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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