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Home My WebLink About05-13-15 i.in.a.... �,a � J � penns�rlvania 15 0 5 618 4 0 3 . °e'�u`n�e °r"�"`�X(03-14) REV-1500 OFFICIAL USE ONLY Counry Code Year File Number Bureau of Individual Taxes INHERITANCE TAX RETURN Po eox 2soso� 21 13 0 9 2 5 Harrisburil PA 17128-0601 RESIDENT DECEDENT ENTER DECEDENT INFORMATION BELOW Social Security Number Date of Death MMDDYYYY Date of Birth MMDDYYYY 07 31 2013 �4 14 1939 DecedenYs Last Name Suffix DecedenYs First Name MI SMITH CAROL � (If Applicable)Enter Surviving Spouse's Information Below Spouse's Last Name Suffix Spouse's First Name MI THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS FILL IN APPROPRIATE OVALS BELOW � 1. Original Retum � 2. Supplemental Retum ❑ 3. Remainder Return(date of death priorto 12-13-82) � q, Agricultural Exemption(date of � 5. Future Interest Compromise(date of � 6. Federal Estate Tax Return Required death on or after 7-1-2012) death after 12-12-82) � 7. Decedent Died Testate � 8. Decedent Maintained a Living Trust _Q_ 9. Total Number of Safe Deposit Boxes (Attach copy of will) (Attach copy of trust.) � 10. Litigation Proceeds Received � 11. Non-Probate Transferee Return � 12. Deferral/Election of Spousal Trusts (Schedule F and G Assets Only) � 13. Business Assets � 14. Spouse is Sole Beneficiary (No trust involved) CORRESPONDENT•THIS SECTION MUST BE COMPLETED.ALL CORRESPONDENCE AND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED T0: Name Daytime Telephone Number KRISTEN LIEB ESQ 717 237 48�0 First Line of Address 409 NORTH SECOND STREET Second Line of Address SUITE 500 City or Post Office State 21P Code HARRISBURG PA 171011357 CorrespondenYs email address: kristen lieb[a�bipc com REGISTER OF WILLS USE ONLY REGISTER OF WILLS USE ONLY DATE FILED MMDDYYYY C� c�i � � � � � �..�, � .� �...,.1 C`7 ,. � -;3 .:r,a �'_� � __i', C"} "C �.:r? :,:J *:, f..._. . DA7E�FILED MP ' �:r .:.: _. . ,.:.:7 y � ` .. _ �,; . (-J -"; C 7 Side 1 ' ,':..: r..T� N cn c�� _� � I IIIIII IIIII IIIII IIIII IIIII�IIII III�I IIIII IIIII IIIII IIII IIII 15056184�3 1505618403 � � i ii � n � J1505618411 REV-1500 EX Decedent's Social Security Number DecedenYsName: Smith, Carol Lorraine __ _ 192 30 1268 RECAPITULATION 1. Real Estate(Schedule A)....................................................................................... 1. 5 5 4,0 0 0 • 0� 2. Stocks and Bonds(Schedule B)............................................................................. 2. 3. Closely Heid Corporation,Partnership or Sole-Proprietorship(Schedule C)......... 3. 4. Mortgages and Notes Receivable(Schedule D).................................................... 4. 5. Cash,Bank Deposits and Miscellaneous Personal Property(Schedule E).......... 5. 19 4,516 • 6 8 6. Jointly Owned Property(Schedule F) ❑ Separate Billing Requested............ 6. 7. Inter-Vivos Transfers&Miscellaneous Non-Probate Property (Schedule G) ❑ Separate Billing Requested............ 7. 8. Total Gross Assets(total Lines 1 through 7)........................................................ 8. 7 4 8 ,516 • 6 8 9. Funeral Expenses and Administrative Costs(Schedule H).................................... 9. 51 ,9 9 5 • 7 2 10. Debts of Decedent,Mortgage Liabilities and Liens(Schedule I)............................ 10. 2 O 3,5 5 O • 8 6 11. Total Deductions(total Lines 9 and 10)................................................................ 1�, 2 5 5 ,5 4 6 • 5 8 12. Net Value of Estate(Line 8 minus Line 11).......................................................... 12. 4 9 2,9 7 0 • 10 13. Charitable and Govemmental Bequests/Sec 9113 Trusts for which an election to tax has not been made(Schedule J)............................................... 13. 14. Net Value Subject to Ta�c(Line 12 minus Line 13)............................................... 14. 4 9 2 ,9 7 0 • 10 TAX CALCULATION-SEE INSTRUCTIONS FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate,or transfers under Sec.9116 (a)(1.2)X.00 0 • 0� 15. 0 • 0� 16. Amount of Line 14 taxable at lineal rate X .045 11�,918 • 2 7 i s. 4,9 91 • 3 2 17. Amount of Line 14 taxable atsiblingrate X.12 172 ,539 - 54 �7. 20�7D4 • 74 18. Amount of Line 14 taxable at collateral rate X.15 2 0 9 ,512 • 2 9 18. 31 �4 2 6 • 8 4 19. TAXDUE................................................................................................................ 19. 57 ,122 • 90 20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT � Under penalties of perjury,I declare I have examined this retum,including accompanying schedules and statements,and to the best of my knowledge and belief, it is true,correct and complete.Declaradon of preparer other than the person responsible for filing the retum is based on all infortnadon of which preparer has any knowledge. E OF PERS RESP LE FOR FILING RETURN Aaron C.Jackson Esq. DATE Sy--i '_ ADDRESS 409 North Second S reet,Suite 500, Harrisburg, PA 17043 S��F OF PREPARER OTHER THAN REPRESENTATIVE Kristen Lieb Esq. DATE 5-5 -i S ADDRESS 2 Lemoyne Drive, Lemoyne, PA I I�II�I II��I�IIII I�I�I IIII�III�I II��I I�III II�II II��I IIII I�II Side 2 L 1505618411 1505618411 � . . . ...._ .. i :i...i..;_.. �..u. � REV-1500 EX Page 3 File Number 21-13-0925 Decedent's Complete Address: DECEDENT'S NAME Smith, Carol Lorraine ____ STREET ADDRESS 3620 Logan Court, Unit 7C _____ CITY STATE ZIP Camp Hill PA 17011 Tax Payments and Credits: 1. Tax Due(Page 2,Line 19) (1) 57,122.90 2. Credits/Payments A. Prior Payments B. Discount 0.00 Total Credits(A +B) �2) 0.00 3. Interest �3� 4, If Line 2 is greater than Line 1 +Line 3,enter the difference. This is the OVERPAYMENT. (4) Check box on Page 2,Line 20 to request a refund 5, If Line 1 +Line 3 is greater than Line 2,enter the difference. This is the TAX DUE. (5) Jr7,�22.9� Make Check Pa�able to REGISTER OF WILLS, AGENT , � '� _ �� 4�,'r �¢ -�i�"�' r',-`-'#�*��,� �'c# x:_��..2Pr ��s �s � x fi' r+"��w�:.K'�� .:�a �'s ��"'�"t�,��,u- ��w� "' �''i�? ,3+�a� ,,. .,� .',�autnt=wr:��s`��'�-'�.� °_°� ,,...,F,--�a�':�...,�d��.�a„�—. �mg`�:..�aC�� a %�` . �." ,.�.. .�.- �. �' PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING 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:.................................. ❑ � c. retain a reversionary interest;or............................................................................................................... x d. receive the promise for life of either payments,benefits or care?............................................................ � 2. If death occurced after Dec. 12, 1982, did decedent transfer property within one year of death without ❑ ❑ receiving adequate consideration?................................................................................................................... 3. Did decedent own an"in tnist fo�' or payable upon death bank account or security at his or her deathl....... ❑ � 4. Did decedent own an individual retirement account,annuity,or other non-probate property which ❑ ❑ contains a beneficiary designation?.................................................................................................................. X IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES,YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. "�' " ,.,.F an�'��',..f'��e,,,,. ��. �� -� �"�,. ��"�i`�`,��.._„��y`-y�'��s��-.ka..��.'° �. g�...- t5��=��x:. ��.. a:F�i .j� . ...� ... . �.. �:- �� .. ,....: �"�'t1c,t �y.2 , . For dates of death on or after July 1,1994 and before Jan. 1,1995,the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 3 percent[72 P.S.§9116(a)(1.1)(i)]. For dates of death on or after January 1,1995,the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 0 percent [72 P.S.§9116(a)(1.1)(ii)]. The statute does not exempt a transfer to a surviving spouse from iax,and the statutory requirements for disclosure of assets and filing a tax return are still applicable even if the surviving spouse is the only beneficiary. For dates of death on or after July 1,2000: . The tax rate imposed on the net value of transfers from a deceased child 21 ears of age or younger at death to or for the use of a natural parent,an adoptive parent,or a step-parent of the child is 0 percent[72 P.S.§9116(a)�1.2)]. • The tax rale imposed on the net value of transfers to or for the use of the decedenYs lineal beneficiaries is 4.5 percent,except as noted in[72 P.S.§9116(a)(1)]. . The tax rate imposed on the net value of transfers to or for the use of the decedenfs siblings is 12 percent(72 P.S.§9116(a)(1.3)�. A sibling is defined, under Section 9102,as an individual who has at least one parent in common with the decedent,whether by blood or adoption. . ... ... i i.t. � i � Rev-7502 EX+(12-12) SCHEDULE A pennsylvania REAL ESTATE DEPARTMENT OF REVENUE INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER Smith, Carol Lorraine 21-13-0925 All roal proparty owned solsly or as a tenaM in eomman must be roported at talr market valus.Fair market value is definad 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 propeRy that is Jointly-owned with rigM of survivonhip must bs dlaclosed on achedule F. Attach a capy o(the:ettlemant shaat if the property has basn sold Includs a copy of tha dsad showing dacedeM's Interest if owned as ts�aM in common. ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1 Real Estate located at 122-124 State Street,Harrisburg,PA-Appraised Value 315,000.00 2 Real Estate located at 3620 Logan Court,Unit 7C,Camp Hill,PA-Sale Price 239,000.00 TOTAL(Also enter on Line 1, Recapitulation) 554,000.00 (If more space is needed,additional pages of the same sizeJ Copyright(c)2012 form software only The Lackner Group,Inc. Form PA-1500 Schedule A(Rev. 12-12) ii � i � Rav-1508 EX+(OS-72) SCHEDULE E pennsylvania CASH, BANK DEPOSITS, & MISC. DEPARTMENT OF REVENUE pERSONAL PROPERTY INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER Smith, Carol Lorraine 21-13-0925 Indude the proceeds of litigation and the date the proceeds were reoeived by the estate. All property jointly-owned with ths right of survivonhip m�t be di�closad on schedula F. ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1 First National Bank Account No.95034674 194,516.68 TOTAL(Also enter on Line 5,Recapitulation) 194,516.68 (If more space is needed,additional pages of the same size) Copyright(c)2012 form software only The Lackner Group,Inc. Form PA-7500 Schedule E(Rev.08-12) IIIII.:II I1 �I . 1 REV•7511 EX+(08-13) pennsylvania SCHEDULE H DEPARTMENTOFREVENUE FUNERAL EXPENSES AND R SEDENDEC ENTTURN ADMINISTRATIVE COSTS ESTATE OF FILE NUMBER Smith, Carol Lorraine 21-13-0925 Decedent's debts must be reported on Schedule I. ITEM DESCRIPTION AMOUNT q, FUNERAL EXPENSES: B. ADMINISTRATIVE COSTS: 1. Personal Representative's Commissions Name of Personal Representative(s) Street Address City State Zio Year(s)Commission Paid 2, Attomey's Fees 7,500.00 See continuation schedule(s) attached 3, Family Exemption: (If decedenYs address is not the same as claimanYs,attach explanation) Claimant Street Address City State Z�o Relationshio of Claimant to Decedent 4. Probate Fees 520.00 See continuation schedule(s) attached 5. AccountanYs Fees 2,820.00 See continuation schedule(s) attached 6. Tax Retum Preparer's Fees 7. Other Administrative Costs 41,155.72 See continuation schedule(s) attached TOTAL(Also enter on line 9, Recapitulation) 51,995.72 Copyright(c)2013 form software only The Lackner Group,Inc. Form PA 1500 Schedule H(Rev.08-13) . 11111..11111 . � SCHEDULE H FUNERAL EXPENSES AND ADMINISTRATIVE COSTS continued ESTATE OF FILE NUMBER Smith, Carol Lorraine 27-13-0925 ITEM AMOUNT NUMBER DESCRIPTION Attorney Fees 1 Buchanan Ingersoll&Rooney-Attorneys Fees 7,500.00 H-B2 7,500.00 Probate Fees 2 Register of Wills-Probate Fee 520.00 H-B4 520.00 Accountant Fees 3 BSSF-Accountant Fees 1,570.00 4 Keith Huntzinger,CPA 1,250.00 H-65 2,820.00 Other Administrative Costs 5 Capital Region Water-Utilities for 122-124 State Street;January 2015-present 639.55 6 City of Harrisburg Treasurer-2015 City Real Estate Tax on 122-124 State Street 2,183.93 7 Closing Costs-Sale of 3620 Logan Court,Unit 7C 21.930.87 8 Duty's Lock,Safe 8 Security, Inc.-Change locks at 3620 Logan Court, Unit 7C 163.77 9 Kelly Horton -Cleaning Services for 3620 Logan Court, Unit 7C;January 2015-present 270.00 10 Logan Court Home Owners'Assocation-2015 2nd Quarter Dues for 3620 Logan Court,Unit 1,500.00 7C Copyright(c)2002 form software only The Lackner Group,Inc. Form PA-1500 Schedule H(Rev.6-98) ... .. . . . . . i i.i._. �.n.. � . . .. . SCHEDULE H FUNERAL EXPENSES AND ADMINISTRATIVE COSTS continued ESTATE OF FILE NUMBER Smith, Carol Lorraine 21-13-0925 ITEM AMOUNT NUMBER DESCRIPTION 11 M&T Loan Account No.80-0932510-2-Payment on Loan from January 2015-present 4,588.65 12 M8T Loan Account No.99-6605804-1 -Payment on Loan from January 2015-present 8,151.43 13 PPL-Utilities for 122-124 State Street;January 2015-present 1,567.52 14 Randy Shearer Heating 8 Plumbing-Plumbing repair for 3620 Logan Court,Unit 7C 160.00 H-B7 41,155.72 Copynght(c)2002 form software only The Lackner Group,Inc. Form PA-1500 Schedule H(Rev.6-98) . ._. i it � i . � Rev1512 EX+(12-12) SCHEDULE 1 pennsylvania DEBTS OF DECEDENT, DEPARTMENTOFREVENUE MORTGAGE LIABILITIES AND LIENS INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER Smith, Carol Lorraine 21-13-0925 RepaR debts Incurrsd by tha dacedent priar to death that romainad unpald at the dats of death,including unroimbursed medical expen:es. ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1 M&T Loan Account No.80-0932510-2-Mortgage on 122-124 State Street 34,647.36 2 M&T Loan Account No.99-6605804-1 -Mortgage on 122-124 State Street 168,866.56 3 PA Department of Revenue-State tax 36.94 TOTAL(Also enter on Line 10,Recapitulation) 203,550.86 (If more space is needed,additional pages of the same size) Copyright(c)2012 form software only The Lackner Group,Inc. Form PA-1500 Scheduie I(Rev. 12-12) i ii � n � REV-1513 EX+(01-10) pennsylvania SCHEDULE J DEPARTMENT OF REVENUE INHERITANCE TAX RETURN B EN E F IC IARI ES RESIDENT DECEDENT ESTATE OF FILE NUMBER Smith, Carol Lorraine 21-13-0925 NAME AND ADDRESS OF RELATIONSHIP TO SHARE OF ESTATE AMOUNT OF ESTATE NUMBER PERSON(Sl RECEIVING PROPERTY DECEDENT (Words) ($$$) I� TAXABLE DISTRIBUTIONS [include outright spousal distributions,and transfers under Sec.9116 a 1.2 See attached schedule Total 492,970.09 Enter dollar amounts for distributions shown above on lines 15 throu h 18 on Rev 1500 cover sheet,as a ro riate. NON-TAXABLE DISTRIBUTIONS: II. A.SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT TAKEN B.CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS TOTAL OF PART II -ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET Copyright(c)2010 form software only The Lackner Group,Inc. Form PA-1500 Schedule J(Rev.01-10) ii � i � SCHEDULE J BENEFICIARIES (Part I,Taxable Distributions) ESTATE OF: Caroi Lorraine Smith 07/31/2013 192-30-1268 Item Name and Address of Person(s) Share of Estate Amount of Estate Number Receiving Property Relationship (Words) (ES3) 1 Valerie Smith Bancroft Sister-in-Law 14,789.10 9601 N.W.80th Court Fort Lauderdale,FL 33321 2 Rhonda Rowe Benkowitsch Friend 9,859.40 15 Knollwood Buildling Middletown,PA 17057 3 Janet Cauifield Friend 4,929.70 1615 Wyndham Road Camp Hill, PA 17011 4 Amber Gail Holmes(Tarlton) Niece 14,789.10 4650 N.Rainbow Boulevard Bidg.#11,Apt.#1108 Las Vegas, NV 89108 5 Candace Bancroft McKinnis(Hardman) Niece 98,594.02 9601 N.W.80th Court Fort Lauderdale,FL 33321 6 Justin McKinnis Grand Nephew 14,789.10 9601 N.W.80th Court Fort Lauderdale, FL 33321 7 Virginia A. Roth Friend 27,113.36 5 Scotch Circle Duncannon,PA 17020 8 Debra Rowe Sheaffer Friend 9,859.40 123 Cedar Lane Harrisburg, PA 17112 9 Richard Dudley Smith Stepchild 110,918.27 324 E.9th Street New York, NY 10003 1 IIII1..II II ,1 . 1 SCHEDULE J BENEFICIARIES (Part I,Taxable Distributions) ESTATE OF: Carol Lorraine Smith 07/31/2013 192-30-1268 Item Name and Address of Person(s) Share of Estate Amount of Estate Number Receiving Property Relationship (Words) (SSS) 10 Michael Lloyd Tarlton Nephew 14,789.10 811 Green Meadows Road Apt.#211 Columbia,MO 65201 11 Sandra J.Tarlton Sister 172,539.54 P.O. Box 750086 Las Vegas, NV 89136 Total 492.970.09 2 iii ii � �.�:,��,��,� �� i ii �.'i. � r ;, �� . . . . . . . . . . iit. �. i � Last Will of Carol Lorraine Srr�i�� I, Carol Lorraine Smith, also known as Carolyne L. Cibart Swartley Smith, a resident of Cumberland County, Pennsylvania, revolce any prior wills and codicils made by me and declare this to be my Last Wi1L Article One Family Informatior� I am married to M. Dudley Smith, Jr. Any reference in my Will to my husband is to M. Dudley Smith, Jr. I have specifically not included any bequest or gift to my husband's son, Charles Robert Smith. Article Two Specific and General �ift� Section 2.01 Specific Distribution to the Progra� fc�a� Female Offenders If my husband has predeceased me, then upon my death, I give $10,000 to the Program for Female Offenders, located in Pennsylvania, or its successor i�1 interest, to be used for its general charitable purposes. If my husband survives me, this gift will lapse, and this property instead will be distributed under the other provisions of iny Will. If the Program for Female Offenders no longer exists, and l�as »o successor in interest or its successors in interest cannot be identified with reasonable certainty, this gift will lapse, and the property subject to this gift instead will be distributed under the other provisions of my Will. Last Will of Carol Lorraine Smitll Page 1 i ii i i. � Section 2.02 Specific Distribution to Harrisburg ��n��hony If my husband has predeceased me, then upon my death, I give $10,000 to Harrisburg Symphony, located in Harrisburg, Pennsylvania, or its successor in interest, to be used for its general charitable purposes. If my husband survives me, this gift will lapse, and this property instead will be distributed under the other provisio»s of cny Will. If the Haxrisburg Symphony no longer exists, and has no sui:cessor in interest or its successors in interest cannot be identified with reasonable certainty, this gift will lapse, and the property subject to this gift instead will be distributcd u�lder the other provisions of my Will. Section 2.03 Disposition of Tangible Personal P6Aop��ty I give all my tangible personal property, together with any insurance policies covering the property and any claims under those policies in accordance with a "Memorandum for Distribution of Personal Property" ar other similar writing directing the disposition of the property. Any writing prepared according to this provision must be dated and signed by me. Section 2.04 Contingent Distribution of Tangibl� Pe�u��onal Property I give any tangible personal property not disposed of by a ��ritten memorandum to my husband, if he survives me. If he does not survive me, the property will be distributed as part of my residuary estate. Article Three My Residuary Estat� Section 3.01 Definition of My Residuary Estate All the remainder of my estate, including property referred to above that is not effectively disposed of, will be referred to in my Will as my"residuary esta.te." Section 3.02 Disposition of My Residuary Estat+� If my husband survives me, my residuary estate shall be administered as provided in Article Four entitled "The Spousal Trust." If my husband predeceases me, my residuary estate shall be administered as provided in Article Five entitled "Distribution to My Beneficiaries." Last Will of Carol Lorraine Smifh Page 2 � i.i... a.u. . Article Four The Spousal Trus� I give the Marital Share to my Trustee in trust to hold and administer as provided in this Article. The trust will be refei-�ed to as the "Spousal Trust." Section 4.01 Distribution of Income and Princip�� In addition, my Trustee may distribute to my husband as mt�ch of the income and principal of the Spousal Trust as my Trustee determines is tiecessary or advisable for the health, education, maintenance and support of my husband. My Trustee's discretion on this matter is sole and absolute. Section 4.02 Termination of the Spousal Trust a� th� Death of My Husband The Spousal Trust will terminate upon the death of my husband. At such time, my Trustee shall administer the remainder of the Spousal Trust as provided in Article Five entitled "Distribution to My Beneficiaries." Article Five Distribution to My Benefi�iao��es The Distribution to My Beneficiaries will be distributed under the terms of this Article. Section 5.01 Division of Remaining Trust Prop��y My Executor or my Trustee, as the case may be, shall divide and distribute all property allocated to this Article into shares as follows: Last Will of Carol Lorraine Smith Page 3 . . i i...i.._. �..u. � Name Relationship Share Richard Dudley Smith Step-son 22.5% Sandra G. Tarlton Sister 35% Candace Bancroft McKinnis Husband's Niece 20% Justin McKinnis Grand Nephe�� 3% Valerie Smith Bancroft Sister-in-law 3% Debra Rowe Sheaffer Foster Daughter 2% Rhonda Rowe Benkowitsch Foster Daughter 2% Janet Caulfield Housekeeper 1% Virginia A. Roth Business Partner 5.5% Amber Gail Holmes Niece 3% Michael Lloyd Tarlton Nephew 3% Each beneficiary's share will be distributed to that person,per�stiypes. Article Six Remote Contingent Distr��au�ion If, at any time, there is no person or entity qualified to receive final distribution of my probate or trust estate or any part of it, then the portion of my probate or trust estate with respect to which the failure of qualified recipients has occurred shall be distributed one- half to those persons who would inherit it had I then died intestate owning the property, and one-half to those persons who would inherit it had my husband then died intestate owning such property, all as determined and in the proportions provided by the laws of Pennsylvania then in effect. Last WiIl of Casol Lonaine Smith Page 4 III.I..1. II I4.� I �1t"tlC�e �E'VE:t1 Designation of Fiduciar°w�s:�� Section 7.01 Executor I name Aaron C. Jacicson as my Executor. If Aaron C. Jacicsorz fails or ceases to act as my Executor, I name Sandra G. Tarlton as my Executor. Section 7.02 Trustee I appoint Aaron C. Jackson as my Trustee to serve as Trustee of�any trusts created under my Will. If Aaron C. Jackson fails or ceases to act as Trustee, I appoint Sandra G. Tarlton as my Trustee. Article Eight Trust Administration Provm�i�ns The provisions of this Article pertain to any trust created under 1ny Will. Section 8.01 Resignation of a Trustee A Trustee may resign by giving written notice to the Income Beneficiaries of the trust and to any other Trustee then serving. Upon the resignation of a Trustee, the resigning Trustee �nay, appoint the resigning Trustee's successor as Trustee. If the resigning Trustee fails to make the appointment, the other provisions of this Article regarding Trustee succession shall govern, and the next named successor or successors to the resigning Trustee will serve in the order listed. Section �.02 Removal of a Trustee A Trustee named under this Last Will inay Ue reinoved only for cause shown. Section 8.03 Default of Designation Any beneficiary may petition a court of competent juriscliction to appoint a successor Trustee to fill any vacancy remaining unfilled after a period of 30 days. Last Will of Carol Lorraine Sinith Page 5 IIIL1....II I1..'1. 1 Section 8.04 Natice of Removal and Appointmei��t Notice of removal must be in writing and delivered to the Trus�tee being removed. The notice of removal will be effective in accordance with its provisions. Notice of appointment must be in writing and delivered to the successor Trustee. The appointment will become effective at the time of acceptance by t:he successor Trustee. Section 8.05 Appointment of a Cotrustee Any individual Trustee may appoint an individual or a corporate fiduciary as a Cotrustee. A Cotrustee so named will serve only as long as the Trustee who appointed the Cotrustee (or, if the Cotrustee was named by more than one Trustee acting together, by the last to serve of those Trustees) serves, and that Cotrustee will not become a successor Trustee upon the death, resignation, or incapacity of the Trustee r��ho a.ppointed the Cotrustee, unless so appointed under the terms of my Will. The Trustee appointing a Cotrustee may revoke the appointment at any time with or without cause. Section 8.06 Exoneration of My 7'rustee My Trustee is not obligated to examine the accounts, records or actions of any previous fiduciary. My Trustee is in no way or manner to be held responsible for any act or omission to act on the part of any previous fiduciary. Unless my Trustee has received notice of removal, my Trustee may not be held liable to any beneficiary for the consequences of any action taken by my Trustee that would have been, but for the prior removal of my Trustee, a proper eYercise by my Trustee of the authority granted to my Trustee under my Will. My Trustee inay request and obtain from the beneficiaries or from their legal representatives, agreements in writing releasing my Trustee from any liability that may have arisen from my Trustee's acts or omissions to act and indemnifying my Trustee from liability for the acts or omissions. An agreement described in this paragraph, if acquired from all the living beneficiaries of my Will or from their legal representatives, will be conclusive and binding upon all parties, born or unborn, who may have, or may in the future acquire, an interest in my Will. Section 8.07 Trust Accounting Except to the extent required by law, my Trustee is not required to file accountings in any jurisdiction. Upon the written request of an Income Beneficiary of a trust created under my Will, my Trustee must render an accounting to the Income l3eneficiaries of that trust during the accounting period that includes the date of the written request. Last Will of Carol Lorraine Sm�ith Page 6 i ii._i i. i. � In the absence of fraud or manifest error, the assent by all Income Beneficiaries to a Trustee's accounting will make the matters disclosed in the accounting binding and conclusive upon all persons, including those living on the date of iny Will and those to be born in the future who have, or will�in the future have, a vested or contingent interest in the trust property. In the case of an Income Beneficiar}r wlio is a minor or who is incapacitated, that beneficiary's natural guardian or legal representative may give the assent required under this Section. A beneficiary may object to an accounting rendered by my Trustee only if the beneficiary gives written notice to my Trustee within 60 days after Yny Trustee renders the accounting. Any beneficiary who does not submit a written objection to the accounting is deemed to assent to the accounting. My Trustee is not required to furnish any information regarding iny trust to anyone other than a beneficiary. My Trustee may exclude any informati�n that my Trustee determines is not directly applicable to the beneficiary receiving the information. Section 8.08 Authority to Terminate Trusts If, at any time, my Independent Trustee, in its sole and absolute discretion, determines that a trust created under my Will is no longer economical or is otherwise inadvisable to administer as a trust, or if my Independent Trustee deems it to be in the best interest of my beneficiaries, my Independent Trustee, without further responsibility, inay terminate the trust and distribute the trust property, including any undistributed net income, in the following order of priority: To my husband, if then a beneficiary of the trust; If my husband is not then a beneficiary of the trust, to the beneficiaries then entitled to mandatory distributions of net incorne of the trust and in the same proportions; and If none of the beneficiaries are entitled to mandat��ry distributions of net income, to the beneficiaries then eligible to i�eceive discretionary distributions of net income of the trust, in such amounts and shares as my Independent Trustee may determine. Article Nine General Administrative Pr�vi�sons The provisions of this Article apply to my probate estate and to any trust created under my Will. Last Will of Carol Lorraine Sn�ith Page 7 i .ii.. �..u. � Section 9.01 No �ond No Fiduciary is required to furnish any bond for the i aithful performance of the Fiduciary's duties, unless required by a court of coinpeterit jurisdiction and only if the court finds that a bond is needed to protect the interests of the beneficiaries. No surety is required on any bond required by any law or rule of court, unless the court specifies that a surety is necessary. Section 9.02 Delegation of Authority; Power of�ttoi�ney Any Fiduciary may, by an instrument in writing, delegate to any other Fiduciary the right to exercise any power, including a discretionary power, granted tlie Fiduciary in my Will. Any Fiduciary may also execute a Power of Attorney vesti.ng in an agent the authority granted in this Will. Article Ten Powers of My Fiducia��ee� Section 10.01 Fiduciaries' Powers Act My Fiduciaries may, without prior authority from any court, exercise all powers conferred by my Will or by common law or by Pennsylvania Estates and Fiduciaries Code or other statute of the Commonwealth of Pennsylvania or any other jurisdiction whose law applies to iny Will. My Executor has absolute discretion in exercising these powers. Except as specifically limited by my Will, these powers extend to all property held by my fiduciaries until the actual distribution of the property. Article Eleven Provisions for Payment of Debts, Exper��es and Taxes Section 11.01 Payment of Debts and Expenses I direct that all my legally enforceable debts, secured and unsecured, be paid as soon as practicable after my death. Last Will of Carol Lorraine Smith Page 8 IIILI..II 11.4 � Section 11.02 'IVo Apportionment Except as otherwise provided in this Article or elsewhere in m}T will, my Executor shall provide for payment of all estate, inheritance and successic�n ta�es payable by reason of my death ("death taxes") from my residuary estate as an ac�rninistrative expense without apportionment and will not seek contribution toward or recc�very of any death tax payments from any individual. Section 11.03 Payment of Charitable Bequests My Executor shall make all charitable distributions, to the extent possible, from property that constitutes `income in respect of a decedent' as that terin is defined under the U.S. income t� laws, and the distribution will qualify for the incoine tax charitable deduction under Section 642(c)(5) of the Internal Revenue Code, as the sarne may be amended from time to time. Article Tweive General Provision� Section 12.01 Cremation Instructions I wish that my remains be cremated in accordance with any kiiown instructions left by me, whether in writing or orally given to any family member. If I have failed to leave instructions regarding the cremation of my remains, I wish that �ny remains be cremated and my ashes disbursed as my Executor sees fit. Section 12.02 Contest Provision If any person directly or indirectly attempts to contest or oppose the validity of my Will, (including any codicil to my Will), or commences, continues or prosecutes any legal proceedings to set my Will aside, then that person will fo��Ceit his or her share, cease to have any right or interest in my estate, and will, for purpases oi�my Will, be deemed to have predeceased me. Section 12.03 Survivorship Presumption If my husband and I die under circumstances in which the order of our deaths cannot be established, I will be deemed to have survived iny husband. If any other beneficiary is living at my death, but dies witliin 30 days thereafter, then the beneficiary will be deeined to have predeceased me for all purposes of my Will. Last Will of Carol Lorraine Smifh Page 9 � it. �.x . I, Carol Lorraine Smith, having signed this Will in the presence of �c:;�. �-� ��t-�-t�-�,. and i`�e?�� r:ci��'� who attested it at my request on this day, June 26! 2013 at Camp Hill, Pennsylvania, declare this to be my Last Will. � r- : �,. /" � ��' '(-;,;<%vice. Gi�j:,tti�°�' %l 1,v�-e:.�-�---- Caro �orraine Smith, �I'estatrix The above and foregoing Will of Carol Lorraine Smith was declared by Carol Lorraine Smith in our view and presence to be her Will and was signed and subscribed by the said Carol Lorraine Smith in our view and presence and at her request and in the view and presence of Carol Lorraine Smith and in the view and presence of each other, we, the undersigned, witnessed and attested the due execution. o:F the Will of Carol Lorraine Smith on this day, June Zt�, 2013.� � �'� � Y��-- --'� �-� c`E;�:.;t;�� z 3� l � . � � j � �,'��.: residing at _ � �� - f � - Z esiding at �:-�r t�"f;� r'� Last Will of Carol Lorraine Sinith Page 10 i i.i.. � �. � PENNSYLVANIA SELF AUTHENTICATIlr��E��.�i FIDAVIT COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND ) I, Carol Lorraine Smith, the testatrix whose name is signed to the attached or foregoing instrument, having been duly qualified according to law, do hereby acknowledge that I signed and executed the instrument as my Last Will; and that I signed it willingly and as my free and voluntary act for the purposes therein expressed. Sworn to or affirmed and acknowledged before me by Carol Lol-raine Smith, the testatrix, this day, June��'2013. �� (�;' f 11 �' .� (j 1 \\////�,{Y 7/:'^:JA/'y� i ��C,. - �'�'`� —_- Cat�YLorraine Smith, Testat:rix .��G��.��'_..�I�C� Signature of officer {�� '�t� , ��rr�_l��c Seal and official capacity of officer COMMONWEALTH OF PENNSYLVANIA Notarial Seal Pauifne Patti Thomas,Notary Public Lemoyne Boro,Cumberland County My Commission E�cplres M�rch 24,2015 MEMBER,p�NNSYLVANIA ASSOCIHTION OF NOTARIES Last Will of Carol Lorraine Sm.'ith Page 11 . . . . . i it. �. i � COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND ) We, � :� ' t"`� d�--1��. and �/►y��F� r��"�`�' , th� witnesses whose names are signed to the attached or foregoing instrument, being duly qualiiied according to law, do depose and say that we were present and saw the testatrix sign and execute the instruinent as her Last Will; that the testatrix signed willingly and �xecuted it as his free and voluntary act for the purposes therein expressed; that eacl� subscribing witness in the hearing and sight of the testatrix signed the will as a witness; and that to the best of our knowledge the testatrix was at that tiine 18 or more years of age, of sound mind, and under no constraint or undue influence. i � ._<`:' ,� �; �,, ��,i��.3Z,��,_ Witnes � �� } w�t� SS ,� ,�''�? , `��,��' G��G��=��:-'-.�, -� � � Signature of officer ; ��.,� — ��E (� �.. �� .� �I`� Seal and offia�a�capacity o E officer � �6MMQPIW�L�I QF f��IVIV5YLI�ANIA NoWrial Seal Pauline Patti Thomas,Notary Nublic Lemoyne Boro,Cumberland County My Commisslon Expires Mar4h 24,2015 MEMBER,PENNSYlVANIA p$S�CIATION OF NOTARIES Last Will of Carol Lorraine Smith Page 12 ii i � i �,5:�i7;�,.. OMB Approvai No.2502-0265 �°`��.� ��ty�. HUD-1 �'z A. Settlement Statement (HUD-1�i _ ��, �� t . �� ;.., �^°'ti'r er-."- Pa9e 1 of 3 B.Type of Loan _ 1.�FHA 2.�RHS 3.�X Conv.Unins. 6. File Number: 7.Loan Number: 8.Mortgage Insurance Case Number. 4.❑VA 5.�Conv.Ins. 401500634-CL 3339213642 C.NOTE: This form is furnished to give you a statement of actual settlement costs.Amounts paid to and by the settlement a9ent are shown.Items marked"(p.o.c.)"were paid outside the dosing;they are shown here for informational purposes and are not induded in the totais. D.Name and Address of Borrower E.Name and Address of Seller F.Idame arid 0.ddress of Lender KENNETH R.MILLER AND DORIS 7.MILLER AARON C.]ACKSON,EXENTOR OF ESTATE QUiCKEN LCANS,INC. 8 MONTADALE DRIVE OF CAROL LORRAINE SMITH,A/K/A 1050 WOOCNlARD AVE, �ILLSBURG,PA 17019 CAROLYNE L.CIBART SWARTLEY SMITH, DETFOIT,�v�,l 48226 A(K/A CAROLYNE L SMITH,A/K/A CAROLYNE 5.SMITH 362D LOGAN STREET#7-C CAMP HILL,PA 17011 ....._._._.__ G.Property Location H.Settlement Agent GUARDIAN TRANSFER 3620 LOGAN STREET,7-C 485 ST.JOHNS CHURCH ROAD, CAMP HILL,PA 17011 SHIREMANSTOWN,PA 17011 � Phone: (717)901-8342 COUNTY:CUMBERLAND Place of Settlement I.Settlement Date PARCELID: 10-21-0275-363-UC00700 04/17/2015 TOWNSHIP:HAMPDEN TOWNSHIP 4785 LINGLESTOWN RD HARRISBURG,PA 17112 Disbursement Date 04/17/2015 J.Summar of Borrower's Transaction K.Summar of Seeler's 7ransaction 100.Gross Amount Due from Borrower 400.Gross Amount Due to Seller 101.Contract Sales Price $239,000.00 401.Contract Sales Price $239,000.00 102.Personal Property 402.Personal Property 103.Settlement charges to borrower(line 1400) $7,002.18 403. 104. 404. 305. 405. Adjustment for items paid by seller in advance Adjustment for items paid by seller in advance 106.City/Town Taxes 406.City/Town Taxes 107.County Taxes 564.87/yr 4/17/2015 to 1/1/2016 $415.02 407.County Taxes 584.E7/yr4/!7/2035 ro 1/t/2016 $415.02 108.A55essments 408.Assessments 109.SchoolTaxes 2,030.66/yr4/17/2015 to 7/1/2015 5417.26 409.SchoolTaxes 2,030.65/y�4/17/2015to 7/1/2015 $417.26 S10.Common Expense Assessment to Condo Association g1,236.26 410.Common Expense Assessment to Condo Association g1,236.26 - 1 500.00 tr for 4/ll/2015 to 7/1/2015 1 500.00/ tr for 4j17/20_5 to 7/1!2015 111. 411. ----,- 112. 412. 120.Gross Amount Due from Borrower $248,070.72 420.Gross Amount Otie to Seller $241,068.54 200.Amounts Paid by or in Behalf of Borrower 500.Reductions In Amuunt Due to Seller 201.Deposi[or earnest money $3,000.00 501.Excess D2po5its 202.Principal Loan Amount from Quicken Loans,Inc. $191,200.00 502.Settlement Charg=_s to Se'Jer $63,472.05 203.Existing loan(s)taken subject to 503.Exis[ing loan(;)taken subject to 204.Good Faith Deposit to Quicken Loans,Inc. $500.00 504. 205.LenderCredit $5,561.00 505. 206.Schwab Bank Credit $200.00 505. 207. 507. 208. 5=� 209. ��9 Adjustments for items unpaid by seiler Adjustments for items unpaid by seller 210.Ci[y/Town Taxes SSO.City/Town Taxes 211.County Taxes S11.County Taxes _ 212.Assessments 512.Assessmen[s _ 213. 513. __ 214. 514. 215. 515. 216. 516. 217. 517. _ 218. 518. 219. 519. 220.Total Paid by/for Barrower $200,461.00 520.Total Reduction Amount Due Seller $63,472.05 300.Cash at Settlement from/to Borrower 600.Cash at Settlement to/from Seller 301.Gross amount due from torrower(line 120) $248,070.72 601.Gross amount due to seller(line 420) $241,068.54 302.Less amounts paid by/for borrower Qine 220) $200,461.00 602.Less reductions in amoun:due seller Qine 520) $63,472.05 303.Cash X From To Borrower 547,609J2 603.Cash X To From S�:ler ;177,596.49 The Public Reporting Burden for this colleciion of information is estimated at 35 minutes per response for collecting,revi��ing,acc reporting ihe data.This agency may not collect this in(ormation,and you are not required to complete this form,unless it displays a cu«ently valid OMB control number.No conFldentiality Is assured;this disclosure is mandatory.This is designed to provide the parties to a RESPA covered trensaction with information during the settlement process. initials i i _ i � � 401500634-CL HUD-1 Page 2 of 3 L Settlement Charges __ 700.Total Real Estate Broker Fees 514340.00 Division of Commission(line 700)as follows: _ Paid From Borrower's Pald From Seller's Funds At Settlement Funds At 701.$7170.00 to Re/Max ist Advantage _ Settlement 702.$7170.00 to Coldwell Banker _, 703.Commission paid at settlement $14,340.00 704. __.'._-_.._. -'- 800.Items Payable fn Connection with Loan 801.Our origination charge $795.00 (from GFE#1 ) 802.Your credit or charge(points)for the specific interest rate chosen (from GFE#2 ) 803.Your adjusted origination charges (from GFE A ) $795.00 804.Appraisal Fee to TSI Appraisal Services (from GFE#3 ) $430.00 805.Credit Report to CredStar (from GFE#3) $29.82 806.Tax Service to First American Real Estate Taz Service (from GFE#3) $60.00 807.Flood Cert. Fee to CoreLogic Flood Services (from GFE#3) $5.00 808.Credit Report CredStar$21.57 _ 809.Flood Determination Fee to CoreLogic Flood Services $10.50 810.Taz Certification Fee to Title Source,Inc. $18.00 811.Condo Insurance Fee to CAU $30.00 812.Credit Monitoring Service to Equifax Information Services,lLC$8.25 900.Items Required by lender to Be Paid fn Advance _ 901.Daily interest charqes from 4/17/2015 to 5/1/2015 @ 21.24/day Quicken (from G`E R10) $297.36 - Loans Inc. 902.Mortgage Insurance Premium (from GFE#3) 903. 1 Year Homeowner's Insurance Erie Insurance POC(8uyer)$207.00 (from G�E#11) 904. 1000.Reserves Deposifed with Lender SOOl.Initial deposit for your escrow account (from GFE#9) 100Z. __ 1003. 1004. 1005. 1006. 1007. 1100.Title Charges 1101.Title services and lender'S title insurance to Guardian Transfer (from GFE#4) 41.P35.00 $15.00 1302.Settlement or closing fee to Guardian Transfer $25.00 1103.Owner's title insurance to Guardian Transfer (from GFE C5) $394.50 1104.Lender's title insurance to Guardian Trensfer $1,560.00 � 1105.Lender's title poiicy limit $191,200.00 � 1106.Owner's titie policy limit $239,000.00 ______ 1107.Agent's portion of the total title insurence premium to Guardian Transfer $1,759.D5 __ 11O8.Underwriter's portion of the total title insurance premium to TRGC $195.45 , 11D9.Insured Closing Protection Letter to TRGC $125.00 1200.Govemment Recording and Trensfer Charges _ � 1201.Government recording charges (from GFE#7) $207.00 1202.Deed(6 Names)$60.00 Mortgage$127.00 Reieases$ __ 1203.Transfer taxes (from G�FE#£3) $2,390.00 1204.Ci[y/County tax/stamps Deed$2390.00 Mortgage$ 1205.State tax/stamps Deed$2390.OD Mortgage$ _ $2,390.00 1206. 1300.Additional Settlement Charges 1301.Required services that you can shop for (from GFE�6) 1302.Escrow for Inheritance Taxes to Secured Land Transf=rs-Mechanicsburg ___ $41,54118 13D3.2015 Township and County Taxes to Michael langon,Tax Colleclor �5g4.8� 1304.Duplicate Tax Bill Fee to Michaei Langan,Tax Collector ___ $1.00 1305.Initiation Fee to Logan Lane Court Conuominium Association C _ $500.00 1306.Resale Certification Fee to Susan Samuels $100.00 1307,Unpaid Quarterly Common Expense Assessments to Logan Lane Court $3,000.00 -Condominium Association C - 1308.Second Quarter Common Expense Asszssment to Logan Lane Court $1,500.00 -Condominium Association C = 1400.Total Settlement Charges(enter on lines 103,Section]and 502,Section K) $7,002.38 563,472.05 It you have any puestions about Ihe setllement char�es and loan terms listetl on this torm,please contact your lender.Setilement a�ent is not responsible ior content of lender's assessments on HUD. The seller's and borrower's signatures he�eon acknowledge iheir approval and signify lheir untlerstanding that taz and insurance pro:�ations and reserves are based on fgures for lhe preceding year or supplietl by otl�ers ur estimatetl for the currenl year,antl in the evenl of any change tor the current year,all nece�ssary adjustments will be made between borrower antl seller airecty.Any defcit delinyuent laxes or mortgage payoffs wili be promptly reimbursed lo the settlement agent Uy the sellzr. I have caretuliy reviewed the HUD-1 SeWement Statemenl and to lhe best ot my knowledge antl belief,it is true and accurate stalement of all receipls and disbursements made on my account or by me in ihis transaction.I further cenify that I have received a copy of the HUD-1 Settlement Statement. BUYERS SELLERS Estate of Carol Lorraine Smilh,alk/a Caroiyne L.Cibad Swartley Smith,a/k/a Kenneth R.Miller Carolyne L.Smith,a/k/a CaroPyne S.Smith Doris J.Miller By:Teresa Hower,agent fnrAaron C.Jackson,Execulor The HUD4 Settlement Statement which I have prepared is a true and acwrate account of ihis transaction.I have caused cr will cause the funds to be disbursed in accordance with this slatement. Settlement Agent Date O4/17/2015 "Any items marketl"POC"were paitl outside dosing by:Borrower POC(8),Lentle�POC(L),Morigage Bmker POC(M),Sel'��er POC(5 i,Real Estate Ac�ent POC(R),or Other POC(0). i ii i ;i � � 401500634-CL HUD-1 Page 3 of3 Comparison of Good Paith Estimate(GFE)and HUD-1 Charges Charges That Cannot Increase HUD-1 Line Number Good Faith Estimate HUD-1 Our origination charge #801 $795.00 5795.00 Your credit or charge(points)for the specific interest rate chosen #602 _ $0.00 Your adjusted origination charges #803 $795.00 $795.00 Transfertaxes # 1203 $2,390.00 52,390.00 Charges That in Total Cannot Increase More Than 10% HUD-1 Line Numbcr Cood Paith Estimate HUD-1 Government recording charges Jk 1201 3206.00 $207.00 AppraisalFee #804 _ _ $430.00 $430.00 Credit Report Fee #805 _ $z9.8z �z9•8z Life of Loan Tax Service �806 _ $60.00 $60.00 flood Life of Loan Coverage �807 $5.00 $5.00 Flood Determination Pee #809 _ $30.50 $10.50 Tax Certification Fee �810 _ $18.00 $18.00 Condo Insurance Fee �811 $30.00 $30.00 Y-oTal 5789.32 $790.32 Increase between GFE and HUD-1 Char�es !'r1.00 or 0.13% ChargesThatCanChange GaodFaithEstimate HUD-1 Initial deposit for your escrow account # 5001 $0.00 Dailyinterestcharges #901 $21.2400/day $339.84 $297.36 Homeowner's Insurance m 903 $0.00 $2D7.00 Title Services-Lender's Insurance S 1101 $225.00 $1,835.00 Owner's Title Insurance # 1103 51,595.OD $394.50 Loan Terms Loan Number: 3339213642 Your initial loan amount is S 191,200.00 Your loan term is 30 years YOUr initial interest rate is 4 � $912.62 includes Your initial monthly amount owed for principal,interest and any ❑x Principal mortgage insurance is �Interest �Mortgage Insurance �No.�Ves,it can rise to a maximum of 10 %.The first ._____._._-_._.__ change will be on 5/1;��0�0 and can chanqe again ........................_.._ . .. Canyourinterestraterise? every 12 mos. afrer 5/1;207'U , , .Every change date,your ........_ .......... . .._ interest rate can increase or decreise by 2.000 %.Over the life of the loan,Your interest rate is 9u�:rante=d to never be lower� than 2.25 °i,;or hlyher thaa 10 %. Even if you make payments on time,can your loan balance rise? X❑No.❑Yes.,it can rise to a maxim�m of$ _ _ ��_ Even ifyou make payments on time,wn your monthly amount ❑No.I�X� Yes,the first increase can t?e on� 6/1/2020 and the monthly ___ owed amoun[owed c n rise to$ 1,114.23 .The maximum it can ever rise to .____.___...�..__.- for principal,interest and mortgage insurance rise? is$ i,55Z.26 . Does your loan have a prepayment penalty? �Ila�Yes,your maximum prepayment penalty is$ ,,,,,,,,• nNa❑Yes,you have a ba��.lcon payment of$ __,,,due in Does your loan have a balloon payment? �---- years on . .__._..._. _..... .........._' X�You do not have a monthly escrow pzyment for items,such as property taxes and homeowner's insurance.You must oay these items directly yourself. �You have an additional monthly escrow payment of$ , _^_that resWts in a total initial monthly zmount owed of$ .This Total monthlyamountowed induding escrow accountpayments indudes principal,interest,anV mortgage insurance and any items checked below: �Property taxes �Homeowner'S insurance �Flood insurance �J _ ,.,.,,.,__. ❑-��.._ �._ Note:If you have any questions about[he Settlement Charges and Loan Terms listed on this form,please ccntact your lender. Initials _ iii ;i � � HUD-1 Addendum File Number. 401500634-Q ScEtlement Agent/Place of Settlement: Property Address: 3620 LOGAN STREET,7-C Guardian Transfer CAMP HILL,PA 17011 405 ST.JOHNS CHURCH ROAD, SIIIF,EMANSTOWN,PA 17011 COUNTY:CUMBERLAND Phone: (717)901-8342 PARCELID: 10-21-0275-363-UC00700 TOWNSHIP: HAMPDEN TOWNSHIP Seller(s): AARON C.JACKSON,EXECUTOR OF ESTATE OF CAROL LORRAINE SMITF„ A/K/A CAROLYNE L.CIBART SWARTLEY SMITH,A/K/A CAROLYNE L.SMITI�i, A/K/A CAROLYNE S.SMITH Buyer(s): KENNETH R.MILLER AND DORIS J.MILLER Settlement Date: 4/17/2015 10:00:00 AM Disbursement Date:4/17/2015 Loan Number:3339213642 Lender:Quicken Loans,Inc. Mortgage Broker: BuyerCharges SellerCharges Title and Escrow Charges Settlement/Closing Fee Buyerto Guardian Transfer _ $25.00 Notary fee to Guardian Transfer $40.00 Lender's Coverage to Guardian Transfer $1,360.00 Enhanced Policy Endorsements to Guardian Transfer $200.00 lnsured Closing Protection Letter to TRGC $125.00 Wire Transfer Fee to Guardian Transfer $55.00 Electronic Delivery&Handling Fee to Guardian Transfer $55.00 Overnigh[Mail to Guardian Transfer 515.00 Wire Fee for Proceeds to Guardian Transfer $15.00 Line 1101 Total: 51,835.00 515.00 Owner's Coverage to Guardian Transfer $394.50 Li�e 1103 Yotal: ;394.50 $0.00 I have care(ully reviewed ihe HUD-1 Addendum Statemenl and to the best of my knowledge and belief,it is true and acwrate state�r.ent of all receipis and tlisbursements made on my account or by me in this iransaction.I further certify thal I have received a copy of the HUD-7 Addentlum Statement. BUYERS SELLERS Estate o(Carol Lorraine Smith,allda Carotyne L CibaA SwaRley Smilh,a/k/a Kenneth R.Miller Carolyne L Smith,a/k/a Carolyne S.Smilh Doris J.Miiler By:Teresa Hower,agent for Aaron C.Jackson,Executor The HU�-1 Addendum Statement which I have prepared is a true and accurate account of lhis transaction.I have caused or will cause the funtls to be disbursed in accordance with this statement. Setllemen[A9ent Date 04117/2015 iii i �. � � ' � �_oC�� C�� _�. �� ____. y Property List�d�.r a G'aiu.�i as of January 1,2015 �ff�Ce �f t11�'' 1'�'�I�a C�Un� f�SSe55�r THIS VALL��V'lILL�3=A FAC70R IN � Q��l�c��l DYC]111Z }:O�O, r'�SSeSS01 DETERMINING�lGUrt20�15PhOPERTYTAXBILL 700 Squth Silver Ave • Dem�no, NR1 S803C� �-�``°� � '�'��,�,°� ��.- � r� PllOtle(575)546-0404 • Fc'lX(�75)546-4580 � _,',"� ��,�,�r THI>IS THE OPdLV NOTICE 0�VALUEYOU WILL RtCEIVE UNLESS YOU ARE TNt OWNEP,OF PERSONFL PROPERTY ORTAXABLE LIVE�T(t?��i IN51 RUCT;OPdS FOR PROTESTING F.NO RLING OF EXEMPTIONS P.P,E ON THE REVERSE SIDE. fOP,ASSISLANCE,CALL(575)546-0404,BETWEEN THE HOURS OF 8�,00.4M-5:00 Ft�i MONDAY-FRIDAY. Orfiaal Mailing Date 100138 03/31/15 ii,�,i�i�p��nniil�I�uP��iiin��unirir�nililir�ilii�ll� JACKSON,AARON C TRUSTEE OF THE s,5z9 '��< CAROL LORRIANE SMITH SPOUSAL TRUST �� " � i��'�' ' }' 409 N 2ND ST STE 500 0 4/3 0/15 HARRISBURG PA 17101-1357 _ , Owner Number 0063399 Nci Taxvblc V�lues ' "FULL VALUE"means the value derermined for property taxation puryoses.'TAXABLE willbealluca�cJ . VALUE"is 33�/39�0 of"FULL VALUE"."NE7 TAXABLE VALUE"'s'TAX.4BLE ;o Govemmcnrai Uniis in LUNA vALUE"less exemp�ions and is thz value which tax is imposed.This document constimces SCHOOL DISTRICT a pmperty ownzr's NOTICE OF VALUA7ION as required under Section 7-33-20 of ihe � � Nzw Mezico Property Tac Code. Land 1%f.:0 � 9 00 9 00 , . .._ .. . . �� - ---- _---� S`ructures 3 O51 195 406 079 • •• � 2 RANCAETTE L N/R 1200 ----------------------------------------------- ManufacNred � FILE 201900079 O1/09/14 ttome -- ----- — — --— --------------------- DEMING RANCHETTES . UNIT 99 BLOCK 6 � PersonalProperty TRACT31 ----------------------------_..------------------ 3 O51 145 394 079 �ivestock DEMING RANCHETTES -------------------------�---------------- uNIT 44 aLocx E TotalValue 1��i0 400 400 TRACT 32 ---------- -------------------------- Veteran's E�cemption _______________ ____________________________ - Heatl ot Household Exemption Olher&emption � � � Non-ResdenM1alTaxa6leVali:> 900 400 Es[imated 2015 antl � comparative 2014 base tax i��s�ry . 2014 rate per thousand ot 8.9 3 21.079 8-.93 �•` �� Land Stmctures ___________________._...___.________________________ � Manufactured Home '__"'_'_______"_'_"__.'__'_'...._'__'_____'__'_'______' Total Value 0 0 0 ---------- -- ._------ ----—--- Veteran's . ' &emptian ___'___'______' "...._.'__"__'__'__"_'__"' � Head of Householtl Exemptian - � __-_____'_____ _"_..""'__'_'____'__'____'_ Ofher Exemption Residential�TarableValue C 0 . Estimated 2015 and omparative 2014 base tax us�ir9 2014 rate per thousand of: Q� 19.521 .00 NOTICE:7"he calculatior��of aseimaicd p�operry tae may be highee or lower chan the aceual tuz that�.�ill be imposed and does not . include any speciai levies.The cstima-ed tax for 2015 is calculated by muleiptying the"Nc�Ta�uble Vaiue"by the 2014 tax race.7'he . � 201 S tax rates will be dateriruned in S pmmber by the New Mexico Depanment of Finaoce am,i Administratinn. �TO U�F.�:�i.TE-;9;.l_;��"�FERFORATICN �. 100130 �TO DeTACN.TE-� �:'�'d I "S�Or'iATiON'� �IIIII��I�IIIIIIIIII�I�IIIIIIIIIU��IIIIII'II'�IIIIIIIP�IIII�II� • I�" • ��"� Y JACKSON,AARON C TRUSTEE OF THE s�szs �- i�� ' t'' CAROL LORRIANE SMITH SPOUSAL TRUST �° •� I.I..�� s�.'` 409 N 2ND ST STE 500 HARRISBURG PA 1 71 01-1 357 owner Number 0063399 _ .• . �.• . . . . . • ��W�:� CORRECT MAILING ADDRESS PROPERTY CN�lNGE DECLARATION an�E. It Nere has heen a change to the slatus ol yo�•land or huilding,please check. �NEW PROPERTY USE: AI��GA��ftEss Q REMOVED i`)RESIDENTIAL 'TM s'"'E �'°`°°E Q ADDITION �J COMMERCIAL rE�Ep„o,�E „�,�E „,an O MANUFACTURED HOMES �,)OTHER SIGNATURE OF OWNER OR OWNER'S AUTHORIZE�AGENT DF,TE � X -�7529�t-7 /GW ;.: i i i � �, _ _ . _ � �'� � � � � r , ..� 4 . .i: . . n u .., . , . . . � F . i s � ��r � ' � . x ,... . . .. � . .. ' . _ � ... .. . . . 31-2ti306 ��I�G:C��9NT--B�tIF1��R � �UE �{aFE '� ! ACCOUNT MANAGER 69.A.APIDERS�Ed � _ 4�3�6605804—i � O1/20/2015 � � FOR INQUIRIES CGLL Q800) 724-6070 °�T�d�FOI�E N€lM��R �Bd�O�� I�A'�E . � 1510003473 01/05/?015 � �E'�IC��ICEPAL �DUE M $1�110.96 000000959 FCLN1047D30106150308 01 000000 �;Fj��r.�,�s� p�E ,:. � $545.30 • ti 959 ;�� CAROLYNE L SMITH E=�E�+ d�UE ; $0.00 122 STATE STREET ��F�R��fT:1�lptilil" �U� ' $1,656.26 HARRISBURG PA 17101 -r�r��. �as� ��'E $o.o0 �:;�Ti G#��R��:.; ...:.::? $0.00 ,��'��... �1� �1, ,:�k �,:.,,.i;> S 1 656.26 THlS IS hOT A BILL. �Q NOT S�ND PRY�9ENT. _ ___ .. ...._ __ __ _ _ _ _ ___ _ _ _ - ___ __ ___ _... __ ......_... _.._ _ .._.._ .....__. _. _....... ._ _ - _ . _ . . _. __ _.. _ _ __. _ _ _ - _ __ _ _ _ _ .. __ ..__ ____ _. __ _ __. ..._.. . .. . . .. . ... ._ ..... ....... _ _ _ __.____. _____ ___ ___ ____. . _.____ __-- _ _ _....... _ _._ .. ..___. .__.._... .. ...._... . __.._.... _ ____.. __ . _ ___ ___ _ _ _ _ ___ _._.... _ __..... ....__...... _ ___. .._ ........ . _.......__... .... ......... __ OBL F�A7`E dN ; F#tbM �'�'= �pLANG� RA'f E AMQ�kN�>i�U L D�SGii'i PT l D N _____. ____.___ __._ .___ ___._ = __.______ _ __ __ _.___> .._.. _. _ _ __._ ..___ ; __ __ . __.__. ____ _. __...._ _ ._._ ......_. ..__. . _ _ _ _ _._ _ __ _ _ _ - - _ .. .. __ __ __ _..._ ___._._ __._ .___ _.__..__ __ .____ .___.__._ ___. ._._ .._______ _.___ ___ __ _ -__ _ -- - ___._ __ . _.__ ____._ ..__ ___. ......... __.. .._ ____.. ._... ._. ___. __._ __._____ ________. __ ___ ___ - _ _ __ - .. _;:N:tlMB�R': ' ;: ;_: ,:: , , ,.. 000-0000-018 1/20/2015 $168,866.56 $1,110.96 PRINCIPAL 12/20/2014 12/31/2014 $168,866.56 3.75� $211 .09 INTEREST � 1/01/2015 1/19/2015 $168,866.56 3.75% $334.21 INTEREST � 1/20/2015 $0.00 ESCROW ' $1,656.26 TOTAL � � ' 51,110.96 TOTAL PRIN DUE ; � $545.30 TOTAL INT DUE � � ; � � i TH13 fS':I�1Q A':BILk,: �? N�IT SEN� P 1�1�1E�+1T. ;: " YUll3� D£POS 1 ACGOUN'F * **��*��G7# 11��.. �E :GHA�tG�k� $1�:5�6 26 T�T�L s -:. -_:. - : -::. ;: > , , � FCIR THE;:TQ �.:'- liM��NT � �;;#�3� ,�l1NUA#t ::�a, ��1� � _ _ _ _ � � � WE APPRECIATE THE �PPORTUNITY TO MEET YOUR CREDIT NEEDS. ACCOUNT INVOICE �W�� COMMERCIAL LOAN r.aR�ivnlF I SMITH NUMBER 99-6605804-1 NUMBER 15100�3473__ INVOICE DATE 1/05/2015 31-24306 PAGE 1 of 1 CLN IV1 7 �ois�s�is� MANUFACTURERS AND TRADERS TRUST COMPI�hIl` 213 MARKET ST., HARRISBURG, PA 17101 ; � �. W »..;- i ii i � � , „ _:, v. ��'I � � � .:. _ '; _ . � . .°" v ' : ` �; K � �< � � � � �'�� , ` 31-24306 - �E��9�DPaT` R1�B�I�ER :ER6,�� F3La3'�� ACCOUNT MANAGER R+1.A.A6VDERSO� �� 80�0932510�2 ______ 01/15/2015 _, FOR INQUIRIES CAIL (�00) 724-6070 �� H�� N�F�3�E�<�� 1�10574815 �12/31/2014 m� ��a a N�:�PA� DU� p_ � � 5�05.85 000001737 FCLN1047D30101150325 01 000000 ��g��.!�� ; $111 .88 . 1 1737 - ,,� CAROLYNE L SMITH �� : 50.00 � 122 STATE STREET ��t?R�.FfT ,R�+14uN� I�Ue $917.73 HARRISBURG PA 17101 r�T�� as� �uE So.00� ; ; , , , r��°� ��a�� ; i, So.o0 1 3 �i:i:iii��i�i•:: 7.7 �!;�:�:� 9 .::....:...........�,�',':........:.:;:.:;;. ...� :�,.... ......... :CkT::.::,.,:�.:.....:::...:.:..:::.. :.:.::�,:::;;; .:::::::::::.�:�:::::::....:::::..,.,� ... , . :.... . :::::.:... !i:��,: ;��;`:': .�N. 4� �'....�k. � �:::........�... S r' ?H!S I� NOT A B!!L. �JO N4T SEND P.4YMENT. _ _ _ . _ _ ___ __ __ _ _ _ _ U$L:E�A7 E i1N . �'#tQM ' Y� : BALANC� :; Et�4'1 E At±i44tNT �11E D�SCR f;k*T f ON ,;', _ ;; �l Ul�tB�J't . ' ' , < _ 308-5953-013 1/15/2015 $34,647.36 $805.85 PRINCIPAL 12/15/2014 1/14/2015 $34,647.36 3.75� $111 .88 INTEREST 1/15/2015 $0.00 ESCROW $917.73 TOTAL $805.85 TOTAL PRIN DUE $111 .88 TOTAL INT DUE TN'1 S f& .NQ A 'B E LL ': [� �I:OT 3EN� � Y�fE�1T YO�JR DEF.:.il�u� 1lGG4tiA'C ar *'�"�T'**`�Ex74� ELL BE. �HARGE[} $9�7 T3; 'F4'FAL F�3Et TH£ ;'fO k. ;:�41+�t�t1AT � E _�N .�AN;EiA�t 15. 20;1� M&T CASH MANAGEMENT CAN SAVE YOU MONEY & TIME. CALL 1-800-724-2240. ACCOUNT INVOICE �� COMMERCIAL LOAN �non� vn�c � CMITI-1 NUMBER 80-0932510-2 NUMBER 1410574-815_ INVOICE DATE 12/31/201 PAGE 1 of 1 31-24306 CLNIV1 7 �o�s�sns� MANUFACTURERS AND TRADERS TRUST COMP�NY 213 MARKET ST., HARRISBURG, PA 17101 i ii u� � - " www.fnk�monV€r�e.com Telephorie Bariking: 1-800-817-8787 First National Banic Customer Service: 1-800-555-5455 March 20, 2015 Buchannan Ingersoll &Rooney PC Attn: Kristen Lieb 409 North Second Street� Suite 500 Harrisburg, PA 17101-1357 Reference: Carol Lorraine Smith Estate EIN: 46-6995248 Dear Sir or Madam: As per your request, the following information is provided as of O1/04i2015: Checking 95034674 Opened 09-18-2013 Titled Carol Lorraine Smith Estate Aaron C Jackson, Exec. Balance $194,516.68 Accrued Interest $0.00 Estate Account If you should have any further questions, please do not hesitate to cor�.tact me at 724-983-2427, or contact our Customer Service Center at 1-800-555-5455. Sincerely, � �s�, � �x.�. , . _. Kate Thomas Deposit Support Representative Verifications p,J EQ.UAL HOUSING LENDER,MEMBER FDIC ii u� � APPRAISAL REPORT - i - THREE-STORY OFFICE BUILDI'l�d� LOCATED AT 124 STATE STREET CITY OF HARRISBURG,DAUPHIN C;�UI�TY HARRISBURG,PENNSYLVANIA �7101 FOR AARON C. JACKSON,ESQUIRE,TRUSTEE FOR THE ES71i ATIE. OF CAROLYN S. SMITH c/o BUCHANAN INGERSOLL&ROC�I'�tE�', PC 409 NORTH 2ND STREET,#50� HARRISBURG,PA 17101 b � � DATE OF REPORT SEPTEMBER 16,2014 PREPARED BY RSR APPRAISERS &ANALY'�'TS 3 LEMOYNE DRIVE, SUITE ��10 LEMOYNE,PA 17043 (717) 763-1212 RSR FILE NO. 14-173RB � i u. � appraise�!9� & analyst� September 16, 2014 Aaron C. Jackson, Esquire,Trustee for The Estate of Carolyn S. Smitl'n � c/o Buchanau Ingersoll& Rooney,PC 409 North 2nd Street, #500 Harrisburg, PA 17101 Dear Mr. Jackson: At your request we are transmitting this Appraisal Report on the property known as: 124 State Street City of Harrisburg,Dauphin Cotnnty Harrisburg,Pennsylvania 171�I1_ The subject property is a three-story office building containing 3,SSL square feet on 0.03 acres or 1,350 square feet in the City of Harrisburg, Dauphin County, Pennsylvania. The property is located in the Riverfront (RF) zoning district of the City of Harrisburg. The effective date of the appraisal is September 10, 2014, the date on which the property was physically inspected by William F. Rothman, IFAS, PA Certified General Appraiser and Robert E. McDonald, LicLr�sed Appraiser Trainee. RSR Appraisers&Analysts has not appraised this property in the last three years. The report that follows provides a detailed description of the pi�o�erty, and the basis upon which the estimated values have been developed. In this report, we have provided a value estimate which complies with the regulations of FIlZREA. It is our opinion that the market value of the fee simple interest in the subject property, in its "as is" condition as of September 10, 2014 is: �xX THREE IILINDRED FIFTEEN THOUSArm�D L�(>LLARS""Y ($315,000) 2 i ii.i u� � Aaron C. Jackson, Esquire Septeinber 16, 2014 Page -2- Although there did not appear to be any signs of environznentally �i�aza��dous materials on the site, it is suggested that a Phase I environmental audit be conducted on the �?abject property if such materials are suspected on the site. This letter does not constitute a full appraisal of the subject pro��crry. The narrative which follows contains the data and analyses fi-om which this value conclusion was deve,loped. This appraisal has been developed as if the property were free and clear of any liens or encumUrances. This appraisal does not include the value of aily personal property which may be attached to the real estate. This report has been completed in compliance with the Uniform Stan�lards of Professional Appraisal Practice adopted by the Appraisal Standards Board of the Appraisal Foundation on July 1, 2006, including Standards Rule 2-2, 8-2 and 10-2 of an Appraisal Repoi-t. This appraisal has also been completed according to your insh�uctions, which are included in the adden�a to this repart. Our compensation is in no way contingent upon the value esltima��e and we will be available to discuss the �ndings contained within the report with the resg�etiv�v parties at your request and convenience. Respectfully submitted, RSR APPRAISERS AND ANAL YSTS ,`\ , ,f� � � .� �-=-------- ` ��' (� _.� �_�� . _ William F.Rothman,IFAS I�ob�rt E. McDonald Certified General Appraiser Licesised Appraiser Trainee License# GA 000303L License#LAT000497 Expiration June 30, 2015 �xpir�tion June 30, 2015 3 . .. . . . . . . .. 1111111. II I11 �.. � . TABLE OF CONTENTS SUMMARY APPRAISAL REPORT 5 REAL ESTATE APPRAISAL R�PORT SUMMARY 11 SUBJECT PHOTOGRAPHS 12 AREA ANALYSIS 16 NEIGHBORHOOD ANALYSIS 19 SITE DATA �� IMPROVEMENT DESCRIPTION 24 ZONING 25 TAXES AND ASSESSMENT 28 HIGHEST AND BEST USE 29 APPROACHES TO VALUE 32 SALES COMPARISON APPROACH 34 INCOME CAPITALIZATION APPROACH 44 RECONCILIATION AND CORRELATION 51 CERTIFICATION 52 ASSUMPTIONS AND LIMITING CONDITIONS 54 ADDENDUM -PROPERTY CARD -ENGAGEMENT LETTER -QUALIFICATIONS OF APPRAISER -PRNACY NOTICE 4 i ii i �n � � APPRAISAL REPORT This is an Appraisal Repoi�t, which is intended to comply with the re��rti��g requirements set forth wlder Standards Rule 2-2, 8-2 and 10-2 of the Uniform Standards of Professic��ial Appraisal Practice (2014- 2015 edition) for an Appraisal Report. As such, it presents suimilar�✓ dis4,z�ssions of the data, reasoning, and analyses that were used in the appraisal process to develo� ihe appraiser's opinion of value. Supporting documentation conceizling the data,reasoning, and analyses is zetained in the ap�raiser's file. The depth of discussion contained in this report is specific to tl�e ileeds of the client(s) and for the intended use stated below. The appraisers are not responsible for unat��ho�•i:�ed use of this report. This report has been prepared in accordance with the Unifonn �tandaj•ds of Professional Appraisal Practice of the Appraisal Foundation, and the Code of Ethics and �tand�ids of Professional Practice of the Appraisal Institute. Client: Aaron C.Jackson,Esquire,Trustee for Th� Esi��te of Carolyn S. Smith c/o Buchanan Ingersoll&Rooney,PC 409 North 2nd Street,#500 Harrisburg,PA 17101 Appraisers: RSR Appraisers & Analysts William F.Rothman,IFAS,PA Certified Ca�;neral Appraiser Robert E. McDonald,Licensed Appraiser'rraimee 3 Lemoyne Drive, Suite 100 Lemoyne,PA 17043 Subject: 124 State Street,Harrisburg,PA 17101 Owner: The Estate of Carolyn S. Smith Date of Report: The date of the report is September 16, 2014. The effective date of the report is September 10, 2014. The effective date of the report indicates the��ei°sprr,tive fiom which the appraisers are exan�ining the market. 5 . � .i.�_. �. � . . O�vnership and Sales Histoiy: The property is identified as tax par�;el 0�--026-010 and is owned by Tile Estate of Carolyn S. Smith. The subject was purchased fi•om D�c�ual{:. O. Oesterling, co-partner of Gaylord Associates on December 20, 1994 for a consideration of :�1.(3��. This sale is referenced by Document NumUer 0254400001 in the Dauphin County Courthouse. Agreement of Sale: The subject property is not currently under an �,�,reEnlent of sale, nor is it currently listed for sale, to the best of our knowledge. Property Rights Appraised: The property rights under appraisal in this report are the Fee Simple ownership in the subject propei-ty. Fee Simple ownership is defined as "absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the govermnental powers of tax:ation, eininent domaii�, �olice power, and escheat." Definition of Market Value: Market value is the major focus of most real property appraisal assignments. Both economic and legal definitions of market value l�iave l7een developed and refined. A current economic definition agreed upon by federal financial institutions in the United States is: "The most probable price which a property should bring iu a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each actin,� prudently and knowledgeably, and assuining the price is not affected by undue stitnulus. I�nplicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: i) buyer and seller are typically motivated; ii) both parties are well infonned or well advised and actii�g in d�vhat they consider their best interest; iii) a reasonable tiine is allowed for exposure in the open ma��ket; iv) payment is made in terms of cash in United States dollt�rs or in tei7ns of financial arrangements compatible thereto; and 6 . . � i..i..i. i a. i v) the price represents the normal consideratio�l for the property sold unaffected by special or creative financing or sales concessions gi�antecl t�y a�iyone associated with the sale.t Definition of Use Value: Use Value is the value a specific prope�ty hus for a specific use. Use Value focuses on the value the real estate contributes to the properry as a w1�►ole., �vithout regard to the monetaiy amouilt that might be realized upon its sale. Current Use: The subject propei-ty is currently used as a three-story r�ffi+�e building. Scope of Work Rule According to the Uniform Standards of Professional Appraisal Practice (�_JSPAP) Scope of Work Rule: "For each appraisal, appraisal review, and appraisal consulting assignment, an appraiser must: 1. identify the problem to be solved; 2. determine and perform the scope of work necessary to develop credible assignment results; and 3. disclose the scope of the work in the report. An appraiser must properly identify the problem to be solved in ordeer to d�etennine the appropriate scope of work. The appraiser must be prepared to demonstrate that the scope of work is sufficient to produce credible assignment results."2 Problem Identification We have identified the appraisal problem as determining the "ag is'" market value, for the client's intended puipose for finaneing involving the property. Description of the Appraisal Process: The appraisal process ir�c�luded an inspection of the subject property by William F. Rothman, IFAS, PA Certified General A�pr��iser and Robert E. McDonald, Licensed Appraiser Trainee, on September 10, 2014, verification of all information with buyers, sellers, �Appraisal Foundation,Unifornl Standards of Professional Aopraisal Practice of the At��'aisal Institute,2014-2015 Edition, (Wash.D.C.:2014) �USPAP 2014-2015 Edition, �O The Appraisal Foundation,page U-13. 7 . . . � ii. i. � . brokers, public records, and/or with other lalowledgeable sources; a.Y_alysis of inarket conditions, � locationa] factors,physical athibutes and other pei�tinent factors. Ul this appraisal report, the Sales Conlparison A�proacl� and Incorne Capitalization A�proach were developed to estimate the "as is" value of the subject. The Cost A��roach was considered but not developed due to the age of the improvements and the difficulty in measu�-oi�.g depreciatioil. Scope of Work: The scope of this appraisal encompasses the researcli a�nd analysis of data required to prepare a reliable opinion of market value of the subject property. �I�e procedures used in the appraisal analysis of the subject property are as follows: Re�-ional and nei�hborhood data was gathered from various sources, incltcding public data sources such as the Pennsylvania State Data Center, CCIM Site to Do Business, and tkle United States Bureau of the Census. We analyzed specific neighborhood conditions through a neighborhood inspection. We have researched site data listed on the subject's tax assessment record, and the most recently recorded legal description. A site inspection was conducted on �eptember 10, 2014. Zoning information was obtained fiom the City of Han�isburg. Flood Zone information was obtained from FEMA. Current property assessment and millage information was obtained from the Dauphin County Tax Assessment Office. All site infonnation gathered is reasonable and considered accurate. Site data was obtained from an inspection of the property conducted on September 10, 2014. Further information gathered was obtained from the Dauphin County Tax Assessment records, and from in- house appraisal files. The Hi�hest and Best Use Analvsis as though vacant and as improv�d ��as determined through analysis of uses that are legally permitted, physically possible, financially feasible and m�iiilally productive. The determination of the Highest and Best Use is a conipilation of all relevant �narket conditions and anticipated yield rates. We have considered and develo�ed a market valu�."as is." 8 . . . - � i . i .. � In deterinining the�» roaches to Tlalue the appraiser collected data f��o11117ublic records, interviews wifll Dauphin County officials, iliunicipal officials, buyers, sellers, resi�ential buildei°s, real estate brokers/agents, residential pro�erty managers, and/or with other lulo��ed�;�eable sources. In addition to the above-mentioned sources, we have used data contained wiiYr�in �i�r data bank from previous assignments. A final reconciliation of value was deter�7lined based <yE1 ou�• professional judginent of tlie available data. This appraisal is to be used in wliole and not in parr. No �art of this appraisal shall be used in conjunction with any other appraisal repot-t. The current (effective date of appraisal) purchasing power of the dollar is the basis for the value opinion stated within; no extreme fluctuations in economic cycles are anticipaied. This Appraisal Report is a recapitulation of the appraiser's data, a1111yses, and conclusioils. Supporting documentation is retained in the appraiser's file. Exposure Time: Exposure time is different for various types of r�:,al estate and under various market conditions. It is noted that the overall concept of reasonable exposur•e encompasses not only adequate, sufficient and reasonable time but also adequate, sufficient and re��sonable effort. Based on the information presented in the body of the report, which follows, � reasonable exposure time for the subject property at the indicated market value is eight to twelve months. [The reader should note that exposure tiine is different than marketing time in that exposure time is alvvays presumed to precede the effective date of an appraisal, whereas marketing time is a time period irnmediately subsequeilt to the date of the appraisal.] Trends and Marketing Time: The economy in general has been strong for most all types of commercial property, as it proliferates throughout all regions of the country and especially central Pennsylvania. A reasonable marketing time assuines that the selle�- is il�otivated; the property is priced within a reasonable percentage of an appraised market value and is activ�ly advertised and marketed by a competent real estate broker or the like. A reasonable marketing time also assumes that the sale of the property would not require a�i�y unusual financing or seller concessicros. 9 . .. . . . . . . .. .. . .. � .i.i ..i. .u�. � . Consultations wifll area real estate professionals for tl�eir opinion ind�icated a range withiil a niue to twelve nzonth period of ti�ne in the central Pennsylvauia area. It is tl�e appraisers' opinion; the subject property would most likely eXperience a marketing tin�e of nine to twelve months g�placed on tl�e mai-ket for sale. The estimate of marketing time assumes tl�at the propei-ty is exposed iu tli�� open market at a reasonable asking price and that there are no distressed factors affecting its expasure in the marlcet. If the property is listed at a liquidation price, the estimated marketing period may U� less �ilan what the appraisers have forecasted. Intended Use of the Appraisal Report: The intended use of this re�>ort is�o estimate the market value of the subject property for estate purposes. Intended Users of the Appraisal Report: The intended user of this �eport is Aaron C. Jackson, Esquire, Trustee for The Estate of Carolyn S. Smith. Purpose of the Appraisal Report: The purpose of this report is to give �n opinion of value for the Fee Simple ownership foi•estate purposes. Function of the Appraisal Report: The function of the appraisal is fc�r estimating the "as is" market value of the property. 10 1111111. 11 II � . � REAL ESTATE APPRAISAL REPORT �i�J1��IT'�TARY Property Type: Three-story offic�;builrling. Location: 124 State Street, ��ity of HarrisUurg Dauphin County, �'ennsylvania 17101 Tax Map Parcel(s): 04-026-010 Owner of Record: The Estate of Ca��olyi-�� S. Smith Deed Reference• Document#025440a001 Lot Size: 1,350 square feet or f�.03 acres Effective Date of the Appraisal: September 10,2Q 14 Date of the Report: September 16, 2014 Property Rights Appraised: Fee Simple Improvements• The subject property is improved with a three- � story office building containing 3,552 square feet. Zoning: Riverfront (RF) Utilities: Public water, s�wer, e��lectric, gas and telephone Highest&Best Use of the Site as Vacant: Development with C?ffice Use Highest& Best Use of the Site as Improved: Continued use�s an office building Value Estimates: "As Is" Val�a�e 9� Effective Date Sales Comparison Approach: $300,000 September 10, 2014 Cost Approach: Not Applicable Not Applicable Income Approach: $325,000 September 10, 2014 Final Market Value Estimate"As Is": $315,000 �� September 10,2014 11 . . . . � u.i..i u� � SUBJECT PHOTOGRAPHS ' �� , i �_. � �� , � ��,r Subject Property: Front Elevation Subject Property: 13ear Elevation T � 'II ,�, � Street View: State Street(East) Street View: '�tate Street(West) y_„ —, - �.��'� �� .,: . : � � �� ik, ��„ -' ' � Interior View: Reception Area Interior Vie��c�: R��eption Area 12 1IIIIII..II IIl� � �\ , �d s� r �� '� � ..rM r � � €{ ;`� `�� S �� 3�I � � t �� A. �il v �� ;3 `Ls:r r� �: � `� � � i�[ �t i � � y�:� ,�� ?� � i t �� , � �� . � �� , � �4 � Interior View: First Floor Half Bath Interior View: Stairway I� �� k . y � ' '' �� I iis,;l1� �.:s �Ik� II�II ' � T' 1�, 4 . I � _, � 3 .. .,,,.:.Q:..i 3 y. � ��. Interior View: First Floor Kitchenette Interior Viev��: Trypical Office f, a. ; ,, i' , � �, k _i': � ,r�-` v� Interior View: Executive Office Interior Vie��rv: �econd Floor Conference Room 13 .. . .. . . . � i�.. i a � . �' �, � 'p� � � ilp. �9A t i;; R ft .�I11 £ a '� -.jf` ' _� ° I�I� � �� y � �� s- - �� "'_._,.,..,,,,,,,,,,�,�r,� �I�� ,,4 . �'�,��& � ��, <�,(% t Interior View: Basement/Electrical Panel Interior Viewa Ba�€�ment/Storage Area 14 . . � in,.i �. . . AERIAL PHOTOGRAPH ��..�� a; � � � , , , „.e a4� °�`h 1 � �� '4� � , �� '�� ; li� in 2�� :�.�.�: �sM� �}�� . �� . M v�� . �� I�ft�" �� -: �� aE�� . �'� . �. �. I�I�� .r ��. �� I�, a s � < � ��i, ' . " . ��: . � ��, .. . � � � , , �� ;,�"" �. ° _a �-'"' n �-� �;�; ;��' M I�� i i � TtiA�i ..15;�y l��'�'�'�,� � . �� , O�� i- ,h , �� r. O �� r ,j t � � Q�'1�2�J�{d'� �y: �.. a.7 . . :s nj i2�,C.`aa V� � �, Sr �� . ,r. "�.1. O46'�� ,.`�p . . ~�i� � �y a� a� ' � o� �� O� �� k; � � � �; �� o , p�G. � �� `v.. f`�.. � � ?1 O G:', ' G�-. `:s• � � � '-i'. ;� v� �_ �-'�4 ��• v� b.a `''S, , �� . J O s' C.^i. o y �, � p Y +" t'`�..u �,'�j � r � .. O y � � >l O � `' . ..'Gy , . . Y � j ' a 3 � 33a-007 Jp U ,.r ,:i % t`� �y'f'<:i' ti �: t 7 v . � .. �ft: Oa.. ,'�+ ' . � . . � �-� . � - . �} _ � � i S ' ,..,m,.v�,..,.,.. 15 . . . . . . . .. . . 1111111.II Illl � DAUPHIN COUNTY ANALYSII�� Regional Ovei-vie`v The subject property is located in Dauphnl County, Pem�sylvania. I�auphin County is bounded by Northumberland County to the north, Cumberland County across tire Susquehanna River to the west, Lancaster County to the south, and LeUanon County to the eas�t. I�auphin County, together with Cumberland and Peny Counties, foim the Harrisburg Metropolitan ��tatistical Area(MSA). At the heart of the MSA is the City of Harrisburg, the Capitol of the Coinmoi7we,alth of Pemisylvania, which is located 70 miles fronl Allentown, 80 iniles from Baltimore, 90 miles fro�� Philadelphia, 110 miles from Washington D.C. and 200 miles from Pittsburgh. Interstate high�vay routes 76, 78, 81 and 83 run through the MSA providing access to these markets. .��_._. .. tJ 1' D E R o revo an� -_. '- t 1'.THUI�A�EFLF.1 pMSWe � 'MLoY .. " e. � _ ,..�"� � ..-" v r t,9 i�F F L t� .. .. ........... . . .�'. .'. .. ' �y� .. ��`Mntt Je... eReedsvtlb .. . � •� ,."� Me9�s ale . � ,'da ham ...-. - :. .: .:� :�.:- -'.:. *^"` Tr h..Cressa . � c ',.pl49HendPrk:- J �J iJ A T .� . . . , -....0 LpK I DL � � o M L Isf .... . �-.. _... t . J - L�e� • V' . °w^ IAur mxl ...... 1Mron-cs � �. ' ��f� . _ -... � P'rxGrove - "' . - . ' __.x0 .•.@izabe[hvse � ....� . PorlROYdo ... ` t 'hVleisb�r9 'p�y. ' ....... . ..._ : , . �V[ .... ..... . ... _' S .. ' �' ' , ,.� ..' � NewPat: ..... -s:. .��.:' . �. D E d.N�-"•�T ._. :'. ..� aJunieleF �'� .ia) � ��.. ` .,'. .....�°s ' e eviAe ......-. HeW 1�i7,� -- .. . 'r�' F etl Icksbvrg .. � eioomreia o n u�a�N i u . � , . ;,y .' % r., . � Myerstowne � .'�' -' �y.••*"II:''. 5 tl Mil.�an Wortrot tl _ " � � . - . V E R R . � M Y� ", L Diestown. `wxi'-' A " -.. . Cle on J :.., _ . � ......P E 11 N.5�Y L V W"'FA L E BLnbN O J �.':: -- �t"4��NP k F>ImY ocah p _' ... a sFi Y .. oW Hr ' ' �d ` H Ns�O RW�ef tlHe�rtx � .: .. -' . .�. Cer�pk I rvn � C -�.' .....' ". W��nlerst+u 9,�� ewM � ...._ .._ �.:'. .. Mdtllese��; ... � CMqHtl1�= �• �'.. -- .- "— ; ..� ,.�,� Mxh N burff. � `P�A� ' T1,� < _-'�-. __ � .��,le �. � .�t'' ._ = .... �EPhete,. ��_J Y�:x e. C U 1�1 B E�"2a2.-i3 D "..`J F Perk 'il�xce hLl -� aMenM1tlm IXM1x Pkron - Newvll w�' B IAn9 . .. �la��d E�_ebNM�.•n RotMviAe� �..{I SP 95 .�te. ' .:- ` ��a kinson DiAxbur9 �wbnrylaw� . .^... pd burg ��. °M��SdIY AJN C 5 t � Leoloe � 9 c. � r M yt n fi� �^"' � .. " M e ca..� t32 ' Menc �y\. SFip�`ensbv9 Letivntte .. . ... '__ Lmeest .s'�� . . ' �E^9sv olumbl �0 " -,. � �' ..... ....... .. CmUtl a . .... .. Dover 01 Meru M ... � �j ........ ... .._. No.lh SI n arook y� B 1MWaw St sburge :T S��aM1e Yarke_o�ast YarY. Wv o.o Sireet, ,::. �.�yyty��York yj 9 rae.l . New. ��H,� B Ie�viAe �5 Prwitl c . ; �'-. Ge .. . r �v� C �, : „ .... PrY '_� o � �a(1�pf4 O � .� O A 11 5' ' .�o'�� D�laS.own I?etl Lion : ��. HiM ... �4 , � .� .. �. OwrrYvTe� -.' ._..._..� - SPrin9G�ove Y�F ��.! . New Oxiwd .�; "�. ' " M rR AR � , 6 Hottwoo0 � ' m200i M crosoft Cor.All ri ht resENecl^R9 � a�m�+� Regional Transportation The major traffic arteries and highway systems that run through the NI�A provide important litlks to other prunary and secondary markets in Pennsylvania and the noz-��lieast. Approxi�ilately 25% of tl�e U.S. population lies within a 250-mile radius of the Harrisburg area. 16 i ii., �i � � Interstate 76, also known a.s the Penusylvailia Turupike, links the a.r�:�� w'th Pittsburgh to the west and Philadelphia to the east. Ii�terstate 78 runs fi•o�n Interstate 81 iri L��banoil County, eastward to Allentown and ilorthern New Jersey. Interstate 83 rwls fi�om Harrisbtzrg ro Baltii�lore, and Interstate 81 ruils north to New York State and Cai�ada, and south to Tennessee. Other major roads in the area include PA Route 283, which runs fro�n :�[arrisburg to Lancaster, U.S. Routes 11 and 15, which run north to New York State and south �to 1`��f�ryland, and PA Route 581, which runs froin Harrisburg westward to the Naval Ships Parts +Conti•ol Center in Mechanicsburg. These roads are four lane limited access highways. A six-mile exte��sio�7 of Route 581 was completed in 1996,joining the road with Interstate 81. Passenger rail service is provided by Amtrak on ConRail's mai�x lii��e (formerly Penn Central and Reading Companies). The train/rail terminal is located in do��uto��vn Harrisburg at the recently renovated Harrisburg Transportation Center. Passenger rail service, is av,ailable to Pittsburgh and other destinations to the west, and also to Philadelphia along ConRail's northeast conidor. Freight service throughout the area is provided by ConRail. Contineiltal Trailways and Greyhound buses run out of a tenninal lacatec� in the same facility. Intercity bus service is provided by the Capital Area Transit (CAT); with routes throughout the East and West Shores of the Harrisburg MSA. The bus system provides important transportation services for many city residents who work outside of Hai•risburg proper. The area is also served by the Han•isburg International Airport (HI��), v,�hicl� is located 10 miles south of Harrisburg, along the Susquehanna River. Major carriers incluc�ie Air Canada, Allegiant, American Eagle, Delta Airlines, Frontier, United Airlines, and US Airways. '1'he �-�arrisburg area is well served with its own beltway. The combination of Route 581,I-83 and I-81 forin a circle around the immediate East Shore areas, Harrisburg City, and near West Shore areas. Larger cities such as Pittsburgh and Philadelphia do not have a full circle route around the core area. T11is as a large advantage to assist in the ease of h•avel around the city. 17 The Harrisburg MSA employment base is centered on state �Ei�c€ fe��eral govei-�lment and those government-servicing industries. Located in the center of the Harrisbt��g T'�aSA is the Pennsylvania State Capitol and over a dozen state office buildings. Military installatio��r� a��e a�so prominent in the area and include: 1) Mechanicsburg Naval Depot, aka Defense Distributio�� East; 2) New Cumberland Army Depot; 3)the U.S. Army War College lli Carlisle; and, 4)Fort Indiant'.own�iap. The Harrisburg-Carlisle area's non-seasonally adjusted unemployment rate was 53% percent in July, 2014, accarding to the United States Bureau of Labor Statistics. This fig�.�re compared favorable to both the Pennsylvania unemployment rate (5.7%) and the national rate (6.2%). MAP OF DAUPHIN COUNTY k:Fit)1�' � {�{�t�_t. kF � i.�.1t� {�kiili � � t i� ` iatStic:� ,-s��t. . � � r �t�`�` S1�E3�t t�="...y,�� ^'�'� �{� ��,��1 ,,,,.. �z`�:. F �� i'�� "�y� �p �tl'stt:" I 1',C ��\� 1 .:� , --.'"_` (�t.�.��t3��dl{t'I;t1 � �� , x iFw ".`, .ti � .< � ��»tt�� .. ��5�* � 4 It il`zI .1\ '� �i �, t`' , � � � �v �i� �+;c+�t�r6�t� �,� 1!:j±.3 r �` ?.�t� � .`�;�i�:�T - x � k [)\lf!'191�. ( ' *'{t,� ' t"s t'� � � ' }s �('{,�� r��il � �l.ti#�,�, , � i�:1fi�C ,lC�. .>�....,,�Tii- ♦ . �i�.5.�"�} .i�'.� i t'»,�i i'". � �'c�. 1 3Z�T'* ' Y � I''.,xz.x�ia � ftxa t!w�r— 1 i.1(tltii`sS�1Rt:' t 1��l�Iit)zl�;�� I��I � d t'ni t t"1�3.�\t .„�� d'�':= r_l1it;�=�� '`i (trl`( ��,I : f�r„�j.r �. -li.�t:t-- �'` _ H ;�i � G, ('?i,e�rli�r � � �'�" l4ti�INt� � �I �t 1!O r � b � 1�}) � �tlti �" ; -�� .� �._ � 9� �lFf�,llo�ifL�``� ��r�Y.ti T _"� �' r .7 h A i��k�€.�io.#:;� �� j� .�- z��.t�ilt�ll �1�. i i� , �:�,� 1# „ -� h �Y i'.i�,?i`.r E?...i 18 i i.i � . . NEIGHBORHOOD ANALYSIS—CITY OF I1ifa.I2�':�J[SBURG The ileighborhood analysis provides a bridge between the Area Aiyalysis and the study of the subject property. As in the Area Analysis, the goal of the Neighborhood An�!dysis is to deteniline how the operation of social, econoinic, governmental and environmental facto��s infl��.tence the value of real estate. �.��,� - �, � ��. � tsc�- y � ��5� Fo v� %' c`; v\`� h,`.�1� �� ` � �' ,';e State t�a Au�� a � �7,� �` oi Peni��.ylv 3nia '�' > �l Y�,� � SU"� 5tate Ser�,:�t, _,. � ,+Q�ti�� .�`'�` � Pennsylvania „�, C19� � � c �'�� Dept�(Aqinq - - a�� .' \OC . <? _ �� t q, I,;.it��ik(�I f��ar�t � ti y'�ay . v T}te Fire Ht7asc�,i�, ��" L. SJI �'%C�r- s;�U a` �P� Yv,�c/ sr . . � f�?5a � �y` �`YF��i)a cjC .±f , t ��. C� 'r�l c�o li�, , �_ � ,4�� Harrisburg Amtr �,, e," � Q.� �. � off � �r` � �., ,S �J ,s�, 9,�n o. S� � .,c.e% 5�� S � �� `��7/j� tiYt=ltakea Cer�ter tor r' /�j/� ;cience ai�d f7e Arts Pf S'C o. ''�� ' `S! ti ,c } � c �i-•i rr Car�nEy [T _�i ��( C)�� • ('�v�t asi!o �- c�� u .� `' AREA MAP Access: The primary access to the subject neighborhood is Front Str�et and Second Street, via l-83 from the south or I-81 from the north. Location Description: The subject neighborhood is the City of l�iarrisburg, Dauphin County, Peilnsylvania. The City of Harrisburg contains approXimately 11.4 squaee, miles in Dauphin County and is bounded by the Susquel3anna River to the west, Lower Paxton �I'ownship to the east, Susquehanna 19 ii u�. � Towi�ship to the north, and Swatara Towiiship to the soutl�. Harri��,l�urg l�ias long been a h•ansportation hub, with access to four major highways in the region. A quarter of the; couutry's total population is located within a 250-mile radius of Ha�n�isburg. Major metropu�litaix cities in the region include: Philadelphia,Pittsburgh, Baltimore, Washington D.C., and New Yor�c. Convenient access is available to employment centers, shopping, and major traffic arteries. Interstates 76 (PA Tw•npike), 78, 81, 83, Route 230 (Cameron Street), 22, and 22/322 are also inajor routes ii�ihe�-l�arrisburg region. Neighborhood Analysis An inspection was made of the area immediately surrounding the su��jeck site in all directions. A review of various available mapping data which describe the subject location �vas also made, inclusive of the Federal Flood Insurance Rate Map, Zoning Map, Assessor's Map, C7nitLd States Topography Map, and local street maps. Reference is made to the accompanying photographs �.nd maps, which provide some context and a visual overview of the location influences that affect the subject property, followed by a brief discussion of the obseived physical features and land use pattei•ns in �he neighborhood. Resirfer�tial: The majority of the neighborhood's residential development is concentrated to the east of Cameron Sn•eet (Route 230) in the Allison Hill district. Resident.ial development includes older style single-fainily attached and semi-detached dwellings. Commercial: The ileighborhood coiltains a large ainount of commercial space. The City of Harrisburg is abundant with commercial uses such as retail stores, banks, restai.�rants and offices. bzdustrial: The majority of the warehouse and distribution/mariufactiuring buildings in the City of Harrisburg are located along Ca�neron Street, which is a few blocks fi•om the subject property. The buildings are of older construction. 20 i i..i.. i a � Conclusion On March l, 2014, the City of Harrisburg emerged from receiv�x•ship, wl�ich ended years of state financial coi�trol of the city ai�d signaled the beginning of Harrisbtile��'s e�,cono�l�ic recovery. Although the city remains under Act 47, implementation of the state-approved "Harrisburg Strong Plau" has allowed the city to deal with a crippling debt load related to the city's incinerator aud balance its budget in 2013 and 2014, along with the expectation of a balanced budgs�ts through 2016. This, along witl� election of a new Mayor, Eric Papenfuse, portends well for the future of tizc� City of Harrisburg. The neighborhood primarily consists of commercial uses. Access to ar•eau� of emplo}m7ent is considered good due to close proximity to the Pennsylvania Capitol ComE�lex a.nd easy access to places of employment on both the East and West Shores of the Susquehanflz�i River. It is our opinion that the neighborhood life cycle is continued stability. 21 . 1III.I11 II I11 � � SITE DATA Tlte followiilg site description is based upon a pllysical ins�ection conduc��e�d on September 10, 2014. Size: 1,350 square feet or 0.03 acres Shape: The parcel is rectangular in shape. Topography: The topography is generally level. Drainage: Appears adequate. Flood Zone: According to Flood Hazard Map, Community Panel No. 42043C0319D, the subject property is located in ZonE, X, �reas outside the 100-year flood plain. Zoning: The subject property is located in the I�ivei-front(RF)zoning district of the City of Harrisburg. Environmental Hazards: None observed or reported. The appraisers are not experts in environmen- tal matters. A Phase I environmental t�st is suggested. Seismic Hazards: Not a recognized problem. Soil Conditions: The appraisers have not been made aware af any unusual or adveise soil conditions. Landscaping: None 22 i ii_.i u�. � Parking and Drives: There is no on-site parking, l�oweve�• ;11ete��E,d �ublic parking is a.vailable along State Street adjacent to the subje��. Yard Improvements: Granite curbing and brick sidewalks. Visibility: The subject site llas good visibility fio��x �tc:�t�� Street. Access: Access to the site is via State Street. ��ccess is considered average. Public Utilities: Public water, sewer, electric, gas and telephone services. Favorable Site Attributes: The site has good visibility witll all public�tilities available, located in close proximity to the Pennsylvania State (:apitol and downtown Harrisburg. Unfavorable Site Attributes: No on-site parking, mitigated by the availability of inetered parking on State Street. 23 i ii.a �i � � IMPROVEMENT DESCRIPTICti�AT Property Identification: The subject propei-ty is located at 124 Sta�E; St��e,et, in the City of Harrisburg, Dauphin County,Pemisylvania. The property inay be identified as Pa�rcel [D#04-026-010. Square Footage: The Class "B" office building contains a total�f 3,:i52 square feet of office space, according to Dau�hin County tax records. Year Built: 1920 No. of Stories: Three Construction: Masonry Foundation: Stone Roof: Sloped rubber roof Exterior Finish: Masonry brick Interior Finish: Walls are painted drywall. Floors are comiy7ercial grade carpet. There is a gas fireplace in the second floor conference room. Ceiling: Ceilings are painted drywall. Ceiling heigl�ts are approximately nine feet. There are four skylights in the atrium area on the secand floor. Windows: Double hung. Basement: There is a full basement, used primarily for storage. The floor is conci•ete and brick. Restrooms: There is a half bath located on each floor. HVAC: Gas fired heat with central air conditioning. Lighting: A combination of ceiling hung track and fluore;scent lighting. Amenities: Two-story atriuin with floor to ceiling glass a�ld four sky lights. Elevator: None Sprinkler: None Security System: None Overall Condition: Good Physical Adequacy: The design and layout of the improvements a��e��hysically adequate. 24 1II.I.I.II...II. II1L I ZONING �,�. �� ¢t�.� ^ ��,,�/,�,.��"`g�� Ft�N w!""''" pu N cS , �sti� �g�GC,S"'� � ��''� �8 ,vE.R� ��F� .I SxtiR .q._ � �,� � o�- � �� c� ��m 2 �N�R�� `3 � � � �m y � l? CX�� G.�i,��`�� L �� Q e� �� O �� :&��- I � . � �O��s C� ��'�`�� qt`. � �3; �� tL � _ ��z.�� • �� `kY�E �� P . � .- p e�� 2 y �`�� ,.�My, � � �� PGPD � �' '"` ��,�,� � `��v�N�P P a�'�',,�•�c' �v ,:��,�,��,.Q, � �� , <�� P ��QyP} Q�a . -��1, ' Q � � ��,�`'4 � Q'�' , '� ��. �,��1i� � ,�� "_� �� ,�� ,�G�i � �� .�;� � �`�� I d n �� .� I;I�� . ..::. . ii�5� . , .. ZONING MAP Zoning: The subject properiy is located in the City of Harrisburg's Riverfront (RF) zoning district. Permitted uses include: dwelling, attached; dwelling, detached; dwelling, ananufactured home; dwelling, semi-detached; supportive housing — family; adult day care; bt�asitless seivices; child care center; community ceilter; conference center; crafts or artisan's studio; ess�ntial seivices; florist; funeral home; library; medical or dental office; municipal owned uses; inuseim�, cultural or science center, or planetariuin; offices; post office; public utility facility; school, public o� �rivate, prnnary or secondary; swimming pool, non-household; theater, indoor and theater, out�ooi•. Uses permitted by special exception include dwelling, multifamily; supportive housing — facility; coffee shop/cafe; fitness centei; personal services; place of worship; research, engineering or testing facility or laboratoiy; restaurant; trade school and urban agriculture, livestocic. The subject propert� is �� pei7nitted use. A copy of the Zoi2ing Ordinance is contained in the addeildum of this report. 25 iii �i � � Area requireinents can be seen in the chart below: DE,V"ELOP\IE\T ST-1\��RDS Zoviug rliiuunuu Lot �finuuum Lot Frout I'ard SetUack '�-lniimum Rear .�iiiiinuun Side n'I��ililllilll Piincipai Dish�icts :�'ea and Deusity- \Vidth at Lot ��rd Setbac� Z`ard Setback Impzivious Buildin�Heiaht Front�ee LotCo��er�ee aud\�%idth Rivei'fi�ont ZA00 square feet �0 feet soudi 50 feet alon_Front li fret for 10 feet eaeh 7�°o Heieht:�6 feet (gF) of Reily S11'22T Strzet uoith of Rzily parcels alon� n�uumtliu Stl'2zt;1S f2zt�I011� Front Strezt� �5 fzzt �0 feet nonh Frout Sneet sauth of masunum of Reily Sheet Reily Snzet or 5 fzet for parcek couf�nuin�to esistiue alone State �etbacks. Street SztUacks on Statz Shzzt shall confomi to z�istins sztUack�. 26 IIII.I.11...11 IIAb � FLOOD MAP - zc3r,�r`x y ',� ' .,. ��g:; �. ,; III�4� �,..� fr1AP SCALE t"=540' •,. 'I§'��,. y , n o so5 +aaa �-' cEET *.. .,..., - _ ..;�� ykat'T .> •� ,, �"g ; � ��`��s' � ,4 , k . � � ` , y� Y�; �'�y' ��l�� °t E� C '� PANEL�J319❑ I . e n`-L P��; ��'`�`�t .l �� _ ___— _ - .f -._ �,T-.�. � � � r�� -�,t �FIRI� �` � � [��_ `.. �' �y�isA va � 41+�., ''� I�.��„'�i , FID�Q I!�SURAHCfl�ATE�l�P . ��: .�i;� , i3'�-�,,) � E� � '� (D:�U�'IiI\COC'�TY', ,. '1, —�� ^L;',I�rE`ti5��r�.��a;+. � "�� f,��r.u_t.i�itist7�c ric��s� � �� f'�� ;il,f(;1 � P PANEL 3i9 4F 3�7 . _ , .. . , � ,yyP�' �.4"..� . . _.. � ., . � , , t-. � i �. -. . `` ,,� ",� 1� I � � � � I t,M;� � .�_ � :� -- , �� . . . , w .� � �s�_. _ ,. ,. ., �,��. i°�;�� S'�l} � . � I$�aaa�==----��...t :f .1 �t� N n� 'w � � �� I I s�C� I�I£I„AIt il� 1 'hs..F� �i A .ia na 3 r� '1)� I 41�� ..., �H,� r . 4- �� aa� � i - ! � .� i��i��i �.•�Y �t�P NU1dBER � �''�E�:`, d�, ��`��i�I ��s^^� ��A43C0�14o Z � ,' I�;�� 'r �ISI�� EFFE�T�lE6ATE p f � .; " �' yi �.ii� AUGU;iaT�20�2 ,.�� jl}�rrF�" i��if ,7 I€ u��i,�';II �€�� .R ' . r a�� + I�� i I�il�f�.ir ��. ❑�cs ti . _..�'_�_� s�t! �I ' � r y 1 ;-� � I�1�� I F unKt�a �cicoF..khFir.� I�P�.��au �-�h�' _ � � 27 1IIII11.II II1l I TAXES AND ASSESSMENT According to the Dauphin County Tax Assessor's offce, Parcel (?4-07C-OlOis assessed at $226,300 ($41,100 for land and $185,200 for building). Total millage rates for Irauphin County and the City of Harrisburg as of January 1, 2014 are shown in the table below. Land: Coun Librarv Municipal School Ta�tal 6.876 0.35 30.97 27.9156 66.'1116 Building�inprovemeizts: Coun Librarv Municipal School � To�al 6.876 0.35 5.16 27.9156 4003016 Annual taxes for the subject are estiinated at $10,181 (($41,100 � 661116 / 1,000) + ($185,200 X 40.3016 / 1,000)). The implied market value of the property, based on its assessed value and Dauphin County's commou level ratio factor effective from July 1, 2014 throu�h June 30, 2015 is $305,505 ($226,300 x 1.35). 28 . . i u.i... u� � HIGHEST AND B�ST USE The highest and best use of a property is tl�at use to which the land cas� ��e put which will create the greatest utility for the laud, be it in profit or in amenities, and that which is pe�,•jnitt��-d or would be permitted by the local mu�licipal or township authorities, and that which would not be ufiduly objectionable to the character of the sut7ounding property and keeping within the scope of the gener�f neighborhood development. Elenlents affecting value, which depend on events or a combination o�f occurrences, which, while within the realm of possibility are not fairly showil to be reasonably l�J��obaa�le, should be excluded fi•om consideration. Also, if the intended use is dependent upon an uncertai�n act of another person,the intention cannot be considered. Highest and best use is considered as that use of the land,which may reasonably be expected to produce the highest and best retuin to the land, over a given period of time. Higliest and best use is that legal use which will yield to the land the highest present value. It is sometimes referred to as "optimum use". In estimating highest and best use,there are essentially three states of analysis: A. Possible Use: Uses to which it is physically possible to put the site in question. B. Permissible Use: Legal uses permitted by zoning a:nd deed restrictions on the site in question. C. Feasible Use: Possible and permissible uses that��ill �roduce the highest net return or highest present worth. The highest and best use of the land (site) if vacant and available for use may be different from the highest and best use of the improved property. This is nornlally true when tl�e im��rovement is not an appropriate use and yet makes a contribution to the total properry value in excess of tl�e value of fl1e site. The following test must be passed in determining the highest and best use: A. The use must be legal. B. The use must be probable,not speculative. 29 � .i..i.... . ua . C. There must be a profitable demand for such use ancl it r�lust return to the land the highest l�et return for the loilgest peric,d of t:ime. HIGHEST AND SEST USE AS VACANT: The highest and best use of land as though vacant assumes that the site is vacant or can be made vacant by demolishing the existing improvements.The questions to be answered in this analysis are: If the land is, or were, vacant, what use should be made of it? What type of building ar othei�improvement if any should be constructed on the land,and when? Le�allv Permissible: The subject property is located in the City of �jarrisburg's Riverfront (RF) zoning district. Permitted uses include: dwelling, attached; dwellii7.g, de��ched; dwelling, manufactured home; dwelling, semi-detached; supportive housing — family; adult: day care; business services; child care center; community center; conference center; crafts or artisa►1's studio; essential services; florist; funeral home; library; medical or dental office; municipal ownecl uses; museunl, cultural or sciellce center, or planetarium; offices; post office; public utility facility; school, public or private, primary or secondary; swimming pool, non-household; theater, indoor and theater, outdoor. Uses permitted by special exception include dwelling, multifamily; supportive housing— fa��ility; coffee shop/cafe; fitness center; personal services; place of worship; research, engineering oi• testing facility or laboratory; restaurant; trade school and urban agriculture, livestock. The subject propei-ty is a permitted use. Zoning is the only public restriction. Phvsicallv Possible: Here the shape, size, utility, and terrain o�tlle site are taken into account. The subject property contains one parcel. The shape of the parcel is rectangtilar. The site contains a total of 1,350 square feet. Topography is generally leveL The site has go��d visibility from State Street. There do not appear to be any apparent existing hazards on the site. Tl�e site operates on all public utilities. According to Flood Hazard Map, Community Panel No. 42043C0319I�, the subject property is located in Zone X, areas outside of the 100-year flood. Flood insurance would»ot be required for this property. The size of the site limits many uses. Office use would conform `��ll to nhe neighborhood and would be 30 i ni... �i �. � physically possible. While no soil or engineeri�lg tests were revie�r-°��d, :tl�e surrounding improvements suggest that there are no physical constraints on developinent of the subje�t site. Financiallv Feasible: Uses that meet the above two criteria must also be capable of providing sufficient revenue to meet operation expenses, the required rate of return on i��ivestment, ai�d the required rate of return on the site. An office use would be financially feasible. Maximallv Productive: It is our opinion that the subject property i.s suited for office use. Therefore, the highest and best use"as vacant" is for office use. HIGHEST AND BEST USE AS IMPROVED: The appraiser tries to identify the l�ighest and best use of the property as improved so that he can understand those uses that create the highest present value in relatian to the capital investment required. It also helps the appraiser to identify comparable properties for the iales Comparison and Income Approaches. In addition to analyzing the property relative to the faur criteria required for highest and best use, the appraiser must consider whether the need for renovation, expansion, demolition or any combination of these actions will increase the return oi1 ulvested ca�pit�l. T11e subject site is currently improved with an office building containing 3,552 square feet. The parcel is situated on 0.03 acres of land. The improvements on the site are in good cotidition, and demolition is not warranted. The highest and best use as improved of the property is continued use as an office building. 31 . . 1IIII.II...II IlaL � THE APPROACHES TO VALU�� Typically, after analyzing the physical cliaracteristics of the subject a��d cu��rent conditioils within the real estate nlarkets, three approaches to value are developed to arrive at �three separate indications of the subject's value. These tliree approaches, the Sales Comparisol�_ Ap}�roach, Income Capitalization Approach, and Cost Approach arrive at a value indication through. dis�>��nilar methods and the use of different types of data. However, these three approaches are not always unrelated, and some aspects of each approach may be applicable to the others. In applying t11e Cost Approach to value, the a�praiser attempts to f��stimat:e the difference in worth to a buyer between the property being appraised and a newly constructed building with optimal utility. The depreciated replacement cost of the improvements is estimated by an,�lyzing three forms of depreciation; physical deterioration, funetional obsolescence and external or economic c�bsolescence. This depreciated replacement cost is then added to the market value of the underlying site, to arrive at a value indication for the subject. The Cost Approach was considered but not developed for the subject property due to the age of the improvements and the difficulty in measuring depreciation. In the Sales Comparison Approach, market value is estimated by comparing the subject to similar properties which have been sold recently, or to properties which are currently offered for sale. The analysis of the sales relative to the subject focuses upon differenc�;s ir1 legal, locational, physical and ecotlomic characteristics. This approach is applicable to all types oi' real property when there is sufficient data in the�narket. The Sales Approach was developed to estimate the value of the subject. Real estate which is capable of producing income through rents and leasing is often purchased as an investment. From the buyer's point of view, the earning power of a property is the most significant determinant of property value. The buyer is essentially trading pi•esent dollars for the right to receive future income. Development of the Income Capitalization Approach ineolves estimating net operating income by analyzing encuiilbering leases, market rents, market occupailcy levels and absorption rates, and expenses. This net operating incoine is then capitalized at an appropriate rate, which is also determined by tl�e market,to arrive at a single value estiiilate. 32 . .. 1III.III...II..I14�, � . The Income Capitalization Approacl� was developed to estimate thc valt�.e of the subject, since office buildings similar to the subject are frequently leased to a third party. After developing each of the ap�l'oaches to value, the three value estiln�tes are reconciled into a single estimate of value for the subject property. Since the approaches involve different tech��iques, and the reliability of data involved in eacl� technique may vary, the mark�t value is usually based upon the approach which utilized the strongest market evidence. 33 i ui i . � SALES CONIPARISON APPROA.C��; The Sales Comparison Approach is a nlethod of esti�nating lnarket ��alu� where the subject property is co�mpared to similar properties which have been sold. The main pr�r�lise of this approach is that the market value of a particular property is directly related to the prices ��f siE.��,ilar, competing properties in the market. The analysis of the comparable sales focuses upon differf��.c��;s in legal, physical, locational � and economic characteristics as well as differences in property rights con�✓eyed, dates of sale, financing and the inotivations of the buyers and sellers.3 The principles of real estate appraisal involved in the Sales Compa��ison Approach include Supply and Demand, Substitution, Balance and Externalities. The Principle of��iupp3� and Denland suggests that if demand for a property is high, prices will rise; if demand is low, przces �vill decline. Shifts in supply will often lag shifts in demand since supply may only be created as fast as it takes to build a building, or improve land suitable for developing housing. The premise of the �rinciple of Substitution is that the value of a property tends to be set by the price that would be paid to �cquire a substitute property of similar utility and desirability. The Principle of Balance focuses upcin the balance of supply and deinand, which tend toward equilibrium. The balance of supply and de�il�lnd will change coiztinually due to shifts in population, purchasing power, and preferences. Construction of new buildings and deimolition of old ones cause supply to vary. Finally, the Principle of Extei7ialities holds that external forces may positively or negatively impact the value of a propei-ry. Cl�ailges in the economic cliinate, political clinlate, or just the neighborhood in general will have an impact on values. The application of the Sales Comparison Approach involves thorou�h analysis of sales in the �narket to determine the inost comparable properties to the subject. Once t11es�; sales are researched they are compared to the subject property through appropriate elements of compae-ison. Units of Comparison An important step in the Sales Comparison Approach is the selection of an appropriate unit of comparison, i.e. the components into which a property may be divided for puiposes of comparison. In 3 The A�praisal of Real Estate, 13th Edition;The Appraisal Institute,2008. 34 iu..i.. u� i the analysis of the subject property, the p��ice per square foot is t11e�. app��c�priate unit of comparison for office building sales. The subject property consists of a 3,552-square-foot office buildin� c�n a 0.03-acre or 1,350-square-foot lot located at 124 State Street in the City of Harrisburg,PA. Elements of Comparison Key value elements under scrutiny that may require adjustments are: ��roperty rights conveyed, financing terms, conditions of sale, date of sale, location, and physical characte;risti�:s. 35 iii ii i � i COMPARABLE OFFICE BUILDING SALE ONE > � � Location: 252 Boas Street, City of Harrisburg Dauphin County,Pern�sylvauia Transaction Data: Consideration: $204,900 Sale Date: September,2014 Grantor: James R. Ronca Grantee: William J. DurUurow,Jr. Parcel ID: OS-020-010 Conditions of Sale: Arm's Length Property Rights: Fee Simple Financing: Conventional Mortgage Verification: Tommy Posa�ec,Laildmark Commercia] Realty,listing agent 717-731-1990, Public records Improvement Data: Size: 2,545 square feet Age/Condition: 1900/Good Construction: Three-story w/brick Site Data: Site Size: 0.04 acres or 1,620 square feet Topography: Level Public Utilities: All public available Zoning: Medium Density Residential Appraisal Measures: Sale Price per SF: �80.51 Comments: This is the sale of a Class "C" office building located in n7idtowi� Harrisburg. There is no on-site parking. The building has oil heat and central A/C. Land to building ratir�was 0.64 to 1. 36 iii_i i � i COMPARABLE OFFICE BUILDING SALE TWO . _�---m,� �¥.< / � � �'. �:. � A Location: 219 State Street,City of Harrisburg Dauphin County,Peimsylvania Transaction Data: Consideration: $225,100 Sale Date: July 2014 Grantor: WCI Partners,LP Grantee: Kevin and Bethany Sidella Parcel ID: 04-018-011 Conditions of Sale: Arm's Length Property Rights: Fee Simple Financing: Conventional Moi�tgage Verification: Kevin Sidella,grantee Improvement Data: Size: 2,280 square feet Age/Condition: 1900,renovated 2011/Very Good Construction: Two-and-one-half-story brick Site Data: Site Size: 0.049 acres or 2,178 square feet Topography: Level Public Utilities: All public available Zoning: Riverfront(RF) Appraisal Measures: Sale Price per SF: $98.73 Comments: This is the sale of a two-and-one-half-stoiy Class "B" �ffic:.e building located in the City of Harrisburg one block east of the subject on State Street,that was renovated in 2011. There are 6 parkiilg spaces on-site. Land to building ratio is 0.96 to 1. 37 i ii �iu � i COMPARABLE OFFICE BUILDING SALE THREE �-- � �,,,�,,� _ ,��j , � Location: 122 Locust Street,City of Harrisburg Dauphin County,Pennsylvania Transaction Data: Consideration: $130,000 Sale Date: July,2014 Grantor: DLK Partners,LLC Grantee: Pe�ulsylvania Legal Aid Network, Inc. Parcel ID: 04-031-015 Conditions of Sale: Arm's Length Property Rights: Fee Simple Financing: Conventional Mortgage Veri�cation: CoStar,Public records. Several attempts to contact the grantee to confirm this sale were unsuccessful. Infonnation regarding this sale is believed to be correct. Improvement Data: Size: 1,703 square feet Age/Condition: 1900/Good Construction: Two-story w/fraine construction Site Data• Site Size: 0.03 acres or 1,�59 square feet Topography: Level Public Utilities: All public a�ailable Zoning: Downtown Center Appraisal Measures: Sale Price per SF: $76.34 Comments: This is the sale of a Class "C" office building located in ciowntown Harrisburg. There is one (1) parking space on-site. Land to building ratio was 0.80 to 1. 38 i i..i � i o i COMPARASLE OFFICE BUILDING SALE FOUR .�� :_�,:, ,� .._r�...,.,��,,�-�--� � Location: 17 North Front Street,City of Harrisburg Dauphin County,Peimsylvania Transaction Data: Consideration: $525,000 Sale Date: May 2014 Grantor: County Coimnissioners Association of Pr1, Grantee: Hai�risburg Buildings and Grounds Parcel ID: 03-003-034 Conditions of Sale: Arin's Length Property Rights: Fee Simple Financing: Conventional Mortgage Verification: Greg Rotlunan(Listing Agent,RSR RE�LTORS)717-763-1212 Imarovement Data: Size: 5,864 square feet Age/Condition: 1900/Good Construction: Tln�ee-story brick Site Data: Site Size: 0.12 acres or 5,227 square feet Topography: Level Public Utilities: All public available Zoning: Riverfront Appraisal Measures: Sale Price per SF: �89.53 Comments: This is the sale of a tluee-story Class "C" office buildin� located in the City of Harrisburg along Noi�th Front Street. There are 25 parknlg spaces on-site. Lvld to buildin�ratic�is 0.89 to 1. 39 i'ii i � i COMPARABLE OFFICE BUILDING SAL� FIVE ��: �� x�" ':�: �� .F -`� ,�� ,�w Location: 511 North 2nd Street, City of Harrisburg Dauphin County,Peimsylvailia Transaction Data: Consideration: $240,000 Sale Date: February 2014 Grantor: Craig A.Longyear Grantee: Louisa B. Eyler Parcel ID: 04-017-003 Conditions of Sale: Arin's Lenb h Property Rights: Fee Simple Financing: Conventional Mortgage Verification: Greg Rotlunan(Listing Agent,RSR REALTORS)717-763-1212 Improvement Data: Size: 3,476 square feet Age/Condition: 1900/Good Construction: Three-stoiy brick Site Data: Site Size: 0.07 acres or 3,019 square feet Topography: Level Public Utilities: All public available Zoning: Commercial Neighborhood Appraisal Measures: Sale Price per SF: $69.04 Comments: This is flle sale of a C1ass "B" office building located in tl�e �ity of Harrisburg along North 2nd Street. This property has a two-car garage. Land to building ratio is 0.8?�0 1. 40 IIII.I.1...JI IN11 1 COMPARABLE SALES ADJUSTMEI'§,7, G��ID COMPARABLEOFFICESALFS SUBJECTPROPERiY SALEI SALE2 ��^��.••�SALE3 SALE1 SALES LOCA710N 12'Statc Sticct 252 Boaz Strcet 2l9 S�ate Strcct 122 l,ocusl Strect U North Front Strca il l Nonh 2nd Streci TOWNSHIP Citp ot Harrisbue Ciq�of Hamsburg Cih�oF Harrisbur� Ciiy�of Harrisbur� City of Hamsburg City oCHarrisbnrg COUNTY Dauphio Dauphin DaupUin Dnuphin Dauphin Dauphin DATEOFSALE N/A Scp-14 1u415 Juld4 Map-IJ Fcbruap--14 CONSIDERATION N/A 3203,900 SLi,1W 5130,000 Si2>,000 S2JQ000 SQUAREFEET 3,552 25q5 2.2A0 1.703 3.564 3;M176 PRICE PER SQUARE FOOT N/A SA0.51 S9RJ3 576.31 SR9.53 SG9.OJ PROPERTYRIGHTSCONVEYED N/A FeeSimple FceSimple _�_,e.;Sim le FceSim Ic FceSim le FINANCING N/A Com�cntional Com�entional � f.;on�en�ional Conrcntiond ConccNional CONDITIONS OF SALE N/A Ami s Lcngh Arm's Lengh �_a:n�'s Len h Ami s Len h Ami s Lcn h TIME N/A 0% 0� ,_.,��,_,__ 0% 0% LOCATION Dm3ntm�'n,NearCapitol IO% 0% �� 14� ACCESS&VISIBILITY A�rra�clGood 0% 0% i% 0% 0% AGE&CONDITION 19UU&Good 0% -5% 0% 0% 0% QUALITYOFCONSfRUCTION Masonry6rick 0°�0 0% 10% 0% 0% SPACEUSE ProfcssiooalOtticcs 0% 0% U% 0% 0% SITECHARACTERISTICS Rcctaovular/[c�cl 0% 0% 0% 0% 0% SITESIZE 0.03Acres 0% 0% 0% 0% 0% UTILITIES Allpublica�ailabic 0% 0% U% 0% 0% PARKING Nouc �� -�� '�� ZONING Ri�edmn[ 0% 0% 0% U% 0% FLOODZONE No 0% 0% 0% 0% 0% ECON0�41ESOFSCALE 3��52squamtect -i% -i% -10% 10% 0°6 NETADJUSTMENT 5% -IS"/o 10% 0% 5% ADJUSTmPR[CEPERSF 587.5� 583.92 SR3.97 S89.53 S72.i0 mrs�¢r� Comparable Sales Adiusted�/SF Comparable Sale Five $72.50 Comparable Sale Three $83.92 Comparable Sale One $83.97 Comparable Sale Two $84.54 SUBJECT PROPERTY $85.00 Comparable Sale Four $89.53 41 i .i..i.�i iia� i Discussian of Comparable Office Sal�s In general, an upward adjustment will be made if the comparable is ilif��ior to the subject for a given element of comparison and downward where the comparable is supe�•ior to the subject for a given element of comparison. Elements of Comparison: Key value elements under scrutiny that may rec{uire adjustments are conditions of sale, financing ternls, time, location, improvement cl�aract�,ristics, functional utility and site attributes. These factors are the primary influences on improve;merit prices and tend to affect the differences in price levels. Property Rights Conveyed: A transaction price is always predicated on the real properry interest conveyed. Many types of real estate, particularly income-producing properiy, are sold subject to existing leases. The income potential of a propei-ty is often limitec�t by the terms of eXisting leases. In these situations the real pro�erty that is sold is the leased fee estat�; as subject to the existing leases. Comparable property sales were all fee simple. No adjustments are war�•anted. Conditions of Sale: This adjustment is applied if there are any unusual circumstances surrounding the transaction, such as foreclosures, bulk sales, related parties, assemblages and the like. All ofthe sales were aim's length, verified to have taken place under conditions rec�uisitP of a inarket hansaction. No adjustments are warranted. Financing Adjustments: The comparable sales have been adjusted foi• financing terms if applicable. This adjustment renders the sales pi'ice to cash equivaleirt terms. ��Vher� favorable (below market rate) financing terms are nlade available by the seller, the difference betwe�e�i the favorable terins and the market rate terms is estimated. All of the coinparable sales ��ere purchased wit11 conventional fina�lcing. No adjust�nents are warranted. Market Conditions (Time): After adjusting the sale comparable�, ior tinancing and conditions of sale, the sales must be brought currer�t by means of a time adjusti�lent if the market warrants. All of tlie 42 IIIIII .II IIII11 . I co�nparable sales have taken place sii�ce 7anuary 2012. No signi%icai�t changes have occurred in the market during the intervening moi�ths, so no adjushnents are warrant�;d. Sale 1 was adjusted upward for its inferior location on Boas ��'sti•ee�t in Hai-��isburg. A downward adjustment was made for economies of scale (2,545 squai•e feet). Sale 2 was adjusted downward for its superior age and condition (rei�.ovated in 2011). A downward adjustment was made for its superior parking (6 spaces), and a ciown��ard adjustment was made for economies of scale(2,280 square feet). Sale 3 was adjusted upward for its inferior location on Locust St�eet; and for its inferior access and visibility. An upward adjustment was made for its inferior quality of construction. A downward adjustment was made for economies of scale (1,703 square feet). Sale 4 was adjusted downward for its superior parking (25 spaces). ?�n upward adjustment was made for economies of scale (5,864 square feet). Sale 5 was adjusted upward for its inferior location on North 2°d Street. A downward adjustment was made for its superior parking(2-car garage). Conclusion—Sales Comparison Approach "As Is" The comparable sales are indicated on the Sales Adjustment Grid. Thc adjusted price per square foot rauged from $72.50 to $89.53 per square foot with a mean of$81.O1. Less weight was placed on Sales 1 and 5, as theii- locations are least similar to the subject. More ��v�igl�t was placed on Sale 2, as it is located on the next block east of the subject. Based on the forego'rng arialysis, we estimate a price per square foot of$85.00 for the subject property. Therefore, it is our opinion that the "as is" Fee Simple value of the subject property as of September 10, 2014 is $301,9?0 (3,552 SF x $85.00/SF), rounded to: Y Y *THR�E HT_1NDRED THOUSAND D�)LL�iRSY Y :� ($300,000) 43 ii i.� i INCOME CAPITALIZATION APP�'.�[�A�.�i The Inconie Capitalization Approach consists of inethods, tecllniques, a��d procedures that an appraiser uses to analyze a property's capacity to gei�erate iilcome and conver�s this income into an indication of value. One basic investment preinise is that the higher the earnings, t�le h�igher the value. This approach allows the appraiser to step into the shoes of the ty��ical imvestor, being concerned with the property's income potential and future marketability. The preseirt value of cash flows and future sale proceeds are quantified based upon the timing, duratiou, stability and risk of these conlponents of investment return. The investor h•ades present dollars for the right tio receive future dollars in anticipation of making a profit. This is the Principle of Anticip��tion, which is fundamental to tlle Income Approach. Anticipation is the perception that value is created by the expectation of benefits to be derived in the future. In the real estate market, the current value of a pi-operty is us��ially not based on its historical prices or the cost of its creation; rather, value is based on market l��artici��ants' perceptions of the future benefits of acquisition 4 Like the Cost and Sale Comparison Approaches, the Income Capitalization Approach requires extensive market research. Research and data analysis far this approach is conc�erned with supply and demand factors, which effect market trends. The Income Capitalization f��ppi-oach was used to estimate the market value of the subject property. Introduction The subject property is a 3,552 square-foot three-story office building sitt�ated on a 1,350-square-foot lot along State Street in the City of Harrisburg, Dauphin County, Pe�v�sylvania. The property is currently subject to a lease between Gaylord Associates, Lessor (an entity owned by the property's owner, The Estate of Carolyn S. Smith) and PPO&S, Inc. (of which Carolyn �. Si��ith was a princi�al). A copy of the lease is included in the adde�7dum to this report. The lease at the� sul?j�ct property is a triple net lease, 4 Appraisal Institute,The A�praisal of Real Estate, 14`h Edition,(Chicago: 20131 44 i .i..i..� m� � with the tenant resl�onsible for all utilities and real estate taaes �n th.e property. T11e landlord is responsible for maintaining hazard insura.ilce on the property. T12e l�ndlord is also responsible for paying management atld leasing fees as well as reserves for replacer�ten� of the roof and HVAC system. The details of the existing lease are as follows: Tenant: PPO&S, I�lc. Amlual rent: $54,700 Rentable Area: 3,552 square feet Rent/Square Foot: $15.40 Lease Expiration Date: December 31, 2015 Remaining options: None Terms: Triple Net. Landlord is required tU ma�ritain hazard insurance on the property, however. Market Rent Analysis Properties such as the subject are often leased to third parties. The b�conie Approach was developed because the subject property is capable of producivg incoine in its pres�;nt state. Comparable leases at similar low-rise office buildings in the subject's market area can be seen on the following chart: : , ,. ,, `�°= s`2.5� Address Commencement Date Tenant SF Occupied Rent per SF Lease Type fNN Equivilai Use Floor 205 State Street,Harrisbw�PA February-14 Confidential 2,433.00 $9.95 +Util $12.95 Office lst 202 State Street,Harrisbure,PA April-2013 Confidential 1,150 1312.00 NNN $12.00 Office lst 202 State Street,Harrisburg,PA March-2013 Confidential 1,150 �I5.00 NNN $15.00 Office 2nd 219 State Street,Harrisbure,PA June-2014 Confidential 2,280 b18.59 gross $11.66 Office ]st High 1,666 $15.00� $15.00 Lo�v 1,150 �11.66 $11.66 Average � 1,527 $13.89 $12.90 �� Potential Gross Income Potential Gross Income (PGI) is the total potential income attributable to the real property at full occupancy before operating expenses are deducted. The subject pro�7erty is cui•rently occupied by an entity in whicli the owner was a principal. Therefore auy existin�; ieas,�� is not arm's lenb 11, so we will use market rents for our income analysis. Our research z•evealed leases for office space on State Street 45 i ii i � i ranged from $11.66 to $15.00 per square foot NNN, with an ave:,��ge of $12.90 per sqtiare foot. The suUject property does not have any parking, so we would anticipate �l�at il��e subject would lease at a rate toward the lower end of the range. We have chosen a lease rate of�12.�i} per square foot NNN. Based on the foregoing analysis, we have determined the potential gross inco�ne for the subject at $42,624 ($12.00/SF gross x 3,552 SF). Stabilized Vacancy and Collection Loss The Korpacz Real Estate InvestoN Survey published by Price�vaterhouse(��oopers LLP(PWC) 2"d Quarter 2014 National CBD (Central Business District) Office Market surr��ey reilects vacancy rates from 3.0% to 15.0%. The 4t�' Quarter 2013 Market Watch report compilcd l�y Tom Posavec of Landmark Commercial Realty reflected a vacancy rate of 9% for the Cent�•a�.l Blasiness District. Based on this infoi7nation, we have chosen a vacancy rate of 8% for the subject propert}�. Vacancy and collection loss is calculated at$3,410($42,624 x 8.0%). Effective Gross Income Effective gross income is calculated by subtracting the vacancy and cc�llection loss fionl the potential gross income of the property. For the subject properiy, this results in an effective gross income of $39,214 ($42,624 - $3,410). Expenses In a triple net lease, all operating expenses such as utilities, real estate taxes and insurance are paid by the tenant. The landlard is typically only responsible for manag��inenr�: fees, leasing commissions and reseives for repair and replacement. Management The subject property involves asi office building requiriug soille manag;ement. Conversations with local investors indicate that manageinent typically ranges from 3% to 6% of the effective gross income of the property. According to a national survey, management fees are currently ranging between 2% and 5% with an average of 3.43%. Professional fees are included in this e,Kpense category and a rate of 4% is considered reasonable. Therefore, management fees total $1,569 (9�39,`�ll4 �4.0%). 46 i .i..i_i iu� � Leasing Fees Leasing fees are paid to tlie brokerage compaiTy who leases the space to a fllird parry tenant. According to a national survey, leasing fees are cun�ently ra�iging between 3% a31c� 7% witl� an average of 4.92%. In the local market, leasing fees are typically 3%to 7%of the effectk��e g�•ass rent and 3.0% is considered reasonable. Therefore, leasing fees total $1,176 ($39,214 x 3.0%). Reserves for Replacement The landlord is responsible for all replacement reserves for the property. fl7e inajoi°ity of the iten�s needed to be covered under reserves for replacements are contained in tl�e �inkirxg Fund for HVAC. However, items such as the roof, parking lot, walls, floors and windows need to he accounted for in Reserves for Replacement. The Koipacz Real Estate Investor Survey notes the p�angc, for 2°d Quarter 2014 National CBD (Cenh•al Business District) Office Market between $0.10 and $0.50. Since the property is an older building, a replacement reserve on the upper end of the range is e�pectf:��. Therefore, the Reserves for Replacement expense is estimated at$0.50 per square foot or$1,77� (3,�52 SF x$0.50). Miscellaneous Expenses Due to the age of the building, we have included a miscellane��us expense of $1,500 to cover any unforeseen repairs and maintenance the building might require. Total Expenses Total expenses are $6,021, or 15.4% of the effective gross income, or $1.70 per square foot of gross building area. This is considered reasonable for a NNN-leased office bbinlding in the Greater Harrisburg Area. Net Operating Income Net operating income is calculated by subtracting total expenses �6•oi�� the estimate of effective gross income. Net operating income for the subject property is estimatec� as �3:3,193 ($39,214 - $6,021). 47 ii.i i � i ��.�,�a,,,�,.�,,.m. Reconstructed Income Staten�ca�n�: PotentialGross Income `3�42,624 Vacancy and Credit Loss (@8%ofPGI) $3,410 Effective Gross Incoine $39,214 Operating Expei�ses ManagementFee (@4%ofEGI) $1,569 LeasingFee (@3%ofEGI) �1,176 Reserves (@ $0.50JSF) 51,"/76 Miscellaneious $1;500 Total Expenses ��,��21 Net Operating Income $3;,193 �� Capitalization Rates An overall capitalization rate, referred to as Ro, is an income rate for a total propei-ty value that reflects the relationship between the annual net operating income and the total pr�perty value, as indicated by the following formula: Income =�tate (Ro) = Yalue Overall Rate Development Three methods of determining the overall capitalization rate have 1�een utilized. The three methods are the Band of Investment, investor surveys, and the inarket approacll. Band of Investment Since most propei-ry is purchased with debt and equity capital, the s�ver�ll capitalization rate must satisfy the market return requuements of both investment positions. Lenders auticipate receiving a competitive interest rate coinmensurate with the perceived risk and also require �tklat the loan principle be repaid through periodic amortization payments. Similarly, equity investc�rs an.ticipate receiving a competitive equity cash return commensurate with the perceived risk. 48 i .i..i_.i iu� � When tl�e mortgage constant and equity capitalization rates are k��arvyi, G.n overall rate may be derived with the band of investment. The mortgage constant is calculated at current mortgage rates and �eri��. The equity dividend rate is derived from the market. The mortgage constant (Rin) is the ratio of the annual debt service t�> the principal amount of the martgage loan and is calculated by multiplying each period's payment by the fi•equency of payment and then dividing this amount by the amount of the loan. The mortgage constant for the band of investment is calculated based on the above�aralneters used by local lenders fo�•retail property. Consultation with area lenders indicated that a typical mortgage for ,a property such as the subject would represent 75% of the total value, with interest rates for office/warellouse properties ranging froin 4.00% to 5.00% locally, with a norm of about 4.75%. These types of mortgag�s are typically amortized over 20-25 years, while the actual term is somewhat shorter, generally with a 5- to 10-year balloon. The overall capitalization rate (Ro) can be calculated by the band of inv�stment as follows: CAPITALIZATION Loan-To-Value Ratio 75.0% Interest Rate 4.75% Tenn(Years) 20 E ui -To-Value Ratio 2�•�% E ui Dividend Rate 18.00% Mort a e Constant 0.07855 SAND OF INVESTMENT Loan Ratio x Mort a e Constant 0_0589 Equity Ratio x Equity Dividend Rate 0.0450 � Ca italization Rate 0.1039 Thus tl�e overall capitalization rate arrived at by tl�e band of investment is 0.1039,or 10.39%. 49 o e.i_.i iu� i Investor Surveys The Korpacz Real Estate Investor SuJ^vey published Uy Price��ateYhc:z�seCao�ae��s LLP(PT�C)tracks the Natio�lal CBD Office Market for the 2nd Qt�. 2014, indicates overall �•ates ra�lging fiom 3.75% to 8.00%with an average of 630%. Market Derived Capitalization Rates A thorough search for overall capitalization rates for con�parable p3-op��:rties in tlle subject's market returned no results. Reconciliation of Overall Rates The methods indicate overall capitalization rates ranging from 3.75% t� 1039%. All the methods are considered valid indicators and each have theii• own various strengths and weaknesses in estimating overall rates. In the final analysis, the rate derived from the band of investment was given the greatest weight. A capitalization rate of 10.25% was chosen for the subject property. Net Operating Income Capitalization Rate Va��ie Indication $33,193 — 10.25% �323,835 According to the income capitalization approach, the market value of the subject property as of Jailuary 29, 2014 is $323,835,rounded to: YYxTHREE HUNDRED TWENTY-FIVE TH0�J5�.I�TD DOLLARS''�*''� $325,000 50 i i.. .. .iu� � RECONCILIATION AND CORREI��E�.'�I�(��I'�T The Sales Comparison Approach has been developed in the analy�,is of?he subject propecty, 124 State Street, City of Harrisburg, Dauphiil Coui�ty, Pennsylvai�ia. Tl1e val�ue cc�u�clusion from tliese approaches are as follows: "As Is" Value Estimates: "As Is" Valuc;m� Effective Date Sales Comparison Approach: $300,000 September 10, 2014 Cost Approach: Not Applicabl� Not Applicable Income Ap�roach: $325,000 Septeinber 10, 2014 Final Market Value Estimate"As Is": $315,000 September 10,2014 The Sales Comparison Approach is an approach to value wherein the app�raiser seeks out sales of similar type properties that have recently sold in the subject's market area. These sales are then compared to the subject and adjusted for dissimilarities between the conlparable prc��ertie,s and the subject to arrive at ai1 indication of value. Theoretically, the Sales Comparison Approa��l�i reflects the actions of botli buyers and sellers in the market. No two sales or properties are exactly alike. Therefore, numerous a�justments are applied based on interpretations of market infoi7nation. This approach is most reli��ble when there are relatively homogeneous properties or wheil there are certain strong, similar traits, wl�ich n•anscend the sales sample. The Sales Comparison Appi'oach was developed to estiinate the value of the subject property due availability of compai•able office building sales in the subje.ct's neighborhood. The Income Capitalization Approach was developed to estimate the value for the sub�ject as properties siniilar to the subject are frequently leased to third parties. More weight is given to the Income Approach in determining the"as is"value for the subject. Therefore, it is our opinion that the market value of the Fee Simp�� int�:rest in the subject property in its "as is" condition, as of September 10, 2014 is: �YYTHREE HL)NDRED FIFTEEN THOUSAI^�d:�]�7��DLLARSYrY ($315,000) 51 i i..i. i ii� . � C�RTIFICATION OF VALUIIi, I certify that,to the best of my knowledge and belief: 1. The statements of fact contained in this report are true and cor��ec1:. 2. The reported aualyses, opinions, and conclusions are lii�lited oi11y by the reported assumptions and limitiiig conditions and are my persona�, in�partial, and unbiased professional analyses, opinions, and conclusions. 3. I have no (or the specified) present or prospective interest in th� property that is the subject of this report and no (or the specified) personal interest witl�i respect to the parties involved. 4. I have no bias with respect to the property that is the subj�,ct of this report or to the parties involved with this assignment. 5. My engagement in this assigmnent was not contingent upo�1 developing or reporting predetennined results. 6. My compensation for completing this assigmnent is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. My analyses, opinions, and conclusions were developed, and �his report has been prepared, in coi7formity with the Unifor»a Sta�dards of Pv�ofes�siancrl Appi�aisal Practice. 8. I have made a personal inspection of the property that is the subject of this report. 9. RSR Appraisers & Analysts has not performed any appraisal services on this property in the last three years. 10. Robert E. McDonald provided significant real property appraisal assistance to the person signing this certification. _` � ;' ,; � _ _ <_ �--� � ---- Signature: �a.t�: September 16, 2014 William F.Rothman,IFAS Certified General Appraiser License# GA 000303L Expiration June 30, 2015 52 ii i � � CERTIFICATION OF VALUF I certify that,to the best of my knowledge and belief: l. The state�nents of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limi��t��;d <�nly by the reported assumptions and limiting conditions and are my personal; im��artial, aud unbiased professional analyses, opinions, and conclusions. 3. I have no (or the specified) present or prospective interest i�1 the property that is the subject of this report and no (or the specified) personal interest witli respect to the parties involved. 4. I have no bias with respect to the property that is the subj��,t oi'this report or to the parties involved with this assigument. 5. My engagement in this assigmnent was not contingent upori developing or reporting predetennined results. 6. My compensation for completing this assignment is not contiri�ent�rpon the developinent or reporting of a predetermined value or direction in value tl�at favors the cause of the client, the amount of the value opinion, the attaimnent of a stipulated result, or the occurrence of a subsequent event directly related to the intended usc�of this appraisal. 7. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professiorral App�^aisal Practice. 8. I have made a personal inspection of the property that is the subject of this report. 9. RSR Appraisers & Analysts has not performed any appraisal services on this property in the last three years. �,I��..�� l� �-.�.. Signature: Date: �'septeai�ber 16, 2014 Robert E. McDonald Licensed Appraiser Trainee License#LAT000497 Expil-es: June 30, 2015 53 i ii . iu� � ASSUMPTIONS AND LIMITING CO�1:��IT1[��NS 1. No responsibility is assumed for t1�e legal descriptions provide�d or�or inatters pertaining to legal ar title consideratioi�s. Title to the property is assur��i�d to be good a.nd marketable unless otherwise stated. 2. The properly is appraised fi•ee and clear of any or all lie�Is or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management arr ass��med. 4. The information furnished by others is believed to be reliabl�,, but no warranty is given for accuracy. 5. All engineering studies are assunied to be correct. The plot pl��ls and illustrative material in this report are included only to help the reader visualize the��roperty. 6. No survey has been made by the appraiser and no responsibilixy is�.ssumed in connection with such matters. 7. It is assumed that there are no hidden or unapparent conditio��s oL�he property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering studies that may be required to discover then�. 8. It is assunzed the property is in full compliance with all applicable federal, state, and local environmental regulations and laws unless the lack of compliance is stated, described, and considered in the appraisal report. 9. It is assumed that the utilization of the land and improvemeilts is within the bomldaries oi• property lines of the property described and that thei•e is no encroachment or trespass unless noted within the report. 10. The distribution of the total valuation in this report between land and improvements applies only under the stated program utilization. The sepaiate allocations for land and � buildings must ilot be used in conjunction with any other apprais��l and are invalid if so used. 11. Acceptance and/or use of this appraisal report constitutes ��tcce�ytance of the foregoing Assumptions and Limiting Conditions. 12. The appraiser of this �roperty will not be required to give testunany or appear in court because of having made this appraisal, unless arrangenlents have been previously made. 54 IIII11..,II I1411 I ADDENDU�V�� 55