c conley real estate appraisals, inc. - jones and...

Conley Real Estate Appraisals, Inc. 321 Ohio Street, Upper Suite 1, Terre Haute, Indiana 47807 Phone and Fax: (812) 235-4576 E-Mail address: [email protected] December 11, 2006 Mr. Kurt Jones Jones & Sons, Inc. 1400 Springhill Road Terre Haute, Indiana 47802 RE: Real Estate Appraisal

Jones & Sons, Inc. Property 1400 Springhill Road Terre Haute, Indiana 47802

Dear Mr. Jones: In accordance with your request, I have personally inspected the above captioned real estate to determine an estimate of Market Value for the purpose of determining a sales price. My estimate of Market Value, in this particular instance, is predicated upon the Sales Comparison Approach to value. By comparing the subject property with other properties of the like kind, and analyzing it with sales as documented through the Terre Haute Area Association of Realtors Multiple Listing Service and area brokers, it is my opinion that the subject property would have an Estimate of Market Value as of November 27, 2006 of

TWO HUNDRED NINETY SEVEN THOUSAND FIVE HUNDRED DOLLARS

($297,500) If you should have any questions, please feel free to contact my office at your convenience. Respectfully submitted,

Brian F. Conley, GRI Indiana Certified General Appraiser

State Certification Number: CG 69100221

BFC:tlf File #06112102

C

REAL ESTATE APPRAISAL

Jones & Sons, Inc. Property 1400 Springhill Road Terre Haute, Indiana 47802 Prepared For: Mr. Kurt Jones Jones & Sons, Inc. 1400 Springhill Road Terre Haute, Indiana 47802 December 11, 2006 Prepared By: Brian F. Conley File # 06112102

Conley Real Estate Appraisals, Inc. 321 Ohio Street, Upper Suite 1, Terre Haute, Indiana 47807

Phone and Fax number: (812) 235-4576 E-Mail Address: [email protected]

C

Conley Real Estate Appraisals, Inc.

1400 Springhill Road, Terre Haute, Indiana Page 2

TABLE OF CONTENTS

Cover Page Table of Contents..................................................................................................................................................2 Purpose of the Appraisal....................................................................................................................................19 Intended Use of Report ......................................................................................................................................20 Property Rights Appraised................................................................................................................................20 Effective Date of Value.......................................................................................................................................20 Inspection Date ...................................................................................................................................................20 Date of Report.....................................................................................................................................................20 Exposure Time....................................................................................................................................................20 Appraisal Development and Reporting Process ..............................................................................................21 Description of Real Estate Appraised ...............................................................................................................21 Description of Real Estate Appraised ...............................................................................................................21 Description of Real Estate Appraised ...............................................................................................................22 Identification of Property ..................................................................................................................................22 Three Year History.............................................................................................................................................22 Zoning, Flood Plain, and Census Tract ............................................................................................................22 Flood Plain Map .................................................................................................................................................24 Site Data ..............................................................................................................................................................25 Plat Map ..............................................................................................................................................................26 Description of Improvements ............................................................................................................................27 Highest & Best Use .............................................................................................................................................29 Summary of Analysis and Valuation ................................................................................................................29 Sales Comparison Approach .............................................................................................................................29 Three Year History.............................................................................................................................................34 Three Year History.............................................................................................................................................46 Three Year History.............................................................................................................................................48 Comparable Sales Summary .............................................................................................................................52 Plat Map ..............................................................................................................................................................53 Conclusion...........................................................................................................................................................54 Cost Approach to Value.....................................................................................................................................55 Income Capitalization Approach ......................................................................................................................55 Assumptions and Limiting Conditions .............................................................................................................56 Certification ........................................................................................................................................................59 Qualifications of Appraiser................................................................................................................................60



JONES & SONS INC PROPERTY 1400 SPRINGHILL RD, TERRE HAUTE, INDIANA

NOVEMBER 27, 2006

VIEW: Front view of the office & showroom building looking north across Springhill Road

VIEW: West side view of the office & showroom building looking east from South 14th Street




NOVEMBER 27, 2006

VIEW: Rear or north side view of the office & showroom building

VIEW: Rear or north side view of the office & showroom building




NOVEMBER 27, 2006

VIEW: East side view of the office & showroom building

VIEW: Reception area in the office & showroom building




NOVEMBER 27, 2006

VIEW: Showroom

VIEW: Showroom




NOVEMBER 27, 2006

VIEW: Showroom

VIEW: Private office




NOVEMBER 27, 2006

VIEW: Storage room

VIEW: Employee break room




NOVEMBER 27, 2006

VIEW: Storage room

VIEW: Unheated storage building, south side view




NOVEMBER 27, 2006

VIEW: Unheated storage building, south side view

VIEW: East side view of the unheated storage building




NOVEMBER 27, 2006

VIEW: North side view of the unheated storage building

VIEW: North side view of the unheated storage building




NOVEMBER 27, 2006

VIEW: View of the outside storage yard

VIEW: View of the outside storage yard




NOVEMBER 27, 2006

VIEW: Interior view of the unheated storage building, former kiln

VIEW: Interior view of the unheated storage building




NOVEMBER 27, 2006






NOVEMBER 27, 2006


VIEW: Street view looking east along Springhill Road




NOVEMBER 27, 2006

VIEW: Street view looking west along Springhill Road

VIEW: View of the 1 Acre lot located north of the building improvements looking east from South 14th Street




NOVEMBER 27, 2006

VIEW: View of the 1 Acre lot located north of the building improvements looking east from South 14th Street



SUMMARY APPRAISAL REPORT This is a Summary Appraisal Report, which is intended to comply with the reporting requirements set forth under Standards Rule 2-2 (b) of the Uniform Standards of Professional Appraisal Practice for a Summary Appraisal Report. As such, it presents only summary discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser’s opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser’s file. The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated below. The appraiser is not responsible for unauthorized use of this report. CLIENT: Mr. Kurt Jones Jones & Sons, Inc. 1400 Springhill Road Terre Haute, Indiana 47802 APPRAISER: Brian F. Conley

Conley Real Estate Appraisals, Inc. 321 Ohio Street, Upper Suite 1

Terre Haute, Indiana 47807 SUBJECT: Jones & Sons, Inc. Property 1400 Springhill Road Terre Haute, Indiana 47802



PURPOSE OF THE APPRAISAL

The purpose of this appraisal is to provide the

appraiser’s best estimate of the market value of the subject

real property as of the effective date. Market value is

defined by the federal financial institutions regulatory

agencies as follows:

The most probable price which a property should bring in

a competitive and open market under all conditions requisite

to a fair sale, the buyer and seller each acting prudently and

knowledgeably, and assuming the price is not affected by undue

stimulus. Implicit 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:

1) buyer and seller are typically motivated;

2) both parties are well informed or well advised, and

acting in what they consider their own best interests;

3) a reasonable time is allowed for exposure in the open

market;

4) payment is made in terms of cash in US dollars or in

terms of financial arrangements comparable thereto;

and

5) the price represents the normal consideration for

property sold unaffected by special or creative

financing or sales concessions granted by anyone

associated with the sale.

(Source: Office of the Comptroller of the Currency under 12 CFR, Part 34, Subpart C-Appraisals, 34.42 Definitions {f}.)



INTENDED USE OF REPORT

This appraisal is intended to assist the client, Mr. Kurt

Jones of Jones & Sons, Inc., in determining the market value

of the subject to help determine a sales price.

PROPERTY RIGHTS APPRAISED

The property rights appraised, for this appraisal report,

are those of fee simple estate. Fee simple estate is defined

as "absolute ownership unencumbered by any other interest or

estate, subject only to the limitations imposed by the

governmental powers of taxation, eminent domain, police power

and escheat."1

EFFECTIVE DATE OF VALUE: November 27, 2006

INSPECTION DATE: November 27, 2006

DATE OF REPORT: December 11, 2006



APPRAISAL DEVELOPMENT AND REPORTING PROCESS On November 21, 2006, the client engaged the appraiser to

perform a real estate appraisal on the subject property. The

client has purchased another property and intends to move the

business to the new location. The client intends to sell the

subject property. The client wants the appraisal to help

establish a possible sale price for the property. The

appraiser met the client at the property on November 27, 2006.

In preparing this appraisal, the appraiser inspected the

subject site and both the exterior and interior of the

improvements. Information on improved sales was gathered,

confirmed, and analyzed and the Sales Comparison Approach was

applied.

Per prior agreement with the client, the appraiser did

not use the Cost Approach or the Income Approach to value.

Because these approaches would not generally be considered

meaningful in appraising a property of this type, the

appraiser believes the primary approach to value is the Sales

Comparison Approach. This Summary Appraisal Report is a brief

recapitulation of the appraiser’s analyses and conclusions.

Supporting documentation is retained in the appraiser’s file.

1 The Appraisal of Real Estate, The Appraisal Institute, 11th Edition, 1996, Chicago, Illinois, p. 137



DESCRIPTION OF REAL ESTATE APPRAISED

Identification of Property

According to the Vigo County Assessor's office, the

subject property is vested in the name of Jones & Sons, Inc.

The subject property is made-up of one two parcels. The short

legal descriptions used by the assessor's office are as

follows:

103-09-10-252-007: Prt W Side SW NE, 10-11-9, 2.610 AC. 1400 Springhill Road.

103-09-10-252-023: C F Hilton Sub, Lot 1, 10-11-9, 1.00 AC. No common street address.

Three Year History

The current owner has owned tax parcel 103-09-10-252-007,

uninterrupted, since 1999. Tax parcel 103-09-10-252-023 was

purchased from Hilton on September 22, 2003 for $12,500. The

total property has not been and is not currently for sale.

The use of the property has not changed over the past three

years. The client is intending to sell the property.

Zoning, Flood Plain, and Census Tract

Effective as of November 22, 1996 all properties in Vigo

County except the City of Terre Haute are covered by the

Unified Zoning Ordinance for Vigo County, Indiana.

According to the code, the subject property is zoned M-1



or Light Industry District. The subject’s current use as a

concrete block sales and warehousing business is a permitted

use under the county zoning classification.

According to the National Flood Insurance Program Federal

Emergency Management Agency Flood Map No. 180263-0070B the

property is in zone AO or is in the 100 year flood plain. The

location within the flood plain does not have a negative

affect on the market value.

The 2000 census tract number for the subject property is

0107.01.



FLOOD PLAIN MAP



Site Data

The subject site is made up of two tax parcels located on

the northeast corner of Springhill Road and Hilton Street,

also known as South 14th Street. The site has frontage on

Springhill Road of 297.12’, and a combined depth of 531’, for

a total land area of 3.61 acres. It appears from the plat map

that the site goes to the center of Springhill Road, therefore

the effective acreage would be something less than 3.61 acres.

The site is level at street grade with no obvious

drainage problems. It appears that most of the site is

covered by the improvements except for the back 1 acre.

Located on the site is a fuel pump which appears to have an

underground fuel storage tank. For the purpose of this

appraisal, it is assumed that the underground fuel storage

tank meets all federal and state requirements. All public

utilities are currently available and in service at the site.

The site is large enough for its current use as a

concrete block sales facility and would be ideally suited for

a commercial retail building, and/or some type of residential

development.



PLAT MAP



Description of Improvements

Located on the site are two separate building. The front

building is a one story, one unit; commercial retail building

built about 1974. This is a concrete block building built on

a concrete slab, and has a 3-1 asphalt shingled roof. There

is 3,000 square feet of building area.

The building is used as a retail showroom and office

building. The interior is made up of a showroom, two small

office areas, one unfinished storage room, a finished storage

room and a three half baths.

The back building is a former production building for the

creation of concrete blocks. The building is now used for

unheated storage space. This is a 7816 square foot unheated,

unfinished, concrete block, and pole constructed building

built on a concrete slab. The total building area of the two

buildings is 10,816 square feet.

Located north and east of the buildings is an open

storage yard and materials storage area.

Overall, the improvements appear to be in fair to average

condition. No personal property or equipment is included in

this appraisal.



BUILDING SKETCHES



Highest and Best Use

“ The reasonably probable and legal use of vacant land or improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value.”2

Highest and best use as though vacant: Some type of

commercial development consistent with what would be found

along Springhill Road for the front 1-2 acres. The back 1.61

to 2.61 could be used for residential development.

Highest and best use as though improved: Its current use for a

retail showroom and office building with storage.

SUMMARY OF ANALYSIS AND VALUATION

Sales Comparison Approach

This is an appraisal technique in which the market value

estimate is predicated upon prices paid in actual market

transactions and current listings. It is a process of

correlation and analysis of recently sold properties.

This appraiser attempted to find recent sales of older

retail/office buildings used for sales and storage. There

were no such sales found. Below are several sales in Vigo

County that meet some of the search criteria.



Comparable Sale No. 1

The property at 1033 North Fruitridge Avenue sold on May

30, 2003. The seller was Barcus and the buyer was Gutich.

This was a one-story, one-unit pole constructed

commercial/industrial building that was originally built in

1982. The building measured 52 feet by 128 feet or 6656

square feet. This building, built on a concrete slab, was

situated on a 2.04-acre site. The reported sale price was

$190,000 or $28.55 per square foot building area.

2 The Appraisal of Real Estate, The American Institute of Real Estate Appraisers, 11th Edition, 1996, Chicago, Illinois, P. 50.



Comparable Sale # 1 Type Property Commercial Address 1033 N Fruitridge Ave County Vigo Terre Haute, Indiana Township Harrison

Date Sold: May 30, 2003 Price: $190,000 Seller: Barcus Square Foot: 6656 Buyer: Gutish $ Per Square Feet: 28.56 Exterior Construction: Alum/

Steel Site Size:

# of Stories: One Building to Land %: Unknown # of Rooms: Zoning: M-2 # of Baths: 2 Deed Record Information: Basement: Slab Building Date: 1982 Square Foot: %Finished: Parcel Number: 18-06-13-200-010 Legal Description: Total Assessed Value: Unknown Condition of Sale: Arms Length Financing: Cash to Seller Date Verified: 12/22/03 Verified By: MLS #10781 Comments: Highest and Best Use: Commercial




On April 14, 2000, the Louis Vitale Trust sold to Dever

Family Limited Partnership the property at 1025 N. Fruitridge

Avenue in Terre Haute, Indiana. This was a 16,080 square foot

pole barn constructed metal commercial building situated on

3.86 acres. This property is located immediately north of the

subject property. The reported purchase price was $540,000 or

$33.50 per square foot building area.

Dever later told this appraiser that he sold this

property to the Oakley Corporation on May 30, 2001 for

$560,000 or $34.82 per square foot building area.

A Sales Disclosure Form filed in the Vigo County Auditors

office shows that on November 11, 2002 Oakley Corporation sold

to Reynolds & Co. the property for $625,000 or $38.87 per

square foot of building area.



Comparable Sale # 2 Type Property Industrial Address 1025 N. Fruitridge Ave. County Vigo Terre Haute, IN 47803 Township Harrison Date Sold: November 11, 2002 Price: $625,000 Seller: Oakley Corp. Square Foot: 16,080 Buyer: Reynolds & Co. $ Per Square Feet: $38.87 Exterior Construction: Steel Site Size: 3.86 Acres # of Stories: One Building to Land %: 9.6% # of Rooms: -- Zoning: M-2 # of Baths: -- Deed Record Information: Basement: Slab Building Date: 1983 Square Foot: %Finished: Parcel Number: 18-06-13-200-011 Legal Description: Prt N ½ W ½ W ½ NE, 13-12-9 Total Assessed Value: $94,470 Condition of Sale: Arms Length Financing: Cash to Seller Date Verified: 03/30/2003 Verified By: VC Auditor SD

form Comments: Highest and Best Use: Industrial/Wrhse – 2,600 SF of office space




The property at 2408 Hendricks Ave sold on June 21, 2006.

The seller was Sparkle Pools Inc. and the buyer was Willig.

This was a one-story one-unit warehouse building with 8920

square feet of warehouse space and approximately 200 square

feet of office space for total building area of 9120 square

feet. This building sat on a .752-acre site having been built

in 1980.

The reported purchase price was $70,000 or $7.68 per

square foot up building area.



COMPARABLE SALE NO. 3




The property located at 5176 North Clinton St in Terre

Haute sold on May 22, 2006. This was a 10,560 square foot

warehouse and office building formerly used by Sargent

Electric. This property is located at the northwest corner of

Park Street and Lafayette Avenue in the North Terre Haute

area. This building had 2400 square feet of conference room

and office space with a warehouse of 8160 square feet. This

warehouse space was well insulated and heated. This building

was situated on a 4.89-acre site. The seller was Sargent

Electric and the buyer was Dake.


square foot of total building area.




The property at 1624 East Springhill Drive sold on July

1, 2005. The seller was Sanders and the buyer was Brucken.

This property consisted of four separate buildings. Located

on the property was a 1460 square foot house, a newer 4000

square foot retail building, formerly used as a lighting

center, a 40' x 26' storage building and a 40' x 64' storage

building. All of these buildings were located on a 2.38-acre

site. The total building area for this sale was 9060 square

feet. The buyer purchased this property and converted the

retail building into a medical office building.


square foot of total building area.




The property at 1925 South 13th Street sold on February

26, 2002. The seller was Nationwide Postal Management and the

buyer was Posey. This was a one-story one unit industrial

building built in 1968 for use as the United States Post

Office annex building. This building had 29,160 square feet

of area situated on a 2.6-acre site. This building was on the

market for over three years. The reported purchase price was

$325,000 or $13.54 per square foot a building area.




General Asking Price: $395,000 Zoning: M-1 List Agent: PFISTER, MARY CAYE Parcel #: 1-18-0634181001 Agent Phone: (812)232-5083 Township: Other Listing Office: PFISTER BH&G Business Type: DISTRIBUTION Office Phone (812)232-5083 Year Built: 1968 Compensation-Buyer Broker:

2.5 A.V.: 194900

Compensation-Variable Rate:

2.5 Bldg#1 Total SqFt: 29160

Compensation-Contingency (Y/N):

N Bldg#1 WH SqFt: 0

Keybox: No Bldg#1 Office SqFt: 0 Keybox-Number: N Bldg#1 Mfg. SqFt: 0 Owner Name/Phone: NATIONWIDE POSTAL MG-N/A Bldg#1 Ceiling Ht-

Max: 16'

Listing Date: 04/11/1997 Showing Instructions: CALL LIST OFFICE Lot Size: 2.6 ACRES Features * EXTERIOR CONSTRUCTION * MISCELLANEOUS EXTERIOR * ROADS Masonry Onsite Parking City Street * LOCATION Paved Parking * WATER Industrial Loading Dock City Water * HEATING * POSSESSION * SEWER Natural Gas Immediate City Sewer Financial Taxes: 23534 Financing Terms: CASH Remarks VERSATILE BUILDING ADAPTABLE TO VARIOUS USES. MOSTLY WIDE-OPEN WORK AREA, SOME OFFICE AREA, LUNCH ROOM, RESTROOMS.LARGE COVERED LOADING DOCK. ABUNDANCE OF PARKING. PREVIOUSLY USED AS A POST OFFICE DISTRIBUTION CENTER. ABUNDANCE OF CONCRETE PARKING, 18,000 Addendum SF OF ASPHALT. ALSO PARKING ACROSS 12TH STREET. ALSO AVAILABLE FOR LEASE. Sold How Sold: Conventional Selling Office 1: PFISTER BH&G Contract Date: 02/26/2002 Buyer: Posey Closing Date: 06/11/2002 Concessions: None Sold Price: $325,000 DOM: 1887 Selling Agent 1: P, HOUSE

MLS #: 28314 Baths: 2 Class: COMMERCIAL/INDUSTRIAL Basement: NO Type: OTHER Stories: OT Area: Vigo County Price: $325,000 Status: SLD Address: 1925 S 13TH ST ZIP: 47802 Terre Haute For Sale




The property at 800 East Haythorne Avenue sold on May 5,

2004. This was a one-story one-unit commercial/industrial

pre-engineered steel building built in 1999 on 6.53 acres.

This building was originally built for use as an indoor

raceway park for go-carts. The building measured 100 feet by

200 feet or 20,000 square feet. This building had limited

uses because of a 16-foot ceiling height. Next to this

building was a 1200 square foot pole barn building used for

storage. This building added no value to this property. The

reported sale price for this property was $375,000 or $18.75

per square foot of building area.




The property at 951 Ohio St sold on March 25, 2003. This

was a one-story one unit retail and warehouse building

situated on a .98-acre site. The building had a total of

22,000 square feet of area with 13,700 square feet in

warehouse space 2800 square feet in office space and 5500

square feet in retail space. This building was built in 1993

on a concrete slab. The seller was WWH Corporation and the

buyer was Terre Haute Electrical Joint Apprenticeship Program.

The reported purchase price was $525,000 or $23.87 per square

foot of building area.




The property at 175 Canal St sold on June 27, 2005. The

seller was B & S Plumbing and the buyer was D’Amico. This

building had 6240 square feet of area situated on a 148’ x

298’ lot. This building was built in 1985 office and

warehouse space for the plumbing company.


square foot building area.




The property 3601 North Fruitridge Ave sold on July 29,

2003. The seller was WCO Limited and the buyer was Ferrall.

This was a retail building and warehouse building situated on

the northeast corner of Fruitridge Avenue and Fort Harrison

Road at the entrance to the Fort Harrison Industrial Park.

There was 4800 square feet in the retail building that was

built in 1983 and 3000 square feet of area in the warehouse

building built in 1994. These buildings were situated on a

two-acre site located within one block of the subject

property.


square foot building area.




The property at 1041 North Fruitridge Ave sold on January

11, 2005. This was a 12,508 square foot retail and warehouse

building situated on a 2.3 acre site. The seller was Modesitt

and the buyer was BRSH, LLC. This building was built in 1984

and had 5255 square feet of retail area and 7248 square feet

in the warehouse. Modesitt had purchased the property in

October of 2003 for $425,000.

The reported purchase price in January 2005 was $525,000

or $41.97 per square foot of total building area.



Comparable Sales Summary

Sale No. ADDRESS Sale

PriceSquare

FeetPrice / Sq Ft

Site Size Date Location B/L % Construction Condition Age Office Use Multiple

BuildingsAdjusted

Value

1400 Springhill --- 10,816 --- 3.61 A 11/27/06 Average 7% CB/Pole Fair 1974 Large Retail Yes

1 1033 Fruitridge $190,000 6,656 $28.55 2.2 A 5/30/03 Average 7% Pole Average 1992 Large Retail No $22.46-10% +9% +10% -10% -10% -10%

2 1025 N. Fruitridge $625,000 16,080 $38.87 3.86 A 11/11/02 Average 10% Pre-Engi Average 1983 Small Industrial No $42.27+20% +13% -10% -10% -0- +10% -10%

3 2408 Hendricks Ave $70,000 9,120 $7.68 0.752 6/21/06 Average- 28% Pole Poor 1980 None Warehouse No $12.14-0- -0- +10% +10% +10% +10% -0- +20% -10%

4 5176 N. Clinton $300,000 10,560 $28.41 4.89 A 04/20/06 Average 4% Pole Average 1990 Large Office/Ware No $22.78-0- -0- +10% -10% -10% -10%

5 1624 E. Springhill 365,000 9,060 $40.29 2.38A 05/18/05 Average 9% Various Average Various Large Retail/Storage Yes $36.98-0- +3% -0- -0- -10% -10% -0-

6 1925 S. 13th St. $325,000 29,160 $11.15 2.6a 06/11/02 Average 25% Pre Engi Average 1968 Small Dist Wrhs No $12.8430% +13% -0- +10% -20% -10% -0- +10% -10%

7 800 E. Haythorne Ave. $375,000 20,000 $18.75 6.53 A. 05/05/04 Average- 7% Pre Engi/Stl Average 1999 None Industrial No $17.6830% +6% +10% -20% -10% -20% +20% -10%

8 951 Ohio Street $525,000 22,000 $23.86 .98 A. 03/25/03 Average+ 52% Brk/Alum/Stl Average 1993 Small Wrhse/Office No $29.28+30% +9% -10% +20% -0- -10% -10% +10% -10%

9 175 Canal St $300,000 6,240 $48.08 1.01 A 6/27/05 Average 14% Pole Average 1985 Small Office/Storage Yes $38.83-20% +3% -0- 10% -10% -10% +10% -0-

10 3601 N. Fruitridge $375,000 7,800 $48.08 2.00 A 7/29/03 Average 9% Metal/Pole Average 83/94 Large Retail/Ware Yes $33.11-10% +9% -0- -0- -10% -10% +10% -0-

11 1041 N. Fruitridge $525,000 12,508 $41.97 2.3 A 1/15/05 Average 12% Brick/Pole Average 1984 Large Retail/Ware No $34.67+10% +3% -0- -0- -10% -10% -10%

AVERAGE $27.55

SUBJECT

COMPARABLE SALES



LOCATION MAP



CONCLUSION

After reviewing the 11 comparable improvement sales and

making adjustments for building sizes, site sizes, dates of

sale, building construction, building conditions, building

ages, office space, and multiple buildings the adjusted values

range from a low of $12.14 per square foot building area to a

high of $42.27 per square foot of total building area with an

average of $27.55 per square foot of building area. Because

none of the 11 sales is considered comparable to the subject

property, it seems reasonable to believe that the subject

would meet the market close to this average or say $27.50 per

square foot of total building area. I therefore estimate the

market value by the Sales Comparison Approach as of November

27, 2006 to be $297,440 say

TWO HUNDRED NINETY THOUSAND DOLLARS

($297,500)



Cost Approach to Value

In the Cost Approach, an estimate of the vacant land is

first developed. This is followed by estimating the

reproduction cost of the building and improvements.

Thereafter, the various types of depreciation were analyzed,

estimated and deducted from the reproduction cost.

The cost approach was not used for this particular

appraisal problem because of the advanced ages of the

improvements.

Income Capitalization Approach

The Income Capitalization Approach is the process that

converts anticipated income to be derived from ownership of

the property into a value estimate. Anticipated future income

and/or revisions are discounted to a present worth figure

through a capitalization process.

The Income Approach to Value was not used in this

appraisal process because the typical buyer for this property

would be a user as apposed to a real estate investor looking

to derive a net income from renting the buildings.



ASSUMPTIONS AND LIMITING CONDITIONS: 1. As agreed upon with the client prior to the preparation of

this appraisal, this is a Limited Appraisal because it invokes the Departure Provision of the Uniform Standards of Professional Appraisal Practice. As such, information pertinent to the valuation has not been considered and/or the full valuation process has not been applied. Depending on the type and degree of limitations, the reliability of the value conclusion provided herein may be reduced.

2. No responsibility is assumed for legal or title

considerations. Title to the property is assumed to be good and marketable, unless otherwise stated in this report.

3. The property is appraised free and clear of any or all

liens and encumbrances, unless otherwise stated in this report.

4. Responsible ownership and competent property management is

assumed, unless otherwise stated in this report. 5. The information furnished by others is believed to be

reliable. However, no warranty is given for its accuracy. 6. All engineering is assumed to be correct. Any plot plans

and illustrative material in this report are included only to assist the reader in visualizing the property.

7. It is assumed that there are no hidden or unapparent

conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them.

8. It is assumed that there is full compliance with all

applicable federal, state, and local environmental regulations and laws, unless otherwise stated in this report.

9. It is assumed that all applicable zoning and use

regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in this appraisal report.



10. It is assumed that all required licenses, certificates of occupancy or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this report are based.

11. Any sketch in this report may show approximate dimensions

and is included to assist the reader in visualizing the property. Maps and exhibits found in this report are provided for reader reference purposes only. No guarantee as to accuracy is expressed or implied, unless otherwise stated in this report. No survey has been made for the purpose of this report.

12. It is assumed that the utilization of the land and

improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass, unless otherwise stated in this report.

13. The appraiser is not qualified to detect hazardous waste

and/or toxic materials. Any comment by the appraiser that might suggest the possibility of the presence of such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such determination would require investigation by a qualified expert in the field of environmental assessment. The presence of substances such as asbestos, urea-formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The appraiser’s value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value, unless otherwise stated in this report. No responsibility is assumed for any environmental conditions, or for any expertise or engineering knowledge required to discover them. The appraiser’s descriptions and resulting comments are the result of the routine observations made during the appraisal process.

14. Unless otherwise stated in this report, the subject

property is appraised without a specific compliance survey having been conducted to determine if the property is or is not in conformance with the requirements of the Americans with Disabilities Act. The presence of architectural and communications barriers that are structural in nature that would restrict access by disabled individuals may adversely affect the property’s value, marketability, or utility.



15. Any proposed improvements are assumed to be completed in a good workmanlike manner in accordance with the submitted plans and specifications.

16. The distribution, if any, of the total valuation in this

report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used.

17. Possession of this report, or a copy thereof, does not

carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event, only with proper written qualification and only in its entirety.

18. Neither all nor any part of the contents of this report

(especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news sales, or other media without prior written consent and approval of the appraiser.

19. This appraisal report has been prepared for the exclusive

benefit of Mr. Kurt Jones of Jones & Sons, Inc. It may not be used or relied upon by any other party. Any party who uses or relies upon any information in this report, without the preparer’s written consent, does so at his own risk.



CERTIFICATION

I certify that to the best of my knowledge and belief:

1. The statements of fact contained in this report are true and correct.

2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased, professional analyses, opinions, and conclusions.

3. I have no present or prospective interest in the property that is the subject of this report and I have no personal interest or bias with respect to the parties involved.

4. My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event.

5. This appraisal was not base on a requested minimum valuation, a specific valuation, or the approval of a loan.

6. My analyses, opinions, and conclusions were developed, and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice.

7. I have made a personal inspection of the property that is the subject of this report.

8. No one provided significant professional assistance to the person signing this report.

9. The reported analyses, opinion, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.

10. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

Brian F. Conley, GRI Indiana Certified General Appraiser

State Certification Number: CG 69100221



BRIAN F. CONLEY INDIANA GENERAL CERTIFIED APPRAISER Conley Real Estate Appraisals, Inc.

321 Ohio Street Upper Suite #1 Terre Haute, IN 47807

Phone and Fax (812) 235-4576 email: [email protected]

EDUCATION:

Bachelor of Business Administration - Indiana State University, 1976. Appraisal Course IA-1 - (Real Estate Appraisal Principles) - sponsored by the Appraisal Institute, completed at Indiana University, 1978 and 1990. Appraisal Course IA-2 - (Basic Valuation Procedures) - sponsored by the Appraisal Institute, completed at Indiana University, 1978 and 1990. Appraisal Course IB - (Capitalization) - sponsored by the Appraisal Institute, taken at Indiana University, 1980. Appraisal Course II - (Valuation Analysis) - sponsored by the Appraisal Institute, taken at Indiana University, 1981. Graduate Realtors Institute (GRI) - sponsored by the Indiana Association of Realtors, taken at Indiana University, 1979. Fair Housing Laws - sponsored by the Education REsources, taken in Indianapolis, August 2004. Market Analysis and the Site to do Business Seminar – Sponsored by the Appraisal Institute, taken in Indianapolis, July 2005 Americans with Disabilities Act Seminar - sponsored by the Education REsources, taken in Indianapolis August 2006 Standards of Professional Practice - sponsored by Education REsources, taken in Indianapolis, August 2006. Legal Descriptions & Surveying for Condemnation - sponsored by Education REsources, taken in Indianapolis, August 2002. Contemporary Environmental Issues - sponsored by the Education REsources, taken in Indianapolis, August 2004 PROFESSIONAL EXPERIENCE: Southeast Drainage Project. Projects 13, 14, 15, 17, 18, 19 and 20 Sewer Projects, Board of Sanitary Commissioners. Honey Creek-Vigo Conservancy District Plan A and Plan B Flood Control Project.

Chamberlain Road project and Industrial Park Sewer Easements, Vigo County Commissioners. Federal National Mortgage Association (FNMA), Relocation Companies, various attorneys and private parties. All major banks in the Terre Haute area. Has been continuously associated with real estate appraisals for over 30 years with the present firm of Conley Real Estate Appraisals, Inc., of which he is president.



Appointed by and testified in Vigo County Superior Court, Clay County Circuit Court, and Owen County Circuit Court as an appraiser. Appointed by Governors B. Evan Bayh and Frank O’Bannon as a real estate appraiser for the State of Indiana. Approved appraiser with Indiana Department of Transportation.

PROFESSIONAL AFFILIATIONS: Indiana Certified General Appraiser license # CG69100221

Appointed by Governor B. Evan Bayh to the Indiana Real Estate Commission (June 1, 1991 through May 31, 1999). Reappointed by Governor Frank O’Bannon (June 1, 1999 through May 31, 2003). Resigned to accept a new position on August 14, 2001 Appointed by Governor Frank O’Bannon to the Indiana Real Estate Appraiser Licensure Board, August 14, 2001 through October 12, 2006. Served as Board Chairman 2004 & 2005. Associate Member, Appraisal Institute.

Indiana Real Estate Brokers License number IB20501035.

Past Chairman, Education Committee, Terre Haute Area Association of Realtors.

Member, past director and past president of Terre Haute Board Association of Realtors.

Member and past director of Indiana Association of Realtors.

Member of National Association of Realtors.

President and member Terre Haute Area Association of REALTORS Multiple Listing Service.

Terre Haute Area Association of REALTORS, 1985 and 2003 REALTOR of the Year.

Member of the Terre Haute Homebuilders Association

Former member of Terre Haute City Council. (1988-1995).

Past member of Vigo County Area Plan Commission.

Awarded Sagamore of the Wabash by Governor B. Evan Bayh, January 1997

Member and current Vice Chairman of the Terre Haute Redevelopment Commission (appointed November

1999)

c conley real estate appraisals, inc. - jones and...

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