APPRAISAL OF REAL PROPERTY
APPRAISAL OF REAL PROPERTY Exterior Inspection Only Commercial Multifamily Property
LOCATED AT 562 N Main St Norwich, CT 06360-3261 Volume 2750, Page 48
FOR Attorney Donna R. Skaats 116 Sachem St Norwich, CT 06360
OPINION OF VALUE 70,000
AS OF 11/18/2014
BY Robert H. Champagne Champagne Appraisals 185 Randall Rd Lebanon, CT 06249 (860) 884-1008 [email protected] www.champagneappraisals.com
Form GA1V - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Borrower Property Address City
Lender/Client
N/A 562 N Main St Norwich Attorney Donna R. Skaats
File No. County
New London
State
CT
141105c Zip Code
06360-3261
TABLE OF CONTENTS
Cover Page .............................................................................................................................................................................................................................................................................................................. 1 Summary of Salient Features ................................................................................................................................................................................................................................................................................... 2 71B ......................................................................................................................................................................................................................................................................................................................... 3 GP Commercial Certifications Addendum ................................................................................................................................................................................................................................................................. 7 Supplemental Addendum ......................................................................................................................................................................................................................................................................................... 10 Subject Photos ........................................................................................................................................................................................................................................................................................................ 11 Subject Photos ........................................................................................................................................................................................................................................................................................................ 12 Comparable Photos 1-3 ........................................................................................................................................................................................................................................................................................... 13 Location Map .......................................................................................................................................................................................................................................................................................................... 14 Location Map .......................................................................................................................................................................................................................................................................................................... 15 Flood Map ............................................................................................................................................................................................................................................................................................................... 16 Plat Map .................................................................................................................................................................................................................................................................................................................. 17 Assessor's Card ...................................................................................................................................................................................................................................................................................................... 18 Assessor's Card 2 ................................................................................................................................................................................................................................................................................................... 19 Legal Description ..................................................................................................................................................................................................................................................................................................... 20 Resume ................................................................................................................................................................................................................................................................................................................... 21
Form TOCNP - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
CLIENT
SALES PRICE
SUBJECT INFORMATION
SUMMARY OF SALIENT FEATURES
Subject Address
562 N Main St
Legal Description
Volume 2750, Page 48
City
Norwich
County
New London
State
CT
Zip Code
06360-3261
Census Tract
09011-6964.00
Map Reference
35980
Sale Price
DESCRIPTION OF IMPROVEMENTS
APPRAISER
N/A
Date of Sale
N/A
Borrower
N/A
Lender/Client
Attorney Donna R. Skaats
Size (Square Feet)
4,252
Price per Square Foot
VALUE
$
$
Location
Avg
Age
1870
Condition
Fair
Total Rooms
21
Bedrooms
10
Baths
5
Appraiser
Robert H. Champagne
Date of Appraised Value
10/31/2012
Opinion of Value
$
70,000
Form SSD3 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Champagne Appraisals
APPRAISAL REPORT-RESIDENTIAL INCOME PROPERTY This form may be used for appraisal of income producing properties provided the loan requested does not exceed $750,000.
Borrower/Client City
County
State
New London
Terms of Sale
06360-3261
Date of Sale
N/A
Loan Requested $
N/A
N/A
N/A
Property Rights Appraised
Fee
Leasehold (attach completed Lease Analysis FHLMC Form 461) Lender's Address
Attorney Donna R. Skaats
116 Sachem St, Norwich, CT 06360
Instructions to Appraiser: The purpose of this appraisal is to estimate the current Market Value of the Subject Property. The Definition of Market Value is as set forth in Certification And Statement Of Limiting Conditions (FHLMC 439). Note: FHLMC/FNMA do not consider the racial composition of the neighborhood to be a relevant factor and it must not be considered in the appraisal.
Other Information Appraisal requested from
Date
Attorney Donna Skaats
By
10/23/2014
Attorney Donna Skaats
Items 1, 2, 4, 5, & 6 are required. Attach additional items and check box if items are considered appropriate for this appraisal or are requested by Lender. 1.
Descriptive photographs of subject property
7.
Map(s)
2.
Descriptive photographs of street scene
8.
Plot plan or survey
3.
Photographs of
9.
Qualifications of Appraiser
4.
Sketch or floor plan of typical units
10.
Lease Analysis FHLMC 461 (required if leasehold interest appraised)
5.
Owner's current certified rent roll if existing, or
11.
Summary of reciprocal agreements with other owners for use of parking,
pro forma if proposed or incomplete 6.
driveways, recreational facilities, private streets, (required if applicable)
Owner's income and expense statement
, or
12.
pro forma income and expense statement
13.
Location
Urban
Suburban
Rural
Built-up
Over 75%
25% to 75%
Under 25%
Present land use
5 20
Change in present land use
% Condominiums
20 5
% Commercial Not Likely
% 1-Family %
50
OVERALL RATING
Good
% Apartments
Taking Place (*) To
Police and Fire Protection Recreational Facilities
Stable
Declining
Property Compatibility
Housing demand/supply
In balance
Shortage
Oversupply
Protection from Detrimental Conditions
Predominant occupancy
Owner
Tenant
Age Price range $
Single Family:
Age Typical apartment:
5
to $ 225,000 25,000 yrs. to 42 yrs. 5 to $ 480,000 15,000 yrs. to 1 300 yrs. Type Multifamily No. Units 2 Age 100 yrs. Rent Levels:
Predominant $ Predominant Predominant $ Predominant No. Stories Condition
Increasing
5
Estimated neighborhood apartment vacancy rate
% Vacant
General Appearance of Properties
98,000 yrs. 30 115,000 yrs. 110
Appeal to Market
Stable
Employment Centers Grammar Schools
Declining
Decreasing
Distance Public Transportation Shopping Facilities
2 Avg
Stable
%
Poor
Convenience of Schools
Likely (*)
Increasing
Price range $
Fair
Adequacy of Utilities
Property values
Condominium:
Avg.
Employment Stability
Vacant
(*) From
NEIGHBORHOOD
Zip Code
CT
Volume 2750, Page 48
Current Sale Price (if applicable) $
Lender
141105c 35980 Census Tract 09011-6964.00 Map Reference
Norwich
Legal Description
TO BE COMPLETED BY LENDER
File No.
N/A 562 N Main St
Property Address
Freeway Access Increasing
Rent Controls
Access or Convenience
Bus only 1 mile 2 miles 1 mile 1 mile No
Yes (comments on page 4 if Yes)
Describe any incompatible land uses and overall property appeal and maintenance level
The subject neighborhood is a densely developed mixed use area in the Greenville section of Norwich. Commercial uses include automotive, office, retail, restaurant, and personal services. The majority of apartments are in older multifamily homes typically in average condition. Describe any oversupply of units in area by type and rental None. The rental market is relatively stable in the immediate neighborhood.
Describe any shortage of units in area by type and rental
None. Supply and demand appear to be near equilibrium, vacancy rates are relatively low.
Describe potential for additional units in area considering land availability, zoning, utilities, etc.
There is very little undeveloped land in the immediate neighborhood. The main potential for additional units would be through re-development. In the current economic climate, large scale redevelopment is unlikely. Is population of relevant market area of insufficient size, diversity and financial ability to support subject property and its amenities ? If yes, specify. No
Describe any probable changes in the economic base of neighborhood which would favorably or adversely affect apartment rentals(e.g. employment centers, zoning)
The immediate area is heavily dependent upon tourism, defense, and gaming. The gaming industry has been in decline since 2008, which has adversely affected the subject market. General comments including either favorable or unfavorable elements not mentioned (e.g. public parks, view, noise, parking congestion) None.
Dimensions
50 x 55
Zoning (classification, uses and densities permitted)
Area 2,750 Sq. ft. or Acres MF (Multifamily) 5,000 sf per dwelling unit, single and two family homes permitted, as well as Present Improvements
commercial uses. Present use
Highest and best use Public
Comm.
Individual
Street Surface
Electricity SITE
Other (specify)
Public Storm Sewer
Water
Curb & Gutter Underground Electricity & Telephone
Sep.Tnk.
Private
Sidewalk
Ingress and Egress (Adequacy) Topography
Asphalt
Gas Sanitary Sewer
do
do not conform to zoning regulations
The property is a legal non conforming use (grandfathered).
View Amenity
Drainage and Flood Conditions Alley
Street Lights
Adequate
Slope None Adequate: not located in
flood zone.
No The subject lot does not appear to meet current requirements for lot size for the present use and therefore appears to be a legal non-conforming lot. No adverse effect upon value noted. In case of loss from fire or natural disaster, the existing dwelling could be rebuilt on the existing footprint within 2 years of loss. No adverse effect on value noted. Is the property located in a HUD Identified Special Flood Hazard Area?
COMMENTS (including any easements or encroachments or any nonconforming use(s) of present improvements)
FHLMC Form 71B-Rev. 8/77 [Y2K]
Page 1
Form 71B1 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Existing
Approx. Year Built
Proposed 1870 No. of Rooms 5 Basic Structural System Masonry Interior Walls Sheetrock/Plaster/Panel Insulation Unknown No. of Bldgs.
No. of Units
1
Heating:
Central
DESCRIPTION OF IMPROVEMENTS
Air Conditioning:
Individ. Automatic
0 None
Security Features
Kitchen cabinets, drawers and counter space Range/Oven Refrigerator Hot Water Heater(s)
Elevator
No. of Baths
Adequate
Inadequate
Fan/Hood
Dishwasher
Disposal
Washer
Dryer
Electrical Service Recreational Facilities
No. of Stories
5
Row or Townhouse
3 Open Roof Covering Asphalt Bath Floor and Walls Vinyl Type
Adequacy and Soundproofing Condition
Unknown
Avg
Adequacy and Condition
N/A
Good
OVERALL PROPERTY RATING
Avg.
Fair
Poor
General appearance of property Quality of construction (materials and finish) Condition of improvements
Unknown 1 bath per unit, 1 kitchen per unit Unknown None
Plumbing Fixtures
Walk-up
Parking Spaces: No. 5 Exterior Walls Brick/Vinyl Floors Wood/Carp/Vinyl Adequacy Unknown Type Gas on Gas Fuel Gas Describe None Adequacy and Condition 0 N/A
Individ.
Central
Elevator(s): Number
Under Construction
21
Rooms size and layout Closets and storage Plumbing-adequacy and condition Electrical-adequacy and condition Amenities and parking facilities
30
Effective Age
Yrs.
40
Estimated Remaining Economic Life
Appeal to market
Yrs.
COMMENTS: (Special features, functional or physical inadequacies, repairs needed, modernization, etc.)
This appraisal is based upon an exterior only inspection from the street. Available information has also been derived from the tax records and a recent MLS listing (2012). Based upon the available data, the property is judged to be in fair condition. The tax records indicate that the home is 52% depreciated. The prior MLS listing indicates that the property "needs rehab."
LAND SALES (complete ONLY if appropriate for this appraisal) 1.
Zoning
19 Kinney Ave, Norwich, CT 06360
Area
Sales Price
MF
.03
/ $
Date
5,500
Price per Sq. Ft. or per Unit $
5/10/2013
Per
183,333
2.
/ $
$
Per
3.
/ $
$
Per
acre acre
Comments & Reconciliation Estimated Land Value
$
11,000
COST APPROACH
APARTMENT BUILDING(S)-ESTIMATED REPRODUCTION COST NEW X
30.00 30.00
=
50.00 10.00
X X
Sq. ft. X
1,500 300
= =
OTHER IMPROVEMENTS
3 1
Sq. ft. X Sq. ft. X
(Stories) =
4,500 300
(Stories) = (Stories) =
Sq. ft. X $
$
75.00 40.00
Sq. ft. X $
337,500 12,000
$
Sq. ft. X $
$ $
Porches
20,000 20,000
$
Basement
$ TOTAL ESTIMATED COST NEW OF IMPROVEMENTS
$
389,500 -186,960 171,748 11,000 182,748
LESS DEPRECIATION DEPRECIATED VALUE OF IMPROVEMENTS
$
ADD-ESTIMATED LAND VALUE
$
INDICATED VALUE BY THE COST APPROACH (IN FEE SIMPLE)
$
IF LEASEHOLD DEDUCT VALUE OF FEE INTEREST (ATTACH CALCULATIONS)
$
INDICATED VALUE BY THE COST APPROACH (LEASEHOLD)
ITEM
$
COMPARABLE NO. 1
Address
320 Laurel Hill Ave Norwich, CT 06360 2.06 miles SW 11/24/2014 No. Units No. Vacant 4 4 family
Proximity to subj. Rntl. survey date
Brief description
COMPARABLE NO. 2
Age
1
124
17 Railroad Ave Norwich, CT 06360 3.98 miles N 11/24/2014 No. Units No. Vacant 4 4 family
Yrs
COMPARABLE NO. 3
0
Age
139
241 North Main St Norwich, CT 06360 0.68 miles SW 11/24/2014 No. Units 4 No. Vacant 1 Two 2 family homes on one lot.
Yrs
Age
134
Yrs
COMPARABLE RENTAL DATA
of property improvements Rm. Count Individual
Tot BR
unit
b
4 2 1 3 2 1 4 2 1 4 2 1 Water/Sewer
breakdown
Utilities, furniture and amenities included in rent Comparison
Size Sq. Ft.
675 600 800 900
Monthly Rent
Rm. Count
/
$
650 675 800 750
0.96 1.13 1.00 0.83
Rm
Tot BR
163 225 200 188
concessions,
Monthly Rent
Sq. Ft.
/
$
4 2 1 624 4 2 1 624 5 3 1 1,092 5 3 1 1,092 Water/Sewer
Average condition, some units updated, central heating system and electric baseboard, dated mechanicals.
to subject including rental
Size
b
350 500 500 400
Rm. Count Rm
Tot BR
0.56 88 0.80 125 0.46 100 0.37 80
Size b
Sq. Ft.
5 3 1 4 2 1 4 2 1 4 2 1 Water/Sewer
Average condition, separate utilities.
914 704 600 600
Monthly Rent /
$
0 625 450 0
Rm
0.89 156 0.75 113
Average condition, individual heating systems and separate utilities.
if any
Utilities included in actual rents:
Water
Gas
Heat
Electric
Air Conditioning
Utilities included in forecasted rents:
Water
Gas
Heat
Electric
Air Conditioning
Unit RM Count
MONTHLY RENT SCHEDULE SUBJECT
No.of Units
Tot. BR
b
Total Rooms
Sq Ft
No.
Area
Units
Per Unit
Vacant
5
4 5
2 3
TOTAL
FHLMC FORM 71B - Rev. 8/77
1 1
16 5
17
750 1,500
FORECASTED RENTS
ACTUAL RENTS Per Unit Unfurnished $
4 1
Unknown
Furnished $
Per Unit
Total Unfurnished
Rents $
0 0
$
Furnished $
Per Sq. Ft. or Room
$
400 600
$
Total Rents
c| $
1,600 600
$
0.53 0.40
100 120
2,200 Page 2
ITEM
SUBJECT
Address
COMPARABLE NO. 1
562 N Main St Norwich, CT 06360
Proximity to subject Map code
35980 2,750
Lot size Brief description of
No. Units:
No. Vac. 5 0 1870 5 unit multifamily, 3 stories
building
Year Built:
improvements
Quality Condition Recreational facilities Parking Tenant appeal
Garage Location
Avg Fair None
5 on site estimated Avg None Neutral/Mixed Use
4 on site Avg None Neutral/Residential
None Avg + None Beneficial/Residential
6 on site Avg None Neutral/Residential
MARKET APPROACH
UNIT ROOM COUNT
No. of
Date of sale
UNIT ROOM COUNT
No. of
UNIT ROOM COUNT
No. of
UNIT ROOM COUNT
Units
Total
BR
Bath
Units
Total
BR
Bath
Units
Total
BR
Bath
Units
Total
BR
Bath
1 4
5 4
3 2
1 1
2 2
4 5
2 3
1 1
1 5
6 3
3 1
1 1
4 2
3 4
1 2
1 1
Water/Sewer Exterior Inspection $ Unf. N/A N/A N/A N/A
Sale-Listing-Offer
1
Avg Avg None
breakdown
Price
0
34-36 5th St Norwich, CT 06360 0.33 miles SW 35980 .16 ac No. Units: No. Vac. 6 0 Year Built: 1880 6 unit multifamily consisting of two 3 unit buildings
Avg Avg None
Unit
Data source
COMPARABLE NO. 3
57 Broad St Norwich, CT 06360 1.31 miles W 35980 .57 ac No. Units: No. Vac. 6 Year Built: 1850 6 unit multifamily 3 story wood frame
Avg Fair None
No. of
Util. paid by owner
COMPARABLE NO. 2
17-19 Railroad Ave Norwich, CT 06360 4.00 miles N 35980 .24 ac No. Units: No. Vac. 4 Year Built: 1875 4 unit multifamily 2.5 story wood frame
Water/Sewer MLS# E263819, DOM $ Unf. 84,900 LP $79,900 04/10/2014 Estate Sale Conventional Financing $67,920 mortgage
F
Terms (Including conditions
All MLS# E257751, DOM 79 $ Unf. 135,000 LP $195,000 01/25/2013 Arms Length Sale Conventional Financing $94,500 mortgage
F
F
Water/Sewer MLS# E264199, DOM 66 $ Unf. 86,000 LP $100,000 05/22/2013 Arms Length Sale Conventional Financing $105,000 mortgage
F
of sale and financing terms) Complete as many of the following items as possible using data effective at time of sale
Gross Annual Income
$
26,400
$
8,700 47.05
$
$
21,000 4.04 13,701 34.76 16.14 21,225 4,717
$
24.74 /sq. ft. bldg. area
Gross Ann. Inc. Mult. (1) Net Annual Income Expense Percentage (2)
$ %
Overall Cap. Rate (3)
%
Price per unit
$
Price per room
$
Price gross bldg. area
$
$ /sq. ft. bldg. area
$
39,600 3.41 19,478 50.81 14.43 22,500 6,429
$ % % $ $ $
23.61 /sq. ft. bldg. area
$
40,800 2.11 22,800 44.12 26.51 14,333 4,095
$ % % $ $ $
% %
19.31 /sq. ft. bldg. area
(1) Sale Price / Gross Annual Income (2) Total Annual Expenses / Total Gross Annual Income (3) Net Annual Income / Price RECONCILIATION:
See attached addenda.
INDICATED VALUE BY MARKET APPROACH INCOME
$
Total Monthly Apartment Forecasted Rents Other Monthly Income (Itemize)
Real Estate Taxes*
2,200
$ $ $
Total Gross Annual Forecasted Income (
Less Forecasted Vacancy and Collection Loss
5
%)
$(
Effective Gross Annual Income
$
Less Forecasted Expenses & Replacement Reserves
$(
Net Annual Income from Total Property
$
INCOME APPROACH
@
3,793
FORECASTED
$
Insurance
2,200 26,400 1,320 25,080 16,380 8,700
3,800 2,000
Unsubordinated ground rent Fuel )
Gas Electricity
)
Water and sewer
2,160 720
Trash removal
Less Return on and Recapture of Depreciated Value of ($
ACTUAL
$
Other taxes or licenses
None
Total Gross Monthly Forecasted Income
Furnishings
70,000 EXPENSES
Pest control %)
$(
)
$
Net Annual Income from Real Property
8,700
Maintenance and repairs
3,000
Interior and exterior decorating
Capitalized as follows:
Cleaning expenses and supplies
See attached addenda. The subject NOI has been capitalized at 16% based upon the OAR range provided by the three market comparables.
Management (Off-site)
200 1,500
Res. Mgr. salary & apartment Janitor(s) salary & apartment Miscellaneous
*Real Est. Taxes Total Assessed Value $ Comments:
Actual
82,600
Est. Tax Rate Per $100
$
3,793 REPLACEMENT RESERVES Carpeting and drapes Ranges and refrigerators Dishwashers and disposals Individual heating & AC units
Roof/Structural TOTAL EXPENSES & REPL. RES. INDICATED VALUE BY INCOME APPROACH $
FHLMC FORM 71B - Rev. 8/77
$
3,793
$
3,000 16,380
54,375 Page 3
GENERAL COMMENTS (Including comments on any items rated poor or fair)
The subject property is a 5 unit multifamily property. It is located in the Greenville section of Norwich. The property was sold in 2012 as a four unit property for $14,000 per unit. As of the date of sale, the property appears to have been occupied, but according to the listing agent, required rehab. The tax records indicate that the property is a 5 unit apartment building. This appraiser assumes that a large fourth unit has since been converted to two smaller units, thereby increasing the number of units since the prior sale. This appraiser also assumes that the overall condition of the property has not significantly changed since the last sale. The last sale, which was owner financed, may have been at a below market price, though the property had been on the market for 221 days, and was adequately exposed. This appraisal is based upon the assumption that the property is in overall fair condition, but that the property is in rentable condition and is still capable of generating rental income.
CONDITIONS AND REQUIREMENTS OF APPRAISAL (include required repairs, replacements, painting, termite inspections, etc.)
See attached addenda.
RECONCILIATION AND VALUE CONCLUSION
Indicated Value by the Cost Approach
$
182,748
Indicated Value by the Market Approach
$
70,000
Indicated Value by the Income Approach
$
54,375
FINAL RECONCILIATION
Primary emphasis is placed upon the Sales Comparison Approach (aka Market Approach). The Sales Comparison Approach is based upon the best available data. The Cost Approach has been developed but is not relied upon due to the age of the subject improvement. The Income Approach relies upon estimated market rental data. Expenses are based upon both estimated expenses. The OAR has been derived from market comparables.
I certify, that to the best of my knowledge and belief, the statements made in this report are true and I have not knowingly withheld any significant information; that I have personally inspected subject property, both inside and outside, and have made an exterior inspection of all comparable sales listed herein; that I have no interest, present or contemplated, in subject property or the participants in the sale; that neither the employment nor compensation to make said appraisal is contingent upon any value estimate; and, that all contingent and limiting conditions are stated herein. (FHLMC Form 439 Rev. 6/93) applies
(
Certification and Statement of Limiting Conditions
on file with Client
Attached).
As a result of my investigation and analysis, my estimate of Market Value of the subject property as of $
Date
is
11/18/2014
70,000
Appraiser
11/24/2014
If applicable, complete the following Date
Robert H. Champagne
Appraiser
Date
Supervising or
Review Appraiser Did
Did Not Physically Inspect Property
FOR LENDER'S USE ONLY (completion optional) Loan Recommended $
@
%.
Term
yrs.
Principal & Interest $
/mo. $
/annually
Subject to:
Borrower's Cost or Purchase Price Loan: Per Unit
$
$
Gross Annual Forecasted Income
Appraised Value $ Gross Annual Income Multiplier $
Borrower's Return on Appraised Equity
Overall Capitalization Rate
(
$
) / (Gross Annual Income $
+ Annual P & I pymts. for all financing $ (Net Annual Inc.
$
(Appraised Value $
%
% of Gross Annual Forecasted Income)
+ Annual P & I pymts. $
(All financing) : (Annual Exp & RR $
%
Per Sq. Ft. of Building Area $
$
Forecasted Annual Expenses and Replacement Reserves Break-even Point (this loan): (Annual Exp. & RR
Loan to Appraised Value
Per Room $
) / (Gross Annual Inc. $
(-) Annual P & I pymts $
)=$
(-) Loan Amt. $ $
%
)=
%
(1)
)=$ (1) / $
)=
(2) (2) =
%
Comments or Committee Action
FHLMC FORM 71B - Rev. 8/77
Page 4
Form 71B1 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Assumptions & Limiting Conditions Property Address:
File No.:
City:
562 N Main St
Norwich
State:
CT
KNL-CV-14-6020143-S 141105c Zip Code: 06360-3261
Building Name (if applicable):
Client:
Appraiser:
Attorney Donna R. Skaats Robert H. Champagne
Address:
Address:
116 Sachem St, Norwich, CT 06360 185 Randall Rd, Lebanon, CT 06249
STATEMENT OF ASSUMPTIONS & LIMITING CONDITIONS: - The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible ownership. The future operation of the property assumes skilled and adequate management but are not represented to be historically based. - The appraiser may have provided a sketch in the appraisal report to show approximate dimensions of the improvements, and any such sketch is included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of its size. Unless otherwise indicated, a Land Survey was not performed. - If so indicated, the appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. - The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand. - If the cost approach is included in this appraisal, the appraiser has estimated the value of the land in the cost approach at its highest and best use, and the improvements at their contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. Unless otherwise specifically indicated, the cost approach value is not an insurance value, and should not be used as such. - The appraiser has noted in the appraisal report any adverse conditions (including, but not limited to, needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property, or that he or she became aware of during the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property, or adverse environmental conditions (including, but not limited to, the presence of hazardous wastes, toxic substances, etc.) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment of the property. - The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties. All information furnished regarding rental rates, lease terms, or projections of income and expense is from sources deemed reliable. No warranty or representation is made as to the accuracy thereof. - The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice, and any applicable federal, state or local laws. - If this appraisal is indicated as subject to satisfactory completion, repairs, or alterations, the appraiser has based his or her appraisal report and valuation conclusion on the assumption that completion of the improvements will be performed in a workmanlike manner. - An appraiser's client is the party (or parties) who engage an appraiser in a specific assignment. Any other party acquiring this report from the client does not become a party to the appraiser-client relationship. Any persons receiving this appraisal report because of disclosure requirements applicable to the appraiser's client do not become intended users of this report unless specifically identified by the client at the time of the assignment. - The appraiser's written consent and approval must be obtained before this appraisal report can be conveyed by anyone to the public, through advertising, public relations, news, sales, or by means of any other media, or by its inclusion in a private or public database. - An appraisal of real property is not a 'property inspection' and should not be construed as such. As part of the valuation process, the appraiser performs a non-invasive visual inventory that is not intended to reveal defects or detrimental conditions that are not readily apparent. The presence of such conditions or defects could adversely affect the appraiser's opinion of value. Clients with concerns about such potential negative factors are encouraged to engage the appropriate type of expert to investigate. - Values for various components of the subject parcel and improvements or the value derived by one or two approaches to value as contained within this report are valid only when making a summation or final opinion of value and are not to be used independently for any purpose and must be considered invalid if so used. A separate report on only a part of a whole property, particularly if the reported value exceeds the value that would be derived if the property were considered separately as a whole, must be stated as a fractional report. - Forecasts of effective demand for the highest and best use or the best fitting and most appropriate use were based on the best available data concerning the market and are subject to conditions of economic uncertainty about the future.
HYPOTHETICAL CONDITIONS and/or EXTRAORDINARY ASSUMPTIONS (if applicable): This appraisal is based upon an exterior inspection only. As part of this appraisal, I have relied upon the available data in estimating the condition of the subject property. The data sources utilized include the tax records, a prior MLS listing, and an exterior inspection. The subject property sold on 8/31/2012 for $56,500. According to the listing agent, the property needed "rehab." The tax records indicate that the property is more than 50% depreciated. As of the date of sale, the property was advertised as a four unit property. The tax records indicate that it is a 5 unit home. As the tax records are more up to date, reliance has been placed upon the tax records in describing the subject property. This appraiser assumes that a large fourth unit has been converted to two small units since the prior sale. The permit history indicates that a building permit was obtained on 2/3/2014 for minor electric repairs, though this repair does not appear to have been completed. This is the only permit on record since the prior date of sale. As a result, this appraiser assumes that no additional work has been completed on the property, and that the property is in more or less the same condition as it was when purchased in 2012. In summary, this appraiser has relied upon the extraorindary assumption that the condition of the property is fair, similar to its condition in 2012. The value conclusion in this appraisal has been affected by the adoption of this assumption.
Copyright© 2007 by a la mode, inc. This form may be reproduced unmodified without written permission, however, a la mode, inc. must be acknowledged and credited.
Form GPSMCOM2AD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
12/2013
Scope of Work & Definitions Property Address:
File No.:
City:
562 N Main St
Norwich
State:
CT
KNL-CV-14-6020143-S 141105c Zip Code: 06360-3261
Building Name (if applicable):
Client:
Appraiser:
Address:
Attorney Donna R. Skaats Robert H. Champagne
Address:
116 Sachem St, Norwich, CT 06360 185 Randall Rd, Lebanon, CT 06249
SCOPE OF WORK: The Scope of Work is the type and extent of research and analyses performed in an appraisal assignment that is required to produce credible assignment results, given the nature of the appraisal problem, the specific requirements of the intended user(s) and the intended use of the appraisal report. Reliance upon this report, regardless of how acquired, by any party or for any use, other than those specified in this report by the Appraiser, is prohibited. The Opinion of Value that is the conclusion of this report is credible only within the context of the Scope of Work, Effective Date, the Date of Report, the Intended User(s), the Intended Use, the stated Assumptions and Limiting Conditions, any Hypothetical Conditions and/or Extraordinary Assumptions, and the Type of Value, as defined herein. The appraiser, appraisal firm, and related parties assume no obligation, liability, or accountability, and will not be responsible for any unauthorized use of this report or its conclusions.
Additional Scope of Work Comments: This appraisal is based upon an exterior inspection only. This appraiser was not able to inspect the interior of the property, nor was this appraiser provided with a current rent roll or income expense pro-forma. All opinions of rental data for the subject property are based upon this appraiser's own estimate of condition of the property, as well as a reliance upon tax records and MLS listings.
DEFINITIONS: DEFINITION OF MARKET VALUE *: Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and 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 acting in what they consider their own best interests; 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. * This definition is from regulations published by federal regulatory agencies pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 between July 5, 1990, and August 24, 1990, by the Federal Reserve System (FRS), National Credit Union Administration (NCUA), Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS), and the Office of Comptroller of the Currency (OCC). This definition is also referenced in regulations jointly published by the OCC, OTS, FRS, and FDIC on June 7, 1994, and in the Interagency Appraisal and Evaluation Guidelines, dated October 27, 1994.
Copyright© 2007 by a la mode, inc. This form may be reproduced unmodified without written permission, however, a la mode, inc. must be acknowledged and credited.
Form GPSMCOM2AD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
12/2013
Certifications Property Address:
File No.:
City:
562 N Main St
State:
Norwich
CT
KNL-CV-14-6020143-S 141105c Zip Code: 06360-3261
Building Name (if applicable):
Client:
Appraiser:
Address:
Attorney Donna R. Skaats Robert H. Champagne
116 Sachem St, Norwich, CT 06360 185 Randall Rd, Lebanon, CT 06249
Address:
APPRAISER'S CERTIFICATION: I certify that, to the best of my knowledge and belief: - The statements of fact contained in this report are true and correct. - The credibility of this report, for the stated use by the stated user(s), of the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. - I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. - Unless otherwise indicated, I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. - I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. - My engagement in this assignment was not contingent upon developing or reporting predetermined results. - My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. - My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice that were in effect at the time this report was prepared. - I did not base, either partially or completely, my analysis and/or the opinion of value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property, or of the present owners or occupants of the properties in the vicinity of the subject property. - Unless otherwise indicated, I have made a personal inspection of the property that is the subject of this report. - Unless otherwise indicated, no one provided significant real property appraisal assistance to the person(s) signing this certification.
ADDITIONAL CERTIFICATIONS:
Client Name:
Client Contact:
E-mail:
Address:
Attorney Donna R. Skaats 116 Sachem St, Norwich, CT 06360 SUPERVISORY APPRAISER (if required)
APPRAISER
SIGNATURES
or CO-APPRAISER (if applicable)
Supervisory or Co-Appraiser Name:
Appraiser Name:
Robert H. Champagne Company: Champagne Appraisals Fax: Phone: (860) 884-1008 E-mail: [email protected] Date Report Signed: 11/24/2014 License or Certification #: RCG.0001242 Designation: Expiration Date of License or Certification: 04/30/2015 Inspection of Subject: Date of Inspection:
Interior & Exterior
11/18/2014
Exterior Only
Company:
Fax:
Phone:
E-mail:
Date Report Signed: State:
CT
State:
License or Certification #:
Designation: Expiration Date of License or Certification: None
Inspection of Subject:
Interior & Exterior
Exterior Only
None
Date of Inspection: Copyright© 2007 by a la mode, inc. This form may be reproduced unmodified without written permission, however, a la mode, inc. must be acknowledged and credited.
Form GPSMCOM2AD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
12/2013
Supplemental Addendum Borrower Property Address City
Lender/Client
N/A 562 N Main St Norwich Attorney Donna R. Skaats
County
New London
File No.
State
CT
141105c
Zip Code
06360-3261
• 71B: RECON_1 Market Approach The three market sales have been selected based upon proximity, date of sale, and physical similarity. The multifamily investment market in the southeastern Connecticut region has seen very limited activity in the prior 24 months. There have been few sales of 4-8 unit multifamily homes in the search area. As a result, it has been necessary to utilize sales that vary in number of units. Sales that occurred up to 24 months prior to the effective date of this appraisal have been considered. A large number of the multifamily sales in Norwich are REO sales. This appraiser has attempted to utilize non-REO sales, as foreclosure sales do not meet the criteria of the market value definition utilized in this appraisal. Sales #1 & #3 similar locations to the subject. Sale #2 has a significantly superior location to that of the subject. Sales #1 & #2 have been adequately maintained, and are in superior condition. Sale #3 requires work and appears to be in comparable condition. Sale #1 contains four units, while sales #2 & #3 both contain 6 units. No recent comparable sales of 5 unit properties were available in Norwich. The three sales provide a range of $14,333 - $22,500 per unit. Sales #1 & #2 have required adjustments for condition and location. Sale #3 has a comparable location and appears to be in comparable condition. As a result, primary weight is placed on this sale, indicating a price per unit of $14,000 for the subject. 5 units @ $14,000 = $70,000. • 71B: COND_REQ_APPR1 The subject property is appraised in its "as is" condition. No necessary repairs were noted upon inspection. This appraisal is
based upon an exterior inspection only. As part of this appraisal, I have relied upon the available data in estimating the condition of the subject property. The data sources utilized include the tax records, a prior MLS listing, and an exterior inspection. The subject property sold on 8/31/2012 for $56,500. According to the listing agent, the property needed "rehab." The tax records indicate that the property is more than 50% depreciated. As of the date of sale, the property was advertised as a four unit property. The tax records indicate that it is a 5 unit home. As the tax records are more up to date, reliance has been placed upon the tax records in describing the subject property. This appraiser assumes that a large fourth unit has been converted to two small units since the prior sale. The permit history indicates that a building permit was obtained on 2/3/2014 for minor electric repairs, though this repair does not appear to have been completed. This is the only permit on record since the prior date of sale. As a result, this appraiser assumes that no additional work has been completed on the property, and that the property is in more or less the same condition as it was when purchased in 2012. In summary, this appraiser has relied upon the extraorindary assumption that the condition of the property is fair, similar to its condition in 2012. The value conclusion in this appraisal has been affected by the adoption of this assumption.
Form TADD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Subject Photo Page Borrower Property Address City
Lender/Client
N/A 562 N Main St Norwich Attorney Donna R. Skaats
County
New London
State
Zip Code
CT
06360-3261
Subject Front 562 N Main St Sales Price Gross Building Area Age
N/A 4,800 1870
Subject Rear
Subject Street
Form PICPIX.SC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Subject Photo Page Borrower Property Address City
Lender/Client
N/A 562 N Main St Norwich Attorney Donna R. Skaats
County
New London
State
Zip Code
CT
06360-3261
Subject side 562 N Main St Sales Price Gross Building Area Age
N/A 4,800 1870
Street Scene
Form PICPIX.SC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Comparable Photo Page Borrower Property Address City
Lender/Client
N/A 562 N Main St Norwich Attorney Donna R. Skaats
County
New London
State
CT
Zip Code
06360-3261
Comparable 1 17-19 Railroad Ave Sales Price 84,900 G.B.A. 3,432 Age/Yr. Blt. 1875
Comparable 2 57 Broad St Sales Price G.B.A. Age/Yr. Blt.
135,000 5,719 1850
Comparable 3 34-36 5th St Sales Price G.B.A. Age/Yr. Blt.
Form PICPIX.CC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
86,000 4,454 1880
Location Map Borrower Property Address City
Lender/Client
N/A 562 N Main St Norwich Attorney Donna R. Skaats
County
New London
State
Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
CT
Zip Code
06360-3261
Location Map Borrower Property Address City
Lender/Client
N/A 562 N Main St Norwich Attorney Donna R. Skaats
County
New London
State
Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
CT
Zip Code
06360-3261
Flood Map Borrower Property Address City
Lender/Client
N/A 562 N Main St Norwich Attorney Donna R. Skaats
County
New London
State
Form MAP.FLOOD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
CT
Zip Code
06360-3261
Plat Map Borrower Property Address City
Lender/Client
N/A 562 N Main St Norwich Attorney Donna R. Skaats
County
New London
State
Form MAP.PLAT - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
CT
Zip Code
06360-3261
Assessor's Card
Form SCNLGL - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Assessor's Card 2
Form SCNLGL - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Legal Description
Form SCNLGL - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
File No.
141105c
Robert Champagne Champagne Appraisals Certified General Appraiser 185 Randall Rd, Lebanon, CT 06249 Phone: (860) 884 1008 Fax: (860) 886 0452 [email protected] EDUCATION Bachelor of Arts, History. Trinity College, 2001. Graduated cum laude, member of Phi Beta Kappa honorary society. Successfully completed courses Appraisal I, Appraisal II, & National U.S.P.A.P. University of Connecticut, 2003. Completed course load requirements for both Certified Residential Appraiser (120 hours) and Certified General Appraiser (180 hours), A Professional Real Estate and Valuation School, Clinton, CT (2006-2007). PROFESSIONAL HISTORY IN REAL ESTATE Mr. Champagne entered the appraisal business in early 2004 and is a Connecticut Certified General appraiser. Since 2008, he has been the sole proprietor of Champagne Appraisals, a small appraisal company specializing in real estate valuations in southeastern Connecticut. Mr. Champagne has been affiliated with Connecticut Commercial Realty in New London, CT, since 2005 and has functioned as their sole staff appraiser since that date. He received his General Certification in Connecticut in 2009. Mr. Champagne has experience appraising a wide variety of residential and commercial properties, and is an approved FHA appraiser. He lives in Lebanon, CT and has experience in building construction and restoration. General Certification # RCG.0001242 Years of Appraisal Experience: 10
Form DCVR - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Champagne Appraisals
INVOICE
FROM:
Robert Champagne
INVOICE NUMBER
Champagne Appraisals
141105c
185 Randall Rd
DATES Invoice Date:
Lebanon, CT 06249 Telephone Number:
860 884 1008
Fax Number:
11/24/2014
Due Date:
860 886 0452
REFERENCE Internal Order #:
TO:
141105c
Lender Case #:
Attorney Donna R. Skaats
Client File #:
116 Sachem St
FHA/VA Case #:
Norwich, CT 06360
Main File # on form:
141105c
Other File # on form:
KNL-CV-14-6020143-S
E-Mail:
[email protected]
Telephone Number:
(860) 886-9322
KNL-CV-14-6020143-S
Federal Tax ID:
Fax Number:
Employer ID:
Alternate Number:
36-4666768
DESCRIPTION Lender: Purchaser/Borrower: Property Address: City: County: Legal Description:
Client:
Attorney Donna R. Skaats N/A 562 N Main St Norwich New London Volume 2750, Page 48
Attorney Donna R. Skaats
State:
CT
Zip:
06360-3261
FEES
AMOUNT
Commercial Multifamily (5+ units)
900.00
SUBTOTAL
900.00
PAYMENTS
AMOUNT
Check #:
Date:
Description:
Check #:
Date:
Description:
Check #:
Date:
Description:
SUBTOTAL
Please make check payable to Champagne Appraisals. Thank you.
Form NIV5D - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
TOTAL DUE
$
900.00
LOCATED AT 562 N Main St Norwich, CT 06360-3261 Volume 2750, Page 48
FOR Attorney Donna R. Skaats 116 Sachem St Norwich, CT 06360
OPINION OF VALUE 70,000
AS OF 11/18/2014
BY Robert H. Champagne Champagne Appraisals 185 Randall Rd Lebanon, CT 06249 (860) 884-1008 [email protected] www.champagneappraisals.com
Form GA1V - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Borrower Property Address City
Lender/Client
N/A 562 N Main St Norwich Attorney Donna R. Skaats
File No. County
New London
State
CT
141105c Zip Code
06360-3261
TABLE OF CONTENTS
Cover Page .............................................................................................................................................................................................................................................................................................................. 1 Summary of Salient Features ................................................................................................................................................................................................................................................................................... 2 71B ......................................................................................................................................................................................................................................................................................................................... 3 GP Commercial Certifications Addendum ................................................................................................................................................................................................................................................................. 7 Supplemental Addendum ......................................................................................................................................................................................................................................................................................... 10 Subject Photos ........................................................................................................................................................................................................................................................................................................ 11 Subject Photos ........................................................................................................................................................................................................................................................................................................ 12 Comparable Photos 1-3 ........................................................................................................................................................................................................................................................................................... 13 Location Map .......................................................................................................................................................................................................................................................................................................... 14 Location Map .......................................................................................................................................................................................................................................................................................................... 15 Flood Map ............................................................................................................................................................................................................................................................................................................... 16 Plat Map .................................................................................................................................................................................................................................................................................................................. 17 Assessor's Card ...................................................................................................................................................................................................................................................................................................... 18 Assessor's Card 2 ................................................................................................................................................................................................................................................................................................... 19 Legal Description ..................................................................................................................................................................................................................................................................................................... 20 Resume ................................................................................................................................................................................................................................................................................................................... 21
Form TOCNP - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
CLIENT
SALES PRICE
SUBJECT INFORMATION
SUMMARY OF SALIENT FEATURES
Subject Address
562 N Main St
Legal Description
Volume 2750, Page 48
City
Norwich
County
New London
State
CT
Zip Code
06360-3261
Census Tract
09011-6964.00
Map Reference
35980
Sale Price
DESCRIPTION OF IMPROVEMENTS
APPRAISER
N/A
Date of Sale
N/A
Borrower
N/A
Lender/Client
Attorney Donna R. Skaats
Size (Square Feet)
4,252
Price per Square Foot
VALUE
$
$
Location
Avg
Age
1870
Condition
Fair
Total Rooms
21
Bedrooms
10
Baths
5
Appraiser
Robert H. Champagne
Date of Appraised Value
10/31/2012
Opinion of Value
$
70,000
Form SSD3 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Champagne Appraisals
APPRAISAL REPORT-RESIDENTIAL INCOME PROPERTY This form may be used for appraisal of income producing properties provided the loan requested does not exceed $750,000.
Borrower/Client City
County
State
New London
Terms of Sale
06360-3261
Date of Sale
N/A
Loan Requested $
N/A
N/A
N/A
Property Rights Appraised
Fee
Leasehold (attach completed Lease Analysis FHLMC Form 461) Lender's Address
Attorney Donna R. Skaats
116 Sachem St, Norwich, CT 06360
Instructions to Appraiser: The purpose of this appraisal is to estimate the current Market Value of the Subject Property. The Definition of Market Value is as set forth in Certification And Statement Of Limiting Conditions (FHLMC 439). Note: FHLMC/FNMA do not consider the racial composition of the neighborhood to be a relevant factor and it must not be considered in the appraisal.
Other Information Appraisal requested from
Date
Attorney Donna Skaats
By
10/23/2014
Attorney Donna Skaats
Items 1, 2, 4, 5, & 6 are required. Attach additional items and check box if items are considered appropriate for this appraisal or are requested by Lender. 1.
Descriptive photographs of subject property
7.
Map(s)
2.
Descriptive photographs of street scene
8.
Plot plan or survey
3.
Photographs of
9.
Qualifications of Appraiser
4.
Sketch or floor plan of typical units
10.
Lease Analysis FHLMC 461 (required if leasehold interest appraised)
5.
Owner's current certified rent roll if existing, or
11.
Summary of reciprocal agreements with other owners for use of parking,
pro forma if proposed or incomplete 6.
driveways, recreational facilities, private streets, (required if applicable)
Owner's income and expense statement
, or
12.
pro forma income and expense statement
13.
Location
Urban
Suburban
Rural
Built-up
Over 75%
25% to 75%
Under 25%
Present land use
5 20
Change in present land use
% Condominiums
20 5
% Commercial Not Likely
% 1-Family %
50
OVERALL RATING
Good
% Apartments
Taking Place (*) To
Police and Fire Protection Recreational Facilities
Stable
Declining
Property Compatibility
Housing demand/supply
In balance
Shortage
Oversupply
Protection from Detrimental Conditions
Predominant occupancy
Owner
Tenant
Age Price range $
Single Family:
Age Typical apartment:
5
to $ 225,000 25,000 yrs. to 42 yrs. 5 to $ 480,000 15,000 yrs. to 1 300 yrs. Type Multifamily No. Units 2 Age 100 yrs. Rent Levels:
Predominant $ Predominant Predominant $ Predominant No. Stories Condition
Increasing
5
Estimated neighborhood apartment vacancy rate
% Vacant
General Appearance of Properties
98,000 yrs. 30 115,000 yrs. 110
Appeal to Market
Stable
Employment Centers Grammar Schools
Declining
Decreasing
Distance Public Transportation Shopping Facilities
2 Avg
Stable
%
Poor
Convenience of Schools
Likely (*)
Increasing
Price range $
Fair
Adequacy of Utilities
Property values
Condominium:
Avg.
Employment Stability
Vacant
(*) From
NEIGHBORHOOD
Zip Code
CT
Volume 2750, Page 48
Current Sale Price (if applicable) $
Lender
141105c 35980 Census Tract 09011-6964.00 Map Reference
Norwich
Legal Description
TO BE COMPLETED BY LENDER
File No.
N/A 562 N Main St
Property Address
Freeway Access Increasing
Rent Controls
Access or Convenience
Bus only 1 mile 2 miles 1 mile 1 mile No
Yes (comments on page 4 if Yes)
Describe any incompatible land uses and overall property appeal and maintenance level
The subject neighborhood is a densely developed mixed use area in the Greenville section of Norwich. Commercial uses include automotive, office, retail, restaurant, and personal services. The majority of apartments are in older multifamily homes typically in average condition. Describe any oversupply of units in area by type and rental None. The rental market is relatively stable in the immediate neighborhood.
Describe any shortage of units in area by type and rental
None. Supply and demand appear to be near equilibrium, vacancy rates are relatively low.
Describe potential for additional units in area considering land availability, zoning, utilities, etc.
There is very little undeveloped land in the immediate neighborhood. The main potential for additional units would be through re-development. In the current economic climate, large scale redevelopment is unlikely. Is population of relevant market area of insufficient size, diversity and financial ability to support subject property and its amenities ? If yes, specify. No
Describe any probable changes in the economic base of neighborhood which would favorably or adversely affect apartment rentals(e.g. employment centers, zoning)
The immediate area is heavily dependent upon tourism, defense, and gaming. The gaming industry has been in decline since 2008, which has adversely affected the subject market. General comments including either favorable or unfavorable elements not mentioned (e.g. public parks, view, noise, parking congestion) None.
Dimensions
50 x 55
Zoning (classification, uses and densities permitted)
Area 2,750 Sq. ft. or Acres MF (Multifamily) 5,000 sf per dwelling unit, single and two family homes permitted, as well as Present Improvements
commercial uses. Present use
Highest and best use Public
Comm.
Individual
Street Surface
Electricity SITE
Other (specify)
Public Storm Sewer
Water
Curb & Gutter Underground Electricity & Telephone
Sep.Tnk.
Private
Sidewalk
Ingress and Egress (Adequacy) Topography
Asphalt
Gas Sanitary Sewer
do
do not conform to zoning regulations
The property is a legal non conforming use (grandfathered).
View Amenity
Drainage and Flood Conditions Alley
Street Lights
Adequate
Slope None Adequate: not located in
flood zone.
No The subject lot does not appear to meet current requirements for lot size for the present use and therefore appears to be a legal non-conforming lot. No adverse effect upon value noted. In case of loss from fire or natural disaster, the existing dwelling could be rebuilt on the existing footprint within 2 years of loss. No adverse effect on value noted. Is the property located in a HUD Identified Special Flood Hazard Area?
COMMENTS (including any easements or encroachments or any nonconforming use(s) of present improvements)
FHLMC Form 71B-Rev. 8/77 [Y2K]
Page 1
Form 71B1 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Existing
Approx. Year Built
Proposed 1870 No. of Rooms 5 Basic Structural System Masonry Interior Walls Sheetrock/Plaster/Panel Insulation Unknown No. of Bldgs.
No. of Units
1
Heating:
Central
DESCRIPTION OF IMPROVEMENTS
Air Conditioning:
Individ. Automatic
0 None
Security Features
Kitchen cabinets, drawers and counter space Range/Oven Refrigerator Hot Water Heater(s)
Elevator
No. of Baths
Adequate
Inadequate
Fan/Hood
Dishwasher
Disposal
Washer
Dryer
Electrical Service Recreational Facilities
No. of Stories
5
Row or Townhouse
3 Open Roof Covering Asphalt Bath Floor and Walls Vinyl Type
Adequacy and Soundproofing Condition
Unknown
Avg
Adequacy and Condition
N/A
Good
OVERALL PROPERTY RATING
Avg.
Fair
Poor
General appearance of property Quality of construction (materials and finish) Condition of improvements
Unknown 1 bath per unit, 1 kitchen per unit Unknown None
Plumbing Fixtures
Walk-up
Parking Spaces: No. 5 Exterior Walls Brick/Vinyl Floors Wood/Carp/Vinyl Adequacy Unknown Type Gas on Gas Fuel Gas Describe None Adequacy and Condition 0 N/A
Individ.
Central
Elevator(s): Number
Under Construction
21
Rooms size and layout Closets and storage Plumbing-adequacy and condition Electrical-adequacy and condition Amenities and parking facilities
30
Effective Age
Yrs.
40
Estimated Remaining Economic Life
Appeal to market
Yrs.
COMMENTS: (Special features, functional or physical inadequacies, repairs needed, modernization, etc.)
This appraisal is based upon an exterior only inspection from the street. Available information has also been derived from the tax records and a recent MLS listing (2012). Based upon the available data, the property is judged to be in fair condition. The tax records indicate that the home is 52% depreciated. The prior MLS listing indicates that the property "needs rehab."
LAND SALES (complete ONLY if appropriate for this appraisal) 1.
Zoning
19 Kinney Ave, Norwich, CT 06360
Area
Sales Price
MF
.03
/ $
Date
5,500
Price per Sq. Ft. or per Unit $
5/10/2013
Per
183,333
2.
/ $
$
Per
3.
/ $
$
Per
acre acre
Comments & Reconciliation Estimated Land Value
$
11,000
COST APPROACH
APARTMENT BUILDING(S)-ESTIMATED REPRODUCTION COST NEW X
30.00 30.00
=
50.00 10.00
X X
Sq. ft. X
1,500 300
= =
OTHER IMPROVEMENTS
3 1
Sq. ft. X Sq. ft. X
(Stories) =
4,500 300
(Stories) = (Stories) =
Sq. ft. X $
$
75.00 40.00
Sq. ft. X $
337,500 12,000
$
Sq. ft. X $
$ $
Porches
20,000 20,000
$
Basement
$ TOTAL ESTIMATED COST NEW OF IMPROVEMENTS
$
389,500 -186,960 171,748 11,000 182,748
LESS DEPRECIATION DEPRECIATED VALUE OF IMPROVEMENTS
$
ADD-ESTIMATED LAND VALUE
$
INDICATED VALUE BY THE COST APPROACH (IN FEE SIMPLE)
$
IF LEASEHOLD DEDUCT VALUE OF FEE INTEREST (ATTACH CALCULATIONS)
$
INDICATED VALUE BY THE COST APPROACH (LEASEHOLD)
ITEM
$
COMPARABLE NO. 1
Address
320 Laurel Hill Ave Norwich, CT 06360 2.06 miles SW 11/24/2014 No. Units No. Vacant 4 4 family
Proximity to subj. Rntl. survey date
Brief description
COMPARABLE NO. 2
Age
1
124
17 Railroad Ave Norwich, CT 06360 3.98 miles N 11/24/2014 No. Units No. Vacant 4 4 family
Yrs
COMPARABLE NO. 3
0
Age
139
241 North Main St Norwich, CT 06360 0.68 miles SW 11/24/2014 No. Units 4 No. Vacant 1 Two 2 family homes on one lot.
Yrs
Age
134
Yrs
COMPARABLE RENTAL DATA
of property improvements Rm. Count Individual
Tot BR
unit
b
4 2 1 3 2 1 4 2 1 4 2 1 Water/Sewer
breakdown
Utilities, furniture and amenities included in rent Comparison
Size Sq. Ft.
675 600 800 900
Monthly Rent
Rm. Count
/
$
650 675 800 750
0.96 1.13 1.00 0.83
Rm
Tot BR
163 225 200 188
concessions,
Monthly Rent
Sq. Ft.
/
$
4 2 1 624 4 2 1 624 5 3 1 1,092 5 3 1 1,092 Water/Sewer
Average condition, some units updated, central heating system and electric baseboard, dated mechanicals.
to subject including rental
Size
b
350 500 500 400
Rm. Count Rm
Tot BR
0.56 88 0.80 125 0.46 100 0.37 80
Size b
Sq. Ft.
5 3 1 4 2 1 4 2 1 4 2 1 Water/Sewer
Average condition, separate utilities.
914 704 600 600
Monthly Rent /
$
0 625 450 0
Rm
0.89 156 0.75 113
Average condition, individual heating systems and separate utilities.
if any
Utilities included in actual rents:
Water
Gas
Heat
Electric
Air Conditioning
Utilities included in forecasted rents:
Water
Gas
Heat
Electric
Air Conditioning
Unit RM Count
MONTHLY RENT SCHEDULE SUBJECT
No.of Units
Tot. BR
b
Total Rooms
Sq Ft
No.
Area
Units
Per Unit
Vacant
5
4 5
2 3
TOTAL
FHLMC FORM 71B - Rev. 8/77
1 1
16 5
17
750 1,500
FORECASTED RENTS
ACTUAL RENTS Per Unit Unfurnished $
4 1
Unknown
Furnished $
Per Unit
Total Unfurnished
Rents $
0 0
$
Furnished $
Per Sq. Ft. or Room
$
400 600
$
Total Rents
c| $
1,600 600
$
0.53 0.40
100 120
2,200 Page 2
ITEM
SUBJECT
Address
COMPARABLE NO. 1
562 N Main St Norwich, CT 06360
Proximity to subject Map code
35980 2,750
Lot size Brief description of
No. Units:
No. Vac. 5 0 1870 5 unit multifamily, 3 stories
building
Year Built:
improvements
Quality Condition Recreational facilities Parking Tenant appeal
Garage Location
Avg Fair None
5 on site estimated Avg None Neutral/Mixed Use
4 on site Avg None Neutral/Residential
None Avg + None Beneficial/Residential
6 on site Avg None Neutral/Residential
MARKET APPROACH
UNIT ROOM COUNT
No. of
Date of sale
UNIT ROOM COUNT
No. of
UNIT ROOM COUNT
No. of
UNIT ROOM COUNT
Units
Total
BR
Bath
Units
Total
BR
Bath
Units
Total
BR
Bath
Units
Total
BR
Bath
1 4
5 4
3 2
1 1
2 2
4 5
2 3
1 1
1 5
6 3
3 1
1 1
4 2
3 4
1 2
1 1
Water/Sewer Exterior Inspection $ Unf. N/A N/A N/A N/A
Sale-Listing-Offer
1
Avg Avg None
breakdown
Price
0
34-36 5th St Norwich, CT 06360 0.33 miles SW 35980 .16 ac No. Units: No. Vac. 6 0 Year Built: 1880 6 unit multifamily consisting of two 3 unit buildings
Avg Avg None
Unit
Data source
COMPARABLE NO. 3
57 Broad St Norwich, CT 06360 1.31 miles W 35980 .57 ac No. Units: No. Vac. 6 Year Built: 1850 6 unit multifamily 3 story wood frame
Avg Fair None
No. of
Util. paid by owner
COMPARABLE NO. 2
17-19 Railroad Ave Norwich, CT 06360 4.00 miles N 35980 .24 ac No. Units: No. Vac. 4 Year Built: 1875 4 unit multifamily 2.5 story wood frame
Water/Sewer MLS# E263819, DOM $ Unf. 84,900 LP $79,900 04/10/2014 Estate Sale Conventional Financing $67,920 mortgage
F
Terms (Including conditions
All MLS# E257751, DOM 79 $ Unf. 135,000 LP $195,000 01/25/2013 Arms Length Sale Conventional Financing $94,500 mortgage
F
F
Water/Sewer MLS# E264199, DOM 66 $ Unf. 86,000 LP $100,000 05/22/2013 Arms Length Sale Conventional Financing $105,000 mortgage
F
of sale and financing terms) Complete as many of the following items as possible using data effective at time of sale
Gross Annual Income
$
26,400
$
8,700 47.05
$
$
21,000 4.04 13,701 34.76 16.14 21,225 4,717
$
24.74 /sq. ft. bldg. area
Gross Ann. Inc. Mult. (1) Net Annual Income Expense Percentage (2)
$ %
Overall Cap. Rate (3)
%
Price per unit
$
Price per room
$
Price gross bldg. area
$
$ /sq. ft. bldg. area
$
39,600 3.41 19,478 50.81 14.43 22,500 6,429
$ % % $ $ $
23.61 /sq. ft. bldg. area
$
40,800 2.11 22,800 44.12 26.51 14,333 4,095
$ % % $ $ $
% %
19.31 /sq. ft. bldg. area
(1) Sale Price / Gross Annual Income (2) Total Annual Expenses / Total Gross Annual Income (3) Net Annual Income / Price RECONCILIATION:
See attached addenda.
INDICATED VALUE BY MARKET APPROACH INCOME
$
Total Monthly Apartment Forecasted Rents Other Monthly Income (Itemize)
Real Estate Taxes*
2,200
$ $ $
Total Gross Annual Forecasted Income (
Less Forecasted Vacancy and Collection Loss
5
%)
$(
Effective Gross Annual Income
$
Less Forecasted Expenses & Replacement Reserves
$(
Net Annual Income from Total Property
$
INCOME APPROACH
@
3,793
FORECASTED
$
Insurance
2,200 26,400 1,320 25,080 16,380 8,700
3,800 2,000
Unsubordinated ground rent Fuel )
Gas Electricity
)
Water and sewer
2,160 720
Trash removal
Less Return on and Recapture of Depreciated Value of ($
ACTUAL
$
Other taxes or licenses
None
Total Gross Monthly Forecasted Income
Furnishings
70,000 EXPENSES
Pest control %)
$(
)
$
Net Annual Income from Real Property
8,700
Maintenance and repairs
3,000
Interior and exterior decorating
Capitalized as follows:
Cleaning expenses and supplies
See attached addenda. The subject NOI has been capitalized at 16% based upon the OAR range provided by the three market comparables.
Management (Off-site)
200 1,500
Res. Mgr. salary & apartment Janitor(s) salary & apartment Miscellaneous
*Real Est. Taxes Total Assessed Value $ Comments:
Actual
82,600
Est. Tax Rate Per $100
$
3,793 REPLACEMENT RESERVES Carpeting and drapes Ranges and refrigerators Dishwashers and disposals Individual heating & AC units
Roof/Structural TOTAL EXPENSES & REPL. RES. INDICATED VALUE BY INCOME APPROACH $
FHLMC FORM 71B - Rev. 8/77
$
3,793
$
3,000 16,380
54,375 Page 3
GENERAL COMMENTS (Including comments on any items rated poor or fair)
The subject property is a 5 unit multifamily property. It is located in the Greenville section of Norwich. The property was sold in 2012 as a four unit property for $14,000 per unit. As of the date of sale, the property appears to have been occupied, but according to the listing agent, required rehab. The tax records indicate that the property is a 5 unit apartment building. This appraiser assumes that a large fourth unit has since been converted to two smaller units, thereby increasing the number of units since the prior sale. This appraiser also assumes that the overall condition of the property has not significantly changed since the last sale. The last sale, which was owner financed, may have been at a below market price, though the property had been on the market for 221 days, and was adequately exposed. This appraisal is based upon the assumption that the property is in overall fair condition, but that the property is in rentable condition and is still capable of generating rental income.
CONDITIONS AND REQUIREMENTS OF APPRAISAL (include required repairs, replacements, painting, termite inspections, etc.)
See attached addenda.
RECONCILIATION AND VALUE CONCLUSION
Indicated Value by the Cost Approach
$
182,748
Indicated Value by the Market Approach
$
70,000
Indicated Value by the Income Approach
$
54,375
FINAL RECONCILIATION
Primary emphasis is placed upon the Sales Comparison Approach (aka Market Approach). The Sales Comparison Approach is based upon the best available data. The Cost Approach has been developed but is not relied upon due to the age of the subject improvement. The Income Approach relies upon estimated market rental data. Expenses are based upon both estimated expenses. The OAR has been derived from market comparables.
I certify, that to the best of my knowledge and belief, the statements made in this report are true and I have not knowingly withheld any significant information; that I have personally inspected subject property, both inside and outside, and have made an exterior inspection of all comparable sales listed herein; that I have no interest, present or contemplated, in subject property or the participants in the sale; that neither the employment nor compensation to make said appraisal is contingent upon any value estimate; and, that all contingent and limiting conditions are stated herein. (FHLMC Form 439 Rev. 6/93) applies
(
Certification and Statement of Limiting Conditions
on file with Client
Attached).
As a result of my investigation and analysis, my estimate of Market Value of the subject property as of $
Date
is
11/18/2014
70,000
Appraiser
11/24/2014
If applicable, complete the following Date
Robert H. Champagne
Appraiser
Date
Supervising or
Review Appraiser Did
Did Not Physically Inspect Property
FOR LENDER'S USE ONLY (completion optional) Loan Recommended $
@
%.
Term
yrs.
Principal & Interest $
/mo. $
/annually
Subject to:
Borrower's Cost or Purchase Price Loan: Per Unit
$
$
Gross Annual Forecasted Income
Appraised Value $ Gross Annual Income Multiplier $
Borrower's Return on Appraised Equity
Overall Capitalization Rate
(
$
) / (Gross Annual Income $
+ Annual P & I pymts. for all financing $ (Net Annual Inc.
$
(Appraised Value $
%
% of Gross Annual Forecasted Income)
+ Annual P & I pymts. $
(All financing) : (Annual Exp & RR $
%
Per Sq. Ft. of Building Area $
$
Forecasted Annual Expenses and Replacement Reserves Break-even Point (this loan): (Annual Exp. & RR
Loan to Appraised Value
Per Room $
) / (Gross Annual Inc. $
(-) Annual P & I pymts $
)=$
(-) Loan Amt. $ $
%
)=
%
(1)
)=$ (1) / $
)=
(2) (2) =
%
Comments or Committee Action
FHLMC FORM 71B - Rev. 8/77
Page 4
Form 71B1 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Assumptions & Limiting Conditions Property Address:
File No.:
City:
562 N Main St
Norwich
State:
CT
KNL-CV-14-6020143-S 141105c Zip Code: 06360-3261
Building Name (if applicable):
Client:
Appraiser:
Attorney Donna R. Skaats Robert H. Champagne
Address:
Address:
116 Sachem St, Norwich, CT 06360 185 Randall Rd, Lebanon, CT 06249
STATEMENT OF ASSUMPTIONS & LIMITING CONDITIONS: - The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible ownership. The future operation of the property assumes skilled and adequate management but are not represented to be historically based. - The appraiser may have provided a sketch in the appraisal report to show approximate dimensions of the improvements, and any such sketch is included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of its size. Unless otherwise indicated, a Land Survey was not performed. - If so indicated, the appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. - The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand. - If the cost approach is included in this appraisal, the appraiser has estimated the value of the land in the cost approach at its highest and best use, and the improvements at their contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. Unless otherwise specifically indicated, the cost approach value is not an insurance value, and should not be used as such. - The appraiser has noted in the appraisal report any adverse conditions (including, but not limited to, needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property, or that he or she became aware of during the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property, or adverse environmental conditions (including, but not limited to, the presence of hazardous wastes, toxic substances, etc.) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment of the property. - The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties. All information furnished regarding rental rates, lease terms, or projections of income and expense is from sources deemed reliable. No warranty or representation is made as to the accuracy thereof. - The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice, and any applicable federal, state or local laws. - If this appraisal is indicated as subject to satisfactory completion, repairs, or alterations, the appraiser has based his or her appraisal report and valuation conclusion on the assumption that completion of the improvements will be performed in a workmanlike manner. - An appraiser's client is the party (or parties) who engage an appraiser in a specific assignment. Any other party acquiring this report from the client does not become a party to the appraiser-client relationship. Any persons receiving this appraisal report because of disclosure requirements applicable to the appraiser's client do not become intended users of this report unless specifically identified by the client at the time of the assignment. - The appraiser's written consent and approval must be obtained before this appraisal report can be conveyed by anyone to the public, through advertising, public relations, news, sales, or by means of any other media, or by its inclusion in a private or public database. - An appraisal of real property is not a 'property inspection' and should not be construed as such. As part of the valuation process, the appraiser performs a non-invasive visual inventory that is not intended to reveal defects or detrimental conditions that are not readily apparent. The presence of such conditions or defects could adversely affect the appraiser's opinion of value. Clients with concerns about such potential negative factors are encouraged to engage the appropriate type of expert to investigate. - Values for various components of the subject parcel and improvements or the value derived by one or two approaches to value as contained within this report are valid only when making a summation or final opinion of value and are not to be used independently for any purpose and must be considered invalid if so used. A separate report on only a part of a whole property, particularly if the reported value exceeds the value that would be derived if the property were considered separately as a whole, must be stated as a fractional report. - Forecasts of effective demand for the highest and best use or the best fitting and most appropriate use were based on the best available data concerning the market and are subject to conditions of economic uncertainty about the future.
HYPOTHETICAL CONDITIONS and/or EXTRAORDINARY ASSUMPTIONS (if applicable): This appraisal is based upon an exterior inspection only. As part of this appraisal, I have relied upon the available data in estimating the condition of the subject property. The data sources utilized include the tax records, a prior MLS listing, and an exterior inspection. The subject property sold on 8/31/2012 for $56,500. According to the listing agent, the property needed "rehab." The tax records indicate that the property is more than 50% depreciated. As of the date of sale, the property was advertised as a four unit property. The tax records indicate that it is a 5 unit home. As the tax records are more up to date, reliance has been placed upon the tax records in describing the subject property. This appraiser assumes that a large fourth unit has been converted to two small units since the prior sale. The permit history indicates that a building permit was obtained on 2/3/2014 for minor electric repairs, though this repair does not appear to have been completed. This is the only permit on record since the prior date of sale. As a result, this appraiser assumes that no additional work has been completed on the property, and that the property is in more or less the same condition as it was when purchased in 2012. In summary, this appraiser has relied upon the extraorindary assumption that the condition of the property is fair, similar to its condition in 2012. The value conclusion in this appraisal has been affected by the adoption of this assumption.
Copyright© 2007 by a la mode, inc. This form may be reproduced unmodified without written permission, however, a la mode, inc. must be acknowledged and credited.
Form GPSMCOM2AD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
12/2013
Scope of Work & Definitions Property Address:
File No.:
City:
562 N Main St
Norwich
State:
CT
KNL-CV-14-6020143-S 141105c Zip Code: 06360-3261
Building Name (if applicable):
Client:
Appraiser:
Address:
Attorney Donna R. Skaats Robert H. Champagne
Address:
116 Sachem St, Norwich, CT 06360 185 Randall Rd, Lebanon, CT 06249
SCOPE OF WORK: The Scope of Work is the type and extent of research and analyses performed in an appraisal assignment that is required to produce credible assignment results, given the nature of the appraisal problem, the specific requirements of the intended user(s) and the intended use of the appraisal report. Reliance upon this report, regardless of how acquired, by any party or for any use, other than those specified in this report by the Appraiser, is prohibited. The Opinion of Value that is the conclusion of this report is credible only within the context of the Scope of Work, Effective Date, the Date of Report, the Intended User(s), the Intended Use, the stated Assumptions and Limiting Conditions, any Hypothetical Conditions and/or Extraordinary Assumptions, and the Type of Value, as defined herein. The appraiser, appraisal firm, and related parties assume no obligation, liability, or accountability, and will not be responsible for any unauthorized use of this report or its conclusions.
Additional Scope of Work Comments: This appraisal is based upon an exterior inspection only. This appraiser was not able to inspect the interior of the property, nor was this appraiser provided with a current rent roll or income expense pro-forma. All opinions of rental data for the subject property are based upon this appraiser's own estimate of condition of the property, as well as a reliance upon tax records and MLS listings.
DEFINITIONS: DEFINITION OF MARKET VALUE *: Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and 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 acting in what they consider their own best interests; 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. * This definition is from regulations published by federal regulatory agencies pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 between July 5, 1990, and August 24, 1990, by the Federal Reserve System (FRS), National Credit Union Administration (NCUA), Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS), and the Office of Comptroller of the Currency (OCC). This definition is also referenced in regulations jointly published by the OCC, OTS, FRS, and FDIC on June 7, 1994, and in the Interagency Appraisal and Evaluation Guidelines, dated October 27, 1994.
Copyright© 2007 by a la mode, inc. This form may be reproduced unmodified without written permission, however, a la mode, inc. must be acknowledged and credited.
Form GPSMCOM2AD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
12/2013
Certifications Property Address:
File No.:
City:
562 N Main St
State:
Norwich
CT
KNL-CV-14-6020143-S 141105c Zip Code: 06360-3261
Building Name (if applicable):
Client:
Appraiser:
Address:
Attorney Donna R. Skaats Robert H. Champagne
116 Sachem St, Norwich, CT 06360 185 Randall Rd, Lebanon, CT 06249
Address:
APPRAISER'S CERTIFICATION: I certify that, to the best of my knowledge and belief: - The statements of fact contained in this report are true and correct. - The credibility of this report, for the stated use by the stated user(s), of the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. - I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. - Unless otherwise indicated, I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. - I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. - My engagement in this assignment was not contingent upon developing or reporting predetermined results. - My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. - My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice that were in effect at the time this report was prepared. - I did not base, either partially or completely, my analysis and/or the opinion of value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property, or of the present owners or occupants of the properties in the vicinity of the subject property. - Unless otherwise indicated, I have made a personal inspection of the property that is the subject of this report. - Unless otherwise indicated, no one provided significant real property appraisal assistance to the person(s) signing this certification.
ADDITIONAL CERTIFICATIONS:
Client Name:
Client Contact:
E-mail:
Address:
Attorney Donna R. Skaats 116 Sachem St, Norwich, CT 06360 SUPERVISORY APPRAISER (if required)
APPRAISER
SIGNATURES
or CO-APPRAISER (if applicable)
Supervisory or Co-Appraiser Name:
Appraiser Name:
Robert H. Champagne Company: Champagne Appraisals Fax: Phone: (860) 884-1008 E-mail: [email protected] Date Report Signed: 11/24/2014 License or Certification #: RCG.0001242 Designation: Expiration Date of License or Certification: 04/30/2015 Inspection of Subject: Date of Inspection:
Interior & Exterior
11/18/2014
Exterior Only
Company:
Fax:
Phone:
E-mail:
Date Report Signed: State:
CT
State:
License or Certification #:
Designation: Expiration Date of License or Certification: None
Inspection of Subject:
Interior & Exterior
Exterior Only
None
Date of Inspection: Copyright© 2007 by a la mode, inc. This form may be reproduced unmodified without written permission, however, a la mode, inc. must be acknowledged and credited.
Form GPSMCOM2AD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
12/2013
Supplemental Addendum Borrower Property Address City
Lender/Client
N/A 562 N Main St Norwich Attorney Donna R. Skaats
County
New London
File No.
State
CT
141105c
Zip Code
06360-3261
• 71B: RECON_1 Market Approach The three market sales have been selected based upon proximity, date of sale, and physical similarity. The multifamily investment market in the southeastern Connecticut region has seen very limited activity in the prior 24 months. There have been few sales of 4-8 unit multifamily homes in the search area. As a result, it has been necessary to utilize sales that vary in number of units. Sales that occurred up to 24 months prior to the effective date of this appraisal have been considered. A large number of the multifamily sales in Norwich are REO sales. This appraiser has attempted to utilize non-REO sales, as foreclosure sales do not meet the criteria of the market value definition utilized in this appraisal. Sales #1 & #3 similar locations to the subject. Sale #2 has a significantly superior location to that of the subject. Sales #1 & #2 have been adequately maintained, and are in superior condition. Sale #3 requires work and appears to be in comparable condition. Sale #1 contains four units, while sales #2 & #3 both contain 6 units. No recent comparable sales of 5 unit properties were available in Norwich. The three sales provide a range of $14,333 - $22,500 per unit. Sales #1 & #2 have required adjustments for condition and location. Sale #3 has a comparable location and appears to be in comparable condition. As a result, primary weight is placed on this sale, indicating a price per unit of $14,000 for the subject. 5 units @ $14,000 = $70,000. • 71B: COND_REQ_APPR1 The subject property is appraised in its "as is" condition. No necessary repairs were noted upon inspection. This appraisal is
based upon an exterior inspection only. As part of this appraisal, I have relied upon the available data in estimating the condition of the subject property. The data sources utilized include the tax records, a prior MLS listing, and an exterior inspection. The subject property sold on 8/31/2012 for $56,500. According to the listing agent, the property needed "rehab." The tax records indicate that the property is more than 50% depreciated. As of the date of sale, the property was advertised as a four unit property. The tax records indicate that it is a 5 unit home. As the tax records are more up to date, reliance has been placed upon the tax records in describing the subject property. This appraiser assumes that a large fourth unit has been converted to two small units since the prior sale. The permit history indicates that a building permit was obtained on 2/3/2014 for minor electric repairs, though this repair does not appear to have been completed. This is the only permit on record since the prior date of sale. As a result, this appraiser assumes that no additional work has been completed on the property, and that the property is in more or less the same condition as it was when purchased in 2012. In summary, this appraiser has relied upon the extraorindary assumption that the condition of the property is fair, similar to its condition in 2012. The value conclusion in this appraisal has been affected by the adoption of this assumption.
Form TADD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Subject Photo Page Borrower Property Address City
Lender/Client
N/A 562 N Main St Norwich Attorney Donna R. Skaats
County
New London
State
Zip Code
CT
06360-3261
Subject Front 562 N Main St Sales Price Gross Building Area Age
N/A 4,800 1870
Subject Rear
Subject Street
Form PICPIX.SC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Subject Photo Page Borrower Property Address City
Lender/Client
N/A 562 N Main St Norwich Attorney Donna R. Skaats
County
New London
State
Zip Code
CT
06360-3261
Subject side 562 N Main St Sales Price Gross Building Area Age
N/A 4,800 1870
Street Scene
Form PICPIX.SC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Comparable Photo Page Borrower Property Address City
Lender/Client
N/A 562 N Main St Norwich Attorney Donna R. Skaats
County
New London
State
CT
Zip Code
06360-3261
Comparable 1 17-19 Railroad Ave Sales Price 84,900 G.B.A. 3,432 Age/Yr. Blt. 1875
Comparable 2 57 Broad St Sales Price G.B.A. Age/Yr. Blt.
135,000 5,719 1850
Comparable 3 34-36 5th St Sales Price G.B.A. Age/Yr. Blt.
Form PICPIX.CC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
86,000 4,454 1880
Location Map Borrower Property Address City
Lender/Client
N/A 562 N Main St Norwich Attorney Donna R. Skaats
County
New London
State
Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
CT
Zip Code
06360-3261
Location Map Borrower Property Address City
Lender/Client
N/A 562 N Main St Norwich Attorney Donna R. Skaats
County
New London
State
Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
CT
Zip Code
06360-3261
Flood Map Borrower Property Address City
Lender/Client
N/A 562 N Main St Norwich Attorney Donna R. Skaats
County
New London
State
Form MAP.FLOOD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
CT
Zip Code
06360-3261
Plat Map Borrower Property Address City
Lender/Client
N/A 562 N Main St Norwich Attorney Donna R. Skaats
County
New London
State
Form MAP.PLAT - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
CT
Zip Code
06360-3261
Assessor's Card
Form SCNLGL - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Assessor's Card 2
Form SCNLGL - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Legal Description
Form SCNLGL - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
File No.
141105c
Robert Champagne Champagne Appraisals Certified General Appraiser 185 Randall Rd, Lebanon, CT 06249 Phone: (860) 884 1008 Fax: (860) 886 0452 [email protected] EDUCATION Bachelor of Arts, History. Trinity College, 2001. Graduated cum laude, member of Phi Beta Kappa honorary society. Successfully completed courses Appraisal I, Appraisal II, & National U.S.P.A.P. University of Connecticut, 2003. Completed course load requirements for both Certified Residential Appraiser (120 hours) and Certified General Appraiser (180 hours), A Professional Real Estate and Valuation School, Clinton, CT (2006-2007). PROFESSIONAL HISTORY IN REAL ESTATE Mr. Champagne entered the appraisal business in early 2004 and is a Connecticut Certified General appraiser. Since 2008, he has been the sole proprietor of Champagne Appraisals, a small appraisal company specializing in real estate valuations in southeastern Connecticut. Mr. Champagne has been affiliated with Connecticut Commercial Realty in New London, CT, since 2005 and has functioned as their sole staff appraiser since that date. He received his General Certification in Connecticut in 2009. Mr. Champagne has experience appraising a wide variety of residential and commercial properties, and is an approved FHA appraiser. He lives in Lebanon, CT and has experience in building construction and restoration. General Certification # RCG.0001242 Years of Appraisal Experience: 10
Form DCVR - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Champagne Appraisals
INVOICE
FROM:
Robert Champagne
INVOICE NUMBER
Champagne Appraisals
141105c
185 Randall Rd
DATES Invoice Date:
Lebanon, CT 06249 Telephone Number:
860 884 1008
Fax Number:
11/24/2014
Due Date:
860 886 0452
REFERENCE Internal Order #:
TO:
141105c
Lender Case #:
Attorney Donna R. Skaats
Client File #:
116 Sachem St
FHA/VA Case #:
Norwich, CT 06360
Main File # on form:
141105c
Other File # on form:
KNL-CV-14-6020143-S
E-Mail:
[email protected]
Telephone Number:
(860) 886-9322
KNL-CV-14-6020143-S
Federal Tax ID:
Fax Number:
Employer ID:
Alternate Number:
36-4666768
DESCRIPTION Lender: Purchaser/Borrower: Property Address: City: County: Legal Description:
Client:
Attorney Donna R. Skaats N/A 562 N Main St Norwich New London Volume 2750, Page 48
Attorney Donna R. Skaats
State:
CT
Zip:
06360-3261
FEES
AMOUNT
Commercial Multifamily (5+ units)
900.00
SUBTOTAL
900.00
PAYMENTS
AMOUNT
Check #:
Date:
Description:
Check #:
Date:
Description:
Check #:
Date:
Description:
SUBTOTAL
Please make check payable to Champagne Appraisals. Thank you.
Form NIV5D - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
TOTAL DUE
$
900.00
