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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
201 S Washington Street
Maryville, TN 37804
RE:
David and Martha Black
Various Properties
Cates Street and Tedford Street
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
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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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.
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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ASSUMPTIONS AND LIMITING CONDITIONS
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.
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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ASSUMPTIONS AND LIMITING CONDITIONS
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.
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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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
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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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
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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SUMMARY OF FACTS AND CONCLUSIONS
Property Identification: David and Martha Black
Various Properties
Cates Street and Tedford Street
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
$2,200,000 – Value of Combined Tracts
Income Approach: N/A
Final Conclusion: $2,200,000 - Underlying Land – 4.94 Acres
$2,200,000 – Value of Combined Tracts
Reasonable Exposure Time: Twelve to Eighteen Months - Individually
Twenty-Four to Thirty-Six Months - Whole
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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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
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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SUBJECT PHOTOGRAPHS - CONTINUED
Viewing Southwest Along W. Lamar Alexander Parkway – Property at Right
Viewing North Near Main Office Property
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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SUBJECT PHOTOGRAPHS - CONTINUED
Viewing Property No. 1 – 1.13 Acre Site Along East Side of Cates Street
Property No. 1 – 1.13 Acre Site Along Cate Street
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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SUBJECT PHOTOGRAPHS - CONTINUED
Front and East Side of Main Office – Property No. 2
Rear of Main Office
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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SUBJECT PHOTOGRAPHS - CONTINUED
Main Office and Rear Parking
Interior of Foyer/Lobby Area of Main Office
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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SUBJECT PHOTOGRAPHS - CONTINUED
Waiting Area of Main Office
Conference Room in Main Office
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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SUBJECT PHOTOGRAPHS - CONTINUED
Typical Office – Main Office Building
Open Office Area of Rear of Main Office
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SUBJECT PHOTOGRAPHS - CONTINUED
Kitchen Area of Man Office
Typical Restroom of Main Office
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SUBJECT PHOTOGRAPHS - CONTINUED
Viewing East at Rear Parking for Main Office
Viewing Property No. 4 – Annex “A” Office at 329 Cates Street
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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SUBJECT PHOTOGRAPHS - CONTINUED
Viewing Property No. 5 - 298 Highland Avenue
Viewing Property No. 6 - 314 Tedford Avenue
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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SUBJECT PHOTOGRAPHS - CONTINUED
Viewing Property No. 7 - 312 Tedford Avenue
Viewing Property No. 8 - 306 Tedford Avenue
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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SUBJECT PHOTOGRAPHS - CONTINUED
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
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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SUBJECT PHOTOGRAPHS - CONTINUED
Viewing North Near Property No. 10 – 0.24 Site Along Cates Street
Viewing West Near Rear Parking of Main Office
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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SUBJECT PHOTOGRAPHS - CONTINUED
Viewing North Along Tedford Street – Properties at Right
Viewing East Along Highland Avenue – Property at Right and Left
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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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.
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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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
201 S Washington Street
Maryville, TN 37804
Subject Property: David and Martha Black
Various Properties
Cates Street and Tedford Street
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
5The Dictionary of Real Estate Appraisal, 6th ed., Appraisal Institute, 2015, Chicago, IL
6The Dictionary of Real Estate Appraisal, 6th ed., Appraisal Institute, 2015, Chicago, IL
7The Dictionary of Real Estate Appraisal, 6th ed., Appraisal Institute, 2015, Chicago, IL
8The Dictionary of Real Estate Appraisal, 6th ed., Appraisal Institute, 2015, Chicago, IL
9The Dictionary of Real Estate Appraisal, 6th ed., Appraisal Institute, 2015, Chicago, IL
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LOCATION MAP
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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AERIAL PHOTO
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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AERIAL PHOTO
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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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
Property 4 – Parcel 051.00 – 0.14+- Acre
Property 5 – Parcel 050.00 – 0.13+- Acre
Property 6 – Parcel 052.00 – 0.19+- Acre
Property 7 – Parcel 053.00 – 0.33+- Acre
Property 8 – Parcel 008.01 – 0.20+- Acre
Property 9 – Parcel 007.00 – 0.22+- Acre
Property 10 – Parcel 012.00 – 0.24+- 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
Building Type: Office
Year Built: 1925
Year Renovated: Addition in 2002
Actual Age: 92+- Years
Effective Age: 20 Years
Remaining Economic
Life: 20-30 Years
Foundation: Concrete slab/basement
Total Area (SF): 1,546+- SF
Story/Floor/Level Area (SF)
Main Level 1,546+- SF
Basement (unfinished) 862+- SF
Exterior Description Interior Description
Roof Covering: Fiberglass Shingle Ceiling Finish: Plaster/Drywall
Roof Structure: Gable Wall Finish: Plaster/Drywall
Exterior Siding: Wood Siding Floor Coverings: Hardwood, carpet, tile
Exterior Wall: Frame Millwork/Trim: Wood
Windows: Wood Doors: Solid wood
Doors: Solid Wood HAVC: Central
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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DESCRIPTION OF IMPROVEMENTS - Continued
Property No. 5
General Description
Building Type: Office/Residence
Year Built: 1920
Year Renovated: Unknown
Actual Age: 97+- Years
Effective Age: 20 Years
Remaining Economic
Life: 20-30 Years
Foundation: Concrete slab/basement
Total Area (SF): 1,273+- SF
Story/Floor/Level Area (SF)
Main Level 1,273+- SF
Basement (unfinished) 1,233+- SF
Exterior Description Interior Description
Roof Covering: Fiberglass Shingle Ceiling Finish: Plaster/Drywall
Roof Structure: Gable Wall Finish: Plaster/Drywall
Exterior Siding: Wood/Stone Siding Floor Coverings: Hardwood, laminate wood
Exterior Wall: Frame/Stone Millwork/Trim: Wood
Windows: Wood Doors: Solid wood
Doors: Solid Wood HAVC: Central
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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DESCRIPTION OF IMPROVEMENTS - Continued
Property No. 6
General Description
Building Type: Office
Year Built: 1920
Year Renovated: Unknown
Actual Age: 97+- Years
Effective Age: 20 Years
Remaining Economic
Life: 20-30 Years
Foundation: Concrete slab/basement
Total Area (SF): 1,740+- SF
Story/Floor/Level Area (SF)
Main Level 1,420+- SF
Upper Level 320+- SF
Basement (unfinished) 286+- SF
Exterior Description Interior Description
Roof Covering: Fiberglass Shingle Ceiling Finish: Plaster/Drywall
Roof Structure: Gable Wall Finish: Plaster/Drywall
Exterior Siding: Wood Siding Floor Coverings: Carpet, vinyl tile
Exterior Wall: Frame/Stone Millwork/Trim: Wood
Windows: Wood Doors: Solid wood
Doors: Solid Wood HAVC: Central
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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DESCRIPTION OF IMPROVEMENTS - Continued
Property No. 7
General Description
Building Type: Office
Year Built: 1925
Year Renovated: Unknown
Actual Age: 92+- Years
Effective Age: 20 Years
Remaining Economic
Life: 20-30 Years
Foundation: Concrete slab/basement
Total Area (SF): 1,808+- SF
Story/Floor/Level Area (SF)
Main Level 1,280+- SF
Upper Level 528+- SF
Basement (unfinished) 640+- SF
Exterior Description Interior Description
Roof Covering: Fiberglass Shingle Ceiling Finish: Plaster/Drywall
Roof Structure: Gable Wall Finish: Plaster/Drywall
Exterior Siding: Wood Siding Floor Coverings: Carpet, vinyl tile
Exterior Wall: Frame/Stone Millwork/Trim: Wood
Windows: Wood Doors: Solid wood
Doors: Solid Wood HAVC: Central
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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DESCRIPTION OF IMPROVEMENTS - Continued
Property No. 8
General Description
Building Type: Office
Year Built: 1920
Year Renovated: Unknown
Actual Age: 97+- Years
Effective Age: 20 Years
Remaining Economic
Life: 20-30 Years
Foundation: Concrete slab/basement
Total Area (SF): 1,218+- SF
Story/Floor/Level Area (SF)
Main Level 1,218+- SF
Basement (unfinished) 630+- SF
Exterior Description Interior Description
Roof Covering: Fiberglass 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/Stone Millwork/Trim: Wood
Windows: Wood Doors: Solid wood
Doors: Solid Wood HAVC: Central
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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MARKET DATA – CONTINUED
Population
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MARKET DATA – CONTINUED
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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MARKET DATA – CONTINUED
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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MARKET DATA – CONTINUED
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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MARKET DATA – CONTINUED
Income (cont.)
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MARKET DATA – CONTINUED
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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MARKET DATA – CONTINUED
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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MARKET DATA – CONTINUED
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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MARKET DATA – CONTINUED
Housing (cont.)
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MARKET DATA – CONTINUED
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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MARKET DATA – CONTINUED
Housing (cont.)
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MARKET DATA – CONTINUED
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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MARKET DATA – CONTINUED
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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MARKET DATA – CONTINUED
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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MARKET DATA – CONTINUED
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?
10The Dictionary of Real Estate Appraisal, 6th ed., Appraisal Institute, 2015, Chicago, IL
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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.
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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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.
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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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
11The Dictionary of Real Estate Appraisal, 6th ed., Appraisal Institute, 2015, Chicago, IL
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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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SALES COMPARISON APPROACH – CONTINUED
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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SALES COMPARISON APPROACH – CONTINUED
Land Sale No. 2
Property Identification
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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SALES COMPARISON APPROACH – CONTINUED
Land Sale No. 2 (Cont.)
Land Size Information
Gross Land Size 1.250 Acres or 54,450 SF
Indicators
Sale Price/Gross Acre $1,000,000 Adjusted
Sale Price/Gross SF $22.96 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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SALES COMPARISON APPROACH – CONTINUED
Land Sale No. 3
Property Identification
Record ID 6790
Property Type Acreage, Commercial
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
Deed Book/Page 2428/702
Property Rights Fee simple
Sale Price $650,000
Cash Equivalent $650,000
Land Data
Zoning E, General Business
Topography Level
Utilities All public available
Shape Irregular
Land Size Information
Gross Land Size 1.639 Acres or 71,395 SF
Front Footage 293 ft E. Broadway; 213 ft Druid Hill Drive;
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SALES COMPARISON APPROACH – CONTINUED
Land Sale No. 3 (Cont.)
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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SALES COMPARISON APPROACH – CONTINUED
Land Sale No. 4
Property Identification
Record ID 6482
Property Type Acreage, Commercial
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
Sale Date September 05, 2013
Property Rights Fee Simple
Sale Price $1,230,000
Upward Adjustment $75,000 Demo existing bldgs
Adjusted Price $1,305,000
Land Data
Zoning 2, Business & Transportation
Topography Gently rolling
Utilities All available
Shape Rectangular
Land Size Information
Gross Land Size 2.340 Acres or 101,930 SF
Front Footage 400 ft Highway 321; 250 ft Chantilly Lane;
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SALES COMPARISON APPROACH – CONTINUED
Land Sale No. 4 (Cont.)
Indicators
Sale Price/Gross Acre $557,692 Adjusted
Sale Price/Gross SF $12.80 Adjusted
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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SALES COMPARISON APPROACH – CONTINUED
Land Sale No. 5
Property Identification
Record ID 6622
Property Type Acreage, Commercial
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
Sale Date September 02, 2014
Deed Book/Page 2397/243
Property Rights Fee Simple
Sale Price $1,750,000
Downward Adjustment $840,000 Shell buildings
Adjusted Price $910,000
Land Data
Zoning E, General Business
Topography Level
Utilities All available
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SALES COMPARISON APPROACH – CONTINUED
Land Sale No. 5 (Cont.)
Land Size Information
Gross Land Size 2.660 Acres or 115,870 SF
Indicators
Sale Price/Gross Acre $342,105 Adjusted
Sale Price/Gross SF $7.85 Adjusted
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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SALES COMPARISON APPROACH – CONTINUED
LAND SALES LOCATION MAP
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SALES COMPARISON APPROACH – CONTINUED
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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SALES COMPARISON APPROACH – CONTINUED
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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SALES COMPARISON APPROACH – CONTINUED
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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SALES COMPARISON APPROACH – CONTINUED
Improved Sale No. 1
Property Identification
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
Deed Book/Page 2340/145
Property Rights Fee Simple
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
Utilities All available
General Physical Data
Building Type Single Tenant
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SALES COMPARISON APPROACH – CONTINUED
Improved Sale No. 1 (Cont.)
Gross SF 4,443
Construction Type Frame
Roof Type Shingle
Stories One
Year Built 1987
Condition Average
Indicators
Sale Price/Gross SF $71.12
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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SALES COMPARISON APPROACH – CONTINUED
Improved Sale No. 2
Property Identification
Record ID 3771
Property Type Office, Office
Property Name Office Building
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
Deed Book/Page 2346/2462
Property Rights Fee Simple
Sale Price $250,000
Land Data
Land Size 0.510 Acres or 22,216 SF
Topography Level
Utilities All Available
Shape Rectangular
Flood Info Not prone
General Physical Data
Building Type Single Tenant
Gross SF 3,132
Construction Type Wood frame
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SALES COMPARISON APPROACH – CONTINUED
Improved Sale No. 2 (Cont.)
Roof Type Asphalt shingle
Foundation Perimeter footings
Electrical Adequate
HVAC Central
Stories Two
Year Built 1900
Condition Average
Indicators
Sale Price/Gross SF $79.82
Floor Area Ratio 0.14
Land to Building Ratio 7.09:1
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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SALES COMPARISON APPROACH – CONTINUED
Improved Sale No. 3
Property Identification
Record ID 3754
Property Type Office, Office
Property Name Office Building
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
Deed Book/Page 2349/875
Property Rights Fee Simple
Conditions of Sale Arm's Length Transaction
Financing Cash to Seller
Sale Price $179,900
Land Data
Land Size 0.290 Acres or 12,632 SF
Utilities All Available
Shape Irregular
General Physical Data
Building Type Single Tenant
Gross SF 1,517
Year Built 1940
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SALES COMPARISON APPROACH – CONTINUED
Improved Sale No. 3 (Cont.)
Indicators
Sale Price/Gross SF $118.59
Floor Area Ratio 0.12
Land to Building Ratio 8.33:1
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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SALES COMPARISON APPROACH – CONTINUED
Improved Sale No. 4
Property Identification
Record ID 3971
Property Type Office, Office
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
Deed Book/Page 2368/453
Property Rights Fee Simple
Financing Cash to Seller
Verification Other sources: Public records; CRS
Sale Price $248,000
Land Data
Land Size 0.390 Acres or 16,988 SF
Topography Gently rolling
Utilities All available
Shape Rectangular
Flood Info Not prone
General Physical Data
Building Type Single Tenant
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Improved Sale No. 4 (Cont.)
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
Sale Price/Gross SF $100.00
Floor Area Ratio 0.15
Land to Building Ratio 6.85:1
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
Property Identification
Record ID 4459
Property Type Office, Office
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 Date September 29, 2016
Deed Book/Page 2463/125
Property Rights Fee simple
Sale Price $310,000
Cash Equivalent $310,000
Land Data
Land Size 0.290 Acres or 12,632 SF
Zoning Washington Street Commercial District
Topography Level
Utilities All public available
Shape Rectangular
General Physical Data
Building Type Single Tenant
SF 3,785
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Improved Sale No. 5 (Cont.)
Construction Type Frame
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
Property Identification
Record ID 4575
Property Type Office, Office
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
Land Size 0.140 Acres or 6,098 SF
Zoning Central Business District
Utilities All Available
Indicators
Sale Price/Gross SF $91.50
Floor Area Ratio 0.83
Land to Building Ratio 1.2:1
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
Property Identification
Record ID 4597
Property Type Office, Office
Property Name Office
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
Deed Book/Page 2489/171
Property Rights Fee simple
Sale Price $600,000
Cash Equivalent $600,000
Land Data
Front Footage 126 ft W. Lamar Alexander;
Zoning Business and Transportation/Central
Topography Level to rolling
Utilities All public available
Shape Irregular
General Physical Data
Building Type Single Tenant
SF 3,000
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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SALES COMPARISON APPROACH – CONTINUED
Improved Sale No. 7 (Cont.)
Construction Type Masonry
Roof Type Gable
Foundation Concrete slab
Electrical Adequate
Stories One
Year Built 1994
Condition Good
Indicators
Sale Price/ SF $200.00
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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SALES COMPARISON APPROACH – CONTINUED
Improved Listing No. 1
Property Identification
Record ID 4611
Property Type Office, Mobile Home Park
Property Name Office
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
Property Rights Fee simple
Listing Price $219,900
Cash Equivalent $219,900
Land Data
Zoning Office
Topography Level
Utilities All public available
Shape Irregular
General Physical Data
Building Type Single Tenant
SF 1,558
Construction Type Frame
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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SALES COMPARISON APPROACH – CONTINUED
Improved Listing No. 1 (Cont.)
Roof Type Gable
Foundation Concrete slab
Electrical Adequate
HVAC Central
Stories One
Year Built 1925
Condition Average/fair
Indicators
Sale Price/ SF $141.14
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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SALES COMPARISON APPROACH – CONTINUED
Improved Listing No. 2
Property Identification
Record ID 4612
Property Type Office, Office
Property Name Office
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
Property Rights Fee simple
Listing Price $174,900
Cash Equivalent $174,900
Land Data
Land Size 0.350 Acres or 15,246 SF
Zoning Business and Transportation District
Topography Level
Utilities All public available
Shape Rectangular
General Physical Data
Building Type Single Tenant
SF 1,200
Construction Type Frame
Roof Type Gable/metal
David and Martha Black Properties, Cates Street and Tedford Avenue, Maryville, TN 37801
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SALES COMPARISON APPROACH – CONTINUED
Improved Listing No. 2 (Cont.)
Foundation Concrete slab
Electrical Adequate
HVAC Central
Stories One
Year Built 2015
Condition Good
Indicators
Sale Price/ SF $145.75
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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SALES COMPARISON APPROACH – CONTINUED
IMPROVED SALES LOCATION MAP
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SALES COMPARISON APPROACH – CONTINUED
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:
$2,200,000 - Underlying Land – 4.94 Acres
$2,200,000 – Value of Combined Tracts
Income Approach
The Income Approach was not developed in this report.
Final Conclusion
Final value is concluded as follows:
$2,200,000 - Underlying Land – 4.94 Acres
$2,200,000 – Value of Combined Tracts
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ADDENDA
Title Document(s)
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