Appraisal of. Tusculum College Training Center 1305 Centerpoint Boulevard Knoxville, TN Prepared For

Transcription

1 Appraisal of Training Center Prepared For Mr. Stephen J. Gehret Chief Financial Officer Tusculum College Prepared By Charles M. Smith MAl Charles M. Smith & Associates, Inc. 249 N. Peters Road, Suite 301 Knoxville, Tennessee Effective Date of Appraisal: March 7, 2007

2 CHARLES M. SMITH & ASSOCIATES, INC. REAL ESTATE APPRAISERS. CONSULTANTS 249 N. PETERS RD., SUITE 301 KNOXVILLE, TN (865) FAX (865) Date of Report: March 7, 2007 March 7, 2007 Mr. Stephen J. Gehret Chief Financial Officer RE: Real Estate Appraisal Training Center Dear Mr. Gehret: In accordance to your request, I have inspected and appraised the above described property for the purpose of estimating its market value for asset evaluation purposes with the value estimate applying as of the March 7, 2007 inspection date. As of the appraisal date, the subject is a 30,000 S.P. two-story Class A steel reinforced concrete frame single tenant office structure being fully occupied as the training center and administrative office building, completed August 2002 on a 4.29 acre site. The building is located on Centerpoint Boulevard approximately 700'± west ofpellissippi Parkway. The subject property is further identified as Knox County Tax Map 118, Parcel The following is a self contained report of a complete appraisal prepared in conformance with the Uniform Standards of Professional Appraisal Practice (US PAP) as adopted by the American Standards Board of the Appraisal Foundation regarding the enactment of Title XI of the Financial Institution Reform, Recovery and Enforcement Act of 1989 (FIRREA) and the instructions to the appraiser as enclosed in the Addenda. CHARLES M. SMITH, MAl

3 CHARLES M. SMITH & ASSOCIATES, INC. REAL ESTATE APPRAISERS. CONSULTANTS 249 N. PETERS RD., SUITE 301 KNOXVILLE, TN (865) FAX (865) March 7, 2007 Mr. Stephen J. Gehret Chief Financial Officer RE: Real Estate Appraisal Training Center Dear Mr. Gehret: In accordance to your request, I have inspected and appraised the above described property for the purpose of estimating its market value for asset evaluation purposes with the value estimate applying as of the March 7, 2007 inspection date. As of the appraisal date, the subject is a 30,000 S.P. two-story Class A steel reinforced concrete frame single tenant office structure being fully occupied as the training center and administrative office building, completed August 2002 on a 4.29 acre site. The building is located on Centerpoint Boulevard approximately 700'± west ofpellissippi Parkway. The subject property is further identified as Knox County Tax Map 118, Parcel The following is a self contained report of a complete appraisal prepared in conformance with the Uniform Standards of Professional Appraisal Practice (US PAP) as adopted by the American Standards Board of the Appraisal Foundation regarding the enactment of Title XI of the Financial Institution Reform, Recovery and Enforcement Act of 1989 (FIRREA) and the instructions to the appraiser as enclosed in the Addenda. CHARLES M. SMITH, MAl

4 Mr. Stephen Gehret Tusculum College March 7,2007 Page Two After careful analysis of the subject project and its competitive environment, the market value of the fee simple interest of the subject property, as of March 7,2007 is estimated as follows: FIVE MILLION FIVE HUNDRED THOUSAND DOLLARS ($5,500,000) We estimate a reasonable exposure time of six months to 1 year for the attainment of the foregoing value estimate. Estimation of this exposure period is based on both direct and indirect market evidence as well as polling of local and regional real estate brokers and investors. The reader is referred to the Certification and General Assumptions and Limiting Conditions included in the attached report. The appraisers certify that they have no present or contemplated future interest in the subject property. It has been a pleasure working with you in the preparation of this appraisal assignment and I look forward to the opportunity of continuing to serve your appraisal needs irr the near future. Sincerely, Charles M. Smith, MAl TN Certified General Appraiser #CG-l 09 rir. CHARLES M, SMITH, MAl

5 Training Cellter Knoxville, Tennessee TABLE OF CONTENTS TABLE OF CONTENTS SUMMARY OF SALIENT FACTS PROPERTY IDENTIFICATION PURPOSE AND INTENDED USE OF THE APPRAISAL PROPERTY RIGHTS APPRAISED DEFINITION OF VALUE EFFECTIVE AND REPORTING DATES SCOPE OF THE APPRAISAL AREA DESCRIPTION NEIGHBORHOOD DESCRIPTION SITE DESCRIPTION Utilities Flood Map Information Zoning Real Estate Taxes IMPROVEMENT DESCRIPTION '" PROPERTY OWNERSHIP / HISTORy HIGHEST AND BEST USE Highest and Best Use, As Vacant Highest and Best Use, As Improved APPROACHES TO VALUE COST APPROACH Land Valuation Replacement Cost Estimate Depreciation SALES COMPARISON APPROACH Market Sales Analysis INCOME CAPITALIZATION APPROACH Gross Income Estimate Vacancy Expense Estimate Capitalization Process III CORRELATION AND FINAL VALUE ESTIMA TE GENERAL ASSUMPTIONS GENERAL LIMITING CONDITIONS ADDENDA CHARLES M. SMITH & ASSOCIATES, INC. PAGE 4

6 Thsculum College Training Center Knoxville, Tennessee Identity of the Property: SUMMARY OF SALIENT FACTS Tax Map Reference: Property Owner: Effective Date of Appraisal: March 7, 2007 USPAP Appraisal Type: USPAP Report Type: Property Rights Appraised: Complete Self-Contained Fee Simple Interest Site Area: 186,872 S.P. or 4.29 acres, of which acres is non-buildable drainage area Improvement Description: Highest and Best Use "As Vacant": Highest and Best Use "As Improved": 30,000 S.P., Two story office Commercial - office or institutional Commercial - office Indicated Value by Each Applicable Approach: Cost Approach: $5,281,000 Land Value: $1,072,500 Sales Comparison Approach: $5,211,000 Income Approach: $5,633,000 Estimated Market Value: $5,500,000 Marketing Time: Furniture, fixtures & equipment value: Intended Use: 6 to 12 months None- Real Estate Only Asset Evaluation Intended User: Mr. Stephen J. Gehret Chief Financial Officer, Note: The value estimate of this report are based on plans detailed by Barber & McMurry Incorporated Architects, Planners, Consultants as " At Centerpoint Park" depicted as sheets: SP-100 & 101, A-OO 1 to 601, S-IOO to 103, FP101, P-100 to 102, M-101 & 201, SE-100, and E-101 to 202 dated Oct. lsl.b, 2001 Project # CHARLES M. SMITH & ASSOCIATES, INC. PAGES