TRAYNOR & ASSOCIATES, INC East 75 th Street Indianapolis, Indiana 46250

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1 SUMMARY APPRAISAL REPORT November 15, Maple Street Fishers, Indiana (Hamilton County) Effective Date of Valuation: As Is November 12, 2013 Appraisers: Joseph C. Traynor, MRICS, GAA Indiana Certified General Appraiser #CG Scott C. Manning Indiana Licensed Appraiser Trainee #TR TRAYNOR & ASSOCIATES, INC East 75 th Street Indianapolis, Indiana Requested By: Ms. Portia Bailey Project Manager One Municipal Drive Fishers, Indiana Maple Street Fishers, IN 1

2 Ms. Portia Bailey Assistant Director, Economic Development One Municipal Drive Fishers, Indiana Traynor & Associates, Inc. Real Estate Appraising & Consulting November 15, 2013 RE: Summary Appraisal Of: Maple Street Fishers, IN Dear Ms. Bailey: An inspection of the above referenced property has been made for the purpose of providing an estimate of the as-is fee simple market value of the subject property, as of November 12, 2013, the date of the most recent inspection. The subject of this appraisal includes a 1,508 +/- square foot house, situated on approximately 0.25 acres. The structure was constructed in 1940 as a single family residence, but is currently functioning as a commercial office (glass repair business). Also present is a detached garage and 4 storage sheds. Site improvements consist of a partial wood fence, a wood deck, concrete steps and patio/stoop, an established lawn area and some decorative landscaping East 75 th Street, Indianapolis, Indiana Phone: (317) , Fax: (317) Joe@TraynorAssociates.com Maple Street Fishers, IN 2

3 Definition of Market Value Market Value as defined by the Appraisal Standards for Federally Related Transactions 12 CFR Parts 208 and 225 [Regulation H, Regulation Y; Docket No. R-0685] is as follows: 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. Definition of As Is Value The value of specific ownership rights to an identified parcel of real estate as of the effective date of the appraisal; relates to what physically exists and is legally permissible and excludes all assumptions concerning hypothetical market conditions or possible rezoning. As defined by the Appraisal Institute s Dictionary of Real Estate Appraisals, Fourth Edition. The following summary appraisal report consisting of 59 pages including accompanying illustrations describes the appraisal methodology and contains pertinent data gathered in the inspection of the property and the appraisers' analysis of the findings. The appraisal report conforms to appropriate agencies' regulations regarding appraisals of real estate, adopted pursuant to Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of This report has also been prepared in conformity with the Uniform Standards of Professional Appraisal Practice effective January 2012 promulgated by the Appraisal Standards Board of the Appraisal Foundation and the requirements of the Code of Professional Ethics of the Appraisal Institute Practice Maple Street Fishers, IN 3

4 Based upon the analysis contained within each valuation section of this report, the following estimates of market value are concluded: The estimated market value of the subject as of November 12, 2013, the date of inspection, is: ONE HUNDRED EIGHTY THOUSAND DOLLARS ($180,000) Joseph C. Traynor, MRICS, GAA Indiana Certified General Appraiser #CG Scott C. Manning Indiana Trainee Appraiser #TR Maple Street Fishers, IN 4

5 CERTIFICATION We certify that, to the best of our knowledge and beliefs: The statements of fact contained in this report are true and correct. The reported analyses, opinions and conclusions are limited only to the reported assumptions and limiting conditions explained in the report, and are our personal, impartial, and unbiased professional analyses, opinions and conclusions. We 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. We have no bias with respect to the property that is the subject of this report or the parties involved with this assignment. Our engagement for completing is not contingent upon the reporting of predetermined results. Our 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. Our analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the most recent issue of the Uniform Standards Of Professional Appraisal Practice promulgated by the Appraisal Standards Board of The Appraisal Foundation and the requirements of the Code Of Professional Ethics Of The Appraisal Institute. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. Scott C. Manning has made a personal inspection of the property that is the subject of this report. Joseph C. Traynor did not inspect the property, but is familiar with the area and performed a desk review. No one provided significant professional assistance to the persons signing this report. Traynor and Associates has not provided professional services in regards to the subject property within the last 3 years. Joseph C. Traynor, MRICS, GAA Indiana Certified General Appraiser #CG Scott C. Manning Indiana Trainee Appraiser #TR Maple Street Fishers, IN 5

6 ASSUMPTIONS AND LIMITING CONDITIONS THIS APPRAISAL IS SUBJECT TO THE FOLLOWING UNDERLYING ASSUMPTIONS AND QUALIFYING AND LIMITING CONDITIONS: 1. This is a summary appraisal report, which is intended to comply with the reporting requirements set forth under Standard Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice for a summary appraisal report. As such, it includes full discussions of the data, reasoning and analyses that were used in the appraisal process to develop the appraiser s opinion of value. It also includes thorough descriptions of the subject property, the property's locale, the market for the property type, and the appraiser s opinion of the highest and best use. 2. The value of the property is expressed in dollars on the date specified and is subject to any changes in the value of the dollar. All existing liens or encumbrances have been disregarded and the property is appraised as though free and clear under responsible ownership and competent management. 3. The legal description furnished is assumed to be correct. No survey was available (unless otherwise stated) and the dimensions used are from sources deemed to be reliable. 4. All information and comments concerning the location, neighborhood, trends, construction quality and costs, loss in value from whatever cause, condition, rents, or any other data of the property appraised herein represent the estimates and opinions of the appraiser, formed after an examination and study of the property. 5. All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 7. It is assumed that there is full compliance with all-applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined and considered in the appraisal report. 8. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined and considered in the appraisal report. 9. It is assumed that all required licenses, certificates of occupancy, consents or other legislative or administrative authority from any local, state or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estate contained in this report is based. 10. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 11. The forecasts, projections or operating estimates contained herein are based upon current market conditions, anticipated short-term supply and demand factors and a continued stable economy. These forecasts are, therefore, subject to changes in future conditions Maple Street Fishers, IN 6

7 12. In preparing this appraisal, the appraiser was required to rely on information furnished by other individuals or found in previously existing records and/or documents. While it is believed the information, estimates and analysis given and the opinions and conclusions drawn therefrom are correct, the appraiser does not guarantee them and assumes no liability for any errors in fact, in analysis, or in judgment as a result of the inaccuracy of such information. No attempt has been made to render an opinion of title or status of easements or of any other matter of a legal nature. 13. The distribution of the total valuation in this report between land and improvements apply only under the existing program or utilization. The separate valuations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 14. Possession of this report, or a copy thereof, does not carry with it the right of publication, nor may it be used for any purpose by any but the client for whom it was made without the consent of the appraiser or the client. 15. The fee for this appraisal does not provide compensation for conference or testimony or attendance in court, with reference to the property in question. 16. This appraisal represents the independent opinions of the appraiser s free from any commitments and free from any present or contemplated future interest in the property, with the sole compensation for the employment being a fair professional fee. 17. Neither the fee nor the employment to make the appraisal was contingent on the value to be reported. Further, the appraisal was not based on a requested minimum valuation, specific valuation or the approval of a loan. 18. The existence of hazardous material, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property unless specifically stated within the appraisal report. The appraiser are not qualified to detect such substances and no responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if there is any suspicion of hazardous material. 19. The presence of substances such as asbestos, urea-formaldehyde foam insulation, radon gas, or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. 20. Much of the data contained in this appraisal was obtained from sales representatives of the various subdivisions that were analyzed. While attempts have been made to verify this information with other sources, the accuracy of the information, while believed to be accurate, is not warranted Maple Street Fishers, IN 7

8 Maple Street Fishers, IN 8 SUBJECT SETTING MAP

9 Summary of Important Facts and Conclusions Property: Converted Single Family Dwelling Location: Maple Street Fishers, IN Owner of Record: Baird, Robert T. Zoning: TCMS Town Center Main Street District Highest and Best Use: Low Intensity Commercial/ Mixed Use Site Area: 0.25 Gross Acres 10,890 Square Feet Building Area: 1,508 Square Feet Valuation Section: Property Value Estimate Via: Cost Approach: Income Capitalization Approach : N/A N/A Sales Comparison Approach: $180,000 Effective Date of "As-Is" Market Value November 12, 2013 Estimated Fee Simple Market Value $180, Maple Street Fishers, IN 9

10 PART TWO PREMISES OF THE APPRAISAL Maple Street Fishers, IN 10

11 TYPE OF REPORT The report is a summary appraisal report as defined by USPAP. EXTRAORDINARY ASSUMPTIONS & HYPOTHETICAL CONDITIONS There are no extraordinary assumptions or hypothetical conditions for this appraisal. PURPOSE OF THE APPRAISAL The purpose of the appraisal is to estimate the as-is fee simple value of the subject as of November 12, 2013, the date of inspection. INTENDED USE AND USERS OF THIS APPRAISAL Ms. Portia Bailey, Project Manager for the Town of Fishers, the individual who requested this appraisal has stated that the intended use of the appraisal report is for the purpose of estimating the fair market value of the property known as Maple Street in Hamilton County, Indiana as of November, 2013 for proposed acquisition, and for eminent domain purposes, if negotiations with the owners for the purchase of the property are unsuccessful. Any other use of this report is unauthorized without the written consent of the appraisers. The intended user of this report is The Town of Fishers, Indiana. DEFINTION OF VALUE Market Value as defined by the Appraisal Institute and the Appraisal Standards for Federally Related Transactions 12 CFR Parts 208 and 225 [Regulation H, Regulation Y; Docket No. R-0685] is as follows: 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 Maple Street Fishers, IN 11

12 (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. EFFECTIVE DATE OF APPRAISAL The effective date of the appraisal is November 12, 2013, the date of inspection. DATE OF THE REPORT The date of the report is November 15, PROPERTY RIGHTS APPRAISED The property rights appraised are those accruing to fee simple estate of the subject property. Fee Simple Estate is defined by the Appraisal Institute as: "Fee Simple Estate. Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat." The Dictionary of Real Estate Appraisal, Fifth Edition. SCOPE OF WORK In preparing this appraisal, the appraisers: Inspected and photographed the subject property Gathered sales information on competing properties and analyzed demographic data for the subject area. Verified zoning, flood plain information and other data in connection with subject. Researched industry publications Confirmed and analyzed the data and applied the sales comparison approach to arrive at an indication of value. The subject property is identified by an address, and a legal description is contained herein Maple Street Fishers, IN 12

13 Information utilized in the preparation of the appraisal report was obtained from various sources. Additional information contained within the appraiser's files from previous appraisals in the area is relied upon in the valuation process. Other comparable information utilized in the preparation of the report was obtained from local Real Estate Brokers, and Appraisers. Additional data utilized in the preparation of the appraisal was obtained from various sources including the Indiana Real Estate Data Center and The Site to do Business Online. The comparable information was verified with either a participant in the transaction (buyer, seller or broker) or with appraisers knowledgeable about the transactions. Scott C. Manning performed an exterior and interior inspection of the subject property. Joseph C. Traynor did not inspect the property, but is familiar with the area and performed a desk review of the appraisal. The appraiser applied the sales comparison approach to arrive at a value indication for the subject property. The sales comparison approach is considered to be the most reliable approach in an active market when an adequate quantity and quality of comparable sales data are available. In addition, it is typically the most relevant method for owner-user properties, because it directly considers the prices of alternative properties with similar utility for which potential buyers would be competing. The cost approach was not developed due to the age of the improvements and the difficulty in determining accrued depreciation. The Income Capitalization approach does not typically represent the primary analysis undertaken by the typical owner-user and thus was not developed Maple Street Fishers, IN 13

14 PROPERTY HISTORY The records of the Assessor s Office of Hamilton County indicate Robert T. Baird currently owns the subject property. We are unaware of any pending transactions or transfers of the subject property within the past 3 years. COMPETENCY PROVISION Details of the qualifications of the appraiser involved with this assignment are included at the back of the report. Joseph C. Traynor is the Principal of Traynor & Associates and has been appraising commercial, industrial, residential and special use property since Assignments over this time period have encompassed a broad range of property types including numerous residential, commercial and mixed use developments. These assignments have primarily been in Indiana, however, have included other states in the Midwest. He holds the MRICS Designation, Chartered Valuation Surveyor of the Royal Institution of Chartered Surveyors (RICS) the GAA and RAA designations with The National Association of Realtors, is, and is a State Certified General Appraiser in Indiana. As a result of his appraisal experience and expertise that is detailed on the qualifications pages, he posses the professional competency required to conclude a reliable opinion of value for the subject property. Scott C. Manning has been affiliated with Traynor & Associates, Inc. since September of His attention is focused on appraisal assignments including commercial and industrial use properties, agricultural and development land, special use and multi-family use properties. He has held a Real Estate License since 2003 and has also obtained his Broker s License. He now holds an Appraiser Trainee s License in the State of Indiana, as of September Maple Street Fishers, IN 14

15 PART THREE PRESENTATION OF DATA Maple Street Fishers, IN 15

16 AREA ANALYSIS The subject is located within Delaware Township, of Hamilton County, which is a part of the ten-county Core Based Indianapolis Metropolitan Statistical Area (CBSA). The term "Core Based Statistical Area" (CBSA) is a collective term for both metro and micro areas. A metro area contains a core urban area of 50,000 or more population, and a micro area contains an urban core of at least 10,000 (but less than 50,000) population. Each metro or micro area consists of one or more counties and includes the counties containing the core urban area, as well as any adjacent counties that have a high degree of social and economic integration (as measured by commuting to work) with the urban core. The subject property, Delaware Township, and Hamilton County are subject to the influences both of Marion County and the Indianapolis metropolitan area. Thus, the Indianapolis CBSA, Marion County, and Hamilton County are analyzed for this project. The location of the project within the area is shown on the accompanying map. Marion County is the largest county included in the ten counties comprising the Core Based Indianapolis Metropolitan Statistical Area (CBSA). In June of 2003 the MSA was redefined to the CBSA when Madison County was dropped and Putnam and Brown County were added. The data on a few of the tables refers to the subject area as it was formerly known as the Indianapolis MSA. In these instances the older statistics were not available based on the newer ten-county CBSA and thus the MSA statistics are shown. Indianapolis is the state capital and county seat of Marion County. It is located in the geographic center of Indiana, approximately 175 miles southeast of Chicago, Illinois, 110 miles northwest of Cincinnati, Ohio, and 110 miles north of Louisville, Kentucky. One of the major reasons for Indianapolis' size and economic vitality is its accessible location. The city is served by numerous interstates including 1-65, 1-69, 1-74, and All of these interstate highways connect with 1-465, which is an interstate that encircles Indianapolis in a six to ten-mile radius from the central business district. The city is also served by numerous rail lines, including both passenger and freight, and the Indianapolis International Airport. Population: Population statistics are important to consider because a significant portion of housing demand is predicated on population growth. As the exhibit on the following page shows, the population of Indiana is increasing. Marion County, the central and most populated county in the Indianapolis MSA, is growing at a slower pace than the state and Indianapolis CBSA. This is due to the decreased availability of land for residential development in Marion County. In turn, the counties surrounding Marion County are experiencing dramatic growth as existing farmland is being developed to support the real estate demands of a growing metropolis Maple Street Fishers, IN 16

17 Hamilton County is one of five counties (Hamilton, Hendricks, Johnson, Boone and Hancock) in the state that are projected to have a population gain of over 30% between 2000 and Hamilton County is the 4th largest county in the state in terms of population. According to 2010 statistics, Clay Township has the highest population within Hamilton County at 83,293 people. The Fall Creek Township ranks second with a population of 51,613 people and The Delaware Township ranks fifth with a population of 30,617. Many residents of Hamilton County can be considered upper middle class. The 2000 census shows that the average median family income for the State was $50,261. The average median family income for Hamilton County was found to be the highest in the state at $79,927. INDIANAPOLIS CBSA HISTORICAL AND PROJECTED POPULATION U.S. Bureau of Census Projected Population Change County Boone 30,870 36,446 38,147 46,107 56,640 61,621 66,161 70, % Brown 9,057 12,377 14,080 14,957 15,242 15,412 15,393 15, % Hamilton 54,532 82, , , , , , , % Hancock 35,096 43,939 45,527 55,391 70,002 76,237 81,796 87, % Hendricks 53,974 69,804 75, , , , , , % Johnson 61,138 77,240 88, , , , , , % Marion 792, , , , , , , , % Morgan 44,176 51,999 55,920 66,689 68,894 70,432 71,754 72, % Putnam 26,932 29,163 30,315 36,019 37,963 38,494 38,897 39, % Shelby 37,797 39,887 40,307 43,445 44,436 44,879 45,183 45, % Total CBSA 1,145,871 1,208,115 1,294,217 1,525,504 1,756,241 1,868,764 1,973,234 2,071, % Source: U.S. Bureau of the Census, Indianapolis Chamber of Commerce and Indiana Business Research Center 450, , , , , , , ,000 50,000 0 Boone Brown Hamilton Hancock Hendricks Johnson Morgan Putnam Shelby The subject area is in Delaware Township. This area has experienced a recent increase in commercial activity to support the growing population of the subject s area, which includes the significant residential growth in the neighboring Fall Creek Township. Hamilton County is one of five counties (Hamilton, Hendricks, Johnson, Boone and Hancock) in the state that are projected to have a population gain of approximately 30% between 2010 and Hamilton County ranks first in population growth between 2000 and The estimated population in Hamilton County in 2010 was 274,569 people, up from 182,740 in Maple Street Fishers, IN 17

18 As seen, Hamilton County has experienced substantial growth in population during the period of 1980 through The following table reflects historical population growth at the township level between 1980 and 2010 for Hamilton County. HAMILTON COUNTY POPULATION BY TOWNSHIP TOWNSHIP Adams 4,307 4,504 4,892 4, % 8.6% -0.7% Clay 32,606 43,007 64,709 83, % 50.5% 28.7% Delaware 4,660 10,524 28,268 30, % 168.6% 8.3% Fall Creek 2,757 4,415 17,079 51, % 286.8% 202.2% Jackson 7,435 8,446 9,919 10, % 17.4% 4.5% Noblesville 18,894 24,247 34,534 50, % 42.4% 46.4% Washington 7,425 9,272 18,358 32, % 98.0% 79.1% Wayne 1,898 2,071 2,415 7, % 16.6% 226.5% White River 2,045 2,450 2,566 2, % 4.7% -3.1% Hamilton County 82, , , , % 67.7% 50.3% SOURCE: Bureau of Census Hamilton County's population has more than tripled since From 2000 to 2010 population has increased 50.3% in the County. Numerous residential subdivisions, many of them upperend, as well as supporting commercial development including special use, office, retail and industrial uses have been developed in this area over the last ten years. Employment: Within Indiana, the Indianapolis CBSA employs approximately 1 in 3 Indiana workers. In the past, Indiana s economy has been heavily invested in manufacturing. In fact, the manufacturing sector accounts for approximately 19% of all jobs in Indiana. However, the number of manufacturing jobs has decreased significantly due to increasing automation, improved efficiency, foreign competition and outsourcing. According to economists at Indiana University, manufacturing share (28%) of Indiana s gross domestic product (GDP) is still the largest of any sector. Indiana sectors with GDP that has increased in recent years includes retail; transportation and warehousing; arts and entertainment; health care, technical services, and administrative and support services Maple Street Fishers, IN 18

19 The U.S. Economy has been in a recession. Although it was determined that the recession ended in June 2009, this does not mean that the economy has returned to operating at normal capacity. In fact, economic activity has remained below normal. Rather, it was only determined that the recession ended and a recovery began in that month. A recession is a period of falling economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale retail sales. June of 2009 marked the end of the declining phase and the start of the rising phase of the business cycle. Economic activity is typically below normal in the early stages of an expansion, and it sometimes remains so well into the expansion. Some economists are saying that the American economy could experience painfully slow growth and stubbornly high unemployment for a decade or longer as a result of the 2007 collapse of the housing market and economic turmoil that followed. The creation of new jobs has remained sluggish as unemployment has remained high. There has been a slight decline in the unemployment rate over the past few months but not enough to generate widespread consumer confidence. Indianapolis has a high diversification of employment, as it is the state capital and the county seat of Marion County. The city's position as the state capital makes it a center of government employment. The largest employers in the city are Wal-Mart Stores with 37,000 employees, the federal government with 34,000 employees and the State of Indiana with approximately 32,000 employees. According to Indianapolis/Marion County has more than 400,000 employees. The city also has a number of large service and retail-oriented employers, such as the hospitals, the utilities, banks, and groceries. As will be shown later, much of the recent employment has occurred in these areas. Indianapolis is a major center in the insurance industry with home offices of some 70 insurance companies. The retail industry is also strong within the Indianapolis area; the city has 49 shopping centers averaging more than 50,000 square feet of selling space each, 20 having major department stores as an anchor, and four having more than one million square feet of space. Twenty industrial parks are dispersed throughout the city and its suburbs, and numerous banks meet the financial needs of business, industry, and local residents. The following table shows trends in the ten-county Core Based Indianapolis Metropolitan Statistical Area (CBSA) labor force and employment over the past five years. Indianapolis' unemployment rates are compared to U.S. and state averages Maple Street Fishers, IN 19

20 Hamilton County s unemployment rates are compared to U.S. and state averages. The employment data shows unemployment rates have increased significantly between 2007 and 2010 due to the recent nation-wide recession. However, unemployment rates have a shown a slight decline over the last two years. According to Hamilton County unemployment rates were below the national average as of August (Hamilton County s 5.4% compared to 7.3% nationwide). Additionally, according to the state of Indiana s unemployment rate was 7.5% as of August At 7.5%, Indiana's unemployment rate is near the nation's 7.3% and below the level of some of the neighboring industrial states Maple Street Fishers, IN 20

21 Commuting Patterns: A review of work/residence patterns based on Indiana IT-40 returns for tax year 2011 (most recent data available) is shown below. To summarize, approximately 66% of the Hamilton County labor force live and work in Hamilton County, while nearly 28% of Hamilton County residents work in Marion County. Approximately 7% of the Hamilton County workforce lives in Marion County. The mean travel time to work for residents of Hamilton County is approximately 25 minutes Maple Street Fishers, IN 21

22 Interest Rates and Housing: Mortgage interest rates have decreased over the past year with 30-year conventional mortgage rates being available near 4%. The recent downturn in interest rates, along with recent federal incentive programs for first-time homebuyers, is thought to have provided some positive impact to the local real estate market. The Indianapolis metropolitan area has experienced a high level of residential development over the past decade. However, residential building permits across all types of housing have fallen over the past three years. The decline of the housing market is well documented. Many national builders have pulled out or dramatically reduced their presence in the Indianapolis CBSA. Developers have slowed the development of new subdivisions until the inventory of existing lots is reduced. The number of building permits in the Indianapolis CBSA has decreased; and this trend is expected to continue until such time as the oversupply of bank/corporate owned homes evaporates. Conclusion The subject is located in Delaware Township which is the southern portion of Hamilton County. The township is adjacent north of Marion County (Indianapolis), and is therefore subject to the economic and demographic influences of both counties. The Indianapolis MSA has a widely diversified economic base. Although a substantial amount of employment has historically consisted of manufacturing, public and private sectors have identified this weakness in the economic base and are attempting to diminish the importance of the manufacturing sector, while increasing employment in wholesale, retail, service, and miscellaneous industries. The data presented earlier in this report indicate that economic conditions are generally superior in Hamilton County relative to the rest of the state and the nation as evidenced by population growth, job growth, lower levels of unemployment, higher income levels and higher home values. These signs of economic health are expected to continue in the future for both Hamilton County and the Indianapolis MSA Maple Street Fishers, IN 22

23 NEIGHBORHOOD DATA The term neighborhood is generally defined as a portion of a larger community or an entire community in which there is a homogenous grouping of inhabitants, buildings or business enterprises. Neighborhood boundaries may consist of well-defined natural or man-made barriers or may be defined by distinct changes in land use. Consequently, a specific definition of a neighborhood is a grouping of complementary land uses affected by similar operation of forces that affect property value. A neighborhood may also designate an area comprised solely of commercial or industrial properties, although the term district is often used for these properties. The subject property is located on the east side of Maple Street, just north of 116 th Street in Fishers, Indiana. The neighborhood boundaries might be best defined as Allisonville Road to the West, 106 th Street to the South, Cumberland Road to the East and 126 th Street to the North. The subject s neighborhood consists mostly of residential and retail commercial uses. There are also some industrial use properties along Interstate 69 and a few special use properties are also present. The properties to the immediate south and west of the subject are residential in design. However, it appears that a majority of those residential properties have been converted to commercial use properties that include insurance agencies, attorney offices, salons, HVAC repair, etc. To the immediate west and northwest of the subject property is the Hamilton East Public Library, as well as several other municipal buildings, located on Municipal Drive. Areas of significant residential development are located just west and south of the subject. There is a significant amount of retail development along 116 th and Interstate 69. The retail development includes big box retail (Target), several strip centers, restaurants, fueling stations and specialty shops. Northeast of the subject at State Road 238 and Olio Road is a new development known as Saxony. Saxony is a 725-acre development project in Hamilton County that spans both sides of I-69 at Exit 10. It will ultimately include a mix of office, retail, entertainment and civic space and single-and multi-family home. Saxony is a part of Noblesville s 3,600 acre Corporate Campus, which is to feature single-family houses, town homes, multifamily living, retailers, restaurants, office buildings, manufacturers, and an array of recreation and other amenities. The campus will exist in both Noblesville and Fishers. Noblesville s long-term goal is a Corporate Campus projected to create thousands of jobs and 12 to 16 million square feet of office and industrial space Maple Street Fishers, IN 23

24 In summary, the subject property is located in an area that has experienced rapid development over the past years. The subject s area is now considered to be in a level stage of growth, though values in the subject area are most likely being adversely affected by the national, regional and local economic climate. However, as evidenced by the population growth and unemployment statistics, the adverse effects of the current and recent economic climates may not be as significant in the subject area (specifically Delaware and Fall Creek Townships), when compared to a majority of the remainder of Hamilton County, as well as the 9-county Indianapolis MSA as a whole. The complimentary land uses that make up neighborhoods like the subject generally evolve through the four stages described as follows: 1) Growth - A period during which the neighborhood gains public favor and acceptance 2) Stability - A period of equilibrium without marked gains or losses 3) Decline - A period of diminishing demand 4) Revitalization - A period of renewal, modernization, and increasing demand Based on the previous discussed trends, the subject neighborhood appears to be currently situated in a state of stability, with pockets of growth. Based on development trends around Fishers, and Hamilton County and the subject's marketing area in general, it is anticipated that the subject neighborhood will remain in this stage for at least the short term and most likely for the longer term Maple Street Fishers, IN 24

25 Maple Street Fishers, IN 25 NEIGHBORHOOD MAP

26 LEGAL DESCRIPTION A brief description of the subject property is as follows: Section-36 Township-18 Range-04 Subdivision-Salathiel Fishers, Lot-25 Block-1 Salathiel Fishers ASSESSMENTS AND TAXES The State of Indiana Legislature passed and the Governor signed a major property tax reform law in March This had a significant impact on commercial and residential income properties. Specifically, the tax is now capped as a percentage of the assessed value. They also call this a circuit breaker. The caps are 1 percent for owner occupied residential, 2 percent for non owner occupied residential and 3 percent for commercial/industrial/business properties. According to records within the Hamilton County Assessor s Office, the subject property is identified as The parcel is assessed for land at $95,500, while the improvements are assessed for $60,200 for a total assessed value of $155,700. The subject property is located in the Delaware District. The 2012 payable 2013 tax rate (most recent available) is $ per $ of assessed valuation. The estimated annual tax burden for the subject is approximately $3, A full tax analysis is beyond the scope of this appraisal Maple Street Fishers, IN 26

27 ZONING The subject property is zoned TCMS, Town Center Main Street District and is under the jurisdiction of the Town of Fishers Planning Department. The following table illustrates the intent and permitted uses of the zoning district. The subject property is considered a legal and conforming use Maple Street Fishers, IN 27

28 PROPERTY DESCRIPTION The subject is located just north of 116 th Street on the east side of Maple Street on the west side of Fishers, Indiana. The subject property includes a /- acre tract of land improved with a single family dwelling, a detached garage and 4 storage sheds. A detailed description of the subject is as follows: Description of the Real Estate "As Is" General Description: Shape and Frontage: Improvements: The subject is located north of 116 th Street on the east side of Maple Street. The lot is rectangular in shape and has frontage on the east side of Maple Street. A converted single family dwelling containing approximately 1,508 square feet and built in 1940, a detached garage and 4 storage sheds are present. The exterior of the house is wrapped with vinyl siding; wood trim is also present. The roof has 1 layer of asphalt shingles. The shingles are moderately soiled, but appear intact and functional. The aluminum gutters are also intact and appear functional. The windows are vinyl and intact. Utilities: Easements: The layout of the interior consists of a living room which is functioning as a reception/entry, a small dining area, a kitchen, one full bath and 3 bedrooms functioning as private offices. There is also a loft that functions as a printing room/area and a full concrete block basement. The floor coverings consist of carpet, linoleum and vinyl flooring with wood trim. A majority of the walls and ceilings are painted plaster; wood paneling is present in the kitchen and a partial tile wall covering is present in the bathroom. The interior doors are wood. A gas furnace with central air and a gas water heater are present in the basement. The subject interior would benefit from updating, but displays no significant damage. The improvements are in fair to average condition. Private well and municipal sewer service. Indianapolis Water/ Citizens Water Company provide water in the area where lines are available. It is assumed the subject is affected by typical drainage and utility easements and by public road right-of-ways. The appraiser reserves the right to revise the value opinion if any other easements are revealed Maple Street Fishers, IN 28

29 Topography: Flood Map Review: Environment and Wetlands Assessment: The topography of the site is mostly level with a few large deciduous trees. According to FEMA Flood Map numbered 18057C0235F, dated February 19, 2003, as published by the National Flood Insurance Program, Federal Emergency Management Agency, the property does not appear to be located within a flood plain. The appraisers are not qualified to determine the exact location of the flood plain or the percent of the site within the flood plain. The client is urged to consult a professional to investigate further. The appraisers were not provided with an environmental study of the subject property. If the property is affected by environmental problems or by wetlands, the appraiser reserves the right to revise the value estimate Maple Street Fishers, IN 29

30 Maple Street Fishers, IN 30 FLOOD MAP

31 SUBJECT PHOTOS Street View: Looking South on Maple Street Street View: Looking North on Maple Street Maple Street Fishers, IN 31

32 House - Front View/ West Elevation House Side View/ North Elevation Maple Street Fishers, IN 32

33 House Side View/ South Elevation House Rear/East Elevation Maple Street Fishers, IN 33

34 Detached Garage (accessible from alley in rear) Storage Sheds in Rear Maple Street Fishers, IN 34

35 Living Room/Reception Kitchen Maple Street Fishers, IN 35

36 Loft/ Printing Area Upper Level Bedroom/Office Maple Street Fishers, IN 36

37 Additional Office Example Bathroom Maple Street Fishers, IN 37

38 PART FOUR ANAYSIS OF DATA AND CONCLUSIONS Maple Street Fishers, IN 38

39 HIGHEST AND BEST USE OF THE SUBJECT SITE AS VACANT The first consideration pertains to the legally permissible use of the land. The subject site is a rectangular shaped tract of land consisting of approximately 10,890 square feet, or 0.25 acres. There are no significant physical limitations on the subject site that affect potential development, with exception to size. Location of the subject property, zoning and characteristics of land development within the subject's area would indicate that the highest and best use of the subject parcel, as vacant, would be for some type of low intensity commercial and/or residential development. Physically possible uses include commercial, residential, or special use. Due to surrounding land uses, an industrial use is not further considered. The second test is physically possible. The property is a rectangular shaped tract of land of /- acres with frontage on Maple Street. The tract is large enough to accommodate a variety of low intensity commercial uses and is easily accessible, so a low intensity commercial or residential use would be considered to be a physically possible use. The next consideration in estimating the highest and best use as vacant is to determine what is legally permissible. The subject is zoned TCMS, Town Center Main Street District, and is subject to the jurisdiction of The City of Fisher s Planning Commission. The current zoning allows for a number of low intensity commercial uses that would contribute to an active market. The current zoning also allows for mixed used properties (residential within commercial buildings or in accessory structures associated with commercial buildings). The third test is for financial feasibility. This test requires that any use of the property should produce a return equal or greater to the amount needed to satisfy operating expenses, financial obligations, and capital amortization. An observation of the subject s market indicates the area is predominantly commercial with a few residential properties in the immediate area; several residential properties in the area have been converted and now being used as offices and specialty retail properties. The financial feasibility of commercial usage is demonstrated by development trends experienced in the subject s market area. It is considered reasonable that either a commercial use or mixed use property that serves the local community may indeed by financially feasible. The final test of Highest and Best Use as Vacant is whether the property is maximally productive. Of the financially feasible uses, the use that produces the highest residual land value consistent with the rate of return warranted by the market for that use is the highest and best use. There has been demonstrated demand for commercial development within the subject s marketing area and within the immediate area. The zoning of the subject and the characteristics of the subject neighborhood also support a low intensity commercial development. If the property were vacant and available for development, the most probable use of the subject site would either be for a low intensity commercial or a mixed use development. This use would be financially feasible and provide the highest rate of return from all financially feasible uses and thus, is considered to be the highest and best use of the site as vacant Maple Street Fishers, IN 39

40 Considering the past and present levels of development activity, the overall projections of growth and population and income for the subject's marketing area, it is considered that the highest and best use of the subject parcel, as vacant, would be for a low intensity commercial development which would be compatible with the overall pattern of development within the subject's neighborhood. HIGHEST AND BEST USE OF THE SUBJECT PROPERTY AS IMPROVED The subject contains approximately 1,508 square feet of gross building area. The building is situated on a tract of land with a gross land area of /- acres, or approximately 10,890 square feet, indicating a land to building ratio of 7.22 to An analysis of land to building ratios for the office comparables indicates a range from 5.14 to with a mean indication of 9.68 and a median indication of The subject property s land to building ratio is within the range of the comparables and appears to be developed to its maximum potential. The subject s current use as an office (converted residential property) is consistent with the trends in the market area and the immediate surrounding properties. The subject is located in a primarily commercial area, where a majority of the residential properties within close proximity have been converted to low intensity commercial use properties. This illustrates the demand for commercial properties in the subject s market. Thus, the subject improvements are not considered to suffer from any form of functional or economic obsolescence. The subject s design and quality of construction appear somewhat similar to the typical converted single family residences in the subject neighborhood (as noted above, a majority of the single family dwellings in the immediate area have been converted for low intensity commercial use purposes). Since the improvements are in fair to average condition, demolition of the existing improvements is not considered to be a viable alternative in the highest and best use analysis Maple Street Fishers, IN 40

41 The financial feasibility of the subject as a low intensity commercial use is supported by development trends and population in the immediate area, as well as its current use as such. When determining highest and best use, if the value of the improvement less demolition is greater than the land value, the improvements should be retained. The appraiser has reviewed land values in the general area as well interviewed market participants and has concluded that the value of the site as vacant is less than the value of the subject as improved. The improvements clearly make a positive contribution to the value of the site and should be retained. In summary, the design and functionality of the subject property as a low intensity commercial use follows the recent pattern of development trends within the immediate area. A majority of the immediate surrounding properties are commercial. Additionally, a majority of the single family residences in the area have been converted for some sort of low intensity commercial use. Thus, the subject s current use as a low intensity commercial use is considered to represent the highest and best use of the subject property and a use which is consistent with the highest and best use as vacant Maple Street Fishers, IN 41

42 VALUATION TECHNIQUE AND PROCEDURE There are three basic approaches to the valuation of real estate: The Cost Approach is the method in which the value of the real estate is derived by estimating the replacement or reproduction cost new of the subject improvements and deducting the estimated depreciation which would accrue from all causes. The market value of the underlying land is estimated by the use of market data and added to the depreciated value of the improvements. The simplest definition of depreciation is the difference between replacement or reproduction cost new of the improvements and market value as indicated by the other approaches to value. The second approach to value is the Income Capitalization Approach which measures the present value of the future benefits of ownership. Direct capitalization and yield capitalization are methods of valuation based on different measures of anticipated earnings and have distinct assumptions concerning the relationship between anticipated earnings and value. Direct capitalization is utilized to convert a single year s net income expectancy into an indication of market value. This approach to value has greatest applicability for a property which would typically be purchased as an investment. The third approach to value is the Sales Comparison Approach. This appraisal technique estimates market value by comparing actual market transactions of similar type properties with the subject property. Various adjustments are applied to the comparables to reflect the differences between the sale properties and the subject. This approach depends on a high degree of comparability between market sales and the subject. It is generally considered that the Sales Comparison Approach is one of the strongest indicators of market value, given adequate market data with an appropriate level of detail. Each of the above approaches considers the value of the subject property from a slightly different point of view. A final value conclusion is not an average of the values indicated by the three approaches, but rather a considered judgment on the part of the appraiser based on the quantity and quality of the data available for examination in each approach and the relevance of each approach to the subject property. In this appraisal, The Sales Comparison Approach to value will be employed to develop an indication of market value for the subject property. The Cost Approach to value is not developed due to the age of the improvements and the difficulty in determining accrued depreciation. The Income Capitalization approach does not typically represent the primary analysis undertaken by the typical owner-user and thus was not developed Maple Street Fishers, IN 42

43 SALES COMPARISON APPROACH The Sales Comparison Approach is defined as: A set of procedures in which an appraiser derives a value indication by comparing the property being appraised to similar properties that have been sold, applying appropriate units of comparison and making adjustments based on the elements of comparison to the sale price of the comparables. Four principles of real estate applied within the Sales Comparison Approach are: 1. The principle of supply and demand 2. The principle of balance 3. The principle of substitution 4. The principle of externalities The price of a property is established within the marketplace with the supply and demand factors at any given point in time having a direct relationship on the price level of that property. Typically, when the supply of properties is high and demand is low, property values diminish to a point where demand begins to equal current supply. Conversely, when demand factors are high and supply is relatively scarce, property values increase until supply and demand move toward a point of balance. The principle of substitution holds that the price of a property is set by the cost of acquiring an equally desirable, substitute property. The principle of externalities states that external factors, outside the property lines, both positive and negative, have an impact on all properties. The Sales Comparison Approach is applicable to all types of property and property rights where there is sufficient, accurate and factual data available for analysis and comparison. The approach may be distorted when there are rapid changes in economic conditions, changes in government laws and regulations in regard to zoning or taxation, or significant changes in the availability and cost of financing Maple Street Fishers, IN 43

44 The systematic procedure employed within the Sales Comparison Approach consists of researching the marketplace to obtain information on sales and/or listings of properties, which can be analyzed and related to the subject property. The market data must be verified to determine that it is factual, accurate and representative of an arm s length transaction. Determination of relevant units of comparison must be abstracted from market data in order to compare the elements of comparison between the subject and the comparable sale. The final step is reconciliation of the various value indicators to arrive at a conclusion of value. Units of comparison employed with the Sales Comparison approach consist of the component parts of a property, which have a relationship to the sale price of the property for the purpose of comparison and analysis. Examples of units of comparison are: 1) sale price per square foot of gross building area; 2) sale price per square foot of net rentable area; 3) sale price per unit; and 4) sale price per room. The elements of comparison are characteristics in properties and transactions that cause a variance in prices. These elements are defined as: 1) property rights conveyed; 2) financing terms; 3) conditions of sale; 4) market conditions (time); 5) locational characteristics; 6) physical characteristics; and 7) income characteristics. Adjustments for the difference in the elements of comparison between the subject and the comparable can be adjusted either on a percentage basis or a dollar amount. The adjustments are made in a sequence to allow proper allocation for the differences in the elements of comparison. A comparable sale must first be adjusted for property rights conveyed, financing terms and conditions of sale, and then for market conditions (time) in order to provide an equal basis for analysis of locational, physical and income characteristic differences. There is an adequate supply of market data to be utilized within the Sales Comparison Approach to value. The sales have been analyzed on a sale price per square foot of gross building area. The sales utilized in the Sales Comparison Approach are as follows: Maple Street Fishers, IN 44

45 Maple Street Fishers, IN 45 COMPARABLE SALES MAP

46 COMPARABLE SALE 1 ADDRESS: 531 North Rangeline Road LAND AREA: CITY/STATE: Carmel, IN GBA/SF: 1,362 SALE DATE: November 30, 2012 LTB RATIO: 8.00:1 SALE PRICE: $170,000 SP/SF: $ SELLER: SNE, LLC YEAR BUILT: 1898 PURCHASER: K & P Property Development, ZONING: B-5, Business LLC FINANCING: Cash to Seller PRESENT USE: Office COUNTY: Hamilton CONDITION: Average PROPERTY DESCRIPTION: This comparable represents the sale of a residential dwelling that was converted into a doctor s office. Reportedly, the property was sold for general office use. The layout includes several exam/patient rooms, a lobby, private office and a check-in area Maple Street Fishers, IN 46

47 COMPARABLE SALE 2 ADDRESS: 610 North Rangeline Road LAND AREA: CITY/STATE: Carmel, IN GBA/SF: 1,696 SALE DATE: December 30, 2010 LTB RATIO: 5.14:1 SALE PRICE: $212,500 SP/SF: $ SELLER: Joseph A. Balogh, Jr. YEAR BUILT: 1920 PURCHASER: Jernigan & Associates, LLC ZONING: B-5, Business FINANCING: Cash to Seller PRESENT USE: Office COUNTY: Hamilton CONDITION: Average PROPERTY DESCRIPTION: This comparable represents the sale of a residential dwelling that was purchased for use as a real estate office. The property is located at the northwest corner of Rangeline Road and 6 th Street NW and includes a loft, a large detached garage and asphalt parking Maple Street Fishers, IN 47

48 COMPARABLE SALE 3 ADDRESS: Maple St. LAND AREA: acres CITY/STATE: Fishers, IN GBA/SF: 1,287 sf SALE DATE: March 16, 2012 LTB RATIO: 8.46:1 SALE PRICE: $82,000 SP/SF: $63.71 SELLER: Pamela Hennesy Fortune-Werbe YEAR BUILT: 1956 PURCHASER: John F. Kreutzinger ZONING: TCCR FINANCING: Cash to Seller PRESENT USE: Salon COUNTY: Hamilton CONDITION: Average PROPERTY DESCRIPTION: This comparable represents the 2012 sale of a commercial retail building located in Fishers, Indiana. The comparable is located down the street from the subject. At the time of sale, the site improvements to the property included a 720 square foot detached garage, with an observed value of $10,000. The garage was constructed in 1980 and it appears that it has been torn down since purchase Maple Street Fishers, IN 48

49 COMPARABLE SALE 4 ADDRESS: Lantern Rd. LAND AREA: CITY/STATE: Fishers, IN GBA/SF: 1,500 SALE DATE: May 27, 2010 LTB RATIO: 7.26:1 SALE PRICE: $217,000 SP/SF: $ SELLER: Jim W. & Tammi Johnson YEAR BUILT: 1930 PURCHASER: Schulhof Marketing Group Inc ZONING: TCMS FINANCING: Cash to Seller PRESENT USE: Office COUNTY: Hamilton CONDITION: Average PROPERTY DESCRIPTION: This comparable represents the 2010 sale of a 1,500 square foot office building located on the east side of Lantern Road in Fishers, Indiana Maple Street Fishers, IN 49

50 COMPARABLE SALE 5 ADDRESS: 8767 South St. LAND AREA: CITY/STATE: Fishers, IN GBA/SF: 1,069 SALE DATE: May 23, 2012 LTB RATIO: 18.74:1 SALE PRICE: $190,500 SP/SF: $ SELLER: 8767 South LLC YEAR BUILT: 1956 PURCHASER: Little Pink Houses Realty LLC ZONING: TCCR FINANCING: Cash to Seller PRESENT USE: Office COUNTY: Hamilton CONDITION: Average PROPERTY DESCRIPTION: This comparable represents the 2012 sale of a 1,069 square foot office building located on the south side of South Street in Fishers, Indiana Maple Street Fishers, IN 50

51 Sales Comparison Grid SUBJECT COMPARABLE #1 COMPARABLE #2 COMPARABLE #3 COMPARABLE #4 COMPARABLE # Property Address Maple Street North Rangeline Road North Rangeline Road Maple St. Lantern Road South Street Fishers, IN Carmel, IN Carmel, IN Fishers, IN Fishers, IN Fishers, IN Sale/List Price NA $170,000 $212,500 $82,000 $217,000 $190,500 Date of Sale NA Nov-12 Dec-10 Mar-12 May-10 Jun-12 Gross Bldg Area (SF) 1,508 1,362 1,696 1,287 1,500 1,069 Underlying Site Area (Ac.) Land/Bldg Ratio Sales Price per Square Foot N/A $ $ $63.71 $ $ Property Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Financing Terms Cash to Mtg. Cash to Mtg. Cash to Mtg. Cash to Mtg. Cash to Mtg. Conditions of Sale Arm's Length Arm's Length Arm's Length Arm's Length Arm's Length ADJUSTMENTS: Property Rights Conveyed $0 $0 $0 $0 $0 Adjusted Sale Price $ $ $63.71 $ $ Financing Terms $0 $0 $0 $0 $0 Conditions of Sale $0 $0 $0 $0 $0 Adjusted Sale Price $ $ $63.71 $ $ Market Conditions (time) Adjusted Sale Price $ $ $63.71 $ $ OTHER ADJUSTMENTS: Location/Site Superior Superior Inferior Superior Superior Physical Characteristics Similar Similar Similar Similar Similar Age/Condition Superior Superior Inferior Similar Superior Improvement Size Similar Similar Similar Similar Smaller Overall Comparison Superior Superior Inferior Superior Superior The preceding grid illustrates 5 sales of competitive properties within the subject s general marketing area. The comparables represent an adjusted unit rate (adjusted for market conditions only) for the subject ranging from $63.71 to $ per square foot with a mean indication of $ per square foot and a median indication of $ per square foot. The appraisers estimate that there has been some recent stabilization in economic conditions. Therefore, market adjustments were not considered necessary. Sales comparables 1, 2, 4 and 5 are considered superior to the subject, mostly due to location. Sale comparables 1, 2 and 5 are also superior in condition. Sale 3 is located on the same street as the subject, but is considered inferior in location. This is due to the fact that the subject is visible from 116 th, a major east/west thoroughfare and the comparable is not. Additionally, comparable sale 3 is considered inferior in condition and was purchased by an investor who owns multiple properties in the area. Given the previous analysis, the subject property is considered best represented at $ per square foot. Therefore, the subject s market value, as of November 12, 2013 the date of inspection, is estimated as follows: Maple Street Fishers, IN 51

52 1,508 square feet x $ per square foot = $180,960 Which is then rounded to: ONE HUNDRED EIGHTY THOUSAND DOLLARS ($180,000) Sincerely, Joseph C. Traynor, MRICS, GAA Indiana Certified General Appraiser #CG Scott C. Manning Indiana Trainee Appraiser #TR EXPOSURE & MARKETING TIME Exposure time is always presumed to precede the effective date of the appraisal. Based on market data presented and discussed in this report, an exposure time of 12 months to 24 months is estimated for the subject property. This estimate of exposure time assumes that the subject would have been available at an asking price that approximates its estimate of market value as derived within this report. In addition, the estimate of exposure time assumes a reasonable and sufficient marketing effort. Marketing Time is estimated to be 12 to 24 months and assumes that the subject would be marketed at a price close to the estimated market value Maple Street Fishers, IN 52

53 Maple Street Fishers, IN 53 ADDENDA

54 Maple Street Fishers, IN 54 Appraiser s Licenses

55 QUALIFICATIONS Scott C. Manning INDIANA LICENSED TRAINEE APPRAISER OFFICE: 6750 E. 75 th Street Indianapolis, Indiana Phone: (317) Fax: (317) Appraisal Course Work Completed: The Appraisal Institute Residential Report Writing and Case Studies Online Basic Appraisal Procedures Online Basic Appraisal Principles 15-Hour National USPAP Course EXPERIENCE: Appraiser, Traynor & Associates Inc, September 2010 Licenses: Indiana Licensed Trainee Appraiser #:TR Real Estate Associate Broker #:AB PROFESSIONAL MEMBERSHIPS AND DESIGNATIONS: Metropolitan Indianapolis Board of Realtors (Member) Indiana Association of Realtors (Member) National Association of Realtors (Member) Maple Street Fishers, IN 55

56 QUALIFICATIONS JOSEPH C. TRAYNOR, MRICS, GAA INDIANA CERTIFIED GENERAL APPRAISER OFFICE: 6750 East 75 th Street Indianapolis, Indiana Phone: (317) Fax: (317) EDUCATION: Business Administration, Ball State University, Architectural Technology, IUPUI, Appraisal Course Work Completed: Appraisal Institute Standards of Professional Practice - Part A Standards of Professional Practice - Part B Condemnation Appraising Course 550 Advanced Income Applications American Institute of Real Estate Appraisers Capitalization Theory and Techniques - Part A Capitalization Theory and Techniques - Part B Society of Real Estate Appraisers An Introduction to Appraising Real Property Applied Residential Property Valuation Narrative Report Writing Seminar Applied Income Property Valuation Appraisal Continuing Education Seminars Completed: Professional Practice and the Society of Real Estate Appraisers Feasibility Analysis - Highest & Best Use Applied Sales Comparison Approach The Appraiser As Expert Witness The Appraiser's Legal Liabilities Maximizing The Value Of An Appraisal Practice Rates, Ratios & Reasonableness Understanding Limited Appraisals - General Discounted Cash Flow Analysis The High Tech Appraisal Office Indiana Department of Transportation Right-Of-Way Seminar The Internet and Appraising Easement Valuation Appraisal of Local Retail Properties Market Extractions USPAP For Brokers** Environmental Issues Seminar Single Family Appraisals ** Subdivision Analysis 2-4 Family Appraisal ** A.D.A. Act Seminar Indiana Appraisers Licencense Law* PRO-JECT Financial Analysis Seminar The Appraisers Role in Zoning** Marshall Valuation Seminar Subdivision Demographics Analysis** Appraising Local Retail Properties The High Tech Real Estate Office ** Internet Search Strategies USPAP 2003 Update Analyzing Operating Expenses Case Studies in Highest and Best Uses - Commercial Partial Interest Valuation - Divided ** Author & Instructor * Instructor Qualifications Continued on Page Two 6/1/ Maple Street Fishers, IN 56

57 PROFESSIONAL MEMBERSHIPS AND DESIGNATIONS: MRICS - Royal Institution of Chartered Surveyors MAI Candidate: Appraisal Institute General Accredited Appraiser (GAA): National Association of Realtors Residential Accredited Appraiser (RAA): National Association of Realtors Metropolitan Indianapolis Board of Realtors (Member) Indiana Association of Realtors (Member) National Association of Realtors (Member) PROFESSIONAL INVOLVEMENT: Appraisal Foundation Chairman of the Board of Trustees 2011 Vice Chairman of the Board of Trustees 2010 Board of Trustees , Executive Committee AQB Certified USPAP Instructor Appraisal Institute Secretary 1991 MAI Candidate Liaison 1992 Candidate Leadership Committee Governmental Affairs Committee Chair Metropolitan Indianapolis Board Of Realtors Realtor of the Year 2005 Distinguished Service Award 2003 President 1996 President-Elect 1995 Secretary/Treasurer 1994 Moderator Leadership Academy Broker-Appraiser Committee Member Professional Standards Committee Finance Committee - Chair 1994 Indiana Appraiser Certification and Licensing Board Board Member appointed by Indiana Governor Mitch Daniels , C hair Indiana Association of Realtors Realtor of The Year 2006 President 2001 President-Elect 2000 Treasurer, Leadership Team 1999 Regional Vice President, Director National Association of Realtors Regional Vice President Appraisal Committee Chair Board of Directors , 2004 Appraisal Forum Commercial, Industrial Forum 1994 Appraisal Committee Maple Street Fishers, IN 57

58 LICENSES: Indiana Broker #:IB Indiana Certified General Appraiser #:CG EXPERIENCE: Co-Owner, Traynor Company Realtors, Independent Fee Real Estate Appraiser since 1985, specializing in commercial, industrial, residential, special use properties, subdivisions, rural properties, easements and right-of-way takings including assignments for financial institutions, public agencies, government agencies, real estate developers, attorneys and individuals Maple Street Fishers, IN 58

59 Maple Street Fishers, IN 59