Fort Walton Beach Council agenda — 02-27-2007 workshop agenda — reading text

DR~ . ~ QAKHIll. .AVE~; ~. ~ ..,~ '.~. ' 1;;, ..; /' , g.~;; Ii .. ..-., . '.- ,~: " tpooEN.cv ' t;;' ~ Z'. '" . Q' ;:: GIR.........Q': .", ii,',... Ji..]: fu1;t ft @ 2003 Delorme W\ IW. I\delorme. com Street Atlas USA@2004 r MN ( 2. 0. W) o 800 1600 Data Zoom 13, 0 2400 3200 4000  45 Adiustment Grid for Comnarable Commercial Land Sales Subiect Sale # 1 Sale # 2 Sale #3 7. 84 $ 8. 50 $ 8. 62 Sales $/ SF $ Fee simple Fee simple Fee simple Fee simple Property Rights Cash or Eauiv. Cash or Eauiv. Cash or Eauiv. Financing Cash or Eauiv. Arm' s length Arm' s length Arm' s length Conditions of Arm' s length Sale None None None Buver Expend. None 7. 84 $ 8. 50 $ 8. 62 June 05 November 05 August 05 Time / Market Januarv 07 19% + 14% + 17% 9. 33 $ 9. 69 $ 10. 09 Lewis Turner Lewis Turner Lewis Turner Lewis Turner Location 127 631 45, 302 48, 744 Site Size ( SF) 208 600 308 FF 504 FF / 225 FF 175 FF Road Frontae:e 834 FF 250 SFIFF 414 SFIFF 62 SFIFF 279 SFIFF Paved Paved Paved Paved Type 5% 382 Feet 225 Feet 298 Feet Lot Depth 250 Feet Interior Corner Interior Road Interior Placement 5% Commercial/No Commercial! Commercial! Commercial! Use/Zone Zonine: Business Retail Business Retail HiI!hwav Commercial Same Same Same Utilities up to Water, Electric, Land Sewer, Telephone Irregular / Average Triangular I Average Rectangular I Shape / Utility Polygon I Average Average 5% + 15% Level & Clear Level & Wooded Level & Mostly Level & Partly Topography Cleared Cleared Deed 50' Height Ltd., No Medical for None Parking Easement Restrictions 10 Years 5% 10% + 10% + 5% Total Adjust. + 10. 26 $ 10. 66 $ 10. 59 SF $ Adi. $/  46 The three sold properties are each located along the north side of Lewis Turner Boulevard within a mile of the subject property. They are all zoned for commercial use by either Fort Walton Beach or Okaloosa County with depths ranging from 225 feet to 382 feet. Since they sold between June 2005 and November 2005, we have examined market conditions to determine if any adjustment is needed to account for changes in the market. As mentioned in the neighborhood analysis, the residential market has experienced a leveling of prices and rising inventory during the last 20 months or so. Our research shows that this is not the case with sale's of vacant commercial land. Although such sales are not as numerous as they once were- possibly because of less available vacant commercial land in the has still occurred in the time period since the neighborhood- appreciation comparable properties sold. We use an appreciation rate of + 1% per month to account for changing market conditions during the time since the comparable properties sold until our January 11, 2007 date of value. Sale One represents the June 8, 2005, purchase of two contiguous tax parcels by Lewis Turner Blvd. FWB, L.L.C., from Bonafide Business Associates, Inc., for 1, 000, 000, as recorded in O. R. Book 2626, page 979, Okaloosa County. A third parcel was added by Quit Claim Deed on the same day, as recorded in O. R. Book 2693, page 3579, Okaloosa County. Combined, the three tax parcels form a 127, 631- square foot piece of land with a slightly irregular shape and about 308 feet fronting the north side of Lewis Turner Boulevard. The land is wooded and mostly level while at road grade. It appears to be devoid of wetlands. When the commercial portion of the subject is compared to this sold property, the subject is considered overall slightly superior. While the comparable property has a depth of up to 382 feet, the subject property is considered to have a more efficient depth; this is reflected in a positive adjustment. A second positive adjustment is made to account for the more regular shape of the subject property. With a net adjustment to foot for physical characteristics of +10%, this sale indicates about $ 10. 26 per square the subject' s commercial portion.  47 Sale Two involves a triangular-shaped parcel of land located at the northeast corner of Lewis Turner Boulevard and Gospel Road. On November 10, 2005, this 45, 302- square foot parcel was sold to Earl Bearden from Pauline Potter for 385, 000, as recorded in O. R. Book 2667, page 3069, Okaloosa County. This parcel offers good visibility from Lewis Turner Boulevard. With a corner location that enhances access options to the larger side of the lot, this property is considered slightly superior to the subject property for access (- 5%). This advantage, however, is more than offset by the limiting effect that the triangular shape has on full utility of the parcel. While some design can ease the loss of utility to the lot from the triangular shape, the subject property is considered superior overall to this sold property. With a net adjustment to physical characteristics of + 10%, this sale indicates about $ 10. 66 per square foot for the subject' s commercial portion. Sale Three is considered most similar to a typical slice of the subject property' s commercial portion. This comparable property of 48, 744 square feet sold on August 25, 2005, from Fort Walton Beach Medical Center, Inc., to David & Susan Wellema for $ 420, 000, as recorded in O. R. Book 2648, page 464, Okaloosa County. This is a rectangular- shaped parcel located along the north side of Lewis Turner Boulevard. It has a depth of less than 300 feet with good visibility from Lewis Turner Boulevard. It is level with a commercial use as highest and best. It is, however, encumbered with a joint-use parking easement along the eastern 40 feet ofits 175 feet. While this unique feature allows for development of the parcel, in our opinion it does limit design. With a + 5% adjustment, this sale indicates about 10. 59 per square foot for the subject' s commercial portion.  48 The three comparable sales show an adjusted sale price per unit range from 10. 26 to $ 10. 66 per square foot. With equal weight to each of the sales, the land value is estimated as about $ 10. 50 per square foot. Since the commercial portion of the subject property contains 208, 600 square feet, the indicated value of the land is as follows: Estimated Market Value of Subject Property' s Commercial Land, As Vacant: