APPRAISAL REPORT - Yellowstone County, Montana REPORT Proposed 3rd-Floor ... INTRODUCTION ... A...

APPRAISAL REPORT

Proposed 3rd

-Floor Office Condominium

Stillwater Building

316 North 26th

St.

Billings, Montana

APPRAISAL FOR: Yellowstone County

c/o Dan Schwarz, chief deputy county attorney

P.O. Box 35000/Rm403

Billings, MT 59107

APPRAISAL BY: Matt Bender

2320 3rd

Avenue North Billings, MT 59101

(406) 670-6841

EFFECTIVE DATE: Aug. 21, 2017

DATE OF REPORT: Sept. 29, 2017

Matt Bender Certified General Real Estate Appraiser and Consultant

2320 3rd Avenue North

Billings, MT 59101

(406) 670-6841

Sept. 29, 2017

Yellowstone County

c/o Dan Schwarz, chief deputy county attorney

P.O. Box 35000/Rm403

Billings, MT 59107

RE: Proposed 3rd

-Floor Office Condominium

Stillwater Building

316 North 26th

St.

Billings, Montana

Dear Mr. Schwarz:

As previously agreed to and appropriate for this appraisal, I hereby furnish you with an Appraisal Report on the above-referenced

property located in Billings, Montana.

The purpose of this appraisal is to provide a supported opinion of the market value range of the “as proposed” subject property that

will be used as an aid in or to support decisions related to purchasing the property. The property rights appraised are the fee

simple estate. The value(s) reported in the Reconciliation and Certification of Value sections are subject to the Assumptions and

Limiting Conditions contained in this report. The reader's attention is specifically directed to the Exceptional Assumptions and

Limiting Conditions on page 14 of this report.

The narrative report that follows sets forth my value conclusions along with the identification of the property and summary

discussions of pertinent facts about the area, the subject property, comparable data, the results of the investigation and analysis

undertaken and the reasoning that form the basis of my opinion.

This report was prepared for and my professional fee billed to the client, Yellowstone County. The intended users are appropriate

Yellowstone County officials and representatives of W.C. Commercial LLC and is intended for their sole and exclusive use. This

report may not be distributed to or relied upon by other unintended users, persons or entities. Parties who receive a copy

of this report as a consequence of disclosure requirements applicable to the appraiser’s client do not become intended users

of the report unless they are specifically identified by the appraiser at the time of the assignment. Any entity/person

receiving a copy of this appraisal report from the client does not, as a consequence, become a party to the appraiser-client

relationship. The appraiser is not obligated to discuss any aspect of this report with unintended users, entities or third

parties nor is he responsible or liable for any unauthorized use of this report. Any use of this report other than the

intended use stated in this report nullifies and voids the analysis and value estimate(s) provided herein.

The report is in compliance with written and/or oral instructions from Mr. Dan Schwarz and conforms to the Uniform Standards of

Professional Appraisal Practice (USPAP).

I trust you will find the information contained within this report useful for your needs. In the event you have any questions, please

do not hesitate to contact the appraiser.

Respectfully submitted,

Matt Bender

Certified General Real Estate Appraiser

State Of Montana License No. REA-RAG-LIC-9279

TABLE OF CONTENTS

INTRODUCTION .................................................................................................................................... 4

SUMMARY OF SALIENT FACTS AND IMPORTANT CONCLUSIONS ............................. 6 TYPE OF APPRAISAL REPORT .............................................................................................. 8 COMPETENCY STATEMENT .................................................................................................. 8 PURPOSE OF THE APPRAISAL .............................................................................................. 8 INTENDED USE/USER OF THE APPRAISAL ........................................................................ 8 SCOPE OF THE APPRAISAL.................................................................................................... 9 DEFINITION OF MARKET VALUE......................................................................................... 10 PROPERTY RIGHTS APPRAISED ........................................................................................... 10 NON-REALTY ITEMS ............................................................................................................... 10 ASSUMPTIONS AND LIMITING CONDITIONS .................................................................... 11 EXCEPTIONAL ASSUMPTIONS AND LIMITING CONDITIONS ....................................... 14 REGIONAL LOCATION MAP .................................................................................................. 16 REGION/CITY DATA/TRENDS ............................................................................................... 16 NEIGHBORHOOD MAP ............................................................................................................ 20 NEIGHBORHOOD DATA/TRENDS ......................................................................................... 20

PROPERTY DATA ................................................................................................................................. 22

TAX AND ASSESSMENT DATA ............................................................................................. 23 ZONING ...................................................................................................................................... 23 SUBJECT PICTURES ................................................................................................................. 24 SITE MAP ................................................................................................................................... 33 HIGHEST AND BEST USE ....................................................................................................... 36

PROPERTY VALUATION .................................................................................................................... 38

THE VALUATION PROCESS ................................................................................................... 39 VALUATION METHODS SELECTED ..................................................................................... 40 LAND/SITE VALUATION ........................................................................................................ 41 COST APPROACH ..................................................................................................................... 42 INCOME CAPITALIZATION APPROACH .............................................................................. 46 RENT COMPARABLE LOCATION MAP ................................................................................ 47 SALES COMPARISON APPROACH ........................................................................................ 52 CONDOMINIUM SALE LOCATION MAP .............................................................................. 52 HISTORY .................................................................................................................................... 57 EXPOSURE TIME ...................................................................................................................... 57 RECONCILIATION .................................................................................................................... 58 CERTIFICATION OF VALUE ................................................................................................... 60

ADDENDA ................................................................................................................................................ 61

FLOOD MAP .............................................................................................................................. 62 3

RD FLOOR PLANS .................................................................................................................... 63

RENT COMPARABLE PICTURES ........................................................................................... 64 CONDOMINIUM SALE PICTURES ......................................................................................... 66 APPRAISER’S QUALIFICATIONS .......................................................................................... 69 STATE CERTIFICATION .......................................................................................................... 70

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Matt Bender, Real Estate Appraiser and Consultant

INTRODUCTION

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Stillwater Building

316 North 26th

St.

Billings, Montana

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SUMMARY OF SALIENT FACTS AND IMPORTANT CONCLUSIONS

Owner of Record: WC Commercial, LLC

316 N. 26th

St.

Billings, MT 59101

Property Address: 316 N. 26th

St.

Billings, MT

Legal Description: Lots 1-12, Block 43, Billings Original Townsite, City of Billings, Yellowstone County, State of

Montana.

Area Economic General commercial, retail, service, restaurant, medical/professional office, financial institutions, shop,

Conclusions: city/county/federal/state government facilities, surface/structural parking facilities, convenience stores,

with single/multi-family residential structures dispersed throughout the area.

Type of Property: Proposed Office/Condominium.

Highest & Best Use: As Vacant – Under the “as proposed” condominium proposal, it is concluded that the maximally

productive use of the subject site may be for professional office or retail uses.

As Improved – The proposed use as an office/condominium.

2016 Taxes: Tax ID: A00251 – $45,369.10

Zoning: Central Business District (CBD)

Site Size: 42,000 SF

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Building Improvements:

“As Proposed” Square Foot Summary

Identification Description GBA (SF)

3rd

Floor Office/Condominium Finished Office Space 14,818 SF (43%)

Shell/Storage Space 16,158 SF (47%)

Mechanical Room 2,026 SF (6%)

Common Area 1,157 SF (3%)

Total GBA (above grade) 34,159 SF (100%)

Basement Parking 810 SF

Observation Date: 8/21/2017

Effective Date: 8/21/2017

Value Indications

Land Value

$0

Cost Approach: $4,000,000

Income Capitalization Approach

Direct Capitalization: $2,752,300 to $3,096,400

Sales Comparison Approach

Direct Comparison: $3,340,400

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TYPE OF APPRAISAL REPORT

Appraisal Report Restricted Report

X

Appraisal Report – A written report that is intended to comply with the reporting requirements set forth under Standards Rule 2-

2(a) of the USPAP standards for an Appraisal Report. The depth of discussion contained in this report is specific to the needs of

the client and for the intended use stated within this report. The appraiser is not responsible for unauthorized use of the report.

COMPETENCY STATEMENT

I, Matt Bender, have the education, knowledge, and experience to competently complete an appraisal of the subject property.

Refer to the appraiser’s qualifications in the Addenda.

PURPOSE OF THE APPRAISAL

The purpose of this appraisal is to provide a supportable opinion of the market value range estimate of the “as proposed” subject

property as of the effective date of the appraisal.

INTENDED USE/USER OF THE APPRAISAL

This appraisal will be used as an aid in or to support decisions related to purchasing the property. The intended users are

appropriate Yellowstone County officials and representatives of W.C. Commercial, LLC and is intended for their sole and

exclusive use. This report may not be distributed to or relied upon by other unintended users, persons or entities. Parties

who receive a copy of this report as a consequence of disclosure requirements applicable to the appraiser’s client do not

become intended users of the report unless they are specifically identified by the appraiser at the time of the assignment.

Any entity/person receiving a copy of this appraisal report from the client does not, as a consequence, become a party to

the appraiser-client relationship. The appraiser is not obligated to discuss any aspect of this report with any unintended

users, entities or third parties which are not stated as an intended user in this report nor is he responsible or liable for any

unauthorized use of the report. Any use of this report other than the intended use stated in this report nullifies and voids

the analysis and value estimate(s) provided herein.

This appraisal was requested by Mr. Dan Schwarz and conforms to the Uniform Standards of Professional Appraisal Practice

(USPAP).

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SCOPE OF THE APPRAISAL

I discussed the assignment with the client and viewed the existing structural and site improvements on 8/21/2017 and 9/18/2017.

In addition, I referenced Yellowstone County CAMA data.

I examined the subject’s marketing area to determine the existing and proposed inventory as well as demand for and marketability

of the subject property. Based on the location of the subject property, surrounding land use/trends and structural improvements,

the highest and best use of the property as vacant land and as improved was determined.

The “as proposed” property would be condominium unit. As such, the owner of the unit would own an undivided interest in the

subject site of approximately 16.67 percent. The owner would own a share in the land along with the other condominium units.

The owner’s portion of the land could not be sold separately from the rest of the site. Therefore valuing the owner’s undivided

interest in the site was not attempted in this report.

The Cost Approach is a good indicator of the value when the improvements are new or relatively new, represent the highest and

best use of the land or where there are few sales or limited lease data available. The subject property is a unique property. The

developer provided an overall cost but not a detailed breakdown of the costs of the proposed unit. A Cost Approach with the

Marshall & Swift SwiftEstimator was completed. The SwiftEstimator Cost came in higher than the developer’s cost. The

developer’s cost was emphasized

The subject property is currently vacant and is being completely renovated. A rent survey was conducted to determine lease rates

for office and shell/storage properties in the community. A vacancy rate was determined and deducted from the potential gross

income the property could generate resulting in the net operating income. A cap rate range was determined from sales of office

condominiums and the mortgage equity band of investment method. The net operating income was capitalized and a value range

for the subject property by the Income Capitalization Approach was reported.

I searched the local market for sales of office condominiums in the community and utilized sales from my database. Four sales

and a listing were identified and analyzed with respect to the subject property. A value estimate by the Sales Comparison

Approach was reported.

The values indicated by the Income Capitalization, Sales Comparison and Cost Approaches were reconciled and a value opinion of

the fee simple estate was reported.

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DEFINITION OF MARKET VALUE1

"The most probable price which a property should bring in a competitive and open market under all conditions requisite

to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by

undue stimulus." Implicit in this definition are the consummation of a sale as of a specific date and the passing of title from

seller to buyer under conditions whereby:

buyer and seller are typically motivated;

both parties are well informed or well advised and acting in what they consider their own best interests;

a reasonable time is allowed for exposure in the open market;

payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and

the price represents the normal consideration for the property sold unaffected by special or creative financing or sale

concessions granted by anyone associated with the sale.

PROPERTY RIGHTS APPRAISED

The property rights appraised are the fee simple estate.

NON-REALTY ITEMS

No personal property items, e.g., furniture, fixtures and equipment (FF&E) or other non-realty items have been included in the

value estimates provided herein.

1 Federal Register, Rules and Regulations, Volume 55, No. 165, page 34696.

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ASSUMPTIONS AND LIMITING CONDITIONS

1. The effective date of value to which the opinions expressed in this report apply is set forth in the certification. The appraiser

assumes no responsibility for economic or physical factors occurring at some later date that may affect the opinions stated

herein.

2. No opinion is intended to be expressed for legal matters that would require specialized investigation or knowledge beyond that

ordinarily employed by real estate appraisers, although such matters may be discussed in the report.

3. No opinion as to title is rendered. Data on ownership and the legal descriptions were obtained from sources generally

considered reliable. Title is assumed to be marketable and free and clear of all liens and encumbrances, easements and

restrictions except those specifically discussed in the report. The property is appraised assuming it to be under responsible

ownership and competent management and available for its highest and best use.

4. An engineering survey has not been conducted by the appraiser. Except as specifically stated, data relative to size and area

was taken from sources considered reliable.

5. The maps, plats and exhibits included herein are for illustration only and used as an aid in visualizing matters discussed within

the report. They should not be considered as surveys or relied upon for any other purpose.

6. No opinion is expressed as to the value of subsurface oil, gas, or mineral rights and that the property is not subject to surface

entry for the exploration or removal of such materials except as expressly stated.

7. Testimony or attendance in court or at any other hearing is not required by reason of rendering this appraisal unless such

arrangements are made a reasonable time in advance and at an additional fee.

8. A title report was not made available to the appraiser. The appraiser assumes no responsibility for such items of record not

disclosed in a title report or by his normal investigation in the appraisal process.

9. It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws

unless otherwise stated in this report.

10. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity

has been stated, defined and considered in this report.

11. It is assumed that all required licenses, certificates of occupancy, or other legislative or administrative authority from any

local, state or national governmental, or private entity or organization have been or can be obtained or renewed for any use on

which the value estimates contained in this report are based.



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12. It is assumed that the utilization of the land and improvements are within the boundaries or property lines of the property

described and that there is no encroachment or trespass unless otherwise stated in this report.

13. Unless otherwise stated in this report, the existence of hazardous material that may or may not be present on the property was

not observed by the appraiser. The appraiser has no knowledge of the existence of such material on or in the property. The

appraiser, however, is not qualified to detect such substances. The presence of substances such as toxic waste, asbestos, urea-

formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. The value

estimate is predicated on the assumption that there is no such material on or in the property that 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 this field, if desired.

14. On January 26, 1992, the Americans with Disabilities Act (ADA) became effective. I have not made a specific compliance

survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of

the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the

ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact

could have a negative effect upon the value of the property. Since I have no direct evidence relating to this issue, I did not

consider possible noncompliance with the requirements of the ADA in estimating the value of the property.

15. The appraiser is not a property inspector, general contractor, structural engineer, environmental specialist, plumber,

electrician, roofer, pest control specialist, etc. A physical inventory of the subject property is required as part of the appraisal

process in order to a) adequately describe the real estate in the appraisal report, b) develop an opinion of the highest and best

use, and c) make meaningful comparisons in the valuation of the property, but it does not constitute an expert inspection of the

property. In addition, the appraiser does not have professional expertise regarding deed restrictions, FEMA and zoning

classifications. Zoning classification data is obtained from the City/County Planning and FEMA data is based on FEMA maps

when available. The property inventory and appraisal do not guarantee that the property is free of defects including code

violations. In order to fully and adequately determine the condition of the subject property, the client and/or parties involved

with the property are encouraged to consult specialists in their respective fields of expertise. The appraiser makes no

warranties, either expressed or implied.

16. The liability of Matt Bender is limited to the client and to the fee collected. This report may not be distributed to or relied

upon by other unintended users, persons or entities. Parties who receive a copy of this report as a consequence of

disclosure requirements applicable to the appraiser’s client do not become intended users of the report unless they are

specifically identified by the appraiser at the time of the assignment. Any entity/person receiving a copy of this

appraisal report from the client does not, as a consequence, become a party to the appraiser-client relationship. The

appraiser is not obligated to discuss any aspect of this report with any unintended users, entities or third parties nor is

he responsible or liable for any unauthorized use of this report. Any use of this report other than the intended use

stated in this report nullifies and voids the analysis and value opinion(s) provided herein. The appraiser assumes no

responsibility for any costs incurred to discover or correct any deficiencies of any type present in the property, physically,

financially, economically or legally.



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17. This appraisal report contains "trade secrets and commercial or financial information" which is privileged and confidential and

exempt from disclosure under 5 U.S.C. 552 (b) (4). Disclosure of the contents of this report is governed by the Bylaws and

Regulations of the Appraisal Institute. Neither all nor any part of the contents of this report shall be used for any purposes by

anyone but the client specified in the report, nor shall it be conveyed by anyone to the public through advertising, public

relations, news, sales, or other media without the prior written consent and approval of the appraiser. Notify Matt Bender of

any request to reproduce this appraisal in whole or in part.



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EXCEPTIONAL ASSUMPTIONS AND LIMITING CONDITIONS

1. The State of Montana is a "nondisclosure" state and as such, sale prices of real estate are not publicly recorded, therefore, few

centralized sources of sale prices for real estate transactions exist. In addition, no one associated with a real estate sale

transaction is obligated to release or verify information. The client is hereby notified that it is possible there may be sales of

comparable properties of which I have no knowledge and have not analyzed herein. The information presented herein has been

gathered from sources deemed reliable and every effort has been made to insure its accuracy.

2. A Phase I Environmental report was not made available to the appraiser. The analysis and value(s) reported herein are null and

void should such an environmental report disclose the presence of hazardous substances on or within the subject site. The

client is urged to retain an expert in this field if desired.

3. Yellowstone County agrees to indemnify and hold harmless, Matt Bender, Real Estate Appraiser and Consultant and

employees from any and all claims for loss and liabilities of any nature whatsoever arising out of or related to this contract, the

appraisal report, or use of this report for any other use by any unintended user.

4. The proposed subject property does not yet, in fact, exist as of the date of the appraisal. The analyses performed to develop the

opinion of value are based on the hypothetical condition2, specifically that the improved property is assumed to exist when in

fact it does not exist and the impact that the hypothetical condition may have on the value estimates provided in the report.

Certain events need to occur, as disclosed in the report, before the property appraised with the proposed improvements will in

fact exist and the appraisal does not address unforeseeable events that could alter the proposed property improvements and/or

market conditions reflected in the analysis. The appraiser is not responsible for unforeseeable events that could alter the

market conditions and impact the value estimates provided herein.

5. The Cost Approach has been included in this analysis to support the appraiser’s opinion of the property’s market value. Use of

this data, in whole or part, for other purposes is not intended by the appraiser. Nothing set forth in the appraisal should be

relied upon for the purpose of determining the amount or type of insurance coverage to be placed on the subject property. The

appraiser assumes no liability for and does not guarantee that any insurable value estimate inferred from this report will result

in the subject property being fully insured for any loss that may be sustained. Further, the Cost Approach may not be a reliable

indication of replacement or reproduction cost for any date other than the effective date of this appraisal due to changing costs

of labor and materials and due to changing building codes and governmental regulations and requirements.

6. As of the effective date of this appraisal, condominium documents had not been developed for the “as proposed” subject

property. Additionally, the appraiser was not provided detailed developer’s building costs. The analyses performed to develop

the opinion of value are based on information given to the appraiser from the developer and the client. The analysis and

value(s) reported herein are null and void should the property be developed in a manner other than the information provided.

2 Hypothetical Condition: a condition, directly related to a specific assignment, which is contrary to what is known by the

appraiser to exist on the effective date of the assignment results, but is used for the purposes of analysis. USPAP 2014-2015

Edition, Page U3.



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7. Asbestos abatement was performed on the subject property. The developer reports that asbestos has been removed from 100

percent of all accessible areas, but some inaccessible areas may still contain asbestos. The analysis and value(s) reported

herein are null and void should the presence of asbestos be detected in accessible areas. The client is urged to retain an expert

in this field if desired.

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REGIONAL LOCATION MAP

REGION/CITY DATA/TRENDS

The City of Billings, the county seat of Yellowstone County, is located in south-central Montana, midway between Seattle,

Washington, and Minneapolis, Minnesota and 550 miles northwest of Denver, Colorado.

Billings is a transportation hub for Montana. Logan International Airport is Montana’s busiest air terminal. Greyhound Bus Lines,

a transcontinental bus line, carries passengers between Billings and destinations throughout the United States. Burlington

Northern and Montana Rail Link Railroads transport freight to and from the area; passenger rail service is not available. Interstate

Highways 90 and 94 intersect at Billings and are supplemented by several other major highways. City buses and taxi services

provide local and interurban service throughout the city.

Social Forces

Historical population statistics for Billings, Yellowstone County and Montana according to the U.S. Census Bureau are illustrated

in the graph on the following page.



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According to estimated census population figures from the U.S. Census Bureau, the Montana population increased by 2.60% from

2010 to 2013, Yellowstone County increased by 2.64% and Billings has increased in population by 2.46% over the same time

period.

Economic Forces

Billings is Montana’s largest trade and service center and enjoys a diversified business economy for manufacturing, wholesale

distribution, retailing, governmental agencies, medical, oil, gas and coal industries and agricultural related businesses. In addition,

Billings has a modern regional shopping center located in the western portion of the community. Its department stores and

specialty shops attract customers from all parts of the trade area.

Agriculture, tourism, and recreation also play a major role in the city’s and area’s economy.

While no one industry is believed to play a decisive role in the future of the city, the Billings economy receives positive impact

from the development of oil, gas and coal reserves in eastern Montana, northeastern Wyoming and western North Dakota. In

addition, Billings has received economic benefits from the mining activity at the Stillwater Mine located approximately 100 miles

southwest of the community. There is renewed interest in coal mining in the Roundup area and the Stillwater Mining operations

that could have an impact on the local economy.

The City of Billings has two general hospitals, the Billings Clinic and St. Vincent Hospital, which serve a large population in

Montana and northern Wyoming.

Billings has numerous commercial banks, savings banks, and credit unions. There are public and private lower educational

institutions that include parochial, elementary, middle and high schools with two four-year colleges and a number of vocational

and trade schools that offer a wide variety of vocational and technical training.



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The major employers in the Billings area according to the Census and Economic Information Center, Montana Department of

Commerce are the Federal Government, the Billings Clinic, Billings School District #2, St. Vincent Hospital and Health Center,

State of Montana, City of Billings, Better Business Systems, Yellowstone County, Wells Fargo Bank and First Interstate Bank.

Since 1995 the unemployment rate for Yellowstone County has consistently averaged about one percentage point below the state

average and has remained well below the national average since at least 1989. The unemployment rate for August 2017 for the

nation was reported to be 4.4%, 3.4% for Montana and 3.2% for Yellowstone County.

Governmental Forces

Billings has a council-manager form of government comprised of the mayor, ten council members, and a city manager. The City

of Billings Police and Fire departments provide security and fire protection services. All utility services and public transportation

are available.

There is a city/county planning department that governs new commercial and residential building developments.

Environmental Factors

The geography for Billings is a mix of plains and mountains. The city is situated 3,126 feet above sea level.

The climate is semi-arid with low year-round humidity with moderate annual precipitation and temperatures.

Trends

The economy is projected to keep expanding. Renewed interest in mining operations in the Roundup and Stillwater areas has

some long-term employment growth potential.

The general retail market in the central business district is not as strong as in previous years. The trend has been towards specialty

retail establishments. There are several street-level retail rental suites in the “prime” downtown area that are available for lease.

There has been an increase in development activity with respect to renovation of existing facilities into mixed-use apartment, retail

and/or office buildings as evidenced by the current renovation of the Babcock Building located at the southwest corner of North

Broadway and 2nd

Avenue North and the recent renovation of the Northern Hotel located at the southeast corner of North

Broadway and 1st Avenue North. In addition, a new Federal Courthouse located along 2

nd Avenue North just east of North 27

th

Street, a Federal office building at 4th

Avenue North and North 20th

Street, a new bank and office building at the northwest corner

of North Broadway and 4th

Avenue North and a public library at the southwest corner of 6th

Avenue North and North Broadway

have recently been completed. The former Greyhound Bus Station located at the southwest corner of North 25th

Street and 1st

Avenue North has been renovated and converted into an entertainment venue. A new office/retail and parking garage have just

been completed at the northeast corner of North Broadway and Montana Avenue. The subject property, the McDonald Building at



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Second Avenue and North 29th

Street and the Securities Building at 1st Avenue North and North 27

th Street are all undergoing

renovation.

There has been sporadic commercial and residential development in the Billings Heights, Lockwood and west/southwest Billings

areas. There continues to be strong retail development along King Avenue West in the Montana Sapphire Subdivision and around

the Shiloh Road/I-90 Interchange in addition to an increase in new commercial development activity taking place in the TransTech

Subdivision north of the Shiloh Road/I-90 Interchange.

The multi-family market has remained stable as additional supply has been added with vacancy rates reported to be in the range

from 0% to 5%. Landlords and leasing agents report that apartment rental rates are increasing.

There was a slowdown in new single-family residential development including demand for homes at the upper end of the value

range starting in spring/summer of 2008 and continues today. Tightening credit standards has also had an impact on demand. On

the positive side, due to Bakken oil field activity in North Dakota and eastern Montana, housing demand in the community has

been increasing along with activating new phases in existing subdivisions and kick-starting new ones resulting in an increase in

new single-family residential home development. In addition, there has been an increase in demand for truck/trailer repair and

service and demand for large warehouse/shop space to provide support services for Bakken oil drilling equipment and personnel.

Overall, the economic outlook for the immediate and foreseeable future for Billings and the general vicinity is positive.

Household income and population are expected to grow at modest, sustainable rates.

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NEIGHBORHOOD MAP

NEIGHBORHOOD DATA/TRENDS

The boundaries of the subject neighborhood are Sixth Avenue North (N), Division Street (W), Montana Avenue (S) and North 22nd

Street (E). The subject property is located on the west side of North 26th

Street approximately three blocks northeast of the central

business core of the downtown area.

Access to the neighborhood is provided from Montana Avenue, 2nd

and 4th

Avenues North and Grand Avenue from the west,

North/South 27th

Street from the north and south, North 30th

Street from the north and 1st, 3

rd and 6

th Avenues North from the east.

In addition, there are numerous east/west and north/south collector streets that provide access to the neighborhood. The South 27th

Street/I-90 Interchange is located approximately 1.5 miles southeast of the southerly neighborhood boundary.

Utilities include public water and sewer, natural gas, electricity, and telephone services. The utilities appear adequate to serve the

needs of the various residential and commercial properties in the neighborhood.

Police and fire protection and public transportation are available.

Typical occupancies include general commercial, convenience stores, hotels and motels, restaurants/lounges/casinos, retail stores,

financial institutions, office/shop/warehouse and a wide variety of private and public office buildings. There are also older single

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and multi-family properties dispersed throughout the neighborhood. The commercial and residential structures reflect a wide mix

of ages and design.

Trends

My investigation of the subject neighborhood indicates that it appears to be in a revitalization stage. The neighborhood was

originally developed 70 to 80 years ago as the central business district and residential area of the community. The current trend is

for the renovation/remodeling of existing structures into office, specialty retail and restaurant establishments including the

conversion of smaller residential properties into surface parking lots. Those areas on the fringe of the subject neighborhood have

remained static with little development or sales activity to date.

A new Federal Courthouse, a federal office building, an office/bank facility, a public library and parking/office/retail structure

have recently been completed. The Babcock Building and the Northern Hotel have been extensively renovated. The subject

property, the McDonald Building at Second Avenue and North 29th

Street and the Securities Building at 1st Avenue North and

North 27th

Street are all undergoing renovation.

On the negative side, there are several retail and office buildings in the prime downtown area that have rental suites available for

lease.

In conclusion, the economy of the central business district does not appear as strong as in previous years, however, there is still

interest in the downtown area as evidenced by the renovation/remodeling and sales of existing buildings in the central business

district.

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PROPERTY DATA

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TAX AND ASSESSMENT DATA

The Yellowstone County Assessor’s records for the subject property are illustrated in the table below. The taxes do not include

any furniture, fixtures, and equipment (FF&E).

AD VALOREM TAX INFORMATION

Code/Classification Market Value 2016 Taxes

A00251

Commercial Land $1,610,700

Improvements $3,077,790

Total $4,688,490 $45,369.10

Special Assessments

The appraiser has no actual knowledge nor has received any notice of any other special assessments levied or about to be levied

against all or any part of the subject property.

ZONING

The subject property is situated in the Central Business District (CBD) zoning district.

On-site Parking

There are no on-site parking requirements for properties situated in the CBD. However, the “as proposed” condominium owner

would have five on-site parking spaces located in the basement parking garage. There is metered and two-hour parking on North

26th

Street and 3rd

Avenue North. There is a metered parking lot to the southeast of the subject property and private paid parking

lot to the northeast.

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SUBJECT PICTURES

The southerly and easterly elevations of the Stillwater Building looking to the west.

Taken by Matt Bender on 9/20/2017

The easterly and northerly elevations of Stillwater Building looking to the south.




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The northerly and westerly elevations of the Stillwater Building looking to the east.


The westerly and southerly elevations of the Stillwater Building looking to the north.




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Looking to the southwest along the north side of 3

rd Avenue North from near the southeast corner of the subject site.

Stillwater Building at right center of photograph.


Looking to the northwest along the west side of North 26

th Street from near the southeast corner of the subject site.

Stillwater Building at left center of photograph.




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Looking to the southeast along the west side of North 26

th Street from near the northeast corner of the subject site.



Looking to the southwest along the south side of 4

th Avenue North from near northeast corner of the subject site.





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Looking to the northeast along the south side of 4

th Avenue North from near northwest corner of the subject site.



Looking to the southeast along the west side of the public alley near the northwest corner of the subject site.





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Looking to the northwest along the west side of the public alley near the southwest corner of the subject site.



Looking to the northeast along the north side of 3

rd Avenue North near the southwest corner of the subject site.





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The “as proposed” finished 3

rd-floor office area.


The “as proposed” 3

rd-floor shell office area.

Taken by Matt Bender 9/19/2017



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The 3

rd-floor elevators and central stairs.


The Stillwater Building’s roof.




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The Stillwater Building’s ramp to basement parking.


The Stillwater Building’s basement parking area.


Property Description of 70


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SITE MAP

Subject site outlined in red.

The subject site is a rectangular shaped corner parcel with a gross area of 42,000 SF+. This parcel has 300’ of frontage along the

west side of North 26th

Street, a 140’ of frontage along the south side of 4th

Avenue North and 140’ of frontage along the north side

of 3rd

Avenue North. The westerly boundary abuts public alley.

The subject site has curb/gutters along North 26th

Street, 4th

Avenue North and 3rd

Avenue North.

Vehicular access to the property is from one curb cut on 3rd

Avenue North and the public alley.

The site is generally level and at grade with the adjacent roads and properties.

Public sanitary sewer and water, natural gas, electricity, and phone service are available.

According to FIRM Map No. 30111C1270E, the site is not situated within a designated flood zone. Yellowstone County is located

within Seismic Zone 1.

The “as proposed” owner of the 3rd

-floor condominium would own an undivided interest of approximately 16.67% of the 42,000

SF site or (42,000 SF x .1667 = 7,001 SF).

The physical inventory of the subject site did not reveal any other visual easements and/or restrictions, encroachments, nuisances,

hazards, detrimental influences or private deed restrictions that would impact site utilization or value.



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Site Improvements –

There concrete canopies, concrete paving, concrete planters, natural stone planters, metal handrails, concrete benches, ornamental

iron fence, grass, and underground sprinklers.

Structural Improvements “as proposed” –

FOOTING/FOUNDATION: Concrete.

FLOOR STRUCTURE: Concrete and steel.

FLOOR COVER: Carpet squares and ceramic tile. As proposed, the shell space would have no floor covering.

FRAME: Structural fire-proofed steel.

EXTERIOR WALL: Precast concrete panels. Windows are double pane vertical pivot in metal frames. Exterior

doors are metal/glass in metal frames and metal in metal frames. There are three metal

overhead doors with electric openers.

PARTITIONS: Metal stud framing with painted drywall and wallpaper. Doors would be wood in metal

frames. As proposed, the shell space would not have interior partitions.

CEILING: Drop in acoustical tile with LED lighting. As proposed, the shell space would have temporary

lighting with no ceiling finish.

ROOF STRUCTURE: Flat.

ROOF COVER: Built-up.

HVAC: Hot and chilled water (zoned).

ELECTRICAL: All wiring systems assumed to be in compliance with applicable federal, state and local codes.

The number and type of fixtures and outlets are typical for the quality of construction and

occupancy.

PLUMBING: The woman’s restroom would have seven toilets and four sinks. The men’s restroom would

have four toilets, three urinals, and four sinks. The plumbing is typical for the quality of

construction and occupancy.



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INSULATION: Observed.

INTERIOR FINISH: Good quality interior finish.

QUALITY/CONDITION: The overall quality of the materials and workmanship would be Class A quality construction in

good condition.

COMMENTS: “As proposed,” the 2,026 SF mechanical room on the 3rd

floor would serve the 3rd

floor only

and would be the property of the condominium owner and not considered “common area.”

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HIGHEST AND BEST USE

In appraisal practice the concept of highest and best use represents the premise upon which value is based. The four criteria the

highest and best use must meet are 1) legal permissibility, 2) physical possibility, 3) financial feasibility and 4) maximum

profitability. Highest and best use analysis involves assessing the subject as if vacant and as improved.

Vacant Land Highest and Best Use

The site is situated within the Central Business District (CBD) Zoning District. A wide variety of general commercial, retail,

service, medical and professional office, restaurants, lounges, hotels/motels, banking and financial institutions, vehicle parking and

multi and single-family uses are allowed. Although the documents had not been drawn up as of the effective date of this report,

the site would be subject to the “as proposed” condominium documents. The “as proposed” site would be limited to office and

retail uses.

The subject site is not located within a designated flood hazard zone. Yellowstone County is located within Seismic Zone 1.

The appraiser is not aware of any other private covenants, conditions or restrictions (CCR’s), nuisances, hazards or detrimental

influences that run with the land. However, a survey and title report should be consulted for final determination; neither of

these documents has been supplied to the appraiser.

The subject site is a corner parcel with a gross area of 42,000 SF. All utility services to the site are available. The parcel has good

visibility and convenient access. There are curb, gutters, and sidewalks present. While soils were not independently investigated,

no apparent adverse conditions with respect to topography and soil bearing characteristics were observed at the time of the visual

inventory. Soils were not independently investigated and no opinion as to the suitability for any specific use has been rendered by

the appraiser. In summary, there are no obvious physical deficiencies that preclude proper development of the site.

The nature of existing improvements in the area reflect restaurants, casinos, microbreweries, professional office, retail, service,

financial institutions, a church, hotel/motel, multi-family housing and surface/structure parking uses. The prime retail area of the

central business district is located approximately three blocks southwest of the subject site.

The Northern Hotel located at the southeast corner of North Broadway and 1st Avenue North and the Babcock building located at

the southwest corner of North Broadway and 2nd

Avenue North have been recently renovated. In addition, a new Federal

Courthouse located along 2nd

Avenue North just east of North 27th

Street, a Federal office building at 4th

Avenue North and North

20th

Street, a new bank and office building at the northwest corner of North Broadway and 4th

Avenue North and a public library at

the southwest corner of 6th

Avenue North and North Broadway have recently been completed. The former Greyhound Bus Station

located at the southwest corner of North 25th

Street and 1st Avenue North has been renovated and converted into an entertainment

venue. A new office/retail and parking garage has been completed at the northeast corner of North Broadway and Montana

Avenue. The subject property, the McDonald Building at Second Avenue and North 29th

Street and the Securities Building at 1st


Street are all undergoing renovation.

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Developers and leasing agents of commercial space in the central business district report that a major concern expressed from

potential tenants in the downtown area is limited parking.

Under the “as proposed” condominium proposal, the site would be limited to retail and office uses. It is concluded that the

maximally productive use of the subject site may be for professional office or retail uses.

Improved Property Highest and Best Use

The “as proposed” subject property is a legal conforming use and is in conformity with other office condominium facilities in this

area of the community.

Under the proposed condominium project, the 3rd

Floor would be limited to professional office uses.

There are professional condominium office units in this area of the community that appear to be successful.

The “as proposed” subject property would be good quality office space with convenient access to downtown with good visibility.

It is concluded that the maximally productive use of the subject property as improved is the proposed use as an office

condominium.

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PROPERTY VALUATION



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THE VALUATION PROCESS

The valuation process is a systematic procedure which involves defining the problem, taking a physical inventory of the subject

property, conducting a highest and best use analysis, selecting, collecting and analyzing the necessary data, reconciling the value

indications and reporting the final value estimate(s).

Appraisers usually consider three approaches to estimating the market value of real property, the Cost Approach, Income

Capitalization Approach and the Sales Comparison Approach.

The Cost Approach assumes that an informed buyer would pay no more than the cost of developing a similar property with the

same utility. This approach is applicable when the improvements are relatively new and represent the highest and best use of the

land or when the property has unique or specialized improvements for which there are limited or no sales or income/expense data

from comparable properties.

The Income Capitalization Approach reflects the market’s perception of a relationship between the potential income a property can

generate and its market value. This approach converts the anticipated net operating income from the property into a value

indication through capitalization. The methods used to determine a value indication are direct capitalization and/or a discounted

cash flow analysis. This approach is generally used in appraising income-producing properties.

The Sales Comparison Approach assumes that an informed buyer would pay no more for a property than the cost of purchasing

another existing property with the same utility. This approach is appropriate when there is an active market with sufficient and

reliable data. The Sales Comparison Approach is less reliable in an inactive market or when estimating the value of a property for

which no comparable data is available. The Sales Comparison Approach is often relied upon for owner-user properties.

Reconciliation of the various approaches utilized to determine a value indication of a property into a conclusion of value is based

on an evaluation of the quality and quantity of data available for each approach and the applicability of each approach to the

property being appraised.

Adjustments

Comparable land and building sales and rent comparables have been considered herein. Adjustments have been made reflecting

anticipated market reaction to those items of significant variation between the subject and the comparable properties. If a

significant item in the comparable property is superior to or more favorable than the subject property, a minus (-) adjustment is

made thus reducing the indicated value of the subject. If a significant item in the comparable is inferior to or less favorable than

the subject property, a plus (+) adjustment is made thus increasing the indicated value of the subject.



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Specific dollar amounts or percentage adjustments have been utilized whenever possible. When specific adjustments cannot be

extracted from the available data, qualitative analysis was utilized in estimating the value of the subject property. Qualitative

analysis is a technique used to develop a supportable or defensible opinion of value. It is appropriate when one or more elements

of comparison are known to affect value, but data are insufficient to estimate a specific lump sum or percentage adjustment. It is

not a shortcut to avoid the extraction of market-derived data.

VALUATION METHODS SELECTED

The following traditional valuation methods have been selected as being appropriate for estimating the defined value of the subject

property.

Cost Approach X Income Capitalization Approach X Sales Comparison Approach X

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LAND/SITE VALUATION





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COST APPROACH

The Cost Approach is a valid indicator of value when the improvements are new construction, are special use properties or if there

are few sales or limited lease data available. A value by the Cost Approach has been included in this analysis to support the

appraiser’s opinion of the property’s market value. See Exceptional Assumptions and Limiting Conditions on page 14 of this

report.

Marshall Valuation Service

To estimate the replacement cost new of the subject improvements, the Marshall & Swift “SwiftEstimator” Commercial Estimator

has been referenced.

The SwiftEstimator method is based on square foot blended costs for the two proposed occupancies. The subject building is

defined as Class A construction. One occupancy is the 14,818 SF of good quality finished office space. The other occupancy is

16,158 SF of average quality shell office space. Based on the respective square foot sizes, the blended cost is 48% finished office

and 52% shell office space. This source resulted in a development cost of $5,174,153 or $151.47 SF of gross building area for the

structural improvements, excluding the site improvements and FF&E. These costs include architect’s fees, contractor’s overhead

and profit, permit fees and interest on interim construction financing.

This development cost needs to be adjusted because the SwiftEstimator’s definition of shell office space is different than the “as

proposed” shell office space. The SwiftEstimator does not include HVAC in its shell office space and the as proposed space will

have HVAC. The SwiftEstimator includes carpet, ceiling, lighting and electrical outlets. The proposed space will not have carpet,

ceiling and will have temporary lighting and electrical. Using Marshall Swift Valuation Segregated Cost method results in an

upward adjustment of $22.50 SF for HVAC and a downward adjustment of $23.26 SF carpet, ceiling, lighting and electrical. The

net adjustment is ($0.76) SF. The adjustment is applied to the 16,158 SF of shell space and is calculated as follows:

16,158 SF x ($0.76) = ($12,280)

The adjusted development cost is $5,174,153 – (12,280) = $5,161,873 or $151.11 SF.

Entrepreneurial Profit

Developers are motivated by the prospect of profit, not just a return of their costs and a fee for their supervision and management

activities. Actual project profit returns normally vary from the developer’s expectations and desires at the project start. For the

developer to stay in business, the average return must be sufficient to compensate for the risk inherent in the real estate

development business. There is a certain amount of risk associated with the development of an office/condominium in this area of

the community. I have not found a developer who is developing a facility similar to the subject property and selling for a profit

without first being required to display a net income profitability supportive of the increased price. That essentially means that

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there is no immediate entrepreneurial profit data available for the development of an office/condominium building in the local

market. Therefore, no entrepreneurial profit has been included in this analysis.

Depreciation

Physical Depreciation – While the improvements inside the condominium will be new construction, the exterior wall of the subject

property will remain the same and has a chronological age of 57 years old. Depreciation rates for similar buildings could not be

identified in the local market, so the age/life method was utilized. Good quality Class A buildings similar to the subject property

have a typical life expectancy of 60 years, according to Marshall Valuation Service (MVS). According to MVS, a 57-year-old

building with a 60-year life expectancy would have around 70 percent depreciation.

According to the SwiftEstimator, the exterior wall of the proposed condominium unit has an RCN of $1,016,572. The

depreciation of the exterior wall is calculated as follows:

$1,016,572 x 0.70 = $711,600

The depreciation amount of $711,600 will be deducted from the development cost.

Functional Obsolescence – The subject property has been completely renovated and will be designed to suit a buyer or tenant.

Functional obsolescence is not a concern.

External Obsolescence – The proposed office/condominium is located in Downtown Billings, where office vacancy exists. Refer

to the Income Capitalization Approach section of this report for an analysis of the Downtown Billings office vacancy rate. Since

this project is being developed in a market with significant office vacancy, external obsolescence is a concern. However, the

amount of external obsolescence could not be extracted from the market.

Refer to the following page for the Cost Approach Summary:

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Cost Approach Summary – SwiftEstimator Cost RCN

$/SF of GBA

Land Value $0

$0.00 SF

Base Cost $3,163,807

$92.62 SF

Exterior Walls $1,016,572

$29.76 SF

Heating & Cooling Adjustment $650,387

$19.04 SF

Elevators (3) $196,338

$5.75 SF

Basement Parking (5) $39,107

$1.14 SF

Shell Adjustments ($12,280)

($0.36) SF

Total Costs $5,161,873

$151.11 SF

Less: Accrued Depreciation $0

$0.00

Or

Physical Depreciation $711,600

$0.00

Functional Obsolescence $0

$0.00

External Obsolescence $0

$0.00

Total Depreciation

$711,600 $0.00

Indicated Value by Cost Approach $4,450,273 $130.28

Cost Comparables

None identified.

Developer’s Cost Estimates

A breakdown of the developer’s costs was not provided to the appraiser. The contractor reports an estimated cost of $4,000,000 or

$117.10 SF of gross building area for the structural improvements of just the 3rd

floor, excluding the site improvements and FF&E.

These costs include entrepreneurial profit, architect’s fees, contractor’s overhead and profit and permit fees.

Refer to the following table for a summary of the cost estimates:

RCN SF Summary

Source $ Per SF

SwiftEstimator $130.28 SF

Developer’s Cost $117.10 SF

SwiftEstimator is at the high end of the indicated range. While SwiftEstimator is a reliable indicator of an RCN, it is an average

which may not reflect local current development costs. And despite deducting the estimated physical depreciation of the exterior

wall, the SwiftEstimator values the rest of the project as stand-alone new construction. In actuality, the proposed office

condominium is part of an extensive renovation of a 57-year-old, five-story building. Without condominium documents, detailed

costs and plans, it would be difficult to value the entire project, extract the value of the proposed 3rd

floor and estimate

depreciation.

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While detailed costs were not provided to the appraiser, the developer’s cost represents a local estimate of the total renovation of

the 3rd

floor. For purposes of this analysis, the developer’s cost will be emphasized.

The indicated value for the subject property by the Cost Approach is $4,000,000 and is based on the condition stated in Paragraph

5, Page 14 of this report.

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INCOME CAPITALIZATION APPROACH

Income Quantity

The potential gross income (PGI) refers to the total income the property is capable of producing from rents and other income at full

occupancy. The effective gross income (EGI) refers to the income after deducting an allowance for vacancy and collection loss.

The net operating income (NOI) refers to the income after deducting landlord operating expenses but before debt service and

depreciation.

Income Quality

Basic issues influencing the quality of the income stream include vacancy, tenant turnover rates, tenant strength, supply and

demand, neighborhood trends, etc. Currently, local Realtors report that the demand for office space in the community is soft with

supply exceeding the demand. The subject office building is located in the Central Business District. There are several office

rental suites in close proximity to the subject property that are vacant and available for occupancy. The most recent new

commercial development in the downtown area is a parking/office/retail structure just developed at the northeast corner of North

28th

Street and Montana Avenue. In addition, several buildings in close proximity to the subject facility have been purchased and

renovated or converted to apartment and mixed-use facilities. Rental rates for good quality professional office space in the

downtown area typically are based on full-service leases that charge a base rental rate plus all the expenses associated with the

property, including management and maintenance and repair. Base rental rates range from around $11.00 SF+ to $18.00 SF+.

Expenses typically range from about $6.00 SF to about $10.00 SF.

Income Durability

The subject property has been vacant for an extended period of time. “As proposed” the property would be owner-occupied.

Fee Simple Estate at market rental rates – Direct Capitalization

When this method is applied, a single year’s income expectancy is capitalized at an overall capitalization rate derived from the

mortgage equity band of investment method and/or market extracted capitalization rates extracted from sales of similar use

properties.

The analysis begins by determining the potential gross income the facility can generate based on market rental rates for

professional office space in and around the downtown area. The total operating expenses are estimated and deducted to derive the

net operating income. The net operating income is then capitalized at an appropriate capitalization rate.

A survey of rental rates for professional office space in/around the downtown area was conducted.

Refer to the following rent comparable location map and rent comparable summary table:



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RENT COMPARABLE LOCATION MAP

Rent Comparable Survey Summary

Identification Size (SF) Base Annual Rent Per SF Annual Expenses Per SF

Rent Comparable 1

2701 Montana Ave.

4,868 SF

$11.26 SF

$5.75 SF

Rent Comparable 2

175 North 27th

St.

Varies

$12.00 SF

$7.70 SF

Rent Comparable 3

401, 404-550 North 31st St.

Varies

$15.23 SF (Average)

$7.25 to $10.30 SF

Rent Comparable 1 is the combination of two condominium office units on the main floor of an average quality three-story

building built in 1928. The property is located at the southwest corner of Montana Avenue and South 27th

Street. Both of the units

are leased to the same tenant and the units have been renovated. All of the condominium units in this building are listed for sale.

Parking is available for an additional fee.

Rent Comparable 2 is a good quality 159,915 SF+, 14-story professional office building located at the southeast corner of 2nd


Street. The building was built in 1977 and was remodeled in 2003. The building has several rental

suites that can be divided into various configurations. Parking is available for an additional fee.



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Rent Comparable 3 is a good quality complex of four office buildings located on North 31st Street between 4

th Avenue North and

6th

Avenue North. There is a total of 446,775 SF+ of professional office in the four buildings. The buildings were built in 1955,

1981, 1983 and 1985. The rental rates for space around 5,000 SF or more range from $12 to $18.45 SF (base rent) based on length

of lease term and finishes with expenses that range from $7.25 to $10.30 SF. The buildings have several rental suites that can be

divided into various configurations. Parking is available for an additional fee.

Final Correlation and Conclusion of Professional Office Market Rental Rate

The developer is projecting between $15 to $18 SF in base rent with $5.00 SF in expenses. For purposes of this analysis, the

subject’s rental rate will reflect a net lease agreement with the tenant being responsible for all of the operating expenses associated

with the subject property.

The base rental rate ranges from $11.26 SF to $15.23 SF with a mean of $12.83 SF and a median of $12.00 SF.

Rent Comparable 1 represents the low end of the range. This rent comparable is similar to the subject property in the respect that

it is office condominium on a single floor. However, this rent comparable is inferior to the “as proposed” subject property with

respect to quality and condition. This suggests a rental rate greater than $11.26 SF.

The subject proposed office space would be finished to suit a tenant. Based on the “as proposed” finish, the subject property’s

office space could be similar to Rent Comparables 2 and 3 and would suggest a rental rate range of $12.00 SF to $15.23 SF with a

mean and median of $13.62 SF. While the subject property will come with five basement parking spaces, it should be pointed out

that both Rent Comparable 2 and 3 have parking garages in close proximity to their properties.

The proposed office space would be essentially new condition and built to suit a tenant, which would indicate a rental rate near the

top of the range. However, the lack of a parking garage is an issue. Therefore, it is concluded that a rental rate in the upper half of

the range between $12.00 SF and $15.53 SF at $14.00 SF is reasonable and supportable and will be utilized for the proposed

finished office space.

Final Correlation and Conclusion of Shell/Storage Market Rental Rate

Approximately 16,158 SF of the proposed 3rd

-floor condominium will be heated shell space. Under that configuration, it will

essentially be heated storage space. Rental rates for basic heated storage/warehouse space in the community range from about

$3.50 to $4.50 SF. For the purposes of this analysis, a rent of $4.00 SF will be utilized for the subject’s shell space.

Final Correlation and Conclusion of Covered Parking Market Rental Rate

The 3rd

-floor condominium would come with five parking spaces in the basement parking garage. The current rate for covered

parking in the city parking garages is $52.50 per month. This rate will be applied to the subject five parking spots.



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Vacancy and Collection Loss

This category accounts for the time period between tenants, as well as prolonged vacancies during slow market conditions and

reflects the probable vacancy during the economic life of the property, not necessarily the vacancy at any particular point in time.

The subject building was built in 1960 as a federal courthouse and served as such until it was vacated in 2012. It has been vacant

for five years, indicating a historical vacancy rate of 9%. NAI Business Properties recently completed a survey in with respect to

the amount of office space available for lease in the community. The survey indicated a 27% vacancy rate for office space in the

downtown area.

Rent Comparable 1 currently has 5% vacancy and Rent Comparable 2 has historically had around 5% vacancy. Rent Comparable

3 just lost a large tenant and has 18% vacancy; however, Rent Comparable 3’s vacancy rate historically has been around 5%.

The subject building is vacant, but the asbestos has been reportedly abated and the building is being completely renovated, so the

building’s historical vacancy rate will not be emphasized. The vacancy rate indicated from the rent comparables and the survey

ranges from 5% to 27%, with a mean and median of 16%.

The proposed space would be completely renovated and built to suit a tenant. The rent comparables provide an indication that

good quality office space has lower vacancy than normal. However, the property has just five covered parking spots and lacks the

access to covered parking that Rent Comparables 2 and 3 have. Considering all of the above, a vacancy rate near the middle of the

lower half of the narrowed range at 10% will be applied to the estimated potential gross income that the subject property could

generate.

Operating Expenses

For the purposes of this analysis, all the operating expenses associated with the property will be passed through to the tenant and

not deducted from the base rent. Therefore no operating expenses will be deducted from the effective gross income.

Capitalization Rate Determination

Local financial institutions indicate current interest rates in the range of 5.00% to 5.25% amortized over 15 to 20 years and a 3 to

5-year rate adjust. Loan-to-value ratios vary from 70% to 75% depending upon whether or not the property will be owner

occupied or an investment. New construction or newer property loans may be amortized over 20 years with older properties

generally amortized over 15 years.

Financing for the subject property may be as follows:

Interest Rate Amortization Call Period Loan-to-Value Ratio

5.00% 20 Years 5 Years 70%



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Interviews with Realtors and investors indicate a 8% to 9% cash on cash return on equity capital may be desired by investors for

properties similar to the subject.

The mortgage-equity band of investment method utilizing a 5.00% interest rate, a 20-year amortization and a loan-to-value ratio of

70% results in full-term cap rates in the range of 7.94% to 8.54%. No adjustment for appreciation or depreciation has been

included.

Market extracted cap rates are the result of the interactions of buyers and sellers in the marketplace, therefore, they are considered

the most reliable source of cap rates. However, this procedure requires considerable and accurate income and expense data that

may not always be available.

Refer to the following table that summarizes cap rates for office/condominium facilities where a cap rate could be extracted.

Office Condominium Cap Rate Summary

Identification Year Sold Sale Price NOI Cap Rate

Condominium Sale 2 2011 $745,000 $61,161 8.21%

Condominium Sale 4 2010 $900,000 $66,000 7.33%

The cap rate range indicated from the condominium sales is from 7.33% to 8.21% with a mean and median of 7.77%.

The indicated range reflected by the condominium sales and the mortgage equity band of investment method is from 7.33% to

8.54% with a mean of 8.01% and a median of 8.08%. Consideration must also be given the amount of vacant office space in

Downtown Billings. It is concluded that a cap rate range from 8.00% to 9.00% is reasonable and supportable.

Refer to the following page for Direct Capitalization summary:



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"As Proposed" 3rd Floor Condominium

Projected Operating Statement

Annual

Type of Space/Tenant SF Leased

Income

Finished Office 14,818 SF $14.00 SF $207,452

Shell/Storage 16,158 SF $4.00 SF $64,632 Parking 5 spots $52.50 mo. $3,150 Potential Gross Income (PGI)

$275,234

ASSUMPTIONS


10.0%

Cap Rate Range

8.00% 9.00%

% $ Per SF

Potential Gross Income (PGI)

$275,234

$8.06 SF


($27,523)

($.81 SF)

Effective Gross Income (EGI)

$247,711 100.0% $7.25 SF

Expenses

Insurance

$0 0.0% $.00 SF

Maintenance/Repair

$0 0.0% $.00 SF

Management

$0 0.0% $.00 SF

Real Estate Taxes

$0 0.0% $.00 SF

Utilities

$0 0.0% $.00 SF

Total Expenses

$0 0.0% $.00 SF

Net Operating Income (NOI)

$247,711 100.0% $7.25 SF

% = Percentage of Effective Gross Income

$247,711

$ = Dollars per SF

34,159 SF

Direct Capitalization - Fee Simple Estate

NOI / OAR Value Indication

$247,711 / 8.00% $3,096,383 $90.65 SF

$247,711 / 8.50% $2,914,242 $85.31 SF

$247,711 / 9.00% $2,752,340 $80.57 SF

The value opinion range of the fee simple estate at market rent is from $2,752,300 (R) to $3,096,400 (R).

Sales Comparison Approach of 70


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SALES COMPARISON APPROACH

Direct Comparison

In this approach, the market value of the subject property is estimated by direct comparison analysis.

Because the subject property is a condominium, direct comparison analysis compares improved sales to the subject property on a

price per square foot of gross building area (GBA) basis without the land. The price per SF of GBA above grade reflects the

physical characteristics of a property and care must be taken in the condominium sale selection process. Four sales and one listing

of office condominiums were analyzed.

CONDOMINIUM SALE LOCATION MAP

Condominium Sale 1 – This a 7,908 SF Average/Good quality office condominium built in 2014. This condominium is located on

the northeast corner of Montana Avenue and North Broadway. This property is part is on the ground level of the new parking

garage developed between North Broadway and North 27th

Street on the north side of Montana Avenue. At the time of the sale,

this condominium was a shell. The buyer said the cost to build-out the property was $112.12 SF.

Condominium Sale 2 – This is a 4,292 SF good quality office condominium built in 2005. The condominium is located on the

south side of Central Avenue just east of Brookshire Boulevard. There is 3,108 SF on the main floor and 1,184 SF on the second

floor. The condominium is part of the Central Business Park Condominiums. At the time of the sale, the unit was being leased for

$15.00 SF. The property was in good condition at the time of the sale.



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Condominium Sale 3 – This is a 5,184 SF good quality office condominium built in 2008. The condominium is located on the

north side of Broadwater Avenue just west of 19th

Street West. At the time of the sale, this property was a building shell. A

broker involved in the sale said the estimated cost of building out the condominium would be between $45 SF and $75 SF

depending on the quality of the finish. The property is part of the Daniel Business Park Association.

Condominium Sale 4 – This is an 8,239 SF good quality office building built in 2003. The property is located on the east side of

South 24th

Street West just south of Grant Road. The building was designed and built as a condominium project but the documents

have not been recorded. Three units were leased at the time of the sale and the building was in good condition at the time of the

sale.

Listing 1 – This property is the combination of two condominium office units on the main floor of an average quality three-story

building built in 1928. The property is located at the southwest corner of Montana Avenue and South 27th

Street. Both of the units

are leased to the same tenant and the units have been renovated. All of the condominium units in this building are listed for sale.

The proposed subject property would have 14,818 SF of finished office space and 16,158 SF of heated shell office space. For the

purposes of this analysis, the two different occupancies will be valued separately.

Refer to the table on the following page for a direct comparison summary for the finished office space:



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"As Proposed" 3rd Floor Condominium Finished Office Space

Condominium Sales Summary

Item Subject Condo Sale 1 Condo Sale 2 Condo Sale 3 Condo Sale 4 Listing 1

Sale Price

$363,768 $745,000 $305,280 $900,000 $788,800

Property Rights Fee Simple Fee Simple Leased Fee Leased Fee Leased Fee Leased Fee

Adjustment

$0 $0 $0 $0 $0

Financing Normal Cash Cash Cash Cash Cash

Adjustment

$0 $0 $0 $0 $0

Conditions of Sale Normal None None None None None

Adjustment

$0 $0 $0 $0 $0

Adjusted Sale Price

$363,768 $745,000 $305,280 $900,000 $788,800

Date of Sale 8/21/2017 8/27/2014 12/8/2011 7/13/2011 12/22/2010 8/21/2017

Adjustment

$0.00 $0 $0 $0 $0

Adjusted Sale Price

$363,768 $745,000 $305,280 $900,000 $788,800

Exposure Time

< 12 Months NA NA NA NA

Year Built 1960 2014 2005 2008 2003 1928

Chronological Age in Years 57 0 8 3 7 89

Value of Building & Site Improvements $363,768 $745,000 $305,280 $900,000 $788,800

GBA (SF) 14,818 SF 7,908 SF 4,292 SF 5,184 SF 8,239 SF 4,868 SF

$ Per SF GBA without the Land

$46.00 SF $173.58 SF $58.89 SF $109.24 SF $162.04 SF

Capitalization Rate

NA 8.21% NA 7.33% 7.50%

Direct Comparison

Quality of Construction Good Avg/Good Good Average Good Average

Adjustment

+ = + = +

Condition Good New/Shell Good New/Shell Good Avg/Good

Adjustment

+ = + = +

Location CBD Similar Inferior Inferior Inferior Similar

Adjustment

= + + + =

On-Site Parking 5 Spots Inferior Superior Superior Superior Inferior

Adjustment

+ - - - +

GBA (SF) 14,818 SF 7,908 SF 4,292 SF 5,184 SF 8,239 SF 4,868 SF

Adjustment

- - - - -

Value Indication ($/SF GBA without the land) $46.00 SF $173.58 SF $58.89 SF $109.24 SF $162.04 SF

Adjustments

Property Rights – The subject property would reflect fee simple estate ownership of the condominium unit. Condominium Sale 1

reflects fee simple estate with Condominium Sales 2, 3, 4, and Listing 1 reflecting leased fee interests. An adjustment for

differences between fee simple estate and leased fee interest could not be determined; no adjustments have been attempted.

Financing – All of the condominium sales were reported to be cash or cash equivalent transactions; no adjustments are warranted.

Conditions of Sale – None of the condominium sales had conditions associated with the sales that had an impact on the sales

prices; no adjustments are warranted.



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Date of Sale – This item of adjustment is for time elapsed between the date of a sale and the effective date of valuation. The sales

span a time frame from 12/22/2010 to 8/27/2014 or up to 81 months prior to the date of valuation. There is no market data

available to determine if there has been any appreciation or depreciation during that time; no adjustment has been attempted.

Quality of Construction – The subject condominium would be good quality of construction. Condominium Sales 1 and 3 and

Listing 1 are inferior with respect to quality of construction; upward adjustments are warranted. The remaining condominium

sales are similar with respect to quality of construction; no adjustments are warranted.

Condition – The subject would be in good condition. Condominium Sales 1 and 3 were shells, which inferior to the subject

property with respect to condition; upward adjustments are warranted. Listing 1 is inferior to the subject with respect to condition;

an upward adjustment is warranted. Condominium Sales 2 and 4 are similar with respect to condition; no adjustments are

warranted.

Location – The subject condominium is located in the Central Business District. Condominium Sale 2, 3 and 4 are inferior with

respect to location; upward adjustments are warranted. Condominium Sale 1 and Listing 1 are similar to the subject property with

respect to location; no adjustments are warranted.

On-Site Parking – The proposed property would own five parking spots in the basement parking garage. Condominium Sale 1 and

Listing 1 do not have parking included in the sale price and are inferior with respect to on-site parking; upward adjustments are

warranted. Condominium Sales 2, 3 and 4 are superior to the subject property with respect to on-site parking; a downward

adjustment is warranted.

GBA (SF) – Smaller facilities typically have higher square foot prices. The subject condominium would have 14,818 SF of

finished office space. All of the condominium sales are smaller than the subject property with respect to SF; downward

adjustments are warranted.

Final Correlation and Conclusion of $/SF of finished office space without the Land

The indicated range for the condominium sales and the listing is from $46.00 SF to $173.58 SF with a mean of $109.95 SF and a

median of $109.24 SF. Because two of the sales were of shell condominiums, they need to be adjusted to reflect finished office

space. Condominium Sale 1 was sold at $46.00 SF and finished at cost of $112.12 SF to bring the total to $158.12 SF.

Condominium Sale 3 was sold at $58.89 SF and has an estimated average finish cost of $60.00 SF to adjust to $118.89 SF.

The adjusted range is from $109.24 SF to $173.58 SF with a mean of $144.37 SF and a median of $158.12 SF. While

Condominium Sales 2, 3 and 4 give an indication of the value of office condominium space, they are not located in the Central

Business District and will receive little weight.



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The two downtown properties, Condominium Sale 1 and Listing 1, indicate a range from $158.12 SF to $162.04 SF with a mean

and median of $160.08 SF. When Condominium Sale 1 is adjusted for office finish, it is smaller but is inferior with respect to

quality of construction and parking. This suggests a value greater than $158.12 SF.

Listing 1 is smaller but is inferior to the subject property with respect to quality of construction, condition, and parking. This

could suggest a value greater than $162.04 SF. However, listings usually indicate the upper end of the range and are not as reliable

as closed sales.

Based on all the information available, the adjusted sale of Condominium Sale 1 is the sale most similar to the subject property. It

is the most recent sale of downtown office condominium space and was built to suit the buyer. Although Condominium Sale 1

indicates a value greater than $158.12 SF, it is not clear how much greater that value is. Emphasizing the adjusted sale of

Condominium 1, it is concluded that a value of $160.00 SF will be emphasized for the subject property’s proposed finished office

space. The value of the finished office space is calculated as follows:

14,818 SF x $160.00 = $2,370,880

Final Correlation and Conclusion of $/SF of the proposed shell office space without the Land

The subject property will have 16,158 SF of shell office space that will have HVAC and finished with drywall and temporary

lighting and electricity. Condominium Sales 1 and 3 are the only sales of shell office space that were identified. At the time of

sale, both sales were not built out to the level that the proposed shell space would be. This indicates that the value of the shell

office space is greater than $58.89 SF. It is not clear how much greater the value is. Therefore, a value of $60.00 SF will be

emphasized for the subject’s proposed shell office space. The value of the shell office space is calculated as follows:

16,158 SF x $60.00 = $969,480

The indicated value by the direct comparison method is calculated as follows:

Direct Comparison

Finished Office Space -- $160.00 SF X 14,818 SF = $2,370,880

Shell Office Space -- $60,00 SF X 16,158 SF = $969,480

Indicated Value $3,340,360

The value indication by the Sales Comparison Approach is $3,340,400 (R).



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HISTORY

The building that would house the proposed subject property was purchased in 2016 by W.C. Commercial, LLC. In August 2017,

Yellowstone County agreed to purchase the “as proposed” 3rd

-floor office condominium for $4,000,000 or the appraised market

value.

Indication of Sale –

Sale Price $4,000,000

Land Value $0

Condominium – 34,159 SF

$117.10 SF x 34,159 SF = $4,000,000 (R)

Estimated value of real property: $4,000,000

Analysis indicates that this purchase price falls above the values indicated by the Income Capitalization and Sales Comparison

approaches and is supported by the Cost Approach. This sales price appears to be high.

The appraiser is not aware of any other sale during the three years preceding the date of valuation nor of any other current option

or buy/sell agreements with respect to the subject property.

EXPOSURE TIME

Exposure time for Condominium Sale 1 was less than 12 months. Exposure times for the other properties reflected in the Sales

Comparison Approach section of this report were not available. The subject property good condition with good visibility and

access, but it has the office market has a significant amount of vacancy. Based on the reported exposure times, the supply/demand

for similar properties and the location and condition of the subject property, a reasonable exposure period assuming proper pricing

and marketing may have been at least 12 months.

Reconciliation of 70


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RECONCILIATION

The approaches to value indicated herein result in the following indications of value for the subject property:

Value Indications

Land Value

$0

Cost Approach: $4,000,000

Income Capitalization Approach

Direct Capitalization: $2,752,300 to $3,096,400

Sales Comparison Approach

Direct Comparison: $3,340,400

The reconciliation of the value indications is the final step in the appraisal process and involves weighing each valuation technique

in relation to the available market data and its reliability and applicability to the subject property.





The Cost Approach is a valid indicator of value when the improvements are new construction, are special use properties or if there

are few sales or limited lease data available. Because of the size of the proposed condominium unit and the scope of its

renovation, the subject property is a unique. A Cost Approach with the Marshall & Swift SwiftEstimator was completed. The

developer provided a building cost, but not a breakdown of costs. The value indication by the Cost Approach is considered a valid

indicator of value.

The Income Capitalization Approach is a good indicator for income producing properties. A rent survey of office and storage

space was conducted. The subject facility is vacant, so a rental rate was determined based on the results of the survey. A vacancy

rate was determined by using an NAI Business Properties survey and the vacancy rate of rent comparables. A cap rate was

determined from sales of office condominiums and the mortgage equity band of investment technique. A market value opinion

range for the subject property was reported. This approach is considered as a weak indicator of value.

The Sales Comparison Approach is a good indicator of value in an active market where there are sufficient sales transactions

available. Four sales and one listing were analyzed. The sales were then compared to the subject property with respect to quality

of construction, condition, location, on-site parking, and size. There is subjective judgment involved in determining the impact of

the various units of comparison. Condominium Sale 1 was emphasized and a market value opinion for the subject property was

reported. This approach is considered as a valid indicator of value.

Reconciliation of 70


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The Income Capitalization Approach suggests a value range between $2,752,300 and $3,096,400, the Sales Comparison Approach

suggests a value of $3,340,400, and the Cost Approach indicates a value of $4,000,000.

Concerns with the Income Capitalization Approach include determining a rental rate for the subject property, which is vacant and

is in the process of being renovated, and determining a vacancy rate. The Income Capitalization Approach is a good indicator for

income producing properties. With the amount of vacant office in Downtown Billings currently, the most-likely buyer of the

proposed property is not an investor, but rather an owner-user. Therefore the value indication by the Income Capitalization

Approach will not be emphasized.

Concerns with the Sales Comparison Approach include the subjective judgment required with respect to quantifying the impact of

the various units of comparison on the subject property, especially the contributory value of the on-site and off-site parking. Both

the finished office space and the shell space in the proposed condominium are unique properties. Although sales of shell and

office condominiums were identified, none were as large and as built-out as the proposed subject property. The most similar sale

was emphasized.

Concerns with the Cost Approach include determining the amount of depreciation to apply to the exterior wall of the building and

other common areas. Due to the high office vacancy rate in Downtown Billings, there also may be some external obsolescence

involved with an office condominium project. The amount of external obsolescence could not be quantified. The SwiftEstimator

value was higher than the developer’s cost. This may be due to the fact the SwiftEstimator values the building as new, stand-along

property instead of a renovated property. Although detailed costs were not provided to the appraiser, the developer’s cost would

be subject to the external obsolescence of building an office condominium in a soft market.

Because of the lack of comparable properties identified, the Sales Comparison Approach only gives an indication that the “as

proposed” property is worth more than $3,340,400. Because of the possible external obsolescence, the only indication the Cost

Approach gives is a value of less than $4,000,000. With no other indications to narrow the range, it is concluded that a value in

the middle of the range between $3,340,400 and $4,000,000 will be emphasized.

FEE SIMPLE ESTATE

$3,600,000 to $3,750,000

THREE MILLION SIX HUNDRED THOUSAND DOLLARS TO THREE MILLION SEVEN HUNDRED FIFTY

THOUSAND DOLLARS

Certification of Value of 70


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CERTIFICATION OF VALUE

The undersigned certifies that to the best of my knowledge and belief,

The statements of fact contained in this report are true and correct.

The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions and

are my personal, impartial, and unbiased professional analyses, opinions and conclusions.

I have no present or prospective interest in the property that is the subject of this report and I have no personal interest

with respect to the parties involved.

I have performed no appraisal services, as an appraiser or in any other capacity, regarding the property that is the subject

of this report within the three-year period immediately preceding acceptance of this assignment.

I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

My engagement in this assignment was not contingent upon developing or reporting predetermined results.

My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined

value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a

stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

My analysis, opinions and conclusions were developed and this report has been prepared in conformity with the Uniform

Standards of Professional Appraisal Practice.

I certify that to the best of my knowledge and belief, the reported analysis, opinions and conclusions were developed, and

this report has been prepared in conformity with the requirements of the Code of Professional Ethics and the Standards of

Professional Appraisal Practice of the Appraisal Institute.

I certify that the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly

authorized representatives.

As of the date of this report, I have completed the Standards and Ethics Education Requirements for Practicing Affiliates

of the Appraisal Institute.

I have made a personal inspection of the property that is the subject of this report.

No other person provided significant real property appraisal assistance to the person signing this certification.

Respectfully submitted,

Matt Bender

Certified General Real Estate Appraiser

State Of Montana License No. REA-RAG-LIC-9279

Addenda of 70


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ADDENDA

Addenda of 70

FLOOD MAP

SUBJECT PROPERTY

Addenda of 70

3RD

FLOOR PLANS

Addenda of 70

RENT COMPARABLE PICTURES

Rent Comparable 1

2702 Montana Ave.

Rent Comparable 2

175 North 27th

St.

Addenda of 70

Rent Comparable 3

401 North 31st St.

Rent Comparable 3

404-550 North 31st St.

Addenda of 70

CONDOMINIUM SALE PICTURES

Condominium Sale 1

2737 Montana Ave.

Condominium Sale 2

2820 Central Avenue

Addenda of 70

Condominium Sale 3

2047 Broadwater Avenue

Condominium Sale 4

993 South 24th

Street West

Addenda of 70

Listing 1

2702 Montana Ave.

Addenda of 70

APPRAISER’S QUALIFICATIONS

Summary of Qualifications

Matthew L. Bender

Certification

Montana Board of Real Estate Appraisers Certified General Appraiser, License No. REA-RAG-LIC-9279 awarded June 2017.

Professional Affiliations

Practicing Affiliate of Appraisal Institute

Work Experience

June 2017 to Present: Full-time independent fee appraiser doing business as Matt Bender, Real Estate Appraiser and Consultant.

March 2012 to March 2017: Appraiser Trainee working under the supervision of Mentor Appraiser George L. Simek.

February 2005 to January 2012: Assistant General Manager, Billings Mustangs Professional Baseball Club, Billings, Montana.

October 2003 to February 2005: Reporter, KTVQ-Television, Billings, Montana.

March 2003 to October 2003: Game producer for MLB.com, the official website of Major League Baseball.

August 1998 to August 2002: Sales/Customer Service for Ryan Distributing, Billings, Montana.

February 1995 to August 1998: Reporter, The Billings Gazette, Billings, Montana.

July 1993 to February 1995: Reporter, The Montana Standard, Butte, Montana.

Education

B.S. in Journalism, 1993, University of Oregon, Eugene, Oregon.

Real Estate Education

Appraisal Institute Courses –

Basic Appraisal Principles General Appraiser Sales Comparison Approach

Basic Appraisal Procedures General Appraiser Market Analysis Highest & Best Use

15-hour National USPAP Course General Appraiser Site Valuation & Cost Approach

Business Practices and Ethics General Appraiser Report Writing & Case Studies

Advanced Income Approach Real Estate Finance, Statistics & Valuation Modeling

McKissock Courses –

General Appraiser Income Approach

Property Types Appraised/Reviewed

Warehouse Retail Veterinary Clinic/Kennel

Multi-family Service Office/Shop/Warehouse

Subsidized Housing Vacant Land Office/Condominium

Professional Office Airplane Hangar Office/Retail/Strip Center

Truck Service Shop Mini-Storage Warehouse Drive-through Bank

Addenda of 70

STATE CERTIFICATION

APPRAISAL REPORT - Yellowstone County, Montana REPORT Proposed 3rd-Floor ... INTRODUCTION ... A...

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