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HomeMy WebLinkAbout04-0729 PETITION FOR PROBATE and GRANT OF LETTERS Estate of Albert W. Freeman No. 2., . 0 L\ - ~ also known as To: Register of Wills for the Deceased. County of Cumberland in the Social Security No. 172-26-9794 Commonwealth of Pennsylvania The petition of the undersigned respectfully represents that: Your petitioner(>9, who is/an: 18 years of age or older an the execut or named in the last will of the above decedent, dated March 21. 2003' ,)W_ and codicil(s) dated none Mary MarRaret Coffey Freeman. co-executor named under the Will, h~~ renounced. Rennn~i at; on atr::lC'hpn (state relevant circumstances. e.g. renunciation, death of executor, etc.) Decendent was domiciled at death in Cumberland County, Pennsylvania, with h is last family or principal residence at 76 West King Street. Borough of ShiDDensburg (list street, number and muncipality) Decenc.lent, then 94 years of age. died July 2. 2004 . JIll , at 76 West King ~r.rp.p.r, ~hipppn~ht1l"'g Except as follows. decedent did not marry, was not divorced and did not have a child born or adopted after executio11, of the will offered for probate; was not the victim of a killing and was never adjudicated incompetent: none Decendent at death owned property with estimated values as follows: 151,022 (If domiciled in Pa.) All personal property $ (If not domiciled in Pa.) Personal property in Pennsylvania $ (If not domiciled in Pa.) Personal property in County $ Value of real estate in Pennsylvania $ 742.500 situated as follows: 59-61, 63, 65 , 67-71, 74, and 76 West King Street. Borough of Shippensburg WHEREFORE, petitioner(s) respectfully request(s) the probate of the last will and codicil(s) presented herewith and the grant of letters testamentary theron. (testamentary; administration c.I.a.; administration d.b.D.c.La.) ~ #~tl~ ac: :tl u == 0' g u ::tier) = 5 Willow R ~ ('i} (') u :;.~"' "0_ ",., C~I .- ~ ~- William A. Freeman Shi ensbu PA 72 U" U' ,.~ '"u "',' .... = ~;; en ~9: >~: "00 c';::: t:' cd '0 t !~ _u ~o. vi U~ ('"'''', so .~) "'" ~::::;:' .. c a ~7) ., "TIC.: Ui )>~, .l:::. . (Xl OATH OF PERSONAL REPRESENTATIVE COMMONWEALTH OF PENNSYLVANIA "1 COUNTY OF _ CUMBERLAND J SS The petitioner(s) above-named swear(s) or affirm(s) that the statements in the foregoing petition are true and correct to the best of the knowledge and belief of petitioner(s) and that as personal represen- tative(s) of the above decedent petitioner(s) will well and truly administer the estate according to law. Sworn to or affir~ and subscribed ,~ a ~, .~.-. ~ befor e thIS il:: ,'~ day of Wi] 1 i am A. FrppmRn ~ ~~ ~ a " ~,.- ~. ~ ;;] ~ No. 2. I - 04- - , d-<i Estate of Albert W. Freeman , Deceased DECREE OF PROBATE AND GRANT OF LETTERS AND NOW l[g;~, in consideration of the petition on the reverse side hereof, tisfactory proof having been presented before me, IT IS DECREED that the instrument(s) dated March 21, 2003 described therein be admitted to probate and filed of record as the last will of Albert W. Freeman ; and Letters Testamentary are hereby granted to William A. Freeman ~h~oU~~ ~ <...J)~ ~FEES ~. diJ Register of Wi!!s=r''"' ~ _ ' Probate, Letters, Etc. ......... 5515 .is\) Jerry A. Weigle, Esquire . 1<6 A TIORNEY (Sup. Ct. I.D. No.) Short Certificates( ).......... 5 .db R .. $5 <.m WEIGLE & ASSOCIATES, P.C. enuncIatIon ................ . 126 East King Street ..)Q..lf $ , D . c9V ADDRESS TOTAL _ $ 5/;) . CU Shippensburg, PA 17257 Filed ..:'6.~.?-:-_.~.~?~...... .., ... 717-532-7388 PHONE RENUNCIATION ZI -oLt - iZ.q In Re Estate of Albert W. Freeman deceased. To the Register of Wills of Cumberland County, Pennsylvania. The undersigned Mary Margaret Coffey Freeman of the above decedent, hereby renounce(s) the right to administer the estate and respectfully ask(s) that Letters Testamentary be issued to William A. Freeman WITNESS my ILl ~ day of July ,~ 200'1 hand this CO <( 170- ~ ~ '::t (~, ,'f) Cl~ 0 d:' (Signature) m Mary Margaret Coffey Freeman I "t::' 76 West King Street ,~) :.'.:, !:5 '~ Shippensburg, PA 17257 ';...J .'~:'j "'" j) (Address) C) :Ji- i:l U 0) ~ :t: '>:: {:'.) II: ~~ :5 a: ,:)U (Signature) (Address) (Signature) (Address) - 97filJ B1RTHPLACE(C[lyand StMeorFOfI!IignCDU:1lry) . 5. 94vrI ""-0 _(!g ~D COUNTY OF DEATH RACE. Amenc.n Indjan, B1.Ck, Wl~e. et (Specify) 811. CUmberland 76 West King Street 10. White OECEDENT'S USUAL OCCUPATION DECEDENT EVER IN DECEDENT'S EDUCATION MARITAL STATUS. "'1m.<:!, SURVIVING SPOUSE . .- U.S. ARMED FORCES? ... N_M8rr\ed~WclDw9d, {II_...."'*dto~om.J -*'II :donol_ yuliJ NoD 11II Oivon:led(l;>pecily) Mary Margaret . 11LSelf Employed ff~mily Ph sielan 12. 13. (0-12) 12 (1....6") 8 14P1arried McNitt DECEDENT'S L (treel.CltylTown.S,,",,", Ip .,.,.) DECEDENT'S 17LS1mo Pennsylvania 0 76 West King Street ~~~~NCC ~cedllm 1Tc. V..,dec:&denI~'4dln lWp 1.. Shippensburg, PA 17257 ~~~I 17b.Cou1Iv Cumberland ~~? 17d.1XI ~~~~oI Shippensburg c/lyiboro FATHER'S N.l.t.lE (Fnt. Mielell.. LaIt) MOTHER'S NAME (FifIl. Mldd., MMlenSumeme) ta. Albert Henry Freeman 11. Louisa Ebner INFORMANT' NAME (TypIlIPrInI) INFORldANT'S ldAlLlNG ADDRESS (Streel. CilyfTown. SIIlIIl. Zip CodI) 2Oa. Mary Margaret Freeman 2Gb. 76 West King Street, Shi ensbur ,PA 17257 t.lETHOO ITI N PLACE OF DISPOSITION- N.me of Ceme\flry, c-tory LQCA:l.ION _ CilyfTown. St8le. Zip Code Q DonIltIonD BuIIIII D::.- ~llromS orCllherP!- Sh: ppensburg, ~ 21L" CthIlr(SJIIlC'IIY) 21fpr1ng Hill Cemetery 21d. Cumb r ~ SI RAL R N.\t.lEANDAOOREsSOF.F~LITV ~ ~-Bridrer F.H. ,Inc. ,ro Box 336 LICENSE NUMBER DATE SIGNED (Mon\h,c.oy,Y..r) 2:k. 0 ~-() WAS CASE REFERRED TO A MEDICAL EXAMINER ICORONE~ 24. M.2II. 21. vuD NOl!:f ~.PARTl, _.._.loIu_...__.....""""'.........._.Ilo00t_a._ol.rtn..... 'Appn;W:nel. PART II: OIherllgnlficantcondllionlcontr1bu11ngtodllllth,blll u.t""Iy__",,__ :lnlIlMlI notreoultlng In the lIrlderly!ng CllIJse given In PART I : onle\1lr1ddIlllth . :7~ $IlquIlntillllyHltcordlionl l> C n8l1y,lHdIngto""mIldlale { . CllUI..EnI8rUMJl5JU.YlNG ...._ ~ ~~:;~-=,:1rluY c, (OR A Q C lUlM1gondeMh) LAST d _I WIoSAN AlITOPSV 'MORE AlITOPSY FINDINGS MANNER OF DEATH DATE OF INJURV TIME OF INJURV INJURY AT 'M)RK? DESCRIBE HOW INJURY OCCURRED I!I PERFORMED? AVAIlABLE PRIOR TO 1M"""'. er,. v...) Q) ~~~ON DFCAUSE NIl\u'8l iii Homicide D \.. ~ 0 Pendinglllllfllligllllon D \J.... vesD NoR V"O NoIH &iddll 0 CcioJldnolbedlllllrmlnlld 0 ~CEOFINJURV A!hOme,=~.llrHI.flOClory,;';" 28&. 2Ib. 211. ~".....{SpoGI'l'l \z CERTIFIER (CtIIlc:lI only one) ~ ~~.Jl~J~~~~~.v:r.::t~:::.=I=~~':~~~.~~.~~.I.~.~~).. u ~ .PT==:~N~":=:"~~'::;::~Ph~=~~,~::d~~:U~=lIlo:.~~.t.,"._d. o W .MEDlCALEXAMlNERlCOftONEfI ~ On 1M bnfIl '" .llMlh\IIllon .nd/or "--Uglllfon, In my opinion, duth OI:CLm'Ild 11I1"" II...., dab', .rId pl."". .1Id d.. to th. ClUHS(.) .ncl z _1IIlI'..IIIIl1N................. ". REGISTRAR'S BlBNATURE AND HUMBER ( fff \2l/f " . LAST WILL AND TESTAMENT OF ALBERT W. FREEMAN I, ALBERT W. FREEMAN of Shippensburg, Pennsylvania, being of sound and disposing mind and memory, do make, publish and declare this to be my Will, hereby revoking any and all prior Wills and Codicils made by me. a" g ARTICLE I =6 ::j:::;1. cr;' ~!;~ "" Statement of Familv 8.' ffi Property Being Disposed. and Specific Beouest!ll J, . . . ::/ ',:., :P "~:;~:; ~;" I.1 Statement of Family. I hereby affirm that I am married;!<?~MAR~MA~{'\,RET COFFEY FREEMAN (hereinafter referred to as "my wife") and as ofti, date&ereof mfnow living children are WILLIAM A. FREEMAN, of Shippensburg, Pennsylvania, and ROBERT A. FREEMAN, of Kentfield, California. My wife's only child is FRANK COFFEY,III of Carlisle, Pennsylvania, and his only child is DAVID COFFEY. 1.2 Property Being Disposed. It is my intention to dispose of all my separate property wheresoever located. However, I do not intend to exercise any power of appointment which I now possess or which may hereafter by conferred on me, unless such power is specifically referred to herein or in any codicil hereto. Further, it is my intention that any and all property I inherit from my wife which has not been consumed shall be returned to the Coffey family for their use and enjoyment. 1.3 Personal Effects. I give and bequeath a life estate of any and all of my household. furnishings, automobiles, books, pictures, jewelry, watches, articles of adornment, wearing apparel and all other articles of household or personal use that I own at the date of my death, together with all property and casualty insurance policies that are in force at the date of my death with respect to any of said property, to my wife for her use during her lifetime, if she shall survive me by thirty (30) days; but if she shall fail to so survive me, or if she remarries, then to my sons who shall survive me by thirty (30) days; to be divided between them by my Executor in shares of substantially equal value, having due regard for their personal preferences, without adjustment in the event any said child shall receive under this Article I property of greater value than another child. 1.4 Familv Residence. I give to my wife, if she shall survive me for a period. of thirty (30) days, a life estate in my house that she and I are using as our principal residence at the time of my death and my apartment building adjacent to my house, both located at 74 and 76 West King Street, Shippensburg, Pennsylvania, together with any insurance on the property. I give to my wife the use of my house and the apartment building adjacent to the house, subject to any WEIGLE & ASSOCIATES. Re. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG, PA 17257-1397 . encumbrances on them at the time of my death, including any mortgages, deeds of trust, and real property taxes and assessments. If my wife does not survive me for a period of thirty (30) days, or if she remarries, then this gift shall lapse and my interest in the properties or their proceeds shall become part of the residue of my estate. If at any time my wife shall for any reason determine that it shall be advisable to sell either the house or the apartment building, then I direct that disposition of the properties be decided by my sons unanimously in writing, and their decision shall be final and binding on all parties to the disposition. ARTICLE II Residuary Estate 2.1 Pour-Over to Trust. I give, devise and bequeath all the rest, residue and remainder of my estate, of whatever kind and character, whether real or personal and wheresoever located to which I shall be entitled in any way or in which I shall have any interest at the date of my death, including any and all lapsed bequests or devises hereunder (but excluding any property over which I may have a power of appointment, it being my intention not to exercise any such power by this Article), all of which is hereinafter referred to as my "residuary estate," to the then acting Trustee of the Albert Freeman Revocable Trust (hereinafter referred to as the ''trust''), established under a certain Trust Agreement, heretofore executed, between myself as Grantor and as Trustee, to be added to and become a part of the trust estate of the trust, and to be held, administered and distributed pursuant to the provisions of said Trust Agreement as it shall have been last amended before my death. 2.2 Alternative Dispositions. If, on the date of distribution of my residuary estate, the trust shall not then be in existence or if, for any other reason, the gift, devise and bequest to the trust shall fail, then I give, devise and bequeath my residuary estate in trust to JAY MYERS, of Lancaster, Pennsylvania, as Trustee to be held, administered and distributed pursuant to the provisions of the Trust Agreement creating the trust as of the time of execution hereof, which provisions are incorporated herein by this reference; if however, such gift, devise and bequest shall fail for any reason, then I give, devise and bequeath one-third (1/3) of my residuary estate to my wife, and two-thirds (2/3) per stirpes to my descendants; but if my wife shall fail to survive me. then her share shall be distributed per stirpes to my descendants after a gift has been made to DAVID COFFEY of the sum ofTen Thousand Dollars ($10,000.00). ARTICLE III Executor 3.1 Appointment of Executor and Desilmation of Successor Executor. I hereby appoint my wife and WILLIAM A. FREEMAN as Co-Executors (hereinafter collectively referred to as my "Executor") of my Will. My sons jointly, or the survivor of them, shall be Successor Executor. WEIGLE & ASSOCIATES, P.c. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG, PA 17257-1397 . 3.2 Debts. Taxes. and Treasury Bonds. My Executor shall payout of the principal of my residuary estate all of my debts (except those secured by mortgage, lien or other encumbrance not due and payable at the date of my death, unless otherwise provided herein), funeral expenses and costs of administration, including ancillary administration. My Executor shall also payout of the principal of my residuary estate, or make deposits therefrom to secure payments, all estate, inheritance, transfer and succession taxes, including any interest and penalties thereon, that may be assessed by reason of my death (hereinafter referred to as "death taxes"); provided, however, that if there shall be in existence a trust named and described in Article II hereof, and if such trust shall own at the date of my death United States Treasury Bonds that are redeemable at par value in payment of Federal estate taxes, then such Bonds shall be used to pay any Federal estate tax due before any asset of my probate estate is used, and my Executor shall make written demand of the Trustee to deposit such Bonds, to the extent useable, directly or to pay over the amounts thereof to my Executor, without reimbursement from my residuary estate to said trust. I hereby waive on behalf of my estate any right to recover from any person, including any beneficiary of insurance on my life, any part of any death taxes so paid, including any death taxes which are paid with respect to any property over which I have a power of appointment. My Executor shall not reimburse any person interested in any insurance policy on account of the application of any of the proceeds or surrender value of such policy in satisfaction of any indebtedness to which such policy is subject, nor shall said person be subrogated to the rights of the creditor in any collateral because of such indebtedness. If my Executor shall be compelled at any time to pay any death taxes with respect to my estate, my Executor shall be entitled to be reimbursed from the property of my estate, or if the property of my estate be then insufficient or if my estate be then distributed, my Executor shall be reimbursed by the person or persons to whom such property shall have been distributed to the extent of the amount received by each such person. My Executor, before making any distribution of either income or principal from my estate, may require an undertaking by said person or persons in form satisfactory to my Executor to reimburse him for all such taxes, including any interest and penalties thereon, or my Executor may withhold distribution pending release of any tax lien or the determination of any tax controversy. 3.3 Exculoatory Clause. My Executor shall not be liable for any loss to my estate occasioned by acts in good faith or in his reliance on an opinion of counsel in the administration of my estate and, in any event, my Executor shall be liable only for willful wrongdoing or gross negligence. 3.4 Executor's Comoensation and Exoenses. My Executor shall be entitled to receive from my estate a fair and just compensation for seryices rendered as Executor and my Executor shall also be reimbursed for all reasonable expenses incurred by him in the management, protection and distribution of my estate. 3.5 Executor's Powers. In addition to the powers conferred by law upon executors, and not by way of limitation thereof, my Executor is hereby authorized in the sole discretion of my Executor to exercise the following powers without approval by or authorization of any court: WEIGLE & ASSOCIATES. Poe. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG, PA 17257~1397 - (a) to make allocation, division or distribution of my estate in kind, or partly in kind and partly in money, and to determine the value of property so allocated, divided or distributed; (b) to sell, or to offer to sell, for cash, credit or in installments, at public or private sale, to grant options to purchase and to convey any and all of the property at any time forming a part of my estate, for such price, and upon such terms as my Executor shall determine; (c) to lease or license the use of any tangible or intangible personal property at any time forming a part of my estate upon such terms as my Executor shall determine; (d) to borrow money from any person, partnership, corporation, trust, including my Executor; to extend or renew any such existing indebtedness, and to mortgage or pledge any property at any time forming a part of my estate; (e) to settle, compromise, contest, agree to arbitrate and be bound thereby, extend the time for payment, consent or abandon claims or demands in favor of or against my estate; (f) to sell, convey, release, mortgage, encumber, lease, partition, improve, repair, manage, insure against loss, protect and subdivide any real estate, interests therein or parts thereof; to direct, or to authorize any other person to direct, the trustee of any land trust of which my estate is a beneficiary to mortgage, lease, conveyor contract to convey the real estate held in such land trust; (g) to purchase or otherwise acquire for cash, credit or in installments, retain, hold, invest and reinvest in any type or types of assets real or personal, within or without the United States of America, notwithstanding any statute or rule of law regarding investments by executors or the fact that any asset may constitute all or a large portion of my estate, including but not limited to common stocks, bonds, notes, debentures, mortgages, preferred stocks, puts or calls, voting. trust certificates, beneficial interests in land trusts, interests or shares in common trust funds, "open-end" or "closed-end" investment funds or trusts, real estate investment trusts or other property, or savings and loan or building and loan associations, oil, gas or other mineral interests or natural resources, livestock or other animals, commodities, foreign exchange, insurance or endowment policies, annuities, variable annuities or other property or undivided interests in. property, (without regard to whether such shall be listed on any stock exchange or other public market, registered with any securities commissions or similar bodies or subject to contractual, legal or other restrictions, including "investment letter" restrictions), and including any business or business interests, as shareholder, creditor, partner, sole proprietor, or otherwise, although closely or privately held, and to manage, or to participate in the management of, such business or to rely upon others to do so, to rely, without independent investigation, upon the reports WEIGLE & ASSOCIATES, p.c. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG, PA 17257-1397 . of certified public accountants as the operations and financial condition of any such business, to participate in any incorporation, reorganization, merger, consolidation, recapitalization, liquidation or dissolution of such business or any change in its nature and to retain and continue such change or successor business; to abandon any property, real or personal, as my Executor shall deem to be worthless or not of sufficient value to warrant keeping or protecting; to open accounts, margin or otherwise, with brokerage firms, banks or others, and to invest the funds of my estate in, and to conduct, maintain and operate such accounts directly or through an agent for the purchase, sale and exchange of commodities, stocks, bond, and other securities, and in connection therewith, to borrow money, obtain guarantees, and engage in all other activities necessary or incidental to conducting, maintaining and operating such account. (h) to employ and pay reasonable compensation to such agents, brokers, trustees, title- holders, escrowees, custodians, depositories, accountants, attorneys, investment counsel, appraisers, insurers and others (who may be any firm with which my Executor is associated) as may be necessary or desirable in managing, protecting and settling my estate, and to execute any general or limited direction or power of attorney to reflect such employment; (i) to cause any securities, bank accounts, safety deposit boxes, vaults or other property which may at any time form a part of my estate to be issued, held or registered in the name of my Executor, either with or without indication of any fiduciary capacity or in the name of a nominee, or in such form that title will pass by delivery; G) to pay premiums on, apply for, purchase, accept, own and retain certain insurance policies and annuity contracts on the life of any person; and to exercise any or all rights, powers and privileges which the owner of such policies or contracts may have thereunder; (k) to open and maintain one or more savings accounts or checking accounts and to rent one or more safety deposit boxes or vaults with any bank, trust company, safe deposit box company, savings and loan or building and loan association, wherever located, whether within or without the United States of America, even if, in the case of a bank or trust company, it shall be acting as my Executor; to deposit to the credit of such account or accounts all or any part of the funds. belonging to my estate whether or not such funds may earn interest; from time to time to remove some or all of the items placed in any safety deposit box or vault, or to withdraw a portion or all of the funds so deposited, by check, written direction or other instrument signed by my Executor or such other person or persons as my Executor may from time to time authorize, and any such bank, company or association is hereby authorized to allow such person or persons access to the box or vault and to pay such check or other instrument and also to receive the same for deposit to the credit of any holder thereof when so signed and properly endorsed without WEIGLE & ASSOCIATES, RC. ~ ATTORNEVS AT LAW ~ 126 EAST KING STREET - SHIPPENSBURG, PA 17257~1397 - inquiry of any kind, and access when so allowed and payments when so made shall not be subject to criticism or objection by any person concerned or interested in any way in my estate; (1) to make loans to any legatee or devisee of my estate, without interest and without security, or to make loans to any other person, sole proprietorship, partnership, corporation, trust or estate upon such terms as my Executor in his sole discretion may deem advisable, and any such loan may be with or without security and may be subordinated to other obligations of the indebted party; (m) to claim any item which would qualify as an administration expense in my Federal estate tax return as a deduction in any Federal income tax return to be filed for my estate or to elect to take any medical expense of my last illness as a deduction in a Federal income tax return to be filed for me, and to exercise or to consent to the exercise of any other election available under any tax law, in such manner as in the sole judgment of my Executor will achieve an overall reduction in income and death taxes for the benefit of my estate, despite the fact that any such election thereby increases or decreases my adjusted gross estate for Federal estate tax purposes, and I hereby direct that no adjustment between income and principal or in the amount of any bequest or devise under my Will shall be required to be made or shall be made as a result of any such election; (n) to join with any person (or with the personal representative of any such person) with whom I shall be entitled to file any joint (including separate returns which "split" the income or gift involved) Federal, State or municipal income, declaration of estimated income, information or gift tax return covering any period of time for which such returns have not been filed; to otherwise affirm or disaffirm in any manner the filing by such person of any such joint return covering any period of time for which such joint return may be filed; and to pay in connection with any such return such taxes, including any interest and penalties thereon, as may seem proper to my Executor, without the necessity of seeking reimbursement for any portion thereof from any such person (and if my Executor shall not seek reimbursement, there shall not be deemed to be any right of reimbursement or contribution existing); any action taken by my Executor pursuant to this authority shall be binding and conclusive upon all legatees and devisees of my estate; and (0) to pay all storage, packing, shipping, insurance and other charges relative to the distribution of any tangible or intangible personal property in my estate. 3.6 Legatee Under Disability. If at the date of my death or at the date of distribution of any part of my estate, any legatee or devisee under my Will shall be a minor, under other legal disability or not adjudicated incompetent, but who, by reason of illness or mental or physical disability, in the sole discretion of my Executor shall be unable to administer properly such property then such property may be distributed by my Executor for the benefit of said legatee or WEIGLE & ASSOCIATES, RC. - ATTORNEYS AT LAW - 126 EAST KING STREET ~ SHIPPENSBURG, PA 17257-1397 devisee to such one or more of the following distributees whom my Executor in his sole discretion shall deem best under the circumstances: (a) to said legatee or devisee directly; (b) to the legally appointed Guardian or Conservator of the Estate of said legatee or devisee; (c) to a parent of said legatee or devisee; and, in the case of a minor, (d) to a Custodian under any Uniform Gifts to Minors Act ("Act") of any applicable jurisdiction (but if there shall not then be a Custodian for said minor under such Act, then my Executor may designate a Custodian from among those willing and eligible to serve under the law of such jurisdiction). Upon making such distribution, the receipt by any such distributes of such property shall constitute a full release and discharge to my Executor, and my Executor shall not be obligated to see to the application of any money or property so distributed. 3.7 Meaning of Executor. Wherever reference is made herein to "my Executor," such reference shall be deemed to include without limitation the plural and the feminine form thereof wherever the context and facts require, any and all successor Executors at any time qualified to act and acting as Executor of my Will; any and all Administrators With the Will Annexed, Administrators De Bonis Non With the Will Annexed and. the Administrators De Bonis Non for the time being in office and any and all ancillary Administrators or Executors. 3.8 Bond. I direct that no Executor designated herein shall be required to give any bond, and if, notwithstanding this direction, any bond is nevertheless required by any law, statute or rule of court of any applicable jurisdiction, I direct that no surety be required thereon. 3.9 V acancv. Except as otherwise provided herein, a vacancy in the executorship shall be deemed to exist in the event of the death, resignation, refusal, failure or inability of any person to serve as Executor. The successors named herein shall fill any such vacancy, in the order and manner provided. ARTICLE IV Construction 4.1 Descendants. As used herein, the following terms shall have the indicated meanings: (a) the term "descendant" shall be interchangeable with the term "issue" and shall mean a descendant in the first, second or any other degree of the designated ancestor; (b) the term "child" shall mean a descendant in the first degree of the designated parent; and (c) the term "grandchild" shall mean a descendant in the second degree of the designated grandparent; provided, however, that only an adopted child who shall not have attained the age of twenty-one (21) years prior to adoption and the descendants of any such adopted child shall be regarded as descendants of the adopting parent or parents and of anyone who is by blood or adoption an ancestor of the adopting parent or parents (and in such event shall be regarded for all pwposes herein); further provided, however, that the term "descendant" shall not include any person who shall not then be considered "legitimate" under the laws of the State where such person shall then be domiciled. All terms herein defined shall include the plural form thereof wherever the context and facts so require. WEIGLE & ASSOCIATES, Poc. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG, PA 17257-1397 4.2 Per Stirpes. As used herein, the term "per stirpes" shall have its accepted. legal meaning; for example, if a distribution is to be made "per stirpes" to the descendants of a specified person and one or more of said specified person's children shall be deceased but shall be survived by a then living child or children (and no child or children of said deceased child of said specified person shall then be deceased), then the share which would otherwise have been distributable to each such deceased child of said specified person had such child then been living shall be distributed in equal shares to the then living child or children of each such deceased child, with the effect that the child or children of each such deceased child of said specified person shall receive by right of representation the share which his or their parent would have received had such parent then been living, and this shall apply if all the children of said specified person shall be deceased. 4.3 After-Born Child. I have provided by my Will and otherwise for all of my children, whether born to or adopted by me before or after the time of execution hereof to the extent I desire, and no child born to or adopted by me before or after the time of execution hereof shall be entitled to receive from my estate property greater in value than I have specifically provided. 4.4 Pronouns. As used herein, all pronouns shall include the masculine, feminine, neuter, singular and plural thereof wherever the context and facts require such construction. 4.5 Headings. The headings, titles and subtitles are inserted for convenience of reference only and are to be ignored in any construction of the provisions hereof. IN WITNESS WHEREOF, I have signed my Will this 21st day of March ,2003. I , -I ,"f,',l Ij~ /'.0/ C~. (SEAL) Sworn or affirmed to and acknowledged before me by Alb~. Freem~, this . L day of ,2003. -. NOT :<\LSEAL - Jerry A. Wei e, Notary Public '/ . . Shippensburg, PA Cumbe~and County ./ My Commission Expirss October 7, 2006 ~ J ,-.. . :t"; ~: f' ... ',- ......~. , .. WEIGLE & ASSOCIATES, RC. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG, PA 17257-1397 WEIGLE & ASSOCIATES, P.C. . ATTORNEYS AT LAW 126 EAST KING STREET. SHIPPENSBURG, PA 17257-1397 . TELEPHONE: (717) 532-7388 FAX: (717) 532-5289 I IN RE: EST A TE OF ALBERT W. IN THE COURT OF COMMON PLEAS OF I FREEMAN, late ofthc Borough CUMBERLAND COUNTY of Shippcnsburg, PENNSYLVANIA Cumberland County, ORPHANS' COURT DIVISION Pennsylvania, deceased ESTATE NUMBER 21-04-0729 CERTIFICATION OF NOTICE UNDER RULE 5.6 (a) Name of Decedent: Albert W. Freeman Date of Death: July 2, 2004 Will No. 21-04-0729 To the Register: I certify that notice of beneficial interest required by Rule 5.6(a) of the Orphans' Court Rules was served on or mailed to the following beneficiaries of the above- captioned estate on August 6, 2004: Mary Margaret Coffey Freeman William A. Freeman Robert A. Freeman 76 West King Street 5 Willow Run P. O. Box 2880 Shippensburg, P A 17257 Shippensburg, P A 17257 Sausalito, CA 94966 Notice has now been given to all persons entitled thereto under Rule 5.6(a) except NONE. - , I ! ./ August 6, 2004 Signa~~ M .. j 0, ~: II ><::T V '- , 'e .oJ:: '0 l!) ,:,j., Name: Jerry A. Weigle, Esquire ~ :a: () ::) Address: Weigle & Associates, P.c. ~ ~ ,~) 126 East King Street ,. r::: , ! ~ ~ 2 Shippensburg, P A 17257 I ,.~, ,,;' :5 ;:::; C':.) ,,0 c' 0 p ;:l" G) r.r:: ~JJ =: Telephone: (717) 532-7388 I "'~, - II: UU I Capacity: Personal Representative II X Counsel for Personal II Representative WEIGLE & ASSOCIATES, P.c. - J\TTORNEYS AT LAW - 126 EAST KING STREET ~ SHIPPEN5I3UI~(i. PA n~~~i/. i ','-JI I, . We hereby certify that the foregoing instrument was, in the presence of us on the date last above written, declared by the Testator to be his Will, and he requested us to act as witnesses thereto, and we, in his presence and in the presence of each other, believing him to be of sound mind and memory, acting voluntarily and not under duress or constraint of any kind, saw him sign the said instrument as aforesaid, and thereupon we signed our names as attesting witnesses to said Will. We declare under penalty of perjury that the foregoing is true and correct. ~~rj~,l1. r:e.,~ residing at {c /f E. 6ro.-O (;I"I-r,,-,.J- S h'rl'" ns,blUO' P4 rTJ.'57 ~ jJ I ~< ~;17. ! ,,~ residing at ~~iP It! .,~jJr. /7 - < ~. ~ · ~tUS? 8,1:1 otJj"r:t remiling" { ~~ 12 ~-;J7' '}Ye I ,/1 stl:fij\li;'JhC?lf J Vq, /7';157 Sworn or affirmed to and subscribed before me by Marjorie M. Fleagle , Diane M. Bradley , b. .~/ :"oC.,) .(.-" ........ -:,. '. :'.f.. ~ ~ ", WEIGLE & ASSOCIATES. Re. ~ ATTORNEVS AT LAW - 126 EAST KING STREET ~ SHIPPENSBURG. PA 17257-1397 ~10~!~~ '-- ~6 ~w.r~ f~ "ff ?-i-o'f~ 072 { (fA ~T~- f~ ~ ~/UJ 71" 3, 't 0 () 0_ 0 c? '<:t - 9 ,-' ,'" ,- 'I'! .- N CL 0"\ N a.. L.W V) .1) i) '<:t "- ~ p -~) ::. -:)G COMMONWEALTH OF PENNSYLVANIA REV-1162 EX(11-96) DEPARTMENT OF REVENUE BUREAU OF INDIVIDUAL TAXES DEPT. 280601 HARRISBURG, PA 17128"0601 PENNSYLVANIA RECEIVED FROM: INHERITANCE AND ESTATE TAX OFFICIAL RECEIPT NO. CD 004438 WEIGLE JERRY A 126 E KING STREET SHIPPENSBURG, PA 17257 ACN ASSESSMENT AMOUNT CONTROL NUMBER _uu_n fOld .unu_u __nuu 101 I $34,000.00 ;.':i ESTATE INFORMATION: SSN: 172-26-9794 I FILE NUMBER: 2104-0729 I DECEDENT NAME: FREEMAN ALBERT W I DATE OF PAYMENT: 09/29/2004 I POSTMARK DATE: 09/28/2004 I COUNTY: CUMBERLAND I DATE OF DEATH: 07/02/2004 I I TOTAL AMOUNT PAID: $34,000.00 REMARKS: -- CHECK# 0995 -.-... INITIALS: JA .-. SEAL RECEIVED BY: GLENDA FARNER STRASBAUGH REGISTER OF WILLS REGISTER OF WILLS \ ,,"I" ,... 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'" ~ ~ ~ e 'J) Ci ;!. ~ ~... ,,~~ ~ .. ~ ~ <;I ~ ~ ~~~\I) II'> ~~ rJ1 .><j .,; ... 0 ... II'> ~ ("'l l"''''' ;1~~~ <JO" t"l ....:1. ~ rJ1 '" . "" '"d .... (') .... ';d .~\ C"l '" ., C"l ~ ()Q .... ~ .... ,..,. Ul (..\ ..... ~ ..... \ .... '" il) III ~ rl ..... i,oJ '" III 0 ", . '" ..... .... .... >Q ~ :>> .... -". , ';. ,.--;- i' :', , ....~ Ul '/ - ,... . "-' ~ .~~. -~~. -..1 - 0 C"l 2; ~ :'.) - ,... g v> 1.)' '.~)., .t......\ '" ,,::,');~,;:';" - '" rl ..... - ~ I',' "-~" l- p. ,n -:- C"l .,. """"~ I)tln~Ds 0 W~~\~l~ - B - "'i' ..... C' ll, ,~_.~. - '-4 :.\ I' . ,', '\'~"":JJ - F~, ,,>>,,-,\ - ., ." '1 I, '&f ~\\ ~"1'l'l"":' ",I ',. '< ~ . ~, - H~~~ :- . .' - -, -.,j\ :- ;11',.' V'V' , '..~ ;-\ : tJ\ ,. ~ ,," ""11.1,-<\1 _" ,'~; ','~ ," '\'''~' ",i~\ - ,,\ \ "~'I :',1~l :- \ ,IJ \.;' I ~,.,\,,;::, :,.<,' , ' \ ~ cz (;J~I ~~ - ~,..~ F~ ~""^1 ~, 1 UJU-.~ tv. ,"\ ,,- - td21-o'f- o7?? fA ~ '/cA/(.. w. - 01 000. 00 =--=--- WEIGLE & ASSOCIATES, P.C. Attorneys at Law 126 East King Street Shippensburg, PA 17257 COMMONWEALTH OF PENNSYLVANIA REV-1162 EX(11-96) DEPARTMENT OF REVENUE BUREAU OF INDIVIDUAL TAXES DEPT. 280601 HARRISBURG, PA 17128-0601 PENNSYLVANIA RECEIVED FROM: INHERITANCE AND ESTATE TAX OFFICIAL RECEIPT NO. CD 005137 WEIGLE JERRY A 126 E KING STREET SHIPPENSBURG, PA 17257 ACN ASSESSMENT AMOUNT CONTROL NUMBER nnnn fold nn_n_n uuuu 101 I $6,000.00 ESTATE INFORMATION: SSN: , 72-26-9794 I FILE NUMBER: 2104-0729 I DECEDENT NAME: FREEMAN ALBERT W I DATE OF PAYMENT: 03/31/2005 I POSTMARK DATE: 03/30/2005 I COUNTY: CUMBERLAND I DATE OF DEATH: 07/02/2004 [ I TOTAL AMOUNT PAID: $6,000.00 REMARKS: CHECK# 1105 INITIALS: JA SEAL RECEIVED BY: GLENDA FARNER STRASBAUGH REGISTER OF WILLS REGISTER OF WILLS COMMONWEAL TH OF PENNSYLVANIA DEPARTMENT OF REVENUE BUREAU OF INDIVIDUAL TAXES PO Box 280601 HARRISBURG, PA 17128-0601 Telephone April 5, 2005 (717) 787-3930 FAX (717) 772-0412 Weigle & Associates,P.C. Attorneys At Law 126 E King Street Shippensburg,Pa 17257-1397 Re: Estate of Albert W Freeman File Number 2104-0729 Dear Sir or Madam: This is in response to your request for an extension of time to file the Inheritance Tax Return for the above estate. In accordance with Section 2136 (d) of the Inheritance and Estate Tax Act of 1995, the time for filing the return is extended for an additional period of six months. This extension will avoid the imposition of a penalty for failure to make a timely return. However, it does not prevent interest from accruing on any tax remaining unpaid after the delinquent date. The return must be filed with the Register of Wills on or before 10/2/05. Because Section 2136 (d) of the 1995 Act allows for only one extra period of six (6) months, no additional extension(s) will be granted that would exceed the maximum time permitted. . ,'>oJ --;~ ',/ ~,*~,- "'~. ,"... , ~~ :::'lfI.:.t"""~""'~~I.'lllllllJ~,,,",,,,:,,,,.'r"""""".fI"'~~!'''~f',l!..~~fI'.''f!'!''"':'04S"......~'1I"."""~.... ......"'...'....~....".,.. ...~'f""""'.~"."'I:".-.~....~.........-..,'........... --,. . . " ' 1 REV-1500 EX + (6-00) OFFICIAL IJSE ONLY *' COMMONWEALTH OF REV-1500 PENNSYLVANIA DEPARlMENT OF REVENUE !NHERIT ANCE TAX RETURN FILE NUMBER DEPT. 280601 RESIDENT DECEDENT II 04 0729 HARRISBURG, PA 17128-0601 COUNTY CODE YEAR NUMBER DECEDENT'S NAME (LAST, FIRST, AND MIDDLE INITIAL) SOCIAL SECURITY NUMBER I- Freeman, Albert W. 172-26-9794 z w DATE OF DEATH (MM-DD-YEAR) DATE OF BIRTH (MM-DD-YEAR) THIS RETURN MUST BE FILED IN DUPLICATE WITH THE C W 07-02-2004 02-03-1910 REGISTER OF WILLS 0 w (IF APPLICABLE) SURVIVING SPOUSE'S NAME ( LAST, FIRST AND MIDDLE INITIAL) SOCIAL SECURITY NUMBER C Freeman, Mary Margaret Coffey 069-22-3273 w ~ 1. Original Return D 2. Supplemental Return D 3. Remainder Return (date of death prior to 12-13-82) .... D 4. Limited Estate D 4a. Future Interest Compromise (date of death after D 5. Federal Estate Tax Return Required ~:!1Il UO::~ 12-12-82) wll.U ",00 ~ 6. Decedent Died Testate (Attach D 7. DecF.uent Maintained a Living Trust (Attach 8. Total Number of Safe Deposit Boxes uO::.... ll.lD copy of Trust) ll. copy of Will) <l: D 9. Litigation Proceeds Received D 10 S:p'ousal (date of death between 11. Election to tax under Sec. 9113(A) (Attach Sell 0) . 1 -31-91 .... NAME COMPLETE MAILING ADDRESS z w Jerry A. Weigle, Esquire 0 z 0 FIRM NAME (If applicable) ll. 126 East King Street 1Il Weigle & Associates, P.C. w 0:: Shippensburg, PA 17257 0:: 0 TELEPHONE NUMBER u 717-532-7388 1. Real Estate (Schedule A) (1 ) 467,000.00 OFF'CIAL USE ONLY 2. Stocks and Bonds (Schedule B) (2) 71.70 3. Closely Held Corporation, Partnership or Sole-Proprietorship (3) None 4. Mortgages & Notes Receivable (Schedule D) (4) 143,213.94 5. Cash, Bank Deposits & Miscellaneous Personal Property (5) 24,664.65 (Schedule E) z 6. Jointly Owned Property (Schedule F) (6) 510,000.00 0 D Separate Billing Requested ~ :5 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (7) None ::::l (Schedule G or L) D Separate Billing Requested l- ii: 8. Total Gross Assets (total Lines 1-7) (8) 1,144,950.29 <( 0 9. Funeral Expenses & Administrative Costs (Schedule H) (9) 19,655.14 w 0:: 10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I) (10) 119,276.81 11. Total Deductions (total Lines 9 & 10) (11 ) 138,931.95 12. Net Value of Estate (Line 8 minus Line 11) (12) 1,006,018.34 13. Charitable and Governmental Bequests/Sec 9113 Trusts for which an election to tax has (13) 0.00 not been made (Schedule J) 14. Net Value Subjectto Tax (Line 12 minus Line 13) (14) 1,006,018.34 SEE INSTRUCTIONS ON REVERSE SIDE FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate, 0.00 x .00 (15) 0.00 or transfers under Sec. 9116(a)(1.2) - z 0 1,006,018.34 .045 (16) 45,270.83 ~ 16.Amount of Line 14 taxable at lineal rate x ~ - ::::l Do 17. Amount of Line 14 taxable at sibling rate 0.00 x .12 (17) 0.00 ::iE 0 0 18. Amount of Line 14 taxable at collateral rate 0.00 x .15 (18) 0.00 x ~ 19. Tax Due (19) 45,270.83 , CHECK HERE IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT. Copyright 2002 form software only The Lackner Group, Inc. Form REV-1500 EX (Rev. 6-00: "I'IlI'I'f"""""11'l"'"'"''''''"'''''''!''''l''' l"f" ',", ~r'l"'"""'r""""II"""""'~"""""""",~,~ ,_,~_ , . I Decedent's Complete Address: STREET ADDRESS 76 West King Street Shippensburg I !ZIP CITY : STATE PA , 17257 I Tax Payments and Credits: 1. Tax Due (Page 1 Line 19) (1 ) 45,270.83 2. Credits/Payments A. Spousal Poverty Credit B. Prior Payments 40,000.00 C. Discount 1,789.47 Total Credits (A + B + C) (2) 41 ,789.47 3. InteresUPenalty if applicable D. Interest E. Penalty TotallnteresUPenalty (D + E) (3) 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is thEDVERPA YMENT. (4) Check box on Page 1 Line 20 to request a refund 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is theTAX DUE (5) 3,481.36 A. Enter the interest on the tax due. (SA) B. Enter the total of Line 5 + SA. This is theBALANCE DUE (58) 3,481.36 Make Check to: REGISTER OF WILLS, AGENT PLEASE ANSWER THE FOLLOWING QUESTIONS BY AN "X" IN THE APPROPRIATE BLOCKS 1. Did decedent make a transfer and: Yes No a. retain the use or income of the property transferred;............................................................................. 0 [!] b. retain the right to designate who shall use the property transferred or its income;................................ 0 [!] c. retain a reversionary interest; or..... ........ .... ...... ...... .--.. .... ..... ................ .................. ............. -...... ... ........ 0 [!] d. receive the promise for life of either payments, benefits or care?.......................................................... 0 [!] 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without receiving adequate consideration?..... ......... .......... .... ................ ..... .......... n................. n........ .m......n............ 0 [!] 3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death?........ 0 [!] 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which 0 [!] contains a beneficiary designation?. ..... ......... ........... ...n. ....... .......... .......... n.. .......................... n.............. ... ... IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. Under penalties of perjury, I declare that I have examined this retum, including accompanying schedules and statements, and to the best of my knowledge and belief, ~ is true, correct and complete. Declaration of preparer other than the personal representative is based on all infonnation of which preparer has any knowledge. SIGNATURE OF PERSON RESPONSIBLE FOR FILING RETURN ADDRESS DATE Willi m A. Freeman 5 Willow Run, P. O. Box 128 (;- 16 -C-S ~t1 Shippensburg, PA 17257 ADDRESS DATE G r--- L ~ -CS- ADDRESS DATE 126 East King Street Shippensburg, PA 17257 ,. For dates of death on or after July 1, 199~ and before January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 3% [72 P.S. 99116 (a) (1.1) (i)]. For dates of death on or after January 1, 1995, the tax rate imposed on the net ~ tjAPD surviving spouse is 0% [72 P.S. 99116 (a) (1.1) (Ii)]. The statutedoes not exempt a transfer to a survivin, Jirements for disclosure of assets and filing a tax return are still applicable even if the surviving spouse is For dates of death on or after July 1, 2000: The tax rate imposed on the net value of transfers from a deceased child twenty- or for the use of a natural parent, an adoptive parent, or a stepparent of the child is 0% [72 P.S. 99', ~ A ~t5f The tax rate imposed on the net value of transfers to or for the use of the decede IS noted in 72 P.S. 99116 1.2) [72 P.S. 99116 (a) (1)]. The tax rate imposed on the net value of transfers to or for the use of the decedel .3)]. A sibling is defined under Section 9102, as an individual who has at least one parent in comn .._ or adoption. ,,,,,,,~..,.. ....'..~ ".'fWf.''''~' "''f'' ...-~ _ '. , ......' ......._............."" ~"'~..-. .,. , J Rev-1502 EX+ (6.98) . SCHEDULE A REAL ESTATE COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER Freeman, Albert W. 21-04-0729 All real property owned solely or as a tenant in common must be reported at fair market value. Fair market value is defined as the price at which property would be exchanged between a willing buyer and a willing seller, neither being compelled to buy or sell, both having reasonable knowledge of the relevant facts. Real property which is jointly-owned with right of survivorship must be disclosed on schedule F. ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1 74 West King Street - Borough of Shippensburg, Cumberland County 180.000.00 2 76 West King Street - Borough of Shippensburg, Cumberland County 287,000.00 TOTAL (Also enter on Line 1, Recapitulation) 467.000.00 (If more space is needed, additional pages of the same size) Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 ScheduleA (Rev. 6-98) . , Rev-1503 EX+ (6-98) *' SCHEDULE B STOCKS & BONDS COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER Freeman, Albert W. 21-04-0729 All property jointly-owned with right of survivorship must be disclosed on Schedule F. ITEM CUSIP VALUE AT DATE NUMBER NUMBER DESCRIPTION UNIT VALUE OF DEATH 1 Series EE Savings Bond 71.70 TOTAL (Also enter on Line 2, Recapitulation) 71.70 (If more space is needed, additional pages of the same size) Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule B (Rev. 6-98) .~....--,~,~-~..._..,,_...,.- --- --....-..,~". ..< ~"~",,.. .-,,~ . . Rev-1507 EX+ (6-98) .*, SCHEDULE D MORTGAGES & NOTES RECEIVABLE COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER Freeman, Albert w. 21-04-0729 All property jointly-owned with right of survivorship must be disclosed on Schedule F. ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1 James Freeman Mortgage 143.213.94 TOTAL (Also enter on Line 4, Recapitulation) 143.213.94 (If more space is needed, additional pages of the same size) Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule D (Rev. 6-98) , Rev-1508 EX+ (6-98) *' SCHEDULE E CASH, BANK DEPOSITS, & MISC. PERSONAL PROPERTY COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER Freeman, Albert W. 21-04-0729 Include the proceeds of litigation and the date the proceeds were received by the estate. All property jointly-owned with the right of survivorship must be disclosed on schedule F. ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1 Citizens Bank Checking Account 1 - #6100093816 1.977.62 2 Citizens Bank Checking Account 2 - #6204204436 8,183.56 Accrued income on Item 2 through date of death 40.82 3 Defined Asset Funds #1, Muni Investment Trust - terminated issue 2,784.40 4 Defined Asset Funds #2, Muni Investment Trust - terminated issue 960.60 5 Delaware Investments Balanced Fund - #2-5021053401 44.47 6 Merrill Lynch Mutual Funds 10.673.18 TOTAL (Also enter on Line 5, Recapitulation) 24.664.65 (If more space is needed, additional pages of the same size) Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule E (Rev. 6-98) . . Rev-1509 EX+ (6-98) .. SCHEDULE F COMMONWEALTH OF PENNSYLVANIA JOINTLY-OWNED PROPERTY INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER Freeman, Albert W. 21-04-0729 If an asset was made joint within one year of the decedent's date of death, it must be reported on schedule G. SURVIVING JOINT TENANT(S) NAME ADDRESS RELATIONSHIP TO DECEDENT A. William A. Freeman 5 Willow Run Son Shippensburg, PA 17257 B. C. JOINTLY OWNED PROPERTY: DESCRIPTION OF PROPERTY %OF DATE OF DEATH LETTER DATE INCLUDE NAME OF FINANCIAL INSTITUTION AND BANK ACCOUNT DATE OF DEATH ITEM FOR JOINT MADE DECO'S VALUE OF NUMBER TENANT JOINT NUMBER OR SIMILAR IDENTIFYING NUMBER. ATTACH DEED FOR VALUE OF ASSET INTEREST DECEDENT'S INTEREST JOINTLY-HELD REAL ESTATE. 1 A 59-61 West King Street - Borough of 170.000.00 50.000% 85.000.00 Shippensburg, Cumberland County - jointly owned with William A. Freeman, son - 1/2 interest 2 A 63 West King Street - Borough of 15.000.00 50.000% 7.500.00 Shippensburg, Cumberland County - jointly owned with William A. Freeman, son - 1/2 interest 3 A 65 West King Street - Borough of 125.000.00 50.000% 62.500.00 Shippensburg, Cumberland County - jointly owned with William A. Freeman, son - 1/2 interest 4 A 67 -71 West King Street - Borough of 710.000.00 50.000% 355.000.00 Shippensburg, Cumberland County - jointly owned with William A. Freeman, son - 1/2 interest TOTAL (Also enter on Line 6, Recapitulation) 510.000.00 (If more space is needed, additional pages of the same size) Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA.1500 ScheduleF (Rev. 6-98) , REV-1151 EX+ (12.99) *' SCHEDULE H .- , COMMONWEALTH OF PENNSYLVANIA FUNERAL EXPENSES & INHERITANCE TAX RETURN ADMINISTRA TIVE COSTS RESIDENT DECEDENT ESTATE OF FILE NUMBER Freeman, Albert W. 21-04-0729 Debts of decedent must be reported on Schedule I. ITEM DESCRIPTION AMOUNT NUMBER A. FUNERAL EXPENSES: See continuation schedule(s) attached 8,143.07 B. ADMINISTRATIVE COSTS: 1. Personal Representative's Commissions Social Security Number(s) I EIN Number of Personal Representative(s): Street Address City State Zip - Year(s) Commission paid 2. Attorney's Fees Weigle & Associates, P.C. 3,750.00 3. Family Exemption: (If decedent's address is not the same as claimant's, attach explanation) 3,500.00 Claimant Mary Margaret Coffey Freeman Street Address 76 West King Street City Shippensburg State PA Zip 17257 Relationship of Claimant to Decedent Spouse 4. Probate Fees Register of Wills, Cumberland County 572.00 5. Accountant's Fees 6. Tax Return Preparer's Fees 7. Other Administrative Costs 3,690.07 See continuation schedule(s) attached TOTAL (Also enter on line 9, Recapitulation) 19,655.14 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule H (Rev. 6-98) , . . Rev-1502 EX+ (6-98) *' SCHEDULE H-A FUNERAL EXPENSES continued COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER Freeman, Albert W. 21-04-0729 ITEM NUMBER DESCRIPTION AMOUNT 1 Crider Meats - funeral reception 254.40 2 Fogelsanger-Bricker Funeral Home 6.888.67 3 Lutheran Church Sunday School Class - reception 1.000.00 Subtotal 8.143.07 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule H-A (Rev. 6-98) , . Rev-1502 EX+ (6-98) *' SCHEDULE H-87 OTHER ADMINISTRATIVE COSTS COMMONWEALTH OF PENNSYLVANIA continued INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER Freeman, Albert W. 21-04-0729 ITEM DESCRIPTION NUMBER AMOUNT 1 Cumberland Law Journal - advertising Letters Testamentary 75.00 2 Linda K. Klein - notary fee 10.00 3 News Chronicle - advertising Letters Testamentary 84.50 4 Register of Wills, Cumberland County - filing PA Inheritance Tax Return 15.00 5 Register of Wills, Cumberland County - filing Family Settlement Agreement 100.00 6 Register of Wills, Cumberland County - copies regarding Marian Freeman Estate 20.50 7 Steven W. Barrett Real Estate - appraisals of real estate 3.300.00 8 Weigle & Associates, P.C. - reimbursement for postage, xerox copies, and long 28.75 distance telephone calls 9 William A. Freeman, Executor - expenses 56.32 Subtotal 3.690.07 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 ScheduleH-B7 (Rev. 6-98) . . Rev-1512 EX+ (6.98) *' SCHEDULE I DEBTS OF DECEDENT, MORTGAGE LIABILITIES, & LIENS COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER Freeman, Albert W. 21-04-0729 Include unreimbursed medical expenses. ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1 Joseph V. Brown, CPA - accounting services owed at date of death 2.125.00 2 Notes payable from Freeman & Freeman Partnership - Albert W. Freeman 54% 117.151.81 interest: William Freeman 64,000; Joan Freeman 70,168; Ann Freeman 14,000; Citizens Bank 68,779.80 (216,947.80 x 54%) TOTAL (Also enter on Line 10, Recapitulation) 119,276.81 (If more space is needed, additional pages of the same size) Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule I (Rev. 6-98) . . REV.1513 EX+ (9-00) *' SCHEDULE J COMMONWEALTH OF PENNSYLVANIA BENEFICIARIES INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER Freeman, Albert W. 21-04-0729 NAME AND ADDRESS OF RELATIONSHIP TO SHARE OF ESTATE AMOUNT OF ESTATE NUMBER PERSON(S) RECEIVING PROPERTY DECEDENT (Words) ($$$) Do Not List Trustee(s) I. TAXABLE DISTRIBUTIONS [include outright sfrousal distributions, and ransfers under Sec. 9116(a)(1.2)] Mary Margaret Coffey Freeman Spouse Life-Estate in 0 76 West King Street 74-76 West Shippensburg, PA 17257 King Street, . Robert A. Freeman Son 1/2 503,009.17 117 San Carlos Avenue P. o. Box 2880 ".. ",""''''P William A. Freeman Son 1/2 503,009.17 5 Willow Run P. O. Box 128 PO" ....,..p.., Total 1,006,018.34 Enter dollar amounts for distributions shown above on lines 15 through 18, as appropriate, on Rev 1500 cover sheet II. NON-TAXABLE DISTRIBUTIONS: A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAXIS NOT BEING MADE B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS TOTAL OF PART 11- ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET 0.00 Copyright (c) 2002 form software only The Lackner Group, Inc. FormPA-1500 ScheduleJ (Rev. 6-98) . I . , .. LAST WILL AND TESTAMENT OF ALBERT W. FREEMAN I, ALBERT W. FREEMAN of Shippensburg, Pennsylvania, being of sound and disposing mind and memory, do make, publish and declare this to be my Will, hereby revoking any and all prior Wills and Codicils made by me. ARTICLE I Statement of Family Property Being Disposed. and Specific Bequests 1.1 Statement of Family, I hereby affirm that I am married to MARY MARGARET COFFEY FREEMAN (hereinafter referred to as "my wife") and as of the date hereof my now living children are WILLIAM A. FREEMAN, of Shippensburg, Pennsylvania, and ROBERT A. FREEMAN, of Kentfield, California. My wife's only child is FRANK COFFEY, III of Carlisle, Pennsylvania, and his only child is DAVID COFFEY. 1.2 Property Being Disposed. It is my intention to dispose of all my separate property wheresoever located. However, I do not intend to exercise any power of appointment which I now possess or which may hereafter by conferred on me, unless such power is specifically referred to herein or in any codicil hereto. Further, it is my intention that any and all property I inherit from my wife which has not been consumed shall be returned to the Coffey family for their use and enjoyment. 1.3 Personal Effects. I give and bequeath a life estate of any and all of my household. furnishings, automobiles, books, pictures, jewelry, watches, articles of adornment, wearing apparel and all other articles of household or personal use that I own at the date of my death, together with all property and casualty insurance policies that are in force at the date of my death with respect to any of said property, to my wife for her use during her lifetime, if she shall survive me by thirty (30) days; but if she shall fail to so survive me, or if she remarries, then to my sons who shall survive me by thirty (30) days; to be divided between them by my Executor in shares of substantially equal value, having due regard for their personal preferences, without adjustment in the event any said child shall receive under this Article I property of greater value than another child. 1.4 Family Residence. I give to my wife, if she shall survive me for a period. of thirty (30) days, a life estate in my house that she and I are using as our principal residence at the time of my death and my apartment building adjacent to my house, both located at 74 and 76 West King Street, Shippensburg, Pennsylvania, together with any insurance on the property. I give to my wife the use of my house and the apartment building adjacent to the house, subject to any WEIGLE & ASSOCIATES. P.c. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG. PA 17257-1397 . . I encumbrances on them at the time of my death, including any mortgages, deeds of trust, and real property taxes and assessments. If my wife does not survive me for a period of thirty (30) days, or if she remarries, then this gift shall lapse and my interest in the properties or their proceeds shall become part of the residue of my estate. If at any time my wife shall for any reason determine that it shall be advisable to sell either the house or the apartment building, then I direct that disposition of the properties be decided by my sons unanimously in writing, and their decision shall be final and binding on all parties to the disposition. ARTICLE II Residuarv Estate 2.1 Pour-Over to Trust. I give, devise and bequeath all the rest, residue and remainder of my estate, of whatever kind and character, whether real or personal and wheresoever located to which I shall be entitled in any way or in which I shall have any interest at the date of my death, including any and all lapsed bequests or devises hereunder (but excluding any property over which I may have a power of appointment, it being my intention not to exercise any such power by this Article), all of which is hereinafter referred to as my "residuary estate," to the then acting Trustee of the Albert Freeman Revocable Trust (hereinafter referred to as the "trust"), established under a certain Trust Agreement, heretofore executed, between myself as Grantor and as Trustee, to be added to and become a part of the trust estate of the trust, and to be held, administered and distributed pursuant to the provisions of said Trust Agreement as it shall have been last amended before my death. 2.2 Alternative Dispositions. If, on the date of distribution of my residuary estate, the trust shall not then be in existence or if, for any other reason, the gift, devise and bequest to the trust shall fail, then I give, devise and bequeath my residuary estate in trust to JAY MYERS, of Lancaster, Pennsylvania, as Trustee to be held, administered and distributed pursuant to the provisions of the Trust Agreement creating the trust as of the time of execution hereof, which provisions are incorporated herein by this reference; if however, such gift, devise and bequest shall fail for any reason, then I give, devise and bequeath one-third (1/3) of my residuary estate to my wife, and two-thirds (2/3) per stirpes to my descendants; but if my wife shall fail to survive me, then her share shall be distributed per stirpes to my descendants after a gift has been made to DAVID COFFEY of the sum ofTen Thousand Dollars ($10,000.00). ARTICLE III Executor 3.1 Appointment of Executor and Designation of Successor Executor. I hereby appoint my wife and WILLIAM A. FREEMAN as Co-Executors (hereinafter collectively referred to as my "Executor") of my Will. My sons jointly, or the survivor of them, shall be Successor Executor. WEIGLE & ASSOCIATES. P.c. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG, PA 17257-1397 . - . . 3.2 Debts, Taxes, and Treasury Bonds. My Executor shall payout of the principal of my residuary estate all of my debts (except those secured by mortgage, lien or other encumbrance not due and payable at the date of my death, unless otherwise provided herein), funeral expenses and costs of administration, including ancillary administration. My Executor shall also payout of the principal of my residuary estate, or make deposits therefrom to secure payments, all estate, inheritance, transfer and succession taxes, including any interest and penalties thereon, that may be assessed by reason of my death (hereinafter referred to as "death taxes"); provided, however, that if there shall be in existence a trust named and described in Article II hereof, and if such trust shall own at the date of my death United States Treasury Bonds that are redeemable at par value in payment of Federal estate taxes, then such Bonds shall be used to pay any Federal estate tax due before any asset of my probate estate is used, and my Executor shall make written demand of the Trustee to deposit such Bonds, to the extent useable, directly or to pay over the amounts thereof to my Executor, without reimbursement from my residuary estate to said trust. I hereby waive on behalf of my estate any right to recover from any person, including any beneficiary of insurance on my life, any part of any death taxes so paid, including any death taxes which are paid with respect to any property over which I have a power of appointment. My Executor shall not reimburse any person interested in any insurance policy on account of the application of any of the proceeds or surrender value of such policy in satisfaction of any indebtedness to which such policy is subject, nor shall said person be subrogated to the rights of the creditor in any collateral because of such indebtedness. If my Executor shall be compelled at any time to pay any death taxes with respect to my estate, my Executor shall be entitled to be reimbursed from the property of my estate, or if the property of my estate be then insufficient or if my estate be then distributed, my Executor shall be reimbursed by the person or persons to whom such property shall have been distributed to the extent of the amount received by each such person. My Executor, before making any distribution of either income or principal from my estate, may require an undertaking by said person or persons in form satisfactory to my Executor to reimburse him for all such taxes, including any interest and penalties thereon, or my Executor may withhold distribution pending release of any tax lien or the determination of any tax controversy. 3.3 Exculpatory Clause. My Executor shall not be liable for any loss to my estate = occasioned by acts in good faith or in his reliance on an opinion of counsel in the administration of my estate and, in any event, my Executor shall be liable only for willful wrongdoing or gross negligence. 3.4 Executor's Compensation and Expenses. My Executor shall be entitled to receive from my estate a fair and just compensation for services rendered as Executor and my Executor shall also be reimbursed for all reasonable expenses incurred by him in the management, protection and distribution of my estate. 3.5 Executor's Powers. In addition to the powers conferred by law upon executors, and not by way of limitation thereof, my Executor is hereby authorized in the sole discretion of my Executor to exercise the following powers without approval by or authorization of any court: WEIGLE & ASSOCIATES. P.c. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG, PA 17257-1397 . , (a) to make allocation, division or distribution of my estate in kind, or partly in kind and partly in money, and to determine the value of property so allocated, divided or distributed; (b) to sell, or to offer to sell, for cash, credit or in installments, at public or private sale, to grant options to purchase and to convey any and all of the property at any time forming a part of my estate, for such price, and upon such terms as my Executor shall determine; (c) to lease or license the use of any tangible or intangible personal property at any time forming a part of my estate upon such terms as my Executor shall determine; (d) to borrow money from any person~ partnership, corporation, trust, including my Executor; to extend or renew any such existing indebtedness, and to mortgage or pledge any property at any time fonning a part of my estate; (e) to settle, compromise, contest, agree to arbitrate and be bound thereby, extend the time for payment, consent or abandon claims or demands in favor of or against my estate; (f) to sell, convey, release, mortgage, encumber, lease, partition, improve, repair, manage, insure against loss, protect and subdivide any real estate, interests therein or parts thereof; to direct, or to authorize any other person to direct, the trustee of any land trust of which my estate is a beneficiary to mortgage, lease, conveyor contract to convey the real estate held in such land trust; (g) to purchase or otherwise acquire for cash, credit or in installments, retain, hold, invest and reinvest in any type or types of assets real or personal, within or without the United States of America, notwithstanding any statute or rule of law regarding investments by executors or the fact that any asset may constitute all or a large portion of my estate, including but not limited to common stocks, bonds, notes, debentures, mortgages, preferred stocks, puts or calls, voting. trust certificates, beneficial interests in land trusts, interests or shares in common trust funds, "open-end" or "closed-end" investment funds or trusts, real estate investment trusts or other property, or savings and loan or building and loan associations, oil, gas or other mineral interests or natural resources, livestock or other animals, commodities, foreign exchange, insurance or endowment policies, annuities, variable annuities or other property or undivided interests in. property, (without regard to whether such shall be listed on any stock exchange or other public market, registered with any securities commissions or similar bodies or subject to contractual, legal or other restrictions, including "investment letter" restrictions), and including any business or business interests, as shareholder, creditor, partner, sole proprietor, or otherwise, although closely or privately held, and to manage, or to participate in the management of, such business or to rely upon others to do so, to rely, without independent investigation, upon the reports WEIGLE & ASSOCIATES, P.c. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG, PA 17257-1397 . . , . of certified public accountants as the operations and financial condition of any such business, to participate in any incorporation, reorganization, merger, consolidation, recapitalization, liquidation or dissolution of such business or any change in its nature and to retain and continue such change or successor business; to abandon any property, real or personal, as my Executor shall deem to be worthless or not of sufficient value to warrant keeping or protecting; to open accounts, margin or otherwise, with brokerage firms, banks or others, and to invest the funds of my estate in, and to conduct, maintain and operate such accounts directly or through an agent for the purchase, sale and exchange of commodities, stocks, bond, and other securities, and in connection therewith, to borrow money, obtain guarantees, and engage in all other activities necessary or incidental to conducting, maintaining and operating such account. (h) to employ and pay reasonable compensation to such agents, brokers, trustees, title- holders, escrowees, custodians, depositories, accountants, attorneys, investment counsel, appraisers, insurers and others (who may be any firm with which my Executor is associated) as may be necessary or desirable in managing, protecting and settling my estate, and to execute any general or limited direction or power of attorney to reflect such employment; (i) to cause any securities, bank accounts, safety deposit boxes, vaults or other property which may at any time form a part of my estate to be issued, held or registered in the name of my Executor, either with or without indication of any fiduciary capacity or in the name of a nominee, or in such form that title will pass by delivery; G) to pay premiums on, apply for, purchase, accept, own and retain certain insurance policies and annuity contracts on the life of any person; and to exercise any or all rights, powers and privileges which the owner of such policies or contracts may have thereunder; (k) to open and maintain one or more savings accounts or checking accounts and to rent one or more safety deposit boxes or vaults with any bank, trust company, safe deposit box company, savings and loan or building and loan association, wherever located, whether within or without the United States of America, even if, in the case of a bank or trust company, it shall be acting as my Executor; to deposit to the credit of such account or accounts all or any part of the funds. belonging to my estate whether or not such funds may earn interest; from time to time to remove some or all of the items placed in any safety deposit box or vault, or to withdraw a portion or all of the funds so deposited, by check, written direction or other instrument signed by my Executor or such other person or persons as my Executor may from time to time authorize, and any such bank, company or association is hereby authorized to allow such person or persons access to the box or vault and to pay such check or other instrument and also to receive the same for deposit to the credit of any holder thereof when so signed and properly endorsed without WEIGLE & ASSOCIATES, P.c. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG, PA 17257-1397 , . , . inquiry of any kind, and access when so allowed and payments when so made shall not be subject to criticism or objection by any person concerned or interested in any way in my estate; (1) to make loans to any legatee or devisee of my estate, without interest and without security, or to make loans to any other person, sole proprietorship, partnership, corporation, trust or estate upon such terms as my Executor in his sole discretion may deem advisable, and any such loan may be with or without security and may be subordinated to other obligations of the indebted party; (m) to claim any item which would qualify as an administration expense in my Federal estate tax return as a deduction in any Federal income tax return to be filed for my estate or to elect to take any medical expense of my last illness as a deduction in a Federal income tax return to be filed for me, and to exercise or to consent to the exercise of any other election available under any tax law, in such manner as in the sole judgment of my Executor will achieve an overall reduction in income and death taxes for the benefit of my estate, despite the fact that any such election thereby increases or decreases my adjusted gross estate for Federal estate tax purposes, and I hereby direct that no adjustment between income and principal or in the amount of any bequest or devise under my Will shall be required to be made or shall be made as a result of any such election; (n) to join with any person (or with the personal representative of any such person) with whom I shall be entitled to file any joint (including separate returns which "split" the income or gift involved) Federal, State or municipal income, declaration of estimated income, information or gift tax return covering any period of time for which such returns have not been filed; to otherwise affirm or disaffirm in any manner the filing by such person of any such joint return covering any period of time for which such joint return may be filed; and to pay in connection with any such return such taxes, including any interest and penalties thereon, as may seem proper to my Executor, without the necessity of seeking reimbursement for any portion thereof from any such person (and if my Executor shall not seek reimbursement, there shall not be deemed to be any right of reimbursement or contribution existing); any action taken by my Executor pursuant to this authority shall be binding and conclusive upon all legatees and devisees of my estate; and (0) to pay all storage, packing, shipping, insurance and other charges relative to the distribution of any tangible or intangible personal property in my estate. 3.6 Legatee Under Disability. If at the date of my death or at the date of distribution of any part of my estate, any legatee or devisee under my Will shall be a minor, under other legal disability or not adjudicated incompetent, but who, by reason of illness or mental or physical disability, in the sole discretion of my Executor shall be unable to administer properly such property then such property may be distributed by my Executor for the benefit of said legatee or WEIGLE & ASSOCIATES. RC. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG, PA 17257-1397 . , . devisee to such one or more of the following distributees whom my Executor in his sole discretion shall deem best under the circumstances: (a) to said legatee or devisee directly; (b) to the legally appointed Guardian or Conservator of the Estate of said legatee or devisee; (c) to a parent of said legatee or devisee; and, in the case of a minor, (d) to a Custodian under any Uniform Gifts to Minors Act ("Act") of any applicable jurisdiction (but if there shall not then be a Custodian for said minor under such Act, then my Executor may designate a Custodian from among those willing and eligible to serve under the law of such jurisdiction). Upon making such distribution, the receipt by any such distributes of such property shall constitute a full release and discharge to my Executor, and my Executor shall not be obligated to see to the application of any money or property so distributed. 3.7 Meaning of Executor. Wherever reference is made herein to "my Executor," such reference shall be deemed to include without limitation the plural and the feminine form thereof wherever the context and facts require, any and all successor Executors at any time qualified to act and acting as Executor of my Will; any and all Administrators With the Will Annexed, Administrators De Bonis Non With the Will Annexed and. the Administrators De Bonis Non for the time being in office and any and all ancillary Administrators or Executors. 3.8 Bond. I direct that no Executor designated herein shall be required to give any bond, and if, notwithstanding this direction, any bond is nevertheless required by any law, statute or rule of court of any applicable jurisdiction, I direct that no surety be required thereon. 3.9 Vacancy. Except as otherwise provided herein, a vacancy in the executorship shall be deemed to exist in the event of the death, resignation, refusal, failure or inability of any person to serve as Executor. The successors named herein shall fill any such vacancy, in the order and manner provided. ARTICLE IV Construction , 4.1 Descendants. As used herein, the following terms shall have the indicated meanings: (a) the term "descendant" shall be interchangeable with the term "issue" and shall mean a descendant in the first, second or any other degree of the designated ancestor; (b) the term "child" shall mean a descendant in the first degree of the designated parent; and (c) the term "grandchild" shall mean a descendant in the second degree of the designated grandparent; provided, however, that only an adopted child who shall not have attained the age of twenty-one (21) years prior to adoption and the descendants of any such adopted child shall be regarded as descendants of the adopting parent or parents and of anyone who is by blood or adoption an ancestor of the adopting parent or parents (and in such event shall be regarded for all purposes herein); further provided, however, that the term "descendant" shall not include any person who shall not then be considered "legitimate" under the laws of the State where such person shall then be domiciled. All terms herein defined shall include the plural form thereof wherever the context and facts so require. WEIGLE & ASSOCIATES. P.c. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG, PA 17257-1397 . . , . 4.2 Per Stirpes. As used herein, the tenn "per stirpes" shall have its accepted. legal meaning; for example, if a distribution is to be made "per stirpes" to the descendants of a specified person and one or more of said specified person's children shall be deceased but shall be survived by a then living child or children (and no child or children of said deceased child of said specified person shall then be deceased), then the share which would otherwise have been distributable to each such deceased child of said specified person had such child then been living shall be distributed in equal shares to the then living child or children of each such deceased child, with the effect that the child or children of each such deceased child of said specified person shall receive by right of representation the share which his or their parent would have received had such parent then been living, and this shall apply if all the children of said specified person shall be deceased. 4.3 After-Born Child. I have provided by my Will and otherwise for all of my children, whether born to or adopted by me before or after the time of execution hereof to the extent I desire, and no child born to or adopted by me before or after the time of execution hereof shall be entitled to receive from my estate property greater in value than I have specifically provided. 4.4 Pronouns. As used herein, all pronouns shall include the masculine, feminine, neuter, singular and plural thereof wherever the context and facts require such construction. 4.5 Headings. The headings, titles and subtitles are inserted for convenience of reference only and are to be ignored in any construction of the provisions hereof. IN WITNESS WHEREOF, I have signed my Will this 21st day of March ,2003. , , ., (SEAL) Sworn or affirmed to and acknowledged before me by Alb~. Freeman,th.e Testtor, this . L /./ day of (1)' kttl ' G,' 2003. ~ C! 'i L/ / . . NOT , AL SEAL Jerry A. Wei~ e, Notary Public Shippensburg, PA Cumberland C<:lunty My Commission Expires October 7, 2006 WEIGLE & ASSOCIATES. RC. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG. PA 17257-1397 .. ... , . We hereby certify that the foregoing instrument was, in the presence of us on the date last above written, declared by the Testator to be his Will, and he requested us to act as witnesses thereto, and we, in his presence and in the presence of each other, believing him to be of sound mind and memory, acting voluntarily and not under duress or constraint of any kind, saw him sign the said instrument as aforesaid, and thereupon we signed our names as attesting witnesses to said Will. We declare under penalty of perjury that the foregoing is true and correct. "'i1 (jc' '-~~ -) l/. (:iZ" ().J2~ residing at (( I 1 E. () (~/J S4r <"-J- .' J ,5 h \ fT"Ec r).s b lL'() , P4 ( 7 d. '57 I ' ..) ; 1/ .~; I ) 'j;. ,,::,\', "-'} ",' . . , ' ,')..' ....," I, / j \.J2'-z-- /'71. ,-r; .+-1- :r resIdmg at~";;N.J- ,v'.'/U}~..J.. ' . .il .,). .:.). _) - . '\lA;r"1; '.{..'7V. 1.. i)j..''\....l' " \ /.'.'., it './ Jd !:J /'\ .' ( \ ;1 ,," l r . l' II . / r"). -i '~~i i / Ill." ..; l /' Ll Ij t,j C{ residing at / ~ II I' f 0 c(;;" () It I 1)1&, e ;]Yc: I ,cr-' (. I / -.. - .1 /... ..../ . .'. , " /" . 5-& ;. KJv, ./ /; l VI (,..1 I #~f t /7 ';}-S 7 f' , Sworn or affirmed to and subscribed before me by Marjorie M. Fleagle , Diane M. Bradley , and Betsy DeGregorio witnesses, this '1 ki>f day of If'J'1>>vuJ.{... , 2003. ( \ ..' NOT . IAL SEAL Jerry A. Weigle, Notary Public Shlppensburg, PA Cumberland County M Commission Ex ires October 7, 2006 WEIGLE & ASSOCIATES, RC. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG, PA 17257-1397 ~f'_fo,......-...,,- ~"'&-...c:lI"'IIIlii:iiJQ'" ,. - --......--r...- , No. Date Pr.inc.ipal. Payment Payment Payment ----------------------------------~------------------~------------------------ 1 11/15/94 177,860.00 1,306.28 205.03 1,101.25 2 12/15/94 177,654.97 1,306.28 206.30 1,099.98 ------------------------------------------------------------------------------ Totals For 1994 are 2,612.56 411.33 2,201.23 3 01/15/95 177,448.67 1,306.28 207.58 1,098.70 4 02/15/95 177,241.09 1,306.28 208.86 1,097.42 5. 03/15/95 177,032.23 1,306.28 210.16 1,096.12 6' 04/15/95 176,822.07 1,306.28 211.46 1,094.82 7 05/15/95 176,610.61 1,306.28 212.77 1,093.51 8 06/15/95 176,397.84 1,306.28 214.08 1,092.20 9 07/15/95 176,183.76 1,306.28 215.41 1,090.87 10 08/15/95 175,968.35 1,306.28 216.74 1,089.54 11 09/15/95 175,751.61 1,306.28 218.08 1,088.20 12 10/15/95 175,533.53 1,306.28 219.43 1,086.85 13'11/15/95 175,314.10 1,306.28 220.79 1,085.49 14 12/15/95 175,093.31 1,306.28 222.16 1,084.12 ------------------------------------------------------------------------------ Totals For 1995 are 15,675.36 2,577.52 13,097.84 15 01/15/96 174,871.15 1,306.28 223.54 1,082.74 16 02/15/96 174,647.61 1,306.28 224.92 1,081. 36 17 03/15/96 174,422.69 1,306.28 226.31 1,079.97 18 04/15/96 174,196.38 1,306.28 227.71 1,078.57 19 05/15/96 173,968.67 1,306.28 229.12 1,077.16 20 06/15/96 173,739.55 1,306.28 230.54 1,075.7.4 21 07/15/96 173,509.01 1,306.28 231.97 1,074.31 22 08/15/96 173,277.04 1,306.28 233.41 1,072.87 23 09/15/96 173,043.63 1,306.28 234.85 1,071.43 24 10/15/96 172,808.78 1,306.28 236.31 1,069.97 25 11/15/96 172,572.47 1,306.28 237.77 1,068.51 26 12/15/96 172,334.70 1,306.28 239.24 1,067.04 ------------------------------------------------------------------------------ Totals For 1996 are 15,675.36 2,775.69 12,899.67 27 01/15/97 172,095.46 1,306.28 240.72 1,065.56 28 02/15/97 171,854.74 1,306.28 242.21 1,064.07 29 03/15/97 171,612.53 1,306.28 243.71 1,062.57 30 04/15/97 171,368.82 1,306.28 245.22 1,061. 06 31 05/15/97 171,123.60 1,306.28 246.74 1,059.54 32 06/15/97 170,876.86 1,306.28 248.27 1,058.01 33 07/15/97 170,628.59 1,306.28 249.80 1,056.48 34 08/15/97 170,378.79 1,306.28 251.35 1,054.93 35 09/15/97 170,127.44 1,306.28 252.91 1,053.37 36 10/15/97 169,874.53 1,306.28 254.47 1,051.81 37 11/15/97 169,620.06 1,306.28 256.05 1,050.23 38 12/15/97 169,364..01 1,306.28 257.63 1,048.65 , . ,., ... t ---- ---- -------.. ..........................~ Due Pri.nci.pa~ Int.erest. ..0. Date Principal Payment P~yment. Payment ---------~-------------------------------------------------------------------- ------------------------------------------------------------------------------ Tota1.s For 1997 are 15,675.36 2,989.08 12,686.28 39 01/15/98 169,106.38 1,306.28 259.23 1,047.05 40 02/15/98 168,847.15 1,306.28 260.83 1,045.45 41 03/15/98 168,586.32 1,306.28 262.45 1,043.83 42.04/15/98 168,323.87 1,306.28 264.07 1,042.21 4:J 05/15/98 168,059.80 1,306.28 265.71 1,040.57 44 06/15/98 167,794.09 1,306.28 267.35 1,038.93 45 07/15/98 167,526.74 1,306.28 269.01 1,037.27 46 08/15/98 167,257.73 1,306.28 270.68 1,035.60 47 09/15/98 166,987.05 1,306.28 272.35 1,033.93 48 10/15/98 166,714.70 1,306.28 274.04 1,032.24 49 11/15/98 166,440.66 1,306.28 275.73 1,030.55 50 12/15/98 166,164.93 1,306.28 277.44 1,028.84 ------------------------------------------------------------------------------ Totals For 1998 are 15,675.36 3,218.89 12,456.47 51 01/15/99 165,887.49 1,306.28 279.16 1,027.12 52 02/15/99 165,608.33 1,306.28 280.89 1,025.39 53 03/15/99 165,327.44 1,306.28 282.63 1,023.65 54 04/15/99 165,044.81 1,306.28 284.38 1,021.90 55 05/15/99 164,760.43 1,306.28 286.14 1,020.14 56 06/15/99 164,474.29 1,306.28 287.91 1,018.37 57 07/15/99 164,186.38 1,306.28 289.69 1,016.59 58 08/15/99 163,896.69 1,306.28 291.49 1,014.79 59 09/15/99 163,605.20 1,306.28 293.29 1,012.99 60 10/15/99 163,311.91 1,306.28 295.11 1,011.17 61 11/15/99 163,016.80 1,306.28 296.93 1,009.35 62 12/15/99 162,719.87 1,306.28 298.77 1,007.51 ------------------------~----------------------------------------------------- Totals For 1999 are 15,675.36 3,466.39 12,208.97 63 01/15/2000 162,421.10 1,306.28 300.62 1,005.66 64 02/15/2000 162,120.48 1,306.28 302.48 1,003.80 65 03/15/2000 161,818.00 1,306.28 304.36 1,001.92 66 04/15/2000 161,513.64 1,306.28 306.24 1,000.04 67 05/15/2000 161,207.40 1,306.28 308.14 998.14 68 06/15/2000 160,899.26 1,306.28 310.05 996.23 69 07/15/2000 160,589.21 1,306.28 311.97 994.31 70 08/15/2000 160,277.24 1,306.28 313.90 992.38. 71 09/15/2000 159,963.34 1,306.28 315.84 990.44 72 10/15/2000 159,647.50 1,306.28 317.80. 988.48 73 11/15/2000 159,329.70 1,306.28 319.76 986.52 74 12/15/2000 159,009.94 1,306.28 321.74 984.54 ------------------------------------------,------------------------------------ Totals For 2000 are 15,675.36 3,732.90 11,942.46 . .. .. ., ---- ---- --------- --------- Due Principal Interest .40. Date Principal Payment Payment Payment ------------------------------------------------------------------------------ 75 01/15/2001 158,688.20 1,306.28 323.'74 982.54 76 02/15/2001 158,364.46 1,306.28 325.'74 980.54 7' 03/15/2001 158,038.'72 1,306.28 32'7.'76 978.52 '8 04/15/2001 15'7,'710.96 1,306.28 329.79 976.49 '79 05/15/2001 15'7,381.1'7 1,306.28 331.83 974.45 80 ~6/15/2001 15'7,049.34 1,306.28 333.88 9'72.40 8t' 07/15/2001 156,'715.46 1,306.28 335.95 9'70.33 82 08/15/2001 156,3'79.51 1,306.28 338.03 968.25 83 09/15/2001 156~041.48 1,306.28 340.12 966.16 84 10/15/2001 155,'701.36 1,306.28 342.23 964.05 85 11/15/2001 155,359.13 1,306.28 344.35 961.93 86 12/15/2001 155,014.'78 1,306.28 346.48 959.80 ------------------------------------------------------------------------------ 'fotal.s For 2001 are 15,6'75.36 4,019.90 11,655.46 87 01/15/2002 154,668.30 1,306.28 348.63 957.65 88 02/15/2002 154,319.6'7 1,306.28 350.78 955.50 89 03/15/2002 153,968.89 1,306.28 352.96 953.32 90 04/15/2002 153,615.93 1,306.28 355.14 951.14 91 05/15/2002 153,260.'79 1,306.28 357.34 948.94 92 06/15/2002 152,903.45 1,306.28 359.55 946.73 93 0'7/15/2002 152,543.90 1,306.28 361.'78 944.50 94 08/15/2002 152,182.12 1,306.28 364.02 942.26 95 09/15/2002 151,818.10 1,306.28 366.27 940.01 96 10/15/2002 151,451.83 1,306.28 368.54 937.74 97 11/15/2002 151,083.29 1,306.28 3'70.82 935. 46 98 12/15/2002 150,'712.4'7 1,306.28 373.12 933.16 ------------------------------------------------------------------------------ Total.s For 2002 are 15,675.36 4,328.95 11,346.41 99 01/15/2003 150,339.35 1,306.28 375.43 930.85 100 02/15/2003 149,963.92 1,306.28 37'7.75 928.53 101 03/15/2003 149,586.17 1,306.28 380.09 926.19 102 04/15/2003 149,206.08 1,306.28 382.45 923.83 103 05/15/2003 148,823.63 1,306.28 384.81 921.47 104 06/15/2003 148,438.82 1,306.28 387.20 919.08 105 07/15/2003 148,051.62 1,306.28 389.59 916.69 106 08/15/2003 147,662.03 1,306.28 392.01 914.27 107 09/15/2003 147,270.02 1,306.28 394.43 911.85 108 10/15/2003 146,875.59 1,306.28 396.88 909.40 109 11/15/2003 146,478.71 1,306.28 399.33 906.95 110 12/15/2003 146,079.38 1,306.28 401.81 904.47 ------------------------------------------------------------------------------ Totals For 2003 are 15,675.36 4,661.'8 11,013.58 111 01/15/2004 145,677.57 1,306.28 404.29 901.99 112 02/15/2004 145,273.28 1,306.28 406.80 899.48 , , , ). . Due Principa~ Interest .0. Date Principa~ pal'JDent payment Payment ------------------------------------------------------------------------------ 113 03/15/2004 144,866.48 1,306.28 409.32 896.96 114 04/15/2004 144,457.16 1,306.28 411.85 894.43 115 05/15/2004 144,045.31 1,306.28 414.40 891.88 116 06/15/2004 (~l3,630]1 1,306.28 416.97 889.31 117 07/15/2004 1i3,213.~ 1,306.28 419.55 886.73 -----~----------------------------------------------------------------------- 'l'otaXh For 2004 are 9,143.96 2,883.18 6,260.78 4 . " . , . +: CITIZENS BANK 525 William Penn Place Suite 153-25 I 0 Pittsburgh, PAl 52 I 9 September 7, 2004 SEP 9 2DO~ WEIGLE & ASSOCIATES P.c. 126 EAST KING STREET SHIPPENSBURG, PA 17257-1397 Estate of ALBERT W FREEMAN Date of Death: Jul 02, 2004 SSN: 172-26-9794 Dear Sir/Madam: In accordance with your request, the attached information sheet has been provided in the above decedent's name as of hislher date of death. For IL or LC accounts, contact our Loan Department at 1-800-708-6680. For all other inquiries, please call 1-888-999-6884. Sincerely, ~~~~ Robert Roos Operations Services 4- ~ , , , . .~ CITIZENS BANK Account Number 6100093816 Account Title ALBERT FREEMAN Date Opened 3/29/80 Account Type Checking Principal Balance as ofDOD $1977.62 Interest from Last Posting to DOD $.00 Account Balance as of DOD $1977.62 YTD Interest to DOD $.00 I c . l. . , . . .:: CITIZENS BANK Account Number 6204204436 Account Title ALBERT FREEMAN Date Opened 5/24/03 Account Type Checking Principal Balance as ofDOD $8183.56 Interest from Last Posting to DOD Account Balance as ofDOD $8183.56 YTD Interest to DOD $40.82 . . . ,. o JPMorganChase SOCIALsEqUAfrYNPJTAi(1D NO. ACCOUNT NUMBER 20-6247946 12929485790 1;Af,-~ 02/11/ WILLIAM A FREEMAN EXEC {tyl pjaYi 0213458 EST ALBERT W FREEMAN PO BOX 128 3,745. SHIPPENSBURG PA 17257 o. o. 3,745. DEFINED ASSET FUNDS - MUNI INVESTMENT TR TERMINATED ISSUE REFER QUESTIONS ON THIS STATEMENT TO 1.800-428-8890 - DETACH HERE AND RETAIN THIS STATEMENT . , , , . Delaware Investlllents'M SEP 3 2004 A member of Lincoln Financial Group. September 1, 2004 2005 Market Street Jerry A. Weigle Philadelphia, PA 19103-7094 Weigle & Associates, P.c. Attorneys-at-Law 126 East King Street Shippensburg PA 17257-1397 Re: Delaware Balanced Fund A Class #2-5021053401 Albert W. Freeman and Marian E. Freeman Tenants In Common 00229195201 Dear Mr. Weigle: We were sorry to learn of the deaths of Albert W. Freeman and Marian E. Freeman. Please extend our sincere condolences to the family on behalf of Delaware Investments. We received your request for the date-of-death balance of the account listed above. I will be glad to provide you with this information. On July 2, 2004, the above account reflected a balance of 2.867 shares of the Delaware Balanced Fund A Class. The Delaware Balanced Fund is a mutual fund with a daily fluctuating price per share. The net asset value of the Fund on that day was $15.51. Therefore, the value of this account on the date of death was$44.47. ----- Because this account is registered as "tenants in common'~ each account owner has 100% ownership of the account while living. In the event of deceased shareholder, the shares pass on the heirs of the estate, not the surviving owner. In order to liquidate shares from this account due to the deaths of Dr. and Ms. Freeman, please provide us with: A certified copy of each court document !~e .J;:sta~~ of Albert W. Freeman and Marian E. Freeman. These documents must be dated within 90 days of our receipt and be affixed with theiilse<fcouiisea:Ur- ... - -- ..-------- A signature guaranteed letter from the executors of Dr. Freeman's estate and Ms. Freeman's estate authorizing us to liquidate this account. Signature guarantees are used acrossthe irivestment industry toprotect-'Siiiireholder accounts from any unauthorized activity. A signature guarantee can be obtained from a bank or brokerage firm where the executors maintain an aCCOWlt. A notarization by a notary public is not acceptable, as it does not provide the complete legal protection that is necessary to process this request. The letter from the executors should include their name, address, date of birth and Social Security Number for verification purposes. The outstanding 2.000 certificate shares must be returned to our office. We suggest using certified or registered mail when returning the shares to our office. If the executors are unable to locate the certificate shares, please contact our office at your earliest convenience. A stop transfer will be placed on the 2.000 shares and we will provide you with the appropriate forms that are needed in order to secure replacement ofthe certificates. If you have any questions, please contact our Service Center directly at 1-800-523-1918. Our representatives are available Monday through Friday, between 8:00 a.m. and 8:00 p.m. Standard Time and will be happy to assist you. Sincerely, ~~ Cecelia Driscoll Client Services Representative Delaware Investments is the marketing name for Delaware Management Holdings, Inc. and its subsidiaries. www.delawareinvestments.com . . , . ..,ft~ ~ - -....... --- - - --- - - --- === ====' ~ ----..-.--.-----..--........----- -..--..--------.--.--.--..-....---...-..-..------...-----." --- -....-.--.--....----.--..-...---.--.---..--.----.--.-----....------.--....--.--....-.---....-....---- Rnmclal DaIo SeMces. Inc. lil~ifllJJ1.IIIIII'Jmillli~ Page 2 of 2 iif~~~lgJ'l~~gJl~~llJII~II~R!~j~~jJl - - Merrill ~nch Mutual Funds - 8 -MER-FUND - (800-637-3863) - - ALBERT W FREEMAN - 76 WEST KING ST Order Transaction Dollar Share Shares this Total Date Date Description Amount Price Transaction Balance &llm!!I!lltitlillll"'lt!.i.)I'&I!lill~~r~il~dl'i~',~I~#f.~~~II~f~ii~i~~[~~l~~liff~~lI~~~~i(1~~~tj~~~i~fll OPENING BALANCE 0.000 04/02/04 04/02/04 PURCHASE $10,262.87 $10.473 979.853 979.853 04/22/04 04/22/04 ORDINARY INCOME DIVIDEND $25.75 $10.420 2.471 982.324 AT $ .044398 REINVESTED (** TAX-EXEMPT INCOME **) OS/21/04 OS/21/04 ORDINARY INCOME DIVIDEND $44.61 $10.230 4.361 986.685 AT $ .045409 REINVESTED (** TAX-EXEMPT INCOME **) k'---- 06/22/04 06/22/04 ORDINARY INCOME DIVIDEND $44.34 $10.250 4.326 (~~ AT $ .044942 REINVESTED (** TAX-EXEMPT INCdME **) 07/22/04 07/22/04 ORDINARY INCOME DIVIDEND $43.87 $10.370 4.230 995.241 AT $ .044268 REINVESTED (** TAX-EXEMPT INCOME **) 08/20/04 08/20/04 ORDINARY INCOME DIVIDEND $45.48 $10.470 4.344 999.585 AT $ .045701 REINVESTED (** TAX-EXEMPT INCOME **) 09/21/04 09/21/04 ORDINARY INCOME DIVIDEND $44.53 $10.530 4.229 1,003.814 AT $ .044545 REINVESTED (** TAX-EXEMPT INCOME **) 10/21/04 10/21/04 ORDINARY INCOME DIVIDEND $44.27 $10.560 4.192 1,008.006 AT $ .044104 REINVESTED (** TAX-EXEMPT INCOME **) 11/19/04 11/19/04 ORDINARY INCOME DIVIDEND $45.61 $10.500 4.344 1,012.350 AT $ .045247 REINVESTED (** TAX-EXEMPT INCOME **) 12/21/04 12/21/04 ORDINARY INCOME DIVIDEND $44.05 $10.540 4.179 1,016.529 AT $ .043510 REINVESTED (** TAX-EXEMPT INCOME **) CLOSING BALANCE 1,016.529 ~~r'~_._~ ~J~~~~~S:J ::~;::~~--m___-_~~~l!l;L~~~~*!;;m~ 7 - L -0 'i p,...:tA. '1 P~,_ff- Sh~Vv p~ ::.. le,77 Cj9/, oIl @ 10,77 ;; jo,b13/8' 52, 134 MER 2 of 2 DOM 2 MLAM.DOMPPRTY.FOLD02 01101/05 012134026067 (11002-0260671 lOAN STATEflENT" O&-Ol-1t"r-- Paga- 1_ AccoOrit060-Q001-OS12462-0101. . .' .'. . . ......_ '.__n. .~~. W:rLLIAH AFREatAN $'381.;8.9 p.O 90Xl2.& sttlPPB4sBURB' PIt- 1725'1- . TOTAL AMOUNT DUE Tof.cn....-gecfTii Ace-f Reidt:tanc4. AIIaunt $1)....00 __"_'~__J_~"'_ -,--____.r_.';..___.,".___. .__n ~.,_.__~_._ ..._ ._~.~_. ,,,,,"~,,,,_,.~....._..,....~__,,~_.,_. ,,,..~_,,,..__,,_.__._.___:---,,.-.,__.~.__.__._. ,_ne '''''~_'~''_'____~~_--:''''-'_''''___'_'_'' ' ,'_.. . ........~~-_~,:,"tl;......:.:.:..~ :t1~'PI; DAlEo.!~~:r.2 , .: DATE IRAm~lldN$-- ~.. rm;c- l1l:tILIS Y<t:UL I~ -- 07-15-04 6.50000 BALANCE-FORWARD 68;719,80 1J1,::rs';'04 pAYMENT 6.50000 . 68,719.$0 ~"04" 1"AvtlEN'f- . 6'.!i~- 5:51 :58 - 68';2'Z8';:tt .. oa",l5:-1)4 IH:rEREU- 6...50004.. "h22&-.-22- Balance $68,228.22 l"OTftL .APIOtJNT-~.- $924-~U'- . A"ouni: NultbeJ" 610009381.6 HULDa. ,Char.pl:l.. $92.4..J.1..on _o8"';is.,.Q4. '- Ini:er-esi: paid In 2003. including any pointsand_1ate.charges: ..$5.319.57 PIVItIENTS.AMl-Atl'MNCE$.-t1AL1E-~lER-'10UR-s::u.m1EH1-l)A.lI:-W1LL' ~M-QN:- . . NEXT HOI'ITWSSTATEtlENT. IF YOU-HAVE ANY QUESJJDNS.f'l...EASE".CALLYDlB RELATIONSH1P-HANAGER~ .QR-1-804-403-2736 WEEKDAVS -FROM . 8-AHT05 PH ANIJ -A'CUSTDflS~"~l:t(vJ.u:~TIVE"'wnI.:BE 'HAPPY TO"A$StST"YOU~' "",-"-,_~,__""___",,,,'''_'''~''V"'''''_'~'~'.''.~'"',,,^,.'_~''''''"._.... .,. _.."._._.u,_._.....~,. .."._"...,_,._~,.'"'-'__^___,.,-:'-.,._._..._.~>'__._.'>"""-,__....,~ .-."._.~~..,-."~.-,."_,, ~. .>-_,~.. .'.'0._....'.'._ --..---.,'...."~-- --~. .." -- -_.~-.".---'~,.~"".._.-.--''',.'..._"."'~.....-.~-,--~-,~.....~ .-.----.......~,... Se~.~ y";~;.fH~;e 'sl(h~ for -important -ir:rfcinnaHon. Pl.e:,:.t;,-:.- f~:,tum portion ?}ith Y;-jtil' dH~ck payat;.i,r;- t.':! Gtil€:115 Bank. ,- CITIJEi\TS B \NK. Account 060~OOOl-0572462~0101 DUE DATE 08-15- OC "6" . __ 1..\ fl.. PaYlllent Address: AlIouni: .Due... $924_11 P.O. Box 9799 l;,...te Charge $1J . Of Providence RI: 02940-9799 (,n \'(';,';::>r-;e s;d(~. TOTAL- AHOUNT- DUE $.92.4.1~ WILLIAtt--A- 'F~AIt" . AcrartTonal' .Pt".tric1pal' If' P (}. BQlt..-128-- Addit-ieftti- -Es_ -$-- SHIPPENSBURGPA' 17257 Late "Charges $ - Other -AlIIeunt Enclosed $ TotAL' AHOUWT 'ENCLOSeD" ~ 2'4- OO-HMO-oo{) 1- . as. 1-246--2- - {} -1 &1-&OOOOOfr -0??oo00000- - .(}{}&OOf}f){}e& . 0 o&a --, . / "If · STEVEN W. BARRETT REAL ESTATE AND APPRAISAL SERVICES . \, 124 N. HANOVER STREET, CARLISLE, PA 17013 (717) 243-6646 File No. 05..Q072 APPRAISAL OF LOCATED AT: 74 W. King Street Shippensburg, PA 17257-1236 FOR: Dr. William A. Freeman 67 West King Street Shippensburg, PA 17257 BORROWER: FREEMAN, William A. AS OF: f < STEVEN W. BARREn REAL ESTATE AND APPRAISAL SERVICES 124 N. HANOVER STREET, CARLISLE, PA 17013 (717) 243.6646 File No. 05.0072 ..--....-.---. .-- ..-......--.-...-, 03/25/2005 Dr. William A. Freeman 67 West King Street Shippensburg, PA 17257 File Number: 05-0072 In accordance with your request, I have personally inspected and appraised the real property at: 74 W. King Street Shlppensburg, PA 17257.1236 The purpose of this appraisal is to estimate the market value of the subject property, as improved, The property rights appraised are the fee simple interest in the site and improvements. In my opinion, the estimated market value of the property as of July 2, 2004 is: $180,000 One Hundred Eighty Thousand Dollars The attached report contains the description, analysis and supportive data for the conclusions, final estimate of value, descriptive photographs, limiting conditions and appropriate certifications. Respectfully submitted, ~-~=-l Stan A. Skowronek Certified Residential Appraiser 1 <- SUMMARY APPRAISAL REPORT SMALL RESIDENTIAL INCOME APPRAISAL REPORT 05-0072 l"t~~~;'-r~~~;;~~~1~=~~~~i~~ :!fi,~~age 1il3==-~-~u====-~~==?~~R~~~?_~g ~=~===:=:~~~f~}~!~~n:~_:i;;~;~~~~~}~~~-1236 -= !\s~"es~_~>X;)!~el ~!~.:..}_4..3~.~~1~-035 ~__.._____.____.._______u____~~:..~~Jr_.Q..41Q..?.._~~..J"_~e_~~ 1&9} ..._...._~p"':i:jl~S_:;..,,:;,;;~~~IS ~ N/ A _ ~~!".1911bor~.<Jo~..or. ~r..~J~<::t.t'!9_me. S hi2.ee n s b~g_"I.s>~Il_s h!R_______..__.___.....I'v1.'lp~~I~r.en~.e}~~~ ~!..~_.._..__ ___..____ ..... _~ Cenou s_ Tr.<.'c.02)~lJl...Q..___,...,_ hj"'iWU FREEMAN William A. Current Owner Freeman,WilliamA,Et AI,. Occupant _ Owner 'X ~ Tenant ~ i VJcant r frJIHh fIlliilc JI)Plaised : X ~ Fee Slrnple r ; LeJ:;etwld 1..---_=----f.!.~!~_ci..T~p:~=_=IJ_i'~Q~-__=r-i:f~;~d.?!'~,\lL!~l=:m'=-_ "_cICJ,:\i:=-_= N/A IM~~ ;:,,>!:, i 'flee S N / A .__.[)a~~~f.s -"I ~uN.!~_.... .... __..u____[)E!~~ptlof1an9 ..$.<.'1_1:011.01 of 1~~f1..cl2~r9.E!;;,~()n~ess!of1s 19b..e .f'J~db~sE!lIer Nt A __ _"n ,_ ..__.____ l.'I,U'"IIC.JI~liI 0 r. Willi am A E~~~_rTl..~I1._.._.. __u.____ .u5.d_dr..eS,,-{)LVY_~.!;..t_..t<..i_ngu~!r~E?!L..Sh.iPE~n~b_LJ!g,Eh..17 2fJ7.._______..__ I !",:;t,J'->" Stem A. Skowronek Address J1.!:.126 North Hanover Street, Carlisle, PA. 17013 'f' -~'_'~'~-_",._--_..._.__._-_.;.,., , -', . . ) ~ . I, . . I .' .. i.'. ,or' X, UrllJn I j Suburb:ln L J Rur<ll Predominant i SIn\1le family hOUSing \ Predominant 2-4 jan1lly hOUSing " '",""'d'., "'_=" r=' ! Single Family i PRiCE !IGE ! 2-4 Family ! FJplCE AGE bu.it up ~0J O'ler ?5'h L=J 25-75% LJ Under 25% Oc_cupancy I $ (000) (yrs) I 05:.cup<lncy I $ (000) (yrs) Growth rJtll l~~ Rapid [KJ Stable 0 Slow 0 Owner 95 __90 Low ~~ [J Owner l_.._~Q_ Low ~ Prcperly '1oiues ~J Increasing 0 Stable 0 Declining 0 Tenant ~~.............100[Rj TenJnl95 f..___}OO Hiqh 100 Delmndlsupply ~J Shor1age [::DIn balance 0 Over suppy 0 Vacant (0-50,i,) [._ Predominant ___ [RJ VaCJnt (0-5%) 1_...__... Predominant .-'\,'br.~-,,-I.ln.9.~1111~__i.R) Under 3 lIDS. F::i 3-6 mos. n Over 6 rms. .-n Vacanl (o>er 5%) I 11 0 _...2~ 1'1 \ "a'" ,e',-[ 5.', I 140 75 TypiCJt2.4 f<lmily bldg. Type Detached, No. stories 2 No units ~ Age 72..._ yrs. il Present land use % Land use change TYPIC.,I rents $ 350 to $ 750~creasing lIJ Stable 0 Declining One famIly 65% lIJ Not likely 0 Likely E',I neighb()rho~";;;l~~~concy --~,i, 0 Incre<lsing 0 Stable 0 Declining 12-4 family 10% 0 In process to Renl c.ontrols 0 Yes rZl N;-OUkely If yes or likely, describe Multi-family 5% Commercial 20% -.. ---.-----.-.--..-- _..___._n____...___. ) Note: R~ce and the facial composition of the neighborhood are not appraisal factofs. Neighborhood boundaries and characteristics The subject is bounded on the north by Fort St, on the east by' Queen St, on the south by \"'Ialnut St and on the west by Roxbury Rd. ~_._-- ---- Factors Ihat <lffectlhe marketability of the properties in the neighborhood (proximity \0 employmenl and amenities. employmenl stability, appeal 10 market, etc.): l:hefe arl?J:l...C?a.s:Lv_e_~!;_~_!~~J.Q~ to aff_e~.!_m~rk~tability of the sub~t. Diverse stable emfllo"y_~ent..9nd all 5u212Q!"tinq amenities ..are with~rl..~ilsJ' driving distance. MSA 3240 --.--- -.---.--- -. -----. - -~-_.__._------_.- ~..'-.._- --_._----_..._--_.._---~- . . .. -~---_.._--._.~--- ~ ~, The following oYiJllJble listings represenllhe most current, similar, and proxim<lle compelitive properlies 10 the subjecl properly In Ihe subjecl neighborhood. This an<llysis is intended \0 eVJluJle the Irwerltory culTenlly on the m3rket competing with the subjecl property in Ihe subjecl neighborhood and recent price and marketing time trends affecting the subject proper1y. :Ldlnqs oubde the sublec\ nelQhborhood ore not conSidered applicable). The listinq con1Parables can be the rental or sJle conlDorables If they are currentlv for sale. ___~TEM___...._........L__..~UBJECT .. COMPARABLE LISTING NO. 1_ COMPARABLE LlSTINGjiO 2_-1 COMPARABLE LISTING NO.3 74 W. King Street 318 E, King Street 14 N. High Street ~83"85 W. Main Street I !\ddr..<:.~~~l1:J.p~.!l.sb~.fL_ Shippensburq Newville Newville I ::~;~~,~"~;~; S~bj~ct..3~~~-:~~::=:..:=-NiA -'hJ :~O ~urn. $ --1-35-1-9"o-oib~n~ -o~u:n-$---"-11-9~900U -W ~n~ IG~;~-$---115~ !'I)prcJl:ill1Jlec;l3.I\.._i]9..5_~__,_:-..---_-)1BL--- . .._ J~~"_______12350 :f~:~:~;;~~:~~Ai~9~!ri~r-~~~o ;'~~i~-"_--9;=3L foof~9~:'i~ ,,-- 8:-4'- _~:~~!L 9. 5 . 2.50 !\proxdavsonm3rketTN/A 297 133 96 Comparison of IlSirngslo subjecl property: Lis...!.i.!J.9....~J..... has fewer u n its/roon.~~cj!QS!.r:1]s/bath~cJ!n.b'!!;...LE?~s_Q..h6.__~~ti.!l.g__#2 .b..a_!;.. fewer ___ .u..r1j!s/rooms/bedrooms/baths. It has less GLA. Listing #3 has fewer units/rooms/bedrooms, It has less GLA._ Markel conditions that affect 2-4 family properties in the subject neighborhood (including the above neighborhood indicators of growth rate. properly values. demand/supply and marketing time) and Ihe prevalence and imp<lct in the subject market are<l regarding loan discounls. interest buydowns and concessions. and ,denl,llcJllon ollrends In lisling prices, average days on market <lnd any change over the post yeJr. etc: rese~!..~_~__~.!...t...t:J...e._~~S:_E?rl.L~<l..I.s:..!;..~L~'Ll!~ p r ()p~rt!es..f~!.__c;;)l\C..f1s!a r....Y'?_<l!.._?OO..'Ll n d ic a~~~_ a ve r ag~~ rkE?!0.fL!LrTl..e:.....<2Ll~d~y~_J.f1!e.r~~t_~~~_!;_~Le...r:el;:)!~\I el Y..l..Cl.~.!..~.s:..re fCl.r:..~ few loan..cClf1G_e.~~~()_n_s_a~~....'?lfered. ~nal~is of the days on the. market and..s:.s>.r:..sicJ..~!il.t.l..'?~L~l,!!!e.r:..t~~()!2..()..!ll.Lc;J..r:..e.Il.9~__..__ 111.cji_cates a demand for investment properties in this price range I Dimensions See leqal description I Topography Basically Level Site <lre<l .15 Acre m/I _. . .. , _ . . Corner Lot lxJ No U Yes I Size Typical for area , . SUMMARY APPRAISAL REPORT SMALL RESIDENTIAL INCOME APPRAISAL REPORT 05-0072 Gene!"31 description Exterior description (Materials/condition) Foundation Insulation (R"'IalJe li<noM1) Ufil\slbldgs 2/1 Foundation Stone/Av!:l Slab None 0 Roof Stories 2-- Exleflor walls Aluminum/Avo Crawl space None lIJ Ceiling' Type (del/att.) Detached Roof surface Fiberqlass/Ava Sump Pump None lIJ Walls . Design (style) 2 Story Gutters & dwnspts. Aluminum/Avq Dampness None Obs [1J Floor · Existing/proposed Existino Window type Wood Frame/Ava Settlement None Obs 0 None Under construction No StamsasrJScreens Yes/Ava Infestation None Obs Adequacy Averaoe Ye3r Built 1900 Manufactured housing' U Yes . [X) No Basement 100 'A, of 1 st floor area. Energy efficient ~ems: EffecINeage(yrs) 15-20. '(Complies wilh Ihe HUD Manufactured Housing Baserrentfni3h Unfinished . R-Factors Unknown Averaqe Condition Conslruction and Safetv Standards.) . Urllls..J_~~~~(~Lj__Eg.t~__. Livinq Dininq Kitchen Den Familv rm. Bedrooms # Baths I. Laundrv _ Other SQ fI./unit Total ~ 1 I 1 I 1 1 1 1 1 975 -~-~I=~1= 1-r 1 1 1 357 1 i 3 i 1 1 1 1 225 2 I 2 I 2 area 2 2 3 area 1 501 Improvements conlain: 15 Rooms; 5 Bedrooms); 6 Bathls); 3 058 Square feet of GROSS BUILDING AREA GROSS BUILDING AREA (GBA) IS DEFINED AS THE TOTAL FINISHED AREA (INCLUDING COMMON AREAS) OF THE . IMPROVEMENTS BASED UPON EXTERIOR MEASUREMENTS. Surfaces (Materials/condilion) Heating Kitchen equip. (# / unit-cond.) Attic Car Storage No. cars~ Floors Carpet/Vinvl Type BB Refrigeralor 5/Ava 0 None Garage ~ ,:, Walls Drw.,all Fuel Electric Rangelo;en 5/Ava lIJ Stairs Carport 0 . Trlfn/finlsh Wood Condition Averaoe Disposal 0 Drop stair Attached 0 Bath floor Vinyl Dishwasher 0 Scuttle Detached 0 Bo\h wainsco\ Drvwall/CerT Cooling Fan/hood 0 Floot Adequate 0 . Doors Wood Cenlral None Compactor 0 Heated Inadequate 0 j\verage Condition _ Other None w~ 0 Finished Offstreet [1J Condition N/A Microwave 0 Unfinished None 0 Flreplace(s) None # Intercom Condition of the improvements, repairs needed, quality of construction, additional features, modernization, etc. !..Q1.Rrovements are.JIl__~"-~J:.~g~condition with no .flJ:,Y_slc:al or functional inadequacies noted. Two car detached garage with additional offstreet ~~J.!.1_g for aflProximately four cars. .. - ~_._--~--~ -..------.-...------ ___~._~___~H Depreciation (physical, functional, and external inadequacies, etc.): There are no phvsical. functional or external inadeouacies apparent. ~ Adverse environmental conditions (such as, but not limited 10, hazardous wastes, loxic subslances, etc.) present in the improvements, on the site, or in . the immediate viCinity of the subject property: No adverse environmental conditions are apparent/disclosed. ~ ~ ~ . --~----_. - VALUATION ANALYSIS ESTIMATED SITE VALUE .......... ... = $ Comments on Cosl Approach (such as, source of cost estimate, site value, ESTIMATED REPRODUCTION COST-NEW OF IMPROVEMENTS square fool calculation and. for HUD and VA, the estimaled remaining . GBA: 3058 Sq. Ft. @ $ = $ 0 economic life of the property); Cost Approach deemed a poor _________ Sq. Ft. @ $ = $ indicator of value due to aqe of the improvements. Estimated c::." CI r@ It =" r~n"l!linih"" .o""l"'\h,.."""",i,.. lil=.... :.... ")f\ "lr' ..- --- , c SUMMARY APPRAISAL REPORT SMALL RESIDENTIAL INCOME APPRAISAL REPORT 05-0072 At leact three rental comparables should be reported and analyzed in this section. The rental comparables should represent the most current rental information on properlieG as similar and proximate to the subject properly as possible. (This comparison is based on current rental data, therefore, the rental comparables typically are not the S3me comparables used in the sales comparison analysis.) The appraisal report should assure the reader that lhe units and properties selected as comparables are comparable to Ihe subject property (both the units and the overall properly) and accurately represent the rental market for the subject property (unless otherwise slaled within the report). __~~------L_ SUBJECT COMPARABLE RENTAL NO.1 COMPARABLE RENTAL NO.2 COMPARABLE RENTAL NO.3 Add 74 W. King Street 107 N. Earl street 216-220 E. Orange Street 15-21 Kenneth Avenue ress Shippensburo Shippensburq Shippensburq Shiooensburq , "'.'<.. ....,.,.....', .,...'........,.. 1.6 MI NE 1.6 MI ENE 2.2 MI NE Proximity to subject i. ..'....,..........',. ......,../.>>"'..,,. ,.","'""", Lease dates (if available) Annual Leases Month to Month Month to Month Month to Month Rent survey date 02/17/2005 01/11/2005 11/29/2002 11/29/2002 Data source Ins pection Owner Multi-list Multi-list M ulti-L1st/Cou rthouse ----~._----- Rent concessions None None None None No. UnM No. Va::,. 0 No. Unis4 No. Vac. 0 Yr.Bt 1900 No. Unts4 No. Vac. 1 Yr. BI... 1900 No. Unis4 No, Vac. 1 Yr. EI.: 1900 Descrrpllon of Yr. Bit 1900 property. units, 2 StorvlDetached 2 StorvlDetached 2 StorylDetached 2 StorylOetached deSign, appeal, - ---.--. age, vacallcies, Apt. Buildinq Apt. BUilding Aot. Buildinq .~2.LBuilding and conditions Averaqe Condition Averaqe Condition --- ~~~C::.9 nditi 0 Q._________ ~.":.e!_'~9.~_ condition I Dm Count Size Rm. Count Size Total Rm. Count Size I Tolal RmSoui)I... Size Tolal -.' .--..-- '--- -------, .---- - .-.'--' ,-,..-------- Tot Br Ba Sq Ft. Tot Sr Ba Sq Ft Mont~v Rent Tot Br Ba ~EJ.:_ Montrly Renl _ Tot Br Sa Sq Ft Montr/v Rent IndiVidual J J 1 975 3 1 1 493 300 5 3 1 1213 450 4 2 2 900 500 Ul11t 2 J 1 357 4 2 1 616 500 5 3 1.5 1280 475 4 2 1 900 475 breakdown 3 1 1 225 4 2 1 616 375 3 1 1 674 350 4 2 1 900 475 6 2 3 1501 4 2 1 617 500 2 1 1 541 350 4 2 1 900 500 Water/Sewer/Trash Water/Sewer/Trash Water/SewerlTrash Water/SewerlTrash Utilities, furniture, and amenities included in rent Full BsmtlUnf Full Bsmt/Unf Full Bsmt/Unf Full Bsmt/Unf :: Functional utility, HWBB/CA EBB/None FHA/None FHA/None - basement, Porch Porches Porch Porch . heating/cooling, 2CGrQ/4COSPrkinQ Off Street Prkinq Off Street Parkinq Off Street Parkinq project amenities, etc. Analysis of rental data and support for estimated market rents for the individual subject units (including the adjustments used, the adequacy of comparables, rental concessions, etc.) " ~J1ta.!JfJJ1_~~. fewer units/rooms/baths. It has less GLA and ammenities such as garages. It has more bedrooms. Rental #2 has ':': fewer units/rooms/baths. It has less GLA and ammenities such as garages. It has more bedrooms. .Rental #3 has fewer ~. units/rooms/baths It has less GLA and ammenities such as garages. NOTE: Subject is a five unit with the second floor units . combined for oresentation ourooses. ( Subject's rent schedule The rent schedule reconciles the applicable indicated monthly market rents to the appropriate subject unil, and provides the estimated rents for the subject property. The appraiser must review the rent characteristics of the comparable sales 10 determine whether estimated rents should refied adual or market rents. For example. if actual rents were available on the sales comparables and used to derive the gross rent multiplier (GRM), actual renls for the subject should be used. If market renls were used 10 construct the com parables' rents and derive the GRM, market rents should be used. The lolal gross eslimaled rent must represent rent characteristics consistent with the sales comparable data used to derive the GRM. The lotal gross estimated rent is not adjusted for vacancy. LEASES ACTUAL RENTS ESTIMATED RENTS Lease Date No Per Unit Total Per Unit Total Unit Units Unfurnished Furnished Rents Unfurnished Furnished Rents Seqin End Va.can\ 1 December December 0 $ 441.00 $ $ 441.00 $ 500.00 $ $ 500.00 1 June June 0 286.00 286.00 325.00 325.00 . .. 1I.J11 __. ^ ..,0 A "" ..,n... nn ~"...,.. ......... , ~ SUMMARY APPRAISAL REPORT SMALL RESIDENTIAL INCOME APPRAISAL REPORT 05-0072 TIll: llndl:lfslqrl(:o har; recited ItHf:e recent salu of properties most slmllar and pflHimate to 1M s.ubl~t\ properly ar'ld ha, dEt!lcr\be~ and analyzed lnue 1n this ilMIYSI5. If Ihere is a significant varlallon betwun the ~UlJleCI <Ina comparable propertIes, 'he analysis includes a dollar adjustment reflecting Ihe market reacllon to those items or an explanatIon supported by Ihe markel data If a slgnlllcant Hem In the comparable prulH:rly t!i Supf:ftor lO, QC more (a'lQrable than, \h~ slJb)ec\ ploperl)', a minus (.) adjustment is made, thus reducing Ihe adjusted sales price of the comparable properly. II a SIgnificant Hem in the comparable properly I,S lilll::"I;f 10. or le$5 faYorable lhan, the subjecl Dronerl , a olus (t) adiuslment is made, thus inCfeasin tile adlusled n(ice of the comnarilble ora en... it11 SOllos Price. Gross Monthlv R911~1 ITEM SUBJECT COMPARABLE NO.1 COMPARABLE NO.2 COMPARABLE NO.3 74 W. King Street 107 N. Earl Street 222 N. Prince Street 257-259 Walnut Street Address Shippensburq Shippensburq Shippensbura Shlopensburq Proxlmjtyto subiecl ......>\> 1.6 MI NE 1.9 MI NE 1.9 MI ENE ~s.E.;S-;JrIce $ . N/A X Unf. Furn. $ 159.900 XlUnf. lFurn. $ 151 000 xlUnf. IFurn $ 170,000 S"les Price per GBA $ 58.86 $ 68.27 $ 49.92 $ 39.79 Gross monthly rent $ 2,100 $ 1 325 $ 1 500 $ 2,065 Grossrrn. rent nlJtU1\ 85.71 120.68 100.67 82.32 Sales price per unit $ 36,000 $ 39 975 $ 50 333 $ 42 500 Sales price per room $ 8 571 $ 13 325 $ 10 786 $ 12 143 Dala and/or Inspection MLS/Courthouse Records MLS/Courthouse Records MLS/Courthouse Records Verification Sources Owner ADJUSTMENTS DESCRIPTION DESCRIPTION' t (-)'1 Adjuslment DESCRIPTION 't ()'I AdluSlme,,' DESCRIPTION 't (.)'1 Adustment Sales or finanCing> None, Conv:, Unknown' None, Cony concessions ... DOM 45 'Unknown DOM 104 , -O:;I~~; sal;;!!'~_____I-___ . .... 04/08/2003 -' 4 797 08/01/2001 , 14 000 10/29/2004 LOC311on i Urban Urban : Urban Urban: _L.~3seh?ldIFe-~-s~;~IF~e Simple Fee Simple' Fee Simole: Fee Simple : Site .15 Ac/Avq .19 Ac/Ava' .36 Ac/Ava' .18 Ac/Avq , V~w Urban Urban ' Urban : Urban : DeslQn and appeal 2Stv/5Units/Ava 2Stv/4Units/Ava: 2Stv/3Units/Ava : 2Stv/4Units/Avg : Qual~y of construction Average Averaae ' Averaae ' Averaae ' Age 105 Years 50 Yrs : 84 Yrs : 75 Yrs ' . Condition Average Averaae : Averaae : Averaae : Gross Buildinq Area 3 058 SQ. ft. 2 342 S .ft.' 7 160 3 025 S .ft.' 4,272 S .ft.' -12 140 10 I'b Rm, count N~' Rm. count N : I'b Rm. counl NO; I'-b Rm. count N : cJ o. d 0.1 ri .1 rJ 01 unlls Tol Dr Ba Vac. units Tot Bf 6a Vac~ units Tot Dr 8a vac.: units Tot Br Ba vac~ . Unll 1 4 1 1 0 1 3 1 1 0' 1 4 2 1 0' 1 4 2 1 0' breakdown 1 2 1 1 0 1 3 2 1 0: 1 4 2 1 0: 1 3 1 1 0: 1 3 1 1 0 1 3 1 10: 1 6 4 10: 1 4 2 10: 2 6 2 3 0 1 3 2 1 0' 5.000 10 000 1 3 1 1 0: 5 000 Basement description Full/Unfinished Full Bsmt/Unfin : Full Bsmt/Unfin : Full Bsmt/Unfin: Functional utility Averaae Averaae : Averaae : Averaae : Hea\inqlcoolinq EBB/None EBB/None' HWSteam/None HW/None' Parkinq on/off site 2 CGar/4 OffStrt Off Street : 5000 3 Car Garaae' 2 Car Garaae: 1 000 Project amenities and Porches None : 2,000 PorcheslDeck -1,000 Porches : fee (If applicable) : : None ' ' : }:le\~i\2l'!iL ........... ....... lxi, i1 $ 23957 fxl, i l 'I 23.000 r l, [xJ. 'I 6140 AdJc;3lesprlceof (';0'" 15.0% (';0" 16.6% (';os<: 10.7% c_olnpu.f.'l.b!es___________ Net 15,0% 'I 183,857 Net 15.2% ~ 174000 Net.3.6"1o $ 163860 Comments on Sales Comparison (including reconcilialion of all indicators of value as to consistency and relalive strength and evaluation of the Iypical investor'slpurchaser's motivation In thai market) Estimated range of value is 163,000 to $184,000. Time adjustment made at 4%/annum throuqh 2004. The ~justed price/unit for the comparables are $45.964/$58 000 and $40.965. These are the best sales comoarables known to be available. ITEM SUBJECT COMPARABLE NO.1 COMPARABLE NO.2 COMPARABLE NO.3 Date, Price and Data 04/21/1952 Source for prior sales $1.00 None None None _wrthin year of appraisal Courthouse Courthouse Courthouse Courthouse Analysis of any current agreement of sale, option. or listing of the subject property and analysis of any prior sales of subject and cof1llara~es w~hin one year of the date of appraisal: No prior transfers within the oast 36 months. Comoarables have not transferred within the past 12 months, Total gross monthly estimated rent $ 2,100 x gross rent rrultiplier (GRM) 90.00 = $ 189,000 INDICATED VALUE BY INCOME APPROACH Comments on income approach (including expense ratios, if available, and reconciliation of the GRM) The comparable GRM has a mean of 101 and a standard deviation of 19. Based upon this analvsis we reconcile the GRM at 90 I INDICATED VALUE BY SALES COMPARISON APPROACH. . $ 175,000 INDICATED VALUE BY INCOME APPROACH. .., . . . $ 169000 INDICATED VALUE BY COST APPROACH $ 0 This appraisal is made [i] "as is' 0 subject t~ the ;e~a;', 'alt~r~ti~n~. i~s~e~tionsor~nd~i~ns I~ted bel~w .. 0 subjecltocom~l~ti~n 'p~r ~Ia~s and specifications. CnmrrPnl,,,nrlCnnrlnlnmnfAonratsal The DroDertv has been appraised in current condition Thio:: "nnr"ic:,,' ic: f". ,..1;0"+ ""I.. , Operating Income Statement . SUMMARY APPRAISAL REPORT One- to Four-Family Investment Property and Two- to Four-Family Owner-Occupied Property 05-0072 Property Address 74 W. King Street Shippensburg PA 17257-1236 Street City State Zip Code .. General Instructions: This form is to be prepared jointly by the loan applicant, the appraiser, and the lender's underwriter. The applicant must complete the following schedule indicating each unit's rental status, lease expiration date, current rent, market rent, and the responsibility for utility expenses. Rental fjgures must be based on the rent for an "unfurnished" unit. Currently Expiration Current Rent Market Rent Paid Paid Rented Date Per Month Per Month Utility Expense By Owner By Tenant Unit No.1 Yes ~ No Annual Leases $ 441 $ 500 Electricity . .0 00 - Unit No.2 Yes x No Annual Leases $ 286 $ 325 Gas. . . . . . . . ....0 0 - .....0 0 Unit NO.3 Yes x No - Annual Leases $ 384 $ 425 Fuel Oil " Unit No.4 Yes x/~ No - Annual Leases $ 714 $ 850 Fuel (Other) . . . . . . .0 0 Total $ 1,825 $ 2,100 Water/Sewer. . . . . .00 0 Trash Removal . . . . .[Xl n The applicant should complete all of the income and expense projections and for existing properties provide actual year-end operating statements for the past two years (for flew properties the applicaflt's projected income and expenses must be provided). This Operating Income Statement and previous operating statements the applicant provides must then be sent to the appraiser for review, com. ment, and/or adjustments next to the applicant's figures (e.g., Applicanl/Appraiser 288/300). If the appraiser is retained to complete the form instead of the applicant, the lender must provide to the appraiser the aforementioned operating statements, mortgage insur- ance premium, HOA dues, leasehold payments, subordinate financing, and/or any other relevant information as to the income and expenses of the subject property received from the applicant to substantiate the projections. The underwriter should carefully review the applicant's/appraiser's projections and the appraiser's comments concerning those projections. The underwriter should make any final adjustments that are necessary to more accurately reflect any income or expense items that appear unreasonable for the market. (Real estate laxes and insurance on these types of properties are included in PIT! and nol calculated as an annual expense item.) Income should be based on current rents, but should not exceed market rents. When there are no current rents because the property is proposed, new, or currentiy vacant, market rents should be used. Annual Income and Expense Projection for Next 12 months Adjustments by 'n come (Do not Include income for owner.occupied units) By Applicant/Appraiser Lender's Underwriter Gross Annual Rental (from unil(s) to be rented) ........... , . . , . $ 21 ,900 $ Other I ncome (include sources) + + , , . . , Total . , . . . , . ...,..,.."..,.....,....."...,...".. . $ 21 ,900 $ Less Vacancy/Rent Loss. ..........'". I.......,...,.."..', 1095.00 ( 5%) ( %) Effective Gross Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,805 $ Expenses (Do not include expenses for owner-occupied units) Electricity. . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . , . . . . . . . . . . . . Gas ..,.,.........,...".".........'".,......,'... . Fuel Oil ,........,.,...,."........'...,..."..."...'.. . Fuel .... . . . . . . . . . . . . . . . . . . . . . . .(Type- ) Water/Sewer Trash. . . . . . .,.........".."..,..,..' . 1,982 Trash Removal ,.",....,........"..........'",........ . Pest Control ..................,........................,. Other Taxes or Licenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Casual Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . This includes the costs for public area cleaning, snow removal, etc., even though the applicant may not elect to contract for such services. Interior Paint/Decorating. . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . This includes the costs of contract labor and materials that are required to maintain the interiors of the living units. General Repairs/Maintenance . . . . . . . . . . . . . "'" , , . . , , . . . , 1,095 This includes the costs of contract labor and materials that are required to maintain the public corridors, stairways, roofs, mechanical systems, grounds, etc. Management Expenses ........,............................ These are the customary expenses that a professional manage- ment company would charge to manage the property. Supplies . . . . . . . . . . . . . . . . . . , . . , . . . . . . . . . . . . . . . , . . . . , . . . . This includes the costs of items like light bulbs, janitorial supplies. etc. , . SUMMARY APPRAISAL REPORT 05-0072 Replacement Reserve Schedule AdeQuate replacement reserves must be calculate regardless of whether actual reserves are provided for on the owner's operating statements or are customary in the local market, This represents the total average yearly reserves Generally, all equipment and com- ponents that have a remaining life of more than one year-such as refrigerators, stoves, clothes washers/dryers, trash compactors, furnaces, roofs, and carpeting, etc.-should be expensed on a replacement cost basis. Equipment Replacement Remaining By Applicantl Lender Cost Life Appraiser Adjustments Stoves/Ranges . . . . . @$ 350.00 ea.+ ~ Yrs, x 5 Units =$ 116.67 $ Refrigerators. . , . . . . . @$ 300.00 ea.+ ----1l Yrs. x 5 Units =$ 125.00 $ Dishwashers . @$ ea.+ _ Yrs, x Units =$ $ NC Units . . . , . ... @$ ea.+ _ Yrs, x Units =$ $ C. Washer/Dryers ...@$ ea.+ _ Yrs. x Units =$ $ HW Healers .., @$ 175.00 ea.+ --1Q Yrs. x 5 Units =$ 87.50 $ Furnace(s). . . . . '.. @$ ea.+ _ Yrs. x Units =$ $ (Other) , . , . . . , . . . @$ ea.+ _ Yrs. x Units =$ $ Roof .........@$ 10,000.00 + ~ Yrs. x One Bldg. = $ 666.67 $ Carpeting (Wall to Wall) Remaining Life (Units) _ Total Sq. Yds. @$ Per Sq. Yd. + _ Yrs. = $ $ (Public Areas) _ Total Sq. Yds. @$ Per Sq. Yd, + _ Yrs. = $ $ Total Replacement Reserves. (Enter on Pg. 1) $ 995.84 $ Operating Income Reconciliation $ ._.________1Q.,~05.00 . $ 4,073.00 =$ __....--1..~~'LQQ + 12= $ 1,394,33 Effective gross Income -'Iotal Operating Expenses Operating Income Monthly Operating Income $ 1 ,394.33 - $ =$ 1,394.33 Monthly Operating Income Monthly Housing Expenses Net Cash Flow (Note: Monthly Housing Expense includes principal and interest on the mortgage, hazard insurance premiums, real estate taxes, mort- gage insurance premiums, HOA dues, leasehold payments, and subordinate financing payments.) Underwriter's instructions for 2-4 Family Owner-Occupied Properties . If Monthly Operating Income is a positive number, enter as "Net Rental Income" in the "Gross Monthly Income" section of Freddie Mac Form 65/Fannie Mae Form 1003. If Monthly Operating Income is a negative number, it must be included as a liability for qualification purposes. . The borrower's monthly housing expense-to-income ratio must be calculated by comparing the total Monthly Housing Expense for the subject property to the borrower's stable monthly income. Underwriter's instructions for 1-4 Family Investment Properties . If Net Cash Flow is a positive number, enter as "Net Rental Income" in the "Gross Monthly Income" section of Freddie Mac Form 65/Fannie Mae Form 1003. If Net Cash Flow is a negative number, it must be included as a liability for qualification purposes. . The borrower's monthly housing expense-to-income ratio must be calculated by comparing the total monthly housing expense for the borrower's primary residence to the borrower's stable monthly income. Appraiser's Comments (incfuding sources for data and rationale for the projections) Forecasted rents and expenses appear fair for the local market conditions. \. I , . . FLOORPLAN _BQcrQ"Y~Lf.gE_~~ ~N,__VYl!1l<.t.~___"_~___________~_______________Ejl~. t:.J():~__.Q~:9072 prl?P!;rt1'6~g~~sJ~L4__'{V~iD_g Street __________~__________.Q.'!~e..N~~___ c;ity~_.~~i f>pe_r\!iJ~lJ!g.._____ ___________. .__________________State: P ~_.______..__._..____f.iQ.: 17257.1236 Lender: Dr. William A. Freeman -- --. . ---- OJ E c 0 '> 0 :.:i .... "0 <1> a::l 0) c c Bath (5 laundry e<:- Bath ,,0' ~ c ~'> en <1> ~ C .c Q-f'" .B > ~ en E c 0 --.J II e > LIving "0 :.J Bedroom " CD 0. Bedroom c :; I ....J Sketch by Apex IV Windows ™ AREA CALCULATIONS SUMMARY LIVING AREA BREAKDOWN Code Description Size Totals Breakdown Subtotals GLAl Unit #1 First Floor 975.0000 Unit #1 F~rst Floor Unit #2 First Floor357.0000 332.0000 6.00 x 18.00 108.0000 i~ GLA2 Unit #3 Second Floo~18.5000 15.00 x 49.00 735.0000 ~ Unit #4 Second Floo~82.0000 500.5000 11.00 x 12.00 132.0000 il Unit #5 Third Floor225.0000 ~~ GLA3 225.0000 Unit #2 First Floor f pip Porch 126.0000 11.00 x 27.00 297.0000 ~ Covered Porch 96.0000 4.00 x 15.00 60.0000 , ,~ Stoop 50.0000 272.0000 Unit #3 Second Floor :i, OTH Hallway 96.0000 3.00 3.00 ,'; 0.5 x x 4.5000 " Hallway 91.5000 187.5000 15.00 x 19.00 285.0000 11.00 x 12.00 132.0000 ij 11. 00 x 27.00 297.0000 .~ Unit #4 Second Floor )': 23.00 x 34.00 782.0000 ~'i Unit #5 Third Floor .~ 15.00 x 15.00 225.0000 1', .,UD.lI:\.. I t"KUt"I:K I Y t"HU I U ADDENDUM Borrower. FREEMAN, William A. File No.: 05-0072 Property Address: 74 W. King Street Case No.: City: Shippensburg State: PA Zip: 17257-1236 Lender: Dr. William A. Freeman FRONT VIEW OF SUBJECT PROPERTY Appraised Date: REAR VIEW OF SUBJECT PROPERTY STREET SCENE -. ,i;:;.);.:i,',(. "4.,,,,"_ . ..~'" . I,'" =t= ,i'l1\. ;. <",:; - -~ .. ;;'.1 n! ., ~ ~ ,.T?' ..~,<. , I .;~il.... ..~ I.' I.,;UMt"AKAI:.SLt: t"KUt"t:K I Y t"HU I U ALJLJENLJUM Borrower~ FREEMAN, William A. File No.: 05-0072 fi'roperty Address: 74 W. King Street Case No.: City: Shippensburg State: PA Zip: 17257-1236 Lender: Dr. William A. Freeman COMPARABLE SALE #1 107 N. Earl Street Shippensburg Sale Date: 04/08/2003 Sale Price: $ 159,900 ----. '-r.~, -.-- ');~~~'; . ,;~.J,i" iJS COMPARABLE SALE #2 L ,. ~...~:. . /~,.' ,j." ,.'. "." , ~ ..', .., .... -~,: 222 N. Prince Street :,' " Shippensburg Sale Date: 08/01/2001 Sale Price: $ 151,000 _. COMPARABLE SALE #3 257-259 Walnut Street Shippensburg Sale Date: 10/29/2004 Sale Price: $ 170,000 . , LOCATION MAP ~Borrower: FREEMAN, William A. File No.: 05-0072 .ELQQ~_r!Yl\ddress: 74 W. King Street Case No.: Gi!Y~!!LQpe n s bJ!!:9.. State: p~_ Zip: 17257-1236 Lender: Dr. William A, Freeman /' // r /./ / ~ . , . .B.orr9~.f?G--.fB_~!;M~-,-!yilliam A. File No.: 05-0072 Er~~r!Y Address: 74 W. King Street Case No.: ~2~y:_~hjpp_~~_I;J_~~g___________ _.~tate PA _._________ Zip 17257-1236 Lender: Or. William A. Freeman ,.. ...,,~-,- ....-.-...- -- 1 ! I i ,. .1," .' shippensburg .' Cemetery Cemetery o . --- .-" '" Jusculuril . . ; I ". ....~ "--. .. \\" I I , ~ FloodMap Legend Flood Information . , . File No. 05-0072 ********* QUALIFICATIONS ********* The following checked items are SPECIFIC SPECIAL CONDITIONS that were Identified by this appraiser during the Inspection of the subject property, the comparables sales, and their neighborhoods and locations. Unless otherwise noted, the conditions that apply to the subject property or the comparable sales used DO NOT AFFECT THE MARKET I VALUE OR THE FUTURE MARKETABILITY OF THE SUBJECT PROPERTY BEING APPRAISED. This is not a home inspection service. This is an appraisal to estimate market value. I _1. The subject is located in a rural area and is less than 25% built-up. I ! _x_2. Commercialllndustrial uses are located within the subject's neighborhood. These uses are typical of similar neighborhoods. _3. Vacant and undeveloped land uses are located within the subject's neighborhood. These uses are typical for the area. I i _x_ 4. The predominant value in the neighborhood is less than that of the market value of the subject property. This is due to the very wide range of value of properties in the area and superior quality of the subject property. _x_5. The subject property is located in a F.E.M.A. Identified Flood Zone. Flood insurance coverage Is required and suggested. _6. Dampness Is noted in the basement of the subject. Standing or running water was not present on basement floor, This condition is considered typical In dwellings of this style. _7. The subject property Is serviced by private well and/or septic systems which Is common for the area. I _x_B. The subject is older than five(5) years. All mechanical systems including the heating, electrical and plumbing I systems appear upon a visual exterior Inspection to be in working order. No warranties are implied In this statement. _9. Repair Items were noted in the comments section of the report. These comments on repair items are for descriptive purposes only and are not required repairs. The items listed are cosmetic in nature. _10. The basement floor is a dirt floor. This condition is common and typical for the area. and does not pose a health or safety hazard. _11. The subject property does contain functional obsolescence as noted In the report. This condition Is considered typical and common for the area and this style dwelling, _12. The land value exceeds 30% of total value due to the high demand for vacant land in this neighborhood. This condition is considered common and typical for the neighborhood. _13. The land value exceeds 30% of total value. This is due to the large size of the site. This condition Is considered to be typical and common. _14. Individual adjustments were required that exceed 15%, These adjustments were required due to lack of more similar com parables on that individual rating. All com parables used are the best available. _15. Total adjustments exceed 25%. This is due to the lack of comparable sales that were more similar in the subject's market area. All com parables used are the best available. _x_16. One or more comparable sales are older than slx(6) months. Although there are comparable properties in the subject's area, none have sold recently; therefore, sales in excess of six(6) months have to be used. All com parables used are the best available. _x_17. One or more com parables used were in excess of one (1) mile from the subject property. Although there are comparable properties In the immediate area, none have sold recently. Therefore, It was necessary to use comparable sales outside of the immediate area. All comparables used are located In similar neighborhoods and within the same marketing area. All comparables used are the best available. 1B. The electrical system was not connected during Inspection. .. . 6- File No. 05-0072 --.-.,.---.<- - --.- -~-_.+--.-._.-. ********* Q U All Fie A T ION 5 ********* _24. The subject property is located on a private road. _25. Wood infestation inspection Is suggested. _x_26. Last recorded deed transfer: Date_04/21/1952_. Consideration: $_1.00 _27. Proposed construction/renovation in accordance to plans and specifications to be completed In a workman.like manner. _28. Seller is paying part or all of closing costs. _x_29. All comparable sales are verified closed sales. _x_3D. There are no special conditions or other requirements that would affect market value or future marketability in the Appraisal Report. CHECKED ITEMS ARE SPECIFIC SPECIAL CONDITIONS THAT WERE IDENTIFIED BY THIS APPRAISER DURING INSPECTION. I .. , . . File No. 05-0072 DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions' granted by anyone associated with the sale. , Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party Institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the Appraiser's judgment. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser wilt not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes that the title is good and marketable and, therefore, wlll not render any opinions about the title. The property is appraised on the basis of it being under responsible ownership. 2. The appraiser has provided a sketCh in the appraisal report to show approximate dimensions of the improvements and the sketch is Included only to assislthe reader of the report in visualizing the property and understanding the appraiser's determination of its size. I 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand. 5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 6, The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc. ) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc. ) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment of the property. 7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties. 8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 9. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, . . . .~ File No. 05-0072 APPRAISERS CERTIFICATION: The Appraiser certifies and agrees that: 1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation. If a significant item in a comparable property is superior to , or more favorable than, the subject property, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject property, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct. 3. I stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent and limiting conditions specified in this form. 4. I have no present or prospective interest in the property that is the subject to this report, and 111ave no present or prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property. 5. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property, 6. I was not required to report a predetermined value or direction In value that favors the cause of the client or any related party, the amount of the value estimate, the attainment of a specific result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal. I did not base the appraisal report on a requested minimum valuation, a specific valuation, or the need to approve a specific mortgage loan, 7. I performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of the effective date of this appraisal, with the exception of the departure provision of those Standards, which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconciliation section. 8, I have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property. 9. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on significant professional assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that: I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. ADDRESS OF PROPERTY APPRAISED: 74 W. King Street. Shlppensburg, PA 17257-1236 . STEVEN W. BARRETT REAL ESTATE AND APPRAISAL SERVICES 124 N. HANOVER STREET, CARLISLE, PA 17013 (717) 243-6646 File No. 05-0073 - APPRAISAL OF LOCATED AT: 76 W. King Street Shippensburg, PA 17257-1214 FOR: Dr. William A. Freeman 67 West King Street Shippensburg, PA 17257 BORROWER: FREEMAN, William A. ^ r- "',... , , SUMMARV APPRAISAL REPORT SMALL RESIDENTIAL \NCOME APPRAISAL REPORT 05-0073 nil Ul'ldtulgnQO~"" ,.chld ,,,,,.. r.e"M UII, of J'fopor\J.. mo,' tllmUar .nd prollmalf tD I"'. 2ubJee\ prO~'r1~ ol'ld hu d....orllt.~ 'I'd 'lllJyud ,~... In thi. ll'loIY"I. IIU\." II II llfilrtl1lcDn' nrllJUot'l tl4twt.n !~<t '>J~I.t' ."d cO",par:lbl_ ~'O'l!lIftlO~. \l'te 11!'lI')"I, rl'lch.nft' . doll., ndJ\lI1\Tlol\1 rlflectlng Ih, mllr"',' r'uc;1ion fQ ("0'41 II.tn. Ir In upl.nallo.ll .upporl'!ld b~ l~n r1'l"k.t (h", II . lllqn1flc"nt IUrn I", IU c.eP1'lO"fllbl' P"''''''''f' III Juptrlor 10. Of mort f....ot".l. ''''lUl, t", lubJfI'tl OIDp.r'1. jJ mlro", (.) .dj\J'I~flnt It mild., \~". tI,d\lclnlJ 1ho ~dJu~"(f ..Iat 0"0. &f ,h. eortlp.rUln pro,arly; If II ,1\1"lfICl:lrtt iI'\'Tlln ll\~ oOn'lp.ub~l) ~loP~'~Y ,. 1.ltrl., 10 ., ".. I.u.".'. \~'". 1M ,.~ oct .r..'" . .J" "II/I.,lm... " ""do, I~.. Incr...I. !he ,4"u,1I4 "1'4 .11~1 CQm..,,~I. D,...rlu, i11\ s.i" Prl~.. Gro.. Monlhlu 1I0nl ITEM I SUBJECT COMPI\RAl;1LE NO 1 COMt'ARABLE NO.2 COMPARABLE NO.3 76 W. King Street 306 W. King Stre9t 300 S. Hanover Siregt 70.12 W. Pomfret Strellt Addren ShlooenAbura ShiD~Qnsbur~ CarlIsle Carlisle Proximltv to subillc1 )I:iF':"'.I"~I.li'~II.".:!'!i."",(;'h'!.':i.'!II"!',ill'!j,' 0.00 MI 21.8 MI ENE 21.3 MI ENE Sales nllce $ N/A lUnr. IFurn. $ 249,900 I X IUn! -r Furn $ 245 500 XlUnr, [ FUIn $ 234.000 ~~rice ~er GBA $ 52.46 $ 62.62 S 76.72 s 68,68 Gro" monthly renj $ 2 400 S 2 100 $ 2 100 S 2.025 Gross 11"(), rentmulU1\ 120.83 119.00 116.90 115,56 5810& Dr;e. oer unll $ 42 SOO $ 83300 $ 81 833 $ 78.000 Sal9s olke cerro~m $ 10000 $ 19223 $ 17,536 S 18.000 De(o andlol InaplIction App,Data/CHR MlS/Courthou&Q Records AppData/Courthse Verification $ourc<ls Courthouse ADJUSTMENTS DESCRIPTION DESCRIPTION' '('II"'i<J"",,,,1 DESCRIPTION '(.IHdl'lI""" DESCRIPTION ".'l~dl."",,,, Sales or fin~nci(1g ; "'"i';;"II'i,::,i,,':,,,!:j,il::,Oi[i;':;i;!":;i:;':"~I; Unknown Nono, Conv, Nons, Conv : concessions 'f},I:,::II'.I:~"I!!I"I"i"!I",;!Ii~"I'.II~ill:;:i~11:""::;.:. Unknown: DOM 5 , DaM 27 : Dele of sale/tim9 1:';:;;I:'h"li':'!'~!';I:;:,I;,,"!,iI!Lill;i;li,)~Jliv 01120/2005 05/28/2004 10{1312003 Location Urban Urban : Urban : Urban L08&eholdlFee SlmRill Fee Simol. Fe9 SImDle: Feo Slmale: FeQ SlmoJe ' Slle .53 Ae/Avo .42 AcfAvo ,20 AclAvg , .08 Ac{Ava ' View Urban Urban 'Urban Urban DUlon and BODell 2Stvl4Unit/Good 2Stvf3UnitfGood : 2Stv/3UnWGood i 2Stv{3UnlUGood : . QuaAtvofoon,~ction Good Good Good Good' . Ace 100 Yr. 10Q Yrs ~ 100 Yrs i 100 Yrs ' . Condition Good SuDerio....: -2500 Sunerlar. .2 500 Suoerla.... : -2,500 Gran BUlldina NtO 5.528 59, ft. 3 991 S It.' 30 740 3, 200 S .ft. 46 560 3406 S .ft. I 42.400 . , t 20 ~ Rm, eoutiI Na.' Rrn, ('.(lIJl'It N().; ~ Rn", aMll NO.: ": Rm. tOl.mt NO,: /IIl1" '., e, 9. Vie .It ToI 91 8t v,,~ ...nll 10( 8' B. VIlt; """ 1., II< e. Vo,: · Unll 1 4 1 1 0 1 4 1 2 l' 1 B 6 1,5 l' -1,500 1 5 0 .50; 1,500 brea~down 1 3 1 1 0 1 5 2 1 1; 1 3 1 1 0', 1 4 2 1 0: 142 10141 10: 131 10: 142 10: 1 8 3 2 0 I 5 000 5000 5 000 Bm'menl d9SCliption PartBsmUUnfln Ful/fFlnished PartBsmtfUnfin PartBsmt/Unfin F'unctiona/ u(ili!v Averaae Aversae : Averaolt : Averaae Heallnalcoollnc HWStmICA-2ndFI HWStm/CA-1stF' EBBINone 2000 HWSt.amINoOQ I 2000 F'8rkln~ on/off ,ile 2CGar/CrDtJOffSt 2COetGI3CDetG: Off Streot 6.000 On StrQot e 000 Projeclumenllln and PatlofScrndPorl Prches/Balcny' 2,000 Porches 12,500 Porches{Patlos 1 10,000 fee iii aOD/jc.abl~l Inard Pooll1 Frolc 2 Frr?lcesfElvtor j ; , . , , Ne(l\dUtolal\ :)iiili,J:iill':li;,;,:(;?:iit),/i>'I:'fl,i;iWi:l'l) rXl. ~(l. I 35.240 Ixl. 11. I 68.060 (xl. [ 1. I 66400' Adl sales pri~ 01 i!e:!I'II/(If:IPI!jll:/I.I:lill'I:i/IIIU1/iii!IPIII!'r;!I,@j)~~!:i'~~'!:t'%i;i :Jii;,',i l~iilti';::H)jO:%lilll"I\'I!!':,\'!\dl:i"'''''' ~'I~'lc"':"'""'.I;"'; :-. ;'!i:',il:J,~~I!,~[I'(!!lli!,ti;J::{:::tI';IIL\'iliii:'~:;lI'II' 1~~ii!il~.I!!.!~~'1:i1tj::;,:j;il:,:,,',,,,i:'i 26.'; '''':In;l;lr.i:i:l':i~~li~\iiliiii:ihlli!ij! hW"I,im:'J 1 "n;;ji~~I('IIIIII.i:!I::.i; como~r8bles ;"..r;;:i.i/lm'i'",;'iIW,;'" .",,,..;, I'"';!),:I .IN\,("iil'I"I:'~lltll;l:"!II'.!" i,\,;.:,s 5.140 . y",:~'j'::, ","',l!.Y:.!"Il;;,;,i:'II:'i!;'1 313.560 I.'lIlUlllilu!:1 IjJ4W .1:lli,iI':11 300 400 Commenh on SAles Compari$on (Including rfconci/iatlon 01 All indicato" of v~lue a~ to conlislency and rA\31i~e str8ngth and '~8IuAI/on of thq typical inv8sI0r'3Ipulche$er"s morlv~tion In thai m~r\(el); ~$t1matod range of valuG is $285,000 to $~13,OOO. Lack of suitable multi-family comp;arabl". of similar stYle and aualltv reouired an eXDanded search area. TI1089 are the best salas comoarable$ known to b9 available The adiusted Dr/cs{unlt for the comDarablu are $95 8BOf$10S 3SJ and $100.;66 rQsDGctivelv. .Thls adjustment reflocts th9 estimated repitir COAt to lave' the bas&ment floor to Drev_nt .truC1urallnbalance. IT;M SUBJECT COMPARABLE NO 1 COMPARAB~E NO.2 COMPARA8LE NO.3 Dale. Price end Oat. 0710111940 Sovn:elcq)(il)/ilIJes $1,900 NOM None N \\oIlhin ~ of accral,,' Courthouso Courthouse COlJrtholJse C~~~house ~~J::&. of any cUITIlnl agreement 01 Eale, oPtion, or Iisling 01 the sUbJ.ct PIQP8rty and anely&j& of any prior sale$ 01 aub/gc1and oomparablee w~hln one yeero( lt1ij dele of 8P!'fBisal' o nor transfera wIthIn the oaet 38 months. Comnarabllla have not transferrod within the nast 12 months, . Tol~1 gross monthly llsttmlled rent S 2,400 . gross ren' rnulllpij,r (GRM) 119 0 ; $ ~:;Imel:: on income appr09Cn (including expenlA rallDs. if evelleblg, and reconclll~flon ~f Ihe GRM) 1h2 comPlrabr:~:~O h~NOICATED V^L~E BY INCOME APPROACH S nd ra dQvlat!on of 2. Based unon Ihls analvsis we I'9concile the GRM at 119 s a moan 0 117 itnd a INDICATED VALUE BY SA1.ES COMI"ARISON APPROACH INDICATEO VAl.UE BY INCOME APPROACH " '. . . , . $ 303.000 INDICATED VAl.UE BY cosT APPROACH ' . . . . . . " s 285,600 ThiS appraiQall& made 1}(1 'I ." 0 . ."".. . .".. . , , . . . S N{A l.O.J 8S IS Subject ltl ihe ropa/ci, alterations, /n'ps.:tlons Of condilioos U'/ad b9/ow ' 0 ' . . . . .. . Comment. end Condlllons of Appraisal: The orooertv has been aODr I ,ub/tct 10 romp/At/on p.r plan! and specifics/Ion:. nontransferable. S.. attached addendum. ra set1ln currsnt condItion. This aODralul is for client onlv, . Fin,1 Reconcili.tioll: Most emllhasls I. n/aced unon the salsa co ID. . aooroach deemgd inaDorODrlate due to thQ aa. f th J 'DI m arlson and tho Income aDDfoachos to vatue, with tho cost . $290000 0 e m rovemQnts.. I reconcile tho value of the sublect oroperty to be TI1. nUrMttl nl 1111. .nn'2Inll.ln ...lim..l. 111.. morhl v.l"a nf III I "r.. nmr\ArN tMb! lit. th6 ~lInlft,.t #It' .....1.. ..___-I. L ., , , SUMMARY APPRAISAL REPORT SMALL RESIDENTIAL INCOME APPRAISAL REPORT 05-0073 General description Exterior description (Materials/condition) Foundation Insulation (R-value t known) Units/bldgs. 4/1 Foundation Stone/AlGd Slab Partial o Roof Stories 2 Exterior walls Brick/AlGd Crawl space None lXJ Ceiling · Type (del./att.) Detached Roof surface Asphalt ShinClle/AlGd Sump Pump None lXJ Walls . Design (style) 2 Story Gutters & dwnspts. Aluminum/AlGd Dampness None Obs lXJ Floor . Exist ing/proposed ExistinCl Window type Wood Dbl HunCl/AlGd Settlement None Obs o None Under construction No Stam sash/Screens Yes Infestation None Obs Adequacy AveraCle Year Built 1900 Manufactured housing' DYes lKJ No Basement 50 % of 1 st floor area Energy efficient items: Effective age (yrs.) 15-20 '(Complies with the HUD Manufactured Housing Baserrent filOO Unfinished R Factors Unknown Good Condition Construction and Safetv Standards.) Units Level(s) Foyer Livinq Dininq Kitchen Den Family rm. Bedrooms # Baths Lau ndry Other Sq. ft.lunit Total /,Z'I 1 1 1 1 1 1 1 940 1 1 1 1 1 1 940 1 1 1 1 2 1 836 1 2 2 1 1 1 3 2 S itnCl 2812 Improvements contain: 19 Rooms; 7 Bedroom:"s); 5 Bath(s); 5 528 Square feet of GROSS BUILDING AREA GROSS BUILDING AREA (GBA) IS DEFINED AS THE TOTAL FINISHED AREA (INCLUDING COMMON AREAS) OF THE . IMPROVEMENTS BASED UPON EXTERIOR MEASUREMENTS. . Surfaces (Materials/condition) Heating Kitchen equip. (# / unit-cond.) Attic Car Storage No. Cars -2- Floors Hrdwd/CrptNinyl Type HWStm Refrigerator 4/AvCl o None Garage lXJ . lXJ Stairs 00 Walls Drywall Fuel Oil Range/oven 4/Avg Carport · Trim/finish Wood Condition AveraCle Disposal o Drop stair Attached 0 Bath floor Vinyl Dishwasher o Scuttle Detached 0 . 00 Floor 0 Bath wainscot Drywall/CerT Cooling Fan/hood Adequate . Doors Wood Central Yes(2nd FI) Compactor o Heated Inadequate 0 Good Condition Other None ~ o Finished Offstreet 00 Condition Average Microwave o Unfinished None 0 Fireplace(s) # 1 Intercom Cond~ion of the improvements, repairs needed, quality of construction, additional features, modernization, etc.: Garaae with second floor storaae. StoraCle area was not accessedlinspected. Improvements are in Qood condition with no phvsical or functional inadeauacies apparent. Depreciation (physical, functional, and external inadequacies, etc.): There are no physical functional, or external inadequacies apparent. . Adverse environmental conditions (such as, but not limited to, hazardous wastes, toxic substances, etc.) present in the improvements, on the site, or in . the immediate vicinity of the subject properly: No adverse environmental conditions are apparent/disclosed. . . . . VALUATION ANALYSIS ESTIMATED SITE VALUE ............................... =$ Comments on Cost Approach (such as, source of cost estimate, site value, ESTIMATED REPRODUCTION COST-NEW OF IMPROVEMENTS: square foot calculation and, for HUD and VA, the estimated remaining Sq. Ft. @ $ =$ 0 economic life of the property): Cost Approach deemed a poor Sq. Ft. @ $ =$ indicator of value due to aQe of the improvements. Estimated , . SUMMARY APPRAISAL REPORT SMALL RESIDENTIAL INCOME APPRAISAL REPORT 05-0073 At least three rental comparables should be reported and analyzed in this section. The rental comparables should represent the most current rental information on properties as similar and proximate to the su bject property as possible. (This comparison is based on current rental data, therefore, the rental comparables typically are not the same comparables used in the sales comparison analysis.) The appraisal report should assure the reader that the units and properties selected as comparables are comparable to the subject property (both the units and the overall property) and accurately represent the rental market for the subject property (unless otherwise stated within the report). ITEM SUBJECT COMPARABLE RENTAL NO.1 COMPARABLE RENTAL NO.2 COMPARABLE RENTAL NO.3 Add 76 W. King Street 306 W. King Street 216-220 E. Orange Street 15-21 Kenneth Avenue ress Shiooensbur Shiooensbura Shiooensbura Shiooensbura Proximity to subject 0.25 MI W 1.6 MI ENE 2.2 MI NE Lease dates (if available) Annual Leases Annual Leases Month to Month Month to Month Rent survey date 02/17/2005 12/27/2004 11/29/2002 11/29/2002 Data source Inspection Owner Owner Multi-list Multi-List/Courthouse Rent concessions None None None None No. Units No. Va:;. No. Un<<s3 No. Vac. 1 Yr. BIt.: 1900 No. Un<<s4 No. Vac. 1 Yr.BIt.: 1900 No. Un<<s4 No. Vac. 1 Yr. BIt.: 1900 Description of Yr. Bit.. 1900 property - units, 2 StvlDetached 2.5 Sty/Detached 2 StvlDetached 2 StylDetached design, appeal, Aot. Buildina Aot. Buildinq Aot. Blda. Apt. Blda. age, vacancies, Good Condition Good Condition Averaae Condition Averaae Condition and conditions Rm. Count Size Rm. Count Size Total Rm. Cou nt Size Total Rm. Count Size Total Tot Br Ba Sa. Ft. Tot Br Ba Sq. Ft. Monthly Rent Tot Br Ba So. Ft. Monthly Rent Tot Br Ba Sa. Ft. Monthlv Rent Individual 4 1 1 940 4 1 2 2041 850 5 3 1 1213 450 4 2 2 900 500 unit 3 1 1 940 5 2 1 1309 725 5 3 1.5 1280 475 4 2 1 900 475 breakdown 4 2 1 836 4 1 1 641 525 3 1 1 674 350 4 2 1 900 475 8 3 2 2812 2 1 1 541 350 4 2 1 900 500 Water/SewerlTrsh Water/Sewer/Trsh Water/SewerlTrash WaterlTrash/Sewer Utilities, Oil furniture, and amenities included in rent PartBsmt/Unfin Full BsmtlFinished Full Basement/Unfinished Full Basement/Unfinished . Functional utility, HWStm/2ndFI-CA HWStm/1 stFI-CA FHA/None FHA/None . basement, Pat/Por/PooIl1 FP P rches/Balc/2FPs/Elev. Porch Porch . heating/cooling, 2CGar/Crpt/OffStrt 2CGar/3CarGar/OffSt Off Street Parkinq Off Street Parkina . project amenities, etc. . Analysis of rental data and support for estimated market rents for the individual subject units (including the adjustments used, the adequacy of comparables, rental concessions, etc.) " Rental #1 has fewer units/rooms/bedrooms/baths. It has less GLA. It has more aaraae availablility and finished basement. It does not have an inaround pool. Rental #2 has fewer units/rooms/bedrooms/baths. It has less GLA. It does not have aaraae availabilitv or off street oarkina. It does not have an inaround pool and in inferior in condition. Rental #3 has fewer · units/rooms/bedrooms/baths. It has less GLA. It does not have qaraae availabilitv or off street parkina. It does not have an inaround 0001 and is inferior in condition. Subject's rent schedule The rent schedule reconciles the applicable indicated monthly market rents to the appropriate subject unit, and provides the estimated rents for the subject property. The appraiser must review the rent characteristics of the comparable sales to determine whether estimated rents should reflect actual or market rents. For example, if actual rents were available on the sales comparables and used to derive the gross rent multiplier (GRM), actual rents for the subject should be used. If market rents were used to construct the comparables' rents and derive the GRM, market rents should be used. The total gross estimated rent must represent rent characteristics consistent with the sales comparable data used to derive the GRM. The total gross estimated rent is not adjusted for vacancy. LEASES ACTUAL RENTS ESTIMATED RENTS Unit Lease Date No. Per Un" Total Per Un" Total Beain Units End Vacant Unfurnished Furnished Rents Unfurnished Furnished Rents 1 June June 0 $ 404.00 $ $ 404.00 $ 450.00 $ $ 450.00 1 June June 0 368.00 368.00 500.00 500.00 1 Mnnth "-1I.............+h n conn nn ~,..."... ........ -........ ........ --- -- .. . SUMMARY APPRAISAL REPORT SMALL RESIDENTIAL INCOME APPRAISAL REPORT 05-0073 The undersigned has recited three recent sales of properties most similar and proximate to the subject property and has described and analyzed these In this analysis. If there Is a significant variation between the subject and comparable properties, the analysis includes a dollar adjustment reflecting the market reaction to those items or an explanation supported by the market data. If a significant Item in the comparable properly is superior to, or more favorable than, the subject property, a minus (-) adjustment is made, thus reducing the adjusted sales price of the comparable property; If a significant item in the comparable property Is inferior to, or less favorable than, the sub'ect Droperty, a Dlus It) adiustmentls made, thus increasin the adiusted Drice or the comDarable DrODerlv. [(1) Sales Price _ Gross Monthlv Rent! ITEM I SUBJECT COMPARABLE NO.1 COMPARABLE NO.2 COMPARABLE NO.3 76 W. King Street 306 W. King Street 300 S. Hanover Street 70-72 W. Pomfret Street Address Shippensbur Shippensburq Carlisle Carlisle Proximitv to subiect 0.00 MI 21.8 MI ENE 21.3 MI ENE Sales price $ N/A Unf. [ Furn. $ 249,900 X Unf. [ Furn. $ 245,500 X Unf. Furn. $ 234 000 Sales price per GBA $ 52.46 $ 62.62 $ 76.72 $ 68.66 Gross monthlv rent $ 2 400 $ 2.100 $ 2,100 $ 2025 Gross roo. rent mull. (1) 120.83 119.00 116.90 115.56 Sales price per un~ $ 42 500 $ 83 300 $ 81 833 $ 78 000 Sales price per room $ 10 000 $ 19 223 $ 17 536 $ 18 000 Data and/or Inspection App.Data/CHR MLS/Courthouse Records AppData/Courthse Verification Sources Courthouse ADJUSTMENTS DESCRIPTION DESCRIPTION , t (.j $ Adjustment DESCRIPTION , t (-) $ Adjustment DESCRIPTION , t (-)$ Adjustment Sales or financing Unknown , None, Conv , None,Conv , , , , , , , conceSSions Unknown , DaM 5 , DOM 27 , , , , Date of sale/time 01/20/2005 , OS/28/2004 , 10/13/2003 , Location Urban Urban , Urban , Urban , , , , Leasehold/Fee Simple Fee Simple Fee Simple , Fee Simple , Fee Simple , , , , Site .53 Ac/Avq .42 Ac/Avq , .20 Ac/Avq , .08 Ac/Avq , View Urban Urban , Urban , Urban , , , , Desion and appeal 2Stv/4Unit/Good 2Stv/3Unit/Good : 2Stv/3UnitlGood : 2Sty/3Unit/Good : - Qual~v of construction Good Good , Good , Good , - Aqe 100 Yrs 100 Yrs , 100 Yrs , 100 Yrs , , , , .. Condition Good Good , Good , Good , , , , Gross Building Area 5 528 Sq. ft. 3 991 S .ft.' 30.740 3 200 S .ft.' 46 560 3 408 S .ft.' 42,400 . , , , 20 ~ Rm. count No. ~. Rm. count , ~ Rm. count , ~. Rm. count , ci ci No.1 ci NO.1 ci NO.1 units Tot Br Ba Vac. units Tot Br Ba Vaci units Tot Br Ba Vac{ units Tot Br Ba Vac.1 , .. Unit 1 4 1 1 0 1 4 1 2 l' 1 8 6 1.5 l' -1,500 1 5 0 .5 0' 1,500 breakdown 1 3 1 1 0 1 5 2 1 1: 1 3 1 1 0: 1 4 2 1 0: 1 4 2 1 0 1 4 1 1 0: 1 3 1 1 0: 1 4 2 1 0: 1 8 3 2 0 , 5000 , 5000 , 5000 Basement description PartBsmt/Unfin Full/Finished , PartBsmtlUnfin , PartBsmt/Unfin , , , , Functional utilitv Averaqe Averaae , Averaqe , Averaqe , , , , Heating/cooling HWStm/CA-2ndFI HWStm/CA-1 stF : EBB/None , 2000 HWSteam/None : 2,000 Parkino on/off site 2CGar/CrptlOffSt 2CDetG/3CDetG : Off Street , 6000 On Street , 8,000 , , Project amenities and Patio/ScrndPor/ Prches/Balcny : 2,000 Porches , 12,500 Porches/Patios , 10,000 , , fee (if applicable) Inard Pooll1 Frplc 2 Frolces/Elvtor : , , , , , , , , , , N,' Adl, <101,11 X., . 37.740:IMII: 70560:lliBl: 68900 Adj. sales pnce of comparables 287,640 316,060 302900 Comments on Sales Comparison (including reconciliation of all indicators of value as to consistency and relative strength and evaluation of the typical investor's/purchaser's motivation in that market): Estimated ranae of value is $288 000 to $316 000. Lack of suitable multi-familv com parables of similar stvle and Qualitv required an expanded search area. These are the best sales com parables known to be available. The adjusted price/unit for the comparables are $95 880/$105 353 and $100 966 respectively, ITEM SUBJECT COMPARABLE NO.1 COMPARABLE NO.2 COMPARABLE NO.3 Date, Price and Data 07/01/1940 Source for prior sales $1,900 None None None w~hin vear of appraisal Courthouse Courthouse Courthouse Courthouse Analysis of any current agreement of sale, option, or listing of the subject property and analysis of any prior sales of subject and comparables w~hin one year of the date of appraisal: No prior transfers within the past 36 months. Com parables have not transferred within the past 12 months. Total gross monthly estimated rent $ 2,400 x gross rent multiplier (GRM) 119.00 =$ 285,600 INDICATED VALUE BY INCOME APPROACH Comments on income approach (including expense ratios, if available, and reconciliation of the GRM) The comparable GRM has a mean of 117 and a standard deviation of 2. Based upon this analvsis we reconcile the GRM at 119 I INDICATED VALUE BY SALES COMPARISON APPROACH , , , , , , , , , , , , , , , , , , , , , , , , " "","'" $ 305000 INDICATED VALUE BY INCOME APPROACH. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. ........ $ 285 600 INDICATED VALUE BY COST APPROACH $ N/A This appraisal is made lXJ "as is' 0 subject t~ the ;e~aU:S, 'alt~r~ti~n;, i~s~e~tio~s'or'~nd~~n; I~ted bel~w' . . . . 0 ~ubject 'to'c~m~l~ti~n 'p~r ~Ia~s and specifications. Comments and Cond~ions of Appraisal: The property has been appraised in current condition. This appraisal is for client only, . . Operating Income Statement SUMMARY APPRAISAL REPORT One- to Four-Family Investment Property and Two. to Four-Family Owner-Occupied Property 05-0073 Property Address 76 W. King Street Shippensburg PA 17257-1214 Street City State Zip Code General Instructions: This form is to be prepared jointly by the loan applicant, the appraiser, and the lender's underwriter. The applicant must complete the following schedule indicating each unit's rental status, lease expiration date, current rent, market rent, and the responsibility for utility expenses. Rental fiQures must be based on the rent for an "unfurnished" unit. Currently Expiration Current Rent Market Rent Paid Paid Rented Date Per Month Per Month Utility Expense By Owner By Tenant Unit No.1 Yes x No 404 $ 450 $ Electricity . . . . . . . . .0 00 - Gas..........,. .0 0 Unit No.2 Yes ~ No 368 $ 500 $ - Fuel Oil ..........00 0 Unit No.3 Yes ~ No - 500 $ 500 $ Unit No.4 Yes x No - 0 $ 950 $ Fuel (Other) . . . . . . .0 0 Total $ 2,400 $ Water/Sewer. . . . . . .00 0 Trash Removal . . . . .[Xl n The applicant should complete all of the income and expense projections and for existing properties provide actual year-end operating statements for the past two years (for new properties the applicant's projected income and expenses must be provided). This Operating Income Statement and previous operating statements the applicant provides must then be sent to the appraiser for review, com- ment, and/or adjustments next to the applicant's figures (e.g., Applicant/Appraiser 288/300). If the appraiser is retained to complete the form instead of the applicant, the lender must provide to the appraiser the aforementioned operating statements, mortgage insur- ance premium, HOA dues, leasehold payments, subordinate financing, and/or any other relevant information as to the income and expenses of the subject property received from the applicant to substantiate the projections. The underwriter should carefully review the applicant's/appraiser's projections and the appraiser's comments concerning those projections. The underwriter should make any final adjustments that are necessary to more accurately reflect any income or expense items that appear unreasonable for the market. (Real estate taxes and insurance on these types of properties are included in PIT! and not calculated as an annual expense item.) Income should be based on current rents, but should not exceed market rents. When there are no current rents because the property is proposed, new, or currently vacant, market rents should be used. Annual Income and Expense Projection for Next 12 months Adjustments by I ncome (Do not include income for owner-occupied units) By Applicant/Appraiser Lender's Underwriter Gross Annual Rental (tom uM(s) to be rented) ...................... $ 28,800 $ Other Income (include sources) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . + + Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 28,800 $ Less Vacancy/Rent Loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 1440.00 ( 5%) ( %) Effective Gross Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27 ,360 $ Expenses (Do not include expenses for owner-occupied uMs) Electricity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gas. . . . . . . ., . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fuel Oil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,880 Fuel . . . . . . . . . . . . . . . . . . . . . . . . . . .(Type- ) Water/Sewer Trash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400 Trash Removal ........................................... Pest Control ............................................. Other Taxes or Licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Casual Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . This includes the costs for public area cleaning, snow removal, etc., even though the applicant may not elect to contract for such services. Interior Paint/Decorating. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . This includes the costs of contract labor and materials that are required to maintain the interiors of the living units. General Repairs/Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 ,440 This includes the costs of contract labor and materials that are required to maintain the public corridors, stairways, roofs, mechanical systems, grounds, etc. Management Expenses ..................................... These are the customary expenses that a professional manage- ment company would charge to manage the property. Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . This includes the costs of items like light bulbs, janitorial . . SUMMARY APPRAISAL REPORT 05-0073 Replacement Reserve Schedule Adequate replacement reserves must be calculate regardless of whether actual reserves are provided for on the owner's operating statements or are customary in the local market. This represents the total average yearly reserves. Generally, all equipment and com- ponents that have a remaining life of more than one year-such as refrigerators, stoves, clothes washers/dryers, trash compactors, furnaces, roofs, and carpeting, etc.-should be expensed on a replacement cost basis. Equipment Replacement Remaining By Applicantl Lender Cost Life Appraiser Adjustments Stoves/Ranges . . . . . @$ 350.00 ea.+ ~ Yrs. x 4 Units =$ 93.33 $ Refrigerators. . . . . . . . @$ 300.00 ea.+ --1l Yrs. x 4 Units =$ 100.00 $ Dishwashers ........@$ ea.+ _ Yrs. x Units =$ $ AlC Units ..........@$ ea.+ _ Yrs. x Units =$ $ C. Washer/Dryers .... @$ ea.+ _ Yrs. x Units =$ $ HW Heaters. . . . . . . . . @$ 175.00 ea.+ ---1Q Yrs. x 4 Units =$ 70.00 $ Furnace(s). . . . . . . . . . @$ 4,500.00 ea.+ -1Q Yrs. x 1 Units =$ 225.00 $ (Other) . . . . . . . . . . . @$ ea.+ _ Yrs. x Units =$ $ Roof ..............@$ 10,000.00 + 15 Yrs. x One Bldg. = $ 666.67 $ Carpeting (Wall to Wall) Remaining Life (Units) _ Total Sq. Yds. @$ Per Sq. Yd. + _ Yrs. = $ $ (Public Areas) _ Total Sq. Yds. @$ Per Sq. Yd. + _ Yrs. = $ $ Total Replacement Reserves. (Enter on Pg. 1) $ 1,155.00 $ Operating Income Reconciliation $ 27,360.00 - $ 7,875.00 =$ 19,485.00 + 12= $ 1,623.75 Effective gross Income Total Operating Expenses Operating Income Monthly Operating Income $ 1,623.75 - $ =$ 1,623.75 Monthly Operating Income Monthly Housing Expenses Net Cash Flow (Note: Monthly Housing Expense includes principal and interest on the mortgage, hazard insurance premiums, real estate taxes, mort- gage insurance premiums, HOA dues, leasehold payments, and subordinate financing payments.) Underwriter's instructions for 2-4 Family Owner-Occupied Properties . If Monthly Operating Income is a positive number, enter as "Net Rental Income" in the "Gross Monthly Income" section of Freddie Mac Form 65/Fannie Mae Form 1003. If Monthly Operating Income is a negative number, it must be included as a liability for qualification purposes. . The borrower's monthly housing expense-to-income ratio must be calculated by comparing the total Monthly Housing Expense for the subject property to the borrower's stable monthly income. Underwriter's instructions for 1-4 Family Investment Properties . If Net Cash Flow is a positive number, enter as "Net Rental Income" in the "Gross Monthly Income" section of Freddie Mac Form 65/Fannie Mae Form 1003. If Net Cash Flow is a negative number, it must be included as a liability for qualification purposes. . The borrower's monthly housing expense-to-income ratio must be calculated by comparing the total monthly housing expense for the borrower's primary residence to the borrower's stable monthly income. Appraiser's Comments (including sources for data and rationale for the projections) Forecasted rents and expenses appear fair for the local market conditions. r- ~ I , \ " . . FLOORPLAN Borrower: FREEMAN, William A. File No.: 05-0073 Property Address: 76 W. King Street Case No.: City: Shippensburg State: P A Zip: 17257 Lender: Dr. William A. Freeman I . . &crnd In Porch i Kitchen E living 0 e " Q) lD Bath Kitchen Den E Din:g l 0 e "0 <Il OJ 0> C .:; OJ OJ ::J " ::J c c .:; .:; ::J :.:J Sketch by Apex IV Windows ™ F rst 1 Unit #2 First 19.00 x 40.00 760.0000 Unit #3 Rear 836.0000 716.0000 12.00 x 15.00 180.0000 GLA2 Unit #4 Second F1o~12.0000 812.0000 Unit #2 First Floor pIp Screened In Porch 220.0000 19.00 x 40.00 760.0000 Patio 704.0000 924.0000 12.00 x 15.00 180.0000 GAR Carport 814.0015 814.0015 Unit #3 Rear OTH Hallway 96.0000 96.0000 22.00 x 38.00 836.0000 unit #4 Second Floor 38.00 x 74.00 812.0000 >:)ut).lt:\,; I t"KVt"t:K I Y t"HUI U ADDENDUM Borrow.er: FREEMAN, William A. File No.: 05-0073 Property Address: 76 W. King Street Case No.: City: Shippensburg State: PA Zip: 17257 Lender: Dr. William A. Freeman I=RONT VIEW OF SUBJECT PROPERTY Appraised Date: REAR VIEW OF SUBJECT PROPERTY ""I, STREET SCENE H" , , !' '.> ~...t it...>. =f' .~di~f~~' 'j'~ ... -, -'~~ .. ;j~. . II ~."'::> "'. "'.;!.,,- I i . .Borrow.er: FREEMAN, William A. File No.: 05-0073 Property Address: 76 W. King Street Case No.: City: Shippensburg State: PA Zip: 17257 Lender: Dr. William A. Freeman . ~-.~.~~~,.._". --'-"-'~..._-.. ~ . ~~.;.;;:.-. . :~;:( :.~~\li~,~;~~~:"~ ...,," ~' .......... "-'<T'- , . #j" . ." < ...... . . "\~1J: "" : . _ - ,(n: ',' '--~ _~__ J_(,,~_ .' .~. 'i..i4.;.;.~~. -- - \"VIVlI"'I-\KADLt: I"'KVI"'t:K I Y t'HOTO ADDENDUM Borrow,er: FREEMAN, William A. File No.: 05...0073 Property Address: 76 W. King Street Case No.: City: Shippensburg State: PA Zip: 17257-1214 Lender: Dr. William A. Freeman , I COMPARABLE SALE #1 306 W. King Street Shippensburg Sale Date: 01/20/2005 Sale Price: $ 249,900 COMPARABLE SALE #2 300 S. Hanover Street Carlisle Sale Date: OS/28/2004 Sale Price: $ 245,500 .- ,~",...... COMPARABLE SALE #3 I "'-.'" 70-72 W. Pomfret Street Carlisle A Sale Date: 10/1312003 Sale Price: $ 234,000 ~ . LOCATION MAP Borrower: FREEMAN, William A. File No.: 05-0073 Property Address: 76 W. King Street Case No.: City: Shippensburg State: P A Zip: 17257-1214 Lender: Dr. William A. Freeman ""'" . - Q:-0 .::,,<:'" 9:-0 (j ~<:.., <1.." - .. YORK RD . . Borrower: FREEMAN, William A. File No.: P~operty Address: 76 W. King Street 05-0073 City: Shippensburg Case No.: Lender: Dr. William A. Freeman State: PA Zip: 17257-1214 ~ .;jJ~ -- - - ~{ ~ I n ~ FloodMap Legend Flood Information . . File No. 05-0073 ********* QUALIFICATIONS ********* The following checked items are SPECIFIC SPECIAL CONDITIONS that were identified by this appraiser during the inspection of the subject property, the com parables sales, and their neighborhoods and locations. Unless otherwise noted, the conditions that apply to the subject property or the comparable sales used DO NOT AFFECT THE MARKET VALUE OR THE FUTURE MARKETABILITY OF THE SUBJECT PROPERTY BEING APPRAISED. This is not a home inspection service. This is an appraisal to estimate market value. _1. The subject is located in a rural area and is less than 25% built-up. _x_2. Commercial/Industrial uses are located within the subject's neighborhood. These uses are typical of similar neighborhoods. _3. Vacant and undeveloped land uses are located within the subject's neighborhood. These uses are typical for the area. _x_ 4. The predominant value in the neighborhood is less than that of the market value of the subject property. This is due to the very wide range of value of properties in the area and superior quality of the subject property. _5. The subject property is located in a F.E.M.A. Identified Flood Zone. Flood insurance coverage is required and suggested. _6. Dampness is noted in the basement of the subject. Standing or running water was not present on basement floor. This condition is considered typical in dwellings of this style. _7. The subject property is serviced by private well and/or septic systems which is common for the area. _x_8. The subject is older than five(5) years. All mechanical systems including the heating, electrical and plumbing systems appear upon a visual exterior inspection to be in working order. No warranties are implied in this statement. _9. Repair items were noted in the comments section of the report. These comments on repair items are for descriptive purposes only and are not required repairs. The items listed are cosmetic in nature. _10. The basement floor is a dirt floor. This condition is common and typical for the area. and does not pose a health or safety hazard. _11. The subject property does contain functional obsolescence as noted in the report. This condition is considered typical and common for the area and this style dwelling. _12. The land value exceeds 30% of total value due to the high demand for vacant land in this neighborhood. This condition is considered common and typical for the neighborhood. _13. The land value exceeds 30% of total value. This is due to the large size of the site. This condition is considered to be typical and common. _14. Individual adjustments were required that exceed 15%. These adjustments were required due to lack of more similar comparables on that individual rating. All com parables used are the best available. _x_15. Total adjustments exceed 25%. This is due to the lack of comparable sales that were more similar in the subject's market area. All com parables used are the best available. _x_16. One or more comparable sales are older than six(6) months. Although there are comparable properties in the subject's area, none have sold recently; therefore, sales in excess of six(6) months have to be used. All com parables used are the best available. _x_17. One or more comparables used were in excess of one (1) mile from the subject property. Although there are comparable properties in the immediate area, none have sold recently. Therefore, it was necessary to use comparable sales outside of the immediate area. All com parables used are located in similar neighborhoods and within the same marketing area. All com parables used are the best available. _18. The electrical system was not connected during inspection. .. . File No. 05-0073 I ********* QUALIFICATIONS ********* I _24. The subject property is located on a private road. _25. Wood infestation inspection is suggested. _x_26. Last recorded deed transfer: Date_07/01/1940_. Consideration: $_1.00 _27. Proposed construction/renovation in accordance to plans and specifications to be completed in a workman-like manner. _28. Seller is paying part or all of closing costs. _x_29. All comparable sales are verified closed sales. _x_30. There are no special conditions or other requirements that would affect market value or future marketability in the Appraisal Report. CHECKED ITEMS ARE SPECIFIC SPECIAL CONDITIONS THAT WERE IDENTIFIED BY THIS APPRAISER DURING INSPECTION. ~ , . File No. 05-0073 DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions' granted by anyone associated with the sale. . Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the Appraiser's judgment. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible ownership. 2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of its size. 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand. 5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc. ) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc. ) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment of the property. 7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties. 8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 9. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, .............:..... ....... ...1................:................. ,,1...... ___..__..:__ "L.....oI. ____1_..:__ _~,"L._ :____..____.&._ ...:11 1..._ __J_____-.l!_ _ ._.__I_~~___I'I____ . . ... File No. 05-0073 APPRAISERS CERTIFICATION: The Appraiser certifies and agrees that: 1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation. If a significant item in a comparable property is superior to , or more favorable than, the subject property, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject property, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct. 3. I stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent and limiting conditions specified in this form. 4. I have no present or prospective interest in the property that is the subject to this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property. 5. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property. 6. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, the amount of the value estimate, the attainment of a specific result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal. I did not base the appraisal report on a requested minimum valuation, a specific valuation, or the need to approve a specific mortgage loan. 7. I performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of the effective date of this appraisal, with the exception of the departure provision of those Standards, which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconciliation section. 8. I have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as com parables in the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property. 9. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on significant professional assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that: I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. ADDRESS OF PROPERTY APPRAISED: 76 W. King Street, Shippensburg, PA 17257-1214 ~ ~ STEVEN W. BARRETT REAL ESTATE AND APPRAISAL SERVICES \ 124 N. HANOVER STREET, CARLISLE, PA 17013 (717) 243-6646 .~, File No. 05-0070 APPRAISAL OF LOCATED AT: 59-61 W. King ~treet Shippensburg, PA 17257-1224 FOR: Dr. William A. Freeman 67 West King Street Shippensburg, PA 17257 BORROWER: FREEMAN, William A. AS OF: ~ . " STeVEN W. BARRETT REAL ESTATE AND APPRAISAL SERVICES 124 N. HANOVER STREET, CARLISLE, PA 17013 (717) 243-6646 File No. 05.0070 u_....._____...___._"_.._ ~... ._.__"_ -. ......-.-. -. u._.__" u___._. ____.....___..___.____~ , I I I !I 03/25/2005 I i Dr. William A. Freeman 67 West King Street Shippensburg, PA 17257 File Number: 05-0070 In accordance with your request, I have personally inspected and appraised the real property at: 59-61 W. King Street Shlppensburg, PA 17257.1224 The purpose of this appraisal is to estimate the market value of the subject property, as improved. The property rights appraised are the fee simple interest in the site and improvements. In my opinion, the estimated market value of the property as of July 2, 2004 is: $170,000 One Hundred Seventy Thousand Dollars The attached report contains the description, analysis and supportive data for the conclusions, I final estimate of value, descriptive photographs, limiting conditions and appropriate certifications. I Respectfully submitted, I I I \ &Q.~uJ{~ I , Stan A. Skowronek Certified Residential Appraiser I I ~ ~ SUMMARY APPRAISAl:. REPORT SMALL RESIDENTIAL INCOME APPRAISAL REPORT 05-0070 - - -. ~'~~~~t!oj~r.es3 5_~~~~)__YLlSl!:1il Street ____ City Shippensbl!.!g Stale P A Zip Code 17257-1224 ..h~93!\ Descrif'lion D~ed .~2.2.k 26-B, pag~ 354 - Counly Cumberland .!I::;sessor's Parcel No. 34-~4-2415-021 "--'_. Tax Year 04/05 R.E. Taxes $2,890 SE-ecial Assessments $ N/A ..~.~hborho~d or Pr<,Jject N?.!!.1.e~orough of Shippensburg Map Reference 34-2415 Census Tract 0132.00 " Borrower FREEMAN William A. Current Owner Freeman William A Et AI Occuoant: f Owner I X I Tenant l 1 Vacant Properh rlohls aooralsed r xl Fee Simole r1 Leasehold I Proiect Type r PUD r ] Condominium HOA$ N/A IMo. ?,)I.~~J:!~Cf!.$J~!t._____________ Date of Sale N/A Description and $ arrount of loan chargeslconcessions to be paid btEellerNI A LenderlCllent Or. William A. Freeman Address 67 West King Street, ShippensburgLPA 17257 --.-...-', -'-',- . -. '-'-- .AJlQraiser S_tan A. Skowronek Address 124-126 North Hanover Street Carlisle PA.17013 Location GJ Urban 0 Suburban 0 Rural Predominant sinte family housing Predominant 2-4 family housing Buill up [)~J Over 75% 0 25.75% 0 Under 25% Single Family PRI E AGE 2.4 Family PRICE AGE Occupancy $ (000) (yrs) Occupancy $ (000) (yrs) Growth rate o Rapid [Xl Stable o Slow [Xl Owner 95 90 Low 25 DOwner 80 Low 25 Property values [Xl Increasing o Stable o Declining o Tenant 275 High 100 [Xl Tenant 95 300 Hiqh 100 Demand/supply o Shortage [Xl In balance o OIer wppy [Xl Vacant (O-5'h) .... Predominant [Xl Vaalnt (O-5'h) Predominant :\..: _M.,)r~~.'1~llm~_J~:L~d~:3.~s n 3-6 mos. n Over 6 rros. [] V'Ocan\ {l)ve1 50,4,,\ 110 75 n V,Kiml (oyer 5%) 140 75 Typical 2-4 family bldg. Type Detached No. stories 2 No. units 2-4 Age 75 yrs. Present land use % land use change Typical rents $ 350 10 $ 750 0creasing GD Stable 0 Declinin~ - One family 65% GD Not likely o Likely Est neighborho~d;,-;;i'-vac~~-~y -~h 0 Increasing GD Stable o Declining 2-4 family 10% o In process to: Renl con\rols [J Yes L>D N;-QLikely If yes or likely, describe Multi-family 5% -,----...., . -...- _.__._-_._._--- Commercial 20% I ._._.M_ .___ __ .__~.________.._..., __.._ _L ) Note: Race and the racial composition of the neighborhood are not appraisal factors. Neighborhood boundaries and characleristics The_subject is bounded on the north by Kenneth Ave,_~!l...!he east bv Queen St on the ~_outh.J2y Orange St and on the west by Roxbury Rd. Faclors Ihat affect the marketability of the properlies in the neighborhood (proximrly to employment and amenities. employtnent stability. appeal to markel. etc.): T~~e._.~re..!:19._a~x~r.?~J:~.Etors to affec-L~~ketability of the subject. Diverse stable erQPJ9}'ment and all supporting amenities _a_r.E:?.Y-'!~_t!1rl..ea~~ driving distance. MSA 3240 ......--------_.- -.----.-- . .,-------- . . ~ The following avalable listings represent the most current, similar, and proximate competitive properties to the subject property in the subjecl neighborhood. This analysis is intended to evaluate the inventory curren\ly on the market cofTlJeling with the subject property in the subject neighborhood and recent price and marketing time trends affecting the subject property. . (Ldlnqs outside the subiect neiahborhood are not considered aoolicable). The listing comparables can be the rental or sale comoarables if thev are currenllv for sale. nn___!!EI.'L___L. SUBJECT COMPARABLE LISTING NO.1 COMPARABLE LISTING NO.2 COMPARABLE LISTING NO.3 59.61 W. King Street 318 E. King Street 242 S. West Street 629 N. Hanover Street ~Q~~ssS~!p-pensbura Shippensbura Carlisle Carlisle Proxrfl1I\J\o_"lJ.bJe~l_ I __-' ". :: 2.0 MI ENE 21.6 MI ENE 22.5 MI ENE L~~.(i.~~(l_PL~~.~_. .._.__...-l. ...~ _'_"_~'_. N/A r XlUnf r l Furn. $ 135,900 r xl Unf. r l Furn. $ 189 000 r xl Unf. I 1 Furn. $ 230,000 :-jJllr.~~Ir:!.~~_ GB_~l~~.!.~__ 2187 2020 3146 _12?~~E.c:_e_____ U.!2~Eec_!~~ MLS/CHR MLS/CHR MLS/CHR , , # Unrts/T 01. rrTG.lBRlBA 4' 14' 4' 4.00 2' 9' 3' 3.00 3' 9' 3: 3.00 5: 17' 7' 5.00 , , , - , , Approximale year bull 1900 1900 1900 1900 Aprox. davs on market N/A 297 50 2 Comparison of listings to subject property Listing #1 has fewer units/roomslbedrooms/b_a.!b~ It has J.~~9!-:6.:..JJ.~tina #2 has fewer l!_nJlsiEQQms/bedrooms/baths and less GLA. Listing #3 has more units'lroomslbedroomslbaths, It has more GLA. Markel condilions that affect 2.4 family properties in Ihe subjecl neighborhood (including the above neighborhood indicators of growth rate, property values, demand/supply. and marketing time) and Ihe prevalence and impact in the subject market area regarding loan discounts. inlerest buydowns and concessions, and iden\\flcdtlon of trends in li~\ing prices. average days on markel and any change over the past year. etc.: research of the recent sales of 2-4 unit pr.()per!i~~_t~!~<lL~.r1~Gl.u~ar 2004 indicates an averaQ.e marketi'!9Jl':!'.e of 13~_~~nterE!_~lJ:<l!~?..il.re relatively low therefore fe_~.L9Gl.f1.~_<2.f1.~~si<?n_s~Gl.~.offered. An~!Y~l~ of the days on_the market and consideration .?f current economic trends indicates a dellland for investment properties in this price ranae I Dimensions See leaal description Topography Basicallv Level :~~_~~i~a_":i~~ ^~~::M~!~ ,"..I AMN;"';^" I\loiNh hMh........,j r....rnrnMr-i,,1 Corner Lot GD No DYes Size Tvpical for area C'L-,,""........ 0,..""..__......1_.. < . SUMMARY APPRAISAL REPORT SMALL RESIDENTIAL INCOME APPRAISAL REPORT 05-0070 ._-- General description Exterior description (Materials/cond ition) Foundation Insulation (R-valJe (knaMl) Uniblbldgs 4/1 Foundation Stone/Avg Slab None o Roof Stories 2 Exterior walls B ric k/ As bestNinvl1 A V Crawl space None [R) Ceiling · -~~_._-_...~---~.- Type (deUatl.) Detached Roof surface Fiberglass/Ava Sump Pump Non~_ [R) Walls . -_.-,-----~_.- . Design ("tyle) ~_S t () r-y_ Gutters & dwnspts. Aluminum/Ava Dampness None Obs [R) Ftoor . blctlngiproposed ~.!<istinfL Window type Wood Frame/AVa Settlement None Obs o None ur,der conslructlon No -- Stoon sasWSaeens Yes/Avg o Y e-;-l~rN~- Infestation Non~_Q!?~______ Adequacy Averaae Year BUilt 1900 Manufactured housing' Basement 100 ',. of I st floor area Energy effiCient ~ems: Effeclwe age (yrs.) 15-20 '(Complies with the HUD Manufactured Housing Baserrent fIlish Unfinished . R-Factors Unknown Averaae Condition Construction and Safety Standatds.) Units Level( s) Foyer Livino Dinino Kitchen Den Family rm. Bedrooms # Baths Laundry Other Sq. ft./unit Total III 1 1 1 1 1 1 669 --. 1 1 1 1 1 1 669 1 2 1 1 1 1 1 669 __._J~-i_.J___L-__l 1 1 1 1 1 669 i'r.pro_~.erl1e!,~~_c~l~~_ 14 Rooms; 4 Bedroorr(s) 4 Bath(s) .__?676 SQuare feet of GROSS BUILDING AREA CJROSS BUILDING AREA (GBA) IS DEFINED AS THE TOTAL FINISHED AREA (INCLUDING COMMON AREAS) OF THE . IMPRO'JEMENTS BASED UPON EXTERIOR MEASUREMENTS. -- Surfaces (Materlals/condi\lon) Heating Kitchen equip. (# I unit-cond.) Attic Car Storage No. carso- ~ Floors Carpet/vinyl Type HWBB Refrigerator 41Ava o None Garage . [R) Stairs Carport 0 ~ Walls Drvwall Fuel Oil RangelCNer1 4/AvQ. · Trim/finish Wood Condition Averaae Disposal o Drop stair Attached 0 Both floor Vinyl Dishwasher o Scutlle Detached 0 Bath wainscot Drvwall/CerT Cooling Fan/hood o Floor Adequate 0 . Doors Wood Cenlral Yes Compactor o Heated Inadequate 0 /l.verage Condition Other None ~ o Finished Offstreet [R) Condition Averaae Microwave o Unfinished None 0 Fireplace(s} None # Intercom Condition of the improvements, repairs needed, quality of construction, additional features. modernization, etc.: Improvements are in averaae condition with no J)hysical or functional inadequacies noted. --- DepreCiation (phYSical. functional. and external inadequacies, etc.): There are no physical, functional, or external inadeauacies apparent. 0..--- ~ -Adverse enviro-;menlal co~ditions (such as, but not limited to, ~azardous wasles, ~o.xic subslances, elc.) p.resenl in the improvements, on the site, or in . the Immediate VICinity of the subject property: No adverse environmental condttlons are apparentldlsclosed. . c;; --. ~ . .. . VALUATION ANALYSIS ESTIMATED SITE VALUE . ., ..' ... = $ Commenls on Cost Approach (such as, source of cost estimate, site value, ESTIMATED REPRODUCTION COST-NEW OF IMPROVEMENTS: square fool calculation and. for HUD and VA, the estimated remaining Sq Ft. @ $ =$ economic life of the property): Cost Aooroach deemed a poor -.-----.------ Sq Ft. @ $ =$ -- indicator of value due to a~! the imorovements. Estimated . .-----"....- ~m~injnrt ot"'r'\nr'\n-.i,... life.. iL'" ":In ":It: .............- C,., CI Iri\ t = ( \ , SUMMARY APPRAISAL REPORT SMALL RESIDENTIAL INCOME APPRAISAL REPORT 05-0070 ^I leJst three rentJI comparables should be reported and analyzed in this secllon. The renlal comparables ~hould represent the mosl current rental information on poperhes as similar and proximate \0 the subject properly as possible. (This comparison is based on current rental duta. therefore. the renlal comparables lypically :He nolthe Silme compurJbles IJsed in the sJles comparison Jnalysis.) The JpprJisal report should assure the reader Ihalthe units and properties selec\ed as cornparables are comp.Hilble 10 Ihe subject properly (both the unlls and the overall properly) and accurately represent the ren!.11 mJrkel for Ihe subjeci property (unless otherNlse ~.Ialed Within the reporl). ____!TJ:~_.___L__.__ SUBJECT COMPARABLE RENTAL NO. 1 C~~PARABLE RENTAL NO 2 __ COMPARABLE RENTAL NO.3 'd 59-61 W. King Street 107 N. Earl Street 216.220 E. Orange Street 15-21 Kenneth Avenue l-\d~~Shippensbur9. Shippensbura S~nsbura ShiPEensburg p 't I b ti 1.6 MI NE 1.6 MI ENE 2.2 MI NE rOXlml y 0 su Jec . ..';. ...... ,,>,. ....,. I~.asedateS(rravailable) Annual Leases Month to Month Month to Month Month to Month Rent survev dale 02/17/2005 01/11/2005 11/29/2002 11/29/2002 Inspection Dala source Owner Multi-list Multi-list Multi-List/Courthouse R I . None None None None en concessions No. Units4 No. Voc. 0 No. Un/s4 No. Vae. 0 Yr. Ell: 1900 No. Unis4 No. Vac 1 Yr. Bl.: 1900 No. Unis4 No. Vac. 1 Yr. El: 1900 DesCrtptlon of Yr. Bit.: 1900 property - units, 2 ~/Detached/Avg 2 StvlDetached/Ava 2 StylDetached/Avg 2 StylDetached/Avg ~~~Ig~~~t~c~:~ JPt. Buildina Apt. Buildina Apt. Blda. . ___ JI-Et. Bldg. and'conditlons' Averaoe Condition Averaae Condition Averaae condition Average condition Rm. Count Size Rm. Count Size Total Rm. Count Size Tolal Rm. Count Size Total ~OL Br Ba Sq Ft. - To\--&--Ei;- Sa F!. MontHvRent -T~iTB; ---8~ SO'.F!' MontHvRent' T~I-Ei~ ---B;-- Sa FI IvIootHvRent IndiVidual ~~ 1 1 669 3 1 1 493 300 sl 3 1 121~. 4S0 4 2 2 900 SOO UI1~t .. L_~ :1 1 669 4 2 1 616 SQ.Q...I--liLL~111?9 ______~ 4 2 1 900 475 breakdcJwn .____t~~1tH__~1=~~{=_~~~1~__~_ :~~~- _~i-~=~-~lJt--I~~_~=~3~{---1 ~ ~ ~~~ :~~ LIt'{a.~~r/Sewer/Tras h W ater/Sewer/Tras h Water/Sewer/Tras h Water/Sewer/Trash Utilities, 19i1 Heat lurmture, and amenities included in rent i_ull Bsmt/Unf Full BsmtlUnf Full Bsmt/Unf Full Bsmt/Unf Functionaluttlity, J:jWBB/CA EBB/None FHA/None FHA/None . basement Porch Porches Porch Porch . , '. ~_._-~. heating/cooling, Off Street Parkinq Off Street PrkinQ Off Street Parkina Off Street Parking project amenities, etc ..----..- Analysis of rental data and support for estimated market rents for the individual subject units (including the adjustments used. the adequacy of comparables, rental concessions, etc.) " B.ental #1 has more rooms/bedrooms. It has more ammenities such as porches. It has less GLA and does not have central air ~c__~ditionin_g. Renta.!..#2 has more rooms/bedrooms/baths. It has larger GLA and ammenities such as porches. It does not have _(;_entral air conditionina. Rental #3 has more rooms/bedrooms/baths. It has more GLA. It does not have central air . conditioning. --,-.-------.-, -----. SUbject's rent schedule The rent schedule reconciles the applicable indicated monthly market renls to the appropriate subject unit, and provides the estimated rents (or Ihe subject property. The appraiser must review the renl characteristics of the comparable sales to determine whether eslimated renls should reflect actual or market renls. For example, if oclUol rents were available on the sales eomparables and used to derive the gross rent mulliplier (GRM). actual renls for the subject should be used. If market renls were used to construcllhe eomparables' rents and derive the GRM. market renls should be used. The \0\01 gross estimated renl must represent renl charoclerislics consistent with Ihe sales comparable dala used to derive the GRM. The total gross eslimated renl is not adjusted for vocancy. -_.__._-~- LEASES ACTUAL RENTS ESTIMATED RENTS I Lease Date No Per Unit Total Per Unit Total Unit c . I Unit' . , -._._.--L-~~ End V.com Unfurnished Furnished Rents Unfurnished Furnished Rents _. ___1__jJuIY I July 0 $ 423.00 $ $ 423.00 $ 4S0.00 $ $ 450.00 -+-K~~~ I J~,~,~ ~ ~~~.~~ ~::.~~ ~:~.~~ 450.00 \. SUMMARY APPRAISAL REPORT SMALL RESIDENTIAL INCOME APPRAISAL REPORT 05-0070 ~'., J'.J.;l:~;';IIt:,-i :-"l~ ~t'(;j1t:IJ lhref:- f('(t.,n' :,011e-5 01 proper lies rnosl simHM and pr,)Xtm,lle 10 Ihe Sub)':!Cl f1rop~rl'" and Ms deS;::fltl~;j and ,111c11)~ta 1~,He In Ihls .11'..\I,!.IS II ttll~ri! IS a a\;n.l1tCa('J I{Mi~~I~ro.b~\wter.\hi ,.,' i..;~(r,;JaJ;\tl~ ~rIJPt:r'IH )j.l' Mlill.,SIS Incl\J::!eS a dollar aUjU5lnlent (~ntCllng lhl! mar~el rei\ctlon r(l111O~t' Ht!ms (i( .In ~lplan"llur. 5CPPt)r\I!',j D', II),:: nl<)r~c! ,~,ll,1 U ,1 sIgrurlClIfil1lem In !ne cC'n.,parJ01~ I, ." ~~J;;t:lIl){ iu :Jr mult:- ta'I(JF;lI,;t> In.ln. lrle subject prone-ny, a minus (.) ildjlJ5\menl is m;Hh~. nllJS fedw:tnq th@. (\lj~lJS((.:j sules poc.:- cl \li~ t\\r';1?<Hi\tl-c fI"T'i"rl)' )\ ~ s11mfll::i1rtlll~m l:'llM c(lmpar.lole "roD~rlV <~clll~: (;, .jr !~r,~ 1,1'{0UllJl~ (t~\H, lr;~ sub eel proper! '. a Olus (+) adiustment Is mitde,thus Incre.l5lno tile ad1us:ed [lrlGe of ttle CCmrHf,H.tt' rr~'ref!" Ifl1 Sales Prico. Gross Monthlv Rent 1 _iT~M__... _ _J_____.?\!.El~~_.. _______ COMt'.!IRABL!=.~___ _______f()~ARA~.h.E._N_Qcl...___1 COMPARABLE NO.3 59-61 W. King Street 107 N. Earl Street 222 N. Prince Street 257-259 Walnut Street lIddre?2~.h_lEE~!:l~.E~.9___. Shippensburq Shippensbur9- ShiooensburQ _~!oxlmilytosubiecl 1.6 MI NE 1.9 MI NE 1.9 MI ENE .~a~~ice $ N/A X Unf. Futn. $ 159,900 XIUnf. Furn. $ 151 000 x Unf. Furn. $ 170000 _Sales orice oer GBA $ 63.53 $ 68.27 $ 49.92 $ 39.79 Groos monthlv rent $ 1 850 $ 1 325 $ 1,500 $ 2 065 ~9;oss rro rent rT1111(1) 91.89 120.68 100.67 82.32 }aleuriceyer unil $ 42,500 $ 39 975 $ 50.333 $ 42500 S~I~~P."C.e.fl~L02~_I-L-__ 12 143 $ 13 325 $ 10 786 $ 12 143 D~I~ ~ndior Inspection MLS/Courthouse Records MLS/Courthouse Records MLS/Courthouse Records Veflficalion Source'O Owner _. _~1.~:G..\1.~__ DESCRIPTION DESCRIPTION I t(}Hd)\JSlmenl DESCRIPTION . (.,$ Adluslment DESCRIPTION "(.)HdJuslmenl S~le:; or financing....' None, Conv: Unknown I None, Conv : .::;:':,,::::',<,>::::":':.',:.:,:>>: l I concessions . ... DOM 45 : Unknown, DOM 104 : _[)!lle of sale/lime< .. 04/08/2003 I 4797 08/01/2001 I 14000 10/29/2004 I Location Urban Urban : Urban : Urban : Leasehold/Fee Simole Fee Simole Fee Simole: Fee Simple: Fee Simple : SlIe .18 Ac/Ava .19 Ac/Ava I .36 Ac/AvQ I .18 AclAva ' View Urban Urban : Urban : Urban : Des'g'!.~_n.9~~'--_ 2Stv/4Unit/Av~ 2Stv/4Unit/Ava: 2Sty/3Unit/Av~ ' 2Sty/4Unit/Avq : . :Jua.II\y_'2! cons~ction Averaqe Averaae Average: Averaae ' ~ A.9":___ 105 Years 50 Yrs ' 84 Yrs 75 Yrs : . C.?0d,t'o_n_ Aver~ Avera~e : Averaqe I Averaae " ~ (~ross Building Are~ 2676 Sq ft. 2342 S .ft. I 3.340 3,025 Sft.: -3490 4272 S .ft. I -15.960 I ,.~,,---.._,._-_._.."-' .------ 10 r,)) Rm count No NJ. Rm, counl No ; N) Rm count N ' /'.b Rm count N : of . c( .1 d .01 ci 0.1 uMs Tal Br 8a VaC. units Tot Br Ba vac: units Tot Br Ba vac: unIts TOI Br Ba Vac.; · Unit 1 3 1 1 0 1 3 1 1 0: 1 4 2 1 0' 1 4 2 1 0' breakdown 1 3 1 1 0 1 3 2 1 0: 1 4 2 1 0: 1 3 1 1 0: 1 4 1 1 0 1 3 1 10: 1 6 4 10: 1 4 2 10: 1 4 1 1 0 1 3 2 1 0 I 5 000 1 3 1 1 0' B~sement descriJllion Full Bsmt/Unfin Full Bsmt/Unf : Full Bsmt/Unfin : Full Bsmt/Unfin : -.- - -------- -~r------ Fun_C!.190_al.L!.l!~lJ'......____---1-AY_~r._aqe Aver.<!ae : Averaqe Averaae, Hea\lfi9IC~O!I!'...9......___-1.1jYVB~IC~_~1['Jone 10,000 HWSteamlNone' 10,000 HW/None : 10000 Parklfi9onioH site _~J Str.eet Off Street 3 Car Garaae -6000 2 Car Gara~e : -4000 Project amenities and Porch None I 1,000 Porches/Deck: -1,000 Porches : -1,000 ~~Iicable\ : : : None : : : :~j~\ Adi (\olal\ .....-.. .....,> ./'>.;c Xal. $ 19137 [xl .[-1 " $ 18 510 fl. fxl: $ 10,960 Ad! sales price or-2:" ...... Gm.. 26;2% G-o,":18.2% c.()ITlf'.!!!~IJ.I.~_____) d ~$ 179037 NeI12.3% ~ 169,510 Nel "6.4% $ 159040 Comments on Sales Comparison (including reconciliation of all indicators of value as to consistency and relative strength and evaluation of the typical investor'slpurchaser's motiv~IJon in Ihat market) Estimated range of value is $159,000 to $179,000. Adjusted price/unit of the com parables is $44759/$56503 .<If}d $39,760 respectively. These are the best sales com parables known to be available. Time adjustments are made at 4%/annum throuah 2004. ITEM SUBJECT COMPARABLE NO.1 COMPARABLE NO.2 COMPARABLE NO.3 Date, Price and Data 05/13/1975 Source for prior sales $1.00 None None None _\Yrthin vear of aOPfaisal Courthouse Courthouse Courthouse Courthouse Analy'Ois of any current agreement of sale, option, or listing of the subject property and analysis of any prior sales of subject and cofllJarables wrthin one year of the dale of appraisal: Jig...l::Jrior transfers within the Dast 36 months. ComDarables have not transferred within the oast 12 months. I Total gross monthly estimated renl $ 1 ,850 x gross rent rooltiplier (GRM) 93.00 = $ __ 172,050 INDICATED VALUE BY INCOME APPROACH Comments on income approach (including expense ralios, rt available, and reconciliation of the GRM) The comparable GRM has a mean of 101 and a standard deviation of 19. Based UDon this analvsis we reconcile the GRM at 93. I INDICATED VALUE BY SALES COMPARISON APPROACH. . . . $ 170.000 INDICATED VALUE BY INCOME APPROACH ..... ... . . .... . . . . $ 172.050 INDICATED VALUE BY COST APPROACH $ N/A ThiS appraisal is made 0 'a~ is' 0 subject t~ the ~e~a.:s, 'alt~~t~n~, ~~s~e~ti.;ns 0; ~nci~~n~ I~ted ~~I~W . 0 ~u~je'ct 't~ c~m~l~ti~n 'p~r ~Ia~s and specifications. COlT\'T'en\s and Condrtionsof Appral'Oal: The propertY_ba~been appraIsed In current conditIon ThiS appraisal IS for clIent onlv. ~ , Operating Income Statement SUMMARY APPRAISAL REPORT One- to Four-Family Investment Properly and Two- to Four-Family Owner-Occupied Property 05-0070 Property Address 59.61 W. King Street Shippensburg PA 17257-1224 Street City State Zip Code General Instructions: This form is to be prepared jointly by the loan applicant, the appraiser, and the lender's underwriter, The applicant must complete the following schedule indicating each unit's rental status, lease expiration date, current rent, market rent, and the responsibility for utility expenses. Rental figures must be based on the rent for an "unfurnished" unit. Currently Expiration Current Rent Market Rent Paid Paid Rented Date Per Month Per Month Utility Expense By Owner By Tenant Unit No.1 Yes ~ No _July $ 423 $ 450 Electricity .,.0 00 Unit No.2 Yes ~ No - June $ 433 $ 450 Gas,........... ,0 0 Unit NO.3 Yes x No July $ 433 $ 475 Fuel Oil ..........00 0 - Fuel (Other) . . . . . . .0 0 Unit No.4 Yes ~ No December $ 450 $ 475 - Water/Sewer. . . . . . .00 0 Total $ 1,739 $ 1,850 Trash Removal . . . . [Xl n The applicant should complete all of the income and expense projections and for existing properties provide actual year-end operating statements for the past two years (for new properties the applicant's projected income and expenses must be provided). This Operating Income Statement and previous operating statements the applicant provides must then be sent to the appraiser for review, com- ment, andlor adjustments next to the applicant's figures (e.g., ApplicanllAppraiser 2881300), If the appraiser is retained to complete the form instead of the applicant, the lender must provide to the appraiser the aforementioned operating statements, mortgage insur- ance premium, HOA dues, leasehold payments, subordinate financing, and/or any other relevant information as to the income and expenses of the subject property received from the applicant to substantiate the projections. The underwriter should carefully review the applicant's/appraiser's projections and the appraiser's comments concerning those projections. The underwriter should make any final adjustments that are necessary to more accurately reflect any income or expense items that appear unreasonable for the market. (Real eslale taxes and insurance on these types of properties are included in PIT! and not calculated as an annual expense item.) Income should be based on current rents, but should not exceed market rents. When there are no current rents because the property is proposed, new, or currently vacant, market rents should be used. Annual Income and Expense Projection for Next 12 months Adjustments by I n com e (Do not include income for owner-occupied uMs) By Applicant/Appraiser Lender's Underwriter Gross Annual Rental (from un/I(s) to be rented) ...................... $ 20,868 $ Other Income (include sources) . , . , , . . . . . . . . . . . . . . . . . . . . , . . . . . . , + + Total. . . . . . . . . , . , . . . . . . , . . . . . . . . . . . . . . . . . . . , . . . , , . . . . . , $ 20,868 $ Less Vacancy/Rent loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1043.40( 5%) ( %) Effective Gross Income. . . . . . . . . . . . . . . . . . , . . . , , . . , . . . . . . . . . . $ 19,825 $ Expenses (Do not include expenses for owner-occupied un/Is) Electricity. . ,...... . . , . . . ..,....., . Gas ......... , ..,.",.....,.,..,..,.,.'. , Fuel Oil .....'..',..,..,'..........,.,.."...,. . 2,880 Fuel . . . . . . . . , . . . . . . . . , . . . . . . . , .(Type- ) Water/Sewer Trash. . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . 1,146 Trash Removal '.............."....,...........,...., . Pest Control ..........................",.',........"... Other Taxes or Licenses. . . . . . . . . . , . . . . . . . , . , , . . . , , . . . . . . . , . , Casual labor ....',.,.....................,...,...,...." . This includes the costs for public area cleaning, snow removal, etc., even though the applicant may not elect to contract for such services, Interior Paint/Decorating . . , . , . . . . . , . . , . . . , . . . . . . . . . . . . . . . . . . This includes the costs of contract labor and materials that are required to maintain the interiors of the living units. General Repairs/Maintenance . . . . . . . , . , . . . . . . . . . . , . . . , . . . . , . . . 1,043 This includes the costs of contract labor and materials that are required to maintain the public corridors, stairways, roofs, mechanical systems, grounds, etc, Management Expenses ,...........,........",.'..,.'...,.. These are the customary expenses that a professional manage- ment company would charge to manage the property. Supplies . . . . . . . . . . . , . . . .,."".......,......... . This includes the costs of items like light bulbs, janitorial - - - - I ~ _ _ _ I. _ , , SUMMARY APPRAISAL REPORT 05-0070 Replacement Reserve Schedule Adequate replacement reserves must be calculate regardless of whether actual reserves are provided for on the owner's operating statements or are customary in the local market. This represents the total average yearly reserves. Generally, all equipment and com- ponents that have a remaining life of more than one year-such as refrigerators, stoves, clothes washers/dryers, trash compactors, fUrnaces, roofs, and carpeting, etc,-should be expensed on a replacement cost basis. Equipment Replacement Remaining By Applicant! lender Cost Life Appraiser Adjustments Stoves/Ranges . . . . . @$ 350.00 ea,+ ~ Yrs. x Units =$ 0.00 $ Refrigerators. . . .@$ 300.00 ea.+ --...1l Yrs. x Units =$ 0.00 $ Dishwashers ... @$ ea.+ _ Yrs. x Units =$ $ Ale Units ..,... , " @$ ea.+ _ Yrs, X Units =$ $ C. Washer/Dryers .... @$ ea.+ _ Yrs. x Units =$ $ HW Heaters .....@$ 175.00 ea.+ -.-1Q. Yrs. x Units =$ 0.00 $ Furnace(s). , . . . . . . . . @$ 4,500.00 ea,+ -1Q Yrs. x Units =$ 0.00 $ (Other) . . . . . . , @$ ea.+ _ Yrs. x Units =$ $ Roof ...,....@$ 7,500.00 +~ Yrs. x One Bldg, = $ 500.00 $ Carpeting (Wall to Wall) Remaining Life (Units) _ Total Sq, Yds. @$ Per Sq. Yd. + _ Yrs. = $ $ (Public Areas) _ Total Sq. Yds. @$ Per Sq. Yd. + _ Yrs. = $ $ Total Replacement Reserves. (Enter on Pg. 1) $ 500.00 $ Operating Income Reconciliation $ ____.,_ 19,825.00 - $ 5,569.00 =$ 14,256.00 + 12= $ 1,188.00 Effective gross Income Total Operating Expenses Operating Income Monthly Operating Income $ 1,188.00 - $ =$ 1,188.00 Monthly Operating Income Monthly Housing Expenses Net Cash Flow (Note: Monthly Housing Expense includes principal and interest on the mortgage, hazard insurance premiums, real estate taxes, mort- gage insurance premiums, HOA dues, leasehold payments, and subordinate financing payments.) Underwriter's instructions for 2-4 Family Owner-Occupied Properties . If Monthly Operating Income is a positive number, enter as "Net Rental Income" in the "Gross Monthly Income" section of Freddie Mac Form 65/Fannie Mae Form 1003. If Monthly Operating Income is a negative number, it must be included as a liability for qualification purposes. . The borrower's monthly housing expense-to-income ratio must be calculated by comparing the total Monthly Housing Expense for the subject property to the borrower's stable monthly income. Underwriter's instructions for 1-4 Family Investment Properties . If Net Cash Flow is a positive number, enter as "Net Rental Income" in the "Gross Monthly Income" section of Freddie Mac Form 65/Fannie Mae Form 1003. If Net Cash Flow is a negative number, it must be included as a liability for qualification purposes. . The borrower's monthly housing expense-lo-income ratio musl be calculated by comparing the total monthly housing expense for lhe borrower's primary residence to the borrower's stable monthly income. Appraiser's Comments (including sources for data and rationale for the projections) Forecasted rents and expenses appear fair for the local market conditions. { l , . FLOORPLAN t.)()~~()I:'!~r-I:B.g}.0AN.'Y!illiam A. _______.J~~_.~o.~___.9..?_:Q070 . ~~rqR~~t}'_M_.9~ess ~:~LW. King Street _._________9J!~E!. N.Q.~______ c:\lL~~J EP~Il~_~\l!9._____.__ ________u._______~ate: p~____._._____ Zip: 17257-1224 Lender Dr. William A. Freeman --...... _._-.,- ._._~. . ... - .-- --~ Strg Strge .c .c ro ro (J) (J) Bath Balh Bedroom Bedroom E E 0 0 0 '- 0 'D '- Q) 'D Q) Q) ---f\ Q) Kitchen Kitchen Den Den ---f\ OJ OJ OJ OJ C C C c .;; > .;; > ~ ~ ~ ~ --I ;,;- /~ % .-; I Sketch by Apex IV Windows 1M AREA CALCULATIONS SUMMARY LIVING AREA BREAKDOWN Co~~esc!lption Size Totals Breakdown Subtotals :':.1 GLAl Unit #1 First Floor 669.00 Unit #1 First Floor Unit #2 Fiist Floor 669.00 1338.00 3.0 x 4.0 12.00 ::' GLA2 Unit *3 Second Floor 669.00 0,5 x 3.0 x 3.0 4.50 :: Unit #2 Second Floor 669.00 1338.00 0.5 x 3.0 x 3.0 4.50 :. PIP Porch 70.00 70.00 11.5 x 39.0 448.50 : OTH Hallway 180.00 4.5 x 11.0 49.50 J Hallway 180.00 360.00 10.0 x 15.0 15o,00i:. Unit 12 Fiist Floor .. .. 3,0 x 4.0 12.00 'j:' ',; 0,5 X 3.0 x 3.0 4.50 ::: 0.5 x 3.0 x 3.0 4.50 ::: 11.5 x 39.0 448,50 m 5.5 x 15.0 82.50 :' 4.5 x 26.0 117 . OOi .. Unit 13 Second Floor 3.0 x 4.0 12.00 ",: , . DIMENSION LIST ADDENDUM B()r.rQ!'Ier~EB.gEM.AN,..w.illiam A. File No.: 0.5-0.0.70 ProQ.~JLM9ress~~.61 W. King Street Case No.: c;ilLSJli PP-.!l n s b !!.!9._.______ -.- State: PA Zip: 11251 lender: Or. William A. Freeman GROSS BUILDING AREA (GBA) 2,676 GROSS LIVING AREA (GLA) 2,676 Area(s) Area % of GBA Living 2,676 100..00 Level 1 1,338 50..0.0 Level 2 1,338 50..00 Level 3 0 0..00 Other 430 16.07 Basement 0 ~ Garage 0 ~ Area Measurements Area Type Measurements Factor Total Level 1 Level2 Level3 Other 8smt. Garage -. __4,_QQ x ----.J-LQ.Q. x _1.00 :: 12.00. 00 0 0 0 0 0 _~Q.Q x ~Q.Q x _D."M :: 4.50. 00 0 0 0 0 0 3.00 x 3.00. x 0.,50:: 4.50 00 0 0 0 0 0 __~~...J!.Q x ...-.1.LSJ! x 1.00.:: 448.50 00 0 0 0 0 0 --11"Q,Q x 4.50 x 1.0.0" 49.50 00 0 0 0 0 0 15.0.0 x 10..0.0. x J,.QQ :: 150..0.0 ~ 0 0 0 0 8 __x x _:: 0 0 0 8 4.0.0. x 3.00. x 1.00.:: 12.00 00 0 0 0 0 3.0.0. x 3.00 x 0.50" 4.50 00 0 0 0 0 0 3.00 x 3.00 x 0.50:: 4.50 00 0 0 0 0 0 39.0.0 x 11.50. x 1.00 :: 448.50 00 0 0 0 0 0 --15.0.0 x 5.50 x --1.0.0. :: 82.50 00 0 0 0 0 0 ~.DD x 4.50 x 1.0.0.:: 117.00 00 0 0 0 0 0 4.00 x 3.00 x J,.QQ " 12,00 0 00 0 0 0 0 3,00. x 3.00 x ~ :: 4.50 0 00 0 0 0 8 3.0.0 x 3.0Q x ~ " 4.50 0 00 0 0 0 ~9.0.Q x 11 . 50 x ..J.....QQ " 448,50. 0 00 0 0 0 0 ...-.1.LOJl x ---..4~.Q x ..J.....QQ :: 49.50. 0 00 0 0 0 0 _LS.,-O_o. x ...---iQ...QQ x --1,..QQ :: ----1~Jl 0 00 0 B 0 0 4.0.0 x 3.00 x ..J.....QQ " 12,00 0 00 0 0 0 3.00 x 3.00. )( ~ " 4.50 0 00 0 0 0 0 3.0.0 x 3.00 x ~ :: 4.50 0 00 0 0 0 0 39.0.0. x 11 , 50 x ..J.....QQ " 448.50. 0 00 0 0 0 0 _tMO x 5.50 x ...i.QQ :: 82.50 0 00 0 0 0 0 26.00 x 4. sa x J,.QQ :: 117.00 0 00 0 0 0 0 x x _:: 0 0 0 0 0 0 x x _" 0 0 0 0 0 0 x x _:: 0 0 0 0 0 0 x x _:: 0 0 0 0 0 0 x x _:: 0 0 0 0 0 0 x x :: 0 0 0 0 0 ~ x x _:: 0 0 0 0 0 x x :: 0 0 0 0 0 x x _" 0 0 0 0 0 0 x x _:: 0 0 0 0 0 0 x x _:: 0 0 0 0 0 0 x x _:: 0 0 0 0 0 0 x x _:: 0 0 0 8 0 0 x x _:: 0 0 0 0 0 x x = 0 0 0 0 0 0 v :: n n n n n (I v - ~U~.JI:\'; I t"KUt"I:K I Y t"HU I U AUUt:NUUM ..Borrower: FREEMAN, William A. File No.: 05-0070 Property Address: 59-61 W. King Street Case No.: City: Shippensburg State: PA Zip: 17257-1224 Lender: Dr. William A. Freeman FRONT VIEW OF SUBJECT PROPERTY Appraised Date: July 2, 2004 REAR VIEW OF SUBJECT PROPERTY STREET SCENE l~ ~ \;UMr'AKADLt: r'KUI"'t:K' T I"'nv I v ,",UUC.'tUU.f. Borrower: FREEMAN, William A. File No,: 05-0070 Property Address: 59-61 W. King Street Case No,: City: Shippensburg State: PA Zip: 17257-1224 Lender: Dr. William A. Freeman COMPARABLE SALE #1 107 N. Earl Street Shippensburg Sale Date: 04/08/2003 Sale Price: $ 159,900 ~-- '?~ -- ,':' ~;. >.. ':/rp.lf\ ,,,",. ~ ~'> l}'~:'" . ,f.~ ' " COMPARABLE SALE #2 ~l>~ .:~(t.~~,~ ~.: : ~;" .. 222 N. Prince Street Shippensburg Sale Date: 08101/2001 Sale price: $ 151,000 ~~.~ COMPARABLE SALE #3 257-259 Walnut Street Shippensburg Sale Date: 10/29/2004 Sale Price: $ 170,000 .~ . LOCATION MAP ~9rrower: J-'3J;EM~~L William A. File No,: 05-0070 .E.!:~Qy_Address: 59-61 W. King Street Case No,: gity: ShiQ~ensburg State: PA Zip: 17257-1224 Lender: Dr. William A. Freeman .~/.r-::>----~~~/--// ,._/>~/ "J ? ~ I I , ,. "I) . ~ \'Iy~~\l. ~ ~ " 0<:> ~<v q,O (j ~<v <J." ~'\ I \ & .......-.. -- . File.JJC?~_ 05-0070 ---,. CaseJ:l.o.:. Zip: 1725'7-1224 ...' -. . . EMAN Willia.m A. --~- -"State: PA .~." ..--.-' . .'_. ~'-- .-,. ..'-" Borrow~rJ::13E '-"61',ji King Street --'~'-'---- --'-"-~'._-- "..----. .-- Add 55' 59 . -~~~ ~ ..- PrQflertY...re ..' _:.. .-- - r:ity ShipPc.!,!s.l?l!r9., ,.___.. ,~~l '... ._-'~. William A, Freeman Lender. Dr, <;JO\cr<. . . \ f ~ Flood Information .- . .. - ~-_-I -, . . File No, 05-0070 ....---- ._~,... ...-- -._--. . -.._- _ _,_u'" _. n.__"_ .'-' ********* QUALIFICATIONS ********* I The following checked Items are SPECIFIC SPECIAL CONDITIONS that were Identified by this appraiser during the inspection of the subject property, the com parables sales, and their neighborhoods and locations. Unless otherwise noted, the conditions that apply to the subject property or the comparable sales used DO NOT AFFECT THE MARKET VALUE OR THE FUTURE MARKETABILITY OF THE SUBJECT PROPERTY BEING APPRAISED, This is not a home inspection service, This is an appraisal to estimate market value. ! _1. The subject Is located in a rural area and Is less than 25% built-up. I _x_2. Commercial/Industrial uses are located within the subject's neighborhood. These uses are typical of similar neighborhoods. I \ _3, Vacant and undeveloped land uses are located within the subject's neighborhood, These uses are typical for i the area, _x_ 4. The predominant value In the neighborhood is less than that of the market value of the subject property. This is due to the very wide range of value of properties in the area and superior quality of the subject property. _x_5. The subject property is located In a F.E.M.A. Identified Flood Zone. Flood Insurance coverage Is required and suggested. _6. Dampness is noted in the basement of the subject. Standing or running water was not present on basement floor. This condition is considered typical in dwellings of this style, _7. The subject property is serviced by private well and/or septic systems which Is common for the area. _x_B. The subject Is older than flve(5) years. All mechanical systems including the heating, electrical and plumbing systems appear upon a visual exterior Inspection to be in working order. No warranties are Implied in this statement. _9. Repair items were noted in the comments section of the report. These comments on repair Items are for descriptive purposes only and are not required repairs. The items listed are cosmetic in nature. _10. The basement floor is a dirt floor. This condition Is common and typical for the area. and does not pose a health or safety hazard. _11. The subject property does contain functional obsolescence as noted In the report. This condition Is considered typical and common for the area and this style dwelling. I _12. The land value exceeds 30% of total value due to the high demand for vacant land In this neighborhood. This condition is considered common and typical for the neighborhood. i _13. The land value exceeds 30% of total value. This is due to the large size of the site. This condition is ! considered to be typical and common. I _14. Individual adjustments were required that exceed 15%. These adjustments were required due to lack of more similar com parables on that individual rating. All com parables used are the best available, I _x_15. Total adjustments exceed 25%. This is due to the lack of comparable sales that were more similar in the i i subject's market area. All com parables used are the best available. I _x_16. One or more comparable sales are older than six(6) months. Although there are comparable properties In the subject's area, none have sold recently; therefore, sales in excess of six(6) months have to be used. All comparables used are the best available. I , I I _x_17. One or more com parables used were in excess of one (1) mile from the subject property. Although there are ! comparable properties in the immediate area, none have sold recently. Therefore, it was necessary to use comparable sales outside of the immediate area, All comparables used are located in similar neighborhoods and within the same marketing area. All com parables used are the best available. i ~Q Thoro. ,..I.......+..il"''!lll cHI~+.orn \AJ~C nnt ~nnnA~tAn nurinn In1l;.n,:u~tinn I . . File No, 05-0070 .__ __ n_.__ _ ********* QUALIFICATIONS ********* _24. The subject property is located on a private road. _25. Wood infestation inspection is suggested. _x_26. Last recorded deed transfer: Date_05/13f1975_. Consideration: $_1.00 _27. Proposed constructionfrenovation In accordance to plans and specifIcations to be completed in a workman-like manner. _28. Seller is paying part or all of closing costs. _x_29. All comparable sales are verified closed sales. _x_30. There are no special conditions or other requirements that would affect market value or future marketability in the Appraisal Report. CHECKED ITEMS ARE SPECIFIC SPECIAL CONDITIONS THAT WERE IDENTIFIED BY THIS APPRAISER DURING INSPECTION. I i ! ! \ I ~ . File No, 05-0070 DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus, Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment IS made in terms of cash in U,S, dollars or in terms of financial arrangements comparable thereto: and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions' granted by anyone associated with the sale, . Adjustments to the com parables must be made for special or creative financing or sales concessions, No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions, Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction, Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the Appraiser's judgment. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1, The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title, The property is appraised on the basis of it being under responsible ownership, 2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of its size, 3, The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area, Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4, The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand, 5, The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value, These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are So used, 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc, ) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc. ) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property, The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment of the property. 7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties, 8, The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice, 9. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, ~ -, .. File No, 05-0070 APPRAISERS CERTIFICATION: The Appraiser certifies and agrees that: 1, I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation, If a significant item in a comparable property is superior to , or more favorable than, the subject property, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject property, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2, I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct, 3, I stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent and limiting conditions specified in this form. 4, I have no present or prospective interest in the property that is the subject to this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction, I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property, 5, I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property, 6. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, the amount of the value estimate, the attainment of a specific result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal. I did not base the appraisal report on a requested minimum valuation, a specific valuation, or the need to approve a specific mortgage loan, 7, I performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of the effective date of this appraisal, with the exception of the departure provision of those Standards, which does not apply, I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconciliation section, 8, I have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them, I have also commented about the effect of the adverse conditions on the marketability of the subject property, 9, I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on Significant professional assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to perform the tasks, I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that: I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. ADDRESS OF PROPERTY APPRAISED: 59.61 W. King Street, Shlppensburg, PA 17257-1224 - 1!- STEVEN IN. BARRETT REAL ESTATE AND APpRAISAL SERVICES 124 N. w>NOVER STREET. CARLISLE. P A 11013 (1111 243-6646 file No, 05..0011 APPRAISAL Of LOCATED AT: 65 w. King street Shippensburg, PA 11251-1224 fOR: Dr. Wimam A. Freeman 61 West King street Shippensbur9, PA 11251 BORROWER: FREEMAN, wnnam A. AS Of: .. '" STEVEN W. BARRETT REAL ESTATE AND APPRAISAL SERVICES 124 N. HANOVER STREET, CARLISLE, PA 17013 (717) 243-6646 File No, 05-0071 03/25/2005 Dr. William A. Freeman 67 West King Street Shippensburg, PA 17257 File Number: 05-0071 In accordance with your request, I have personally inspected and appraised the real property at: 65 W. King Street Shippensburg, PA 17257-1224 The purpose of this appraisal is to estimate the market value of the subject property, as improved, The property rights appraised are the fee simple interest in the site and improvements, In my opinion, the estimated market value of the property as of July 2, 2004 is: $125,000 One Hundred Twenty-Five Thousand Dollars The attached report contains the description, analysis and supportive data for the conclusions, final estimate of value, descriptive photographs, limiting conditions and appropriate certifications, Respectfully submitted, G~"'-Q . ~~(A)r-~\~ Stan A. Skowronek Certified Residential Appraiser ~ 'l SUMMARY APPRAISAL REPORT SMALL RESIDENTIAL INCOME APPRAISAL REPORT 05-0071 Prooertv Address 65 W. Kinq Street City Shippensburq state P A Zio Code 17257 -1224 Leaal Descriotion Deed Book E-27 paqe 309 County Cumberland Assessor's Parcel No, 34-34-2415-020A Tax Year 04/05 R.E, Taxes $1.645 Special Assessments $ N/ A Neiahborhood or Proiect Name Borouqh of Shippensburo Map Reference 34-2415 Census Tract 0132.00 " Borrower FREEMAN William A. Current Owner Freeman William A & Albert W. Occupant: [ ] Owner rxl Tenant [ 1 Vacant Prooertv riahts aooraised [X I Fee Simole [ I Leasehold I Proiect Tvoe PUD r 1 Condominium HOA$ N/A /Mo, Sales Price $ N/ A Date of Sale N/A Descriotion and $ arrount of loan charaes/concessions to be oaid bv sellerN/A Lender/Client Dr. William A. Freeman Address 67 West Kino Street Shippensburq. PA 17257 Aooraiser Stan A. Skowronek Address 126 North Hanover Street. Carlisle PA 17013 Locat ion [J Urban U Suburban U Rural Predominant sin81e family housing Predominant 2-4 family housing Single Family PRI E AGE 2-4 Family PRICE AGE Built up o Over 75% o 25-75% 0 Under 25% Occupancy $ (000) (yrs) Occupancy $ (000) (yrs) Growth rate o Rapid o Stable o Slow o Owner 95 90 Low 25 DOwner 80 Low 25 Property values o Increasing o Stable o Declining o Tenant 275 Hiah 100 0 Tenant 95 300 Hiah 100 Demand/supply 0 Shortage o In balance o Oversup~ ~ Vacant (0-5%) ~ Predominant ~ 0 Vacant (0-5%) Predominant Marketinq time [Xl Under 3 roos, n 3.6 mos, [] Over 6 roos. Vacanl (over 5%) 110 75 n Vacanl (over 5%) 140 75 Typical 2-4 family bldg, Type Detached No, stories 2 No, units 2-4 Age 75 yrs, Present land use % Land use change Typical rents $ 350 to $ 750 o Increasing 0 Stable 0 Declining - One family 65% o Not likely o Likely Est. neighborhood apt. vacancy 5 % 0 Increasing 0 Stable o Declining 2-4 family 10% o In process to: Rent controls 0 Yes 0 N;-OUkely If yes or likely, describe Multi-family 5% Commercial 20% ) Note: Race and the racial composition of the neighborhood are not appraisal factors. Neighborhood boundaries and characteristics: The subject is bounded on the north bv Fort St on the east by Queen St on the south bv Oranoe St and on the west bv Roxburv Rd. Factors that affect the marketability of the properties in the neighborhood (proximity to employment and amenities, employment stability. appeal to market, etc,): There are no adverse factors to affect marketabilitv of the subiect. Diverse stable employment and all suooortina amenities are within easv drivino distance. MSA 3240 . . . ;-; ~ The following avaiable listings represent the most current, similar, and proximate competitive properties to the subject property in the subject neighborhood, This analysis is intended to evaluate the inventory aJrrently on the market competing with the subject property in the subject neighborhood and recent price and marketing time trends affecting the subject property, (Listinas outside the subiect neiahborhood are not considered applicable), The listina comoarables can be the rental or sale comparables if thev are currentlv for sale, ITEM I SUBJECT COMPARABLE LISTING NO, 1 COMPARABLE LISTING NO, 2 COMPARABLE LISTING NO, 3 65 W. King Street 318 E. King Street 83-85 W. Main Street 14 N. High Street Address Shippensbur Shippensburq Newville Newville Proximitv to subiect 2.0 MI ENE 12.0 MI NE 12.2 MI NE Listina orice $ N/A r xl Unf, [ I Furn, $ 135.900 r xl Unf, r l Furn, $ 115000 [xl Unf, 1 Furn, $ 119 900 Aooroximate GBA 1984 2187 2350 2152 Dala source Insoection MLS/CHR MLS/CHR MLS/CHR # UnrtslT ot. rms.lBRlBA 2' 7' 2' 2.00 2' 9' 3' 3.00 2' 9' 5' 2.00 2' 8' 4' 2.00 Aooroximate vear bu~t 1900 1900 1900 1900 Aorox, days on market N/A 297 99 36 Comparison of listings to subject property: Listinq #1 has more rooms/bedrooms/baths. It has more GLA. Listinq #2 has more rooms/bedrooms. It has more GLA. Listinq #3 has more rooms/bedrooms. It has more GLA. Market conditions that affect 2.4 family properties in the subject neighborhood (including the above neighborhood indicators of growth rate, property values, demand/supply, and marketing time) and the prevalence and impact in the subject market area regarding loan discounts, interest buydowns and concessions, and identification of trends in listing prices, average days on market and any change over the past year, ete,: research of the recent sales of 2-4 unit properties for calendar year 2004 indicates an averaoe marketina time of 132 days. Interest rates are relativelv low. therefore few loan concessions are offered. Analysis of the davs on the market and consideration of current economic trends indicates a demand for investment properties in this price ranoe I D;~",,,", See leaal dem;.';o" Topography Basicallv Level Site area .53 Acre m/I Corner Lot lxJ No U Yes Size Larqer than normal Specific zoning classification and description Neiqhborhood Commercial Shape Rectanqular 70ninn cnmnl!<=Inr.p rill pn;:ll n 1.:lrr1~ nnnfY"lnft'YT'TV,n{r::.F"'.:l.n~hororlll~o.\ r llll.....,......1 r l ~I... ___;__ f"\__:__ __ ^__~___ ^-I__.._.L_ " '< SUMMARY APPRAISAL REPORT SMALL RESIDENTIAL INCOME APPRAISAL REPORT 05-0071 General description Exterior description (Materials/condit ion) Foundation Insulation (Rvalue tknown) Units/bldgs, 2/1 Foundation Stone Slab Partial o Roof Stories 2 Exterior walls BrickNinvl Crawl space None 00 Ceiling · Type (deUatl,) Detached Roof surface Asohalt ShinQle Sump Pump None 00 Walls . Design (style) 2 story Gutlers&dwnspts, Aluminum Dampness None Obs 00 Floor . Existing/proposed ExistinQ Window type Wood Obi Huna Settlement None Obs o None Under construction No Storm sastvsaeens Yes Infestation None Obs Adequacy Averaae Year Built 1900 Manufactured housing" DYes 00 No Basement 50 % of 1st floor area Energy efficient items: Effective age (yrs.) 15-20 "(Complies with the HUD Manufactured Housing Baserrent fnish 0% R Factors Unknown Averaae Condition Construction and Safety Standards,) Units Level(s) Fover Livino Dinino Kitchen Den Family rm. Bedrooms # Baths Lau ndrv Other Sa, f1.1unit Total i2'i 1 1 1 1 1 1 1 1 162 1 2 1 1 1 1 822 Improvements contain: 7 Rooms; 2 Bedroorr(s); 2 Balh(s); 1 984 Sauare feet of GROSS BUILDING AREA GROSS BUilDING AREA (GBA) IS DEFINED AS THE TOTAL FINISHED AREA (INCLUDING COMMON AREAS) OF THE . IMPROVEMENTS BASED UPON EXTERIOR MEASUREMENTS, Surfaces (Materials/condition) Heating Kitchen equip. (# / unit-cond,) Attic Car Storage No, Cars ..!..- Floors CarpetNinvl Type FHAlHPI2ndFl Refrigerator 2/Ava 00 None Garage 0 . Drvwall Gas/Elect. 2/Ava o Stairs 0 Walls Fuel Range/o.'en Carport . Trim/finish Wood Condition Ava/Ava Disposal o Drop stair Atlached 0 Bath floor Vinvl Dishwasher o Scuttle Detached 0 . Bath wainscot Drvwall 00 Floor 0 Cooling Fan/hood Adequate . Doors Wood Central Yesl2nd FIl Compactor o Heated Inadequate 0 Averaae Condition Other None ~ o Finished Offstreet 00 Condition Averaae Microwave o Unfinished None 0 Fireplace(s) None # Intercom Condition of the improyements, repairs needed, quality of construction, add~ional features, modernization, etc,: Improvements are in averaae condition with no phvsical or functional inadeauacies aooarent. Depreciation (physical, functional, and external inadequacies, etc,):There are no phvsical functional. or external inadeauacies aooarent. . Adverse environmental conditions (such as, but not limited to, hazardous wastes, toxic substances, etc,) present in the improvements, on the site. or in . the immediate vicinity of the subject property: No adverse environmental conditions are aooarent/disclosed. . . - . VALUATION ANALYSIS ESTIMATED SITE VALUE. . . ,."""",.."""""",.. = $ Comments on Cost Approach (such as, source of cost estimate, site value, ESTIMATED REPRODUCTION COST-NEW OF IMPROVEMENTS: square foot calculation and, for HUD and VA, the estimated remaining Sq, Fi. @ $ =$ 0 economic life of the property): Cost Approach deemed a ooor Sq, Fi. @ $ =$ indicator of value due to aae of the improvements. Estimated Sq, Fi. @ $ =$ remainino economic life is 30-35 vears. Sq, Fi. (ill, $ =$ , ~ SUMMARY APPRAISAL REPORT SMALL RESIDENTIAL INCOME APPRAISAL REPORT 05-0071 At least three rental comparables should be reported and analyzed in this section, The rental comparables should represent the most current rental information on properties as similar and proximate to the subject property as possible, (This comparison is based on current rental data, therefore, the rental comparables tYPically are not the same comparables used in the sales comparison analysis,) The appraisal report should assure the reader that the units and properties selected as comparables are comparable to the subject property (both the units and the overall property) and accurately represent the rental market for the subject property (unless otherwise stated within the report), ITEM SUBJECT COMPARABLE RENTAL NO, 1 COMPARABLE RENTAL NO, 2 COMPARABLE RENTAL NO, 3 Add 65 W. King Street 136 N. Earl Street 214A/214B E. Orange St 341 East Fort Street ress Shiooensbur Shiooensbura Shiooensbura Shiooensbura 1.7 MI NE 1.8 MI ENE 1.8 MI NE Proximity to subject Lease dates(if available) Annual Leases Month to Month Annual Lease Mav to Mav Rent survey date 02/17/2005 02/04/2004 02/17/2005 02/04/2004 Data source Inspection Owner Multi-list Multi-list Owner Rent concessions None None None None No, Units2 No, Va:;, 0 No, Unls2 No, Vac. 0 Yr,81.: 1940 No, Unls 2 No, Vac, 0 Yr,BIt,: 1900 No, Unls2 No, Vac, 0 Yr, BIl.: 1900 Description of Yr, BIt.: 1900 property" units, 2 stv Semi-Detach 2 Sty Detached 2 Stv Detached 2.5 Stv Detached design, appeal, Aot. Buildina Aot. Buildina Aot. Buildina Apt. Buildina age, vacancies, Average Condition Averaae Condition Averaae Condition Averaae Condition and conditions Rm. Count Size Rm, Count Size Total Rm. Count Size Total Rm, Count Size Total Tot Br Ba Sa, Ft. Tot Br Ba Sa, Ft, Monthly Rent Tot Br Ba Sa, Ft, Monthlv Rent Tot Br Ba Sa, Ft. Monthlv Rent Individual 4 1 1 1162 7 4 1 2016 600 4 2 1 810 525 5 3 1 1289 510 unit 3 1 1 822 7 1 1.5 1428 800 4 2 1 810 550 4 2 1 871 360 breakdown 0 0 Water/SewerlTrash Water/Sewer/Trash Water/Sewer/Trash Oil Heat Utilities, PorchlDeck furniture, and amenities included in rent Part. Bsmt/Unfin Full Bsmt/Unf Part. Bsmt/Unfin Full Bsmt/Unf . Functional utility, FHA/HP/CA-2ndFI FHA/None EBB/None FHA/None . basement, Porch/Patio Porches Porches PorchlDeck . heating/cooling, Off Street Prkna 2CGarae/Off Street Off Street Prkna Off Street Prkna . project amenities, etc, . Analysis of rental data and support for estimated market rents for the individual subject units (including the adjustments used, the adequacy of comparables, rental concessions, etc,) .. Rental #1 has more rooms/bedrooms/baths. It has laraer GLA. It has more ammenities such as aaraae availabilitv. Rental #2 . has more rooms/bedrooms/baths. it has less GLA. Rental #3 has more rooms/bedrooms. It has more GLA. . Subject's rent schedule The rent schedule reconciles the applicable indicated monthly market rents to the appropriate subject unit, and provides the estimated rents for the subject property, The appraiser must review the rent characteristics of the comparable sales to determine whether estimated rents should reflect actual or market rents, For example, if actual rents were available on the sales comparables and used to derive the gross rent multiplier (GRM), actual rents for the subject should be used, If market rents were used to construct the comparables' re~ts and derive the GRM, market rents should be used, The total gross estimated rent must represent rent characterlslics consistent With the sales comparable data used to derIVe the GRM, The total gross estimated rent is not adjusted for vacancy, LEASES ACTUAL RENTS ESTIMATED RENTS Unit Lease Date No, Per Unit Total Per Untl Total Beqin Units End Vacant Unfurnished Furnished Rents Unfurnished Furnished Rents 1 June June 0 $ 450.00 $ $ 450.00 $ 450.00 $ $ 450.00 1 June June 0 370.00 370.00 425.00 425.00 ~ SUMMARY APPRAISAL REPORT \. SMALL RESIDENTIAL INCOME APPRAISAL REPORT 05-0071 The undersigned has recited three recent sales of properties most similar and proximate to the subject property and has described and analyzed these in this analysis. If there is a significant variation between the subiect and comparable properties. the analysis Includes a dollar adjustment reflecting the market reaction to those Items or an explanation supported by the market data, If a slgniflcantllem in the comparable property is superior la, or more favorable than, the subject property, a minus (.) adjustment is made, thus reducing the adjusted sales price of the comparable properly; ita significant item in the comparable properly is inferior 10, or less favorable than. the subiect pro pert , a plus (T) adjustment is made, thus Increasinq the adlusted price of the comparable properly, [(1) Sales Price. Gross Monthly Rent] ITEM SUBJECT COMPARABLE NO, 1 COMPARABLE NO, 2 COMPARABLE NO, 3 65 W. King Street 254-256 E. Garfield Street 103 S. Queen Street 336 E. Garfield Street Address Shippensbur Shippensbura Shippensbura ShippensburCl Proximity to subiect '1.7 MI ENE 2.2 MI ENE 2.0 MI ENE Sales price $ N/A X Unf, [ Furn, $ 110 000 X Unf, [ Furn, $ 110,000 X Unf, Furn, $ 92750 Sales price per GBA $ 80.90 $ 46.04 $ 67.44 $ 43.26 Gross monthlv rent $ 875 $ 1 145 $ 700 $ 980 Gross roo. rent rrult. (1) 195.73 96.07 157.14 94.64 Sales price per unit $ 80 250 $ 55 000 $ 55 000 $ 46 375 Sales price per room $ 22 929 $ 11 000 $ 18 333 $ 9275 Data and/or Inspection MLS/Courthse MLS/Courthse MLS/Courthse Verification Sources Owner/CH ADJUSTMENTS DESCRIPTION DESCRIPTION I t (,) $ Adjustment DESCRIPTION I t (.J $ Adjustment DESCRIPTION I t (.) $ Adjustment Sales or financing None,Conv I Unknown I Unknown I I I I I I I concessions DOM 102 I Unknown I DOM 62 I I I I Date of sale/time 11/12/2004 ; 01112/2004 I 09/01/2004 , location Urban Urban , Urban , Urban , , , I leasehold/Fee Simple Fee Simple Fee Simple , Fee Simple , Fee Simple , , , I Site .53 Ac/AvQ .14 Ac/AvQ , 3900 .21 Ac/Ava , 3200 ,06 Ac/Ava I 4700 View Urban Urban , Urban , Urban I , I I Design and appeal 2Stv/2Unit/Avg 2Sty/2U n it/Ava , 2Sty/2Unit/AvQ , 2Stv/2Unit/AvQ , , I , . Qualnv of construction Averaae Average , Averaae , Average : . Age 100 Years 85 Years , 85 Years , 65 Years ; , , . Condition AveraQe AveraQe , Averaae , Averaae , , , , Gross Building Area 1.984 Sg, ft, 2389 S ,ft,: -8 100 1631 S ,ft,; 7060 2.144s ,ft,' -3,200 . , , , . 20 toll, Rm. count No, toll. Rm. count I toll. Rm.count , toll. Rm. count , ct ct NO.1 ct NO.1 ct No.1 Vac, Vac~ Vac.' Vac{ units Tot Br Ba units Tot Br Ba units Tot Br Ba , units Tot Br Ba . Unit 1 4 1 1 0 1 5 3 1 0' 1 3 1 1 0 I 1 5 2 1 0' breakdown 1 3 1 1 0 1 5 3 1.5 0: -1,500 1 3 1 1 0: 1 5 2 1 0: 0 0 , , I . , , I 0 0 , , , Basement description Partial/Unfinished Full/Unfinished I Full/Unfinished , Full/Unfinished I I , I Functional utilitv AveraQe Averaae I Averaae , Averaae , I , , Heating/cooling FHA/HP/CA-2ndFI FHA/None , 2,000 HWStm/None , 2000 FHA/None , 2000 Parking on/off site Offstreet 2 Car Garaae , -5 000 2 Car Garaae , -5.000 Off Street , , , , Project amenities and Porch/Patio Porch/Patio I Porch/Patio , Porches I , , , fee lif applicable) , , , , I , None l\Jone , None I None I , , , N,' Adi. (t"", . X. . 8700~ 7260~ 3500 Ad] sales price of comparabies 101 300 117 260 96 250 Comments on Sales Comparison (including reconCiliation of all indicators of value as to consistency and relative strength and evaluation of the typical investor's/purchaser's motivation in that market): Estimated ranae of value is $96 000 to $117 000, Adjusted price/unit of the comparables is $50650/$58 600/and $48 125. These are the best sales comparables known to be available. ITEM SUBJECT COMPARABLE NO, 1 COMPARABLE NO, 2 COMPARABLE NO, 3 Date. Price and Data 05/12/1977 Source for prior sales $1.00 None None None wnhin vear of appraisal Courthouse Courthouse Courthouse Courthouse Analysis of any current agreement of sale, option, or listing of the subject property and analysis of any prior sales of subject and corlllarables wnhin one year ofthe date of appraisal: No prior transfers within the past 36 months. Comparables have not transferred within the past 12 months. Total gross monthly estimated rent $ 875 x gross rent rooltiplier (GRM) 118.00 =$ 103,250 INDICATED VALUE BY INCOME APPROACH Comments on income approach (including expense ratios, if available, and reconciliation of the GRM) The comparable GRM has a mean of 116 and a standard deviation of 36. Based upon this analvsis we reconcile the GRM at 118. INDICATED VALUE BY SALES COMPARISON APPROACH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 105000 INDICATED VALUE BY INCOME APPROACH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 103 250 INDICATED VALUE BY COST APPROACH $ N/A This appraisal is made 00 "as is' o subject t~ the ~';ar:s, ~It~t~n;, i~s';eciio~s'or'~ndn~n; I~ted bel~w' , , , , 0 ;ubje'ct 'to 'c~m~l~ti~n 'p~r ';Ia~s and specifications, COl'T'lTlents and Condnions of Appraisal: The subiect site is larQer than those of the comparables. The excess area provides approx. 36 parking spaces. The excess land utilized for off street oarkina, aporox. 10.000 SQ. Ft. was adiusted at $2.00 per SQ. Ft. This estimate - ~. L ... .. . .. - .. , , . Operating Income Statement , SUMMARY APPRAISAL REPORT One- to Four-Family Investment Property and Two- to Four-Family Owner-Occupied Property 05-0071 Property Address 65 W. King Street Shippensburg PA 17257 Street City State Zip Code General Instructions: This form is to be prepared jointly by the loan applicant, the appraiser, and the lender's underwriter, The applicant must complete the following schedule indicating each unit's rental status, lease expiration date, current rent, market rent, and the responsibility for utility expenses, Rental figures must be based on the rent for an "unfurnished" unit. Currently Expiration Current Rent Market Rent Paid Paid Rented Date Per Month Per Month Utility Expense By Owner By Tenant Unit No, 1 Yes !-- No _April $ 450 $ 450 Electricity , , , , , , , , ,0 00 Unit No, 2 Yes !-- No - July $ 370 $ 370 Gas", """ ".,0 00 Unit No.3 Yes - No - $ $ Fuel Oil """",,0 0 Unit No, 4 Yes No - $ $ Fuel (Other) , . , , , , ,0 0 - Total $ 820 $ 820 Water/Sewer, , , , , , ,00 0 Trash Removal , , , , ,[Xl n The applicant should complete all of the income and expense projections and for existing properties provide actual year-end operating statements for the past two years (for new properties the applicant's projected income and expenses must be provided), This Operating Income Statement and previous operating statements the applicant provides must then be sent to the appraiser for review, com- ment, and/or adjustments next to the applicant's figures (e,g" Applicant/Appraiser 288/300), If the appraiser is retained to complete the form instead of the applicant, the lender must provide to the appraiser the aforementioned operating statements, mortgage insur- ance premium, HOA dues, leasehold payments, subordinate financing, and/or any other relevant information as to the income and expenses of the subject property received from the applicant to substantiate the projections, The underwriter should carefully review the applicant's/appraiser's projections and the appraiser's comments concerning those projections, The underwriter should make any final adjustments that are necessary to more accurately reflect any income or expense items that appear unreasonable for the market, (Real estate taxes and insurance on these types of properties are included in PITt and not calculated as an annual expense item.) Income should be based on current rents, but should not exceed market rents, When there are no current rents because the property is proposed, new, or currently vacant, market rents should be used, Annual Income and Expense Projection for Next 12 months \ Adjustments by (. Income (Do not indude income forowner-occupied units) By Applicant/Appraiser Lender's Underwriter Gross Annual Rental (from uml(s) to be rented) """",."""".", $ 9,840 $ Other Income (include sources) , , , , , , . , , , , , , , , , , , , , , , , , , , , , . . , , , + + Total .,................"........................,.... . $ 9,840 $ Less Vacancy/Rent Loss, , , , , , . , . . . . . . . . , . , ~ . . . . . . . . . . , 492.00 ( 5%) ( %) Effective Gross Income, , , , , , , , , , . ' , , , , , , , , , , , , . ....,... , $ 9,348 $ Expenses (Do not include expenses for owner-occupied umls) f Electricity. , , , . , , , , , , , , , , , , , , , , , , , . , , , , , , , , , , , , , , , , . , , , , , Gas"""".""""",.""""""""""".".", . Fuel Oil ...................................,............ . Fuel , , , , , , , , , , , , , , , . , , , , , . , , , , ,(Type- ) Water/Sewer Trash, , , , , , , , , , , , , , , . , , , , , , , , , , , , , , , , , , , , , , , , 513 Trash Removal "".."""".""",.""","',.,""'" Pest Control """"",.."""."""",.,,"""',.. Other Taxes or Licenses ..,...,..,..",......,........... . Casual Labor .,., , . . . . . . . . ................. . This includes the costs for public area cleaning, snow removal, etc" even though the applicant may not elect to contract for such services. Interior Paint/Decorating , , , , . . , , , . ' , . , , , , , , , , , , , . . , , , , . , , , , , , This includes the costs of contract labor and materials that are required to maintain the interiors of the living units, General Repairs/Maintenance , , , , , . , , , , , , , , , , , , , , , , , , , , , , , , , . , 492 This includes the costs of contract labor and materials that are required to maintain the public corridors, stairways, roofs, mechanical systems, grounds, etc, Management Expenses , , , . . . . . . . . . ........... . These are the customary expenses that a professional manage- ment company would charge to manage the property, Supplies " , , , , , , , , , , , , , , , , , , , , , . , , , , , , , , . , , , , , , , , , , , , , , This includes the costs of items like light bulbs, janitorial supplies, etc, T..........I 0......1............................ D....,,^r\/nr- Co.n C,..h.o.I"lIII.o. nn On ') ^^^ ~ SUMMARY APPRAISAL REPORT 05-0071 Replacement Reserve Schedule Adequate replacement reserves must be calculate regardless of whether actual reserves are provided for on the owner's operating statements or are customary in the local market. This represents the total average yearly reserves, Generally, all equipment and com- ponents that have a remaining life of more than one year-such as refrigerators, stoves, clothes washers/dryers, trash compactors, furnaces, roofs, and carpeting, etc,-should be expensed on a replacement cost basis. Equipment Replacement Remaining By Applicantl Lender Cost Life Appraiser Adjustments Stoves/Ranges , , , , , @$ 350.00 ea.+ ~ Yrs, x 2 Units =$ 46.67 $ Refrigerators , , . , , , , , @$ 300.00 ea.+ ~ Yrs, x 2 Units =$ 50.00 $ Dishwashers, , , , , , , , @$ ea.+ _ Yrs, x Units =$ $ NC Units """"" @$ ea.+ _ Yrs, x Units =$ $ C, Washer/Dryers "" @$ ea.+ _ Yrs, x Units =$ $ HW Heaters, , . , , , , , , @$ 175.00 ea,+ --1Q Yrs. x 2 Units =$ 35.00 $ Furnace(s), , , , , , , , , , @$ 4,500.00 ea.+ -1Q Yrs, x 1 Units =$ 225.00 $ (Other) , , , , , , , , , , , @$ ea.+ _ Yrs, x Units =$ $ Roof ,.. , ..."",@$ 5,000.00 ~ Yrs. x One Bldg, = $ 333.33 $ Carpeting (Wall to Wall) Remaining Life (Units) _ Total Sq. Yds, @$ Per Sq. Yd, + _ Yrs, = $ $ (Public Areas) _ Total Sq. Yds, @$ Per Sq, Yd. + _ Yrs. = $ $ Total Replacement Reserves. (Enter on Pg. 1) $ 690.00 $ Operating Income Reconciliation $ 9,348.00 - $ 1,695.00 =$ 7,653.00 + 12= $ 637.75 Effective gross Income Total Operating Expenses Operating Income Monthly Operating Income $ 637.75 -$ =$ 637.75 Monthly Operating Income Monthly Housing Expenses Net Cash Flow (Note: Monthly Housing Expense includes principal and interest on the mortgage, hazard insurance premiums. real estate taxes, mort- gage insurance premiums, HOA dues, leasehold payments, and subordinate financing payments,) Underwriter's instructions for 2-4 Family Owner-Occupied Properties . If Monthly Operating Income is a positive number. enter as "Net Rental Income" in the "Gross Monthly Income" section of Freddie Mac Form 65/Fannie Mae Form 1003, If Monthly Operating Income is a negative number, it must be included as a liability for qualification purposes. . The borrower's monthly housing expense-to-income ratio must be calculated by comparing the total Monthly Housing Expense for the subject property to the borrower's stable monthly income, Underwriter's instructions for 1-4 Family Investment Properties . If Net Cash Flow is a positive number, enter as "Net Rental Income" in the "Gross Monthly Income" section of Freddie Mac Form 65/Fannie Mae Form 1003, If Net Cash Flow is a negative number, it must be included as a liability for qualification purposes, . The borrower's monthly hOUSing expense-to-income ratio must be calculated by comparing the total monthly housing expense for the borrower's primary residence to the borrower's stable monthly income. Appraiser's Comments (including sources for data and rationale for the projections) Forecasted rents and expenses appear fair for the local market conditions. ~tZln A. ~knwrnnek ~~.CJ, ~~."r-.t,,\( 0<1/71\/700" . , FLOORPLAN Borrower: FREEMAN, William A. File No.: 05-0071 Property Address: 65 W. King Street Case No.: City: Shlppensburg State: PA Zip: 17257 Lender: Dr. William A. Freeman 1--- -- - ~..-~-----,--_. --- ~,.., . ...... Bedroom Bath Kitchen Kitchen Bedroom Dining Living Living Sketch by Apex IV Windows TM GLA2 Second Floo~22.0000 822.0000 19.00 x 20.00 380.0009 pip Porch 76.0000 17.00 x 46.00 782.0002 68.0000 144.0000 Unit #2 Second Floor 17.00 x 46.00 782.0000 2.00 x 20.00 40.0000 :.tUD...t:~ I r'KUr't:K I Y r'HU I U AUUt:NUUM Borro'4i/er: FREEMAN, William A. File No.: 05-0071 Property Address: 65 W. King Street Case No,: . City: Shippensburg State: PA Zip: 17257 Lender: Dr. William A. Freeman - ,----- FRONT VIEW OF SUBJECT PROPERTY - Appraised Date: July 2, 2004 ""i""",<"."."<,.",,,,~ "l!il"""'''"'_~~~Jr>i~~''I~", ...' . . ...,,~, 'C::;"~'~~..,,_.~_ ',,~,~; .~., . '.'. ,t',"" REAR VIEW OF .,\~~- SUBJECT PROPERTY ~ )..... ).i~"" '>._, '-;- -"-..~, -'-, .. STREET SCENE , I \,oVlflrl-\I"\I-\I:JL.C rl"\VrCI"\' I rnv, v 1"\.......c,.u...UIY, Borrower: FREEMAN, William A. File No.: 05-0071 Property Address: 65 W. King Street Case No,: City: Shippensburg State: PA Zip: 17257 Lender: Dr. William A. Freeman COMPARABLE SALE #1 254-256 E. Garfield Street Shippensburg Sale Date: 11/12/2004 Sale Price: $ 110,000 ... uj COMPARABLE SALE #2 --.~- ~ -- 103 S. Queen Street Shippensburg Sale Date: 01/12/2004 Sale Price: $ 110;000 i -----~ .-4._ . I ..)X> . COMPARABLE SALE #3 /1i.~ " ..,~ I / . /~~/ /~~k I \ \ ,"'---;jj{, . "- 336 E. Garfield Street '---+-"'. ',." .. ,,/ .~- '. . . '1.."\.' ~i~F . i';~~~'~~;,~;," . .. \~JII~~jii~"">"'" '.. . ,/<i1;,\'., Shippensburg 1/6'1 rlllll 1111 ' ~i'VC . "," Sale Date: 09/01/2004 ""h' f'\""'- rc '.I.! lit{ft~I/.1 Sale Price: $ 92,750 ,. ,I ~ \ 5, t .I ..~__=_.__- .,~..._.;l,l. ti ',< " 4X' ~ .. 1" . , LOCATION MAP Borrower: FREEMAN, William A. File No,: 05-0071 Property Address: 65 W. King Street Case No.: City: Shippensburg State: PA Zip: 17257 Lender: Dr. William A. Freeman -~- ---- ! I i I - FileNo,: 05..()O71 Case No:. statEr. P A Ii '. 172.57 -'\ 2.2.4 --- l\ ~~ <)0' ----- I ~ . _ItAl'\d Hood \nformat\on """""""" ...,... ,"",.....U.G, ,G.GUG" GF 1 , .. File No, 05-0071 -. -.-.-.-.. ********* QUALIFICATIONS ********* The following checked items are SPECIFIC SPECIAL CONDITIONS that were identified by this appraiser during the inspection of the subject property, the com parables sales, and their neighborhoods and locations. Unless otherwise noted, the conditions that apply to the subject property or the comparable sales used DO NOT AFFECT THE MARKET VALUE OR THE FUTURE MARKETABILITY OF THE SUBJECT PROPERTY BEING APPRAISED. This is not a home inspection service. This is an appraisal to estimate market value. _1. The subject is located in a rural area and is less than 25% built-up. _x_2. Commercial/Industrial uses are located within the subject's neighborhood. These uses are typical of similar neighborhoods. _3. Vacant and undeveloped land uses are located within the subject's neighborhood. These uses are typical for the area. _x_ 4. The predominant value in the neighborhood is less than that of the market value of the subject property. This is due to the very wide range of value of properties in the area and superior quality of the subject property. _x_5. The subject property is located in a F.E.M.A. Identified Flood Zone. Flood insurance coverage is required and suggested. _6. Dampness is noted in the basement of the subject. Standing or running water was not present on basement floor. This condition is considered typical in dwellings of this style. _7. The subject property is serviced by private well and/or septic systems which is common for the area. _x_B. The subject is older than five(5) years. All mechanical systems including the heating, electrical and plumbing systems appear upon a visual exterior inspection to be in working order. No warranties are implied in this statement. _9. Repair items were noted in the comments section of the report. These comments on repair items are for descriptive purposes only and are not required repairs. The items listed are cosmetic in nature. _10. The basement floor is a dirt floor. This condition is common and typical for the area. and does not pose a health or safety hazard. _11. The subject property does contain functional obsolescence as noted in the report. This condition is considered typical and common for the area and this style dwelling. _12. The land value exceeds 30% of total value due to the high demand for vacant land in this neighborhood. This condition is considered common and typical for the neighborhood. _13. The land value exceeds 30% of total value. This is due to the large size of the site. This condition is considered to be typical and common. _14. Individual adjustments were required that exceed 15%. These adjustments were required due to lack of more similar com parables on that individual rating. All com parables used are the best available. _15. Total adjustments exceed 25%. This is due to the lack of comparable sales that were more similar in the subject's market area. All com parables used are the best available. _z_16. One or more comparable sales are older than six(6) months. Although there are comparable properties in the subject's area, none have sold recently; therefore, sales in excess of six(6) months have to be used. All com parables used are the best available. _z_17. One or more comparables used were in excess of one (1) mile from the subject property. Although there are comparable properties in the immediate area, none have sold recently. Therefore, it was necessary to use comparable sales outside of the immediate area. All com parables used are located in similar neighborhoods and within the same marketing area. All com parables lIsed are the best available. _1B. The electrical system was not connected during inspection. . , .. File No, 05-0071 ********* QUALIFICATIONS ********* _24. The subject property is located on a private road. _25. Wood infestation inspection is suggested. _z_26. Last recorded deed transfer: Date_05/12/77 _, Consideration: $_$1.00 _27. Proposed construction/renovation in accordance to plans and specifications to be completed in a workman-like manner. _28. Seller is paying part or all of closing costs. _z_29. All comparable sales are verified closed sales. _z_30. There are no special conditions or other requirements that would affect market value or future marketability in the Appraisal Report. CHECKED ITEMS ARE SPECIFIC SPECIAL CONDITIONS THAT WERE IDENTIFIED BY THIS APPRAISER DURING INSPECTION. t' " , . File No, 05-0071 DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus, Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U,S, dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions. granted by anyone associated with the sale, . Adjustments to the com parables must be made for special or creative financing or sales concessions, No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction, Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the Appraiser's judgment. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible ownership, 2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of its size, 3, The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area, Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination, 4, The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand, 5, The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value, These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used, 6, The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc, ) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc, ) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property, The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment of the property. 7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties, 8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice, 9, The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. . , . . File No, 05-0071 APPRAISERS CERTIFICATION: The Appraiser certifies and agrees that: 1, I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation, If a significant item in a comparable property is superior to , or more favorable than, the subject property, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, if a significant item in a , comparable property is inferior to, or less favorable than the subject property, I have made a positive adjustment to increase the adjusted sales price of the comparable, 2, I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct. 3. I stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent and limiting conditions specified in this form, 4, I have no present or prospective interest in the property that is the subject to this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction, I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property, 5, I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property, 6. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, the amount of the value estimate, the attainment of a specific result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal. I did not base the appraisal report on a requested minimum valuation, a. specific valuation, or the need to approve a specific mortgage loan, 7, I performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of the effective date of this appraisal, with the exception of the departure provision of those Standards, which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconciliation section, 8, I have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them, I have also commented about the effect of the adverse conditions on the marketability of the subject property. 9, I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on significant prOfessional assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to perform the tasks, I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that: I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. ADDRESS OF PROPERTY APPRAISED: 65 W. King Street, Shippensburg, PA 17257 APPRAISER: SUPERVISORY APP~1!.I~I=~ In... I" If "".....IM....\ J. , S. W. BARRETT REAL ESTATE & APPRAISAL SERVICES I FHa No. 05-0069C I I APPRAISAL OF I I I I I I I I LoeA TEDA T: 67-71 West King Street I . Shippensburg, PA, 17257 ~ FOR: I Dr. William A. Freeman 67 West King Street Shippensburg, PA 17257 I AS OF: I July 2, 2004 I BY: Steven W. Barrett, SRPA, SRA Certified General Appraiser I I - I IJtl' , :;:~, '. L';; IJJ S. W. BARRETT REAL ESTATE & APPRAISAL SERVICES Appraisals . Brokerage . Counseling 124.126 N. Hanover Street Carlisle, PA 17013-2455 Phone (717) 243-6646 FAX (717) 243.8627 IJ] Steven W. Barrett, SRPA, SRA. ASA State Certified General Appraiser III A 1Il_.__ @ ~@~ ~ ! JI] March 24, 2005 Dr. William A. Freeman , , 67 West King Street ~ Shippensburg, P A 17257 RE: 67-71 West King Street Shippensburg, P A 17257 Dear Dr. Freeman; The appraiserls certify that the subject property has personally been inspected, as you requested, to estimate its present value in a Summary Appraisal accordance with the Uniform Standards of Professional Appraisal Practice (USP AP) The value shown has been arrived at after careful study of the location and type of improvements, their present physical condition and their present use, Therefore, I/we believe it to reflect a true measure of the present-day market value "AS OF" July 2, 2004, Value Reported: Seven Hundred Ten Thousand Dollars $710,000. The appraiser/s also certify that there is no financial interest, present or contemplated, in this property, and that neither the employment to make the appraisal nor the compensation therefrom is contingent upon the value reported, , ~ This report in its entirety includes the Analyzes, Certification, Special Conditions and Addenda, all of which constitute this Summary Appraisal. Sincerely yours, ~cJ'fL.it Steven W. Barrett, SRP A, SRA, ASA PA State Certified General Appraiser, GA-000298-L Fe SUMMARY APPRAISAL REPORT ~. , File No, 05-0069C ,~ ~, "'UNiFORIVicOMMERCIAWnNioUSmRiAE:suiViiViiARyiAiBPRAlsiWRERQRffi4ExtsmINGiPRQR~~i~u Client Dr. William A. Freeman . File Number 05-0069C Property Use 00 Office U Commercial 0 Industrial ~ Mixed Use property Address 67 :71 West King Street Map Reference 34-2415 City Shlppensburg County Cumberland state PA Zip Code 17257 Building Name None known Census Tract 0132.00 owner/Occupant William A. Freeman & Albert W. Freeman 1 Various Tenants APN 34-34-2415-019 Typical Buyer: X Owner/User Investor Property Rights Appraise~ 00 Fee Simple Leased Fee U Leaseh.old U Other purpose of Appraisal Estimate market value of the property described. Intended User(s) of Report Dr. William A. Freeman, or his assignee's Intended Use of Report For equitable distribution and inheritance tax purposes of the estate of Albert W. Freeman Scope of Work Standard Rule 2-2 of the Uniform Standards of Professional Appraisal Practice and the Standards of Professional Practice of the Appraisal Institute require that the extent of the process in which data are collected, confirmed, and re orted be described. X Complete Appraisal Limited Appraisal due to the following departures from Standard 1 No departures invoked Date of Report 3-14-2005 07/02/2004 Value Indication' Site Value $ 76,000 Value Indication' Cost Approacn . . . . " . . . . . . . . . . . . . . . . . . " . . . . . . " . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $ N/A Value Indication . Income Approach' . . . . . . . . . " . . . . . " . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $ 728,000 Value Indication. Direct Sales Comparis'o~ Ap.proacl1' . . . . . " . . . . . . . . . . . . " . . . " . . . " . . . " . . . . . . . . . . " . . . " . .. $ 706,000 Market Value of Personal Property Included in Appraisar . . . . . . . . . . . . . . . . . . . . " . . . . . . " . . . . . . " . . . . . " . . . . . " $ N/A Market Value of Other Non.Realty Interests Included in Appraisal "l\tdn-e'lnchltled . . . . . . " . . . . . . . . . . " . . . . . . . .. . . " . .. $ N/A .. .. .......... ...................... Estimated Market Value 'As Is' $ 710,000 Extraordinary Assumptions, Hypothetical Conditions and Limiting Conditions: There are no extraordinary or hypothetical assumptions for this "",. analysis. Refer to the limiting conditions in the addenda of this report Site Data Building Data Income Data Appraisal Ratios Site Size .41:!: Gross Area 14,130 SF GPI $ 93,042 EGIM N/A Excess Land N/A Net Area 12,831 SF Vacancy (Projected) 5 % Overall Rate 0.08 ~..Zoning NC Net / Gross 91 % Vacancy (Actual) 10+ % SF Net 0 SF Gross ~ :." Parking Number ofTenants 9+ Other Income $ 0 Price/SF $ 0 %$,' 5/41 Spaces Year Built 1900 EGI $ 88,390 Rent/SF $ 2.09 i' 0 Spaces 1000/SFBA Effective Age ~ Operating Exp. $ 31 ,792 Expense/SF $ 2.25 ;'; H & BU As if Vacant. Current Remaining Econ. Life ~ NOI $ 56,598 Expense Ratio 0.36 % use. H & BU As Improved: Current Use ,Owner Date Terms of Sale ;~' Most Recent Freeman & Freeman 3-30-1973 $ Outright Transaction 1\ PrevIous $ ,ii; Previous $ ",'Previous $ icurrenl Contract U Option: U Listing Price $ N/A i/o ~Buyer N/A Contract Price $ N/A ". 'Seller, N/A Closing Date N/A ",:naIYSls/Comm.ents: After reviewing the legal description, there appears to be no unusual title discrepancies. The realty transfer ",.!.X affidaVit of value stated $80,000 as full consideration. t . .~vironmental Problems Known or Suspected Yes 0 No (K) Cria~sls/comments: N? enviromental audit report was provided; and appraiserls presumes that there are no hidden or nor~llarent. C?!1dltlons of the property, subsoil or structures, rendering it more or less valuable. The appraiserls presumes 'S;-e. Sponslbllrty for such conditions, or for engineering required to discover such factors. P\'I'ight 2001 by The Appra', I F d t' All' ht d p""", uslo, ACI "nwa", .OO."4.'nT www.aclw.b.com sa oun a lon, fig s reserve , SUMMARY APPRAISAL REPORT :f1' , File No, 05-0069C U E PAGE 2 AREA DESCRIPTION '.' '.. t.p Stable Down I ),,:!:.,:' .II,",ULI "!U G.r~terJ'h.ipP..~,r:!..~p_l!.!'..9......~.reaL____ PoputatiCJrl T rl;lh1 (Xl 8 ~ I We s terngLJrTl.~~r!;J n.~~.Ql!"!!!y..!.~~..!ern Fran klin C ou n ty Employmen\ tft"~ncj" . . . . . . . !r: !.,': ,';:E':::;~:::'i;''':I:I :;"'""'>lie5 !3etail, Offi~.M,~,nufactu!ing,-_ Perscnai Inccrne Leve!s . . . . . fX'1 ~ Distri.blJti,o,n~,?'{ern.ment, Bankl~g~nd other Property Val"e Trend . . . . . ~ misceIl~!,e.ous ~q!'!lmercial employers Relarl Sales . . . . . . New Construction' , . . . . . . ~ Cr;:::-:ge \;"1 ECci\omic 8ase: . . . . . . 'Vndersupply Balanced O'Of ~ I,;:.;.fely 0 Li,.ely o Taking Place Single Family ~ ~ Frein 1':JiA Multifamily . . . . . . . . . . N/A Office . . . . . . . . . . . To Impact or, Property Vaiues. Retail' . . . . . . . . . . . . . r,(I pC';'llVe 0 None o Negative Industrial' . . . . . . . . . . . . , .-J ,:",-';:'to..;l'j: ~./.. r~,SI;~.'~ I"eg!eater Harris~l!!JlJ'.M..SA-Standard Metropolitan Statistical Area or Cen.~I....B~ion, comprising cumberla~cJ_'-~'!...lJp.!1J..rh.and Perry Countjes has a population exceeding 600,000. The hub of the area is Harrisburg, the state __c5eTtaLone~Ltll~J'!.r.~ cities in south central Pennsylvania, Cum berland County is located directly west, across the Susq~~llil.i'...na Rive.r.Jrom Harrisburg, Comprised of 550 square miles, It incorporates th.!! communities of Camp Hill, New cumberla~!::...~!!l,<:>::ine, Shiremanstown, Mechanicsburg, Carlisle, Mt. Holly Springs, Newville, Shippensburg, as well as n'Lj-me;rous townshLEs, The economic demographic, social and physical factors affectin!) the future marketability and value trendso(realestate in the subject locale include: an extensive highway network crisscrossing the region; expanding lici'j;uia\L~n-base, in.cluding availability of skilled and unskilled workers; as well as low unemployment rates ranging from 20;, -t04%. Continuil'!9. education Is available with many private and state supported colleges. The largest employer in the region i~9.pvernn!enh...which provides employment to over 20% of the work force. The area is expected to remain stable with supply and demand to be in balance for the foreseeable future, See addenda of this report for statistical and economic data, --'-'- ------ ....-\.. .." ','" ,.. .... '. ..... i . "\i(\ ] NEIGI1SdRHdd D' D ES C R I PTIO N . ~; (j'. f"l 'J E1 r I f:'~ IJl_E!...9.r:.E!~~!_~EEensbur9..~on, encompassing western Cumberland and eastern Franklin counties, Helgr,borhood DUllt Up 95 % Location - Rural ..,.,.. Suburb X Urban Lar,d Use: Single Family 5 % Office -1Q. % Multifamily -1.Q.' % Developmen\ iren"d' . . . . . - Up 4 Stable - Down 50 % Retail -1Q. % Vacant 5 % .... . .. . Industflal Value Trend - Up ~ Stable - Down Undersupply Balanced O'H'" Vacancy Vacancy Trend ........ - Up 4 Stable _ Down SO",," F,"',. . . . . . . . ~ ~ o to 5 % Rental Demand . . ., . . . _ Up ~ Stable _ Down Mclldamrly o to 5 % . .. . . . . . lJ!f'LP. ' , . . . . . . . ~% Change ietrd Use Re.I,J'i . . , . . . . . . . . ~% X Unlikely o Likely o Taking Place f: ,] c. ~~ tr i ~;' . . . . . . . . . 5 to 1 0 % From To -- . . . . . . . . . Renlal Role Range (Exclude Extremes) lor Subject Property Type: DI:HdflCS.C8D With in Miles From $ 4,00 ISFiYear To$12.00 ISFlYear Cll';lanCB.;;reeway' .. . .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 2:l: Miles Age Range (Exclude Extremes) for Subject Property TY8e Cklal"iCe-Plj!llic; Tr'ar)si}ort:1Iiol~1 . .. . . . . . . . . . . . . . .25+ Miles From New To?_ Years . . . .. . . .. . . . . . .. . !J':,~i:l)O":,] fir';perty U'C I!~ neighborhood is a mjxtur~ of office, retail, and residential uses, The subi.~..ct is located in the central. business district of the Borough of Shippensburg. ~.r:aIYSls/C;o~HT\(mts f~e-i3orough of Shippensburg is Iqcated in western Cumberland and eastern Franklin Counties. ~l~~Dsburg Is a rural community within driving 'oistance from numerous metropolitan' areas, Traffic flow around the ~~lect i~ moderate..!o heavy during normal busIness hours. There appears to be no adverse conditions, and the ~ghbC!L~C?~e..2<_p'ected to remain stable for the foreseeable future, -,- ------- W '>"PYI'ghl 7Uell by! he Appro"al Foundation All flglltS re:;erved PrOdkJelld USlfl~ AC! SOnW(\(&, 800 234 9tH wwwM1Web,(om I ! J"l SUMMARY APPRAISAL REPORT rJ' , ,I IJ Legal Description See legal description 00 See Addenda Site Size .41:t AC UsableLandArea 17860 SF Excess Land Area N/A N/A ~.~ Site Dimensions See legal descriptio~ - [J Street Frontage 102' + Current Use Allowable under existing zoning ordinance Gd Av Fr Utility: Provided By: TOPOgraphOO' ./ r Ingress/Egress. . . . . X Electricity. . . . . .. PENELEC Level X Mod Slope 0 Steep Slope 0 1],' . Street Frontag.e X Gas Penn Fuel At Grade X Above Grade 0 Beiow Grade 0 .. Shape . . .. X Water' . . . . . . .. Ship. Boro. Functional'Ulillly" . . .. X Sewer ........ CFJMA Yes No Visibility . . .. X Telephone' . . . . .. S print Corner Lot. . . . . . . . . . . . . . .. ~ ~ " Landscaping' . . . . . . X . . . . . . Underground Utilities .......... X :: Drainage . . . . . . X Street Improvements: Describe: Railroad Access . . . . . . . . . . . . . X IJ Adequacy o(UMties' :: X Street Width ..... 50'+, 2 Lane + parking Earthquake Zone ............ X . Traffic Pattern X Street Paving Asphalt Flood Hazard Area. . . . . . . . . . . . X I Traffic Volume ..... X Sidewalks ..... Concrete Map # 420368 0001 A Date 3.15-1979 t'.".] . . . . . Curbs & Gutfers' : :: Concrete Storm Sewers Yes " Lighting ...:::: Adequate I Soil Conditions Appears stable, from surface inspection only t]'" Easements None Apparent f. Encroachments Solar system encroaches over abutting property line, abutting property is owned by the Freemans. Analysis/Comments: There are no apparent adverse easements, encroachments or other adverse conditions. The subject property is bordered by Middle Stream Creek to the immediate west of the site. The entire site is located in a flood hazard t...,.'rj a~ea. To the rear of the site is a public alley, known as Martin Avenue, allowing access from both the front and rear of the ,. site. :"1-' , ,I ~] I ~'l Current Zoning NC Neighborhood Commercial Legally Conforming Yes Q9 No 0 ~,J Zoning Change: Not Likely Q9 Likely 0 To N/A , I Uses Aiiowed Under Current Zoning Refer to zoning ordnance in addenda of this report for list of allowable and accessory uses. ~:..'= Twent.Y-fiVe allowable uses, Seven conditional uses, accessory uses by permission. '.' ] Parking Spaces .......... ~ /1000 SFBA Set Back Requirements: I'" Total Building Coverage ......70 %orRatio........ Front ........10 FT Rear... 20 FT Ground Floor Coverage ...... 70 % or Ratio. . . . . . . . Side Yard ...... 10 FT Height. . 75 FT (] Analysis/Comments: The subject property conforms to the existing zoning ordinance. b I I Assessment Year 2004-05 APN 34-34-2415-019 ~ Tax Rate Year Taxes '">"J" Total. . . . . . . . . . . . $ 715,540 Total ..... .017512 Current Taxes ....... 04-05 $ 8,408.45 , Land. . . . . . . . . . .. $ 94,040 County .... .002352 Estimated Taxes N/A $ N/A ~~ Building(s). . . . . . . . . $ 621 ,500 City ...... .003110 Tax Assessment. '. '. '. '. '. '. ~ . $ .60 /SF I Other............ $ N/A Other.... ..012050 Year of Next Reassessment Unk. ~!'] Special Assessments: None L Reassessment issues: Cumberland County completed reassessment in November of 2004, effective January 2005, no future date has yet been set for future reassessment. I ~~. Analysis/Comments: Other under tax rate is for school tax. Real estate assessment is fair under current market conditions. ";J I ~ 1"" l~ @ Copyright 2001 by The Appraisal Foundation. All rights reserved. ProdUG'" using ACI software, 800.234,8727www,a,iweb,oom I ( ---- ..... U SUMMARY APPRAISAL REPORT . \ File No, 05-0069C PAGE4 IMPROVEMENTS DESCRIPTION U I ;',.;""'Ii 'I: (; !.V1i>:~9.,l,ls~ ()ffi.ce/Ap<lrtmen~,~. Construction Type F!~~._~,t~ndi,n9'.,__ ~:";;'Il':;:JS O_n e #Slones hljllJIJi:j Fluor Gross SF 'Net SF Use Type Net SF Use % 1_---..--- 1 11.L1~~ 10,047 Olfice . . . . . . 7050 55 I I j..---.--, 2"-'- 2,931. 2,784 Retail . . . . , . 0 U --.--.- I Warehouse . . . , 0 ------_.,--- ----- Manufacturing . . . . . . 0 --'--~--~- -------- ..- DIstnblJtion .. . . . . . . 0 -_._._~--- .--,.--~.----- 14,130 12,831 Research I Development. 0 , r I.' ~ ~ i . . . . I._.....::~ . . . . . Rentable Area (KJ Apts, etc. 5,781 45 ~ '\...J':.;1~)I€:.J.~e:~ l_ j r' (;:r b l~ ;~t .. . . . . . .. .. ~ . . "o. . . 1900 Parl<lflg: ~ ~ Industrial Only . . . . . . . b'ilidlrlg t:~:ICi6r,cv Ra[IO .. . .. .. . . .. . .. .. . o... .. . . . 91 % On Site . . . . . . . . . . . . # Overhead Doors . . . - , E!ft.ctl\Jb ,s.gt.. . .. . .. . . . . .. . . . .. . 20 Adequacy. . . . .. .. . .. . Floor Height . . . . . . - FT U-_. j Dial Ecm1cmic Ufe . . . . . .. .. .. .. ~ 50 Covered. . . . . . . . . . Ceiling Height . . . . . - FT R"If.dlrllfiJ Economic Lile . . . . . 30 Parking Garage . . . . . Column Spacing Fiocr Arlld RatiO . . . . . . 79 % Paved . .. .. ~ . .. . . . - FT x - FT t Ground Coverage Ratio . . . . . 71 % Number of Spaces . .. . . 5/41 RailrL5spur 0 ~ Spaces /1 OOOSFBA . . . ~ Yes No ;""/,I:,j..;:),n,,..;,,',s I_hl:l..~ubJect propertYJ,~_a office comE.!ex with seven residential apartmE!.!l.!~e entrance foyer. hall as well as utilitY!J,t..()Eilgi?J9Q.r1ls were deducted from gross building area for doctors office to determine net building area, Five ~ I pcr'cerit wasc!E!dLJ(;tE!~Ur.9m~g.L~~ building area of the aE.<1,rtment sections t9,..<:!.E!~~rl2l..~f!..et building area for those $cctioil'sa~~-""~II",_C,u.!re.njLY-!he oJ!!.~~_ad~l!L()!l.~~9..~~~(L9ut as indillldual,0ficel!Dlli..,,)he western portion and rear ;ire a's' c'u'rren. tlL~r gJe !!.~.E!~l}.e_l:l-,,!~eLn...fl.Qr:~l.9.!l.J~-'!.aca n t....l~E!_b..i,gJl.~~ tan 9.....~~LLJ~..E!.J()!...~I~Jfl.c:~..i1.!e a, a s it ex i s ts. is for on e or'two un iOts ~ ~ olll.t? rV~{~E!,~E!!l..Q.'{~l<2r1.~...s.I~().L:!!. d be u .l12..e.!lill.e.!:U() _.Il,!.'!.~lr1l.i.~E!...Q.v~~U_r.~t..lJ.!:.f.1..:...I h E!r~,l~_D1.i.I1.Lrl2.aLE...n2 i te park i n L- TIle abLlltl n-gparkin gl()tis ,<In il19 iyiduill PilrcE!1 ;th i s.!o,t..p~oVid es off street parking,forth e subject pro pertYil_n.~2.u.r:~o~!!. d inlL propertle~ owned by tJ1eJr~e.Il!.iln,s,.. ..,.......,_____... ".,._.___..__..._._._......._______,_______. ~ .-.~--_...._.---_.~-~-_.. ---- " Building DeScription Improvement Rallng \ rculldatlor, Reinforced Concrete/Stone ~-:r orne: . . . Brick/Wood Appeal/Appearance. . . . . . . . . . . Flour/Cover CarpetlVlnyl Floor Plan/Design. . . .. . . . .. ..... ,~cll;lI:J . . Drop Tile/Plaster Construction Quality . .. .... ., . ::^I~! IGf \\'i~)('; Brick Exterior Condition . . . . .. .... .ntr'A;:::Jr F:,:r1itior,s 'f'{god FraminglQiywalllPlaster Interior Condllion . . . . .. .. .. :\ocl~:;', ,,' Standing S.eam Metal/Fiberglass Root Cover . . ~ . . .. \ ;)i'j~n'J\r'lJ . . . . Adequate, Lab sinks, Kitchens, Full and Half baths Plumbing . . . . . . . . rlti:1tiJ.lg . . . . . (6) HP - Offices/EBB, Single HP - Apts, Heating. . . . . .... . . .. .. ':,Ir Ccndic:.::.r:ir,Q .. CA - Offices Air Conditioning. . . .. .. . .. . . . . .. Electrical 600 amp/Sub Panels Electrical . . . . . . . .. . . . . . ~ .. Elevator$ N/A Elevators . . . . . . . . . . X I Parr.lng . 4 Conc/41 Asphalt Parking Area . . . X t Insulation None Apparent Insulation . . . . .. . Sl~rlrlkler . . . . . . . . .. None, Hard Wired Alarms/Extinguishers Sprinkler . , X RIl:.i Supp~rt . . . . . . . . E!!lm e Landscaping . . . . . ~ . . . . . X !:t~"!.ting._._._ Solar hot water system, for heating and hot water f ._--~ - ,_. .., I :)i(f: Irr,prc,f.::;rnE:r:!s See.A!tached Addendum --..~--_._-~_. ~ I "er%nal Pr:)perty or Gttler :";on.Realty Interests Included in Valuation: (KJ No DYes No personal property has been included. .--- I '.'i.6Iysis/Ccmnents I!1~U~uildlng 15 in aVer,!ge condition. Periodj~c!.ates have extended t~.seful economic life of the ~f!1.l)rov~.~.~!!.~~,s_~_d on current desi9.!!.as well as use of the subject, its utillty, 10catio[1 in the marketplace and physcial attrip_u.!..e_sil~...I1.9.~~d..,,~-,!.e, the pro,,2erty's total economic life is estimated at 50 years, The remaining economic life of the t:l1;l11!!l!J.9...J~_~~tim<lt.e_~ at 30 years, ----.. ---- -, (J COPYflghl 2001 by J'he Appraisal Foundation. All rights reserved. Pfoduced using ACr sonware, 1100 2348721 wwwaciweocom I II --- '1' · SUMMARY APPRAISAL REPORT ~' File No, 05-0069C · r PAGES r-- .' ,.' HIGHEST AND BEST USE I '..,' c ,.:... :.'0:' .:,;' ~.:-> II' VACAi'H U I ' ," c' "",,,,. Th"~I,,,," no !"'YE.,"" "',~f N " '''''.0 ',h20~ .C.o!'L'TI.' ",, '~T,h","" 1"',,, 0" ..'.1"."1 Y "0 f oem 10 , "" " . and would be _ c om patj,b I~ .Y'i!~-.!h~.e sJapli ~he ~.(;t)~r..a.(;t~..r:...()f.ttl ~_n ei 9 h p.CJ_r[)?ocL_...._.... ,......__...... .,. .",._.._..,... ~...,. i: '~d'. '.~-=~....._..__._...~==-::==--=:,..__._..,_...._..__._,~==-='==-===......=~~..~~~.~.__._='......_.._..____ IU ;".(,., 'I ;,,'1 II: . 1"" PI' ysjCilU~~P(;)(;!s.qf..!I)~_si!~Irl} p()?_~Jh,~Uir.~t.~()n?!Iait1ts.()rUll~ Rossi blf,l"LJses.oLtJl.E? p"r()p~,t!y, Size, . sh<lp"ean~t()p_ogra pj~Y.~r(;) key d eterm in J.n ts of.Jll~y_~ic<l,U.:Lp1:>.s~L~!(;),_~s__~__,___..___... ,......,....... __.... I ----~- - ~ ~:;-; ~..:}f~.~~ :,~';~ (;) ~Jiies'l~ ~di~:~~~~,i0~ifdas~1le ~ j~~il&i~~~a]vt~~}srb~~~-s ~ ~ v(;)1 QP..!n..~Il,t.()Lth e site wi th com m e rc i a I ~~---~-~- _1-... !~:,-::~.~~:;;CIIV;=~~, The most productive' use of the site given the location is commercial/apartments. w.I'l ~~:Y.'!I;;!\.~0rr,'r'e"\S '.TIi-ej119.hest and best use of the appraised site presuming it to be vacant and available is r '_,,-en", ,,,I.,,, E"tm '"" ] HIOHEST MJD BEST USE AS IMPROVED: Legally Ferrnlssibie USf:,; The legal possibilities that place cantrols on the use are zaning, deed restrictions and set back re 9 u-'atio/1,~ ,."Th.e.i rn P'.~Q.I{~.'!I.~~~e.r,(;)~~/1tJ.~.~Y..Q. onfot..!!1.l,:!.g,:.~_~t...'!.~,~E~, com P~~l.L~i ~I,~, s u rro u n d i!l.9....properti es, c:u!r(;)Il!.b.,!:J.il~.l/19.C.Q,~,~~~pear to have been met as well as environmental regulations; therefore, a permitted use. f'-~I~,~;-:;;;;P;;~~IJl" '!'''''~-F>h.y~.i~.al aSE~gt~,of.!!1..~,E!.Cl.P~r.t~~Jl!.QY.~~~~l,lde the size,.~ign and conditian. The im flrov~m.f,ll1t~~p.flare.n.t!YJ:!1,~~t~,guire.!!1.~~i!.!:!~~~..!!Cl~.!-..E,(;)~~l'{e relatiye to the site's ca,Eacity. The physical layout is d_,,~i9r11O<.!..!<:>.E~.Q~id~il_9.~guate saf".!Y.3.!ld allow easy ingress and egress from the site and imllrovements, :::.;'.":~i-;;;;red;;bi~"us;s Ihe improvemen~ravide a return in excess of the land value as vacant and available, No other aJtE?t..f:lilti'y~~_~~.Q~:lJ~ economically justify demalltion af the improvements, 1,1dXIIT>8~ducll'/e 1:;;'0 If:!.(;).J1roperty as currently improved would be the maximum productive use and generate the highest return; therefare..L.l?!ofitable, /In,,lyslsl:~''rnrnents I.~.e_~L9.hest and best use "As Improved" is the existing use, --..------..---.,--------..- - ---~------~._--_._-- ..--..---------. .. . ..... . VALUATION METHODS SELECTED '. ................................ COS! Approad, 0 Income Approach [KJ Direct Sales Comparison Approach 00 Rf"j~Or"; for E.rludir,g ar, Approach. The Incame, and Direct Sales Approache~ were utilized for this aJlpraisal assigment; the Cost ~pproach was considered inapprapriate far this analysis, " MARKET VALUE ESTIMATE OF NON.REALTY ITEMS .... ,\1:'1(,01 Vo"Je 01 Personal Properly $ NtA Ma:',et Value 01 Olher Non.Realty Interests 'Mdr1E! tm::ll/d"etl. . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . '$ N/A TOlal Marr.et Value 01 Non.Realty Interests . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0 ilrdYSls/C()rnrnenls There were no. nan realty items cansidered for this assignment. '." ;'::;Pyrr,;h~ ~;~!J1 c-y The ~.PPf6IsaJ F::tUndatlon. All rights rE:served Producedu~ln9ACI$(lnW3rt,8002JU727....ww;)c.web,ccm """ j . . J COST APPROACH G INTRODUCTION TO COST APPROACH t. The \alue of the land and the improvements arc estimated separately in the Cost Approach, then added together to develop a value indication for the entire property by means of the Cost Approach, I I l L,1I1d is usually valued as if vacant and available for development to its highest and best use, For this I process. the Sales Comparison Approach is generally the most reasonablc method of valuation considered applicable This method involves comparing similar land sales recently sold or offered for sale with the subjcct property, as vacant; and a comparative analysis is made of factors affecting valuc. A sale seldom possesscs all the various chmllcteristics of the subject property to the same degree. Therefore, a judgment l11L1st bc madc in arriving at a final estimate or value or the land, Improvements arc valued based on overall square footage or cubic footage and other amenities that are ilSSoclClted with the propel1y. A nationally recognii'.ed cost scnice, supported by local contJactoresllmates, arc used to arrive at the value of the improvements nev\', DepreciatIon is e\'aluated considering physical concl1tion, fUl1ctional utility and exterior influences, then deducted from tile cost ncw assessment to arrive at a \alue for the improvements, In conclusion, the final estimated value of the land, the depreciated value of the improvements and other depreciatcd sitc improvcments are then addcd together to arrive at the conclusion of the Cost Approach. . , ~ r. (. Ii r SUMMARY APPRAISAL REPORT U . , U Data Sh eets Subject Comparable #1 Comparable #2 Comparable #3 Location/Address 67-71 West King Street 7 East King Street 486 East King Street 605-607 East King St. Proximity to Subject N/A .25 M He :t .50 Mile :t .50 Mile:t Map Reference 34.2415 34-2415 33-1869 33-1869 ~ Deed Reference 258-993 260-4319 196-1303 237-0881 Date of Sale N/A 12-2003 3 -19 9 9 1-2001 Exposure Time None Unknown Unknown Unknown Data Source Inspection Courthouse Records Courthouse Records Courthouse Records Site Size SF 0 Aaes [i] .41 :t .32 .80 .94 [ Frontage 102 + 54' 120' 203' Zoning NC C-1 C-2 C-2 Utilities Public WSE & G Similar Similar Similar Site Improvements Sidewalks & Curbs Similar Similar Similar L Flood Zone Flood Zone Non Flood Zone Non Flood Zone Non Flood Zone [ Unit of Comparison Square Foot Sales Price .. .. .. ...... .. $80,000 $175,000 $212,500 Price Per Unit" . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5.74 $ 5.02 $ 5.19 ( Property Rights'Coriveyed : : : : : : : : : : : : : : : : : : : : Fee Simple Fee Simple Fee Sim pie Adjustment 0 0 0 Financing .. .... .......... ........ .. ...................... Unknown Unknown Unknown Adjust"merit' . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 I Conditions of Sale .. .. .................... ........................ Out Right Sale Out Right Sale Out Right Sale Adjustment .......... .. .......... .. ...................... 0 0 0 Market Conditions .. .. .......... .......... .... ............ ...... .. Time +2% Time +11.5% Time +7.8% Adjustment ........ .. .. ...... .. .. .................. ...... 0.11 0.58 0.40 , Other Adjustments' . . . . . . . . . . . . . . . . . . . . . . . Location Similar Similar Similar T opograpliy' . . . . . . . . . . . . . . . . . . . . . . . . Similar Similar Similar Shape/Utiiity ...... .. .. .......... ...... .. .. .. .. .. .... .. .... .. Sim ilar Similar Similar i Utilities .. .. .. .. .. .. .. ........ .. .. .. .. ................ Similar Sim i1ar Similar I Site Improve'm'eritS . . . . . . . . . . . . . . . . . . . . . Similar Similar Similar .. .. .. ...... .. .. ...... ............ .. .... 10% Demo Exp. -.57 N/A N/A Non Flood Zone -1.44 Non Flood Zone -1.26 Non Flood Zone -1.30 I Total Adjustments -1.90 -0.68 -0.90 Indicated Value Per'lIni! . . . . . . . . . . . . . . . . . . . . . $ 3.84 $ 4.34 $ 4.29 Analysis/Comments: Time adjustment is based on a 2% annual appreciation rate. Sale # 1 was adjusted for demolition of its previous improvements, -10%. All three comparable sales are located outside of flood zone hazard area and are considered I superior, -25%. No other adjustments were required. t Reconciliation: After adjustments a range from $3.84 to $4.98 was indicated. All three comparable sales are from the direct market, with minimal adjustments required. Chosen value indicator $4.25 per square foot. Therefore 17,860 square feet times $4.25 equals $75,905. Say $76,000. Total Site Units SF 17860 Unit Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4.25 Estimated Site Value' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . . . . . . . . . . . . . . $ 76,000 ............ .. .. .. ...... .. .. ..... .................. "" ...... ........ .................. .. .. """ .. .. ........ .. .. .............. EXCESS LAND Excess Land Area Units: NfA N/A Unit Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Estimated Exce's~ i:a'nCl VJhle' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0 ...... .. ........ .. .. ...................................................... .. ........ .. .. ...." .. .. .......... .. .. .. .. .. @ Copyright 2001 by The Appraisal Foundation. All rights reserved. Produced using ACt softWare, 800.234.8727 www.aciweb.com D' · SUMMARY APPRAISAL REPORT nl Cost Source Marshall Valuation Services LJ Component No. Size Unit Cost Cost , $ $ == $ $ ~ $ $ l ~ ~ $ $ _ Reproduction U Replacement UCost New of Improvements $ [Pius: Indirect (Soft Costs) . . . . . 0 . . . . . . . . 0 . . . . . . . . . . . . . . . . . . . . $ :. Plus: Entrepreneurial Profit ........ 0 . . 0 . . . 0 . . . . . . . . . . . 0 . . . . . . 0 . . . 0 . . . . . '!,. 0 . . . . 0 . . . . . . . . . . $ . Total Cost New . . . . 0 . . . . . . . . . . . . . . . . . . . . . . . . . 0 . . 0 . 0 . . . . . . . . 0 . 0 . . 0 . . 0 0 $ Less: Physical Deterioralicin' . . . . . . . . . . . . . . . 0 . . 0 . . . . . . . . . . . . 0 . . 0 . . . . . . . . . '!,. . . . . . . . . . . . 0 . 0 . . . , Less: Functional Obsolescence' . . . 0 . . . . . . . . . . . . . . . . 0 . . . . . . 0 . . . 0 . . . . % .. . . . 0 . 0 . . . 0 . . . . 0 . f Less: External Obsolescence . . . . . . . . . . . 0 . 0 . . . . . . . . . . . . . . . . . . . 0 . % . . . . . . 0 . . . . 0 0 . . . . . I Total Accrued Depreciation (Deteriorafio'n '& 'ObsorescimOce)' . . . . 0 . . . . . . . . . . . . . . . . . . . . '($' . . . . . 0 . . . . . . ) - Depreciated Value of Building(s) . . . . . . . . . . . . . . . . . . . . . 0 . . . . . 0 . . . . . . . . . . . . 0 . . . . $ Plus: Contributing Value of Site Improvements' 0 . . . . 0 . 0 . . . . . . . . . . . 0 . . . . . . . . . . 0 . . . . . . . . . . . 0 . . 0 . . . . . . . $ ~ Depreciated Value of Improvements . . . . . . . . . . . 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 . . 0 . . . . . 0 . $ I Analysis/Comments Due to the ~~~ 'of i:h~ i'~ p;o~~';'~~ts' t'h~ 'coO'Sf ~pp;ooa~j, '~a'so do'n'sicieor~ci in'aop'p~~pri~t~ f~r' tOhe analysis. II I I I I I I Reconciliation: The Cost Approach was not developed for this appraisal assignment, no weight will be applied in the "Final Reconciliation" for this methodology. . I I .......,..................:...:/:::.::::}}})./HSUMMARyOI#COSmAPRROACRVAbWEINDleAmioNS.\+i):..................,..... Estimated Site Value $ 76,000 I. Plus: Estimated ExceSsoUlffd"VaIOe' 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 . . . . . . . . . . 0 . . . . . . . . . . . 0 Plus: Depreciated Value of Improvemllr1'ls" . . . . 0 . . . 0 . 0 . . . . . . 0 . . . 0 . 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 . Plus: Market Value of Personal Property anti Other'NM.Realty1nteteSts 0 . 0 . . . 0 . 0 . 0 . . . 0 . . 0 . . . . . . . . 0 . . . . . 0 . . . . . . . 0 Indicated Value Before Adjustment for Interest Appraisal 0 . 0 . . . . . 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ N/A Less: Adjustment for Interest Appraised . . . . . . . . . . 0 . 0 . 0 . 0 . . 0 0 . 0 . . . . . . . 0 . . . . . . . . . . . . . . . . . 0 Value Indication' Cost Approach - . 0 . . 0 . . 0 0 . . . . . . . . . . . . . . . . . . . 0 . . . . . . . . . 0 . . . 0 . . . . . . . 0 . 0 . 0 $ 0 Rounded' . . . . 0 . . 0 . . 0 . . 0 0 0 . 0 . 0 . . . . . 0 . . . . . . . . . . . . . . . . . . . . . . . . . 0 . 0 0 . . 0 . . $ 0 ..... .. ... .. .. ...... .... .. .. .. .... ............................................................ ........................ .... ...... .... .... .... @ Copyright 2001 by The Appraisal Foundation. All rights reserved, Produo.d USing ACI so"war.. 800,234.8727 www.aoiw.b.com . . INCOME APPROACH INTRODUCTION TO INCOME APPROACH The value of commercial property is strongly influenced by the amount. quality and derivation of the income, in lerms of rent, which it can generate for its owner. The Income Approach uses the potential gross renl which the property is capable of generating in today's market. less cxpenses and collection for vacancy and losses, to develop an indication of property's net income, The income is then cOlU1ted into an indication of the subject property's value by means of capitalization rate considered typical for the market, the type of properly being appraised and the area in which the propelty is located, The capitalization process "translates" net operating income into a present value indication for the property, It assumes a present worth of expected future benefits, There are numerous ways to deri\'e a capitalization rale, Most real estate investors require a mortgage when purchasing real cstate. lhe Band of Investment Techniquc is typically used, This method is developed by using mortgage rales provided by the lender or Crom surveys published by various research firms or organizations, Another method is actually taken from the marketplace, This method is considered "Direct Capitalization," Using actual sales prices and dividing them into the net operating income of the actual sale to deri ve a rate from the marketplace. There must be adequatc market data available to utilize this method, Typically, "Market Data" is available to extract a market derived capitalization rate, My/Our fJl1dings indicated a rate ranging from 8% to 10% for commcrclal, industrial and other investment properties within the greater Cumberland County and Capital RegIon, ./ Published market data from such sources as the American Councilor Lire Insllrance, AlJTJraisal Institute's Morkel ,)'OllrCes, Koroacz Report, The Roeckh Factor and economic reports supplied by local institutions typically provide data on a regional basis for institutional grade properties relating to market statistics, Capitalization rates, interest rates, equity yield rates, loan-to-value ratios and tenm can be extracted from thesc publications, These guides are broken clown into regions and property types, This information is typically used in supporting the local market conditions SUMMARY APPRAISAL REPORT · File No, 05-0069C PAGE 8 ......................HiNcoMEARPRoAcAIRENm.ltucoMBARAB8EBtllLOINGO!ESCRlpTloNs..>.............,.............. Data Sheets Att 0 Subject Comparable #1 Comparable #2 Comparable #3 Address 67 -71 West King Street 10-16. East King Street 9974 !"lolly Pitcher Hwy Wal!"ut Bottom Road Proximity to SUbject NIA .25 Mile :t .50 M'le :t 2 Miles :t Map Reference 34-2415 34-2415 21-N-11 33-1871 Year Built 1900 1950 1952, redone .1 ~92 1990 :t Gross Building Area 14,130.00 9,070.00 4,941 + Finished LL 8,050.00 Number of Stories Two Three One One Current Vacancy % 10%+ 0 to 5% 0 to 5% 0 to 5% Construction Type Free Standing Brk. & Fr., Interior Row Free Standing-Offices Free Standing-Office Construction Quality A verage A verage A verage Average c: nditlon Average to Good Average Average to Good Average to Good ~~rking 5/41 Spaces Adequate, 20 Spaces Adequate, 32 Spaces Adequate, 20 + Spaces Date of Rent Survey NIA 12-2005 12-2005 4-2004 Asking Rent $10.00 PSF 1$242-$437 $7.52 PSF 1 $275-$500 $8.05 to $14.52 $9.52 Lease Period Unknown Annual Terms Annual Terms Unknown Tenant Improvement .. Allowance None None None Unknown Concessions None Unknown Unknown Unknown Analysis/Comments: Property owners, landlords, and Realtors were contacted within the general market area to determine rental rates. It should be noted that lease data is not public information. Rental and miscellaneous data is retained in the office files in order to comply with the request for confidentiality. Comparable # 1 has 3 commercial store fronts and 10 residential apartments. Comparable # 2is a 6 unit office complex with finished basement area that is leased. Comparable # 3 is a single office building. The subject's high vacancy is due to retirement of the medical practice; after lease up period, vacancy should stabilize at normal market conditions, approximately 5%. I Subject Comparable #1 Comparable #2 Comparable #3 I ..... TenantName Var~ous Var!ous -13 Units Var~ous-6 Offices + LL Confidential I j Beginning Date Vanes Vanes Vanes Unknown i Term Unknown Annual Annual Annual 1 Lease Type" MG MG MG N ;. Tenant Size (SF) 200 to 1500 :t 500 to 1500 :t 253-895 :f: 8,050 ~.' Rent Per SF $ 10.00 PS F 1$242-$437 $ 7.52 PSF 1$ 275 to $550 $ 8.05 to 14.52 $ 9.52 i-Rent Concessions Adj. None None None None 'Adjusted Rent Per SF $ 10.00 $ 7.52 $ 8.05 to 14.52 $ 9.52 'Adjustment for MarKet Conditions NIA None None None AdJusledRentPerSF $ 10.00 $ 7.52 $ 8.05 to 14.52 $ 9.52 Location A verage A verage A verage Average Quality Average Average Average Average l ondilion Average to Good Average +.38 Average to Good Average to Good \ I :Jotal Adjustments 0.00 0.38 0.00 0.00 Indicated Market Rent $ 10.00 $ 7.90 $ 8.05 to 14.52 $ 9.52 \ "Lease Types: Gross Lease (G), Net Lease (N), Triple Net Lease (TN), Modified Gross (MG), Expense Passthroughs (P), , Sales Overage Rents (0 , Common Area Maintenance C), Renewal Options (R) ,nalysls/Commenls: The SUbject's rear office area currently leased is at a combined rate of $9.61 per square foot, not ~onsidering a utility expense adjustment. Actual rental income falls within current market rent conditions. Residential ;!nts that are currently charged are also within current market conditions. Normal leases within the greater Shippensburg narket for office and residential rentals are modified gross conditions. The greater Shippensburg rental market is stable, l,!? negative conditions are apparent. 4nima.' rental adjustments were required. Adjusted range $7.90 to $14.52 per square foot. Rental comparable # 2 with its, ~.52 .IS for a efficiency unit that includes utilities. The normal range for office rentals is $8.00 to $10.00 per square foot, ~IUdlOg utilities, chosen rental indicator $9,00. ~ '.!!rrently the rear office area is leased to multiple tenants, on a per room or unit basis. The existing layout of the !lJlro~ements is more appropriate for one or two users; building modifications would be required to maximize return. For ~Iysls purposes, the rear office area is treated as a single unit with the tenant paying their own utility expenses. L ~ ~ 'Yfight 2001 by The Appraisal Foundation. All rights reserved. P,.'",. "tog ACI ".w,ro, 800.23',8727 www.oc;w.b,"m . . SUMMARY APPRAISAL REPORT File No, 05-0069C PAGE9 .' SUMMARY OF SUBJECT LEASES I ; t:;! I ,,~", t Rented Beginning l L e d~ e <>..iff~n\ Effective Estimated Market ; jd!,;i; Area (SF) Date Term T ype~ ~...!1J!._ Rent Rentl SF Rent I SF Rear office 7 ,050 Unknown Unk, MG N/A 0.00 9.00 o1fic--e..s,:own -_. Room Unknown - Unk, MG --''3:084 I ,r,;j)[~Burke'-- Unit Unknown Unk. MG 2,904 ~Et.-Ngnang Unit Unknown Unk, MG 3,468 6.E.~~ n e Unit Unknown Unk, MG 5J?1i -- 6_pt-Plank . Unit Unknown Unk, MG 3,60.Q, ~ ~p!,;B a s ~E!..!!__ Unit Unknown D~ MG 4,776 ~PL:W <ll~.~__. Unit Unknown Unk:- MG 3,660. ~p~.:.fj.lJgb.E:1~..__ __...............n i t Unknown !Ink:.. MG 3,084 - I - -.. - --'-"'~----- - - - I 7,050 - 29,592 T olals 'Lease Types: Gross Lease (G), Net Lease (N), Triple Net Lease (TN), Modified Gross (MG). Expense Passthroughs (P), Sales Overane Rents 10\ r.ommon Area Maintpnance IC\ Renew~1 Ontions IR\ I ..'sUBJECTLEASETERM S . ..., . ..d ..... .... ..<<(< Existing Vacancy 10+ % Average Rent I SF $ 9.00 Typical Lease Terms Annual Range oi Conlract Rents ....$ 242 permo. to $ 437 per mo. Renewal Options Normal is a one to five year term I [";:'19" of Elfectlve Rents .. . . $ 242 per mo. 10 $ 437 per mo. Provisions for Rent Change Normally increases on annual basis E;(pen-:-e Pas'3tY,roughs . . . . . None g,~.!:1..!!','!~~!1~~.!"e_.for the residential units, Office area is Common Area Maintenance: None I ~jm'!.~$9,00 per square foot. TYPIcal T~nan\ Improverr,ents Allowance . .. .. .. .. .. .. .. .. .. None Rent Concessions None Number 01 Lea5es Expiring (12 Months) .... .. .. .. .. .." .. .. Unknown Square Feel of Leases Expiring (12 Months) .. .. .. .. .. .. .. . Unknown Rent Control Yes 0 No [K] AnalYSis/Comments ~1/ residential units are currently rented, rear office area is partially leased. Income analysis is based on stablized conditions. .. tNCOIVIEANDEXPENSEHISTORY AND FORECAST . . .... ..>..> inCGine Aclual Comments and Calculations Stabilized From to $ $ $ $ $ $ $ 3ross FGteritlaj jnCOnle $ 93,042 Gross Potential Income $ 93,042 Vacdncy and Collection . . . . . . . $ Loss ~% ( $ 4,652 ) Based on 5% of GI ($ 4,652 ) Other Income . . . . . . . $ 0 $ Effeclive Gross'/ricbme' . . . . . .. $ 88,390 Effective Gross Income $ 88,390 Expenses Property Taxes $ Based on current assessment $ 8,409 Insurance . . . . . . . . . . . $ Projected ~ 2.85% of GI $ 2,652 Prcperly Mahagerne'nl . . . . . . . . $ Projected ~ 5% of gross Income $ 4,652 Electricity . . . . . . . . $ House lighting only (est.) $ 600 Gi3S . . . . . . . . . . . . . . $ N/A $ 'NdIuISewf;r . . . . . . . . , . . . . $ Stablized from city estimates $ 1 ,800 Ji1fl!!orli11 . . . . . . . . . . . . . $ Estirnated @ $100 per month $ 1 ,200 M;,!:,tl,f'ld(J:f;: . .. .. .. .. .. .. .. .. .. .. .. .. $ Normal range is 5% to 10% of Gl, projected @ 7~ $ 6,978 rlVAC M8;r)ter~a.r,ce' .. .. .. .. .. .. .. .. .. $ Included in maintenance $ 1::16'/ Majl~ttnance . . . . . . . . . $ N/A $ Tr ash Removal . . . . . . . . . . $ Estimated @ $125 per month $ 1 ,500 Miscellan~ro\ls' . . ',~' $ Projected @ 2% of GI (le9..'!.I, accounting, advertising) $ 1,861 $ City ren tal licen s e fees $ 279 $ $ $ $ Reserves $ Based on 2 % of GI $ 1,861 Total Expense's' . . . . . . . . . . . $ 31,792 $ 31,792 l.Jet Operating Il1come'(ilJOlj . . . . . $ 56,598 Expense/SF $ 2,25 Expense Ratio 0,36 % $ 56,598 A;, i.~: ,/SiS/I': (j!""1 rn erl ts !?!.'!~jllze market conditions were utilized for this analysis, Normal tenant eXflenses were not considered in tl1 i~._e xJ),~n s~ s u!'! m.~ r~ '-;<.['Y"9'11 211'':>1 by The ApprJ'oal Founoalion All fights reserved Pro(1uc6cl US~\9 ~CI SOn'ffaf&.ll(jO~:U 1172i www,Jclwebcom i l . . SUMMARY APPRAISAL REPORT File No, 05-0069C PAGE10 DIRECT CAPIT ALlZA TION " OJe; dll fLjte ~drlgt __......Q.,,~to 0,09 Eqully D,v,dend Rate RangB 0,05 to 0.15 ()..t~rdli Rdle (Ro) = -'--6Jl7' Mortgage 0,80 x 0.0930 = 0.0700 Equity 0,20 x 0,1000 = 0.0200 Overall Rate (RO) = 0.0900 f~OI (RO) Estimated Value NOI (RO) Estimated Value - ~_.- 5~..:.5.~~ ! 0,07 "$ 808,543 $ 56,598 I 0.0900 "$ 628,867 ':"'jSI"":JlIII:""I'; Ad. V '!!!.C:.~~,rn.Q!J9,a9~._~.!1i!~ eth.9.dolog.Y....:;~(l!.~~~.~E.i!'!lLzati.9.i!...!~t~L y.ti,liziE19.l1U!. sin ki ng fu nd factor ()\,e..!'.--t!l~_PJ"slj,e.(;,~.c!,I,lQ~..QEi!E.~e addenda for analysis. A capitalization rate of ,0777503 was indicated, divided Into a neL~g@.U!1.~.rne of $56,598, equals a value of $727,949, Say $728,000, This estimation falls within the above range, !.i1_co~J..i:l.~.1on, a ra!,ge from $628,867 to $,808,543 was determined. The "advanced mo~~ equity calculation" stabilized !~,.~\'~~ll..!~~_sgl~c;tioD.L.and is considered the best value indicator per the Income Approach, Therefore, estimated value ~is methodology is $728,000. YIELDCAPITALlZATIONfDCF ANAL YSIS) . ... ...i.' ~'~Cio..:t rIG'b' P.rlc~YSIS 1(', AJewnda Yes 0 No lKl Mar~.et Renl Scenario Contract Rent Scenario FCirf:Co~H ~IO!dH'lg PerlOu Ejt;:gw:nirlg NOl . .. .. .. .. .. .. .. .. . . . . . . . . .. .. .. . ~ .. .. .. .. .. .. .. .. $ $ I~C, Patterr. . . . . .. . . . . ~ .. . . .. ~ . . .. . . . . . . .. . .. . .. . . .. . . . ReverSion Assum'pno'n' . . . . . . . . . , . . . . . . . . . . . . . . . . , . . . . Yield Rate .. . . . .. .. ... . ... . . .... . .. . . .. . . . ...... . . . .. Value Estlrnaie' , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ N/A $ N/A A"alyslsIComments: Not utilized for this analysis, -- - -. .... ADJUSl"MENTFORINTEREST APPRAISED ..i\ ..:......i> Valje ESflmate ' MarKel Renl Scenario $ N/A Value Estimate. Contract Rent Scenario' . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ N/A Difference (Adjustment for Interest Apprais'ed)' . , . . , . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . $ 0 AnaiysisfComrnents: Not utilized for this analysis. sUMMARY OF INcoME APPROACH VALUE INDICA TIONS .... ':..:. .... ........'...:..i. Val'Je lno,caled by Direct CapitalizationlYield Analysis (excluding excess land) $ 727,949 Plus: Estimated Excess Land Value . . . . . . . . , . . . . . . . . . . , . . . , , . . . . . . . $ 0 Value Indication. Income Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . , . , . . . . . . . '$ 727 ,949 Rounded ' , . . . . . . . . . . . . . . . . . . , . . . . . . . , . . . . . . . . . . . . . , . . . . . . . . . . . . . $ 728,000 ....... ~. ~ ~. ~.............. ~~... ...... ................o.o.o...o..........o...................... :opyright 2001 by The Appr&isal Foundation. All rights reserved Produ\,ed \lSlnll ACI soflwiire. 80023.(811:7 W'HW.3tlW!lb.com i I . . I I SALES COMPARISON APPROACH l INTRODUCTION TO SALES COMPARISON APPROACH , The Sales Comparison Approach is a method of estimating market value \vhere the subject property is compared wilh similar properties that have been sold This approach is based on the principle of substitution: therefore, r your appraiserls made a survey of properties that have sold in the general market area, As it was impossible to I. find an identical property to that of the subject, since no two properties are ever identical, it is necessary to make adjuslments on each comparable sale as to relate to the subject property, Consideration was given and adi lIslmenlS were made on each comparable salc as to the time or the sale. size. location and utility, as \vel! as other factors that may effect market value. The Sales Comparison is considered appropriate to most appraisal problems since it indicates the price paid for similar properties by knowledgeable buyers in the market place, This approach is applicable when there are sumcicntnumbers of comparable sales, This approach is most reliable when competing properties of similar nature arc bought and sold on a regular basis, FollowlI1g is the analysis and conclusion per the Sales Comparison Approach :1 Ii, I' I " J! II :1 I, I . r ~ SUM MARY APPRAISAL REPORT . . File No, 05-00Sge PAGE 11 DIRECT SALES COMPARISON APPROACH/COMPARABLE BUILDING DESCRIPTIONS '. ~> ""ts lilt 001 Sutject Comparable # 1 Comparable #2. Comparable #3 ..,1i; ....00. . I /.,dQrc,;s 67-71 West King Street 50 East King Street 85 West Kin~~ 31 West King Street ,'I Q.<.IDIIY '0 Sur.iecl NIA .25 Mile :t ,25 Mile :t ,25 Mile :t ',IL.,p F~ejere:',ce 34-2415 34-2415 34-2415 34-2415 >1ta Sou;:.e ~pection Court House Records Court House Re'cords - Court House Records L~ct;'j r~Sl'2;rf;rICe B25-993 264-3487 259-1413 263-657 (3ro'jS D!JiI,'Jrng .t\rea 14,130 6,888 9,468 9,139 ,\Ip,l e"_,l!tJ:r,g A(~a 12,831 Unknown Unknown Unknown SltC Size SFI_XJ ...\oe$ 0 17,350 6,098 8,712 5,227 ,_df"j-{:,;.E,..'ijrjir:] RallO 1,23 0 0 0 U:iJ( s,.),!: 1900 1950 1920/60 1920150 ~:(;: ':~t:Ij(.:;:~~ TYL'f:; E:lrl~ k & F r a.m ~.l..:tl!L.__ ~.rTc~ & Fr~r:!l..~_ln!:.BE.Yi. !:3~ _~...f'!~Q1_~ LE: r1. c!.._~ Brick & Frame, End ~ 'j:' <~';C.:I~);, O'J81ily (1.ver~g~._. ~.Y~i1.g e E~i.!:_!.2....A vera5l~.__,__ FiiTr-'toA v era 9 e : .,~ r ' :~ Ii.: ur I ~'L~ r a~Q...GQgd Fair to A'{~...r:.a...9~_ Fair ~---_._~_. Fair [iIJIJ!t)Cr cl Slurp:.;:; Two Four Two ."~--- T h re e i'.;~rrJ"J F41 Spaces Minimal Minimal Minimal _. gffice Area Only Similar None None l-1\!:~.C Otl,i;r !:!!1iLM.!!..____ Office's 17 Apts. fStFrt.J4 Apts,/1 Wh, 2 St.Frt./6 A,Ets':y,:rWh 1 St. Frt. /7 Apts, COMPARABLE BUILDING ANAL YSIS SubJecl Comparable # 1 Comparable #2 Comparable #3 51'19 Price $ N/A $ 185,000 $ 238,000 $ 218,000 Da!!; Dj Sa,~ NIA 8-16-2004 9-15-2003 6-2004 Exposure Time None Unknown Unknown Unknown f'rop"rty f.;lghts Conveyed Fee Simple Fee Simple Fee Simple Fee Simple I !'.djestmer,t 0 0 0 0 \1 FinanCing None Unknown Unknown Unknown Adjustment 0 0 0 0 Cor,ditions 01 Sale Outright Sale Outright Sale Outright Sale Outright Sale JI.dj'JSlrnent 0 0 0 0 Excess Land None None None None Adj'Jstmenl 0 0 0 0 IJor"":8ol:y Interests None None None None l\dJlj~!rnef'11 0 0 0 0 CElTtlrlls Adjusted Pflce $ --------0 $ 185,000 $ 238,000 $ 218,000 Other Adjustments Malket Conditions Typical Time+1% Time +2.3% Tlme+1% A,djus:rnent 0 1 ,850 5,474 2,180 LoCalio(i Average Average Average Average ,\djustment 0 0 0 0 ()U,'\'ly Average Inferior +5% Inferior +5% Inferior +5% Adjustment 0 9,250 11,900 10,900 Condition Average to Good Inferior +10% Inferior +10% Inferior +10% Ad}us\11\ef\\ 0 18,500 . 23,800 21 ,800 ~eal & Utility -.. Adju~:ment 0 T 0181 Other Adjustments 0 29,600 41,174 34,880 IndlGolod VaJue 1 . ;~ Per. SF $ o $ 214,600 $ 279,174 $ 252,880 ,:y ';,,1, ;',rl ~:ysl')lC:',Ulrn (;rl is Time '!Ejustment is based on a 2% annual appreciation rate. Quality adjus.tment, com parables 1,2, & 3 are ~1l9htIY.J.Dl~.~1Q!.overal~5% adjus..tme.nt was applied. Condition adjustment, the subject i~jor overall, a +10% " ,-~~-, ~,Qj.lJ...~!!lent was taken for compara)lles 1, 2, and 3, No other adjustments were required, 'j .,' iITferadJl.I~!..m._~ritsLcOml?!1rable # 1 = $31,16 per square foot, cOr:!l..parable # 2 = $29.48 per ~:.9..uare foot, comparable # 3 = lliRp-~.!'.Jig!:!...'!r.e foot. Chosen value indicator for front mixed use section of building is $30,00 per square foot. I ~~_rl.~-dir.~~..U;om,E~\rables in the Shlppensburg market with modern medical office ~ilce attached to older mixed Useci!.Pilr.!f!1..~.!lt buil.c!l!!.gs, A second set of com parables were reviewed, these sales were of medical buildings in !1~!g~lpo~lrl.g....t~w~A blended rate ~r square foot is determined and then used as the value indicator for the direct sales ~!!I.E~rJ.s_lJ.f.l..~o a c h. - - - - :e COPVr'"l1t 2001 by The Appraisal Foundation All rights re~erved P{llduced using ACJ SOn'NJre. 8002348721 ....wwaciwllbcom ~' I SUM MARY APPRAISAL REPORT ! i . File No, 05-006ge !..l! I DIRECT SALES COMPARISON APPROACH/COMPARABLE BUILDING DESCRIPTIONS 456 . { ,. S:,,;~;i'~ f~~: :,_0.,; Suble0\ CornpdUibie li~ :;On1par?t:(;::~ Comparsble #6 L, ,..j:'8'" ! I~Ll1.West Kil],~eet 760 E, Was.bl.!!gton Ch~100 S.Hig~~L)':!.ew~!~ ;""'il"\l I', S',lJ}2CI i NL6___ .~_ lQ_MJles :!:,____ 10 MII.~s:t .___ II,,,,, "81f;(',:,C8 I' ~<I.:..~.1.1.5_____ Ql.-1E..:..12-7~___ 20-1756 _.._ i.' ,'"~I" SC'iC.'" !.~~ection Court House Records ~~\ion________ t ~;i,d RelG'ence 1.325.993 1599-554 252-0883 '-',,[rrs tl';,J"<iJ Are" I _____l~~_EQ. _~,~ --.id.11 !,I;: i: IIi,];:,} A,,!i.-l, i'~i _ 12,831 Unknown 6.d11 . S,'.[, Size SFl~ Aaes l_Ji 17,350 .8276 ,93__ i I 1.~I(j'lc'.n'Jd:JIC,g RiltlO 11.23 1,48 6,42 14 r',,";Sui:, ill.9 1987 1995 ;';(,':C;L,:,.;:, 11'1'" . Brick & Fra!11e, End Free Standing-Office Free Standin\L:Office ';"'.S\;i,C!:j, C)IJ8iily I fl,verage Avera~ Average ~'.' CC.',iJ:iIU:'1 I Average to Good Average to Good Average to G09d .. [<'j'I,Ler 0: SIOut'i Two OnE! & Half One , ;)"rfil,1) ~C4.L~p_~es AdequatE! A~quate /ivr..,; 9..!!ice Area Ol'!.!.i'__ Similar Similar I Oill'" !:!..t:ll!JY1~_ Office's 17 Apts. ME!dlcalOffice ME!dicalOffice COI\l1PARABLEBUILDlNG ANALYSIS 456 I i Subject Comparable #4 Comparable #5 Comparable #6 Sale Price $ N/A $ 464,325 $ 575,000 $ 1).'IIp. 01 S,,:Jj NIA 1-16-2001 6-2002 ;:~jJ''''''''' ;illll, frone___ Unknown None Ii 1'((;Oi';,ty P<'(JiIlS ConvJjYf;d Fee SimplE! FeE! SimplE! FeE! Simple !i fldI',sllnenl 0 0 0 Fin%CII'lg None Unknown Conv. Bank Terms F.dlusimerrt 0 0 0 Condltio;,s 01 Sale Outright SalE! Outright SalE! Outright SalE! Adjustment 0 0 0 ; Excess Land NonE! None NonE! Jl.dju'ilmenl 0 0 0 ~Jor;.Realty Inlerests None None None Jl.d}iJSlment. 0 0 0 C[nerms Mlusled Price 1$ 0 $ 464,325 $ 575,000 $ Gther Adjustments: Market Conditions Typical TimE! + 8% Time +5% AdJustmenl 0 37,146 28,750 LUC3cIQr, A VE!rag E! Su perlor -5 % InfE!rior +5% fld}usrment 0 -23,216 28,750 QualllY AVE!rage Average AVE!rage AdJuslment 0 0 0 CondIlion AVE!rage to Good SupE!rlor -10% SupE!rior -10% . AdJuslment 0 -46,433 -57,500 I ~peal & Utility SupE!rior -10% Superior -10% AdjustmenJ 0 -46,433 -57,500 TOlolOther Adjustments I 0 -78,936 -57,500 ~ Indicated Villue ' , Per SF _ $ 0 $ 385,389 $ 517,500 $ 0 "Ii"'Y'iiSiCVnmClds AdjustmE!nts: Time adjustmE!nt Is based on 2% annual appreciation, location adjustment, comparable # 4 i,?2.LJ.E.~JQ!..~~~~~q!np"arablE! #5 is inferior +5%. Condition adjustment, both com parables ~re newer buildings and oVE!rall il.r~.~.LJjJ~r:l~<';'()I1,cJl.U2.!:!_.10%. AppE!al and Utility, both com parables arE! stand alone buildings and greater oVE!rall markE!t il.,e.e.El_'!l.f~t.!lere <:l~~lgned use, -10%. No other adjustments required. ~.!.~~r:...<l..c!iustm~_~.~LGQmparablE! #4 is $69.00 pE!r squarE! foot, Com parable #5 is $82,00 per s..9.lJi!.re foot. ChosE!n valUE! ~ndicat~r for rear_'!l,~,jcal office section of building is $70,00 per square foot. - - C) Copyright 2001 by The Appr alsa! Foundation All rights reserved ProdUC80 using ACI sol\war$,SOQ.n.U727 "ff"'fIf.a(l'ft.b.ttlm 11:1 ~ , . SUMMARY APPRAISAL REPORT File No, 05-006ge PAGE12 FEE SIMPLE OPERATING DAT A AND RATIOS ~ Comparable # 1 Ccrnp8r ,:icie ;;2 Comparaole #3 :.~! :~.~'> f.<..:i(;;.llbi :j-Icume $ $ $ \/.1::;':if'CY ,,",,1 C:Jllecti0rl Lti'~s' o/~ . . . . . . . . . . . . . . . . . . . . . [:lI~.:,;ilve ':~fO~'::' fr,C-OrnE-: . . , . . . . . . . . . . . . . . . . . $ $ $ I Up[~rdtlng Expenses . . , . . . . . . . . . . . . . . . . . . . . . $ $ $ :expenses/SF Gross Builoing'Are'a' . . . . . . . . , . . . . . . . . . . $ o $ 0 $ 0 Expense F'8110 . . . . . . . . . . . . . " . . .. . I~et Oper BUng Incom'e' . : : : : : : : : : : : : : : : : : : : : : : : : $ $ $ EGIM Overall Rare' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00 0.00 0.00 Equity DiwJena Rate: : : : : : : : : : : : : : : : : : : : : : : : : : LEASE[)FEEOPERATINGDATA AND RATIOS (IF APPLICABLE) '3ros::; PC1le:"ILioi ~['\corn(-; $ $ $ I VC1:'.:i1fICY j",d C;)i:ecliorl LcO:.-;; % . . . . . . . . . . . . .. . . . . . . . . $ $ Ellr;Gllve l~russ Income . . ., . . . . . . . . . . . . . . . . $ Operating Expenses . . . . . . . . . . . . . . . . . . . . . . . . $ $ $ Expenses/SF Gross Builolny'Are'a' . . . . . . . . . . . . . . . . . . . $ o $ o $ 0 Ex~ense HallO . . . . .. ~ . . . . . . . . . . . . . Net Operating Incom'e' . : : : : : : : : : : : : : : : : : : : : : : : : $ $ $ EGIM ()'Jf.tel! F~<::l~e' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00 0.00 0.00 Equity D"lidena Pale' . . . . . . . . . . . . . . . . . . . . . . . . . /1.(1 a:t~15!'~ em me:'1 ts: !!1_~.l.J.!fj.2J~marke.!..data. availiable to complete this analysis. . -----~---- --- .-"-....--- -_..__.._-~~~-_.,-_..._---,~--~----_. i ._-----_._~~-_._--_.~.__.- ------------------- ._-_._~----_._-----_._._,- ~-_._._-_._._-----+_._..- --,---_.__.~----_._._..- ----------- --, DI R ECTSALES COM PAR IS ON .APP R OAG HIV AL U E CAL C U LA TION S ....... Vaiue Estimate SF 14,130 Value Per Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 49,96 IUnit Value Estimate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ $705,900 . .. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .. ~ .. .. .. .. .. . .. .. .. . .. . .. Effective Gross Income $ N/A Ellective (3ross Income Murtiplier'(EGI"")' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " . . . . . . . . . . x N/A Value Eslimale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ $0 An2.lysls/C ,~;rnrr, ents LV'{,Sl..analysis were com..eleted to determine a prLce per square foot for the...?ubjecLE!Qperty. The first il_nilU'~i~_V'{,<l,~.!..q!....!I]~..Jrot!.!..2ortion of the building, chosen value Indictor was $30,00 per square foot. A second analysis was f~.U!l~_C~.'!Lr:!1e~J.~~.U}_~!tio.!lof the buildi!,g, chosen value indicator was $70.00 per square foot. These indicators were Q1~!l9.~.Q...to arri~!lt a overall price per square foot of $49.96 as the main indicator for this property, r.b~ref2~ fronLP..2!tion 7080 square foot times $3Q.OO equals $212,400, rear portion 7050 square foot times $70,00 equals $493,500, Combined value equals $705,900 or$49,96 per square foot. Say $706,000, SUMMARY OF DIRECT SALES COMPARISON APPROACH VALUE INDICATIONS ..' Value IndiG8\ed by Direct Sales Comparison Approach (excluding excess land) $ $705,900 Plus Estimated Excess Land Value ... .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . .. .... . .. .. .. .. $ 0 Plus. AdJuslmenllor Interest Apprais'ed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0 VBlue Indication. Direct Sales Comparison' Pipproa"cti . . . . . . . . . " . . . . . , " . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . $ 705,900 Rounded .... .... .. .. .. ...... .. .... .. .. .. .... .. .... .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. $ 706,000 .. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .... .. .. .. .. .. .. .. .. .... .. .. .. . .. .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. . . .. .. . .. . .. .. .. . e Copyright 2001 by The Appraisal Foundation. All rights res8rved Produced uSing ACf 50nW8r!l, 800 23-48i2.7 www acr~$b,com ! '1 . , SUMMARY APPRAISAL REPORT File No, rf! Cost Approach Indication N/A Income Approach Indication' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 728,000 Direct Sates Comparison Approach' Indication . . . . , . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $ 706,000 . .. .. .... ................. . ....... ....... .......... .... ........ .... .. Reconciliation Direct Sales Comparison Approach: An estimation of value is developed by comparing similar properties that have recently sold and are similar in size, location, utility and other similar factors. An extensive search was undertaken for com parables properties. All information was verified through appropriate sources and considered accurate, The market sales were then adjusted and compared to the subject to arrive at a value per this approach. Analysis Value $706,000. Income Approach: Potential gross in com e of the su bject property was analyzed and com pared with other income and expense statements from comparable type properties. Vacancy and loss, based on the study of similar gross incomes, were subtracted to arrive at an effective gross income, Net operating income is then capitalized at the overall capitalization rate to arrive at a value per this approach, Analysis Value $728,000, The Cost Approach was not utilized for this appraisal assignment. In conclusion, considering the purpose of this appraisal and the type of property being appraised, the Direct Sales Comparison Approach warrant/s most emphasis with the Income Approach supporting the value, Reconciliation Value, $710,000. Estimated Exposure Time: The exposure time, based on current market conditions, for a property such as the subject is between six months and one year in accordance with Statement 6 of USPAP. Extraordinary Assumptions. Hypothetical Conditions, and limiting Conditions: Refer to Certification and Special Conditions in the addenda of this report. Estimated Market Value "As Is" $ 710,000 Effective Date of Valuation .. .... .. .. .. ...... .. .... .. ........ ...... .................... .... .. .... ...... .. .. ...... .. .. ...... .. .. .. .. .... .......... 07/02/2004 Market Value of Personal Prdperfy'ln'c1udea in !\ppraisal' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ N/A Market Value of Other Non. ly'lnrerests Included il'f7'lppi'Sis .. .......... .. ...... .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .... .. .. .. .... .. .. .. .... .. .... $ N/A Appraiser #1 ~ Property Signature Date ooPected Name 03/24/2005 Yes X NoD Certllicollor, June 30, 2005 Appraiser #2 Signature Yes 00 NoD Name 03/24/2005 Certification Appraiser #3 Signature Yes D NoD Name Certification No.: State: Exp. Date: , Legal Description X Land Lease Support for Non.Realty Interest Valuation Subject Photographs' . . . . . . . . . . . . . X Segregated Cost"Sneef . . . . . . . . . . . . Support for Adjustment for Interest Appraise'd' . Area Map .. .. .. .. .. .. .... .. ........ X Soils Survey Map .. .... ...... .... ........ Copy of Easement Neighborho6d'Map' . . . . . . . . . . . . . . X Subject Leases .. .. .." .... ...... ...... ...... Appraiser Qualifications' . . . . . . . . . . . . X Zoning Map .. .. .. .. .. .. .. .. .. .. .. .... .... X Rental Comparab1e'[Jafa 'Sflfiefs' . . . . . . . ...... .. .. ...... ........ Flood Zone Map' . . . . . . . . . . . . . . . X Rent Location Map ........ .. .. .. Topographic Map .. .. ... .. .. .. .. .. .... .. ........ DCF Analysis .. .." .. .. .. .. .. .. ..... .. .. Site Sketch .. .. .. .. . .. .. .. . .. .. .. .. .. .. Improved Property Sales Data Stieets . . . . - X Site Plan .. .. .. .. .......... .... .......... .... Building Sales Location Map Building Plans' . . . . . . . . . . . . . . . . . Copy of Deed .. .... ...... .. .. .. X Tax Assessmen! Cara . . . . . . . . . . . . . X Contract of Sale' . . . . . . . . . . . . . . . Land Sales Data Sheets . . . . . . . . . . . . Construction Cos1 Co'nfra'ct" . . . . . . . . . . Land Sales Map .. .. .. .. .. .... .. .. .. .... Support for Personal Property ~a1uation . . . . . . .. .. .. .. .. . . .. .. . .. .. .. .. @ COPYright 2001 by The Appraisal Foundation All rights reserved, Produced using ACI soflware, 800.234.8727 www.ociweb.com SUMMARY APPRAISAL REPORT t_ File No, OS-0069C . PAGE 14 r DEFINITION OF MARKET VALUE t The moo! probable prce which a property should bring in a compelillve and open markel under all conditions requlsile 10 a fair sale. tbe buyer and seiter each acting prudentl\ and knowledgeably and assuming the price is nol affected by undue slimulus. Impllcil In this definillon is Ihe consummation of a Sale as of a speclflen oate and the passing of tille from seller to buyer under conditions whereby: (1) buyer and seller are typically mOllvated, (2) bolh I parlles are welllnto'med or well advised. and acting in what Ihey consider their best Interests: (3) a reasonable time is allowed tor exposure :11 the \1pen market 4, payment is made in terms of cash In U S dollars or In terms of financial arrangements comparable thereto. and (5) the price - I (ep(e~en[s the norma consideration for the properly sold unaffected by special or creative financing or sales concessions granted by anyone associated 'Nllh IhE: saie 1 U SAP 2001 Glossary - L ASSUMPTIONS AND LIMITING CONDITIONS ..1 t 1 A, "gleea upon wlln Ihe client prior to Ihe preparation of thiS appraisal, unless otherWise Indicated, thiS IS a LImited Appraisal because It Invokes r I Ine Jeparture P, ,VISion of the Uniform Standards of Professional Appraisal Practice As such. Inlormallon pertlnenl to the valuation has not been j conslderea andlel the full valuation process has not been applied Depending on the type and degree of limitations. the rellabillly of the value conclusIon prov ded herein may be reduced, ; 2 Unless otherwise 'ndicated, this is a Summary Appraisal Reporl which is intended to compty with the reporting requirements set forth under Standard U Rule 2.2(b) of the Uniform Standards of Professional Appraisal Practice for a Summary Appraisal Report As such. It might not include full dISCUSSions of Ihe data, reasoning and analyses that were used In the appraisal process to develop Ihe applalser's opinion of value Supporting documentation c01cerning Ihe data. leasoning and analyses IS retained in the appraiser's file. The ,nformation contaIned In this report is specific to t1 the needs of the clienl and for the intended use stated In this repor\. The appraiser IS not responsible for unaulhorized use of Ihls report. 3 No responsibility s assumed for legal or title considerations, Title 10 the property is assumed to be good and marketable unless otherWise stated In this report 4 The property IS oppraised free and clear of any or all liens and encumbrances unless olherwise stated in Ihis report. ~ 5 Responsible ownerShip and competent property management are assumed unless otherwise slated in this report. 6 The Informallon furnished by others is believed to be reliable, However, no warranty is given for its accuracy, 7 All engineering is assumed to be correct. Any plot plans and Illustralive material in this report are included only to assist the reader in visualizing the property 8. II is assumed th,d there are no hidden or unapparent conditions of the property, subsoil. or structures that render il more or less valuable No I responsibillly IS assumed for such conditions or for arranging for engineerrng studies that may be requl(ed to discover them 9 It IS assumed thai there is full compliance with all applicable federal, slale. and local environmental regulations and laws unless otherwise stated in this report 10 It IS assumed th,,f all applicable zoning and use regulations and restrictions have been complied with. unless a nonconformily has been stated, defined. and considered in this appraisal report 11 It IS assumed th,", all requlfed licenses, certificates of occupancy or other legislative or administrative authority from any local. state. or national governmental or private enlity or organization have been or can be obtained or renewed for any use on which the value estimates contained In Ihl5 'eport are based 12 Any sketCh In thiS report may show approximate dimenSions and IS included to assist the reader in visualiZing Ihe property, Maps and exhibits found In thiS report are orovided for reader reference purposes only No guaranlee as to accuracy IS expressed or Implied unless otherwise stated in this re p on No survey has been made tor the purpose of this reporl. 13 It IS assumeo thai Ihe utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or Irespass unless otherwise staled in this report 14 The appraiser IS not qualified to detect hazardous waste and/or toxic materials. Any comment by the appraiser that might suggest the possibility at Ihe presence "f such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic mateflals, Such determination we uld require investigation by a qualified expert in the field of environmental assessment. The presence of subtances such as aSbestos. urea,formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property The appraiser's value esllmate is predicated on the assumption that there is no such material on or In the property that would cause a loss in value unless otherwise stated In thiS reporl ,'.Ie responsibility IS assumed for any environmental conditions. or for any expertise or engineering knowledge required to discover I h e rn The appra,ser's deSCriptions and resulting comments are the result 01 the routine observations made during the appralsat process. 15 Uniess otnerWlse ~.tated in this report. the subject properly is appraised wilhout a specific compliance survey haVing been conducted to determine " Ihe properly 13 or is nol in conformance with the requirements of the Ameflcans With Disabilities Act The presence of architectural and comlllunlcatlons "arrlers that are structural in nature that would restrict access by disabled individuals may adversely affect the property's value. ma(<arablllty o I I) t i Ii t Y 16. Any proposed Improvements are assumed to be completed In a good workmanlike manner in accordance with the submitted plans and specifications. 17 The distribution. if any, of the lolal valualion in Ihis report between land and improvements applies only under the stated program of ulilization. The separate all'lcations for land and buildings must nof be used in conjunction with any other appraisal and are invalid if so used, 18. Possession of thl~ report, or a copy thereof, does not carry with ',t the righl of publication. It may not be used for any purpose by any person olher than Ihe party to Nhom il Is addressed without Ihe written consent of the appraiser. and in any event. only with the proper written qualification and only in ItS entirety 19. Neither all nor ani part of the contents of this report (especially any conclusions as to value. the identity of Ihe appraiser, or the firm with whiCh the appraiser IS connected) shall be disseminated to the public through adverlislng, public relations. news sales. or olher media without prior written consent and approval of the appraiser. Th~QQ!ajser/s.ls_not reqUired to give testimony or appear in court because of having made the appraisal with the reference to the property in question, unless arrangements have been previously made thereof, Disclosure of the contents ()..!.Q1~.Q!aisal ~~port is governed by the Bylaws and Regulations of the Professional Appraisal Organizations with which th~i!.Q.fl..!:..ais~I/s is affiliated, On all appraisals, subject to satisfactory completion, repairs or alterations, the appraisal report and value conclusion are contingent upon completion of the improvements in a workmanlike manner. Any changes to this ~~2.ortJ:.E!.9..l:!lred ~Y.!.he client must be addressed within 30 days of receipt of written aQQ!:aisal. Acceptance of and/or use of this~.Qrais~ort constitutes acceptance of the foregoing assumptions and limiting conditions, r Produced usm~ ACI sottware 800 2348727 www aClwebcom I (f) Copyright 2001 by The Aproralsal Foundation, All rights reserved, ~ U ~- . . SUMMARY APPRAISAL REPORT File No, 05-0069C PAGE15 1.- '. CERTIFICATION t-- I ;:""Ii, Illal. 10 II", ',"sl 01 my knowledge and belief I !hf:: S!dlE;rr1ents of :8ct contained in this report are true and correct r "", "~',r:"J :;;od'Y';"". oplr,icns. and conclusions are limiled only by the reported assumptions and limiting conditIOns and are my personal impartial, 6nC..:nbli:l"jE:d proksslOnal analyses, opinions and conclusions - ..' I n.',," no (01 the sp',cliled) present or prospective interest In the property Ihat is the subject of this report and I have no (or the specified) personal Interest with respect to the partlC::S Invc,lved t I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment ..' my engagement in this assignment was not contingent upon developing or reporting predetermined results .., my compensation for completing this assignment is not contingent upon the development or reporling of a predetermined vatue or direction in value Ihal lavors the cause of the client, the amount of the vatue opinion. the attainment of a stlputated result. or the occurrence 01 a subsequent event ~ dlfectly related to the Intended use of this appraisal i l .., my analyses, opir,ions, and conclusions were developed, and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice ~ ' Ilave (or have nol/ made a personal inspection of the property that is the subject of this report (If more than one person sighns this certification, the :"f:,i,edIIGI, mcsl clearly specify which Individuals did and which individuals did not make a personal inspection ollha appraised properly) roo (He provided significant real property appraisal assistance to the person signing this certification (If there are exceptions, the name of each individual i providing Significant real propertry appraisal assistance must be stated) A!J,~Q~!usions_'!.[1.~L2JlJ..!1.10ns concerning the real estate that are set forth in the appraisal report were prepaJed by the ~fJ.p'r.~l~er/~!.:"h~~~...s,i.fL.~':!L~~rs on the report, unless indicated as "Review A~Lse(', No changes of any item In the :1 ~p'p'gi~.L!~or~.ll~J.IJ?e mad~...E.Y.A.t:!.}'one other than the a,2pralserls, and appraiserls shall !lave no responsibility for any I ~.~ (;h..l.J!:1..!IJ:l!_hS>J:L~l:!d.c;b,.'!~~_Q1J!l~9...'!te of th is a p prais ai, S teve~W, Barrett, th e u nd ers i.9...!!.l:!.d a ppraise r, ha scorn pleted tJl~..r.!,.gLJJ.r:.l:!r:!lg.!1.~~_of.,~!le Continuing_Education Program of the Appraisal Institute and thg_Amercian Society of Appraisers, -----_._-------- --- ---~._-----_._.._-_.- -- ---"..~-- ,...-----'-.-- .~_._._-_.. ~.._-_.._--_.._.._,-. - - .'._n ......'.," _~~_____ _..______ i I -, I ----- Appraiser's Signature -s-::___ 0 V 7-.7--- Date 03/24/2005 Steven W. Barrett, SRPA, SRA Stale Certification # GA-000298-L Certified GeneraT'Appraiser i c;) Copyright 2001 by The Appraisal Foundation. All righls reserved Produced USing "CI sonware, 800.234.8727 www,aCIWllO.com J. . '.' (" 1- 7/ n /(7 -- J .",AT, ,~'.."." ,..... "..~ ,.-. A~ ., ".. 1I..",rr II_II, Iflt., 1",4,..,..., I'~. J ~bi~ ~reb, J MAW; TilE: )Oth rlnv',1 'IHcn in lite jledr · "1"lIrLur'rlII"'fllno,,,,,,,',,,"rh,,,,,lrcd and seventy' three (1973) ~'I l:f:T1n't:,V fl. n. ~lJ.LLFil. I;o.;C.. a corporation dull' orrnni:ed and , I e~istinr under,the l~ws oftne Co~~onwc~1th of,Pennsy1vanla. , wIth Its prIncipal orflce 1n ~he horourn of Shlppensbur,. Cumberland County. Penns~lvania. party of the first part as :1' 1 Gntlllor . I, \~ ,,,,,, I ~ NILL!'\"! A. rnr:r.HAN of the TO\H\ship of Shippenshurll. lInd ! ALOERT W. FREE~~N of the Rorourh of Shippensburr. both in the County of Cumberland ;jn,) Commom~ea1th of Pennsylvania. ~ parties of the second part as J GrllfttH S: WITNESSETH. thai ill cnll,,"'/crllliofl of O:;E ($1.00) ________h___:-____.____...:.. - . . . - . . j i~-I~~,~ ~;,~~ ;h.r-r.r~r~':I.I:,I;r-r:;r"~: ~':;C~'~ :~k-II:~';r;{;,I:"~ ~;'c-.:n-j,; ~:II'II~;r" ~:~; - -h~:f'b~a:::; J fL"rlfO>ll'rllfntllt"nirlllrllfltcrs, ALL thnt corelll1 trnct of land with the improvements thereon. situate in the norourh of Shippensbur~. COU1\ty of Cumberland and CommoNWeal th of Pennsylvania. bounded and described ~ as follows. to-wit: ' J nr.r.INN!:-1G at a point in the huildinr line at corner of property now or formerly of H, Lucillo ~alters (ox. which point is thirteen (13) feet from the curhline of ~est Kinr Street: ~ thence by the bui1din~ line alol1~ West Kin~ Street. South I f i f t y . s eve n (5 7) de r r e e s for t y . f h' e (4 S) ~ i :lll t e s I': est six t y . three (63) feet to corner of hui l,',inn on this trilct. which is nlon~ the ~Iiddle Sprin~ Creek: thence f0110\dn~ the said creek the folloHinr courses nnd rlist.1nccs and alon~ the face I of said huildinr.. ~orth thir.t,--t\,O (32) ,lcnees five (5) minutes \Vest one hundred cleven and fift\' hundredths (111.50) feet to corner of hili IdiM: thence ~:orth wenty-four (24) de r r e e s n i net e e n (l 9) 01 i nut e s \.: e ;; t (\ n e h un d r e (\ s eve \\ t ~. . 0 n e and one hundredth (171.01) feet to ~\artin Avenue: thence by I ~fartin Avenue North fifty-four (S~) derrees fifty-two (52) minutes East fifty-four (54) feet to an iron pin at corner of land now or formerly of H. Lucile \\alters Cox: thence by lnnd now or formerly of Cox South twenty-nine (29) derrees I fifteen (15) minutes East t\,'O hundred cirhty-three and, ninety- . eirht hundredths (283.98) feet to t;~e buildin~ line at corner I of Cox property. the place 0 f iI::r.J ;o.;.\'J~C, r:ontninin~ 17.763 square fcc, per survey of C.Hl l), nert. R, S.. dated ~\l\rch. 1973. I RE!NG the same tract of land Hhich f~~a K, Lyons and Howard W. Lyons. her hush<l1\d. hy their deed dnted the 1st anv of July 1964. and recorded in C:Umberlllnd Count~ [leed ;Jook "e". Vol. 21 Pare589 . conveyed to the Grantor herein, A~D also the snme tract of. land which J. Robert Hall et ux by their deed dated the )iH day of August. 196. and recorded in Cumberland County Deeci Rook "I" Vol. 21 Page 747 conveyed to the Grantor herein. I.t.I ,~ :z: ,...... _"".... i,,_ \.0..0...... "'oJ Ol...l~~.;:r::: ~~B'7.~~ ......~".::r . ~ao~ " N I ?~~~ - I Q,:)IC?' '1, ~3~~/0.M ::;~i'l'?J.<t: ~ \. \J..Q: 8QCK6''2-'>i'l~E 8:JJ I I I, . _- :1 f "I.VD the .aid grantOf' hertbv ,ov'Mnl ~ OM agfee ~ thai I t will u'a....anl . ~ ra lly the Pfop.r/II h.rebv eonvevcd, I I ' . I, / " "".I'i-;;:'c:rl'\J'J;i;:'i1' r....;:;;,~.r~I."~;I;'\'. !:,..;;;.:.i.'.U~;I:li 11'''ritie~:I,\; : I ID'I C be P "'Z" ,1..1' ..,,1\,..' ...'i"\,."'. ,."c "'~ .) I~. urn. 0" rl ;~t~':'f-NJ '~1:~ '~J'/~L~~'j :..:...'""'..I.,v........::i l":;...... /"$.,j "t:' i! {Lf, ij).}~ '~1: .\-~~'~~.~~;.~ ~~<t'f./L~~r.:'.'~ !/ ~~i:"~...l~ '. A..I E,c". t,."d.r '.. >>. '(j;(I'..Jt~, !-\ ,)I,.....w'.tt> I; "" -.' ';"-.7 ,. ~ r. /',(:'/:;, ^~ I :'l".::""j' '1':" ~~~;;''+~'''~;'j ~i:~~~:;'."'':'.:'' ~'~.'f.'{., ~-1:,,j} /,'/........ ^~,... c.n q'l':l':'f:'l:1..i~""'I(;ffi.:!,'q r::.::.::......;",}:,Ii:J ;::'::':'C:~~\-,\ ~~b;,.X1. ::n7vC;:n,x, -'~'T"~C'lt~ ,'"YClT.' / " , ~ - , - - tE1In!Tt! ~.rjIil.JJj ~D.J)'l'J..E) lhBJJ\.t& I ". c, ",,, ~'. ^". '., I I I' II IN WITNESS WHEREOF. .aid urantor ha S '''fe,,,,(o let i t ~ haM and ',41 day and vear first above writllm, 11111" , .\ \.,', ::;;j~"!b. &".ltb ,.b .lI,U..,,) 1,~,:,...~.:,..,f:,I,~,LF.,~.:,.~.:~\J~"",."..,.,..,..."..." ..... ~ ",. /,)"_l~' lJuunu.f /:... ----_ ~ ~"~(J"",. ~,~ per / e ~~<1.....' .....:' , " ..,-..,-,....-.:..,,:::..~._~','::..,':..::.. ..::,-~~:~:~:i,rT~,nt::::..'.::,::e .,;~Ls:l~..'?!:Wi!_,~ ..,....,................." ......, ,....,.. ....."...........,~ , ."". ,:{;f'e'tnry .J ~ .~te of Pennsylvnnia " .. s s ,unty of Cumberland ., On this'3t.JtL day of March. 1973. before Me :I "(Jtary Public in 'ld for said State and County. !'lersonnllv nnrenred fJ.1vid L. f1iller :!k!a n. L. Miller) who ack~owlcdrcd hiM~clf to he thc rre~ident ! H. 11. ~hl1er. Tnc.. i'I cor!'lorntion. nn,\ th~t hc n~ ~"ch. heinr ' :ithorized to do so. executed the forcroinr lnqruMent for the :rposes therein contained bv si~ninc the nn~e of thc Cornorntion by I ;mself as President. I Tn witness whereof. T hereunto set mv hi'lnd i'lnd official,s.~lr ' , :: ,>;("j 'I /' ,v, "" . '"' r! ,', ,.~:,1)~:".,i.. I . ., .) /'1 ,r- I" ., I' ,. .'" r'~1 certify tW lilt Kh"M""-" /. /0,1.11 l..., \';0l1uLUv,',",:' '.~',:., ~ rut CHic. .I ~ G.....I.e;. ------~/-\;of<ii';:-r"\il:;rrcr:--------....:. 1 7~ ;, ,e"./ Sf- -i.:"!(-,,,.L....,/.";" '1v rOrl,..., exrircs:\......J-ir,'?7.J1?7Y"'. I ____ It' /.,..,..,..,fl'^'......,\ J " 7(L:Z::::::: ,fL.1LW".-I....({yt:;-- .' "..';.".~ ", I -' . .G.r~ .. AI~, ! ,Ie of Y ) i \ II. ' '.nm1vof J I On thi.t, Ihe dav of , 1[J . b.for. m., ,", e undersigncd offic.r, p.r,olUl/lv appeared I "own to 111' (or 8ati!faclorily "fOVIm) to be the [,crson wi.."c ""mc 'ltbJcribcu to the I :thin instrument, and acknowlcdged that h, ereclttcd Ihe same fM lhe ]"''1,o,.e.' thcrein ! Htaincd. I IN WITNESS WHEREOF, I her~'~,t,~..,J,et..,~,~..h~,~~..a~~,O~,i,Cia,l.sc,a,I,.......................J~~~, I I \:;:r.:J ! I .............. ",...... ..,..... ........Tiii~..~'i.ojji~'~;:....,.. \ I eoQj)25pl.CE 9:]1 . I . .J I ! "'-'~--a"---" .---... ,..-... .--..--- .~_... , . .-, --- -"------_.- ,.-.--- "((':". ,".', I~\ REALTY TRANSFER TAX ! FOR REC~D~? U~7 9.N..J.t. CQMMOrlWfALtH OF PENNSYLVANIA I DOC'': NUMBER '_~- -: )" OEP.~TMENT OF ~EVENUE AFFlDA VIT OF VALUE I P.~E NUM8ER _.' IIU~E'U OF COUNTY COLLECTiONI ! D. Tf RECOROED COMPLEtE .APPl,IC"'Ol.f HCTIOt'l1IN FUVi.. .uoib F1L.E IN OVPI.IC..l.Tf ....j't~ .qECORO(~ 011 Otf01 .H(.M (\\ THl FULL CON~IOER"TION I~ ,.,OT SET FOATKIN THE OEEP.lll T~E. Tq"'N~FeR j~ ....ITHOUT CONSIOERATION OR A.GI'T. I OR I)) A lAX EXEMPTION I~ CLAIMED. lAEFER )ECT. &. Rl'i ..cr OF OEC. 27. 19SI. P, l. 1142 ...1....lo4fNDEOI - [~ ~ECTIOI. I (COMPLETE FOR A,LL TRA~HACTION11 I R. 8. Killer, Inc. Borough of Shippen.burg, pennay lvani. I I r,n:;;,TO" ," .l..OO"(H ~/, !0". S( >:' ,4 .\lilll.o.m....A.....E:r.e.~m.'n nnd ^ 1 huJ:.....l.'....-eem.an If '4y. !..,,~,.d.....,'i. ff.I. ......"'...,1>1 I'>' . a~fH i J , 1 LOC.TIOH OF LAHD, TEHEMEHUAHD HEREDITAMEHTI, I I Borough of Shippensburg, Cumberland County. Penn.ylvanla I H,CJ., ~'"l~. T, hLl"'''l:~ Ok O''"'t-~ Irl:,.\CJoI,P1n"lI'i '" .....t: 0" ,-.lC"'L Co "{ II......l.... 1.... I.)lool,f C.OVkt'l FULL CONIIDER.TIOH I 80,000.00 HICHEIT ASSESSED V.~UE I F"IR M....RKET VALUE J, REALTY TR"'tHfER r....x P....IO I I T"'X EXEMPT TFtAMSA.CTIONS: IF TR....N~FER I!I. P....RTI,l,lLy OFt WHOLLY EXEMPT, SHOW ."OUHT E.XEMPt, ,\ REASON (II 'ND CITE PORTION OF L..., t -- -_. -- IF. TH~\ II. T~AHIFER FROM' STRA" ACENT OR TRUIT 'GREEMEHT, COMPLETE THE REVERIE IIOE, SECTIOH II (COMPLETE OHLY IF PROPERTY ...1 IU8JECT TO LIEH OR MORTGACf AT THE TIME Of TRAHlffR) \ EXISTIHG MORTGAGE, I 01 SPO SI TIOH ...on t(","'O[t;; AOOflEU HilliNG MORTGAGE, I OlSPOSITIOH I [ >040'" c"ot.l \ .l.O(JIIClI EXISTING LIEH DR D8LIG.TIOH, I DIIPOIITIOH Llt"MOlOl;R .1.00'05 HISTINC, LIEN OR 08LIGATIOH, I DIIPO\ITIOH \ LII ~;IOI..III"rl AtJ{)l.irls - SECTIOH III (COMPLETE OHLY IF U.NIHR II REIULT OF JUDICIAL SHEI \ OFFICIAL COHDUCTlHG SUE ~.......: .. OP'1fTB IIII.L WCCE\IFUL 81DDER '" . l,.I ,~ 40lJ"IB 11 fLI JUDGEMEHT PLUS I 810 PRICE I HIGHE Il ASSESSED PRIOR LIEHI V'LUE i.J:U,c tiJI,T."AIH.l.i.E.O....Y.-!>\. V ~ t.::~::;;~.::~:fti~~?;~s)~iit'~'l~~~~~l<<~i;~~: JUOGEMEHT PLUI INTEREST 0'0 PRICE -"..!l..!Q!L!!.li.QJl.~E..QJ...!..l N ~...B.~m~,Q,g,.P..1lQ.!lL~9E .J I I ,', .",t,,%'e PRIOR RECO~OEO MORTG.GE : --.------j.: ----....-.-,--.p~~~~;;~e~h~#f~t4 1--. ,. . ._- UMP"O REAL E\T.TE T.XES W'TER RENT DUE I , I ':,:::-:;';' ~ "'~~':'~,':~'K~~''':-?~J SEW.C,( RENT DUE S ! \ r:..:,A ~;':;'~(/:.(~,~,!'i~::t;' ..!.,T TO~H.EY-F-eE I I \ P' ......~~ ~\{,~;...\~.....\~:~~,.~j~:.~~.\ ,~.: OTHER ICOST!, ETC.) I I I '['.;,;.I:...."!-.-::I,:' ..;~.~t't.i,{i.~,.~~;' TOT'L I i I II ,r NOlEI CAlCUL"t.TIONS MUST BE SHOw,", 1M ALL CO\..U","U. ", ,\\'~' .:. ~: 1; 4'" "" 'LL OF THE INFORMATION ENTERED :,' '~'~;'O~~'~~D"SUB\CRI8ED 8EFORE ME THI\ ON 50TH sloes OF THIS A.FFiOAVIT is ,'..>,30th O~'I;OI". iiarch \~ 7) TRUE, FUll.. ANO COMPLETE TO THE. , .,~ ,(" /, ~ .J BEST OF- /001'( KNOwLEDGE, I~FOjlhU,. . : _ " \.1/' "..'; ~f.'I:/l".. TIOH "NO eELIEF. .'. f" /::: ....Q.'/'A'l' ,,"vaLlI.: , / /,.('/, . "O~ (/' L. ',) '~T ':0"0's'II~EXPIRfI: July 27 I~.l.!!.- '0--- ...(.I....!~ /' iJ(, .>;" ... ~ ,\. . '\:.>"/ ./ U GCl..MHEE JJ .o\C..ENT I'OR C~"''''TEE I " , /1 '(. r u "," CJ CR "'HTO~ O.CENT FOR GRANTOR i . ,....,.,""':...;..,7..; 8$.2,)r~CE ~JS == ~TRAW o TRUHH I File No.: 05-0069C Case No,: State: PA Zi : 17257 n U Front of Improvement Facing North J J I I I , ---- FileNo,: OS..o069C street Case No.: state', PA West King street Facing E.ast West King street Facing West . . FileNo,: 05-0069C Case No,: State: PA Zip: 17257 Solar Panel Extending 100 Feet , , I I Property Access From Rear I II Public Alley Ii ;1'1 i: \;\ I' 11 "I !I: 1,;1 'I'! ,I I" ill! : ;11/(.1 ! 1,:;1 " (\ .~! l ., I:! II :\ II 'I FileNo.: 05-0069C Street Case No,: State: PA Zi : 17257 West Side of Improvements Facing East , II il Ii East Side of Improvements Facing West ! \ I I i . -"'" """ I 0... o Z -"'" ~ w -"'" X ~ 0 0... X (j) >< 0 0... (j) I- (j) N <t: I- '-' I- N ,---",,-,,0"--" <t:cEE~ ~ 20..0'D~ ~ <( +-' ....... +-' +-' o ro ro ro ro ~ ~ ~ ~ ~ ~ ro ~ ~ ~ ~ """ 'D W ~ ~ ~ ~ ~ o ~ ~ ~ ~ ~ cr::uuuu 'D <t: ro ro ro ro (j) 0... 0. 0. 0.. 0.. ~ ,"J i I l~",j...,j ~z '~ en n o I LO M lI:::t N . lI:::t M I lI:::t M o . N ... Q) ... o 0- >< W u ... <: - a::: (f) w I. I . . LOCATION MAP l.'ollowcrRE .. ' ./Iam. FileNo: P:cr":::ty,,t,g(jr~S~~?J:?L~^JesI"Krng SJreef=-=- ---=~,~-~- _I' Case-..tJo: -=-. [~ity;SJ~lflP!"n,~l?~E9, __---- State A Zip: 17257 i '~'p. Dr, William A, Freeman _.__._-----~ . , I " r ~:~ ~/ { \~ ,.' ,/', \, ".." e.." ,,\~ "\~;\ : '\ \~~/\>./ ',/~,../~'~\( / ,,'--\ / ' :- \ '\';' \~,.:;':' ;\{'~;, -' .-./ ./ ' \ ,. ............ / // /' 'I \- ,/ ,// \ i "'V/ ..,..../ // !.I j' - / . , / I ' .. .'.,/ I I I ~~. J ,,,';l,,/ // ",jf~)?/ .:~~i,~.:':..'>t / / , \ " ,'<:,,/ 'i\ '<~'" ,/ ...., ..,,,,/ ~:f /. \../ \~ ,..P,!",,,...L;,'.;i....TELE AlLA. riA, f"e 1,61 mi 1 es F'ro:.~'SI;'8d ::':':: :.:.'l8'..;C, ':~'. Barr.;tt r~ E A~'~'r ::";(, t1 'j i') 21.J::..13,-Q0 .. ._~-------_.__._-...-_.._---------- _.---_._-----------_._~_._-~----~--~.-.-------_.__..-- '-- ,---..'--'--- .-.---- I . I 67 - 71 West King Street I Shippensburg, PA Cumberland County I I I I d l-A\\\ Rd" . A1lcgheny Dr 1:1 ,U'~900ft, 0\. A VOf\ Of '\ 'I D~ Dr Q- ~ ",,;i;;" , ~ ~Jl. C.'i;ij-"f' ~ ~ ~.~ ,'~'"", '. . C '!5f.1i Q QJ ~";J 14.. ' "0") . t.J~ ~')',. '_~' HOI~Oillt A , .. v:-"b~ .~. fi'/) <St' ,?-'4t:,1!C; ~ ..... Ve ~ ifr' .p"', ~ i .' ...~ ". ~~ i,?'lTr~ . . <;f ~ ..,.. . , '.,4/' . .v~ ~'tJ.*' ~ . -0 <()" !?1' <<:';"" \',' ". '". .... .' .... . "'7"\: ~ . O\~ .~ %<<d q#~' '..,,,,1,''1' ,~'f ;~ .. -y, s .' .. ~;;\>. ~<e ., .~ ~; "J.'~'~ ~ '11r ~. r9,1, (J ,. '1-' , ." . ....... i. lS ' '/ ;>,...,.! 3f . &~ ROllbury Rd 'q.b. ~\'\ ,;q,."\ '. .c'",' '. .lP" .' d ,. .. . /:..... ,;~ '''''' ,. \ is> , ..' .' ~~'. . ft,'IJ./ ~ / a:l (b. j ,.:a ill '. \ ",1# q.,/ <G.. rIP.... , ;$1! (\ '50\ , . "'~ .... , ... A,;,1j.Jr~V . 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" ....."F ~ .. ~..,,~J";> ",', ~ .~, ,'i3^,,;l/}r7 ~ ((J 'I:' .() ~,h' )......0 It...,;: "l'- . . ,p'" -?-o '. ,. ,.."', ~'......,.~.. ". ...,i;)>' ~ X.;, "'}ir! .. .('O?J.' ~{'f;)/" ~~ i: "" ...... . 'Dtkemiilh Sptlhg , q, ,,:4\;'" ~. Q. 0" r \," t} "f,:'" q-o. . " S fa ., ,,,f/ ~ '. .ijr ,I ,; ." .,' \ll ,p g;. <(,.1" 0. "......r .,.(\ ('''11' $" 1) "'f' iii '11} "'" iii i,:(.'f ''t"" ;;"-'" ~;/ [ . "i "'~ ~~.~n.n.. ...t~u..J"\'I.G.e+_~..... .~_ .~. '1.nN;.,OOT,m ..,.,^-. ,---,,)2{Fih~ '"eJ" ql, ,I ! . 67 -71 West King Street Shippensburg, P A Cumberland County 01 ~--;'t80iJft' ~~ ,.' ~ ",.g;~1t.1':~" , · d#' r ~ b ..#'~ '50;1'" ('696; ~ ~ .!..&' "i '-~ 0. rj7!i . ,,/ ~ , ~ 0....-6 : Q" ....' ~ I .~./ ~~R ~. ~ ~f.>. ., . ...a , 10 .' 11.~! ~~ .J:.~ i '. .' 9 /... . .({.)~ o.....b. ..'p..\I0\' Or ....~ PI~';A.. "-i:i) ...J.. ^'," ""~ \ I.... '. ,,~,,""'\.114, .., " ~;; .' " '. ,~ ." ". .... .... "'~'.....' -'-" ~ ~ ' . .~.~... . ." <t "'\. ..~~""/.:fX/ .......... ~...' ~....~ ~ . 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In.!'!' i;;S ':1nl\C. .nOT _ l-.... d. ~ ill . . 67 -71 West King Street Shippensburg, P A Cumberland County v------lkm /' 'f11'/ . /_",J Mongul ,~ . Q, /' ".~~rQ"'ei~;\>'- .,..." OtrstbWI1 ,A: @,' c;:1.\I.rt~l.ll\i J\lncUCIl'l -~ "":;.;;' ~{,~~,;;. 0"" , ." ',"." ,';'; '"i;::~~~</.~~~ \" ':,; "': '::"",'~- ",:I"_'~' '~",::'~ " \.> "dbYk~n Spr.. ' '-0: l.pk1olA ,A:.c.TU$'Wtum ' : '. (;'!lII.rtbUfg i b ;0 _,," \ '<~. I, ;< II \...., ,/ '\. ,II; f ~ ' ',., "... VIlIag. !..".."."......\. I" .0 ~nJ: ".__~._-4.____ 1..._. A~J\I\C. nT'....'" , I'~ .~ j il , I ,I II! II; if I [ 1 : i Ii i " . FrNAL D~-\FT VERSI00l' ~farch 13,2003 ARTICLE V - NEIGHBORHOOD COMMERCIAL DISTRICT SECTION 5.1 Neighborhood Commercial (N-C) Purpose The Neighborhood Comniercial District has been established within residential and commercial areas in the downtown area of the Borough of Shippensburg to provide locations for retail sales, personal services and offices as well as residential uses, It shall be the purpose of this district to provide for the routine shopping needs of the surrounding residential areas and to preserve the character and intent of the downtown area, A. Use regulations. A building may be erected or used and a lot may be occupied for any of the following purposes, and no other: Permitted uses in Neighborhood Commercial (N-C) 1 . Single Family Detached Dwelling 2, Single Family Attached Dwelling 3. Mixed Residential And Commercial Use 4, Park Or Recreation Area. S, Accessory Use 6. Multiple Family Dwelling-Up To Six (6) Units 7, Financial Institutions B. Place Of Worship g. Personal Service Business 10, Restaurant 11, Hotel 12. Professional Office 13. Medical Clinic 14, Professional Business 15. Florist 16, Music And Dance Instruction Studio 17. Arts And Crafts Store Or Art Center 18. Theater 19, Bed And Breakfast 20, Home Occupation 21. Office 22. Retail 21 Forestry 24, Neighborhood Convenience Store 25, Information Services Conditional Uses in Neighborhood Commercial (N-C) (see Article XIV): 1 , Multi Family Dwellings-More Than Six (6) Units 2, Hospital Shippensburg Borough 15 Article V - Neighborhood Zoning Ordinance Commercial District !:2 f.... Q:- ~ . . FINAL DRAFT VERSION 1\1arcI113, 2003 I 3- Day Care Center \ 4, Motor Vehicle Parking Lot 5, Fitness And Health Center 6, Craftsman 's Shop 7. Outdoor Dining Areas 8, Dimensional Regulations Neighborhood Commercial (N-C): 1. The lot area and width shall be not less than the following dimensions for each principal use hereafter established in this zone: I a. Lot area minimum 2000 square feet per use I b. Lot width minimum 20 feet 2, Setbacks: Each lot shall provide front. side and rear setbacks not less than the following (see Shippensburg Borough Subdivision and Land Development Ordinance ~, 137.32): a, Front setback - 10 feet, or what is necessary to accommodate for sidewalks according to Borough Council (see also Section 10,13) b, Side setback - 3 feet on one side c, Rear setback - 10 feet (see Section 10.7 and 10,8) 3. The height limit for a principal building shall be seventy-five (75) feet, provided that the principal building shall not be two times taller than an adjacent building, 4, Lot Coverage: Not more than eighty (80) percent of the lot area shall be covered with impervious surface materials. 5, Vegetative Cover: At least ten (10) percent of the lot area shall be maintained in a vegetative cover. C, Off-street parking. There must be 2 parking spaces provided for each family unit 0, Special design criteria. The following special requirements shall apply: 1, Permitted uses shall be contained completely within a building or structure 2, The storage of business merchandise, equipment and any other associated materials must be contained within a building. E, Signs shall be restricted by section 11.6,8.5 of this ordinance, along with all other applicable regulations, Shippelisburg BorolJgh 16 Aliicle V - Neighborhood Zoning Ordinance Commercial District i . . Street I ,0' ~~~ I I . A FtoodMap Legend Flood Information Flood Zones Community: 42lr.l68, SHIPPENSBURO, llOROUOH OF Property is in iiI FBu1Aspeoial flood h3ziiml ;al'l!!3. Are". inuRlloIed Dy 5l1O-ye. noodlng l'roJ>My i."JAAthin 250 feet of a FEMAspecial flood hazard "",a, Ar... _lda 0/ lh. 100- ...., SOD-yur lIclI.plaln. Map Number. 420368 000 1 A Map Date: 03/16/1979 Panel: 0001A FIPS: 4204\ .. AI... .......,..." by tOo-ye., l1oodln9 Zone: IQ. .. AlU. _IIIed Dy loo.y..r l1oodln9 \'Alh valadly Itlttatd _ FlOOdway .,eU Hehher Tranumerica Flood Hazard Certification (TFHC) nor ACI make Iny fapnsertations .or warranties to .Iny pmty concerning the cant...... accuracy or _ F~ .'eas \!IlIh .tlO(iIy naZbtd completernos. ofthis flood report. including any "'..,..ntv of marchartabilily or Aleot Of ...we't_ W ..o~<bl.lIclId !Wtr;lfd. fitness for a partioularputpose, Neither TFHC nor ACI nor the se/lerof this flood report shall have any liability to any third party for any use or misuse of AlUl "'" _" on """ pubiS"ed fiRM this flood report, . FLOORPLAN J.1grm'w't1I,}' 8 ~~MAf'LWlllL'!rr1..lL__,_,__,__, ile No,. 05,OO69C PrQQertYt\drj[ess: 67 -71 West King Street Cas'e'No,: City: Sh.ippen,;~~urg " State: PA Zip: 17257 A . _ _,.~ _._ _n_.' _ n_ ~ _ .." ___.~_.__ .____.._ ~ ._n --. ~ -,- I 500' I Offices b ~ b ':! 220' N 60' 21.0' ~ ~ " 0 b b '" <C' 0) ~ .. .. '" Hallwa'y' u 29 O' 5 " . 0' III Apartmen 6.0' Apartr\\ef'l~ lO b Apartment ~ ~ '" b E t: b ,:.. '" c ... ~ u b u N ~ 5 " " " III <( .... Foyer In 63,0' 29,0' 34,0' Sketch oy Apex IV Windows ™ AREA CALCULATIONS SUMMARY BUILDING AREA BREAKDOWN Code Oestrlpllon Size Totals Breakdown Subtotals GBAl First floor 1974.00 Fl.rst Floor First floor 9225.00 11199.00 22,0 x 46.0 1056,00 GBA2 Second Floor 2931. 00 2931. 00 27.0 x 34,0 918.00 29.0 x 216.0 6264.00 21. 0 x 141. 0 2961.00 I Second Floor 22.0 x 48.0 1056.00 27.0 x 63.0 1701. 00 6.0 x 29.0 174,00 I ! i I i I I TOTAL BUILDING (rounded) 14130 7 Areas Total (rounded) 14130 - .-- .-,-. - . . .. .--' -,-- .,.._~,-,- -, -----.-.,---.--'- -_.~..-_..'" ^ -- .--- .. --. --~ ---- - 124,126 NORTH HANOVER STREET, CARLlSLE, PA 17013,717-243-6646, FAX 717-243-8627 ... . ... II I H ... W l"- II 0 I 0 il C ::J ("1 II qo ! CG ... H ~ 0 110 ... OJ ,a; qo II qo (Jl Cl ... (Jl.. .. .. :> 0\ II 0\ I '" ~ ... cd ('. 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I COMPARABLE LAND SALES SUMMARY I Location Sale Price Size in Price/ Acre Date Acres I. 7 East King Street 12/03 $80,000 0.320 $250,000 I 2, 486 East King Street 03/99 $] 75,000 0.800 $218,750 3. 605-607 East King Street 0\/0\ $212,500 0,940 $226,066 I: I I I 'I! :1/ LAND SALE NO. t Property Identification Record ID 268 Property Type Commercial, Commercial Vacant Land Address 7 East King Street, Cumberland County, Pennsylvania Location Shippensburg Bora Tax ID 34-34-2415-107B Sale Data Grantor PNC Bank, NA Grantee Seneca Realty of Shippensburg Sale Date December 1,2003 Deed Book/Page 260-4319 Veri fica tion Other sources: Courthouse Records Sale Price $80,000 Land Data Zoning C-I, Commercial Topography Level Utilities Public water, sewer, electric, gas Land Size Information Gross Land Size 0.320 Acres or 13,939 SF Front Footage 54 ft Indicators Sale Price/Gross Acre $250,000 Sale Price/Gross SF $5.74 Sale Price/Front Foot $1,481 Remarks Site of former Gingerbread Man that was razed and sold as land only. I I :IIJ . LAND SALE NO.2 I Property Identification Record ID 10 Property Type Commercial, Commercial Vacant Land I Address 486 East King Street, Cumberland County, Pennsylvania Location Shippensburg Borough Tax ID 32-33-1869-102 I Sale Data Grantor Balafoutas, N ikolaos Grantee Atlantic Financial Group, L TD \ Sale Date March I, 1999 Deed Book/Page 196-1303 Sale Price $175,000 Land Data Zoning C-2, Commercial Topography Level Utilities Public Shape Rectangular Land Size Information Gross Land Size 0,800 Acres or 34,848 SF Front Footage 120 ft Frontage on main thoroughfare Indicators Sale Price/Gross Acre $218,750 Sale Price/Gross SF $5,02 Remarks Developed for commercial retail store. Frontage is on the main thoroughfare with rear alley ingress/egress. i 1:1 Ii I! . LAND SALE NO. 3 Property Identification Record ID 55 Property Type Commercial, Commercial Vacant Land Address 605-607 East King Street, Cumberland County, Pennsylvania Location Shippensburg Twp Tax ID 36-33-1869-028 Sale Data j Grantor Engle, John B. i Grantee Westminster Development LLC i Sale Date January 1,2001 I Deed Book/Page 237-881 Sale Price $212,500 Land Data Zoning CoG, Commercial General Topography Level Utilities Public water & sewer Shape Slightly Irregular Land Size Information Gross Land Size 0.940 Acres or 40,946 SF Front Footage 203 ft +- East King Street Indicators Sale Price/Gross Acre $226,066 Sale Price/Gross SF $5.19 Remarks Older building razed for commercial development (new retail store), I II I I ADVANCED MORTGAGE EQUITY CALCULATION REFERENCE NO: 05-0069C PROPERTY: 67-71 W, King Street, Shippensburg ANAL YSIS DATE: 03-09-05 Input Variables Projected Holding Period 10 Years Loan Ratio 1 80,00% Interest Rate 7.00% Loan Term 20 Years Investor Equity Portion 20.00% Required Investor Yield (IRR) 10.000% Growth Rate in Value per Year 0.000% Growth Rate in Net Income per Year 0.000% Soft Costs in Addition to Equity 0,000% Selling Expenses: Terminal Year 0,000% CALCULATION Loan 1 x Constant (,80000 x 0.093036) 0,0744287 I " " " Equity x Required Yield (,20000 x 0.100000) 0.0200000 :i ::1 0,0944287 :i I LESS Credit for Equity Build-up I,: RATIO x O/OPAID OFF x SINKING FUND I,: II Loan 1 80.00 0.3323 0,062745 -0.0166784 BASIC RATE 0.0777503 ii I: CAP RATE AT STABLE OPERATION 0.0777503 1: OVERALL RATE. ROUNDED TO 7.78% I 1 STABILIZED MARKET INCOME STATEMENT REFERENCE NO: 05-0069C PROPERTY: 67-71 W, King Street, Shippensburg ANAL YSIS DATE: 03-09-05 Per Amou nt % of Gross Gross 1 Gross Income Total Income $93,042 100.00% 13.20 Vacancy / Credit Loss -4,652 -5.00% -0.66 Effective Gross Income $88,390 95,00% 12.54 Fixed Real Estate Taxes 8,409 9.04% 1,19 Insurance 2,652 2.85% 0.38 OperatinQ Utilities 600 0.64% 0.09 Cleaning 1,200 1,29% 0.17 Maintenance/Repair 6,978 7.50% 0.99 Management 4,652 5.00% 0.66 Rental License Fee's 279 0.30% 0,04 Water & Sewer 1,800 1.93% 0.26 Trash 1,500 1,61% 0,21 Miscellaneious 1,861 2.00% 0,26 Reserve Reserve for replacement 1,861 2,00% 0.26 Total Expenses $31,792 34,17% 4.51 NET INCOME $56,598 60.83% 8,03 CAPITALIZATION Stable Net Divided by Capitalization Rate = Value $56,598 0,077750 $727,949 , ,I . STABILIZED MARKET INCOME SCHEDULE REFERENCE NO: 05-0069C PROPERTY: 67-71 W. King Street, Shippensburg ANAL YSIS DATE: 03-09-05 Income Item Gross Income Income Unit of Units Per Year Per Unit Measure Office Area-Entire Rear Addition 7,050 63,450 9.00 1 Office (Brown) 3,084 Res. Apt. (Burke) 2,904 Res. Apt. (Ngnang) 3,468 Res, Apt. (Jones) 5,016 Res. Apt. (Plank) 3,600 Res, Apt. (Bassett & Fritz) 4,776 Res. Apt. (Walker) 3,660 Res. Apt. (Hughes) 3,084 Total Units 7,050 Total Income $93,042 Vacancy/Credit Loss -4,652 Effective Gross Income $88,390 ill I' I I . INPUT VARIABLES / KEY NUMBERS REFERENCE NO: 05~0069C PROPERTY: 67-71 W. King Street, Shippensburg ANALYSIS DA TE: 03~09-05 Input Variables Projected Holding Period 10 Years Loan Ratio 1 80.00% Interest Rate 7.00% Loan Term 20 Years Investor Equity Portion 20.00% Required Investor Yield (IRR) 10.000% Growth Rate in Value per Year 0.000% Growth Rate in Net Income per Year 0.000% Soft Costs in Addition to Equity 0.000% Selling Expenses: Terminal Year 0,000% Key Numbers Initial Cash Investment $ 145,590 Indicated Value $ 727,949 Overall Capitalization Rate 7,78% Positive Cash Flow Begins in Year 1 First Year Numbers Annual Net Income $ 56,598 Debt Service ($ 54,180) Annual Cash Flow $ 2,418 Cash on Cash Yield 1.66% Debt Coverage Ratio 1,04 . . SUMMARY OF CALCULATIONS REFEREhlCE NO: 05-0069C PROPERTY: 67-71 W. King Street, Shippensburg ANAL YSIS DATE: 03-09-05 Overall Capitalization Rate (OAR) 7.77503% Value (Income / OAR) 56,598 / 0.0777503 $ 727.949 Original Equity Ratio Value Equity 0.20000 x 727,949 $ 145,590 Soft Costs 0.00000 x 727,949 000 $ 145,590 Loans Loan Ratio Value Loan 1 0.80000 x 727,949 $ 582.359 Annual Debt Service Constant Principal Balance Loan 1 0,09304 x 582,359 $ 54,180 First Year Cash Flow Net Income Debt Service 56,598 - 54,180 $ 2,418 Net Income Debt Service D,C,R. 56.598 / 54,180 1.04% First Year Yield on Equity Cash Flow Original Equity 2,418 / 145,590 1.661 % Ending Loan Balance % Unpaid Principal Loan 1 0.66773 x 582,359 $ 388,860 Resale Value Multiple of Original Value 1 + .00000 1,00000 Resale V,31ue as a Dollar Amoun Appr./Depr. Original Value 1.00000 x 727,949 $ 727,949 Net Reversion Resale Value $ 727,949 (Terminal Equity) Loan Balance -388.860 Sale Expenses 000 $ 339,089 Deferred Yield (Amount) Net Reversion Original Equity 339,089 - 145,590 $ 193,499 Terminal Equity (Ratio) Net Reversion Resale Value 339.089 / 727,949 0.46581 ; I , . l , J I I I ; '" ! Ilem Minimum Spread Ove r 10- Y'i?ar Treasury 1,05% OCR Tee hnique 1.15 0,064442 0.85 6.30 Debt Cover age Ratio. 1.15 Band of I nveslment T echniq ue Interest Rat E' 5,50~~ Mortgage 85~,~ 0.064442 0.054776 16.rnortizatio n 35,0 Equity 15/~ 0.075500 0.011325 r'.'1ortgage Constant 0.064442 OAR 6.61 LClan-to. Value Ratio 85% Surve,ed Rates &.&4- Equity Oivid end Rate 7,55X Malimum ,Spread Ove r 10.. 't)i?ar Treasury 4.45% OCR Tee hnique 1.90 0.120999 0.50 11.49 Debt Cover age Ratio 1.90 Band of Investment T echniq ue Interest Rat e 8.90% Mortgage 50% 0,120999 0,060500 ,~,rnortizatio n 15,0 Equity 50% 0,166000 0,083000 Mortgage Constant 0,120999 OAR 14.35 Loan-to. Value Ratio 50X Surve,ed Rates 14.42 Equity Di...id end Hate 16,60% Aver age Spread Ove r 1 D-'rear Treasury 2,35x OCR Tee hnique 1.51 0.081203 0,73 8.95 Debt Cover age Ratio 1.51 Band of Investment T echniq ue Interest Rat e 6.80/:: Mortgage 73/'~ 0,081203 0.059290 ,6.rnortizatio n 27 Equity 27% 0.125275 0.033806 Mortgage Constant 0,081203 OAR 9.31 Loan-to- Value Ratio 73,0% Surve,ed Rates 9.&3 Equit~~ Oivid end Rdte 12.53% Ce.pyright 200:) Re::;,ltyR:;,t<':::::,cam ,I . I I Minimum Spr ead O'"Je r 10. Year T rE'asury 1. 10 /~ OCR Tee hnique 1.20 0.068512 0.85 6_99 Debt Cover age Ratio 1.20 Band of Investment T echniq ue Interest Rat E' 5,55% Mortgage 85X 0.068512 0,058235 ,o,rnortizatio n 30 Equity 15X 0.083000 0.012450 Mortgage Constant 0,068512 OAR 7.07 Loan-to. Value Ratio 85% Surve!led Rates 7_10 Equity Oivid E'nd RatE' 8,30% I Malimum j Spread O"Je r 1 0- ~)€'ar Treasury 4.80% OCR Tee hnique 1.80 0.109904 0,50 10.44 I Debt Cover agE' Ratio 1.90 Band of Investment T echniq ue Interest Rat E' 9,25% MortgagE' 50% 0,109904 0.054952 I ; ,o,rnortizatio n 20 Equity 50X 0.156500 0.078250 i ! Mortgage C Clnstant 0.109804 OAR 13.32 Loan-to- Value Ratio 50% Surve,ed Rates 13.39 Equity Divid E'nd RatE' 15,65% Aver age Spread Ove r 1 O-'lE'ar Treasury 2,45% OCR Tee hnique 1.55 0.081249 0.70 8_82 Debt COI"J€'r age Ratio 1.55 Band of Investment T echniq ue Interest Rat e 6.80% Mortgage 70/'~ 0.081248 0.056874 .o,rnortiz,atio n 28 Equity 30% 0,123425 0,037028 Mortgage Constant 0.081248 OAR 9.39 Loan-to- V,a lue Ratio 70.0% Surve,ed Rates 9.56 Equity Oivid end R.atE' 12,34% Cc'pyright 20 0:) R(::jltyR:jt(:~.com I I a a a . 11",) V (Y) . -'.. ' "" ~, ~~ ; ~nH~~$ii~1 !""f~'''~l~~~~lt, ' ':;":, it. ;', W :~, " :,' 0 0 o ""',,"l->ili.J'i;' '! . '/',;.1i,;;~ 1~! Jrl' ' 1.0 1.0 1.0 \":" "Sit~,,' f'" ".' . ".,'"""..' II:~'~' "W' ! r ;;H~~~~fIf'~ 0 0 0 - ...... ti\ V N N ' , ...:;~ <- ~,I,.'J: : ',"" ':~;;\; A'_~;": ~;c;' d '<:":'_' ,:l::rf - .:':....~~ .." a 0 I c,:. 1.0 0 0 0 ",.' .- I Cl. 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COMPARABLE IMPROVED SALES SUMMARY TABLE ----'-1--------..' -.., .----- ~._--- -,.-----.-.-.----...- - , No. Location Sale Price Building Price/SF Date ,..~i',:~_(~ fl__ _ -_. .~,,_.~--- ------~ -~, -_..~_.---- -_._~._--_.- --.-.-+----- ------_.~ I c.. ,i 50 ,E~, ~il1g_~~~~ct.._..,_____,_____..__,_,,(!~(()~_E ~5,~)Q _,____J~~_~~ ,_,P6,86 __}, _IX? ,~y!-(j.!!.g_~t~~~!...____,_______._ .'_'"'' " ()2(~!l., _E2~~~()~~ ____..,__..9.~ ~0,~ $ 25 - 1 ~ I J. m.1 11 W,i(ingS"""1 . _. __...._.... _.._.. . . ~6/(l"- ...J21 ~(~)Q _... ..9, ( "9 $2J. 85 _ ;,__ ',~ ~~}-~~~~l!~~:l\~~:=~,~~'~~'-'------"-"-'-'--ii~j~ii" '--,~;11~01~1-~,_~~=--' ~:~H~'-'-~~ ~: ~ ~, - . . a J IMPROVED SALE NO. 1 Proput v Identificatioll Record I D 737 U P ropcrt ~ Type Reuil W/Apartlllcnls. Rctni) W/AparllllCI1IS PrOpl'l'ty N amc BO\yers Jc\\elers Address 50 E. King Strect, Shippcnsburg. Cumberland Coullty. Pennsylvania 0 17257 Locatioll Borough of Shippcnsburg Tax III 33-34-2415-021 n Sale Data Grantor Wayne P Zandergen Grantee Diane M. Clark ~ Sale Date August 2004 Deed BoolJPage 264-:Wn Conditions of Sale Outright Sale Sale History $150,000 1O!17/2000 ~ Verification Cumberland County Courthouse, January 2005 Sale Price $185,000 [ Land Data Land Size 0.140 Acres or 6,098 SF I ~ Zoning C-1, Commercial Topography Level Utilities Public Water, Sewcr, Electric, Gas i Landscaping Minimal \ ~ General Physical Data Building Type Multi -tenant , Gross SF 6,888 : ~ Area Breakdown Store 1,752 Apartments 3,984 Warehouse 1,152 lJ Construction Type Brick & Frame. Interior Row Stories 4 Y car Built 1950 Effective j Condition Fair to Average Indicators I~ Sale Price/Gross SF $26.86 Floor Area Ratio 1.22 Land to Building Ratio 0.82: 1 1 Remad.s Appendage 552 square fcet .. I i ,J ... 1\ ... i ,1 ~ J . . a IMPROVED SALE NO. 2 P rOllert \' I lIentitication RecorlllD 561 0 Property TYIIC Retail. Retail-Mixed Use Property Name Retail! AptlRestaraullt AlId.'ess g5 W King Street, Shippensburg. Cumberland County. Pennsylvania 17257 D Location Borough of Shippensburg Tax [D 34-34-2415-016 U Sale Data Grantor Unknown Grantec Emanato, Lucia elal Salc Datc September 2003 ~ Deed Book/Page 259-01413 ~ Vcrification Other sources: Courthollse Records l~ Salc Price $23g.000 ,) \it Land Data [ Land Size 0,200 Acres or X.712 SF Front Footage 34 ft Main Frontage Zoning C-I, Commercial ~ Topography Level Utilities Public Water, Sewer, Electric Shapc Rectangular General Phvsical Data I) Buildjn~ Name Mixed Use Building Type Multi-tenant ~ Gross SF 9,468 Area Brcakdown Restauraunt 1.256 Apartment 4.734 Store 3,47X ll! Unit Mix No. of Mo, n Unit TVlle Units Size SF Rent/Mo. Relit/SF Efficiency I Two Bedroom 3 . IJ Three Bedroom 1 Other I Unit 6 \r Ycar Built 1960 Effective Condition Fair ~ C r I \; [ l.l "" I '\ . . . t . . . . . - - ! , '~ '.11 I , I ,t ~ Iii ~ ~, f . . ~ IMPROVED SALE NO. 3 ~ Propcrt\' Idcntificlltion Rccord ID 707 ~ Propcrty Typc Office, Office W/Apartl1lents Propcrty Namc Graphic Design Office/Apartments Addrcss 3 I W, King Street. Cumberland Coullty, PClllls~'I\,(lIlia Location Shippcllsburg Borough i Tax ID 34-34-24 I 5-072 Sale nata I Gnl/ltor Rllinehart, Robert F, & Peggy A. Grantec Data Investments LLC Salc Datc June 2004 Deed Bool<fPage 263-1401 I Conditions of Sale Outright Sale Vcrification Other sources: Courthouse Records ! ; I 1 Salc Pricc $218,OO(} Land Data Land Sizc 0,120 Acres or 5,227 SF Front Footage 27 ft Total Frontage: 25 n Main Frontage Zoning C-l, Commercial Topography Level Utilitics Public Water, Sewer, Gas, Electric Shapc Rectangular Landscaping Minimal Gcneral Physical Data Building Name Office/Apartment Building Type Multi-tenant Gross SF 9,139 Arca Breal<down Office 2,105 Apartments 5,634 Warehouse 1,400 Unit Mix No, of Mo. Unit TV/le Units Size SF Rent/Mo. Rent/SF Efficiency 1 One Bedroom 3 Two Bedroom 3 lJ nit 7 . . , . , ~ . ; . . . . Jt: i Bl ~ . 'I ~';,} '1 ".. 1 , '.' , 1 . " -II i ~ fu " '! ! :II ~ ,it , , ift ,,", i ~}I . , , . I IMPROVED SALE NO, .. Prollcrty Idcntification I Rccord ID 733 Propcrty Type Office, Medical Office Addrc~~ 760 E. Washington Street Chambersburg, Franklin COllllty, Pennsylvania Ino I Location Borough of Chambersburg Tax ID 03-1E-12-74 Salc Data Grantor Michael Gaudiose, et al Grantcc Chambersburg Health Services Salc Datc January 2001 Dccd Book/Pagc 1599-554 Salc History Fagan to Gaudiose 6/15/1994 for $0.00 Vcrification Franklin County Tax Records, January ZOOS: Other sources: Ausherman Brothers Salc Pricc $464,325 Lalld Data Land Sizc 0.190 Acres or 8,276 SF Front Footage 32 ft E, Washington Street Zoning Commercial TOJlograJlhy Level Utilitics Public Dimcnsion~ 32 x 253 Shape Rectangular Land~capillg Average Gcneral Ph,,~ical Data Building TYJle Single tenant Gross SF 5,585 Indicatol'~ Salc Price/Gross SF $83, ]4 Floor Area Ratio 0,67 Land to Building Ratio 1.48: 1 Rcmarks I.5 Story brick medical building, - r. . . ; I IMPROVED SALE NO. 5 I. Propcrtv Idcntification Rccord I D 295 I Office, Medical Office I Propcrty Typc Propcrty N amc Medical Center Address 100 S. High St, Cumberland Count)', Pennsyh'ania Location Newville Bora Tax ID 28-20-1756-005 Salc Data Grantor Newville Medical Foundation. Inc. Grantee TPR Real Estate PaI1l\crship Salc Datc June 2002 Dccd Bool;./Pagc 252-00883 Sale Pricc $575,OOl) Land Data Land Sizc O.930Acresor~Ojll SF Z(lning Ll/CC, Light Industrial Utilities Public water, sewer, electric Gencral Phvsical Data Building Namc Medical Center Building Typc Single tenant Gross SF 6,311 Ycar Built 1995 Condition Average Indicators Salc Pricc/Gross SF $9l.I I Rcmal"l{s One story medical building; average quality of constmction I I! II ....: H a rri sb u rg- Le ba non -Ca rl i s I e MSA (Cumberland, Dauphin, Lebanon and Perry Counties) For additional information, call our Customer Service Center at: t -877AWF-DATA or 717-787-6466 December November December I 2004p/ 2004 2003 NONFARM JOBS 371,400 371,800 369,400 GOODS PRODUCING INDUSTRIES 49,600 50,000 49,500 Canst, Nat Resources & Mining 14,300 14,700 14,200 Manufacturing 35,300 35,300 35,300 Durable Goods 17,300 17,300 \7,2.00 Nondurable Goods 18,000 18,000 18,100 Food Mfg 9,300 9,300 9,500 SERVICE PROVIDING INDUSTRIES 321,800 321,800 319,900 Trade, Trans & Utilities 82,200 81,500 81,700 Wholesale Trade 16,2.00 16,100 16,300 Retail Trade 42,200 41,500 41,400 General Merchandise Srores 8,200 8,000 7,300 Trans, Whse & Utils 23,800 23,900 24,000 Transportation & Whse 22,100 22,200 22,300 Truck Transportation 10,600 10,700 10,700 Warehousing & Storage 5,200 5,100 5,700 Information 7,200 7,200 7,600 Hnandal Activities 26,800 26,800 26,900 finance & Insurance 23,300 23,300 23,500 Professional & Bus Services 34,100 34,200 34,300 1'1'01 & Tech Services 14,700 14,700 14,400 Hgt 01 Companies & Enterprises 5,400 5,400 5,300 Admin & Suppon Services 13,900 14,000 14,100 Long-Term Trends Education & Health Services 52,000 52,200 50,800 Educational Services 8,400 8,500 8,300 Health Care & Sod,)1 Assist.1nce 43,600 43,700 42,500 Hospitals 14,700 14,600 14,000 65,000 Nursing & Res Care F,lCilities 10,900 10,900 10,900 Leisure & Hospitality 28,100 28,300 28,400 6::'.000 GOODS PRODUCING INDUSTRIES Accommodation & Food Services 23,600 23,700 23,500 59.000 Other Services 19,300 !9,400 19,000 December Toul Government 72,100 72,200 71,200 56,000 49,600 T Olal Federal Government 10,600 \0,600 10,700 Total State Government 34,300 34,200 33,800 53,000 T orJI LOG" Government 27,200 27,400 26,700 50,000 '17,000 19~j4 1':1 ':~I:; 19':0) 1997 19913 1 'YI(j 2000 ::'001 ::'002 200:3 ~OO:1 p/ Preliminary data Note: D.lla not se,lsonally adjllsted %C\,(1I}0 :3"10,((10 SERVICE PROVIDING INDlJSTRIES 21::'0,((10 2,00,000 December 280.000 321 ,800 :2>3O,mo ')c\O.OOO 199.:1 199:5 1996 1997 \':19;31 99':1 .~OOO :'00 1 ~OO:: ~003 ':'10(\4 Average Hourly Earnings December November December November December 2004p! 2004 2004p! 2004 2003 MANUFACTURING 626.94 636.13 15.48 15.44 15,25 pi PreliminJ1Y ct;\ta Note: l)ata not seasou,llly adjusted "--,.>~..,,",...,.~,:,:;.,;,~,,,<.~~,,,,,,,,,--~<,,,,,,::;:'::..:::~~=: ~::;-,::; R --,^" '--1 ' ,:,~ 'tflf"'- p" " '<'';'~'''G''"'''''-'''''~jfS~ '^ 417. ,. '-;.;-<,. "/ ~ '. .' " , , I 1-1";::"_:,.,,,',,..",~,c:~.J'':'0,,..,.,~,:,,.c'"\''"''' "" ,'," . e\1D~y.Vil.1l19', Q\1 ~fC~f" ~ rW).~." .' ..,' ,:'. ...;-:' ,,~~,,~:,',""'" ....,." ~t~.,:~. I ;'i;V'ij>ffi'""-<,.',r.o;~>j""...,G,,,*,""'H-_:fR5..{"ii-c:,;-'-li'_"-.>""~-, ~ +<,,-~~~ '" .-~ .....' <~......" ~"""H+ ",~'" ~~ 11.'" .'-"! _, ~,,,,,~, ~,.::. ~ ;:j!-'" :.: :J"'::.';'~~G0:~,,~:~...:'1--:;-,~<.;.vs~:-' t_/Z I I . . , II I Pennsylvania SHIPPENSBURG ,CUMBERLAND COUNTY COUNTYSEAT: CARLISLE TYPE: BOROUGH LAND AREA (sq mi): 2.0 WATER AREA (sq km): 0,00 YEAR INC: I LONGITUDE: -077523830 LATITUDE: +40049453 POP DENSITY; 2.772.0 Tel Fax I ! Secretary WilLIAM W, WOLFE (717) 532.2147 (717) 532-6948 I P. 0, Box 129. Shippensburg PA 17257 Email wwolfe@cvns.net Mayor TIMOTHY COSTANZA (717) 532.2147 (717) 532.6948 Tax Collector LISA HELM (717) 530- 7505 (717) 530-0752 I Solicitor BRYANG.SAlZMANN (i17\263-2121 (717)263-0663 FINANCIALS* Local Fiscal YearEnd 1999 I .....,h,.,u"'.un_' , 'OTAl REVENUE 5,939 TOTAL EXPENDITURE 6.961 "'.... / " .." '.'.. ."u..".. . ....-- , Total Taxes Collected 920 General Government 1,187 1..,...,1, ,,,___,___..____' Real EstOlte Taxes 572 Public Works 2.429 ""'\" I, Acl 511 Tax 335 Streets & Roads 727 .......1\ "''''''''--, --,""-"-- Other Tax 12 Recreation & Conservation 1 ''''''I'''' ..,c......_ "__"'__" State & Federal 400 Public Safety 711 ."" . j" ,: Local Government 0 Public Health 0 I' ;.;' Investmenllnlerest 219 Libraries 0 ,~.., "; ,.,..,.. .,', ,.----.. ou", R,,""", 4,401 D.bl S'N;~ 252 i _ ~. -.....[J~- , . Other Expense 1 054 J" ..,._,...,..--,.. ..-.. ..,----. "SSESSED PROPERTY VALUE 16.943 ' "General"P0blicVGbliCPu 'c ec F-EAL MARKET VALUE 264,733 TOTAL DEBT OUTSTANDING 0 Goy'l Wori<s Health Safely Consv '$ in thousands Expenditure Analysis ~;:VENUE PER CAPITA $1.114,00 EXPENDITURE PER CAPITA $1.306,00 HOUSING DEMOGRAPHICS iOTAl UNITS 2.602 TOTAL HOUSEHOLDS 2.397 TOTAL POPULATION 5.586 '. ," OCCUPIED 2,397 Persons Per: One 800 Male 2.571 ''''''( By Owner 989 Two to Four 1 ,431 Female 3,015 _+ By Renier 1.408 Five + 166 RACE I VACANT 205 -" , American Indian 6 I :'ERSONS PER U~~IT 232 AVERAGE HOUSEHOLD SIZE 2,3 Asian/Pac Island 56 I ."";,, ~OME VA(iINCY RATE 37 % TOTAL FArvllLlES 1,138 Black/African Amer 192 =1 ::;ErHAL V/ICANCY RATE 7.7 % Married Family 826 Wolh"te 5,26702 "'," t er, n,e,c, , Other Family 312 HISPANIC 64 ! BUilDING PERMITS ISSUED 2000 Non Family 459 'olal Residontial Bldg 3 One Person 800 AGE & Value $793700 17 & under 985 S' I F 'I H ' 2 AVERAGE FAMILY SIZE 2,9 18 to 39 2524 , Ing e ami youse . I & Value $293,700 UNMARRIED PARTNER 40 to 64 1.203 1970 1980 1990 2000 Two Family House 0 HOUSEHOLDS 141 651074 415 & Value $0 75+ 459 Three,Four Family 0 Male And Male 3 Population Trend & Value $0 Male And Female 67 MEDIAN AGE MALE 26,0 Five or more Family 1 Female And Female 6 FEMALE 30.0 i & Value $500,000 Female And Male 65 . \ I LIBRARY 1\ I N/A Tel', Fax: ; Total Expense Personnel Exp Collection Exp Books at Year End Population : I Total Rever1ue local Income State Income Total Circulation Registration SCHOOLS i 1 District Name/Address Administrator Phone !SHIPPENSBURG AREA SO Superintender1t DR DAVID R LANDIS (717)530-2721 I 317 N Morris St, Sl1ippensburg PA 17257-1635 @ 2002 Towndata.com Nelwork, Inc, Neptune, NJ 07753 (800)242-5511 681 I . , . . Y'''''~f ;<-'~:.::.. '':'' '::-=."..1 ,.;'\1,: [. I I ; .'\, L ;, ' :':lI\C1::'" ,"" ':-il" I 1'\; I. 1':,1';" , I '""... ~.. ,-. .e,_, : . (; , j r . - CommOo~..lth of p,;"y,,,,;, EO 2 2261 G i ."~: \ Department of State " ( II l3l1rrau of Professional Olnd Occupational Affa'r~ : \ PO Box 26-19 Hurishurl!: PA 17105.26-1<) ~ I 'I L, Ctrlificllt T) rr C~rr,rIOIC SI~IUS Ii Certified General Appraiser Active I I , \ , \. ,', Inili~1 CCrlificalion Dalc " \ 09/0611991 ~ i \ STEVEN W 6ARRtrl Ctrlificalt t. 124Io1ORTH HANOVER STREET Number CARLISlE PA 17013 i GAOOO298L ~:\plrallon D~lc I, \ 0613012005 ,. < ~,\)L'-f/- .1 I ; I \ r: o.pvt'y COfNl\IUI\.If'1(! oJ( "'O((\\IOt\II 'f'l6 lXtuP'IlNlII "",u'1 ')\.I)~lulf ,1 \ ',' iJ,. J....---.-.-.,.:=.:.-=-~,~~..::--1 ~,~ l\ I:r. rl 'j I :',,\1:1:.,] ,!:!."hfH IL 1I;!\lI[i:l11:'1'llr.;~' 1 'TI'I: "'-I 11[ ,J1.-"':~ :,':':"':,,::':"..':.._' .., _' ~"'" ~ -" . ___~4:g;7{{0'0..,;.';r\II: -{.'", "',I.' : (,,\CI '11 i"-,: oil 1I: :111"1.1' ,. ,I.:" . .r(...."'.\~.;:....\ l,.;:...{r!'''')\\\it7 Com monw..lth of Pennsylvani. 02 2 1279 3 ~ Department of State v ~ '" Burt'~u of Professional and Occupational Affllir~ ~ PO Box 26019 HlIrrisbuq~ PA 1710S.2649t License Type License S(KIU~ .~ .) ~ ~ Broker (Sole Proprietor) Active ;~ \ :i' \ lnilial License Dale ') 0911711974 '~ :c. I STEVEN W BARREn License Number !~ I 124-121 N HANOVER ST \ CJJUJSlE P A 17 0 13 RB026921 A I~' Expiration Dille I> 05/31/2006 I~, \ t~, r '-;? !~' ~L,~ .'~) ~ ""\- / .2.-. -fJ- I ' !~ I I ~1>>n'lurc ~~ ~. ('\.wnmIUI.\(l('f l.r I'l,.t,',''''JI .II1J \ \:"'I'.II..,n.\' \l'..f, .",...,1 '/.."" .1 """'7~~-.-~i~ri~~.llIIIIII:.,"'x HIT'II :lI.1]!~'tl:I=ItU{rJ..".i..""" {\JII:nJl[Bln.'\.."'::tll.'lI~:' 11IJ'J",",'{!lf,lr_....'!".I/))..: ~-r:;.__~~':".t....'jL,;.:"'~ - 1:;., t' . . . . J ] Appraisal Institute/SREA Seminars: Online Business Practices and Ethics '04 7 Hour Elective Continuing Education Technology Form - Parts I and 2 '99 ~ Course II '03 Litigation Skills for the Appraiser '98 I 7 Hour Elective Continuing Education Dynamics of Office Building Valuation '98 " Course X '03 Loss Prevention '98 ~ Uniform Standards of Professional Uniform Residential Appraisal Report '97 ~ Appraisal Practice '03 Small Residential Income Property Appraisal '97 Residential Construction '03 Valuation of Leasehold Interest '97 i Appraising the Oddball: Nonconforming Valuation of Leased Fee Interest '97 ~ ~ & Difficult Properties Underwriter's Guidelines to Real Property Appraisal '97 i PA State Mandated Course '03 Appraisal of Mixed Use Property Types '96 J: Appraiser Liability '03 Feasibility Analysis - Non Residential '96 Appraising from Blueprints and Specifications '0 I Appraisal of Contaminated Property '96 Regression Analysis in Appraisal Practice '01 Easement Valuation '96 FHA Appraisal Inspection from the Ground Up '01 Commercial and Industrial Report Forms '89 .... Partial Interest Valuation - Undivided '00 Narrative Appraisal Report Writing . Other Seminars: ;"llII II Veterans Administration Training '03 Appraisal of a For-Profit-Cemetery - AAP '96 Mandatory Brokerage - Kell '00 Appraisal of an Operating Landfill - AAP '96 Agency Changes, Choices and Forms Nursing Home Valuations - AAP '95 Realtors Institute '99 Realtors National Marketing Institute Law and Order: USPAP and PA Course 302, Marketing Management '86 Realtors Institute '99 HUD-FHA Training Seminar Elective Brokerage - Shearer '97 Pennsylvania Appraisal Statutes Mandatory Brokerage - Shearer '97 WORK EXPERIENCE: Real Estate Property Manager, 1979 Real Estate Broker. 1974 Real Estate Appraiser. 1975 Real Estate Salesman, 1971 EXPERT WITNESS: Cumberland and Dauphin Counties Penn DOT Board of View Court of Common Pleas and Domestic Various Municipal Zoning and Master Hearings Planning Boards TYPES OF PROPERTIES APPRAISED: Residential Commercial Industrial Investment Multi-Family Mixed Use Agricultural Retail Easements Eminent Domain Right of Ways Subdivisions Feasibility Studies Cash Flow Analyses Assessment Appeals Consulting REAL ESTATE BROKERAGE: Listings, sales, leasing and consulting of all types of real estate in south-central PA COMMONWEALTH OF PENNSYLVANIA REV-1162 EX(1 1-96) DEPARTMENT OF REVENUE BUREAU OF INDIVIDUAL TAXES DEPT. 280601 HARRISBURG. PA 17128-0601 PENNSYLVANIA RECEIVED FROM: INHERITANCE AND ESTATE TAX OFFICIAL RECEIPT NO. CD 005512 WEIGLE JERRY A 126 E KING STREET SHIPPENSBURG, PA 17257 ACN ASSESSMENT AMOUNT CONTROL NUMBER ___nn_ fold nnn_n_ nnuu 101 I $3,481.36 ESTATE INFORMATION: SSN: , 72-26.9794 I FILE NUMBER: 2104-0729 I DECEDENT NAME: FREEMAN ALBERT W I DATE OF PAYMENT: 07/01/2005 I POSTMARK DATE: 07/01/2005 I COUNTY: CUMBERLAND I DATE OF DEATH: 07/02/2004 I I TOTAL AMOUNT PAID: $3,481.36 REMARKS: CHECK# 1111 INITIALS: JA SEAL RECEIVED BY: GLENDA FARNER STRASBAUGH REGISTER OF WILLS REGISTER OF WILLS 11-28-2005 FREEMAN 07-02-2004 21 04-0729 CUMBERLAND 101 APPEAL DATE: 01-27-2006 ( See reverse side under Objections) Amount Remitted I I MAKE CHECK PAYABLE AND REMIT PAYMENT TO: REGISTER OF WILLS CUMBERLAND CO COURT HOUSE CARLISLE, PA 17013 ~~r_~~9~~_r~!~_~!~~------~--_~~!~!~_~9~~~_~9~!!9~_f9~_Y9~~_~~~9~~~__~____________________ REV-1547 EX AFP (03-05) NOTICE OF INHERITANCE TAX APPRAISEMENT, ALLOWANCE OR DISALLOWANCE OF DEDUCTIONS AND ASSESSMENT OF TAX ALBERT W FILE NO. 21 04-0729 ACN 101 n~-l1n,--:""",ri'\ BUREAU OF INDIVIDUA12tlXEs1_) INHERITANCE TAX DIVISION PO BOX 280601 HARRISBURG PA 17128-0601 COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE NOTICE OF INHERITANCE TAX APPRAISEMENT, ALLOWANCE OR DISALLOWANCE OF DEDUCTIONS AND ASSESSMENT OF TAX "'. r- i" '>r' -? V: "'" 1 h; .,. ') 9 ,::.. ~J'" DATE ESTATE OF DATE OF DEATH FILE NUMBER COUNTY ACN JERRY A~EIGLE ESQ WEIGLE & ASSOCS 126 EKING ST SHIPPENSBURG PA 17257 ESTATE OF FREEMAN REV-1547 EX AFP (06-05) ALBERT W TAX RETURN WAS: (X) ACCEPTED AS FILED ) CHANGED DATE 11-28-2005 NOTE: If an assessment was issued previously, lines 14, 15 and/or 16, 17, 18 and 19 will reflect figures that include the total of ALL returns assessed to date. ASSESSMENT OF TAX: 15. Amount of Line 14 at Spousal rate (15) 16. Amount of Line 14 taxable at Lineal/Class A rate (16) 17. Amount of Line 14 at Sibling rate (17) 18. Amount of Line 14 taxable at Collateral/Class B rate (18) 19. Principal Tax Due TAX CREDITS: RESERVATION CONCERNING FUTURE INTEREST - SEE REVERSE APPRAISED VALUE OF RETURN BASED ON: ORIGINAL RETURN 1. Real Estate (Schedule A) 2. Stocks and Bonds (Schedule B) 3. Closely Held Stock/Partnership Interest (Schedule C) 4. Mortgages/Notes Receivable (Schedule D) 5. Cash/Bank Deposits/Misc. Personal Property (Schedule E) 6. Jointly Owned Property (Schedule F) 7. Transfers (Schedule G) 8. Total Assets lI) (2) (3) (4) (5) (6) (7) 467,000.00 71.70 .00 143,213.94 24.664.65 510,000.00 .00 (8) APPROVED DEDUCTIONS AND EXEMPTIONS: 9. Funeral Expenses/Adm. Costs/Misc. Expenses (Schedule H) 10. Debts/Mortgage Liabilities/Liens (Schedule I) 11. Total Deductions 12. Net Value of Tax Return 13. Charitable/Governmental Bequests; Non-elected 9113 Trusts (Schedule J) 14. Net Value of Estate Subject to Tax (9) lID) 19,655.14 119.276.81 (11) lI2) lI3) lI4) NOTE: To insure proper credit to your account, submit the upper portion of this form with your tax payment. 1,144,950.29 138.931 95 1,006,018.34 .00 1,006,018.34 .00 X 00 = .00 1,006,018.34 X 045 = 45,270.83 .00 X 12 = .00 .00 X 15 = .00 lI9)= 45,270.83 n____ l+J AMOUNT PAID DATE NUMBER INTEREST/PEN PAID (-) 09-28-2004 CD004438 1,789.47 34,000.00 03-30-2005 CD005137 .00 6,000.00 07-01-2005 CD005512 .00 3,481.36 BALANCE OF UNPAID INTEREST/PENALTY AS OF 07-02-2005 TOTAL TAX CREDIT 45,270.83 BALANCE OF TAX DUE .00 INTEREST AND PEN. 42.93 TOTAL DUE 42.93 · IF PAID AFTER DATE INDICATED, SEE REVERSE FOR CALCULATION OF ADDITIONAL INTEREST. ( IF TOTAL DUE IS LESS THAN $1, NO PAYMENT IS REQUIRED. (\i~ IF TOTAL DUE IS REFLECTED AS A "CREDIT" (CR), YOU MAY BE DlW A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS.) COMMONWEALTH OF PENNSYLVANIA DEPARrMENT OF REVENUE "'- If04HERITANCE TAX RECORD ADJUSTMENT BUREAU OF INDIVIDUAL TAXES INHERITANCE TAX DIVISION PO BOX 280601 HARRISBURG PA 17128-0601 DATE ESTATE OF DATE OF DEATH FILE NUMBER COUNTY ACN I'") l ~..... JERRY A~EIGLE ESQ WEIGLE & ASSOCS 126 EKING ST SHIPPENSBURG PA 17257 12-15-2005 FREEMAN 07-02-2004 21 04-0729 CUMBERLAND 101 Amount Remitted REV-1593 EX AFP (03-05) ALBERT W MAKE CHECK PAYABLE AND REMIT PAYMENT TO: REGISTER OF WILLS CUMBERLAND CO COURT HOUSE CARLISLE, PA 17013 CUT ALONG THIS LINE NOTE: To insure proper credit to your account, submit the upper portion of this form with your tax payment. --+ RETAIN LOWER PORTION FOR YOUR RECORDS +-- --------------------------------------------------------------------------------------------------------------------------------------- REV-1593 EX AFP (03-05) ESTATE OF FREEMAN ALBERT .. INHERITANCE TAX RECORD ADJUSTMENT .. ACN 1 01 W FILE NO. 21 04-0729 9113 Trusts (Schedule J) ADJUSTMENT BASED ON: VALUE OF ESTATE: ADMINISTRATIVE CORRECTION 1. Real Estate (Schedule A) 2. Stocks and Bonds (Schedule B) 3. Closely Held Stock/Partnership Interest (Schedule C) 4. Mortgages/Notes Receivable (Schedule D) 5. Cash/Bank Deposits/Misc. Personal Property (Schedule E) 6. Jointly Owned Property (Schedule F) 7. Transfers (Schedule G) 8. Total Assets DEDUCTIONS AND EXEMPTIONS: 9. Funeral Expenses/Administrative Costs/ Miscellaneous Expenses (Schedule H) Debts/Mortgage Liabilities/Liens (Schedule I) Total Deductions Net Value of Tax Return Charitable/Governmental Bequests; Non-elected Net Value of Estate Subject to Tax 10. 11. 12. 13. 14. TAX: 15. Amount of 16. Amount of 17. Amount of 18. Amount of 19. Principal TAX CREDITS: Line Line Line Line 14 at Spousal rate 14 taxable at Lineal/Class A rate 14 at Sibling rate 14 taxable at Collateral/Class B rate Tax Due DATE 09-28-2004 03-30-2005 07-01-2005 NUMBER ...., CD004438 ....., CD005137 ...... CD005512 INTEREST/PEN PAID (-) 1,789.47 .00 38.76- (9) (10) (15) (16) (17) (18) (1) (2) (3) (4) (5) (6) (7) 467,000.00 71.70 .00 143,213.94 24,664.65 502,500.00 .00 (8) 19,655.14 119,276.81 (11) (12) (13) (14) .OOX 00 = 998,518.34X 045= .OOX 12 = .OOX 15 = (19) AMOUNT PAID 34,000.00 6,000.00 3,481.36 TOTAL TAX CREDIT BALANCE OF TAX DUE INTEREST AND PEN. TOTAL DUE . IF PAID AFTER DATE INDICATED, SEE REVERSE FOR CALCULATION OF ADDITIONAL INTEREST. DATE 12-15-2005 1,137,450.29 138,931.95 998,518.34 .00 998,518.34 .00 44,933.33 .00 .00 44,933.33 45,232.07 298.74CR .00 298.74CR IF TOTAL DUE IS LESS THAN $1, NO PAYMENT IS REQUIRED. IF TOTAL DUE IS REFLECTED AS A "CREDIT" (CR), YOU MAY BE DUE A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS.) RK COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE BUREAU OF INDIVIDUAL TAXES PO Box 280601 HARRISBURG PA 17128-0601 DECEDENT'S NAME REV-1470 EX (6-88) REVIEWED BY ITEM SCHEDULE NO. '* \ INHERITANCE TAX EXPLANATION OF CHANGES FILE NUMBER Albert W. Freeman 21 04-0729 101 ACN Steven James EXPLANATION OF CHANGES Based on the amended appraisal received by the department July 20, 2005 reflecting that the two (2) properties reported separately should be reflected as one property, the above referenced ACN has been adjusted. A request to refund the overpayment has been submitted. ROW Paqe 1 COMMONWEALTH OF PENNSYLVANIA OEPARTMENT OF REVENUE BUREAU OF INOIVIDUAL TAXES OEPT. 280601 HARRISBURG, PA 17128-0601 REV-1162 EX(11-96) RECEIVED FROM: PENNSYLVANIA INHERITANCE AND ESTATE TAX OFFICIAL RECEIPT NO. CD 006082 FREEMAN WILLIAM A 5 WILLOW RUN SHIPPENSBURG, PA 17257 ACN ASSESSMENT CONTROL NUMBER AMOUNT _____n_ fold 101 $42.93 ESTATE INFORMATION: SSN: 172-26-9794 FILE NUMBER: 2104-0729 DECEDENT NAME: FREEMAN ALBERT W DA TE OF PAYMENT: 12/08/2005 POSTMARK DATE: 12/08/2005 COUNTY: CUMBERLAND DATE OF DEATH: 07/02/2004 TOTAL AMOUNT PAID: $42.93 REMARKS: W A FREEMAN CHECK# 2038 SEAL INITIALS: VZ RECEIVED BY: GLENDA FARNER STRASBAUGH REGISTER OF WILLS REGISTER OF WILLS 1JI....~c.... :r.Nmrn t--lO"t--l,o ." <piS ."rnr-..... rn rn ~~ p IJIt--lQO ~~ ~ c::<ppj(\ ,0 1JIt--l <P~~~ ("lrn IJI rn IJI ." 10 p .... -.\ N IJ'\ -.\ ~~ ~~ Cl~ ~ .,,~ ~i "O~ ~~ ~o. t'" ." .". e ~-s::: ~~ ...- -4.....:.;) "0 ~ ~ ~ -t <:) .. ("l("l,o pc::rn ,o3:<P r-~t--l t--lrnlJl 1JI,o-\ r-r-rn rnP,o .. ~ I::lO ." -n Pg~ t--l ....("lr- -.lOr- oc::1JI ....,0 ~-\ :r. o c:: IJI rn ~, c-> ~'S~! \%~<;:l~ ~"':\,. c:"''''c: 1OCOZO (j1';.~-n -00 "'........t-I ~ ~a .... '" t-I '" .... c: ~ ~H $. ~~ o 0'" .... 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'" .,. ... ~ ~ -0 ~ "" 0' I o '" .... - BUREAU OF INDIVIDUAL TAXES INHERITANCE TAX DIVISION PO BOX 280601 HARRISBURG PA 17128-0601 COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE INHERITANCE TAX .STATEMENT OF ACCOUNT REV-1607 EX AFP (03-05) .~: C 7 DATE ESTATE OF DATE OF DEATH FILE NUMBER COUNTY ACN 01-23-2006 FREEMAN 07-02-2004 21 04-0729 CUMBERLAND 101 ALBERT W JERRY A WEIGLE ESQ WEIGLE 8 ASSOCS 126 EKING ST SHIPPENSBURG PA 17257 Amount Remitted MAKE CHECK PAYABLE AND REMIT PAYMENT TO: CUT ALONG THIS LINE NOTE: To insure proper credit to your account, submit the upper portion of this form with your tax payment. REGISTER OF WILLS CUMBERLAND CO COURT HOUSE CARLISLE, PA 17013 REV-1607 EX AFP (03-05) --------------------------------------------------------------------------- -+ RETAIN LOWER PORTION FOR YOUR RECORDS +- ESTATE OF FREEMAN ALBERT W FILE NO. 21 04-0729 ACN 101 DATE 01-23-2006 THIS STATEHENT IS PROVIDED TO ADVISE OF THE CURRENT STATUS OF THE STATED ACN IN THE NAHED ESTATE. SHOWN BELOW IS A SUHHARY OF THE PRINCIPAL TAX DUE, APPLICATION OF ALL PAYHENTS, THE CURRENT BALANCE, AND, IF APPLICABLE, A PRO~ECTED INTEREST FIGURE. *** INHERITANCE TAX STATEMENT OF ACCOUNT ... DATE OF LAST ASSESSMENT OR RECORD ADJUSTMENT: 12-14-2005 PAYMENTS (TAX CREDITS): PRINCIPAL TAX DUE: 44,933.33 PAYMENT RECEIPT DISCOUNT (+) AMOUNT PAID DATE NUMBER INTEREST/PEN PAID (-) *** SUMMARY OF ~LL 005 PAYMENTS *** 01-06-2006 1,789.47 .00 01-06-2006 38.76- 43,225.55 TOTAL TAX CREDIT 44,976.26 BALANCE OF TAX DUE 42.93CR INTEREST AND PEN. .00 IF PAID AFTER THIS DATE, SEE REVERSE TOTAL DUE 42.93CR If SIDE FOR CALCULATION OF ADDITIONAL INTEREST. ( IF TOTAL DUE IS LESS THAN $1, NO PAYHENT IS REQUIRED. IF TOTAL DUE IS REFLECTED AS A "CREDIT" (CR), YOU HAY BE DUE A REFUND. SEE REVERSE SIDE OF THIS FORH FOR INSTRUCTIONS. ) RK BUREAU OF INDIVIDUAL TAXES INHERITANCE TAX DIVISION PO BOX 280601 HARRISBURG PA 17128-0601 COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE INHERITANCE TAX STATEMENT OF ACCOUNT REV-1607 EX AFP (03-05) JERRY A WEIGLE ESQ WEIGLE & ASSOCS 126 EKING ST SHIPPENSBURG PA 17257 DATE ESTATE OF DATE OF DEATH FILE NUMBER COUNTY ACN 03-13-2006 FREEMAN 07-02-2004 21 04-0729 CUMBERLAND 101 ALBERT W Amount Remitted MAKE CHECK PAYABLE AND REMIT PAYMENT TO: REGISTER OF WILLS CUMBERLAND CO COURT HOUSE CARLISLE, PA 17013 NOTE: To insure proper credit to your account, submit the upper portion of this form with your tax payment. CUT ALONG THIS LINE --+ RETAIN LOWER PORTION FOR YOUR RECORDS +- REV-1607 EX AFP (03-05) ~*~ INHERITANCE TAX STATEMENT OF ACCOUNT ... ESTATE OF FREEMAN ALBERT W FILE NO.21 04-0729 ACN 101 DATE 03-13-2006 THIS STATEMENT IS PROVIDED TO ADVISE OF THE CURRENT STATUS OF THE STATED ACN IN THE NAMED ESTATE. SHOWN BELOW IS A SUMMARY OF THE PRINCIPAL TAX DUE, APPLICATION OF ALL PAYMENTS, THE CURRENT BALANCE, AND, IF APPLICABLE, A PROJECTED INTEREST FIGURE. DATE OF LAST ASSESSMENT OR RECORD ADJUSTMENT: 12-14-2005 PRINCIPAL TAX DUE: 44,933.33 PAYMENTS (TAX CREDITS): PAYMENT RECEIPT DISCOUNT (+) AMOUNT PAID DATE NUMBER INTEREST/PEN PAID (-) *** SUMMARY OF ALL 006 PAYMENTS **~ 02-27-2006 1,789.47 .00 02-27-2006 38.76- 43,182.62 TOTAL TAX CREDIT 44,933.33 BALANCE OF TAX DUE .00 INTEREST AND PEN. .00 IE IF PAID AFTER THIS DATE, SEE REVERSE TOTAL DUE .00 SIDE FOR CALCULATION OF ADDITIONAL INTEREST. ( IF TOTAL DUE IS LESS THAN $1, NO PAYMENT IS REQUIRED. IF TOTAL DUE IS REFLECTED AS A "CREDIT" (CRJ, YOU MAY BE DUE A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS. J j} Register of Wi Us of Cum.berland Conn"ty STATIJS REPORT UNDER RULE 6.12 Name of Decedent: Albert W. Freeman Date of Death: 7-2-04 Estate No.: 21-04-0729 Pursuant to Rule 6.12 of the Supreme Court Orphans' Court Ru1es, I report the following with respect to completion of the administration of the above-captioned estate: 1. State whether administration of the estate is complete: Yes 0 No JXl 2. If the answer is No, state when the personal representative reasonably believes that the administration will be complete: 12-31-06 J. If the answer to No. 1 is Yes, state the following: a. Did the personal representative file a final account with the Court? Yes 0 .No 0 b. The separate Orphans' Court No. (if any) for the personal representative's account is: c. Did the personal representative state an account informally to the parties in interest? Yes 0 No U c. Copies of receipts, releases, joinders and approval of formal or informal accounts maybe filed with lerk of the Orphans' Court and may be attached to this report Date: 6-6-06 lD in C'J ~.- g~ LL() (J (.:; :- >~ (f) : 5:.<;:;; d cl= ~,;, cc;o:.. O~"'i o W- C"") 4"_ ::-;:, J ,-,=, c:~~ r...::.;:> C"'......; Jerry A. Name WEIGLE & ASSOCIATES, P.C. 126 East King Street Address Shippensburg, PA 17257 717-532-7388 Telephone No. Capacity: 0 Personal Representative ~ Counsel for personal representative ~.. tJ>) Cumberland County - Reglster V.L VV..L-'-~~ One Courthouse Square Carlisle, PA 17013 Phone: (717) 240-6345 Date: 5/31/2006 WEIGLE JERRY A WEIGLE & ASSOCIATES PC 126 E KING STREET SHIPPENSBURG, PA 17257 RE: Estate of FREEMAN ALBERT W File Number: 2004-00729 Dear Sir/Madam: This notice is to serve as a reminder that the Status Report by Personal Representative under Rule 6.12 is due on the below listed date. As per the AMENDMENTS TO SUPREME COURT ORPHANS' COURT RULES, NO. 103 SUPREME COURT RULES DOCKET NO. I, for decedents dying on or after July I, 1992, the personal representative or his counsel, within two (2) years of the decedent's death, shall file with the Register of Wills a Status Report of completed or uncompleted administration. This filing lS due by: 7/02/2006 Please feel free to contact this office with any questions you may have. If you have already filed your Status Report, please disregard this notice. Sincerely, ~~#~ C/ Glenda Farner Strasbaugh Clerk of the Orphans' Court cc: File Personal Representative(s) One Courthouse Square Carlislet PA 17013 Phone: (717) 240-6345 Date: 5/31/2006 FREEMAN WILLIAM A 5 WILLOW RUN SHIPPENSBURG, PA 17257 RE: Estate of FREEMAN ALBERT W File Number: 2004-00729 Dear Sir/Madam: This notice is to serve as a reminder that the Status Report by Personal Representative under Rule 6.12 is due on the below listed date. As per the AMENDMENTS TO SUPREME COURT ORPHANS' COURT RULESt NO. 103 SUPREME COURT RULES DOCKET NO.1, for decedents dying on or after July It 1992t the personal representative or his counselt within two (2) years of the decedent's deatht shall file with the Register of Wills a Status Report of completed or uncompleted administration. This filing lS due by: 7/02/2006 Please feel free to contact this office with any questions you may have. If you have already filed your Status Reportt please disregard this notice. SincerelYt ~ 0?~' ~v~- G enda Farner Strasbau ' Clerk of the Orphans' Court cc: File Counsel ..:r ~ ~ " , Name Albert W. Freeman ---............... -"'-~-"'--'--- Date of Death: 2004 Estate No,: ~1-04-0729 Pursuant to Rule 6.12 of the Supreme Court Orphans' Court Rules, I renort the fo11oW1112 , .... ,. .j, ..... 'With respect to completion of the administration of the above-captioned estate: 1. State wbether administration of the estate is complete: Yes IKl No 0 2. If the answer is No, state \vhen the personal representative reasonably believes that the administration will be complete: 3 y If the answer to No.. 1 is)~ es, state the follo\\~ing; a. Did the person.al represenmti\'e a final account \\lith Yes 0 No Jjl b. The separate Orphans' Court for the personal representative's account c. Did the personal state an account informally to the parties in interest? Yes 00 c. Copies of receipts, releases, joinders and approval of formal or informal accou..'1ts may be filed with the of the Orphans' Court an may be attached to this rcpo ' L-<g-07 q r C0 , c.t:; (:)-- y:Z: Jerry A. Weigle, Esquire Name WEIGLE & ASSOCIATES, P.C. 126 East King Street ........,.,.'''."".,'^'''''~__,'''''<.,'',..<''''^<.....'WO,..'^'.','''''.''''''.. vN...~~~,,"""""""""'''~'---''''-------'''''''''''''''''''''' Shippensburg, PA 717-532-7388 17257 .-- = (:-=:J .;-_;1 _"~___",___~,,___-,,,,~v~v~--~,>,....,-~----_.. 'hl, , H. , "_". ~ ESTATE OF ALBERTW.FREEMAN File No. 21-04-0729 FAMILY SETTLEMENT AGREEMENT THIS AGREEMENT made thiS,rE':- day of ~ ,2007, BETWEEN: WILLIAM A. FREEMAN and ROBERT A. FREEMAN, being the legatees under the Last Will and Testament of Albert W. Freeman, late of the Borough of Shippensburg, Cumberland County, Pennsylvania, AND WILLIAM A. FREEMAN, Executor of the Estate under the Last Will and Testament of Albert W. Freeman, deceased, WHEREAS, Albert W. Freeman died July 2, 2004, testate, and under his Will left his estate to the parties herein; and WHEREAS, Mary Margaret Coffey Freeman and William A. Freeman were the (-:) f;;; ...- C'" named Co-Executors under the Last Will and Testament of Albert W. Freeni~eceas~; --"- v ;;:0 - and I W . .' ,\;,) \~') -:0 WHEREAS, on July 14, 2004, Mary Margaret Coffey Freeman n;;~15UHced:irer -0 N "T-} . right to act as Co-Executor of the Estate of Albert W. Freeman, deceased; and .;:- WHEREAS, Letters Testamentary were granted to William A. Freeman on August 5,2004, by the Register of Wills of Cumberland County, Pennsylvania; and WHEREAS, all assets of the late Albert W. Freeman have been liquidated or distributed and all his debts paid in full, and further the period of four months having v WEIGLE & ASSOCIATES. P.c. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG. PA 17257-1397 been terminated since the first advertisement of the issuance of Letters to the said Executor, the said parties hereto desire to waive the duty of the Executor to file a First and Final Account with Proposed Schedule of Distribution for purposes of confirmation by the Court of Common Pleas of Cumberland County, Orphan's Court Division, AND FURTHER desire that a Family Settlement Agreement be executed, which Family Settlement Agreement will be duly recorded among the deed records in and for Cumberland County. NOW, THEREFORE, WITNESSETH, that the parties hereto, in consideration of the premises above stated, and of the Accounting and Proposed Schedule of Distribution attached hereto and made a part hereof, and the receipt of their distributive shares as therein shown, do bind themselves to the said Distribution and Accounting as set forth and further mutually release William A. Freeman, Executor, from all claims and demands whatsoever arising out of settlement of the Estate of Albert W. Freeman. The parties hereto do further agree that should any liability come due to the estate of the said decedent after the signing of this agreement, they do hereby covenant and agree with the aforesaid personal representative that they will contribute pro rata their shares of the estate to satisfy any and all claims, demands, suits, or causes of action which may be successfully prosecuted against the said estate or the aforesaid personal representative after the signing, sealing and delivery of this family settlement agreement and final release. WEIGLE & ASSOCIATES, p.c. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG. PA 17257-1397 IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the day and year first above written. WIlNESS: ~J/~ , , Jf~ a4~EAL) William A. Freeman ~1It Robert A. Freeman (SRAL) WEIGLE & ASSOCIATES. RC. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG, PA 17257-1397 COMMONWEALTH OF PENNSYLVANIA SS COUNTY OF CUMBERLAND O~ On this, the (L day of F~ , 2007, before me, the undersigned officer, personally appeared WILLIAM A. FREEMAN, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that he executed the same for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. (/~ )(~ . (SEAL) Unda K. Klein, Notary Public Shlppensburg, PA Cumberland County Commission Ex ires Au ust 15, 2008 STATE OF CALIFORNIA COUNTYOF ~\~ On this, the :l~ SS day of M~QM -' , 2007, before me, the undersigned officer, personally appeared ROBERT A. FREEMAN, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that he executed the same for the purposes therein contained. IN WITNESS WHEREOF, I hereunto (SEAL) &. SUSAN DUPUIS . COMM. #1552686 ~ NOTARY PUBLIC. CAUFORNIA 0 . MARIN COUNTY .. Comm. Exp. MARCH 11, 2009 WEIGLE & ASSOCIATES. p.c. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG. PA 17257-1397 . Court of Common Pleas of Cumberland County, Pennsylvania Orphans' Court Division No. 21-04-0729 Estate of Albert W. Freeman, Deceased Account William A. Freeman, Executor Date of Death: 07/02/2004 Date of Executor's Appointment 08/05/2004 Date of First Advertisement of Letters: 08/13/2004 Accounting for the Period: 07/02/2004 to 02/05/2007 Purpose of Account: William A. Freeman, Executor, offers this account to acquaint interested parties with the transactions that have occurred during this administration. It is important that the account be carefully examined. Requests for additional information or questions or objections can be discussed with: Jerry A. Weigle, Esquire Attorney Identification No. 01624 Weigle & Associates, P.C. 126 East King Street Shippensburg, PA 17257 717-532-7388 GROSS ESTATE (Principal Receipts + Income Receipts) 1,654,677.74 SUMMARY 01:= ACCOUNT Estate of Albert W. Freeman, Deceased For the period of Julv 2. 2004 throuah February 5. 2007 Paae Fiduciary Acquisition Value PRINCIPAL Receipts: This Account 1-2 1,654,641.92 Net Gain (or Loss) on Sales 0.00 or Other Dispositions 1,654,641.92 Less Disbursements: Debts of Decedent 3 119,276.81 Funeral Expenses 3 8,143.07 Administration Expenses 3-4 4,483.57 Federal and State Taxes 4 43,524.29 Commissions 0.00 Fees 4 3,750.00 Family Exemption 5 3,500.00 182,677.74 Balance Before Distributions 1,471,964.18 Transfer to (from) Principal 0.00 Distributions to Beneficiaries 6 1,472,000.00 Principal Balance on Hand 7 -35.82 For Information: Investments Made Changes in Investment Holdings 8 INCOME Receipts This Account 9 35.82 Net Gain (or Loss) on Sales 0.00 or Other Dispositions 35.82 Less Disbursements 0.00 Balance Before Distributions 35.82 Transfer to (from) Income 0.00 Distributions to Beneficiaries 0.00 Income Balance on Hand 10 35.82 For Information: Investments Made Changes in Investment Holdings COMBINED BALANCE ON HAND -0.00 SCHEDULE A RECEIPTS OF PRINCIPAL Fiduciary Acquisition Value Cash 07/02/2004 Citizens Bank Checking Account 1 - 1.977.62 #6100093816 07/02/2004 Citizens Bank Checking Account 2 - 8.183.56 #6204204436 07/02/2004 Accrued income on above item through date of 40.82 death 07/02/2004 Defined Asset Funds #1, Muni Investment Trust 2.784.40 - terminated issue 07/02/2004 Defined Asset Funds #2, Muni Investment Trust 960.60 - terminated issue 07/02/2004 Delaware Investments Balanced Fund - 44.47 #2-5021053401 07/02/2004 Merrill Lynch Mutual Funds 10.673.18 Total Cash 24.664.65 Bonds 07/02/2004 Series EE Savings Bond 71.70 Total Bonds 71.70 Mortaaae I Note Receivable 07/02/2004 James Freeman Mortgage 143.213.94 Total Mortgage / Note Receivable 143.213.94 Real Estate 07/02/2004 59-61 West King Street - Borough of 170.000.00 Shippensburg, Cumberland County - jointly owned with William A. Freeman, son - 1/2 interest 07/02/2004 63-65 West King Street - Borough of 125.000.00 Shippensburg, Cumberland County - jointly owned with William A. Freeman, son - 1/2 interest 1 SCHEDULE A RECEIPTS OF PRINCIPAL Continued 07/02/2004 710,000.00 01/30/2006 67-71 West King Street - Borough of Shippensburg, Cumberland County - jointly owned with William A. Freeman, son -1/2 interest 74 West King Street - Borough of Shippensburg, Cumberland County 76 West King Street - Borough of Shippensburg, Cumberland County Total Real Estate Subseauent Principal Receipts Commonwealth of Pennsylvania - refund of 298.74 Pennsylvania Inheritance Tax Commonwealth of Pennsylvania - refund of 42.93 Pennsylvania Inheritance Tax William A. Freeman - contribution to estate for 14,349.96 payment of debts of decedent, administrative expenses, fees, and taxes so that real estate could be taken In Kind Total Subsequent Principal Receipts Total Receipts of Principal 07/02/2004 180,000.00 07/02/2004 287,000.00 03/27/2006 07/22/2006 2 Fiduciary Acquisition Value 1,472,000.00 14,691.63 1,654,641.92 SCHEDULE C DISBURSEMENTS OF PRINCIPAL Debts of Decedent 07/02/2004 Joseph V. Brown, CPA - accounting services 2.125.00 owed at date of death 07/02/2004 Notes payable from Freeman & Freeman 117.151.81 Partnership - Albert W. Freeman 54% interest: William Freeman 64,000; Joan Freeman 70,168; Ann Freeman 14,000; Citizens Bank 68,779.80 (216,947.80 x 54%) Total Debts of Decedent 119.276.81 Funeral Expenses 09/11/2004 Crider Meats - funeral reception 254.40 09/11/2004 Fogelsanger-Bricker Funeral Home 6.888.67 09/11/2004 Lutheran Church Sunday School Class - 1.000.00 reception Total Funeral Expenses 8.143.07 Administration Expenses 08/05/2004 Register of Wills, Cumberland County - Letters 572.00 Testamentary and Short Certificates 08/11/2004 Cumberland Law Journal - advertising Letters 75.00 Testamentary 08/11/2004 News Chronicle - advertising Letters 84.50 Testamentary 09/11/2004 Register of Wills, Cumberland County - copies 20.50 regarding Marian Freeman Estate 09/11/2004 William A. Freeman, Executor - expenses 56.32 01/18/2005 Register of Wills, Cumberland County - Short 24.00 Certificates 3 SCHEDULE C DISBURSEMENTS OF PRINCIPAL Continued 03/29/2005 Register of Wills, Cumberland County - filing PA Inheritance Tax Return Steven W. Barrett Real Estate - appraisals of real estate Weigle & Associates, P.C. - reimbursement for postage, xerox copies, and long distance telephone calls Recorder of Deeds, Cumberland - recording five (5) executor deeds Linda K. Klein - notary fee Weigle & Associates, P .C. - reserve for filing Family Settlement Agreement with Register of Wills, Cumberland County Total Miscellaneous Administrative Expenses 03/29/2005 03/29/2005 07/21/2006 07/22/2006 07/22/2006 Federal and State Taxes 15.00 3,300.00 28.75 197.50 10.00 100.00 4,483.57 09/28/2004 Register of Wills, Cumberland County - PA 34,000.00 Inheritance Tax payment at discount 03/30/2005 Register of Wills, Cumberland County - PA 6,000.00 Inheritance Tax payment at discount 07/01/2005 Register of Wills, Cumberland County - PA 3,481.36 Inheritance Tax payment at discount 12/06/2005 Register of Wills, Cumberland County - PA 42.93 Inheritance Tax payment at discount Total Taxes 43,524.29 Fees 06/23/2005 Weigle & Associates, P.C. 3,750.00 Total Fees 3,750.00 4 SCHEDULE C DISBURSEMENTS OF PRINCIPAL Continued Familv Exemption 11/18/2004 Mary Margaret Coffey Freeman Total Familv Exemption TOTAL DISBURSEMENTS OF PRINCIPAL 5 3.500.00 3.500.00 182.677.74 SCHEDULE D DISTRIBUTIONS OF PRINCIPAL Robert A. Freeman 12/08/2005 12/08/2005 74 West King Street -1/2 interest 76 West King Street - 1/2 interest William A. Freeman 12/08/2005 12/08/2005 12/08/2005 12/08/2005 12/08/2005 59-61 West King Street 63-65 West King Street 67-71 West King Street 74 West King Street -1/2 interest 76 West King Street - 1/2 interest 90.000.00 143.500.00 170.000.00 125.000.00 710.000.00 90.000.00 143.500.00 TOTAL DISTRIBUTIONS TO BENEFICIARIES 6 233.500.00 1.238.500.00 1,472.000.00 # Units PRINCIPAL BALANCE ON HAND Description Cash Estate Account Total Cash 7 Current Value 02105/2007 or as Noted -35.82 -35.82 Fiduciary Acquisition Value -35.82 -35.82 -35.82 -35.82 SCHEDULE F CHANGES IN INVESTMENT HOLDINGS - PRINCIPAL # Units Cost 59-61 West Kina Street 07/02/2004 inventoried 170,000.00 12/08/2005 distributed -170,000.00 0.00 63-65 West Kina Street 07/02/2004 inventoried 125,000.00 12/08/2005 distributed -125,000.00 0.00 67-71 West Kina Street 07/02/2004 inventoried 710,000.00 12/08/2005 distributed -710,000.00 0.00 74 West Kina Street 07/02/2004 inventoried 180,000.00 12/08/2005 distributed -90,000.00 12/08/2005 distributed -90,000.00 0.00 76 West Kina Street 07/02/2004 inventoried 287,000.00 12/08/2005 distributed -143,500.00 12/08/2005 distributed -143,500.00 0.00 Total 0.00 8 Citizens Bank Checking Account 2 09/02/2004 SCHEDULE G RECEIPTS OF INCOME Interest/Bank TOTAL BANK INTEREST TOTAL RECEIPTS OF INCOME 9 35.82 - ---1- 35.82 35.82 35.82 # Units INCOME BALANCE ON HAND Description Cash Estate Account 10 Total Cash Current Value 02/05/2007 or as Noted 35.82 35.82 35.82 Fiduciary Acquisition Value 35.82 35.82 35.82 <0 Court of Common Pleas of Cumberland County, Pennsylvania Orphans' Court Division No. 21-04-0729 Estate of Albert W. Freeman, Deceased Affidavit William A. Freeman, Executor, under the Last Will and Testament of Estate of Albert W. Freeman, Deceased, hereby declares under oath that he/she has fully and faithfully discharged the duties of his/her office; that the foregoing Account is true and correct and fully discloses all significant transactions occurring during the accounting period; that all known claims against the estate have been paid in full; that, to his/her knowledge, there are no claims now outstanding against the estate; that all taxes presently due from the estate have been paid; and that more than four months have elapsed since the first complete advertisement of the granting of letters in this estate. ~~ , William A. Freeman Subscribed and sworn to t:1- before me this ~ day of F~ ,200L, f~%~ Notary ublic Unda K. Klein, Notary Public Shippensburg, PA Cumbe~and County Commission Ex ires Au ust 15, 2008