Okaloosa County BOCC — April 5, 2016 — Okaloosa County-old Piggly Wiggly Bldg Appraisal Oct 2015 — reading text

maximally productive use of the subject property but only after extensive renovation. A quality product with good management skills is the key. The success of any development to an extent is contingent upon management expertise. This appraisal assumes expertise in management. 20 TEEL & WATERS REAL ESTATE CO., INC. - APPRAISAL DIVISION FORT WALTON – AC - 850-243-5511 ∙ 499 N. FERDON BLVD. - CRESTVIEW, FL 32536 - AC – 850-682-6156  TAX ASSESSOR’S MAP 21 TEEL & WATERS REAL ESTATE CO., INC. - APPRAISAL DIVISION FORT WALTON – AC - 850-243-5511 ∙ 499 N. FERDON BLVD. - CRESTVIEW, FL 32536 - AC – 850-682-6156  TAX ASSESSOR’S MAP 22 TEEL & WATERS REAL ESTATE CO., INC. - APPRAISAL DIVISION FORT WALTON – AC - 850-243-5511 ∙ 499 N. FERDON BLVD. - CRESTVIEW, FL 32536 - AC – 850-682-6156  PLAT MAP 23 TEEL & WATERS REAL ESTATE CO., INC. - APPRAISAL DIVISION FORT WALTON – AC - 850-243-5511 ∙ 499 N. FERDON BLVD. - CRESTVIEW, FL 32536 - AC – 850-682-6156 PROPERTY DESCRIPTION: The subject site is improved with a single, one story building. The building was originally constructed in 1968 (per tax card). The building was constructed as the new Piggly-Wiggly Food store. The old Piggly-Wiggly store relocated in 1980’s from this location. This building has been vacant more than occupied over the past 10 to 20 years. A general description of the building is as follows: Age: 47+- yrs. Effective (1968 per tax card) Size: 12,000±SF (Gross Bldg. area) Foundation: Reinforced concrete slab foundation on grade & wood Roof: Flat/built up, extremely poor condition (new roof needed). Eve Height: 10 to14+- feet approx. Exterior Walls: Brick veneer with plate glass along the front. Interior Walls: Painted drywall & other Floor Covering: Mixed, extremely poor condition Ceiling: Acoustical tile in metal grid & other (extremely poor condition-see photos) Lighting: Exposed & covered fluorescent & other Heating and Cooling: CH/A (package unit (condition unknown) Bathrooms: Adequate Miscellaneous: Covered porch area along front, concrete parking lot. The overall condition of the building is considered extremely poor. A review of the photos is highly recommended at this time. A further description is taken from accompanying sketches and photographs. 24 TEEL & WATERS REAL ESTATE CO., INC. - APPRAISAL DIVISION FORT WALTON – AC - 850-243-5511 ∙ 499 N. FERDON BLVD. - CRESTVIEW, FL 32536 - AC – 850-682-6156  FLOOR PLAN Okaloosa County Property Appraiser's Office Parcel Number: 17-3N-23-2490- Building Number: 1 0068-0010 Traversal Information: Year SQ Area Color Area Type Description Built</FONT< FT</FONT< UST1968=W10FST1968=W32BAS1968=W100S86CAN Type TH> TH> 1968=S10E100N7W85N3W15$E15S3E85N89$S97E3 2N97$S65E10N65$. UNFINISHED STORAGE 1968 650 UST FINISHED STORAGE 1968 3104 FST HEATED BASE AREA 1968 8855 BAS CANOPY 1968 745 CAN Enlarge 25 TEEL & WATERS REAL ESTATE CO., INC. - APPRAISAL DIVISION FORT WALTON – AC - 850-243-5511 ∙ 499 N. FERDON BLVD. - CRESTVIEW, FL 32536 - AC – 850-682-6156  SUMMARY OF ANALYSIS AND VALUATION APPROACHES TO DETERMINING VALUE The three approaches to value used by the appraisal profession are the Cost Approach, Sales Comparison Approach, and Income Capitalization Approach. Cost Approach - This is a method in which the value of a property is derived by estimating the replacement cost of the improvements and deducting there from the accrued depreciation, and then adding the market value of the land, plus any entrepreneurial profit. Cost factors used in this approach were taken from our knowledge of local building costs, actual construction bids, when available, and data published by the Marshall Valuation Service, a nationally recognized authority for many years in the field of cost analysis. This approach is based upon the assumption that the replacement cost normally sets the upper limit of value, providing that the improvements represent the highest and best use of the land. This approach was deemed non-appropriate and was not utilized due to overall age of improvement. Income Approach - The value of an income producing property can be determined by dividing its net operating income by an overall capitalization rate. The rate must be sufficient to provide a return of and on the investment while compensating risk and non-liquidity. Net operating income is the income remaining after deducting a vacancy allowance and operating expenses. (For appraisal purposes, debt service is not an expense item.) The first step in the application of this method is to estimate the market rents that the property is capable of producing. Vacancy and credit losses are then deducted to arrive at the Effective Gross Income. Expenses are then estimated and deducted from the effective gross income and the resulting net operating income is capitalized by an overall rate applicable to the subject property based on comparison to similar properties. This approach was considered but deemed non-appropriate at this time per the agreement with the client. Without the influence of a long-term lease agreement, this approach would be considered suspect. Sales Comparison Approach: This is an appraisal technique in which the Market Value opinion is based upon prices paid in the actual market transactions and current listings. It is a process of correlation and analysis of similar, recently sold properties. Per agreement with the client, only the Sales Comparison approach will be used for analysis. 26 TEEL & WATERS REAL ESTATE CO., INC. - APPRAISAL DIVISION FORT WALTON – AC - 850-243-5511 ∙ 499 N. FERDON BLVD. - CRESTVIEW, FL 32536 - AC – 850-682-6156  SALES COMPARISON APPROACH TO VALUE This is an appraisal technique in which the Market Value opinion is based upon prices paid in the actual market transactions and current listings. It is a process of correlation and analysis of similar, recently sold properties. The reliability of this technique is dependent upon: a) The degree of comparability of each property with the property being appraised. b) The time of the sale. c) The verification of the sales data. d) The absence of unusual conditions affecting the sale. Under the sales comparison approach, the appraiser attempts to find sales of similar type properties and then analyze the sales into units of measurement for comparison. The most common unit for comparison is Price per Square Foot. The Market Approach is also predicated on the economic principle of substitution which maintains that no knowledgeable buyer would be willing to pay any more for any given property than it would cost for him to obtain an equally desirable substitute-assuming that there were no costly delays involved in making the substitution. In the case of the subject, this appraiser was able to locate several sales with sufficient merit to be directly compared to subject. The unit of measure will be the Price per Square foot ($/per SF). 27 TEEL & WATERS REAL ESTATE CO., INC. - APPRAISAL DIVISION FORT WALTON – AC - 850-243-5511 ∙ 499 N. FERDON BLVD. - CRESTVIEW, FL 32536 - AC – 850-682-6156  IMPROVED COMPARABLE SALE #1 Property Identification Property Type Commercial, Office/Retail Property Name Trailside Outfitter (Jernigan Office) Address 504 Main Street, Crestview, Okaloosa County Florida, 32536 Location Main St & Pine (across St. from courthouse). Tax I.D. 17-3N-23-2490-0050-00F0 Legal Desc. Portions of Blk. 50, Town of Crestview S/D Sale Data: Grantor Jackson C. Jernigan Grantee Lewellin Properties LLC. Sale Date 12-27-2012 Deed Book/Page 3073/2686 Property Rights Fee Simple Condition of Sale Buyer/seller connection Financing Cash to sellers, ($285,000 mtg. Hancock Bank) Sale History None over past 3-years Verification Public records, confirmed by Mr. Randy Bracewell, with Mr. Jack Jernigan, the seller. Sale Price $360,000 28 TEEL & WATERS REAL ESTATE CO., INC. - APPRAISAL DIVISION FORT WALTON – AC - 850-243-5511 ∙ 499 N. FERDON BLVD. - CRESTVIEW, FL 32536 - AC – 850-682-6156 Land Data: Land Size 0.061 Acres or 2,657+- SF Front Footage 25 FF on Main St., 11 FF on Pine. Zoning C-1, General Commercial, Crestview Topography Level, typical Utilities all public Dimensions 25 FF x 95’ + 11’ x 25’+- Shape “L” shaped Fencing None Flood Info Zone X General Physical Data Building Type Two store office/retail Gross SF 4,150+- SF Construction type Brick, stucco Roof type Slanted built up tar & other (new) Foundation Concrete & wood HVAC 100% central HVAC Sprinklers No Stories