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Home My WebLink About2013-33 Marrett Rd Prop Appraisal-March STM i �I Property Appraised AMENDING LETTER 9.98+/-ACRES LAND&1WROVEMENTS 33 Marrett Raod Lexington,Massachusetts Trustees of the Supreme Council +, of the Ancient Accepted Scottish Rite of Freemasonry - l i l Real Estate Appraisal&Consulting eFoster Comps (!I The Real Estate Appraisal and Consulting o stet Company February 19,2013 Karen Mullins Director of Community Development Town of Lexington 1625 Massachusetts Avenue Lexington, MA 02420 33 Marrett Road,Lexington Dear Ms. Mullins: In accordance with your request for a new estimate of the market value of the real estate originally consisting of land improved with a large institutional office building, a renovated carriage house and a single family home located at 33 Marrett Road, Lexington, Massachusetts, owned by Trustees of the Supreme Council of the Ancient Accepted Scottish Rite of Freemasonry, we have examined the property and submit herewith our complete appraisal in the form of an amending letter to our original report. The purpose of this appraisal is to estimate the proposed fee acquisition the subject property. The following is our supplemental report in the form of an amending letter, prepared in conformance with the Uniform Standards of Professional Appraisal Practice (USPAP) 2012 — 2013 Edition which describes our method of approach and sets forth a description of the property, together with an analysis of data and the reasoning underlying the conclusions derived in our investigation. It hereby incorporates by reference our original appraisal report with a transmittal date of December 3, 2012. This supplemental appraisal report is considered part of that document and cannot be understood without it. We hereby certify that we have no present or future contemplated interest herein, and that our 1 employment in making this appraisal is in no way contingent on the amount of our valuation. This appraisal report has been prepared for the exclusive benefit of the client and intended user,the town of Lexington as well as the Commonwealth of Massachusetts to which an application for funding of the acquisition is anticipated. It conforms to State "EOEA Specifications for Analytical Narrative Appraisal Reports" and the Uniform Standards of Professional Appraisal Practice 2012- 2013 edition. It may not be used or relied upon by any other party. Any party who uses or relies upon any information in this report,without the preparer's written consent, does so at his own risk. 100 Erdman Way, Leominster, Massachusetts 01453-1804 Phone: (978)534-1350 • Fax: (978)534-1913 www.thefostercompany.com Karen Mullins Page 2 February 19, 2013 Summary of Facts and opinions: (a) Owner: Trustees of the Supreme Council of the Ancient Accepted Scottish Rite of Freemasonry (b) Original and Amended Date of Valuation: October 2, 2012 (c) Original Highest and Best Use: Existing instructional building and 8 residential house lots; Amended Highest and Best Use: Existing instructional building and 9 residential house lots (d) Amended Estimate of Value: $8,200,000 Summaa of Original Appraisal: On December 3, 2012 we completed an appraisal report of the above referenced property with an effective date of value of October 2, 2012. The value reported in the original appraisal is as follows: SEVEN MILLION SIX HUNDRED SEVENTY THOUSAND DOLLARS $7,670,000 Changes from the original to new appraisal conclusions: The original appraisal report was based on a land area of 10.3+/- acres. A small parcel of land known as the `pine grove' has been removed from the subject property, bringing the area appraised to 9.98 acres. The parcel's frontage is unaffected. The pine grove area consists of level ground with a small stand of pine trees and driveways to the front and rear of the principal improvements. In the original report, it was assumed that the parcel would have access via and easement over other land controlled by the owner to these driveways. Access over these driveways is similarly assumed. The value conclusion in the original appraisal report was based on a conceptual development study prepared by GCG Associates, Inc. which showed the improved lot and 8 potential residential building lots. GCG has revised this plan to show that 9 residential house lots are possible with the elimination of a detention pond. The length of road required to construct the cul-de-sac shown is unchanged. The lot areas, including the area associated with the institutional building changed slightly, but none of the changes had a material effect on the value of the various lots. The Lexington Planning Department has deemed this revision of the plan to be reasonable. The Real Estate Appraisal and Consulting ]Foster Company Karen Mullins Page 3 February 19, 2013 New Estimate of Value: In the original appraisal, the value conclusion was based the Capitalization of Income Approach to Value using the Cost of Development Method. As can be seen in the revised schedules showing the new lot using the same value as used for the similar lot valued in the original report, the average lot value increases in the first year with the sale of this lot during this period. Frontage on Marrett Road allows the lot to be sold in the initial period. The only other changes to the Discounted Cash Flow analysis include a slight increase in the engineering costs due to the extra lot. The presence of the extra lot increases the value by the Income Approach from $7,670,000 to $8,200,000. Thus, there is a change in value of the market value of the subject property as a result of the change in the number of potential residential lots from 8 to 9 despite the small change in area of the institutional lot. Therefore,the value as amended in this supplemental appraisal as of October 2, 2012 is as follows: EIGHT MILLION TWO HUNDRED THOUSAND DOLLARS - $8,200,000 This opinion is subject to the assumptions, contingencies and limitations as set forth in the J p following report. Very truly yours, FOSTER APPRAISAL& CONSULTING CO., INC. Kenneth J. Croft III, Esq., Vice President Massachusetts Certified General Appraiser 43579 Real Estate Appraisal and Consulting The o C F ster ompany CERTIFICATION With respect to the real estate consisting of 9.98 +/- acres of land owned by Trustees of the Supreme Council of the Ancient Accepted Scottish Rite of Freemasonry located at 33 Marrett Road, Lexington, Massachusetts, further described herein, we hereby 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 interest in the property that is the subject of this report, and we 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. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics & standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. ls'-enneth J. Croft III, Esq. made a personal inspection of the exterior of property that is the subject of this report. No one provided significant real property appraisal assistance to the persons signing this certification. Real Estate Appraisal&Consulting eFoster - Company CERTIFICATION OF VALUE (continued) I have performed no services as an appraiser or in any other capacity regarding the property that is the subject of this amended report other than the appraisal referenced by this amended report within the three year period immediately preceding acceptance of this assignment other than the original appraisal that is incorporated by reference into this amending letter. In our opinion, the estimated market value fee simple of subject property as of October 2, 2012,is: EIGHT MILLION TWO HUNDRED THOUSAND DOLLARS $8,200,000 FOSTER APPRAISAL & CONSULTING CO., INC. Kenneth J. Croft III, Esq. Massachusetts Certified General Appraiser#3579 Real Estate Appraisal&Consulting he Oster Company S R NUS k DDRARI' S fl WSEW 6 DDPART t 1 m e3A - \ t - Y_ r YA p �� s � ® d �'. NOTE: `' THIS ANALYSIS ASSUMES THAT ro STORMWATER WILL BE ADDRESSED ON y INDIVIDUAL LOTS FOR THE ROADWAY. ,✓ � ` 31-1 - l ' ai-AIJ ,2 � f , � e •_ CONCEPTUAL — MIXED USE 33 MARRETT ROAD LEXINGTON, MA r , GCG ASSOCIATES, INC. w _ - .I>rn,aro+ MAS3M11V$Ti5 SCALE:1"-150' DATE:FEDRUARY 5,2013 w R, ELAN JOB NOAME NAmE:j DESIGNED Sr.S.D.H. PLAN N0. o SCALE: 1-m150' '�" "�- � CHECKED DY:M.8 G `I OF 1 c .n n w LOT PRICE SCHEDULE RESIDENTIAL LOT PRICING SCHEDULE Lot Number Lot Area Description Value 1 0.62 ForinA $690,000 Form A $690 2 0.76 ,000 3 0.49 Form A; corner $710,000 4 0.39 Cul-de-sac $725,000 5 0.39 Cul-de-sac $725,000 6 0.40 Cul-de-sac $725,000 7 0.37 Cul-de-sac $725,000 8 0.36 Form A;coiner $710,000 House (Lot 9) 0.50 Fonn A $690,000 Office Lot 5.09 Office Lot N/A Total Lots 9.37 $710,000 Road Area 0.61 Total Area 9.98 ki Real Estate Appraisal&Consulting 111eFoster Company DISCOUNTED CASH FLOW ANALYSIS DISCOUNTED CASH FLOW ANALYSIS 9 LOT DEFINITIVE SUBDIVISION 33 MARRETT ROAD,LEXINGTON 8 LOT SUBDIVISION Year: 1 2 INCOME Lot Sales 5 4 Average lot price $698,000 $725,000 GROSS LOT SALES $3,490,000 $2,900,000 DEVELOPMENT EXPENSES Brokerage 5.465% $190,729 $158,485 Legal per lot $800 $400 $3,200 Engineering and Pennitting $60,000 Demolition $20,000 Roads $247,500 Real Estate Taxes $3,700 $18,690 Overhead and Profit 12% $418,800 $348,000 TOTAL EXPENSES $945,529 $528,375 NET INCOME $2,544,472 $2,371,625 DISCOUNT RATE 8.25% 1.083 1.172 PRESENT WORTH $2,350,551 $2,023,905 INDICATED MARKET VALUE $4,374,457 ROUNDED TO $4,370,000 ADD BUILDING $3,830,000 TOTAL VALUE $8,200,000 Real Estate Appraisal&Consulting i L1efi Ster Comp