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HomeMy WebLinkAbout98-06419 ~ ,~ ~ ~ ~ ct' .. .... II: ~.. II) II '\I t ..., :l Irl ~.. <:t WI" ,. 0 ~ ~ ~1 ~ ........',. ~'.~'.^ ~.'" ~~~, "',\;). "'~~~, ',~ I, \ \ I; ! .-' ,-:. " J ~__1 l~"'" " , 1"_ ! ~ ," i " L:' " , 1 ,t/: ~ ,~ lo ,~,.- :!'f , L~ Appcllanl. No '" ' (,I 'II-i ("I 'r j ",.., '., 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 ."\ . ",;", :~~ Vd));~~;'L;\N:'LI-_u------- 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 mlO,OX7 2 o Exhibit A " '... , 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 ') ~-<( B' 'Y", .'," '"I I ) ,-.- ' ,r - '. (, '.-. .- 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 , "" -, 10','/0 Dated: f,-I' "" -'U' , -'/ ,.,. $ -I .,;' /1 7"~ ~Y91" ,,: / > '., t' Stephen D, Tiley, Esquire Assistant Cumberland County Solicitor 5 South Hanover Street Carlisle, PA 17013 (717) 243-5838 f I:' /'/ Attorney I.D. No.: 32318 ;'(,t ~2 '\ , ...., , I " ., -n ) ;:., i ) _:~ ,-J , ~ .,~ 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 .' 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 C'JN.","''''''';~''J.. I 2/ ~ '1-/1 R . J'~)' ':/ :rlm .. '\ ~\~\~ '1,\", ~~\, ~ ~,~~\\~ ~\\\\\~ ,~ ,,~~\ " " " }Jr~- fyi/ICj APPRAISAL OF REAL ESTATE Belle Terre Apartments Geneva Drive Upper Allen Township Cumberland County, Pennsylvania il'. "'" ~ = PREPARED FOR Octagon Associates 613 A Geneva Drive Mechanicsburg, Pennsylvania 17055 n May 4, 1998 98-6523 , 11 iii ":--,'; ,;) -"~ IJ L 'J'- i '.,~ l.~'J -n :''1 ;.,] o '71 "";j ~.;r~~ ,) <~( -,:"Ti .,-:n ~'.) ,") drn '" ~ '< C) """D ....:: r:- ~ I I I I I I I a D c ~ c ~ = u u u I. Euelltlve SlImmlll')' 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 1 Barone, Murtha, Shonberg & Associates, Ine, n , , , , , 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, ~J 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. ~ ~ ~ ~ u l~iC::l1 nrR:~1 F",:u", Tenth Edition; Appr.1isal Institute, 875 North Michigan Avenue. Chh::ago, Illinois 60611...1980; 1992, 2 Barone. Murtha, Shooberg & Associates, Ioe, .., INTRODUCTION - . i \,j 1 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: ., ,,J ,,. a, Buyer and seller are typically motivated, ., ,.j b, Both parties are wcll informed or well advised and each acting in what they consider their own best interest, ., ,.1 c, 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, 3 Barone, Murtha, Shonberg & Associates, Ine, ~ , , , n , 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, ~ 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, 4 Barone, Murtha, Shonberg & Associates, Ine, a INTRODUCTION n n n ~ ~ ~ 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, 5 Barone, Murtha, Shonberg & Assoeiates, [nc, . ~ ~ ~ n n INTRODUCfION VIII, GenerllLLlmlling..Condltlons This appraisal report has been made subject to the following general limiting conditions: = = = = = U ~ ~ U . 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, 5 Barone, Murtha, Shonberg & Associates, Ine, -.- .~..-' - t.; ');~. J. -,,' ~/ '1.....,. .' .. ~ (tole ,:\\111\"1 n 'n AREA DATA n 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, ~ 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 C Q ~ C Q ~ U U U U 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 8 Barone, Murtha, Shonberg & Assoeiates, [ne, i\' ;" , r f~ H ~ n 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 Pr.n-Idn o c c c c c ~ ~ m I I I I AiJpoxts 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 ~ o Indu.trial . Residential . Commercial . Undeveloped 9 Barone. Murtha, Shonberg & Associates, Inc, n AREA DATA ~ ! I 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, 10 Barone, Murtha, Shonberg & Associates, Ine, n ~ AREA DATA VII. EmplQymrnl Historical unemployment levels are presented as follows: o Cum b.,l.nd _ Unlt.d 8te... _ P.nnevtv.nl. 1.....1... "'.."ue. Av.'.... 1'Mo) /r-- -- -- o .. DO 7 DO .. DO .. DO ".00 3.00 2 DO , DO ODD 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: ~ ProporUonlt. Employmlnt.. Cumberland County ~ r:--1 ,---i-'-=. ' 7.e~ . : 't:Ml1 ~...... s.s~ I'KI le.:Ml1 1102~ I 302~ ;(~ G ~ m o .........-. . c.......... . .-...... . 1'r'npCll'tdcNCommWllcalcMlnu . R.1III1I\d Wild..... Trlde . FINne., mtnnu and It,.. EIlII' . leMus o ."'........... . Ccnaudcn . ............. . TtInIclcrtI'oNC_.tftc.'~" . RttalandWl'ldahdt . fNnc., h&nnce InCI R.. &rail .8ftvlUI I I Harrisburg is the state capital and, as such, govemment jobs on the state level are a major economic factor, 11." l 'iI\... '" ';'" >:.:. , I II ~: , Barone. Murtha, Shonberg & Associates, Ine, hi~ Neighborhood Map ~ ~~ t ;' , I " I .' " ./:' .' ....H~n... :,' . ' , ' " , , 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, .. (:I 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 ~ ~ ~ ~ U U U U 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 12 Barone, Murtha, Shonberg & Associates, Ine, I I I I I I I I I I I I I I I m ~ ~ u 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, ,,' 13 Barone, Murtha, Shonberg & Associates, [ne, ., j l .-.... j , j i_ - :..I a ] j TI ]1 rl ',,,, C.l " ; :~ !.t, "" (] ~ .............~.. ( Tax Map Location ) [ 'II :1. W n , ~ , ~ 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. 14 Barone, Murtha, Shonberg & Associates, Ine, .. L~ ~;J ). , ~. : .1 -' ' ..... ..'- . ~-:. i? ~' I . ---_to ! . ~ , .. -\t~ -.W s . ....... . S J il ~ ~ Co) If\ "'\ J:I c r"~ d ;,~...:.. ..' ~ rn m ~ 9 I FLOOR PLAN I ~ , " ~ , , , j :J 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, '1 , ~':t 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: ~, '.1 :1 t<l 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 J J - Total/Avera e 1143 33.264 51 r1 t.I 15 Barone, Murtha, Shonberg & Assoeiates, Ine, I ' I FLOOR PLAN I I I I I I I I ~ I ... . I I I I I I I I I I I ~ 'I PROPERTY DATA The following table presents the unit mix within each individual building: ... I I" 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: '"'1 ",' :J 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, ~,~ . d - 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, i~ .J 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. J 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: J J 16 Barone, Murtha, Shonberg & Associates, Ine, 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 ~ t:. 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, c o 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 o o c u c 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, c 18 Barone, Murtha, Shonberg & Associates, Ine. n n n m m I m I I I I I I I I I I I I L IIlGllEST Ai."I/D.BEST.USE .\ 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 . 'I' School Single family dwelling 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, ., 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, 20 Barone, Murtha, Shonberg & Associates, Ine, n m I I I I I I I I - I I I II I il II II UIGllEST.A..'liDBEST_USE b ~~. 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, ,. " to..., !' 21 Barone, Murtha, Shonberg & Assoeiates, Ine. ~ n n A1!.J.>RAISAl.J.\1ETHOnOLO_GY ~ I q 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, ;'1 .J 22 Barone, Murtha, Shonberg & Assoeiates, Ine, .. j "" "" i j ... J . n w INCO:'IE APPROACH TO VALUE 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 24 Barone. Murtha. Shonberg & Assoeiates, Ine, Ie j ~ , Ie ',I II! ;/ ~ .. ~,J ,. ! INCOME APPROACU TO VALUE TwO.Dcdroom.llllll Comp.radn Iltm J Sub)... J Llndh.m Court I Odord M.r.tr J Weslf)"ark J Dttbrook MIDlr - 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 $525 SSSO 5515 ,. .. Within the General Characteristics category adjustments are required for condinon, lIIUt SIZe, and the availablhty u Barone, Murtha, Shonberg & Associates, Ine, n ~ ~ ~ :J :J INCOME APPROACH TO Y ALUE feet, and then reflect" a rate of$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, c c m m I I I I I I I 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), 26 Barone, Murtha, Shonberg & Associates, Ine, (J ~ , , ~ ~ , ~...." ~ :a . HH,1 . ! .. ;; . ! .::. -:.!" ~ - III 81; . I; III ~ . : :.: ~ :!:.= ~;I I .. all II II .. :u a;; aa :;a~ ~ :; J~ ;;3 :l 3 J~ :I; , :-' ~ ~ ~a ~ If. Ma h!lMa~ ,. '. 'J ~; . -. ~ Ii" ~ . u ~i ~~H~~i ~ -;, ~. ~ ;;a ~~a"~::i~ ;q t! II a' a' , . ;; ::I ......... . M. II ... ~ , , I 2 I . . . . . -/ l . a UHd'~" . ! .. cl . ! ..:=."" = "II; cl . ill - ill $:~;st!::;~ '~. I; 0 ;l :: ; .. II Ii II .. ~ St;;StSt;;a~ M J~ ;;3 Ii .. J~ -- fl'!-:'!-' .. II aa u .,.. a . -:ll- a of M .. .. ~ H li~ "".,!......-... . n r:: niRfi:;E a ., fI ,. fl.... ;; =~ ;;::I;;a -- . II :ii S~~a~~a " dl .. .. II , , , . - , r'r:Hiq I . 0 , 0 .. .. ...., ~-. :: ~ .. ~ ~ .;:!;......~""i ~ ill 8. a . '" ~~ ~' 1lf' ~ ~ 11 . ~ .. all II II .. llIl i;istSt;;st:i J~ ;;;1 Ii .. J~ 00 r; ~i l' a 2:0 3 . II :;,~ :It..:':;;~;;a ; of of d n 1)1 ~~ f7~11!'8E1(. ! : q ill ~. ~~U~H . ~~t:;;::I;;a .. ...,5 i "' cl :ll~ . .....,CJo.....,..... :::l::l:':"":,:,;;a ::s .B .B j J ,. ~~ ~IJ 1 to! tI -'- .. J a "01 0 1a IJ 1a >>1; JI ~ AI JI [0 j i 0 1 h ~~ Je a: 4' u . ha lUlllHI . h~ ..::I in.;:.!'''' I j 0 I ~_w Idllli 0 ~ I P !~ .. ~l:-'J.hj]E 'j ~ ~ ,.. ':Z ~ IdJH .. - ~~lJJ!ns h~ ~Jj :~Hw w ;am:g . ~ , !i. ii:ii:ii; 0 >: 0 ,. .. - INCOME.APPROACH-TO_V-ALUE 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 o Laundry Income: Pet Rent: ~ ~ Potential Gross Income: J 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, :J 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, J ~ U :J U W 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~. J Fl.'.... ~ 27 Barone, Murtha, Shonberg & Assoeiales, Ine, "'" , 11II ; I ~ 3, I . ,J j j ,oJ J' 1':1 l.~1i ~ o o 1J D m I I Ii'iCOME APPROACH TO Y ALL'E 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 Barone, Murtha. Shonberg & Assoeiates, Ine, ~ , o o o o C D m m I I I I I 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, . i InslII:aIl(:c ExpertSe Comes Camp Man J.R.E.M. Raale SUbJedl!196 3,25% 5173 $O.JO SabJ..,I991 1,71% 590 1.-'.: ~'.\ \". 'j.;,': j;;,,; ~:.;:: )',;"", %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, t' 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 Barone, Murtha, Shonberg & Assoeiates, Ine, ~ o o ~ I I I I . I ~ . I:\'CO~JE APPROACU TO Y A!.UE . tl , capitaliz:llion rOle, ThollaClor, which is a function of the mllloge rate and the common level ralio, is calculated as follows: ., 'I 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 Barone, Murtha, Shonberg & Assoeiates, Inc, 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 i .., , ~ , H J~ J j:,; ~ .., "j /.01 J 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 Barone. Murtha, Shonberg & Associates, Ine, n n a m I I I I I I I I I I I I I I I 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, .~ I 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% ... ~ ,{~ " ,~ Ii 'I {~ ~.~.:. , ~#j; ,~ Wi ! ~,i!!' 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 Barone, Murtha, Shonberg & Associates, Inc, " n M o ~ ~ ~ o ~ c o o o u ~ u u u m ." 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 Barone, Murtha, Shonberg & Associates, Inc, I I I I I I I I I I I I I I I I I I II 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, , ...... '1,,,"" i;' :~, t: ~~ ( ;~:!. ,1,;'1 :;U!. '~ '(<"Ii{ ~ ~J: .~ 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 Barone. Murtha, Shonberg & Assoeiates, Ine, " 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, c ~ ~ I I I I I 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 36 Barone, Murtha, Shonberg & Assoeiates, Inc, n o o c ~ ~ m . I I I I I I I 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 38 Barone, Murtha, Shonberg & Associates, Ine, n lit ., PHOTOGRAPHS OF THE slm IECT PROPF.RTY j :J o o D D m I I I I I ELEVATIONS OF THE SUBJECT. Barone, ~llIrtha, Shonberg & Associates, Ine, I I I I I I I I ~ ~ ~ U D D D D U U D ~ V,! . ~' ~ 2 , , TYPICAL INTERIOR VIEWS OF THE SUBJECT PROPERTY. Baron~, Murtha, Shonb~rg & Associat~s, Inc, M ., , I ~ u d o o c c ~ m :w.,., ,I ~ I ... " .. ..~ r'1;~ .": " "'.1 , :: ..'t"I. : f;~r'~ ~I :i = ;; I: '. . ~ ., jZ ,,_ j~ ?~''f .f "'.... - ....- -'" j. .U rl::f:.8IlJr,.1l . ~ .. ., 'i~-: 1,& ;~-,:~~ _n,,1 ....,... ;::::; ~~ ..: '" ~'-'~~ w :~c'~ Ot;F.f'~lpt~rVir . ......... -' z CO .. IDIlla lhtb2ntur~, 31:.r- doy 0/ ~a..... '''''r 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, A N D I 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' -., n ~ ~~i: ,.: &1,..,,4" I......:.;.~..,\ ;a.a.'ff"t.T" or l'fWN\YI.VAtH^ ",A.'lIlt'" II" ncyt;NUl? 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 ..., .----J 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 lJ 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 _. I I - I 1 , 1 I I 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. h ,.,J b b b U I~ 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 " j , .., j ,I NAlIIl/toOCAT%ONI .. I ~.. t TAX %0 NO. I aRAIlTORI , ~ I t~ j aRAIlTD . CONS%DIlRAT%ON. DATIl or lIA%oIr. i o I b b IU I~ 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 " 1 .., ';.'1'1 '., l 11 :~I ~- I if, i' '1 -. '''"l- I ..J .'.<"1 I , - , 1 ..J VI , ... I I ...J . ' . ... .. , .' ... '. ":,,-,.. t:: ' '.; ,I ;."... ,'..! ~". "',;.' .' ,.,.~ '~'J~' Il'~""" '~:. ," :;rfJ"4'.J"'~.;J'" i\.. ~...~liL ~..,". :,1' ..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>~~:'<:~:,:~""< :/~'\'" : ,~ fl{RAL'~PR!lSer? . ",I,,:! :t t ...:." {..~.,....y....... '\ I ::.~, '~.'~'. ~':> ~ \ .I:'" i ';, ' ~. ~) .Date . ,',;,. . IssDell --""'\ ..... . "If ;,' 9'~1:,>,_,__~1!:~?:0997 ::!i '* .,-", ..-}'1'! tOo',) ~', ',i f,'''-'., " ;....~ t. :'~ " " , ~. ;"";:"'10 ,:,. ...., l.tt' ~ .)' . ~ :... ~". . . " ., ..' "..., ,~ "'. JUN 30 1999 Certificate Number Expires I . GA-000067-L Issued To: ) i J. MARK ROBERT SHONBERG 4701 BAPTIST ROAD SUITE 304 PlTISBURGH PA 15227 < ., oJ. c,-' .Jit...~;.,.W... 'iii...~" .._.....;.....,......,_...Io.,.II.I._'I.'1.Io..,....:I.'I........I.r.~....'111:1:........ ....' - ~.."!!'I". u..-=-. '"""" ~-~ 'JIil*, -Ji.''N!I. ~. .., .., ~. '. , Cem6ca . '.' . , .rim " " ., . ..... .. .~ ,~.: \ , " ,:;.' .... , .' ..... .... . ~.,: 4 ',' IlIucd To: " ~, " " ., , KRIST! ,Co.WSLL.SMi\H .158 1{IOHJ.{At'~M~ . YOR&'. '" PA.I?403' .~ /' . ".,". .. "'. , " .~ ,,;',/' ~'~"."";I.l ~. ~ ;'1 ....;. ~ .: . , .' \~.:...~. ,.' . ~,~,;.J', :. " ..:......../ :.~'-::..~) u 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 o o o D U U ~ I 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 ..... ; c , " '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 ;; , /f ff,. '{l " '" IIlIO.OX7 ~ ~ \'\~ ,\~ \ \\ ' ~ I " \, \:-: '" .~~ \ I ~ ~ n ~ ~ c c C D D ~ ~ I I I I I I 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 D U U U I I I I I I 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 u ~ I I I I I I I 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 i ,~ 4 Barone, Murtha, Shonberg & Associates, Inc, I I I I I I I. i 1\ -, 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, 5 ~ Barone, Murtha, Shonherg & Associates, lnc, 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, 6 Baronc, Murtha, Shonbcrg & Associatcs, Ine, - Regional Map Wo"""'o /' '1'; \~'h flun Gw, Bu;'alo WIlAOf PIU<j i l \/.. ,.,_,.,,, ;?/ ~Malamoras ,/ . <. ., ('. j POWf'lUIVAllflly M k .. 'I'" M-on"t""'.-1Io " :. MannaVJlle C iii ;)4 , /Ilk 'Im",',l I~(. l' mlt)' Hall ~ .,',/../.::.~~wBloom'leld "\1.. ,!~JI.4~", " ......., DosnGI"n '1./. ,.., . V-\.:14' ~ ~ \.. ~"4l \~ :'\"'-" ~" .C'" nc~nnon, f (. €lIrmdale FOlge Whlte Spong UII"~' ,-~.~ ", " I l I G \. Mkkl Cornor . H., 1 ~ ' ,.",1',< \., SIan" G19" nitll" Village" ""~ die OfmllllY , .. . .> . , 14111,('1"'" ;", _,.. '\ .\ltlallldl'll'l. / SIll'" \KI ~lghll ..,.../"", ,// O.lIvII'. \.~ Co --.,.Daup~~~,,// .""" <;,"'" 1 ,,,10 Suo"I,', lito /' ,FolhngSpnng '--~~ffi~IIY"" ,..... .:><r{/y~ / ~- .w-"";..... "..., '0, old Mli~svllle .~ln9Iesto~n' J \:' omg ".'- \~ /"'1 Sk I ..... t-:~f< \ ". ;/ . "n' ]9......~.........-" J.... -~ ,i " Sherrnans Dale ,............. ....,,"- ", ~.#'-'..-==j' \, Honn",! ":' .\c..,.........).!l~.."...........-.._..... 1 ; \ Jf'~onia. '\ ."~ Slil"=(i,IIU.:IIlIIII~SIllIlI~f 171'. ~'11' .," 23 2~~~.. I '\ H", ! r1=r.. . r" )'... ) 0 1."01 nl'lI'l.. \ . .' .. . ,,;~..........!:onnellytown __~,_._._".....,..f ..,......,""~""~. no ~ l Hoe~fler5lov:t , r .,-,.._.., , , .,...JJ, W olrvlew'.Har.rllltiurg!?9 " ," k. ".....~~.....,""'j.;:)~'tSle.sprlngs JB~~GOodHOpe '\, ~ ':<'.~J.(c~l;nllll~l:lIl. Hummelstown l~-' ~ ....<~",..-,.,...,. ~11I1l\\ ~h '1111.. Wormleysburg 'J.j \.\.;i n" I ~~j78./'Pl ~1l1~"ew--='1'...).. ,: . / . Sh;llI;lll',UI.. I' '~~.-, ,:r::? ..- . Nrtl\ .........1.. , I Caprivi ogeSlown~11~'" C . II '" ~ 1441).. ,~.. \)walaraCresl . tll. I . { ~" amp.. ,/~ \, /~' '~ : ".. I r \ 'MIddlesex A# 11141 I 1 . ... ..-_ L .1: ............ .' T i '.. I ' r,',. , { Helk Iwo^l'iII'IIICIII'1 \' '19"', .Sl~elto!l. '''\, C~flon' ,":, "'. New Kmgsl!.>wn ,)'''', "?r'c"'..1 ' ,,0(:, B,ess~ .'}, ~\.=,=<: t, (~~ 114 ! ,,,..-:..F. ".-' .#' Allendale :; ~".....~ l~ 0....-11..... I So\\. lilt l'lul.. ... ". t I" S"ll"~r \1IlIS111 ':ll1l.rlllll'lll~tj"'Mechanicsl::i rg ..~... .......~" : "'" , . "'I ar IS' e ,,--;.\./ ,.~ ''1M h R n 1210l, \ ; :~,"~."nT.n............- -:':".7.' j6.,......... "'"....._..d..'..'~ Tllndl~ S rln'f;jr'Ro ( 1 '~O S U Middl own--... .~~,.... ~~1,) ~ 13"" ~~~,15 .64100_. lO9'ustPolnt \ II l' '" ~Roya"onl~~~~~L_. . ..' ~';~/" , ~ ""- . i:: J r.Ml Allen ,.~262l..1y... 16 \ ~ ....-."""'" , 4r / Bonny BrooR.... '..... // \ Nanhlly...... (SunChes .\\. - .....,..'_.....................~Plalnrleld \ ~ / ....... .S: rchlown If \,..-" ",_~114, ~~~"t: ,.-'\ , (','i i /. . .. . ~\)1'1l1~ lirO\'~ 1'.111.. '1' Grantham llSbur,n /f\\; yot'umtowh... t ~..... '34'. ~" ,,,'. A ~ "" ~' , j ~ I Coyle............................. 1741" WIRiarns Grove- ~ 1 JQ21 ,/1392\ 11 ;"..-'''-' ! 1441 : !. "'"" ,.,. ...... . ..\ 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 I \ { .......... .t'~I~II<.'rc'l $ 1,; Peach Glen Deardorffs MIII\ Benedlcls \ Wilt' (II II . 'EmigSVille'-. · ' . . ~ Kralllown \ / oundlown _ ~ I 1 jldav&lle "Bermudian Dellers MIll / .,~ . 1,1 kSprings !~94' Mlllll(lIll 'cc"'HarmonYd'tove..~~2111~38~ li41~r ~.Gardners 'rtlllldhm('/\'d '.... UIIIIIICI. ~D'over . /f t \. '-.' . I ........ \\1'0\\1\ J OUS 10. Plea I .', . 11~1 "Popla}'" ~ ~ ' + Aspers \ ,Davldsburg ',.,~.: ....S'hlloh ~"l' :.'" , ! + I I \ Welgelstown'" ~ . nr~l t-' I I j . ~~ If P"k ~.. ",iT i... tFtoradale ' Big Mountain "Adm,.. d''"-",,, .." s. < %" Fordvitle Taxvllle' We~t Vqj~fp;lIn .n~ 124 !J~i Guernsey . "",,"""""~"I'''''''2J4~.f~~:PO\I.S ~. .......,.........-:.J.oy..\~. 1, \.~l~ru ! ~ .........................,'Heldfersburg // .,.,....,'.....\.. ",.,......,.,.l 234 (~ ".................,,"'........., iJ4 ("...... ((/ \ . t.~ Violet . jN/' ,15, \Hamp'\On. i,i'....,'~..",,_,..N Thomasl1\'ile t, wYn\l~am.. I 1'....'....:-.,.. f ." f:!. --...d:o. - \ ' ,I.', [ : '.,.., r /\ ' ~ la.8oll.p->, ...... ,11'1'l.7Ikl'rolm~ S'r<'~I.\II,,~11S' .c f C _ 1.1l.61 !6161 \ ' . '., u ('. ,-.. ,. ,~. 'Q4' 19~ ,~..... ") " '1'152' ......"'./,. I'-armers ~ ~. 2' ;,..,,w' .- Wlt~"~'<VlUf!l ),}."; - .~I ,.,./-". ,....." ~~ , ,- ,..-' ..':~ ;"......, 'f'"~ ~ ,< ,\,0" d.... :j, 1 I AREA DATA - , , I "" j 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, "" ,J 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: ~ {,,;4 j 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. :J 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 8 Barone, Murtha, Shonberg & Associates, [nc, I .",j J J J o n u I I I I I I I 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 9 Barone, Murtha, Shonberg & Associates, lnc, - ,\/{EA DATA ... .., 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, 10 Barone, Murtha, Shonherg & Associates. Inc, ~!hborhOod Map \...-1-.... . ....,.J Oi \ ./~:/ //~ ~~/ 'I> ..~ 0) ~ c} 1~ Ii.! I ... . .' . .,' . .' . ..' . AREA DATA 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 12 Barone. Murtha. Shonberg & Associates, Inc. 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. \3 Barone. Murtha. Shonberg & Associates, Inc. .-~. .. . ,..", \>t - l~\ - ;;Jj - I . " - ',':' . ~ ... '," I' .' .. f .... - .. . I. I I , ; lIMl..........._~.... [ Tax Map Location ) ~ I'ROI'ERTY DATA ., 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. i , c,J 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. I i Utilities Public utilll,. serviccs availablc to thc sitc are as follows: I.J [ ~ I I I I I I 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. 14 Barone, Murtha, Shonberg & Associates, Inc. ~ .. ~? Lv~ I l1ii': =- e: -,; "'" .;.~~ =:: . .. at; . . tj 10 . ~~j '\. I .:.-::.. ~ , -- :" I !:':""". ' .. ....- . ; ~~ . I I FLOOR PLAN , - .- ,\j ~ ~ ~ [ "'-~/,! -w l"1 /',1 .." s . . s .....' m ~ G ~ o ~ n.' u ~ ~ ~ rn Co) Cf\ ""\ III r" I. ..... t""" : i ..... ~1 oW ..., PROPERTY DATA 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. - , J 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. -.i 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: -: ~ 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 .Vi , Tot.UAnra e 88 1.143 51.264 .j 15 Barone. Murtha. Shonberg & Associates, Inc. o ,. sf . -0 ~8 . . i ...= -e - -. :;:-a IG.i -.. - ] g ~ n h lr1 L . ~ /: O-ill ~o DE" Dr o Oi~ B I s~ I FLOOR PLAN I w ~ ... . g ill 8 ~ ~ m rl U I , ,. i ~ ~ PROPERTY DATA -. 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 i .1 6110 s 6 II 6IJ/\ S 6 II i 61.30 S 6 II I .... Tutal 40 48 88 The individual unit layouts are characterized as follows: -, I ..J 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. -1 I - .. 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 . , 16 Barone. Murtha, Shonberg & Associates, Inc. n [ n u u u U IJ [; IJ U ~ ~ I I] I I ~ PROPERTY DATA 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 17 Barone. Murtha, Shonberg & Associates, Inc. .., 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. .. - 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 .... 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. ~ I J ~ no\ 18 Barone. Murtha, Shonberg & Associates, Inc. t-1 r: t; ["' r [; [: ^' 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: 19 Barone. Murtha, Shonberg & Associates, Inc. I ., -, .1 ".1 -, 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. 20 Barone. MurtlHl, Shonberg & Assoeiales, Inc. - . .-- r , .". ~~~ n t 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. , ~ 21 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. U I I I I I I 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. 22 Barone. Murtha, Shonberg & Associates, Inc. ,... c ~ I I I I I 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 ". 24 Barone. Murtha, Shonberg & Associates, Inc. .., I ., i J 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 Barone. Murtha. Shonberg & Associates, Inc. :? ~ ~ ~~ loa J.l l . J ~ ~ ~! ~a .- w . ~ ~ p ~ ~! ~ ~ H i~ :0 . ~ ~ 8~ all ~~ ~~ ~~ n q. ~ ~ i.il' 00 l..i; ~ I '" h ~ 'j ;;:;1 H . ~ . ~~=g ~ S j ~ ~ HE J~ Z ~ i'PHi~ ~ ~l~d,u.JG il ~ge~C!1!1!l~ ~ ~'5...J co: ~ ii: ii: a: la.I 0 , ! , ~ . ; I ~ II S , ! . -. ~ $:" ~ . :1:: :1:.....0;: ~ ;::: ""'....,. ......a a , ! , I o ct & II ~ 3 II II a a ~.!....~-", .. ..... ,~. IO" 'ii ::;:.... ;;:i;;~ a , ~ t t 8 8 .. ~ 8 ~ II II a . ; ;; ~, 1'" a 2 ~ 3 ; ~:"U;;~;;a ti j j ~e :;;i::! =z ~'lJ ~~ I S~.:s ~ ~ v ~=~ ':: ~ dJH'~ e l.!~ J. ~ ~ ;. 'l w , . ~ ~ J~ l U 'l w w ~ ~ H :t . w i~ H :::3 ::ig - 0 w w ~ ~ ~~ SIll J~ J: 00 l..i; ~ ~- .,~ ;ll~ q H1. J ~ . ... '::I ~lIa ~ s i ~ il8 , ~ ~ "'oIJ.!:j j lJ HfthH'" ~ilQ~ ="9 -w~uh.!l.J~ S'dng,~ ~ !~Lj co: Ii! a:: ii: 0: 10I .. , ! B~~i:H ~ .:,'-:.:~~ - ec :u , .. ~ .. r, ~ ; . a~'a",~ :i ~~ ~a ~i . :-' 0:" ~ = m. h!l~.ll~i1 ; ~~~~~~~ ~ .,... :I. I . ".. _ ::1$""':';;5 a r ~ ! . . . . .., t HHf'~;; , >O=....=~~ ri ~ ~ ~;"d;~!~t.: ;a a;;~a;:;a~ :1 ..!...~-.... ... :!" ... III... i; ;<il. ;;~;;a a ~~Rn=~~ ! ~;g~~~a g t 8 ~ . . . . . . t. "I- ~~~~!;!:~ ::l .:!..,n~...~ ~ ~' r1!1 ~:s Yl_ = SI:iSl'~'::i ~ ;; ~-,:'" a E lo:! .. aL.t.:;;~;ja ~ ..,,"-~~ . !!~qo:g~~ q :":ri;r;~:;::!s ~ .......... .......a .. j j ~~ :ija t1 ~e ~ 0 i:i ,~ j 2 11'='" _ t:J,.. ~ ~ ~ ~ c rri il~ f ~ hdn~ ~ , . - .. . I ; I .. . I .., " .. . ~ ... . . ""-I ... .... ~ .1 ~ ! lJ o :'" ~. " ~") ( w tr i: - r' w , , 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. ., "j IneomcSIIIIlIIIlII")' Summing the various revenue sources results in a potential gross income calculation as follows: .., ,j ] .., ,.j .., J .., i ... ..., I -.i "1 I ..J ~1 J ] ., ~ ~ 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 - 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 nI. nI. SO.7l I ."." 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. - , , , ,~ ." i ..,;~ , .J 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. ,_OJ - - , i I J J ] l ..J -, I _J .-, -, .: : ...! ^'l i ...J 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 ..., 1 -! 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. -, I .... 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. 30 Barone. l'vlunha. Shonberg & Associates. Inc. ~ - , i "i J o D D U ~ I I I I I I I 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: 31 Barone. Murtha, Shonberg & Associates, Inc. J J o u U I I I I I I:"/COME APPROACH TO VALUE 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. 32 Barone. Murtha. Shonberg & Associates, Inc. ~ I I I I I I I I I I I I I I I .... ! 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. 't"; :: ~ 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 Barone. Murtha, Shonberg & Associates. Inc. 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 ---'-, ! Barone. 1'v1urtha. Shonberg & Associates, Inc. I:'I'COME APPROACH TO YALUE - ..1 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%. - .., 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. 35 Barone. Murtha, Shonberg & Associates, Inc. ..., '1 I I I I I S.\LES COMPAJUSON APPROACH 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 36 Barone. Murlha. Shonberg & Associates, Inc. ... J J o o u u u I I I I I I I SALES COMPARISON APPROACH 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 37 Barone. Murtha. Shonberg & Associates, Inc. ....... RECONCILIATION -; ; ; .... The purl'OSC ollhis report IS to cstllnatc the markct value of the Fec Simple interest in the property located and known as: ., I j 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 38 Barone. Murtha. Shonberg & Associates, Inc. I ~W'''': ,I ~ , '" " .- ; , .4 .').... .. ~ ".. "') . ~') :. :: c.(i. : !5/1"!! ~a '. ~ " , :. =: ~ ,.1: P' ,:: ;~ ?~'o( ~, .. "" ~ 1.- ~ . ~ .... I':....n U. .~.:~,,: -;,...... ...!~';' ;:::; -=:~.'~ \I'l ';,.,~,"! W ~~t.~ Ft,:E-BIlIPI,E V&F.IJ~lpii!di.. ... 004"'~ . ~ ,.. -le i. .. I III1 C W11hi 3Jl1brnturr, 31 :, r- day 0/ pa..... 'c~ r 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' . 'It ,^, "tar 01 our Lo,d 0,., I ot 342B Lisburn Road, I A N D Allen J BELLE TERRE, A PennsylvAniA limitsd pArtnership> 301 South Street, State ColleCJc, Centre County, PennsylvaniA, Grantee, I I I ',I tile I("Culltl/JQJ". ttJUnrlHlrll, ,/,111" 11,1.." ",il1/,I1" iea ufll.e /f,d /1(11", /111'111111 i/l t'lm,iJualiu" "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, t ,I I, I , ! i J'I! f.' !~ Ii f,,:~ , L v: F' ~E:' I I I .!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: I I 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. 'i; I I Ii << ~.; I ;'. I i~ i}; I 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'" ,J..I. .. ... '6 . "- -~/"oJ '-7 ..(7.1;- ~'l/. 7ft:- o'e:;/:X-:?~A7I.'~"r.;..- "" ...J.../...... ~r ........ 'A.'.. V~" ..--. t;. . f. W.....= ,< ,....~ --. ~ ::'//l, .... J .... :....... c.. D'd. e.I. A,,, ~ e.....It. c.. Ohl. c.L A9L /l:5 /!Ur:;t..~~_f Schoql Oilt. Cumbo Co.,-ft.. .~ " .' I R~nvIP'n Pur 'lCI.). ~ ~~ \ ~~ , ZONE C I I I I I I I a a a m I I I I I I I I .'" 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) i - ; liil OC'.ion ASloelalt. . Ren' Roll (coo'd.) 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;;.'., ') Dureaunf f'rufe8siunal Alld OeclIp;tli".." Affninl P.O. nOA~~Z~~:~~~urg;'.r.~.I~05'2649'... / .;,;~.j'.Classitic.llion >" .<~ \ _:. . I:~~~~~AL: A))(>RA1~~;'~\ t.;. I :'.';,"'~ \~:. .. : "t;.., ,l\., J Cenifieat '"-D\~e . . "Is~ue.~ / JUI, 01 \~'~1_ . ~UL 'OEf',{997 ~';:' '~:;{. _..:>"~/ ........... f' ~.. ..............,_...~ Expires .r .' Certificate Numher GA-000067-L JUN 30 1999 I.~~ued 'I'll; MARK ROBERT SHONBERG 4701 BAPTIST ROAD SUITE 304 PIITSBURGH PA 15227 ',:;., "~",'~;" .,.....;.. ____.._.u__ ."_'.___'_."'" __ _..,__. .._..__.. ,.. _.... , , "'l I . . r I,:,. ~, ~'. ...:.... ..'1 ;, .' .' " ~ : '. \.~~..:/:;.l.'...'.;. , :\.;.Cw1lnn.ujon~drpro . '1'<I,1Idd.OtwpJlloNlIAf1\lr. , '11~\/;n~;J \'/ ~':,..,. ,..,,,,)', '. ~: ~::"rl '01 ....,. ,: . ':":~'~'~~!'. :'~ .. '. ~~ f ',' ',1.... ." 'I ',' " J t" ..),<:':; :.'-:> ....:. .... ~~ ~'~ci~~:~r.;o~~ , ' .:..'.......:..:.~~:.'.:..~.,...io};,...{.:.i:.:~:.;,'..~.:; ,_ 'YORK) .,~:PA:.i?46l .. . ._ " ......... :," ;:'" .:::'\;';~.~.:>.'~J/ ~'t:~;;':{'t\Jr ".~ ':.\}..F,:. '.:. ~ ,1 .~... .:.).~J~. If J ')~~,.,~.,:.~...d . ',.... ':",. '.'; , ,. >>" t, ,,,,, .'. .::' ,. . luucd To: ...... ..J i , -' , li<II i AI'I'IUISER'S Ql'ALlfICA TlONS ... i\lark I{. Shonhcrl:. MAl "" POSITIO~ . Vice Prestdent: narone. Murtha. Shonberg & Associates, Inc. .. 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 ... .., ,j Case Studies in Real Estate Valuation Standards of Professional Practice Report Writing and Valuation Analysis Highest and Best Use .... 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 , I'd .., .J 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 '1 I ~ 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. ., , - QU/ILlFlC/ITIONS OF KR/ST/ C, SM/T// /58 //jgll/mld Road York, PIt /7./03 17/7) 8-18.2065 - - EXPERIENCE: 1995 Bennell Williams, /nc.lCampisi Appraisal Group, York, PA Appraiser. Commercial Appraisal Department Specializing in commercial appraisal work throughout Pennsylvania and Maryland. "i oJ 1989 to 1994 Weinstein Appraisal Grol/p, York, PA Associate Appraiser I ..., 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 ,.., U 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. . , . i!' r .\ Stipulation and Joint Motion for Agreed Order Page 2 of 3 Respectfully Submitted, Date: ft,,-/ ii/1m /_~ETITIONE~, Belir' ". )' ,I (17 .... 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'/' ~f~:~t< (j ~ / ~ !-.'- /[/ '- ~ --~ 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