APPRAISAL-Connecticut River Greenway Parcel N-BF11011-3.3.2023.pdfBENNETT FRANKLIN REAL ESTATE SERVICES
____________________________________________________________________________________________________
SUITE 203 MEADOW PLACE, 200 NORTH MAIN STREET, EAST LONGMEADOW, MA 01028
(413) 526-0800 FAX (413) 526-0822 www.bennettfranklin.com
APPRAISAL
Parcel N, Elm Court Northampton, MA 01060
Prepared For
Carolyn Misch, AICP
Director of Planning & Sustainability City of Northampton 210 Main Street, Second Floor Northampton, MA 01060
City of Northampton File # Map 13-054 Effective Date of “As Is” Valuation
February 9, 2023
BENNETT FRANKLIN REAL ESTATE SERVICES
____________________________________________________________________________________________________
SUITE 203 MEADOW PLACE, 200 NORTH MAIN STREET, EAST LONGMEADOW, MA 01028
(413) 526-0800 FAX (413) 526-0822 www.bennettfranklin.com
March 3, 2023
Carolyn Misch, AICP
Director of Planning & Sustainability City of Northampton 210 Main Street, Second Floor Northampton, MA 01060
Re: Appraisal Parcel N, Elm Court, Northampton, MA, 01060
Bennett Franklin Appraisal Report # BF11011 City of Northampton File # Map 13-054 Dear Carolyn Misch, AICP:
At your request, for the benefit of City of Northampton (the client) I have inspected the property located at Parcel N, Elm Court, Northampton, MA, 01060. The subject property includes a parcel of land containing 10.67 acres of land. The site is land locked and accessed via an easement. The site is located abutting railroad tracks to the west and the Connecticut River to the east. The site also includes a portion of Canary Island which is
surrounded by the Connecticut River. The site is vacant wooded land with no improvements. The subject property was inspected and photographed on February 9, 2023. The purpose of my inspection and the accompanying analysis is to provide my opinion of the 'as is'
market value of the subject property and have determined the 100% ownership interest of the, Fee Simple interest, as of February 9, 2023. The intended use of the appraisal is to for internal business purposes. The intended users of the report are City of Northampton/client and / or its affiliates.
The analysis and conclusions within this Appraisal are based upon field research, data collected from market participants and public records. The scope of this assignment includes applicable methods of valuation. It is my determination that this appraisal does not result in a misleading or confusing report. It is understood that the client is aware of the scope of this appraisal and is familiar with the subject property and/or the subject
property type.
The accompanying report has been made in accordance with the minimum standards set forth in Title XI of the Financial Institutions Reform, Recovery Act (FIRREA) as
amended and the Uniform Standards of Professional Appraisal Practice. Included in the
report is a description and analysis of the real estate, all pertinent data, valuation methodology, supporting relevant exhibits, and addenda to the report.
As indicated I have inspected the subject property and I have conducted market research
respective to similar properties in the market area. In accordance with the definitions,
certifications and limiting conditions as set forth in this Appraisal, it is my conclusion that the opinion of value determined in this appraisal report is well supported. Based upon the analysis completed it is my opinion that the 100% interest in the "as is" Market Value of the Fee Simple interest in the subject property, as of February 9, 2023 is:
Twelve Thousand Dollars $12,000
Thank you for contacting me for this assignment. If you have any questions concerning my valuation and analysis I may be reached at (413) 526-0800.
Jerome Franklin
MA- Certified General Real Estate Appraiser License #5219, Expires November 9, 2023
TABLE OF CONTENTS
Summary of Property Details.............................................................................................. 5
Description of the Appraisal ............................................................................................... 6 Purpose of the Appraisal ..................................................................................................... 6 Intended Use and Intended User ......................................................................................... 6 Competency Statement ....................................................................................................... 6
Contingent and Limiting Conditions .................................................................................. 6
Certification Statement ....................................................................................................... 8 Qualifications of Jerome Franklin .................................................................................. 9 Scope of Work .................................................................................................................. 10 Definition of Market Value ............................................................................................... 11
Property Rights Appraised ................................................................................................ 11
Ownership of Property / Sales History ............................................................................. 12 Northampton Community Analysis .................................................................................. 12 Neighborhood of Subject Analysis ............................................................................... 14 Site Description ................................................................................................................. 16 Flood Zone: ................................................................................................................... 20
Zoning and Conformity................................................................................................. 21 Assessment and Taxes ...................................................................................................... 23 Highest and Best Use ........................................................................................................ 23 Market Analysis ................................................................................................................ 24 Exposure Period and Marketing Time .............................................................................. 24
Valuation Methodology .................................................................................................... 25 Analyses Applied .......................................................................................................... 25 Sales Comparison Approach – “As Is” - 100% Ownership Interest ................................. 26 Analysis Grid ................................................................................................................ 30 Land Valuation Conclusion .......................................................................................... 33
Final Reconciliation .......................................................................................................... 34 Addenda ............................................................................................................................ 35
Bennett Franklin File # BF11011 Page 5
Summary of Property Details
Location: Parcel N, Elm Court, Northampton, Hampshire County, MA, 01060 Ownership:
50% John F. Skibiski Realty Partnership and 50% The City of
Northampton
Property Rights Appraised: Fee Simple Value Appraised Market Value Date of Report: March 3, 2023
Date of “As Is” Valuation: February 9, 2023 Land Area: 10.67 Acres
Zoning: SR District
Improvements: The site is land locked and accessed via an easement. The site
is located abutting railroad tracks to the west and the Connecticut River to the east. The site also includes a portion of Canary Island which is surrounded by the Connecticut River. The site is vacant wooded land with no improvements.
Highest and Best Use of the Site:
HBU as vacant would be for recreational or conservation use
based on market demand.
Highest and Best Use as Improved: The site is Vacant.
Type of Value: Market Value VALUE INDICATIONS
Land Value: N/A Cost Approach: N/A
Deduction: N/A Sales Comparison Approach: $12,000 Income Approach: Direct Capitalization N/A
Reconciled Value(s): As Is
Market Value Conclusion(s) $12,000
Bennett Franklin File # BF11011 Page 6
Description of the Appraisal This valuation is an Appraisal, which can be used by financial institutions and individuals
subject to Title XI of the Financial Institutions Reform Recovery Act (FIRREA) and the Uniform
Standards of Professional Appraisal Practice (USPAP). This is an Appraisal Report as defined by Uniform Standards of Professional Appraisal Practice under Standards Rule 2-2(a). This format provides a summary or description of the appraisal process, subject and market data and valuation analyses. In consideration of the subject property type and the client’s knowledge of
the subject’s market area it is my determination that this Appraisal is appropriate.
Purpose of the Appraisal The purpose of my inspection and the accompanying analysis is to provide my opinion of the 'as is' market value of the subject property, Fee Simple interest as of February 9, 2023.
Intended Use and Intended User The intended use of the appraisal is to for internal business purposes. The intended users of the report are City of Northampton/client and / or its affiliates. Competency Statement
Based on my knowledge of the subject property and the real estate market that it competes within, I have the knowledge and experience to complete this assignment in accordance with the competency rule in the Uniform Standards of Professional Appraisal Practice (USPAP). Contingent and Limiting Conditions
I assume no responsibility for matters legal in nature, nor do I render any opinion as to the title, which is assumed to be marketable. Any sketches, plats, maps, or other exhibits in this report are included to assist the reader in visualizing the property and I assume no responsibility for their accuracy. I have made no
survey of the property. I am not required to give testimony or appear in court because of having made this appraisal report, with reference to the property in question, unless arrangements have been previously made thereof in writing.
I assume that there are no hidden or unapparent conditions of the property, subsoil or structures which would render it more or less valuable. I assume no responsibility for such conditions or for engineering which might be required to discover such factors. I have assumed that the subject site will or has met all acceptable standards with regard to any
existing Federal or State hazardous waste material laws. Information, estimates and opinions furnished to me and contained in this report were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy can be assumed by us.
The distribution of the total valuation of this report between land and improvements applies only under the existing program of utilization. The separate valuation for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used.
Bennett Franklin File # BF11011 Page 7
The Americans With Disabilities Act of 1990 requires, in some instances, retrofitting of buildings to maximize accessibility by persons with disabilities. Assumptions regarding cost of
compliance by the owner (s) with this civil rights act, which became effective on January 26,
1992, have not been made in arriving at the opinion of value set forth herein. Please contact the undersigned in this regard if such additional work will be required for present purposes. Neither all nor any part of the contents of this report, or copy thereof, shall be used for any
purpose by anyone but the client without the previous written consent of the appraiser and the
client; nor shall it be conveyed by anyone including the client, to the public through advertising, public relations, news, sales, or other media without the written consent and approval of the author, particularly as to valuation conclusions, the identity of the appraiser, or a firm with which he is connected.
I have complied with the appraisal standards as promulgated by the Uniform Standards of Professional Appraisal Practice adopted by the Appraisal Standards Board of the Appraisal Foundation. I who were involved in this assignment worked in tandem and have experience in the valuation
of properties similar to the subject and are competent in the valuation of such properties. I certify that I am appropriately licensed or certified to appraise the subject property in the State in which it is located.
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Certification Statement
I certify that, to the best of my knowledge and belief:
• The statements of fact 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 my personal, impartial, and unbiased professional analyses, opinions and conclusions.
• I have no present or prospective future interest in the property that is the subject of this report, and have no personal interest with respect to the parties involved.
• I have no bias with respect to the property that is the subject of this report, or to the parties
involved with this assignment.
• My engagement in this assignment was not contingent upon developing or reporting predetermined results.
• My compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value that favors the cause of the client, the
amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
• My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP).
• No one provided significant real property appraisal assistance to the person(s) signing this certification.
• I certify sufficient competence to appraise this property through education and experience, in
addition to the internal resources of the appraisal firm.
• No photographs have been altered in this report.
• I have not performed prior appraisal services regarding the subject within the previous three years of the date of engagement.
• Jerome Franklin certifies that, to the best of my knowledge and belief, the reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. Jerome Franklin certifies that the use of this
report is subject to the requirements of the Appraisal Institute relating to review by its duly
authorized representatives.
• Jerome Franklin has made an inspection of the subject property.
Jerome Franklin
MA- Certified General Real Estate Appraiser License #5219, Expires November 9, 2023
Bennett Franklin File # BF11011 Page 9
Qualifications of Jerome Franklin
Education
Bentley College - MBA, 1992 Western New England College - BSBA, 1989 Appraisal Institute courses attended and successfully completed Real Estate Appraisal Principles – 110,
Real Estate Appraisal Procedures - 120
Basic Income Capitalization - 310 Standards of Professional Practice, Part A - 410, Part B – 420, Part C - 430 Advanced Income Capitalization - 510 Highest & Best Use and Market Analysis - 520
Advanced Sales Comparison and Cost Approaches – 530
Report Writing and Valuation Analysis – 540 Advanced Applications - 550 Passed Appraisal Institute General Comprehensive Examination Business Experience
Bennett Franklin Real Estate Services, Partner, East Longmeadow, MA Independent Real Estate Appraiser / Consultant / Broker, Springfield, MA Crowley Real Estate Appraisers, Inc. Springfield, MA, Real Estate Appraiser United States Navy, Electrical Technician
Licenses Massachusetts Certified General Real Estate Appraiser License #5219 Connecticut Certified General Real Estate Appraiser License #894 Massachusetts Licensed Real Estate Broker #9018019 New York Certified General Real Estate Appraiser License #46000046409
Vermont Certified General Real Estate Appraiser License #080.0095482 Current and Past Memberships Member National Council of Housing Market Analysts (NCHMA) General Associate Member of the Appraisal Institute; Candidate for MAI designation
Member of the Greater Springfield Board of Realtors Member of the Massachusetts Board of Realtors and National Association of Realtors Springfield Planning Board (Chairman) Springfield Taxicab Commission Better Homes of Springfield, Board of Directors
Western Massachusetts Council, Boy Scouts of America, - Executive Board Client List Available Upon Request
Bennett Franklin File # BF11011 Page 10
Scope of Work
Report Type: This is an Appraisal Report as defined by Uniform Standards
of Professional Appraisal Practice under Standards Rule 2-
2(a). This format provides a summary or description of the appraisal process, subject and market data and valuation analyses. Property Identification: The subject has been identified by the legal description and
the assessors' parcel number.
Inspection: An inspection of the subject property has been made, and photographs taken. Information Sources: The following description is based on my property inspection, [assessment records, property deeds, associated legal
documents, survey data, etc.] research of local assessor's
offices, planning departments, collectors offices, regional data sources, conversations with brokers, managers, investors and owners familiar with similar properties as well as information provided by the property owner and/or representatives of the property owner. I have conducted research of property
characteristics of the subject (site and improvements). I have researched if there are adverse site and property conditions. I have reviewed income and expense information when and if provided. I have reviewed lease agreements when and if provided. I have reviewed agreements for sale when and if
provided. Market Area and Analysis of Market Conditions: A complete analysis of market conditions has been made. I maintain and have access to comprehensive databases for this market area and have reviewed the market for sales and listings relevant to this analysis.
Highest and Best Use Analysis: An 'as vacant' and 'as improved' highest and best use analysis for the subject has been made. Physically possible, legally permissible and financially feasible uses were considered, and the maximally productive use was concluded.
Type of Value: Market Value Valuation Analyses Cost Approach: A cost approach was not applied as the subject property is vacant unimproved land. Sales Comparison Approach: A sales approach was applied as there is adequate data to
develop a value estimate and this approach reflects market behavior for this property type. Income Approach: An income approach was not applied as while the subject could generate an income stream, the most probable buyer is an owner-occupant.
Hypothetical Conditions: There are no hypothetical conditions for this appraisal. Extraordinary Assumptions: There are no extraordinary assumptions for this appraisal. Information Not Available: None
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"As Is" Value The "as is" value is considered to represent the value of the property in its current condition as of
the effective date of the appraisal. It represents the most probable price that a proposed
purchaser would pay for the subject considering all of the costs and risks inherent in its future ownership. Effective Date of the Appraisal Report
The subject property was physically inspected on February 9, 2023 and photographs of the
property were taken on this date. The effective date of my “as is” value is February 9, 2023. Definition of Market Value
"the most probable price which a property should bring in a competitive and open market under
all conditions requisite to a fair sale, the buyer and seller each acting prudently and
knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this
definition are the consummation of a sale as of a specified date and the passing of title from
seller to buyer under conditions whereby:
(1) buyer and seller are typically motivated;
(2) both parties are well informed or well advised, and acting in what they consider their
own best interest;
(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."1 Property Rights Appraised The subject property is not subject to any leases. Thus the fee simple interest is available for purchase. A Fee Simple interest is defined2 as:
Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. Personal Property
The opinion of value provided in this report concerns the real estate only and does not include the valuation of any other personal property such as furniture, licenses or goodwill of the owner or the tenants. Identification of the Real Estate
The property which is the subject of this appraisal report is located at Parcel N, Elm Court, Northampton, Hampshire County, MA, 01060. The property is also noted at the Northampton Assessors Office as 13-054-001:
1 Interagency Appraisal and Evaluation Guidelines, Office of the Comptroller of the Currency, Treasury (OCC); Board of Governors of the Federal Reserve System (FRB); Federal Deposit Insurance Corporation (FDIC); Office of Thrift Supervision, Treasury (OTS); and National Credit Union Administration (NCUA), Federal Register / Vol. 75, No. 237 / Friday, December 10, 2010 2 Appraisal Institute, The Dictionary of Real Estate Appraisal, 4th ed. (Chicago: Appraisal Institute, 2002).
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Ownership of Property / Sales History The property which is the subject of this appraisal is owned 50% by John F. Skibiski Realty
Partnership who purchased the subject property from John F. Skibiski Sr. Trust for consideration
of $100 as noted in Book 14552, Page 182 dated May 16, 2022 found in the Hampshire County Registry of Deeds (Northampton, MA). The property which is the subject of this appraisal is also owned 50% by The City of
Northampton who purchased the subject property from Valley Land Fund, Inc. for consideration
of $12,000 as noted in Book 10516, Page 307 dated April 1, 2011 found in the Hampshire County Registry of Deeds (Northampton, MA). To my knowledge, there have been no other transfers of the subject property in the last three
years. The subject property is not currently listed for sale and is not under agreement for sale.
There is an easement for the access to the subject. There no other known adverse encumbrances or easements that would restrict the use or appeal of the property and no encroachments were identified. Please reference Limiting Conditions and Assumptions. My research unveiled the deed mentioned above which is considered adequate for the purposes of this appraisal report.
Further title analysis is beyond the scope of this appraisal and I recommend that a complete title search be conducted by a qualified individual. A copy of the deeds are in the addendum. Northampton Community Analysis Northampton is bordered by the Town of Hatfield to the north, the City of Holyoke and Town of
Easthampton to the south, and the Towns of Hadley and Easthampton to the east and west, respectively. The city is approximately 100 miles from Boston, and 35 miles north of Hartford. The city is easily accessible via three interchanges from Interstates 91 within its borders. Interstate 91 networks the city northerly to southern Vermont, and southerly to major commercial regions of Springfield, MA and Hartford, CT. The Massachusetts Turnpike has an
interchange in West Springfield, approximately 13 miles from Northampton center, which also provides access from that interstate to the city. The City of Northampton contains approximately 35.62 square miles of land. According to the US Census Bureau, as of April 1, 2020, Northampton had a population of
29,571, which indicates an approximate 3.6% increase from the 2010 population estimate of 28,549 residents (2010 US Census). According to US Census Bureau statistics, the average median household income in Northampton was $71,866 (2016-2020 average in 2020 dollars), which indicates that the median household income average for Northampton is relatively similar to the surrounding area ($73,518 for Hampshire County), but lower than the average indicated by
the entire Commonwealth ($84,385) as of the same time period. The major employer in Northampton is Smith College with a student enrollment of approximately 2,500 students. Smith College and the other area colleges provide solicitation for the downtown business district's retail and restaurant trades. The lodging industry in the area is stable as well, primarily as a result of the presence of the colleges in the area.
As a function of the city’s presence in a diversity of markets, and the demand for commercial goods and services posed by Smith College and the other colleges and university in the region,
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Northampton has one of the lowest unemployment rates in the region and State. According to the Massachusetts Department of Labor and Training statistics from September 2022, 2.5% of
the City's labor force was unemployed. This rate is slightly lower than both the Hampshire
County unemployment rate of 2.7% and the Commonwealth of MA rate of 3.1% as of the same time period. Map of Northampton and Surrounding Communities
The region is noted for having an established transportation network in place which has
contributed to an established position in distribution and light industrial sectors. In the last five years the market has witnessed significant new development in the modern industrial locations with inventory available for expansion. The locations in the region with very good highway access and visibility have shown expansion in the light industrial, distribution, and commercial
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sectors. Virtually all of the commercial sectors are represented within the City. Downtown Northampton has historically held a strong commercial presence. The downtown area is very
accessible to pedestrians as parking is not abundant and is nearly all metered and closely
monitored. Investment in real estate in downtown Northampton has been steady over the recent years with renovations to the majority of the buildings along Main Street in the last five years. The popularity of the downtown area has resulted in sale and rental values for properties in downtown that generally exceed the greater three-county market. Retail vacancy in downtown
has been less than 5% for the last five years. A few properties have been converted to
condominiums with residential units on upper floors and commercial units on ground floors. There are two notable developments that have recently occurred in the southerly / southeasterly portion of the CBD. The first, known as Live 155, is an estimated $19.9 million project
associated with 70 apartment units (27 studio apartments and 43 one-bedroom apartment units)
and 2,600 square feet of ground floor retail; this project contains 47 “affordable” units and 23 market rate units. The other project, known as the “Lumber Yard”, involves the construction of a four story 70,000 square foot complex that houses 55 apartment units geared toward accommodating low- and middle-income individuals and families. This project reportedly cost approximately $20,000,000. In addition to these two projects, there is a new 30-unit residential
condominium development on Hawley Street / Phillips Place in the easterly portion of the CBD; this development includes two and three – bedroom townhouse units that contain between 2,000+/- and 2,400+/- square feet. Units are being marketed and selling at values in the range of $720,000 to $881,625 and $410+/- and 485+/- per square foot.
There is a good number of high-profile retail and commercial properties along King Street/North King Street (US Route 5) that includes a number of automotive dealerships, grocery stores, fast food restaurants, gas stations, pharmacies, branch banks, etc. The most recent notable developments along King Street over the past five or so years include: two newer car dealerships at the former Kollmorgen site, a Taco Bell at the site formerly improved with a Wendy’s, the
redevelopment of the former Hill and Dale Mall site (expansion of Firestone has been completed and a Bank branch has been constructed, installation of a traffic light on King Street, extensive remodeling of the “main building” for medical office use) and others. The former Lia Honda sales and service building (171-181 King Street) has been razed (July 2014) and sits vacant; the site has been deemed contaminated and there are pending lawsuits regarding site remediation.
In conclusion, the City of Northampton provides a prominent commercial and residential center, and properties in Northampton have good marketability to the greater area. The city’s ability to participate in a diversity of commercial markets is positive and economic conditions in Northampton are expected to remain stable into the future.
Neighborhood of Subject Analysis The subject property is located off of Hatfield Street in the northeast area of Northampton. The subject neighborhood is bounded by Interstate 91 to the west, the Connecticut River to the south and east, and Elm Street to the north. The subject neighborhood is minimally traveled and
minimally developed with a mix of predominantly residential users, vacant wooded land with a few non-residential use properties mixed in. Interstate 91 and US Route 5 are accessed via Elm Street in the very close proximity to the subject (within a ¼ mile).
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Map indicating location of the subject neighborhood.
Based on our research, it appears that there will continue to be residential and vacant land use
properties in the subject neighborhood and we do not anticipate any changes, which would have a negative impact on the subject property.
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Site Description SITE
Location: The City of Northampton, MA is located in Hampshire County and
is a community with numerous commercial and institutional uses along with the majority of land being used in a residential capacity. The subject property is a land locked parcel which is accessed via an easement from Hatfield Street located to the north of the parcel.
This area is minimally traveled and developed.
Current Use of the Property: Land Site Size: Parcel 13-054-001, Total: 10.67 acres; 464,872 square feet
Shape: The site is irregular in shape.
Street Access: The subject property has Poor access due to its proximity to main roadways and highways.
Street Frontage:
None - Accessed via easement - None feet.
The site has an average depth of 390+/- feet. The subject is not a corner lot. Rail Access: The site does not have rail access. Visibility: Considered having Poor access and visibility, as the subject site is
located on a moderately traveled roadway in a commercial and
residential use area. Topography: The subject has downward slope from the west to the east to the Connecticut River.
Soil Conditions: The soil conditions observed at the subject appear to be typical of
the region and adequate to support development. Utilities: Electricity: None Sewer: None
Water: None
Natural Gas: None Underground Utilities: The site is not serviced by underground utilities. Adequacy: The subject's utilities are typical and adequate for the
market area.
Site Improvements: • Street lighting: None
• Sidewalks: None
• Curb & Gutter: None
• The subject is a wooded land. Wetlands/Watershed: There is a stream along the southern property line and the subject abuts the Connecticut River. No other wetlands were observed during my site inspection.
Environmental Issues: The subject abuts rail road lines which have been at this location for
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100+ years. During my inspection I did not identify any potential environmental problems with the property. I have not been provided
with any soil tests or environmental studies of the land and
improvements. There are no known adverse environmental conditions on the subject and I have assumed that the subject property meets all acceptable standards with regard to State and Federal Laws. An inability to meet acceptable environmental
standards will likely impact the value and marketability of the
subject property. Please reference Limiting Conditions and Assumptions. Encumbrance / Easements:
There is an easement for the access to the subject. There no other known adverse encumbrances or easements that would restrict the
use or appeal of the property and no encroachments were identified.
Please reference Limiting Conditions and Assumptions. Site Comments: The has average and typical utility. Assessor map.
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Aerial map.
Topography map.
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Survey
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Flood Zone: The subject is located in an area mapped by the Federal Emergency Management Agency (FEMA). A portion of the subject is located in
FEMA flood zone C, which is classified as a flood hazard area.
FEMA Map Number: 2501670002A FEMA Map Date: April 3, 1978 Flood Zone C, X (unshaded) are minimal risk areas outside the 1-percent and .2-percent-annual-chance floodplains. No BFEs or base
flood depths are shown within these zones. (Zone X (unshaded) is used
on new and revised maps in place of Zone C.) The appraiser is not an expert in this matter and is reporting data from FEMA maps. The portion of the site along the Connecticut River and all of Canary Island are within the 100 year flood hazard. A copy of the appropriate portion
of the Flood Map is as follows.
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Zoning and Conformity
Zoning Code: SR District
Zoning Description:
The SR district allows for single family homes, home businesses, family day
care, cemetery, agricultural, etc. Current Use Legally Conforming: The subject is a legal and non-conforming as there is no street frontage.
Minimum Land
Area
Minimum
Frontage
Minimum Setback Maximum
Building Height Front Yard Side Yard Rear Yard 30000 Square Feet 125 Feet 30 Feet 15 Feet 30 Feet 35 Feet
Zoning Comments
The appropriate portion of the Zoning Map are shown as follows:
Subject Property
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Subject Photographs
Views of Hatfield Street near easement
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Assessment and Taxes Taxing Authority Northampton
Assessment Year 2023
Real Estate Assessment and Taxes
Tax ID Land Improvements Other Total
Assessment
City
Rate
Other
Rate
Tax Rate Taxes
13-054-001 $1,100 $0 $0 $1,100 $17.89 $0.00 $17.89 $20 Comments There has been nominal changes to the tax rate and assessments in the recent past.
Highest and Best Use
Highest and best use may be defined as the reasonably probable and legal use of vacant land or improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value.
1. Legally Permissible: What uses are permitted by zoning and other legal restrictions? 2. Physically Possible: To what use is the site physically adaptable? 3. Financially Feasible: Which possible and permissible use will produce any net return to the owner of the site?
4. Maximally Productive. Among the feasible uses which use will produce the highest net return, (i.e., the highest present worth)? Highest and Best Use of the Site Considering the land as vacant, its size, configuration, location, topography, wetlands,
accessibility, and the allowed uses, there are few development options for the site. The majority of uses would be recreational or conservation purposes. The immediate neighborhood is improved with some houses and a couple of local commercial, municipal users that cater to the local clientele.
Strengths - Location in close proximity to Interstate 91.
Weaknesses - No frontage, accessed via easement
- Varied topography with downward slope to the Connecticut River. - Wetland areas along southern property line and the Connecticut River. - Irregular shape.
Opportunities - Potential for recreational and conservation uses.
Threats - Unforseen changes in the national and local economy - Increasing interest rates negatively impacting future sales of land.
Research of the market for data relating to vacant land uses that are similar to the subject reveals
that sites with similar characteristics for use in a recreational or conservation capacity will
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demand values as vacant land that are at the low end of the market range or between $500+/- and $2,500+/- per acre. Based upon our research of the real estate markets that pertain to the subject
property it is our opinion that the HBU as vacant would be for recreational or conservation use
based on market demand. Market Analysis The market for recreational land and conservation land is limited. There are few prospective
buyers of land that has limited utility. The majority of the buyers for sites such as the subject are
either non-profit entities or private groups generally looking for low cost land. The demand for similar parcels as the subject does not tend to follow typical real estate markets and often reside at the low end in good and bad markets. Sale prices have been stable with
limited increases or decreases in values. In addition there is generally a low supply of available
limited utility vacant land. Based on the location, the historical demand for the subject land use, there is modest demand for the subject property in the current market. Exposure Period and Marketing Time I have considered the supply of similar properties in the region and I have discussed marketing times for similar properties with real estate brokers and investors. Additionally, I have investigated the marketing times for specific comparable properties that I am familiar with. Our opinion of value for the subject property is based on a number of factors that include its
location and utility. My opinion of value assumes that the subject property would have been exposed to the market for an approximately 6 -12 months period and is based upon market conditions and sales data which occurred prior to the effective date of appraisal. Properties that are offered at unreasonable pricing levels will most likely remain on the market for extended periods of time. Based on my understanding of the market and my due diligence effort, it is my
opinion that if the subject property were offered for sale at a price near to my appraised value, the marketing period would be approximately 6 -12 months.
Bennett Franklin File # BF11011 Page 25
Valuation Methodology Three basic approaches may be used to arrive at an estimate of market value. They are:
1. The Cost Approach
2. The Income Approach 3. The Sales Comparison Approach Cost Approach
The Cost Approach provides an estimate of the land as vacant combined with the depreciated
cost of the site and building improvements. Income Approach The Income Approach converts the anticipated flow of future benefits (income) to a present
value estimate through a capitalization and or a discounting process.
Sales Comparison Approach The Sales Comparison Approach compares sales of similar properties with the subject property. Each comparable sale is adjusted for its inferior or superior characteristics. The values derived from the adjusted comparable sales form a range of value for the subject. By process of
correlation and analysis, a final indicated value is derived. Final Reconciliation The appraisal process concludes with the Final Reconciliation of the values derived from the approaches applied for a single estimate of market value. Different properties require different
means of analysis and lend themselves to one approach over the others. Analyses Applied A cost analysis was considered and was not developed because the subject property is vacant unimproved land.
A sales comparison analysis was considered and was developed because there is adequate data to develop a value estimate and this approach reflects market behavior for this property type. An income analysis was considered and was not developed because while the subject could
generate an income stream, the most probable buyer is an owner-occupant.
Bennett Franklin File # BF11011 Page 26
Sales Comparison Approach – “As Is” - 100% Ownership Interest
In the valuation of vacant similar land as the subject, the regional market dictates that the value
of a property such as the subject is determined based on the cost/value per acre of land area.
This typically includes all usable land area (excepting wetland areas, steep slopes) divided into the verified sale price of the property. We note that recorded sale prices may or may not represent the actual consideration paid, and as such, it is our responsibility as appraisers to contact at least one of the parties involved in a sale transaction to determine the circumstances of
the sale. This allows us to accurately reflect any adjustments to the recorded sale price such as
real estate tax payments made by the buyer beyond customary adjustments, extraordinary costs such as hazardous waste removal costs or demolition expenses to the buyer or corporate or individual tax payments/adjustments that may be part of the sale price.
Other matters necessary to uncover include if personal property or good will is part of the sale
price consideration, or if the property was sold under adverse conditions. All of these matters directly impact the per acre comparative unit of measurement and must be addressed before comparisons of the sale(s) are made respective to the subject land. I have researched three comparables for this analysis; these are documented on the following
pages followed by a location map and analysis grid. All sales have been researched through numerous sources, inspected and verified by a party to the transaction.
Bennett Franklin File # BF11011 Page 27
ID 11201 Date 1/28/2021
Address 0 Linseed Road Price $6,500
City Hatfield Price per Acre $813
State MA Financing Market
Tax ID 217-21-0 Property Rights Fee Simple
Grantor Michael Lyons Days on Market 2
Grantee Jeffrey Zgrodnik Verification Rep of Grantor
Legal Description B13956 P249
Acres 8.00 Topography Sloping
Land SF 348,480 Zoning Residential
Road Frontage None Flood Zone None
Shape Irregular Encumbrance or None
Utilities None Environmental Issues None
This property is located in the west central area of Hatfield, MA. This area is minimally traveled and
developed with a mix of agricultural and residential uses. This property is considered to be in a fair location.
This parcel has zero street frontage and is accessed via right of way.
Transaction
Site
Comments
Land Comparable 1
Bennett Franklin File # BF11011 Page 28
ID 11202 Date 3/25/2021
Address 0 North East Street Price $33,313
City Amherst Price per Acre $1,333
State MA Financing Market
Tax ID 9D - 000 - 026 Property Rights Fee Simple
Grantor John Gizienski Jr.Days on Market N/A
Grantee W. D. Cowles, Inc.Verification Rep of Grantor
Legal Description B14029 P149
Acres 25.00 Topography Sloping
Land SF 1,089,000 Zoning Residential
Road Frontage None Flood Zone None
Shape Irregular Encumbrance or None
Utilities None Environmental Issues None
This property is located in the north east area of Amherst, MA. This area is moderately traveled and
developed with a mix of agricultural and residential uses. This property is considered to be in a fair location.
This parcel has zero street frontage and is accessed via right of way.
Comments
Site
Transaction
Land Comparable 2
Bennett Franklin File # BF11011 Page 29
ID 11203 Date 12/9/2022
Address 263 Hendrick Street Price $49,050
City Easthampton Price per Acre $2,187
State MA Financing Market
Tax ID 179 - 24 - 001 Property Rights Fee Simple
Grantor John Kuzeja Days on Market N/A
Grantee Martha Terry Verification Rep of Grantor
Legal Description B14753 P286
Acres 22.43 Topography Sloping
Land SF 977,051 Zoning Residential
Road Frontage 800+/-Flood Zone None
Shape Irregular Encumbrance or None
Utilities Electric Environmental Issues None
Comments
Transaction
Land Comparable 3
This property is located in the southern area of Easthampton, MA near the Holyoke, MA City line. This
area is moderately traveled and developed with a mix of agricultural and residential uses. This property is
considered to be in a fair location.
This parcel has frontage along Hendrick Street and Burt Street.
Site
Bennett Franklin File # BF11011 Page 30
Analysis Grid The previously outlined sales have been analyzed and the sales comparison grid displays the
subject property, the comparables and the adjustments applied.
Address
City
State
Date
Price
Price Adjustment
Adjusted Price
Acres
Acre Unit Price
Property Rights Fee Simple 0.0%Fee Simple 0.0%Fee Simple 0.0%
Financing Market 0.0%Market 0.0%Market 0.0%
Conditions of Sale Typical 0.0%Typical 0.0%Typical 0.0%
Market Trends Through 2/9/2023 0.0%
Location
% Adjustment
$ Adjustment
Acres
% Adjustment
$ Adjustment
Topography
% Adjustment
$ Adjustment
Shape
% Adjustment
$ Adjustment
Utilities
% Adjustment
$ Adjustment
Zoning
% Adjustment
$ Adjustment
Net Adjustments
Gross Adjustments
$1,333
-25.0%
0.0%35.0%
0.0%
$813Adjusted Acre Unit Price $1,640
Adjusted Acre Unit Price $813
Fair/Average Fair/Average
$1,333Adjusted Acre Unit Price $813
0.0%
Fair/Average
0%
0.0%
Parcel N, Elm Court
MA
$2,187
Cash
Northampton Amherst
MAMA
$2,187
22.4
Transaction Adjustments
8.0
Easthampton
263 Hendrick Street
Electric
$0
-$109
0%
Residential
0.0%
$0
0%0%
Residential
None, None, None,
None
SR District Residential
$0
10.672
0%
$0
irregular shape
Sloping
8.00
0%
Irregular
Land Analysis Grid Comp 1
10.7
$0 $813
MA
0 Linseed Road 0 North East Street
Hatfield
$0 $6,500
25.0
Comp 2
$1,333
Comp 3
$0
0%
$0
Irregular
0%
-25%
0%
-$547
Irregular
0%
12/9/2022
$6,500
$109
Sloping
$0
5%
$2,187
0%
$49,050
$0
Fair
0%
Sloping
$0
$0
None
0%
None
-5%
0.0%
$1,333
25.00
$0
0%
$0
22.43
Sloping
$0
$0
$0
0%
$0 $0 $0
$49,050$33,313
Conventional
Fee Simple
$0
--
3/25/20212/9/2023 1/28/2021
$33,313
0.0%
Bennett Franklin File # BF11011 Page 31
Comparables Land Sales Map
Analysis of Comparable Land Sales The comparable sales represent the most similar properties that have sold in the general area in
the last few years. As indicated earlier, the unit of comparison that we are using to determine our
opinion of market value for the subject land is the per acre value. This index is typically the value indicator used for properties such as the subject. Each sale has differences in its specific characteristics that need to be analyzed and compared to the subject so that we can arrive at a final opinion of value via our Land Sales Comparison Approach. The characteristics that we
identified and compared to the subject were the sale date, property rights conveyed, terms of
financing, conditions of sale, location, land area, topography, wetlands, physical characteristics, etc. The differences are rated in comparison to the subject based on our opinion of each comparable sale’s known characteristics. For purposes of this appraisal assignment, the differences are rated as similar, inferior or superior.
Date of Sale In analyzing market conditions in this appraisal assignment we have applied the best available means to measure the effect of changes in the market. Over the past 12 to 36+/- months market conditions have declined although there is limited information from which to determine
definitive adjustments for recreational or conservation land. Thus, we have not made any
adjustments. Property Rights Conveyed We are appraising the fee simple interest in the subject property. The buyers purchased the fee
simple interest to each sale since the land was either vacant or unencumbered by long-term
Bennett Franklin File # BF11011 Page 32
leases. Therefore, the sales were rated similar to the subject and no adjustments were applied to the sales for this standard.
Financing Each of the comparable sales had typical market rate financing. As the financing of each sale was considered to be at market rates no adjustment is required to any of the sales for this element of comparison.
Sale Conditions Each of the sales was properly exposed to the market and none of these transfers evidenced unusual sale adjustments or conditions. As such, each sale was rated similar to the subject for this element of comparison and no adjustments are necessary.
Land Sale Comparison Each of the Sales are located in areas that are primarily residential and agricultural uses. Sales 1 and 2 are in areas of similar demand as the subject with similar locational characteristics. Sale 3 is locate in an area of inferior demand with inferior accessibility.
The subject is similar to the Sales regarding number of acres. Thus, the sales are considered similar to the subject with regard to land area based on the Economies of Scale Principle. This theory is based on the premise that a lower per acre value typically results when buying/selling a larger number of units (acres land area) of a product (real property) compared to the per unit value indicated by a transfer of a smaller number of units of the same product and vice versa.
Functional utility concerns for a vacant parcel of land include topography, configuration, accessibility (curb cuts and frontage) wetlands, utilities, zoning, easements, etc. that may limit the useable land area and/or the overall appeal of a property.
The subject is impacted to a moderate degree with topography and wetlands. Each sale has some wetland areas and sloping topography and are considered similar to the subject. The subject has a shape that does not include street frontage similar to Sales 1 and 2. Sale 3 does have street frontage and is superior to the subject.
The subject does not have any utilities to the site similar to Sales 1 and 2. Sale 3 does have electric available which is superior to the subject. Each of the comparable sales have the remaining similar functional utility concerns as the
subject.
Bennett Franklin File # BF11011 Page 33
Land Valuation Conclusion The unadjusted values of the comparable properties are $813, $1,333 and $2,187. The adjusted
values of the comparable properties range from $813 to $1,640; the average is $1,262. The
subject has a total of 10.67 acres of land. All of the value indications have been considered, with primary emphasis on Sales 1 and 2 as they had the smallest adjustments and are most similar to the subject. Based on this information I have reconciled a per acre value of $1,100.
As Is Market Value Indicated Value per Acres: $1,100 Subject Size: 10.7 Acres Indicated Value: $11,739 Rounded: $12,000
Twelve Thousand Dollars
Bennett Franklin File # BF11011 Page 34
Final Reconciliation
The process of reconciliation involves the analysis of each approach to value. The quality of
data applied, the significance of each approach as it relates to market behavior and defensibility
of each approach are considered and weighed. Finally, each is considered separately and comparatively with each other.
Estimated Value via
Sales Comparison Approach “As Is” $12,000
Sales Comparison Approach The value of the subject property via the sales comparison approach is estimated from a number of sales that are considered comparable to the subject, (location comparison, recent sales, use
comparisons, land areas, etc) and the sales are considered competitive to the subject. Qualitative
comparisons were made to the sales, which are supported from market data, and the per unit values are consistent with the current market. The conclusion determined via the sales comparison approach is considered reasonable and reliable.
Conclusion
It is my conclusion that the opinions of value determined from the approach is well supported. In addition, it is my understanding that many potential purchasers of a property such as the subject place primary reliance on the sales comparison approach utilized. As such it is my opinion that the 100% interest in the "as is" market value of the Fee Simple interest in the subject
property, as of February 9, 2023 is:
Twelve Thousand Dollars
$12,000
Bennett Franklin File # BF11011 Page 35
Addenda
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