6. TPT Property PurchaseM.. .... ..ji
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Mr. David B. Routzahn, Tax Accountant
445 Main Street
Kalispell, Mt. 59901
Re: "TPT" Office Buildings and Vacant Land
Kalispell, Mt.
Dear Mr. Routzahn:
November 17, 199
As requested, I have personally inspected the site and performed a summan
appraisal for the above referenced improved property located at 420 and 416 % First
Avenue East and vacant lots 7, 8 and N-20' lot 9, Block 76, Kalispell, Mt.. The purpose
of this summary appraisal was to estimate the market value of the fee simple estate of the
property described herein, based on market conditions prevailing on November 6, 1997.
(Date of site inspection).
Based on the results of my work and analysis, as summarized in this report, and
other information contained in the office files, in conjunction with my professional
experience. It is my opinion and conclusion that the estimated market value of the fee
simple estate as of date of site inspection - as is:
r "TPT" Improved Property
One Hundred Ninety-five Thousand Dollars
(S 195,000.00 )
Vacant Lots
Eighty-five Thousand Dollars
($ 85,000.00 )
This summary appraisal report is based, in part, on the facts and data included in
this report.
Respec fully,
Rex Bo er, I
Certifie Appraiser #442
Mt. Broker/Consultant
2) � d
`PT" November 17, 1997
Executive Summary
Property
Type: Improvements - Commercial Buildings and Vacant City Lots
Property
Location: 416 % and 420 First Avenue East, and Lots 7, 8 and N-20' 9,all m Block 76,
Kalispell, Mt.
Owner of
Record: David E. Thompson Revocable Trust
Date of
Valuation: November 6, 1997 (Date of site inspection)
Property Rights
Appraised: Fee simple estate
Site Data: Rectangular shaped city lots, 25'x 140'. Improved property considered on
lots 3, 4, 5 and 6, with interior parking between and in front of the buildings.
Buildings sf appx. 2,520 and 2,940 for total of 5,460 sf, site sf appx. 14,000
sf. Vacant lots 7, 8 and N - 20' 9, asphalt paved parking, appx. 9,800 sf.
Improvement
Data: Two separate one story commercial buildings. Building at 420 1" Avenue
fronts on First Avenue and has appx. 2,520 sf. the other building at 416 % -
424 First Avenue fronts on the alley and has appx. 2,940 sf.
Zoning: City Zoning - B-4 Central Business
Highest and
Best Use: As though vacant and as improved - commercial use.
Value
Indications: "TPT" improved property:
Site value
Cost Approach
Income Capitalization Approach
Sales Comparison Approach
Vacant city lots
Final Value
Estimate: "TPT" improved property
Vacant city lots
$ 110,000
$ 195,000
$ 190,000
$ 195,000
$ 85,000
S 195,000 - " As is "
S 85,000
2
'PT" November 17, 1997
Consideration was given to " time trending " of sales, because of the lack of and
time of sales, however in the final analysis land sales and values are estimated to have
been relatively stable and no appreciation adjustment was estimated. Further support is
contained in the office files.
Smaller properties typically reflect higher unit values as the results of the
principals of economics of scale. However, there is a threshold where smaller properties
become less desirable because of poor utility. For the subjects, property size was
considered by each value parcel as separate, (TPT - improved parcel lots 3, 4, 5 and 6 as
one parcel and vacant lots 7, 8 & N 20' lot 9 as another parcel; as specifically requested)
In other words, the smallest parcel for highest value was the standard of value estimate
for this appraisal.
Final Reconciliation
No land sales were exactly similar to the subjects. The above comparisons indicate
a range of 6.65 per sf to 9.14. The low range of 6.65 (1) was the most recent, however,
this situation was viewed as somewhat unusual in the fact that it was a sale by a
government entity, City of Kalispell, and was primarily induced by adding other
development, upcoming City elections, etc.. Accordingly, this sale was considered low in
relation to the market. The other recent sale, KM, (7) was a larger, %2 city block, size
parcel, which generally command a lower per unit value. The sales considered most
comparable were (5) and (6) and because of size a somewhat higher unit value.
Accordingly the larger parcel with the improvements of 14,000 sf was deemed to have a
representative per unit value of 8.00 per sf. The vacant lots were considered of higher
value as they are unimproved and would be readily available for development,
accordingly they were deemed to have a per sf value of 8.75.
Site Value ( Land):
TPT Improved Site - Lots 3, 4,5 & 6
14,000 sf at 8.00 = 112,500 (rounded) 110,000
Vacant Site - Lots 7, 8, & N 20' 9
9,800 sf at 8.75 = 85,750 (rounded) 85,000