may 5, 2017 - loopnet...may 1, 2017. the date of this appraisal report is may 5, 2017. property tax....
TRANSCRIPT
May 5, 2017
Mr. Val Longoria Oak Valley Commercial Lending Via E-Mail: [email protected]
RE: A Restricted Appraisal Report of a 4,850 square foot (NRA) shopping center located at 5808 Cullen Boulevard, Houston, Texas 77021
Dear Mr. Longoria: At your request, we have prepared a restricted appraisal report for the aforementioned property. This report is limited to client use only, and the appraiser’s opinions and conclusions set forth in this report cannot be understood properly without additional information contained in our work file. The subject property is more specifically described in the accompanying report. The purpose of this appraisal is to provide an opinion as to the as is market value of the subject property. At the client’s request, the limited rent roll and lease information, and the rental rates being significantly higher than market, we have valued the subject in fee simple estate. All of the necessary data was gathered and analyzed in order to arrive at a value conclusion Based upon our research and analysis of the market, which is provided in the accompanying report, the indicated value of the subject, as of May 1, 2017, is as follows:
As Is Market Value
$660,000.00
1
Purpose of Appraisal. The purpose of this assignment is to provide an opinion of the as is market value of the subject property’s fee simple estate. Market Value Definition. The definition and qualification of market value as prescribed by Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”), adopted under FDIC Rules and Regulations, Part 323 as follows:
"The most probable price 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 specific date and the passing of title from the seller to buyer under conditions whereby:
1. Buyer and seller are typically motivated;
2. Both parties are well informed or well advised, and acting in what they consider their own best interests;
3. A reasonable time is allowed for exposure in the open market;
4. Payment is made in terms of cash in U.S. Dollars or in terms of financial arrangements comparable thereto; and
5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.”
Property Rights Appraised. Fee simple estate is defined by the Dictionary of Real Estate Appraisal, Sixth Edition, page 90, published 2016, by the Appraisal Institute as being:
“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.”
Intended Use of the Appraisal. The intended use for this appraisal report is to assist Oak Valley Commercial Lending in asset valuation for estate planning purposes. Intended User(s) of the Appraisal. The intended user of this report is Oak Valley Commercial Lending. Use of this report by another company or individual is not intended by The Ambrose Group. Scope Of Work. According to The Dictionary of Real Estate Appraisal, Sixth Edition, copyright 2016, by the Appraisal Institute, “scope of work” is defined on page 209 as being:
“The type and extent of research and analysis applied in an assignment.”
2
The scope of work is based upon the purpose of the appraisal and its intended use as previously discussed within this report. The appraisal development process completed by the Ambrose Appraisal Company consisted of the following items:
1. Physically identified and viewed the subject property. We reviewed tax records and a plat map of the property obtained from the Harris County Appraisal District. In addition, we received limited lease agreements from the client. In addition, operating information was not provided by the client.
2. Researched and collected data related to market conditions and market
activity, and considered those characteristics which have a legal, physical, or economic impact on the subject property. The sources of data used within this report included: public records, real estate brokers, property management companies, national real estate market.
3. Determined the Highest and Best use of the subject as vacant and as
improved, based on the data gathered and considering the legally permissible, physical possible, financially feasible, and most profitable use of the property.
4. Analyzed the data gathered through the use of appropriate and acceptable
appraisal methodology in order to develop a value indication from each applicable approach to value.
a. Income Capitalization Approach. Developing this approach to value
involved gathering comparable rental data and estimating expenses from expense comparables. This data has been physically identified by The Ambrose Group. The comparable rentals were compared to the subject and adjusted for the various factors that influence rental rates. An indicated market rental rate was developed bases on the analysis of the cumulative rental data. Capitalization rates were obtained from national surveys and comparable sales data. The value indicated by this approach was derived from the Direct Capitalization Method.
b. Sales Comparison Approach. Developing this approach to value involved the collection of comparable improved sales which have been physically identified by The Ambrose Group. Considering the principle of substitution, the improved sales were compared to the subject and adjusted for the various factors which influence value. An indicated value was developed based on the analysis of the cumulative sales data provided in this report.
c. Cost Approach. Due to the age of the existing improvements and the difficulty in estimating the physical depreciation, the Cost
3
Approach to Value is considered the least reliable indicator of value for the subject property and has not been developed. The omission of this approach to value does not reduce the reliability of the final developed value.
5. Reconciled the results from the applicable approaches to value into reasonable value conclusions.
6. Estimated a reasonable exposure time and market time associated with the developed opinion of value.
The appraisal of the subject property is presented in the form of a Restricted Appraisal Report, and is intended to comply with the reporting requirements set forth under Standards Rule 2-2 of the Uniform Standards of Professional Appraisal Practice. Dates of Valuation and Report. Our opinion of the as is market value is effective as of May 1, 2017. The date of this appraisal report is May 5, 2017. Property Tax. The subject property is assessed by the Harris County Appraisal District under account numbers 058-173-000-0004, 058-173-000-0005, and 058-173-000-0003. The 2017 preliminary assessed value for the subject is $242,718.00, of which $46,330.00 is attributed to the land and $196,388.00 is attributed to the improvements. The subject is located in the tax districts of the Houston Independent School District, Harris County, Houston Community College, City of Houston, and Greater Southeast Management District. Based upon information obtained from the Harris Country Tax Office, there are no delinquent taxes owed on the subject. Property History. According to the information provided, Sandra Falconer has owned the subject in excess of three years. The subject property is currently being leased by four tenants with rental rates ranging from $22.19 to $32.00 per square foot, with an weighted average of $25.79 per square foot on a gross basis. In addition, the subject property is receiving an additional $3,200.00 per month on a gross basis from a food truck located on the property. According to our analysis the rental rates are significantly above market. As previously mentioned we were provided incomplete and unsigned lease agreements. At the client’s request, the limited rent roll and lease information, and the rental rates being significantly higher than market, we have valued the subject in fee simple estate and applied a market rental rate. No other property history information was provided. Description of Subject Property. The subject site may be legally described as 0.24 acre (13,500 square feet) of land being Tracts 3, 4, and 5, Block 1, Belmont, Section 1, Houston, Harris County, Texas. The subject is located along the northwest line of Cullen Boulevard, southwest of Griggs Road. The subject has approximately 150 lineal feet of frontage and access along Cullen Boulevard, with a maximum depth of approximately 90 lineal feet. The physical address of the subject is 5808 Cullen Boulevard, Houston, Texas 77021. The subject appeared level and well drained at the visit of the site. In
4
addition, there were no soil or subsoil conditions which would restrict development, as evidenced by nearby improvements. We have examined the available flood maps that are provided by the Federal Emergency Management Agency and have noted that the subject site is located outside an identified Special Flood Hazard Area. According to Insurance Map, Panel Number 48201C0880M, it appears that the subject tract is located in Zone X, an area outside the 500-year flood plain (see Addenda for map). However, we are not surveyors, and we make no guarantee regarding this determination. The subject has standard utility easements. According to Harris County Appraisal District, Tract 5 of the subject property contains a drainage easement running from east to west. However, these easements are not believed to impact the overall development of the entire property. The subject is located within the City of Houston, which does not subscribe to zoning. There are no other significant legal constraints that would restrict development of the subject property. Thus, the subject’s current use as a medical office building is a legally permissible use. Improvement Analysis. The subject property is improved with a 4,850 square foot (NRA) shopping center. The building is constructed on a concrete slab foundation with steel framing; concrete block exterior walls, and a flat membrane roof. The interior contains: vinyl tile, sealed concrete, and carpet flooring; wood panel and gypsum board walls; acoustical tile ceilings; fluorescent lighting; and central air conditioning and heating. It should be noted that each unit contains a restroom. The subject property contain certain items that are furniture, fixtures and equipment which is considered personal property and are not valued in this report. Other improvements include: asphalt paving and parking, exterior lighting, security cameras, and landscaping. The subject has a land-to-building ratio of 2.78:1, which is considered adequate. The subject property was constructed in 1960 and is considered to be in average condition and functional in design. The Marshall and Swift Valuation Service is a nationally recognized cost-estimating service which publishes surveys indicating the normal useful life of various types of improvements. These surveys are based upon detailed studies of actual mortality, conditions, and typical ages at which major renovation or change in occupancy occur. The typical life expectancy for the subject property is approximately 40 years. The 40-year life expectancy estimate is further supported by analysis of typical improvement age tendencies throughout the Southwestern United States. The subject has an effective age of 25 years, with a remaining economic life of 15 years. Highest and Best Use. The highest and best use of the subject property, as vacant, is for commercial use. The highest and best use of the subject property as improved is for a continuation of existing use. The most probable buyer is an investor.
5
INCOME CAPITALIZATION APPROACH The Income Capitalization Approach to Value consists of methods, techniques, and mathematical procedures that an appraiser uses to analyze a property’s capacity to generate benefits and convert these benefits into an indication of present value. The Income Capitalization Approach includes the principles of anticipation and change as well as supply and demand. Following is a brief discussion of each principle as it relates to this approach. Anticipation and Change. Since value is created by expectation of future benefits, this principle is especially applicable to this approach. According to The Appraisal of Real Estate, Fourteenth Edition, by the Appraisal Institute, page 440:
“All income capitalization methods, techniques, and procedures forecast anticipated future benefits and estimate their present value. This may involve forecasting the anticipated future income from a property or estimating a capitalization rate that implicitly reflects the anticipated pattern of change in income over time.” “The capitalization process must reflect the possibility that actual future income, expenses, and property value may differ from those originally anticipated by an investor on the date of appraisal. The more uncertainty there is concerning the future levels of these variables, the riskier the investment. Investors expect to earn a higher rate of return on riskier investments. This should be reflected in the discount capitalization rates obtained from market research.”
Supply and Demand. According to The Appraisal of Real Estate, Fourteenth Edition by the Appraisal Institute, page 440:
“The principles of supply and demand and the related concept of competition are particularly useful in forecasting future benefits and estimating rates of return in the income capitalization approach. Both income and rates of return are determined in the market.”
In order to property utilize the Income Capitalization Approach, the appraiser researches rents, occupancies, and operating expenses from competing properties and creates an Operating Statement for the subject. At that point, the appropriate capitalization technique is selected and applied to the subject’s income stream. The discussion on the following pages will demonstrate this procedure as it applies to the subject property. Market Rent. Market rent, as used in this report, is defined by The Appraisal of Real Estate, Fourteenth Edition, by the Appraisal Institute, page 447 as follows:
6
“The rental income that a property would probably command in the open market. It is indicated by the current rents that are either paid or asked for comparable space with the same division of expenses as of the date of the appraisal.”
An investigation of properties similar to the subject was conducted in order to estimate the appropriate market rent for the subject. Some of the most comparable rentals are listed on the following pages.
7
534 FMap Page:
Broker (713-981-6100)Data Source:
Address: 5115-5123 Martin Luther King Jr.Boulevard, Houston, Texas 77021
Year Built: 1960
Actual Vacancy Percent: 83.90%
Parking Area: Adequate
Lease Structure: Gross
Typical Lease Term: 3 t o 5 Years
This property has a quoted rate of $9.71per square foot on a triple net basis with$3.24 per square foot in triple netexpenses. We have added these rates toderive the gross rate for this property.
Comments:Date Confirmed: May 3, 2017
Building Size (NRA): 6,200 Sq. Ft.
Condition/Construction: Average/Brick
COMPARABLE RENT NO. 1
Reimbursable Expenses N/A
Annual Rental Rate: $12.95 per Sq. Ft.
8
533 MMap Page:
Broker (832-431-0181)Data Source:
Address: 4300 Griggs Road, Houston, Texas 77021
Year Built: 1968
Actual Vacancy Percent: 11.00%
Parking Area: Adequate
Lease Structure: Gross
Typical Lease Term: 3 to 5 Years
This represents a signed lease for 2,200square feet that commenced onNovember 2016.
Comments:Date Confirmed: May 3, 2017
Building Size (NRA): 5,600 Sq. Ft.
Condition/Construction: Average/Masonry
COMPARABLE RENT NO. 2
Reimbursable Expenses N/A
Annual Rental Rate: $18.00 per Sq. Ft. (Contract Rental Rate)
9
534 MMap Page:
Bartola Espinoza (713-239-2275)Data Source:
Address: 5205 Telephone Road, Houston, Texas77087
Year Built: 1981
Actual Vacancy Percent: 0.00%
Parking Area: Adequate
Lease Structure: Gross
Typical Lease Term: 3-5 years
This represents a signed lease out of a5,000 square foot building whichcommenced in August 2016 for two years.
Comments:Date Confirmed: February 10, 2017
Building Size (NRA): 1,680 Sq. Ft.
Condition/Construction: Average/Metal & Glass
COMPARABLE RENT NO. 3
Reimbursable Expenses N/A
Annual Rental Rate: $12.50 per Sq. Ft.
10
533 RMap Page:
Broker (713-523-7402)Data Source:
Address: 6913 - 6917 Cullen Boulevard, Houston,Texas 77021
Year Built: 1965 (Renovated in 2013)
Actual Vacancy Percent: 25.00%
Parking Area: Adequate
Lease Structure: Triple Net
Typical Lease Term: 3 Years
This is an in-place rental rate for a leasethat was executed in September 2015.
Comments:Date Confirmed: September 9, 2016
Building Size (NRA): 4,800 Sq. Ft.
Condition/Construction: Average/Concrete Block
COMPARABLE RENT NO. 4
Reimbursable Expenses N/A
Annual Rental Rate: $13.33 per Sq. Ft. (Contract Rental Rate)
11
&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
.................................................
.................................................
Subject
Subject
Subject
Subject
Subject
Subject
Subject
Subject
Subject
Rent 1
Rent 1
Rent 1
Rent 1
Rent 1
Rent 1
Rent 1
Rent 1
Rent 1
Rent 2
Rent 2
Rent 2
Rent 2
Rent 2
Rent 2
Rent 2
Rent 2
Rent 2
Rent 3
Rent 3
Rent 3
Rent 3
Rent 3
Rent 3
Rent 3
Rent 3
Rent 3Rent 4
Rent 4
Rent 4
Rent 4
Rent 4
Rent 4
Rent 4
Rent 4
Rent 4
Garden Villas Elementary Garden Villas Elementary Garden Villas Elementary Garden Villas Elementary Garden Villas Elementary Garden Villas Elementary Garden Villas Elementary Garden Villas Elementary Garden Villas Elementary SchoolSchoolSchoolSchoolSchoolSchoolSchoolSchoolSchool
Southcrest ParkSouthcrest ParkSouthcrest ParkSouthcrest ParkSouthcrest ParkSouthcrest ParkSouthcrest ParkSouthcrest ParkSouthcrest Park
pitalpitalpitalspitalspitalspitalspitalspitalspital Briscoe Elementary SchoolBriscoe Elementary SchoolBriscoe Elementary SchoolBriscoe Elementary SchoolBriscoe Elementary SchoolBriscoe Elementary SchoolBriscoe Elementary SchoolBriscoe Elementary SchoolBriscoe Elementary School
Mason PMason PMason PMason PMason PMason PMason PMason PMason P
Gragg Park ComplexGragg Park ComplexGragg Park ComplexGragg Park ComplexGragg Park ComplexGragg Park ComplexGragg Park ComplexGragg Park ComplexGragg Park Complex
Yates High SchoolYates High SchoolYates High SchoolYates High SchoolYates High SchoolYates High SchoolYates High SchoolYates High SchoolYates High School
University of HoustonUniversity of HoustonUniversity of HoustonUniversity of HoustonUniversity of HoustonUniversity of HoustonUniversity of HoustonUniversity of HoustonUniversity of Houston
KIPP Intrepid Middle KIPP Intrepid Middle KIPP Intrepid Middle KIPP Intrepid Middle KIPP Intrepid Middle KIPP Intrepid Middle KIPP Intrepid Middle KIPP Intrepid Middle KIPP Intrepid Middle SchoolSchoolSchoolSchoolSchoolSchoolSchoolSchoolSchool
Broadmoor-Kretschmar ParkBroadmoor-Kretschmar ParkBroadmoor-Kretschmar ParkBroadmoor-Kretschmar ParkBroadmoor-Kretschmar ParkBroadmoor-Kretschmar ParkBroadmoor-Kretschmar ParkBroadmoor-Kretschmar ParkBroadmoor-Kretschmar Park
ParkParkParkParkParkParkParkParkPark
MacGregor ParkwayMacGregor ParkwayMacGregor ParkwayMacGregor ParkwayMacGregor ParkwayMacGregor ParkwayMacGregor ParkwayMacGregor ParkwayMacGregor Parkway
Hartsfield Elementary Hartsfield Elementary Hartsfield Elementary Hartsfield Elementary Hartsfield Elementary Hartsfield Elementary Hartsfield Elementary Hartsfield Elementary Hartsfield Elementary SchoolSchoolSchoolSchoolSchoolSchoolSchoolSchoolSchool
Mading Elementary SchoolMading Elementary SchoolMading Elementary SchoolMading Elementary SchoolMading Elementary SchoolMading Elementary SchoolMading Elementary SchoolMading Elementary SchoolMading Elementary School
Jones High SchoolJones High SchoolJones High SchoolJones High SchoolJones High SchoolJones High SchoolJones High SchoolJones High SchoolJones High School
Edgewood ParkEdgewood ParkEdgewood ParkEdgewood ParkEdgewood ParkEdgewood ParkEdgewood ParkEdgewood ParkEdgewood Park
Carmel High SchoolCarmel High SchoolCarmel High SchoolCarmel High SchoolCarmel High SchoolCarmel High SchoolCarmel High SchoolCarmel High SchoolCarmel High School
Brookline Elementary Brookline Elementary Brookline Elementary Brookline Elementary Brookline Elementary Brookline Elementary Brookline Elementary Brookline Elementary Brookline Elementary SchoolSchoolSchoolSchoolSchoolSchoolSchoolSchoolSchool
Fonde ParkFonde ParkFonde ParkFonde ParkFonde ParkFonde ParkFonde ParkFonde ParkFonde Park
Andover ParkAndover ParkAndover ParkAndover ParkAndover ParkAndover ParkAndover ParkAndover ParkAndover Park
J. P. Henderson J. P. Henderson J. P. Henderson J. P. Henderson J. P. Henderson J. P. Henderson J. P. Henderson J. P. Henderson J. P. Henderson Elementary SchoolElementary SchoolElementary SchoolElementary SchoolElementary SchoolElementary SchoolElementary SchoolElementary SchoolElementary School
Brookline ParkBrookline ParkBrookline ParkBrookline ParkBrookline ParkBrookline ParkBrookline ParkBrookline ParkBrookline Park
Spurlock ParkSpurlock ParkSpurlock ParkSpurlock ParkSpurlock ParkSpurlock ParkSpurlock ParkSpurlock ParkSpurlock Park
Garden Villas ParkGarden Villas ParkGarden Villas ParkGarden Villas ParkGarden Villas ParkGarden Villas ParkGarden Villas ParkGarden Villas ParkGarden Villas Park
hern Universityhern Universityhern Universitythern Universitythern Universitythern Universitythern Universitythern Universitythern University
Bastian Elementary SchoolBastian Elementary SchoolBastian Elementary SchoolBastian Elementary SchoolBastian Elementary SchoolBastian Elementary SchoolBastian Elementary SchoolBastian Elementary SchoolBastian Elementary School
Carter ParkCarter ParkCarter ParkCarter ParkCarter ParkCarter ParkCarter ParkCarter ParkCarter Park
Carrillo Elementary Carrillo Elementary Carrillo Elementary Carrillo Elementary Carrillo Elementary Carrillo Elementary Carrillo Elementary Carrillo Elementary Carrillo Elementary SchoolSchoolSchoolSchoolSchoolSchoolSchoolSchoolSchool
Forest Park CemeteryForest Park CemeteryForest Park CemeteryForest Park CemeteryForest Park CemeteryForest Park CemeteryForest Park CemeteryForest Park CemeteryForest Park Cemetery
University of Houston University of Houston University of Houston University of Houston University of Houston University of Houston University of Houston University of Houston University of Houston Charter SchoolCharter SchoolCharter SchoolCharter SchoolCharter SchoolCharter SchoolCharter SchoolCharter SchoolCharter School
SouthmSouthmSouthmSouthmSouthmSouthmSouthmSouthmSouthm
Fairchild Elementary Fairchild Elementary Fairchild Elementary Fairchild Elementary Fairchild Elementary Fairchild Elementary Fairchild Elementary Fairchild Elementary Fairchild Elementary SchoolSchoolSchoolSchoolSchoolSchoolSchoolSchoolSchool
Grimes Elementary SchoolGrimes Elementary SchoolGrimes Elementary SchoolGrimes Elementary SchoolGrimes Elementary SchoolGrimes Elementary SchoolGrimes Elementary SchoolGrimes Elementary SchoolGrimes Elementary School
Bricker ParkBricker ParkBricker ParkBricker ParkBricker ParkBricker ParkBricker ParkBricker ParkBricker Park
Cornelius ElementCornelius ElementCornelius ElementCornelius ElementCornelius ElementCornelius ElemenCornelius ElemenCornelius ElemenCornelius ElementSchoolSchoolSchoolSchoolSchoolSchoolSchoolSchoolSchool
SimSimSimSimSimSimSimSimSim
Larkspur St
Thrush Dr
Ridgeway DrNorthridge Dr
Belneath St
Hemlock St
Dixie Dr
sen St
Reed Rd
Jutland Rd
Cr est m
ont S t
Moline StMurphy St
S W
aysi
de D
r
Gulf Fwy
Cullen B
lvdFM
State Highw
ay 35
Beldart St
Balkin St
Wheeler Ave
t
Smal
lwoo
d Ln
Willow Glen Dr
Belarbor St
Crossw
Flamingo Dr
Luce St
Eppes StG
olfc
rest
Blv
d
South Loop E
Midvale Ave
Erby St
Gammage St
Chaffin St
Southridge St
Doolittle Blvd
Noe
l St
University Dr
Beek
man
Rd
Leonard St
Offi
Timmen
Harbrook Dr
Heiser S
t
Edna St
Sunnycrest St
Woo
drid
ge D
r
Bellfort Ave
I-610 W
Sylvania St
t
Gluf Freeway Service Dr
I-45 N
Griggs Rd
E
White Rock St
Flow
ers
St
Fairway Dr
FM-865
hlox St
Park
anish Trl
Long Dr
Gulfgate Mall Rd
Elgin St
Sam
pson
S
mes Rd
Pineway
Blvd
Nas
sau
Rd
Sher
woo
d D
r
Bel
bay
St
Scot
t St
Duane St
Southurst St
Erath St
Hemingway Dr
Joyner St
Max
well L
n
Rosalie St
Bellfort St
Perry St
Chennault Rd
Belcrest St
S 75th St
Si lsb ee S t
Wheeler St
S Loop Service Rd E
San
ta M
aria
St
Fairfield St
Man
c he s
ter S
t
Ro ck fo rd D
r
Dieppe St
Lawndale St
Buford St
Winkler Dr
Cavalier AveKinney St
Lakehurst Dr
Martin Luther King Jr Blvd
Harriet St
Aline S
t
Broa
d St
Redw
oo d St
Sloan St
Plum Creek Trail Ln
Hayw
ood
Dr
Cayton St
St
Sidn
ey S
t
Cosby St
Berry St
Yellowstone Blvd
Arbor St
Southridge Ave
Oak Hill Dr
Ed
rSt
Enyart St
r St
Palm St
Tier
wes
te
Carrolton St
Doulton Dr
Prentiss Dr
Duval St
Kenilwood Dr
Northdale St
Golfway St
Waltrip St
Southbrook Dr
Varsity Ln
El Rancho
Brock St
Sunrise Rd
S Loop Fwy
illo Ave
Culmore Dr
Cof
fee
St
Northdale Ave
Brook Lea St
I-45 S
Fiesta Ln
Southmore Ave
Huey St
Meyer S
t
Gould
StBuelow St
Gren St
N MacGregor Way
Dar
nay
Dr
Hirondel St
Zephyr St
Blodgett St
Slumber Ln
Santiago St
Hull St
South ba
Belmark St
Engl
and
St
ay Cir
Cou
gar P
l
Telephone Rd
St
Dr
Donoho St
Mykaw
a
Plainview St
Cal
houn
Rd
Reveille St
Rubin St
Newberry St
Woodridge Square D
Ki
Palm Ctr
Gul
f Cen
tral D
r
Lee
Susan Ann Ct
Bullfinch St
Kingsway Dr
F
Alta V
ista S
t
edbud St
Vasser St
Kelso StClover Rdg
Gillen St
Brinkley St
Co
Nunn St
Harvest Ln
Malmedy Rd
Wes
low
St
Vena D
r
Idaho St
Tobr
uk L
n
Sunflower St
Schl
umbe
rger
St
US-
90 A
lt W
Her
sche
llwoo
d D
r
Pershing St
Mayfair St
M
Highw
ay 5 Spur
Gr
Lindbergh St
Stillwell St
Briscoe St
Southmont Ave
Lyndhurst Dr
US-
90 A
lt E
Village Way
Browncroft St
Belga rd St
Dreyfus St
Net
tleto
n
Mayfair
Narcissus S
Tipps St
Da
Attu
cks
St
Winfree Dr
Paris
St
Overdale St
Heron Dr
Cayton Ave
Maxwell St
Palm Dr Hood St
Midvale St
TX-5 Spur
Lawndale P
lz
Red
woo
d A
ve
McGrew St
Tooke St
Produce Row
Nal
le S
t
Kirbyvil le S
t
Southgood St
Glenhurst Dr
Van Fleet StSa
Graham Ln
Richwoo
d Rd
Teton St
Osborn St
Hansford Ave
Longmeadow St
Dewberry St
Con
ley
St
Elgi
n C
t
Pitz
lin S
t
Lina S
Aledo St
St
Peca
n St
Anzio Rd
Cherryhill Ave
Vista St
Southseas St
Dee
pwoo
d D
r
Southwind Ave
Har
wel
l Dr
regor Way
Blac
k St
Eskridge St
Glen Rock Dr
Rapido Rd
Newport St
Southmund St
Westdale St
Westover St
Ilex St
Forest
Hill Blvd
Sims Dr
Cav
anau
gh S
t
ess Rd
Thurow St
rkwood Dr
Burwell St
Pershing Blvd
Clo
ver S
t
Wynona St
Aske
w S
tPomander R
d
Roe
Dr
Et h
erid
ge S
t
ect St
Ward St
Lond
on S
t
F
Bellfort C
t
Wichita Ave
G
Charleston St
Ledbetter St
Burma Rd
Azalea St
Faculty Ln
Hub
St
Bricker St
Truett St
Edfield St
Sharondale D
r
Tallo
w L
n
Cob
b St
Moss Rose St
Glencoe Ave
Landa Ln
Jean
St
St
J
La Paseo Dr
Grimes St
St
Maggie St
Wichita St
Red
fern
Drt St
Fir S
Pasa
dena
St
Palmetto
Hogue St
Swallow St
Linden St
Mun
ger S
t
Wortham Way
Rustic St
Keystone St
Odin Ct
Pinehurst St
Red Bud St
Southcrest St
Elm S
Broa
dmoo
r St
Can
ada
Dr
Westover Dr
uca St
Entrance 14
Cha
in S
t
Hilda St
La Paseo St
Iron Rock Ave
Bellfort St
Bellfort St
Bellfort St
Bellfort St
Bellfort St
Elgin St
Bellfort St
Culle
n Bl
vdElgin St
Griggs
Rd
Griggs Rd
Griggs Rd
Griggs Rd
S 75th St
Reed Rd
S 75
th S
t
Wheeler St
Lawndale St
555555555
909090909090909090
LOCATION MAPBorrower or Owner: Subject Address: 5808 Cullen Blvd Census Tract: 3136.00City: HoustonLender or Client: Lat: 29.7014 Long: -95.3489
County: Harris State: TX Zip Code: 77021
File No. 170352
Prepared by Ambrose Appraisal using MapPro Service. MapPro Inc., PO Box 37427, Houston, TX 77237 1-866-3MAPPRO.
Rent 1: 5115 Martin Luther King Jr Blvd
Rent 2: 4300 Griggs Rd
Rent 3: 5205 Telephone Rd
Rent 4: 6913 Cullen Blvd
0 0.375
Miles
0.75
Copyright 1994-2017, MapPro Inc.
N
CAUTION: The location of property arrows shown on this map are approximate only. Inaccuracies may exist on map such as missing, incorrectly drawn, or incorrectly addressed streets. Please report any such inaccuracy to MapPro, Inc. so that appropriate corrections can be made.
12
Improved Rents Analysis. The preceding rentals are believed to accurately reflect a cross section of the rental market within the immediate vicinity of the subject. This survey is also believed to reflect the properties with which the subject must compete. The following is a summary of the properties surveyed.
Rent Size Quality of Lease Annual RentalNo. NRA/SF Age Condition Construction Structure Rate/SF
1 6,200 1960 Average Brick Gross $12.95
2 5,600 1968 Average Masonry Gross $18.00
3 5,000 1981 Average Metal Gross $12.50
4 4,800 1965, 2013 Average Concrete Block Triple Net $13.33
MIN 4,800 1960 $12.50
MAX 6,200 1981 $18.00
Subj. 4,850 1960 Average Masonry N/A N/A
COMPARABLE RENTAL SUMMARY
When comparing these rents to the subject, factors considered for adjustment include: lease terms, location, size, age/condition, and quality of construction. Your attention is invited to the following Comparable Rental Adjustment Grid, which displays the procedure used to arrive at an adjusted per square foot rental rate for the comparable rentals.
13
RENT 1 2 3 4
ANNUAL RATE/SF $12.95 $18.00 $12.50 $13.33LEASE STRUCTURE 0% 0% 0% 15%
TOTAL ADJUSTMENTS 0% 0% 0% 15%
ADJUSTED PRICE / SF $12.95 $18.00 $12.50 $15.33
LOCATION 0% 0% 0% 0%
SIZE 0% 0% 0% 0%
AGE/CONDITION 0% 0% 0% 0%
QUALITY OF CONSTRUCTION 0% 0% 10% 0%
NET ADJUSTMENTS 0% 0% 10% 0%
FINAL ADJUSTED RATE/SF $12.95 $18.00 $13.75 $15.33
MINIMUM $12.95
MAXIMUM $18.00
MEDIAN $14.54MEAN $15.01
ADJUSTMENT SUMMARY OF COMPARABLE RENTALS
The comparable rentals presented indicate an annual rental rate range of $12.50 to $18.00 per square foot. After adjusting for the factors which influence value, the rentals have an adjusted rental rate range of $12.95 to $18.00 per square foot, with a average of $15.01 per square foot and a mean of $14.54 per square foot. The subject property is currently being leased by four tenants with rental rates ranging from $22.19 to $32.00 per square foot with an weighted average of $25.79 per square foot. According to our analysis the rental rates to be significantly above market. As previously mentioned we were provided incomplete and unsigned lease agreements. At the client’s request, the limited rent roll and lease information, and the rental rates being significantly higher than market, we have valued the subject in fee simple estate. Based upon our analysis, we have estimated a market rental rate for the subject property at $15.00 per square foot on a gross lease basis. Gross Annual Income. This is the amount that the subject would generate if it were completely leased at market rent. The Gross Annual Income, based on the previously described market rent, is appropriate for calculation. In our analysis, the gross annual income computes to $72,750.00 in the Stabilized Operating Statement. In addition, the subject property is receiving an additional $3,200.00 per month from a food truck located on the property. We believe this rate is above market. Based upon conversations with other shopping center owner who lease to food trucks, we have estimated a rate of $500.00 per month or $6,000.00 for the food truck
14
Vacancy and Collection Loss. This figure represents that portion of the subject which would not be rented during the year and is simply percentage of the Gross Annual Income. The subject property is currently 100 percent occupied. In addition, CoStar indicates a current vacancy rate for commercial properties within a 3-mile radius at 3.6 percent. Based on an analysis of the subject and the market as a whole, we believe that a 5.0 percent vacancy rate is appropriate, which was applied in the Stabilized Operating Statement. Effective Annual Income. This figure is simply the amount that the subject will actually generate after reflecting Vacancy and Collection Loss. The effective annual income in the Stabilized Operating Statement is estimated to be $74,813.00. Operating Expenses. These are items necessary to maintain the subject property. Normally they include such items as: ad valorem taxes, property insurance, management, repairs and maintenance, and reserves for replacement. We were not provided any operating history for the subject property. Thus, we have analyzed operating expenses from comparable buildings in the Houston Area. The expense comparables have been retained in our files. Please see the Addenda for more information. Total Expenses. We have estimated the total expenses based on several comparisons and previous experience properties of the subject’s type. The total expenses are estimated to be $18,361.00, or $3.79 per square foot. Net Operating Income. This is the amount of income left after Expenses have been paid, but before Debt Service and Income Taxes. The Net Operating Income for the subject is $56,452.00 in the Stabilized Operating Statement. This figure will be utilized for Direct Capitalization. Further explanation of this procedure follows. Capitalization. This procedure involves converting an estimate of income into an opinion of value via use of an appropriate rate or factor. There are numerous capitalization techniques, and any number of income estimates may be capitalized. For example, appraisers estimate and capitalize Gross Annual Income, Effective Annual Income, Net Annual Income, Cash Flow, and After Tax Cash Flow. There are generally one or two techniques which are most appropriate for the problem at hand which can be derived from the market. Direct Capitalization. This technique utilizes a procedure whereby the net annual income estimate is divided by an overall rate. Net Annual Income. The Operating Statement on the following page demonstrates how the estimate of net annual income was developed.
15
Gross Rental Income
Potential Income 4,850 SF @ $15.00 $72,750
Food Truck $6,000
Total $78,750
Less: Vacancy @ 5% ($3,938)
Effective Gross Income $74,813Less: Expenses PSF Total
Taxes $1.32 $6,416
Insurance $0.50 $2,425
Management @ 3% $0.46 $2,244
Repairs and Maintenance $0.75 $3,638
Utilities $0.50 $2,425
Administration $0.10 $485
Reserves $0.15 $728
Total Expenses $3.79 PSF ($18,361)Net Operating Income $56,452
STABILIZED INCOME AND EXPENSE STATEMENT
The total net operating income of $56,452.00 is believed to be an appropriate Net Operating Income (NOI) to use in our Direct Capitalization Approach and is believed to represent a stabilized income stream, taking into account increasing rents and expenses. Overall Rate. The overall rate is used to convert an estimate of net annual income into an opinion of market value. This rate provides for both return on and of capital. For the purpose of this report, an overall rate of capitalization is estimated from investor surveys as well as overall rates derived from improved sales with similar use. A summary of these sales is shown on the following page.
16
The sales provided indicate overall capitalization rates ranging from 6.24 to 10.04 percent, with an average of 7.89 percent. We have also considered investor expectations through a comparison of rates demanded by investors in the market. The RERC Survey (4th Quarter 2016) shows a range of 6.50 to 10.0 percent, with an average of 8.3 percent for Third-Tier neighborhood/community retail properties in the South Region. Based on the available sales data, the rates published in the Real Estate Report, and the current tenancy of the subject property, we believe an overall rate of 8.50 percent is appropriate to apply to the stabilized net operating income due to the current vacancy level in the market, typical investment criteria of real estate investors, and the location of the subject. An estimate of $56,452.00 represents the net operating income for the subject. This estimate is appropriate to use in our Direct Capitalization Approach and represents a stabilized income stream, taking into account increasing rents and expenses. The as is market value of the subject property via the Direct Capitalization is calculated below. $56,452.00 = $664,138.00 0.085
Rounded, $665,000.00
17
Sales Comparison Approach
The Sales Comparison Approach is one of the three approaches used to derive market value. It is explained in The Appraisal of Real Estate, Fourteenth Edition, by the Appraisal Institute, page 377, as follows:
“The process of deriving a value indication for the subject property by comparing similar properties that have recently sold with the property being appraised, identifying appropriate units of comparison, and making adjustments to the sale prices (or unit prices, as appropriate) of the comparable properties based on relevant, market-derived elements of comparison. The sales comparison approach may be used to value improve properties, vacant land, or land being considered as though vacant when an adequate supply of comparable sales is available.”
The comparative analysis in the Sales Comparison Approach focuses on differences in legal, physical, locational, and economic characteristics of similar properties and the subject property; on differences in the real property rights conveyed, and dates of sale, the motivations of buyers and sellers, and the financing arrangements for each sales transaction which can account for variations in pricing.
Listed on the following pages are several comparable improved sales that are believed to be similar to the subject. Following these sales is an Improved Sales Summary that summarizes the important factors of comparison that will be used in our analysis.
18
Date of Purchase:
488 SMap Page:
Douglas & Mei YeeGrantor:
Lotus Rosada Investment, Inc.Grantee:
File #RP-2016-135694Recording Data:
Tract 2L-2 out of the Joel Wheaton Survey, AbstractNo. 80, Houston, Harris County, Texas
Legal Description:
SHOPPING CENTER SALE NO. 1
April 01, 2016
Name: 14244 Westheimer Road
Address: 14244 Westheimer Road, Houston, Texas 77077
Sales Price: $1,020,000.00
Sales Price Per Sq. Ft.: $154.55
19
Land Size: 0.49 Acre
Cash to SellerFinancing Terms:
Broker (Nolan Nix - 713-397-4260)Data Source:
N/AComments:
Shopping Center Sale No. 1 - Continued
Net Rentable Area (Sq. Ft.): 6,600
Land-to-Building Ratio: 3.25:1
Year Built: 1978
Condition/Construction: Average/Masonry
Gross Annual Income: N/A
Stabilized Vacancy %: N/A
Effective Gross Income: N/A
Operating Expenses: N/A
Net Operating Income: $69,360.00
Overall Capitalization Rate: 6.8 Percent
E.G.I.M.: N/A
Stabilized Operating Information
Parking Area: Open
Actual Vacancy %: 0 Percent
(21,434 Sq. Ft.)
20
Date of Purchase:
414 XMap Page:
PF Plaza Fiesta, LPGrantor:
Orlando Plaza, LLCGrantee:
File#2016198079Recording Data:
Reserve A, Block 1, Plaza Fiesta, Houston, HarrisCounty, Texas
Legal Description:
SHOPPING CENTER SALE NO. 2
May 11, 2016
Name: Plaza Fiesta
Address: 3415 Orlando Street, Houston, Texas 77093
Sales Price: $1,740,000.00
Sales Price Per Sq. Ft.: $150.65
21
Land Size: 0.89 Acre
Cash to SellerFinancing Terms:
Sales ContractData Source:
This is a shopping center that is fully leased to fourtenants including a Family Dollar. This center isshadow anchored by a Fiesta.
Comments:
Shopping Center Sale No. 2 - Continued
Net Rentable Area (Sq. Ft.): 11,550
Land-to-Building Ratio: 3.37:1
Year Built: 2001
Condition/Construction: Good/Metal and Masonry
Gross Annual Income: $229,911.00
Stabilized Vacancy %: <$11,496.00>
Effective Gross Income: $218,415.00
Operating Expenses: $82,706.00
Net Operating Income: $135,709.00 ($11.75 PSF)
Overall Capitalization Rate: 7.8 Percent
E.G.I.M.: 7.97
Stabilized Operating Information
Parking Area: Adequate
Actual Vacancy %: 0 Percent
(38,938 Sq. Ft.)
22
Date of Purchase:
451 GMap Page:
5403 Antoine Drive, LLCGrantor:
Dexter YoonGrantee:
File #RP-2016-250164Recording Data:
Reserve A7, Forest West Subdivision, Section 1,Houston, Harris County, Texas
Legal Description:
SHOPPING CENTER SALE NO. 3
June 13, 2016
Name: Antoine Plaza
Address: 5403 Antoine Drive, Houston, TX 77091
Sales Price: $1,150,000.00
Sales Price Per Sq. Ft.: $140.16
23
Land Size: 0.69 Acre
Cash to SellerFinancing Terms:
Broker (281-627-3291)Data Source:
This property included two buildings including a stripcenter and a stand alone retail building. Theproperty had a total of eight tenants. The financialinformation below reflects market vacancy andreserves for repalcement.
Comments:
Shopping Center Sale No. 3 - Continued
Net Rentable Area (Sq. Ft.): 8,205
Land-to-Building Ratio: 3.68:1
Year Built: 1970 (Renovated in 2000)
Condition/Construction: Average/Masonry & Concrete Block
Gross Annual Income: N/A
Stabilized Vacancy %: N/A
Effective Gross Income: N/A
Operating Expenses: N/A
Net Operating Income: $92,452.00 ($11.27 per Sq. Ft.)
Overall Capitalization Rate: 8.07 Percent
E.G.I.M.: N/A
Stabilized Operating Information
Parking Area: Open/Adequate
Actual Vacancy %: 0 Percent
(30,204 Sq. Ft.)
24
Date of Purchase:
452 DMap Page:
TRDBY, LLCGrantor:
DAngel Eyes Investment, Inc.Grantee:
File# 2016-277581Recording Data:
Reserve "D", Block 1, One Stop Car Wash No. 4,Houston, Harris County, Texas
Legal Description:
SHOPPING CENTER SALE NO. 4
June 28, 2016
Name: Tidwell Cleaners Shopping Center
Address: 239 W. Tidwell Road, Houston, Texas 77022
Sales Price: $800,000.00
Sales Price Per Sq. Ft.: $119.33
25
Land Size: 0.52 Acre
Cash to SellerFinancing Terms:
Seller, (213) 220-2005Data Source:
The tenants included a dry cleaning business and achurch office.
Comments:
Shopping Center Sale No. 4 - Continued
Net Rentable Area (Sq. Ft.): 6,704
Land-to-Building Ratio: 3.41:1
Year Built: 2003
Condition/Construction: Good/Masonry
Gross Annual Income: N/A
Stabilized Vacancy %: N/A
Effective Gross Income: N/A
Operating Expenses: N/A
Net Operating Income: $79,700.00 ($11.89 PSF)
Overall Capitalization Rate: 10.04 Percent
E.G.I.M.: N/A
Stabilized Operating Information
Parking Area: Surface, adequate
Actual Vacancy %: 0 Percent
(22,830 Sq. Ft.)
26
Date of Purchase:
531 EMap Page:
Gino & Elsa CaprileGrantor:
Santa Maria Property, LLCGrantee:
File #RP-2016-567798Recording Data:
Reserve "A", Block 1, Santa Marie Plaza, Houston,Harris County, Texas
Legal Description:
SHOPPING CENTER SALE NO. 5
December 20, 2016
Name: Santa Marie Plaza
Address: 6112 Bellaire Boulevard, Houston, Texas 77081
Sales Price: $1,250,000.00
Sales Price Per Sq. Ft.: $156.25
27
Land Size: 1.08 Acres
Cash to SellerFinancing Terms:
BrokerData Source:
N/AComments:
Shopping Center Sale No. 5 - Continued
Net Rentable Area (Sq. Ft.): 8,000
Land-to-Building Ratio: 5.88:1
Year Built: 1999 (Remodeled 2016)
Condition/Construction: Good/Masonry
Gross Annual Income: N/A
Stabilized Vacancy %: N/A
Effective Gross Income: N/A
Operating Expenses: N/A
Net Operating Income: $78,000.00 ($9.75 PSF)
Overall Capitalization Rate: 6.24 Percent
E.G.I.M.: N/A
Stabilized Operating Information
Parking Area: Adequate
Actual Vacancy %: 0 Percent
(47,045 Sq. Ft.)
28
Date of Purchase:
451 QMap Page:
JHL Commercial Properties, LLCGrantor:
Summer Bay Properties, LLCGrantee:
File #2017-114522Recording Data:
Tracts 69, 69B and 69C, Block 1, EconomySuburban Gardens, Section 2 U/R, J . FlowersSurvey, Abstract 269, Harris County, Texas
Legal Description:
SHOPPING CENTER SALE NO. 6
March 17, 2017
Name: Antoine Commercial Park
Address: 2910 Antoine Drive, Houston, Texas 77092
Sales Price: $2,100,000.00
Sales Price Per Sq. Ft.: $114.38
29
Land Size: 1.69 Acres
Cash to SellerFinancing Terms:
Purchase Contract Retained in Appraiser FilesData Source:
The financial information below reflects a 5 percentmarket vacancy and reserves for replacement.
Comments:
Shopping Center Sale No. 6 - Continued
Net Rentable Area (Sq. Ft.): 18,360
Land-to-Building Ratio: 4.02:1
Year Built: 2003
Condition/Construction: Good/Masonry
Gross Annual Income: $194,430.00
Stabilized Vacancy %: 5.0 Percent
Effective Gross Income: $281,890.00
Operating Expenses: $91,132.00 ($4.96 per square foot)
Net Operating Income: $176,664.00 ($9.62 per square foot)
Overall Capitalization Rate: 8.41 Percent
E.G.I.M.: 7.45
Stabilized Operating Information
Parking Area: Adequate
Actual Vacancy %: 0 Percent
(73,825 Sq. Ft.)
30
5/4/2017 LoopNet - 6328 Martin Luther King Blvd, Strip Center, Houston, TX
http://www.loopnet.com/xNet/MainSite/Listing/Profile/PrintProfile.aspx?LID=20117592&ShowAudit=false 1/4
Womack Development & Investment Realtors Gerald Womack — (713) 523-7402
Retail Property For Sale
Price: $537,048Gross Leasable Area: 3,920 SFPrice/SF: $137Property Type: RetailProperty Sub-type: Strip CenterProperty Use Type: Net Lease
Investment withless than 1 year leftonlease
Commission Split: 3%Tenancy: MultipleLot Size: 59,672 SFListing ID 20117592Last Updated 22 days ago
6328 Martin Luther King Blvd6328 Martin Luther King Blvd, Houston, TX 77021
Find Out More...
DescriptionGreat investment retail strip center available located off the metro rail line which runs to TheUniversity of Houston, Texas Southern University, and Downtown Houston. There are many newcommercial and residential developments in the area. With over an acre of land there are endlesspossibilities.Located right off the Metro Rail line and close to many new developments. Within 10 minutes ofThe University of Houston, Texas Southern University, and Medical Center. Easy freeway access tothe 610 loop.
31
5/4/2017 LoopNet - 6328 Martin Luther King Blvd, Strip Center, Houston, TX
http://www.loopnet.com/xNet/MainSite/Listing/Profile/PrintProfile.aspx?LID=20117592&ShowAudit=false 2/4
Map of 6328 Martin Luther King Blvd, Houston, TX 77021 (Harris County)
Additional Photos
6328 Martin Luther King Blvd 6328 Martin Luther King Blvd
32
5/4/2017 LoopNet - 6328 Martin Luther King Blvd, Strip Center, Houston, TX
http://www.loopnet.com/xNet/MainSite/Listing/Profile/PrintProfile.aspx?LID=20117592&ShowAudit=false 3/4
6328 Martin Luther King Blvd 6328 Martin Luther King Blvd
6328 Martin Luther King Blvd 6328 Martin Luther King Blvd
6328 Martin Luther King Blvd 6328 Martin Luther King Blvd
33
5/4/2017 LoopNet - 6328 Martin Luther King Blvd, Strip Center, Houston, TX
http://www.loopnet.com/xNet/MainSite/Listing/Profile/PrintProfile.aspx?LID=20117592&ShowAudit=false 4/4
6328 Martin Luther King Blvd 6328 Martin Luther King Blvd
6328 Martin Luther King Blvd
34
&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
.................................................
.................................................
.................................................
5
5
6
6
Subject
Subject
Subject
Subject
Subject
Subject
Subject
Subject
Subject
Sale 1
Sale 1
Sale 1
Sale 1
Sale 1
Sale 1
Sale 1
Sale 1
Sale 1
Sale 2
Sale 2
Sale 2
Sale 2
Sale 2
Sale 2
Sale 2
Sale 2
Sale 2
Sale
3
Sale
3
Sale
3
Sale
3
Sale
3
Sale
3
Sale
3
Sale
3
Sale
3
Sale 4
Sale 4
Sale 4
Sale 4
Sale 4
Sale 4
Sale 4
Sale 4
Sale 4
Sale 5
Sale 5
Sale 5
Sale 5
Sale 5
Sale 5
Sale 5
Sale 5
Sale 5
Sale
6
Sale
6
Sale
6
Sale
6
Sale
6
Sale
6
Sale
6
Sale
6
Sale
6
Listin
g
Listin
g
Listin
g
Listin
g
Listin
g
Listin
g
Listin
g
Listin
g
Listin
g
Bagb
y St
Katy Fwy
Jack
son S
t
Highw
ay 6 S
FM 1960 Rd W
Highw
ay 6 N
Park Row
Lawnda
North Fw
y
Nor
t h F
wy
US
US
-59 N
US-5
9 N
State Highway 249
State Highway 249
TX-6
TX-6
US-
59 N
US
-5 9 N
US-
59 N
US-59 N
Brooks S
t
Broo
ks S
t
TX-6TX-6TX
-6
S H
ighway 6
S High
way 6
High w
a y 6 S
Highway 6
d
Hardy Toll R
d N
Hardy Toll R
d N
Hidalgo St
I-69 N
I-69 N
I-69 N
I-69 N
Northwest Fwy E
Nor
thw
est F
wy
N
S Fr eew
ay NS
Freeway N
S Freew
ay N
S Fr
eewa
y N
S F
reew
ay S
ervi
ce D
r
TX-8 E
TX-8 E TX-8 E
TX-8 E TX-8 ETX-8 ETX-8 E
TX-8 E
TX-8 E
TX-8 E
TX-8 E
TX-8 E
TX-8 E
TX-8
N
TX-8 N
TX-8 N
TX-8 NTX
-8 N
TX-8
S
TX- 8 N
TX-8
N
TX-8 NTX-8 N
TX-8 S
TX-8 S
TX-8
S
US-59 N
US-
59 N
US-59 N
US-5
9 N
US-59 S
W S
am H
oust
o n T
oll w
a y N
W S
am H
ouston Tollway N
W S am
Ho ust on T ol lw
a y N
W S
am H
oust
on T
ollw
ay N
West Loop S
ay EWestpark Tollway E
Westpark Tollway W
I-69 S
Northwest Fwy
I-10 E
Hillcro
ft St
Gulf Fwy
Fort Bend Pkw
y
Mai
n St
Main St
Main
St
Main St
Main St
Northwest Fwy
Northwest Fwy
S 69
I-69 N
Highway 90AHighway 90A
Highway 6
I-69 S
N Main St
Fort Ben d Pkw
y
For t
Ben
d P
kwy
I-69 S
I-69 N
I-69 N
Highway 90 A
Highway 6
South Fw
y S
888888888
888888888
666666666
249249249249249249249249249
888888888
666666666
595959595959595959
909090909090909090
909090909090909090
LOCATION MAPBorrower or Owner: Subject Address: 5808 Cullen Blvd Census Tract: 3136.00City: HoustonLender or Client: Lat: 29.7014 Long: -95.3489
County: Harris State: TX Zip Code: 77021
File No. 170352
Prepared by Ambrose Appraisal using MapPro Service. MapPro Inc., PO Box 37427, Houston, TX 77237 1-866-3MAPPRO.
Sale 1: 14244 Westheimer Rd
Sale 2: 3415 Orlando St
Sale 3: 5403 Antoine Dr
Sale 4: 239 W Tidwell Rd
Sale 5: 6112 Bellaire Blvd
Sale 6: 2910 Antoine Dr
Listing: 6328 Martin Luther King Jr Blvd
0 2.5
Miles
5
Copyright 1994-2017, MapPro Inc.
N
CAUTION: The location of property arrows shown on this map are approximate only. Inaccuracies may exist on map such as missing, incorrectly drawn, or incorrectly addressed streets. Please report any such inaccuracy to MapPro, Inc. so that appropriate corrections can be made.
35
Located below is a table of the comparable improved sales used in our analysis for the subject property.
Sale Sale Size Quality of Land-To-Building Sales PriceNo. Date NRA/SF Age Condition Construction Ratio PSF
1 04/16 6,600 1978 Average Masonry 3.25:1 $154.55
2 05/16 11,550 2001 Good Metal/Masonry 3.37:1 $150.65
3 06/16 8,205 1970, 2000 Average Masonry 3.68:1 $140.16
4 06/16 6,704 2003 Good Masonry 3.41:1 $119.33
5 12/16 8,000 1999, 2016 Good Masonry 5.88:1 $156.25
6 03/17 18,360 2003 Good Masonry 4.02:1 $114.38
MIN 04/16 6,600 1970 3.25:1 $114.38
MAX 03/17 18,360 2016 5.88:1 $156.25
C.L.* N/A 3,920 1950 Average Metal 15.22:1 $137.00
Subj. N/A 4,850 1960 Average Concrete Block 2.12:1 N/A
*Denotes a Current Listing.
IMPROVED SALES SUMMARY
In order to compare these sales with the subject, comparisons were made to the sales for factors such as market conditions, size, age/condition, quality of construction, and land-to-building ratio\ The table on the following page demonstrates the required adjustments.
36
SALE 1 2 3 4 5 6PRICE/SF $154.55 $150.65 $140.16 $119.33 $156.25 $114.38MARKET CONDITIONS 0% 0% 0% 0% 0% 0%
TOTAL ADJUSTMENTS 0% 0% 0% 0% 0% 0%
ADJUSTED PRICE / SF $154.55 $150.65 $140.16 $119.33 $156.25 $114.38
LOCATION -10% -10% 0% 0% 0% 0%
SIZE 0% 5% 0% 0% 0% 10%
AGE/CONDITION 0% -5% 0% -5% -5% -5%
QUALITY OF CONSTR. 0% 0% 0% 0% 0% 0%
LAND-TO-BUILDING RATIO 0% 0% 0% 0% -5% 0%
NET ADJUSTMENTS -10% -10% 0% -5% -10% 5%
FINAL ADJUSTED RATE/SF $139.10 $135.59 $140.16 $113.36 $140.63 $120.10MINIMUM $113.36MAXIMUM $140.63MEDIAN $137.34MEAN $131.49CONCLUDED VALUE / SF $135.00
SIZE (SF) 4,850 INDICATED VALUE $654,750ROUNDED $655,000
IMPROVED SALES ADJUSTMENT GRID
The sales believed to be the most comparable to the subject have an adjusted sales price range of $114.38 to $140.63 per square foot, with an average of $131.49 per square foot and a median of $137.34 per square foot. We have also included a current listing with a list price of $137.00 per square foot. After considering all of the factors that influence value, it is our opinion that the subject property has a value of $135.00 per square foot, or as follows:
Value of Subject Property via Sales Comparison Approach Building Area X Value per Sq. Ft. = Indicated Value
4,850 SF @ $135.00 PSF = $654,750.00 Rounded to, $655,000.00
37
Final Market Value. Although two approaches to value were utilized, the final opinion of value must be based upon that confirmation of the available market data and analysis which is most appropriate. In this instance, both the Sales Comparison Approach and Income Capitalization Approach were given the equal weight. Thus, the final value for the subject is as follows: subject as is. Based on this analysis and after further consideration, it is our opinion that the indicated market value, is shown below:
As Is Market Value (May 1, 2017)
$660,000.00
STRENGTHS AND WEAKNESSES (SWOT ANALYSIS) Strengths
• Proximity to University of Houston • High traffic count along Old Spanish Trail which is located in proximity to • 100 Percent occupied
Weaknesses
• Regional economy is heavily dependent upon the Oil and Gas industry • Lack of renovations on the improvements.
38
MARKETING/EXPOSURE TIME
Assuming adequate exposure and normal marketing efforts, the estimated exposure time (i.e., the length of time he proposed subject property would have been exposed for sale in the market had it sold at the market value concluded to in this analysis as of the date of this valuation) would have been within 12 months; the estimated marketing time (i.e. the amount of time it would probably take to sell the subject property if exposed in the market beginning on the date of this valuation) is estimated to be within about 12 months. Based on our analysis of the real estate market and discussions with brokers and other knowledgeable individuals in this industry, we believe a reasonable period of time to market the subject property at the previously derived market value is approximately 12 months. This opinion of value is subject to the Assumptions and Limiting Conditions which are included in the attached report. To the best of our understanding, this report conforms to the requirements of Title XI of the Federal Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) and the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation and the Appraisal Institute. Respectfully submitted,
The Ambrose Group
________________________________ _______________________________ David M. Ambrose, MAI Brian A. Burk, MAI, SRA, AI-GRS State Certified General RE Appraiser State Certified General RE Appraiser Certificate No. TX-1322613-G Certificate No. TX-1334810-G _______________________________ Kyle D. Ambrose State Certified General RE Appraiser Certificate No. TX- 1380694-G
39
CERTIFICATION
We certify that, to the best of our knowledge and belief…
• The statements of the facts contained in this report are true and correct.
• The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions.
• We have no present or prospective interest in the property that is the subject of this report or to the parties involved with this assignment. Furthermore, neither The Ambrose Group (formerly known as Ambrose Appraisal Company) nor the appraisers who have signed this report, have performed any services regarding the subject property within the three-year period immediately preceding acceptance of the assignment, as an appraiser or any other capacity.
• We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
• Our engagement in this assignment was not contingent upon developing
or reporting predetermined results.
• Our 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 opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
• Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.
• Kyle D. Ambrose viewed the property, which is the subject of this report. It should be noted, David M. Ambrose and Brian A. Burk did not perform a physical site visit to the property.
• No one provided significant real property assistance to the state certified
appraisers signing this report.
• The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
40
• The appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan.
• As of the date of this report, David M. Ambrose and Brian A. Burk have
completed the requirements of the continuing education program for Designated Members of the Appraisal Institute.
• The reported analyses, opinion, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute.
Based upon our research and analysis of the market, which is provided in the accompanying report, the indicated value of the subject property, as of May 1, 2017, is as follows:
As Is Market Value
$660,000.00
________________________________ _______________________________ David M. Ambrose, MAI Brian A. Burk, MAI, SRA, AI-GRS State Certified General RE Appraiser State Certified General RE Appraiser Certificate No. TX-1322613-G Certificate No. TX-1334810-G _______________________________ Kyle D. Ambrose State Certified General RE Appraiser Certificate No. TX- 1380694-G
41
ASSUMPTIONS AND LIMITING CONDITIONS
That the date of value to which the opinions expressed in this report apply is set forth in the Letter of Transmittal. The appraiser assumes no responsibility for economic or physical factors occurring at some later date that may affect the opinions herein stated. That no opinions are intended to be expressed for legal matters or that would require specialized investigation or knowledge beyond that ordinarily employed by the real estate appraisers, although such matters may be discussed in this report. That no opinion are intended to be expressed for legal matters or that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers, although such matters may be discussed in this report. That no opinion as to title is rendered. Name of ownership and the legal description were obtained from sources generally considered reliable. Title is assumed to be marketable and free and clear of all liens, encumbrances, easements, and restrictions except those specifically discussed in this report. The property is appraised assuming it to be under responsible ownership and competent management and available for its highest and best use. That no engineering survey has been made by the appraiser. Except as specifically stated, data relative to size and area were taken from sources considered reliable and no encroachment or real property improvement is assumed to exist. That maps, plats, and exhibits included herein for illustration only, as an aid in visualizing matters discussed within this report. They should not be considered as surveys or relied upon for any other purpose. That no detailed soil studies covering the subject property were available to the appraiser. Therefore, premises as to soil qualities employed in this report are not conclusive, but have been considered consistent with information available to the appraiser. The property is appraised as though free and clear, under responsible ownership, and competent management. All existing liens and encumbrances have been disregarded. Unless stated otherwise in this report, no presence of hazardous materials on or in the property was observed by the appraiser. The appraisers have no information on the existence of such materials and is not qualified to detect same. The presence of such. However, the value stated herein is based on the assumption that no hazardous materials are present on or in the property, and the appraisers accept no responsibility for determining such condition. The client is urged to retain an expert in this field if there is any question as to the existence of hazardous material.
42
Any information furnished to us by others is believed to be reliable, but we assume no responsibility for its accuracy. Possession of this report, or a copy thereof, does not carry with it the right to publication, nor may it be used for any purpose, by anyone other the applicant, without the previous written consent of the appraisers or the applicant and, in any event, only in its entirety. This appraisal does not require us to give testimony in court or attend on its behalf unless arrangements have been previously made therefore. The distribution of the total valuation in this report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context. The value is reported in dollars on the basis of the currency prevailing at the date of this appraisal. We have no present or contemplated interest in the property appraised. Furthermore, our compensation for making this appraisal is in no manner contingent upon the value reported. That the appraiser assumes no responsibility for determining if the property lies within a flood hazard area and its consequences to the property. It is advised that a Topographic Survey be obtained and local officials be contacted. This appraisal has been made in accordance with the Code of Professional Ethics of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice of the Appraisal Institute. In addition, to the best of our understanding, this report conforms to the requirements of Title XI of the Federal Financial Institutions Reform, Recovery and Enforcement Act of 1898 (FIRREA) and the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation and the Appraisal Institute. The Americans with Disabilities Act (ADA) became effective January 26, 1992. 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 requirements to the act. If so, this fact could have a negative impact upon the value of the property. However, since we have no direct evidence relating to the issue of compliance, we did not consider possible noncompliance with the requirements of ADA in determining the value of the property.
43
The land area was obtained from the Harris County Appraisal Department. The appraisers used the rent roll provided by the owner to obtain suite sizes and overall net rentable areas. If it is found that these sizes and lease terms are inaccurate or unreliable, the appraisers reserve the right to amend this report. It is assumed that this information is accurate and has been utilized within this analysis. However, should more detailed land or building area figures become available at a later date, the appraiser reserve the right to amend the contents of this report (upon just compensation). We were not provided with Profit & Loss Statements for the subject property. In addition, we were provided with limited rental information. In the event more detailed information is provided which contradicts this report, we reserve the right to amend this report. The appraisal represents a restricted report format. Much of the supporting documentation has been retained in our files. The use of any extraordinary assumptions or hypothetical conditions may impact the market value determined within this report. There are no other limiting conditions contained in this report other than the ones listed above
44
.................................................
Subject
Subject
Subject
Subject
Subject
Subject
Subject
Subject
Subject
Yellowstone ParkYellowstone ParkYellowstone ParkYellowstone ParkYellowstone ParkYellowstone ParkYellowstone ParkYellowstone ParkYellowstone Park
MacGregor ParkwayMacGregor ParkwayMacGregor ParkwayMacGregor ParkwayMacGregor ParkwayMacGregor ParkwayMacGregor ParkwayMacGregor ParkwayMacGregor Parkway
ullen Middle Schoolullen Middle Schoolullen Middle Schoolullen Middle Schoolullen Middle Schoolullen Middle Schoolullen Middle Schoolullen Middle Schoolullen Middle School
Hartsfield Elementary Hartsfield Elementary Hartsfield Elementary Hartsfield Elementary Hartsfield Elementary Hartsfield Elementary Hartsfield Elementary Hartsfield Elementary Hartsfield Elementary SchoolSchoolSchoolSchoolSchoolSchoolSchoolSchoolSchool
MacGregor Plaza ShoppingMacGregor Plaza ShoppingMacGregor Plaza ShoppingMacGregor Plaza ShoppingMacGregor Plaza ShoppingMacGregor Plaza ShoppingMacGregor Plaza ShoppingMacGregor Plaza ShoppingMacGregor Plaza ShoppingCenterCenterCenterCenterCenterCenterCenterCenterCenter
MacGregor ParkMacGregor ParkMacGregor ParkMacGregor ParkMacGregor ParkMacGregor ParkMacGregor ParkMacGregor ParkMacGregor Park
entary entary entary mentary mentary mentary mentary mentary mentary lll
ood Parkood Parkood Parkwood Parkwood Parkwood Parkwood Parkwood Parkwood Park
Peck Elementary SchPeck Elementary SchPeck Elementary SchPeck Elementary SchPeck Elementary SchPeck Elementary SchPeck Elementary SchPeck Elementary SchPeck Elementary Sch
Elementary Elementary Elementary Elementary Elementary Elementary Elementary Elementary Elementary hoolhoolhoolhoolhoolhoolhoolhoolhool
Balkin St
Wheeler Ave
Faulkner St
Southridg
University Dr
Beek
man
Rd
Yellowstone Blvd
Kelso St
Griggs
Yellowstone Blvd
Cul
len
Blvd
Old Spanish Trl
I-610 EI-610 E
La S
alet
te S
t
US-90 Alt E
Nas
sau
Rd
Sher
woo
d D
r
Wes
ton
St
Scot
t St
Southu
Kuhlman
ephyr St
Cul
le
Kingsbury St
Perry St
Beekm
an R
d
Wheeler St
S Loop Service Rd E
Scot
t St
Scott St
Griggs Rd
Fost
er S
t
Kass
arin
e Pa
ss
Griggs Rd
Dreyfus St
Old Spanish Trl
Alice St
Scot
t St
Sidn
ey S
t
Cosby St
Sher
woo
d D
r Yellowstone Blvd
Arbor St
Roseneath Dr
Griggs Rd
Yellowstone Blvd
Enyart St
Kingsbury St
Mila
rt St
Charleston St
Roseneath Dr
Ward St
Blodgett St
Palm St
Oas
is P
alm
Arbor St
Scot
t St
Old Spanish Trl
Zephyr St Mar
tin L
uthe
r Kin
g Jr
Blv
d
Idaho St
Enyart St Enyart St
Varsity Ln
Idaho St
I-610 E
Tier
wes
ter S
t
Gra
ce L
n
Wheeler Ave
South Loop E
Fiesta Ln
Cosby St
Scottcrest Dr
Southmore Ave
Way
land
Dr
Perry St
Griggs Rd
Scot
t St
Old Spanish Trl
Idaho St
Alb
Balkin St
Gren St
N MacGregor Way
Cal
houn
Rd
Sidn
ey S
t
Scot
t St
Yellowstone BlvdWard St
Zephyr St
Blodgett St
Scot
t St
Dewberry St
Wes
ton
St
Hull St
e St
Engl
and
St
Scot
t St Branch St
Browncroft St
Keystone St
Dewberry St
Wentworth Ln
Blvd
Cherbo
Hull St
Perry St
Gammage St
Cal
houn
Rd
Griggs Rd
Winnetka Ave
nn Ct
MacGregor Loop DrRio Vista St
Susan Ann Ct
Winfree Dr
Oakcrest Dr
Cul
len
Blvd
Alsace St
Ward St
Faulkner St
Wheeler Ave
Kelso St
Hon
ey C
irC
ulle
n Bl
vd
Harvest Ln
Malmedy Rd
Mila
rt St
Winfree Dr
Cosby St
S Loop Fwy
Scot
tcre
st D
r
Idaho St
Burk
ett S
t
La S
alet
te S
t
Blodgett St
N MacGregor Way
t
Arbor St
ott S
t
Radial St
Griggs Rd
Hull St
Florinda St
Michael P Williams Plz
Southlea St
Marietta Ln
Southmon
Tristan St
Mila
rt St
Sher
woo
d D
r
Sain
t Aug
ustin
e St
Grace Ln
Browncroft St
Stuyve
Scot
t St MacG
regor Loop Dr
te Highw
ay 35
Luca St
Hull St
Can
field
St
Palm St
South Loop E
Engl
and
St
State Highw
ay 35
Eppes St
Charleston St
Cul
len
Blvd
TX-5 Spur
taan Rd
Sidn
ey S
t
Burk
ett S
t
S MacGregor Way
Hull St Hull St
Kelso St
Old Spa
Engl
and
St
Southcr
St
Con
ley
StAve
Martin Luther King Jr Blvd
Albemarle Ln
Old Spanish Trl
Co
Blythewood St
Scot
t St
Sain
t Aug
ustin
e St
Scot
t St
Cal
houn
Rd
Con
ley
St
Arvilla Ln
Lond
on S
t
Gra
ce L
n
Scot
t St
Alsace St
Cosby St
Madalyn Ln
I-610 W
La S
alet
te S
t
Scot
t St
Rio Vista St
Cullen Blvd
Porter StPorter St
Alberta St
Fernwood Dr
Keystone St
Fiesta Ln
Southl
Marietta Ln
Graduate CirSi
dney
St
S MacGregor Way
Perry St
Bataan Rd
y St
Hull St
I-610 W
La S
alet
te S
t
Mila
rt St
Balkin St
Con
ley
St
Mad
rid S
t
Hull St
Wichita Ave
Marietta Ln
South Loop E
Florinda St
Perry St
Dewberry St
Cal
houn
Rd
Tier
wes
ter S
t
Wes
ton
St
Cosby St
Swan
k St
St Blyt
hewo
od S
t
Mila
rt St
Alice St
Luca St
Kingsbury St
Ditmas
St
Tristan St
Fernwood Ct
South Lo
Fernwood Dr
Kingsbury St
St
Corder St
Dreyfus St
Arbor St
Griggs Rd
TX-5 Spur
Corder St
Gof
orth
St
Prospect AveBinz Ave
Porter St
East
woo
d St
Ward St
TX-5 Spur
Cosby St
Cul
len
Blvd
N MacGregor Way N MacGregor Way
Alice St
Balkin St
Kuhl
man
Gra
ce L
n
St
Kelso StAlice St
Faculty Ln
US-90 Alt W
Ward St
Oakdale St
Ward St
Lond
on S
t
Daphne St
Dixie Dr
Ruth St
Cosby St
Cosby St
Con
ley
St
Winnetka Ave
Uni
vers
ity O
aks
Blvd
N Roseneath Dr
Jth Loop E
ct Ave
Alberta St
South Loop E
Hull St
TX-5 Spur
Leop
old
Dr
r St
Eppes St
Dreyfus St
Laurel Dr
Burk
ett S
t
Penf
Arvilla Ln
Mad
rid S
t Cosby St
Live
rpoo
l St
Wichita Ave
Wichita Ave
erta St
acGregor Way
Cosby St
Via Genoa Ct
Sidn
ey S
t
Palm St
Ros
edal
e C
ir
Enyart St
urkett S
t
Paris
St
Odin C
t
Gof
orth
St
Branch St
Blyt
hew
ood
StGriggs Rd
Balkin St
Sco
tt S t
Cosby St
Malmedy Rd
Dixie Dr
Idaho St
Dewberry St
Cal
houn
Rd
Charleston St
Alsace St
Cul
len
Blvd
Paris
St
Perry St
Southmore Ave
Mila
rt St
Southmore Ave
Dum
ble
St
New
Yor
k St
Rosedale St
hne St
Gof
orth
St
Wheeler Ave
Ward St
t
Con
ley
St
Griggs Rd
e St
os St
Gertin St
Fost
er S
t
N Roseneath Dr
Ventura Ln
one Blvd
Con
ley
St
Cosby St
Cosby St
Bel
vede
re S
t
Wichita Ave
Ne
Sain
t Aug
ustin
e St
909090909090909090
FLOOD MAPBorrower or Owner: Subject Address: 5808 Cullen Blvd Census Tract: 3136.00City: HoustonLender or Client: Lat: 29.701439 Long: -95.348912
County: Harris State: TX Zip Code: 77021
File No. 170352
Prepared by Ambrose Appraisal using MapPro Service. MapPro Inc., PO Box 37427, Houston, TX 77237 1-866-3MAPPRO.
0 0.2
Miles
0.4
Copyright 1994-2017, MapPro Inc.
N
Flood Zone Information
FEMA Map No. 48201C0880M
FEMA Zone X
Effective Date 01/06/2017
100-Year
100-Year Floodway
500-Year
Outside 500-Year
CAUTION: The location of flood hazard areas shown on this map are approximate only. Flood hazard boundaries may change from time to time. A property in the generalvicinity of a flood hazard area should be evaluated by a civil engineer or other appropriate specialist prior to purchase or investment.
45
PLA
T M
AP
46
AER
IAL
MA
P
47
VIEW OF SUBJECT ALONG CULLEN BOULEVARD LOOKING SOUTHWEST
VIEW OF SUBJECT ALONG CULLEN BOULEVARD LOOKING NORTHEAST
48
EXTERIOR VIEW OF BUILDING
EXTERIOR VIEW OF BUILDING
49
INTERIOR VIEW OF BUILDING
INTERIOR VIEW OF BUILDING
50
INTERIOR VIEW OF BUILDING
INTERIOR VIEW OF BUILDING
51
EXTERIOR VIEW OF BUILDING
EXTERIOR VIEW OF BUILDING
52
4Q 2016 | Volume 45 | No. 4
SitusRERC.com Situs.com © 2017 RERC LLC. All rights reserved.44
REAL ESTATE REPORT
Regional Investment Criteria - 4Q 2016 | Third-Tier1 Investment Properties
Office Industrial Retail
Apartment Student Housing Hotel
CBD Suburban Warehouse R&D Flex Regional Mall
Power Center
Neigh/Comm
West Investment Criteria
Pre-tax Yield (IRR) (%)
Range 7.3 - 12.0 7.5 - 12.0 6.5 - 11.0 7.8 - 12.0 7.8 - 11.5 7.5 - 12.0 7.8 - 12.0 7.0 - 11.0 7.0 - 12.0 7.5 - 11.0 9.0 - 13.5
Average 9.5 9.6 8.9 9.6 9.5 9.3 9.5 9.3 8.7 9.3 11.1
Going-In Cap Rate (%)
Range 5.8 - 9.0 6.0 - 9.3 5.5 - 9.5 5.5 - 9.5 5.5 - 9.5 6.0 - 9.0 6.0 - 9.0 5.0 - 9.0 4.5 - 8.8 5.5 - 8.5 7.0 - 11.0
Average 7.3 7.6 7.2 7.5 7.5 7.3 7.7 7.3 6.2 6.8 8.7
Terminal Cap Rate (%)
Range 6.0 - 11.0 6.5 - 11.0 6.5 - 9.8 7.0 - 10.0 6.5 - 10.0 6.0 - 10.0 6.0 - 10.0 7.0 - 9.5 5.5 - 9.0 6.0 - 9.5 7.0 - 11.5
Average 8.2 8.5 8.0 8.3 8.3 8.0 8.3 7.9 7.0 7.4 9.3
Midwest Investment Criteria
Pre-tax Yield (IRR) (%)
Range 9.0 - 13.0 9.0 - 12.0 9.0 - 13.0 6.5 - 11.5 9.0 - 13.0 6.0 - 11.0 6.0 - 11.0 6.0 - 11.3 7.3 - 12.0 8.8 - 11.3 10.0 - 13.0
Average 10.5 10.6 10.3 10.3 10.7 9.5 10.0 10.1 9.6 9.6 11.1
Going-In Cap Rate (%)
Range 7.0 - 10.1 6.8 - 10.2 6.5 - 10.1 7.0 - 12.1 7.0 - 10.5 7.3 - 12.0 6.5 - 10.3 7.0 - 12.1 6.0 - 11.0 6.8 - 9.0 7.0 - 12.1
Average 8.8 8.8 8.7 9.3 9.2 9.3 8.9 9.1 8.1 7.9 9.8
Terminal Cap Rate (%)
Range 7.5 - 12.1 7.5 - 12.1 7.5 - 12.1 7.5 - 11.8 7.5 - 12.1 7.0 - 12.3 7.0 - 11.0 7.5 - 10.8 5.5 - 11.0 7.3 - 12.1 9.3 - 12.0
Average 9.5 9.6 9.3 9.8 9.8 9.6 9.5 9.6 8.6 8.8 10.6
South Investment Criteria
Pre-tax Yield (IRR) (%)
Range 8.0 - 12.0 8.0 - 11.5 8.0 - 12.0 8.5 - 12.5 8.5 - 12.5 8.5 - 14.0 9.0 - 12.0 7.5 - 11.5 7.0 - 10.5 8.0 - 11.0 8.5 - 13.0
Average 9.9 10.2 10.0 10.4 10.4 10.3 10.1 9.8 8.8 9.1 10.5
Going-In Cap Rate (%)
Range 5.0 - 9.5 5.0 - 10.0 6.0 - 10.0 7.3 - 9.8 6.5 - 9.8 7.0 - 11.0 5.0 - 9.5 6.5 - 10.0 5.8 - 9.5 7.3 - 10.0 7.0 - 10.0
Average 8.2 8.6 8.3 8.8 8.7 8.5 8.3 8.3 7.4 8.0 9.0
Terminal Cap Rate (%)
Range 6.0 - 10.5 6.8 - 12.0 6.3 - 10.5 7.5 - 10.8 7.5 - 10.5 7.5 - 10.0 6.0 - 11.0 6.8 - 11.0 6.0 - 10.0 6.0 - 10.5 7.5 - 11.0
Average 8.8 9.5 8.9 9.3 9.4 8.9 9.0 9.0 7.8 8.2 9.6
East Investment Criteria
Pre-tax Yield (IRR) (%)
Range 8.0 - 13.0 8.5 - 13.0 7.5 - 12.0 7.3 - 12.0 8.0 - 13.0 8.0 - 13.0 8.5 - 13.0 8.5 - 12.5 6.8 - 12.0 8.5 - 14.0 10.0 - 15.0
Average 10.3 10.5 9.9 10.1 10.3 10.2 10.4 10.3 9.4 9.8 11.8
Going-In Cap Rate (%)
Range 5.5 - 10.5 6.0 - 11.0 6.0 - 11.0 6.5 - 11.5 7.0 - 12.0 7.0 - 12.0 6.0 - 11.0 6.0 - 11.0 5.0 - 10.5 6.3 - 12.0 7.0 - 12.0
Average 8.1 8.7 8.4 8.7 8.7 8.9 8.6 8.4 7.5 8.5 9.7
Terminal Cap Rate (%)
Range 6.0 - 11.0 6.5 - 11.5 6.8 - 12.0 7.0 - 12.0 7.0 - 12.0 7.0 - 12.0 7.0 - 12.0 7.5 - 12.0 5.8 - 11.0 7.0 - 12.0 9.0 - 12.5
Average 8.8 9.5 9.2 9.4 9.4 9.6 9.2 9.5 8.3 8.8 10.7
1 Third-tier investment properties are defined as older properties with functional inadequacies and/or marginal locations. A list of Situs RERC Defined Regions is located in the back of this report in the “Scope and Methodology” section.
53
Friday,May5,2017at10:45:05AMCentralDaylightTime
Page1of2
Subject: FW:AppraisalOrderDate: Thursday,March30,2017at4:17:14PMCentralDaylightTimeFrom: BrianBurkTo: KyleAmbrose,DianeOuzts
GivetoKyleandIwillreview.ThanksSincerely, Brian Burk, MAI, SRA, AI-GRSDirector of Appraisal Services
Office: (713)688-7733 | Direct: (832)300-1721www.theambrosegroup.net From: James Hamon Sent: Thursday, March 30, 2017 1:25 PMTo: Brian BurkSubject: FW: Appraisal OrderNew Order from Justin Carpenter. Best regards, James HamonReal Estate Consultant/Appraiser
Office: (713) 688-7733 | Direct: (832) 300-1713 | Cell: (832) 928-8736www.theambrosegroup.net From:ValLongoria[mailto:[email protected]]Sent:Thursday,March30,20171:09PMTo:JamesHamon<[email protected]>Subject:AppraisalOrderHelloJames,Pleaseacceptthisemailasanappraisalorder.ThelenderwillbeJordanproperYesorSeguro,whicheverJusYnCarpentersdecides.SubjectProperty5808CullenBlvd.Houston,TX77021Selleris:SandraN.FalconerBuyeris:RemusColinNembhard
54
Page2of2
LoanAmount:$450,000Pleasecontactthesellerforentryandforpaymentoftheorder,sheisusuallyonsiteofthesubjectproperty:SandraFalconer:713-373-7082ValLongoriaOakValleyCommercialLendingHouston,TXOffice:877-755-8244Fax:281-754-4692www.ovclending.com
55
QUALIFICATIONS OF KYLE D. AMBROSE Kyle D. Ambrose is an Certified General Real Estate Appraiser with The Ambrose Group, Appraisal Division, which has offices in Houston and Dallas, Texas. Mr. Ambrose has experience in the valuation of multiple property types including retail, office, multi-family residential, industrial, religious establishments, tax exempt properties, and various other commercial property types.
BIOGRAPHICAL DATA
Mr. Ambrose was born in Houston, Texas in 1991. He graduated from Windfern High School, prior to attending Baylor University.
EDUCATION Bachelor of Business Administration (Real Estate)
Baylor University (2013)
MISCELLANEOUS Certified General Real Estate Appraiser Authorization #: TX 1380694 G
56
Douglas E. OldmixonCommissioner
Texas Appraiser Licensing and Certification BoardTexas Appraiser Licensing and Certification BoardTexas Appraiser Licensing and Certification BoardTexas Appraiser Licensing and Certification BoardP.O. Box 12188 Austin, Texas 78711-2188
Certified General Real Estate Appraiser
Having provided satisfactory evidence of the qualifications required by theTexas Appraiser Licensing and Certification Act, Texas Occupations Code,Chapter 1103, is authorized to use this title, Certified General Real EstateAppraiser.
Number:Issued:
1380694
Expires: 03/31/2019
KYLE DAVID AMBROSE17627 GLORY ROSE CTCYPRESS, TX 77429
Appraiser:
03/15/2017
KYLE DAVID AMBROSE
TX G
You may wish to laminate the pocket identification card to preserve it.
Inquiry as to the status of this license may be made to:
Texas Appraiser Licensing and Certification BoardP.O. Box 12188
Austin, Tx 78711-2188www.talcb.texas.gov
(512) 936-3001Fax:(512) 936-3899
Douglas E. OldmixonCommissioner
The person named on the reverse is licensed by the Texas Appraiser Licensing and Certification Board.
Texas Appraiser Licensing and Certification BoardTexas Appraiser Licensing and Certification BoardTexas Appraiser Licensing and Certification BoardTexas Appraiser Licensing and Certification BoardP.O. Box 12188 Austin, Texas 78711-2188
Certified General Real Estate Appraiser
Having provided satisfactory evidence of the qualifications required by the Texas Appraiser Licensing and Certification Act, Texas OccupationsCode, Chapter 1103, is authorized to use this title, Certified General Real Estate Appraiser.
Number#:
Issued: Expires:
1380694
03/31/2019
Appraiser:
03/15/2017
KYLE DAVID AMBROSE
TX G
57
BRIAN A. BURK, MAI, SRA, AI-GRS (713) 410-4347
EDUCATION Baylor University, Bachelor of Business Administration in Real Estate and Finance REAL ESTATE EDUCATION Appraisal Institute of Real Estate Appraisers Cool Tools: New Technology for Real Estate Appraisers Analyzing Operating Expenses Appraising Convenience Stores
Review Theory – General Forecasting Revenue Fundamentals of Separating Real Property, Personal Property, and Intangible Assets 7-Hour National USPAP Update Course Condemnation Appraising: Principles & Applications Feasibility, Market Value, Investment Timing: Option Value Small Hotel/Motel Valuation Understanding and Testing DCF Valuation Models Spotlight on USPAP: Hypothetical Conditions and Extraordinary Attacking and Defending an Appraisal in Litigation Advanced applications Report Writing and Valuation Analysis Advanced Sales Comparison and Cost Approaches Advanced Income Capitalization Highest and Best Use and Market Analysis 15-Hour National USPAP Course Appraisal Principles General Applications Business Practices and Ethics Basic Income Capitalization Appraisal Procedures CCIM Institute CI 101: Financial Analysis for Commercial Investment Real Estate Challenge EMPLOYMENT HISTORY
2013 – Present: Director of Appraisal Services; The Ambrose Group, Houston, Texas 2010 – 2013: Senior Consultant; Keystone Consulting Group, Raleigh, North Carolina 2002 – 2010: Senior Appraiser; Ambrose Appraisal Company, Houston, Texas 1999 – 2002: Credit Analyst; Extraco Banks, Waco, Texas
58
Brian A. Burk, MAI, SRA, AI-GRS Page Two LICENSES
State of Texas – Certified General Appraiser No. TX-1334810-G State of Louisiana – Certified General Appraiser No. G3790 State of Oklahoma – Certified General Appraiser No. 13079CGA
DESIGINATIONS
MAI – Appraisal Institute (Awarded in August 2009) AI-GRS – Appraisal Institute (Awarded in September 2014) SRA – Appraisal Institute (Awarded in October 2014)
PROFESSIONAL AFFILIATIONS Appraisal Institute Member No. 442901 CCIM Institute
EXPERIENCE Assignments undertaken have included appraisals, appraisal reviews, market studies, land utilization and project planning of virtually all types of commercial and residential real estate. Primary areas of specialty, in order of preference, include: shopping centers, regional malls, lodging facilities, office properties, apartments, industrial properties, mixed-use developments, subdivisions, and vacant land.
COURT EXPERIENCE Testified as an expert witness in bankruptcy court in Wake County, North Carolina.
59
Douglas E. OldmixonCommissioner
Texas Appraiser Licensing and Certification BoardTexas Appraiser Licensing and Certification BoardTexas Appraiser Licensing and Certification BoardTexas Appraiser Licensing and Certification BoardP.O. Box 12188 Austin, Texas 78711-2188
Certified General Real Estate Appraiser
Having provided satisfactory evidence of the qualifications required by theTexas Appraiser Licensing and Certification Act, Texas Occupations Code,Chapter 1103, is authorized to use this title, Certified General Real EstateAppraiser.
Number:Issued:
1334810
Expires: 04/30/2019
BRIAN ALAN BURK16545 VILLAGE DRIVE BLDG AJERSEY VILLAGE, TX 77040
Appraiser:
04/07/2017
BRIAN ALAN BURK
TX G
You may wish to laminate the pocket identification card to preserve it.
Inquiry as to the status of this license may be made to:
Texas Appraiser Licensing and Certification BoardP.O. Box 12188
Austin, Tx 78711-2188www.talcb.texas.gov
(512) 936-3001Fax:(512) 936-3899
Douglas E. OldmixonCommissioner
The person named on the reverse is licensed by the Texas Appraiser Licensing and Certification Board.
Texas Appraiser Licensing and Certification BoardTexas Appraiser Licensing and Certification BoardTexas Appraiser Licensing and Certification BoardTexas Appraiser Licensing and Certification BoardP.O. Box 12188 Austin, Texas 78711-2188
Certified General Real Estate Appraiser
Having provided satisfactory evidence of the qualifications required by the Texas Appraiser Licensing and Certification Act, Texas OccupationsCode, Chapter 1103, is authorized to use this title, Certified General Real Estate Appraiser.
Number#:
Issued: Expires:
1334810
04/30/2019
Appraiser:
04/07/2017
BRIAN ALAN BURK
TX G
60
QUALIFICATIONS OF DAVID M. AMBROSE, MAI
David M. Ambrose is the president of The Ambrose Appraisal Company which has officesin Houston and Dallas, Texas. Mr. Ambrose received the MAI designation in 3 years fromentering the profession. He holds a MBA Degree from Baylor University. Mr. Ambrose'sexperience includes the valuation of all types of commercial and residential properties. Hehas testified as an expert witness regarding property value on numerous occasions invarious courts of law.
BIOGRAPHICAL DATA
Mr. Ambrose was born in San Antonio, Texas in 1964. He graduated from the publicschools in San Antonio, Texas prior to attending Baylor University. While attending BaylorUniversity, Mr. Ambrose received the Jim Weatherby Scholarship for Academic Excellence. Mr. Ambrose is married and has five children.
EDUCATION
Bachelor of Business Administration Degree (Finance/Real Estate): Baylor University (1986)Masters of Business Administration: Baylor University (1988) Appraisal Institute: Numerous Appraisal Seminars, Courses, Lectures, etc.
PROFESSIONAL AFFILIATIONS
Appraisal Institute (MAI No. 9041)State Certified General Real Estate Appraiser-Certificate No. TX-1322613-GTexas Real Estate Commission (Broker)-License No. 0382964
61
Douglas E. OldmixonCommissioner
Texas Appraiser Licensing and Certification BoardTexas Appraiser Licensing and Certification BoardTexas Appraiser Licensing and Certification BoardTexas Appraiser Licensing and Certification BoardP.O. Box 12188 Austin, Texas 78711-2188
Certified General Real Estate Appraiser
Having provided satisfactory evidence of the qualifications required by theTexas Appraiser Licensing and Certification Act, Texas Occupations Code,Chapter 1103, is authorized to use this title, Certified General Real EstateAppraiser.
Number:Issued:
1322613
Expires: 02/28/2018
DAVID MICHAEL AMBROSE16545 VILLAGE DR BLDG AHOUSTON, TX 77040
Appraiser:
01/07/2016
DAVID MICHAEL AMBROSE
TX G
You may wish to laminate the pocket identification card to preserve it.
Inquiry as to the status of this license may be made to:
Texas Appraiser Licensing and Certification BoardP.O. Box 12188
Austin, Tx 78711-2188www.talcb.texas.gov
(512) 936-3001Fax:(512) 936-3899
Douglas E. OldmixonCommissioner
The person named on the reverse is licensed by the Texas Appraiser Licensing and Certification Board.
Texas Appraiser Licensing and Certification BoardTexas Appraiser Licensing and Certification BoardTexas Appraiser Licensing and Certification BoardTexas Appraiser Licensing and Certification BoardP.O. Box 12188 Austin, Texas 78711-2188
Certified General Real Estate Appraiser
Having provided satisfactory evidence of the qualifications required by the Texas Appraiser Licensing and Certification Act, Texas OccupationsCode, Chapter 1103, is authorized to use this title, Certified General Real Estate Appraiser.
Number#:
Issued: Expires:
1322613
02/28/2018
Appraiser:
01/07/2016
DAVID MICHAEL AMBROSE
TX G
62