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Appcllanl.
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IN TilE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY,PENNSYLVANIA
IN RE BELLE TERRE.
- against -
CUMBERLAND COUNTY BOARD OF
ASSESSMENT AI'PEALS,
A) dlccs
!~mT[QKQ0..,,-\!~EL\I, FIWi\l
TII E~LJ.M I3JjIUL\N[H:mli'~IJ:"L!ION~I)~QF .ASSI,SS,I\ IEN'I',\I'I'E!\I,..S
TO THE HONORABLE, THE JUDGES OF SAID COURT
NOW COMES. Thc Appcllant, BELLE TERRE, a partncrship authorizcd to do busincss in
Pcnnsylvania. whosc address is Gcncva Drivc. Mcchanicsburg, Pcnnsylvania 17055, by thcir aHorncy
of record, David J. Kaplan, cxccutcs this appcal from the decision of the Board of Assessmcnt
Appeals of Cumberland Counly, alleging as follows:
I, The Appellant. BELLE TERRE, is the owner of a certain parccl of real property located in
Upper Allen Township. Cumberland County, Pcnnsylvania, having the strcet address 01'607 Geneva
Drive, Mechanicsburg, Pennsylvania. and dcscribed in the records of lhe Cumberland County
Assessor as Properly Number 42-09-0545-006 (hereinal1er. the "Properly"), with a total assessed
value 01'$227,392.
2, In accordance with the provisions relating to appeals to a County Board of Assessment of a
Fourlh Class County, the A~pellant tiled a timely appeal with the Board of Assessment Appeals of
Cumberland County (hereinal1er. the "Board"), a statement of intention to appeal its annual
assessment lor the Property for the years beginning on and al1er JanualY I, 1999, claiming that the
assessed valuation placed on the same by Cumberland County Assessor was excessive and non-
uniform,
3, On or before October 30, 1998, upon information and belie!: the Board reduced said
assessment from $290,950 to $227,392 (an established market value of $3.344,000 equates to an
assessment 01'$227,392 when "ne factors in Cumberland County's common level ratio 01'6,8%). A
true and correct copy of the decision notice is attached hereto as Exhibit" A",
mlli,liH7
4, Thc I\ppcllanl is diss:lli~licd with thc dccision orthc Board, and will hc aggricvcd and injurcd
by thc unlawllllly cxccssivc, non-unilllflll and impropcrly dClcrmincd asscssmcnt as il will hc
compcllcd 10 pay a much largcr proportion orthc taxcs of said tax district (Cumhcrland County) Ihan
as ils lair illld cCJual and Icgal sharc or a portion thcrcof
S, This appcal is Iilcd in accordancc with thc provisions ofthc laws orthc Comlllonwcahh or
I'cnnsylvania pcrtaining tolhc filing of appcals to Ihc COUll or COllllllon Picas Irom a dccision of a
Bmlf(l of Asscssmcnt Appcals and, in particular, thc provisions orthc Act of Junc 2C" IlJ3 I, 1', L. 37'J,
Scction 'J, as amcndcd, 72 I'S S3S0, and thc provisions of May 22, IlJ33, I'S 8S3, Scclion SI8,I,
as amcndcd, 72 I',S, S020-S '8.1, in ordcr that Your Ilonorahlc Court may hold a hcaring and Iix a
JUSI and propcr asscssmcnl in accordancc wilh thc provisions of lhc law,
Datcd: Novcmbcr 'J, I 'JCJ8
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Counscl fix Appcllants
BELLE TERRE
C,SS Third Avcnuc, 2211(1 Floor
Ncw York, NcIV York i no 17
(212) C,S I-C,SOO
Pol, Suprcmc Coull I D No, C,'J3 13
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Exhibit A
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IN TilE COURT OF CmlMON PLEAS OF
CUMllImLAND COUNTY, "ENNSYLVANIA
IN RE BELLE TERRE.
No I)X_h,lll) C'I VII.
Appcllanl,
CERTIFICATE OF SERVWE
- againsl .
CUMBERLAND COUNTY BOARD OF
ASSESSMENT APPEALS.
A cllees
Thc undcrsigncd hcrcby certilies thai a Irue and correct copy of the PClition on Appeal from
the Cumberland COUllly Board of Asscssmcnt Appcals jn thc cntitlcd action. U.eR'Ll~~rre v,
Cumberland CountxJ!llaLd ofb~~gli,'ill!c!J! AI1P-~,ili;, No 911-64 19 CIVIL. has been served upon Ihe
following by way of certilied mail. mailed on November 25. I CJCJll:
Stcphcn D, Tiley. Esq,
Cumberland Counly Board of Asscssment Appcals Solicilor
Ass!. Cumbcrland County Solicilor
5 South Hanover Street
Carlisle.PA 17013
William E, Millcr. Esq,
Millcr & May
Solicitor. Uppcr Allcn Township
600 North 12th Strect
Lemoyne. PA 17043
Richard Snelbaker. Esq,
Solicilor. Mcchanicsburg Arca School District
44 West Main Street
Mechanicsburg. P A 17055
,.....-------,
Datcd: Novcmber 25, 1998
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DA VID J. KAPLAN. Esq,
Counsel for Appellanls
OCTAGON ASSOCIATES
655 Third Avenue. 22nd Floor
New York. New York 10017
(212) 681-6500
Pa, Supreme Court lD No. 69313
mlO-OX7
Petitioner
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNT~
PENNSYLVANIA
BELLE TERRE,
v.
CUMBERLAND COUNTY BOARD
OF ASSESSMENT,
Respondent
NO. 98.6419 CIVIL TERM
CIVIL ACTION . LAW
CERTIFICATE OF SERVICE
David J, Kaplan, Esquire
Stempel Bennett Claman & Hochberg, P.C.
655 Third Avenue, 22nd Floor
New York, New York 10017
The undersigned hereby certifies that a true and correct copy of the within
Answer to Petition for Appeal From Order of Cumberland County Board of Assessment
has been served by regular, United States mail, deposited on the date shown below,
postage prepaid, to the parties named below:
William E. Miller, Esquire
Miller & May
600 North 12th Street
Lemoyne, PA 17043
Richard C. Snelbaker, Esquire
Snelbaker, Brenneman & Spare
44 West Main Street
p, O. Box 318
Mechanicsburg, PA 17055
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Dated: f,-I' "" -'U' , -'/ ,.,. $
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Stephen D, Tiley, Esquire
Assistant Cumberland County Solicitor
5 South Hanover Street
Carlisle, PA 17013
(717) 243-5838
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Attorney I.D. No.: 32318
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IN RE: BELLE TERRE,
Petitioner
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNT~
PENNSYLVANIA
v.
CUMBERLAND COUNTY BOARD
OF ASSESSMENT,
Respondent
NO. 98-6419 CIVIL TERM
CIVIL ACTION . LAW
ANSWER TO PETITION FOR APPEAL FROM THE
CUMBERLAND COUNTY BOARD OF ASSESSMENT APPEALS
AND NOW, comes the Respondent, Cumberland County Board of Assessment
Appeals, by Stephen D, Tiley, Esquire, Assistant Cumberland County Solicitor, and
files this Answer to the Petition for Appeal From The Cumberland County Board of
Assessment Appeals of which the following is a statement:
~ 1, Admitted,
2. Admitted.
3. Admitted,
4, Denied. The averments of this paragraph contain conclusions of law to
which no responsive pleading is required.
5. Admitted in part, Denied in part. It is admitted that Petitioner has a right to
file this appeal however, Petitioner's citation to 72 P.S. ~ 5350 is inapplicable as that is
a part of the Third Class County Assessment Law. The citation to 72 P,S, ~ 5020-
518,1 is applicable in that it is part of the General County Assessment Law, however
Petitioner's appeal is specifically allowed by the Fourth to Eighth Class County
Assessment Law, 72 P.S, ~ 5453.704(a).
WHEREFORE, the Respondent, Cumberland County Board of Assessment
Appeals, prays your Honorable Court for an Order denying Petitioner's Appeal, or
ANSWER TO PETITION
Page 1 of 2
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IN RE: IIU,I.EI ERRE,
Petitioner
IN III!' 1'1 IlIRT (IF 1'1 IMt\10N 1'l.h\S 1)1'
Cl J~IIlI;RI.ANI> ('OIINTY, PENNSYLVANIA
\'S.
')K-64 I') CIVIL
CUMBERLAND COUNTY
nOARD OF ASSESSMENT.
Respondent
CIVIL ACTION -LAW
ORDER
BY TilE COURT,
AND NOW. Ihis
2"1.-'
day of Decemher. 19911. hearing in lhis matter sel !(Ir
Fehruary 26, 1999, is conlinued to Friday, March 5. 1999. at II :on a,m. in Courtroom Numher 4.
Cumberland Counly Courthouse, Carlisle. PA,
David J. Kaplan. Esquire
For lhe Pelilioner
Stephen Tiley. Esquire
For the Respondent
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APPRAISAL OF REAL ESTATE
Belle Terre Apartments
Geneva Drive
Upper Allen Township
Cumberland County, Pennsylvania
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PREPARED FOR
Octagon Associates
613 A Geneva Drive
Mechanicsburg, Pennsylvania 17055
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May 4, 1998
98-6523
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PropertY Identification:
Owner of Record:
PropertY Rights Appraised:
Land Area:
Zoning:
Improvement:
Flood Zone:
Highest & Best Use - Vacant:
Highest & Best Use - Improved:
Valnp 'ndi~atfnn~
Cost Approach:
Income Approach:
Sales Comparison Approach:
Final Valoe Estimate:
Effective Date of Value:
Final Inspection Date:
INTRODUCTION
Belle Terre Apartments
Geneva Drive
Upper Allen Township
Cumberland County, Pennsylvania
Belle Terre
Fee Simple
350,222 square feet, 8,04 acres
UR, Urban Residential
Belle Terre Apartments contains 88 garden apartments housed
within four three-story buildings, Construction quality and
condition are average,
Zone C,
Multi-Family Development
Existing Use
Not Applicable
$2,590,000
$2,390,000
52,500,000
May 4,1998
May4,I998
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Barone, Murtha, Shonberg & Associates, Ine,
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INTRODUCTION
II. 1!roput)'.1dentl.fka!iol1.and.Hlstor!caJ.1>erspecliye
Belle Terre Apartments is located along Geneva Drive in Upper Allen Township, Cumberland County.
Pennsylvania; this property is also referenced in county records as the land and improvements associated
with parcel 42.09-0545.006, Title is presently vested in the name of Belle Terre by virtue deed dated
January 31,1978, as recorded in Cumberland County Deed Book 27.R, Page 367, for a consideration of
$1,00 <Affidavit of Value indicates a consideration of$118,389), To our knowled8e this property has not
changed ownership within the last three years, nor is it presently listed, optioned or under agreement of sale,
III. .I!ropert)' Right. Appraised: Fee Simple'
Fee simple estate is defmed as 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.
IV. Pllrpose of the Appraisal
The purpose of the appraisal is to estimate the current market value of the Fee Simple interest in the subject
property, It is our understanding that this appraisal is to be used to assist in setting a fair assessment based
on market value,
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V. Scope o(the Appraisal
The scope of work completed in developing the value estimate included the following:
. A personal inspection of the subject property,
. An examination of economic and demographic factors on both local and regional bases,
. A survey and analysis of market factors impacting the subject.
· ~ highest and best use analysis considering the subject property both vacant and as presently
Improved,
. Development of valuation analyses considering the Cost, Income and Sales Comparison Approaches.
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l~iC::l1 nrR:~1 F",:u", Tenth Edition; Appr.1isal Institute, 875 North Michigan Avenue. Chh::ago, Illinois 60611...1980;
1992,
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Barone. Murtha, Shooberg & Associates, Ioe,
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INTRODUCTION
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VI. MarktlYa1~efined'
The most probable price which a property should bring in the competitive and opeo market under all
conditions requisite to a fair sale, the buyer and seller, each acting prudently, 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 10 buyer under conditions whercby:
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a, Buyer and seller are typically motivated,
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b,
Both parties are wcll informed or well advised and each acting in what they consider their own best
interest,
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A reasonable time is allowed for exposure in the open market,
d. Payment is made in terms of cash in U, S, dollars or in terms of financi"1 arrangements comparable
thereto; and
e, The price represents a normal considcration for the property sold unaffected by special or creative
financing or sales concessions granted by anyone associated with the sale.
VII. Treods and Marketing Period
The primary factors which effect apartment valucs are occupancy and rental rates, In terms of occupancy,
the greater Harrisburg region has maintained its strength, due in part to the strong employment base which
has resulted in the lowest unemployment rate in the state, Managers at the properties most competitive
reported current occupancy rates approaching 100%,
- With regard to rental rates, increases have typically been in the vicinity of2% to 4% per annum for the last
several years, although we do note that some properties experimented with significantly greater (as much
as 7%) increases in 1996 and 1997, As these increases succeeded on the whole, we anticipate that other
facilities will follow this trend, The impact of this will be that new construction will again become feasible
in the near term.
At present, the demand for modem apartment units in the area is good, occupancy rates remain high and rents
are moderately increasing, We anticipate no significant deviation from these trends in the near future,
'Tille XI, Federal Financiallnstiturions Refoon, Recovery and Enforcement Act of 1989 (FIRREA), AUgusl23, 1m, Secrion 564,4,
Appraisal Standards,
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Barone, Murtha, Shonberg & Associates, Ine,
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INTRODUCTION
With regard to marketing period, wc note that apartments are presently the investment property of choice,
The greatest demand is for complexes WIth greater than 150 units and less than 10.ycars old, yet this product
is becoming increasingly scarce, As a result, some larger investors have begun to consider older apartment
properties as well, This notwithstandiog, the most likely purchaser for the subject property is a regional
investment group,
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Given the regional nature ofa potential marketing effort, the desirability of the property type, the strength
of the local market and the availability of financing, we estimate a marketing period of six to nine months,
with an additional three to six months for due diligence, financial arrangements and closing,
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Barone, Murtha, Shonberg & Associates, Ine,
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INTRODUCTION
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VIII. GenerllLLlm1tin~Condilions
This appraisnl report has been made subject to the following generallimitiog conditions:
. The opinion of value expressed in the letter of transmittal is the result of and subject to the data and
conditions described in detail io the accompanying report,
. No fractional part of this appraisal is to be used in conjunction with another appraisal, Such use
renders it invalid,
. 'Ibis report, or a copy thereof, may be transmitted to a third person or legal entity only in its entirety,
. Disclosure of the contents of this report is governed by the By-Laws and Regulations of The
Appraisal Institute, Neither all nor any part of the contents of this report (especially any conclusions
as to value, the identity of the appraisers or the firm with which they are cOMected) shall be
disseminated to the public through advertising, public relations, news, sales or other media without
Ihe prior written consent and approval of the appraisers,
. Unless otherwise stated in this report, the existence of hazardous material, which mayor 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, The appraiser, however, is not qualified to
detect such substances, The presence of substances such as asbestos, urea-formaldehyde foam
insulatioo, 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 causc a loss in value, No responsibility is assumed for any such condition, or for any
expertise or engineering knowledge required to discover them, The client is urged to retain an
expert in this field, if desired,
. The Americans with Disabilities Act (" ADA") became effective January 26, 1992. I (we) have not
made a specific compliance survey and analysis of this property to determine whether or not it is in
conformity with the various detailed requirements of the ADA, It is possible that a compliance
survey of the property, together with a detailed analysis of the requirements of the ADA, could
reveal that the property is not in compliance with one or more of the requirements of the act, If so,
this fact could have a negative effect upon the value of the property, Since I (we) have no direct
evidence relating to this issue,l (we) did not consider possible noncompliance with the requirements
of ADA in estimating the value of the property,
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Barone, Murtha, Shonberg & Assoeiates, [nc,
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INTRODUCfION
VIII, GenerllLLlmlling..Condltlons
This appraisal report has been made subject to the following general limiting conditions:
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. The opinion of value expressed jn the letter of transmittal is the result of and subject to the data and
conditions described in detail in the accompanying report,
. No fractional part of this appraisal is to be used in conjunction with another appraisal. Such use
renders it invalid,
. This report, or a copy thereof, may be transmitted to a third person or legal entity only in its entirety,
. Disclosure of the conteots of this report is govemed by the By-Laws and Regulations of The
Appraisal Institute, Neither all nor any part of the contents of this report (especially any conclusions
as to value, the identity of the appraisers or the lirm with which they are connected) shall be
disseminated to the public through advertising, public relations, news, sales or other media without
Ihe prior written consent and approval of the appraisers,
.
Unless otherwise stated in this report, the existence of hazardous material, which mayor 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, The appraiser, however, is not qualified to
detect such substances, The presence of substances such as asbestos, urea-formaldehyde foam
insulation, 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, No responsibility is assumed for any such condition, or for any
expertise or engineering knowledge required to discover them, The client is urged to retain an
expert in this field, if desired,
.
The Americans with Disabilities Act ("ADA") became effective January 26, 1992, I (we) have not
made a specific compliance survey and analysis of this property to determine whether or not it is in
conformity with the various detailed requirements of the ADA, It is possible that a compliance
survey of the property, together with a detailed analysis of the requirements of the ADA, could
reveal that the property is not in compliance with one or more of the requirements of the act. If so,
this fact could have a negative effect upon the value of the property, Since I (we) have no direct
evidence relating to this issue,! (we) did not consider possible noncompliance with the requirements
of ADA in estimating the value of the property,
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Barone, Murtha, Shonberg & Associates, Ine,
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AREA DATA
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I, Introduction
Real estate values are impacted by local and regional economics, The following discussion presents the
germane t'eatllrcs under the headings of Geographic location, Infrastructure, PhYSical and land Use
Characteristics, Population Trends, Income levels, and Employment and Govemmentallntluences,
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II, Geogr.aphkLocalioD
The subject property is located in Cumberland County, Pennsylvania, Cumberland County is part of the
Harrisburg MSA, which is comprised of Cumberland, Dauphin, lebanon, and Perry counties, This region
is situated between Philadelphia to the east and Pittsburgh to the west. Distances to the nearest metropolitan
areas are as follows:
Dlsllnus 10 :'oblor :\lrtropolllan Areas
:\Ietro Arta
Distance to Sub tel
Baltimore, MD
7S miles
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Phil.:!.delphia, PA
101 miles
Washington, D. C.
106 mites
New York. NY
t 69 miles
PiusbUrllh. PA
202 miles
As a result of the central location and well developed transportation infrastructure, Harrisburg is a major
distribution center for the northeast.
III. Infrastructure
Infrastructure considerations primarily relate to transportation and utility systems, First addressing
transportation, roadways are perhaps the most important aspect. Primary routes within the area are
identified as follows:
Major Roadways
:'lorlh.South
E.st-Wtsl
Interstate 83
Pennsylvania Turnpike
U.S. ROule 32:!
InterstateSl
U.S. Roule 15
U.S. Route II
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AREA DATA
Other aspects of the transportation system, such as air, rail, and, to a lesser degree bus altematives, are also
important.
Truuportadon Prv~~n
Tnas rt Mode
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Carlisle, CapiLli City,..d Harrisburg
Anmlc
lUilways
Bualines
ound
The area is served by major rail lines and numerous motor carriers, The extensive freight yards at Enola have
a current daily traffic ofnearly 4,000 cars and is reportedly the second largest freight yard in the natioo, The
transportation infrastructure is well developed and significantly enhances the region's desirability,
With regard to utility systems, these too are well developed with all public utilities available to most parts of
the county, Further, there are no significant capacity issues at time, Overall, the transportation and utility
infrastructure is adequate to support additional development.
IV. Land Use Distribution and Pbysical Cbaracteristics
Proportionate land uses within the county are as follows:
Proportionate Land U~umberland County
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. Residential
. Commercial
. Undeveloped
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Barone. Murtha, Shonberg & Associates, Inc,
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AREA DATA
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Thc region~1 terr~1n IS predominantly level to gently rolling, although small portions of the area do have
steep terrain, Overall, topography h~s not prescnted signific~nt difficulties to development.
V. PopulatioILl'.rends
The following table presents comparative population figures from the 1980 and 1990 Census for the county,
state and nation, as well as the most recent estimates available,
1980
1990
195,257
11,881,643
ChlDle
1995 Estlmllts
eounl)'
State
179,625
11,866,728
8.70%
205,959
12,071.842
268,765,000
0.13%
Nation
226.546.805
2'8,718,291
9.79%
Cumberland County exhibited significant growth through the 1980's and, based on the 1995 estimate,
continues to post strong gains,
VI. IncomeLe.YeIs
Comparative income levels for the county and state are presented as follows:
Income C:ales:ory Cumbuland County Pennsylvania COUDty:Stlle CompufsoD
<519.999 23.6% 33.95% -43.86%
520,000-529,999 17.9010 11.50% 2,23%
530,000-539,999 17.3% 15.20% t2,t4%
$40,000-549,999 14.3% 11.40% 20,28%
550,000-574,999 17.8% 14.10% 20.79%
>575,000 9.2% 7.90% 14.13%
Medlin Household Income 534,493 529,069 24."2%
The data presented above suggests a eounty affluencc level above that of the state as a whole,
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Barone, Murtha, Shonberg & Associates, Ine,
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AREA DATA
VII. EmplQymrnl
Historical unemployment levels are presented as follows:
o Cum b.,l.nd
_ Unlt.d 8te...
_ P.nnevtv.nl.
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3.00
2 DO
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10"0 18D1
1902 1993 1&04 1DOe 1DDe
These straJg employment figures are attributed to a diverse job distributicn and the stabilizing influence of both
stale and federal jobs, The following charts present a comparison between county and state employment
distribution:
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ProporUonlt. Employmlnt.. Cumberland County
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Harrisburg is the state capital and, as such, govemment jobs on the state level are a major economic factor,
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AREA DATA
In addition to the thousands of jobs which arc related directly to the state government, the ~rea also benefits
as a center ror state conventions, exhibitions, and headquarters for numerous state associations and private
businesses wIth government affiliations, According to the Pennsylvania Department of Labor and Industry,
approximately 67,700 residents of the Harrisburg-Carlisle-Lebanon MSA are employed by some level of
government; Pennsylvania state employees make-up the largest group with 32,100,
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With three major military installations in the area the federal government also provides thousands of jobs
to residents of Central Pennsylvania, The installations are Carlisle Barracks in Harnden Township, Ships
Parts Control Center in Hamden Township and Defense Distribution Depot Susquehanna Pennsylvania
(DDSP) near New Cumberland, A breakdown of the military installations and their civilian work force is
as follows:
Defense Distribution Depot Susquehanna, PA:
Ship Parts Control Center:
Carlisle Barracks:
3,600
6,SOO
601 Full Time
359 Part Time
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While local, state and federal employees play an important role in the area's economy, combined they make
up less than 20% of the area work force, A number of large corporations also have a presence in the area.
Principal employers in the rcgion are listed as follows:
Employer
Employer
AMP COlpOnItion
Giant Food Stores
Pennsylvania Stale Government
United States Government
Hershey Foods Corporation
HarTisbUfJ Polyc;:linic
HanisbllTJ Hospilal
Pennsylvania Blue Shield
Com. of PA. Penn State Univmi
Hmo Inlcmlrional
Overall, the strong employment profile is a significant benefit to the regional economy,
VII. Neighb.orho.ad
The subject property is located within a strong residential neighborhood in Upper Allen Township, just
southeast of :-lechanicsburg and west of Shiremanstown, The transportation networks serving the
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AREA DATA
neighborhood 3re extensive, including the Pennsylvania Turnpike (1 mile south), U,S, Route 15 (V. mile
south), Wcsley Drive (V. mile east), and Simpson Ferry and Trindle Roads (I mile north),
Population within the municipality has been growing at a rate greater than the county average, increasing
from 10,533 to 13,347 during the last census period, 3n increase of 26,72%,
Neighboring uses consist of a significant number of condominium properties including Sunguild n, Brighton
Place, and Village of Liberty Square, Commercial uses include a Healthsouth facility along Lancaster
Boulevard and an office building Wilson R03d, Extensive retail and commercial areas are within close
driving distance, These facilities offer significant support services and employment opportunities, thus
enhancing the dcsirability of the area, The neighborhood enhances the desirability of the subject propertY,
VIII. S.ummaQ' aod Conclllsions
The subject neighborhood is characterized by a homogenous blend of residential. office and commercial land
uses, Adjoining and nearby properties include single family areas, with retail and commercial areas located
in close proximity, These uses are complimentary to the subject use, The transportation system is well-
integrated with state and interstate highways, passenger and freight rail service, air transportation, and public
transportation, The population has been increasing at a significantly faster rate than the state as a whole,
Home values are predominantly above $100,000 and have been gaining value in terms of real dollars, The
population has grown and income has kept pace with inflation, Income levels are middle to upper middle
with over 40% of the population having incomes over $40,000 and nearly 25% of the population with
incomes over $50,000, Employment has consistently been higher than the state, Overall trends indicate a
growing population and increasing real estate values strongly influenced by a diverse economic base,
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PROPERTY_DATA
I. Site Description
fhl',ical ('haral:teristics
According to County records, the subject parcel contains a gross land area of 350,222 square feet, or 8,040
acres, of whIch nearly all is usablc, The property is irregular in shape and the topography is level.
Access andSisihil~
The Belle Terre site has approximately 659 linear feet of frontage along Geneva Drive, a secondary roadway,
The property has multiple entrances, none of which are signalized, Visibility is adequate from residential
roules,
(Jtilitie~
Public utility services available to the site are as follows:
Public UIIIII)' Provider Coaaeded to SUe
Nalur:d Gu Columbia Gas No
Electricity Pennsylvania Power &: Lighl Yes
SCWCr2gc Municipal Yes
Water Pennsylvania American Waler Yes
~;tf'! Tmproy.ements
Site improvements include asphalt driveways and parking lots, lined to accommodate two vehicles per
- apartment. Other improvements include concrete walks, curbing, and good quality mature trees and
landscaping,
Flood H.7.rd
According to the Upper Allen Township Flood Insurance Rate Map, Community Panel No, 420372-0005C
(dated February 15,1980), the subject is within a Zone C, an area of minimal flood hazard,
Zoning
The subject slle is situated within (UR) Urban Residential district. Multiple family dwellings are a permitted
use within this district.
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PROPERTY.DATA
F.nvironmClllaILSubsur!ac. Conditions
An evaluation of the subsurface conditions is beyond the scope of this report. Similarly, we make no
determination as to the absence or presence of any environmental hazard, It should be noted that the value
conclusions reported herein assume that no adverse conditions exist.
F.as.m.nts/.Encroachments
The site is subject to street and utility easements of record, Other than those specifically listed, we are not
aware of any easements, restrictions, encumbrances, leases, reservations, covenants, contracts, special
assessments, ordinances or partial interests that would adversely affect value, We did not complete a title
search or survey of the property and assume no responsibility for matters pertaining to title or ownership,
We recommend that the client have such studies completed,
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II. Imp.roxemeot Oescrlp.tJ.o.n
The subject improvements were built in the early 1980's, Belle Terre consists of four, three-story, wood
frame apartment buildings containing 88 units; each building containing 22 units, According to a
measurement of each unit type, the buildings contain a rentable area of 51,264 square feet. The specific unit
types are detailed as follows:
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Unil Type
One 8edroom.Qnc: B3th
Number or Units
Unit Size
R.ntabl. Ana (SF)
Two Bedroom-One Bath
40
48
88
450
693
18,000
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1143
33.264
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PROPERTY DATA
The following table presents the unit mix within each individual building:
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BulldlnK ~umber I8R lOR Tolllll.lta
607A S 6 II
601B S 6 II
600A S 6 II
600B S 6 II
611A S 6 II
611B S 6 II
6IJA S 6 II
613B S 6 II
Tolal 40 48 IS
The individual unit layouts are characterized as follows:
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One Redroom llnit Central hallways provide access to the units, with four entrance doors at each
landing, The entrance to the one bedroom units is to the living room/dining room combination, The living
room floor area is typically 16 feet by 12 feet, The kitchens are equipped with a dishwasher, oven/range.
garbage disposal, and refrigerator,
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- Two Redrnnm 1 Init~ Central hallways provide access to the two bedroom units, The entrance to the units
is via the living room/dining room combination, The layout is similar to the one bedroom units with the:
addition of a second bedroom, The master bedroom bas a walk-in closet and shared access to the single bath
which also can be accessed from the hall. The kitchens are similarly equipped with a dishwasher,
oven/range, garbage disposal, and refrigerator,
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Kitch,,"s Kitchens have woodlForrnica bases and wall cabinets and a Formica counter with a stainless
steel sink, Appliances include a refrigerator, electric range/oven, a range hood/exhaust fan, a dishwasher,
and a garbage disposal. The complement of appliances is the same in every unit.
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Baths A single bowl vanity, a fiberglass tub unit and a porcelain commode can be found in each bath, In
the one bedroom unit, the bathroom is accessed from the bedroom only; in the two bedroom unit, the:
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PROPERTY DATA
Current AsscssmcDl
Lind Annlmeal
Bulldlnl AU'lImenl
TOIII AUftlmenl
Market V.hl.@6.1%CLR
160JOO
1230,6l0
129O,9l0
S4.278,676
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It should be noted that the existing assessment suggests a market value well above the conclusion of this
report, Prudent management dictatcs that an assessmcnt reduction be pursued,
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Real F.state Tax Caleu1alion
MIIII.. Rite Current Autumul
Taxlle Autborlty La.d Bulldlnl Land Bulldlnl Rell E.tate Tues
Upper AII,n Twp. 0.003l00 0.003l00 S60JOO S230,6l0 St,018,33
School District 0.138000 0.138000 S60JOO S230,6l0 S40,ll1.l0
CumberJ~d County 0.027500 0.027500 S60.300 S230,650 S8,OOl,13
Tallll 0,169000 0,169000 560.300 S:I30,650 $49,170.55
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The assessment for Belle Terre Apartments is $290,950 with an implied market value ofS4,278,676, a value
which is well above the value conclusion of this report, Further, the existing assessment represents 11.64%
of market value, which is substantially at odds with other facilities in the area, This data suggests that the
assessment is inconsistent with county policy,
Ctlm~lanrl County R~a~~f'!~~ment
_It was published on May 5, 1998 in the Harrisburg Patriot News that Cumberland County has hired a mass
appraisal finn to reassess its 85,000 plus parcels, The last countywide reassessment was in 1974; the
reappraisal process is expected to take three years with the first tax bills based on the new numbers to be
issued in 2001. All field work is expected to be completed by the end of 1999; in early 2000, ~hOjleity
owners will begin to receive notices, and the balance of that year is set aside to deal with informal reviews
and fonnal appeals of the new assessments,
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IIlGllEST Ai."I/D.BEST.USE
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Prim. Ptrmlttrd .nd Condltlon.1 VMS
Addiliollal dl.:l.ll:hed dwellinp Ap.nmcnl (m.ax, density 12 d.uJacre)
Church Community facility
Crop f:am1tl1g: CuUural facility
Day nurs.:ry IJcllilylhol'l'le Fire station
(;olr course Greenhouse
Hospj~1 Priv.tc club
Private rec:rl::ltional facility Public building
Public rccre:lIlonal facility Reslaurmt
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TownhOlI.~C II ~ rJ.u1:lcrcl Si s
m. Adaptabili~' of Uoe
The site characteristics do not present unusual challenges to development and the surrounding land uses arc
complementary to residential purposes, We do note, however, that the size of the site (8,04 acres) suggests
multiple family dwellings, This conclusion results from the observation that most of the legal uses would
result in under-utilization of the site, while the at least one use, golf course could not be undertaken due to
inadequate land, We conclude that the subject site is most adaptable to the development of multiple family
residences, either garden or townhouse units,
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IV. Eeasibility ofUoe
Feasibility is a function of demand, which in turn may be measured through achievable sale, rent and occupancy
levels, Ultimately, the question is whether or not demand is adequate to assure sale or rent levels that warrant
anticipated construction costs, A review of the market suggests that rent levels are just now reaching the point
where new development is again feasible for apartment development, however we also note that there have been
a number of successful townhouse developments in the area, Either of these uses would be feasible,
V. Highestaod Rest Use (l\1aYimal Productivity): As Vacant
Reviewing the discussion presented above, we conclude that multiple family residential development is
consistent with the highest and best use of the subject site, This would most likely take the form of townhouses
or condominiums that would be offered for sale,
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UIGllEST.A..'liDBEST_USE
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VI. Hillhcstand.BcstUse.()\1nlma. PrOducliYlly): A~ ImpUlYC:d
The subject property has been operated as a rental community for roughly IS years, According to the manager,
moderate rent Increases have been achieved and occupancy, on the day of inspection, was 100"10 with a lengthy
waiting list. It is our understanding thallhe subject property has operated at profitable levels for an extended
period of time, Knowing of no altemative use that would warrant demolition or substantial modification of the
existing improvements, we conclude that conlinued operation as a rental apartment facility is consistent with
the highest and best use,
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I. Introduction
There are thrc~ classical approaches to real estate valuation, often referred to as Income Capitalization, Direct
Sales Comparison and Cost Approaches, Property characteristics, as well as data availability, generally dictalel
which approaches are most germane to a particular valuation assignment; income producing properties lend
themselves most readily to the Income Capitalization Approach, while for owner occupied properties the Dim:t
Sales Comparison Approach is oftcn a better indicator, The Cost Approach may be used effectively in either
situation, however as the various aspects of accrued depreciation become more pronounced, the value indication
offered by this technique becomes more subjective, Each of these valuation methods depends on the availability
of an adequate amount of market data,
In the Cost Approach the depreciated value of the improvements is added to the estimated land value,
Considering the subjectivity involved with estimating depreciation, this approach is most useful when applied
to newly constructed or newly renovated properties,
In the Income Approach the potential revenues, vacancy (and credit loss) and operating expenses arc all
estimated ill order to arrive at a net income projection, This income projection is then translated to a value
indication through either direct or yield capitalization methods, This is most appropriate for income producing
properties, however it can also be used for owner-occupied properties based on an occupancy cost scenario,
In the Sales Comparison Approach recently sold properties are elUUT\ined on the basis of either physical ar
financial characteristics and then compared to the subject property, This can be used effectively for most
property types, so long as there is an adequate amount of data,
II. Methodology Conclnsion
Given the characteristics of the subject property, it is appropriate to develop the Income and Sales Comparison
Approaches to Value, Based on the age of the property and the manner in which the market views income
producing properties, the Cost Approach, while considered, has not been developed,
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One.BedrDom.UJllt
Camp.,UI", II,m SubJrcl I Llndham Coun J O.rord Manor J Wnlf)' Plrk Dtlbrook Mlllor
(icn,,., ClIlrantrbrlcs
Location Good Similar Sin1l1Jl' Sunllar Sinvlu
Archi1ettu~ Garden Sundar Sinular SIR1IIar Simbt
Year Built 198t 1987 197) 1967"1 t969
Condition Avmge Superior 10 SupaiOf' 10 Superior 10 Superior to
Uni' Size (SF) 450 600 15 '81 15 815 4ll 74ll 30
No. of Bedrooms One One One One One
No, or o.ths One One One One One
Storage No Similar Similar Similar Similar
. Equlpmrnr
Air Conditioning Ves Similar Similar Similar Similar
IWlse Ves Similar Sirnjlar Similar Similar
Refrigerator Ves Similar Similar Similar Similar
Dish_her Ves Similar Similar Similar Similar
Microwave No Similar Similar Similar Similar
Disposal Ves SimililJ' Similar Similar Simjlar
WasherlDryer Coin Similar In Unit 15 In Unit 15 !nUni' 15
Window Rods Similar Similar Similar Similar
Stnlctl.nd Amealda
Hea' Tenant Tenant TOlUIlt TOlUIlt T.....t
Electric Tenant Tenant TOlUIlt Tenan' T.....'
Wa.... Owner Owner Owner Owner Owner
Scwerase o"ller Owner Owner Owner Owner
Pool. etc. None Similar Superior 5 Superior 5 Superior 5
Rent Per Month NA 5SJO (525) 54'0 ($45) 5550 ($70) 55)5 (S60)
Adjusted Rent $466 $50' S405 S480 $475
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TwO.Dcdroom.llllll
Comp.radn Iltm J Sub)... J Llndh.m Court I Odord M.r.tr J Weslf)"ark J Dttbrook MIDlr
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Central CII.rlC1trttda
Location Good Similar Similar SimilM Similar
Arthitccture G3nlm Similar Sinular Sinular Similar
Year Buil~ 19S1 19S7 1973 196719 1969
Condition Averalc Superior 10 Superior 10 Superior 10 Superior 10
Uni. Size (SF) 693 SSO 30 7S3 15 935 SO S90 40
No. of Bedtoomt Two Two Two Two Two
No. of Baths One One One 1.5 10 On.
Stonge C:Jge Similnr Simil.u Similar Similar
Equipment
Air Conditioning Yes SimjJ3J' Similar Similar Similar
RInse Yes Similar Similar Similar Similar
RelHsmllor Yes Similar Similar Similar Similar
Dishwasher Yes Similar Similar Similar Similar
Microwave No Simil:!t Similar Similar Sirmlar
Disposal Yes 5imibr Similar Similar Similar
Wuhcr/Dryor Coin fn Unit IS lnUnit 15 IoUni. IS lnUnit 15
Window Blinds Similar Similar Similar Similar
Services ud Amenides
Heal Tenant Tenant Tenant Tenant Tenan.
Electric Tenant Tenant Tenant Tenant T.....
Water Owner Owner Owner Owner Qwne,.
Sewer:.sc Owner Owner Owner Owner Qwne,.
PooI.etc. No Pool Similar Superior 5 Superior S Superior 5
Ren. Per Month NA S6lS (SSS) $570 ($45) S640 ($90) SSSS ($70)
Adlustftt R~nt SSlO SS70 $525 SSSO 5515
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Within the General Characteristics category adjustments are required for condinon, lIIUt SIZe, and the availablhty
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INCOME APPROACH TO Y ALUE
feet, and then reflect" a rate of$O,lO per square foot for the one bedroom units and SO,20 per square foot for the
two bedroom unit,,; this estimate IS based on rent v:mations between similar units of varying size at indiVIdual
complexes within the market, however it should be noted that this analysis was not possible for those comparable
properties specifically used in this report,
Equipment complements within the comparable facilities were fairly uniform, with the primary variation being
washer-aycr units within the units, as opposed to coin-operared machines in a common setting, This adjustment
is estimated at $15 per month.
With regard to services and amenities, variations in amenities are limited to pools and termis courts, which has
only a minimal impact on achievable rents; this was estimated at $5,
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The following table presents a synopsis of the comparative rent indicators:
Comparable Rance
Sugesttd Reat
SubJ...
Market Rent
lIaJlT
<Jne.Bedroom
Vaad lUted
Ad unte!
Com .rables
Askin Reat
Coadusloa
54SO-SS50
SS8.5-5640
S405-S50S
5515-SS70
5466
5S40
545S
S500
5455
SS15
Two-Bedroom
The rent comparables suggest that the property has below market rents which may be responsible for the
extensive waiting list and full occupancy, Applying a market rent of 5455 to the one bedroom units, and $525
to the two-bedroom units, the potential rental income can be calculated as follows:
lIall1)pe
IDR
2DR
Markel lint
54S5
5515
5493
Revenue UaJb
Rent PoteadaVMoatb
Rn1 PotntWIYear
40
48
88
5t8.200
525.200
5218,400
5302,400
SS20.800
TotaU'Avtrl e
543,400
Other 'nrnm~
Belle Terre Apartments generates additional income from laundry equipment. The IalUldry equipment is owned,
as opposed to rented, and the charge is SI.75 per load, We project potential laundry income for the coming year
at $8,000 ($1.75 x 52 x 88),
According to the rent roll, as of February, 1998, 11 residents are paying pet rent ($25/dog and $lO/cat),
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indicating monthly income ofS2oo, and 3/Ulual income of $2,400, Management has not historically identified
pet income as a line item, instead has combined it with rental income, W c project stabilized revenues of S2,4OO
arising from this source,
Income Snmmg-:y
Summing the various revenue sources results in a potential gross income calculation as follows:
Rental Income:
$520,800
$8,000
52,400
$531,200
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Laundry Income:
Pet Rent:
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Vurgnc:y and CrHlIt T .n~.!I.
The historical occupancy of the subject property has been in the 97% to 99% range. A survey of several local
management companies suggests that this is better than the vacancy within the market, which is typically in the
4% to 6% range, Recognizing that a higher rental rate schedule is herein proposed which may result in more
typical vacancy rates, we find it likely that a potential investor would allow for a vacancy and credit loss factor
of 5%, This equates to an income loss ofS26,560 and an effective gross income projection of$504,640,
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1. Actual operating statements for the year 1995, 1996, and 1997, It should be emphasized that the subject
property has a joint operating statement with Nanroc Townhouses, The expenses presented for Be/Ie
Terre reflect a pro-ration based on the number of units,
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IV. Expenses
A stabilized expense projection was made after review of the fOllowing data.
2, Expense data as reported by the Institute of Real Estate Management (IREM) in their 1997 report,
Incnm~IF.~~ Analy~i~' {;nnvP.ntinnal Ap3T1mP-T1t~.
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Actual expense e,~periences Oflhre.: similar apartment complexes,
The stlbilized expense estimates are discussed in the fOllowing narmtive, Expense categories include
administration/management, operating, repairs and maintenance, insurance, and real estate taxes,
Admini<lralimand Management
E.tptnse Comp Rlngf
Comp Mr.n
I,R.E.M,
Subject 1996
6,7J%
SlS9
Subject 1997
S,67%
S4S9
$0.79
%EGI
nt,
nt,
10.2%
PcrUnir
S59S-SSS7
S7JO
5726
Per SF
nt,
nt,
$0.62
$0.75
Administration chargcs include management fees, salaries of office personnel paid directly by the owner, office
expenses, advertising and legal and audit charges, Management fees in the market range from 4% to 6% of
effective gross income, It should be noted that in /996 and /997. the subject managementfte was 3,72% and
/,79%, skewing the totals for this expense category, Stabilizing the management fee at5% of effective gross
income, this portion of the administrative expense is projected to be 525,232,
In 1997, other admioistrative costs were an additionaliS,65% of effective gross income, This included office
expenses, advertising, payroll for a manager, professional fees, Stabilized administrative costs, in addition to
the management fee, of5% is reasonable with a total administrative expense including management fees of loo/."
This is consistent with the data reported to !REM and results in a total management and administrative expense
ofS50,464 or 50,98 per square foot and $573 per uni~ which is in line with the comparable expenses presented.
Qp=ting
E.'(ptnse Comp Rance Comp Mean I,R.E.M. Subject 1996 SUbJectl!l97
%EGI nt, nt, 10.20% IJ.58% 14.56%
Per Unit SJJ4-$525 S4JI l607 $724 $711
Per SF nt, nt, $0.67 SI.24 SI.32
Tenants at Belle Terre are responsible for gas and electricity, which includes both heat and power, In the case
of operating expenses, the historical expenses, based on a unit pro-ration with Nanroc Townhouses, do not
accurately represent the utility usage at the subject property, The individual expenses for 1998 (year-to-date)
have been given greater credence over both the historical amounts and the expense comparables,
28
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I:'iCOME APPROACH TO VALUE
The actual anou'lli/cd opcratlng costs, year-to-date for 1998 are 575,520, This suggests a operations cost for
the coming 12-monlh period of 576.000, which equates to 5836 per unit, 51.48 per square fOOl and 15,06% of
effective gross lOCO me,
Rcpairs.andMaintcnance
r., en'lf Com Rill r
Com ~"n
I,R.E.M,
Sub fC't 1996
Sub cd 1997
%EGI
nI.
nI.
9.50'1.
8.80%
7JI%
$387
$0.66
Per Unit
5237-5,1]'
5359
5S02
$0.'6
5469
SO.81
Per SF
nI.
nI.
This expense category includes landscaping, snow removal, cleaning, general maintenance and repairs of the
improvements, mechanical contracts, painting, supplies, vehicle expenses and contract cleaning services; it
excludes maintenance payroll. According to the historical expenses, repair and maintenance has been generally
consistent, averaging $428 per unit over the past two years, The average is below the !REM indication and
above the rate indieated by the expense comparables, Allowing for inflationary factors, the repairs and
maintenance cost is projccted to be $39,600, which equates to $450 per unit, 50,77 per square foot and 7,8% of
effective gross income,
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ExpertSe Comes
Camp Man
J.R.E.M. Raale
SUbJedl!196
3,25%
5173
$O.JO
SabJ..,I991
1,71%
590
1.-'.:
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%EGI
nI.
nI.
2.10%
5t37
Per Unit
539.$68
5'3
Per SF
nI.
nI.
$0.14
$0,16
The expense comparables, all properties within larger portfolios of properties, exhibit a narrow nmge of
indications for insurance costs which are below both !REM and the subject's historical expenses, We project
a stabilized insurance cost for the coming year between the 1997 actual and !REM, or 57,690; this equates to
50,15 per square foot and 1,52% of effective gross income,
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RealEs.tateJaltes
As discussed in the ta.~ assessment analysis section of the property description, the subject's assessments are very
high, We have assumed that a prospective purchaser would assume a successful assessment appeal and have
elected to disregard the current assessments, In lieu of a tax expense, a tax rate will be factored into the
29
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I:\'CO~JE APPROACU TO Y A!.UE
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capitaliz:llion rOle, ThollaClor, which is a function of the mllloge rate and the common level ralio, is calculated
as follows:
.,
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Currrlll \IiIJ"::t'lto1ll'
Common Ln-d Rallo
Tn told 'trior
II/h"1I0f'
6.80%
0.011492
The impact Oflhe la,x load factor will be discussed in the capitalization section of this report,
Oth.... ~a}'Illll
r.,pente Camp RUle Camp Mean J,R.f:.M, Sub)... 11196 Sab)"'I!197
%EGI nI, nI, 7.80% 3.40% 4.00%
Per Unit 5272-$469 5390 5351 5181 S212
Per SF nI, nI, SO.33 SO.31 SO.J6
The Other Payroll category includes maintenance payroll, and taxes, insurance and benefits for all payroll
categories, with the exception of contract labor; contract labor is within the repair and maintenance category.
The other payroll category for the subject property has been low compared to both the comparable pro..,.rties
and !REM indication, This may be because the properly shares staffwith an adjoining property, and is too small
to have extensive sloffing requirements, Giving greater weight to the low end of the comparable indications, the
Other Payroll catcgory has been stabilized at $300 per unit. This results in an annual expense ofS26,400,
R'''''"'~s.fur.Replacement
Jhis category reserves funds for the replacement of capital items such as roofs, appliances, and asphalt
replacement. Based on the age of the subject property and discussions with investors of similar prol"',ties, we
estimate that an annual allocation equivalent to $250 per unit should be adequate, This equates to 522,000, or
4.3% of effective gross income,
Sumrn~ ')C
The discussion presented above suggests total operating costs of 5222,154, or $2,524 per llllit prior to
consideration of real estate ta.xes; this equates to an expense ratio of 44,0%, The following table presents a
synopsis of the income expense projection,
30
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INCOME.AI'l'ROACH.IO_VALUE
""
Revenue and Expense Projection
Rentallncomc: 5520,800
Laundry Incomc: 58,000
Pet Income: 52,400
Potential Gross Income: 5531,200
Vacancy and Credit Loss: 5,00% 526,560
Effective Gross Income: 5504,640
%EGI &:sf PerTJnit Gross
Management! Administr.llion 10,0% $0,98 5573 550,464
Operating 15,1% 51.48 5864 576,000
Repairs & Maintenance 7,8% $0,77 $450 $39,600
Insurance 1.5% $0,15 587 57,690
Real Estate Taxes N/A N/A N/A N/A
Other Payroll 5,2% $0,52 $300 526,400
Reserves 4Mi, SM3 llill $22 000
Total Expenses 44,0% $4.33 $2,524 ($2" 154
Net OpcraUng Income 56,0% 5282,486
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V. Capitalizatiol1.
Capitalization is defined as the translation of net income benefits into an indication of value. Primary
capitalization methods include Direct and Yield Capitalization, Direct Capitalization considers the application
of a single rate to the anticipated net income in the first operating year while yield capitalization considers
revenue generation over a holding period and potential reversionary benefits as separate components. For
properties such as the subject, Direct Capitalization is most appropriate,
Having concluded that direct capitalization is the most suitable teclmique, an overall capitalization rate (RJ must
be estimated, Three of the more common techniques for rate derivation are briefly described as follows:
31
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INCOME APl'ROACll.IO .YALUE
R, can be developed through a Mortgage/Equity technique which compares the proportionate return
requirelllenls of both the equity and debt positions,
R,can he derived from Debt Coverage (OCR) and Loan to Value (L1V) ratios,
R.,can he extracted directly from the market based on the sale price and anticipated income generation
of comparable properties, or based on interviews with market participants,
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MmlgageLEquity..Iechniquc
The Mortgage/Equity technique is essentially an average of the equity and debt components, weighted on the
basis of the individual ralios to total value, First addressing the debt side of the equation, a variety of avenues
arc available tor debt financing, including banks, S & L's, insurance companies, governmental agencies,
conduits, mutual lunds, REITS aod other forms of securitized debt. Mid-size to larger properties can generally
avail themselves of the broad range of fmancing options, while smaller deals would likely be limited to banks,
S & L's, or in some instances, conduits,
Accordiog to the Wall Street Journal dated May 5, 1998, the following market rates were published:
Cat~-:.:ury
CUrTf'ntR.t"
Prime I~a't:
8.50%
london Imcrb;1nk OtTered Rates (lIBOR) I month
5.6563%
...
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Londun Inlcrb:mk Offered Rates (LlaOR) 12 months
6.9023%
5,66%
5,74%
Trc:Jsury Dill- 5 Ye:1I'
TreasuryBill-tOYe:ar
FcrJc:rol flome Loon Mortgage Corp. Yields on 30 yr mortgage
commitments. Jo-day delivery
FerJcrol S:lIional Mong..ge Assoc. - Yields on 30 yr. mortgage
commiuncnts . JO-day delivery
7,09%
7.03%
Interviews with mortgage bankers active in the mid-Atlantic region suggest that fmancing is presently available
at rate 150 to 200 basis points over the to-year treasury (presently in the vicinity of 5,7"10). We estimate that
financing could be obtained at a rate of7,5% with a 25-year amortization period, 100year term, 75% loan-to-
value ratio and 1.25 debt coverage ratio,
32
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I~COME APPROAC1UO VALUE
DchLCovcragc l.uan lo.Yalue1tlcthod
This mcthod IS hascd entirely on underwriting criteria, The terms of the likely debt financing discussed earlier
results In an 0\ crall rale indication by this method as follows:
D~bl Ca"f'r:.l~l' H;alill
~lortl:lge Conslant
l.oalHDo-Value Ratto
Onnll!tlte
1':;(1111
00887
0.7500
0.0832
Again rounding 10 thc nearest quarter point, this method suggests an overall rate of 8,25%,
SaIcl1erll'ation Method
This mcthod considers the overall rales exhibited by the transactions included in the Sales Comparison
Approach, Thcse s:1Ies, which occurred between 1994 and the present, exhibit financial characteristics as
follows:
Salt LU(':lliUII E.G.t. per Unit NO! per Valt Elpease Ratio o.enD Kale
Colol1lal (jkn t\p:!.rtmenlS S6.5lJ S3,464 46.90% 10,00%
luwer 1):nbJIl Township
2 Quail Run l\p:lrtl11enC S5,625 13,050 45,77% t2,22%
unc:lStcr Township
3 P:lXlon I':Hk .-\J'3rtments S5,935 S2.571 56.68% 11.25%
Lower I'a.\lun Township
4 Country ",":llk ..\jl3nm:rus S7,809 S5,041 35,44% 9,68%
Lower. \iren TtlWnship
5 Sh:mc:ncJn:1h Ap;mmenlS $6,196 $4,164 32,80% 10.41%
Mcc:halllcsburg
6 S<:houl f luuse Apartments $6,860 S2.884 57,96% 10,18%
Mec~nitsburg Dorough
7 The Pines 15.370 $2,458 54,lJ% 10,18%
Susquch.mna Township
8 LintlhamCtlurt S5,947 S3,842 35.39% 9,10%
L'ppc:r ,\lkn Tuwnship
9 Sl1l;iCI~ I hI! Ap;lnments $6,746 $4,185 37,96% 11.30%
llmer .\ll..:n r.,\\nshi
These sales, which occurred between January, 1993 and November, 1996, exhibit a range of capitalization rates
between 9,1% and 11.22%, with a mean of 10.48% and a median of 10,18%, Recognizing that debtralcs have
declined si:,'nilicanlly since these transactions occurred (rendering them trailing indicators), we conclude an
34
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INCOME A.Pl'ROAC1I.TO.VALUE
indicatIon n~af ,h~ mid-point of the range, or 10.0%,
~ummal)'
At this point It I~ worthwhile to discuss the relative merits of each approach to rate estimation, The Debt
Coverage Method (8,25%) has an inherent weakness in that it does not specifically address the equity side of the
equation, The MortgagelEquity Technique (9,5%) improves on this as the equity requirement is an integral part
of the calculatiol1. Typically, the Sale Derivation Method (10,0%) is perhaps the best reflection of the market,
as it represents actual transactions within the market, however as discussed above, rapidly changing markets
render these transactions to be trailing indicators, Overall, each method should be carefully reviewed in order
to gain adequate inSIght into the investment, Based on the discussion presented above, and giving equal weight
to the Mortgag~jEquity and Sale Derivation Methods, we conclude an overall rate of 9,75%,
It remains to adjuslthe capitalization rate for the tax load factor which was previously calculated to be 1,1492,
Summing the overall rate with the tax load factor results in a tax loaded capitali7.ation rate of 10,9"10, Applying
this to the pre.r~al estate tax NO! developed earlier results in a value indication as follows:
Net_Opcr:llin~ Income
Qyerall Rate
Value Indication
5282.486
10,90%
Rounded To:
$2,591,615
$2,590,000
It should be nOled that this is a fee simple valuation. as it is based on market rents that are higher than those
presently in place,
,
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The implication here is that a correct assessment would result in real estate taxes of $29,778 ($2,591,615 x
1.149%), or 5338 per unit.
35
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SALES COMP ARISON.A.e.PROACH
I. Introduction
In the Sales Comparison Approach properties generally similar 10 the subject are analyzed on the basis ofan
appropnate unit of comparison and then compared to the subject. Physical comparisons as well as income and
expense ch:lractmstics are useful in arriving al a value estimate through the Sales Comparison Approach, In
this analysis, IIC compared each of the comparable properties to the subject, taking into consideration the
expense ratin, the effective gross income multiplier and other related factors,
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II. Comp:u:aliYe Anal,y<is
Limiting our research to the Harrisburg MSA, the fOllOwing transactions were discovered:
Sal. I.U(,;lIillll s.re Dlfe Prl<<lt1nl. E'_Rallo E.G~M.
1 ellr"".:ll ilen ,\p:mmc:litS 10/96 $34,626 46,90% $.31
I.tJ\h'r 1':"\100 Township
2 Qu;,lIll~.U1 "p:mmcnL'l 11196 $24,963 4$,77% 4,44
L;UW;hlcr To\Vt1ship
3 P;mon P:ark Apmments 0$19$ $22,8$7 56.68% 3.8$
Llmcr P:1\IOn Township
4 Counlry Willk Apartments 03/9$ $.52.083 35.44% 6,67
lower .\111:" TO'MlShip
$ Sh:,mcnJ":.lh Apartments 12/94 S40,OOO 32,80".'\ 6,46
.\h.'('hal:Il:~burg
6 Schnllll fnusc Ap3rttnents 06194 $28.333 57.96% 4,13
Mcch;lJllC~burg Borough
7 The Pil1~s 01/94 524,1$3 $4.23% 4.$0
Susqllch:ll1n:l Township
8 LindhOlIll Coun 02193 $42,222 3$.3</% 7,10
Upper .\lIen Township
9 Sociely Hill Ap:u1ments 01/93 537,037 37,%% $,49
I.o\\er .\Ikn TownslillL
Detailed "Tite-ups of all the sales are presented in the addenda, The subject is projected to exhibit an expense
ratio of -l-l,O"~ prior to consideration of real estate taxes; adding the taxes implied by the value conclusion
reached in the Income Approach, the expense ratio becomes 49,9%, and a net operating income per unit of
52,872, Rather than presentiog an adjustment grid to more subjectively contrast aspects of the sale plujJCrties
in comparison 10 the subject property, a process known as regression analysis has become an increasingly useful
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SALES COMPARISON Al'fROACH
I. Intruductlon
In the Sales C"lIlparison Approach properties generally similar to the subject are analyzed on the basis ofan
appropnate 111111 of comparison and Ihen compared 10 the subject. Physical comparisons as well as income and
expense ch"rJcterlslics are useful in arriving at a value estimate through the Sales Comparison Approach, In
this analysis, \\e compared each of the comparable properties to the subject, taking into consideration the
expense rJllo, :he effective gross income mulliplier and other related factors,
II. Comp:tra~
Limiting our rcsearch to the Harrisburg MSA, the following transactions were discovered:
Sole l.nC:llillll Sate Dice PrlctlUnlt E.zprase Ratio E.G.LM.
("JIIIIl, Ii t ilen A~rtmcnts 10iV6 534,626 46.90% 5.31
Lll\\.:r 1';.\100 TO\m5hip
2 QUJII !CUI ;\p:nment.s 11196 524,963 45.77% 4,44
Lml,';.hll.'r r ownship
3 P:mon i';&rk Apou1m:nls oms 522.857 56.68% 3,85
Lo\\cr i';&\wn Township
4 Country Walk Apartments 03195 SS2,083 35.44% 6,67
Lower .\lren Township
5 Shant:nJI'ah Apartments 12/94 $40,000 32,80% 6,46
~1\.'Chal~lc~burg
6 ScJuk'llllull5c Apartments 06194 528.333 57.96% 4,13
Mcch;lIllc~burg Borough
7 Thcf'incs 01/94 524,153 54.23% 4.so
Susquch:ll1na Township
8 LinJh:lln Coun 02193 542.222 35.390/. 7,10
Upper .\lIen Township
9 Society filII Ap:utments 01/93 537,037 37,96% 5,49
I.o\\cr .\tlcn Townshi
Detailed "Tite-ups of all the sales are presented in the addenda, The subject is projected to exhibit an expense
ratio of ~-l,O"~ prior to consideralion of real estate lal(es; adding the taxes implied by the value conclusion
reached in the Income Approach, the expense ratio becomes 49,9%, and a net operating income per urtit of
52,872, Rather than presenting an adjustment grid to more subjectively contrast aspects of the sale plul"'ilies
in comp"riso" '0 Ihe subject property, a process known as regression analysis has become an increasingly useful
36
Barone, Murtha, Shonberg & Associates, Inc,
RECONClLlATlON
The purpose oflhis report is 10 e~limale the markel value of the Fee Simple interest in the property located and
known as:
Belle Terre ApartmenlS
Geneva Drive
Upper Allen Township
Cumberland County, Pennsylvania
The scope of the analysis has been limited to full development of the Income and Sales Comparison Approaches,
The value indications are as follows:
Cost Approach:
Income Approach:
Sales Comparison Approach:
Not Developed
52,590,000
52,390,000
The value indications vary by 7%; giving grealer weight to the Income Approach, and based on the analysis
presented herein, we estimate the market value of the fee simple interest in the subject property, in cash or terms
equivalent to cash, as of May 4, 1998, to be:
Two Million Five Hundred Thousand (52,500,000) DoUars
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PHOTOGRAPHS OF THE slm IECT PROPF.RTY
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ELEVATIONS OF THE SUBJECT.
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TYPICAL INTERIOR VIEWS OF THE SUBJECT PROPERTY.
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Tl...,nd Hln' Uun'rtd ond SeventY-lIiqh~ (1978)
~rtlUrrlf R. A. ORTENZIO and NANey H. Ol\TENZIO,
Hechanicsburg, Cumberlaod County, Peoosylvaoia,
11110
tilub~ IDl1r
,,, 'A, Nt",. 01 owr Lord 0,.,
of 3428 Lisburo Road,
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BELLE TERRE, a Penosylvania limited psrtnerBh~p, 301 South
Allen Street, State College, Centre County, Penosylvania, Grantee,
"I 'I.( JrcUlld IIa,'" ltlUurunrtlJ '/'/1111 II,,: ",id/ld,., ieo ufl/le II'" /lfll"', III' '"111 '" "/lfuidrratiu"
,., 'AI ",n., Ooe ($1. 00) _______________________________________________
1I0I1u", lurrllll /llfJllrv ul 'lit Ullih',1 .\'1"/r, v/ .-t,Ncrit'll, Irt'll "III' 'rulr paid by IIle lulcl party 0/'11'
ftcolld pal'l tu lI,e '/l1d fourdes I,/'IIe /ir" II''''. nl tut,1 brf",.t IAe ,,'oUng an" dcJll'rrv II/lit,."
Prtltnll, lite recrlpl ,,",,'ro/ iJ Ill"J'j'f,y IId':lIult'lrllorll. have
'lftH,'rd, ~urgllilltd, 'oM, nlil'lIrll, fll/cul/r,'. releaw', c"IIllrr!Jrll ulIll l:ulI/lrmtll and bll tII,,~( ptrun" Il"
greWI, Imt'g";I'. .,"U. "IiI'II, 1'11/"',/1. "dealt, e,m,",,!), 1111,1 Nil/It'" It"I" 0" ,nl,' !'HIt'Y 01
,'" It'cotlll par', ita SUCCCFlsors MX1.4 II"" '''''!I''''
.~ll THAT CERTAIN lot or piece of qround situate in Upper Allen Town-
.hip, eumberland County, Peonsylvanis, bounded and described in accor-
dance with a Final Resubdivision Plan for R. A. Ortenzio by Charles W,
Junkins, Registered Surveyor, dated October 11, 1976, last revised on
November 16, 1976, as follows:
BEGINNING at a point 00 the southerly right of way line of Geneva Drive
(50 feet wide) at the intersection of Lot 3-A 00 the aforesaid Plan
and lands of KOG, which point is on the dividiog line between Upper
Allen Township aod Lower Allen Township and is North forty-four (44)
degrees two (2) minutes nineteen (19) seconds West from a concrete
monument at the intersection of lands of KOG and Winterset One Asso-
ciates; thence South fifty-two (S2) degrees thirty-six (36) minutes
thirty (30) seconds West alonq the southerly right of way line of
~neva Drive a distance of 5.83 feet to a point; theoce along same by
· curve to the left. having a radius of one huodred seventy-five (175)
feet an arc distance of 94.31 feet to a poiot; thence aloog same by
· curve to the right having a radius of two hundred twenty-five (225)
feet an arc distance of 121.25 feet to a point; thence South fifty-two
(52) degrees thirty-six (36) minutes thirty (30) seconds West along
same a distance of 56S.41 feet to a concrete monument; thence along
same 14.31 feet to a pin; thence North twenty-two (22) degrees twenty-
five (2S) minutes thirty (30) seconds West aloog Lot 4-8 a distance
aoQW27 PACt 3G7'
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IllUUO' (Ull'U" CO\.l.ft.:T10t'S
CEAlTY l"^NSf[~ lAX
AffIDAVIT OF VHUE
I un f:tI,:Jli~t r~''''lJ',1 "',\'
"oo~. f1UfoInrlt":':'_l 1:-1:J;'--
"At;C MVllln[R -:,.-..,JJ,,;!--"'-' _.,..,..-
DAle ReeO"OEO_...;4..-_Y- -/-11__
CDIf'l.tTC ..,rr.ICAO\'I! stellO", Ifl ~'UI.I. "'10 ffl.&!'" ourl.lCATr. WITII "'CORD[/1 0' OEtOS "N'" CH TUe:
tv",". (U.HIOt;I1"""JIt It HOT "T rC:1f1111f tile 0(1::0. U. fifE flU"'''''''' "'ITHOIJf co,.,IOIRATIQ,f Olf A'I",
Gun" fA~ (Xl'..U' nOfl IS CLAIMeD. (11(f en HCT"f AT 1 ACT or Dec:. n. IUI, p. L. 114: AS AM("DtOJ
-
-
-
-
SCCTIOIII
.: J, A, ORTENZIG'.n~. ._, (C.ow'LCU.'OM ALL tRANSACtlONll
~ANCV M. On'TENZIO. hi. ""Hft 3-1Z8 Lhhurn nO.J.d.J.fw"rdt'lIhllrg t1.\
!tLLE TEf\'lt't:.'''\'~I'''Il.~': ',_ . .00....
,arln.roMp' , 301 S. AII.n 51,. Sl.ta Collec.. P^.
GMAM'I".' .00_'1'
\.0<:'"0''' OP LAt<O, nHf.H'-t<T1Jot<O HC^[O"",E/lTI. Upp. r Allan Town.hlp, Cumbo rhn~ COlln'1. P...
..C'ln.~ _ot 4.A un a 'In<'l1 ue.u\'u,HvlOiun Plan for It. A. Ortenzlo by. Chilr\es W. JunJ.ul1',
~fcutered Surveyor, dOlted Oct. II, 1976, 10\IIt revhed on Nov. 16, 1976.
I,.:l. UJlIl!C' . ..v...c" Ot. IJ'IIC" D.uelu"'lo" .......( 0" "'oc..... GOYl(.lIIlN...IHT"", """ T CO"'''''f
r.tL COt<\I0CRAtION $ 118;389;00 ,,'
IlJa "AIIKn VALue s
'HIGt<flT AIIElleo VALUC S
REAI.TY TRANI,fR tAX PAID S Z, ]&7,78
..... .... .~.. ~'.~I..: . "_ _. ...,_ ~...... ._... . ,'1. " . ..' .~. '.: .
.111 U!MPT TRAHSACTIOHS, II' TR.uIS"E~ IS PARTIALLY on WHOLl.Y EXEM~T.. SH.O'" AIoIOl!HT Exrlo4pl',
1Ll10t< (II AND ClTa PORTIOt< OP LAW. '..., .
. ..1.... . ','..', ..' . .... J': r '.;' .;~.' . I . . ,
.. " ;. .... J
"'HIS IS A. TRAUSPER FRO'"' A ~!nAW._~~~E.~nUS1 ACRI!EMEflT. COMPLETE THE RI!.VERSe: SIDE.
SECTION II" . ,
. ~.(COMPLEta OHLY IP PROPERtY,WAllUOJECT to LlfH OR MORtGAGe AT THe tiMe OF tRAHIFfR)
",Dlln~c MORtoAGe. s
.....~,. .-., -.....,... ...
OII~~.~I,TIOH
, ,
. .'. .. . . ~ . I '.
. lolontOAOI(....
,.r;HHU,"
:'DIITI~CHORTCAGe. $
"
OIIPOSITIOH
"
fo40nTOAQI"f.
AUCIUOIo'
:-.
.. ,
: D11TI~C LIEH OR OBLIOAtlOHI $
OllfO$ITIOH
.'
AUgll"~'
LII(...Ml)l.lJt:.ll
....
DlInHO LIEH OR OBLIGATIOHI S
OI$POSltIOH _ '
.'
.., "..,
AOQRi'.IJ
LI(N"OI.O."
...:':'''~f~'!',,: . ': . "':'::;~ t!::::,:~~,,"'I.:.:i\. ..:~'-: :SECTIOH 111 : ....;... . .:.
'. I~~:~~:"":'.' "~::':~"(coMPLl!Te'oiu':y I' TRANSFER IS RESULT Of JUDICIAL SALE)
.'O"'CIA~COHO'UClIHO SALe ..'.,:.,'..-,.,., " ., ',' ' " '
AUUH..I.
.,...ti,....... ~...'., .~.:;.J~.;M;;:.!;'\~..........:I....~..~.:.:~:lr..,...;....:.' ....:. :.
IlCCIllPULOlooen.' "...,.,.,'~ .....i. " " . .
.' ::::\\'~~i.~~:;~:,:,\;;k~W!5~~~~'~:',{ ~c<.::;(~Sf;:~~.~::;' ;;rr: .
:,"" ....~....... ,;-.. .~:..J.~.~.~...~. 7':"JUOGEMEUTPLUS _. ..:.' BID PRice '.'
..: ......:-.':..:'..'.~'io:';: :.' ".:PRIOR.lIEHS "'~" <I.
1 r: "':'.~~l,:,.~~;-::.:':.,,~:.t,.":."{~~~l;: ~~ "4;i!!!..;:'-..:)'~'
NDC!IoIEHT PLUS IHTGREST S j .,.~":"~~\f...:.::.~....,:.\~;:.:...,!,:~::o-::;:",,,,~';).<;I'-l;'iol.\"'.
.; 110 PRice.. ....._~...._. . - -...-.....- ~..~~;.::~. :~:.~~S'.~_~f':~~?" s -....- ... ... ..... :~~:~"~:~~~~~S,
,.,OR liE n I. t . ~.~ . ~-":"'''N.:''''ll'.''''''~~' ..'I'
'RI R r: J.I C ':';";':;:'~":':':'~"z(.t:. .-:-;;a
PRIOR RECORDED MORTCAce. .: ._ $ .' . '. , "'::';'K'2"::;'~~..~-:.:;;.;,;o;;.:.i:.7.~
:::~~oeR:::~oEm Tml :" : :~~~~~Jj~~1.~'
LHORHEY Ft:ES S ~ :!-,~:.~::~~~:,.:::~';:;~~I:~;~~~
':!THEA. ICOSTS. eTC.) s S '~'-:',:,_...7~:,:'\o_:;~....... .
TOTAL I $ I
'.
.;'
1I1"'~
TITLI! .
HICHEST A$IEIIEO
VALue
....--..-... ......-.. .......-----..-..-
........,., . .'.
HOTE., CALCULATIOHS HUlt BE SHOWH IH ALL COLUMHl.
,""......':..:...., ;.\ ,', ',. DOOK 27 P^GE
. ..' (~~~. .'.'~ '" /" .... .~. '" .~.\.,' . ,
rro'~t<o.luB\.cl\ln~o U.EFORE Me THII ~
(;f.. ..\.........,~)"t~Io.I.. ,'" "1Y
371 ALL OP TIlE IN'ORMAtIOH E14TEREO
.0/4 BOTH IIOEI OP TIllS APFIOAVIT 1$ ,
tRUE, 'ULI. AHO COHPLeTe :0, T'!!--.
.'
....
"
'. i
... '"
~
n
n
n
n
~
o
o
ZONING
TABLE OF USE REGULATIONS
SCHEDULE E
URBAN RESIDENTIAL DISTRICf (UR)
In areas which can be feasibly supplied with public facilities, a higher density of residential
use can be accormnodated, Also, such area.! can be used for a variety of housing types to
include multifamily dwelUngs, Commercial uses are pcrmIllCd only for the convenience of the
m1denu, Such commercial uses must be subordinate to the residential use, must be an Integral
pan ohresldential subdivision or land development or must be designed 10 serve one (1) or
more existing midential subdivisions or land deve10pmenu located in the immediate vicinity
and not served by integral commercial uses,3S
Number
Use
Additional detached
dwelling
Apartment (maximum
density: 12 dwelling
units/acre)
Boardillghouse
Church
Cluster developmcnt
Communication facility
(publicly regulated)
Conversion apartmcnt
Crop farming
Cultural facility
Day nursery center
Day nursery home
Drive-in stand
Fire station
Goifcourse
Greenhouse
Group home
1.
2,
iD
10
10
ID
ID
~
[l
[0
3,
4,
5.
6,
7,
8,
9,
10,
11.
12,
13,
14,
15,
16,
P = Permitted
SE = Special Exccptlon
p
p
SE
P
SE
P
SE
P
p
P
p
sa
P
p
P
SE
35 EdItor'. Note.; Am<<Dded It Um, ot adoption ~ Code; "' Qaptu 1. GtDen.I ProyfJlODJ, Art. L
'I
UPPER AllEN CODE
P . Permitted
Number Use SE = Special Ellcepllon
17, Home occupation SE
18, HospilAl P
19, Personal service SE
eSlJlblishment
20, Planned residential SE
development
21. Private club P
22, Private recreational P
facilily
23. Professional oftlces SE
24, Public building P
25. Public entertainment SE
facilily
26, Public recreational P
facility
27, Restaurant P
28. Sanitary facility SE
29. School P
30. Signs P
31. Single-family dwelling P
32, Supply utilities SE
33. Townhouse (maximum P
densily: 12 dwelling
units/acre)
..,
j
...
I
I
'-'1
~I
,
-
.,,j
h
~
b
o
o
u
~
m
I
I
I
I
~
Oct. Bon ASloelatt. . Ren. Roll (coold.)
BeUe Terre ApartDleDts
Unit Nameo '~c Rent See Dq:>,
607.10 YOUIllI John 1 455,00 200,00
607all Grall Harold 2 50000 200,00
607al2 (jerberich Wend)', 2 500,00 200,00
607a20 Maddiparha Chandra I 505,00 300,00
607121 Nailor Melissa 2 500,00 200,00
607122 (jasper Timothy 2 50000 200,00
607,23 McClain 1, R. J 45500 300,00
607130 Weigher William 1 455,00 300,00
607&31 Willilll1J 181J1e3 2 525,00 200,00
607132 Lynn Delbert aIld lWeI! 2 500,00 200,00
607133 Weicht Jack 1 455,00 200,00
607bl3 Val:lll1t ., 500,00 300,00
..
607b14 PtJUly ThollUl:S ., 500,00 400,00
"-
j 607b15 MilletT Jamie 1 455,00 200,00
607b24 Grubb Ruby 1 455,00 100,00
n 607b25 Gonzales Linthurst & Jamie :! 525,00 D 200,00
607b26 Dymilc John 2 525,00 D 200,00
607b27 Sublamanian V.K. Ramesh 1 455,00 200,00
0 607b34 Watlcin Michael 1 455,00 200,00
607b35 Miner Derlc & Jon ., 510,00 400,00
'"
C 607b36 Liu lan and :Nicole 2 500,00 200,00
607b37 Carlisle Kim 1 455,00 200,00
D -----------.----
'M_-r'a&.. 5,100,00
~ IOb8'5.flt)
,
I
I
I
I
~
.. Oellaon AIIOellln . Rent RoD (eoDld.)
,j
Scle Terre Apartmenls:
Unir Name l:Jn~ Rrnt s..., Do:JI,
609110 Snyder Palricia 1 4JO,OO 200,00
609.11 Ga1Jjng WUliam and Joan 2 525.00 200,00
609112 GuIin Jlsi. " 525,00 D 200,00
*
1 609a20 Lyon Ellen 1 455,00 200,00
609a21 Rogers Fred 2 47500 200,00
............-.
~ 609122 Cain Faroo & Susan "2 500,00 200,00
!j 609a23 Smith Jolm 1 440,00 C 200.00
609130 Wilegarver Sharon 1 455,00 300.00
609131 ThielmaJl Debra 2 50000 200,00
609132 Suoman Scott 2 500,00 200,00
609133 WeitJcamp Christopher 1 455,00 200,00
609b13 Sharp Angela & Lynn 2 525,00 200,00
609b14 lbberson Nadine :2 500,00 400,00
609b15 Bur Jeffrey I 455,00 200,00
609b24 Millur T,L, I 455,00 200,00
d 609b2S MillerlKnipple Travis and Jennifer 2 525,00 200,00
609b26 Vac.'ll 2 SOO,()() 400,00
d 609b27 Wright W, 1 455,00 200,00
609b34 Kory Jones (MI 3/1/98) 1 455,00 300.00
0 609b35 Sli1J Karen 2 500,00 200,00
609b36 Amanor Edward 2 500,00 200,00
609b37 Galbraith Brill 1 455,00 200,00
0 --..-----..-...-
10.585,00 5,000,00
0
U
U .
u
m
I
n (XII'lon AuocllllUI ReI" koY (eolltd.)
,
~ BeU. Terre Apartlllenll
Unit Name TvftG RMt See D~
61lal0 Kocher Tim 1 46',00 C 200,00
n 611all Belunan -
Scott and Christino 2 .52.500 200,00
61la12 Crouon Alan and Kathy 2 .500,00 200,00
n 611120 Lalonde Bn.ace 1 430,00 200,00
611121 Frey Karell 2 52.5,00 200,00
n 611122 HUlUlnaer Forrest 2 500,00 200,00
611123 Long SheW 1 4.55,00 200,00
C 611130 Kundel Nancy J 455,00 D 200,00
611&31 Irani Nozcr .. SOO 00 400,00
~
61 ta32 SlTobett 10llClph 2 500,00 200,00
n 611133 Knight Tom I 455,00 200,00
m 611bl3 Zimmerman 2 500,00 200,00
.. 611bl4 VllClllt 2 500,00 300.00
I 611blS Vacant I 455,00 300,00
611b24 Kauffinan 1 505,00 300,00 ~
I 611b25 Stonc:6fer Michael 2 500,00 200,00
611b26 Mueller 1, 2 500,00 200,00
I 611b27 Clytie John DlIVid 455,00 200,00
611b34 Scbalfstall 1 455,00 200,00
I 611b3S Vacant 2 500,00 200,00
6l1b36 Landis Albert '. 500,00 200,00
...
61lb37 Bingaman LonH, 455,00 200,00 ..
I f::::
-----...------ V
10.635,00 4,900,00
I
I /,j
'/,
..,,;;'
" i~:~~,
I L'i!
I'.-{~
.,
"
il
,.
,I
I I,
I
,.
it
,.
1'1
I
1 Ocllloa Alloci.,a. Real Roll (coald.)
D,Ue Terre Apll1menll:
Unit Naml! TYf)~ Rtmt Se~ D'lll
II'!
I 613al0 Umbre1J 10hn J 465,00 C 200,00
j
613111 V,.hoy Dulchey 2 500.00 200,00
613al2 Bair Halve)' and Dodie 2 500,00 200,00
613120 Zimmermaa Elizabeth I 455,00 100,00
613121 Quaker Michael L, & Kerry 2 500,00 200,00
613122 Bait Dale 2 525,00 D 200,00
613123 Tarilox Nanc)' I 455,00 200,00
613&30 Daood Asit I 455,00 200,00
613&31 Bloor William 2 500,00 D 200,00
613&32 Stoner Garboritz 2 500,00 400,00
613&33 Sandlusky Petcll' 1 455,00 200,00
,
613b13 Cory 2 500,00 400,00
..., 613b14 Lulll 2 500,00 400,00
,,I
613blS Krewson Benjamin 1 440.00 C 200,00
613b24 CrClythtlmel Leree I 455,00 200,00
613b25 Ivey Thomas 2 500,00 200,00
613b26 Horney/Yenlz Kenylflill 2 525.00 200,00
613b27 Roos Wiltiam J 455.00 200,00
613b34 MeJlol\ ShaW1l1 I 440,00 C 200,00
61Jb35 Hine8iStewan HeatherlKim 2 500,00 200,00
613b36 Robeer Tammy 2 525,00 200,00
613b37 SeytI10re Stepheo 1 455,00 200,00
..--..--------
10,605,00 4,900,00
Total (40- One BR,48-TwoBR Units and 23- Patio Homes) S --, -IS. II SiOI'GU8-d)
55"MJ7,6+ ~7:-UO
Uult ~pe; B-With BllSelDent; O-No Duement; I-I BR; 2-2 BR; C-With Cal; D-With Dog
COMP AIIAII LI SALI - All AItTIIIDIT
NAXII/r.oCATION.
Colooi.l Ol.n Ap.rta.nt.
4900 Lanc.r Str..t
Lo..r Paxton Town.hip
Dauphin County, PA
TAX ID KO..
35-054-001
OIlAll'1'OR.
S-.u.l Z.11 . Rob.rt Luri.
ORAH'1'Jl.,
IIGlII Ib1t.rp"h..
CONSmDATIOK.
$6,025,000
YDJl BtlZLT.
U76 ,COImITIOKI
OooeS
IltlZLDDCQ ARDI
194,279 Sq.~t. LAND ARKAI
14.7300 Acre.
IlllIIIln O~ mn:TS.
174 RBIl'1'ABLB ARBAI
153,564 Sq.rt
COIIIIIR'r I
tJneS." .gr.......t of .al. cSat.eS Octobe" 2, 1996.
D.SCRJ:1>TJ:OK.
Colo.ual 01en AparbMnt. con.ht. of 174 two-bedrooa
lIU'cSen aneS townhou.e unit. hoWled ritbiA 20 two aneS
tlu:ee-atory buildJ.nll.. UlIit.u: b 138 two-bedrooa
unit. (860 .quare f.et) ancS 36 two-b.cSrooa unit. (969
.quare fe.t). Th. townhoWle unit. contain a
...her/cSrye" hookup. Allanitle. 1nclucSe a ~ll
pool aneS launc!ry ,facl1itle..
~Ylr8 OW 8ALB
8ALB PR%CI/8q.Wt.. $31.01
(O.B.A.)
OJr.tT 1>RJ:CI. $34,626
IALII 1>RICI/8q.n:. $39.23
llUlIlTULII ARD)
IlBCOIID m.
1>JlO'D'n' m.
~m.
15210
15418
'n8n
...
-
IWCIl/LOCAT%ON.
TAX %D "0..
GRAIft'OR.
GRAB1'D I
CO"SIDIlRAUOB.
1
/..,.i
DAn or 8ALII.
DAR BUZLT.
R1lIIBa or OHJ:rs.
DUCRIPT%01'I.
JlJl:A.Ll'8%8 or ~
~
~
I
I
I
I
UJlXT 1IRJ:C3.
.'
COICPAllAJIr.. SAL. - APU'!1lDT
QuaLl Run AP...ta.nt.
4001 R.wl.igh St....t
Low... 'utoa TOWll.hip
Dauphin County, PA
35-058-71_73, 151. 155. 156. 157
r.d....l Boae LoAD Mo..tg.g. Corp.
B.ajaa1a D. Gall...
$1.425.000
15-NOV-U
DBV/PAQJI.
2104 / 102
1971
CORDn'J:OIf .
W.i"/poo,,
,LlRD ARv..
5.7930 Ac....
S8
Wood f...... t_-.to:r:y coloJUal bu11diJlll. witla
iat.do.. hall.. lhU.t..... all oloatric. II tot.l
unit.. ll'ntt: aU: 18 20 oao-b.clJ:ClCe/oao_bat:h wdt.. 55
tWO-b.clJ:oca/oao_b.tIa unit.. _d 12
t:br..-b.~1.5_b.tIa unit.. Tho"o va. d.f......d
lII&1nt...ADco at time of .al.. JIIIllDDod c.pit.l
imp..ov.....t:. of .PPZ'OXiaat.ly $100.000 1nclud.
...pl.c.....t: of hall carpot.. J:OofiDll. "apaV1nll and
cOllplot. "lODOVatioa of pool which ba. bo_ cloaod fo"
qui t. . whilo.
$15.193
aac:om %D.
lIIlOPIIItT1' %D.
lIB01'O %D.
1177
J70
2110
COIlPAJIAIIU SALa . APARTllIlNT
NAIIII/r.oCATIONI Paxton Pa~k Apa~baent.
n 660 Pool D~J.v.
Lo..~ Paxton To.....hip
Dauphin Couaty, IA
,
...-11 TAlI: ID MO.. 35-0"-021
~ QUIlTOR. laxton Aa.ootat.. LI
IJ
~1I. _ Inv.._t R.alty Q~oup
COMSIDIIJIATIOH. $3.200.000
DATIl or IALII. Ol.XU."
YlIAR IlIILT. 1966
,LAIID ARlIA I 10.8700 Ao~..
HllIIIIIlR or tlHITS I 140
D.SCRIPTION. rlv., thr....tory bdck rith o.dar '....18
multt-..otton budlding. eont-'"'"t a total of 140
apa~tDent un1t.. Amaattt.. !Delud. a ~g pool.
AHlLYSIS or SALlI
URXT IIlICIi.
$22.857
..a.I.JiIl
3.851
..:t.xa
,~,
8.819
OVDALL RATII.
11.25 'II
IIXPlIIISlI DTIO.
55." 'II
UClDJID Ill.
nol~ Ill.
lIIIO!O Ill.
11U.
12175
3."
..,
-
-
llAXII/r.oc.\TION I
-
TAX ID 110..
GRANTOR.
aRAHTD.
COIfSIDIlllATIOH.
:.... DATIl or ur...
,
,
.. YDR IlIXLT.
HtlXIllUl or maTS.
DUOI1"1'IOlh
ADLYSIS or IIALB
llB1'I' !.IIlICII.
OVDALL IIAD.
COIl1lMAIILI SALI . APUt1I1DlT
Country Walk Apactaente
1400 8111cee.t Couet . Slate Hill . L1.burn Road.
Levec Allen Town. hip
cumbeeland County, !.IA
25-0020-05'
rred Sharer . Larry Salkin
IUcbae1 Serlllco
$5,000,000
Ol-iWl-95
1987
LAJlD AlUlA.
8.0000 Acr..
"
ContllllpOr~ wood. rr_ gard.... apartment bllilding..
I7Dit re.ture. include lIIini-blinda, "..her-dryer..
deck/p.tio and .ecurity "Y.t... The property baa .
IIWilttaling pool.
$52,083
..Q.%.X:
6.670
R.%.II:
10.331
'.68 ,
UlIUSI llAnO.
35.441 ,
IUlCORD m.
l'RO!.Ian m.
11620
12U2
.
,
,.
""
NAJOI/LOCATION.
,...
I
TAX In NO..
,
...
QRAN'l'OR.
~l
'j:....
CONSIDIIIA'l'ION.
i~"
DAft or IALII.
: I
YJIAA BUILT.
I
1""'4
I
"
HllIGIIR or tlNITS.
1'1
DBSCRIPTION.
11>""
I
~ .,
I':
....'1
I'
I
':t"~
I':
, ,
'...
~TIII or 8ALB
tlN1:T PUCS.
I')
-
OVIIRALL JIA'1'Il.
I
I'!
...
I !
-
I \
I
...J
I '
...
COMPAIIAlILK SALK . AlARTXBln'
Shanandoah Apar~nta
105-107 Allan 'traat
Machanic.burg
Cwoba..land County. PA
18-23-0565-83
'ban.adoah LP
,..ank R, '..aiatak
$2.400.000
29-DBC-94
1991
60
Shan.adaah Ap.rtllleat. coa.htl of two woad f......
bllildiDg.. 'l'bl g....dan unite wore bllilt ia 1991. 'l'ba
towahou.. unit. w.... coav...ted to apartmeata f..OIII a
p...viou. iadu.tdal u... 'l'b. Ipartllaata vary wid.ly
ia .i... a. a nault. 1lDit hltur.. !Dclud. wa.h.r
and dry..... ..c:urity. .l.ctric fo..c. hot air and
c.atral air-coaditioning and balcoai... 'l'b.
coa.id....tioa oa th. d..d r..da $2.340.000 which i.
a.t of buy.r'. b..ok.r f.. of $60.000.
$40.000
6.456
..0.1.111
..%.111
9.608
10.41 ,
IlDBRS. RATIO.
32.80 ,
IUICOIID ID.
IlROPIIR'l'I' ID.
11621
12413
~
,
IlAICIl/LOCAl'%ONI
III
.
j
TAX ID 110..
...
.4
GIlAKTOR I
GRAN'RII
COIISID!lRA1'IOIII
DATIl or lIALII.
%DR IIlILTI
I
.,
'P,IIJ
II1lIIBIR or 1lIIITS I
DISCRUTIOIII
I
....1
..J
I
J
Jl!QLYBIS or DLIl
I
r',
,
...
1lIIIT 'UCIlI
CONPAJlABLI S,u.1 - UAATXlDIT
Quail Run Apa~~nta
4001 Ra"hlgh St~eet
Lower Paxton To_ahlp
Dauphin County. 'A
35-058-71-73, 151. 155. 156. 157
raelanl a..... Loan JIo~t9'age Co~,
Benjamin D, Qel1e~
$1.425.000
15-IIOV-93
DBV/'MII
2104 / 102
1971
COIIDITIOJh
'air/Poor
.LA!ID ARDI
5.7930 Acna
88
Wooel f~..... two-atoxy coloDJ.aJ. buJ.l<Unga with
intedo~ balla. UDita..,e all ehct~ic. 88 total
unita. Ullit aix i. 20 one-beclz:ClCIII/one-b.th unita. 55
two-beclz:ClCIII/one-b.th unit.. and 12
thJ:..-beclz:oOla/l.5-b.th unita. There _. clefeneel
maintllDaDce .t time of aale. Plannac! capital
iIIIp~ov......ta of .ppZ'OXiaately $100,000 includa
replac_t of hall cupet., roofing. rep....ing aDd
cOllplete r.........tion of pool which ba. be_ clo.eel fo~
quJ. te a while.
$16.193
IICOIlD %U. '''7
no,1IIl'lT %U. ''''
nozo %u. 2110
...
COKPAlIAIIl.I SALI . uu:ncmrr
NAJIll/LOCATIONI
Colonial alan Apartaant.
4900 Lancar Str..t
Lower Paxton Town. hip
Dauphin COllAty. PA
TAX ID 110. I
35-054.001
ClllANTOR.
Samual Zall . Robart Luria
all.AN'l'lla I
IIGl1C Ioterprh..
COIIS:alIlllATIO.,
~6.025,OOO
...,
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YJWl BlJILT I
1976 ,CORDITIO..
Good
1-
,
BtlILDING AIl&A.
194,279 Sq.rt. LARD ARIA.
14.7300 Acr..
.""
IIlJIIBIR or tlHITS I
174 IlDlTABLB AIl&A.
153,564 Sq.rt
COIllmll'1'.
lll1dar agr._t of .al. elated Octob.r 2. 1996.
,L
DISCJU:P'rIO..
Colonial all1A AparbuDt. cOlUli.ta of 174 t1oo-b.cIroom.
garden aDd tOWDbou.. UDit. houaed rithiA 20 t100 cd
thra.-.tory building.. Vldt IIix ia 138 t1oo-b.drooa
UDit. (860 .quar. f..t) aDd 36 t1oo-b.drooa UDita (969
.quar. faat). Tha toVZlho.... wU. t. contain a
w..har/cl%yar hookup. -.uti.. includ. . ~g
pool and lallAc!ry ,facilitia..
\I'~
hI;-f
L,
.J
ADL'lIIS or lIAU
SALK 'llIa/III.rt.. $31.01
(el.B.A.)
1lIlIT 'IlIa. $34.626
SALK JJlICJI/'II.rt;. U9.23
(UlftULII AIl&A)
.-com :all
JIlO,lRft :al I
nLJI :al I
15210
1541S
,U."
.,
,
-
COHPARABLII SALII - APARTllIINT
NAKII/LOCATION.
Lindh.... Court
1101 Lindh.... Court
opper Allen Townehip
cumberland County, PA
-.
TAX ID NO..
42-24-792-006
GRANTOR.
r.T. Realty Company
..,
GRANTIIII.
K.L.P. Bnterpriees
-.
CONSIDBRATION.
$3,SOO,OOO
DATB or SALB.
01-rBB-93
DBV/PAGB.
36C / )/04
YBAR Bt1ILT.
1987
eONDITION.
Good/rair
NtlKBBR or tlNITS. 90
,
....,j
L,
,
,
...1
DBSCRIPTION:
Two-story brick and aiding epartment complex
containing 90 on. and two-bedroom apartment..
ANALYSIS 01' SALB
WIT PRIeB:
$42,222
B.G.I.H: 7,100
N.J;..,M. 10.989
BXPBNSB RATIO. 35,39 \
RBCORD ID: 8881
PROPBRTY ID: 9773
PHOTO ID. 2813
OVBRALL RATB:
9.10 \
I
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I
10
10
'0
'u
'0
COMPARABLI SALI - APARTKIHT
NAXI/LOCATION.
Th. Pio..
301 N, progr... Av.nu.
Su.qu.hanna Town.hip
D.uphin County, PA
,
!."
TAX In NO..
6~-47-60
GRANTOR.
ITL-HP, Inc.
.,
GRANTZI.
New Pin.. A..ociat.., L.P.
CONSIDIRATION.
$5,700,000
DAn or SALII:
14-JAN-94
DIV/PAGS.
~154 / 331
rlL\R Bl7ILT.
1970
CONDITION.
roir
,
,'OJ
b
b
b
D
~
I
I
II
II
'I
LAND ARBA:
1~,4300 Aera.
HtlJIBBR or llHITS:
~36
DISCRIPTION:
Wood tram. two-.tory eoloni.1 building., all with
axt.rior .ntrane... unit. ar. total al.etria. Tot.l
~36 unit., 17l>it mix i.. 1~4 ona-badroOlD/ona-bat:h. 84
two-b.droOlD/ona-bath. 16 two-badroOlD/1.5-bath and 1~
thr..-b.droom unit.. Thara va. minor dafarr.d
maint.nanc. at time ot .a1a.
AHlILYSIS or SALII
llHIT PRICK.
$~4.153
J:.G.Z.II: 4.498
N.I.II. 9.828
BX1'BHSS RATIO. 54,~3 ,
IUlCORl) ID. 8876
tROPBRTr ID. 9768
PROTO ID. ~809
OVJIRALL RAn:
10.18 '"
I _.
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COMPA.IlAIIr.1 SAt.1 - APAATMJlHT
NAQ/LOCATION.
School Roua. Aparta.nta
133 Waat Locuat Str..t
lCachan1cabw:g
CWIb.rland COllDty, PA
TAX ID NO. I
23-567-027
QR.\IITOR.
lut D11
ClRAllTII.
Rav.gno Prop.rt1..
COJlIIDlllAnOJl.
$1,700,000
DATI or BALI.
01-JllN-1I4
1'IAR BlIl:LT.
1892
"oJ
LARD AREA.
1.8600 Acr..
NtlJIBBR or 1lN1TS. 60
,
.~ .f
DI8CRIPTION.
'1'h1. 1& a fomar two-.tory .choo1 buildiDg originaJ.ly
built in 1892 and ranovat.d into apUbleDt. in tb.
1980'.. Th. building baa an int.rior Cow:tyard.
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b
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II
II
ANALYSIS or SALlI:
1lN1r i'RIa.
$28,333
..0.%.)(.
4.130
X.I.II.
9.123
OVIRALL IlATI.
10.18 ..
IlDDlII RATIO.
57.96 ..
RJlCORD m. 11615
i'ROi'IDlTr m. 12488
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..
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TAX %0 NO. I
aRAIlTORI
,
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aRAIlTD .
CONS%DIlRAT%ON.
DATIl or lIA%oIr.
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b
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1m
I
II
I,
I.
I.
II
I.
YlL\R Bl7Ir.1'.
NllIlIIIIR or llNl:1'S.
OBSCR%PT%Olh
AlmLTS%8 01' 8AIdl
llRZ1' tllIell!
0VDAr.r. 1lA'rII:
COMPAJlAlltoB SALB - APARTHBNT
Shan.ndoah Apartment.
105-107 All.n Str..t
lI.chanic.blU"g
Cumb.rland County, PA
18-23-0565-83
Sh....ndoah to,
frank R. fr.1.tak
$2,400,000
2'-OBC-'4
1991
50
Sb....ncloah Aputment. con.tat. of l:1fo ....od fr....
builcl1n9'.. Th. gUden unit. w.r. built in un. Th.
townhou.a unit. wara convartad to aputmant. from a
prav10ull indu.tdal ua.. Th. aputmant. vary wid.ly
in .1:0. a. a ra.ult. 1lD1t f.atura. includ. _.h.r
and cl:r:yar., ..clU"1t:y, .1.ctr1c fore. bot air ...d
central air-concl1t1on1ng ...d balconla.. Th.
con.1d.rat1on on the da.d r.ac!a $2,340,000 which 1.
n.t of huy.r'. brokar f.. of $50,000.
$40,000
..Q.I...
5.455
N.I...
'.508
10.41 '"
BDBR8. RATIO.
32.80 '"
IIBCOIUl m.
l1ao'Dn m.
11621
12U3
IlAIIII/l.OCATIOIf I
...
TA% In NO. a
- QllAIITOR.
<lI\AII'BII.
-
COI!lSmDATXOlfa
.~
: DATI or ~a
'-
,
t1lAR aun.Ta
..,
.,
IIllXBD or tnnT9 a
'-. DISCRItTXOJla
AlGLYSIS or llALII
tlJl:t't 1'IlXC3.
0VIlRALL 1tAft.
...
....
,
-
...
COIlPAIIA8U SALI . UARnaDC'\'
.axton .ark Aparea.nta
560 '001 Dd,".
Low.r paxtOQ Towaahip
DauphiQ Couaty, PA
35-047-031
'axtOQ Aaaooi.t.. LP
MaM IQ"..taaDt R.alty Group
$3,200,000
01-MAY-95
1966
,LAIID AJID.
10.9700 Acr..
140
ri"., thr..-.tory brick with
mu1ti-.actiOD building. COQ~.'n'nt
apu_t wdt.. -.nth. iDc1u.se
cadar panel.
a tot.l oC 140
a ..u.w.g pool.
$22,857
...Q.X.IIs
3.151
..%.111
,'.
1.1"
11.25 ...
IIX1'D.I uno a
Sf.sa ...
IIIIClOIIIl XD a
rROrJlll'%r XDa
rBOTO XD.
1U14
12175
3U9
COMPARAB~B BALB - APARTMENT
H.um/~OCATIOH,
Society Hill Apertaent.
2'00 ~i.burn Roed
Lower Allen Town.hip
CUmberhnd County, 'A
TAX ID HO.,
13-10-258-005
GRANTOR.
N.L.A. 422, Inc.
GRANTBB,
National Propert1.., Inc.
CONSIDBRATION,
$4,000,000
DATB or SALB,
01-JAN-'3
DBV/.AGBI
36B / 1196
YBAR Bt1I~T.
1988
CONDITION.
Good
Bt1ILDIHG ARBA.
129.438 Sq,rt.
HDMBBR or l1NITS.
108
DBSCRIPTION.
Three-.tory gerden epertaent complex with
108 unit.. One-bedroom unit. contein
feet; two-bedroom unit. contein two bath.
squars feet, l1Dits are sll-electric,
. total of
871 squere
and 1.113
'...,.
ANALYSIS or SALB
IJ
10
10
IU
II
II
II
SALB PRICB/Sq.rt.. $30,90
(G.B.A.)
l1NIT PRIeB. $37.037
B.G.I.H. 5.490
N.I.H. 8.850
BXPBNSB RATIO. 37.96 "
RBCORD ID. 8880
PROPBRTY ID. 9772
PHOTO ID. 2812
OVBRALL RATB. 11.30 "
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..r'" 'c .' ,'- ~ ..~.'~ ", h.... "f.P" . J', t.,; .' " ,l<'-~.fi!'.~~~.: r......:-" < ~~r':4...f;,''':~~. ~ t '-',
'. ommonwea.1 -q: ennsYJYamar. ".:ilii'.'i ~r:.,,"'.' 1J., .r U ~', r' '11" '....' ,.,.',
. .' " ". .;' ,,' to.;..~, '. .' I "Ii.. .,i" 'I)", ".' '",' I' .
, , Depa.rtrpel:lt pf.State'~: ~';.J"~"\'~:'~'~"_ t f '(:,,\~~'l~\~'~:'"~:' ~ ':,'J
Bureau (If PlOfessi9ll"i"nd Occupalilinat Afiai~ ;<.;," ;::;' ;'; ':"'".::;:: /,',:,', .
P,O, BOX? ~:JL.n'is\llitgd'A,!?i05-2cl49"i U),;i.',';i:-' <,,'.., ;'\( (;) ;'
,O\~~""" ~C.".\. l,:::'\)H :~<'\...I '''',' ';', ,;'~'; ;.'1' :
~.;) ~CI;"~silicali(lri',", ._:.,~. \:.."'....'" u.~; .", ,,;' '.',: ,
~VJ (';,;} ,~..... 1~..\\ ~~""~"j>~~:'<:~:,:~""< :/~'\'" :
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.Date . ,',;,. . IssDell
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9'~1:,>,_,__~1!:~?:0997
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JUN 30 1999
Certificate Number
Expires
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GA-000067-L
Issued To:
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MARK ROBERT SHONBERG
4701 BAPTIST ROAD
SUITE 304
PlTISBURGH PA 15227
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IlIucd To:
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.158 1{IOHJ.{At'~M~ .
YOR&'. '" PA.I?403'
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I'ARTIAL CLIENT LIST
11II
I
Corpouto
..,
ALCOA
Allo~hony Gon<ralllo'p'lal
Amollean Capital Rosou"e
Boll Atlanllc
C.rey, Brumbaugh, Starman, Ph,lhp' & Assoc,
Chrysler Corporation
Consolidated Coal Company
Cro"galos, Inc,
Dellwood Corporal ion
Elias Brolhers
E.xon Corpor:llion
Greyhound
J, J, Gumberg Company
Gustine Company
H, J, Heinz Company
Heller Financial
Hoss's Sleak & Sea House
King's Counlry Shoppes
Legg Mason Real Estate Services
May Company
Marriolt Corporalion
McDonald's Corporation
Mobil Oil Corporation
National Development Corporation
P:-;S Realty Associates
Regional Industrial Development Corp,
Sun Oil Company
U,S,X,
Wendy's of Greater Pittsburgh, Inc,
Weslinghouse Corporation
Zamias Services, Inc.
.,
, 1
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LiflLComp.:J nipl;/Pllnclon..E:unds
Aid Association of Lutherans
Allstate Insurance Company
Amresco
Americ:m Express
Central Park Capital
Connecticut Mutual Insurance Company
Equitable of Iowa
Manulife Financial
Metlife Capital Financial Corporation
Mutual of Omaha
Patrician Company
Pennsylvania Slale Employee Retirement Systems
Shenandoah Life
Slate Farm
Danlu
Dank of America
B.nk of Sew York
B.nk One
Bank United of Texas
Chemic.1 Bank
CoreSI.tes
Dollar S.vings Bank
Fidelily Savings & Loan
First Home S.vings & Loan
First Maryl.nd Mortgage Corp,
First National Bank & TlU!t of Washington
First South Savings & Loan
First Westem Bank, N,A,
Johnstown Savings Bank
Mellon Bank, N,A,
Meridian Bank
National City Bank of Pennsylvania
Northside Deposit Bank
PNC B.nk, N,A.
PNC Financial Corporation
Reeves Bank
S&TBank
Sunbelt Savings
Tluee Rivers Bank
Washington Federal Savings & Loan Assoc,
GQy'ernmp.nt
BaldwinlWhiteball School District
Department ofH,U,D,
Federal Aviation Administration
Federal Home Loan Bank Board of Atlanta
Municipality of Bethel Park
Pennsylvania Department of Transportation
Pittsburgh Parking Authority
Resolution Trust Corperation
United States Department of the Interior
United States Postal Service
Urban Redevelopment Authority of Pittsburgb
Barone, Murtha, Shonberg & Associates, Ine,
I
.....
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,
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'j;'
IN TIlE COURT OF COMr-.ION I'Lb\S OF
CUMBERLAND COUNTY, PENNSYLVANIA
No 'IX.h,11 ') ('I \'",
IN RE. BELLE TERRE,
Appdlan! ,
CERTlFICAIE (IF SER VICE
. against.
CUMBERLAND COUNTY BOARD OF
ASSESSMENT APPEALS,
)Y
A cllees
'4<,
The undersigned hereby certifies that a true and correct copy or the Appellant's Appraisal
Report in the entitled action, !lcJlc Terre v. rJI!1Jbcdand.('llllnt)' Board or I'SSess!11gl]tj'11I'~nls,
No.98-6419 CIVIL, has been served upon the l(lllowing by way or certilied mail. mailed on February
8, 1999:
Richard Snelbakcr, Esq.
Solicitor, Mechanicsburg Area School District
44 West Main Street
Mechanicsburg, PA 17055
Stephen D. Tiley, Esq
Cumberland County Board or Assessment Appeals Solicitor
Assl Cumberland County Solicitor
5 South Hanovcr Street
Carlisle, PA 17013
William E. Miller, Esq.
Miller & May
Solicitor, Upper Allen Tow:1"hip
600 North 12th Street
Lemoyne, PA 17043
Dated: February 8, 1999
-----'
-j , VS
(' "J-'
By . l::>f 2 _" .
DAVID J. KAI'LA, , Esq.
Counsell()r Appellants
BELLE TERRE
655 Third Avenue, 2211(1 Floor
New York, New York 10017
(212) 681-6500
I'a. Supreme Court ID No. 69313
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AI'I'IUIS,\1. OF REAL ESTATE
Oellc Tcrre Aparlrnenls
G~neva Drivc
Upper Allen Township
Cumberland County, Pennsylvania
PREPARED FOR
Octagon Associates
613 A Geneva Drive
Mechanicsburg, Pennsylvania 17055
May 4, 1998
98-6523
..,
~
INTRODUCTION
...,
I. Execulive.Summary
Property Identification:
Belle Terre Apartments
Geneva Drive
Upper Alleo Township
Cumberland County, Pennsylvaoia
...,
Owner of Record:
Belle Terre
....,
i
_J
Property Rights Appraised:
Fee Simple
Land Area:
350,222 square feet, 8,04 acrcs
Zoning:
UR, Urban Residential
Improvement:
Belle Terre Apartments cootains 88 garden apartments housed
within four three-story buildings, Construction quality and
condition are average,
o
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I
I
I
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Flood Zone:
Zone C,
Highest & Best Use - Vacant:
Highest & Best Use - Improved:
Multi-Family Development
Existing Use
Yalu.e.Indlcatlons
Cost Approach:
Not Applicable
Income Approach:
$2,590,000
$2,390,000
$2,500,000
Sales Comparison Approach:
Final Value Estimate:
Effective Date of Value:
May 4, 1998
Final Inspection Date:
May 4, 1998
Barone, Murtha, Shonberg & Associates, Ine,
INTRODUCTION
VI. MarkeLYalue Defined'
The most pro~able price which a property should bring in the competitive and open market under all
conditions requisite to a fair sale, the buyer and selicI', each acting prudcntly, 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 oftitlc from seller to buyer under conditions whereby:
u
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~
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I
I
I
I
I
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I
I
I
a, Buyer and seller are typically motivated,
b, Both parties are well informed or well advised and each acting in what they consider their own best
interest.
c, A reasonable time is allowcd for exposure in the open market,
d, Payment is made in terms of cash in U, S, dollars or in terms of financial arrangements comparable
lhereto; and
e, The price represents a normal consideration for the property sold unaffected by special or creative
financing or sales concessions granted by anyone associated with the sale,
VII. Trends and Matketing..l!erlod
The primary factors which effect apartment values are occupancy and rental rates, In terms of occupancy,
the greater Harrisburg region has maintained its strength, due in part to the strong employment base which
has resulted in the lowest unemployment rate in the state, Managers at the properties most competitive
reported current Occupancy rates approaching 100%,
- With regard to rental rates, increases have typically been in the vicinity of 2% to 4% per annum for the last
several years, although we do note that some properties experimented with significantly greater (as much
as 7%) increases in 1996 and 1997, As these increases succeeded on the whole, we anticipate that other
facilities will follow this lrend, The impact of this will be that new construction will again become feasible
in the near term,
At present, the demand for modem apartment units in the area is good, OCcupancy rates remain high and rents
are moderately increasing, We anticipate no significant deviation from these trends in the near future,
'Title XI, Federal Financiallnstilulions Refonn, Recovery and Enforcement ACI of 1989 (FIRREA), August 23, 1990, Section 564,4,
Appraisal Standards.
3
Bnronc, MUrlhn, Shonbcrg & AssOCiatcs, Inc,
--,.
INTRODUCTION
~
i
i
~,l
j
With regard to marketing period, we note that apartmcots are presently the investmcnt property of choice,
The greatcst demand is for complexcs with greatcr than 150 units and less than 10-ycars old, yet this product
is becoming increasingly scarce, As a result, some largcr invcstors have begun to consider older apartment
propcrties as well, This notwithstanding, thc most likely purchaser for the subject property is a regional
investment group,
-
J
Given the regional nature of a potential markcting effort, the desirability of the property type, the strength
of the local market and the availability of financing, we estimate a marketing period of six to nine months,
with an additional three to six months for due diligence, financial arrangements and closing,
..1
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4
Barone, Murtha, Shonberg & Associates, Inc,
I
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INTRODUCTION
VIII. Gencral Lhnitln~Conditions
This appraisal report has been made subjcctto the following generallimitiog conditions:
. The opinion of value expressed in the lettcr oftraosmittal is the result of aod subject to the data and
conditions described in detail in the accompanyiog report,
. No fractional part of this appraisal is to bc used in coojunction with another appraisal. Such use
renders it invalid,
. This rcport, or a copy thereof, may be transmitted to a third person or legal entity only in its entirety.
. Disclosure of the contents of this report is govemed by the By-Laws and Regulations of The
APpraisallnstilUle, Neither all nor any part of the contents of this report (especially any conclusions
as to value, the identity of the appraisers or the firm with which they are connected) shall be
disseminated to the public through advertising, public relations, news, sales or other media without
the prior written consent and approval of the appraisers,
. Unless otherwise stated in this report, the existence of hazardous material, which mayor 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, The appraiser, however, is not qualified to
detect such substances, The presence of substances such as asbestos, urea-formaldehyde foam
insulation, 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, No responsibility is assumed for any such condition, or for any
expertise or engineering knowledge required to discover them, The client is urged to retain an
expert in this field, if desired,
.
The Amcricans with Disabilities Act (" ADA") became effective January 26, 1992, I (we) have not
made a specific compliance survey and analysis of this properlY to determine whether or not it is in
conformity with the various detailed requirements of the ADA, It is possible that a compliance
survey of the propcrty, together with a detailed analysis of the requirements of the ADA, could
revcalthatthe property is not in compliance with one or more of the requirements of the act, If so,
this fact could have a negative effect upon the value of the property, Since 1 (we) have no direct
evidence relating to this issue, 1 (we) did not consider possible noncompliance with the requirements
of ADA in estimating the value of the property,
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INTRODUCTJON
.,.
IX, General Assumptions
This appraisal report has been made subJect to the following general assumptions:
. No rcsponsibility has been assumcd for the legal descriplion or legal matters, Title to the property
was assumed to be good and marketable unless othcrwise staled,
. The property has been appraised free and clear of aoy and alllicns or cncumbranees unless other
stated,
. Responsible ownership and competent property management are assumed,
. Information fumished by others is believed to be reliable; however, no warranty is given for its
accuracy,
. All engineering data were assumed to bc correct. Plot plans and exhibits in this report have been
jncluded only to assist the readcr in visualizing the property,
.
It was assumed that therc are not hidden or unapparent conditions of the property, subsoil or
structures which would render it more or less valuable, No responsibility is assumed for such
conditions or for engineering which maybe required to discover them,
lJ
. It was assumed that there is full compliance with all applicable federal, slate and local environmental
regulations and laws unless a noncompliance is stated, defined and considered in the appraisal
report,
. It was assumed that all licenses, certificates of occupancy, consents or other legislative or
administrative authority required by any local, state or national government or private utility or
organization have becn or can be obtained or renewed for any use on which the value estimate
contained in this report is based,
I
.
It was assumed that the utilization of the land and/or improvements is within the boundaries or
property lines of the property described and that there is no encroachment or trespass unless noted
in this report,
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Baronc, Murtha, Shonbcrg & Associatcs, Ine,
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Regional Map
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!. "'"" ,.,. ...... . ..\ Rosegarden f...... / '~' 'I
V ~',.,..,_~" Hollon Bo.llng Spnng~ Mt Pleasant ":". ( , \ :~.
Iq14r~" . >'41.. )t-.~e.w.t~l::l~r ,j\1,~~y. '~6~1 ~Falmoul~,L
r ~ a.'ntlz Mt Holly Springs \ . p'.neIOW. ~ \'.''''(.l'I,eosonl'~OV. I
: ~ Homewood D.llsburg \ /"-Z..... York...H~..
! i ,\upper Mill +J lvertown Uno , 17'" ,Erney "51"i 'if
I ~ J ) t .SIUh::(j:llll~J.1l11t7-~NlIl1'~r242 .'i. I ~--.
I .~ / I" 112 Conewag
! (t f Ftanklintown /1"'11'1'1' C,l'(' r , "'i i ~~
l~J~)"nd ""~' ,,15, \ '.\ MI Top // .0il1;,,,1 PincholS'''. Purk M~~\\heSI~;f;"MI vJ~L
/' ehe Inul HIli I '." Wellsville i1id iVi.wl, "., 51
,/ Goodyear Myerst wn Latlm~re B.g Dam .... 04r'.......'." "'... /' ,...... I ~, .
1'-' Il41 + Uriah . ...... ,MIRoy.1 . I (I
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Peach Glen Deardorffs MIII\ Benedlcls \ Wilt' (II II . 'EmigSVille'-.
· ' . . ~ Kralllown \ / oundlown _ ~ I
1 jldav&lle "Bermudian Dellers MIll / .,~ .
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! + I I \ Welgelstown'" ~ . nr~l t-'
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s. < %" Fordvitle Taxvllle' We~t Vqj~fp;lIn .n~ 124
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! ~ .........................,'Heldfersburg // .,.,....,'.....\.. ",.,......,.,.l 234 (~ ".................,,"'........., iJ4 ("...... ((/ \ . t.~ Violet
. jN/' ,15, \Hamp'\On. i,i'....,'~..",,_,..N Thomasl1\'ile t, wYn\l~am.. I
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I, Introduction
Real estate values arc impacted by local and regional economics, The lollowing discussion presents the
germane featurcs under the headings of Geographic Location, Infrastructure, Physical and Land Use
Characteristics, Population Trends, Income Levels, and Employment and Governmental InOucnces,
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II. Gcographic Location
The subject property is located in Cumberland County, Pennsylvania, Cumberland Couoty is part of the
Hanisburg MSA, which is comprised of Cumberland. Dauphin, Lebanon, and Peny counlies, This region
is situated between Philadelphia (0 thc east and PIttsburgh to the west, Distanccs to the nearest metropolitan
areas are as follows:
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Di~lan('t'510 ~Iajor ~lctropolilan Arm
\lrlro,\rtll
D1,ranu 10 Sub eel
Uallimore. MD
7Smiles
Philadelphia. PA
101 miles
Washington. D. C.
106 miles
Nt:w York. NY
169 miles
PillsbUfl%h. PA
202 miles
As a result of the centra] location and well developed transportation infrastructure, Hanisburg is a major
distribution centcr for the northeast.
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III. Infrastmcture
Infrastructure considerations primarily relate to transportation and utility systems, First addressing
transportation. roadways are perhaps thc most important aspect. Primary routes within the area are
identified as follows:
Major Roadways
:"f1rth.SOlllh
F.UI.W('51
InterstateSJ
Pennsylvania Turnpike
U.S. Route 322
InterstateS!
U.S. ROUle IS
U.S. Route II
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AREA DATA
Other aspects of the transportation system, such as air, rail, and, to a lesser degree bus altematives, are also
important.
TnrupUrbltJu" Pnf\ldrn
Tnm In ModI'
Pnl"ldl'r
Airport'l
(.'llrli~lc=. Capital City, and J Illrri~hurg
Rairwa)'!
llu.'IlinOl
,\ntrak
('Tf,.'\homd
The area is served by major rail lines and numerous motor carriers. The extensive freight yards at Enola have
a current daily traffic of nearly 4,000 cars and is reportedly the second largest freight yard in the nation, The
transportation infrastructure is well developed and significantly enhances the regioo's desirability,
W~ regard to utility systems, these too are well developed with all public utilities available to most parts of
the county, Further, there are no significant capacity issues at time. Overall, the transportation and utility
infiastructure is adequate to support additional development.
IV. Land Use Distriblltion alld Physical Characteristics
Proportionate land uses within the county are as follows:
Proportionate Land Us_e-=-C.umberland County
,39.2% I
o lndu&trial
. RII&identia'
. Commercial
. Undeveloped
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,\/{EA DATA
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The regoll""lll'IT"m IS predominanlly lelel to gemly rullmg, allhough small portions of the area do have
steep lerrall1, (hwall, topography has nut presenled S1gnllieant diflicullies to developmeot.
V, POPll\:llion Trends
The following lahle presents comparative populallon ligures lrom the 1980 and 1990 Census for thc county,
state and natl<H1, as well as the most recent estimates available,
19HO
1990
ChUlr
1995 [,'Im"t'
County
17~'.6:!S
195.257
8.70%
205,959
Slale:
11.~66. 728
11.881,""3
0.13%
12,011,842
268,765,003
Nation
226.5~".S05
:!-IH.7IR.21))
9.7'}%
Cumberland County exhibited significant growth through the 1980's and, based on the 1995 estimate,
continues to post strong gains,
VI. Jncorne Levels
Comparati\'e income levels for the county and slatc are presented as follows:
(ncnrne Call.~tJry Cumberland Counly Pennsylvania County:Stale Complrbon
<$1'),')1)1) 23.6% 33.95% 43.86%
S:!:O.OCO.S::'),')()') 17.9% 17.50% 2.23%
SJO,OOO-SJ'J,')lJI} 17,3% 15.20% 12.14%
$-10,000.$-11),'11)9 14.3% 11,010% 20.28%
S50.000-57 -I. "')1) 17.8% 1-1.10% 20.79%
>575,000 1),2% 7,90% 14,13%
Median flulIwhllld Income $34,49) 529,069 24..U-/t
The data presented above suggcsts a county aftluence level above thai of the slale as a whole,
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In addition to the thousands of jobs which arc related directly to the state government, the area also benefits
as a center Ii,r state eonvenhons, exhibihons, and headquarters for numerous state associations and private
businesses with govemment affiliations. According to the Pennsylvania Department of Labor and Industry,
approximately 67.700 residents of the Harrisburg-Carlisle-Lebanon MSA are employed by some level of
government; Pennsylvania state employees make-up the largest group with 32,100.
With three major military installations in the area the federal government also provides thousands of jobs
to residents of Central Pennsylvania. The installations are Carlisle Barracks in Harnden Township, Ships
Pans Control Center in Harnden Township and Defense Distribution Depot Susquehanna Pennsylvania
(DDSP) near New Cumberland. A breakdown of the military installations and their civilian work force is
as follows:
-'1
Defense Distribution Depot Susquehanna, PA:
Ship Parts Control Center:
Carlisle Barracks:
3,600
6,800
601 Full Time
359 Part Time
While local. slate and federal employees play an important role in the area's economy, combined they make
up less than 20'Y. of the area work force. A number of large corporations also have a presence in the area.
Principal employers in the region are listed as follows:
Employer
Employer
Pennsyh,'ania State Government
AMP Corporation
United Slo.tcs Government
Giant Food Stores
Hershey Foods Corporation
Harrisburg Polyclinic
Pennsylvania Bluc Shield
Harrisburg Hospital
Cnm. of PA. Pcnn Slate Univcrsit
Hcreo International
Overall, the strong employment profile is a significant benefit to the regional economy.
VII, Neighborhood
The subject property is located within a strong residential neighborhood in Upper Allen Township, just
southeast of :-'lcchanicsburg and west of Shiremanstown. The transportation networks serving the
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AREA DATA
neighborhood arc extensive, including the Pennsylvania Turnpike (I mile south), U.S. Route 15 IV, mile
south), Wesley Drive (V, mile cast), and Simpson Ferry and Trindle Roads (I mile nonh).
Population within the municipality has been growing at a rate greater than the county average, increasing
from 10,533 to 13,347 during the last census period, an increase 01'26.72%.
Neighboring lISCS consist ofa sib'llificant number of condominium properties including Sunguild II, Brighton
Place, and Vlllage of Liberty Square. Commercial uses include a Healthsouth facility along Lancaster
Boulevard and an office building Wilson Road. Extensive retail and commercial areas are within close
driving disl:ll1ce. These facilities offer significant support services and employment opportunities, thus
enhancing the dcsirability of the area. The neighborhood enhances the desirability of the subject properly.
VIII. Summary_amLConclusions
The subject neighborhood is characterized by a homogenous blend of residential, office and commercial land
uses. Adjoining and nearby properties include single farnily areas, with retail and comrnercial areas located
in close proximity. These uses are complimentary to the subject use. The transportation system i~ well-
integrated with state and interstate highways, passenger and freight rail service. air transportation, and public
transportation. The population has been increasing at a significantly faster rate than the state as a whole.
Home valucs are predominantly above $100,000 and have been gaining value in terms of real dollars. The
population has grown and income has kept pace with inflation. Income levels are middle to upper middle
with over 40% of the population having incomes over $40,000 and nearly 25% of the population with
incomes over 550,000. Employment has consistently been higher than the state. Overall trends indicatc a
growing population and increasing real estate values strongly influenced by a diverse economic base.
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I, Sill' Dcscrlption
Physical Ch,"actenstics
Accordin~ '0 COllnty records, the subJect parcel contains a gross land arca of 350,222 square feel, or 8.040
acres, 01'\\111",1 ncar/y all is usable. The propcny is irrcgular in shape and the topography is level.
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Access and ViSIbility
The Belle Terre sitc has approximatcly 659 linear fect offronlage along Geneva Drive, a secondary roadway.
The properly has multiple entrances, none of which are sib'llalized. Visibility is adequate from residential
routes.
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Utilities
Public utilll,. serviccs availablc to thc sitc are as follows:
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l'ubllcUtillly Provider Connected to SlIe
SaluralOas Columbia Gu No
E1eclricity Pennsylvania Power & Lighl Yes
Sewerage Municipal Yes
Water Pennsylvania American Water Yes
SitlUmprovcmcnts
Site improvements include asphalt driveways and parking lots, lined to accommodate two vehicles per
. apartment. Other improvements include concrete walks, curbing, and good quality mature trees and
landscaping.
EloodHazard
According to lhc Uppcr Allen Township Flood Insurance Rate Map, Community Panel No. 420372-0005C
(dated Febrllary 15, 1980), the subject is within a Zone C, an area of minimal flood hazard.
Zoning
The sllbjecl Sl[C is situated within (UR) Urban Residential district. Multiple family dwellings are a permitted
use within 'his district.
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En VlrOnmclllal/S ubsurface_ Conditions
An evalualllll1 of thc subsurfacc conditions is bcyond the scope of this report. Similarly, we make no
determinatIOn as to thc absence or presence of any environmental hazard. It should be noted that the value
conclusions reported herein assume that no adverse conditions exist.
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Easements/Encroachments
The site is sllbjectto street and utility easements of record. Other than those specifically listed, we are not
aware of any eascments, restrictions, encumbrances, leases, reservations, covenants, contracts, special
assessments, ordinances or partial interests that would adversely affect value. We did not complete a title
search or survey of the propeny and assume no responsibility for matters pertaining to title or ownership.
We recommcnd that the client have such studies completed.
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n. ImproyementDe.scriptioD
The subject improvements were built in the early 1980's. Belle Terre consists of four, three-story, wood
frame apartmcnt buildings containing 88 units; each building containing 22 units. According to a
measurement of cach unit type, the buildings contain a rentable area of 51,264 square feet. The specifie unit
types are detailed as follows:
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UniIT.v(le Number or UnIt! Unll Size Rentable Are. (SF)
.j One Bedroom-One D01th 40 450 I 8.000
Two Bedroom~One Bath 48 693 33.264
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, Tot.UAnra e 88 1.143 51.264
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The following tablc prescnts the unit mix within each individual building:
Dulldln): ~Ilmbtr tOR lOR Toral Ualtl
607A S 6 II
6071l S 6 II
"'1 6091\ S 6 II
."J 6099 s 6 II
611^ S 6 II
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6IJ/\ S 6 II
i 61.30 S 6 II
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The individual unit layouts are characterized as follows:
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OnUie.drool1LUnit Central hallways provide access to the units, with four entrance doors at each
landing. Thc cntrance to the one bedroom units is to the living room/dining room combination. The living
room floor arca is typically 16 feet by 12 feet. The kitchens are equipped with a dishwasher, oven/range,
garbage disposal, and refrigerator.
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.. LmJ3.edroom.Units Central hallways provide access to the two bedroom units. The entrance to the units
is via the living room/dining room combination. The layout is similar to the one bedroom units with the
addition of a second bedroorn. The master bedroorn has a walk-in closet and shared access to the single bath
which also can be accessed from the hall. The kitchens are similarly equipped with a dishwasher,
oven/range, garbage disposal, and refrigerator.
Kitchens Kitchens have wood/Forrnica bases and wall cabinets and a Formica counter with a stainless
steel sink. Appliances include a refrigerator, electric range/oven, a range hood/exhaust fan, a dishwasher,
and a garbage disposal. The complement of appliances is the same in every unit.
Baths A single bowl vanity, a fiberglass tub unit and a porcelain commode can be found in each bath. In
the one bcdroom unit, the bathroom is accessed from the bedroom only; in the two bedroom unit, the
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bathroom has one entrance each from the bedroom and hallway.
On May 4,1998. one of each unit type was inspected. There was one unoccupied Ipre-Ieased) unit at the
time. Based on a personal inspection of the subject property and rcview of all available architectural data,
general construction features are noted as follows:
"
Foundation:
The structure has a concrete block foundation.
Exterior Walls:
The exteriors of the buildings are stucco.
Floor Structure:
The floor is a concrete slab.
Roof System:
The roofs are /lat rubber Carlisle roofs which have been replaced within the past
five years (according to the manager).
Windows:
The units have alurninum frame, multi-pane, horizontal sliding windows.
HVAC:
Each unit is individually heated with electric wall-mounted heaters.
Interior Finish:
Flooring is a combination of wall-to-wall carpeting, cerarnic tile or vinyl floor
covering. Walls and ceilings are painted drywall. Light fixtures include primarily
incandescent lights with and some /lorescentlighting.
The design and layout of the improvements are functionally adequate, th~ construction quality is fair to
average and the condition is average. No factors were noted that would significantly detract from the
marketability of this property.
III, Tax and A'sessmentInformation
EarcellD.
District 42, map 09-0545, parcel 06
QwneLoiR.eJ:ord
Belle Terre
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Barone. Murtha, Shonberg & Associates, Inc.
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I'ROl'ERn' DATA
Currcnt Asscssment
".nd Alltllmen'
lIulldlnsc ,\"rumrnl
Tol.1 AIt..llmfnl
'''rhl V,'u,@6.IW.CLR
..,
S60.l00
S2JO,MO
S21)(),1)~()
$.1.278..7.
..
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It should be noted that the existing asscssment suggcsts a market value well above the conclusion of this
report. Prudent management dictatcs that an assessmcnt reduction be pursued.
ReaLEslatc..TlIlLCalculation
MIII'le Ral, ('urnnl A"tllmfnt
.., TIIlnl Authority land Dulldlnl Lind Oulldlo. R,.I Eslale Tun
.,..4 Upper Allen Twp. O.OOllOO O.OOllOO S6O.l00 SllOMO SI.Ot8.))
School District 0.1l8000 0.138000 S6O.l00 SllO,blO $.I0.tlt.tO
nJ Cumberland County 0.017500 0.017500 S6O~00 SllO.650 S8.00 1.1 3
Tolal 0.169000 0.169000 S60.300 S%30.650 549,170.55
The assessment for Belle Terre Apartments is $290,950 with an implied market value 01'$4,278,676, a value
which is well above the value conclusion of this report. Further, the existing assessrnent represents 11.64%
of market value, which is substantially at odds with other facilities in the area. This data suggests that the
assessment is inconsistent with county policy.
j
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Cumberland Counl}c.Rcassessment
_ It was published on May 5, 1998 in the Harrisburg Patriot News that Cumberland County has hired a mass
appraisal firm to reassess its 85,000 plus parcels. The last countywide reassessment was in 1974; the
reappraisal process is expected to take three years with the first tax bills based on the new numbers to be
issued in 2001. All field work is expected to be completed by the end of 1999; in early 2000, property
owners will begin to receive notices, and the balance of that year is set aside to deal with informal reviews
and formal appeals of the new assessments.
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IlIGIIEST AND BEST USE
I. InlroduclloD
The AppraISal Institute defincs Highest and Best Use as follows:
The reasonably probable and legal use of vaunt land or an Improved property, wbleb Is
physic:llly possible, appropriately supported, financially feasible, and tbat results In tbe blgbest
value.
Implied in these definitions is that the determination of highest and best use takes into account the
contribution of a specific use to the community and community development goals as well as the benefits
of that use to II1dividual property owners. Hence, in certain situations the highest and best use ofland may
be for parks, grcenbclts, prescrvation, conservation, wildlife habitats, and the like.
In estimating llighcst and Best Use, there are four primary stages of analysis:
Legality:
Legality addresses the permitted uses under zoning, title or other land use restrictions.
Adaptability: Adaptability considers appropriate uses from the standpoint of physical constraints and the
inOuence of adjacent and nearby land uses.
Feasibility:
Feasibility tests the economic viability of potential uses.
Productivity: Productivity addrcss the question of which legal, adaptable and feasible use results in the
greatest benefit.
The highest and best use of the land, if vacant and available for use, may be different from the highest and
- best use of thc improved property. To render a sound estimate of highest and best use, the appraiser, in all
cases, must consider the location and physical characteristics of the subject site, condition, and probable
econornic life of any cxisting improvements, character of the neighborhood, and zoning, in light of the basic
economic principles of real property valuation.
II. Legality_oLU.se
The subject site is within a UR Urban Residential district; as excerpted from the municipal zoning code, the
prirnary pcrmiued uses within this district are as follows:
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Barone. Murtha, Shonberg & Associates, Inc.
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II/GlItST AND BtST USE
^lllhllO~,..l .1, ',jcll,,'l/ d\~('IIInB"
Prim.", Ptrmlllrd .nd (:ondlllon., II".
Church
ApaNlTlent (mn. dc-olny 12 d.u./acrc)
Crop l~rl1'll1:':
('lImmunuy facility
CuIIUrarr.1Cilil)'
03)' nUh\'I~ 1.1":111')'lhn~
GolfCtllll~C
firest.1lion
Hospital
Grccnhouse
Privillert'Ul';JII,mal fOlcifity
PriV'IC'club
Public rl'l'[l'afl,mallilcllily
Public: building
RCjl.1urant
School
Townhull'r 11;: d IL'acrc:l
Single family dwelling
Si os
III, Ad:I(llllbility.oLUse
The site characlcristics do not present unusual challenges to development and the surrounding land uses are
complementary to residential purposcs. We do note, however, that the size of the site (8.04 acres) suggests
multiple r.lmil)' dwellings. This conclusion results from the observation that most of the legal uses would
result in under-lItilization of the site, while thc at least one use, golf course could not be undertaken due to
inadequate land. We conclude that the subject site is most adaptable to the development of multiple family
residences. either gardcn or townhouse units.
IV, FClIsibilily.oLllie
Feasibility is a lunction of demand, which in turn may be measured through achievable sale, rent and occupancy
levels. Ultimately. the question is whether or not demand is adequate to assure sale or rent levels that warrant
anticipatcd construction costs. A review of the market suggests that rent levels are just now reaching the point
where new development is again feasible for apartment developmen~ however we also note that there have been
a number of sllecessful townhouse developments in the area. Either of these uses would be feasible.
v, Highest.llnd.B.esWse.<MaximaI.,&odUCliyjM:.AsYacant
Reviewing the discussion presented above, We conclude that multiple family residential development is
consistent \11th the highest and best Use of the subject site. This would most likely lake the form oftownhouscs
or condominltlJl1s that would be offered for sale.
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Barone. MurtlHl, Shonberg & Assoeiales, Inc.
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IIIGIIEST AND BEST USE
VI, lIil:llest aod Bcst Usc (Maxlmal Productivity): As Improved
The subjcct pllll'erty has been operatcd as a rental community for rnughly 15 years. According to the manager,
moderatc rclll II1crcases havc been achievcd and occupancy, on the day of inspection, was 100% with a lengthy
waiting Iisl. II IS our undcrstanding that the subject propeny has operated at profitable levels for an extended
period oftil11e. Knowing of no altcrnative use that would warrant demolition or substantial modification of the
existing Illlprovcments, we conclude that continued operation as a rental apanment facility is consistent with
the highest and bcst use.
,
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Barone. Murtha, Shonberg & Associates, Inc.
APPRAISAL METHODOLOGY
J, IntroductIon
There arc three classical approaches 10 real cstate valuation, often referrcd 10 as Income Capitalization, Direct
Sales Compa'NlIl and COSI Approaches. Property characteristics, as well as data availability, generally dictates
which approaches arc most germane to a particular valuation assignment; income producing propertics lend
themselvcs IllllSl rcadily to the Income Capitalization Appro.1ch, while for owner occupied properties the Direct
Sales Companson Approach is often a betler indicalor. The Cost Approach may be used effectively in either
situation, however as the various aspects of accrued depreciation become more pronounced, the value indication
offered by this technique becomes more subjective. Each ofthesc valuation methods depends on the availability
of an adequate amount of market data.
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In the Cost Approach the depreciated value of the improvements is added to the estimated land value.
Considering Ihc subjectivity involved with estimating depreciation, Ihis approach is most useful when applied
to newly CIIIlSlructcd or newly renovated properties.
In the Incol11c Approach the potential revcnues, vacancy (and credit loss) and operating expenses are all
estimated in order to atrive at a net income projection. This income projection is then translated to a value
indication Ihrollgh either direct or yield capitalization methods. This is most appropriate for income producing
properties. however it can also be used for owner-occupied properties based on an OCCupancy cost scenario.
In the Sales Comparison Approach recently sold propenies are examined on the basis of either physical or
financial charactcristics and then compared to the subject property. This can be used effectively for most
property types. so long as there is an adequate amount of data.
JI. MethodolO~lIJlcluslon
Given thc characteristics of the subject property, it is appropriate to develop the Income and Sales Comparison
Approachcs to Value. Based on the age of the property and the manner in which the market views income
producing properties, the Cost Approach, while considered, has not been developed.
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INCOME APPROACJI TO VALUE
Oue.Bedroom Vult
CompultI", 'Ifm I Sub)", I Llndham Court I Olrord ~lInor I Wn'ryP.rk I Dtlbrook Mlaor
Crntral Ch.'Ic1rrlstlcs
Loation CK>O<l Similar Similar SIO'lII:u Similar
Arthitec:ture G.:IftJen Similar Similar Similar Similar
Year BUill 1981 19S7 1973 196719 1969
Condition Ml:nge Superior to Superior to Superior 10 Superior to
Unit Size (SF) 450 600 IS SS2 IS SIS 40 740 30
No.orBNrooms One One One One One
No.ofllalhs One One One One One
StoBBe Xo Similar Simil:lr SimHar Similar
. Equipment
Air Conditioning Yes Similar Similar Similar Similar
Ibnse Ve, Similar Similar Similar Similar
Refiiger:uor Ve, Similar Similar Similar Similar
Di.<hwasher Yes Simil3f Similar Similar Similar
Microwave No Similar Similar Similar Similar
Disposal Ve, Similar Simjlar Similar Similar
WasherlDryer Coin Simil3.r In Unit IS In Unit IS In Unit IS
Window Rod, Similar Similar Similar Similar
Services and Amenities
Hea' Tcn:!.nt Tenant Tenant Tenant Tenant
Electric Tenant Tenant Tenant Tenant Tenant
Water Owner Owner Owner Owner Owner
Sewmge Owner Owner Owner Owner Owner
Pool. etc. None SimilO!r Superior S Superior S Superior S
Rent Per Month NA SS30 (S2S) S4S0 (S4S) SSSO (S70) SS3S ($60)
Adlusled Rent S466 SSOS S40S S480 Sl7S
".
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Barone. Murtha, Shonberg & Associates, Inc.
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INCO~IE Al'PROACII TO VALUE
Two-Bedroom Unit
Camp'rlll"."'nI I Suhl<<1 I.llldhlm(:OUr1 I Odord :\tanor I Wnl~ "ark Orlbrook M.nor
(irnn.1 ('harlC'frlslln
1.<<.llon (iulId Smlll:lr Similar Similar Similar
An:hil<<lUte Oat,leR SlOllrar Similar Similar Similar
YfllUUlfl J9MI 19M? 197) 196m t969
Condillon 1\\'crallC Suptrior 10 Supcr;or 10 Superior 10 Superior 10
(}nil Sue tSJ:, 119,1 1150 )0 78) 15 9)5 50 890 40
No. 01' Uedmun\S rwo T~o Two Two Two
NO.lIrUOIlh.ll One One One J.5 to One
StonlC ('::Igc Similar Similar Similar Similar
Equlpmt'nt
AirCondilioning Ye. Similar Simil3t Similar Simil3t
Rlnjc Ycs Similar Similar Similar Similar
Rcrrigef:uor YC.'J Similar Similar Similar Similar
DishWllShcr Yes Similar Similar Simil3t Similar
Microwave No Similar Similar Similar Similar
0;,,,,,..1 Ye. Simil:u Similar Similar Similar
Wuhcr/Dryer Coin In Unit 15 In Unit 15 In Unil t5 InUnic 15
Window fJlinds Similar Similar Similar Similar
Sen'l(cs Ind Amenities
Heat Tenant Tenam Tenant Tenant Tenant
Electric Tenant Temmt Tenant Tenant Tenant
Waler Owncr Owner Owner Owner Owner
Sewcrage Owner Owner Owner Owner Own<!'
Pool.elc. No (lool Similar Superior 5 Superior 5 Superior 5
Rent Per Month NA S615 (S55) S570 (545) 5640 (S90) S585 ($10)
Adlusled Renl S5~0 SS70 SSlS SSSG SSIS
Within thc General Char:lcteristics category adjustments are required for condition, unit size, and the availability
25
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INCOME APPROACH TO VALUE
indicating monthly income ofS200, and annual income ofS2,400. Management has not historically identified
""1 pet income as a line item, instead ha~ combmed tt with rental income. We proJect stabilized revenues of S2,400
arising from this source.
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Summing the various revenue sources results in a potential gross income calculation as follows:
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Rental Income:
Laundry Income:
Pet Rent:
S520,800
S8,OOO
$2.400
S531,200
Potential Gross Income:
YacanC)'..8.llll..fredl1Loss
The historical occupancy of the subject property has been in the 97% to 99% range. A survey of several local
management companies suggests that this is beller than the vacancy within the market, which is typically in the
4% to 6% range. Recognizing that a higher rental rate schedule is herein proposed which may result in more
typical vacancy \'ales, we find it likely that a potential investor would allow for a vacancy and credit loss factor
01'5%. This equates to an income loss 01'$26,560 and an effective gross income projection of$504,64O.
IV. Expenses
A stabilized expense projection was made after reviewal' the following data.
1.
Actual operating statements for the year 1995, 1996, and 1997. It should be emphasized that the subject
property has ajoint operating statement with Nanroc Townhouses. The expenses presentedfor Belle
Terre reflect a pro-ration based on the number of units.
2.
Expense data as reponed by the Institute of Real Estate Management (lREM) in their 1997 report,
IncomelF.xpens;e..Anal~i.s:..Conventinn::l1 Apa.rtment~.
27
Barone. Murtha. Shonberg & Associates, Inc.
INCOME APPROACH TO VALUE
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3.
Actual e'pcnsc experiences ofthrec similar apartment complexes.
The stabilized e'I"'r,,c eslirmltes arc discussed in the following narrative. Expense categories include
administration/management, operating, rcpairs and maintenance, insurance, and real estate taxes.
-
Administration and ~Ianagcment
.;
.:'1"'"'(, Comp RURt
Comp Mtan
1.R.r.M.
Sub)od 1996
6.73%
S3l9
50.62
SUbJect 1997
S.67%
l4l9
50.79
%EOt
nI.
nla
10.2'/,
.,
Pcr Unil
S716
Sl9l-SSl7
S7Jo
P<rSF
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Administration charges include management fees, salaries of officc personnel paid directly by the owner, office
expenses, advcrtising and Icgal and audit charges. Management fees in the market range from 4% to 6% of
effective gross income. It should be noted that in /996 and 1997, the subject managementfee was 3. 72% and
/.79%. skewing the totals for this expense category. Stabilizing the management fee at5% of effective gross
income, this portion ofthc administrative expense is projected to be $25,232.
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In 1997, other administrativc costs were an additional 6.65% of effective gross income. This included office
expenses, advertislll~, payroll for a manager, professional fees. Stabilized administrative costs, in addition to
the management tee. of 5% is reasonable with a total administrntive expense including rnanagemenlfees of 10010.
This is consistcm wllh the data reported to IREM and results in a total management and administrative expense
01'$50,464 or SO.% per square foot and $573 per unit, which is in line with the comparable expenses presented.
.Qperating
['pense Comp Range Comp Me.n I.R.E.M. SubJod 1996 SubJect 1997
%EGI nI. nI. 10.20% 13.58% 14.56%
PerUnil S334.SS25 5431 S607 l724 5771
! Per SF n/. nla 50.67 lL24 SI.32
Tenants at Belle Tcrrc are responsible for gas and electricity, which includes both heat and power. In the case
of operating expenses. the historical expenses, based on a unit pro-ration with Nanroc Townhouses, do not
accurately represent thc utility usage at the subject property. The individual expenses for 1998 (Year-to-date)
have been given greater crcdence over both the historical amounts and the expense comparables.
28
Barone. Murtha. Shonberg & Associates, Inc.
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INCOME APPROACH TO VALUE
Thc actual annl1i1!i/~d opc"'ting CllstS, year-to-date for 1998 are 575,520. 'Ihis suggests a operations cost for
the coming 12-mllllth pCrlod 01'$76,000, which cquatcs to 5836 per unit, 51.48 per squarc foot and 15.06% of
ctTectivc b'l'OSS II1Coll1e.
Repairs andMaintcmll1cc
f-: \ fn.r Com Rift . ('om M.ln I.R.F.M. Sub f'd 1996 Sub tel 1997
It/IIEOI n/. n/. 1),'0-/.. 8.80% 7.JW.
Per Unit S23H435 Sll9 SS02 5469 S387
PerSF n/. n/. lO56 5081 lO.66
This expcnse catcgory includcs landscaping, snow rcmoval, cleaning, general maintenance and repairs of the
improvements, mechanical contracts, painting, supplies, vehicle expenses and contract cleaning serviccs; it
excludes maintenancc payroll. According to the historical expenses, repair and maintenance has been generally
consistcnt, aver:Jgin[.: $428 pcr unit over the past two years. The average is below thc IREM indication and
above the rate indicated by the expense comparables. Allowing for inflationary factors, the repairs and
maintenance CllSttS projccted to be $39,600, which equates to $450 per unit, SO.77 per square foot and 7.8% of
effectivc gross income.
Insurancc
E.tllcn5C Comn Comp Mtln I.R.E.M. Ranle SubJed \996 SubJ<d t997
%EGI n/. n/. 2.111'A. J,25% 1.71%
Per Unit S39.S68 S53 SI37 St73 S90
PerSF nl. n/. lO.l4 50.30 lO.t6
The expense cOl1lparablcs, all properties within larger portfolios of properties, exhibit a narrow range of
indications for inslIrancc costs which are below both lREM and the subject's historical expenses. We project
a stabilized inslIr:Jllcc cost for the coming year between the 1997 actual and IREM, or $7,690; this cquates to
SO. 15 pcr squarc [(JOt and 1.52% of effective gross income.
R.caLEstate.Taxcs
As discussed in the tax assessment analysis section of the property description, the subject's assessments are very
high. We have assllmed that a prospective purchaser would assume a successful assessment appeal and have
elected to disregard the current assessments. In licu of a tax expense, a tax rate will be factored into the
29
Barone. Murtha. Shonberg & Associates, Inc.
INCOME APPROACH TO Y ALUE
capitalization rale. Ihatli,ctor, which is a function of the millage rate and the common level ratio, is calculated
as follows:
Currelll \Iill,l:.(l' HOlle
Common Lntl Rallo
Tal Load Furor
n III-XUIII
6.110%
O.Ot1492
The impact of tho tax load factor will be discussed in the capitalization section of this report.
Otherl'ayrol1
r.'pl'",e Comp Range Comp Mt,n r.R.E:.M. SubJodl!196 Subject t!197
J %EGI nlil nI. 7.80% 3.40'~ 4.00%
Per Unit S:!72.S469 SJ90 SJ51 5181 S2t2
] Per SF nI. nI. $O.JJ $OJI $0.36
...,
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The Other Payroll category includes maintenance payroll, and taxes, insurance and benefits for all payroll
categories, with the exception of contract labor; contract labor is within the repair and maintenance category.
The other payroll category for the subject property has been low compared to both the comparable properties
and !REM indication. This may be because the property shares statTwith an adjoining property, and is too small
to have extensive stafting rcquirements. Giving greater weight to the low end of the comparable indications, the
Other Payroll category has been stabilized at $300 per unit. This results in an annual expense of $26,400.
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Resmes.for.Replacement
Jhis category rcservcs funds for the replacement of capital items such as roofs, appliances, and asphalt
replacement. Based on thc age of the subject property and discussions with investors of similar properties, we
estimate that an annual allocation equivalent to $250 per unit should be adequate. This equates to $22,000, or
4.3% of effectivc gross income.
Summary
The discussion presented above suggests total operating costs of $222,154, or $2,524 per unit prior to
consideration of real estate taxes; this equates to an expense ratio of 44.0%. The following table presents a
synopsis of the income expense projection.
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INCOME APPROACH TO VALUE
Rcvcnuc and Expcnsc Projcctlon
Renlllllncol1lc: $520,800
Laundry Incol1lc: $8,000
Petlneome: $2,400
Potenlinl Gros, Income: $531,200
Vacancy and (',,'dlll.oss: 5.00% $26.561l
EtTecth'c Grn" Incollle: $504,640
%EGI l'eJ:SE Per Unit Gross
Managemcnl' Adl11l11istralion 10.0% $0.98 $573 $50,464
Operating 15.1% $1.48 $864 $76,000
Repairs & Mall1lcnanee 7.8% $0.77 $450 $39,600
Insurance 1.5% $0.15 $87 $7,690
Real Estate Taxes N/A N/A N/A N/A
Other Pnyroll 5.2% $0.52 $300 $26,400
Reserves 4.4% $0.43 $25.0 $22.000
Total Expenses 44.0% $4.33 $2,524 ($217.154
Net Operating Income 56.0% $282,486
V. Capitalization.
Capitalization is defincd as the translation of net income benefits into an indication of value. Primary
capitalization methods include Direct and Yield Capitalization. Direct Capitalization considers the application
of a single ratc 10 thc anticipated net income in the first operating year while yield capitalization considers
revenue general ion Over a holding period and potential reversionary benefits as separate components. For
properties such as the subject, Direct Capitalization is most appropriate.
Having concluded Ihat direct capillllization is the most suilllble technique, an overall capitalization rate (RJ must
be estimated. Three of the more common techniques for rate derivation are briefly described as follows:
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R. Can hr' of", "'upcd Ihrullgh a Mortgage/Eqully lechnique which compares the proportionate return
"''1l1lr''II,,'III. ufhulh Ih., e111llly and debt positions.
R.can he ,kll\\'d from lJcbt Coverage IOCR) and Loan to Value ILTV) ratios.
R"can he e\lractcd dlrl.'Ctly from the market based on the sale price and anticipated income generation
of cOl11p;trahlc propenies, or based on interviews With market participants.
Mor!gagc/Eqlllly Tcchniquc
The Mongage: E'IlIlly techniquc is essentially an average of the equity and debt components, weighted on the
basis of the indmdllal ratios fo 10lal value. First addressing the debt side of the equation, a variety of avenues
are availablc I'll deht financing, including banks, S & L's, insurance companies, governmental agencies,
conduits, mlltllallilllds. REITS and other forms of securitized debt. Mid-size to larger properties ean generally
avail thcmsclres "rlhe broad range of financing options, while smaller deals would likely be limited to banks,
S & L's, or in SOIllC IIlStanccs, conduits.
According to Ihc Wall Strcct Journal dated May 5, 1998, the following market rates were published:
l'al~':':lIr.\
!'nl1ll,.' ltll~'
Currr.at.R&te
1,'11101"11 li:~t.:lhank OITered R:llCS (lIBOR) I month
8.SQllIo
5.6563%
I.lfll.lon Inll:lhan!.: OITered Rates (LlnOR) 12 months
6.9023%
Trc:hlll:.'lldl.5 Year
5.66%
Trl"a~lIr;.' BIIl- 10 YCOlr
5.74%
Feder:lt r IlIme loan Mortg:lgc Corp. Yields on 30)T mongage
C1IJ11rnillllCnlS - JO-day delivery
7.09%
Feller.!l '\'alillnal ~fong3ge Assoc. . Yields on 30 yr. mortgage
cnnllmtlll~'l1l.. - JO-tfOlY dclivet}'
7.03%
Interviews with Illortgagc bankers active in the mid-Atlantic region suggest that fmancing is presently available
at rate ISO 10 ~iJf) '''Isis points over the lO-year treasury (presently in the vicinity of 5.7%). We estimate that
financing cOllld he ohtaincd at a ratc of 7.5% with a 25-year amortization period, lO-year term, 75% loan-to-
value ratio and 1.~5 debt coverage ratio.
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INCOME APPROACH TO Y ALUE
In the past it )J;b hccn cunventional for equity returns to be similar to or only slightly higher than the mongage
conslllnt.fpropcny vallie was e.'pected to be slllble. The spread between debt and equity requirements has
increased in rc<:cl1l years howcver, due to the advent of securitization. Previously, the difference between the
debt and cqulty positIons was largely a matter of which got paid first, so long as the loan tenn was not
significantly shorter than a typical holding period. Now, however, risk to the debt side of the equation is
mitigated. 'n,C 111111:11 debt holder has only a short exposure period (typically 30 to 60 days) and garners revenues
primarily from ongination fees and servicing. Once the loan is packaged and sold as a security, risk to the
purchascr is :lgalll 1111tigated by diversitieation and increased liquidity. The end result of this is an increased
spread belIVeen lIre debt and equity return requirements.
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This is boume "ut by recent investor interviews which indicate an overall range 01'9% to 15%, depending on
property typc :lnd tenant quality. The low end of the range is defmed by single-tenan~ net-leased properties with
minimum Icasc tcnllS of 10 years and an investment grade tenant; the equity expectation here is generally 9%
to 10%. Apartment investors are the next interval, with equity requirements ranging from 10% to 14%. Other
properly types (onicc. industrial, etc.) define the high end of the range between 12% ar:d 15%. Considering that
apartment properties :Ire yet the real estate investment of choice, we estimate an equity requirement of 12%.
Assumptions
Mongagc COllstal1l:
0.0887
0.1200
0.7500
1.2500
Equity Rcquirement:
Loan-to-Value R:llio:
Debt Coverage Ratio:
Application
CompUlIl'lIt
Ratio
Rale
Conlrlbudon
Ol:ht
0.7500
0.0887
0.0665
0.0300
:~
)r
if.
~1'~
I';~.;
t'
(~ .
-,,.;
-~';.
fe..-
1\
II
I'.
I..
~',;.
EqUlI)
0.2500
0.1200
(h,tralll{alC,>
0.0965
Rounding to the nearest quarter point, the MortgagelEquity Technique suggests a rate 01'9.5%.
33
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I:'iCOME APl'ROACIl TO VALUE
Debt Cowrage 10,," to Value Mcthod
This melhod """,,'01 cl1lirely on undcrwriting critcria. Thc tcrms ofthc likely debtlinancing discussed earlier
results III "" (II ,'I.i1I,;lle indication by this mcthod as follows:
DdJIC'UH'I",Il:I'If.IIUI
\lorlJ:JKC COnlllnt
lon-ro-v.JUt Rallo
()Ytrlll RIte
1:"',,,.
o "XH7
0.7500
0.08J2
Again rollndillg to Ihe l1earest quartcr point, this method suggests an overall rate 01'8.25%.
SaleJ)erivatllln ~lelhud
This medmd cOl1siuers die overall rates exhibited by the transactions included in the Sales Comparison
Approach. The,e ';lIes, which occurred between 1994 and the present, exhibit financial characteristics as
follows:
Sale I.UClIliulI f..G.r. prr Unit NOI per Unit Expense Rallo Ovenll Rate
(\,rUIll;!ll ih:n .\I':lrtments 56.52J 5J.464 46.9()O/o 10.00%
Lu\\'cr ",l\h'lI T'l\\nship
2 Qu:ulRul1 .\parlmcnt 55.625 5J.050 45.77% 12..22%
l.m..:ash:r /"m\n,hip
J Jla.'l:lnn l':lIk .\pJrtments 55.9J5 S2.571 56.68% It .25%
Luwer 1';1\l\)11 I'll\\nship
4 Coulllr:. '.\'~d:" .\;)Jrtmcnts 57.809 55.041 35.44% 9.68"-
.J Lmh'r ,\;11;11 lol\\nship
5 Shall":lll!.l:l!l :\p;;rtments 56.1% 54,164 32.8oa/o 10.41%
l\.1i:ch~:ll..::,bul'g
6 SdlOullllllbC' .\partments 56.860 52,884 57.96% 10.18%
~fcch:U1k~h\lrg Borough
7 "n!!.,' Pines S5.J70 52.458 54.23% 10.18%
Susquehanna Tuwnship
8 Lindh:ll1l( 'tlurt 55.947 53.842 35.39% 9.10%
L'ppcr .\Ikon T'l\\nship
9 St'CiCl~ Ilill.\p.mments 56.746 54.185 37.96% II.JO%
11)\hT.\Ik":llll\\nshi
These sales. which \IcclIITed between January, 1993 and November, 1996, exhibit a range of capitalization rates
between 9.1% ;lnd 1~.22%, with a mean of 10.48% and a median of 10.18%. Recognizing that debt rates have
declincd signilicantly since these transactions occurred (rendering them trailing indicators), we conclude an
34
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indicatlOnne:" !h,' :nlll-point of the range. or 10.0%.
RalC.SUlIlll1:lI)
At this point II " I\onhwhile to discuss the relative mcrits of each approach to rate estimation. The Debt
Coverage ~let"",IIS.25%) has an inhcrcnt weakness in that it does not specifically address the equity side of the
equation. The ~ IOl1gage'Equity Techniquc 19.5%) improves on this as the equity requirement is an integral part
of the cnlelllalllln Typically, the Salc Dcrivation Method 110.0%) is perhaps the best reflection of the market,
as it represcllLs actual transactions within the markel, however as discussed above, rapidly changing markets
render thesc lra'b"cticns to be trailing indicators. Overall, each method should be carefully reviewed in order
to gain adequ:ilc inSight into the investment. Based on the discussion presented above, and giving equal weight
to the Mortgage Equity and Sale Derivation Methods, we conclude an overall rate 01'9.75%.
-
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It remains to adJust the capitalization rate for the tax load factor which was previously calculated to be I. 1492,
Summing Ihc overall rate with the tax load factor results in a tax loaded capitalization rate of 10.9%. Applying
this to the pre-real ('state tax NOI devclopcd earlier results in a value indication as follows:
Net Oper:llillglncomc
S~:'~.-lS6
Ol'crallRatc
10.90%
Rounded To:
Ya!ue Indication
$2,591,615
$2,590,000
It should be noted Ihalthis is a fee simple valuation, as it is based on market rents that are higher than those
presently in place.
-The implication here is that a correct assessment would result in real estate taxes 01'$29,778 ($2,591,615 x
1.149%). or S3JS per unit.
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I, IlIt/'()(luction
In the Sales ('olllparison Approach properties gencl"~lIy similar to the subject are analyzed on the basis ofan
appropnatc '"111 of comparison and then compared to the subject. Physical comparisons as well as income and
expensc charaClcnstics arc use!ul in arriving at a value estimate through the Sales Comparison Approach. In
this analysis. II,' comparcd each of the comparable propenies to the subject, taking into consideration the
expense ""10. the cffec.tive gross income muhiplier and other related factors.
II. COlllp:u'ati\,eAnaJysis
Limiting Ollr rcsearch to the Hatrisburg MSA, the fOllowing transactions were discovered:
Sale 1,lIralillll SalrD.re PrltrlUnlt [Iptnse RlUo E.G.Uf.
Clll"'I,;) {tlcn I\panments 10/96 Sl4.626 46.90% 5.31
1..1\\lT I'..'.luo TO\\ol1Ship
2 QIWJ '~.m .\p:mmcnts 11/96 S24.96l 45.77% 4.44
l.:llh::hln r uwnship
l 1':1\:00 i':!rk Ap..nments 05/95 S22.857 56.68% J.SS
Lower 1'<l\IOn Township
4 Cuunlry Walk Apartments Ol/95 S52.08l 35.44% 6.67
Lower .\lIen Township
5 Shancn.r"Jh r\panments 12194 S40.ooo 32.80% 6.46
~lcch:'ll~h:"bllrg
6 Schlll)l! louse Apartments 06194 S28.3ll 57.96% 4.IJ
.\lcl'hallll.:~bLlrg Borough
7 Thcl'in...... 01/94 S24. r 5l 54.23% 4.50
Susquci!:.:nna Township
8 LinJhamCourt 02l9l S42,222 l5.l9"A> 7.10
Upper .\J1en Township
9 Sl1dely Ilill'\panments 01/9l Sl7.0l7 37.96% 5.49
l.n\\l..'r.\lIcnTo\.\l1Shi
Detailed write-lips of all the sales are presented in the addenda. The subject is projected to exhibit an expense
ratio of ~~.O"~, prior to consideration of real estate taxes; adding the taxes implied by the value conclusion
reached in the Income Approach. the expense ratio becornes 49.9%, and a net operating income per unit of
$2,872. Ralher Ihan prcsenting an adjustment grid to more subjectively contrast aspects of the sale properties
in comparison 10 Ihe subject property, a process known as regression analysis has become an increasingly useful
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tool applicable- In real estatc analysIs. Regression Identities the possiblc relationships between or among
variables tll pr<lvlde a bcttcr undcrstandmg of the underlying data. Simple regression analysis measures the
relationship bel\\ een an md<'JlCndent variable and a dependant variable with the equation Y, =a+bX, where r. is
the fore~ast value, " IS a constant, h IS a multiplier or coefficient, and X is the value of the independent variable.
The equation st;ltes thallilr thc independent variable, .\:the expected value of the Y variable to which it is being
related IS ):. Regression does not necessarily imply or attempt to quantify causative relationships. Rather, it
reveals Ihe apparent relationships bctwcen the value; of different variables and their tendency to vary regularly
with one annth,'r. When strong relationships are found, measuring these relationships can help explain one or
more of the v:lllables and forecast their values.' Applying a linear regression analysis to the cornparable sales
using the expense ralio as thc x-value and the EGIM as the y-value, the suggested EGIM applicable to the subject
is. Multiplying tile effective gross income by the EGlM results in a value indication as follows:
Effeeti\'e Gross Incomc
E,GJ.l'rL
'ValUUndicatiOB
$50-1,6-10 4.76 $2,402,086
Applying a sin1Jlar mcthodology to the NOI per unit and the price per unit of the sales (that is comparing the
relationship between the NOI per unit of the sales to the sale price per unit) results in the following value
indication:
l'nitYaluc
J:l!o--oUInlts
88
'Value Indleation
526,967
$2,373,096
The correlntion coefficient is -0.9164 for the E.G.I.M. analysis and 0.9569 for the net income per unit
calculation. The linear relationships between the expense ratio and effective gross income and between net
income per unit and price per unit are strong. Giving both equal weight, this analysis suggests a value
indication of 52.390.000.
,
. Th~' .\PPI~lI~,IJ of Ro.:al Estate (Chkago,lIIinois; Appralsallnstitule. 1992), p.603
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RECONCILIATION
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The purl'OSC ollhis report IS to cstllnatc the markct value of the Fec Simple interest in the property located and
known as:
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Bclle Terre Apanments
Geneva Drivc
Upper Allen Township
Cumberland County, PeMsylvania
The scope Oflhc analysis has bccn limited to full development of the Income and Sales Comparison Approaches.
The value indications are as follows:
Cost Approach:
Income Approach:
Sales Comparison Approach:
Not Developed
52,590,000
$2,390,000
The value indications vary by 7%; giving greater weight to the Income Approach, and based on the analysis
presented herein, we estimate the market value of the fee simple interest in the subject properly, in cash or terms
equivalent to cash, as of May 4, 1998, to be:
Two Million Five Hundred Thousand (52,500,000) DoUars
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rA.....d HI., lIu.~"d ".d Seventy-GiCJh~ (197B)
i!lrtlurrn R. A, ORTENZIO And NANCY Ii, OIlTENZIO,
~cchAnicsburg, Cumberland County, PennsylvaniA,
t't{ubl.'
wht'
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ot 342B Lisburn Road,
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Allen
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BELLE TERRE, A PennsylvAniA limitsd pArtnership> 301 South
Street, State ColleCJc, Centre County, PennsylvaniA, Grantee,
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"I lA, c.,. 0/ One (51, 00) ------------_________________~_________________
/Jollllr,. (uwlll/lllum'!lul tllr Vlljt.:,l .'\1/;((', of .-h"",.h'll, Irt'l/ Ulllt 'rulll palel b!Jlllr '1I(t! party oj lilt
maud pad to tile ,.,fd "urliCS II) 'he lint 'II1,t. n( ifill' bt/,."t 'II, tra""o and "t'I1l'rry III ,,,,,,
prClcnll, lite reed}!' Icl.fl'rllJ h lu"',,I'1'1l('4'lIull'lr,fgl'l/, have
7rrlll/rd, Lflrguill(l/, 101", n1it'lIrcl, ,"/(ol/rd, ..clea.ed, ('IJIII'r!Jr,1 (lUll cOIl/'rmed alld bV tht'1t P""II'"" J.,
grlllll, '''''!J'li", 11I'11, ,,/i"Il, ".Jrl,IJ, .'drau, ClJflt"!J, 1.1/,,1 MIlJI,.," ""'n 0., .,,1,' IHIr'Y III
IAt uC'olld I'lIr', ita 9ucccasors v,~ "1ll1 rlHI!/lll,
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.!l.1l THAT CERTAIN lot or piece of ground situate in Upper Allen Town-
Ship, Cumberland County, Pennsylvania, bounded and described in accor-
dance with a Final Rcsubdivision Plan for R, A. Ortenzio by Charles W.
Junkins, Registered Surveyor, dated October 11, 1976, last revised on
lIovember 16, 1976, as follows:
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BEGINNING at a point on the southerly right of way line of Geneva Drive
150 feet wide) at the intersection of Lot 3-A on the aforesaid Plan
and lands of KOG, which point is on the dividing line between Upper
Allen Township and Lower Allen Township and is North forty-follr (44)
degrees two (2) minutes nineteen (19) seconds West from a concrete
monument at the intersection of land!! of ROG and \'lintcrsct One Asso-
ciates; thence South fifty-two (52) degrees thirty-six (36) minutes
thirty (30) seconds West along the southerly right of way line of
~ncva Drive a distance of 5.83 feet to a point; thence along same by
a curve to the left. having a radius of one hundred seventy-five (175)
feet an arc distance of 94,31 feet to a point; thence along same by
a curve to thc right having a radius of two hundred twenty-five (225)
feet an arc distance of 121,25 feet to a point; thence South fifty-two.
(52) degrees thirty-six (36) minutes thirty (30) seconds West along
s~me a distance of 565.41 feet to a concrete monument; thence along
sarno 14,31 feet to a pin; thence North twenty-two (22) dcgroes twenty-
five (25) minutes thirty (30) seconds West along Lot 4-B a distance
eooKlf27 P^GE 367.
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of 606,0.1 {cot to ~n iron pin at lands of Oxford Hanor flpartmentsl
thonco /lorth 0 i xty-oovcn (67) dogree. thi rty- four (34) mi nuccs
thirty (30) secondo Ea.t alcmg So1IIIO fill.54 Ceut to an iron pin at
l.lnds in tho lo/lndsor Park Subdivioio'll thenco South Corty-Cour (H)
dugrucs two (2) minuteD ninotcon (19) secondo E.,st alon9 said lands
of Windsor Park SulJdivioion and aionlJ Lando of KOG (through a concre~
monumont) " diotonco of 374.l4 (cot to a point on the southerly right
oC way line of Conova Drivo at tho intersection with lands of KOG
in Lot No, 3-A, buing tho point and placo oC OEGIrlllIllG.
COIlTAINItlG 8,04 acrOd,
DEIIIG Lot /la, 4-A on tho aforosaid Final RO-.ubdivIsion Plan
DEIIIG a part of tho prcmioos which Georgo D,H. Wilson and Nina /1,
Wilson, his Wife. by deod dated AU9ust 5. 1974, recorded in the afor..
said offico in Deed Dook S, Volumo 25, Pago 697 grant cd and convsyed
unto R, A, Orten.io, Grantor horoin,
UIIDER AND SUDJECT to ea.omento. rJghts of way and restrictions of
record and ri9ht. of Upper Allen Township in and to Gonova Drive,
,..~I, ,I ?{.,",:h?!::.u.~
CumlJ rfIo.. p..
. 11" 1 ""',, Tu .J-S, 1I..lllhh.r,.n".,T.. 0'"
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'-7 ..(7.1;- ~'l/. 7ft:- o'e:;/:X-:?~A7I.'~"r.;..-
"" ...J.../...... ~r ........ 'A.'.. V~"
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Schoql Oilt. Cumbo Co.,-ft..
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ZONINO
TABLE OF USE REGULATIONS
SCHEDULE E
URBAN RESIDENTIAL DISTRICT (UR)
In areas which can be feasibly supplied with public facilities, a higher dcnsity of residcntial
usc can bc accommodated. Also, such areas can be used for a variety of housing types 10
include multifamily dwellings. Commercial uses arc permitted only for thc convcniencc of thc
resident.s. Such commercial uses mwt be subordinate lo the residcntial use, must be an intcgra)
pan of a rcsidential subdivision or land devc10pment or must be designed lo serve one II) or
more existing residential subdivisions or land devclopment.s located in the immediate vicinity
and nol served by integral commercial uses.3S
Number
I.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
Use
Additional detached
dwelling
Apartment (maximum
density: 12 dwelling
unilS/acre)
Boardinghousc
Church
Cluster dcvclopmcnt
Communication facility
(publicly regulated)
Conversion apartment
Crop farming
Cultural facility
Day nursery center
Day nursery home
Drive.in stand
Fire station
Golf course
Greenhousc
Group home
P = Permitted
SE = SpecJaI Excepllon
p
p
SE
P
SE
P
SE
P "
p
p
P
SE
p
P
P
SE
3S EdItor', Note: Amended.t Ume OlldopUOD or Code; lee Chapter 1, Gtllual ProvllloD" A.rt. L
UPPER ALLEN CODE
P = Permitted
Number Use SE = SpecJlII Excepllon
17, Home occupation SE
18. Hospital P
19. Personal service SE
establishment
20. Planned residential SE
development
21. Private club P
22, Private recreational P
facility
.., 23. Professional offices SE
J 24. Public building p
.... 25. Public entertainment SE
I facility
.."..
26. Public recreational P
facility
27. RestaurWlt P
28. Sanitary facility SE
29. School p
...,
30. Signs p
..J
31. Single-family dwelling p
32. Supply utilities SE
33. Townhouse (maximum p
density: 12 dwelling
units/acre)
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J SeU. Terre Apal10ltllrs
" ..
I Un" -NJme "1')'1'.0 Rt'nt See Dq)
b07110 YouD8 John I 455.00 200,00
~ 607111 Gross Hwold 2 500.00 200.00
j
607812 Gerbcrich WeJld~.. 2 500.00 200.00
~ 607820 Mlddipltha Chudr8 505.00 300,00
I 607821 Nailor Me/is.la 2 500.00 200.00
... 607112 Gasper Timothy :.1 50000 200.00
607123 McClain J.ll J 455 00 300.00
,,~ 607..10 Weigher William I 455.00 300.00
j 607431 Williams lames 2 525.00 200.00
607&32 Lynn DeIbert 3J1d Kare~ 2 500.00 200.00
....
, i 607833 Weicht Jack I 455.00 200.00
"'" 607bl3 Va~'lI/]t ~ 500.00 300.00
i ..
I'd 607b14 i'enoy Thoma.s 2 500.00 400.00
i 607b15 MiUdf Jamie I 455.00 200.00
j 607b24 Grubb Ruby 1 455.00 100.00
!If"
i 607b25 Gonzales LinthUtst &; Jamie :! 525.00 D 200.00
, 607026 DymjJc Joho 2 525.00 D 200.00
..,
607b27 SIIOl'llm4nian V.K. Rtunesh I 455.00 200.00
607b34 Watlcin Michael I 455.00 200.00
607b35 Miller Derk &; Jon ~ SIO,OO 400.00
..
607b36 Liu Ian and :NicoJe 2 500.00 200.00
607b37 Carlisle Kim 455.00 200.00
...~-....---------~~...--
J"'W:ij.a. 5.100.00
IOb'8'5'0t7
I
Oe'l.on AUIl~IIlU - litat RoU (Cllhld,)
BeRe TelTe Ap.l1meats:
Unit Nam~ l)tn~ Still s..., n~.
609alO Snyder Patricia I 4JO.00 200.00
, 609111 OatJjnB William and J OIlR 2 52500 200.00
609.12 Garlin Jasi~ ~ 525.00 D 200.00
~
609&20 Lyon Ellen 455.00 200.00
609121 Rogers Fred ~ 475 00 200.00
,.
--.
609122 Cain Farob 8: Susan 'f2 500.00 200.00
609123 Smilll John 1 440.00 C 200,00
609130 Wisegarver Sharon I 455.00 30000
60913 I Thielman Debra 2 500 00 200.00
609a32 Suoman Scott 2 500.00 200.00
609a33 Weilkalllp Christopher I 455.00 200.00
609bl3 Shup Angela 8: LYM 2 525.00 200.00
609b14 Ibberson Nadine 2 SOO.Oo 400.00
609bl5 Bier Jeffrey I 455.00 200.00
609b24 Millvr T.L. I 455.00 200.00
609b25 MillerlKnipple Travis and Jennifer 2 525.00 200.00
609b26 V <<ant 2 500.00 400.00
609b27 Wright W. I 455.00 200.00
609b34 Kof}' Jones (MI 3/1/98) 1 455.00 300.00
609b35 Still Karen 2 500.00 200.00
0 609b36 Amanor Edward 2 500.00 200.00
609b37 Galbraith Brin 455.00 200.00
U --......._---..~.._.._-.._...
10.585.00 5,000.00
~
I
I ,
I
I
I
. (XII'1l0n "nod.lell Relll koU (CO did.)
,
I BeUe TelTt ApartmedU
Unil NattIe .-1vno R~nl s.., D~
611aJO Kocher Tim 465.00 C 200.00
~ 611al1 DeJunan --
Scan and Chllblino , 525.00 200.00
.
611al2 eroSIOn Alan and ~thy 2 500.00 200.00
I 611120 Lalonde Bruce 1 430.00 200.00
611121 Frll)' !Carelli 2 525.00 200.00
~ 611122 HUlliinger Forresl , 500.00 200.00
.
611823 Long She11i 455.00 200.00
a 611130 Kundel Nancy 455.00 D 200.00
611131 haai Noztr " 500 00 400.00
,.
611832 Suoberl Joseph 2 500.00 200.00
611133 Knight Tom I 455.00 200.00
= 611b13 Zimmerman 2 500.00 200.00
611b14 Vacant 2 500.00 300.00
C 61lblS Vacanl I 455.00 300.00
611b24 Kauffilum I 505.00 300.00
~ 611b25 Stonefifer Michael 2 500.00 200.00
611 b26 Mueller J. " 500.00 200.00
"
C 611b27 Clytie John David 455.00 200.00
611b34 Scbaifstall 1 455.00 200.00
C 611b35 Vacanl 2 500.00 200.00
611b36 Landis Alben ., 500.00 200.00
...
611b37 Bingaman LonH. 455.00 200.00
C __~____"__w.__~.,,._____-..__
10,635.00 4,900.00
a
u
"
I
I
I
. Oclason A..ocillel- Reol RoU (CODld.)
BeUe Terre Apll1menla:
. Un;1 Name 1:yn" R4!IIt S"" Dqp
613al0 UmbreIJ John I 465.00C 200.00
613a11 Vashoy Dutchey :.1 500.00 200.00
. 613al2 Bair HArvel).' and Dodie 2 500.00 200.00
613&20 Zimmertlllll Elizabeth I 45S.00 100.00
. 613&21 Quaker Miclmel L. & Kerry 2 500.00 200,00
613&22 Bair Dale 2 525.00 D 200.00
~ 613&23 Tarbox Nanc)' I 455.00 200.00
613a30 Daood Asii I 455.00 200.00
~ 613131 Bloor Wilbam 2 500.00 D 200.00
613832 Stoner Garboritz 2 500.00 400.00
~ 613a33 Sandluslcy PelCII' 1 455.00 200.00
,
613b13 Cory 2 500.00 400.00
1 613bl4 Lut. 2 500.00 400.00
613b15 Krewson Benjamin 440.00 C 200.00
~ 613b24 CrClythelmel Lered 455.00 200.00
613b25 Ivcy Thomas 2 500.00 200.00
H 613b26 HorneyfYentz Kerrylflill 2 525.00 200.00
613b27 Roos William 1 455.00 200.00
:~ 613b34 Meltol1 Shawm 1 440.00 C 200.00
1" 613b35 HineoiStewarl HeatherlKim 2 500.00 200.00
i .
1M 613b36 Roh_ Tammy 2 525.00 200.00
613b37 Seymore Stephen 455.00 200.00
I
,
i ....----..--------------...---
I,. 10,605.00 4,900.00
,
I
'~ Total (40- One BR, 48- Two BR Units and 23- Patio Homes) S "<, -iO 18 f aOtCUI1.88 eX)
I.
-\ .< ~_'J,7JO:;,
, .
II Unit ~pe: B-With Basement; O--No Basement; 1-1 BR; 2--2 BR; C-With Cat; D-With Dog
HI
11
II
~
I
I IIAIIB/LOCATIONI
~
TAlC ID RO. I
GRAN'l'OR I
" GRAN'1'Illlil
CONSIDIRATIONI
" nAR BUILT.
~ BUILDING JUUlA.
HllXBlIiR O. llHITS.
= COIlllBll'1'I
= DlIiSCRIPTION.
~
=
AlIALYSIS OJ' BALlI
COMPAIlAIlI.B SALI - APAIt'l'lClliN'l'
Colonial Glan Apartmant.
4900 Lancar Straat
Lowar Paxton Townahip
Dauphin County, PA
35-054-001
Samual Zall , Robart Lurie
MGM BDtarpri.a.
$6,025,000
1976 ,CONDITION.
Good
194,279 Sq..t. LAND AKBA.
14.7300 Acre.
174 RDt'rABI.B JUUlA I
153,564 Sq..t
ODdar agraement at .ale dated October 2, 1996.
Coloni"l Glan Apartmant. con.bt. of 174 two-bad:o_
gard... and tOWDhou.e unit. hou..d within 20 two and
thJ:aa-.tory building.. OIlit IIIix b 138 two-bad:o_
unit. (860 .quare taet) and 36 two-bed:o_ unit. (969
.quare hat). 'l'ha tOWDhou.a unit. contain a
wa.har/dryar hookup. Amanitie. include & awimming
pool and laundry .facilitie..
BALlI PRICI/Sq.J't.. $31.01
(G.B.A.)
tJR:tT PRICI. $34,626
BALlI PRICI/Sq.J't., $39.23
(RD'l'ABLJI JUUlA)
I
..com %Ill
PROpan %Ill
nLJl %Ill
15210
15418
965869
I
'1
COIIPAIWIU SALa - APAIltxDlT
~
~
IIAIOl/LOCATION.
'axton 'uk Apu!:aeat.
5&0 '001 Ddv.
Lo.... 'axton Town.hip
Dauphin County, PA
TAX ID NO..
35-057.028
.
;J
GIlAIITOR.
Paxton A..ooiat.. LP
,
~
GRAIiTIla.
MaN Inv..taent R..lty a~oup
CONSIDDATIOJh
$3,200,000
DATS or BALlI.
Ol-QY-95
YDR 8OJ:LT.
1966
,LAND ARKA.
10.8700 Acr..
NtOOIBR or Ulf.tTS. 14 0
DaSClUPTION.
riv., thro.-.tory brick with
multi-.action buil~g. coataiaiat
aputmant IlDit.. ~ti.. iDcluc!.
c.dar p....1.
. totd of 140
. 81fiIImiag pool.
ANALYSIB OJ' SALK
ll!lJ:T PRIOI.
$22,857
a.a.I.11I
3.851
..I...
,'0
8.889
0VJalALL RAn.
11.25 '"
UPDsa RATIO.
56.68 '"
UCORD In.
1I.0PUft In.
PHOTO In.
11614
12175
3479
I
~
~ NAMIl/LOCATION.
~
TAX ID NO. I
OIlAN'1'OR.
0IlAN'1'88.
CONBIDBRATION.
.., DAn: 01' BALlI.
I
YBAR Bll'ILT.
NtrICIIBR 01' llN:I:TS.
Il8SCRIPTION.
ARALYBIB 01' SALK
llN:I:T PRIa.
OVlDtALL RAn.
....
COMPAJlAIIL8 S.\L8 - APARTMIlHT
Shanandoah Apartaant.
105.107 Allan Straat
Machanic.burg
CUmb.rland County, PI.
18-23-0565-8)
Shanandoah loP
rrank R, rrai.tak
$2,400,000
29-D81:-'4
1"1
60
Shanandoah Apartaant. cond.t. of two wood f"'lIIII8
building.. '.\"ha gardan unit. .a",. built in 19'1. '.\"ha
toWDhou.. unit. we:. conv.rted to apartment. from a
praviou. indu.tria1 u.a. '.\"ha apartment. va"Y widaly
In .isa aa a ",a.ult. unit faatur.. includa .a.ha",
and dryar., ..curity, .lactric fo",c. hot ai", and
cant",al air-conditioning aneS balconl... '.\"h.
con.leSaration on the eSaad ra.d. $2,340,000 .hich i.
nat of buyar'. broka", faa of $60,000.
$40,000
B.O.I...
6.456
N.I..:
'.608
10.41 ...
BDBHS8 RATIO.
32.80 ...
RBCORD ID.
paOPBR'1'1' ID.
11621
12493
.
I
COMPAllAIILI SALI . APAJlTMINT
I
NAMI/LOCATION.
School Rou.. Apartmant.
133 Neet Locu.t Street
Meehan1c.burg
CUmberland County, PI.
I
TAX 10 NO. I
23-567-027
I
I
!
ORANTOR.
But Oil
ORAHTBB I
Revegno Propert1e.
COHSIOBRATIONI
$1,700,000
OATa or SALI I
01-JUN-94
YBAR BtnLT I
1892
n
=
LAND lUlBAl
1.8600 Acre.
HtlHIIBR or tlIll:TS I
60
DISCRIPTION.
Th1. 1. a former two-.~ory .chool building originally
built in 1892 and renovated into apartment. in the
1980'.. The building ha. 1m interior courtyard.
ANALYSIS or SALK
llNXT PRICK,
$28,333
I.O.X..:
4.130
5.%.11:
9.823
0VIlRALL RATJl,
10.18 '"
UPIlHSI RATXO,
57.96 'II
RBCORD:tO, 11615
PROPBRTY XDI 12U8
~
~
COMPAIlA8LK SALK - APARTIlIlNT
11II
11
HJUal/LOCATIOHI
Th. Pin..
JOl N. progre.. Avenue
Su.qu.hann. Town.hip
O.uphin County, PA
lIlI
:1
III!
,I
TAX 10 HO,.
62-47-60
ORANTOR.
ITL-HP, Inc,
1
ORANTKK.
New Pin.. A..oci.tel, L~P.
COHSIOKRATION.
$5,700,000
OATK 0.. SALK.
14-JAH-94
DBV/PAOB.
2154 / 331
YBAR BI1ILT.
1970
CONDITION.
Fair
LAND ARBA.
1:z.4300 Acr.a
HllJIBBR 0.. UNITS.
236
OBSCRIPTION:
Wood frame tWO-8tory colonial bUildings, all witb
exterior entrance.. Units are total electric. Total
236 units, ODit mix is: 124 one-bedroom/ons_batb, 84
two-bedroom/one_batb, 16 two-b.droom/l.5-batb and 12
thrss-badroom units. Tber. was minor deferred
maintenance at time of 8a1e.
ANALYSIS 0" SALK
ONJ:T PRICB:
$24,153
B.O.I.H:
4.498
N.I.H:
9.828
OVBRALL RATB:
10.18 11
BltPBHSB RATIO:
54.23 10
RECORD ID: 8876
PROPERTY 10. 9768
PHOTO 10: 2809
~OMP~L!._llALB - APARTMENT
NAME/LOCATION.
Lindh... Court
1101 Lindh... Court
Uppar Allan Townahip
Cumbarland County. PI.
TAX ID NO..
42-24-792-006
n
GRANTOR.
r,T. Raalty Company
GRANTEE.
K,L,P. Entarpri.as
CONSIDERATION.
$3.800.000
DATE OF SALE.
01-nB-93
DBV/PAGIl.
36C / 904
c
c
C
D
m
.
I
I
I
I
I
I
YIlAR BUILT.
1987
CONDITION.
GOOd/Fair
NUMBIlR OF UNITS.
90
DIlSCRIPTION.
Two-story brick and siding apartmant
containing 90 one and ~wo-bedroom apartments.
complex
ANALYSIS OP SALIl
UNIT PRICE.
$42.222
Il.G.I.M: 7.100
N.I..M. 10.989
IlXPIlNSE RATIO. 35.39 '1s
RIlCORD ID. 8881
PROPIlRTY ID. 9773
PHOTO ID. 2813
OVIlRALL RATIl.
9,10 '1s
~
~
~Q!!!,ARAI!.~UALB...:~!'!o.!L~Il.N.!
"
NAME/LOCATION.
Society Hill Apertments
2900 Lisburn Roed
Lower Allen Township
Cumberland County, PA
~
TAX ID NO,.
13-10-258-005
..
d
GRANTOR:
N.L.A. 422. Inc.
GRANTEE.
National Properties, Inc.
CONSIDERATION.
$4.000,000
DATE OF SALE.
Ol-JAN- 9 3
D8V/PAGE:
36B / 1196
YKAR BUILT.
1988
CONDITION:
Good
BUILDING AREA:
129.438 Sq.Ft.
NllMBER OF tlNITS:
108
DESCRIPTION:
Three-story garden apartment complex with
108 units. One-bedroom units contain
feet; two-bedroom units contain two baths
square feet. Units are all-slectric.
a total of
871 square
and 1.113
ANALYSIS OF SALE
o
U
D
I
I
I
I
SALE PRICE/Sq,Ft,: $30,90
(G.B.A.)
tJNIT PRICE: $37. 037
E,G.I.M. 5.490
N.I,M: 8.850
EXPENSE RATIO: 37,96 '"
RECORD ID: 8880
PROPERTY ID: 9772
PHOTO ID: 2812
OVERALL RATE: 11,30 '"
...,
ILUIIl!LOCATION.
TAX ID NO,.
ClIlANTOR.
ClIlANTIl..
CONSIDJalATION.
J
DATIl or llALII.
YV.R IlJJ:LT.
N1JJIIlIR or 1lNJ:TS.
D.SCRIPTION,
A1QLTBIS or 8ALI:
I
I
I
I
I
I
llJIIT PRICII.
COIlPARAIIL. SAL. - APAATICIlIlT
Quall Run Apartaant.
4001 Ra.l.lgh 8tr..t
Lo.ar Paxton Town.hip
Dauphln County. PA
35.058-71-73, 151. 155. 156. 157
rad.ral Rome Loan Mortg.g. Corp.
lanjamin D. O.ll.r
$1.425.000
15-NOV-93
DIV/PM..
2104 ! 102
1971
CONDITION.
rair/poor
.LAND ARv..
5.7930 Acr..
88
IIood fr...... two-.tary colonial buildinll. with
iDt.rior ball.. CUit. ara all al.ctric. 88 total
unit.. CUit IIlix i. 20 aD.-b.clz:aam!aD.-bath unit.. 56
two-baclz:oCllll!aD.-bath unite. and 12
thz:..-b.clz:aCllll!1.5-bath unit.. Th.r. _. d.h.....d
maiDtananc. at tima of .al.. Pl.......d capital
iIIlprov......t. of appraxiJllataly $100,000 includ.
r.placamant of hall carpat., roofinll, r.pavinll and
camplat. ranavatian of pool which ba. haan cla..d far
quita a whila.
$16,193
IlaCOIlD Ill.
PROPD'l'r Ill.
PHOTO Ill.
1177
9769
2810
.
"
con AllABL.W SAL. . AP AIlTlCZHT
~
IlAXll/LOCATIOK.
Paxton Park Apartmanta
660 Pool Drive
Lowar Paxton Townahip
Dauphin COUDty, PA
TAX ID NO..
35-067-028
GRAIITOR.
Paxton r..aociata. LP
GRAIITII.,
KGK Invaatment Realty Group
COKSIDDATIOK.
$3,200.000
~
d
DATIl or 8~.
01-KAY-95
YKAR BOUT.
1966
~
)
,1
,LAKIl ARv..
10.8700 Acra.
N1lIIIIBR or llK:tTS. 14 0
D.SClUPTION.
riva, thrae-.tory brick with
multi-.action building. containint a
apartment unit.. Amanitia. include a
cedar paneh
total of 140
awiBaing pool.
ANALYSIS or SALK
llI'lIT PRICII.
$22,857
..Q.%.II:
3.851
..I.II.
.""
8.889
OVBRALL RATII.
11.25 ,
JIDIDlS. RATIO.
56.68 ,
UCORD Ill.
PR01>DTr Ill.
1'IIOTO Ill.
11614
12175
3479
~
COIlPAItA8LS SALS . APAIlnmNT
~
N.Uar/r.oCATIOH I
Country Walk Apartment.
1400 Hillcreat Court . Slate Hill & Li.burn Road.
Lower All.n Town.hip
CUmberland County, PA
"
~
TAX ID NO,.
~5-00~0-059
OIlAH'l'OR.
Fred Shafer & Larry Salkin
I
OIlAH'1'BB.
JUchael Serluco
CONSIDBRATION.
$5,000,000
DATS or SAIdI.
01-1Wl-95
YllAR BUILT.
1987
LAND AIlllA.
8.0000 Acr..
HllXBBR or lINITS.
96
DSSCRIPTION.
Contemporary wood frame garden apartment building..
llDit futur.. includ. mni-blind., wa.h.r-dryer.,
deck/patio IIDd ..curity "Y.t.... Th. prop.rty ba. a
.wimming pool.
ANALYSIS or SALB
ONIT PRICIi.
$52,083
B.G.I.lI: 6.670
R.:t..t 10.331
JIXllIDlSB RATIO. 35.U ...
RBCORD :to: 11620
PROPBRTr %0. 12492
0VIDlALL RATS.
9.68 ...
COMPAAAIlLI SALI - APARTMINT
I
NAXB/LOCATION I Shanandoab Apa~taant.
105-107 Allan St~aat
lCach...ic.bu~lJ
CUaba~land County, PI.
TAX XD NO.. 18-23-0565-83
GRANTOR. Shanandoab LP
GRANTBIII. r~ank R. rnbtak
CONSXDIRATION. $2,400,000
DATIl 01' SALB. 29'DIC-94
YIIlAR DUXLTr 1991
NtlHIlIlR or llNXTS. 60
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
DIIISCRXPTXON:
Shanandoah Apa~tment. con.i.t. of two wood frame
building.. Tha garden unit. wara built in 1991. Tha
townhou.a unit. wan convartad to apartment. frOlll a
praviou. indu.trial u... Tha apartmant. vary widaly
in .iza a. a ra.ult. unit f.ature. includa wa.har
and dry.r., .acurity, .lactric forc. hot air and
cantral ai~-coDditioning and balconia.. Th.
con.id.ration on tha d..d raads $2,340,000 which i.
nat of buy.r'. brokar f.. of $60,000.
ARllLYSXS 01' SALB
llNXT PIUCIIl.
$40,000
11I.0.%.11:
6.456
N.X.II.
9.608
OVDALI. RAft.
10.41 ,
IIlXPIIlNSIIl RATXO r
32.80 III
UCORD %D. 11621
PROPIIlRTr %D. 120193
COMPAIlAJILI SALI - APAIlTMl!llT
~
NAIll/LOCATION.
Th. Pin..
301 N. progre.. Avenue
Suaqu.hanna Townahip
Dauphin County, PI.
,
TAX ID NO..
62-47-60
GRJIJITOR.
ITL-HP, Inc.
GIlANTBI.
New Pin.. A..ociat.., L.P.
CONSIDIRATION.
$5,700.000
DATI or SALI.
14-JAN-94
DBV/PAGI.
2154 / 331
.,
d
YBAR BUILT.
1970
CONDITION.
i'dr
LAND ARllA:
12.4300 Acr.a
J
NUllBIR or tlNITS:
236
DISCRIPTION.
Wood frame two-atory colonial building., all with
exterior entrance.. Units are total electric. Total
236 unita, Unit mix ia. 124 ona-b.droom/on.-bath, 84
two-b.droom/ona-bath. 16 two-badroom/l.5-bath and 12
thr88..bedroom units. There W8S minor deferred.
maintenance at time of sale.
ANALYSIS 01' SALI
tlNJ:T PRICI.
$24.153
I,G.I.IoI. 4,498
H.X.K: 9.828
BXPBNSI RATIO. 54.23 '"
RlCORD :rD. 8876
PROPIRTY :rD. 9768
PHOTO :rD. 2809
OVlRALL RATI.
10,18 '"
I
COIlPARABLB SALB - APARTMENT
NAHB/LOCATION.
Lindh.... Court
1101 Lindh.... Court
Upper Allen Town.hip
Cumberland County, PA
TAX 10 NO"
42-24-792-006
GRANTOR.
F.T, Realty Company
GRANTBB.
K.L,P. Bnterpri.e.
CONSIDBRATION.
$3,800,000
DATB OF SALB.
01-FEB-93
DBV/PAGE.
36C / 904
YEAR BUILT.
1987
CONDITION.
Good/Fair
troMBER OF UNITS. 90
DBSCRIPTION.
Two-.tory brick and .iding epartment complex
containing 90 one and two-bedroom apartments.
ANALYSIS OF SALB
UNIT PRICB.
$42,222
E.G.I.M: 7,100
N.I.Il. 10.989
BXPBNSB RATIO. 35,39 %
RBCORD 10. 8881
PROPBRTY ID. 9773
PHOTO 10. 2813
OVERALL RATB.
9.10 %
l:;91!PARA.I!!!!.. SA"!L:...M~T11IlNT
NAMIl/LOCATION.
Society Hill Apartments
2900 Lisburn Road
Lower Allen TOWllship
Cumberland County, PA
TAX ID NO. ,
13-10-258-005
GRANTOR.
N.L.A. 422, Inc.
GRANTBB,
National Properties, Inc.
CONSIDBRATION.
$4,000,000
DATB OF SALB.
01-JAN-93
DBV/PAGB,
36B / 1196
YEAR BUILT.
1988
CONDITION:
Good
BUILDING AREA:
129,438 Sq.Ft.
J
NUMBBR OF UNITS:
108
J
DESCRIPTION:
Three-story garden apartment complex with
108 units. One-bedroom units contain
feet; two-bedroom units contain two baths
square feet. Units are all-electric.
a total of
871 square
and 1,113
...,
...J
ANALYSIS OF SALB
SALB PRICB/Sq.,.t.: $30.90
(G.B,A.)
UNIT PRICB: $37,037
B.G.I.M: 5.490
N.I.M: 8.850
BXPBNSB RATIO: 37,96 '"
RBCORD ID: 8880
PROPBRTY ID: 9772
PHOTO ID: 2812
OVBRALL RATB: 11.30 '"
'* ..,...., .
It" ;--:j!'--''';l--'''O:-;;''j --;':r" ~ .
~...~..~" ".j .,,~; ,', ) ~. ..,: .~'. '."
. , .f.; . 7_; ,./_ "I ~, .~ ~.( ;
'"
.. .
."If".... ''''. ". ."......'1:-.:' .~'~
JI", '''' ~ -J~' . '....... ,j;f.",,~ (,.:- .... ~,;.,
. . ...,.~. r '1" ,
.,,';..' ~:;.:., ~.:.., ,:..~,~. .,;,.1' > '~!).
~ . > - 1" ',' '~'. ."
'.
r
~
. .
,"r
. C~r;lI~bn~daltl; 'qf:pen~Ylv~l;i~?~II'i'?':!j.
Department of State . .t;;.'., ')
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Certificate Numher
GA-000067-L
JUN 30 1999
I.~~ued 'I'll;
MARK ROBERT SHONBERG
4701 BAPTIST ROAD
SUITE 304
PIITSBURGH PA 15227
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AI'I'IUISER'S Ql'ALlfICA TlONS
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i\lark I{. Shonhcrl:. MAl
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POSITIO~
. Vice Prestdent: narone. Murtha. Shonberg & Associates, Inc.
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EDUCATlO:-;
. Graduate of University Ilf Pillsburgh; Bachelor of Science, School of Arts and Sciences
. Appraisal Instil ute Courses:
Appraisal Pnnciplcs
Valuation Proccdures
Capitalization Theory & Techniqucs (A and B)
Computcr Aided lnveslmenl Analysis
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Case Studies in Real Estate Valuation
Standards of Professional Practice
Report Writing and Valuation Analysis
Highest and Best Use
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SIATE_CERTIFlCATIOi'iS
. Pennsylvania:
Appraisal:
Brokcragc:
.. Delaware:
. Maryland:
.. ~Ii~higan:
. l'ew York:
. Ohio:
.. \Vest Virginia:
. Kenluck-y:
Certificate No. GA-000067-L
Certificate No. AB-051396-L
Certificate No. XIOOOOl91
Certificate No. 04-010230
Certificate No. 12-01-004238
Certificate No. 17076
Certificate No. 394700
Certificate No. 135
Pending
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I'ROEESSIO:'iAL_-\EFlLIATIOi'iS~_SERY.lCE
. Appraisal Institute: Admission and Review Committee Chair, 1991-
1993
Regional Review Committee Chair, 1995
National Publications Committee, 1994. Present
.
Urban Land Institute:
Steering Committee, 1994 - Present
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EXl'ERIEi'iCE
Over the last ten years Mr. Shonberg has performed a wide variety of appraisals addressing a diverse
spectrum of property types and for varying purposes. The majority of work has been for finance and asset
managemcnt purposes, althollgh a significant portion has been oriented toward tax appeal, eminent dornain,
divorce and bankruptcy proceedings. Mr. Shonberg has qualified as an expert witness before a variety of
tax assessment boards and before the Court of Common Pleas. Areas of specific expertise include health
care, multi-family and retail properties. Prior to association with Barone, Murtha, Shonberg & Associates.
l\-lr. Shonbcrg \\'35 engaged in commercial real estate sales.
Barone. Murtha. Shonberg & Associates, Inc.
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QU/ILlFlC/ITIONS OF KR/ST/ C, SM/T//
/58 //jgll/mld Road
York, PIt /7./03
17/7) 8-18.2065
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-
EXPERIENCE:
1995
Bennell Williams, /nc.lCampisi Appraisal Group, York, PA
Appraiser. Commercial Appraisal Department
Specializing in commercial appraisal work throughout Pennsylvania and
Maryland.
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1989 to 1994
Weinstein Appraisal Grol/p, York, PA
Associate Appraiser
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Associate Appraiser with regional commercialfmdusoial appraisal company
with broad regional experience. Specialization in income producing
properties, particularly distressed (REO) properties, shopping centers,
mobile home parks, office buildings, and larger apanment communities with
values ranging from $3 to $22 million. Responsible for appraisals of existing
and proposed outlet shopping centers with over 520,000 square feet of
leasable area.
1986 to 1989
Consolidated Capital, Atlanta, GA
Asset Manager and Staff Appraiser
,..,
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Asset manager, responsible for assisting the portfolio manager by
representing the owner's interests in two public funds controlling 4,590
apartment units and 354,082 square feet of office space with a total value in
excess of $200 million. Responsible for preliminary budget approval,
allocation of capital improvement dollars, assisting in negotiations regarding
propeny financing, and resolving ownership problems. Monitored
management performance.
o
As appraiser/analyst, studied and analyzed proposed investments of
syndication subsidiary, Consolidated Capital, and appraised new and existing
loan collaterai. Investment expertise included multifamily and office.
Traveled extensively, with broad national exposure.
EDUCATION: Bachelor of Ans Degree
University of Delaware, Newark, DE
CERTIFICATION: PA State Gen'l Certification #GA-000731-L
Barone. Murtha, Shonberg & Associates, Inc.
IN RE: BELLE TERRE,
IN THE COURT OF COMMON
PLEAS
OF CUMBERLAND COUNTY,
PENNSYLVANIA
Petitioner
v,
CUMBERLAND COUNTY BOARD
OF ASSESSMENT,
Respondent
NO, 98-6419 CIVIL TERM
CIVIL ACTION - LAW
STIPULATION AND JOINT MOTION FOR AGREED ORDER
AND NOW, this
day of
, 1999, it is hereby agreed and
stipulated between Petitioner, (Appellant) Belle Terre, by its attorney, David J. Kaplan,
Esquire; and Respondent, (Appellee), Cumberland County Board of Assessment
Appeals, by its attorney, Stephen D. Tiley, Esquire, Assistant Cumberland County
Solicitor, as follows:
1. Petitioner filed a Petition on Appeal from the Cumberland County Board
of Assessment Appeals on November 12, 1998 to which an Order fixing a date and
place for a hearing was entered on November 23, 1998. By Order dated December
23, 1998 the said hearing was continued to March 5,1999. By Order dated March 4,
1999 the said hearing was continued generally. The parties have now settled this
case.
2. The applicable year for which the above captioned assessment appeal
was filed is the calender year 1999.
3. The property which is the subject of this appeal is Cumberland County
Assessment Parcel No. 42-09-0545-006 and is known as Belle Terre Apartments. The
property is situate in Upper Allen Township, Cumberland County, Pennsylvania.
4. The parties stipulate that the total market value of the subject property as
Stipulation and Joint Motion for Agreed Order
Page 1 0(3
of the date the original petition to the Cumberland County Board of Assessment
Appeals was filed shall be fixed at $2,900,000.
5. The common level ratio applicable to this appeal for the 1999 tax year, as
certified by the State Tax Equalization Board on or before July 1, 1998, is 6.8%.
Applying the common level ratio to the total market value of the subject property results
in its lawful total assessment of being $197,200. The common level ratio varies by
more than 15% from the Cumberland County predetermined ratio, which is 25% and
therefore the common level ratio is applicable to this appeal and the assessment shall
be fixed at the said $197,200.
6. The Cumberland County Assessor's Office shall allocate the total
assessment between land and improvements as provided by law and the procedures
of the Cumberland County Assessment Office.
7. The new assessment shall be effective as of January 1,1999, and will be
implemented for 1999 county and municipal real estate taxes and implemented for
1999-2000 school real estate taxes.
8. The Cumberland County Assessment Office shall promptly notify the
county and municipal taxing bodies of the change in assessment, and instruct the
taxing bodies to make any appropriate refunds.
9. Each party to this appeal shall bear its own costs.
10. The Court Is requested to enter the proposed Order attached hereto.
11 . The undersigned Attorneys each hereby warrants to the other and to the
parties and to the Court that he has reviewed this Settlement Stipulation with his client
or clients and that he has specifically been authorized to enter into this Settlement
Stipulation by his client or clients.
.
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Stipulation and Joint Motion for Agreed Order
Page 2 of 3
Respectfully Submitted,
Date: ft,,-/ ii/1m
/_~ETITIONE~, Belir'
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By: . ~a~(a~PI~SqUire -----
Attorney for Petitioner
655 Third Avenue, 22nd Floor
New York, New York 10017
212 681-6500
PA Supreme Court 10 No. 69313
RESPONDENT, CUMBERLAND COUNTY
BOARD OF ASSESSMENT APPEALS
Date: J:>/,ry 6, /YY'/'
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St phen D. Tiley, Esquire
Assistant Cumberland County Solicitor
Attorney for Respondent
5 South Hanover Street
Carlisle, PA 17013
717 243-5838
By:
Stipulation and Joint Motion for Agraed Order
Page 3 013