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

208, 600 SF times $ 10. 50 per SF = $ 2, 190, 300 Rounded to $ 2, 190, 000  49 Residential Acreage' (:: 1:8. 72 Acres) - We conducted a comprehensive survey for recent sales of similar land in the immediate neighborhood ' and in surrounding, competing areas. We were able to find a limited number of sales for study. The chart below lists those residential acreage land sales which are considered to be most similar to the subject residential portion. More complete descriptions are . included in the addendum. COMPARABLE RESIDENTIAL ACREAGE SALES No. Property Address $/ AC Date AC Area Subject Lewis Turner Boulevard 01/ 07 : 8. 72 i:' 1 Joyner Drive $ 223, 979 02/ 06 :: I: 7. 59 2 Dates Avenue $ 139,434 6- 8/ 05 :: I: 4. 59 Redfish Point Road, Santa $ 3 173, 103 11/06 : i5. f: 02 Rosa County  51 Adjustment Grid for Comnarable Residential Acrea~e Sales Sale # 1 Sale # 2 Sale # 3 Subject 223, 979 $ 139, 434 $ 173, 103 Sales $/ SF $ Fee simple Fee simple Fee simple Fee simple Property Rights Financing Cash or Eauiv. Cash or Eauiv. Cash or Equiv. Cash or Eamv. Arm' s length Arm' s length Arm' s length Arm' s length Conditions of Sale None None None None Buyer Expend. 223 979 $ 139434 $ 173, 103 J anuarv 07 Februarv 06 June/ August 05 November 06 Time / Market 0% 0% 0% 223 979 $ 139434 $ 173, 103 Dates Ave., FWB Redfish Point Rd., Location Lewis Turner Blvd. Joyner Dr., FWB south Santa Rosa Co. 5% + 10% + 20% 1:7. 59 Acres : 1:4. 59 Acres : 1:15. 02 Acres Site Size lAC) : 1:8. 72 Acres : Paved Paved Paved Paved Type Access None None None None Water Frontage N/A N/A N/A N/A TVlJe Residential/No Residential/ RGB Residential I RGB Residential/ R- l Use/ Zone Zoning Rectangular / Good Rectangular I Good Rectangular / Fair Rectanlrular / Good Shape / Utility 25% Level & Clear Level & Clear Level & Wooded with Level & Wooded Topography Some (10%) Wet 10% + 5% None None None Deed 50' Height Restrictions 5% + 45% + 25% Total Adjust. + 235, 178 $ 202, 179 $ 216, 379 Adj. $/AC $ Two of the three sold properties are located within the subject neighborhood, to the while the third is located in southern Santa Rosa County a similar distance Each sold Gulf of Mexico. All of the sale properties are zoned for residential use. within the time frame from June 2005 to November 2006, a cooling period for  52 residential sales, as noted in the neighborhood analysis. Because of the lackadaisical nature of the residential market, we have given no market condition adjustment to the sales. Sale One represents the February 21, 2006, purchase of two adjoining tax of the subject neighborhood by LNK parcels located in the western portion total of Development, Inc.. The two parcels with a combined :1:7. 59 acres sold for a 1, 700, 000. This property has a rectangular shape and good utility for residential development. Compared to the subject's residential portion, this property' is considered very similar overall. The only adjustment required is to account for the location. With net adjustment of + 5%, this sale subject's slightly superior a indicates about $ 235, 178 per acre for the subject' s residential portion. Sale Two is also representative of the sales of two adjoining tax parcels. However, in the case of this property, the sales closed on two dates separated by 66 the days. While the buyer, City Plaza, L.L.C., is the same for both transactions, is sellers are different. Assembled, these two parcels create a :1:4.59- acre parcel that The basically level and wooded with some low/ wet area in its western portion. combined sales price of $ 640, 000 translates to $ 139,434 per acre. While there is some potential for this land, development appears to present some challenges. While most of the property includes frontage along Dates Avenue, a residential is street, a road through the property could possibly create more lots; this roadway speculative, however, depending on setbacks and approval. The subject property' s residential portion is considered much superior to this sale property. More specifically, when compared to the subject property, this sale requires upward of + 45%, adjustments for utility, location, and topography. With a net adjustment indicates about $ 202, 179 acre for the subject' s this property purchase per residential portion. of :1:15. 02 Comparable Three represents the November 3, 2006, sale acres  53 located in southern Santa Rosa County to Arrowfish, L.L.C., from Grand Bay Developers of Escambia County for $2, 600,000, as recorded in O. R. Book 2672, page 13, Santa Rosa County. While not located within the subject neighborhood, this parcel is considered similar to the subject in most respects: This' parcel is located north of U.S. Highway 98 between the communities of Gulf Breeze and Navarre in an area of steady growth. Even through the recent residential slowdown,. commercial development in the area has continued strong with completion of several projects aimed at the population of this burgeoning area. Compared to the subject property' s residential portion, however, this comparable sale requires an upward adjustment for location. Although some' clearing has taken place' on the comparable parcel, at the time of sale the 15+ acres was wooded; a small adjustment is made to account for the clear subject parcel. With a net adjustment of 25%, this sale indicates about $ 216, 379 per acre for the subject' s residential portion. The three comparable sales show an adjusted sale price per unit range from 202, 179 to $ 235, 178 per acre. With most weight to Sale One, we estimate the land value of the subject' s residential portion as about $ 230, 000 per acre. Since the subject property' s residential portion contains :1:8. 72 acres, the indicated value of the land is as follows: 1:8. 72 Acres times $ 230, 000 per AC = $ 2, 005, 600 Rounded to $ 2, 010,000 2, 010, 000 Plus Commercial Portion 2. 190. 000 4, 200, 000 ESTIMATED LAND VALUE, PARCEL # 1 4, 200, 000  54 LAND ,LEASE ANALYSIS - SUBJECT PARCEL # 1 In order to determine a fair market rent for the subject land, we have first determined. an estimate of the market value of the land. We next determine a reasonable rate of return to land from the market. Rates of return to land can be measured several ways. One method is to analyze actual leases and compare them with the value ofthe land. We are aware of three recent commercial land leases. The most recent involves the leasing of a 7, 000- square foot site with frontage along the north side of U.S. Highway 90 in Pace. Leased by a regional food service operation as a store site at $ 3, 200 per