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

older building located in the downtown business district. This sale was usable in the current state but the new owner is completely refurbishing the downstairs area. This property is considered superior in overall physical aspects but inferior for land area. Comparable #6 is the actual current listing of the subject property. Per the listing agent, the property was under contract at one time but the deal fell apart. This appraiser concurs with this listing agent comments. A general market grid for the subject property was considered but deemed non-appropriate at this time. The market lacks a sufficient number of sales from which to determine any kind of “paired sales analysis”. These 5 sales and current listing adequately reflect and “bracket’ the overall value of the market. Comparables #3 and #5 are most similar in all aspects to the subject property. These two sales were in poor to fair condition and received extensive renovation after the sale. These two sales have a narrow value range of $25.00 to $27.00 p/SF. Comparables #1, #2 & #4 represent value after extensive renovation. These 3 sales indicate a value range of $80.00 to $129.00 p/SF. 45 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 Comparable #6 is the current listing of the subject property, which has a very reasonable asking price of $20.00 p/SF. This value is somewhat supported by the actions of the market, except for overall condition. As stated earlier, the subject property has extensive mold problems due to overall poor condition of the roof. Comparable #3 had to replace its roof but the overall interior condition was far superior to the subject property. As stated earlier, Comparables #3 and #5 received extensive remodeling after the sale but they were both fair superior in overall condition to the subject property. The subject property has a building area of 12,000+- SF and actual on-site parking. This overall size and condition must be considered in the final valuation process. Based on current market activity, a value range of $15.00 p/SF to $18.00 p/SF is estimated for the “As IS” value for the subject property. Value Range Summary: 12,000 SF± @ $15.00 p/SF = $180,000 12,000 SF± @ $18.00 p/SF = $216,000 Final “As Is” value is reconciled at $210,000. INDICATED VALUE BY SALES COMPARISON APPROACH: $210,000 46 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  RECONCILIATION AND VALUE CONCLUSION The subject property consists of a 12,000± SF brick building situated on a 0.48-acre corner lot. The property is located 1 block off Main Street in the downtown business district of Crestview, FL. The subject was analyzed by one of the three approaches in order to aid this appraiser in reaching a final value conclusion for the subject property. These approaches yielded the following results: Cost Approach: N/A Sales Comparison Approach (Market): $210,000 Income Approach: N/A The sales comparison, or market approach, represents the current market activity between buyers and sellers of properties in the local market. This approach is most reliable when a sufficient number of sales of similar properties have taken place within a reasonable proximity and a reasonable time frame with respect to the subject property. This approach produced a sufficient number of sales, from which to form an opinion to value. Value consideration should be given this approach. Some comparable sales reflect properties converted after the sale. The current actions of the subject property must also be considered within this approach. The subject property is in extremely poor condition. This building will require extensive remodeling including mold remediation before being a readily usable place of business. Both the Cost and Income approach were considered but deemed non-appropriate at this time, per the agreement with the client. The appraisal assignment calls for an estimate of "market value" for the subject property. The sales approach reflected the attitudes and actions of the real estate market. Based on all of the data available to me at the time of is appraisal, it is my opinion that the subject property has a present market value of $210,000. Final Value Opinion TWO HUNDRED TEN THOUSAND DOLLARS ($210,000) 47 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 Extraordinary Assumptions: This appraisal assumes and subject to the subject property having mold remediation and the property will continue to be usable. The motivations of buyers and sellers will forever create a range to value. The ability and/or competitive position of each party to a transaction are a factor which can not be quantified during the appraisal. Therefore, my opinion is a value range of 10% plus or minus within a reasonable marketing period of over 6 months. ESTIMATED MARKETING TIME: The estimated marketing time (i.e., the amount of time it would probably take to sell the subject property if exposed in the market beginning on the date of this valuation) is estimated to be over 6 months. 48 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  ASSUMPTIONS AND LIMITING CONDITIONS This APPRAISAL REPORT is intended to comply with the reporting requirements set forth under Standard Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice for a Restricted Appraisal Report. As such, it might not include full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser's file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraiser is not responsible for unauthorized use of this report. The legal description or descriptions used herein are assumed to be correct. No survey of the property has been made by the appraiser and no responsibility is assumed in connection with such matters. Sketches in this report are included only to assist the reader in visualizing the property. No responsibility is assumed for matters of a legal nature affecting title to the property nor is an opinion of title rendered. The title is assumed to be good and merchantable. Information furnished by others is assumed to be true, correct, and reliable. A reasonable effort has been made to verify such information; however, no responsibility for its accuracy is assumed by the appraiser. All existing mortgages, liens, encumbrances, and servitudes have been disregarded unless so specified in this report. Any mortgages, liens, encumbrances, leases, and servitudes coming to the knowledge of the appraiser in his research are mentioned in this report if they affect value. No substandard rate mortgage or bond is anticipated in this appraisal unless specifically discussed. The property is appraised as though under responsible prudent, and competent management unless so specified in the report. It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined and considered in the appraisal report. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined and considered in the appraisal report. 49 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 It is assumed that all required licenses, consents or other legislative or administrative authority from any local, state or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value opinion contained in this report is based. It is assumed that the land and improvements are within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted with the report. The appraiser will not be required to give testimony or appear in court because of having made this appraisal, with reference to the property in question, unless arrangements have been previously made therefor. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event only with proper written qualification and only in its entirety. The distribution of the total valuation in this report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. Neither all nor any part of the contents of this report, or copy thereof, shall be conveyed to the public through advertising, public relation, news, sales or any other media without written consent and approval of the appraiser. Nor shall the appraiser, firm or professional organization of which the appraiser is a member be identified without written consent of the appraiser. Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge 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 hazardous materials may affect the value of the property. The value opinion is predicated 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 conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. Unless otherwise stated in this report, the subject property is appraised without a specific compliance survey having been conducted to determine if the property is or is not in conformance with the requirements of the Americans with Disabilities Act. The presence of architectural and communications barriers that are structural in nature that would restrict access by disabled individuals may adversely affect the property's value, marketability, or utility. 50