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APPRAISAL OF COMMERCIAL BUILDING 1102 NORTH GREENWOOD AVENUE I I I I I I I I I I I I I I I I I I I Valuation ServiceJ inc.. -0____. Real Estate Appraisers and Consultants eM'd-- ~LJ.<g CC la.s- q~ APPRAISAL OF COMMERCIAL BUILDING 1102 NORTH GREENWOOD AVENUE CLEARW A TER, PINELLAS COUNTY FLORIDA (#6175) FOR MR. MICHAEL HOLMES ASSISTANT DIRECTOR ECONOMIC DEVELOPMENT CITY OF CLEARWATER 112 SOUTH OSCEOLA AVENUE CLEARWATER, FLORIDA 34616 6414 First Avenue North · St. Petersburg, FL 33710 · (813) 345-0721 · FAX (813) 347-6225 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES. INC. TABLE OF CONTENTS Letter of Transmittal ........................................ 1 Certificate of Valuation ...................................... 2 Executive Summary ........................................ 4 Photographs ............................................. - Assumptions and Limiting Conditions .............................. 6 Purpose, Function, and Date of Appraisal .......................... 10 Legal Description ......................................... 12 Survey ................................................ Neighborhood Location, Description, and Trend ...................... 13 Demographic Analysis ...................................... 14 Neighborhood Map ......................................... - Public Service and Utilities ................................... 17 Zoning ............................................... 18 Property Assessment and Taxes ................................ 20 Site Description .......................................... 21 Plat Map ............................................... - Site Plan ............................................... Flood Plain Map- .......................................... Improvement Description .................................... 23 Building Sketch ........................................... - Marketability ........................................... 26 Highest and Best Use ...................................... 28 Valuation Methodology ..................................... 31 Sales Comparison Approach .................................. 32 Improved Sales ......................................... 33 Improved Sales Summary ................................... 45 Improved Sales Map ....................................... - Analysis of Improved Sales .................................. 46 Appraiser's Qualifications .................................... 50 Addenda - Purchase Order I I I I I I I I I I I I I I I I I I I Valuation Service.r inc.. ~ Real Estate Appraisers and Consultants October 11, 1996 Mr. Michael Holmes Assistant Director Economic Development City of Clearwater 112 South Osceola Avenue Clearwater, Florida 34616 Dear Mr. Holmes: Re: Commercial Building 1102 North Greenwood Avenue Clearwater, Pinellas County, Florida As requested, we have made a detailed investigation, analysis, and appraisal of the fee simple interest of the referenced property, legally described later in the report. Included within the attached report, containing 51 pages, are Certificate of Valuation, exhibits, and documented data in support of our value conclusions. The reader is advised to review the assumptions and limiting conditions included in this report. Material collected during this analysis is available for inspection upon request. If you have any questions or comments, please contact us. The opportunity to conduct this assignment is appreciated. Respectfully submitted, VALUATION SERVICES, INC. c. ~--~ I~ C. Richard Tobias, MAl State-Certified General Appraiser #0000705 6414 First Avenue North. St. Petersburg, FL 33710 · (813) 345-0731 · FAX (813) 347-6225 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. CERTIFICATE OF V ALUA TION This is to certify that, upon request for valuation by Michael Holmes, Assistant Director, Economic Development, City of Clearwater, I have personally inspected, collected and analyzed various data, and appraised the fee simple interest of the commercial building located at 1102 North Greenwood Avenue, Clearwater, Pinellas County, Florida. The property is more fully described in the attached report. I certify that, to the best of my 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 my personal, unbiased professional analyses, opinions, and conclusions. 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. 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; nor was the appraisal assignment based on a requested minimum valuation, a specific valuation, or the approval of a loan. My analyses, opinions, and conclusions were developed and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice. I have made a personal inspection of the property that is the subject of this report. No one provided significant professional assistance to the person signing this report. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 2 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. The reported analyses, opinions, and conclusions were developed and this report has been prepared in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. As of the date of this report, I have completed the requirements under the continuing education program of the Appraisal Institute. This certificate is in accordance with the Uniform Standards of Professional Appraisal Practice Standard Rule 2-3 and with the Appraisal Institute's Supplemental Standards of Professional Practice, both effective January 1, 1991, and with Title XI, Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ("FIRREA"). It is also a certification under the Florida Real Estate Appraisal Board. The reader should review the assumptions and limiting conditions included in this report. In my opinion, the fee simple interest of appraised property, a commercial building located at 1102 North Greenwood Avenue, Clearwater, Pinellas County, Florida, had a market value lias is, II as of the appraisal date, October 2, 1996, of FIFTY-FOUR THOUSAND, FIVE HUNDRED DOLLARS ($54,500). C'~/~ C. Richard Tobias, MAl State-Certified General Appraiser #0000705 3 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. Property Identification: Purpose of Appraisal: Function of Appraisal: Property Assessment (1995): Millage Rate (1995): Real Estate Taxes (1995): Zoning: Land Use Plan: Neighborhood: Census Tract: Flood Zone: Site Data: EXECUTIVE SUMMARY Commercial building 1102 North Greenwood Avenue Clearwater, Pinellas County, Florida Estimate market value of the fee simple interest of subject property "as is" as of October 2, 1996 Possible acquisition $49,700 (two parcels) 23.0366 $1,144.91 CNG, North Greenwood Commercial District Commercial General Neighborhood scale commercial district flanking North Greenwood Avenue, a secondary north/- south artery in the northwest section of Clear- water, approximately 0.75 mile north of downtown Clearwater; older one and two-story commercial buildings of single-tenant and multi-tenant design in immediate area; medium-density residential development in the blocks east and west of North Greenwood A venue 262.00 Zone X, non-flood-prone area Level, rectangular, interior site on the west side of North Greenwood A venue, approximately 130 feet south of LaSalle Street; 84' x 92.5' site comprises 4 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. Improvement Data: Highest and Best Use: Estimated Marketing Time: Estimated Exposure Time: Market Value Estimate Via: Cost Approach - Sales Comparison Approach - Income Capitalization Approach - Market Value Conclusion: 7,770 square feet or 0.18 acre, MOL; municipal utilities and services are available High one-story, concrete block and stucco com- mercial building (designed as a theater), built in 1947; ground-floor area comprises 3,629 square feet plus partial second floor of 756 square feet; .. building is in average condition but displays con- siderable functional obsolescence due to its special- ized design and minimal parking As Vacant: Assemblage with surrounding parcels for future neighborhood commercial development As Improved: General-purpose, owner-occupied commercial building or church/fraternal facility 18 months 18 months N/A $54,500 N/A $54,500 5 _.~ " 'f ~_. ~--- ~//- -~ 1m j ~I P ,0 __.c:::,,~~'O ~~------ ,/- , " "'"t"~ '.,~- j'> ~., _....~._._- .- ~~.,. ..~~ ..... ";<~: ;~. }~.:~,:~(-" .. " ~ _ ,~: d' . ..:...' .i~~~.~f;;~:'! _.~_.._~~~-~~::--::-;.;:.::~~~~~:~~~~~~<'~~;.~ ". . FRONT VIEW OF SUBJECT PROPERTY FROM NORTH GREENWOOD AVENUE "'.f' ." ~'-1~ ..... - --.;..- ....,.,.,--"" - [L fJ.'i:..~,; _'" - - .'.",. . ....."... . t '~c~~~~~_~,~.-;r_~_ .~, ~ ..... ".~~.....,... '.~C>' NORTH FACADE OF SUBJECT BUILDING AND PARKING LOT I. ~,::/:..)" "'-.' , ......,~.....,i~.... :;"'V;~"" ' ,,~y;it)lt' .,. .-:::: ..j" '~'.'"i~.'"7"T'~ 'i~;.q'i>) i:l('"^.jt ...~ "'-'" '~~@''''' INTERIOR VIEW OF DANCE FLOOR AND STAGE SNACK BAR ALONG SOUTH SIDE OF BUILDING 1 PARKING LOT NORTH OF SUBJECT BUILDING MACCABEE'S ON EAST SIDE OF NORTH GREENWOOD AVENUE OPPOSITE SUBJECT '.,,- \~ 1 .~ ....~ r .r ill- '" .' H -A'! _.:. ~." ~~... . .... --.^ .'-"' ~~...J'...;:_ NEIGHBORHOOD TO THE SOUTH ~... // ///' // ~---- .-- .--- ....... .-->\ \ \ ~-- " \ \ ---- t1 ;. 11 NEIGHBORHOOD TO THE NORTH I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. ASSUMPTIONS AND LIMITING CONDITIONS 1. The conclusions as to market value contained herein represent the opinion of the undersigned and are not to be construed in any way as a guarantee or warranty, either expressed or implied, that the property described herein will actually sell for the market value contained in this opinion. 2. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 3. No furniture, furnishings, or equipment, unless specifically indicated herein, has been included in my value conclusions. Only the real estate has been considered. 4. The property is appraised free and clear of all encumbrances, unless otherwise noted. 5. No survey of the property was made or caused to be made by the appraiser. It is assumed the legal description closely delineates the property. It was checked with public records for accuracy. Drawings in this report are to assist the reader in visualizing the property and are only an approximation of grounds or building plan. 6. It is assumed that there are no hidden or unapparent conditions of the property's subsoil or structure that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 7. Subsurface rights (minerals, oil, or water) were not considered in this report. 8. Description and condition of physical improvements, if any described herein, are based on visual observation. As no engineering tests were conducted, no liability can be assumed for soundness of structural members. 9. The appraiser has inspected improvements. Unless otherwise noted, subject improvements are assumed to be free of termites, dry rot, wet rot, or other infestation. Inspection by a reputable pest control company is recommended for any existing improvement. 6 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. 10. All value estimates have been made contingent on zoning regulations and land use plans in effect as of the date of appraisal, and based on information provided by governmental authorities and employees. 11. It is assumed that there is full compliance with all applicable federal, state, and local environmental laws and regulations, unless noncompliance is stated, defined, and considered in the appraisal report. 12. It is assumed that all applicable zoning and land use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in the appraisal report. 13. 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 have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 14. No responsibility is assumed by the appraiser for applicability of "concurrency laws" referring to the 1985 amendments to Chapter 163, Florida Statutes. At this time it is unclear what effect, if any, these laws might have on any property in a given county. The reader is cautioned, therefore, to fully investigate the likeli- hood of development moratoriums or other governmental actions with appropriate municipal, county, or state officials. 15. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no en- croachment or trespass unless noted in the report. 16. Appraisal does not constitute an inspection for compliance with local building, fire, or zoning codes. Reader is advised to contact local government offices to ensure compliance with applicable ordinances. 17. This appraisal report covers only the premises herein; and no figures provided, analysis thereof, or any unit values derived therefrom are to be construed as applicable to any other property, however similar they may be. 18. Certain data used in cO"lpiling this report was furnished by the client, his counsel, employees, and/or agent, or from other sources believed reliable. However, no liability or responsibility may be assumed for complete accuracy. 7 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. 19. An effort was made to verify each comparable sale noted in the report. There are times when it is impossible to confirm a sale with the parties involved in the transaction; all sales are confirmed through public records. 20. Consideration for preparation of this appraisal report is payment in full by the client of all charges due the appraiser in connection therewith. Any responsibility by the appraiser for any part of this report is conditioned upon full and timely payment. 21. The appraiser, by reason of this report, is not required to give testimony in court with reference to the property herein, nor obligated to appear before any govern- mental body, board, or agent, unless arrangements have been previously made therefor. 22. Estimates of expenses, particularly as to assessment by the County Property Appraiser and subsequent taxes, are based on historical or typical data. Such estimates are based on assumptions and projections which, as with any prediction, are affected by external forces, many unforeseeable. While all estimates are based on my best knowledge and belief, no responsibility can be assumed that such projections will come true. 23. Responsible ownership and competent property management are assumed. 24. Unless otherwise stated in this report, the existence of radon gas, a naturally occurring element, or hazardous materials, which mayor may not be present on the property, were not observed by the appraiser. The appraiser has no knowl- edge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation, or other potentially hazard- ous materials may affect the value of the property. The value estimate is predi- cated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such condi- tions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. 25. It is my recommendation that the client obtain a qualified engineer, architect, or other ADA expert to inspect the subject, determine the level of ADA compli- ance/non-compliance, and estimate the cost to bring the property into compliance. Any non-conformity could have an effect on the market value conclusion. Unless 8 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. otherwise stated, the value conclusion of this appraisal is based on the assumption the property is in ADA compliance. 26. C. Richard Tobias is a State-Certified General Appraiser performing real estate appraisal services for Valuation Services, Inc., as an independent contractor. 9 I I I I I I I I 'I I I I I I I I I I I VALUATION SERVICES, INC. PURPOSE, FUNCTION, DATE OF APPRAISAL, AND SCOPE: Purpose of this appraisal is to estimate, with the highest degree of accuracy possible, market value "as is" of the fee simple interest of the commercial building located at 1102 North Greenwood A venue, Clearwater, Pinellas County, Florida. Effective date of this appraisal is October 2, 1996. Market value is: "The most probable price which a property should bring in a com- petitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, 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 each acting in what they consider their own best interest; 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 Fee simple estate is: "Absolute ownership unencumbered by any other interest or estate; subject only to limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. "2 1 Title XI, Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ("FlRREA "), [Pub. L. No. 101-73,103 Stat. 183 (1989)],12 U.S.C. 3310,3331-3351, and Section 5(b) of the Bank Holding Company Act, 12 D.S.C. 1844(b); Part 225, Subpart G: Appraisals; Paragraph 225.62(f). 2 Appraisal Institute, The Dictionarv of Real Estate Appraisal, Third Edition, Chicago, I1Iinois 1993,' page 140. 10 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. Function of the appraisal is to serve as a basis for possible acquisition of the property by the City of Clearwater. The scope of the appraisal includes: Inspection of the subject property both interior and exterior Analysis of regional and neighborhood data Description of the property, including zoning, taxes, site, and im- provements with an evaluation of the specialized building design and lack of parking Analysis of highest and best use both as vacant and as improved Analysis of appropriate valuation methodologies; in this case the age, design, location, and excessive depreciation indicated that the cost approach would be meaningless and that the income approach was inapplicable; determination that only the sales comparison approach could provide a reasonable and supportable estimate of market value Research of improved sales of similar properties in Pinellas County which closed between 1992 and the date of valuation, October 2, 1996; sales were drawn from appropriate Pinellas County sub markets utilizing TRW's DISC and OMNI sales service, Vlti-Comp, and Rea1tron; the purpose of the search was to locate representative sale properties not to identify all potential comparables; specific effort was made to find sales of older theaters and former theaters as well as commercial buildings with minimal on-site parking; listings of comparable properties were also considered. Estimation of value using the sales comparison approach only 11 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. LEGAL DESCRIPTION: Subject property is legally described as: Lots 1 and 2, Greenwood Manor, according to the map or plat thereof recorded in Plat Book 21, page 65, Public Records of Pinellas County, Florida. Three- Year HistoI)' of the Property: According to the 1996 Pinellas County Tax Roll, the subject property is owned by Ieraline C. Burt. Ms. Burt acquired Lot 1 and the south 9.7 feet of Lot 2 (theater building) from South- Trust Bank in March 1996 by warranty deed for a cash price of $38,000; the deed was recorded in OR Book 9283, page 1770, Public Records of Pinellas County, Florida. SouthTrust Bank had acquired title to the property from Alfred Bridges in a non-arm's length transation. Ms. Burt acquired the north 32 feet of Lot 2 (parking lot) April 24, 1996, by tax certificate for $1,760.00. The property was previously owned by Raybon R. Curtis and Alvin G. Curtis, Ir. 12 I I I I I I I I I I I I I I I I I I I SEe /0 TWP. 2' /S S. RGE.___ , i i ~ ~ .5.q L {..e: Sr: " Iv flP .... " '" " ~ "'- ~ ~ .3 .{" )0' ~ I~ ~ \' 7,." "c; /./'1 .. . ., '1I1:';L;\:;'~":""~F ,Gt : '~-'f>.' r.. : .,.1 1? 0 ~. .. ';;'~1";'> ~.l.:'. '. , . . ( .' '. !J l . r., r ..' ~ ',. It! ~ I~ ~' ct 8 o,s z. -9'//0 'V . Z. ~:-r l!J.ey 0.: Z.,,' -' C.J.3..c d'l.2- ,~.s-' ~. ~ IOUNDARY SURVEY" El:-'END: F.I.R.. FOUIO IRON ROO: F.C.I.R.- FOUND CAPPED IRON ROO: S.C.I.R.- SET CAPPED IRON ROO; F.I.P._ FOUI~D IRON PIPE: F.C.l.p.- Fet'"' CAPPED IRON PIPE: F.N.D.- FOlN) NAIL eo DISK; S.N.D.- SET NAIL e. DISK: F.e.H.- FOU'lD, CONCRETE HONLt1EI'lT, P.R.li." PEIl: lA"-"tIT REFERENCE Hoot.t1ENT; P.C.P.- PERHA/oENT CONTROL POINT: P.r.. POINT OF INTERSECTION; R I W _ RIGHT OF WAY: ELEV,"ELEVATlON; C.B.S.- CONCRETE BLOCK STRUCTrnE; CONC.cCONCRETE; ASPH.- ASPHALT; PVHT.- PAVEI'-tENT; COV."COVEr~EO; D." DEED; SEC.- SECTION: TWP.. TOWNSHIP: RGE,- RANGE; P._ PLAT: M.- MEASlJ;'eO; t:SMT. ,. EASEHENT: R.= RADlln; A.- ARC; C.- CHORD; C.B.- CHORD BEARING: STY., STORY; C.L.F. _ CHAIN LN( FENCE; W.F. _ WOOD fENCE; ~ P7;Jeoy ~AR SURVEY OF r.O'T' 1 ;:!nn thp SOUTH 9.7 FT. OF LOT 2 GREENWOOD MANOR S RECORED IN PLAT BOOK ~ I . PAGE ":>, OF THE P~L1C RECORDS OF PINELLAS COUNTY. FLORIDA. I, WILLlAJol C" KEATIN<;. TilE SLfWEVOR IN ReSPONSIBLE CHARGE CERTIFV THAT Tile SURvev RePRESeNTED HEReON AS HI!I!TlNG TIlE HINIHLt1 TI!CllHltAL STANDARDS SI'T "C'<1TH "V THP ,.LORIOA 1I0ARD Of' LAND SURVI!YORS, I'\.JR!lVNH TO IlI!CTOIN 472.0n 0,. THI! "LOAIOA IlTAT'JTPS All ......<:101.110 IN 'HAI'TI!R 61017-6 DErT. Of' rqOf"1! !IIDNN.. RI!O~TION. NO V 10 ~LI!!IS Sl!AL D WITH AN Hila UA v . S ELEVATION STATEHe~IT: THIS IS TO CEnnf"V THAT WI! HAV!! OBTAINED ELEVATIONS SHOWN HEREON Of' THI! ABove DeSCRIIIED lAND. THI!se I!LI!\lATIONS SHOWN HEReON AIlE IIASEO .)N THe /4AT10NAI.. VERTICAL DATLt1, 1929, BI!NCHI1AAK -"""'ED II'" THe ENGItE.ERING )(PT. a rr\l ...IT..., C"I _._.. ..... .............. .... ocoP'nIIGHT ,.,. ( Survey) I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. NEIGHBORHOOD LOCATION, DESCRIPTION, AND TREND: The subject property is located on the west side of North Greenwood A venue, approxi- mately 130 feet south of LaSalle Street in the northwest section of the City of Clearwater. The property is further located in a neighborhood-scale commercial district which flanks North Greenwood A venue between Palmetto Street and Marshall Street. This neighbor- hood commercial district lies just north of Jack Russell Stadium, the spring training home of the Philadelphia Phillies. South of Jack Russell Stadium is an established, light- industrial district which consists of warehouses, service firms, and small assembly and manufacturing companies. The latest traffic count indicates 2,520 cars per day on North Greenwood Avenue, approximately 1/4 mile north of the subject property. Neil:hborhood Boundaries: North: South: East: West: Douglas Avenue, 0.3 mile Drew Street, 0.6 mile Betty Lane, 0.5 mile North Myrtle Avenue, 0.25 mile Demographics: Referring to the accompanying demographic analysis chart, we see that the subject neighborhood is roughly defined by Census Tract 262.00. This area is in a declining population trend, having decreased approximately 15% during the 1980's. During the same decade, Pinellas County grew by 16.9%. The subject neighborhood, however, in 1990, with a population of 2,370, reflects a medium to high density of 5,043 persons per square mile. This is well above the county density of 3,040 per square mile. Within the subject neighborhood there are 864 households, again revealing a declining trend of approximately 16% during the 1980's. Household size remained relatively constant, however, at 2.7 persons per household, roughly 20% above the Pinellas County figures. Correlating with the larger household size is the median age of the subject neighborhood (31.8 years), well below the county median age of 42.1 years. There is a substantial 13 I I I :DEM5171 I I I I I I I I I I I I I I I I DEMOGRAPHIC ANALYSIS NORTHWEST CLEARWATER PINELLAS COUNTY. FL STUDY AREA: POPULATIONl1980J POPULATION(1990J GROWTH RATE(1980-19901 PERSONS PER SQ MILE(1990J HOUSEHOLDS I 1980J HOUSEHOLDS I 1990J GROWTH RATE11980-19901 HOUSEHOLD SIZEl1980J HOUSEHOLD SIZE(1990J MEDIAN AGE(1980) MEDIAN AGEl19901 PERCENT 65 YRS+11980J PERCENT 65 YRS+119901 MEDIAN HSHLD INCOMEI19901 MEDIAN SF DWLG PRICEl19901 MEDIAN MONTHLY RENTI1990J TOTAL OCCUPIED UNITSI1990J OWNER OCCUPIED UNITSl1990J PERCENT OWNER OCCUP UNITS AVG OWNER OCCUP UNIT PRICE % UNITS $0 TO $50000 $50000 TO $74999 $75000 TO $99999 $100000 TO $149999 $150000 AND ABOVE CT 262.00 2793 2370 -15.15% 5043 1029 864 -16.03% 2.71 2.74 N/A 31. 8 N/A 14.50% $12716 $39000 $254 864 299 34.61% $42458 65.55% 18.06% 3.01% 1.34% .33% 14 COUNTY 728531 851659 16.90% 3040 319527 380635 19.12% 2.28 2.24 45.8 42.1 27.84% 26.00% $26296 $73800 $39.3 380635 263388 69.20% $83001 17.40% 34.30% 21.60% 14.60% 12.20% CENSUS TRACT AS PERCENTAGE OF COUNTY FIGURE . 38~~ .28% 165.89% ..32% ..23% 119.05% 122.60% N/A 75.53% N/A 55.77% 48.36% 52.85% 64.63% ,,~o,.. .....:......;"'0 .11% 50.01% 51.15% I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. population of young adults and minor children within the neighborhood. Conversely, only 14.5 % of the neighborhood population is of retirement age, which is just slightly more than half the retiree representation in Pinellas County's population figures. The subject neighborhood is a relatively low income area; median household income in 1990 was approximately one-half that of Pinellas County as a whole. The lower income nature of the neighborhood is also reflected in the median single-family dwelling price, $39,000 versus $73,800 for Pinellas County. Also single-family home rents are only approximately two-thirds that of the county rate. Home ownership in the subject neighborhood is at 50 % of the rate found in Pinellas County as a whole. There are 299 owner-occupied homes in the neighborhood and 565 rented units. Of the 299 owner-occupied homes in the neighborhood, the average price is $42,458 (per 1990 u.s. Census), again approximately one-half the average home price for Pinellas County as a whole. The breakdown of home prices in the area is heavily skewed toward the lower price ranges where two-thirds of the units are valued below $50,000. Further analysis of Rea1tron data indicates 1996 single-family home prices clustered in the $60,000 to $100,000 bracket in the southeast section of the neighborhood near Clearwater Golf Course. Home sales north of Jack Russell Stadium and west of North Betty Lane were clustered in the $25,000 to $50,000 price bracket. Supporting Uses: The 864 households within the subject neighborhood provide a certain market demand for neighborhood-scale goods and services. Approximately one block south of the subject is a large, two-story apartment complex. Additional demand for retail and business services is generated by the light-industrial district which lies in the blocks south of Jack Russell Stadium. There is also some seasonal demand created by Jack Russell Stadium itself (February and March spring training season). The commercial zoning along North Greenwood A venue and the medium to high-density resident population in the area resulted in the development of several one and two-story commercial buildings. These buildings, most of which were constructed in the 1950's and 1960's, consist of small to medium-size single and multi-tenant facilities with a strong emphasis on the service industry. For example, immediately south of the subject property is a two-tenant retail building which houses a funeral home and storefront church. On the east side of North Greenwood Avenue opposite the subject is the recently renovated Maccabee's Restaurant. 15 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. At the northeast comer of North Greenwood and Palm Bluff Avenue is a small, older convenience store. Another neighborhood store is located on the west side of North Greenwood Avenue a short distance north of the subject property. Immediately north of the subject property is an asphalt-paved parking lot accessed from North Greenwood A venue with a capacity of approximately 24 cars. This entire parking lot appears to have supported the subject property at some point in its history, but the north half of the lot is now under separate ownership. The subject building, therefore, is supported by the south half of this parking lot, providing parking for approximately 12 cars. Some of the commercial buildings in the neighborhood have been well maintained and appear to house successful local businesses. Most noteworthy are the Larkins Funeral Home, the convenience stores, and Maccabee's Restaurant. Several other commercial buildings, however, have been neglected; and some are vacant or abandoned. Commer- cial occupancy in the neighborhood is in the range of 75% to 80% with rents ranging from $1.00 to $5.00 per square foot. Based on these two criteria, the North Greenwood Business District ranks relatively low in the larger Clearwater commercial market. Concl usion: The subject neighborhood consists of a medium to high-density resident population which has been trending downward over the last 15 years in population and number of house- holds. The retail stores and service businesses located along North Greenwood A venue reveal a mixture of small and medium-size facilities, 30 to 45 years of age, with physical conditions ranging from poor to above average. The commercial buildings reveal lower occupancy rates and lower rents than most sub markets within Clearwater. The declining population base and relatively low traffic volume on North Greenwood Avenue appear to have contributed to these conditions. There is, however, increasing evidence of new construction in the residential sections of the neighborhood and within the business corridor itself. The North Greenwood Business District appears to have begun the upward trend observed in comparable Pinellas County neighborhoods after extended periods of neglect and decline. 16 I I I I I I I I I I I I I I I I I I I , \~ : _.'~ zj .-I' Z :> , ~ :=lI ..iQU~, lC. U oW lJ) UJ c ""5=' - ,.l>oINT DR "L'tlM~ U '~.. . ~ :: rtf z :~~ ~ ~!3 \..1~L'~:'.':]ENTLE~~ ~ ~ ~ c ~ ...., C ulIWAIERI __~ NOKClMIS f\..... ~ q..~ ~ ~ I Ii , I ....JO ::.: iiiO~,- - . ST: I ~ ~ ~ :i! ~I;; ~ .-:;m;T~' <--"-'-" e la-o -=Ja:;- c RO" N . IROOUOIS 11II,.,t ::II ~ '~LN J. 0 A ,..VN L IGHLANO ~ -' ~ I..: P INeES AMZJ 0 I ~ANOYa:: LN _ DYLN SQUARE a:: -' 0 c P EA;~N O;G -:./t-t~,I.;-4 ~.q I ~ : MARY L RD. EW~ ~ SANO'rtSJ: ~ ~ -' ii <;T MOH~"",I -- ~>-,... ~ A v~ ~ f;c TERRA"'E RD 19 :n;s ld: _'->I, '.'-i PR S J ';),~~ ~ 10. <9 V v~8 ~ 1..1 wGRO~ ROSt;;MCNT ~ ___ ...~URS "p,,~~ o~:::'" q.. ' -Ok-," 2 FAIFMONT > ~CIACT L1NWOOQ~~~~ ,'It;;' ~ '" ~ AI MO loi..'"' CLAI E DR ;.. ST I.. ~ ~ _ ~ :>, ...... 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R()(;E 5 q nil IF ~ l ,z..J -J TUR ~ER - 51 GLEN ([)AKS ;~t:~~ "'II c:;- g ~ ~ ~... ~ ~ ~~ ~~~~r~ PINI ~T e ~t!L ~3(fD~~ 5 :TRN R T:: ~ ~ 5 ~ ~ ~ ~ ~ DRlJlD~ t;; RD. ~ 800 ..J II ~\;- .1~ CL ARW~ TER ~ ~~ :3aoo ~ ~ >-cJASMIN W'f I W JASMI,FW 25E-~~E~ ....,,~D ~ JASMI E "",v ICq~MI\o UNITY HOSPITA ... ~ ~r- i tXl UAc::.N ,I IA nb Lt:l MAGN IliA n;;-(."~'" M~NOLiA Ji ~ nR 3 ~ ~ ~ a: ~F:J SM NE N~ 1000 ~.ar.N{,\II.a ~~~ .. ~! -- > ~ c.; w I ~ ~ :n 0 0&;~, NC: IA Z ~ LOJ!JC; PATH ~. ~ JS '!! . I a: LOTU PAT < SUNSHINE :> OTUS a: ~ >I~ .,-,. DR :> 00( r-IFI~ <-=..; ~II-ATl-1 0 ..... aUD'FIr....c::T:-T. H c5." I- > .,..,. MALL _ > ~ ~... ~ u ~ I :> ~~ ~ MeAl ~S ON . G~l_ ! i ~ - - - ~ _~ ~ S:2 T29S ~ _:;;;-;1 "'''cl''<:T VI _r.~'" ~ c:; ~ s~l\JR ~ ~ -;;:. - o5.fA.q ," r11c::rr'l rH,I;I;~; ... L ZA TU ....LA ~~"'" o:r ~ 14.C:::;: ~~TE"GEN,~Si ::TOWt\i~,,,, T .A "'~~ Z ~_L ,...,;::;cLIMIT"C ..... ~ c...... -.. -. Z 1ol1lT II<O:;T....J ~ ~ ~ ~.ISC. III INnl~ :CTI~ ~----i ~ CEM), TIJC;K~"II' ST -~\:~~ 5'~ ~:J: ... 0.. 0 Q QITAWA.iB.al CQRB~"'" ~ AI,,' '7~' ~\,j II;W".lu RD 1300 ~ :; ~ ~ lAK~VIEW ~ i:1rIf ~ ~08INSON TERNA TIVE SCH ( Neighborhood Map J I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. PUBLIC SERVICES AND UTILITIES: The following public services and utilities are available to subject site: Electricity Florida Power Corporation Telephone GTE Florida Water and Sewer City of Clearwater Police Protection City of Clearwater Fire Protection City of Clearwater Public Transportation PST A (bus service) Emergency Medical Service Pinellas County Public services and utilities for subject property and its neighborhood appear to be adequate and supportive of most residential and commercial uses in the area. 17 I I I I I I' I I I I I I I I I I I I I VALUATION SERVICES, INC. ZONING: District: Purpose: Permitted Uses: Conditional Uses: Maximum Density: Front Setback: Setback from Other Streets: CNG, North Greenwood Commercial District To stimulate reinvestment and revitalization of an intercity commercial district; preferred uses are neighborhood-oriented retail, service, and profes- sional uses -- Indoor retail sales -- Personal services -- Restauran ts --Indoor commercial recreation/entertainment -- Business/professional offices --Attached dwellings --Non-profit, social, or community services --Funeral homes --Multi-family dwellings --Three-family dwellings -- Two- famil y dwellings --Detached single-family dwellings --Family care -- Business services --Outdoor retail sales --Nightclubs, taverns, and bars --Package alcoholic beverage sales --Child day care -- Veterinary offices --Non-commercial parking --Utility facilities --Restaurants serving alcoholic beverages 15 Dwelling units per acre 30 Feet 10 Feet 18 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. Maximum Building Height: Minimum Open Space: Maximum Floor Area Ratio: Minimum Lot Area: Parking: Comprehensive Land Use Plan Designation: Zoning Conformity: Concurrency: 25 Feet 15% 0.55 5,000 Square feet Retail sales centers less than 25,000 square feet require six spaces per 1,000 square feet gross floor area; theaters and other recreation centers require one space per three customers computed on the basis of maximum serving capacity plus one additional space for every two employees; North Greenwood Business District may reduce the required parking spaces by not more than 60%; parcels less than 5,000 square feet shall be permitted a parking waiver with some conditions Commercial General The subject building was developed in 1947 and, thus, qualifies as a legal non-conforming use by "grandfather. " No impediments to development 19 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES. INC. PROPERTY ASSESSMENT AND TAXES: Property under appraisement is in Tax District CW, City of Clearwater, which had a 1995 millage rate of 23.0366. One mill is equivalent to $1.00 of tax for each $1,000 of assessed value. The property is identified by the Pinellas County Property Appraiser's Office as follows: 1995 1995 Parcel No. Assessed Value Taxes 10-29-15-33498-0000-0010 $44, 100 $1,015.91 10-29-15-33498-0000-0120 5.600 129.00 Totals $49,700 $1,144.91 The Pinellas County Tax Collector reports that the 1995 taxes for the property have been paid. Taxes are due in November, when a 4% discount is allowed; discount decreases by 1 % per month until March, when there is no discount. Taxes become delinquent Apri11, at which time a penalty is imposed. The current assessed value of the property ($49,700) is equivalent to 91 % of our estimate of market value; most commercial and investment properties in Pinellas County carry assessments ranging from 50% to 90% of current market value. 20 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. SITE DESCRIPTION: Physical Location: Land Area: Data Sources: Configuration: Primary Frontage: Secondary Frontage: Current Floor Area Ratio (FAR): Current Land/Building Ratio: Topography/Drainage: Flood Zone Designation: Soil Conditions: Easements: Encroachments: West side of North Greenwood Avenue, approxi- mately 130 feet south of LaSalle Street 7,770 Square feet or 0.18 acre, MOL Plat maps and inspection of premises October 2, 1996; March 1996 survey by William C. Keating Rectangle; interior parcel 84 Feet on the west side of North Greenwood A venue N/A 0.56 1.8: I Level site at surrounding road grade; average drainage for neighborhood Zone X, unshaded; area outside 500-year flood; FEMA Map Panel #125096-00080, August 19, 1991 Typical sandy urban soils; no abnormalities noted None apparent other than typical utility or drain- age easements; none revealed on survey Canopy at front of building over main entrance appears to encroach slightly within North Green- wood Avenue right-of-way; other possible minor site improvement encroachments such as chain link fence at rear of site 21 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. Deed Restrictions, Covenants, etc.: Visibility from Street: Access: Conclusion: None known Good visibility from both north and south-bound lanes of North Greenwood A venue Site fronts of North Greenwood A venue with vehicular access to the parking lot Site is well located in the North Greenwood Commercial District, but interior position re- duces visibility and access; most significant nega- tive aspect is the small parcel size (7 I 770 square feet) which significantly reduces the potential building size, particularly when allowing for on- site parking 22 I I I I I I I I I I I I I I I I I I I -,., 6 ..... ~ ... 5 123 II ~ ~ .. MIlS> 3 ,.., w ~ 2 Ii W > <{ 7 G ~ 45 ill mMAN .. 12 II ~ ~ --+ J. : I- ...J Ii ~ W U) Ii g 3 a:: 9 B 7 Ii ISO ;u 50 :I .. .. :I 50 50 so 341!!~3! 2 ~! . ~ 20 19 18 100 o IL. 40 "'1.5 2 , ~ I Z ;:. - -., W !!! > 3 <{ b 4 , '" STREET · 6lL5 w ~ > ;: 3 4 ,. ... I'!.". ESIlIIl. Or.gntel. .nc IS)COPYRIGHT lire ... II '011 I ~ 16 Ii I I... :0 50 50 16 .. .. 50 ! 17 r!! ~ l! so Ii IS 73 _ 56 0- 5 ;:: ~:'4:213 ! ~;9;~ 6 III 15 Ii I~ Ii 2 3 Ii 2 - so so IG 10 2 3 15 14 50 so LA SALLE sa ... ..L..... ;=6~8 -0: ;; I 5 50 23 2~ sa sa IG SO 13 ~ 5 359 :-1 _ =-..J sa 100 100 ~ 13 SO lil sa 25 ~ so ; ( Plat Map ) sa 2 ~ 2 II :il so 6 II 7 I I 10' I 100' 50 SO 5 6 c 50 12 II 2 10 o .. !! 50 4S.1lI :;:1 :: ... so o '0 303 0~ ! i 26 27 28 ;jI l! so STREET so so 6 5/ 50 51 50 ~ 7 50 6 50 50 '68 46 L..:: B sa sa _ n.. ~_.___ 50 so 5 so 12 7 6 50 110 I 3 L_ I 1 ISO 2 STREET so 100 3 so so II 2 10 5 2 so 50 III 10 7 50 2 100 0.1 4 :II 3 2 :II 0.7 50 02 II Ii W ::J Z 811 ~ <{ 50 8 9 ... lIll 29 SO ~ III 2 :II II "" ... 50 '0~ 7 316 ~ IS!! - I~ I I I , 2 , a I 1 I 100 50 50 leG l! i l-t 2 le 16 15 ; ; "" lID 50 II 40 ~ " PO oj .. ; 12 ; "! 13 j; .., oj 14 ... ; . .. li 15 ,,0$ ill + .. .. .. ii os ~ oct Z <{ > ...J >- U) Z Z w a.. .. .. o le 0 100 - 105 .. .. .. 1& 75 ~ II iii so so '-' ... > .... so 51 METTO ~k6 i~'f7 23/09 '-' ... > ll&.S _ 3 ~ , ... STREET ... 3 I~ 50 .. .. ~4:1 L...: _ :....J 10 .... 33 .... 8 ~:il so so 18 0le lil 6 S 5 ~ - d! n., so 121.' I I B I I 50 13 3 ~ 13 so STREET 9 so 12 50 Ii 5 ~0 SO so .. B l(! "! ~ .. .. Ii 590 so so 9 5 12 .. 7 sa ., I 1 1 , 10 1 9 1 I -S! ... ~ II s W ::J Z W > oct " sa so .. :I ... l! B Ii 9 0B 40 ... 51 .. ~ :! II o o o ;;: z w w a:: (.!) 6 7 B "! ;0 55 S !'i 50 II so le 12 ~ li0s L"-tQ O~., o r.. .... 6 7 II "'" II 1 10 ; !! so 50 JI 20 III lIS ; ;5 zo .. :J.. :: . "! j; .. 3 ~ ------ 6 f4J - I I I ~I 55 t.o:.'... I 110 ... 31 o "'" 10 o 10 110 10 32 0) 10 o ,.., Q 10 o Ii... 10 3 2 50 so STREE r 50 50 \0 :; II ~ I I I I I I I I I I I I I I I I I I I ( Site Plan ) I I , -.J '" ~ A :5PH,4. i- T ~ ?4RKINCr L"i <:) <:l <:l I ~ ~ I ~ I 0" I ! I.l.l Il.l ~ ~ IC / ~Tol( ~ 0 ~ 1 C!3S e lrD 6- J '12.S' ~ /'1: 301 .. A"., Eltlle at.ph.Ct, lnc: '::ICOPYAIG~T "71 I ;1 I I I I II I I I I I I I I I I I I I I STREET (Flood Plain Map) ~ ljll zoJ i ~ x' / ~ II IIJ~_ I .'<..i;: L ~i';' :J;~.:...~'", '~"t,:;..- ').;~-;<.~-:':~"." .Jh . \ --'i;{~,~ " '%< ICESS OSAGE ST IEET~ ST L-J Jb Z( BECKETT ST I STREET ] IBECKETT TANGERINE ENGMAN STREET LASA LLE ZONE X DOUGLAS ""VENUE PALM BLUFF STREET w > <l: ZONE X a:: :J o (Jl ~ ~ z DA_r,.1ETTO i~ f( I LJ, II I r II -::J[ AUI Est.11t Grlpl'llCS. Inc !.OCQPYRIGHT 1975 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. IMPROVEMENT DESCRIPTION: General Description: Data Sources: Year Built: Effective Age: Economic Life: Remaining Economic Life: Building Size (GFA): Ground Floor: Second Floor: Building Length: Building Width: Eave Height: Ceiling Height (seating area): Air Conditioned Area: Floor Plan: Foundation: High, concrete block and stucco, single-story commercial building with partial second story; originally designed as a theater, it has functioned as a restaurant, night club, and currently is a youth recreation center ("Teen Heroes") Pinellas County Property Appraiser's records; inspection of premises October 2, 1996; Ms. Jeraline C. Burt, owner 1947 25 Years 40 Years 15 Years 4,385 Square feet 3,629 Square feet 756 Square feet 84 Feet 43.8 Feet 18 Feet 16 Feet 4,385 Square feet Typical older theater design with small lobby , two restrooms, utility room, and office adjacent to the customer entrance in the east section of the building; large open seating area with raised platform (stage) at west end; kitchen and service bar along south wall; mezzanine seating area and manager's office on second floor Appears to be conventional, reinforced concrete perimeter footings for load-bearing walls 23 1 1 I' 1 1 1 1 1 1 1 1 1 1 I 1 1 1 1 1 VALUATION SERVICES, INC. Structure: Load-bearing concrete block walls with reinforced corners and pilasters Exterior Walls: 8-Inch concrete block with stucco Roof: Clear-span truss system with wood deck and built-up composition roofing Windows: Single-hung aluminum units with security bars in second-floor office only Doors: Two standard metal customer entrances; one metal security door at northwest corner of build- Ing Floors: Standard reinforced concrete slab on grade (first floor) with gradual pitch in theater seating area; second floor appears to be conventional wood frame assembly; floor finishes include carpet and vinyl tile Plumbing: Two small restrooms with total of seven fixtures located in northeast corner of building adjacent to lobby; 30-gallon electric water heater, fiberglass utility tubs, and other plumbing in commercial kitchen Electrical Service: Combination of older fuse type service and newer circuit breaker panel (200 amp); new con- duit wiring installed in 1996 HVAC: Newer central heat and air conditioning unit with short duct delivery system adjacent to the stage in the west section of the building Ceiling: 2' x 4' Acoustical tile panels attached to lower edge of roof in seating/stage area; standard 8- foot high plaster or drywall ceilings in other areas 24 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. Interior Walls: Plaster applied direct to exterior concrete block walls; other interior partitions are wood frame with combination of plaster and drywall finishes Building Condition: Interior exhibits average condition with consider- able remodeling done in 1996; interior and exte- rior repainted; roof leaks repaired; plumbing repaired; kitchen and service bar repaired and upgrades done; damaged ceiling tiles replaced; tile floor replaced Site Improvements: Parking Lot: 1,664-Square-foot, asphalt-paved lot north of building; capacity approximately 12 cars Sidewalk: Municipal sidewalk at front of property Fencing: Six-foot high chain link fence with barbed wire at perimeter of rear lot 25 FIRST FLOOR ?L. A i F"R."'" () PEN :5 cATI Nc.. A ReA mrrr I< I j'C' ,",EN o PE-1J TO $EA-IIN6- A REA Be L.OW BAL.CtJN'( SECOND FLOOR C Bulding Sketch] ~T'''i!4c1- W I N\ IrL -' .....:.--..l I , ~ <<. ::>- ~ 1!1 .... \lJ Q ..J OF~'c~1 '-[iJ II R otJ1= c:!l- oF~/Cf; Roo~ I > Q \J ~ , I /I :: 2.0 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. MARKET ABILITY: Generally, the market for income-producing properties has declined significantly from its peak: in 1986, largely influenced by the passage of the Tax Reform Act of 1986 and credit tightening by lenders following over-building. One market segment is comprised of users, those entities which require a facility for their own use and may elect to acquire a multi-tenant facility, providing both an investment opportunity and potential expansion capabilities. This group is still fairly active, as those financially able are looking for distress-priced opportunities. Unfortunately, the availability of very low priced properties and lack of financing have negatively impacted value of all investment properties. The subject property, an older commercial building (former theater), has been negatively impacted in general by the soft commercial real estate market conditions. The location of this property in northwest Clearwater reduces its marketability, primarily due to the declining population trend and above average vacancy rate. Also, the highly specialized design of the building and minimal parking further impact marketability. Sales commissions in Pinellas County are negotiable, particularly for properties such as the subject, and typically range from 3% to 7% of the sales price. Most larger brokers are members of a Multiple Listing Service, providing area-wide exposure. Mortgage financing would be difficult to obtain from local commercial banks and savings associations due to the type of property. The best credit prospects for purchase of this property would be an established service business or fraternal/religious organization that has a strong relationship with a local lender. Loan demand in 1996 remains relatively soft as the economy has made steady but modest gains. Our survey of area lenders indicates the following probable mortgage terms for the subject property. Loan Type: Interest Rate: Origination Fee: Term: Amortization: Loan/Value Ratio: Fixed Rate (3 Years) Prime + 2 Points 1 Point 3 Years 15 Years 60% 26 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. Exposure Time: Exposure time may be defined as follows: "The estimated length of time the property interest being appraised would have been offered on the market to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospec- tive estimate based upon an analysis of past events assuming a competitive and open market. "3 Exposure time is always presumed to precede the effective date of the appraisal. In this case we have analyzed the various comparable sales as to their exposure time prior to the consummation of a sale. In most cases of distressed properties; i.e., sales following foreclosures, the exposure time was 9 to 12 months. Other sales analyzed were found to have exposure times of 12 to 18 months prior to their closings. For the subject property, assuming consummation of a sale as of the effective date of appraisal, October 2, 1996, we would estimate a reasonable exposure time which would have preceded this sale date of approximately 18 months. Marketing Time: "The reasonable marketing time is an estimate of the amount of time it might take to sell a property interest in real estate at the estimated market value level during the period immediately after the effective date of an appraisal."4 Market conditions have been generally improving since 1993 with relatively little speculative development which might tend to extend marketing times. We would, therefore, estimate a reasonable marketing time for the subject property, following the date of appraisal, to be approximately 18 months. 3 Statement on Appraisal Standards No.6 (SMT -6), Appraisal Standards Board of The Appraisal Foundation, 1992. 4 Advisory Opinion 0-7, Appraisal Standards Board of The Appraisal Foundation, 1992. 27 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. HIGHEST AND BEST USE: Highest and best use is defined as: "The reasonably probable and legal use of vacant 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. "S These criteria should usually be considered sequentially. It makes no difference that a use is financially feasible if it is physically impossible to construct or if such a use is not legally permitted. Legally Permissible: Private restrictions, zoning, building codes, district controls, and environmental regula- tions are considered because they may preclude many potential uses. The subject property is zoned CNG, North Greenwood Commercial District, with a conforming land use plan of Commercial General. The zoning permits a wide variety of both intensive and non-intensive commercial uses which were enumerated in the zoning discussion. Those uses considered most likely to be developed on the subject site include the following: - Restaurant - Offices - Indoor retail sales - Non-profit social or community services - Funeral home - Business services The development constraints placed upon the property by the zoning code are relatively generous. For example, the front setback is 30 feet and a building may cover 55 % of the site area. Also, in the North Greenwood Commercial District, the required parking coverage may be reduced by up to 60%. Therefore, while the subject site is relatively small, it could conceivably be developed with a building and minimal on-site parking. 5 Appraisal Institute, The Dictionarv of Real Estate Appraisal. Third Edition (Chicago, Illinois, 1993), page 171. 28 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. The existing building is supported by approximately 12 parking spaces in a paved lot to the north. Physically Possible: Size, shape, area, and terrain affect the use to which land may be developed. Parcel size in this case (7, 770 square feet) is the single-most significant physical aspect to be considered in highest and best use. Minimum lot size specified by the zoning code is 5,000 square feet. Because of the relatively small land area, maximum building size is estimated at approximately 3,500 square feet. Appropriately Supported: The subject site is located in the North Greenwood Commercial District, which is flanked by a relatively dense resident population base. While the demographic analysis indicates a downward trend in population, there are, nonetheless, 864 households within the subject neighborhood which provide a certain market demand for neighborhood scale goods and services. Approximately one block south of the subject property is a large, two-story apartment complex. Additional demand for retail and business services is generated by the light-industrial district lying south of Jack Russell Stadium. Immediately south of the subject site is a small, two-unit strip center which is occupied by a funeral home and small storefront church. Convenience food stores and restaurants in the neighborhood appear to be the more successful business ventures in this area. Financially Feasible: Financial feasibility entails the analysis of development costs and current market returns wherein the net income generated by any proposed development would be sufficient to amortize the cost of the improvements and provide an adequate return to the land. Commercial occupancy in the subject neighborhood is in the range of 75 % to 80 %, with rents ranging from $1.00 to $5.00 per square foot. At these levels, development of even a modest commercial property, such as a two-unit strip store, would fail to meet the feasibility test. While it is unlikely, therefore, that any speculative commercial real estate would be developed, there is a possibility of an owner-occupied business. Inspection of 29 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. the neighborhood, however, reveals some evidence of owner-occupied commercial development within the last 5 years. Most commercial buildings in this area were developed in the 1950's and 1960's, but there has been some recent evidence of renova- tion of the original structures. Hiehest and Best Use as Vacant: With little perceived demand for the subject site because of its relatively small size and prevailing market conditions, we would conclude highest and best use as assemblage with surrounding parcels. The subject site has a greater value and more utility as part of a larger tract than it does as a free-standing site. Under this concept of highest and best use, we would also anticipate retention of the property until such time that additional market demand might justify speculative or owner-occupied commercial development. Hiehest and Best Use as Improved: The subject site is improved with a high, one-story, concrete block and stucco commer- cial building originally designed as a theater and built in 1947; ground floor area comprises 3,629 square feet plus a partial second floor of 756 square feet. The building is in average condition but displays considerable functional obsolescence due to its specialized design and lack of parking. The building occupies the south portion of the site and is supported by a 12+ space parking lot adjacent north. The north half of the parking lot, which comprises another 12 parking spaces, is now under separate owner- ship. While the building suffers considerable physical, functional, and external depreciation, there would be no benefit in razing the structure. This site is very small (7,770 square feet), occupies an interior position in the block, and there is very little demand for commercial land in this area. We would conclude, therefore, that highest and best use as improved is served by retention of the existing structure for one of the following uses: Religious/fraternal facility Social service agency Business services Retail sales 30 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES. INC. V ALUA TION METHODOLOGY: Application of the cost approach to the subject property would be meaningless because of the advanced age of the building and the degree of physical depreciation. Another complicating factor is the specialized design of the building which creates a substantial element of functional obsolescence. Finally, the local market conditions indicate external obsolescence and little demand for vacant commercial sites. For these reasons, we have omitted the cost approach to value. The income capitalization approach is normally most useful for properties which are commonly held by investors for their rental income capabilities. The income approach may also be applied to single-tenant buildings or other properties which are normally owner-occupied. However, the physical, functional, and external factors affecting the subject property are such that an investment market is extremely remote. Specifically, the design elements and lack of parking reduce this building to a very marginal market which would, in our opinion, not include investors. For these reasons, the income capitalization approach was excluded. The subject property, as explained above, has a very narrow market. In the highest and best use analysis we concluded most probable uses of the existing building, such as religious/fraternal facilities, social service agencies, and business services. We have researched the Pinellas County market and found several examples of sales of this type of property. We have selected seven of these sales as most representative of the subject property and have employed this data in the application of the sales comparison approach. In our opinion, this methodology is the only reasonable and supportable technique applicable in this estimation of market value of the subject property. 31 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. SALES COMPARISON APPROACH: The sales comparison approach, like the cost approach, is based on the principle of substitution; in other words, value of a property should be no higher than cost to acquire another property offering similar physical or locational attributes. The procedure involves market research, to identify similar properties which have recently sold or are offered for sale, investigation of the sales transactions to insure the validity and determine motivating forces, and comparison of the sold properties to the subject, adjusting prices paid for the various dissimilarities having a discernible effect on value. Adjustments are generally made for such factors as changes in market condition since time of sale, condition and construction of the properties, location, size, land area, income producing capabilities and, if available, terms of sale. This analysis is usually processed on a "unit of comparison" basis. Unit of comparison most commonly employed for improved properties such as the subject is price paid per building square feet, inclusive of land. Salient data regarding each comparable sale follows: 32 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. IMPROVED SALE NO. 1 Location: 1102 North Greenwood Avenue Clearwater, Florida (subject property) Parcel No.: 10-29-15-33498-000-0010 Date of Sale: March 1996 OR Book/Page: 9283/1770 Grantor: SouthTrust Bank of Florida Grantee: Jeraline C. Burt 33 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. Indicated Consideration: Allocated to Land: Allocated to Improvements: $38,000 $15,500 $22,500 Building Size: 3,629 Square feet Price Per Sq. Ft.: $10.47 Including land $ 6.20 Excluding land Land Area: 4,810 Square feet or 0.11 acre, MOL Land to Building Ratio: 1.3: 1 Year Built: 1947 Condition: Fair-poor Financing: Cash to seller terms Cap Rate: N/A Confirmation: Ms. J. Burt (buyer) and Kathi Gilbert, Vice Pres- ident, SouthTrust Bank (seller) Sales History (3 years): Foreclosure sale only; no arm's length transac- tions Comments: Older theater building most recently used as a restaurant/lounge located on small, interior site in North Greenwood Business District, north of the central business district. The building was in general disrepair with some evidence of roof leaks and code violations. Buyer invested approximately $8,000 in renovations and repairs prior to opening the building as a teen recreation center (Teen Heroes). Ms. Burt also acquired the south half of a paved parking lot (12+ cars) north of the building through a tax deed sale for $1,760. 34 VALUATION SERVICES, INC. IMpROVED SALE NO.2 --- ~:- / /// -. r:'i "1" ~ ~ ---'. i r._ -~ '-: .' ;: .I" .- Location: 1139 Eldridge Street Clearwater, Florida Parcel No.: 10-29-15-59796-004-0001 Date of Sale: May 1995 OR Book/Page: 9001/1338 Grantor: Fred M. Judy Grantee: George M. Kostantinidis 35 r:: I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. Indicated Consideration: Allocated to Land: Allocated to Improvements: $150,000 $ 40,000 $110,000 Building Size: 10,000 Square feet Price Per Sq. Ft.: $15.00 Including land $11.00 Excluding land Land Area: 17,050 Square feet or 0.39 acre, MOL Land to Building Ratio: 1.7: 1 Year Built: 1952 Condition: Fair Financing: $120,000 PMM/20 years N/A Cap Rate: Confirmation: John Skicewicz (broker) Sales History (3 years): No arm's length transactions Comments: This sale involves an older light-industrial building located in north Clearwater just south of Jack Russell Stadium. The structure includes an older, high-bay warehouse with metal roof, a newer warehouse (1976), and an older workshop/office. Assessed value is $99,100, equivalent to 66% of 1995 sale price; a non-arm's length sale in September 1994 preceded this transaction. 36 VALUATION SERVICES, INC. IMPROVED SALE NO.3 ~ :~ ! " '-'~,.. . .....--:..... ~ " -,) ""'J r1 "-..-_.-- Location: 1204 Rogers Street Clearwater, Florida Parcel No.: 15-29-15-38574-018-0290 Date of Sale: August 1995 OR Book/Page: 9067/300 Grantor: Arthur H. Cote Grantee: Kenneth E. Knapp 37 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. Indicated Consideration: Allocated to Land: Allocated to Improvements: $96,000 $37,500 $58,500 Building Size: 3,400 Square feet Price Per Sq. Ft.: $28.24 Including land $17.21 Excluding land Land Area: 5,000 Square feet or 0.115 acre, MOL Land to Building Ratio: 1.5: 1 Year Built: 1962 Condition: Average Financing: $80,000 PMM/8%/25 years Cap Rate: N/A Confirmation: Pat Marzulli (broker) Sales History (3 years): None Comments: This is an average quality office/showroom building on a small site approximately 100 feet east of Missouri A venue at the eastern periphery of the Clearwater central business district. There are five paved parking spaces at the front of the property which has some exposure to Missouri A venue. A McDonalds restaurant is located at the southeast corner of Missouri and Rogers Street. The building was remodeled following the sale and has been put back on the market at $160,000; no offers have been made to date. 38 VALUATION SERVICES, INC. IMPROVED SALE NO.4 .cJ' -~.~ Location: 4825 Ninth A venue North St. Petersburg, Florida Parcel No.: 16- 31-16-62622-001-0140 Date of Sale: January 1995 OR Book/Page: 8884/950 Grantor: King of Peace Church Grantee: Pentecostal Church of God 39 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. Indicated Consideration: Allocated to Land: Allocated to Improvemen~: $127,200 $ 80,000 $ 47,200 Building Size: 5,234 Square feet Price Per Sq. Ft.: $24.30 Including land $ 9.02 Excluding land Land Area: 16,700 Square feet or 0.38 acres, MOL Land to Building Ratio: 3.2:1 Year Built: 1950 Condition: Below average Financing: Cash to seller terms Cap Rate: N/A Confirmation: Rob Elkins (broker) Sales History (3 years): None Comments: This is a church property located on a secondary east/west artery in north-central St. Petersburg. The building resembles a fraternal hall and exhibits minimal architectural appeal. A parsonage located adjacent east of the church was sold in December 1995 for $37,500 to Pentecostal Church of God. 40 VALUATION SERVICES, INC. Location: Parcel No.: Date of Sale: OR Book/Page: Grantor: Grantee: IMPROVED SALE NO. 5 ~', - -- -- " -------~.<:_:_.,.,-', 3000 - 16 Street North St. Petersburg, Florida 12-31-16-37980-001-0010 October 1994 88021709 Barnett Bank Ralph B. Voorhis 41 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. Indicated Consideration: Allocated to Land: Allocated to Improvements: $96,000 $60,000 $36,000 Building Size: 5,236 Square feet Price Per Sq. Ft.: $18.33 Including land $ 6.88 Excluding land Land Area: 19,720 Square feet or 0.45 acre, MOL Land to Building Ratio: 3.8:1 Year Built: 1947 Condition: Fair Financing: Cash sale Cap Rate: N/A Confirmation: Gary Ackley (Barnett Bank) Comments: This is a former social club which had been foreclosed by Barnett Bank. It was acquired by a local printing company. A small parking lot is located at the. rear of the property. 42 VALUATION SERVICES, INC. IMPROVED SALE NO.6 Location: 301 - 38 Street North St. Petersburg, Florida Parcel No.: 22 - 31-16-69174-007 -0090 Date of Sale: May 1996 OR Book/Page: 9353-1453 Grantor: Orthodox Church of Holy Trinity Grantee: Fairmont Park Church of Christ 43 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. Indicated Consideration: Allocated to Land: Allocated to Improvements: $140,000 $ 40,000 $100,000 Building Size: 5,100 Square feet Price Per Sq. Ft.: $27.45 Including land $19.61 Excluding land Land Area: 12,700 Square feet or 0.29 acre, MOL Land to Building Ratio: 2.5:1 Year Built: 1950 Condition: Above average Financing: $10,000 PMM/8%/1 year Cap Rate: N/A Confirmation: Skip Cole (broker) Sales History (3 years): None Comments: Older, but well-maintained church located in a low-traffic, residential area of north- central St. Petersburg. There is a small, paved parking lot for approximately 10 cars; street parking is available in: the immediate area. 44 I I I I I I I I I I I I I I I I I~ I I en >- <D 0- o z: -' :::> 00 C> <..> -' ... U> -... U -' a.: -' .... .... E: z: E: ~ C> <L <..> , 0- <..> ~ 00 :::> U> :> n: ... .... 0- 0'" C> :3 C> n: :3 ... z: .... .... -' .... <..> n: <D z: '" o .... -' ... 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II: .,~...... ':,.,.... .a - OLDSMAR::'.f",t~.\;~~;:.). 1St 'NO ~. - BI d L...:::\ TORONTO . .I' ......:!...lJ. -. -'-:-"'T;' ,.~\.. .... "do' ", . ~j;.~ V, ,----; -'I UE JAYS, .I' . '- ....... "'S~", ~ ';~~:;,,,\};. t:".'t,} '..:;: _. '2 . I . " S f USEU ~ '1_ :"""1:'''. e,,> '.,{ 0 ".'. 'j! 6\,..~,{i' .!i ", ,580 ~ ery ";'~~~';'j,'~ ~fl;,'.'~:1,>1 C~/ades; Island .~.: =...."... ii:1iiDi. '.' .... h<:r.....".... II.. .~...J... .' u~. rbOrJ..~'~..;h.:.~:......~..'. ...........'...'..'......;.....~'..... ~~~>"'~.'. - 5sg"l:i:~~'-!Ut~ \ ~"'rr ---~ ,,-.~ . .~..;r .:~~ ~o.e_~'~:f,,~ -' ~' ~ , rglnlllli' f1&~ ~~ ~ :~ \61 ~ ,:~ ~ . ,'1 II . :~~.\!-~}!i.t 580 ~. ,\:)OTRIN/TY .' >"'r;:n~;t~ ~- -I,'.' ~~.J ~...... "_/ '~~"" ~. COLLEGE ..;~ ~~, rl~~fe~ff.' -I,.,,~.'.'.:tl" ~i ~ ";"'P :;i..;~:"r~~~', Clearwater Beach \ ,I n . ~~' . J./...::-:;n s:-. ',',', ~ ~:~c. ~i;,.. SAFETY I' r....;~.'.....'.~..~...&. .~..~ Island I (I~ '- "'II[ .g'l Su I!Ult Pmnt -c:' ..~ 1 ::"Uarn ~t .,'1' .';( . ;p,.;;~tf; P(]8l1C8E"CH.iM~RIN~~ i ~ Q J ~~:!.~. N'"~~2.G-"'. HARBOR I ~ ':f%;JJ EARWATER I i~ NC, ~~~~. ~J ~ ~r---.:i~:lk~'6~<J,~'g'AHtrlLCEfhER Ii ~OF . S ~ EXEC\:C ~ -----~ ~'f/)CLEARWATER I 6 . .c.... 2. ' AIRPARK . r~T .;:=- ?>/ CHRISTI"N PU8l1C 8&\CH '~sale _ I \ .I. ~ ,;.-,; / COLLEGE U, PARICWA Y , . '-' . ~ r....' I'H'LF TO 81. Y · . fY CAMP8f SAND KEY ) ~ i "', .!! '- Sale 3 8L YO J~i~~ COURTN l P"RK./ .,' ~ I lie ~ Oruicl'~ ,\. t! R ~, C"RPENTER FIELD 0 I d .' 1/c'~ I::I! .... n ~'l. G' PHIL LIES .... - .\;,~. / \~ . . lI, d~akeview .'. Rd'> ::J 19 .'_ TRAINING FIELD .......... 199" ~ ~ c)e~G.C: T.. L.L, ._ " T a in p a. .. ~ i:BELLEAIR/' ('OAS Belleair j J' Jl " Rd ~ .......... ELLEAIR BEACH f3? / .j,..iit'c NTE. R' . '1!J; f. '. . BO. A. .TYARD~ B" /{$ , I Rosery;') l!! :;.J'>>IlLAGE\ a Y ,,0 ff B~~~:J: ~,I EJ-tcrt.,F1[r ~ Rd r <f!d ~. ~ I...~ ! itA V i.D ./...." ul~~~~~y.~.:."':.I:.~...s:rY~.~A.~.L.M. RW.A T.E R. . "'o~~ ~ ~;:{i"n~.~'~ D.: LARGO Cii8l 'c' t 'OO~E~(. ""<'~ ~ l215f DIANROCKS Ki;t;~ V_~ ~i [J c.. ': .~r~,. .....,' ~c0~ BEACH ~? R/06/~.ES;i: .. .. 688 fii .. h ,\ u ,. ~I"}1.J "'9 ~,~/a W"M1Jiff,Lf. r rl . _"J1.l Llff ON~UHAr.n.. ~/.~~.~~-l1~ 0, .~ ,./ ! 'F{J.f ~ l5-~: ) ,~:r F/~ 1;1 SUNSHINE,-,~'/Z ~ ~, i(' WAL ~~HAIf f- RD < Aff)'T," (~ ,~ ::r- iW SPEEqWAY ... .13~ _ ...'~' .'~r-.,\ Sand \ ... HERITAGE.P"RK _ 1 9 ) a: / ,.J J en '" 'iQ ,. ~ : ANDM~VUM~ CIJ .(1 Bryan1 iry Rd' P fii 16.<k lo. I . ' " \\ :::l Q 80TANlCAL ~,"" .i v 693 ;0...... il1,-, \ OIAN SHORES '-\ ~ Ill: GARDENS, J 1\ ~C ~ ) LAKE ~"I ~ 1\275) ~". ~:::.'? n TI/(/GARDENS~,\, '...~SEMINO'rE. i,'. ~:'.~..~..'I:.K./~LE .~.~~" PINELLA~ ~ (,,11'; ~ >_~~~~,,~~~' Key ~ '(,1, 233 .g, ~, ~ (. ~\ -= ~... ~..n. ~ PARK -= 19 ~fo:~ '15 a; ; ~ ". ~",l SUNcoAsr~" c ii:' .~ ,~-':~I fii .. . 'J L~ lD ~. ""'-' ' , SEABIRD fiOLLJPark Blvdl..'iit; -;!;.., '.' U~c^ ..~f-... 'It ,J ~' ~>~~.^ ;~ 'e: SANCru"RY ''-.'--'...... ~'" '. ~.'.~" '1.:6..~..p...:a'...r...Jt._.........a\l.vd......~.. ,IItC.R.OUND.S PARK 8LVD.. "':.,; ~~':'tG~~ SS '.)~;: d,~ .DINGTON SHORES . r ',- ~':'''Z:\ \. ....:.:: ~,'. 62nd Z Z Av ~ ..~- \' < t6Qi1'\9 ../'?~ \) ,;, 1cZt::J 0 "._.r</) ....! ,.....-1.". '\. - Z 62nd Av N Y ~ ~. - '6 GO .~., ..\./ ( KENNETH 5Ath[l. _ '6", N ~_.,,-----= NORTH REDIr:s~I~~. ~~,' ~f~~~ .sA. y. "'~ES..'S 41:'h1~~TY ..1 fii I ~8 14." ~-sr<il Zl) 92 (Z '1 ,~tf <'~ ~ ~~~,--;SL"Vo- ~ ,..,"'" r '\"'6117;,;' ,~q"Je,r 1'-.:.-'lothAv'N 4- REDINGTON BEACH~(\./'.~~ t~" '~wILDi"Ff4 ~ A ........~ ~v~ REFUGE' ~ ... _ '-"\~.--~ c; ~~i.II p' rso ,~,:ow,.... 30th Avl Sale 5 ~ Vi '" CIJ) ----::~ <;:,\ Si ...:.:, f!!. J: ""EL~ _.:""", ........... "J<' SUN~ N_.i', MADEIRA BEACH.", V tt"RONI"LS .. """Ill 22nd Av N C"R[ EN<. D .,,=) 5 II 'NING FIELO \p.nd/w N ~ -=... -= ~ 12.... .c:: ~ ,_ _ ~c ~ ,--,. ne \~ ~(','..o 5CIENCE~ ~ 'It N11-a;"- i.:! . . .r-'~~.%~.. ....~ ~ ENTER= ~Sale 4 :v ... . ~ 0 C F ~ A:'1'~~FINE "RTS M Gulf \\~;<~~~ v N ~THEPIER ST PETERSBURG"- ":?"'(TOLL)~\ -1st Av<' Sale 6 ~..u LANG STAl MUNICIP"L BEACH "R.....U..:WE. M1" ~ ., . S" ~.- I~. B"YFRONTCEN: TREASURE dflMC~~s ASADENA f;-:-::: fiiH"Asu, ~ en~ 75) ..~ IAl8ERT WHIm! nf ISLAND \~:--> ,~""~ ij/ ~ MUSEUM ~N.,EHt:r.,"",.~A/RPORT ~'"J~~;''-' u ..- -= "',J SPORTSPLEX ... "X(UNIV OF S FLA B I~ ~[o(:~) 1"'. ~ I~ ~ '" Vi sr"OlUMVi Ill'. ',DALI MUSEUM I~!l... r; 693 ~~);A 8LVC 7~ 1 --'ind Av 5 a; ~ '~.'~ , "X......";> 0l _ __'I~ _ ~ \.~...., ~ '5~_....J( ~ ,,' I _~ I I I I I I I I I I I I I I I Rut lEa.... a,..~. Inc C)COPVAIGMT llt1' I (Improved Sales Map) I I I I I I I I I I I I I I I I I -I I I VALUATION SERVICES, INC. Analysis of Improved Sales: The six comparable sales set forth represent the best available market data for valuing the subject property by the sales comparison. These sale properties were drawn from various sub markets in Pinellas County over the period 1994 to 1996. Because of the specialized design of the subject property, we have selected sales representing general-purpose commercial, retail stores, industrial, fraternal, and church buildings. The criteria used to select the comparable sales are reflected in the descriptive headings set forth on the adjustment chart. Some sales were selected because they demonstrate a specific aspect. For example, Comparable 2 is a large, older industrial property which is larger than the subject. This sale was selected as it is approximately the same age, quality, and parking coverage as the subject but, more importantly, is located in the same neighborhood. Set forth below are explanations of the adjustments made on the accompanying chart. Financing: Prior to adjustment for other dissimilarities, the comparable sales must first be reduced to a cash equivalent basis where concessionary seller financing or other unusual terms of sale can be neutralized. In this case only Comparables 2 and 3 required downward adjustment for financing. Market Conditions: This is sometimes referred to as the time adjustment as it considers changes in market conditions between the date of the comparable sale and the current date of valuation for the subject. All six sales occurred within the last 2 years, during which time the market has been relatively stable with no upward or downward movement. Location: Factors considered in the location category were traffic volume, demograph- ics, complimentary land uses, and development activity in the immediate area. 46 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. Most of the comparables reflected superior locations, thus requiring down- ward adjustments. Comparable 3, for example, required the greatest down- ward adjustment as it is located at the eastern fringe of the central business district. Comparables 4, 5 and 6 also required downward adjustments as they are located in higher value areas in St. Petersburg. Comparable 2, however, is located in an industrial, lower-traffic area near the subject and, thus, required a modest upward adjustment. Size: All else being equal, there is generally an inverse relationship between unit price and building size when considering commercial and industrial buildings. The subject building comprises ground-floor area of 3,629 square feet plus a partial second floor of 756 square feet. This second floor, however, has very limited utility; and, therefore, only the ground floor area has been considered in this comparative analysis. The comparable sales range in size from 3,400 square feet to 10,000 square feet. Comparable 2 is the large, older industrial property which comprises 10,000 square feet; it is considerably larger than the subject and the other comparables but, as noted, was included because of its nearby location and similar highest and best use. The other five comparables range from 3,400 square feet to 5,236 square feet and, as such, closely correlate with the subject size. Comparable 1 is the March 1996 sale of the subject property itself. An upward adjustment was made, therefore, on a unit price basis, to Compa- rable 2; the other sales were not adjusted. Ouality: This refers to quality of construction which begins with an assessment of the structural elements. The subject building is a standard concrete block, load- bearing exterior wall structure with a truss roof system and an eave height of approximately 18 feet. 47 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. Comparable 1 (subject), 2, 4, and 5 require no adjustment. Comparables 3 and 6 are rated higher than the subject in quality and adjusted downward. Functional Utility: This category refers to the design elements of the comparables and the subject considering such aspects as floor plan, ceiling height, restrooms (and their placement), and adaptability of the building to various uses. The subject property ranks relatively low in this category. The other comparable sales reflected more conventional general-purpose or retail building designs, thereby requiring downward adjustments. Parking: The subject property now is supported by a small paved lot adjacent north with approximately 12 spaces. The March 1996 sale (Comparable 1) re- flected the market penalty for no on-site parking. Comparables 2, 5, and 6 have approximately the same parking coverage as the subject now, especially considering their respective uses. Comparable 3 has only five parking spaces, requiring an upward adjustment. Comparable 4 has the best parking ratio and, thus, was adjusted downward. Age/Condition: This category refers to the actual and effective ages of the comparable buildings as well as their observed maintenance levels. Subject property is an older theater building which was in fair to poor condition with considerable deferred maintenance at the time of its sale in March 1996 (Comparable 1). Comparable 2 was judged approximately equivalent to the subject in its "as is" condition. Comparables 3 and 6 were judged superior, and Comparables 4 and 5 were found to be slightly inferior and adjusted upward. Conclusion: The six comparable sales, following adjustment, describe a unit range of value from $14.66 to $15.80 per square foot. The lower limit of the range is 48 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. set by Comparable 1, the recent sale of the subject property itself prior to renovation and without the support parking. The upper limit of value ($15.80) was set by Comparable 4, the well-located church property with good parking. Most of the comparables fell in the vicinity of $15.00 per square foot follow- ing adjustment. Comparable 2, the industrial property in the subject neigh- borhood, required least adjustment of all the sales utilized; this comparable reflected an adjusted unit price of $15.44 per square foot. In the final analysis, we have granted most weight to Comparable Sales 1 and 2 with secondary weight given to Comparables 3, 4, 5, and 6. 3,629 Sq. Ft. @ $15.00 = $54,435 Rounded, $54,500 49 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. QU ALIFICA TIONS C. RICHARD TOBIAS, MAl EDUCATION: B.A., 1971, Boston College - School of Arts and Sciences Have passed or received credit for the following courses sponsored by the Appraisal Institute. 1A-1 Real Estate Appraisal Principles 1A-2 Basic Valuation Procedures 1B-1 Capitalization Theory and Techniques 2-1 Case Studies in Real Estate Valuation 2-2 Valuation Analysis and Report Writing 2-3 Standards of Professional Practice 6 Investment Analysis Attended numerous seminars sponsored by American Institute of Real Estate Appraisers (now Appraisal Institute), Society of Real Estate Appraisers (now Appraisal Institute), Florida State University, National Association of Mutual Savings Banks, and other financial institution associations. Most recent seminar attended was "Basics of Commer- cial Construction." Most recent appraisal course was Course 510, Advanced Income Capitalization (November 1993), sponsored by the Appraisal Institute. Florida Certified General Appraiser #0000705 Expert witness in appraisal of real estate and businesses -- Circuit Court of Florida, Sixth District Federal Court, Middle District of Florida BUSINESS EXPERIENCE: 1987 to present: Independent Contractor associated with Valuation Services, Inc., a firm specializing in appraisal and consulting in commercial and investment real estate. Assignments have included appraisal of a variety of com- mercial, industrial, and residential properties, as well as vacant land. Areas of specialization include convenience food/gasoline outlets, office buildings, mobile home parks, residential subdivisions, and restaurants. 50 I I I I I I I I I I I I I I I I I I I VALUATION SERVICES, INC. Appraisal assignments have been prepared for financing, litigation, sale/purchase, and other functions. 1980 to 1987: Vice President, Warren Hunnicutt, Jr., Inc., Real Estate Appraisers and Consultants. Assignments included office buildings, shopping centers, industrial facilities, residential developments, apartment build- ings, resort properties, and closely-held businesses. 1979 to 1980: Associate Appraiser with L. T. Bookhout, Inc., Real Estate Appraisal and Consultation. Assignments included industrial facilities, special purpose properties, undeveloped land tracts, as well as historically significant properties being acquired by the National Park Service. 1977 to 1979: Commercial Loan Analyst! Appraiser with Poughkeepsie Savings Bank. Duties included appraisal of residential and commercial properties for mortgage loan purposes; review and recommendation of commercial loans to Board of Directors; field inspection and analysis of investment properties in Southeast and Southwest United States. 1975 to 1977: Associated with Dutchess County Department of Real Property Tax and City of Beacon, New York in the assessment of properties for ad valorem taxation purposes. 1973 to 1975: Owned and operated masonry contracting firm specializing in custom residential fireplaces, accent walls, exterior facades, etc. Independently registered Real Estate Broker -- State of Florida PROFESSIONAL AFFILIATIONS: MAl, Member Appraisal Institute The Appraisal Institute conducts a program of continuing education for its designated members. MAl's who meet the minimum standards of this program are awarded periodic educational certification. C. Richard Tobias is currently certified under this program. Member, St. Petersburg Suncoast Association of Realtors Member, Appraisal Institute, West Coast Florida Chapter -- Team Leader, Experience Review Committee -- Regional Panel Member, Ethics and Counseling 51 I I VALUATION SERVICES, INC. I I I I I I I I I I I I I I I I I ADDENDA NO. 6 9 9 0 0 C . ~~ " :; C 0 tAil TW.O COPIES OF INVOICE TO: CITY OF CLEARWATER FINANCE DEPARTMENT I P.O. BOX 4748 CLEARWATER, FLORIDA 34618-4748 I PURCHASE (11'111,,: CITY OF CLEARWATt:H PURCHASING DIVISION . PO BOX 4748 PHONE (813) 562,4630 CLEARWATER. FLORIDA 34618-4748 FLORIDA SALES TAX EXEMPTION CERT. NO. 62-02-134859-54C FEDERAL EXCISE TAX EXEMPTION NO. 59-78-0105K PO. DATE 10/03/96 REQ'D DATE: 10/18/96 SHIP TO: ECONC~IC DEVELOP~ENT CITY HALL 112 S. OSCEOLA AVE. CLEARWATER FL 3~616 INDOR NAME: _ _' V.-\Li_.,:'=O\ SERVICES, INC I I ATTENTION: 24 HOUR ADVANCE NOTIFICATION REQUIRED ON ALL SHIPMENTS TO CITY OF CLEARWATER LOCATIONS, DIRECT ALL COMMUNICATIONS ON THIS ORDER TO: 6~11 ~~RST AVENUE NORTH FL 33710 ST :==:':':=:,3DURG ~j. HOUIES 813/~62-63S2 PAYMENT TERMS DEPARTMENT F.O.B, NET 30 ECONOMIC ~~'=~OPME~T CLEARWATER ORD 001 1,000 I I I I I I . . UNIT DESCRIPTION UNIT PRICE TOTAL PRICE ?fITi)'~ ~J~l(f '<-:,r" t "-:" r y" t " :..- ' ~;. i ;-: ~'. -;:- ~~. 1 ~ ." -~,.,:..".. :~i~H r . t 1 .,~ t~.tr~;: ~. ~ ~~. 1 ,~. :....~~..-. "! :j#t"fn 'y:, t: i ), ;..'" ~ s..~." 7: (- - ~ :- i t ~'-:"J~""; :~it~fH 'rti t ;'~;~ y.... ,,': (-,- '::- I:Jjpftt Doll PREPARE APPRAISAL ON 1102 NORTH GREENWOOD AVENCE, CLEARWATER, FLORIDA, PARCEL #10-29-15-33~98-000-0010, TO ESTI~ATE THE MARKET VALCE OF THE FEE SIMPLE INTEREST IN THE PROPERTY AS OF CURRENT DATE. 1.0000 1,000.OC ISCOUNTS: On any discount, time will be computed om date of satisfactory ,jelivery of all items or from te correct invoice is resclvec. whichever is the later date. THE CITY OF C~=.\F:'i';'TcR MAY CANCEL THIS ORDER, EITHER ORALLY OR IN WRITING'\T ,1<) COST TO THE CITY, IF ANY ITEMS DO NOT ARRIVE BY THE DATE RE':JIJIR::D AND/OR IF ANY DO NOT CONFORM TO SPECIFI- CATIONS. NON.COr'JFORMING ITEMS WILL BE HELD FOR THIRTY (30) DAYS, PENDING RECEiPT OF DISPOSITION INSTRUCTIONS FROM VENDOR, AFTER WHICH TIME THE/ NILl. BE DISPOSED OF AS SURPLUS CITY-OWNED PROPERTY. I I I I 0.00 1,000.00 TITLE ''":l'!:)CR CO?Y