Appraisal 4877 Laurel St New Orleans LA 2012

SUMMARY APPRAISAL REPORT FORMER FIRE STATION 4877 LAUREL STREET NEW ORLEANS, LOUISIANA 70115

PREPARED FOR MARTHA J. GRISET REAL ESTATE & RECORDS DEPARTMENT CITY OF NEW ORLEANS - CITY HALL 1300 PERDIDO STREET - ROOM 5W06 NEW ORLEANS, LOUISIANA PREPARED BY GAYLE H. BOUDOUSQUIE & ASSOCIATES 228 SAINT CHARLES AVE. SUITE 1331 NEW ORLEANS, LA 70130 APPRAISER GAYLE H. BOUDOUSQUIE, MAI LOUISIANA CERTIFIED GENERAL REAL ESTATE APPRAISER LICENSE NO. G0125 AND BONNIE R. CURRY LOUISIANA CERTIFIED GENERAL REAL ESTATE APPRAISER LICENSE NO. G1023 AS OF SEPTEMBER 18, 2012

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Gayle H. Boudousquie & Associates 228 St. Charles Ave. Suite 1331 New Orleans, LA. 70130 (504) 525-5700

Fax (504) 525-5705 Cell (504) 495-2772 E-mail gaylehb@bellsouth.net September 27, 2012

Martha J. Griset Real Estate & Records Department City of New Orleans City Hall 1300 Perdido Street Room 5W06 New Orleans, LA 70112 Our File No.: 2012-23 Re:

Summary Appraisal Report Former Fire Station 4822 Laurel Street New Orleans, Louisiana 70115

Dear Ms. Griset: Pursuant to your authorization for an appraisal of the above captioned property, we have completed an on site inspection on September 18, 2012. We have analyzed the neighborhood and comparable data necessary to estimate the “as is” market value of the fee simple interest at highest and best use.

The subject property is a two-story 3,779+/- square foot former firehouse, which includes rear stable building both in poor condition. Poor condition is defined as a property requiring complete renovation and structural repair. The subject’s roof has failed with the upper floor open to the elements. In addition there is a masonry crack along the Upperline sidewall above the archway.

The property was constructed in 1910. The firehouse was used by NORD pre Katrina but has been vacant since the storm. The building’s roof was damaged by Katrina leaving large gaps for water intrusion. The building has been left unattended since that time. Hurricane Isaac further compromised the condition with additional wind and water damage. The assumption of this report is that the structure is sound but it is recommended that a structural engineer inspect the property and report on the overall integrity of the building.

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Martha J. Griset Page 2 The improvements are situated on 3,654 square feet of land on the northeast corner of Upperline and Laurel Street, New Orleans, Louisiana across from Wisner Playground. The neighborhood is a combination of residential, small commercial, and some industrial near the river.

The neighborhood is known as West Riverside, a part of Uptown bounded by the Mississippi River to the south, Napoleon Avenue to the east, Webster Street to the west and Magazine Street.

This is a demand neighborhood able to support the expense necessary to convert the subject, a 100+ year-old firehouse, to an alternative use.

Based on the quality and quantity of data, as well as current economic conditions, the “as is� value as of September 18, 2012 is ONE HUNDRED NINTY THOUSAND DOLLARS ($190,000.00) We hereby certify that we have no present or future contemplated interest in the subject property or any related third party interest in this property. This value assumes there are no hazardous substances on the property.

This letter of transmittal only serves to report the final value estimate conclusion reached in the full summary report, which follows, and must not be misconstrued to represent a complete appraisal in and of itself. This report is subject to the assumptions and limiting conditions as stated herein. I sincerely hope this report serves the needs of the City of New Orleans adequately.

If there are any questions or if we may be of further service, please feel free to call.

Respectfully submitted,

Gayle H. Boudousquie, MAI Louisiana Certified General Real Estate Appraiser License, No. G0125

Bonnie R. Curry Louisiana Certified General Real Estate Appraiser License No. G102

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Appraisal Report

4877 Laurel St., New Orleans, La. CERTIFICATION

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 is our personal, unbiased professional analyses, opinions, and conclusions.

We have no present or perspective interest in the property that is the subject of this report, and we have no personal interest or bias with respect to the parties involved. our compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this report. the analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics of which the undersigned is a member of The Appraisal Institute. the analyses, opinions, and conclusions were developed and this report prepared in conformity with the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation and the Louisiana Certified Real Estate Appraisers Law. the use of this report is subject to the requirements of the appraisal organizations of which the appraiser is a member relating to review by its duly authorized representatives.

We have made a personal inspection of the property that is the subject of this report. We have made an exterior inspection of the comparables that are used in this report. no one other than associates in this office or outside consultants as noted provided significant professional assistance in the preparation of this report. the appraisal assignment was not based on a requested minimum valuation, or specific valuation or the approval of a loan. the undersigned designated appraisers have completed the requirements under the continuing education program of the appraisal organizations for which he is a member.

-We have completed previous appraisal assignments of similar type properties and have not completed any appraisal, review or consulting assignment the subject property over the last three years.

___________________________________

_________________________________

GAYLE H. BOUDOUSQUIE, MAI LOUISIANA CERTIFIED GENERAL REAL ESTATE APPRAISER LICENSE No. G-0125

BONNIE R. CURRY LOUISIANA CERTIFIED GENERAL REAL ESTATE APPRAISER LICENSE NO. G1023

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Appraisal Report

4877 Laurel St., New Orleans, La. SUMMARY OF SALIENT FACTS AND CONCLUSIONS

Address of Subject:

4877 Laurel Street New Orleans, LA September 27, 2012 September 18, 2012 Summary Appraisal Report Fee Simple RM-2, Multi-Family Residential District Former Fire Station

Date of Appraisal: Date of Value: Type of Appraisal: Property Rights Appraised: Zoning: Property Type: Site Description:

3,654+/- square feet with frontage on Laurel and Upperline Streets

Improvements:

Vacant 3,233± square foot former firehouse and 546± square foot stable – gross building area is 3,779± square feet requiring structural and full interior restoration.

Highest and Best Use:

Re-Development of building alternative allowable use.

Value by the Cost Approach: Value by the Sales Comparison Approach: Value by the Income Approach:

N/A $190,000 N/A

“As Is” Market Value:

$190,000.00

into

an

Appraisers: Gayle H. Boudousquie, MAI Louisiana Certified General Real Estate Appraiser License, No.G0125 and Bonnie R. Curry Louisiana Certified General Real Estate Appraiser License No. G1023

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Appraisal Report

4877 Laurel St., New Orleans, La. ASSUMPTIONS AND LIMITING CONDITIONS

An oral or written report, counseling letter or any assignment in which an indication of value is rendered is considered an APPRAISAL. The appraisal assignment is subject to the following assumptions and limiting conditions.

This appraisal report has been made with the following general assumptions.

1.

No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated.

2.

The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated.

3.

The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy.

4.

All engineering is assumed to be correct. The plot plans and illustrative material in the report are included only to assist the reader in visualizing the property and should not be construed as exact.

5.

It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report.

6.

It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless nonconformity has been stated, defined, and considered in the appraisal report.

7.

It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based.

8.

It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report.

9.

The assignment is conducted on the assumption that all improvements are completed and in place.

10.

The quality of on site management can have a direct effect on the property's economic viability and market value. The financial forecasts contained in this assignment assume both responsible ownership and competent management. Any variance from this assumption could have a significant impact on the forecasted value estimate.

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Appraisal Report

4877 Laurel St., New Orleans, La.

11.

All estimates, projections and forecasts contained in this assignment are based upon an evaluation of the present general level of the economy in the area. This does not take into account nor make provision for the effect of any sharp rise or decline in the local or general economic conditions. All estimates, projections and forecasts contained in this report are considered to be reasonable probabilities but are in no manner guaranteed, and we assume no liability for any deviation in the estimates, projections and forecasts.

12.

The appraisers assume that there are no hidden or unapparent conditions of the property, sub-soil or structures, which would render it more or less valuable. No responsibility is assumed for such conditions, the cost to correct any defects now existing or that may develop in the future or for the cost of engineering, which may be required to discover them.

13.

Unless otherwise stated in this report, the existence of hazardous substances, including without limitation asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to the attention of nor did the appraiser become aware of such during the appraiser's inspection. The appraiser has no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraiser, however, is not qualified to test such substances or conditions. If the presence of such substances, such as asbestos, urea formaldehyde, foam insulation, or other hazardous substances or environmental conditions, may affect the value of the property, the value estimated is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in the field of environmental impacts upon real estate if so desired.

This appraisal report has been made with the following general limiting conditions:

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Appraisal Report

4877 Laurel St., New Orleans, La. SCOPE OF THE APPRAISAL

The subject is located in an area known as Uptown or more specifically West Riverside according to the city planning commission. The subject was a former Fire Station – vacant since Katrina. The property is in poor condition. The appraisers have done the following: • • • • • • • •

Inspected the subject site and improvements.

The subject is valued “as is”.

Information provided by the client is utilized in the report.

Researched sales of buildings in poor condition and land sales in the subject’s Uptown/Garden District neighborhood.

Used the Sales Comparison Approach.

The Cost Approach is not an indicator of value and is not utilized in this report.

The Income Approach is not an indicator of value and is not utilized in this report.

The value by the Sales Comparison Approach is the final “as is” market value.

In the appraisal of the subject property, the appraiser obtained data from the following sources: • • • • • • • • • • • •

Ownership Title Data Onsite inspection of the subject property and real estate market areas Gathering and investigating real estate market data: Public records, real estate agents, real estate appraisers, sellers and purchasers FEMA Flood Zone Data Analysis of land use trends Analysis of local area demographic data Parish government: Clerk of Court Records Assessor’s Records Local real estate agents and appraisers The University of New Orleans Market Data Center, Metropolitan New Orleans Real Estate Market Analysis, Turing the Corner, March 2012 (Volume 44) Uniform Standards of Professional Appraisal Practice, Appraisal Foundation, 2012 edition

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Appraisal Report

4877 Laurel St., New Orleans, La. PURPOSE AND INTENDED USE OF THE APPRAISAL

The exclusive use of the City of New Orleans for possible sale purposes.

DEFINITION OF MARKET VALUE The United States Treasury Department, Comptroller of the Currency 12 CFR part 34.43(f) defines “Market Value”: “The most probable price 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 is 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 interests; 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.”

PROPERTY RIGHTS APPRAISED Fee Simple Fee ownership is defined as the following: “Fee simple estate is described as absolute ownership unencumbered by any other interest or estate subject only to the government powers of taxation, eminent domain, police power and escheat”.

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Appraisal Report STATEMENT OF OWNERSHIP The City of New Orleans, owns the property.

EFFECTIVE DATE OF APPRAISAL The effective date of this appraisal is September 18, 2012.

DATE OF REPORT Date of the report is September 27, 2012.

12 The Appraisal of Real Estate, Appraisal Institute, Thirteenth Edition, 2008.

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4877 Laurel St., New Orleans, La.

Appraisal Report

4877 Laurel St., New Orleans, La.

LEGAL DESCRIPTION The subject fire station is located in Square 179, Lot A. The legal description provided is shown below:

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Appraisal Report

4877 Laurel St., New Orleans, La. PLOT PLAN

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Appraisal Report

4877 Laurel St., New Orleans, La. NEIGHBORHOOD MAP

VICINITY MAP

Subject

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Appraisal Report

4877 Laurel St., New Orleans, La. NEIGHBORHOOD HBORHOOD DESCRIPTION

The West Riverside neighborhood of New Orlean is a subdistrict of the Uptown/Carrollton, its boundaries as defined by the City Planning Commission are: Magazine Street to the north, Napoleon Avenue to the east, the Misissippi River to the south and Webster Street to the west.

This has not traditionally been a separate neighborhood as most of this area has been considered part of Uptown New Orleans throughout most of its history. This name was only artificially created by the City Planning Commission and most residents do not identify with it.

The Uptown District, beginning upriver at the Garden District and stretching to Broadway, is a self-contained residential world. It’s a place where late 19th century homes are scrupulously maintained and small scale restaurants and shops reinforce the feeling that you are visiting a village, not a city.

Uptown retains many of the grand homes built in the 1890s along St. Charles Avenue and in exclusive cul-de-sac developments like Rosa Park. On oak-shaded streets intersecting St. Charles Avenue, frame houses with ample galleries are the norm. Closer to the river, more modest shotguns built to house 19th century workers are steadily being refurbished, insuring that this premier urban residential neighborhood for over a century will continue its legacy of growth.

Audubon Park is a focus of uptown, opened in 1898 as the site of World Cotton Centennial in 1884. People travel from near and far to marvel at and enjoy the ever-beautiful oak trees, lagoons, and expansive green space located within the park. For the millions who use the park for picnics, relaxing, walking, running, cycling and special events there is no better place in New Orleans for recreational fun and relaxation.

Named after artist and naturalist John James Audubon who lived in New Orleans starting in 1821, the park features a 1.8 paved loop for joggers, cyclists, and roller-bladers and several covered shelters ideal for a family reunion or a simple gathering with friends and family.

Audubon Park is located just minutes from downtown New Orleans on the St. Charles Avenue streetcar line, across from Tulane and Loyola universities. Within its walls sits the Audubon Trail Golf Course and Audubon Zoo. The median sale price for homes in the subject’s 70115 area code according to Trulia from June 2012 to August 2012 was $370,000 based on 102 sales. Compared to the same period one year ago, the median sale price increased 10.1% or $27,100, and the number of sales increased 14.6%.

There are currently 103 resale and new home sales including 62 homes in pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The average list price for single family residential in this area is $437,589 for the week ending September 2012, which represents an increase of 0.4%, or $1,576, compared to the prior week.

The subject site is bounded by Lyons Street to the east and Constance Street to the north and fronts Laurel Street on the corner of Upperline Street. The adjacent neighborhoods are the Garden District to the east and Carrollton to the north/west. Wisner Playground is across from the subject in the square bounded on the south side by Annunciation Street.

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Appraisal Report

4877 Laurel St., New Orleans, La.

Wisner Playground from Laurel and Upperline

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Appraisal Report

4877 Laurel St., New Orleans, La. ZONING

Zoning is the public regulation of the character and extent of real estate use through police power; accomplished by establishing districts or areas with uniform restrictions relating to improvements, structure heights, areas, bulk, density of population, and other limitations on the use and development of private property.

The subject property is zoned RM-2, Multi-Family District. The purpose of the district is to maintain a residential environment while permitting a variety of dwelling types. Population density is maintained in the high-medium range, while buildings are permitted to rise to seventyfive feet. Larger buildings are permitted to contain certain necessary commercial uses for the convenience of tenants. The district should be useful in the gradual rebuilding of certain older sections of the city.

Permitted uses are only those uses of land listed under permitted use, accessory use, or conditional use provisions of this section are authorized within the zoning district. Following are a few of the permitted uses except that time share buildings and transient vacations are prohibited.

Any permitted use authorized in the RS-1 Single-Family Residential District which includes public and government buildings limited to police stations, fire stations and some additional community centers.

• Two-family dwellings.

• Town houses.

• Multiple-family dwellings.

• Homes for the aged, nursing homes, convalescent homes, and orphan homes.

• Convents and monasteries.

• Child care facilities.

• Small group homes.

ZONING MAP Subject

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Appraisal Report

4877 Laurel St., New Orleans, La. ASSESSMENT AND TAXES

A new Constitution was approved by voters of the State of Louisiana on April 20, 1974. The tax provisions of the new Constitution provided that beginning January 1, 1978, residential properties and vacant land would be assessed at 10% of market value and other properties assessed on the basis of 15% of market value or cost (10% on land/15% on improvements). The new Constitution provided for reappraisal for assessment purposes at least once every four years.

Millages throughout the State would be adjusted to provide level income to the respective parishes. Portions of the millage in the past have been designated to specific uses, such as levee districts, hospital districts, schools, etc., and the intent of the Constitution was that no parish or other entity would suffer a loss of revenue because of the equalization of the 1974 Constitution.

The property is owned by the City of New Orleans is tax exempt. The assessment information under tax bill #614122015 is as follows:

Assessed Land

Assessed Improvements

Total Assessment

$7,100

$12,900

$20,000

Value based on assessment for 2012 is $129,000

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Appraisal Report

4877 Laurel St., New Orleans, La.

Site Description The subject is located on the northeast corner of Upperline and Laurel Street in Square 179 and identified as Lot A. The area is known as Uptown. The rectangular site has 40.3 feet of frontage on Laurel Street by a depth and frontage on Upperline Street of 97 feet. The total square footage is calculated as 3,654Âą using the legal description provided.

Laurel Street is a single lane one-way secondary roadway running in an east/west direction from Audubon Park to Jackson Avenue. Upperline Street is a single lane one-way secondary roadway running in a north/south direction from Tchoupitoulas on the south end to near Fontainebleau to the north. Magazine Street, St. Charles Avenue, and Tchoupitoulas Street are considered the primary east/west roadways in the area. Napoleon Avenue and Jefferson Avenue are north/south roadways.

The subject is zoned RM-2, Multi-Family Residential District. This classification allows for wide variety of residential uses. The topography is level and appears above street grade.

Drainage is considered good accomplished by subsurface drainage. According to FEMA’s flood insurance rate maps, the subject is located in Flood Zone B according to #225 2030 160E dated March 1, 1984.

Soil and subsoil are typical of the area but a new major construction project would require pilings.

Public utilities including sewerage, water, electricity, and telephone serve the site.

No encroachments or easements that would negatively affect marketability were noted.

The site is in a totally built up area in a neighborhood.

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Appraisal Report

800 Tchoupitoulas St., Unit C-3

FLOOD ZONE MAP

2004-03B

Appraisal Report

4877 Laurel St., New Orleans, La. NEIGHBORHOODS OF NEW ORLEANS

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Appraisal Report

4877 Laurel St., New Orleans, La. DESCRIPTION OF IMPROVEMENTS

The subject improvements consist of a two-story vacant former fire station building built in 1910. The building is severely damaged requiring structural repair and complete interior renovation. The building contains approximately 3,779± square feet including a 546± square stable in the rear.

The subject has been vacant since Hurricane Katrina. The storm caused severe roof damage, which has been left unattended. The property was further damaged by Hurricane Isaac from wind and water intrusion. The appraisers photographed the property from the open doorways due to safety issues.

The building is a combination of masonry and wood frame two-story on an assumed reinforced concrete slab. The roof frame is wood. Roof cover is approximately 50% intact. The building is basically open span on the first level. The second level is accessed via a wood stairwell – the appraisers were told not to trust due to condition. The second floor was not inspected. The windows have been boarded. The roof, gutters, and eaves appear to be in poor condition. The plaster walls and ceilings are no longer intact. The building requires total renovation.

Following are a floor plan and subject photographs.

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Appraisal Report

4877 Laurel St., New Orleans, La. FLOOR PLAN

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Appraisal Report

4877 Laurel St., New Orleans, La. SUBJECT PHOTOGRAPHS

View of former firehouse from Laurel and Upperline Street

View of Interior Alley 2012-23 laurel.doc

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Appraisal Report

4877 Laurel St., New Orleans, La. SUBJECT PHOTOGRAPHS

Rear Stable Building

Rear of Firehouse 2012-23 laurel.doc

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Appraisal Report

4877 Laurel St., New Orleans, La. SUBJECT PHOTOGRAPHS

View or Damaged Gutters and Eaves

Rear Interior of Stable 2012-23 laurel.doc

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Appraisal Report

4877 Laurel St., New Orleans, La. SUBJECT PHOTOGRAPHS

View of Rear Interior of Firehouse

Interior View of Subject

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Appraisal Report

4877 Laurel St., New Orleans, La. SUBJECT PHOTOGRAPHS

View of Interior Damage

.

View into 2nd Level from 1st Level 2012-23 laurel.doc

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Appraisal Report

4877 Laurel St., New Orleans, La. SUBJECT PHOTOGRAPHS

View of Laurel Street Looking East – Subject on Left – Wisner Playground on Right

.

View into Upperline Street Looking North – Subject on Right 2012-23 laurel.doc

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Appraisal Report

4877 Laurel St., New Orleans, La. HISTORY OF THE SUBJECT PROPERTY

The subject has been owned by the city of New Orleans since the 1910’s operating as a fire station and more recently utilized pre Katrina by NORD. The property is not currently listed or under contract of sale. The property may be listed for sale in the near future. .

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Appraisal Report

4877 Laurel St., New Orleans, La. HIGHEST AND BEST USE

The term, "highest and best use," is defined in The Appraisal of Real Estate, Thirteenth Edition, published in 2008 by the Appraisal Institute, as follows: "The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value."2 It is the base premises of value. Highest and best use is the appraiser's opinion after analyzing all available data and the factors that influence value. It is, however, not an absolute fact.

Since the land's utilization can be limited by the presence of the improvements, the highest and best use analysis is two-fold. First the land is analyzed assuming it is vacant and available to be developed into its most reasonable and probable use maximizing its highest present value. It recognizes that the value of a land parcel is basically determined by maximum potential use and the amount of value depends upon the nature of that anticipated use.

Secondly is the analysis of the property as improved; i.e., the optimal use that could be made for the property including its existing improvements, and implies the optimal existing improvements should be retained. If the analysis determines otherwise, it follows the improvements should be modified or demolished. In order to estimate the highest and best use, it is necessary to study existing land use patterns in the area, as well as the current trends influencing changes in usage.

In determining the highest and best use for a property, as if vacant and as improved, its use must meet four criteria. The criteria are as follows: (1) (2) (3) (4)

Physically Possible Legally Permissible Financially Feasible Maximally Productive

Highest & Best Use - As Vacant: The subject property is located in a neighborhood of New Orleans known as Uptown. The fire station was built in 1910. The uptown neighborhood is a stable popular location in close proximity to Audubon Park, Magazine Street and St. Charles Avenue with many popular restaurants and shopping venues. This area did not flood during Hurricane Katrina. The property values rise as you approach Audubon Park and the universities on St. Charles Avenue.

Based on the current conditions, the Highest and Best Use of the subject site if vacant would be for construction of a single family or two family residence.

3The Appraisal of Real Estate, Appraisal Institute, Thirteenth Edition-2008.

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Appraisal Report

4877 Laurel St., New Orleans, La.

Highest and Best Use - As Improved The subject consists of a two- story former fire station in poor condition. The location on the corner of Upperline and Laurel Streets is a demand location able to support the expense necessary to convert firehouse to an alternative use. The property is zoned RM-2, Multi-Family Residential District. The building in its current state would require total renovation.

The Highest and Best Use of the subject building is for re-development into a residential use as demand warrants.

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Appraisal Report

4877 Laurel St., New Orleans, La. VALUE BY THE SALES COMPARISON APPROACH

The subject is a former fire station in a neighborhood known as Uptown, a very popular neighborhood in close proximity to shopping, restaurants, Audubon Park, St. Charles Avenue and the universities. The subject building is in poor condition. We compared the subject to properties in the same condition. In the subject’s immediate neighborhood properties in poor condition are not generally seen. We chose a property in a similar neighborhood in poor condition and two properties in a less desirable neighborhood to value the subject.

The Highest and Best Use of the property is conversion to residential use, and the neighborhood would support the investment necessary to achieve this.

The building has been vacant for some time. The gross building area is estimated as 3,779+/square feet. This area is used in the sales comparison approach.

Three comparable buildings are used in the analysis. The sales are all two story and in similar condition.

The following sales were used in this analysis.

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Appraisal Report

4877 Laurel St., New Orleans, La.

Comparable Building Sale #1

Current View

Location:

Historic View 701-09 Jackson Avenue Fourth District, Square 73, Lots A and 12 New Orleans, Louisiana

Date:

September 14, 2012

Price:

$520,000, Cash

Vendor:

709 Jackson, LLC represented by Michael J. Semmes

Vendee:

Raintree 1, LLC represented by Gregory Morris, Member

Recordation:

NA#2012-34712

Zoning:

RM-2A, Residential District

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Appraisal Report

4877 Laurel St., New Orleans, La.

Comparable Sale No. 1 Cont.

Dimensions:

127.8 feet x 127/52.5 feet

Land Area:

14,242 +/- Square Feet

Building Size:

11,167 Sq. Ft.

Unit Price:

$45.56 per square foot of improvements including land.

Remarks:

This is a two-story building with above grade basement constructed in 1857 as the former Shaare Tefilah Synagogue. The building was totally gutted and ready for restoration at time of sale. This was the 2nd oldest synagogue in the city. Masonry with heavy timber construction.

Verification:

Bob Talbot, Talbot Realty, courthouse and assessment Records and visual inspection.

Sale #1

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Appraisal Report

4877 Laurel St., New Orleans, La.

Comparable Building Sale #2

Location:

1545 Webster Street Sixth District, Square 65, Lot B-1 New Orleans, Louisiana

Date:

April 8, 2011

Price:

$353,000, Cash

Vendor:

Succession of Carolyn Ione Robertson represented by Linda Rosenthal Elkin, Executrix

Vendee:

4116 Canal Street represented by Mary Elizabeth Holeman Cole, Member

Recordation:

NA# 2011-13726

Zoning:

RD-2, Residential District

Dimensions:

52 x 60 feet

Land Area:

3,120 Square Feet

Building Size:

2,737 Square Feet

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Appraisal Report

4877 Laurel St., New Orleans, La.

Comparable Sale No. 2 Cont.

Unit Price:

$128.97 per square foot of improvements including land

Remarks:

The property was in fair/poor condition at time of sale and required 100% interior finish and substantial exterior repair.

Photograph shows completed renovation.

Verification:

Multi List, Courthouse Records and Visual Inspection.

Sale #2

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Appraisal Report

4877 Laurel St., New Orleans, La.

Comparable Sale #3

Location:

1216 Annunciation First District, Square 100, Lot 4 New Orleans, Louisiana

Contract Date:

August 12, 2010

Sale Price:

$90,000, Cash

Vendor:

Elizabeth Ann Jones and Jerry Dell Delchamps

Vendee:

James C. Rogers, III

Recordation:

NA# 2010-31762

Zoning:

B-1A, Neighborhood Business District

Dimensions:

35.3 feet x 123.8/136.9 feet

Land Area:

4,600Âą Square Feet

Building Size:

3,026 Square Feet

Shape:

Rectangular

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Appraisal Report

4877 Laurel St., New Orleans, La.

Comparable No.3 Cont Unit Price:

$29.74 per square foot of improvements including land

Remarks:

This a two-story masonry and frame Greek revival town home with two level gallery and cast iron railings sold in poor condition. Built in 1824 the structure has been renovated into 9-bedroom/9-bath rental house known as the Mansion. Building is over 150 years old. Located between Erato and Thalia Streets in an area of renovations.

Verification:

Talbot Real Estate, (504) 525-9763, Courthouse Records and Visual Inspection.

Sale #3

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Appraisal Report

4877 Laurel St., New Orleans, La. COMPARABLE BUILDING SALES MAP Sale #1

Sale #2

Subject

Sale #2

Adjustments - Sales Comparison Approach

The subject is located in an area with limited sales of buildings in poor condition. The neighborhoods similar to the subject are well maintained and increase in value as you approach Audubon Park, or the universities on St. Charles Avenue. There are pockets of low income housing in what is known as uptown that are not well maintained. Some areas sustained severe damage from Katrina and have been abandoned. Sales in these areas were not utilized.

We used three sales to value the subject fire house. Comparable #1 is awaiting conversion into apartments. Comparable #2 is a single-family residence. The sale on Annunciation is a multi family building.

Comp. # 1 2 3

Type of Property Special Purpose Single Family Multi-Family

Sold Date

Sold Price

Unit Sale Price

9/14/2012 4/8/2011 8/12/2010

$520,000 $353,000 $90,000

$46.57 $128.97 $29.74

In reviewing sales activity in the Uptown/Garden District neighborhood over the last 24 months for properties in poor condition, there were 22 sales of single family residential with an average unit sale price of $76.00 per square foot. 34 sales of multi-family properties in poor condition had an average unit sale price of $35.88 over the 24 months. The number of sales in each category incorporated some blighted neighborhoods with properties not used in this analysis.

We focused on neighborhoods with interesting architecture and properties most similar to the subject.

The three sales occurred between August 2010 and September 2012. The sales utilized are considered to be representative of the market.

The comparables used in the report range in size from 2,737 square feet to 11,197 square feet with a unit price range of $29.74 to $128.97 per square foot.

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Appraisal Report

4877 Laurel St., New Orleans, La.

After presentation of comparable data, the next step is one, which involves analysis of the comparable sales as they relate to the subject site. Adjustments most frequently used by the appraiser during this process are: (1) (2) (3) (4) (5)

Financing terms Conditions of sale (arm's length, succession, adjoining owner, etc.)

Market conditions (time) Location Physical characteristics

Financing Terms No adjustment for financing is necessary.

Conditions of Sale Adjustments for condition of sale usually reflect the motivations of the buyers and the sellers.

All of the sales were considered market.

Market Condition (Time) The sales ranged from August 2010 to September 2012. Sale #3 was adjusted upward because there has been ongoing renovation in the area since time of sale. An upward adjustment of +10% appears in the grid. All of remaining sales are considered current and no adjustment was necessary.

Location The subject is located on the northeast corner of Upperline and Laurel Street in an older stable area of uptown with a mixture of residential, multi-family and commercial use. We analyzed land sales in the neighborhood for additional support for a value conclusion because of the various locations of the properties chosen. Comparable #1 on Jackson Avenue is in an area that is slowly showing signs of improvement but has a mix of vacant buildings requiring renovation.

An upward +25% adjustment appears in the grid. Sale #2 has a premiere location one block from St. Charles Avenue, near Audubon Park and the Universities. The sale is surrounded by some of the highest priced real estate in the city. Land values in this area are at least 40%-50% higher than the subject. We used a downward –45% adjustment for this sale. Sale #3 is near the expressway rampage in an area that is improving but still transitional. An upward +35% adjustment appears in the grid.

Physical Characteristics In analyzing the comparables for the physical characteristics, the appraisers adjust for size, land/building ratio, location and style & design.

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Appraisal Report

4877 Laurel St., New Orleans, La.

Size Two properties were within a similar size range and no adjustment was necessary. Sale #1 is 4 times larger and was adjusted upward +20% in the grid.

Condition The subject is in very poor condition. Sale #1 is a gutted building requiring total renovation but protected from further weather related damage. Sale #2 is an esthetically appealing single-family residence in a demand location just off St. Charles Avenue and in close proximity to Audubon Park. This sale was also in poor condition but not as severe as the subject. These sales were adjusted downward –20% in a fair/poor category to differentiate from the subject condition. Sale #3 was similar to the subject and no adjustment was necessary.

Please see the grid.

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Appraisal Report

4877 Laurel St., New Orleans, La.

Comparable Grid -4877 Laurel Street

Comparable No. Location

Sale Date Sale Price Gross Building Area Site: Land/Bldg. Ratio Zoning Condition Unit Price per GBA

Subject 4877 Laurel

N/A N/A 3,779 3,654 0.94

Comp. #5

Comp. 2

Comp. 3

709 Jackson Ave.

1545 Webster

1216 Annunciation

9/14/2012

4/8/2011

8/12/2010

$520,000

$353,000

$90,000

11,167

2,737

3,026

14,242

3,120

4,600

1.28

1.14

1.52 B-1A

RM-2

RD-2

RD-2

Poor N/A

Fair/Poor

Fair/Poor

Poor

$46.57

$128.97

$29.74

0%

0%

0%

Condition of Sale Market Condition (Time) Adjusted for Cond. & Time

0%

0%

10%

$46.57

$128.97

$32.72

Location

25%

-45%

35%

Condition

-20%

-20%

0%

Size

20%

0%

0%

Total Adjustments:

25%

-65%

35%

Subject by Comparison:

$58.21

$45.14

$44.17

Subject by Comparison Unit Price

$50

Market Value

$188,950

Rounded to

$190,000

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Appraisal Report

4877 Laurel St., New Orleans, La.

CONCLUSION OF THE SALES COMPARISON APPROACH The unadjusted comparable sales ranged from $29.74 to $128.97 per square foot. After adjustments, the value range narrows to between $42.53 per square foot and $60.54 per square foot. The mean is $51.55 per square foot.

All of the sales are given equal weight after adjustment. Comparable #2 is considered a superior location and was adjusted accordingly. Comparable #1 required adjustment for size and location as well as condition. Comparable #3 is most similar in condition and size, but is in a more transitional neighborhood.

Based on the information presented in this report, as well as current economic conditions, the value by the Sales Comparison Approach is $50.00 per square foot near the mean of the adjusted range. Based on an area of 3,779 square feet the value by the Sales Comparison Approach is $190,000.00 Rounded.

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Appraisal Report

4877 Laurel St., New Orleans, La. RECONCILIATION AND FINAL VALUE ESTIMATE

The estimates of value are as follows: Value by the Cost Approach

Not Applicable

Value by the Sales Comparison Approach Value by the Income Approach

$190,000.00 Not Applicable

The subject is a former firehouse in poor condition. The Sales Comparison Approach is the primary indicator of value for the subject property and is the final value conclusion.

The Income Approach and the Cost Approach are not viable approaches to value and are not included in the report.

Based on the quality and quantity of data as well as current economic conditions, it is our opinion, the “as is” market value as of September 18, 2012 is $190,000.

ONE HUNDRED NINTY THOUSAND DOLLARS ($190,000.00)

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Appraisal Report

2012-23 laurel.doc

4877 Laurel St., New Orleans, La.

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