Kitsap County Assessor

Transcription

1 Kitsap County Assessor Narrative for Area 5 - Bremerton and Central Kitsap East Tax Year: 2018 Appraisal Date: 1/1/2017 Property Type: Restaurants, Bars, and Taverns Updated 6/5/2017 by CM20 Area Overview Bremerton includes both East and West and Tracyton, Illahee, Manette, West Hills, Kitsap Lake, Charleston Beach. Thirty-eight stand alone restaurants and eight bar/tavern properties were identified in the Area 5 neighborhoods. Eating and drinking establishments located in strip retail are valued using the retail model. Property Type Overview Restaurants are constructed for the purpose of preparation and sale of food and beverages. The average dining area is 60 to 70 percent of the gross building size. The balance is used by the kitchen, storage, and prep areas. Bars and taverns are designed mainly for the sale of beverages with limited food production and typically will have a higher seating ratio. Economic Overview: The population of restaurants, bars, and taverns has remained fairly stable over the past few years. There have been a limited number of closures as well as a limited number of new properties developed countywide. 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 89%, a median ratio of 91%, 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 11 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: Restaurants, Bars, and Taverns (continued) Sales from Area 5 along with countywide sales were reviewed. /Sales Rates: Sales ranged from $51.45 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 17% of the market. Typical reported rents had a range of $6.15 to $ We selected $6.50 to $21.00 for our model. Vacancy Data: Typical reported vacancy had a range of 11% to 25%. We selected 1 to 2 for our model. Expense Data: Typical reported expense had a range of 6% to 28%. We selected 5% to 5% for our model. Capitalization Rate (Cap) Data: Typical sale cap rates ranged from 7.13% to 11.26%. We selected 8.25% to 1 for our model. The Boulder Group, Net Lease Casual Dining Report, Q lists caps from % to 6.75%. Calkain Report Q lists cap rates between 4.1 and 12.0 with an average cap rate of 6.18%. Realty Rates 1st Quarter 2017 states a cap rate of 11.57%. Income Model Value Range: The income approach calculates a range of values from $49.4 to $ per square foot. Final Ratio Analysis: Analysis of sales resulted in a mean ratio of 89%, a median ratio of 91%, 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 - loopnet.com Commercial Brokers Association - commercialmls.com Printed 6/5/2017

3 Class Location Construction Exterior Finish Interior Finish Age/Condition Unit size Wall Height Parking A B Waterfront, view amenity, and/or superior location with high traffic flow, good visibility, corner location, and usually has synergy from surroundings Good visibility on or near a main highway or major road with good traffic flow, may have synergy from surroundings Heavy Frame, Wood, Steel, Concrete, Metal, or Masonry Wood, Steel, Concrete, Metal, or Masonry Eating & Drinking - Restaurant & Bar - Model Definition Individual design, ornamental exterior, good quality finish and fenestration, mix of textured concrete, brick, tile, wood, metal, or stucco Better than average design, good quality finish and fenestration, mix of concrete, brick, tile, wood, metal, or stucco Good quality finish, insulation, floor covering, wall finish, trim, heat system Better quality finish, floor covering, wall finish, trim, heat system New or recent complete renovation, in excellent to very good condition, very little to no deferred maintenance or obsolescence evident, all major short-lived items are like new, high curb appeal 7 to 15 year effective age, little deferred maintenance evident, but not everything is new, no obsolescence evident, appearance and utility above the basics Smaller structures tend to have higher SF rents if all else is equal (Restaurant < 2,000sf) Smaller to average structures tend to have higher SF rents if all else is equal (Restaurant 2,000sf - 3,200) Tendency toward higher ceilings and vaulted areas Tendency toward higher than typical ceilings, could have vaulted areas Ample off paved Ample off paved C Visible, average traffic flow, may have some synergy from surroundings Wood, Steel, or Concrete Frame Average design, typical finish and fenestration, concrete, wood, stucco, or metal with mix of other exterior Average quality finish, typical floor covering, wall finish, trim, heat system 15 to 25 year effective age, some deferred maintenance and/or functional obsolescence evident but major components still function and have utility, not unappealing Average or typical size (Restaurant 3,200sf - 3,945 sf, Bar 2,700sf) Typical or average ceiling height Sufficient off paved D Limited visibility, near a main road, little to no synergy from surroundings Wood or Concrete Frame Plain design, less than typical finish and fenestration, sheet, metal, wood, concrete, or stucco Plain, inexpensive finish, floor covering, wall finish, and heat year effective age, deterioration is somewhat worse than normally expected, some obvious deferred maintenance and/or functional obsolescence, appears worn Average to large size, larger structures tend to have lower rents per SF if all else is equal (Restaurant 3,945sf - 5,000sf) Lower than typical ceiling height Limited off E Side or not visible, low traffic flow, negative synergy Wood or pole frame Simple very plain design, little fenestration and very plain finish, inexpensive exterior sheet, wood, or metal covering Minimally or poorly finished, inexpensive floor covering, wall finish, and heat 35+ years, older or very obvious deferred maintenance and/or functional obsolescence, deterioration much worse than normal, several major components need repair or replacement, substandard utility, unappealing Larger structures tend to have lower rents per SF if all else is equal (Restaurant 5,000sf +) Low ceiling height Limited to no off, may be gravel NOTE: Properties usually have extensive food service, are freestanding structures, and may have a separate drinking lounge area. Some lounge areas may need to be valued using bar. Lack of cooking facilities, wiring, plumbing - consider retail for highest and best use. If property is located in a retail strip, use retail Industry standard median freestanding restaurant size is approximately 3,050 square feet with average size approximately 3,200 square feet - 4,000 square feet. Countywide freestanding median restaurants size is 3,995 square feet with average size of 4,428 square feet. Countywide median freestanding bar size is approximately 2,766 square feet. Average freestanding bar size is approximately 2,747 square feet. Restaurants have 6-8 of square feet in dining rooms, 2-4 in kitchens, preparation, and storage areas. Bars have significantly less or lack a kitchen area.

4 Kitsap County Assessor Tax Year: 2018 Property Type: Eating & Drinking Neighborhood: , , , , , , , Class A Class B Class C Class D Class E Bar Rest Not Used Club Income Mode

5 Kitsap County Assessor Local Income Survey for Eating & Drinking - Bar PGI per Unit Vacancy EGI per Unit Expense % $18.75 $18.75 $16.00 $16.00 $8.70 $8.69 NOI per Unit $18.75 $16.00 $8.69 Kitsap County Assessor Local Income Survey for Eating & Drinking - Restaurant PGI per Unit Vacancy EGI per Unit Expense % $22.71 $22.71 $18.72 $18.72 $17.38 $ % $ $ % $14.65 $ % $13.82 $ % $12.53 $ % $12.07 $12.07 $ % $11.34 $8.50 $8.50 $6.15 $6.15 NOI per Unit $22.71 $18.72 $17.20 $9.17 $10.55 $13.68 $12.40 $12.07 $11.34 $8.50 $6.15 Printed: 6/5/2017

6 KITSAP COUNTY ASSESSOR Tax Year 2018 Countywide Sales for Eating and Drinking - Restaurant and Bar 01/01/ /31/2016 No. Nbrhd Parcel No. Project Name #Units Excise# VC Sales Date Sale Price Assessed Value Ratio Pacific - Cafe 1, EX01412 V 6-Mar-2013 $ 90,000 $ 101, % Outback Steakhouse Restaurant 6, EX08882 V 27-Dec-2013 $ 1,200,000 $ 1,096,560 91% N Callow - Gyo Gyo Restaurant 2, EX00527 V 27-Jan-2014 $ 300,000 $ 192,530 64% Beach Side Grill and Bar 4, EX02511 V 29-Apr-2014 $ 210,000 $ 229, % Olive Garden & Red Lobster 17, EX05099 V 28-Jul-2014 $ 7,069,325 $ 4,603,900 65% Wheaton Way - Los Cabos 3, EX01731 V 20-Mar-2015 $ 310,000 $ 344, % N Callow - Pho Tai Restaurant 2, EX02964 V 22-Apr-2015 $ 385,000 $ 192, The Garage Bar & MF 013 & 014 7, EX00267 D 14-Jan-2016 $ 800,000 $ 660,700 83% Hiro Sushi Restaurant EX01631 V 23-Feb-2016 $ 165,000 $ 159,780 97% Restaurant Manette EX03268 V 17-May-2016 $ 274,000 $ 131,460 48% The Curry Indian Cuisine & Lounge 2, EX04139 V 16-May-2016 $ 160,000 $ 235, % No. Comments VC Validity Code Count 11 1 Bank sale. D Not economic unit Low 48% 11 Bank sale. V Valid High 147% M Other Median 91% E Estate Mean 89% W With other property AAD 0.24 U Change of use COD Removed Sales No. Nbrhd Parcel No. Project Name #Units Excise# VC Sales Date Sale Price INVALID - Rb's Fish & Chips - Mill Hill Dr. 2, EX06242 M 26-Aug-2015 $ 410, Wheaton Way - Pizza Time 2, EX02698 U 26-Apr-2013 $ 265, Denny's Kitsap Way 6, EX04211 M 22-Jun-2015 $ 1,000, INVALID-Toy's Topless 3, EX06455 E 12-Sep-2013 $ 74, Auto Repair, Jimmy D's Diner 7, EX05444 V 27-Jul-2015 $ 600, Horse and Cow Bar & Grill 5, EX08753 W 2-Dec-2015 $ 185,000 No. Comments Nbrhd Neighborhood 1 Tenant buyout, owner financing Downtown Bremerton 2 Purchased for change of use West Bremerton 3 Tenant buyout Wheaton Way 4 Estate sale Callow 5 Mixed used property Silverdale 6 Purchased for change of use Central Kitsap Highway 303 East Bremerton Port Orchard UGA Downtown South Kitsap UGA Gorst