Post on 06-Dec-2021
FHA/VA Case No. Page # 1
APPRAISAL OF REAL PROPERTY
XXXXXX
New York, NY 10011
Block: XXX Lot: 11
XXXXXXXXX
5,000,000
12/30/2013
Alexander M. Yampolsky
Form GA1V - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
LOCATED AT
FOR
OPINION OF VALUE
AS OF
BY
FHA/VA Case No. Page # 2
LAVAL, LLC. ( 917) 495-9008
Form 71B1 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
R15-04642
2 DD 15
0091.00
XXXXXXXXX
XXXXXX
New York New York NY 10011
Block: XXX Lot: 11
N/A N/A N/A
Conventional - property rights appraised are Leased Fee
XXXXXXXXX N/A
XXXXXXX 06/26/2015 XXXXX
Interior
Comparable Sales
Scope of work
Limiting Conditions and Assumptions
5 1 84
10
0-2
50,000 10,000,000 1,000,000
new 130 5
3,000,000 15,000,000 5,000,000
70 150 80
Walk-up/Elevator 4-40
60 70+/- Average
0-5
on block
NYC
on block
.5 M
1 M
No incompatible land uses noted during our inspection. Overall property
appeal and maintenance is average.
N/A -The rental market is active in the subject area, with good demand for residential rental units and
retail/office space.
N/A -The rental market is active in the subject area, with good demand for residential rental units and
retail space.
Potential exists for adding units in the area with spot new construction
ongoing.
No
No known probable changes in the economic base of the area. Economic conditions stabile at present time.
The subject is located in the
Chelsea section of Manhattan. Good residential and commercial location. See addenda for further details.
25' X 98.75' subject to survey 2,452
C6-3X Residential and commercial use permitted.
Macadam
Adequate
Level as grade
Average/Typical
Appear adequate
No other known adverse easements or encroachments.
Typical utility easements and common walls
TO B
E C
OM
PLE
TED
BY
LEN
DER
APPRAISAL REPORT-RESIDENTIAL INCOME PROPERTYThis form may be used for appraisal of income producing properties provided the loan requested does not exceed $750,000.
Borrower/Client File No.
Map Reference
Census TractCounty State Zip Code
Date of Sale Loan Requested $
Fee Leasehold (attach completed Lease Analysis FHLMC Form 461)
Lender's Address
Date By
Note: FHLMC/FNMA do not consider the racial composition of the neighborhood to be a relevant factor and it must not be considered in the appraisal.
Property Address
City
Legal Description
Current Sale Price (if applicable) $
Terms of Sale
Property Rights Appraised
Lender
Instructions to Appraiser: The purpose of this appraisal is to estimate the current Market Value of the Subject Property. The Definition of Market Value is as set forth in CertificationAnd Statement Of Limiting Conditions (FHLMC 439).
Other Information
Appraisal requested from
Items 1, 2, 4, 5, & 6 are required. Attach additional items and check box if items are considered appropriate for this appraisal or are requested by Lender.
1.
2.
3.
4.
5.
6.
Descriptive photographs of subject property
Descriptive photographs of street scene
Photographs of
Sketch or floor plan of typical units
Owner's current certified rent roll if existing, or
pro forma if proposed or incomplete
Owner's income and expense statement
pro forma income and expense statement
, or
7.
8.
9.
10.
11.
12.
13.
Map(s)
Plot plan or survey
Qualifications of Appraiser
Lease Analysis FHLMC 461 (required if leasehold interest appraised)
Summary of reciprocal agreements with other owners for use of parking,
driveways, recreational facilities, private streets, (required if applicable)
NEI
GH
BO
RH
OO
D
Location
Built-up
Present land use
Change in present land use
Property values
Housing demand/supply
Predominant occupancy
Condominium:
Single Family:
Typical apartment:
Estimated neighborhood apartment vacancy rate
Describe any incompatible land uses and overall property appeal and maintenance level
Describe any oversupply of units in area by type and rental
Describe any shortage of units in area by type and rental
Describe potential for additional units in area considering land availability, zoning, utilities, etc.
Is population of relevant market area of insufficient size, diversity and financial ability to support subject property and its amenities ? If yes, specify.
Describe any probable changes in the economic base of neighborhood which would favorably or adversely affect apartment rentals(e.g. employment centers, zoning)
General comments including either favorable or unfavorable elements not mentioned (e.g. public parks, view, noise, parking congestion)
Price range $
Age
Price range $
Age
Urban
Over 75%
% Condominiums
% Commercial
Not Likely
(*) From
Increasing
In balance
Owner
Suburban
25% to 75%
% 1-Family
%
Likely (*)
To
Stable
Shortage
Tenant
Rural
Under 25%
% Apartments
Taking Place (*)
Declining
Oversupply
% Vacant
to $
yrs. to
to $
yrs. to
yrs.
yrs.
Predominant $
Predominant
Predominant $
Predominant
No. Stories
Condition
Type
No. Units
Rent Levels:
Age
Increasing
yrs.
Stable Declining
% Decreasing Stable Increasing Rent Controls No Yes (comments on page 4 if Yes)
Employment Stability
Adequacy of Utilities
Convenience of Schools
Police and Fire Protection
Recreational Facilities
Property Compatibility
Protection from Detrimental Conditions
General Appearance of Properties
Appeal to Market
Public Transportation
Employment Centers
Shopping Facilities
Grammar Schools
Freeway Access
yrs.
yrs.
Access or Convenience
OVERALL RATING Good Avg. Fair Poor
Distance
SIT
E
Dimensions
Zoning (classification, uses and densities permitted)
Highest and best use
Electricity
Gas
Water
Sanitary Sewer
COMMENTS (including any easements or encroachments or any nonconforming use(s) of present improvements)
Area Sq. ft. or Acres
Present Improvements do do not conform to zoning regulations
Present use Other (specify)
Public Comm. Individual Street Public Private Ingress and Egress (Adequacy)
TopographySurface
Storm Sewer
Curb & Gutter
Sidewalk
Street Lights
Sep.Tnk. Alley
View Amenity
Drainage and Flood Conditions
Is the property located in a HUD Identified Special Flood Hazard Area?Underground Electricity & Telephone
FHLMC Form 71B-Rev. 8/77 [Y2K] Page 1
FHA/VA Case No. Page # 3
Form 71B1 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
1931 5
1 7 18 6 None N/A
Masonry Brick Rubber membrane/good
Sheet-rock/average Wood/tile/average Sheetrock/tile/average
Unable to observe Adequate Adequate
HVAC and steam gas Unknown - no access
HVAC for retail. individual units for apartments Adequate
None N/A N/A
Door locks, intercom
Adequate gas water heaters
Adequate
Adequate
None
N/A N/A
The subject is in overall average condition. No functional or
external inadequacies. Typical mixed-use building (addenda)
The Cost Approach was not developed due to lack of applicability (see reconciliation of values in addenda).
See addenda
See Addenda See Addenda See Addenda
Se e add
DES
CR
IPTI
ON
OF
IMP
RO
VEM
ENTS
Existing Approx. Year Built Proposed Under Construction Elevator Walk-up No. of Stories Row or Townhouse
No. of Bldgs. No. of Units No. of Rooms No. of Baths Parking Spaces: No. Type
Basic Structural System Exterior Walls Roof Covering
Interior Walls Floors Bath Floor and Walls
Insulation Adequacy Adequacy and Soundproofing
Heating: Central Individ. Type Fuel Condition
Air Conditioning: Central Individ. Describe Adequacy and Condition
Elevator(s): Number Automatic Adequacy and Condition
Security Features
Kitchen cabinets, drawers and counter space Adequate Inadequate Good Avg. Fair Poor
Range/Oven Fan/Hood Dishwasher Disposal General appearance of property
Refrigerator Washer Dryer Quality of construction (materials and finish)
Hot Water Heater(s) Condition of improvements
Plumbing Fixtures Rooms size and layout
Electrical Service Closets and storage
Recreational Facilities Plumbing-adequacy and condition
Electrical-adequacy and condition
Amenities and parking facilities
Effective Age Yrs. Estimated Remaining Economic Life Yrs. Appeal to market
COMMENTS: (Special features, functional or physical inadequacies, repairs needed, modernization, etc.)
OVERALL PROPERTY RATING
CO
ST
AP
PR
OA
CH
LAND SALES (complete ONLY if appropriate for this appraisal) Zoning Area Sales Price Date Price per Sq. Ft. or per Unit
1. / $ $ Per
2. / $ $ Per
3. / $ $ Per
Comments & Reconciliation
Estimated Land Value $
APARTMENT BUILDING(S)-ESTIMATED REPRODUCTION COST NEW
X = Sq. ft. X (Stories) = Sq. ft. X $ $
X = Sq. ft. X (Stories) = Sq. ft. X $ $
X = Sq. ft. X (Stories) = Sq. ft. X $ $
OTHER IMPROVEMENTS $
$
$
TOTAL ESTIMATED COST NEW OF IMPROVEMENTS $
LESS DEPRECIATION
DEPRECIATED VALUE OF IMPROVEMENTS $
ADD-ESTIMATED LAND VALUE $
INDICATED VALUE BY THE COST APPROACH (IN FEE SIMPLE) $
IF LEASEHOLD DEDUCT VALUE OF FEE INTEREST (ATTACH CALCULATIONS) $
INDICATED VALUE BY THE COST APPROACH (LEASEHOLD) $
CO
MP
AR
AB
LE R
ENTA
L D
ATA
ITEM COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO. 3
Address
Proximity to subj.
Rntl. survey date
Brief No. Units No. Vacant Age Yrs No. Units No. Vacant Age Yrs No. Units No. Vacant Age Yrs
description
of property
improvements
Rm. Count Size Monthly Rent Rm. Count Size Monthly Rent Rm. Count Size Monthly Rent
Tot BR b Sq. Ft. /$ Rm Tot BR b Sq. Ft. /$ Rm Tot BR b Sq. Ft. /$ RmIndividual
unit
breakdown
Utilities, furn-iture andamenities in-cluded in rent
Comparison
to subjectincluding rental
concessions,
if any
MO
NTH
LY R
ENT
SC
HED
ULE
SU
BJE
CT
Utilities included in actual rents:
Utilities included in forecasted rents:
Water
Water
Gas
Gas
Heat
Heat
Electric
Electric
Air Conditioning
Air Conditioning
No.of
Units
Unit RM Count
Tot. BR b
Total
Rooms
Sq Ft
Area
Per Unit
No.
Units
Vacant
ACTUAL RENTS
Per Unit
Unfurnished Furnished
Total
Rents
FORECASTED RENTS
Per Unit
Unfurnished Furnished
Total
Rents
Per
Sq. Ft. or Room
$ $ $ $ $ $ $c|
TOTAL $ $
FHLMC FORM 71B - Rev. 8/77 Page 2
FHA/VA Case No. Page # 4
Form 71B1 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
XXXXXX
New York
2 DD 15
2,452 SF
7 0
5-story mixed-use building
Average
Average
None
None
Average
GBA
LOCATION Average
APPEAL Average
Heat Water/Sewer
Inspection/owner
N/A
N/A
N/A
Price Unit:
Net Adjustments:
Adjusted Price :
128 W 23rd St
New York, NY 10011
0.07 miles SE
2 DD 15
N/A
See addenda
See addenda
Geo Data
Sale
43 W 27th St
New York, NY 10001
0.27 miles E
2 DD 15
N/A
See addenda
See addenda
Geo Data
Sale
149 W 27th St
New York, NY 10001
0.20 miles NE
2 DD 15
N/A
See addenda
See addenda
Geo Data
Sale
See addenda for comments on adjustments and reconciliation.
5,750,000
5
See addenda for more info.
Addendum Addendum
$0.25/SF
4,140,000
See addendum
MA
RK
ET A
PP
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AC
H
ITEM SUBJECT COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO. 3
Address
Proximity to subject
Map code
Lot size
Brief description of
building
improvements
Quality
Condition
Recreational facilities
Parking
Tenant appeal
Unit
breakdown
Util. paid by owner
Data source
Price
Sale-Listing-Offer
Date of sale
Terms
(Including conditions
of sale and
financing terms)
Gross Annual Income
Gross Ann. Inc. Mult. (1)
Net Annual Income
Expense Percentage (2)
Overall Cap. Rate (3)
Price per unit
Price per room
Price gross bldg. area
No. Units:
Year Built:
No. Vac. No. Units:
Year Built:
No. Vac. No. Units:
Year Built:
No. Vac. No. Units:
Year Built:
No. Vac.
No. of
Units Total BR Bath
UNIT ROOM COUNT No. of
Units Total BR Bath
UNIT ROOM COUNT No. of
Units Total BR Bath
UNIT ROOM COUNT No. of
Units Total BR Bath
UNIT ROOM COUNT
$ Unf. F $ Unf. F $ Unf. F $ Unf. F
Complete as many of the following items as possible using data effective at time of sale
$ $ $ $
$ $ $ $
% % % %
% % % %
$ $ $ $
$ $ $ $
$ $ $ $/sq. ft. bldg. area /sq. ft. bldg. area /sq. ft. bldg. area /sq. ft. bldg. area
(1) Sale Price / Gross Annual Income (2) Total Annual Expenses / Total Gross Annual Income (3) Net Annual Income / Price
RECONCILIATION:
INDICATED VALUE BY MARKET APPROACH
INC
OM
E A
PP
RO
AC
H
INCOME EXPENSES ACTUAL FORECASTED
Real Estate Taxes* $ $
Other taxes or licenses
Insurance
Unsubordinated ground rent
Fuel
Gas
Electricity
Water and sewer
Trash removal
Pest control
Maintenance and repairs
Interior and exterior decorating
Cleaning expenses and supplies
Management (Off-site)
Res. Mgr. salary & apartment
Janitor(s) salary & apartment
Miscellaneous
REPLACEMENT RESERVES
Carpeting and drapes
Ranges and refrigerators
Dishwashers and disposals
Individual heating & AC units
TOTAL EXPENSES & REPL. RES.
INDICATED VALUE BY INCOME APPROACH $
$ $
Total Monthly Apartment Forecasted Rents
Other Monthly Income (Itemize)
Total Gross Monthly Forecasted Income
Total Gross Annual Forecasted Income
Less Forecasted Vacancy and Collection Loss
Effective Gross Annual Income
Less Forecasted Expenses & Replacement Reserves
Net Annual Income from Total Property
Less Return on and Recapture of Depreciated Value of
Furnishings
Net Annual Income from Real Property
Capitalized as follows:
*Real Est. Taxes
Total Assessed Value $
Comments:
$
$
$
$
$
$
$
$
$
$
$Actual Est. Tax Rate Per $100
($ @ %)
( %) (
(
(
)
)
)
FHLMC FORM 71B - Rev. 8/77 Page 3
FHA/VA Case No. Page # 5
Form 71B1 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
The subject is in overall average condition. See addenda for comments.
Normal assumptions and limiting conditions
apply. The intended use of this report is to assist the client in assets valuation. The intended user is the client. See addenda for comments.
Not used
5,750,000
4,140,000
See addenda.
5,000,000
09/01/2015
Alexander M. Yampolsky
GENERAL COMMENTS (Including comments on any items rated poor or fair)
CONDITIONS AND REQUIREMENTS OF APPRAISAL (include required repairs, replacements, painting, termite inspections, etc.)
RECONCILIATION AND VALUE CONCLUSION
Indicated Value by the Cost Approach $
Indicated Value by the Market Approach $
Indicated Value by the Income Approach $
FINAL RECONCILIATION
I certify, that to the best of my knowledge and belief, the statements made in this report are true and I have not knowingly withheld any significant information; that I have
personally inspected subject property, both inside and outside, and have made an exterior inspection of all comparable sales listed herein; that I have no interest, present
or contemplated, in subject property or the participants in the sale; that neither the employment nor compensation to make said appraisal is contingent upon any value
estimate; and, that all contingent and limiting conditions are stated herein. Certification and Statement of Limiting Conditions
(FHLMC Form 439 Rev. 6/93) applies ( on file with Client Attached).
As a result of my investigation and analysis, my estimate of Market Value of the subject property as of is
$
Date
Date
Date
Appraiser
Appraiser
If applicable, complete the following
Supervising or Review Appraiser
Did Did Not Physically Inspect Property
FOR LENDER'S USE ONLY (completion optional)
Loan Recommended $ @ %. Term yrs. Principal & Interest $ /mo. $ /annually
Subject to:
Borrower's Cost or Purchase Price $ Appraised Value $ Loan to Appraised Value %
Loan: Per Unit $ Per Room $ Per Sq. Ft. of Building Area $
Gross Annual Forecasted Income $ Gross Annual Income Multiplier Overall Capitalization Rate %
Forecasted Annual Expenses and Replacement Reserves $ ( % of Gross Annual Forecasted Income)
Break-even Point (this loan): (Annual Exp. & RR $ + Annual P & I pymts. $ ) / (Gross Annual Income $ ) = %
(All financing) : (Annual Exp & RR $ + Annual P & I pymts. for all financing $ ) / (Gross Annual Inc. $ ) = %
Borrower's Return on Appraised Equity (Net Annual Inc. $
(Appraised Value $
(-) Annual P & I pymts $
(-) Loan Amt. $
) = $
) = $
(1)
(2)
$ (1) / $ (2) = %
Comments or Committee Action
FHLMC FORM 71B - Rev. 8/77 Page 4
FHA/VA Case No. Page # 6
LAVAL, LLC. ( 917) 495-9008
XXXXXX
New York
2 DD 15
2,452 SF
7 0
5-story mixed-use building
Average
Average
None
None
Average
GBA
LOCATION Average
APPEAL Average
Heat Water/Sewer
Inspection/owner
N/A
N/A
N/A
Price Unit:
Net Adjustments:
Adjusted Price :
52 W 21st St
New York, NY 10010
0.22 miles SE
2 DD 15
N/A
See addenda
See addenda
Geo Data
Sale
4
129 W 29th St
New York, NY 10001
0.30 miles NE
2 DD 15
N/A
See addenda
See addenda
Geo Data
Sale
5
209 W 18th St
New York, NY 10011
0.26 miles SW
2 DD 15
N/A
See addenda
See addenda
Geo Data
Sale
6
MA
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AN
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MARKET DATA ANALYSISRESIDENTIAL INCOME PROPERTY
ITEM SUBJECT COMPARABLE NO. COMPARABLE NO. COMPARABLE NO.
Address
Proximity to subject
Map code
Lot size
Brief description of
building
improvements
Quality
Condition
Recreational facilities
Parking
Tenant appeal
Unit
breakdown
Util. paid by owner
Data source
Price
Sale-Listing-Offer
Date of sale
Terms
(Including conditions
of sale and
financing terms)
Gross Annual Income
Gross Ann. Inc. Mult. (1)
Net Annual Income
Expense Percentage (2)
Overall Cap. Rate (3)
Price per unit
Price per room
Price gross bldg. area
No. Units:
Year Built:
No. Vac. No. Units:
Year Built:
No. Vac. No. Units:
Year Built:
No. Vac. No. Units:
Year Built:
No. Vac.
No. of
Units Total BR Bath
UNIT ROOM COUNT No. of
Units Total BR Bath
UNIT ROOM COUNT No. of
Units Total BR Bath
UNIT ROOM COUNT No. of
Units Total BR Bath
UNIT ROOM COUNT
$ Unf. F $ Unf. F $ Unf. F $ Unf. F
Complete as many of the following items as possible using data effective at time of sale
$ $ $ $
$ $ $ $
% % % %
% % % %
$ $ $ $
$ $ $ $
$ $ $ $/sq. ft. bldg. area /sq. ft. bldg. area /sq. ft. bldg. area /sq. ft. bldg. area
CO
MM
ENTS
Comments:
FHA/VA Case No. Page # 7
Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Location Map
XXXXXXXXX
XXXXXX
New York New York NY 10011
XXXXXXXXX
Borrower
Lender/Client
Property Address
City County State Zip Code
FHA/VA Case No. Page # 8
Sales Apprroach
Form SCNLGL - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
FHA/VA Case No. Page # 9
Rent Roll
Form SCNLGL - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
FHA/VA Case No. Page # 10
Income Approach
Form SCNLGL - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Comments regarding marketing/sale historyThere have been recorded sales of the subject in the past 5 years. The subject is not for sale. Typicalmarketing and exposure time is 6 to 12 months.
Neighborhood analysisThe subject is located in the Chelsea section of Manhattan. The area is a residential community comprisedof a mix of, mixed-use, commercial and apartment buildings and few1-4 family homes. The subject is on
West 23rd Street, a major commercial and automotive thoroughfare. Surrounding the subject are similarresidential and mixed-use properties. The subject is considered to have good commercial and residentiallocation. It is in close proximity to major thoroughfares, highways and public transportation. There wereno known adverse factors affecting marketability.
Description of improvementsThe subject consists of an attached 5-story walk-up mixed-use loft building. The basement, ground floor,and 2-nd floors used as the owner occupied restaurant. It was in overall average condition as of date of
value. The 3, 4 and 5th are apartments. The units on the 3rd floor were inspected. The units reported to bein overall average condition and good renovated with economy grade fixtures. The common areas areclean in overall average condition with no major deferred maintenance or needed repairs.
The mechanical and structural components are in average. There is a gas fired boiler and water heaterprovide heat and hot water for the buildings. They appear to be in adequate working condition. There wasno access to the roof; it reported to be in average condition. No interior leaks noted.The electrical serviceis in average condition and appears to be adequate. The windows are double hung replacement units. Theexterior is in overall average condition.
There was no other noted deferred maintenance or repairs needed. The condition of the subject is a typicalto the market. The attached photographs provide additional details regarding the subject's condition.
Comments on Sales Comparison Approach
The comparables are recent sales of walk-up mixed-use loft buildings. All sales within the subject's marketarea. All sales transferred since 2012. According to the most published reports, market stabilized formixed-use buildings since 2012. No market condition adjustments are warranted.
Location: The subject has good retail location on busy West 23rd Street. Sales 2 to 6 are located on theside streets. These are slightly inferior locations and adjusted 5% upward.
Size: sales adjusted for size based on economies of scale concert, the larger buildings sell at lower price onper SF basis and vise-versa for the smaller buildings. Sales were adjusted for size where warranted.
No other adjustments were considered necessary because the sales similar in other of the aspects.
After adjustments, the sales indicate a range between $509/SF to $850/SF the median of $620/SF andaverage of $650/SF. In consideration of all factors affecting the subject, we reconcile a value towardabove the average of the range and conclude $650/SF for the subject.
Therefore:
The “As Is” value:
8,845 SF x $650/SF = $5,749,250
The “As Is” Value via Sales Approach $5,750,000 (rounded)
FHA/VA Case No. Page # 11
Supplemental Addendum
Form TADD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
R15-04642
XXXXXXXXX
XXXXXX
New York New York NY 10011
XXXXXXXXX
Borrower
Lender/Client
Property Address
City County State Zip Code
File No.
Comments on Income Approach
Income consists of the projected annual rental income for a stabilized year of occupancy. Market rents
were analyzed. The subject’s commercial space and apartments on the 3rd floor are owner occupied. We
utilized the reported contract rent for the commercial space and estimated market rent for the 3rd floorapartments. The subject’s commercial rent is slightly below market. However, the commercial tenant paysfor the entire building heat, water and sewer and porter. Based on the above, the subject rent considered atmarket. The remaining apartments are rent stabilized and fall under DHCR rules and regulations. Weutilized the reported rents for these units and assume these are within DHCR guidelines. We surveyed the leasing agents and or other principals involved with the transactions, other appraisers andthis office files. The subject’s rent level is considered in vacancy rate and cap rate development.
Comments on Income & Expense Analysis A vacancy and collection loss of 7% for commercial space and 5% for the apartments is deemedappropriate for the subject. There is adequate demand for residential and commercial space in the area.
Our estimate of expenses was based on the reported, public records and industry standards. We haveutilized the 2013/14 real estate taxes that were reported.
Insurance was estimated at $7,100 or $0.80 per square foot, a reasonable amount for this type of propertyand similar to the reported.
Repairs and maintenance estimated at $6,200, or $0.70/SF, reasonable given overall average condition.We have also taken deductions for supplies, miscellaneous and reserves.
Reserves were projected at 1.5% of the EGI within the typical 1% to 3% range. These buildings aretypically self-managed; however, we have utilized a management/leasing fee figure of 3%. We have alsodeducted for a miscellanies expenses and professional/legal/leasing fees.
We developed overall capitalization rate is 4.25%. The rate falls within the comparable range. This rate isapplied to the forecasted net operating income as follows:
The “As Is” value:
$176,035 /.0425 = $4,142,000
The “As Is” value via the Income Approach rounded to $4,140,000
In formulating a value conclusion, Sales and Income Approaches were considered. The building is aninvestment property and often purchased for the cash flow it produced. Many buildings like the subject areowner occupied, who tend to pay more than the investors. The subject is approximately 50% tenantsoccupied in this instance. Therefore equal weight is given to the Sales Approach and Income approaches.Should be noted, the subject has significant development rights. The subject is within C6-3X zoning withthe maximum commercial FAR of 6.0 and the maximum residential FAR of 9.0. Its current FAR is 3.61and therefore potential for development exists. As per scope of work the development rights were notestimated but considered in value.
A thorough inspection of the site and neighborhood was conducted, and all available data affecting theproperty's value was analyzed. As a result of these investigations and subject to the enclosed limitingconditions, the "as is" market value of the Leased Fee interest of the subject, as of 12/30/2013, is:
($5,000,000)
FHA/VA Case No. Page # 12
Supplemental Addendum
Form TADD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
R15-04642
XXXXXXXXX
XXXXXX
New York New York NY 10011
XXXXXXXXX
Borrower
Lender/Client
Property Address
City County State Zip Code
File No.
SCOPE OF WORK
The data contained in this report was obtained from the public records and from knowledgeable leasingagents, real estate brokers and principals active in the subject's area. Geo Data and NYC records wereutilized to identify the subject and comparables. Verification of the comparable sales was accomplishedthrough Geo Data and other public records and principals. Comparable rents were obtained from owners,managing agents, leasing agents and other appraisers. Additional information about size, condition andother pertinent aspects of real estate was obtained from Geo Data and NYC public records. This appraisalis based on the extraordinary assumption that the interior and the exterior of the comparables are typicalfor the area, average for the market and in average condition. Area calculations and dimensions are asindicated in public records. If this extraordinary assumption is untrue, the value of the property may beaffected. The client provided the appraisers with the rent roll and expenses. The appraisal is predicated onthe fact that the rent is being collected and is legal.
Per scope of work the development rights were not estimated but considered in value.
The Income, Sales Comparison and Cost Approaches were all considered.
The Sales Comparison Approach provides good and reliable indicator of value since it is a direct
reflection of market activity. The appraiser analyzed the comparable market area for the past two years to
uncover sales of similar buildings. The price per square foot, per unit and Gross Income Multiplier were
considered. The price per square foot is considered to be the most reliable indicator of value in this case.
The Income Approach provides a reliable indicator of value since these properties are typically purchased
for the cash flow they produce. All the subject’s units rented. The reported rent roll utilized to estimate the
potential gross income and estimated market rent. Estimated market rents were used for the owner
occupied 3rd floor units. Adjusted market rents were also utilized to determine potential future increasesin rents as well as estimates for vacancy and risk factors in the development of the capitalization rate.
Vacancy was determined from market analysis of the subject area. Expenses were determined from
comparative analysis and the subject history. A capitalization rate was determined via the
Mortgage-Equity technique, in addition to individual sales analysis and comparisons to competing rates of
return.
The Cost Approach, which analyzes land value, replacement cost and depreciation, was also considered.
However, the subject building was constructed circa 1931. Depreciation estimates become very subjective
and unreliable as the age of building increases. Land sales of small parcels in similar Zoning Districts are
minimal which further inhibits the use of this approach. For these reasons, the Cost Approach was found
to be unreliable, not applicable and not utilized in this analysis.
USPAP Guidelines on Retrospective Valuation Dates
The effective date of value of this report is 12/30/2013. Statement 3 of USPAP details the standards for
retrospective value opinions. Date of inspection 06/28/2015. USPAP states the following with regard to
the use of data in an appraisal with a retrospective effective date of valuation:
Data subsequent to the effective date may be considered in developing a retrospective value as a
confirmation of trends that would reasonably be considered by a buyer or seller as of that date. The
appraiser should determine a logical cut-off because at some point distant from the effective date, the
subsequent data will not reflect the relevant market. This is a difficult determination to make. Studying
the market conditions as of the date of the appraisal assists the appraiser in judging where he or she should
make this cut-off. In the absence of evidence in the market that data subsequent to the effective date were
consistent with confirmed market expectations as of the effective date, the effective date should be used as
the cut-off for data considered by the appraiser.
FHA/VA Case No. Page # 13
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the cut-off for data considered by the appraiser.
The sales used in this report are all within a few months of the effective date and subject to the samemarket conditions, especially considering typical 60-180 day contract periods prior to closings.
EXTRAORDINARY ASSUMPTION:
Our appraised value is under the Extraordinary Assumption that:
· The rents utilized in this report within DHCR requirements actually collected.
An assumption, directly related to a specific assignment, which, if found to be false, could alter theappraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertaininformation about physical, legal, or economic characteristics of the subject property; or about conditionsexternal to the property, such as market conditions or trends; or about the integrity of data used in ananalysis. An extraordinary assumption may be used in an assignment only if:· It is required to properly develop credible opinions and conclusions;
· The appraiser has a reasonable basis for the extraordinary assumption;
· Use of the extraordinary assumption results in a credible analysis; and
· The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary
assumptions. (USPAP, 2009)
ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal is made subject to the following assumptions and limiting conditions:The submission of this report does not require future testimony or appearance in court or before any publicagency without special arrangements for that eventuality.
Neither all nor any part of this appraisal shall be disseminated to the general public by the use ofadvertising media, public relations media, news media, sales media or other media for publiccommunication without prior written consent of the signatories of this appraisal report.
As per prior agreement, the Client agrees that this appraisal shall not be quoted or referred to in any reportor financial statement of the Client or in any document filed with any governmental agency without thewritten consent of the appraiser. No responsibility is assumed for matters legal in character or nature, nor matters of survey or ofengineering.
The property is appraised as if free and clear, with no adverse easement, encroachments, restriction, etc.,unless otherwise stated. No opinion is rendered as to the title, which is presumed to be good and held inFee Simple. No violations are assumed to exist. No liability is assumed regarding the existence, if any,for mineral deposits or their influence on value.
Unless otherwise stated in this report, the existence of hazardous substances, including without limitationasbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may notbe present on the property, or other environmental conditions, were not called to the attention of nor didthe appraiser become aware of such during the appraiser's inspection. The appraiser has no knowledge ofthe existence of such materials on or in the property unless otherwise stated. The appraiser, however, is notqualified to test such substances, such as asbestos, urea formaldehyde, foam insulation, or other hazardoussubstances or environmental conditions, which may affect the value of the property. The value estimated ispredicated on the assumption that there is no such condition on or in the property or in such proximitythereto that it would cause a loss in value. No responsibility is assumed for any such conditions, or for anyexpertise or engineering knowledge required to discover them. The client is urged to retain an expert in thefield of environmental impacts upon real estate if so desired.
The conclusions and recommendations presented in this report were reached based on our analysis of theinformation available to us from public records, published data sources, subject ownership and principals
FHA/VA Case No. Page # 14
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information available to us from public records, published data sources, subject ownership and principals
active in the market. Information, estimates and opinions furnished to the Appraiser, and contained in thereport, were obtained from sources considered reliable and believed to be true and correct. However, theAppraiser can assume no responsibility for accuracy of such items furnished to the Appraiser.
Our conclusions are based upon economic conditions as of the effective date of the appraisal. Anysubsequent, unforeseen adverse economic condition that might occur could impact the subject value.
We have performed no services, as an appraiser or in any other capacity, regarding the property that is thesubject of this report within the three-year period immediately preceding acceptance of this assignment.
Exposure time is always presumed to precede the effective date of appraisal. A normal exposure time forthe subject property is estimated to be 6-12 months. This conclusion is predicated on interviews withbrokers and other real estate industry sources and on information obtained in the verification process. Thevalue reported herein presumes such an exposure time.
FHA/VA Case No. Page # 15
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FHA/VA Case No. Page # 16
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Subject Photo Page
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Subject Street
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Subject street Entrance
Entrance Interior- restaurant
Interior- restaurant Interior- restaurant
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FHA/VA Case No. Page # 18
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Photograph Addendum
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Interior- restaurant Interior- restaurant
Interior- restaurant Interior- restaurant
Interior- restaurant basement kitchen Interior- restaurant basement kitchen
Borrower
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Property Address
City County State Zip Code
FHA/VA Case No. Page # 19
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Interior Photos
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Boiler water heater
electrical service electrical service
Staircase Staircase
Borrower
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City County State Zip Code
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Interior Photos
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Typical apartment interior Typical apartment interior
Typical apartment interior Typical apartment interior
Typical apartment interior Typical apartment interior
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FHA/VA Case No. Page # 21
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Comparable Photo Page
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Comparable 1128 W 23rd St
Comparable 243 W 27th St
Comparable 3149 W 27th St
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FHA/VA Case No. Page # 22
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Comparable 452 W 21st St
Comparable 5129 W 29th St
Comparable 6209 W 18th St
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FHA/VA Case No. Page # 23
Form ACR - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODELAVAL, LLC. ( 917) 495-9008
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, 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 each acting in what he considers his 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.
* Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary
for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable
since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the
comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the
property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession
but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the
appraiser's judgement.
STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION
CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following
conditions:
1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes that
the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible
ownership.
2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist
the reader of the report in visualizing the property and understanding the appraiser's determination of its size.
3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted
in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes
no guarantees, express or implied, regarding this determination.
4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do
so have been made beforehand.
5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value. These
separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used.
6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxic
substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performing
the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or
adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc.) that would make the property more or less valuable, and
has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. The
appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such
conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an
environmental assessment of the property.
7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be
reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other
parties.
8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice.
9. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or
alterations on the assumption that completion of the improvements will be performed in a workmanlike manner.
10. The appraiser must provide his or her prior written consent before the lender/client specified in the appraisal report can distribute the appraisal report
(including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal
organizations or the firm with which the appraiser is associated) to anyone other than the borrower; the mortgagee or its successors and assigns; the mortgage
insurer; consultants; professional appraisal organizations; any state or federally approved financial institution; or any department, agency, or instrumentality
of the United States or any state or the District of Columbia; except that the lender/client may distribute the property description section of the report only to data
collection or reporting service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval must also
be obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media.
Freddie Mac Form 439 6-93 Fannie Mae Form 1004B 6-93Page 1 of 2
FHA/VA Case No. Page # 24
Form ACR - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
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Alexander M. Yampolsky
09/01/2015
46000046357
NY
02/12/2016
10. We have not performed any appraisal work or other assignments related to the subject property within the three years preceding to his assignment.
11. Alexander Yampolsky meets the current education requirements of the Appraisal Institute as of the date of this appraisal.
APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that:
1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property
for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant
variation. If a significant item in a comparable property is superior to, or more favorable than, the subject property, I have made a negative adjustment to reduce
the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject property, I have made
a positive adjustment to increase the adjusted sales price of the comparable.
2. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have not
knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the
appraisal report are true and correct.
3. I stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent
and limiting conditions specified in this form.
4. I have no present or prospective interest in the property that is the subject to this report, and I have no present or prospective personal interest or bias with
respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report
on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present
owners or occupants of the properties in the vicinity of the subject property.
5. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this
appraisal is contingent on the appraised value of the property.
6. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, the amount of the value estimate,
the attainment of a specific result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal. I
did not base the appraisal report on a requested minimum valuation, a specific valuation, or the need to approve a specific mortgage loan.
7. I performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal
Standards Board of The Appraisal Foundation and that were in place as of the effective date of this appraisal, with the exception of the departure provision of those
Standards, which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value
and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the
reconciliation section.
8. I have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report.
I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate
vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that
I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property.
9. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on significant professional
assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and
disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to perform
the tasks. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take
no responsibility for it.
SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that:
I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser,
agree to be bound by the appraiser's certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report.
ADDRESS OF PROPERTY APPRAISED:
APPRAISER: SUPERVISORY APPRAISER (only if required):
Signature: Signature:
Name: Name:
Date Signed: Date Signed:
State Certification #: State Certification #:
or State License #: or State License #:
State: State:
Expiration Date of Certification or License: Expiration Date of Certification or License:
Did Did Not Inspect Property
Freddie Mac Form 439 6-93 Fannie Mae Form 1004B 6-93Page 2 of 2
FHA/VA Case No. Page # 25
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