Kitsap County Assessor

Transcription

1 Narrative for Area 5 - Bremerton and Central Kitsap East Tax Year: 2018 Appraisal Date: 1/1/2017 Property Type: Retail - Strip Retail and Small Single Tenant Retail Updated 6/5/2017 by CM20 Area Overview Bremerton includes both East and West and Tracyton, Illahee, Manette, West Hills, Kitsap Lake, Charleston Beach. Strip retail is an attached row of stores or service outlets managed as a coherent retail entity, with onsite parking usually located in front of the stores. It may be configured in a straight line or have an L or U shape. There are no enclosed walkways linking the stores. The tenants offer a narrow range of goods and services usually targeted to a local neighborhood. Included in this property type are stand alone structures less than 12,000 square feet in size which are designed for one tenant. This model also applies to retail condominiums. Area 5 has approximately 194 parcels developed primarily as small single tenant or strip retail use. Property Type Overview Economic Overview: Economic recovery for retail is slow in Area 5 as reflected by the high vacancy rate. Valuation Summary Approach Used: Income Analysis and Conclusion Summary: The three approaches to value were considered. The cost approach was given little consideration in the appraiser's final analysis. Cost approach components such as replacement cost new, effective age, and depreciation are difficult to accurately calculate in a mass appraisal model. A market/sales comparison approach uses sale prices of comparable properties to calculate value. The market/sales approach was not applied as Kitsap County lacks sufficient, recent sales. The income approach was selected as the best method for valuing these properties. The data used to develop our current model data was collected from our mail survey, site visits, local sales, national publications, and data supplied for review or appeal. Model Calibration Preliminary Ratio Analysis: Analysis of sales resulted in a mean ratio of 93%, a median ratio of 87%, and a coefficient of disperson (COD) of /Sales Comparison Approach Data and Analysis Sales: Range of Sale Dates: 1/1/2013 to 12/31/2016. A total of 12 local sales, and 0 regional sales, and 0 national sales were used in the sales analysis. Additional information is provided on the sales analysis data sheet. Kitsap County attempts to review, analyze, and validate via telephone, mail, or in person interviews, all commercial sales within the county for inclusion or exclusion in our market/sales approach. Printed 6/5/2017

2 Property type: Retail - Strip Retail and Small Single Tenant Retail (continued) /Sales Rates: Sales ranged from $25.52 to $ per square foot. Income Approach and Data Analysis Values were calculated using a triple net (NNN) income model. Income and expense information was collected from mailed surveys, property representatives, on-site visits, and market research (publications, newsletters, websites, etc.) Data: The Assessor validated rents from 26% of the market. Typical reported rents had a range of $2.33 to $ We selected $4.26 to $22 for our model. Vacancy Data: Typical reported vacancy had a range of 3% to 10. We selected 15% to 5 for our model. Expense Data: Typical reported expense had a range of 5% to 44%. We selected 6% to 6% for our model. Capitalization Rate (Cap) Data: Typical sale cap rates ranged from 4.2% to 14.34%. We selected 7.5% to 8.25% for our model. Cap rates were reviewed countywide from strip retail sales. Income Model Value Range: The income approach calculates a range of values from $28.54 to $ per square foot. Final Ratio Analysis: Analysis of sales resulted in a mean ratio of 95%, a median ratio of 9, and a coefficient of disperson (COD) of Sources Kitsap County Board of Equalization appeal documentation. Washington State Board of Tax appeal documentation. Kitsap County income and expense surveys. Kitsap County sales questionaires. The Dictionary of Real Estate Appraisal, Appraisal Institute, Third Edition, 1993 Property Appraisal and Assessment Administration, IAAO, 1990 Glossary for Property Appraisal and Assessment, IAAO,1997 LoopNet - Commercial Brokers Association - Printed 6/5/2017

3 CLASS A CLASS B CLASS C CLASS D CLASS E Location Synergy Access Visibility Traffic Parking Associated with a shopping center. Associated with a shopping center or downtown core. Free standing or downtown core. Free standing, secondary street locations, or in defunct shopping center. Free standing, secondary street locations, or in defunct shopping center. Destination shopping such as shopping centers or designated retail developments. Destination or easy impulse shopping location. Good traffic from neighboring business mix. Limited synergy from neighboring businesses. Limited or none. Multiple accesses, lighted access, round-a-bouts, allway stop signs. Multiple accesses, lighted access, round-a-bouts, allway stop signs. Adequate access, possible multiple accesses, turn lane on busy roads. Adequate access, possibly difficult during high traffic commute hours. Adequate to difficult access. RETAIL CLASSIFICATION GUIDELINES Store front or signage highly visible. Store front or signage highly visible. Good store front or signage visibility. Limited store front or signage visibility. Very limited. High traffic count or destination shopping area. High traffic count or destination shopping area. In midst of downtown core walking pattern. Adequate traffic counts. In midst of or at edge of downtown core walking pattern. Adequate to low traffic count, or extremely high count during peak commute hours. Off the main walking pattern for downtown core. Low traffic count. Not part of typical walking pattern for downtown core areas. Ample on-site parking. Ample on-site parking or adequate nearby parking for downtown core locations. Adequate on-site parking or nearby parking for downtown core locations Adequate to limited on-site parking or nearby parking for downtown core locations Limited parking, distance to parking in downtown core areas. Quality of Building Very good retail building with impressive façade. Good retail building with attractive façade. Average retail building, typical façade. Average retail building with plain or dated façade. Fair or low quality retail building, plain or dated façade. Condition of Building New or recently renovated with modern mechanical upgrades. New or recently renovated with modern mechanical upgrades. Average condition, no functional obsolescence. All mechanical components meet requirements. Typical maintenance on building completed as needed. Possible deferred maintenance, possible functional obsolescence. May not meet todays standards for mechanical improvements. Needs maintenance, possible functional obsolescence, approaching need for redevelopment. Does not meet todays mechanical standards. Onsite parking is not typical in downtown core areas where 10 building footprint to land is allowed. Locations within the typical walking pattern for downtown core areas are prime retail sites. Those located at the fringes or back streets are less desirable. Retail stores in excess of 10,000 sf for single tenant occupancy tend to be square in shape. Retail stores are typically rectangular in shape with the short side being the store frontage. Consider higher rent class if the long side is store frontage. Delivery Access Good delivery access to rear of building, possibly loading docks. Good delivery access to rear of building, possibly loading docks. Rear access man doors with good road. Possible rear access, alley access. Limited with narrow alley, or no rear access. Highest and Best Use As developed. As developed. As developed. As developed, possibly transitioning away from current use. Transitioning away from current use or need of complete redevelopment to today's standards.

4 Tax Year: 2018 Property Type: Retail Neighborhood: , , , Class A Class B Class C Class D Class E Not Used Retail-Sml Not Used C-Store Condo Rtl Income Mode

5 Tax Year: 2018 Property Type: Retail Neighborhood: , Class A Class B Class C Class D Class E Not Used Retail-Sml Not Used C-Store Condo Rtl Income Mode

6 Tax Year: 2018 Property Type: Retail Neighborhood: Class A Class B Class C Class D Class E Not Used Retail-Sml Not Used C-Store Condo Rtl Income Mode

7 Tax Year: 2018 Property Type: Retail Neighborhood: , Class A Class B Class C Class D Class E Not Used Retail-Sml Not Used C-Store Condo Rtl Income Mode

8 Local Income Survey for Retail - Retail-Small PGI per Unit Vacancy EGI per Unit Expense % $28.00 $28.00 $27.54 $ % $2 $25.99 $23.00 $23.00 $22.80 $22.80 $22.49 $22.49 $22.03 $22.03 $22.00 $22.00 $21.20 $21.20 $20.28 $20.28 $19.80 $19.80 $ $ % $18.49 $18.49 $18.00 $18.00 $17.00 $17.00 $16.40 $ % $16.40 $ $16.29 $ $16.12 $16.12 $1 $1 $15.04 $15.04 $15.04 $15.04 $ % $ % $15.00 $15.00 $ % $9.10 5% $14.40 $14.40 $14.40 $14.40 $14.37 $14.36 $14.37 $14.36 $13.90 $ % $13.59 $ % $13.59 $ % $13.52 $ % $ % $ % $ % $ % NOI per Unit $28.00 $26.16 $25.99 $23.00 $22.80 $22.49 $22.03 $22.00 $21.19 $20.28 $19.80 $12.68 $18.49 $18.00 $17.00 $10.50 $11.45 $14.71 $16.12 $1 $15.04 $15.04 $13.92 $15.00 $8.64 $14.40 $14.40 $14.36 $14.36 $8.06 $8.84 $7.61 $11.94 $5.68 $8.72 Printed: 6/5/2017

9 Local Income Survey for Retail - Retail-Small $ $ % $ $ % $ $ % $12.22 $12.22 $12.00 $ % $11.86 $11.86 $11.86 $11.86 $11.85 $11.85 $11.67 $11.67 $11.60 $11.60 $11.47 $11.47 $11.41 $11.41 $11.41 $11.41 $11.32 $11.32 $11.27 $11.26 $11.08 $11.08 $10.91 $10.91 $10.67 $10.67 $10.36 $10.36 $10.12 $ % $10.12 $ % $10.06 $ % $10.05 $ $10.05 $ % $ $4.93 $9.67 $9.67 $9.53 $ % $9.50 $9.50 $9.38 $ % $9.33 $ % $9.33 $ % $9.31 5% $8.88 $9.18 $9.18 $9.14 $9.14 $9.11 $ % $9.00 $9.00 $0.00 $0.00 $0.00 $12.22 $9.30 $11.85 $11.85 $11.85 $11.67 $11.60 $11.47 $11.40 $11.40 $11.32 $11.26 $11.08 $10.91 $10.67 $10.36 $5.99 $4.45 $8.49 $7.06 $5.52 $4.92 $9.67 $7.95 $9.50 $6.09 $5.19 $2.89 $8.88 $9.18 $9.13 $7.53 $9.00 Printed: 6/5/2017

10 Local Income Survey for Retail - Retail-Small $ $4.32 $8.50 $8.50 $ $ % $8.33 $8.33 $7.79 $7.79 $7.56 $ % $7.51 $ % $7.20 $7.20 $7.08 $ $7.04 $ % $6.89 $6.89 $6.76 $6.76 $6.35 $6.35 $6.35 $6.35 $ $ % $6.06 $ $6.06 $6.06 $ 25% $4.50 $5.49 $5.49 $ $0.00 $4.90 $4.90 $4.82 $4.81 $4.77 $ $ $ % $4.60 $ $4.32 $8.50 $3.46 $8.33 $7.79 $4.91 $4.18 $7.20 $4.24 $4.58 $6.89 $6.76 $6.34 $6.34 $4.05 $3.64 $6.06 $4.50 $5.48 $0.00 $4.90 $4.81 $2.86 $2.74 $3.68 Printed: 6/5/2017

11 Tax Year 2018 Retail-Small and Condo Retail - Bremerton Area 5 Sales From 01/01/ /31/2016 No. Nbrhd Account Number Project Name Units RC YR Acres Excise VC Sale Date Sale Price Adjusted Assessed Other Sales Price Value Value Total Value Ratio MONEY TREE 3,040 C EX03645 V 06/01/15 $ 365,000 $ 365,000 $ 265,480 $ (23,080) $ 242,400 66% & Retail on corner Perry & Denny w/ ,398 D EX01013 W 02/17/16 $ 210,000 $ 195,000 $ 73,680 $ 87,360 $ 161,040 83% NW Liquor and Wine 5,610 C EX08642 V 12/17/13 $ 650,000 $ 650,000 $ 576,468 $ - $ 576,470 89% Gateway Ctr 27,425 E EX03242 V 05/19/15 $ 700,000 $ 700,000 $ 782,759 $ 46,724 $ 829, % Former C-store off Charleston Bch 2,060 D EX06127 V 08/30/13 $ 140,000 $ 140,000 $ 127,802 $ - $ 127,790 91% Former Boater's World 6,600 C EX00787 V 02/03/15 $ 565,000 $ 565,000 $ 810,763 $ - $ 810, % Kitsap Chair Covers 1,989 D EX02858 V 05/09/14 $ 125,000 $ 125,000 $ 123,398 $ - $ 123,400 99% th St 4,120 E EX06666 V 09/24/13 $ 290,000 $ 290,000 $ 152,870 $ 65,330 $ 218,200 75% N Callow Retail -Tatoo Technique 2,550 D EX01994 V 03/27/13 $ 150,000 $ 150,000 $ 126,562 $ 420 $ 126,980 85% Money Tree, Total Satellite, Domino 3,540 B EX03183 V 05/23/14 $ 800,000 $ 800,000 $ 476,350 $ 377,790 $ 854, % Schuck's Auto Supply & Papa Murphy 11,890 B EX07492 V 10/25/13 $ 1,987,500 $ 1,987,500 $ 1,599,893 $ - $ 1,599, Retail Bldg & SFR on 11th in Manette 1,128 D EX00625 V 01/31/13 $ 130,000 $ 130,000 $ 59,440 $ 70,820 $ 130, Nbrhd Neighborhood VC Validity Code Count: Downtown Bremerton V Lowest: 66% Kitsap Way 8 Highest: 143% Auto Center X Median: Wheaton Way W Mean: 95% East Bremerton D Average Dev: Callow F C.O.D.: Brownsville Hwy 1 2 Q M Valid Outlier Exempt property With other property Not economic unit Forced sale Family sale Corporate Affiliates Quit Claim Deed Other REMOVED SALES No. Nbrhd Account Number Project Name Units RC YR Acres Excise VC Sale Date Sale Price Adjusted Sales Price Comments INVALID Pied Piper, Bremerton Printing 10, EX07025 F 09/20/13 $ 211,001 $ 211,001 Forced sale INVALID-Aqua Tech and Kwon's Martial Arts 9, EX /08/13 $ 732,000 $ 732,000 Family sale Former Nite Shift Tavern 9, EX /08/16 $ 250,000 $ 250,000 Corporate affiliates Former Nite Shift Tavern 9, EX01896 V 03/19/15 $ 250,000 $ 250,000 Demolished after sale INVALID QCD W/012 Former Lents - Office 30, EX05214 Q 06/28/16 $ 2,050,000 $ 2,050,000 Quit Claim Deed INVALID-Callow Tobacco Joint 9, EX05326 Q 07/22/15 $ 110,000 $ 110,000 Quit Claim Deed INVALID-Grainger + Warehouse SOLD WITH , EX05756 M 08/04/15 $ 425,000 $ 425,000 Estate sale, carried contract Westbay Napa Auto Parts 9, EX09359 M 12/29/15 $ 1,300,000 $ 1,300,000 Tenant buyout

12 REMOVED SALES No. Nbrhd Account Number Project Name Units RC YR Acres Excise VC Sale Date Sale Price Adjusted Sales Price Comments INVALID R & K - Manette SOLD WITH 002 7, EX01665 E 03/15/13 $ 335,000 $ 335,000 Estate Sale Redwood Plaza 44,508 D EX09408 V 12/31/15 $ 2,250,000 $ 2,250, Evergreen Upholstery 3, EX09250 V 12/23/15 $ 200,000 $ 200, N Callow Retail Storefront 4,050 D EX /19/15 $ 130,000 $ 130, Retail and Parking lot 900 C EX06603 V 10/01/14 $ 85,000 $ 85, N Callow Retail 3 storefronts 2,328 D EX02245 V 04/18/14 $ 83,000 $ 83,000 Multiple income streams Demolished after sale Outlier Land value exceeds income approach, valued using cost approach & Skookum Building & Parking lot & 019 3,200 D EX00314 D 01/17/13 $ 165,000 $ 165,000 Outlier & Total Video Kitsap Way & BL 7,750 B EX02762 W 04/30/13 $ 620,000 $ 620,000 Bank sale, outlier Old store and apartments 1,219 E EX00870 V 02/11/16 $ 350,000 $ 350,000 Residential zoning & & PARCEL SALE - 012, 026, 036 2,700 D 940/ EX05117 D 07/13/16 $ 1,350,000 $ 1,350,000 Multiple income streams Outlier