for - furrow strickland

APPRAISAL OF

David and Martha Black

Various Properties

Cates Street and Tedford Street

Maryville, TN 37801

Appraisal Report

FOR

Mr. Bryan Daniels

President and CEO

Blount Partnership

201 S Washington Street

Maryville, TN 37804

BY

David A Shanks, MAI, AI-GRS

Senior Appraiser | Consultant

Shanks and Associates

215 Ellis Avenue

Maryville, TN 37804

215 Ellis Avenue

Maryville, Tennessee 37804

T 865.738.0870 | F 865.738.0860

September 21, 2017

Mr. Bryan Daniels

President and CEO

Blount Partnership


Maryville, TN 37804

RE:

David and Martha Black

Various Properties


Maryville, TN 37801

Dear Mr. Daniels:

As requested, I have inspected the above property for the purpose of estimating market value of

the fee simple estate.

Based upon my inspection of the property and analysis of cost related data, it is my conclusion

that “as is” market value as of September 5, 2017 is:

$2,200,000 - Underlying Land – 4.94 Acres

$2,200,000 – Value of Combined Tracts

The attached report includes certain assumptions, limiting conditions and specific contingencies

to which the value conclusion is subject.

Mr. Daniels

Page 2

September 21, 2017

If after reading this report you have any questions or concerns regarding the appraisal or the

conclusion, please do not hesitate to call. It has been a pleasure providing you this service.

Yours truly,

David A. Shanks, MAI, AI-GRS

State Certified General Appraiser, CG-3104

David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801

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TABLE OF CONTENTS

ASSUMPTIONS AND LIMITING CONDITIONS ...................................................................................................... 2

SPECIFIC CONTINGENCIES ............................................................................................................................................... 5

QUALIFICATIONS OF DAVID A SHANKS, MAI, AI-GRS .................................................................................. 6

CERTIFICATE OF APPRAISAL ........................................................................................................................................... 8

SUMMARY OF FACTS AND CONCLUSIONS ......................................................................................................... 10

SUBJECT PHOTOGRAPHS ................................................................................................................................................. 11

SALES HISTORY ....................................................................................................................................................................... 25

SCOPE OF WORK .................................................................................................................................................................... 26

SCOPE OF WORK SUMMARY .......................................................................................................................................... 27

REPORT TYPE ............................................................................................................................................................................ 28

LOCATION MAP ....................................................................................................................................................................... 31

AERIAL PHOTO ........................................................................................................................................................................ 33

ZONING ......................................................................................................................................................................................... 36

FLOOD DATA ............................................................................................................................................................................. 37

AERIAL MAP WITH FLOOD OVERLAY ..................................................................................................................... 38

MARKET DATA .......................................................................................................................................................................... 52

HIGHEST AND BEST USE ................................................................................................................................................... 69

DESCRIPTION OF THE APPRAISAL PROCESS .................................................................................................... 73

SALES COMPARISON APPROACH .............................................................................................................................. 74

CONCLUSION ......................................................................................................................................................................... 108

ADDENDA ................................................................................................................................................................................. 109


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ASSUMPTIONS AND LIMITING CONDITIONS

This appraisal report has been made with the following general assumptions:

1. No responsibility is assumed for the legal description or for matters including legal or title

considerations. Title to the property is assumed to be good and marketable unless otherwise

stated.

2. The property is appraised free and clear of any or all liens of encumbrances unless otherwise

stated.

3. Responsible ownership and competent property management are assumed.

4. The information furnished by others is believed to be reliable. However, no warranty is given for

its accuracy.

5. All engineering is assumed to be correct. The plot plans and illustrative material in this report are

included only to assist the reader in visualizing the property.

6. 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.

7. It is assumed that there is full compliance with all applicable federal, state, and local environmental

regulations and laws unless noncompliance is stated, and defined, and considered in the appraisal

report.

8. It is assumed that all applicable zoning and use regulations and restrictions have been complied with,

unless nonconformity has been stated, defined and considered in the appraisal report.

9. 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 noted in the

report.


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This appraisal report has been made with the following general limiting conditions:

1. 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.

2. 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. A party receiving a report copy from the stated intended

user does not, as consequence, become party to the appraiser-client relationship.

3. The appraiser herein by reason of this appraisal is not required to give further consultation,

testimony, or be in attendance in court with reference to the property in question unless

arrangements have been previously made.

4. 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 the prior written consent and approval of the appraiser.


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5. This report is made under the following Extraordinary Assumption:

Use of this assumption may have affected the assignment results.

...that 306 Tedford Avenue was not directly inspected and is

considered to be in average physical condition. The subject

property offers (6) improved properties.

An exterior only viewing was made of the 306 Tedford

Avenue due to being tenant occupied with no access made

available to the appraiser.

The Appraisal Institute defines Extraordinary Assumption as:

An assumption, directly related to a specific assignment, as of the effective date of the

assignment results, which, if found to be false, could alter the appraiser’s opinions or

conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about

physical, legal, or economic characteristics of the subject property; or about conditions external

to the property such as market conditions or trends; or about the integrity of data used in an

analysis.


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SPECIFIC CONTINGENCIES

1. Unless otherwise stated in this report, the existence of hazardous material, which may or may

not be present on the property, was not observed by the appraiser. The appraiser has no

knowledge of the existence of such materials on or in the property. The appraiser, however, is

not qualified to detect such substances. The presence of substances such as asbestos, urea-

formaldehyde foam insulation or other potentially hazardous materials may affect the value of

the property. The value estimate is predicated on the assumption that there is no such material

on or in the property that would cause a loss in value. No responsibility is assumed for any

such conditions, or for any expertise or engineering knowledge required to discover them. The

client is urged to retain an expert in this field, if desired.

2. "I (we) have not made a specific compliance survey and analysis of this property to determine

whether or not it is in conformity with the various detailed requirements of the ADA. It is

possible that a compliance survey of the property together with a detailed analysis of the

requirements of the ADA could reveal that the property is not in compliance with one or more

of the requirements of the Act. If so, this fact could have a negative effect upon the value of the

property. Since I (we) have no direct evidence relating to this issue, I (we) did not consider

possible non-compliance with the requirements of ADA in estimating the value of the property."

UNIFORM STANDARDS OF PROFESSIONAL PRACTICE

COMPETENCY RULE

Prior to accepting an assignment or entering into an agreement to perform any assignment, an

appraiser must properly identify the problem to be addressed and have the knowledge and experience

to complete the assignment competently; or alternatively, must:

1. Disclose lack of knowledge and/or experience to the client before accepting the

assignment;

2. take all steps necessary or appropriate to complete the assignment competently; and

3. describe the lack of knowledge and/or experience and the steps taken to complete

the assignment competently in the report.1

Our firm has considered the nature of this assignment and has relevant experience both in the

field and appraising this property type. This qualifies us to engage in this assignment based on the

USPAP Competency Rule.

1 USPAP 2016-2017 Ed. Appraisal Standards Board, The Appraisal Foundation, Page 12, Line 341-344


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QUALIFICATIONS OF DAVID A SHANKS, MAI, AI-GRS

General real estate appraisal with emphasis on market value appraisals, feasibility and counseling

for acquisition, sale and mortgage loan purposes.

Professionally servicing Tennessee, Virginia, and Georgia since 2001.

Education

B.S. Cumberland College, Williamsburg, Kentucky, 2001, major in Psychology

Professional Education / Appraisal Institute Courses

AI Course 110 Appraisal Principles

AI Course 120 Appraisal Procedures

AI Course 310 Basic Income Capitalization

AI Course 320 General Applications

AI Course 410 Uniform Standards of Professional Appraisal Practice, Part A

AI Course 420 Uniform Standards of Professional Appraisal Practice, Part B

AI Course 510 Advanced Income Capitalization

AI Course 520 Highest & Best Use and Market Analysis

AI Course 530 Advanced Sales Comparison and Cost Approaches

AI Course 540 Report Writing

AI Course 550 Advanced Applications

Professional Memberships and Services

Appraisal Institute: MAI, Certificate No. 12918. Qualifications are comprehensive courses,

experience and proven ability in the appraisal of all property types. AI-GRS Designation, Highest

level of commercial appraisal review experience.

Greater Tennessee Chapter of Appraisal Institute: Chairman, Public Relations, 2006-2008

Board of Directors, 2010-2012

State of Tennessee Certified General Appraiser #3104

Knoxville Board of Realtors: Affiliate Broker 2015-Present

Blount County Chamber of Commerce: Board of Directors, 2017-Present, Chamber

Government Relations/Rapid Response Team, 2016-Present

Harbours Gate Board of Directors, Treasurer, 2016-Present

Maryville High School Athletic Boosters Board, 2016-Present

Fairview United Methodist Church: Board of Trustees, 2012-2014, Staff Parish, 2017-Present

Experience

Overall experience includes appraisals of retail, office, service commercial, industrial,

agricultural, multifamily, hospitality, subdivision development, and condominium development.


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QUALIFICATIONS OF DAVID A SHANKS, MAI, AI-GRS – CONTINUED

REAL ESTATE APPRAISAL CONTINUING EDUCATION

AI Cool Tools: New Technology for Real Estate Appraisers, Online 2009

AI Business Practices and Ethics, Online 2009

AI Real Estate Finance Statistics and Valuation Modeling, Nashville, TN 2009

AI Into to Valuation for Financial Reporting, Nashville, TN 2010

AI 7-Hour National USPAP Update Course, Knoxville, TN 2010

AI Business Practices and Ethics, Knoxville, TN 2010

AI Advanced Income Capitalization, Chicago, IL 2011

AI Understanding and Testing DCF Valuation Models, Nashville, TN 2011

AI 7-Hour National USPAP Update Course, Knoxville, TN 2012

AI Advanced Market and Highest and Best Use, Greensboro, NC 2013

AI 7-Hour National USPAP Update Course, Gray, TN 2014

AI Review Theory-General, Chicago, IL 2015

AI Business Practices and Ethics, Atlanta, GA 2016

REPRESENTATIVE APPRAISAL CLIENTS

Big South Fork Properties

Branch Banking & Trust (BB&T)

Citizens Bank

Citizens Bank & Trust Co.

Citizens Bank of Blount County (CBBC)

Citizens First Bank

Citizens National Bank (Sevierville)

Citizens National Bank (Athens)

Clayton Bank and Trust

Community Trust Bank

Downey Oil

Evangelical Christian Credit Union (ECCU)

Enrichment Federal Credit Union

First Century Bank

First Citizens National Bank

First National Bank

First National Bank of Tennessee

First Tennessee Bank

First Volunteer Bank

Five Oaks Development Co.

Grundy National Bank

Hagood, Tarpy, & Cox

Holston Methodist Conference

Horne Properties

Integration 4.0

Justice Law Firm

Mountain 1st Bank & Trust

National Bank of Tennessee

ORNL Federal Credit Union

Peoples Bank of East Tennessee

Regions Bank

Sandy Spring Bank

State Farm Bank

StoneGate Bank

The Peoples Bank of Knoxville

TNBank

U.S. Senator Bob Corker

U.S. Dept. of Energy

Walker Construction


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CERTIFICATE OF APPRAISAL

I certify that, to the best of my knowledge and belief that...

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, impartial, 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 with respect to the parties involved.

4. I have no bias with respect to the property that is the subject of this report or to the parties

involved with this assignment.

5. My engagement in this assignment was not contingent upon developing or reporting

predetermined results.

6. My compensation for completing this assignment 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 estimate, the attainment of a stipulated result, or the occurrence of a

subsequent event directly related to the intended use of this appraisal.

7. The reported analyses, opinions, and conclusions were developed, and this report has been

prepared, in conformity with the Code of Professional Ethics & Standards of Professional

Appraisal Practice of the Appraisal Institute.

8. The reported analyses, opinions, and conclusions were developed, and this report has been

prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.

9. The use of this report is subject to the requirements of the Appraisal Institute relating to review

by its duly authorized representatives.

10. As of the date of this report I, David A. Shanks, MAI, AI-GRS have completed the requirements

of the continuing education program of the Appraisal Institute.

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

12. No one provided significant person property appraisal assistance to the person signing this

certification.


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CERTIFICATE OF APPRAISAL – CONTINUED

13. This report was not based on a requested minimum valuation, a specific valuation, or the

approval of a loan.

14. The real property which is the subject of this appraisal report was valued as of September 5,

2017.

15. I have not performed services, as an appraiser or in any other capacity, regarding the property

that is the subject of this report within the three year period immediately preceding acceptance

of this assignment.

16. This report was performed in accordance with the requirements of Title XI of FIRREA and any

implementing regulations.

David A Shanks, MAI, AI-GRS

State Certified General Appraiser, CG-3104

Date of Certification – September 21, 2017


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SUMMARY OF FACTS AND CONCLUSIONS

Property Identification: David and Martha Black

Various Properties


Maryville, TN 37801

Land Data: Approximately 4.94 Acres - Total

Building Data: See Building Description Section

Zoning: Office Transition

Highest and Best Use: Commercial

Cost Approach: N/A

Sales Comparison Approach: $2,200,000 - Underlying Land – 4.94 Acres


Income Approach: N/A

Final Conclusion: $2,200,000 - Underlying Land – 4.94 Acres


Reasonable Exposure Time: Twelve to Eighteen Months - Individually

Twenty-Four to Thirty-Six Months - Whole


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SUBJECT PHOTOGRAPHS

Viewing Front of Main Office at 329 Cates Street

Viewing Northeast Along W. Lamar Alexander Parkway Near Entrance/Exit


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SUBJECT PHOTOGRAPHS - CONTINUED

Viewing Southwest Along W. Lamar Alexander Parkway – Property at Right

Viewing North Near Main Office Property


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Viewing Property No. 1 – 1.13 Acre Site Along East Side of Cates Street

Property No. 1 – 1.13 Acre Site Along Cate Street


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Front and East Side of Main Office – Property No. 2

Rear of Main Office


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Main Office and Rear Parking

Interior of Foyer/Lobby Area of Main Office


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Waiting Area of Main Office

Conference Room in Main Office


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Typical Office – Main Office Building

Open Office Area of Rear of Main Office


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Kitchen Area of Man Office

Typical Restroom of Main Office


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Viewing East at Rear Parking for Main Office

Viewing Property No. 4 – Annex “A” Office at 329 Cates Street


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Viewing Property No. 5 - 298 Highland Avenue

Viewing Property No. 6 - 314 Tedford Avenue


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Viewing East at Front of Property No. 9 – 0.22 Acre Site Along Tedford Avenue

Viewing North at Property No. 10 – 0.24 Acre Site Along West Side of Cates Street


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Viewing North Near Property No. 10 – 0.24 Site Along Cates Street

Viewing West Near Rear Parking of Main Office


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Viewing North Along Tedford Street – Properties at Right

Viewing East Along Highland Avenue – Property at Right and Left


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PROPERTY IDENTIFICATION

The property considered in this appraisal is the David and Martha Black property which consists

of (10) parcels within the city limits of Maryville, Blount County, Tennessee. The properties are situated

along the northeast side of W. Lamar Alexander Parkway, east side of Tedford Street and east and west

side of Cates Street just south of Gamble Avenue. Six of the ten parcels are improved with office and

residential properties with four currently owner occupied as offices and two being utilized for

residential rentals. The remaining four parcels are vacant tracts with one being utilized for parking. The

combined properties offer a land area of approximately 4.94 acres. For this appraisal we will estimate

value for the underlying land area of 4.94 acres and estimate value for the individual properties.

The properties are identified as Properties 1-10 and are listed as follows:

Property # Address Map/Parcel Land Area Comments

1 Cates Street 057E/E/024.00 1.13 Acres Vacant Tract

2 329 Cates Street 057E/F/014.00 2.00 Acres Main Law Office

3 317 Cates Street 057E/F/013.00 0.36 Acres Parking Area

4 296 Highland Ave. 057E/F/051.00 0.14 Acres Office

5 298 Highland Ave. 057E/F/050.00 0.13 Acres Rental Residence

6 314 Tedford Ave. 057E/F/052.00 0.19 Acres Office

7 312 Tedford Ave. 057E/F/053.00 0.33 Acres Office

8 306 Tedford Ave. 057F/F/008.01 0.20 Acres Rental Residence

9 308 Tedford Ave. 057E/F/007.00 0.22 Acres Vacant Tract

10 311 Cates Street 057E/F/012.00 0.24 Acres Vacant Tract

SALES HISTORY

According to public records, the properties are currently owned by David T. Black and Martha

S. L. Black as indicated in Warranty Deed Book 2411, Page 591 in the Blount County Register of Deeds

Office. This transfer was for approximately 13 parcels from David T. Black and wife, Martha S. L. Black

and is dated March 5, 2015 with consideration recorded at $0. This was Quit Claim deed and does not

appear to have been an arm’s length transaction.

The properties are not currently actively listed for sale or been listed for sale within the prior

three years of this report.

A copy of the above listed title document is included in the addenda to this report.

This does not constitute a formal opinion of title.


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SCOPE OF WORK

The Appraisal Institute defines Scope of Work as:

The amount and type of information researched and analyses applied in an assignment.

This includes, but is not limited to; the degree to which the property is inspected or

identified, the extent of research into physical or economic factors that could affect the

property, the extent of data research and the type and extent of analysis applied to arrive at

opinions or conclusions (USPAP 2016-2017 ed.) 2

Following the scope of work principle, the appraiser identifies the client, intended user(s),

intended use and type of value to be determined. After these items are defined, the amount of research

and analysis is adapted to the specific appraisal problem, rather than following the same rote steps for

each assignment.

The Scope of Work centers around what is typically acceptable by the appraiser’s peers, as well

as what is best suited to perform a credible analysis.

In preparing this appraisal, we

1. inspected on September 5, 2017 and were accompanied by Mr. David Black.

2. researched records with reference to land and improved sales data for comparable

properties.

3. utilized comp search databases such as Knox, Kaarcie, Smoky Mountain, and TN/VA MLS

websites, CoStar and LoopNet in an effort to obtain the most relevant and recent data

available. The information obtained is assumed to be reliable and verified when possible.

4. analyzed collected data and produced this report.

Considering the property type, current use and configuration, we have utilized the sales

comparison approach to value as all appear relevant to producing a credible value opinion.

Primarily due to typical investor criteria for this property type, the Cost Approach is neither

applicable nor necessary to develop a credible opinion of value. The income approach is not considered

a reliable indicator for this type property due to the majority of similar properties being owner occupied

and lack of recent and reliable rental data for this property type.

2 The Dictionary of Real Estate Appraisal, 6th ed., Appraisal Institute, Chicago, 2015


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SCOPE OF WORK SUMMARY

Client: Mr. Bryan Daniels

President and CEO

Blount Partnership


Maryville, TN 37804

Subject Property: David and Martha Black

Various Properties


Maryville, TN 37801

Intended User(s): Client

Intended Use: To provide information about the subject property for

planning purposes.

Property Rights Appraised: Fee Simple

Type of Value: Market Value

Report Option: Appraisal Report

Extraordinary Assumptions: See Page 4

Hypothetical Conditions: None

Effective Date of Value: September 5, 2017

Date of Report: September 21, 2017


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REPORT TYPE

According to amendments to the Uniform Standards of Appraisal Practice, effective January 1,

2014, appraisal reports are placed into two categories. The categories are: Appraisal Report and

Restricted Appraisal Report.

This is an Appraisal Report.

An Appraisal Report is the written communication of an appraisal prepared under Standards

Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice, 2016-2017 Ed.

An Appraisal report contains a summary of all information significant to the solution of the

appraisal problem and must be consistent with the intended use of the appraisal.


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DEFINITION OF MARKET VALUE

The Appraisal Institute states that the most widely accepted components of Market Value are

incorporated in the following definition:

The most probable price that the specified property interest should sell for in a competitive market

after a reasonable exposure time, as of a specified date, in cash, or in terms equivalent to cash, under all

conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, for

self-interest, and assuming that neither is under duress. 3

The following definition of market value is used by agencies that regulate federally insured

financial institutions in the United States:

The most probable price that 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 is the consummation of a

sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

Buyer and seller are typically motivated;

Both parties are well informed or well advised, and acting in what they consider their best

interests;

A reasonable time is allowed for exposure in the open market;

Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements

comparable thereto; and

The price represents the normal consideration for the property sold unaffected by special or

creative financing or sales concessions granted by anyone associated with the sale.

(12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992;

59 Federal Register 29499, June 7, 1994)

3 The Dictionary of Real Estate Appraisal, 6th ed., Appraisal Institute, Chicago, 2015


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PROPERTY RIGHTS APPRAISED

The Appraisal Institute defines an estate as:

A right or interest in property. Defines an owner’s degree, quantity, nature, and extent of

interest in real property. There are many different types of estates, including freehold (fee simple,

determinable fee, and life estate) and leasehold. To be an estate in land, an interest must allow

possession (either now or in the future) and be differentiated primarily by its duration. 4

The Unencumbered Fee Simple Estate is appraised in this report.

Unencumbered Fee Simple Estate

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..5

Leasehold Interest

The tenant’s possessory interest created by a lease.6

Leased Fee Interest

A freehold (ownership interest) where the possessory interest has been granted to another

party by creation of a contractual landlord-tenant relationship (i.e., a lease).7

Going Concern Value

A business having the ability to continue functioning as a business entity in the future. In

accounting, a business is considered to be a going concern if it is likely to continue functioning 12

months into the future.8

If the going concern is valued, the type of value provided is going-concern value, which is defined

as follows: The market value of all the tangible and intangible assets of an established and operating

business with an indefinite life, as if sold in aggregate; more accurately termed the market value of the

going concern. 9

4The Dictionary of Real Estate Appraisal, 6th ed., Appraisal Institute, 2015, Chicago, IL







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LOCATION MAP


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AERIAL PHOTO


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AERIAL PHOTO


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SITE DATA

Size/Dimensions

The ten combined parcels are shown to offer a land area of approximately 4.94 acres. The

parcels are identified as Parcel 024.00, Group E on Tax Map 057E and Parcels 007.00, 008.01, 012.00,

013.00, 014.00, 050.00, 051.00, 052.00 and 053.00, Group F on Tax Map 057E in the Blount County

Property Assessor Office. Sizes for each parcel is listed as follows:

Property 1 – Parcel 024.00 – 1.13+- Acres

Property 2 – Parcel 014.00 – 2.00+- Acres

Property 3 – Parcel 013.00 – 0.36+- Acre








Total 4.94+- Acres

Contour

The sites are relatively level at road grade and offer relatively level to gently sloping contours.

Property 1 offers down sloping contour from Cates Street toward the creek. Property 2 slopes gently

upward from Lamar Alexander Parkway and features level to sloping contour. Property 3 offers

relatively level contour. Properties 4 and 5 feature level to sloping contour from front toward rear.

Properties 6, 7, 8 and 9 offer level contours from front to rear. Property 10 features level to gently

sloping contour from front to rear.

Utilities

The properties are located within the city limits of Maryville with all public utilities available.

Other Site Improvements

Site improvements include asphalt parking/paving near the rear and side of Property 2, majority

of Property 3 and rear of Properties 6 and 7. The improved parcels feature general landscaping to

include plantings and trees.

Off Site Improvements

Cates Street and Tedford Street are paved, two lane city streets at this location. W. Lamar

Alexander Parkway is a paved, four land state highway with grass median at this location.

Function and Usefulness

Given that description above, the site under review offers adequate utility to function under the

current, or a variety of other possible uses.


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SITE MAP


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ZONING

The properties are zoned y is zoned Office Transition District under the zoning ordinance for

the City of Maryville. This zone provides for a variety of commercial and office uses. This zone allows

for a mixture of lower intensity uses typically found on the fringe of a downtown area, including offices,

small-scale commercial uses and multi-family residences. The existing use appears to conform to the

current zoning ordinance.

A copy of the zoning map identifying the location of the property is included as an exhibit below.

ZONING MAP


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FLOOD DATA

According to the Flood Insurance Rate Map as published by the Federal Emergency Management

Agency (FEMA), the property is not located within a designated 100 Year Flood Zone and is not subject

to flooding. The Community Panel Map Number is 47009C0138C, effective September 19, 2007. A

copy of the Flood Map identifying the location of the property is included below.

FLOOD MAP


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AERIAL MAP WITH FLOOD OVERLAY


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ASSESSMENT AND TAXES

The properties are identified below for tax purposes on Tax Map 057E of the mapping system

for Blount County. The properties are currently assessed at a commercial rate of 40% or residential

rate of 25% of appraised value. The real estate taxes are broken down for the property as follows:

Property # Map/ParcelAppraised

Land

Appraised

Improvements

Total Tax

AppraisalTax Assessment Tax Burden

1 057E/E/024.00 $87,700 N/A $87,700 $21,925 $1,017.32

2 057E/F/014.00 $175,700 $412,300 $588,000 $235,200 $10,913.28

3 057E/F/013.00 $42,700 N/A $42,700 $10,675 $495.32

4 057E/F/051.00 $21,000 $121,500 $142,500 $57,000 $2,644.80

5 057E/F/050.00 $20,800 $76,500 $97,300 $24,325 $1,128.68

6 057E/F/052.00 $24,700 $116,800 $141,500 $56,600 $2,626.24

7 057E/F/053.00 $37,100 $120,600 $157,700 $63,080 $2,926.91

8 057F/F/008.01 $20,900 $60,600 $81,500 $20,375 $945.40

9 057E/F/007.00 $23,000 N/A $23,000 $5,750 $266.80

10 057E/F/012.00 $30,400 N/A $30,400 $12,160 $564.22

Total $23,528.97


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DESCRIPTION OF IMPROVEMENTS

Property No. 1

General Description

Building Type: Office

Year Built: 1900

Year Renovated: Unknown

Actual Age: 117+- Years

Effective Age: 20 Years

Remaining Economic

Life: 20-30 Years

Foundation: Concrete slab/basement

Total Area (SF): 5,451+- SF

Story/Floor/Level Area (SF)

Main Level 2,892+- SF

Upper Level 2,559+- SF

Basement (unfinished) 2,089+- SF

Exterior Description Interior Description

Roof Covering: Cedar Shingle Ceiling Finish: Plaster/Drywall

Roof Structure: Gable Wall Finish: Plaster/Drywall

Exterior Siding: Wood Siding Floor Coverings: Hardwood, carpet, vinyl, tile

Exterior Wall: Frame Millwork/Trim: Wood

Windows: Wood Doors: Solid wood

Doors: Solid Wood HAVC: Central

Restrooms: (3) Half and (2) Full

Offices: (8)

Comments

Main Office - features two story design with unfinished basement area. Main level layout consists of front reception,

open waiting area, (2) offices, (2) conference areas, kitchen, (2) two piece restrooms and (1) full bathroom. Upper

level offers open reception, (6) offices, (1) two piece restroom and (1) full bathroom. Lower level basement features

open areas currently utilized for file storage, technical support and mechanical areas. The improvement offers good

quality of construction with good finishes and appears to be in good condition. The appraiser is not a professional

building inspector or structural engineer. An inspection by a professional inspector is recommended for an in depth

analysis regarding condition.


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BUILDING SKETCH

Property No. 1


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DESCRIPTION OF IMPROVEMENTS - Continued

Property No. 4

General Description


Year Built: 1925

Year Renovated: Addition in 2002



Remaining Economic

Life: 20-30 Years





Basement (unfinished) 862+- SF


Roof Covering: Fiberglass Shingle Ceiling Finish: Plaster/Drywall


Exterior Siding: Wood Siding Floor Coverings: Hardwood, carpet, tile

Exterior Wall: Frame Millwork/Trim: Wood



Restrooms: (3) Two piece

Offices: (3)

Comments

Office - features one story design with unfinished basement area. Main level layout consists of front reception,

conference room, (3) offices, kitchen and (3) two piece restrooms. Lower level basement features open area

currently utilized for storage and mechanical areas. Other features include rear enclosed porch and fireplace. The

improvement offers good quality of construction with good finishes and appears to be in good condition. The

appraiser is not a professional building inspector or structural engineer. An inspection by a professional inspector is

recommended for an in depth analysis regarding condition.


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BUILDING SKETCH

Property No. 4


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Property No. 5

General Description

Building Type: Office/Residence

Year Built: 1920




Remaining Economic

Life: 20-30 Years





Basement (unfinished) 1,233+- SF




Exterior Siding: Wood/Stone Siding Floor Coverings: Hardwood, laminate wood

Exterior Wall: Frame/Stone Millwork/Trim: Wood



Restrooms: (1) Full

Offices/BR: (2)

Comments

Office/Residence - features one story design with unfinished basement area. Property has recently been utilized as a

residence but could function as office with current layout. Main level layout consists of front reception/living room, (2)

offices/bedrooms, kitchen and (1) full bathroom. Lower level basement features open area for storage and mechanical

area. Other features include front screen porch and fireplace. The improvement offers good quality of construction

with good finishes and appears to be in good condition. The appraiser is not a professional building inspector or

structural engineer. An inspection by a professional inspector is recommended for an in depth analysis regarding

condition.


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BUILDING SKETCH

Property No. 5


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Property No. 6

General Description


Year Built: 1920




Remaining Economic

Life: 20-30 Years





Upper Level 320+- SF





Exterior Siding: Wood Siding Floor Coverings: Carpet, vinyl tile




Restrooms: (1) Full

Offices/BR: (3)

Comments

Office - features one and one half story design with unfinished basement area. Property is currently utilized as an

office but could function as residence with current layout. Main level layout consists of front conference room, (3)

offices, kitchen and (1) full bathroom. Lower level basement features open area for storage and mechanical area.

Other features include covered front and rear porches and fireplace. The improvement offers good quality of

construction with good finishes and appears to be in good condition. At the time of viewing the upper level did not

offer access but could be attainable with addition of stairway. The appraiser is not a professional building inspector or

structural engineer. An inspection by a professional inspector is recommended for an in depth analysis regarding

condition.


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BUILDING SKETCH

Property No. 6


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Property No. 7

General Description


Year Built: 1925




Remaining Economic

Life: 20-30 Years





Upper Level 528+- SF





Exterior Siding: Wood Siding Floor Coverings: Carpet, vinyl tile




Restrooms: (2) Two Piece

Offices/BR: (5)

Comments

Office - features one and one half story design with unfinished basement area. Property is currently utilized as an

office. Main level layout consists of reception area, conference room, (3) offices and (1) two piece restroom. Upper

level offers (2) offices and (1) two piece restroom. Lower level basement features open area for storage and

mechanical area. Other features include covered front and rear porches, access ramp at rear and fireplace. The

improvement offers good quality of construction with good finishes and appears to be in good condition. The

appraiser is not a professional building inspector or structural engineer. An inspection by a professional inspector is

recommended for an in depth analysis regarding condition.


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BUILDING SKETCH

Property No. 7


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Property No. 8

General Description


Year Built: 1920




Remaining Economic

Life: 20-30 Years









Exterior Siding: Wood Siding Floor Coverings: Hardwood, carpet, vinyl tile




Restrooms: (1) Full

Offices/BR: (2)

Comments

Office/Residence - features one story design with unfinished basement area. Property is currently utilized as a rental

residence but could function as office with current layout. Main level layout consists of front living room, dining,

kitchen, (2) bedrooms and 91) full bathroom. Lower level unfinished basement features open area for storage and

mechanical area. Other features include front covered porch, rear screen porch and fireplace. The improvement

offers good quality of construction with good finishes and appears to be in average condition. The appraiser is not a

professional building inspector or structural engineer. An inspection by a professional inspector is recommended for

an in depth analysis regarding condition.


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BUILDING SKETCH

Property No. 8


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MARKET DATA

Blount County

Location

Blount County, one of the state’s oldest counties, is located in the Smoky Mountains in southern

east Tennessee with a land area of nearly 560 square miles and approximately 8 square miles of water.

Blount County is part of the Knoxville Metropolitan Statistical Area (Knoxville MSA) which is comprised

of Knox County and eight surrounding counties: Anderson, Blount, Campbell, Grainger, Loudon,

Morgan, Roane, and Union. While Knox County is the driving force of the MSA, Blount County also

plays a key role as it contains the regional airport and over 100 manufacturing plants including Aluminum

Company of America (Alcoa), the county’s largest employer.


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MARKET DATA – CONTINUED

Transportation

Transportation facilities serving Blount County are considered good to average and include

several major highways: U.S. 129, 411 and 321, as well as State Routes 1-140, 33 and 95. State Highway

73 links the area with Townsend, Walland and the Great Smoky Mountains National Park. Railroads

serving the area are Norfolk/Southern and CSX rail. Knoxville's McGhee-Tyson Airport is located

adjacent to the Alcoa city limits and is the principal commercial airport for East Tennessee. Because

Blount County is proximate to, and well linked with the Knoxville metropolitan area, residents have

ready access to all sectors of the East Tennessee region.


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Population


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Population (cont.)

The Blount County population is growing at rates consistently above that of both Tennessee

and the United States. While there has been an overall decrease in percent growth over the past

twenty years, this is a trend shared by both the state and the nation. This trend is natural and nothing

to be alarmed at and still shows that Blount County is growing very well.


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Employment

The Knoxville MSA consistently had the lowest unemployment rate of any Tennessee MSA

between 2007 and 2011 and was tied with Nashville for the lowest in 2012. During this time period, the

Knoxville MSA did not include Campbell, Grainger, Morgan, or Roane Counties. Because of this, the

MSA is likely to not have the lowest overall rate anymore but regardless, unemployment rates in the

greater Knoxville area are, and should continue to be, very good.

Of the nine counties comprising the Knoxville MSA, Knox County consistently has the lowest

rates. Since Knox County is the largest in the area, the numbers for the MSA as a whole will follow

closely to that of Knox County.

While Blount County has foreclosure rates above that of the Knoxville MSA, they are still

consistently well below that of the state. Blount County, as well as the rest of the nation, saw a large

increase in unemployment in 2009 due to the economic recession but rates have steadily decreased

since then and this trend is expected to continue.


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Income

In comparison to the Knoxville MSA, Blount County has a much lower concentration of

households making less than $35,000 per year and a larger concentration of households making between

$35,000 and $100,000, but a smaller concentration of households making over $100,000 per year.

Blount County has a higher median household income than the MSA but a lower average and per capita

income.


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Income (cont.)


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Housing

From 2002 until 2005 Blount County saw overall increase in house sales. 2006 and 2007 saw

relatively small decreases in existing home sales followed by a sharp decrease in 2008 which led to a

continued decline since then. New home sales saw a staggering drop in 2007 followed by a relatively

sharp increase in 2008, but numbers have been relatively lower since then.

This large decrease was one experienced by the surrounding area as well as the nation and is

due to the economic recession as well as the housing market crash. While most areas have seen recent

increases, especially in existing home sales, this is not the case for Blount County. This is likely a result

of significant overbuilding and excess supply in their market.


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Housing (cont.)

While the median new home price for Blount County has been relatively sporadic, the existing

and overall home prices have generally followed that of the state. In addition, existing and overall prices

have been higher than the state average and, in most years, significantly higher. These prices saw a sharp

increase between 2003 and 2007 but have been relatively steady since then.

While the median new home price for Tennessee has been fairly inconsistent, Blount County’s

has been even more sporadic. Compared to the median price of the state from 2002 until 2011, Blount

County has been below the state average for two years, above for four, and below again for the

remaining time. The new home price in Blount County has witnessed a significant change almost every

year during this time period, so it is very hard to determine a trend but overall home prices have

increased since 2002.


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Housing (cont.)

Blount County has experienced very low foreclosure rates and is almost always ranked at least

in the top half of the state. While most of the area experienced a significant increase in 2010, Blount

County saw foreclosure rates nearly double. Despite this spike, Blount County still had the lowest

foreclosure rate in the MSA, was 40% less than the state average, and was well less than half that of the

national average. Overall, the foreclosure rate in Blount County is very low and should continue to

decrease


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Housing (cont.)


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Housing (cont.)

Over half of Blount County housing units are valued between $50,000 and $150,000 while over

three-fourths of the county’s housing units are valued under $200,000. In comparison to the Knoxville

MSA as a whole, Blount County has a much higher concentration of houses valued under $200,000 and

a much lower concentration of houses valued over $200,000.


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Housing (cont.)


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Building Activity

Blount County saw large numbers of residential building permits in 2005 and 2006 followed by

large drops in 2007 and 2008. This is a trend experienced by many of the surrounding counties and

coincides with the crash in the housing market during that time period. The number of permits saw a

large rise in 2012, the highest they have been since 2008. This rate of increase is expected to continue

into the foreseeable future.


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Economy

Employment in Blount County is highlighted by three facilities of the Aluminum Company of

America (ALCOA) which employs approximately 3,500 people. The Denso Corporation is another

large employer with some 2,500 people, manufacturing automobile starters and alternators. Other

exported products include rope and cord manufactured by the Rockford Manufacturing Company,

hardwood products by Veach-May-Wilson Company, Tennessee, pink marble by John Craig Company

and extruded rubber products by Schlegel-Tennessee Corporation.

In February 2013, it was announced that ProNova Solutions, LLC would be the anchor tenant at

the Pellissippi Place Research and Development Park in Blount County, a joint venture between the

governments of Blount and Knox Counties and the cities of Maryville and Alcoa. The company, which

specializes in the design of cutting-edge cancer diagnosis and treatment using proton therapy, will be

making an initial capital investment of $52 million which is estimated to create a total of 525 jobs by

2018. Negotiations are prominent for large-scale retail tenants within the park.

In May 2013, it was announced that the Aluminum Company of America (ALCOA) would

expand its rolling mill facilities in Alcoa, TN that will produce aluminum sheet for Ford Motor Company.

The expansion, slated to be completed by mid-2015, represents an investment of $275 million and will

add 200 full-time jobs at the facility.

In August 2013, it was announced that Surface Igniter, LLC, the pioneer in the development of

the silicon carbide igniter, is moving its headquarters and manufacturing operations to the Blount

County Industrial Park in Maryville, TN. The company, which is a leading manufacturer of hot surface

igniters for the heating, cooking, clothes dryer, and BBQ grill industries, will be making an initial $3.8

million investment creating 54 jobs which is expected to double within the next three years.

Future R & D and industrial development is supported by the additional space at Pellissippi Place

as well as the existence of developed industrial parks which offer extensive land areas and infrastructure.

Beyond a strong industrial base, the County is a recognized retirement destination, which reflects the

quality of living attributes at play.

In February 2015, TeamHealth announced an expansion of their billing operations in Blount

County. Developers will invest $16.8 million in a new 40,000 square foot office building at Base Pointe

Business Park in Alcoa, TN. This will create 450 full-time jobs in the areas of management, accounting,

medical coding, and billing specifically for the specialty of anesthesia by August 2015.

In May 2015, Cirrus Aircraft announced a $15 million “Vision Center” creating 170 jobs at

McGhee Tyson Airport. Initial development will include a national showroom for the new personal jet

as well as other personal aircraft. A flight simulator will be installed in conjunction with this facility. The

average annual income of Cirrus’ clientele is $20 million. These people will be staying for a period of

time in the local community.

In October 2015, Advanced Munitions International announced plans to invest $553 million to

build a new manufacturing facility and worldwide headquarters on a 235 acre campus in Alcoa off

Louisville Road near McGhee Tyson Airport. This investment will bring 605 highly paid jobs to the area.


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In October 2016, B&T Distributing Company announced it is purchasing 20.75 acres in the

Blount County Industrial Park to relocate its regional headquarters and distribution center. The 170,000

square foot facility will bring 80 jobs and represents a $13 million investment with no local or state

incentives involved.

Conclusion

Blount County is a growing area linked with the Knoxville metropolitan area. Demand for real

estate in Blount County has been strong in the past given its natural amenities, location, economic base,

schools, etc. The area has seen marked population growth, subsequent retail and other commercial

development spurred by the population growth and relatively high income levels of the populace.

As the Country moves to recovery from the recession which peaked 2008/2009, Blount County

is poised to see a strong rebound as its fundamental offerings remain very competitive relative to other

areas of East Tennessee as evidenced on the previous page.


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Location/Access

The subject is located along Cates Street and Tedford Avenue in Maryville. Cates Street is

located near the downtown area of Maryville. The following map depicts the approximate market area:

Land Uses, Trends, Conclusion

The immediate are consists primarily of office uses. Uses in the immediate area consist of an

attorney’s office, title agency, realty office, funeral home, condominiums etc. The immediate area is an

older part of town as it consists of downtown Maryville. The area has remained stable for a while due to

it being an older established neighborhood. Overall, the neighborhood has remained stable and will

continue to remain stable.


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HIGHEST AND BEST USE

The Appraisal Institute defines and explains Highest and Best Use as follows:

The reasonably probable and legal use of vacant land or an improved property that is

physically possible, appropriately supported, financially feasible, and that results in the

highest value. The four criteria the highest and best use must meet are legal

permissibility, physical possibility, financial feasibility, and maximum productivity.

Alternatively, the probable use of land or improved property—specific with respect to

the user and timing of the use—that is adequately supported and results in the highest

present value.10

"Land is said to have value, while improvements contribute to the value of the property as a

whole. The theoretical emphasis of highest and best use analysis is on the potential uses of the

land as though vacant."

"That use of the land which may reasonably be expected to produce the greatest net

return to land over a given period of time. That legal use which will yield to land the

highest present value, sometimes called ‘optimum use’."

In estimating Highest and Best Use, there are essentially four stages of analysis:

1. Physical Use - to what uses is it physically possible to put the site in question.

2. Permissible Use (Legal) - what uses are permitted by zoning and deed

restrictions on the site in question?

3. Feasible Use - which possible and permissible uses will produce any net return

to the owner of the site?

4. Highest and Best Use - among the feasible uses, which use will be maximally

productive and offer the highest present worth?



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HIGHEST AND BEST USE – CONTINUED

As Vacant

Legally Permissible

Legal restrictions fall into two main categories – public and private. Private restrictions are

agreements imposed by previous owners and can include access easements, use limitations and leases.

Public constraints include zoning, right-of-way easements, historic districts and utility easements.

There are no known atypical public or private legal restrictions. From a legal standpoint, the

site is zoned for office transition use, which does not hinder reasonable highest and best use.

Physically Possible

Physical attributes commonly considered include size, shape, access, flood potential, contour and

utility availability. Characteristics that may be significantly detrimental, but the appraiser(s) are not

trained to detect or determine, are environmental hazards and soil conditions.

From a physical standpoint, the subject as a whole contains approximately 4.94 acres fronting

the north side of W. Lamar Alexander Parkway, east side of Cates Street and west side of Tedford

Avenue within the city limits of Maryville. Land area is considered ample for a variety of commercial

and/or office uses.

Financially Feasible

Considering the location of the property in Maryville an office, retail or multi-family use would

be feasible. Other allowed uses would not generate the same level of return to the site and are not

considered.

From a feasibility standpoint, the immediate area offers primarily office related facilities to

include attorney’s office, realty office, title agency, etc. Considering the legal and physical characteristics,

multi-use development to include office, retail and/or multi-family would fit well on the site.

Maximally Productive

The maximally productive use for this property would be for office use aligning with surrounding

development.

Likely Purchaser

The likely purchaser for this site is an owner/user who intends to build and operate a property.


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HIGHEST AND BEST USE – CONTINUED

As Improved

Two major questions must be answered through this analysis. When the value of land, as

though vacant, exceeds the value of the land and building together, the building should be razed. Should

the building be retained or demolished? If the structure is retained, is it economically viable to remodel,

alter in size, renovate, repair or convert to an alternate use?

Legally Permissible

Questions considered here include the legal possibility of enlarging the building as well as any

historic or other designation that precludes demolition.

From a legal standpoint, the existing use conforms to the zoning regulation and reasonably

represents highest and best use.

Physically Possible

Items to consider here include:

Is the site large enough and is the existing building appropriately positioned to enlarge

the building?

Should the building be demolished, renovated, repaired or converted to another use?

From a physical standpoint, the improvements have been well maintained and are considered to

offer ample remaining economic life.

Financially Feasible

Relevant questions include:

Is it financially feasible to expand or alter the structure or convert to another use?

From a feasibility standpoint, the office and residential buildings offer a good location and

construction amenities suitable for its market. Based on the valuation methods herein, the underlying

land tract as a whole is slightly lower than the summation of the individual tracts appraised with their

current improvements and/or land value. This would suggest the existing improvements may continue

on an interim basis with redevelopment potential of the site as a whole or part.

Maximally Productive

The maximally productive use for this site is for continued use on an interim basis awaiting

potential new development or reuse of the property as a whole.


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EXPOSURE TIME

Reasonable exposure time is one of a series of conditions in most market value definitions.

Exposure time is always presumed to proceed the effective date of the appraisal.

Exposure time may be defined as follows; the estimated length of time the property interest

being appraised would have been offered on the market prior to the hypothetical consummation of a

sale at market value on the effective date of the appraisal; a retrospective opinion based upon an analysis

of past events assuming a competitive and open market.

Exposure time is different for various types of real estate and under various market conditions.

It is noted that the overall concept of reasonable exposure encompasses not only adequate, sufficient,

and reasonable time but also adequate, sufficient and reasonable effort.

The opinion of the time period for reasonable exposure is not intended to be a prediction of a

date of sale or a one line statement. Instead, it is an integral part of the analysis conducted during the

appraisal assignment. The opinion is based on one or more of the following:

Statistical information about days on market;

Information gathered through sales verification; and

Interviews of market participants.

Exposure

Considering the site’s location, zoning and physical attributes, a reasonable exposure time for

the subject property is twelve to eighteen months individually and twenty-four to thirty-six as a whole.

Marketing

Based on our analysis of transfers and/or listings of similar property types, marketing time is

estimated at twelve to eighteen months individually and twenty-four to thirty-six as a whole, if priced

competitively.


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DESCRIPTION OF THE APPRAISAL PROCESS

An appraisal is an opinion of value. Value estimated is dependent upon the specific definition of

value. In this case, the value estimated is Market Value or most probable selling price.

The appraisal process is an organized format utilized to estimate and test for value.

Traditionally there have been three approaches for value estimation. All three approaches are not

necessarily applicable to every property or appraisal assignment.

The three traditional approaches are Cost, Sales Comparison, and Income.

The Cost Approach is predicated on the establishment of replacement cost from which is

deducted an allowance for depreciation to which is added the estimated value of the land.

The Cost Approach is the most applicable for a new, or relatively new, building where the

design and function tend to represent the highest and best use of the structure and estimation of

depreciation is not difficult.

The principle of substitution is closely aligned with the Cost Approach. The principle of

substitution holds that a potential purchaser would not pay in excess of the cost to recreate the subject

property with proper allowances being made for age, condition and depreciation.

The Sales Comparison Approach is a direct comparison technique in which the property being

appraised is compared to other properties which have sold and possess reasonably similar physical

characteristics. The Sales Comparison Approach is a very good method for estimation of probable sale

price in situations where applicable and adequate data is available for comparison purposes.

The Income Approach is predicated on the establishment of probable net income from rental of

the property. The net income is then analyzed by some method of capitalization to indicate reasonable

value based on the property's ability to generate net income to the purchaser.

After considering the validity of the developed approaches, the appraiser concludes a probable

sale price for the subject property.


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SALES COMPARISON APPROACH

The Appraisal Institute defines sales comparison approach as:

The process of deriving a value indication for the subject property by comparing market

information for similar properties with the property being appraised, identifying

appropriate units of comparison, and making qualitative comparisons with or

quantitative adjustments to the sale prices (or unit prices, as appropriate) of the

comparable properties based on relevant, market-derived elements of comparison.11

The following properties are utilized as broad indicators of the subject's probable sale price for

the underlying land area of approximately 4.94 acres.

COMPARABLE LAND SALES SUMMARY TABLE

No. Location Sale

Date

Price Size in

Acres

Price/ Acre

1. 527 W Broadway Ave 12/21/2012 $595,000 1.04 $572,115

2. 610 Washington Street 12/30/2016 $1,250,000 1.25 $1,000,000

3. E. Broadway Avenue 09/25/2015 $650,000 1.64 $396,583

4. Hwy 321 at Chantilly Lane 09/05/2013 $1,305,000 2.34 $557,692

5. 3203 Alcoa Hwy 09/02/2014 $910,000 2.66 $342,105

6. 945 McCammon Avenue 03/02/2017 $2,633,470 9.55 $275,756



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SALES COMPARISON APPROACH – CONTINUED

Land Sale No. 1

Property Identification

Record ID 6406

Property Type Acreage, Commercial

Property Name Dead-End BBQ Site

Address 527 W Broadway Ave, Maryville, Blount County, Tennessee

Tax ID 057K E 020

Sale Data

Grantor McNutt Family

Grantee Nutt Properties LLC

Sale Date December 21, 2012

Deed Book/Page 2344/214

Property Rights Fee Simple

Marketing Time 654 Days

Sale Price $475,000

Upward Adjustment $120,000 Demo & Site Prep

Adjusted Price $595,000

Land Data

Zoning II-Business and Transportation

Topography Level

Utilities All available

Shape Triangular


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Land Sale No. 1 (Cont.)

Land Size Information

Gross Land Size 1.040 Acres or 45,302 SF

Indicators

Sale Price/Gross Acre $572,115 Adjusted

Sale Price/Gross SF $13.13 Adjusted

Remarks

Represents the corner site at Broadway and Hwy 321 near downtown Maryville. The site was

purchased for the development of Dead-End BBQ slated to open in 2014, and required

additional demolition and site prep of $120,000 per the developer. The one acre site offers

ingress/egress from both primary roadways with an estimated traffic count of 40,000 cars per

day.


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Land Sale No. 2


Record ID 7111

Property Type Commercial

Property Name Acreage

Address 610 Washington Street, Maryville, Blount County, Tennessee

37804

Tax ID Map 058A/G/Parcels 004, 013, 014, 015 and 016

Sale Data

Grantor Waters and Rickman

Grantee LeConte Development, LLC

Sale Date December 30, 2016

Deed Book/Page 2470/1553-2471/1410

Property Rights Fee simple

Sale Price $1,200,000

Cash Equivalent $1,200,000

Upward Adjustment $50,000 Remove structures

Adjusted Price $1,250,000

Land Data

Zoning WSCC, Washington Street Commercial District

Topography Level

Utilities All public available

Shape Irregular

Flood Info None


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Indicators

Sale Price/Gross Acre $1,000,000 Adjusted


Remarks

Sale of (5) contiguous parcels along the east side of S. Washington Street, south side of Lamar

Street and north side of Jones Avenue within the city limits of Maryville. The combined site

area is approximately 1.25 acres with approximately 345 feet of frontage along S. Washington

Street. The site is just north of the S. Washington Street/E. Lamar Alexander intersection and

offers an excellent location with a 2016 annual average daily traffic count at 21,542 according to

the TDOT. The sale price is a combined sale of two transactions with one being 618 S.

Washington Street (office and 0.25 acres) for $350,000 and 610 S. Washington Street (funeral

home/house and 1.00 acres) for $85,000. An estimate of $50,000 is allocated for razing the

structures. The new owners have plans for commercial re-development of the site.


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Land Sale No. 3


Record ID 6790


Property Name Commercial Land

Address E. Broadway Avenue, Maryville, Blount County, Tennessee

Tax ID Map 37C/A/009 & 010.17

Sale Data

Grantor Victor Kampas, et ux

Grantee Alcoa Tenn Federal Credit Union

Sale Date September 25, 2015



Sale Price $650,000

Cash Equivalent $650,000

Land Data

Zoning E, General Business

Topography Level


Shape Irregular



Front Footage 293 ft E. Broadway; 213 ft Druid Hill Drive;


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Indicators

Sale Price/Gross Acre $396,583

Sale Price/Gross SF $9.10

Remarks

Represents the conveyance of two adjoining commercial parcels at the intersection of E.

Broadway Avenue and Druid Hill Drive in Maryville. The property offers a total of

approximately 1.64 acres with all public utilities available and is approximately 8/10 mile west of

Pellissippi Parkway. The property was listed at $699,000, reduced to $675,000 before selling at

$650,000.


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Land Sale No. 4


Record ID 6482


Property Name Walgreen's Site

Address Hwy 321 at Chantilly Lane, Maryville, Blount County,

Tennessee

Tax ID 058B C 002, 003, 004, & part of 010

Sale Data

Grantor Various Parties

Grantee M & M Southern Highlands Partnership




Upward Adjustment $75,000 Demo existing bldgs

Adjusted Price $1,305,000

Land Data

Zoning 2, Business & Transportation

Topography Gently rolling


Shape Rectangular



Front Footage 400 ft Highway 321; 250 ft Chantilly Lane;


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Indicators



Remarks

Represents the sale of an assemblage of 2.34 acres located along Highway 321 at Chantilly Lane

in Maryville, TN. The property was purchased for the development of a Walgreen's store, and

included a church building and three residential structures which were demolished subsequent

to the sale. Demolition costs were estimated at $75,000.


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Land Sale No. 5


Record ID 6622


Property Name 3 Minute Magic of Alcoa

Address 3203 Alcoa Hwy, Alcoa, Blount County, Tennessee

Tax ID 017 085.02

Sale Data

Grantor Cowan Rogers

Grantee 3 Minute Magic of Alcoa LLC





Downward Adjustment $840,000 Shell buildings

Adjusted Price $910,000

Land Data

Zoning E, General Business

Topography Level



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Indicators



Remarks

Represents the sale of a the former Rogers Cadillac dealership. The purchaser stripped the main

dealership building to the metal beams and repurposed it as his signature 3 Minute Magic car

wash. The owner pioneered the tunnel car wash in the late 90's. The rear body shop building

will be repurposed as well. $30.00 per square foot was applied to give consideration to the shell

value.


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LAND SALES LOCATION MAP


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Summary

No. Location Sale

Date

Price Size in

Acres

Price/ Acre

1. 527 W Broadway Ave 12/21/2012 $595,000 1.04 $572,115

2. 610 Washington Street 12/30/2016 $1,250,000 1.25 $1,000,000

3. E. Broadway Avenue 09/25/2015 $650,000 1.64 $396,583

4. Hwy 321 at Chantilly Lane 09/05/2013 $1,305,000 2.34 $557,692

5. 3203 Alcoa Hwy 09/02/2014 $910,000 2.66 $342,105

6. 945 McCammon Avenue 03/02/2017 $2,633,470 9.55 $275,756

Recent similar sized tracts in the Maryville market were very limited. The sales utilized are

within the Blount County market and indicate an unadjusted value range from $342,105 to $1,000,000

per acre. The grouping brackets the subject in terms of size, running from 1.04 to 9.55 acres.

Land Sale No. 1 is a nearby sale which is older in relation to date of sale and smaller in size.

Sale 1 offers a similar location along Lamar Alexander Parkway and Broadway. Sale 1 is considered

superior in relation to size but inferior in terms of date of sale. Overall, Sale 1 is considered superior

primarily due to size difference.

Land Sale No. 2 is transfer of combined tracts along the north side of Washington Street

within the city limits of Maryville in close proximity . Sale 2 offers a similar average daily traffic count

but is considered superior in relation to size (smaller) and zoning. Overall, Sale 2 is considered

superior.

Land Sale No. 3 is the 2015 transfer of a smaller site along the east side of E. Broadway and

south side of Druid Hill Road in Maryville. Sale 4 is considered superior in relation to size (smaller) but

inferior in comparison to location. Overall, Sale 4 is considered inferior.


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Land Sale No. 4 is transfer of three combined parcels offering approximately 2.34 acres along

the south side of Highway 321 and west side of Chantilly Lane within the city of Maryville. Sale 5 is

superior in relation to size and slightly superior in comparison to location. Sale 3 is considered inferior

in terms of date of sale. Overall, Sale 5 is considered superior.

Land Sale No. 5 represents the 2014 sale of a 2.66 acre site along Alcoa Highway in Blount

County. Sale 6 is considered superior in relation to size but inferior in relation to date of sale and

location. Overall, Sale 6 is considered inferior.

Land Sale No. 6 is the recent sale of a somewhat larger site along McCammon Avenue in

Maryville. Sale 6 is superior in relation to zoning but is somewhat inferior in comparison to size (larger).

Overall, Sale 6 is inferior to the subject.

Based on these sales, the subject is bracketed between Sale 6 ($275,756Acre) and Sale 4

($557,692/Acre). Considering this range, a reasonable per acre value for the subject is supported at

$425,000 per acre. Value is calculated as follows:

4.94 Acres @ $450,000/Acre = $2,223,000 or $2,200,000 (Rounded)

Land Value Conclusion

Based on the above data, value for the 4.94 acres is concluded at $2,200,000.


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The following properties are utilized as broad indicators of the subject's probable sale price for

the improved properties on an individual basis.

SUMMARY TABLE OF IMPROVED SALES

No. Location Sale Date Price Building

Size (SF)

Price/

SF

1. 116 Chantilly Lane 11/15/2012 $316,000 4,443 $71.12

2. 604 Crawford Street 01/17/2013 $250,000 3,132 $79.82

3. 517 Crawford Street 02/14/2013 $179,900 1,517 $118.59

4. 1104 W Broadway Avenue 08/15/2013 $248,000 2,480 $100.00

5. 503 Lamar Street 09/29/2016 $310,000 3,785 $81.90

6. 208 West Harper Avenue 05/30/2017 $465,000 5,082 $91.50

7. 616 W. Lamar Alexander Parkway 06/28/2017 $600,000 3,000 $200.00

LISTINGS

1. 1010 W. Broadway Avenue 09/18/2017 $219,900 1,558 $141.14

2. 905 E. Broadway Avenue 09/18/2017 $174,900 1,200 $145.75


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Improved Sale No. 1


Record ID 3710

Property Type Office, Office

Property Name Office Building

Address 116 Chantilly Lane, Maryville, Blount County, Tennessee

Location Off Hwy 321 at Browns Creek

Tax ID 058C C 002.01

Sale Data

Grantor Pittenger and Heiny

Grantee Charles Hicks

Sale Date November 15, 2012



Marketing Time 323

Sale Price $316,000

Land Data

Land Size 1.000 Acres or 43,560 SF

Zoning BT, Business and Transportation District

Topography Level


General Physical Data

Building Type Single Tenant


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Improved Sale No. 1 (Cont.)

Gross SF 4,443

Construction Type Frame

Roof Type Shingle

Stories One

Year Built 1987

Condition Average

Indicators


Floor Area Ratio 0.10

Land to Building Ratio 9.8:1

Remarks

Represents the sale of a 4,443 square foot office building off Hwy 321 in Maryville. The property

was operated as a Good Samaritan Health Clinic but sold for general office use to an end-user.


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Improved Sale No. 2


Record ID 3771



Address 604 Crawford Street, Maryville, Blount County, Tennessee

Tax ID 058A G 001.00

Sale Data

Grantor Realty First Inc.

Grantee Kristen Miles Drew

Sale Date January 17, 2013



Sale Price $250,000

Land Data


Topography Level

Utilities All Available

Shape Rectangular

Flood Info Not prone



Gross SF 3,132

Construction Type Wood frame


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Roof Type Asphalt shingle

Foundation Perimeter footings

Electrical Adequate

HVAC Central

Stories Two

Year Built 1900

Condition Average

Indicators




Remarks

Represents the sale of a two-story commercial office building located near the Central Business

District in Maryville, TN. The property was renovated in 2003 and sold for $250,000 in January

2013.


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Improved Sale No. 3


Record ID 3754



Address 517 Crawford Street, Maryville, Blount County, Tennessee

Tax ID 058A H 031.00

Sale Data

Grantor Realty First Inc.

Grantee Friends of Tennessee Babies with Special Needs

Sale Date February 14, 2013



Conditions of Sale Arm's Length Transaction

Financing Cash to Seller

Sale Price $179,900

Land Data



Shape Irregular



Gross SF 1,517

Year Built 1940


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Indicators




Remarks

Represents the sale of a small converted house to office near downtown Maryville, TN. The

building features an unfinished basement. The property sold for $179,900.


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Improved Sale No. 4


Record ID 3971


Property Name Converted House

Address 1104 W Broadway Avenue, Maryville, Blount County,

Tennessee

Tax ID 057L B 007.00

Sale Data

Grantor Donald T. Bright & Candy C. Bright

Grantee Beyond Media, LLC

Sale Date August 15, 2013



Financing Cash to Seller

Verification Other sources: Public records; CRS

Sale Price $248,000

Land Data


Topography Gently rolling


Shape Rectangular

Flood Info Not prone




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Gross SF 2,480

Construction Type Wood frame/Brick

Roof Type Asphalt shingle

Foundation Concrete footings

Electrical Adequate

HVAC Central

Stories Two

Year Built 1910

Condition Average

Indicators




Remarks

Represents the sale of a converted house to commercial office/retail building located off West

Broadway Avenue at the corner of S Ruth Street in Maryville, TN. The property has undergone

renovations for its conversion to commercial use. The property sold for $248,000 in August

2013.


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Improved Sale No. 5


Record ID 4459


Property Name Office

Address 503 Lamar Street, Maryville, Blount County, Tennessee 37804

Tax ID 058A/H/030.00

Sale Data

Grantor Laura Puptnam Hasson

Grantee Maryville Partners




Sale Price $310,000


Land Data


Zoning Washington Street Commercial District

Topography Level


Shape Rectangular



SF 3,785


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Roof Type Gable

Foundation Perimeter concrete

Electrical Adequate

HVAC Central

Stories One

Year Built 1960

Condition Average

Indicators

Sale Price/ SF $81.90

Remarks

Sale of an office property at 503 Lamar Street near the central business district of Maryville.

The improvement offers approximately 3,785 square feet of finished area with approximately

3,049 square feet on the main level and approximately 736 square feet of basement area. The

exterior was painted in 2014 along with new water supply lines and parking lot renovations.

The property offers approximately (16) marked parking spaces.


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Improved Sale No. 6


Record ID 4575


Property Name LeConte Office Building

Address 208 West Harper Avenue, Maryville, Blount County,

Tennessee 37801

Tax ID 057D D 011.01

Sale Data

Grantor Shana M Williams

Grantee LeConte Land Development LLC & MA Stone Properties, LLC

Closing Date June 12, 2017

Contract Price $465,000

Land Data


Zoning Central Business District


Indicators




Remarks

Represents the sale of a 5,082 SF two story office building. The first floor contains two separate

office. The first office is 1,500 SF and the second office is 800 SF. There is a common area

restroom area that is 94 SF. The second floor consists of a single office containing 2,688 SF.


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Improved Sale No. 7


Record ID 4597



Address 616 W. Lamar Alexander Parkway, Maryville, Blount County,

Tennessee 37801

Tax ID 057E/L/004.00

Sale Data

Grantor Reginald Brent Harbin

Grantee Mary MOB, LLC

Sale Date June 28, 2017



Sale Price $600,000


Land Data

Front Footage 126 ft W. Lamar Alexander;

Zoning Business and Transportation/Central

Topography Level to rolling


Shape Irregular



SF 3,000


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Construction Type Masonry

Roof Type Gable

Foundation Concrete slab

Electrical Adequate

Stories One

Year Built 1994

Condition Good

Indicators


Remarks

Transfer of a medical office property along the south side of W. Lamar Alexander Parkway just

west of Houston Street within the city limits of Maryville. The improvement offers

approximately 3,000 square feet of finished area and is situated on 1.259 acres. The

improvement was in good condition and offers good visibility. A portion of the rear along

North Cedar Street and Broyles Avenue is zoned Central Community.


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Improved Listing No. 1


Record ID 4611

Property Type Office, Mobile Home Park


Address 1010 W. Broadway Avenue, Maryville, Blount County,

Tennessee 37801

Tax ID 057L/B/011.00

Sale Data

Grantor Chip E. Webb

Survey Date September 18, 2017


Listing Price $219,900


Land Data

Zoning Office

Topography Level


Shape Irregular



SF 1,558



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Improved Listing No. 1 (Cont.)

Roof Type Gable


Electrical Adequate

HVAC Central

Stories One

Year Built 1925

Condition Average/fair

Indicators


Remarks

Listing of office property along the south side of W. Broadway Avenue just west of S. Magnolia

Street within the city limits of Maryville. The property has been on the market approximately

396 days and was previously listed at $289,900 before being reduced to $219,900 on December

20, 2016.


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Improved Listing No. 2


Record ID 4612



Address 905 E. Broadway Avenue, Maryville, Blount County, Tennessee

37804

Tax ID 047P/D/028.00

Sale Data

Grantor Larry Morelock

Survey Date September 18, 2017


Listing Price $174,900


Land Data


Zoning Business and Transportation District

Topography Level


Shape Rectangular



SF 1,200


Roof Type Gable/metal


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Improved Listing No. 2 (Cont.)


Electrical Adequate

HVAC Central

Stories One

Year Built 2015

Condition Good

Indicators


Remarks

Newer office property along west side of E. Broadway and north side of Everett Avenue within

the city limits of Maryville. The improvement was constructed in 2015, offers concrete parking

and is currently vacant. The property offers approximately 0.35 acre and features average

quality of construction and has been on the market 1 day.


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IMPROVED SALES LOCATION MAP


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Summary

No. Location Sale Date Price Building

Size (SF)

Price/

SF

1. 116 Chantilly Lane 11/15/2012 $316,000 4,443 $71.12

2. 604 Crawford Street 01/17/2013 $250,000 3,132 $79.82

3. 517 Crawford Street 02/14/2013 $179,900 1,517 $118.59

4. 1104 W Broadway Avenue 08/15/2013 $248,000 2,480 $100.00

5. 503 Lamar Street 09/29/2016 $310,000 3,785 $81.90

6. 208 West Harper Avenue 05/30/2017 $465,000 5,082 $91.50

7. 616 W. Lamar Alexander Parkway 06/28/2017 $600,000 3,000 $200.00

LISTINGS

1. 1010 W. Broadway Avenue 09/18/2017 $219,900 1,558 $141.14

2. 905 E. Broadway Avenue 09/18/2017 $174,900 1,200 $145.75

These seven comparable office sales indicate an unadjusted value range from $71.12 to $200.00

per square foot. These properties lie within 1.2 miles of the subject; with Sale Nos. 2, 3, 5 and 6 being

nearest. The improvements offer improvements from 1,517 to 5,082 square feet. Sales 1 and 2

represent the lower end of the unadjusted range and are somewhat older in relation to date of sale.

Sale 7 is at the upper end of the price per square foot range and is considered superior in relation to

quality of construction and type (medical). Considering the above sales, listings and factors such as

location, quality of construction and condition, the following estimates are applied to each improved

property:

Property # Address Improvemnet Price/SF Total Comments

2 and 3 329 Cates Street 5,451 SF $120 $654,120 Office and rear parking

4 296 Highland Ave. 1,546 SF $115 $177,790 Office

5 298 Highland Ave. 1,193 SFf $110 $131,230 Office/Residnece

6 314 Tedford Ave. 1,740 SF $115 $200,100 Office

7 312 Tedford Ave. 2,448 SF $100 $244,800 Office

8 306 Tedford Ave. 1,218 SF $110 $133,980 Office/Residnece

Total $1,542,020.00

Considering the land sales within the previous section and area smaller land tract sales, the

vacant land tracts of Properties 1, 9 and 10 are estimated as follows:

Property # Address Land Size Price/AC Total

1 Cates Sstreet 1.13 Acres $500,000 $565,000

9 296 Highland Ave. 0.22 Acres $200,000 $45,000

10 298 Highland Ave. 0.24 Acres $200,000 $50,000

Total $660,000.00

Sales Comparison Approach Conclusion

Adding the values estimates, indicated value for the properties using the Sales Comparison

Approach is $2,200,000.


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CONCLUSION

Cost Approach

The Cost Approach was not developed in this report.

Sales Comparison Approach

Data was listed for six land transactions for the underlying land value estimate and seven

improved properties for valuation of the properties on an individual basis. Value using the Sales

Comparison Approach was concluded as follows:



Income Approach

The Income Approach was not developed in this report.

Final Conclusion

Final value is concluded as follows:




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ADDENDA

Title Document(s)


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