APPRAISAL-BF10828, Report-11-1-2022BENNETT 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 REPORT
210 Main Street (Rear)
Northampton, MA 01060
Prepared For
Ms. Carolyn Misch
AICP, Director of Planning & Sustainability
City of Northampton
210 Main Street
Northampton, MA 01060
Effective Date of Market Conditions and “As Is” Valuation
November 1, 2022
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
November 4, 2022
Ms. Carolyn Misch
AICP, Director of Planning & Sustainability
City of Northampton
210 Main Street
Northampton, MA, 01060
Re: Appraisal Report
210 Main Street (Rear),
Northampton , MA, 01060
Bennett Franklin Appraisal Report # BF 10828
Dear Ms. Misch:
At your request, for the benefit of City of Northampton (the client) we have inspected the
subject property and prepared an appraisal of the property under the extraordinary
assumptions directed by the client and agreed upon by us in accepting this assignment.
The subject property is a 5,329+/- square foot parcel of land that is proposed to be created
by subdividing off portions of two abutting parcels identified as 210 Main Street and 212
Main Street in Northampton, MA; we have been asked to provide our opinion of value
for the subject property (as proposed) under the extraordinary assumption that the
5,329+/- square feet of land is subdivided and created as its own parcel with architectural
design and civil engineering completed in preparation for the site to be improved with a
multi-family home that will contain between 24 and 28 studio units. The site is currently
improved with lawn areas, concrete staircases, a brick paver parking area (4+/- cars),
some asphalt paving (2+/- parking spots), etc.
The subject property was inspected and photographed on November 1, 2022. The
purpose of our inspection and the accompanying analysis is to provide our opinion of the
'as is' market value of the subject property based on the extraordinary assumptions
outlined in this appraisal as of November 1, 2022. The intended use of the appraisal is 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 Report 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 our 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 we have inspected the subject property and we 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 Report, it is
our conclusion that the opinion of value determined in this appraisal report is well
supported. Based upon the analysis completed it is our opinion that the "as is" Market
Value (range) of the Fee Simple interest in the subject property, as of November 1, 2022
is:
One Million Two Hundred Fifty Thousand Dollars
$1,250,000
To
One Million Four Hundred Sixty Thousand Dollars
$1,460,000
Thank you for contacting us for this assignment. If you have any questions concerning
our valuation and analysis we may be reached at (413) 526-0800.
Jerome Franklin
MA- Certified General Real Estate Appraiser
License #5219, Expires November 9, 2023
Robert Harrington
MA- Certified General Real Estate Appraiser
License #75351, Expires November 12, 2022
TABLE OF CONTENTS
Summary of Property Details.............................................................................................. 5
Description of the Appraisal Report ................................................................................... 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
Qualification of Robert Harrington ............................................................................... 10
Scope of Work .................................................................................................................. 11
Property Rights Appraised ................................................................................................ 13
Definition of Market Value ............................................................................................... 13
Ownership of Property / Sales History ............................................................................. 13
Northampton Community Analysis .................................................................................. 14
Neighborhood of Subject Analysis ............................................................................... 17
Site Characteristics............................................................................................................ 18
Zoning and Conformity................................................................................................. 25
Improvements Description ................................................................................................ 26
Assessment and Taxes ...................................................................................................... 28
Highest and Best Use ........................................................................................................ 28
Market Analysis ................................................................................................................ 29
Exposure Period and Marketing Time .............................................................................. 31
Valuation Methodology .................................................................................................... 31
Analyses Applied .......................................................................................................... 32
Sales Comparison Approach ............................................................................................. 32
Land Valuation Conclusion .......................................................................................... 39
Final Reconciliation .......................................................................................................... 40
Addenda ............................................................................................................................ 41
Bennett Franklin File # BF 10828 Page 5
Summary of Property Details
Location: 210 Main Street (Rear), Northampton,
Hampshire County, MA, 01060
Ownership: City of Northampton
Legal Description: N/A
Property Rights Appraised: Fee Simple
Value Appraised Market Value
Date of Report: November 4, 2022
Date of “As Is” Valuation: November 1, 2022
Land Area: The property contains approximately 0.12 acres.
Zoning: Central Business (CB)
Improvements: The subject property is a 5,329+/- square foot parcel of land
that is proposed to be created by subdividing off portions of
two abutting parcels identified as 210 Main Street and 212
Main Street in Northampton, MA; we have been asked to
provide our opinion of value for the subject property (as
proposed) under the extraordinary assumption that the
5,329+/- square feet of land is subdivided and created as its
own parcel with architectural design and civil engineering
completed in preparation for the site to be improved with a
multi-family home that will contain between 24 and 28 studio
units. The site is currently improved with lawn areas,
concrete staircases, a brick paver parking area (4+/- cars),
some asphalt paving (2+/- parking spots), etc.
Highest and Best Use
of the Site:
HBU as vacant is for development with multi-unit residential
improvements like those that are proposed / planned for the
site.
Highest and Best Use
as Improved:
HBU as improved is for development with the proposed
improvements for use as a multi-family property.
Type of Value: Market Value
VALUE INDICATIONS
Reconciled Value(s): As Is
Land Value: $1,250,000 to $1,460,000
Cost Approach: N/A
Sales Comparison Approach: $1,250,000 to $1,460,000
Income Approach:
Direct Capitalization:
N/A
Deduction of Costs: N/A
Market Value Conclusion(s) $1,250,000 to $1,460,000
As the exact number of units that can prospectively be developed at the subject property was presented in
the range of “24 to 28”, we have provided a range of value for the subject property reflective of the
potential for a varying number of units to be developed prospectively at the property.
Bennett Franklin File # BF 10828 Page 6
Description of the Appraisal Report
This valuation is an Appraisal Report, 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 our determination that this Appraisal Report is appropriate.
Purpose of the Appraisal
The purpose of our inspection and the accompanying analysis is to provide our opinion of the 'as
is' market value of the subject property based on the extraordinary assumptions outlined in this
appraisal as of November 1, 2022.
Intended Use and Intended User
The intended use of the appraisal is for internal business purposes. The intended users of the
report are City of Northampton/client and / or its affiliates.
Competency Statement
Based on our knowledge of the subject property and the real estate market that it competes
within, we 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
We assume no responsibility for matters legal in nature, nor do we 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 we assume no responsibility for their accuracy. We have made no
survey of the property.
We are 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.
We assume that there are no hidden or unapparent conditions of the property, subsoil or
structures which would render it more or less valuable. We assume no responsibility for such
conditions or for engineering which might be required to discover such factors.
We 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 us 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.
Bennett Franklin File # BF 10828 Page 7
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.
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.
We 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.
We 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.
We certify that we are appropriately licensed or certified to appraise the subject property in the
State in which it is located.
Bennett Franklin File # BF 10828 Page 8
Certification Statement
We certify that, to the best of our 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 our personal, impartial, and unbiased professional analyses,
opinions and conclusions.
• We 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.
• We have no bias with respect to the property that is the subject of this report, or to the parties
involved with this assignment.
• Our engagement in this assignment was not contingent upon developing or reporting
predetermined results.
• Our compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value that favors the cause of the client, the
amount of the value estimate, the attainment of a stipulated result, or the occurrence of a
subsequent event directly related to the intended use of this appraisal.
• Our analyses, opinions, and conclusions were developed, and this report has been prepared,
in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP).
• No one provided significant real property appraisal assistance to the person(s) signing this
certification.
• We 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.
• The appraisers have not performed prior services associated with the subject property in the
three-year period immediately preceding the agreement to perform the assignment.
• 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 exterior inspection of the subject property.
• Robert Harrington has made an inspection of the subject property.
Jerome Franklin
MA- Certified General Real Estate Appraiser
License #5219, Expires November 9, 2023
Robert Harrington
MA- Certified General Real Estate Appraiser
License #75351, Expires November 12, 2022
Bennett Franklin File # BF 10828 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 # BF 10828 Page 10
Qualification of Robert Harrington
Education
Union College-BA, 1998
Appraisal courses attended and successfully completed
Basics of Real Estate Appraisal
Uniform Standard of Professional Appraisal Practice
Appraising Income Properties
Residential Sales and Income Approach
Residential Market Analysis and Highest and Best Use
Advanced Income Property Appraising
Basics of Real Estate Appraising
Business experience
Independent MA Cert. Gen. R.E. Appraiser, East Longmeadow, MA
General Contractor-Massachusetts
Cleaner Image, Co-owner, Framingham, MA
Licenses
MA Cert. Gen. R.E. Appraiser Lic. #75351
CT Cert. Gen. R.E. Appraiser Lic. #1529
Client List Available Upon Request
Bennett Franklin File # BF 10828 Page 11
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: A site inspection of the subject property has been made, and
photographs taken.
Information Sources: The following description is based on our 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.
Additional Information: We have conducted research of property characteristics of the
subject (site and improvements). We have researched if there
are adverse site and property conditions. We have reviewed
income and expense information when and if provided. We
have reviewed lease agreements when and if provided. We 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. The
appraiser maintains and has access to comprehensive databases
for this market area and has 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 being
valued as vacant, unimproved land, which makes development
of the cost approach inapplicable.
Sales Comparison
Approach:
A sales approach was applied as there have been sales of
comparable properties in the market area from which a
reasonable and credible opinion of value can be determined.
Income Approach: An income approach was not applied as the subject property
type is rarely leased to a tenant and owned as an investment,
which makes the development of this valuation method
inapplicable.
Hypothetical Conditions: • None.
Bennett Franklin File # BF 10828 Page 12
Extraordinary Assumptions:
• The subject property is a 5,329+/- square foot parcel of
land that is proposed to be created by subdividing off
portions of two abutting parcels identified as 210 Main
Street and 212 Main Street in Northampton, MA; we
have been asked to provide our opinion of value for the
subject property (as proposed) under the extraordinary
assumption that the 5,329+/- square feet of land is
subdivided and created as its own parcel with
architectural design and civil engineering completed in
preparation for the site to be improved with a multi-
family home that will contain between 24 and 28 studio
units. Obviously, if these assumptions prove false, the
opinion of value included in this appraisal may be
impacted and we reserve the right to revise our opinion
of value accordingly.
Information Not Available: • None
"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.
Extraordinary Assumption Definition
“An assumption, directly related to a specific assignment, which, if found to be false, could alter
the appraiser’s opinions or conclusions.”1
Identification of the Real Estate
The property which is the subject of this appraisal report is located at 210 Main Street (Rear),
Northampton, Hampshire County, MA, 01060. The property is also noted at the Northampton
Assessors Office as a Portion of Map 31D, Lots 163 and 167.
Effective Date of the Appraisal Report
The subject property was physically inspected on November 1, 2022 and photographs of the
property were taken on this date. At the direction of the client we are appraising the “as is”
market value of the subject property under the extraordinary assumption that the property is
‘shovel’ ready for development with between 24 and 28 studio apartment units (i.e., all of the
engineering and architectural costs / work have been completed). The effective date of our “as
is” value is November 1, 2022.
1 The Dictionary of Real Estate Appraisal, Fourth Edition, 2002, Pg. 106
Bennett Franklin File # BF 10828 Page 13
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.
Property Rights Appraised
The subject property is reportedly not encumbered with any long term lease agreements. As
such, we have appraised the fee simple interest. 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.
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."3
Ownership of Property / Sales History
The subject property parent tracts and the tract to be created are and will be owned by the City of
Northampton; the City's public records do not contain information associated with the grantor,
grantee, book and page, sale date, etc. associated with the properties.
There are typical utility and municipal easements crossing the subject property. After a review
of the legal description contained in the deed it is our opinion that there are no easements or
restrictions that are considered to adversely impact the subject property. Please reference
Limiting Conditions and Assumptions. Our 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 we recommend that a complete title search be conducted by a
qualified individual.
2 Appraisal Institute, The Dictionary of Real Estate Appraisal, 4th ed. (Chicago: Appraisal Institute, 2002).
3 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 Thrif t Supervision, Treasury (OTS); and National
Credit Union Administration (NCUA), Federal Register / Vol. 75, No. 237 / Friday, December 10, 2010
Bennett Franklin File # BF 10828 Page 14
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.
Map of Northampton and Surrounding Communities
Bennett Franklin File # BF 10828 Page 15
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, 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.
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
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.
Bennett Franklin File # BF 10828 Page 16
In addition to these two projects, there is a new 30-unit residential condominium development
that is in process 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.
Another on-going development in Northampton is The Village at Hospital Hill which is a major
redevelopment of the former Northampton Hospital. This project incorporates
MassDevelopment and The Community Builders as development partners. The project includes
approximately 476,000 square feet of mixed-use commercial space comprised of retail, office,
light industrial, and research and development/multimedia space, and space for live-work
studios, a childcare center, a possible community center/museum area, and the development of
60-80-unit assisted living facility. The project will also include 207 residential units, of which
100 units are single family homes and 107 are mixed income housing. There is a good amount
of residential development on-going on the north campus portion of the site; there are several
apartment complexes that are already open and occupied. Hillside Place at Village Hill (40
units) and Hilltop Apartments (33 units) have been completed. There are also single family
homes being constructed. Over the past 5 years (2017 through 2021) there have been between
20 and 50 new single family home building permits issued annually in Northampton (136 total or
an average of 27+ annually). There have been additional residential units permitted for
development over that same time period in multi-unit apartment / condominium properties (97
units permitted in structures containing between 8 and 61 units).
There has been some commercial development in this area over the past several years that
includes ServiceNet contsructing a 17,600 square foot corporate and administrative headquarters
on 2.3 acres it purchased from MassDevelopment in the Village at Hospital Hill. The
development was completed with a combination of public and private financing; the total cost
including the land acquisition is reported to be approximately $4,100,000.
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.
Bennett Franklin File # BF 10828 Page 17
Neighborhood of Subject Analysis
The subject property is situated on the westerly side of Crafts Avenue and the northerly side of
Roundhouse Plaza in the Northampton, MA CBD. Crafts Avenue is a secondary, moderately
traveled roadway that allows southerly traffic flow from Main Street to Old South Street; Main
Street is the primary roadway through this portion of Northampton and is heavily developed with
multi-story commercial and mixed use properties lining both sides of the street. Crafts Avenue is
improved in a similar manner as Main Street along its easterly side with multi-story mixed use
and commercial use buildings. The westerly side of Crafts Avenue is improved with municipal
use office buildings and site improvements.
Map of Subject Property Neighborhood
The properties in the immediate area and greater neighborhood are considered to be in
average/fair to good condition with most appearing to be in average to average/good or better
condition. Based on all information we uncovered through our research we do not anticipate any
major changes in property uses in the neighborhood in the foreseeable future due to the lack of
developable land. However, like has happened on many occasions in the past, there is the
potential for additional developments in the neighborhood through renovation of existing
improvements or potentially through razing underutilized sites for reuse/redevelopment.
Bennett Franklin File # BF 10828 Page 18
Site Characteristics
SITE
Location: The subject property is situated on the westerly side of Crafts Avenue and the
northerly side of Roundhouse Plaza in the Northampton, MA CBD.
Current Use of the
Property:
Vacant Land
Site Size: 0.12 acres; 5,329 square feet.
Shape: The site is irregular in shape.
Street Access: The subject property has Average/Good access due to its proximity to main
roadways.
Street Frontage:
Crafts Avenue - 88+/- feet.
Roundhouse Plaza - 50+/- feet.
The subject property is a corner lot.
Visibility: Considered having Average/Good visibility, as the subject site is located on a
moderately to moderately/heavily traveled roadway in the Northampton CBD.
Topography: The subject property site has a level area located along the northerly side of
Roundhouse Plaza; the remainder of the site slopes upward rather dramatically
toward the rear of 210 Main Street.
Soil Conditions: The subject property appears to have typical / suitable soil conditions to
accommodate developments.
Utilities:
Electricity: Electric Company
Sewer: Municipal sewer
Water: Municipal water
Natural Gas: Natural Gas Company
Underground Utilities: The site is serviced by underground utilities.
Adequacy: The subject's utilities are typical and adequate for the market area.
Site Improvements: • Street lighting: Yes
• Sidewalks: Yes
• Curb & Gutter: Yes
• The site that is to become the subject property is improved with lawn areas,
concrete stairs, a brick paver parking area 4+/- cars, some asphalt paving
(2+/- parking spots), etc.
Wetlands/Watershed: No wetlands were observed during our site inspection.
Bennett Franklin File # BF 10828 Page 19
Environmental Issues: There are no known adverse environmental conditions on the subject site.
Please reference Limiting Conditions and Assumptions.
Encumbrance /
Easements:
There are typical utility and municipal easements crossing the subject
property. After a review of the legal description contained in the deed it is our
opinion that there are no easements or restrictions that are considered to
adversely impact the subject property. Please reference Limiting Conditions
and Assumptions.
Site Comments: Based on the extraordinary assumption under which we are appraising the
subject property (architectural design and civil engineering complete), the
subject site has average/good utility compared to similar properties in the
market.
Aerial views of the subject property
Bennett Franklin File # BF 10828 Page 20
Subject
Subject
Bennett Franklin File # BF 10828 Page 21
Assessor’s Map
Subject
Subject
Bennett Franklin File # BF 10828 Page 22
“As Proposed” Survey
Bennett Franklin File # BF 10828 Page 23
Views of Crafts Avenue
Views of Roundhouse Plaza
Bennett Franklin File # BF 10828 Page 24
Flood Zone: The subject is located in an area mapped by the Federal Emergency
Management Agency (FEMA). The subject is located in FEMA flood zone C,
which is not 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. A copy of the appropriate portion of the
Flood Map is as follows.
Bennett Franklin File # BF 10828 Page 25
Zoning and Conformity
Zoning Code: Central Business (CB)
Zoning Description:
The Central Business zone allows for a variety of office, retail, residential,
mixed use and municipal uses.
Current Use Legally
Conforming:
The subject property as proposed will be a legal and conforming use.
Minimum
Land Area
Minimum
Frontage
Minimum Setback Maximum Building
Height Front Yard Side Yard Rear Yard
None None None None None 55 Feet
Zoning Comments
In addition to the noted requirements there is a 95% maximum building
coverage allowed in the CB zone. A copy of the appropriate portion of the
zoning map is below.
Subject
Bennett Franklin File # BF 10828 Page 26
Improvements Description
The subject property is a 5,329+/- square foot parcel of land that is proposed to be created by
subdividing off portions of two abutting parcels identified as 210 Main Street and 212 Main
Street in Northampton, MA; we have been asked to provide our opinion of value for the subject
property (as proposed) under the extraordinary assumption that the 5,329+/- square feet of land is
subdivided and created as its own parcel with architectural design and civil engineering
completed in preparation for the site to be improved with a multi-family home that will contain
between 24 and 28 studio units. The site is currently improved with lawn areas, concrete
staircases, a brick paver parking area (4+/- cars), some asphalt paving (2+/- parking spots), etc.
Photos
Bennett Franklin File # BF 10828 Page 27
OVERALL PROPERTY ANALYSIS
Design & Functional
Utility:
Subject to our extraordinary assumption, the subject property is
considered to have average/good utility compared to other potential
development sites; the property is being appraised assuming
architectural and engineering costs have been incurred and the site is
essentially 'shovel-ready' for development with a 24 to 28 unit
apartment building. Despite the topography issues associated with
the site, if the engineering and architectural work has been
completed and the property is made available for sale or
development, a buyer / developer would consider this a strong
positive characteristic in comparison to other 'raw' potentially
developable sites in the market area.
Deferred Maintenance: N/A.
Capital Improvements: N/A.
Overall Property
Comments:
The subject property is in an average/good to good location in a
market that indicates good demand for housing and is assumed to be
'shovel-ready' for development with a 24 to 28 unit apartment
building (average/good utility).
Bennett Franklin File # BF 10828 Page 28
Assessment and Taxes
Taxing Authority
Northampton
Assessment Year
2022
Real Estate Assessment and Taxes
Tax ID Land Improvements Other Total City
Rate
Taxes
Portion of Map 31D, Lots 163 and 167 $190,000 $0 $0 $190,000 $17.89 $3,399 Comments
There has been nominal changes to the tax rate and assessments in the recent past. Following the
creation of the subject property site, it is likely that the site will be assessed at or near a value of
$190,000, which is based on the assessed per square foot values of land indicated by other
properties in the area of the subject property ($30 to $50+ per SF of Land area); we based our
projected per square foot value at the lower end of the range due to the slope issues and
configuration of the property, whereas if the property were a flat, rectangular shaped parcel, we
would have projected a per square foot assessed value of the land area at the higher end of the
range.
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 location with average/good visibility and accessibility, the
existing neighborhood uses, the allowed uses, and the demand for commercial and residential use
space in the market, there would be a few development options for the site ‘as vacant’ (mixed
use with ground floor commercial and upper level apartments, multi-family, condominium
building, etc.). The neighborhood of the subject includes a mix of multi-family homes, mixed
use properties with ground floor retail and upper level office and / or apartment units, and some
municipal uses, all of which would be potential options for the subject property ‘as vacant’. In
our opinion, based on our research associated with supply and demand and the amount of rent
that can be charged for apartment units and the sale prices associated with residential
condominium units, both of which prove to offset and / or outweigh the costs of development,
we feel the HBU as vacant is for development with multi-unit residential improvements like
those that are proposed / planned for the site.
Bennett Franklin File # BF 10828 Page 29
Highest and Best Use as Improved
The subject property is a to be created parcel of land that will be ‘shovel-ready’ for development
with 24 to 28 studio apartment units. There is good demand for housing in the subject property
market area as apartment units in Northampton typically demand the highest rental rates in
region with only units in Amherst being able to demand similar rates as those indicated in
Northampton. Based on our research and analysis of the market and the specific proposed
improvements and use at the subject property, it is our opinion, that the HBU as improved is for
development with the proposed improvements for use as a multi-family property.
Market Analysis
Market conditions leading up to March / April 2020 had remained relatively stable. However,
with the on-set of the COVID-19 pandemic, uncertainty spread across most all markets. The
spread of COVID-19 is recognized as representing potentially significant threats to society, the
economy, real estate markets, and the subject property and its market area. During our analysis
of the market conditions pertaining to the subject we have not been able to quantify any
definitive long-term effects as there is not yet enough data from which to make an informed
proclamation; there has certainly been an impact, but scope and breadth of the impact is
uncertain at the present time and there is not enough data available to quantify the overall impact
on the current market conditions. However, there has definitely been an increase in vacancies /
tenant defaults at commercial use properties / associated with tenant occupied commercial use
spaces due to the impact of the virus despite Local, State, and National leaders implementing
numerous plans to attempt to stimulate the economy all while preventing the further spread of
the virus. Contrary to the commercial use space rental market, some property owners have
indicated they have seen a decrease in delinquent rental payments and tenant turnover, which
some attribute in part to the extended unemployment benefits and federal assistance to residents
trying to cope with the impact of COVID – 19, tenants lack of desire to move or relocate to new
residences during this time of uncertainty, and a moratorium on evictions.
Other factors driving the residential market demand include many urban located families
(Boston, NYC, etc.) seeking more ‘rural’ locations to raise their families; with increase of remote
working and the ability for employment and learning to be done remotely, many families that
resided in more expensive and more densely populated urban and metro areas have sought
housing in areas like Northampton and Amherst, which in turn has somewhat spurred an increase
in demand for housing in Town’s like Easthampton that is often considered a less expensive
alternative to communities like Northampton and Amherst.
While there is some angst and uncertainty still impacting the market, based on our due diligence
and conversations with area real estate professionals we have observed that there have been some
sales of similar properties in the market area with typical marketing periods ranging from 6+/- to
18+ months. Regionally, but more specifically in Northampton and Amherst market areas, and
to a lesser extent Easthampton, there have been some sales of somewhat similar properties over
the past few years; most of the somewhat comparable properties that have sold in the market area
have sold at values that indicated capitalization rates in the range of 5.0%+/- to 7.0%+/-.
Bennett Franklin File # BF 10828 Page 30
The properties that have sold include smaller multi-family and mixed use properties (4 to 20
units), mid-size complexes, and some larger complexes with 100’s of units; generally speaking,
price per unit values most recently witnessed range from $60,000 to $80,000 for older, urban
located properties, from $100,000 to $150,000 for more modern, well located, suburban or semi-
suburban located properties, and from $175,000+/- to $250,000+ for some that are located in
communities that are seen as ‘safer’ or ‘more sought after, stable’ investment areas (i.e.
Northampton and Amherst, etc.).
Construction of new market rate housing has been rather steady specifically concerning activity
in Northampton and Amherst. As noted in our “Town Analysis” there is good demand for
residential space in Northampton with a decent amount of recently completed, on-going, and
proposed developments of new housing. The typical developer of this type of property has been
paying between $400,000 and $4,600,000 for sites that can accommodate multi-family and
mixed use developments; most of the recent developments include a small scale commercial use
component. The range in values is driven by the location and utility of the property (i.e. how
many units can be developed on the property). Following permitting of these sites, which have
either been approved or are being applied for approval for development with between 28+/- to
140+/- units, a per unit value range of $35,000+/- to $55,000+/- is apparent. The newest
apartment units in Northampton and Amherst (the only other truly comparable community to the
subject property community) that would compete for tenants with the subject property ‘as
completed’ (assuming market rates) indicate rental rates in the range of $1,500+/- to $2,200+ per
month; the most recently constructed condominium units in the market area are being marketed
and successfully sold at values that range from $300,000+ to $850,000+ and $315+/- to $515+/-
per square foot.
Despite the recent and historical developments in Northampton, the apartment market remains
strong with many property owners and managers indicating their properties have operated at
vacancy rates in the range of 0% to 5% over the past several years, which has allowed for
increases in rental rates despite the additions of new housing units to the market as it appears
even with the addition of new units in Town, the demand outweighs the supply.
Similar new units as those that would likely be developed at the subject site have rents at the
high end of the range for the area and the region. The range of rates is most closely driven by the
rental terms (net of utilities, net of electricity, gross, etc.), the condition, location, and overall
size/square feet of the unit. Typically, units that are larger, in better condition, and / or rented on
a gross or net of electricity basis (i.e., owners include more of the monthly operating charges in
the monthly rent) will demand higher rental rates than units that are smaller or in inferior
condition, if all other variables are similar. The subject units are considered to be in excellent /
new condition ‘as completed’, are projected to likely be rented on a net of utilities basis and the
property is located in an average to average/good location. In our opinion, considering the
characteristics of the subject property (location, condition, size, rental terms, etc.) we feel market
rents at the middle to higher end of the noted ranges would be expected.
Bennett Franklin File # BF 10828 Page 31
In conclusion, we feel the subject property is located in a stable market that experiences some of
the highest demand on both the tenant and investor sides of the market in the region. We do not
anticipate any major swings in supply and demand, and it is likely that Northampton will remain
an attractive real estate market. Comparable properties in similar locations that do become
available for sale have recently been experiencing marketing periods of 6 to 18+ months. It is
our opinion that based upon the information provided there is average/good to good demand for
the subject property in the current market.
Exposure Period and Marketing Time
We have considered the supply of similar properties in the region and we have discussed
marketing times for similar properties with real estate brokers and investors. Additionally, we
have investigated the marketing times for specific comparable properties that we are familiar
with. Our opinion of value for the subject property is based on a number of factors that include
its location and utility.
Our opinion of value assumes that the subject property would have been exposed to the market
for approximately 6-18 months 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 our
understanding of the market and our due diligence effort, it is our opinion that if the subject
property were offered for sale at a price near to our appraised value, the marketing period would
be approximately 6-18 months.
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.
Bennett Franklin File # BF 10828 Page 32
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 being
valued as vacant, unimproved land, which makes development of the cost approach inapplicable.
A sales comparison analysis was considered and was developed because as there have been
sales of comparable properties in the market area from which a reasonable and credible opinion
of value can be determined.
An income analysis was considered and was not developed because the subject property type is
rarely leased to a tenant and owned as an investment, which makes the development of this
valuation method inapplicable.
Sales Comparison Approach
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 developable unit. 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 comparative unit of measurement and must be addressed before
comparisons of the sale(s) are made respective to the subject land.
We have researched three comparable sales 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 # BF 10828 Page 33
ID 8976 Date 7/2/2021
Address 107 Williams Street Price $466,000
City Northampton Price per Acre $1,792,308
State MA Financing Typical
Tax ID Map 32C, Lot 198 Property Rights Fee Simple
Grantor Arthur W. Sousa Price Per Land Unit $58,250
Grantee 4 Aces Realty, LLC Verification Grantee and Appraisal
Legal Description Book 14170, Page 166 Land Units 8
Acres 0.3 Topography Level
Land SF 11,326 Zoning URC-Commercial
Road Frontage 64 Flood Zone None
Shape Rectangular Encumbrance or None
Utilities Water, sewer, gas, Environmental Issues None
Transaction
Site
Comments
This property is situated on the westerly side of Williams Street in the southeasterly portion of the
Northampton, MA CBD. Williams Street is a secondary roadway through this portion of the City that
provides north – south travel through this portion of the city connecting with Hockanum Road with less
than 0.1 miles south of this property and connecting with Hancock Street within about a ¼ mile north of this
property. There are several other secondary roadways off of Williams Street in the neighborhood of this
property (Montview Avenue, Kary St, Holyoke Street, Isabella Street, and Eastern Avenue) that are
primarily improved with residential structures. This property is considered to be in an average overall
location.
At the time of the sale, this property was improved with a dilapidated single-family home that contained
approximately 950+/- square feet that was to be demolished ($33,000+/- cost) to allow for the site to be
redeveloped with an approximately 7,717 square foot, two and three-story, eight unit condominium property.
Each unit will contain between approximately 830 and 870 square feet that will be divided into a kitchen, a
living room, two-bedrooms, and one bathroom; the owners are reportedly planning on retaining ownership
of the units 'as completed' and renting them to multiple tenants. The provided budget indicates an
approximate total development cost of $2,841,429 (includes acquisition cost of $208,000 and demolition cost
of $33,000) to complete the proposed redevelopment of the property.
The effective sale price we noted includes the purchase price of $208,000 plus the demolition cost of $33,000
plus the soft cost (engineering and architectural costs) of $225,000 the owner indicated incurring. Our
effective sale price is intended to reflect the price the owner of the property paid for a cleared developable
site with engineering and architectural costs included. Thus, assuming these costs are included in the sale
price, the property would be considered to have average/good utility.
Land Comparable 1
Bennett Franklin File # BF 10828 Page 34
ID 6791 Date 3/17/2020
Address 10 Hawley Street Price $1,375,000
City Northampton Price per Acre $743,243
State MA Financing Typical
Tax ID 32A-171-001 Property Rights Fee Simple
Grantor The Roman Catholic Price Per Land Unit $41,667
Grantee O'Connell Hawley, LLC Verification Rep of Grantee
Legal Description B13567, P55 Land Units 33
Acres 1.9 Topography Level
Land SF 80,586 Zoning URC-Commercial
Road Frontage 346+/-Flood Zone None
Shape Irregular Encumbrance or None
Utilities Water, sewer, gas, Environmental Issues None
Land Comparable 2
Comments
Site
Transaction
This property is located in the CBD portion of Northampton, MA a few hundred feet from State Route 9.
This area is moderately traveled and developed with a mix of commercial, retail, and multi-unit residential
uses (market rate and affordable apartment properties). This property is considered to be in an
average/good location.
The buyer of this site purchased the property with plans to raze the rectory, garage, and vacant church that
improved the property to allow for the construction of 30 townhouse style condominiums. The rectory and
garage have been demolished at a reported cost of approximately $115,000, but the application to demolish
the church has twice been denied and the developer is now seeking approvals to convert the church to a 10
unit condominium building. As such, if built out as now planned, which will prove more expensive than
demolishing the church and building new would have if allowed, there will be 33 condominium units.
This parcel is deemed to have average utility, as the owners were required to pay for architectural and
engineering in addition to the purchase price and demolition costs.
The price noted included approximately $115,000 in demolition and removal costs associated with the
rectory and and outbuildings.
Bennett Franklin File # BF 10828 Page 35
ID 8438 Date 1/18/2019
Address 132 Northampton Road Price $1,182,000
City Amherst Price per Acre $1,343,182
State MA Financing Contract Financing
Tax ID Map 14C, Lot 8 Property Rights Fee Simple
Grantor Jeffrey M. Keedy and Mia Price Per Land Unit $42,214
Grantee Valley Community Verification Buyer/Appraisal
Legal Description Book 13182, Page 330 Land Units 28
#REF!
Acres 0.9 Topography Level
Land SF 38,333 Zoning R-G General Residence
Road Frontage 140+/-Flood Zone C
Shape Slightly Irregular Encumbrance or There are typical utility
Utilities Electric Company, Environmental Issues There are no known
Land Comparable 3
This property is situated along the southerly side of Northampton Road (SR 9) on the southwesterly
outskirts of the Amherst, MA CBD and abuts a portion of the Amherst College Campus (Lehrman Stadium
is located immediate south of this property). The neighborhood of this property is moderately / heavily to
heavily traveled and developed with a mix of property uses. Northampton Road is the primary roadway
through this portion of Amherst and provides access to and through the CBD of Amherst to the
east/northeast of this property and access to Hadley, Interstate 91, and Northampton to the west. Uses in
the neighborhood of this property include a number of smaller multi-family residential uses, some single
family homes, municipal uses, and institutional uses. The dominant use in the neighborhood is the Amherst
College Campus, a portion of which (Lehrman Stadium) is located immediately south of this property
location. In the westerly portion of the neighborhood, beginning primarily at / near the intersection of
University Drive and Northampton Road there is more of a commercial use presence with many local,
regional, and national retailers and service providers along with some larger apartment complexes that
include some older facilities and some of more recent construction. Overall, this property is considered to
be in an average/good location.
This property contains approximately 0.88 acres of land that was improved with an approximately 1,744
square foot single family home at the time of the sale; the buyers sought approvals and received them to
allow for the demolition of the improvements ($50,000) to allow for the site to be improved with a 2.5 story,
11,983 square foot building that will be divided into 28 studio apartment units and associated common area
and administrative staff space. The units will be leased to low income qualified tenants and was built at a
higher density than allowed by zoning (40b); the reported architectural and engineering costs associated
with this development were approximately $750,000.
Considering the characteristics of this property at the time of the sale, this property is considered to have
average/good utility (this is based on the effective sale price and what is included in the said sale price----
purchase price of $408,000, demolition cost of $50,000, and architectural and engineering cost of $725,000).
Site
Comments
Transaction
Bennett Franklin File # BF 10828 Page 36
Analysis Grid
The previously outlined sales have been analyzed and compared with the subject property. The
below sales comparison grid displays the subject property, the comparable sales and the
adjustments applied.
Address
City
State
Date
Price
Land Units
Price per Unit
Property Rights Fee Simple 0.0%Fee Simple 0.0%Fee Simple 0.0%
Financing Typical 0.0%Typical 0.0%
Contract
Financing 0.0%
Conditions of Sale Normal 0.0%Normal 0.0%
Arm's
Length 0.0%
Market Trends Through 11/1/2022 0.0%
Location
% Adjustment
$ Adjustment
Land Units
% Adjustment
$ Adjustment
Utility
% Adjustment
$ Adjustment
Net Adjustments
Gross Adjustments
-5.0%
$54,688
0.0%
15.0%0.0%
$55,338Adjusted Price per Unit $46,436
10.0%
0%0%
Adjusted Price per Unit $46,436
$0
0%
Average/Good
25.0%
$8,750
20%0%
AverageAverage/Good Average/Good
$0
24.00 8.00
-10%
33.00
$2,188
5%
$0
5%
Average/Good Average
$41,667Adjusted Price per Unit $58,250
$58,250
0.0%
Average/Good
5.0%
$43,750
210 Main Street (Rear)
MA
$42,214
Cash
Northampton Northampton
MAMA
$42,214
28.00
Conventional
Fee Simple
Transaction Adjustments
Land Analysis Grid Comp 1
24.00
$0 $58,250
MA
107 Williams Street 10 Hawley Street
Northampton
33.00
Comp 2
$41,667
Amherst
Comp 3
132 Northampton
Road
8.00
1/18/2019
Average/Good
-$5,825
$1,182,000$466,000
$0$2,913
28.00
0%
$0
$0
3/17/202011/1/2022 7/2/2021
$1,375,000
25.0% “Land Units” represents the number of units the site was either intended to be developed with or
with which they were ultimately developed.
Bennett Franklin File # BF 10828 Page 37
Comparable 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 unit 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
We have noted sales of similar parcels of land in the market area. The sale prices in the general
market over the 12 to 24+/- months have been relatively stable in regard to the multi-family and
mixed use development markets. Prior to the last 24 months the market was not as robust. As
such, we have not made any adjustment to comparable Sale 1, but we have made upward
adjustments to Sale 2 and Sale 3 to account for the increases in values witnessed in the market
since the time of these properties being sold.
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 comparable sales.
Bennett Franklin File # BF 10828 Page 38
Property Rights Conveyed
We are appraising the fee simple interest in the subject property. The buyers purchased or are
purchasing the fee simple interest to each sale since the land was / is either vacant or
unencumbered by long-term leases, which is similar to the subject property.
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, the sales have been rated similar to the subject
for this element of comparison and no adjustments are necessary.
Land Sale Comparison
Location: Comparable Sales 2 and 3 are deemed to be located in similar locations as the subject
property. These sales are located in areas in which there are some slight differences in regard to
accessibility, visibility, and neighborhood uses, but these sales are located in areas in either
Northampton or Amherst where properties typically demand similar rental rates and / or sale
prices as similar properties in the neighborhood of the subject property, so we have made no
adjustments to these sales. Sale 1 is located on more of a residentially improved, secondary
roadway on the periphery of the Northampton CBD; in our opinion, this property is located in an
inferior location than the subject property and the other two comparable sales; therefore, we have
made an upward adjustment to this sale.
Number of Units (Approved and / or Proposed): Comparable Sale 1 was approved / designed for
development with eight units, which is a smaller number of units than that which is proposed for
the subject property (24 to 28); as such, we have rated this sale superior to the subject property in
regard to number of units based on the Economies of Scale Principle. This theory is based on the
premise that when buying or selling a product, a higher per unit value is typically indicated by a
sale of a smaller number of units of the product than the per unit value indicated by a sale of a
larger number of units of the same product if all other variables are similar. Sale 2 has a larger
number of units than the subject property, so we have made an upward adjustment to this sale
based on the Economies of Scale Principle. Sale 3 has an overall similar number of units as the
subject property, so no adjustment has been made to this sale.
Utility: Utility considerations involve a specific property’s topography, zoning, configuration,
amount of street frontage, wetlands areas, permits / development potential, etc. Based on the
characteristics of the subject property (see extraordinary assumption), the subject is considered to
have overall average / good utility, which is superior to comparable Sale 2 and similar to
comparable Sale 1 and Sale 3. The per unit sale price indicated by Sale 2 does not include the
additional architectural and engineering fees that the owner incurred outside of the purchase
price and demolition costs associated with this development, so an upward adjustment to this
sale has been included. The per unit sale prices of Sale 1 and Sale 3 include the architectural and
engineering fees, demolition fees, and purchase prices of the properties, which results in a
similar overall utility rating for these properties compared to the subject property. As such, we
have not applied any adjustments to these sales.
Bennett Franklin File # BF 10828 Page 39
Land Valuation Conclusion
The adjusted values of the comparable properties range from $46,436 to $55,338 per developable
unit and the average is $52,154. In our final analysis we have placed equal reliance on all of the
comparable sales as despite requiring differing amounts of adjustments we feel the adjustments
we did include are reasonable and that all of the value indications result in reasonable and
credible value indications for the subject property. In addition, with the lack of one or two ‘most
similar’ sales on which we felt placing emphasis was warranted, we feel placing equal reliance
on all of the sales is most reasonable.. Thus, our final reconciled per unit value is projected at
$52,000.
We have calculated our opinion of value range in the following tables:
As Vacant Market Value – Land (24 Units Developable)
Indicated Value Per Unit: $52,000
Subject Size: 24.00 Units
Indicated Value: $1,248,000
Rounded: $1,250,000
One Million Two Hundred Fifty Thousand Dollars
To
As Vacant Market Value – Land (28 Units Developable)
Indicated Value Per Unit: $52,000
Subject Size: 28.00 Units
Indicated Value: $1,456,000
Rounded: $1,460,000
One Million Four Hundred Sixty Thousand Dollars
Bennett Franklin File # BF 10828 Page 40
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.
Opinion of “As Is” Value via “As Is” Market Value
Sales Comparison Approach and Deduction $1,250,000
To
$1,460,000
Sales Comparison Approach
The subject’s site value is estimated from a vacant land sales that are considered comparable
(location, zoning, recent sales) to the subject. The sales data included potentially competing sites
with similar property characteristics as the subject. Qualitative and quantitative comparisons
were made to each of the land sales and there is market data support for these comparisons. The
per unit values are consistent with the market and as such, it is our opinion that the site valuation
is adequately supported and lends support to the valuation of the subject.
Conclusion
It is our conclusion that the opinion of value (range) determined from the sales comparison
approach is well supported and results in a credible opinion of value (range) for the subject
property. In addition, it is our understanding that most potential purchasers of the subject
property typically place primary reliance on the approach to value and methods we have
employed to determine our opinion of value for the subject property. Therefore, based upon the
analysis completed it is our opinion that the "as is" Market Value of the Fee Simple interest in
the subject property, as of November 1, 2022 is:
One Million Two Hundred Fifty Thousand Dollars
$1,250,000
To
One Million Four Hundred Sixty Thousand Dollars
$1,460,000
Bennett Franklin File # BF 10828 Page 41
Addenda
Bennett Franklin File # BF 10828 Page 42
Bennett Franklin File # BF 10828 Page 43
Bennett Franklin File # BF 10828 Page 44
Bennett Franklin File # BF 10828 Page 45
Bennett Franklin File # BF 10828 Page 46
Bennett Franklin File # BF 10828 Page 47
Bennett Franklin File # BF 10828 Page 48