APPRAISAL ANALYSIS
RESTAURANT BUILDING
4115 E. BUSCH BOULEVARD
TAMPA, FL 33617
HISTORY OF SUBJECT:
According to the deed record, the current owner is Moiden, Inc who received this
property as a result of foreclosure on July 30, 2010 from Campos Holding, LLC.
Campos Holding, LLC originally purchased this property from Moiden, Inc for
$1,700,000 in March 2006.
The subjects most recent lease ended approximately one year ago and is now
currently vacant. It appears the previous owner/tenant began a renovation to
include a new ceiling and electric service, but left before the new ceiling and
service could be a result. Regardless, the tenant defaulted on the lease
agreement and removed the FF&E (stoves, dishwashers, etc.), the wiring that runs
to the three (3) electrical boxes, and the suspended ceiling tile/ceiling frame out of
the building. The subject does not currently have electricity due to the removal of
the wiring that runs to the three (3) electric boxes. The current owner replaced the
roof less than 12 months prior to this appraisal.
The subject is not known to be currently listed for sale or lease, and there have
been no other known real estate transactions in the past three years.
REGIONAL ANALYSIS OF TAMPA, FLORIDA
The subject is influenced in a general manner by the economic, political, physical
and social characteristics of the Tampa Metropolitan Statistical Area (MSA). An
MSA is a geographic area with a significant population nucleus, along with any
adjacent communities that have a high degree of economic and social integration
with that nucleus.
The value of real property is influenced by the interaction of four basic forces.
These forces include social trends, economic circumstances, environmental
conditions, and governmental controls and regulations. The interaction of these
four forces influences the value of every parcel of real estate in the market.
The Tampa MSA is part of a metropolitan statistical area that includes the cities of
St. Petersburg and Clearwater. Counties included in the Tampa MSA are
Hillsborough (of which Tampa is the county seat), Pasco, Hernando, and Pinellas.
St. Petersburg and Clearwater are located in Pinellas County. Unless stated
otherwise, the data in this report will focus on Tampa and Hillsborough County,
rather than on the entire Tampa/St. Petersburg/Clearwater area.
Social Trends: Social forces are trends that are exerted primarily through
population characteristics. Real property values are affected not only by population
changes and characteristics, but also by various forms of human activity. In 2010,
Tampa/Hillsborough County demographics broke down as follows:
Race
White 53%
Hispanic 23%
African-American 35%
Mixed race (non-Hispanic) 3.5%
Other (non-Hispanic) 5%
The sexes were divided almost evenly, with 51% of the county’s population being
female. Out of the more than 400,000 households, 65% had families.1
Population and Area:
Population growth trends influence employment growth, income levels, and many
other key demand parameters analyzed in determining commercial real estate
productivity.
The census has provided population data from 2010, and the projections are
considered reliable. The Tampa/St. Petersburg/Clearwater MSA ranks as the 19th
largest MSA in the United States, second in the Southeast, and the largest in
Florida. The population for the Tampa MSA in 2010 was 4,228,855. Between
2000 and 2006, the MSA population increased by 2.47% a year. Hillsborough
County represents more than 40% of the total population of the Tampa MSA. In
addition to being the MSA’s largest county in terms of population, it is also the
locale for the highest number of households and the highest effective buying
income.
Higher Education:
Institutions of higher learning typically are not as vulnerable to economic
downswings, and they help to provide an area with a more solid employment base.
Noted universities and colleges in Tampa/Hillsborough County are the University of
South Florida (the second largest university in the Southeast), University of Tampa,
Hillsborough Community College, Eckerd College, Tampa Technical Institute, and
University of Phoenix – Tampa Main Campus. Throughout the seven-county region
are located approximately twenty more institutions of higher learning.
Recreational and Regional Attractions:
Recreational and regional attractions enhance an area’s quality of life. These
activities may also have a significant economic impact on an area by increasing the
demand for services and retail trade created by visitors.
The Tampa area’s physical attributes have defined its culture from the onset of its
establishment. Its warm climate and waterfront location have had obvious
influences on every aspect of life in Tampa. Tampa Bay and the Gulf of Mexico
(est. 25 miles west of the Tampa CBD) provide limitless opportunities for boating,
fishing, or just relaxing on the famous Florida beaches. The Port of Tampa is
home to an increasing number of cruise ships and is becoming one of the fastest-
growing cruise ports in the United States.
In addition to the cornucopia of water-related recreational opportunities in the
Tampa area, residents and visitors can choose from a broad spectrum of other
activities and attractions. Hillsborough County alone houses sixteen regional and
state parks, including Lake Park, Upper Tampa Bay Park, Hillsborough River State
Park, and Little Manatee River State Park. There are eleven major festivals held in
Hillsborough County each year, including the Florida Strawberry Festival, the
Florida State Fair, the Gasparilla Festival of Arts, Fiesta Day, and Bern’s Wine
Fest. Major tourist attractions include Busch Gardens, Ybor City, the Lowry Park
Zoo, the Florida Aquarium, and Adventure Island.
The arts are alive and thriving in the Tampa area. Two new jewels in its crown are
the Tampa Museum of Art and the Tampa Bay Performing Arts Center, where one
can enjoy a wide variety of performances, from ballets to plays to popular artists to
the Florida Orchestra. The Tampa area is home to 26 other museums and
performance halls of note, including the Florida Holocaust Museum, the Museum of
Science and History, the Children’s Museum of Tampa, the Museum of Fine Arts,
the Bishop Planetarium, the Bayfront Center/Mahaffey Theater, the Ruth Eckerd
Hall, and the Tampa Theatre.
The Tampa area provides a stimulating environment for professional sports.
Tampa is, of course, home to the Tampa Bay Buccaneers, the 2003 Super Bowl
Champions. Tropicana Field is home of the Tampa Bay Devil Rays baseball team.
Pro hockey is represented by the Tampa Bay Lightning (2004 Stanley Cup
Champion), arena football by the Tampa Bay Storm. There are three professional
golf courses, open year-round to the public.
Economic Forces:
Economic forces are the fundamental relationships between current and
anticipated supply and demand and the economic activities in which the population
participates in order to satisfy its wants, needs, and demands through its purchase
power.
The national recession that began in the fall of 1999 contributed to a nationwide
weakness in the manufacturing sector. The events of September 11, 2001 were a
major cause of this weakness, as market participants stood back and waited to see
what would happen next. The recession’s effects on the Tampa area are reflected
in the area unemployment figures from 2001 to 2002 – an increase of .9%. The
downturn was temporary, minor, and somewhat indirect due to the fact that
manufacturing does not play a major role in the area’s overall economic picture,
ranking sixth out of ten area industry types. 1
The economic climate in the Tampa/Hillsborough County area is thriving. The area
boasts a healthy balance of many different types of businesses and industries,
giving it strength “across the board”, rather than being dependent upon one or two
major industries. See “Industries and Employment” for more information on the
economic climate in the Tampa area.
Income:
The economic vitality of an area is an important consideration in forecasting the
demand and potential income for commercial real estate. Income levels provide an
indication of an area’s economic vitality since they reflect an area’s economic
growth and its residents’ standards of living.
Per capita income for Hillsborough County in 2010 was $20,142, up from $16,704
in 2000 – an increase of nearly 17%. Median household income for Hillsborough
County in 2010 was $38,186, up from $30,441 in 2000- an increase of nearly 20%.
Average household income for Hillsborough County in 2010 was $49,054, up from
$40,795 in 2000- an increase of nearly 17%.1
Industries and Employment:
The distribution of employment and the overall unemployment rate help determine
the economic character of an area. As mentioned above, the Tampa area’s vital
economy can be attributed to its wide variety of many healthy business and
industries. Certainly one of the strongest factors in the overall economic picture is
the Port of Tampa. Please see “Other Industrial Transportation” for more
information on the Port of Tampa.
Another very strong contributor to the local economy is the agriculture industry. In
1997, Hillsborough County was home to over 2,600 farms. In 2000, it ranked third
in the state for total net farm income, at over $171 million. 1
The corporate climate in the Tampa area is welcoming and profitable. It has
attracted hundreds of businesses in the last decade – in particular, those in the
communications and finance industries.
Hillsborough County’s top five major public and private employers are listed below,
along with the number of employees:
Hillsborough Co. School District – 21,426
MacDill Air Force Base – 19,000
Verizon Communications – 14,000
University of South Florida – 12,477
Hillsborough Co. Government – 10,886
The regional top five private sector employers are as follows:
Publix Super Markets, Inc. – 23,248
Baycare - 17,000
Verizon Communications – 14,000
Danka Business Systems PLC – 9,500
Lincare Holdings – 6,1002
Highway Transportation:
Highway accessibility is a primary consideration in planning an area’s future growth
and development. The Tampa metropolitan area is accessed via I-75, a major
north-south corridor that connects the Michigan/Canada border to Detroit,
Cincinnati, Atlanta, and Orlando to Tampa, extending down to Naples in South
Florida. The Hillsborough County I-75 corridor contains 39 miles of corporate
campuses. The corridor’s residential population is estimated at 300,000. I-275
serves as a local beltway around the metropolitan area. I-4 is a major Florida
corridor extending from Tampa in a northwesterly direction through Orlando and
ending at Daytona Beach. The I-4 corridor connects with I-95, another major north-
south corridor serving the entire Eastern Seaboard of the United States, from the
Maine/Canada border to Miami. Driving time between Orlando and Tampa is
roughly 1.25 hours, an estimated 7.5 hours between Atlanta and Tampa.
Public Transportation:
The Tampa/Hillsborough County area is serviced by the HARTline (Hillsborough
Area Regional Transit), a bus system linking major metropolitan points to both the
central business district and other suburban areas.
Air Transportation:
The Tampa International Airport serves 58 domestic destinations daily via nonstop
flights and 14 international destinations. Out of 149 national airports, Tampa
International is ranked 29th busiest. The Conde´ Nast Traveler has ranked the
airport as No. 1 in the nation and No. 3 in the world as the best airport facility in
terms of customer satisfaction.1 In addition, Tampa is served by two regional
airports, Peter O. Knight Airport and Vandenberg Airport. These two smaller
airports facilitate ingress and egress for smaller, private jets and turbo-props.
Albeit much smaller than the Tampa International Airport, the St.
Petersburg/Clearwater International Airport in Pinellas County serves as an
auxiliary facility for the region. It is located approximately 18 miles to the west of
the Tampa CBD.2
Other Industrial Transportation:
Without question, the largest industrial transportation hub for the Tampa area is
the Port of Tampa, the largest seaport in Florida. Through it passes nearly half of
all seaborne cargo that enters or leaves the state.. The port supports 93,000 jobs
for the area. In addition, the Tampa area is served by the CSX railroad system,
with approximately 300 trains weekly connecting Tampa with most major United
States markets.2
Environmental Forces /Climate:
Environmental forces are both natural and manmade forces that influence real
property values. Some environmental forces include climactic conditions, natural
barriers to future development, primary transportation systems, and the nature and
desirability of the immediate areas surrounding a property.
The Tampa area enjoys a warm, sub-tropical climate year-round. The topography
is fairly flat to rolling (eastern Hillsborough County). Humidity is usually fairly high.
The average minimum and maximum winter temperatures are 51.9 and 71.5
degrees, respectfully; average minimum and maximum summer temperatures are
74 and 90 degrees. Annual minimum temperature is 63.5 degrees; annual
maximum is 81.7. Average annual precipitation is 47.62 inches, the heaviest
rainfall occurring June through September. The entire state of Florida, is, of
course, heavily affected by periodic tropical storms and hurricanes that typically
occur in the summer and early fall months. These figures are from the period
3/25/1900 through 3/31/2010.3 Please see the topographical map of the State of
Florida on the following page.
Governmental Forces:
Governmental, political, and legal actions at all levels have an impact on property
values. The legal climate of a particular time or in a particular place may
overshadow the natural market forces of supply and demand. The State of Florida
mandates very high standards in building and development due to the tropical
storms and hurricanes – and their destruction – that are a fact of life in Florida. In
Hillsborough County, DRIs (Developments of Regional Impact) have been
implemented very successfully in several areas. They are large, thoughtfully
planned projects that serve local businesses and residents with world-class
facilities and amenities.
Utilities:
The availability of utilities is extremely important to the future development of any
community. Electricity and natural gas are available to residents and businesses in
Tampa through Tampa Electric Company and Peoples Gas. Water and sewage
are maintained by the Hillsborough County Water Department.
Outlook:
Our review of the above data indicates that the Tampa metropolitan area has an
impressively stable economy, evidenced by increasing income and population
levels, the steady creation of new jobs and influx of corporations, and low
unemployment rates. Metropolitan Tampa also features limitless regional
attractions and a world-class transportation system that includes land, air, rail, and
water. In conclusion, the economic outlook for the Metro Tampa MSA is very
favorable for the overall success of the subject.
SUBJECT MARKET AREA AND ANALYSIS:
Neighborhood is defined as follows: A group of complementary land uses; a
congruous grouping of inhabitants, buildings, or business enterprises.
The subject property is located in the city of Tampa, an incorporated community
within the northeastern portion of Hillsborough County, Florida, approximately five
miles northeast of the Tampa Central Business District (CBD) on E. Busch
Boulevard. However, the subject is located within two miles of the southeast
boundary of the city of Temple Terrace and for purposes of this report is
considered to be in the general neighborhood of the Temple Terrace area.
The neighborhood is easily accessible with good access to the interstate system.
The subject site is 2.75 miles east of I-275, 4.10 miles north of I-4, 4.60 miles west
of I-75, 0.20 miles east of U.S. 41 (40th St.), and 0.75 miles west of State Route
583. The subject site is approximately 5.89 miles northeast of the Tampa CBD.
Busch Gardens Theme Park is .2 miles northwest of the subject and the
Hillsborough River is approximately 0.40 miles southeast of the subject site.
The neighborhood boundaries are generally described as Bruce B. Downs
Boulevard to the north, I-75 to the east, I-4 to the south and I-275 to the west.
With little undeveloped land, numerous types of building improvements are present
within the neighborhood and include single and multi-family residential, retail,
commercial and office. Styles are typically traditional with a wide spectrum of
quality characteristics. Residential properties are found along interior streets in a
number of residential subdivisions. These properties range from single family
residences to multi-family properties. The homes in the immediate area of the
subject property consist of medium size single family dwellings.
The outlook for the neighborhood is for relatively stable performance with
continued commercial property improvement and re-development over the next
several years. This is considered to have a positive influence on value. As a
result, the demand for existing developments and underdeveloped/undeveloped
land is expected to continue to improve.
IDENTIFICATION OF THE SUBJECT:
The subject property is recorded in Deed Book 20035 Page 1370. The property is
further identified as PIN: A-21-28-19-43U-000007-00001.0 with a mailing address
of 4115 E. Busch Boulevard, Tampa, FL 33617, in the county of Hillsborough.
ZONING:
The site is zoned CG-General Commercial & PD-Planned Development. This
zoning has very broad use restrictions including but not limited to: single-family
residential, multi-family residential, condominiums (office and residential), auto
service stations, boarding homes, car wash, churches/institutional, convenience
stores, day care, drug stores, funeral homes, grocery stores, hotels, laundr-o-mat,
libraries, liquor stores, medical laboratories, professional office use, retail,
restaurant-bar. The maximum seating allowed for the subject property as a
restaurant facility is 342 seats according to the Tampa Planning and Zoning office.
ASSESSMENT HISTORY:
The property is assessed by the Hillsborough County PVA at $456,495 land,
$592,667 improvements, for a total of $1,049,162.
TAXES:
The property is subject to the city of Tampa and the Hillsborough County tax rates
of 2.2272 per $100 of assessed value. By state statute, properties in Florida are
required by law to be assessed, for tax purposes, at 100% of market value. If the
property sold, the assessment would likely be updated; in such cases, the PVA
typically bases the following year's assessment on the sale price. If taxes are
calculated based on the final value concluded in this report of $900,000, the
estimated tax burden for the following year would be $20,045.
REASONABLE EXPOSURE TIME
In the Statement on Appraisal Standards No.6 (SMT-6), Exposure time is 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 estimate
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 reasonable exposure period is a function of
price, time and use.
SUBJECT PROPERTY EXPOSURE TIME:
Based on interviews with brokers and others involved with some of the comparable
sales indicates that approximately 12 to 18 months is reasonable exposure time for
this type of property at the market value level estimated in this report. Based on
this information, it is our opinion that the estimated reasonable exposure time for
the subject property would have been 12 to 18 months prior to the effective date of
this appraisal.
SITE SUMMARY
Location: The subject is located on E. Busch Boulevard.
Gross Site Area: 89,180 SF or 2.05 Acres
Primary Road Frontage: E. Busch Boulevard
Secondary Road Frontage: N. Orangeview Avenue
Additional Road Frontage: None
Zoning District: CG-General Commercial & PD-Planned Development
Flood Map Panel No. & Date: 12057C0216H
Flood Zone(s): X – The subject is not located in the 100 year flood plain according
to flood map number 12057C0216H, dated August 28, 2008.
Parking Lot:There is a paved parking lot with approximately 135 lined parking
spaces and overall parking appears adequate.
Landscaping: Overgrown landscaping that has not been well kept and managed
since the subject became vacant.
Shape and Frontage: The site is rectangular in shape and fronts E. Busch
Boulevard.
Ingress/Egress: There is one curb cut on E. Busch Boulevard.
Topography and drainage: The site is primarily level. The topography of the site is
not seen as an impediment to the development of the property. During our
inspection of the site, we observed no drainage problems and assume that none
exist.
Soils: A soils analysis for the site has not been provided for the preparation of this
appraisal. In the absence of a soils report, it is a specific assumption that the site
has adequate soils to support the highest and best use.
Easements and encroachments:Based on an inspection and review of the subject
deed, the property does not appear to be adversely affected by any easements or
encroachments. It is recommended that the client/reader obtain a current title
policy outlining all easements and encroachments on the property, if any, prior to
making a business decision.
Covenants conditions and restrictions:There are no known covenants, conditions
and restrictions impacting the site that are considered to affect the marketability or
highest and best use.
Utilities and services:The site is within the jurisdiction of Hillsborough County and is
provided the following municipal services:
-Police
-Fire
-Garbage collection
-Water
-Electricity
-Sanitary Sewer
-Storm Sewer
-Telephone
Adjacent properties:The adjacent land uses are summarized as follows:
North: Commercial
South:Commercial/Residential
East: Busch Gardens
West:Residential
The subject is improved with a 7,937 SF, 1-story single tenant restaurant building.
The improvements are brick and drywall interior walls, masonry construction, built
up tar and gravel roof, masonry stucco exterior, on a concrete slab foundation.
The interior improvements in the dining are a mixture of ceramic tile and exposed
concrete slab (carpet has been removed), a mixture of brick/drywall/bead board
walls, exposed truss ceilings and suspended light fixtures.
The interior improvements of the kitchen area are ceramic tile floors, a mixture of
ceramic tile and vinyl walls, exposed ceilings (ceiling tiles removed) and fluorescent
lighting.
There are also 2 bathrooms with 7 fixtures each. The finish includes ceramic tile
flooring with ceramic tile/ drywall walls and suspended ceiling tile ceilings.
NOTE: A portion of the ceiling in the dining room and the majority of the ceiling in
the kitchen area is missing. The previous tenant removed most of the ceiling and
removed the wiring that ran to the three (3) electrical boxes (there is currently no
electricity). They also took all the FF&E including stoves, dishwashers, etc. The
building is basically in a shell form where the buyer will have to replace a majority of
the interior finish.
Drawings and descriptions of the subject’s improvements are provided in the
following pages:
DESCRIPTION OF THE IMPROVEMENTS
Building type: Restaurant
Number of stories: 1 story
Year Built: 1996
Occupancy type: Building is 100% owner occupied and is currently vacant.
Overall condition: Subject has been gutted by the previous tenant and is in below
average condition for the area.
Building size: 7,937 SF
Floor area ratio: 8.90%
Foundation: Concrete slab
Basement: None
Superstructure: Masonry frame
Exterior walls: Masonry stucco
Windows: Aluminum casement
Roof: Flat, built up tar & gravel
Ceiling material: Open joist
Interior walls: Mixture of brick/drywall/bead board. Kitchen is vinyl and ceramic tile.
Floor: Exposed concrete slab and ceramic tile.
HVAC: Gas forced air furnace and central air conditioning
Utility meters: Single tenant building with one electric meter and one natural gas
meter.
Elevators: None
Restrooms: Two restrooms with 7 fixtures each.
Functional utility: The subject is in below average condition, butis well suited for its
use as a restaurant.
Special features: None
ENVIRONMENTAL ISSUES
American Appraisers has not observed and is not qualified to detect, the existence
of potentially hazardous material or underground storage tanks which may be
present on or near the site. The existence of hazardous materials or underground
storage tanks may affect the value of the property. The presence of substances
such as asbestos, urea formaldehyde foam insulation or other potentially
hazardous materials may affect the value of the property. For this appraisal,
American Appraisers has specifically assumed that the property is not affected by
any hazardous materials that may be present on or near the property.
The subject was built after 1978 and as such should not contain hazardous
building materials such as asbestos, lead paint or urea formaldehyde foam
insulation.
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.
HIGHEST AND BEST USE ANALYSIS
Highest and best use is defined as follows:
The reasonably probable and legal use of vacant land or an improved property,
which 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
profitability .
Highest and best use gives consideration to the possible, physical, feasible, legal
and permitted uses which would provide the highest net return to the owner of the
site under current market conditions.
Physically Possible: The physical characteristics of a site can affect the uses to
which it can be put. These characteristics can include size, location, shape,
topography, easements, utility availability, and surrounding property uses.
Legally Permissible: Except for a legally non conforming property, the first step in
determining what is legally permissible is to analyze private restrictions, zoning and
building codes, historic district controls, and environmental regulations.
Financially Feasible: The uses that are physically possible and legally permissible
must be analyzed further to determine those that are likely to produce a positive
return greater than the combined income needed to satisfy operating expenses,
financial expenses, and capital amortization. All uses that are expected to produce
a positive return are regarded as financially feasible.
Maximally Productive: Among financially feasible uses, the use that reflects the
highest rate of return (or value) constitutes the highest and best use.
Implied in this definition is that the determination of highest and best use takes into
account the contribution of a specific use to the community and community
development goals as well as the benefits of that use to individual property
owners. Hence, in certain situations, the highest and best use of land may be for
parks, greenbelts, preservation, conservation, wildlife habitats, and the like.
An additional implication is that the determination of highest and best use results
from the appraiser's judgment and analytical skills; that is, that the use determined
from analysis represents an opinion, not necessarily a fact to be found. In
appraisal practice, the concept of highest and best use represents the premise
upon which value is based.
HIGHEST AND BEST USE OF SUBJECT
Legally Permissible:The subject’s CG-General Commercial & PD-Planned
Development zoning allows for a variety of types of commercial uses. The existing
improvements conform to the prevailing zoning codes, surrounding land use
patterns, and are not restricted by any known deed restrictions; therefore, the
subject improvements are legally permissible.
Physically Possible:Currently the property is an improved site that is 89,180 SF or
2.05 acres in size. The physical characteristics of the subject’s site are adequate
to accommodate improvements, which do not require a larger land size.
The subject is currently improved with a restaurant building with 7,937 SF total
GBA for an 8.90% FAR. The improvements were constructed in 1996 and there
are approximately 135 lined parking spaces with the majority being on the west side
of the parcel.
Financially Feasible:The site is currently improved with a single tenant facility
constructed for restaurant use. It is unlikely that a buyer would purchase the
property with the intention of razing the existing improvements and then replacing
them with new ones. The current improvements have an effective age of 20 years
and are well suited for a restaurant user.
Maximally Productive:The improvements currently in place are consistent with the
highest and best use as though vacant, and the value associated with the existing
improvements is higher than the value of the site as though vacant. Therefore, as
improved, the current improvements represent the highest and best use for the
subject.
As it is highly unlikely that a future buyer would purchase this property and replace
the existing improvements, and as the existing improvements do contribute to the
overall value of the property, the highest and best use of the subject is for a
continuation of its existing use as a restaurant.
The subject is currently owner occupied and vacant. With that being said, the
subject property would also have good market appeal to an investor. Therefore,
the subject will have appeal for both the investor and the owner-occupant. The
size of the subject improvements is well suited for an owner- occupant user as well
as an investor.
SALES COMPARISON APPROACH
The Sales Comparison approach is essential to almost every appraisal of the value
of real property. The application of this approach produces an estimate of value of
a property by comparing it with similar properties of the same type and class which
have been sold recently or are currently offered for sale in the same or competing
areas. The sales prices of properties judged to be comparable tend to set the
range in which the value of the subject property will fall. Further consideration of
the comparative data will indicate to the appraiser a figure representing the value
of the subject; that is, the probable price at which it could be sold by a willing seller
to a willing buyer as of the date of the appraisal. The data involved in the
application of this process concerns comparable properties as well as the subject
property, and will vary with the type of property.
In appraisal practice, the sales comparison approach is a set of procedures in
which a value indication is derived by comparing the property being appraised to
similar properties that have been sold recently, then applying appropriate units of
comparison and making adjustments to the sale prices of the comparables based
on the elements of comparison. The sales comparison approach may be used to
value improved properties, vacant land, or land being considered as though
vacant: it is the most common and preferred method of land valuation when
adequate supply of comparable sales are available.
ANALYSIS OF COMPARABILITY TO SUBJECT PROPERTY
QUALITY AND QUANTITY OF DATA:Several comparable sales were considered in
the sales comparison approach and five were utilized in the analysis.
The first adjustment considered was for changes in market conditions over time.
The comparable sales were very recent and are considered to reflect current
market conditions. Therefore the comparable sales are given a market conditions
adjustment of 0.00%.
The second adjustment considered is for property rights conveyed, financing
terms, conditions of sale, and expenditures after sale. No adjustments were
required for any of the comparables.
The comparables were then adjusted based on their age (depreciation) and
differences in income. No adjustments were required for any of the comparables.
Next the comparables were analyzed for differences in physical attributes such as:
location, size, age and condition, FAR, and building design. In the qualitative
analysis the determined conclusions are then summed and an overall ranking is
chosen to represent the comparable. The concluded ranks are inferior, similar,
and superior.
Comparable 1 is the sale of a free standing restaurant located on North 56th Street
in Tampa, FL and is currently zoned CG. The improvements set on 0.41 Acres and
were originally constructed in 1972. The ceiling height is approximately 10’. The
buyer continues to use this facility as a restaurant (Stefano Greek-Italian
Restaurant). There were no adjustments warranted for this comparable sale and is
ranked similar to the subject.
Comparable 2 is the sale of a free standing restaurant located on East Busch
Boulevard in Tampa, FL and is currently zoned CG & PD. The improvements set
on 1.54 Acres and were originally constructed in 1985. The ceiling height is
approximately 12’. The buyer continues to use this facility as a restaurant (Sonny’s
BBQ). There were no adjustments warranted for this comparable sale and is
ranked similar to the subject.
Comparable 3 is the sale of a free standing restaurant located on East Busch
Boulevard in Tampa, FL and is currently zoned CG & PD. The improvements set
on 0.76 Acres and were originally constructed in 1977. The ceiling height is
approximately 12’. The buyer continues to use this facility as a restaurant (The
Gardens Restaurant and Pizzeria). There were no adjustments warranted for this
comparable sale and is ranked similar to the subject.
Comparable 4 is the sale of a free standing restaurant located on East Busch
Boulevard in Tampa, FL and is currently zoned CG. The improvements set on 0.32
Acres and were originally constructed in 1973. The ceiling height is approximately
12’. The buyer continues to use this facility as a restaurant (Dunkin’ Donuts).
There were no adjustments warranted for this comparable sale and is ranked
similar to the subject.
Comparable 5 is the active listing of a free standing restaurant &
grocery/convenience store (2-tenant facility) located on East Busch Boulevard in
Tampa, FL and is currently zoned CG & PD. The improvements set on 0.48 Acres
and were originally constructed in 2007. The ceiling height is approximately 12’.
There were no adjustments warranted for this comparable sale and is ranked
similar to the subject.
The adjusted unit value of the comparable sales are as follows:
Comparable 1 $161.05 Per SF
Comparable 2 $152.66
Comparable 3 $167.22 Comparable 4 $125.00
Comparable 5 $165.86
The above comparable sales indicate an adjusted value ranging from $125.00 per
SF to $167.22 per SF for the subject property. The adjusted comparables have a
median of $161.05 and a central tendency of $154.36 per square foot of building
improvements.
Comparables 2 and 5 were most similar to the subject property and were given the
most weight in this analysis. Therefore, a price per SF near the median of $161.00
is chosen to represent the subject and is considered well supported.
Line item adjustments are then accounted for; -$373,039 is subtracted for the cost
to finish the interior of the improvements and repair the electrical systems.
7,937 SF @ $161.00 per SF=$1,277,857
Finish Cost- 7,937 SF @ $47.00.00 per SF= $373,039
Indicated Value- $900,000 Rounded
,
VALUE INDICATED BY SALES COMPARISON APPROACH- $900,000
RESTAURANT BUILDING
4115 E. BUSCH BOULEVARD
TAMPA, FL 33617
HISTORY OF SUBJECT:
According to the deed record, the current owner is Moiden, Inc who received this
property as a result of foreclosure on July 30, 2010 from Campos Holding, LLC.
Campos Holding, LLC originally purchased this property from Moiden, Inc for
$1,700,000 in March 2006.
The subjects most recent lease ended approximately one year ago and is now
currently vacant. It appears the previous owner/tenant began a renovation to
include a new ceiling and electric service, but left before the new ceiling and
service could be a result. Regardless, the tenant defaulted on the lease
agreement and removed the FF&E (stoves, dishwashers, etc.), the wiring that runs
to the three (3) electrical boxes, and the suspended ceiling tile/ceiling frame out of
the building. The subject does not currently have electricity due to the removal of
the wiring that runs to the three (3) electric boxes. The current owner replaced the
roof less than 12 months prior to this appraisal.
The subject is not known to be currently listed for sale or lease, and there have
been no other known real estate transactions in the past three years.
REGIONAL ANALYSIS OF TAMPA, FLORIDA
The subject is influenced in a general manner by the economic, political, physical
and social characteristics of the Tampa Metropolitan Statistical Area (MSA). An
MSA is a geographic area with a significant population nucleus, along with any
adjacent communities that have a high degree of economic and social integration
with that nucleus.
The value of real property is influenced by the interaction of four basic forces.
These forces include social trends, economic circumstances, environmental
conditions, and governmental controls and regulations. The interaction of these
four forces influences the value of every parcel of real estate in the market.
The Tampa MSA is part of a metropolitan statistical area that includes the cities of
St. Petersburg and Clearwater. Counties included in the Tampa MSA are
Hillsborough (of which Tampa is the county seat), Pasco, Hernando, and Pinellas.
St. Petersburg and Clearwater are located in Pinellas County. Unless stated
otherwise, the data in this report will focus on Tampa and Hillsborough County,
rather than on the entire Tampa/St. Petersburg/Clearwater area.
Social Trends: Social forces are trends that are exerted primarily through
population characteristics. Real property values are affected not only by population
changes and characteristics, but also by various forms of human activity. In 2010,
Tampa/Hillsborough County demographics broke down as follows:
Race
White 53%
Hispanic 23%
African-American 35%
Mixed race (non-Hispanic) 3.5%
Other (non-Hispanic) 5%
The sexes were divided almost evenly, with 51% of the county’s population being
female. Out of the more than 400,000 households, 65% had families.1
Population and Area:
Population growth trends influence employment growth, income levels, and many
other key demand parameters analyzed in determining commercial real estate
productivity.
The census has provided population data from 2010, and the projections are
considered reliable. The Tampa/St. Petersburg/Clearwater MSA ranks as the 19th
largest MSA in the United States, second in the Southeast, and the largest in
Florida. The population for the Tampa MSA in 2010 was 4,228,855. Between
2000 and 2006, the MSA population increased by 2.47% a year. Hillsborough
County represents more than 40% of the total population of the Tampa MSA. In
addition to being the MSA’s largest county in terms of population, it is also the
locale for the highest number of households and the highest effective buying
income.
Higher Education:
Institutions of higher learning typically are not as vulnerable to economic
downswings, and they help to provide an area with a more solid employment base.
Noted universities and colleges in Tampa/Hillsborough County are the University of
South Florida (the second largest university in the Southeast), University of Tampa,
Hillsborough Community College, Eckerd College, Tampa Technical Institute, and
University of Phoenix – Tampa Main Campus. Throughout the seven-county region
are located approximately twenty more institutions of higher learning.
Recreational and Regional Attractions:
Recreational and regional attractions enhance an area’s quality of life. These
activities may also have a significant economic impact on an area by increasing the
demand for services and retail trade created by visitors.
The Tampa area’s physical attributes have defined its culture from the onset of its
establishment. Its warm climate and waterfront location have had obvious
influences on every aspect of life in Tampa. Tampa Bay and the Gulf of Mexico
(est. 25 miles west of the Tampa CBD) provide limitless opportunities for boating,
fishing, or just relaxing on the famous Florida beaches. The Port of Tampa is
home to an increasing number of cruise ships and is becoming one of the fastest-
growing cruise ports in the United States.
In addition to the cornucopia of water-related recreational opportunities in the
Tampa area, residents and visitors can choose from a broad spectrum of other
activities and attractions. Hillsborough County alone houses sixteen regional and
state parks, including Lake Park, Upper Tampa Bay Park, Hillsborough River State
Park, and Little Manatee River State Park. There are eleven major festivals held in
Hillsborough County each year, including the Florida Strawberry Festival, the
Florida State Fair, the Gasparilla Festival of Arts, Fiesta Day, and Bern’s Wine
Fest. Major tourist attractions include Busch Gardens, Ybor City, the Lowry Park
Zoo, the Florida Aquarium, and Adventure Island.
The arts are alive and thriving in the Tampa area. Two new jewels in its crown are
the Tampa Museum of Art and the Tampa Bay Performing Arts Center, where one
can enjoy a wide variety of performances, from ballets to plays to popular artists to
the Florida Orchestra. The Tampa area is home to 26 other museums and
performance halls of note, including the Florida Holocaust Museum, the Museum of
Science and History, the Children’s Museum of Tampa, the Museum of Fine Arts,
the Bishop Planetarium, the Bayfront Center/Mahaffey Theater, the Ruth Eckerd
Hall, and the Tampa Theatre.
The Tampa area provides a stimulating environment for professional sports.
Tampa is, of course, home to the Tampa Bay Buccaneers, the 2003 Super Bowl
Champions. Tropicana Field is home of the Tampa Bay Devil Rays baseball team.
Pro hockey is represented by the Tampa Bay Lightning (2004 Stanley Cup
Champion), arena football by the Tampa Bay Storm. There are three professional
golf courses, open year-round to the public.
Economic Forces:
Economic forces are the fundamental relationships between current and
anticipated supply and demand and the economic activities in which the population
participates in order to satisfy its wants, needs, and demands through its purchase
power.
The national recession that began in the fall of 1999 contributed to a nationwide
weakness in the manufacturing sector. The events of September 11, 2001 were a
major cause of this weakness, as market participants stood back and waited to see
what would happen next. The recession’s effects on the Tampa area are reflected
in the area unemployment figures from 2001 to 2002 – an increase of .9%. The
downturn was temporary, minor, and somewhat indirect due to the fact that
manufacturing does not play a major role in the area’s overall economic picture,
ranking sixth out of ten area industry types. 1
The economic climate in the Tampa/Hillsborough County area is thriving. The area
boasts a healthy balance of many different types of businesses and industries,
giving it strength “across the board”, rather than being dependent upon one or two
major industries. See “Industries and Employment” for more information on the
economic climate in the Tampa area.
Income:
The economic vitality of an area is an important consideration in forecasting the
demand and potential income for commercial real estate. Income levels provide an
indication of an area’s economic vitality since they reflect an area’s economic
growth and its residents’ standards of living.
Per capita income for Hillsborough County in 2010 was $20,142, up from $16,704
in 2000 – an increase of nearly 17%. Median household income for Hillsborough
County in 2010 was $38,186, up from $30,441 in 2000- an increase of nearly 20%.
Average household income for Hillsborough County in 2010 was $49,054, up from
$40,795 in 2000- an increase of nearly 17%.1
Industries and Employment:
The distribution of employment and the overall unemployment rate help determine
the economic character of an area. As mentioned above, the Tampa area’s vital
economy can be attributed to its wide variety of many healthy business and
industries. Certainly one of the strongest factors in the overall economic picture is
the Port of Tampa. Please see “Other Industrial Transportation” for more
information on the Port of Tampa.
Another very strong contributor to the local economy is the agriculture industry. In
1997, Hillsborough County was home to over 2,600 farms. In 2000, it ranked third
in the state for total net farm income, at over $171 million. 1
The corporate climate in the Tampa area is welcoming and profitable. It has
attracted hundreds of businesses in the last decade – in particular, those in the
communications and finance industries.
Hillsborough County’s top five major public and private employers are listed below,
along with the number of employees:
Hillsborough Co. School District – 21,426
MacDill Air Force Base – 19,000
Verizon Communications – 14,000
University of South Florida – 12,477
Hillsborough Co. Government – 10,886
The regional top five private sector employers are as follows:
Publix Super Markets, Inc. – 23,248
Baycare - 17,000
Verizon Communications – 14,000
Danka Business Systems PLC – 9,500
Lincare Holdings – 6,1002
Highway Transportation:
Highway accessibility is a primary consideration in planning an area’s future growth
and development. The Tampa metropolitan area is accessed via I-75, a major
north-south corridor that connects the Michigan/Canada border to Detroit,
Cincinnati, Atlanta, and Orlando to Tampa, extending down to Naples in South
Florida. The Hillsborough County I-75 corridor contains 39 miles of corporate
campuses. The corridor’s residential population is estimated at 300,000. I-275
serves as a local beltway around the metropolitan area. I-4 is a major Florida
corridor extending from Tampa in a northwesterly direction through Orlando and
ending at Daytona Beach. The I-4 corridor connects with I-95, another major north-
south corridor serving the entire Eastern Seaboard of the United States, from the
Maine/Canada border to Miami. Driving time between Orlando and Tampa is
roughly 1.25 hours, an estimated 7.5 hours between Atlanta and Tampa.
Public Transportation:
The Tampa/Hillsborough County area is serviced by the HARTline (Hillsborough
Area Regional Transit), a bus system linking major metropolitan points to both the
central business district and other suburban areas.
Air Transportation:
The Tampa International Airport serves 58 domestic destinations daily via nonstop
flights and 14 international destinations. Out of 149 national airports, Tampa
International is ranked 29th busiest. The Conde´ Nast Traveler has ranked the
airport as No. 1 in the nation and No. 3 in the world as the best airport facility in
terms of customer satisfaction.1 In addition, Tampa is served by two regional
airports, Peter O. Knight Airport and Vandenberg Airport. These two smaller
airports facilitate ingress and egress for smaller, private jets and turbo-props.
Albeit much smaller than the Tampa International Airport, the St.
Petersburg/Clearwater International Airport in Pinellas County serves as an
auxiliary facility for the region. It is located approximately 18 miles to the west of
the Tampa CBD.2
Other Industrial Transportation:
Without question, the largest industrial transportation hub for the Tampa area is
the Port of Tampa, the largest seaport in Florida. Through it passes nearly half of
all seaborne cargo that enters or leaves the state.. The port supports 93,000 jobs
for the area. In addition, the Tampa area is served by the CSX railroad system,
with approximately 300 trains weekly connecting Tampa with most major United
States markets.2
Environmental Forces /Climate:
Environmental forces are both natural and manmade forces that influence real
property values. Some environmental forces include climactic conditions, natural
barriers to future development, primary transportation systems, and the nature and
desirability of the immediate areas surrounding a property.
The Tampa area enjoys a warm, sub-tropical climate year-round. The topography
is fairly flat to rolling (eastern Hillsborough County). Humidity is usually fairly high.
The average minimum and maximum winter temperatures are 51.9 and 71.5
degrees, respectfully; average minimum and maximum summer temperatures are
74 and 90 degrees. Annual minimum temperature is 63.5 degrees; annual
maximum is 81.7. Average annual precipitation is 47.62 inches, the heaviest
rainfall occurring June through September. The entire state of Florida, is, of
course, heavily affected by periodic tropical storms and hurricanes that typically
occur in the summer and early fall months. These figures are from the period
3/25/1900 through 3/31/2010.3 Please see the topographical map of the State of
Florida on the following page.
Governmental Forces:
Governmental, political, and legal actions at all levels have an impact on property
values. The legal climate of a particular time or in a particular place may
overshadow the natural market forces of supply and demand. The State of Florida
mandates very high standards in building and development due to the tropical
storms and hurricanes – and their destruction – that are a fact of life in Florida. In
Hillsborough County, DRIs (Developments of Regional Impact) have been
implemented very successfully in several areas. They are large, thoughtfully
planned projects that serve local businesses and residents with world-class
facilities and amenities.
Utilities:
The availability of utilities is extremely important to the future development of any
community. Electricity and natural gas are available to residents and businesses in
Tampa through Tampa Electric Company and Peoples Gas. Water and sewage
are maintained by the Hillsborough County Water Department.
Outlook:
Our review of the above data indicates that the Tampa metropolitan area has an
impressively stable economy, evidenced by increasing income and population
levels, the steady creation of new jobs and influx of corporations, and low
unemployment rates. Metropolitan Tampa also features limitless regional
attractions and a world-class transportation system that includes land, air, rail, and
water. In conclusion, the economic outlook for the Metro Tampa MSA is very
favorable for the overall success of the subject.
SUBJECT MARKET AREA AND ANALYSIS:
Neighborhood is defined as follows: A group of complementary land uses; a
congruous grouping of inhabitants, buildings, or business enterprises.
The subject property is located in the city of Tampa, an incorporated community
within the northeastern portion of Hillsborough County, Florida, approximately five
miles northeast of the Tampa Central Business District (CBD) on E. Busch
Boulevard. However, the subject is located within two miles of the southeast
boundary of the city of Temple Terrace and for purposes of this report is
considered to be in the general neighborhood of the Temple Terrace area.
The neighborhood is easily accessible with good access to the interstate system.
The subject site is 2.75 miles east of I-275, 4.10 miles north of I-4, 4.60 miles west
of I-75, 0.20 miles east of U.S. 41 (40th St.), and 0.75 miles west of State Route
583. The subject site is approximately 5.89 miles northeast of the Tampa CBD.
Busch Gardens Theme Park is .2 miles northwest of the subject and the
Hillsborough River is approximately 0.40 miles southeast of the subject site.
The neighborhood boundaries are generally described as Bruce B. Downs
Boulevard to the north, I-75 to the east, I-4 to the south and I-275 to the west.
With little undeveloped land, numerous types of building improvements are present
within the neighborhood and include single and multi-family residential, retail,
commercial and office. Styles are typically traditional with a wide spectrum of
quality characteristics. Residential properties are found along interior streets in a
number of residential subdivisions. These properties range from single family
residences to multi-family properties. The homes in the immediate area of the
subject property consist of medium size single family dwellings.
The outlook for the neighborhood is for relatively stable performance with
continued commercial property improvement and re-development over the next
several years. This is considered to have a positive influence on value. As a
result, the demand for existing developments and underdeveloped/undeveloped
land is expected to continue to improve.
IDENTIFICATION OF THE SUBJECT:
The subject property is recorded in Deed Book 20035 Page 1370. The property is
further identified as PIN: A-21-28-19-43U-000007-00001.0 with a mailing address
of 4115 E. Busch Boulevard, Tampa, FL 33617, in the county of Hillsborough.
ZONING:
The site is zoned CG-General Commercial & PD-Planned Development. This
zoning has very broad use restrictions including but not limited to: single-family
residential, multi-family residential, condominiums (office and residential), auto
service stations, boarding homes, car wash, churches/institutional, convenience
stores, day care, drug stores, funeral homes, grocery stores, hotels, laundr-o-mat,
libraries, liquor stores, medical laboratories, professional office use, retail,
restaurant-bar. The maximum seating allowed for the subject property as a
restaurant facility is 342 seats according to the Tampa Planning and Zoning office.
ASSESSMENT HISTORY:
The property is assessed by the Hillsborough County PVA at $456,495 land,
$592,667 improvements, for a total of $1,049,162.
TAXES:
The property is subject to the city of Tampa and the Hillsborough County tax rates
of 2.2272 per $100 of assessed value. By state statute, properties in Florida are
required by law to be assessed, for tax purposes, at 100% of market value. If the
property sold, the assessment would likely be updated; in such cases, the PVA
typically bases the following year's assessment on the sale price. If taxes are
calculated based on the final value concluded in this report of $900,000, the
estimated tax burden for the following year would be $20,045.
REASONABLE EXPOSURE TIME
In the Statement on Appraisal Standards No.6 (SMT-6), Exposure time is 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 estimate
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 reasonable exposure period is a function of
price, time and use.
SUBJECT PROPERTY EXPOSURE TIME:
Based on interviews with brokers and others involved with some of the comparable
sales indicates that approximately 12 to 18 months is reasonable exposure time for
this type of property at the market value level estimated in this report. Based on
this information, it is our opinion that the estimated reasonable exposure time for
the subject property would have been 12 to 18 months prior to the effective date of
this appraisal.
SITE SUMMARY
Location: The subject is located on E. Busch Boulevard.
Gross Site Area: 89,180 SF or 2.05 Acres
Primary Road Frontage: E. Busch Boulevard
Secondary Road Frontage: N. Orangeview Avenue
Additional Road Frontage: None
Zoning District: CG-General Commercial & PD-Planned Development
Flood Map Panel No. & Date: 12057C0216H
Flood Zone(s): X – The subject is not located in the 100 year flood plain according
to flood map number 12057C0216H, dated August 28, 2008.
Parking Lot:There is a paved parking lot with approximately 135 lined parking
spaces and overall parking appears adequate.
Landscaping: Overgrown landscaping that has not been well kept and managed
since the subject became vacant.
Shape and Frontage: The site is rectangular in shape and fronts E. Busch
Boulevard.
Ingress/Egress: There is one curb cut on E. Busch Boulevard.
Topography and drainage: The site is primarily level. The topography of the site is
not seen as an impediment to the development of the property. During our
inspection of the site, we observed no drainage problems and assume that none
exist.
Soils: A soils analysis for the site has not been provided for the preparation of this
appraisal. In the absence of a soils report, it is a specific assumption that the site
has adequate soils to support the highest and best use.
Easements and encroachments:Based on an inspection and review of the subject
deed, the property does not appear to be adversely affected by any easements or
encroachments. It is recommended that the client/reader obtain a current title
policy outlining all easements and encroachments on the property, if any, prior to
making a business decision.
Covenants conditions and restrictions:There are no known covenants, conditions
and restrictions impacting the site that are considered to affect the marketability or
highest and best use.
Utilities and services:The site is within the jurisdiction of Hillsborough County and is
provided the following municipal services:
-Police
-Fire
-Garbage collection
-Water
-Electricity
-Sanitary Sewer
-Storm Sewer
-Telephone
Adjacent properties:The adjacent land uses are summarized as follows:
North: Commercial
South:Commercial/Residential
East: Busch Gardens
West:Residential
The subject is improved with a 7,937 SF, 1-story single tenant restaurant building.
The improvements are brick and drywall interior walls, masonry construction, built
up tar and gravel roof, masonry stucco exterior, on a concrete slab foundation.
The interior improvements in the dining are a mixture of ceramic tile and exposed
concrete slab (carpet has been removed), a mixture of brick/drywall/bead board
walls, exposed truss ceilings and suspended light fixtures.
The interior improvements of the kitchen area are ceramic tile floors, a mixture of
ceramic tile and vinyl walls, exposed ceilings (ceiling tiles removed) and fluorescent
lighting.
There are also 2 bathrooms with 7 fixtures each. The finish includes ceramic tile
flooring with ceramic tile/ drywall walls and suspended ceiling tile ceilings.
NOTE: A portion of the ceiling in the dining room and the majority of the ceiling in
the kitchen area is missing. The previous tenant removed most of the ceiling and
removed the wiring that ran to the three (3) electrical boxes (there is currently no
electricity). They also took all the FF&E including stoves, dishwashers, etc. The
building is basically in a shell form where the buyer will have to replace a majority of
the interior finish.
Drawings and descriptions of the subject’s improvements are provided in the
following pages:
DESCRIPTION OF THE IMPROVEMENTS
Building type: Restaurant
Number of stories: 1 story
Year Built: 1996
Occupancy type: Building is 100% owner occupied and is currently vacant.
Overall condition: Subject has been gutted by the previous tenant and is in below
average condition for the area.
Building size: 7,937 SF
Floor area ratio: 8.90%
Foundation: Concrete slab
Basement: None
Superstructure: Masonry frame
Exterior walls: Masonry stucco
Windows: Aluminum casement
Roof: Flat, built up tar & gravel
Ceiling material: Open joist
Interior walls: Mixture of brick/drywall/bead board. Kitchen is vinyl and ceramic tile.
Floor: Exposed concrete slab and ceramic tile.
HVAC: Gas forced air furnace and central air conditioning
Utility meters: Single tenant building with one electric meter and one natural gas
meter.
Elevators: None
Restrooms: Two restrooms with 7 fixtures each.
Functional utility: The subject is in below average condition, butis well suited for its
use as a restaurant.
Special features: None
ENVIRONMENTAL ISSUES
American Appraisers has not observed and is not qualified to detect, the existence
of potentially hazardous material or underground storage tanks which may be
present on or near the site. The existence of hazardous materials or underground
storage tanks may affect the value of the property. The presence of substances
such as asbestos, urea formaldehyde foam insulation or other potentially
hazardous materials may affect the value of the property. For this appraisal,
American Appraisers has specifically assumed that the property is not affected by
any hazardous materials that may be present on or near the property.
The subject was built after 1978 and as such should not contain hazardous
building materials such as asbestos, lead paint or urea formaldehyde foam
insulation.
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.
HIGHEST AND BEST USE ANALYSIS
Highest and best use is defined as follows:
The reasonably probable and legal use of vacant land or an improved property,
which 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
profitability .
Highest and best use gives consideration to the possible, physical, feasible, legal
and permitted uses which would provide the highest net return to the owner of the
site under current market conditions.
Physically Possible: The physical characteristics of a site can affect the uses to
which it can be put. These characteristics can include size, location, shape,
topography, easements, utility availability, and surrounding property uses.
Legally Permissible: Except for a legally non conforming property, the first step in
determining what is legally permissible is to analyze private restrictions, zoning and
building codes, historic district controls, and environmental regulations.
Financially Feasible: The uses that are physically possible and legally permissible
must be analyzed further to determine those that are likely to produce a positive
return greater than the combined income needed to satisfy operating expenses,
financial expenses, and capital amortization. All uses that are expected to produce
a positive return are regarded as financially feasible.
Maximally Productive: Among financially feasible uses, the use that reflects the
highest rate of return (or value) constitutes the highest and best use.
Implied in this definition is that the determination of highest and best use takes into
account the contribution of a specific use to the community and community
development goals as well as the benefits of that use to individual property
owners. Hence, in certain situations, the highest and best use of land may be for
parks, greenbelts, preservation, conservation, wildlife habitats, and the like.
An additional implication is that the determination of highest and best use results
from the appraiser's judgment and analytical skills; that is, that the use determined
from analysis represents an opinion, not necessarily a fact to be found. In
appraisal practice, the concept of highest and best use represents the premise
upon which value is based.
HIGHEST AND BEST USE OF SUBJECT
Legally Permissible:The subject’s CG-General Commercial & PD-Planned
Development zoning allows for a variety of types of commercial uses. The existing
improvements conform to the prevailing zoning codes, surrounding land use
patterns, and are not restricted by any known deed restrictions; therefore, the
subject improvements are legally permissible.
Physically Possible:Currently the property is an improved site that is 89,180 SF or
2.05 acres in size. The physical characteristics of the subject’s site are adequate
to accommodate improvements, which do not require a larger land size.
The subject is currently improved with a restaurant building with 7,937 SF total
GBA for an 8.90% FAR. The improvements were constructed in 1996 and there
are approximately 135 lined parking spaces with the majority being on the west side
of the parcel.
Financially Feasible:The site is currently improved with a single tenant facility
constructed for restaurant use. It is unlikely that a buyer would purchase the
property with the intention of razing the existing improvements and then replacing
them with new ones. The current improvements have an effective age of 20 years
and are well suited for a restaurant user.
Maximally Productive:The improvements currently in place are consistent with the
highest and best use as though vacant, and the value associated with the existing
improvements is higher than the value of the site as though vacant. Therefore, as
improved, the current improvements represent the highest and best use for the
subject.
As it is highly unlikely that a future buyer would purchase this property and replace
the existing improvements, and as the existing improvements do contribute to the
overall value of the property, the highest and best use of the subject is for a
continuation of its existing use as a restaurant.
The subject is currently owner occupied and vacant. With that being said, the
subject property would also have good market appeal to an investor. Therefore,
the subject will have appeal for both the investor and the owner-occupant. The
size of the subject improvements is well suited for an owner- occupant user as well
as an investor.
SALES COMPARISON APPROACH
The Sales Comparison approach is essential to almost every appraisal of the value
of real property. The application of this approach produces an estimate of value of
a property by comparing it with similar properties of the same type and class which
have been sold recently or are currently offered for sale in the same or competing
areas. The sales prices of properties judged to be comparable tend to set the
range in which the value of the subject property will fall. Further consideration of
the comparative data will indicate to the appraiser a figure representing the value
of the subject; that is, the probable price at which it could be sold by a willing seller
to a willing buyer as of the date of the appraisal. The data involved in the
application of this process concerns comparable properties as well as the subject
property, and will vary with the type of property.
In appraisal practice, the sales comparison approach is a set of procedures in
which a value indication is derived by comparing the property being appraised to
similar properties that have been sold recently, then applying appropriate units of
comparison and making adjustments to the sale prices of the comparables based
on the elements of comparison. The sales comparison approach may be used to
value improved properties, vacant land, or land being considered as though
vacant: it is the most common and preferred method of land valuation when
adequate supply of comparable sales are available.
ANALYSIS OF COMPARABILITY TO SUBJECT PROPERTY
QUALITY AND QUANTITY OF DATA:Several comparable sales were considered in
the sales comparison approach and five were utilized in the analysis.
The first adjustment considered was for changes in market conditions over time.
The comparable sales were very recent and are considered to reflect current
market conditions. Therefore the comparable sales are given a market conditions
adjustment of 0.00%.
The second adjustment considered is for property rights conveyed, financing
terms, conditions of sale, and expenditures after sale. No adjustments were
required for any of the comparables.
The comparables were then adjusted based on their age (depreciation) and
differences in income. No adjustments were required for any of the comparables.
Next the comparables were analyzed for differences in physical attributes such as:
location, size, age and condition, FAR, and building design. In the qualitative
analysis the determined conclusions are then summed and an overall ranking is
chosen to represent the comparable. The concluded ranks are inferior, similar,
and superior.
Comparable 1 is the sale of a free standing restaurant located on North 56th Street
in Tampa, FL and is currently zoned CG. The improvements set on 0.41 Acres and
were originally constructed in 1972. The ceiling height is approximately 10’. The
buyer continues to use this facility as a restaurant (Stefano Greek-Italian
Restaurant). There were no adjustments warranted for this comparable sale and is
ranked similar to the subject.
Comparable 2 is the sale of a free standing restaurant located on East Busch
Boulevard in Tampa, FL and is currently zoned CG & PD. The improvements set
on 1.54 Acres and were originally constructed in 1985. The ceiling height is
approximately 12’. The buyer continues to use this facility as a restaurant (Sonny’s
BBQ). There were no adjustments warranted for this comparable sale and is
ranked similar to the subject.
Comparable 3 is the sale of a free standing restaurant located on East Busch
Boulevard in Tampa, FL and is currently zoned CG & PD. The improvements set
on 0.76 Acres and were originally constructed in 1977. The ceiling height is
approximately 12’. The buyer continues to use this facility as a restaurant (The
Gardens Restaurant and Pizzeria). There were no adjustments warranted for this
comparable sale and is ranked similar to the subject.
Comparable 4 is the sale of a free standing restaurant located on East Busch
Boulevard in Tampa, FL and is currently zoned CG. The improvements set on 0.32
Acres and were originally constructed in 1973. The ceiling height is approximately
12’. The buyer continues to use this facility as a restaurant (Dunkin’ Donuts).
There were no adjustments warranted for this comparable sale and is ranked
similar to the subject.
Comparable 5 is the active listing of a free standing restaurant &
grocery/convenience store (2-tenant facility) located on East Busch Boulevard in
Tampa, FL and is currently zoned CG & PD. The improvements set on 0.48 Acres
and were originally constructed in 2007. The ceiling height is approximately 12’.
There were no adjustments warranted for this comparable sale and is ranked
similar to the subject.
The adjusted unit value of the comparable sales are as follows:
Comparable 1 $161.05 Per SF
Comparable 2 $152.66
Comparable 3 $167.22 Comparable 4 $125.00
Comparable 5 $165.86
The above comparable sales indicate an adjusted value ranging from $125.00 per
SF to $167.22 per SF for the subject property. The adjusted comparables have a
median of $161.05 and a central tendency of $154.36 per square foot of building
improvements.
Comparables 2 and 5 were most similar to the subject property and were given the
most weight in this analysis. Therefore, a price per SF near the median of $161.00
is chosen to represent the subject and is considered well supported.
Line item adjustments are then accounted for; -$373,039 is subtracted for the cost
to finish the interior of the improvements and repair the electrical systems.
7,937 SF @ $161.00 per SF=$1,277,857
Finish Cost- 7,937 SF @ $47.00.00 per SF= $373,039
Indicated Value- $900,000 Rounded
,
VALUE INDICATED BY SALES COMPARISON APPROACH- $900,000
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Page Updated: January 10, 2013