |
|||
|
Date: |
2004 |
|||
|
Size: |
Preview shows 16KB of 144KB total |
|||
|
Price: |
$49 |
|||
|
ID: |
#274972 |
|||
|
|
||||
|
||||
|
|
||||
|
Start of Preview |
||||
TRAILS
100 TRAILS CIRCLE
NASHVILLE, TENNESSEE
MARKET VALUE -
FEE SIMPLE ESTATE
AS OF MAY 5, 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]
JULY 2, 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: TRAILS
100 TRAILS CIRCLE
NASHVILLE, DAVIDSON COUNTY, TENNESSEE
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 248 units with a
total of 198,560 square feet of rentable area. The improvements were built in
1972. The improvements are situated on 19.16 acres. Overall, the improvements
are in average condition. As of the date of this appraisal, the subject property
is 95% 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
TRAILS, NASHVILLE, TENNESSEE
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 5, 2003 is:
($9,400,000)
Respectfully submitted,
AMERICAN APPRAISAL ASSOCIATES, INC.
/s/ Frank Fehribach
July 2, 2003 Frank Fehribach, MAI
#053272 Managing Principal, Real Estate Group
Tennessee Temporary Practice Permit #00053573
Report By:
Daniel Salcedo
Tennessee Temporary Practice Permit #00053558
{PAGE}
AMERICAN APPRAISAL ASSOCIATES, INC. TABLE OF CONTENTS PAGE 3
TRAILS, NASHVILLE, TENNESSEE
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............................................ 37
{/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
TRAILS, NASHVILLE, TENNESSEE
EXECUTIVE SUMMARY
PART ONE - PROPERTY DESCRIPTION
PROPERTY NAME: Trails
LOCATION: 100 Trails Circle
Nashville, Tennessee
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 5, 2003
DATE OF REPORT: July 2, 2003
PHYSICAL DESCRIPTION - SITE & IMPROVEMENTS:
SITE:
Size: 19.16 acres, or 834,610 square feet
Assessor Parcel No.: 109-000-196
Floodplain: Community Panel No. 47037C0308F (April 20, 2001)
Flood Zone X, an area outside the floodplain.
Zoning: RM-15 (Medium to High Density Apartment
District)
BUILDING:
No. of Units: 248 Units
Total NRA: 198,560 Square Feet
Average Unit Size: 801 Square Feet
Apartment Density: 12.9 units per acre
Year Built: 1972
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}
1Br/1Ba-1A10 521 $500 $0.96 $ 12,000 $ 144,000
1Br/1Ba-1B10 631 $530 $0.84 $ 33,920 $ 407,040
1Br/1Ba-1C10 767 $545 $0.71 $ 17,440 $ 209,280
1Br/1Ba-1D10 806 $580 $0.72 $ 18,560 $ 222,720
2Br/1Ba-2A10 933 $640 $0.69 $ 25,600 $ 307,200
2Br/2Ba-2B20 1,036 $665 $0.64 $ 37,240 $ 446,880
------------ ----- ---- ----- -------- ----------
Total $144,760 $1,737,120
===== ======== ==========
{/TABLE}
OCCUPANCY: 95%
ECONOMIC LIFE: 45 Years
{PAGE}
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 5
TRAILS, NASHVILLE, TENNESSEE
EFFECTIVE AGE: 25 Years
REMAINING ECONOMIC LIFE: 20 Years
SUBJECT PHOTOGRAPHS AND LOCATION MAP:
SUBJECT PHOTOGRAPHS
[PICTURE] [PICTURE]
UNIT TYPE FACADE UNIT TYPE
AREA MAP
[MAP]
{PAGE}
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 6
TRAILS, NASHVILLE, TENNESSEE
NEIGHBORHOOD MAP
[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
TRAILS, NASHVILLE, TENNESSEE
PART TWO - ECONOMIC INDICATORS
{TABLE}
{CAPTION}
Amount $/Unit
------ ------
{S} {C} {C} {C}
INCOME CAPITALIZATION APPROACH
DIRECT CAPITALIZATION
Potential Rental Income $1,737,120 $ 7,005
Effective Gross Income $1,759,362 $ 7,094
Operating Expenses $ 822,048 $ 3,315 46.7% of EGI
Net Operating Income: $ 875,314 $ 3,529
Capitalization Rate 9.50%
DIRECT CAPITALIZATION VALUE $9,200,000 * $37,097 / UNIT
DISCOUNTED CASH FLOW ANALYSIS:
Holding Period 10 years
2002 Economic Vacancy 6%
Stabilized Vacancy & Collection Loss: 7%
Lease-up / Stabilization Period N/A
Terminal Capitalization Rate 10.50%
Discount Rate 12.00%
Selling Costs 2.00%
Growth Rates:
Income 3.00%
Expenses: 3.00%
DISCOUNTED CASH FLOW VALUE $9,400,000 * $37,903 / UNIT
RECONCILED INCOME CAPITALIZATION VALUE $9,400,000 $37,903 / UNIT
SALES COMPARISON APPROACH
PRICE PER UNIT:
Range of Sales $/Unit (Unadjusted) $17,808 to $82,471
Range of Sales $/Unit (Adjusted) $36,507 to $41,236
VALUE INDICATION - PRICE PER UNIT $9,500,000 * $38,306 / UNIT
EGIM ANALYSIS
Range of EGIMs from Improved Sales 4.64 to 6.66
Selected EGIM for Subject 5.40
Subject's Projected EGI $ 1,759,362
EGIM ANALYSIS CONCLUSION $ 9,500,000 * $38,306 / UNIT
NOI PER UNIT ANALYSIS CONCLUSION $ 9,400,000 * $37,903 / UNIT
RECONCILED SALES COMPARISON VALUE $ 9,500,000 $38,306 / 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
TRAILS, NASHVILLE, TENNESSEE
PART THREE - SUMMARY OF VALUE CONCLUSIONS
{TABLE}
{S} {C} {C}
SALES COMPARISON APPROACH:
Price Per Unit $9,500,000
NOI Per Unit $9,400,000
EGIM Multiplier $9,500,000
INDICATED VALUE BY SALES COMPARISON $9,500,000 $38,306 / UNIT
INCOME APPROACH:
Direct Capitalization Method: $9,200,000
Discounted Cash Flow Method: $9,400,000
INDICATED VALUE BY THE INCOME APPROACH $9,400,000 $37,903 / UNIT
RECONCILED OVERALL VALUE CONCLUSION: $9,400,000 $37,903 / UNIT
{/TABLE}
{PAGE}
AMERICAN APPRAISAL ASSOCIATES, INC. INTRODUCTION PAGE 9
TRAILS, NASHVILLE, TENNESSEE
INTRODUCTION
IDENTIFICATION OF THE SUBJECT
The subject property is located at 100 Trails Circle, Nashville, Davidson
County, Tennessee. Nashville identifies it as 109-000-196.
SCOPE OF THE ASSIGNMENT
The property, neighborhood, and comparables were inspected by Daniel Salcedo on
May 5, 2003. Frank Fehribach, MAI has not made a personal inspection of the
subject property. Daniel Salcedo performed the research, valuation analysis and
wrote the report. Frank Fehribach, MAI reviewed the report and concurs with the
value. Both, Frank Fehribach, MAI and Daniel Salcedo 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 5, 2003. The
date of the report is July 2, 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
|
End of Preview |
Home Intelligence Services Subscriptions News About Us