HomeMy WebLinkAboutResolutions - 2025.01.23 - 41840AGENDA ITEM: Purchase Agreement for Vacant Land on Walton Blvd in Pontiac, Michigan
DEPARTMENT: Facilities Management
MEETING: Board of Commissioners
DATE: Thursday, January 23, 2025 6:00 PM - Click to View Agenda
ITEM SUMMARY SHEET
COMMITTEE REPORT TO BOARD
Resolution #2024-4852 _ 25-1
Motion to adopt the attached suggested resolution.
ITEM CATEGORY SPONSORED BY
Real Estate Yolanda Smith Charles
INTRODUCTION AND BACKGROUND
The Oakland County Parks and Recreation Commission (OCP) executed an Interlocal Partnership
Agreement with the City of Pontiac on June 23, 2023 to manage, maintain and improve Hawthorne
Park (now called Pontiac Oaks) in Pontiac. The term of this Agreement is 20 years with an
automatic renewal term of an additional 20 years. Pontiac Oaks is approximately 77 acres and
includes shoreline along a small lake called Creger Lake.
Parks staff has a long term plan to expand the recreation opportunities at Pontiac Oaks with addition
of other available contiguous undeveloped land parcels. Negotiations on a 17 acres parcel with road
frontage on Walton Blvd and lake frontage on Creger Lake has resulted in attached purchase
agreement. A final negotiated price of $399,510 is the amount of the cash offer. A grant application
from Ducks Unlimited for their Wetland Conservation Funding Program in the amount of $425,000,
with a $5,000 OCP match, has been approved and will help defray acquisition costs (Resolution
#2024-4670).
POLICY ANALYSIS
The purchase agreement is between Oakland County and Charlene Draine (of Pontiac) for the
purchase of 4 parcels at 615, 625, 635 and 645 W. Walton Blvd. in Pontiac, Michigan. The purchase
price is $399,510. An appraisal was conducted which determined the market value of the parcels to
be $350,000. The four contiguous parcels of land contain a total area of 17.37 acres. A significant
portion of this land area is submerged in a lake and/or comprised of regulated wetlands.
BUDGET AMENDMENT REQUIRED: No
Committee members can contact Barbara Winter, Policy and Fiscal Analysis Supervisor at
248.821.3065 or winterb@oakgov.com or the department contact persons listed for additional
information.
CONTACT
Paul Zachos, Property Management Specialist
Melissa Prowse, Manager - Parks & Recreation Planning & Development
ITEM REVIEW TRACKING
Aaron Snover, Board of Commissioners Created/Initiated - 1/23/2025
David Woodward, Board of Commissioners Approved - 1/23/2025
Walt Herzig, Executive's Office Approved - 1/24/2025
Lisa Brown, Clerk/Register of Deeds Final Approval - 1/28/2025
AGENDA DEADLINE: 01/23/2025 6:00 PM
ATTACHMENTS
1.Walton Blvd - Purchase Agreement (Signed)
2.Walton Blvd 4 Parcels - MAPS
3.Walton Blvd Parcels - Appraisal Report
COMMITTEE TRACKING
2025-01-15 Economic Development & Infrastructure - Recommend to Board
2025-01-23 Full Board - Adopt
Motioned by: Commissioner Penny Luebs
Seconded by: Commissioner Christine Long
Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen
Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia
Gershenson, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ann Erickson Gault,
Linnie Taylor, Robert Smiley (18)
No: None (0)
Abstain: None (0)
Absent: William Miller III (1)
Passed
January 23, 2025
RESOLUTION #2024-4852 _ 25-1
Sponsored By: Yolanda Smith Charles
Facilities Management - Purchase Agreement for Vacant Land on Walton Blvd in Pontiac,
Michigan
Chair and Members of the Board:
WHEREAS the Oakland County Parks and Recreation Commission (OCP) executed an Interlocal
Partnership Agreement with the City of Pontiac on June 23, 2023 to manage, maintain and improve
Hawthorne Park (now called Pontiac Oaks) in Pontiac; and
WHEREAS the term of this Agreement is 20 years with an automatic renewal term of an additional 20
years. Pontiac Oaks is approximately 77 acres and includes shoreline along Creger Lake; and
WHEREAS in an effort to expand the recreation opportunities and preserve land around Pontiac
Oaks, a 17 acre parcel with lake frontage has been identified for acquisition, and is included in the
attached map; and
WHEREAS a market value land appraisal was obtained for negotiation purposes, and was completed
by Integra Realty Resources of Detroit (IRR) with a market value conclusion of $350,000; and
WHEREAS a final negotiated price of $399,510 is the amount of the cash offer in the attached
Purchase Agreement; and
WHEREAS Oakland County Corporation Counsel, the Departments of Facilities Management and
Parks and Recreation have reviewed and approved the Purchase Agreement which will become
effective when signed by both parties; and
WHEREAS a grant application from Ducks Unlimited for their Wetland Conservation Funding
Program in the amount of $425,000, with a $5,000 OCP match, has been approved and will help
defray acquisition costs.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby
approves and authorizes the attached Purchase Agreement for vacant land parcels on Walton Blvd,
Pontiac.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners hereby directs its
Chair or their designee to execute the attached Purchase Agreement and all other related documents
between the County of Oakland and the seller Charlene Draine which may be required. The Property
Management Specialist of Oakland County Department of Facilities Management will have authority
to sign closing documents on behalf of the County at the closing.
Chair, the following Commissioners are sponsoring the foregoing Resolution: Yolanda Smith
Charles.
Date: January 23, 2025
David Woodward, Commissioner
Date: January 24, 2025
Walt Herzig, Chief Deputy County Executive
Date: January 28, 2025
Lisa Brown, County Clerk / Register of Deeds
COMMITTEE TRACKING
2025-01-15 Economic Development & Infrastructure - Recommend to Board
2025-01-23 Full Board - Adopt
Motioned by Commissioner Penny Luebs seconded by Commissioner Christine Long to approve the
attached Real Estate: Purchase Agreement for Vacant Land on Walton Blvd in Pontiac, Michigan.
Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen Nelson,
Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia
Gershenson, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ann Erickson Gault,
Linnie Taylor, Robert Smiley (18)
No: None (0)
Abstain: None (0)
Absent: William Miller III (1)
Passed
ATTACHMENTS
1.Walton Blvd - Purchase Agreement (Signed)
2.Walton Blvd 4 Parcels - MAPS
3.Walton Blvd Parcels - Appraisal Report
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true
and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on
January 23, 2025, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the Circuit Court at
Pontiac, Michigan on Thursday, January 23, 2025.
Lisa Brown, Oakland County Clerk / Register of Deeds
"The information that has been provided herewith has been compiled from recorded
deeds, plats, tax maps, surveys and public records. It is not a legally recorded map or
survey and is not intended to be used as one. Users should consult the information
sources mentioned above when questions arise."
o03,000 6,000 Feet
2023 Aerial Photo
Revision Date: 5/24/2024
Oakland County Parks and Recreation
2800 Watkins Lake Road
Waterford, MI 48328
248-858-0906
www.OaklandCountyParks.com
Chris Ward, Director
Location: K:\ParksRec\General\Natural Resources\02_Data\Working Maps and Templates\County Parks Template\County Parks Template.aprx
- Expansion Series (Watershed View) -
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1400 Telegraph Road,
Pontiac, MI 48340
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1400 Telegraph Rd
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sources mentioned above when questions arise."
Revision Date: 5/24/2024
Oakland County Parks and Recreation
2800 Watkins Lake Road
Waterford, MI
248-858-0906
www.OaklandCountyParks.com
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Revision Date: 5/24/2024
Oakland County Parks and Recreation
2800 Watkins Lake Road
Waterford, MI
248-858-0906
www.OaklandCountyParks.com
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Chris Ward, Executive Director
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Revision Date: 5/24/2024
Oakland County Parks and Recreation
2800 Watkins Lake Road
Waterford, MI
248-858-0906
www.OaklandCountyParks.com
o2023 Aerial Photo
Chris Ward, Executive Director
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Integra Realty Resources
Detroit
Appraisal of Real Property
Vacant Land
615-645 W. Walton Boulevard
Pontiac, Oakland County, Michigan 48340
Prepared For:
Oakland County Parks & Recreation
Date of the Report:
November 22, 2024
Report Format:
Appraisal Report
IRR - Detroit
File Number: 142-2024-1284
Subject Photographs
Vacant Land
615-645 W. Walton Boulevard
Pontiac, Michigan
Aerial Photograph
Integra Realty Resources 400 West Maple Road T 248.540.0040
Detroit Suite 100 F 248.540.8239
Birmingham, MI 48009-3351 www.irr.com
November 22, 2024
Oakland County Parks & Recreation
2800 Watkins Lake Road, Building #97
Waterford, MI 48328
&
Ducks Unlimited
7322 Newman Blvd., Suite 200
Dexter, MI 48130
SUBJECT: Market Value Appraisal
Vacant Land
615-645 W. Walton Boulevard
Pontiac, Oakland County, Michigan 48340
IRR - Detroit File No. 142-2024-1284
Integra Realty Resources – Detroit is pleased to submit the accompanying appraisal of the
referenced property. The purpose of the appraisal is to develop the following opinions of
value:
• The market value as is of the fee simple interest in the subject property as of the
effective date of the appraisal, October 31, 2024
The client for the assignment is Oakland County Parks & Recreation and Ducks Unlimited.
The intended users of this report are Oakland County Parks & Recreation and Ducks
Unlimited. The intended use of the report is for property acquisition purposes. No other
party or parties may use or rely on the information, opinions, and conclusions contained in
this report.
The subject relates to four parcels of land that are contiguous containing a total area of
17.37 acres. As will be summarized, a significant portion of this land area is submerged in a
lake and/or comprised of regulated wetlands. The presence of these features hinders the
development potential of the overall site.
The appraisal conforms to the Uniform Standards of Professional Appraisal Practice (USPAP),
the Code of Professional Ethics and Standards of Professional Practice of the Appraisal
November 22, 2024
Page 2
Institute, applicable state appraisal regulations and the Uniform Appraisal Standards of
Federal Land Acquisitions.
Standards Rule 2-2 (Content of a Real Property Appraisal Report) contained in the Uniform
Standards of Professional Appraisal Practice (USPAP) requires each written real property
appraisal report to be prepared as either an Appraisal Report or a Restricted Appraisal
Report. This report is prepared as an Appraisal Report as defined by USPAP under Standards
Rule 2-2(a), and incorporates practical explanation of the data, reasoning, and analysis that
were used to develop the opinion of value.
assumptions, and limiting conditions expressed in the report, the concluded opinions of
value are as follows:
Value Conclusion
Value Type & Appraisal Premise Interest Appraised Date of Value Value Conclusion
Market Value As Is Fee Simple October 31, 2024 $350,000
Extraordinary Assumptions and Hypothetical Conditions
1.None.
1.None.
The use of any extraordinary assumption or hypothetical condition may have affected the assignment results.
The value conclusions are based on the following hypothetical conditions. A hypothetical condition is 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 purpose of analysis.
The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an
assignment-specific assumption as of the effective date regarding uncertain information used in an analysis
which, if found to be false, could alter the appraiser’s opinions or conclusions.
If you have any questions or comments, please contact the undersigned. Thank you for the
opportunity to be of service.
Respectfully submitted,
Integra Realty Resources - Detroit
Constantino G. Naoum
Michigan Certified General Real Estate
Appraiser #1205068135
Telephone: 248.979.9690
Email: dnaoum@irr.com
Anthony Sanna, MAI, CRE
Michigan Certified General Real Estate
Appraiser #1205001324
Telephone: 248.979.9663
Email: asanna@irr.com
Table of Contents
Vacant Land
Quality Assurance 1
Executive Summary 2
Identification of the Appraisal Problem 3
Subject Description 3
Sale History 4
Pending Transactions 4
Appraisal Purpose 4
Value Type Definitions 4
Appraisal Premise Definitions 5
Property Rights Definitions 5
Client and Intended User(s) 5
Intended Use 5
Applicable Requirements 5
Report Format 5
Prior Services 6
Appraiser Competency 6
Scope of Work 7
Economic Analysis 9
Surrounding Area Analysis 9
Property Analysis 17
Land Description and Analysis 17
Real Estate Taxes 30
Highest and Best Use 31
Larger Parcel Analysis 34
Valuation 35
Valuation Methodology 35
Sales Comparison Approach 36
Analysis and Adjustment of Sales 39
Property Adjustments 41
Land Value Conclusion 43
Reconciliation and Conclusion of Value 44
Marketing Time 44
Certification 45
Assumptions and Limiting Conditions 47
Addenda
A. Appraiser Qualifications
B. IRR Quality Assurance Survey
C. Definitions
D. Property Information
E. Comparable Data
F. Engagement Letter
Quality Assurance 1
Vacant Land
Quality Assurance
IRR Quality Assurance Program
At IRR, delivering a quality report is a top priority. Integra has an internal Quality Assurance Program
in which managers review material and pass an exam in order to attain IRR Certified Reviewer status.
By policy, every Integra valuation assignment is assessed by an IRR Certified Reviewer who holds the
MAI designation, or is, at a minimum, a named Director with at least ten years of valuation
experience.
This quality assurance assessment consists of reading the report and providing feedback on its quality
and consistency. All feedback from the IRR Certified Reviewer is then addressed internally prior to
delivery. The intent of this internal assessment process is to maintain report quality.
Designated IRR Certified Reviewer
An internal quality assurance assessment was conducted by an IRR Certified Reviewer prior to delivery
of this appraisal report. This assessment should not be construed as an appraisal review as defined by
USPAP.
Executive Summary 2
Vacant Land
Executive Summary
Property Name
Address
Property Type
Owner of Record
Tax ID
Land Area 17.37 acres; 756,637 SF
Zoning Designation
Highest and Best Use
Exposure Time; Marketing Period 12 months; 12 months
Effective Date of the Appraisal October 31, 2024
Date of the Report November 22, 2024
Property Interest Appraised
Market Value Conclusion $350,000
The values reported above are subject to the definitions, assumptions, and limiting conditions set forth in the accompanying report of which this
summary is a part. No party other than Oakland County Parks & Recreation and Ducks Unlimited may use or rely on the information, opinions, and
conclusions contained in the report. It is assumed that the users of the report have read the entire report, including all of the definitions,
assumptions, and limiting conditions contained therein.
R-3 and C-1, Multiple Family Dwelling and Local Business
Utilization as open space as current development
potential is limited
Fee Simple
Charlene Draine
14-07-376-018, 14-07-376-017, 14-07-376-016 and 14-07-
376-015
Vacant Land
615-645 W. Walton Boulevard
Pontiac, Oakland County, Michigan 48340
Land
Extraordinary Assumptions and Hypothetical Conditions
1.None.
1.None.
The use of any extraordinary assumption or hypothetical condition may have affected the assignment results.
The value conclusions are based on the following hypothetical conditions. A hypothetical condition is 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 purpose of analysis.
The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an
assignment-specific assumption as of the effective date regarding uncertain information used in an analysis
which, if found to be false, could alter the appraiser’s opinions or conclusions.
Identification of the Appraisal Problem 3
Vacant Land
Identification of the Appraisal Problem
Subject Description
The subject relates to four parcels of land that are contiguous containing a total area of 17.37 acres.
As will be summarized, a significant portion of this land area is submerged in a lake and/or comprised
of regulated wetlands. The presence of these features hinders the development potential of the
overall site. Legal descriptions via municipal records are provided in the addenda.
Property Identification
Property Name Vacant Land
Address 615-645 W. Walton Boulevard
Pontiac, Michigan 48340
Tax ID 14-07-376-018, 14-07-376-017, 14-07-376-016 and 14-07-376-015
Owner of Record Charlene Draine
Census Tract Number 1411.00
Property Summary
Tax ID Address Acres Zoning Master Planned
14-07-376-018 615 W. Walton Blvd.4.11 R-3 Suburban Residential
14-07-376-017 625 W. Walton Blvd.2.19 R-3 Suburban Residential
14-07-376-016 635 W. Walton Blvd.3.51 R-3 Suburban Residential
14-07-376-015 645 W. Walton Blvd.7.56 C-1 Parks
Source: Municipal Records
The overall site has significant area that is submerged in Upper Silver Lake/Creger Lake or
encompassed by regulated wetlands, coupled with a significant elevation drop approaching the lake.
Based upon our onsite inspection and review of aerial photography, we measured potential buildable
land that stretches roughly 475 feet along the south side of W. Walton Boulevard, with a depth of
roughly 75 feet. This area is located along the eastern area of the overall site and is primarily found
within the parcels identified as 615 & 625 W. Walton Boulevard. This buildable area starts to narrow
significantly as one travels west towards the parcels identified as 635 & 645 W. Walton Boulevard. The
presence of the lake and wetlands hinders the development potential of the overall site.
Identification of the Appraisal Problem 4
Vacant Land
Sale History
Based on a review of municipal records, No known sales between third parties have taken place within
a three-year period prior to the effective appraisal date. It appears a transfer of ownership of the
properties did occur in 2024; however, appears to be between related entities.
Pending Transactions
The subject is listed for sale as of the effective appraisal date. The listing prices are summarized below:
Listing Date 615 W. Walton Blvd.625 W. Walton Blvd.635 W. Walton Blvd.645 W. Walton Blvd.
Original Asking Price $399,000 $149,900 $175,000 $389,000
Current Asking Price $255,000 $125,000 $155,000 $285,000
Each parcel has a separate list price with a combined total of $820,000. This total list price is
significantly higher than the market value concluded herein.
Appraisal Purpose
The purpose of the appraisal is to develop the following opinion(s) of value:
• The market value as is of the fee simple interest in the subject property as of the effective
date of the appraisal, October 31, 2024
The purpose of the Uniform Appraisal Standards for Federal Land Acquisitions (Standards) is to
promote fairness, uniformity, and efficiency in the appraisal of real property in federal acquisitions.
Just compensation must be paid for property acquired for public purposes, whether by voluntary
purchase, land exchange, or the power of eminent domain. Landowners should be treated equitably
no matter which agency is acquiring their land. The use of public funds compels efficient, cost-
effective practices.
The date of the report is November 22, 2024. The appraisal is valid only as of the stated effective date
or dates.
Value Type Definitions
The definitions of the value types applicable to this assignment are summarized below.
Market Value
Market value is the amount in cash, or on terms reasonably equivalent to cash, for which in all
probability the property would have sold on the effective date of value, after a reasonable exposure
time on the open competitive market, from a willing and reasonably knowledgeable seller to a willing
and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving
due consideration to all available economic uses of the property.1
1 Uniform Appraisal Standards for Federal Land Acquisitions, p. 10.
Identification of the Appraisal Problem 5
Vacant Land
Appraisal Premise Definitions
The definitions of the appraisal premises applicable to this assignment are specified as follows.
As Is Market Value
The estimate of the market value of real property in its current physical condition, use, and zoning as
of the appraisal date.2
Property Rights Definitions
The property rights appraised which are applicable to this assignment are defined as follows.
Fee Simple Estate
Absolute ownership unencumbered by any other interest or estate, subject only to the limitations
imposed by the governmental powers of taxation, eminent domain, police power, and escheat.3
Client and Intended User(s)
The client is Oakland County Parks & Recreation. The intended users are Oakland County Parks &
Recreation and Ducks Unlimited. No other party or parties may use or rely on the information,
opinions, and conclusions contained in this report.
Intended Use
The intended use of the appraisal is for property acquisition purposes. The appraisal is not intended
for any other use.
Applicable Requirements
This appraisal report conforms to the following requirements and regulations:
• Uniform Standards of Professional Appraisal Practice (USPAP);
• Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute;
• Applicable state appraisal regulations;
• Uniform Appraisal Standards of Federal Land Acquisitions (UASFLA).
Report Format
Standards Rule 2-2 (Content of a Real Property Appraisal Report) contained in the Uniform Standards
of Professional Appraisal Practice (USPAP) requires each written real property appraisal report to be
prepared as either an Appraisal Report or a Restricted Appraisal Report. This report is prepared as an
Appraisal Report as defined by USPAP under Standards Rule 2-2(a), and incorporates practical
explanation of the data, reasoning, and analysis used to develop the opinion of value.
2 Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022)
3 Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022)
Identification of the Appraisal Problem 6
Vacant Land
The following appraisal sets forth the most pertinent data gathered, the techniques employed and the
reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed
based on, and this report has been prepared in conformance with, our interpretation of the guidelines
and recommendations set forth in the Uniform Appraisal Standards of Federal Land Acquisitions, the
Uniform Standards of Professional Appraisal Practice (USPAP), the requirements of the Code of
Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. The
appraisal includes the real property only, excluding personal property, trade fixtures, machinery,
equipment or intangible items.
Prior Services
USPAP requires appraisers to disclose to the client any other services they have provided in
connection with the subject property in the prior three years, including valuation, consulting, property
management, brokerage, or any other services. We have performed no 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 the agreement to perform this assignment.
Appraiser Competency
No steps were necessary to meet the competency provisions established under USPAP. The
assignment participants have appraised several properties similar to the subject in physical, locational,
and economic characteristics, and are familiar with market conditions and trends; therefore, appraiser
competency provisions are satisfied for this assignment. Appraiser qualifications and state credentials
are included in the addenda of this report.
Jurisdictional Exception
No opinion of exposure time is provided within this appraisal as UASFLA standards prohibit the
reporting of exposure time.
Scope of Work 7
Vacant Land
Scope of Work
Introduction
The appraisal development and reporting processes require gathering and analyzing information
about the assignment elements necessary to properly identify the appraisal problem. The scope of
work decision includes the research and analyses necessary to develop credible assignment results,
given the intended use of the appraisal. Sufficient information includes disclosure of research and
analyses performed and might also include disclosure of research and analyses not performed.
To determine the appropriate scope of work for the assignment, the intended use of the appraisal, the
needs of the user, the complexity of the property, and other pertinent factors were considered. The
concluded scope of work is described below.
Research and Analysis
The type and extent of the research and analysis conducted are detailed in individual sections of the
report. The steps taken to verify comparable data are disclosed in the addenda of this report.
Although effort has been made to confirm the arms-length nature of each sale with a party to the
transaction, it is sometimes necessary to rely on secondary verification from sources deemed reliable.
Subject Property Data Sources
The legal and physical features of the subject property, including size of the site, flood plain data,
property zoning, existing easements and encumbrances, access and exposure, and condition of the
improvements (as applicable) were confirmed and analyzed.
Contacts
In addition to public records and other sources cited in this appraisal, information pertaining to the
subject was obtained from the following party:
Property Contacts
Contact Name Company
Paul Zachos Oakland County Facilities
Melissa Prowse Oakland County Parks
Inspection
Details regarding the property inspection conducted as part of this appraisal assignment are
summarized as follows:
Scope of Work 8
Vacant Land
Property Inspection
Party Inspection Type Inspection Date
Constantino G. Naoum On-site October 31, 2024
Anthony Sanna, MAI, CRE None N/A
Valuation Methodology
Three approaches to value are typically considered when developing a market value opinion for real
property. These are the cost approach, the sales comparison approach, and the income capitalization
approach. Use of the approaches in this assignment is summarized as follows:
Approaches to Value
Approach Applicability to Subject Use in Assignment
Cost Approach Not Applicable Not Utilized
Sales Comparison Approach Applicable Utilized
Income Capitalization Approach Not Applicable Not Utilized
In developing an opinion of value for the subject, only the sales comparison approach is used. This
approach is applicable to the subject because there is an active market for similar properties, and
sufficient sales data is available for analysis.
The cost approach is not applicable because there are no improvements that contribute value to the
property, and the income approach is not applicable because the subject is not likely to generate
rental income in its current state.
Extraordinary Assumptions and Hypothetical Conditions
Extraordinary Assumptions:
• None.
Hypothetical Conditions:
• None.
Surrounding Area Analysis 9
Vacant Land
Economic Analysis
Surrounding Area Analysis
The subject is located in the northwestern area of Pontiac. Area boundaries and delineation are
summarized below. A map identifying Pontiac and the location of the property also follows.
Boundaries & Delineation
Boundaries
Market Area Metropolitan Detroit
Area Type Suburban
Delineation
North Gallogly Road/Collier Road
South Golf Drive & East Square Lake
East South Opdyke Road
West North Telegraph Road
Surrounding Area Analysis 10
Vacant Land
Pontiac contains 20.25 square miles and is surrounded by the communities Lake Angelus and Auburn
Hills to the north, Waterford Township and Sylvan Lake to the west, Bloomfield Township and
Bloomfield Hills to the south, and Auburn Hills to the east. Pontiac is situated in the central portion of
Oakland County. The market area is located approximately 30 miles north of downtown Detroit, 50
miles northeast of Ann Arbor, and 45 miles south of Flint.
Access and Linkages
Primary access and linkages to the market area, including highways, roadways, public transit, and
airports, are summarized in the following table.
Access & Linkages
Vehicular Access
Major Highways I-75
Primary Corridors Square Lake Road, South Boulevard, Elizabeth Lake Road, Woodward Avenue,
Orchard Lake Road, Telegraph Road, and M-59
Vehicular Access Rating Average
Public Transit
Providers SMART bus (Suburban Mobility Authority for Regional Transportation)
Transit Access Rating Average
Airport(s)
Name Detroit Metropolitan Wayne County Airport (DTW)
Driving Time 40-50 Minutes
Primary Transportation Mode Automobile
Woodward Avenue that loops around Downtown is proposed to be redesigned. The Michigan
Department of Transportation is proposing that Woodward Avenue will be converted from a one-way
thoroughfare to a two-way road. The construction is expected to be completed in 2024-25. MDOT's
goal in Pontiac is to turn Woodward Avenue into a pedestrian-friendly series of two-way boulevards,
with slower traffic speeds aimed at reconnecting neighborhoods to the downtown while inviting
motorists to stop, shop and dine.
Demand Generators
The typical generators of demand affecting the Pontiac market area are discussed and analyzed below.
Employment and Employment Centers
Oakland County has a solid employment base supported by various international, national, and local
companies. Significant employment in Southeast Michigan is related to the auto industry with various
administrative, research/design, and manufacturing facilities located throughout the region. Stellantis
(formerly FCA) North American headquarters are in Auburn Hills, Ford Motor Company is
headquartered in Dearborn, and General Motors (GM) has large operations in Detroit and Warren.
The largest concentrations of office buildings and corporate facilities in SE Michigan are in Southfield,
Surrounding Area Analysis 11
Vacant Land
Troy and Detroit. Other major employers in this region include education, health care, government,
and banking
Other large employers in Pontiac include United Wholesale Mortgage (UWM) which is headquartered
in the southeastern portions of the city. Amazon also operates a 3M square foot distribution facility, in
the city, which is their largest facility in the state. This campus will also include various other
distribution, warehouse, and research & design facilities.
Pontiac also serves as the county seat. The Oakland County government campus is located along
Telegraph Road in the north end of Pontiac. This existing campus includes 45 buildings occupied by
various executive, administrative, and judicial departments, as well as the county health department,
sheriff’s department, county jail, animal control/shelter, and veteran services. Currently, some other
county offices are located in other parts of Pontiac (along Elizabeth Lake Road, east of Telegraph
Road) or the adjacent community of Waterford Township.
In August 2023, Oakland County acquired the long-vacant Phoenix Center development situated at the
south end of downtown Pontiac. Phoenix Center is currently comprised of two office towers, a multi-
story parking garage, a rooftop amphitheater with landscaped courtyard (situated above the parking
structure), and several vacant land parcels. The proposed rehabilitation includes refurbishing one of
the existing office towers and the relocation of some county offices to this new location. The county
expects to move roughly 600 employees to this new downtown campus. The total cost of this project
is estimated at $125 million and county employees will be relocated in late 2023 or early 2025.
The creation of a downtown campus for Oakland County is expected to support existing and new
businesses (restaurants, bars, stores, entertainment, and services), as well as increase the demand for
housing in and around the CBD. By razing the existing the parking garage and amphitheater, the
county intends to reconfigure roads and walkways in this neighborhood to improve traffic flow and
street level access to local businesses and residences.
The Southeast Michigan Council of Governments (SEMCOG) is projecting that employment Pontiac will
continue to growth through 2050.
Surrounding Area Analysis 12
Vacant Land
The table above indicates jobs by industry sector. The majority of residents are employed in the
financial and information activities as well as healthcare services. Pontiac is projected to have job
growth through 2050 with over 5,000 newly created jobs. The new jobs will consist of mainly
employment in the transportation and warehousing, technical and professional, healthcare sectors.
Nearby Retail Uses
Downtown Pontiac offers numerous locally owned restaurants and boutiques. Downtown has
struggled to attract and retain retail tenancy. The lack of pedestrian traffic Downtown coupled with
limited employers have contributed to the retail vacancy.
There are a number of commercial corridors near downtown. Woodward Avenue is a heavily traveled
thoroughfare wherein there are numerous retail centers situated south of Downtown. At the
intersection of Woodward Avenue and Square Lake Road is Kingswood Plaza anchored by Kroger,
Staples, and several restaurants. The Oakland Pointe Shopping Center, situated at Elizabeth Lake Road
and N. Telegraph Road is anchored by Foreman Mills, Big Lots, and Harbor Freight Tools. South along
Telegraph Road and Square Lake Road is a major retail node anchored by Costco, Dick’s Sporting
Goods, At Home, Target, and numerous restaurants.
Surrounding Area Analysis 13
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Located just north of Pontiac at southeast quadrant of Baldwin Road and I-75 is Great Lakes Crossing
in Auburn Hills. Anchor tenants include Bass Pro Shop, Coach Outlet, Nordstrom Rack, as well as a
variety of other national retailers. This development also includes a 25-screen AMC Theater, Sea Life
Aquarium, and LEGOLAND Discovery Center. Various national retailers are present in surrounding strip
centers and free-standing big box stores including Costco, Meijer’s, Best Buy, Kohl’s, Target, and
Michaels.
Population and Income
A demographic profile of the surrounding area, including population, households, and income data, is
presented in the following table.
Looking to the future, population in the city will grow at a similar rate as the county. Income levels and
average housing value in the market area are lower than Oakland County and the state of Michigan.
Life Cycle
Real estate is affected by cycles involving development trends within a market area as well as market
and economic forces. Trends in demand for development in a particular market are described by the
Market Area Life Cycle, while market and economic trends are described by the Real Estate Cycle.
Surrounding Area Demographics
2024 Estimates City of Pontiac Oakland County State of Michigan
Population 2020 61,606 1,274,395 10,077,331
Population 2024 61,381 1,275,252 10,050,893
Population 2029 61,917 1,291,202 10,122,792
Compound % Change 2020-2024 -0.1%0.0%-0.1%
Compound % Change 2024-2029 0.2%0.2%0.1%
Households 2020 23,993 524,047 4,041,760
Households 2024 23,966 527,556 4,059,000
Households 2029 24,223 536,827 4,108,148
Compound % Change 2020-2024 0.0%0.2%0.1%
Compound % Change 2024-2029 0.2%0.3%0.2%
Median Household Income 2024 $40,138 $91,936 $68,473
Average Household Size 2.5 2.4 2.4
College Graduate %15%50%31%
Median Age 35 42 41
Owner Occupied %42%70%71%
Renter Occupied %58%30%29%
Median Owner Occupied Housing Value $97,408 $332,751 $223,815
Median Year Structure Built 1958 1975 1972
Average Travel Time to Work in Minutes 24 28 26
Source: Claritas
Surrounding Area Analysis 14
Vacant Land
A Market Area Life Cycle typically evolves through four stages:4
• Growth – a period during which the market area gains public favor and acceptance
• Stability – a period of equilibrium without marked gains or losses
• Decline – a period of diminishing demand
• Revitalization – a period of renewal, redevelopment, modernization, and increasing demand
The market area is in the stability stage of the Market Area Life Cycle.
The Real Estate Cycle also impacts a neighborhood. The stages of the Real Estate Cycle include:
• Expansion – Sustained growth in demand, increasing construction
• Hypersupply – Positive but falling demand, increasing vacancy
• Recession – Falling demand, increasing vacancy
• Recovery – Increasing demand, decreasing vacancy
These stages are illustrated below, along with a summary of common characteristics of each stage of
the Real Estate Cycle. The market area is in the hypersupply stage of the Real Estate Cycle.
4 Appraisal Institute, The Appraisal of Real Estate, 15th ed. (Chicago: Appraisal Institute, 2020)
Surrounding Area Analysis 15
Vacant Land
Services and Amenities
The nearest public services, including police and fire departments, as well as public schools are
summarized in the following table.
Public Services
Service
Police Department Oakland County Sheriff
Fire Department Pontiac
Hospital Pontiac General Hospital, St. Joesph Mercy Oakland, and McLaren
Oakland
School District(s)Pontiac City School District
Nearby colleges include Oakland University in Auburn Hills and Rochester College in Rochester Hills.
Oakland Community College operates several campuses include one in Auburn Hills and one in
Waterford Township. Various private, parochial, specialty and trade schools are present in this area.
Land Use
Adjacent land uses are summarized as follows:
Immediate Surroundings
North Senior Housing
South Municipal Park
East Church
West Residential
Outlook and Conclusions
The area is in the stability stage of its life cycle. This market area is adequately developed with
housing, stores, services, schools, health care, and other public amenities. The freeway network
provides residents with access to employment, services and shopping located in other parts of the
market. Given the history of the area and active development noted nearby, it is anticipated that
property values will likely increase modestly in the near future.
Surrounding Area Analysis 16
Vacant Land
Surrounding Area Map
Land Description and Analysis 17
Vacant Land
Property Analysis
Land Description and Analysis
Location
The property is located on the south side of W. Walton Boulevard, west of Telegraph Road and east of
Silver Lake Road.
Land Area
The following table summarizes the subject’s land area.
Land Area Summary
Tax ID Address SF Acres
14-07-376-018 615 W. Walton Blvd.179,032 4.11
14-07-376-017 625 W. Walton Blvd.95,396 2.19
14-07-376-016 635 W. Walton Blvd.152,896 3.51
14-07-376-015 645 W. Walton Blvd.329,314 7.56
Total 756,637 17.37
Source: Public Records
Shape and Dimensions
The site is irregular in shape, with any buildable areas having a very irregular configuration . Site utility
based on shape and dimensions is poor.
Topography
Some areas towards the main road frontage has a level topography; however, the topography drops
significantly as you proceed to the south towards Upper Silver Lake/Creger Lake. The’s subject’s
topography results in development limitations of the overall site and as a result yields most acreage
unusable.
Drainage
No particular drainage problems were observed or disclosed at the time of field inspection. This
appraisal assumes that surface water collection, both on-site and in public streets adjacent to the
subject, is adequate.
Land Description and Analysis 18
Vacant Land
Flood Hazard Status
The following table indicates applicable flood hazard information for the subject property, as
determined by review of available flood maps obtained from the Federal Emergency Management
Agency (FEMA).
`Flood Hazard Status
Community Panel Number 26125C0362F
Date September 29, 2006
Zone AE
Description Within 100-year floodplain
Insurance Required?Yes
Environmental Hazards
An environmental assessment report was not provided for review, and during the inspection, no
obvious signs of contamination on or near the subject were observed. However, environmental issues
are beyond the scope of expertise of the assignment participants. It is assumed the property is not
adversely affected by environmental hazards.
Ground Stability
A soils report was not provided for review. It is unknow the ground stability of the subject due to the
presence of regulated wetlands and topography drop of the site. Soils analyses are beyond the scope
of expertise of the assignment participants. It is assumed the soil bearing capacity is sufficient to
support a variety of uses, including those permitted by zoning, as it relates to aby buildable areas of
the subject.
Streets, Access and Frontage
Details pertaining to street access and frontage are provided in the following table.
Streets, Access and Frontage
Street Walton Blvd.
Frontage Feet 1,177
Land Description and Analysis 19
Vacant Land
Utilities
Utilities available to the subject are summarized below.
Utilities
Service Provider
Water Municipal
Sewer Municipal
Electricity DTE Energy
Natural Gas Consumers Energy
Local Phone Various
Zoning
Parcels #14-07-376-016, -017, and -018 are zoned R-3, Multiple Family Dwelling. Parcel #14-07-376-
015, which contains a gross acreage of 7.56 acres, Is zoned C-1, Local Business. A zoning map can be
found on a following page for reference with the following table summarizing applicable zoning
requirements affecting the subject.
Zoning Summary
Zoning Jurisdiction City of Pontiac
Zoning Designation R-3 and C-1
Description Multiple Family Dwelling and Local Business
Legally Conforming?Appears to be legally conforming
Zoning Change Likely?No
Permitted Uses R-3: One family dwelling unit, multiple family, townhouses, two
family dwelling unit, park or recreation facility. C:1 Mixed use
building, bank, tavern, bakery, service business
Master Plan
A master plan map can be found on a following page for reference. In summary, Parcels #14-07-376-
016, -017, and -018 are master planned for “Suburban Residential”, which would relate to the R-1B
zoning requirements per the master plan. Based on a review of the Pontiac Zoning Ordinance, the R-
1B district requires a minimum lot area of 16,000 SF, a minimum lot width of 100 feet, front setback of
25 feet, with a rear setback of 30 feet. These setback requirements would hinder the development
potential of Parcels 14-07-376-016, -017, and -018.
Parcel #14-07-376-015 is master planned for “Parks”. Based on a review of the master plan, “These
areas are not intended for intense development and require the strictest limitation of impervious
surface and the most innovative storm water detention/treatment requirements. All of these areas
require a buffer of at least 50 feet around any area identified on the Michigan Natural Features
Inventory Map.” The only allowable building improvements would relate to one-story recreational
buildings only.
Land Description and Analysis 20
Vacant Land
Other Land Use Regulations
There are no other known land use regulations that would affect the property.
Easements, Encroachments and Restrictions
A current title report was not provided for review. There are no apparent easements, encroachments,
or restrictions that would adversely affect value. This valuation assumes no adverse impacts from
easements, encroachments, or restrictions, and further assumes that the subject has clear and
marketable title.
Conclusion of Site Analysis
Overall, the overall site has limited amount of usable land that can be developed, which is further
hampered by setback requirements due to the presence of regulated wetlands and/or areas with a
flood plain. Due to the aforementioned, development potential of the overall site is severely hindered.
Land Description and Analysis 21
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Subject Photographs Overview
On the following pages are the photographs of the subject property taken at the property inspection.
The below aerial provides a summary where each photo was generally taken from.
North
Land Description and Analysis 22
Vacant Land
Subject west from eastern area of overall site
Photo taken by C. Naoum on 10/31/24
Subject south from central area of overall site
Photo taken by C. Naoum on 10/31/24
Subject south from central area of overall site
Photo taken by C. Naoum on 10/31/24
Subject southerly from western area of overall site
Photo taken by C. Naoum on 10/31/24
View looking northerly from adjacent Pontiac Oaks Park
Photo taken by C. Naoum on 10/31/24
Walton Boulevard looking west
Photo taken by C. Naoum on 10/31/24
Land Description and Analysis 23
Vacant Land
Aerial Plat Map
Land Description and Analysis 24
Vacant Land
Land Sketch
Land Description and Analysis 25
Vacant Land
Wetland Map
Land Description and Analysis 26
Vacant Land
Flood Hazard Map
Land Description and Analysis 27
Vacant Land
Zoning Map
Source: City of Pontiac
Land Description and Analysis 28
Vacant Land
Master Plan Map
Source: City of Pontiac
Land Description and Analysis 29
Vacant Land
Real Estate Taxes 30
Vacant Land
Real Estate Taxes
In the State of Michigan, the following three assessed values are carried on the tax roll for any
property:
• State Equalized Value (SEV)
• Capped Value (CV)
• Taxable Value (TV)
The TV is established as the lower of the SEV and CV. The SEV, which is often referred to as the
assessed value, is established for property tax purposes and is theoretically equal to 50% of the local
assessor’s opinion of market value or true cash value (TCV). The SEV for any given year is set as of
December 31 of the preceding year and is to be similar to assessments for similar property. The CV
results from a constitutional provision for a cap on assessment increases. The increase is limited the
rate of inflation in any year (based on the Consumer Price Index) or an overall constitutional limit of
5% per year, whichever limitation results in the lowest assessment. This limitation continues until a
property is sold or transferred as defined by assessment regulations whereupon the cap provision is
suspended.
A total millage rate is applied to taxable value resulting in the annual tax burden for a property.
Municipalities and counties are given the authority to levy property taxes at varying levels as well as
there being a provision for a state-levied property tax for education purposes. Local school districts
have the authority to levy, after voter approval, a non-homestead tax of up to an additional 18 mills
and, in limited instances, an enhancement tax. The tax rate indicated in the following table is a
summation of the levies of the various taxing bodies.
Real estate taxes and assessments, as summarized in the following table.
Taxes and Assessments - 2024
Assessed Value Taxes and Assessments
Tax ID Adress
True Cash Value
(TCV)
Assessed Value
(SEV)
Capped /
Taxable Value Tax Rate
Capped
Taxes
Uncapped
Taxes
14-07-376-018 615 W. Walton Blvd.$27,000 $13,500 $9,070 5.617440%$510 $758
14-07-376-017 625 W. Walton Blvd.$13,680 $6,840 $4,570 5.617440%$257 $384
14-07-376-016 635 W. Walton Blvd.$20,300 $10,150 $6,800 5.617440%$382 $570
14-07-376-015 645 W. Walton Blvd.$32,040 $16,020 $10,750 5.617440%$604 $900
$93,020 $46,510 $31,190 $1,752 $2,613
Based on the concluded market value of the subject, the assessed value appears low.
Highest and Best Use 31
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Highest and Best Use
The highest and best use of a property is the reasonably probable use resulting in the highest value,
and represents the use of an asset that maximizes its productivity.
Process
Before a property can be valued, an opinion of highest and best use must be developed for the subject
site, both as though vacant, and as improved or proposed. By definition, the highest and best use
must be:
• Physically possible.
• Legally permissible under the zoning regulations and other restrictions that apply to the site.
• Financially feasible.
• Maximally productive, i.e., capable of producing the highest value from among the
permissible, possible, and financially feasible uses.
The following aerial plat map is referenced in our discussion.
Highest and Best Use 32
Vacant Land
As Though Vacant
First, the property is evaluated as though vacant, with no improvements.
Physically Possible
The overall site has significant area that is submerged in Upper Silver Lake/Creger Lake or
encompassed by regulated wetlands, coupled with a significant elevation drop approaching the lake.
Based upon our onsite inspection and review of aerial photography, we measured potential buildable
land that stretches roughly 475 feet along the south side of W. Walton Boulevard, with a depth of
roughly 75 feet. This area is located along the eastern area of the overall site and is primarily found
within the parcels identified as 615 & 625 W. Walton Boulevard. This buildable area starts to narrow
significantly as one travels west towards the parcels identified as 635 & 645 W. Walton Boulevard. The
presence of the lake and wetlands hinders the development potential of the overall site.
Legally Permissible
The subject is zoned both R-3, Multiple Family Dwelling and C-1, Local Business. Permitted uses for
both districts can be found in an earlier section of this report.
As previously discussed, Parcels #14-07-376-016, -017, and -018 are master planned for “Suburban
Residential”, which would relate to the R-1B zoning district per the master plan. Based on a review of
the Pontiac Zoning Ordinance, the R-1B district requires a minimum lot area of 16,000 SF, a minimum
lot width of 100 feet, front setback of 25 feet, with a rear setback of 30 feet. These setback
requirements would hinder the development potential of Parcels 14-07-376-016, -017, and -018.
Parcel #14-07-376-015 is master planned for “Parks”. Based on a review of the master plan, “These
areas are not intended for intense development and require the strictest limitation of impervious
surface and the most innovative storm water detention/treatment requirements. All of these areas
require a buffer of at least 50 feet around any area identified on the Michigan Natural Features
Inventory Map.” The only allowable building improvements would relate to one-story recreational
buildings only.
Given the previous discussions, only uses allowed by the current master plan is given further
consideration in determining highest and best use of the site.
Financially Feasible
Based upon the presence of the lake, regulated wetlands, topography challenges, and setback
requirements, the development of a single-family residences(s) is not considered feasible and
unknown if such a construction scenario would be feasible in the foreseeable future.
Maximally Productive
The marketability of the property is impacted negatively as any informed buyer would consider the
lack of development potential of the overall site. Due to the uncertainty created by the presence of
the lake and regulated wetlands, the maximally productive use of the property would be its current
state, i.e. open space.
Highest and Best Use 33
Vacant Land
Conclusion
The utilization as open space is concluded to be the highest and best use of the property.
As Improved
No improvements are situated on the subject. Therefore, a highest and best analysis as improved is
not applicable.
Most Probable Buyer
The most probable buyer is a speculator, or an adjacent landowner, or a private or public agency to
keep the site as open space.
Larger Parcel Analysis 34
Vacant Land
Larger Parcel Analysis
The subject parcels are illustrated in the following aerial.
The three tests for the Larger Parcel include contiguity (or proximity), unity of ownership, and unity of
Highest and Best Use.
• Contiguity – The individual parcels that encompass the overall site are contiguous.
• Unity of Ownership – The individual parcels that encompass the overall site are owned by the
same entity.
• Unity of Highest and Best Use – The highest and best use for the overall site is for the
utilization as open space.
Based on the aforementioned, the subject is viewed as one overall site and valued as such.
Valuation Methodology 35
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Valuation
Valuation Methodology
Appraisers usually consider three approaches to estimating the market value of real property. These
are the cost approach, sales comparison approach and the income capitalization approach.
The cost approach assumes that the informed purchaser would pay no more than the cost of
producing a substitute property with the same utility. This approach is particularly applicable when
the improvements being appraised 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 is little or no sales
data from comparable properties.
The sales comparison approach assumes that an informed purchaser would pay no more for a
property than the cost of acquiring another existing property with the same utility. This approach is
especially appropriate when an active market provides sufficient reliable data. The sales comparison
approach is less reliable in an inactive market or when estimating the value of properties for which no
directly comparable sales data is available. The sales comparison approach is often relied upon for
owner-user properties and vacant land.
The income capitalization approach reflects the market’s perception of a relationship between a
property’s potential income and its market value. This approach converts the anticipated net income
from ownership of a property into a value indication through capitalization. The primary methods are
direct capitalization and discounted cash flow analysis, with one or both methods applied, as
appropriate. This approach is widely used in appraising income-producing properties.
Reconciliation of the various indications into a conclusion of value is based on an evaluation of the
quantity and quality of available data in each approach and the applicability of each approach to the
property type.
The methodology employed in this assignment is summarized as follows:
Approaches to Value
Approach Applicability to Subject Use in Assignment
Cost Approach Not Applicable Not Utilized
Sales Comparison Approach Applicable Utilized
Income Capitalization Approach Not Applicable Not Utilized
Sales Comparison Approach 36
Vacant Land
Sales Comparison Approach
To develop an opinion of the subject’s land value, as though vacant and available to be developed to
its highest and best use, the sales comparison approach is used. This approach develops an indication
of value by researching, verifying, and analyzing sales of similar properties.
For this analysis, price per acre is used as the appropriate unit of comparison because market
participants typically compare sale prices and property values on this basis. The most relevant sales
are summarized in the following table:
Summary of Comparable Land Sales
No.Name/Address
Sale Date;
Status
Effective Sale
Price
SF;
Acres Zoning $/Acre
1 Vacant Land Jun-24 $260,000 1,011,463 R-1D $11,197
John R Rd. Closed 23.22
Troy
Oakland County
2 Vacant Land Aug-22 $140,000 1,241,721 R1A $4,911
Greenwood Dr. Closed 28.51
Chesterfield Township
Macomb County
3 Vacant Land Dec-21 $285,000 1,425,719 R-1-A $8,708
33210 Hooker Rd. Closed 32.73
Chesterfield Township
Macomb County
4 Stanley Park Dec-19 $1,800,000 2,613,600 R-1B $30,000
10785 Elizabeth Lake Rd. Closed 60.00
White Lake Township
Oakland County
Subject 756,637 Residential &
Vacant Land 17.37 Parks
Pontiac, MI (master planned)
Complete writeups with additional information of each of the previous sales are found in the
addendum for review.
Sales Comparison Approach 37
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Comparable Land Sales Map
North
Sales Comparison Approach 38
Vacant Land
Sale 1
Vacant Land
Sale 2
Vacant Land
Sale 3
Vacant Land
Sale 4
Stanley Park
Sales Comparison Approach 39
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Analysis and Adjustment of Sales
Adjustments are based on a rating of each comparable sale in relation to the subject. The adjustment
process is typically applied through either quantitative or qualitative analysis, or a combination of
both analyses. Quantitative adjustments are often developed as dollar or percentage amounts, and
are most credible when there is sufficient data to perform a paired sales analysis.
While percentage adjustments are presented in the adjustment grid, they are based on qualitative
judgment rather than empirical research, as there is not sufficient data to develop a sound
quantitative estimate. Although the adjustments appear to be mathematically precise, they are
merely intended to illustrate an opinion of typical market activity and perception. With the exception
of market conditions, the adjustments are based on a scale, with a minor adjustment in the range of 1-
5% and a substantial adjustment considered to be 20% or greater.
The rating of each comparable sale in relation to the subject is the basis for the adjustments. If the
comparable is superior to the subject, its sale price is adjusted downward to reflect the subject’s
relative attributes; if the comparable is inferior, its price is adjusted upward.
Transactional adjustments are applied for property rights conveyed, financing, conditions of sale,
expenditures made immediately after purchase, and market conditions. In addition, property
adjustments include – but are not limited to – location, access/exposure, size, quality, effective age,
economic and legal characteristics, and non-realty components of value. Adjustments are considered
for the following factors, in the sequence shown below.
Transactional Adjustments
Real Property Rights Conveyed
The opinion of value in this report is based on a fee simple estate, subject only to the limitations
imposed by the governmental powers of taxation, eminent domain, police power and escheat, as well
as non-detrimental easements, community facility districts, and conditions, covenants and restrictions
(CC&Rs). All the comparables represent fee simple estate transactions. Therefore, adjustments for
property rights are not necessary.
Financing Terms
In analyzing the comparables, it is necessary to adjust for financing terms that differ from market
terms. Typically, if the buyer retained third-party financing (other than the seller) for the purpose of
purchasing the property, a cash price is presumed and no adjustment is required. However, in
instances where the seller provides financing as a debt instrument, a premium may have been paid by
the buyer for below-market financing terms, or a discount may have been demanded by the buyer if
the financing terms were above market. The premium or discounted price must then be adjusted to a
cash equivalent basis. The comparable sales represented cash-to-seller transactions and, therefore, do
not require adjustment.
Sales Comparison Approach 40
Vacant Land
Conditions of Sale
Adverse conditions of sale can account for a significant discrepancy from the sale price actually paid,
compared to that of the market. This discrepancy in price is generally attributed to the motivations of
the buyer and the seller. Certain conditions of sale are considered non-market and may include the
following:
• a seller acting under duress (e.g., eminent domain, foreclosure);
• buyer motivation (e.g., premium paid for assemblage, certain 1031 exchanges);
• a lack of exposure to the open market;
• an unusual tax consideration;
• a sale at legal auction.
Sale 1 was adjusted downward due to being purchased by a motivated buyer as the property was
purchased by the adjacent property owner. None of the other comparable sales had atypical or
unusual conditions of sale. Thus, adjustments are not necessary.
Market Conditions
A market conditions adjustment is applied when market conditions at the time of sale differ from
market conditions as of the effective date of value. Adjustments can be positive when prices are rising,
or negative when markets are challenged by factors such as a deterioration of the economy or adverse
changes in supply and/or demand in the market area. Consideration must also be given to when the
property was placed under contract, versus when the sale actually closed.
In evaluating market conditions, changes between the comparable sale date and the effective date of
this appraisal may warrant adjustment; however, if market conditions have not changed, then no
adjustment is required.
The sales are adjusted 3% per year until September 1, 2022, with no adjustment applied after this date
until the effective date of value, which is summarized in the following table.
Market Conditions Adjustment
Comp #1 2 3 4
Sale Date 6/1/2024 8/22/2022 12/13/2021 12/12/2019
Date Annual Growth
9/1/2022 3%0.00%0.08%2.15%8.17%
10/31/2024 0%0.00%0.00%0.00%0.00%
Total 0.00%0.08%2.15%8.17%
Rounded 0%0%2%8%
Sales Comparison Approach 41
Vacant Land
Property Adjustments
Location
Factors considered in evaluating location include, but are not limited to, demographics, growth rates,
surrounding uses and property values.
Sales 2 and 3 are similar to the subject. No adjustments are necessary. Sales 1 and 4 are adjusted
downward for superior location.
Access/Exposure
Convenience to transportation facilities, ease of site access, and overall visibility of a property can
have a direct impact on property value. High visibility, however, may not translate into higher value if
it is not accompanied by good access. In general, high visibility and convenient access, including
proximity to major linkages, are considered positive amenities when compared to properties with
inferior attributes.
Sales 1, 3 and 4 are similar to the subject and require no adjustment. Sale 2 is inferior to the subject.
An upward adjustment is applied.
Size
Due to economies of scale, the market exhibits an inverse relationship between land area and price
per square foot, such that larger sites generally sell for a lower price per square foot than smaller lots,
all else being equal. To account for this relationship, applicable adjustments are applied for
differences in land area. The comparables that are larger than the subject are adjusted upward, and
vice versa.
Sales 1, 2 and 3 are similar to the subject and require no adjustment. Sale 4 is larger than the subject
and requires an upward adjustment.
Shape and Topography
This category accounts for the shape of the site influencing its overall utility and/or development
potential, as well as the grade of the land.
Sales 1, 2 and 4 are similar to the subject and require no adjustment. Sale 3 is inferior to the subject.
An upward adjustment is applied.
Sales Comparison Approach 42
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Adjustments Summary
The sales are compared to the subject and adjusted to account for material differences that affect
value. The following table summarizes the adjustments applied to each sale.
Land Sales Adjustment Grid
Subject Comparable 1 Comparable 2 Comparable 3 Comparable 4
Name Vacant Land Vacant Land Vacant Land Vacant Land Stanley Park
Address Walton Blvd.John R Rd. Greenwood Dr. 33210 Hooker Rd. 10785 Elizabeth
Lake Rd.
City Pontiac Troy Chesterfield
Township
Chesterfield
Township
White Lake
Township
County Oakland Oakland Macomb Macomb Oakland
State Michigan MI MI MI MI
Sale Date Jun-24 Aug-22 Dec-21 Dec-19
Sale Status Closed Closed Closed Closed
Effective Sale Price $260,000 $140,000 $285,000 $1,800,000
Square Feet 756,637 1,011,463 1,241,721 1,425,719 2,613,600
Acres 17.37 23.22 28.51 32.73 60.00
Price per Acre $11,197 $4,911 $8,708 $30,000
Transactional Adjustments
Property Rights Fee Simple Fee Simple Fee Simple Fee Simple
% Adjustment ––––
Financing Terms Cash to seller Cash to seller Cash to seller Cash to seller
% Adjustment ––––
Conditions of Sale Motivated Buyer Arm's-length Arm's-length Arm's-length
% Adjustment -5%–––
Market Conditions 10/31/2024 Jun-24 Aug-22 Dec-21 Dec-19
Annual % Adjustment Variable ––2%8%
Cumulative Adjusted Price $10,637 $4,911 $8,882 $32,400
Property Adjustments
Location -10%––-5%
Access/Exposure –10%––
Size –––5%
Shape and Topography ––10%–
Net Property Adjustments ($)-$1,064 $491 $888 $0
Net Property Adjustments (%)-10%10%10%0%
Final Adjusted Price $9,574 $5,402 $9,770 $32,400
Range of Adjusted Prices $5,402 - $32,400
Average $14,286
Indicated Value $20,000
Sales Comparison Approach 43
Vacant Land
Land Value Conclusion
Prior to adjustments, the sales reflect a range of $4,911 - $30,000 per acre. After adjustment, the
range is $5,402 - $32,400 per acre, with an average of $14,286 per acre.
The following summaries the sales/listing utilized in our analysis:
• Sale 1 - The buyer was an adjacent homeowner who wants to conserve the land as open
space. The majority of the site is covered by regulated wetlands, which encompasses the
entire road frontage along John R Road. The property was marketed as having 4-5 acres of
buildable area, roughly 750-800 feet inwards from John R Road. The overall site had significant
development challenges.
• Sale 2 – The sale of 28.51 acres of land. The property contains a buildable lot withing a platted
subdivision. This lot measures roughly half an acre. The remaining 28 acres are regulated
wetlands per the listing agent.
• Sale 3 – The sale of 32.73 acres. The property was purchased by Chesterfield Township to be
part of their park system. The property at one point was proposed to contain a residential
subdivision, which never was developed. Large portions of the site appear to be in a flood
zone. It is unclear how many buildable acres the site contains.
• Sale 4: The sale of 60.00 acres. This property was purchased by White Lake Township for a
municipal park with the township securing grant money of 74% of the purchase price, which
most likely impacted what the township was willing to pay for the property. Additionally, this
property has significant upland areas that can be utilized in any development scenario,
considered a premium versus the subject and other sales. Due to the aforementioned, this
sale is given secondary weight.
Overall, the subject has limited amount of usable land that can be developed, which is further
hampered by setback requirements due to the presence of regulated wetlands and/or areas with a
flood plain. Due to the aforementioned, development potential of the overall site is severely hindered.
Based on the preceding analysis, the land value conclusion for the subject is presented as follows:
Land Value Conclusion
Indicated Value per Acre $20,000
Subject Acres 17.37
Indicated Value $347,400
Rounded $350,000
Reconciliation and Conclusion of Value 44
Vacant Land
Reconciliation and Conclusion of Value
As discussed previously, only the sales comparison approach is used to develop an opinion of value for
the subject. The cost and income approaches are not applicable, and are not used.
Based on the preceding valuation analysis and subject to the definitions, assumptions, and limiting
conditions expressed in the report, the concluded opinion of value is as follows:
Value Conclusion
Value Type & Appraisal Premise Interest Appraised Date of Value Value Conclusion
Market Value As Is Fee Simple October 31, 2024 $350,000
Extraordinary Assumptions and Hypothetical Conditions
1.None.
1.None.
The use of any extraordinary assumption or hypothetical condition may have affected the assignment results.
The value conclusions are based on the following hypothetical conditions. A hypothetical condition is 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 purpose of analysis.
The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an
assignment-specific assumption as of the effective date regarding uncertain information used in an analysis
which, if found to be false, could alter the appraiser’s opinions or conclusions.
Marketing Time
Marketing time is an estimate of the amount of time it might take to sell a property at the concluded
market value immediately following the effective date of value. Accordingly, the subject’s marketing
period is estimated at 12 months.
Certification 45
Vacant Land
Certification
We certify that, to the best of our knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and are our personal, impartial, and unbiased
professional analyses, opinions, and conclusions.
3. We have no present or prospective interest in the property that is the subject of this report
and no personal interest with respect to the parties involved.
4. We have performed no 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
the agreement to perform this assignment.
5. The appraisal was made and the appraisal report prepared in conformity with the Uniform
Standards for Federal Land Acquisitions.
6. The appraisal was developed and the appraisal report prepared in conformance with the
Appraisal Standards Board’s Uniform Standards of Professional Appraisal Practice and
complies with USPAP’s Jurisdictional Exception Rule, when invoked by section 1.2.7.2 of the
Uniform Standards for Federal Land Acquisitions.
7. We have no bias with respect to the property that is the subject of this report or to the parties
involved with this assignment.
8. Our engagement in this assignment was not contingent upon developing or reporting
predetermined results.
9. Our compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value that favors the cause of the client, the
amount of the value opinion, the attainment of a stipulated result, or the occurrence of a
subsequent event directly related to the intended use of this appraisal.
10. Our analyses, opinions, and conclusions were developed, and this report has been prepared,
in conformity with the Uniform Standards of Professional Appraisal Practice as well as
applicable state appraisal regulations.
11. The reported analyses, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the requirements of the Code of Professional Ethics and
Standards of Professional Appraisal Practice of the Appraisal Institute.
12. The use of this report is subject to the requirements of the Appraisal Institute relating to
review by its duly authorized representatives.
13. Constantino G. Naoum has made a personal inspection of the property that is the subject of
this report. Anthony Sanna, MAI, CRE has not personally inspected the subject.
Certification 46
Vacant Land
14. The appraiser has made a physical inspection of the property appraised and that the property
owner, or his designated representative, was given the opportunity to accompany the
appraiser on the property inspection.
15. No one provided significant real property appraisal assistance to the persons signing this
certification.
16. We have experience in appraising properties similar to the subject and are in compliance with
the Competency Rule of USPAP.
17. As of the date of this report, Anthony Sanna, MAI, CRE has completed the continuing
education program for Designated Members of the Appraisal Institute.
18. In Michigan, appraisers are required to be licensed/certified and are regulated by the
Michigan Department of Licensing and Regulatory Affairs, 611 West Ottawa, P. O. Box 30018,
Lansing, Michigan, 48909.
19. We made contact with Paul Zachos, property manager for Oakland County Facilities, who
accompanied Constantino Naoum on the property inspection.
Constantino G. Naoum
Michigan Certified General Real Estate Appraiser
#1205068135
Anthony Sanna, MAI, CRE
Michigan Certified General Real Estate Appraiser
#1205001324
Reconciliation and Conclusion of Value 47
Vacant Land
Assumptions and Limiting Conditions
This appraisal and any other work product related to this engagement are limited by the following
standard assumptions, except as otherwise noted in the report:
1. The title is marketable and free and clear of all liens, encumbrances, encroachments,
easements and restrictions. The property is under responsible ownership and competent
management and is available for its highest and best use.
2. There are no existing judgments or pending or threatened litigation that could affect the value
of the property.
3. There are no hidden or undisclosed conditions of the land or of the improvements that would
render the property more or less valuable. Furthermore, there is no asbestos in the property.
4. The property is in compliance with all applicable building, environmental, zoning, and other
federal, state and local laws, regulations and codes.
5. The information furnished by others is believed to be reliable, but no warranty is given for its
accuracy.
This appraisal and any other work product related to this engagement are subject to the following
limiting conditions, except as otherwise noted in the report:
1. An appraisal is inherently subjective and represents our opinion as to the value of the
property appraised.
2. The conclusions stated in our appraisal apply only as of the effective date of the appraisal, and
no representation is made as to the effect of subsequent events.
3. No changes in any federal, state or local laws, regulations or codes (including, without
limitation, the Internal Revenue Code) are anticipated.
4. No environmental impact studies were either requested or made in conjunction with this
appraisal, and we reserve the right to revise or rescind any of the value opinions based upon
any subsequent environmental impact studies. If any environmental impact statement is
required by law, the appraisal assumes that such statement will be favorable and will be
approved by the appropriate regulatory bodies.
5. Unless otherwise agreed to in writing, we are not required to give testimony, respond to any
subpoena or attend any court, governmental or other hearing with reference to the property
without compensation relative to such additional employment.
6. We have made no survey of the property and assume no responsibility in connection with
such matters. Any sketch or survey of the property included in this report is for illustrative
purposes only and should not be considered to be scaled accurately for size. The appraisal
covers the property as described in this report, and the areas and dimensions set forth are
assumed to be correct.
Reconciliation and Conclusion of Value 48
Vacant Land
7. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and we
have assumed that the property is not subject to surface entry for the exploration or removal
of such materials, unless otherwise noted in our appraisal.
8. We accept no responsibility for considerations requiring expertise in other fields. Such
considerations include, but are not limited to, legal descriptions and other legal matters such
as legal title, geologic considerations such as soils and seismic stability; and civil, mechanical,
electrical, structural and other engineering and environmental matters. Such considerations
may also include determinations of compliance with zoning and other federal, state, and local
laws, regulations and codes.
9. The distribution of the total valuation in the report between land and improvements applies
only under the reported highest and best use of the property. The allocations of value for land
and improvements must not be used in conjunction with any other appraisal and are invalid if
so used. The appraisal report shall be considered only in its entirety. No part of the appraisal
report shall be utilized separately or out of context.
10. Neither all nor any part of the contents of this report (especially any conclusions as to value,
the identity of the appraisers, or any reference to the Appraisal Institute) shall be
disseminated through advertising media, public relations media, news media or any other
means of communication (including without limitation prospectuses, private offering
memoranda and other offering material provided to prospective investors) without the prior
written consent of the persons signing the report.
11. Information, estimates and opinions contained in the report and obtained from third-party
sources are assumed to be reliable and have not been independently verified.
12. Any income and expense estimates contained in the appraisal report are used only for the
purpose of estimating value and do not constitute predictions of future operating results.
13. If the property is subject to one or more leases, any estimate of residual value contained in
the appraisal may be particularly affected by significant changes in the condition of the
economy, of the real estate industry, or of the appraised property at the time these leases
expire or otherwise terminate.
14. Unless otherwise stated in the report, no consideration has been given to personal property
located on the premises or to the cost of moving or relocating such personal property; only
the real property has been considered.
15. The current purchasing power of the dollar is the basis for the values stated in the appraisal;
we have assumed that no extreme fluctuations in economic cycles will occur.
16. The values found herein are subject to these and to any other assumptions or conditions set
forth in the body of this report but which may have been omitted from this list of Assumptions
and Limiting Conditions.
17. The analyses contained in the report necessarily incorporate numerous estimates and
assumptions regarding property performance, general and local business and economic
conditions, the absence of material changes in the competitive environment and other
matters. Some estimates or assumptions, however, inevitably will not materialize, and
unanticipated events and circumstances may occur; therefore, actual results achieved during
Reconciliation and Conclusion of Value 49
Vacant Land
the period covered by our analysis will vary from our estimates, and the variations may be
material.
18. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not
made a specific survey or analysis of the property to determine whether the physical aspects
of the improvements meet the ADA accessibility guidelines. We claim no expertise in ADA
issues, and render no opinion regarding compliance of the subject with ADA regulations.
Inasmuch as compliance matches each owner’s financial ability with the cost to cure the non-
conforming physical characteristics of a property, a specific study of both the owner’s financial
ability and the cost to cure any deficiencies would be needed for the Department of Justice to
determine compliance.
19. The appraisal report is prepared for the exclusive benefit of you, your subsidiaries and/or
affiliates. It may not be used or relied upon by any other party. All parties who use or rely
upon any information in the report without our written consent do so at their own risk.
20. No studies have been provided to us indicating the presence or absence of hazardous
materials on the subject property or in the improvements, and our valuation is predicated
upon the assumption that the subject property is free and clear of any environment hazards
including, without limitation, hazardous wastes, toxic substances and mold. No
representations or warranties are made regarding the environmental condition of the subject
property. IRR - Detroit, Integra Realty Resources, Inc., and their respective officers, owners,
managers, directors, agents, subcontractors or employees (the “Integra Parties”), shall not be
responsible for any such environmental conditions that do exist or for any engineering or
testing that might be required to discover whether such conditions exist. Because we are not
experts in the field of environmental conditions, the appraisal report cannot be considered as
an environmental assessment of the subject property.
21. The persons signing the report may have reviewed available flood maps and may have noted
in the appraisal report whether the subject property is located in an identified Special Flood
Hazard Area. However, we are not qualified to detect such areas and therefore do not
guarantee such determinations. The presence of flood plain areas and/or wetlands may affect
the value of the property, and the value conclusion is predicated on the assumption that
wetlands are non-existent or minimal.
22. We are not a building or environmental inspector. The Integra Parties do not guarantee that
the subject property is free of defects or environmental problems. Mold may be present in the
subject property and a professional inspection is recommended.
23. The appraisal report and value conclusions for an appraisal assume the satisfactory
completion of construction, repairs or alterations in a workmanlike manner.
24. IRR - Detroit is an independently owned and operated company. The parties hereto agree that
Integra shall not be liable for any claim arising out of or relating to any appraisal report or any
information or opinions contained therein as such appraisal report is the sole and exclusive
responsibility of IRR - Detroit. In addition, it is expressly agreed that in any action which may
be brought against the Integra Parties arising out of, relating to, or in any way pertaining to
the engagement letter, the appraisal reports or any related work product, the Integra Parties
shall not be responsible or liable for any incidental or consequential damages or losses, unless
Reconciliation and Conclusion of Value 50
Vacant Land
the appraisal was fraudulent or prepared with intentional misconduct. It is further expressly
agreed that the collective liability of the Integra Parties in any such action shall not exceed the
fees paid for the preparation of the assignment (unless the appraisal was fraudulent or
prepared with intentional misconduct). It is expressly agreed that the fees charged herein are
in reliance upon the foregoing limitations of liability.
25. IRR - Detroit is an independently owned and operated company, which has prepared the
appraisal for the specific intended use stated elsewhere in the report. The use of the appraisal
report by anyone other than the Client is prohibited except as otherwise provided.
Accordingly, the appraisal report is addressed to and shall be solely for the Client’s use and
benefit unless we provide our prior written consent. We expressly reserve the unrestricted
right to withhold our consent to your disclosure of the appraisal report or any other work
product related to the engagement (or any part thereof including, without limitation,
conclusions of value and our identity), to any third parties. Stated again for clarification, unless
our prior written consent is obtained, no third party may rely on the appraisal report (even if
their reliance was foreseeable).
26. The conclusions of this report are estimates based on known current trends and reasonably
foreseeable future occurrences. These estimates are based partly on property information,
data obtained in public records, interviews, existing trends, buyer-seller decision criteria in the
current market, and research conducted by third parties, and such data are not always
completely reliable. The Integra Parties are not responsible for these and other future
occurrences that could not have reasonably been foreseen on the effective date of this
assignment. Furthermore, it is inevitable that some assumptions will not materialize and that
unanticipated events may occur that will likely affect actual performance. While we are of the
opinion that our findings are reasonable based on current market conditions, we do not
represent that these estimates will actually be achieved, as they are subject to considerable
risk and uncertainty. Moreover, we assume competent and effective management and
marketing for the duration of the projected holding period of this property.
27. All prospective value opinions presented in this report are estimates and forecasts which are
prospective in nature and are subject to considerable risk and uncertainty. In addition to the
contingencies noted in the preceding paragraph, several events may occur that could
substantially alter the outcome of our estimates such as, but not limited to changes in the
economy, interest rates, and capitalization rates, behavior of consumers, investors and
lenders, fire and other physical destruction, changes in title or conveyances of easements and
deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present
time are consistent or similar with the future.
Reconciliation and Conclusion of Value 51
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28. The appraisal is also subject to the following:
Extraordinary Assumptions and Hypothetical Conditions
1.None.
1.None.
The use of any extraordinary assumption or hypothetical condition may have affected the assignment results.
The value conclusions are based on the following hypothetical conditions. A hypothetical condition is 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 purpose of analysis.
The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an
assignment-specific assumption as of the effective date regarding uncertain information used in an analysis
which, if found to be false, could alter the appraiser’s opinions or conclusions.
Addenda
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Addendum A
Appraiser Qualifications
Constantino G. Naoum
Integra Realty Resources - Detroit
irr.com
T 248.540.0040 Ext. 102
F 248.540.8239
400 West Maple Road
Suite 100
Birmingham, MI 48009
Experience
Mr. Naoum, Senior Director, is a Certified General Real Estate Appraiser who has been actively
involved with appraisal and advisory services since 1995.
Mr. Naoum has extensive knowledge in a number of commercial property types including land
development, manufactured housing communities, office buildings, medical office buildings,
golf courses, single-and multi-tenant retail centers, multifamily and vacant land parcels. Mr.
Naoum is highly proficient at Argus and has extensive experience working on very large
multi-tenant office buildings with Life Insurance Companies, Conduits, and Conventional
Lenders. Mr. Naoum also has extensive experience in litigation support including rezoning
cases, tax appeals, divorce proceedings, partnership disputes, and right-of-way assignments.
Professional Activities & Affiliations
Appraisal Institute: Associate Member
Licenses
Michigan, Certified General Real Estate Appraiser, 1205068135, Expires July 2025
Education
Bachelor of Science in Business Administration, Major Finance
Masters of Business Administration, Major Finance, Wayne State University, Detroit, Michigan
Successfully completed numerous real estate related courses and seminars sponsored by the
Appraisal Institute, including:
- Real Estate Appraisal Principles
- Real Estate Appraisal Procedures
- Basic Income Capitalization
- General Applications
- USPAP A & 420 USPAP B
- Advanced Income Capitalization
- Highest and Best Use
- Advanced Sales Comparison & Cost Approaches
dnaoum@irr.com - 248.979.9690
Anthony Sanna, MAI, CRE
Integra Realty Resources - Detroit
irr.com
T 248.540.0040 Ext. 107
F 248.540.8239
400 West Maple Road
Suite 100
Birmingham, MI 48009
Experience
Mr. Sanna, Executive Director, has actively counseled and advised clients on issues relating to
the sale, leasing, valuation, management, and development of commercial real estate assets
since 1989. Mr. Sanna served as the Managing Director of IRR Detroit from 2003-2018.
He has a diversified background in real estate with primary emphasis in the areas of valuation
for investment property, institutional assets, portfolio asset management and complex real
estate issues. Conversely, Mr. Sanna continually manages a re-occurring volume of traditional
mortgage loan appraisal work on all varieties of properties, large and small, focusing on core
real estate assets including hotel, office, industrial, retail, and multifamily properties.
Mr. Sanna has extensive consulting and valuation experience relating to corporate and private
clients on an array of issues pertaining to estate and property trust matters, partnership
disputes, air rights, partial and fractional interests, contract disputes, and mediation/arbitration
disputes. Mr. Sanna’s experience in these matters provides clients with a well-rounded
framework for valuation and consulting solutions.
Professional Activities & Affiliations
MAI Designation, Appraisal Institute
CRE Designation, Counselors of Real Estate
Board of Director: Integra Realty Resources - 2005-2008; 2012-2017 and 2019-Current
Board of Director: Commercial Board of Real Estate - Michigan Chapter
Licenses
Michigan, Certified General Real Estate Appraiser, 1205001324, Expires July 2025
Education
Bachelor of Science (Business Administration) Wayne State University, Detroit, MI
Appraisal Institute Courses:
- Principals of Real Estate Appraisal
- Procedures of Real Estate Appraisal
- Uniform Standards of Professional Practice
- Basic Income Capitalization
- Advanced Income Capitalization
- Report Writing
- Advanced Applications/Case Studies
Qualified Before Courts & Administrative Bodies
Qualified expert witness before the Michigan Tax Tribunal, various Circuit Courts, planning boards,
commissioner hearings and County Tax Boards.
asanna@irr.com - 248.979.9663
About IRR
Integra Realty Resources, Inc. (IRR) provides world-class commercial real estate valuation, counseling,
and advisory services. Routinely ranked among leading property valuation and consulting firms, we are
now the largest independent firm in our industry in the United States, with local offices coast to coast
and in the Caribbean.
IRR offices are led by MAI-designated Senior Managing Directors, industry leaders who have over 25
years, on average, of commercial real estate experience in their local markets. This experience, coupled
with our understanding of how national trends affect the local markets, empowers our clients with the
unique knowledge, access, and historical perspective they need to make the most informed decisions.
Many of the nation's top financial institutions, developers, corporations, law firms, and government
agencies rely on our professional real estate opinions to best understand the value, use, and feasibility
of real estate in their market.
Local Expertise...Nationally!
irr.com
Addenda
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Addendum B
IRR Quality Assurance Survey
Addenda
Vacant Land
IRR Quality Assurance Survey
We welcome your feedback!
At IRR, providing a quality work product and delivering on time is what we strive to accomplish. Our
local offices are determined to meet your expectations. Please reach out to your local office contact so
they can resolve any issues.
Integra Quality Control Team
Integra does have a Quality Control Team that responds to escalated concerns related to a specific
assignment as well as general concerns that are unrelated to any specific assignment. We also enjoy
hearing from you when we exceed expectations! You can communicate with this team by clicking on
the link below. If you would like a follow up call, please provide your contact information and a member
of this Quality Control Team will call contact you.
Link to the IRR Quality Assurance Survey: quality.irr.com
Addenda
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Addendum C
Definitions
Addenda
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Definitions
The source of the following definitions is the Appraisal Institute, The Dictionary of Real Estate
Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022), unless otherwise noted.
As Is Market Value
The estimate of the market value of real property in its current physical condition, use, and zoning as
of the appraisal date.
Disposition Value
The most probable price that a specified interest in property should bring under the following
conditions:
1. Consummation of a sale within a specified time, which is shorter than the typical exposure
time for such a property in that market.
2. The property is subjected to market conditions prevailing as of the date of valuation.
3. Both the buyer and seller are acting prudently and knowledgeably.
4. The seller is under compulsion to sell.
5. The buyer is typically motivated.
6. Both parties are acting in what they consider to be their best interests.
7. An adequate marketing effort will be made during the exposure time.
8. Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial
arrangements comparable thereto.
9. The price represents the normal consideration for the property sold, unaffected by special or
creative financing or sales concessions granted by anyone associated with the sale.
This definition can also be modified to provide for valuation with specified financing terms.
Effective Date
1. The date on which the appraisal opinion applies. (SVP)
2. The date to which an appraiser’s analysis, opinions, and conclusions apply; also referred to as
date of value. (USPAP, 2020-2021 ed.)
3. The date that a lease goes into effect.
Entitlement
In the context of ownership, use, or development of real estate, governmental approval for
annexation, zoning, utility extensions, number of lots, total floor area, construction permits, and
occupancy or use permits.
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Entrepreneurial Incentive
The amount an entrepreneur expects or wants to receive as compensation for providing coordination
and expertise and assuming the risks associated with the development of a project. Entrepreneurial
incentive is the expectation of future reward as opposed to the profit actually earned on the project.
Entrepreneurial Profit
1. A market-derived figure that represents the amount an entrepreneur receives for his or her
contribution to a past project to compensate for his or her time, effort, knowledge, and risk;
the difference between the total cost of a property (cost of development) and its market value
(property value after completion), which represents the entrepreneur’s compensation for the
risk and expertise associated with development. An entrepreneur is motived by the prospect
of future value enhancement (i.e., the entrepreneurial incentive). An entrepreneur who
successfully creates value through new development, expansion, renovation, or an innovation
change of use is rewarded by entrepreneurial profit. Entrepreneurs may also fail and suffer
losses.
2. In economics, the actual return on successful management practices, often identified with
coordination, the fourth factor of production following land, labor, and capital; also called
entrepreneurial return or entrepreneurial reward.
Exposure Time
1. The time a property remains on the market.
2. An opinion, based on supporting market data, of the length of time that the property interest
being appraised would have been offered on the market prior to the hypothetical
consummation of a sale at market value on the effective date of the appraisal.
Fee Simple Estate
Absolute ownership unencumbered by any other interest or estate, subject only to the limitations
imposed by the governmental powers of taxation, eminent domain, police power, and escheat.
Floor Area Ratio (FAR)
The relationship between the above-ground floor area of a building, as described by the zoning or
building code, and the area of the plot on which it stands; in planning and zoning, often expressed as a
decimal, e.g., a ratio of 2.0 indicates that the permissible floor area of a building is twice the total land
area.
Highest and Best Use
1. The reasonably probable use of property that results in the highest value. The four criteria
that the highest and best use must meet are legal permissibility, physical possibility, financial
feasibility, and maximum productivity.
2. The use of an asset that maximizes its potential and that is possible, legally permissible, and
financially feasible. The highest and best use may be for continuation of an asset’s existing use
or for some alternative use. This is determined by the use that a market participant would
have in mind for the asset when formulating the price that it would be willing to bid. (ISV)
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3. [The] highest and most profitable use for which the property is adaptable and needed or likely
to be needed in the reasonably near future. (Uniform Appraisal Standards for Federal Land
Acquisitions)
Investment Value
1. The value of a property to a particular investor or class of investors based on the investor’s
specific requirements. Investment value may be different from market value because it
depends on a set of investment criteria that are not necessarily typical of the market.
2. The value of an asset to the owner or a prospective owner given individual investment or
operational objectives (may also be known as worth). (IVS)
Lease
A contract in which rights to use and occupy land, space, or structures are transferred by the owner to
another for a specified period of time in return for a specified rent.
Leased Fee Interest
The ownership interest held by the lessor, which includes the right to receive the contract rent
specified in the lease plus the reversionary right when the lease expires.
Leasehold Estate
The right held by the lessee to use and occupy real estate for a stated term and under the conditions
specified in the lease.
Liquidation Value
The most probable price that a specified interest in real property should bring under the following
conditions:
1. Consummation of a sale within a short time period.
2. The property is subjected to market conditions prevailing as of the date of valuation.
3. Both the buyer and seller are acting prudently and knowledgeably.
4. The seller is under extreme compulsion to sell.
5. The buyer is typically motivated.
6. Both parties are acting in what they consider to be their best interests.
7. A normal marketing effort is not possible due to the brief exposure time.
8. Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial
arrangements comparable thereto.
9. The price represents the normal consideration for the property sold, unaffected by special or
creative financing or sales concessions granted by anyone associated with the sale.
This definition can also be modified to provide for valuation with specified financing terms.
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Marketing Time
An opinion of the amount of time to sell a property interest at the concluded market value or at a
benchmark price during the period immediately after the effective date of an appraisal. Marketing
time differs from exposure time, which precedes the effective date of an appraisal.
Market Value
The most probable price which a property should bring in a competitive and open market under all
conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and
assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of
a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
• 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 sales concessions granted by anyone associated with the sale.
(Source: Code of Federal Regulations, Title 12, Chapter I, Part 34.42[h]; also Interagency Appraisal and
Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77472)
Prospective Opinion of Value
A value opinion effective as of a specified future date. The term does not define a type of value.
Instead, it identifies a value opinion as being effective at some specific future date. An opinion of
value as of a prospective date is frequently sought in connection with projects that are proposed,
under construction, or under conversion to a new use, or those that have not yet achieved sellout or a
stabilized level of long-term occupancy.
Retrospective Value Opinion
A value opinion effective as of a specified historical date. The term retrospective does not define a
type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value
as of a historical date is frequently sought in connection with property tax appeals, damage models,
lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of
value with this term is appropriate, e.g., “retrospective market value opinion.”
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Addendum D
Property Information
Municipal Field Records / Legal Descriptions
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Addendum E
Comparable Data
Land Sale Profile Sale No. 1
Location & Property Identification
Vacant Land Property Name:
Sub-Property Type: Specialty,
Conservation/Preservation
John R Rd. Address:
Troy, MI 48085 City/State/Zip:
Oakland County:
Suburban Market Orientation:
E/S John R, N. of Square Lake Property Location:
IRR Event ID: 3263108
Sale Information
$260,000 Sale Price:
$260,000 Effective Sale Price:
06/01/2024 Sale Date:
Sale Status: Closed
$/Acre(Gross): $11,197
$/Land SF(Gross): $0.26
Grantor/Seller: John R Square Lake Partners
Grantee/Buyer: Post
Property Rights: Fee Simple
Financing: Cash to seller
Conditions of Sale: Motivated Buyer
Terms of Sale Comments: Arm's Length
Verified By: Constantino G. Naoum
Verification Date: 08/01/2024
Confirmation Source: Buyer
Verification Type: Confirmed-Buyer
Improvement and Site Data
MSA: Detroit-Warren-Dearborn, MI
20-01-300-001 and
20-01-300-002
Legal/Tax/Parcel ID:
23.22 Acres(Gross):
1,011,463 Land-SF(Gross):
Shape: Rectangular
Topography: Rolling
Corner Lot: No
Frontage Desc.: John R Road
Zoning Code: R-1D
Zoning Desc.: One-family Residential
Flood Plain: No
Flood Zone Designation: X
Comm. Panel No.: 26125C0551F
Date: 09/29/2006
Utilities Desc.: All Available
Source of Land Info.: Public Records
Comments
The buyer was an adjacent homeowner who wants to
conserve the land as open space.
The majority of the site is covered by regulated wetlands,
which encompasses the entire road frontage along John R
Road. The property was marketed as having 4-5 acres of
buildable area, roughly 750-800 feet inwards from John R
Road. The overall site has significant development challenges.
Vacant Land
Land Sale Profile Sale No. 2
Location & Property Identification
Vacant Land Property Name:
Sub-Property Type: Residential, Single Family
Residence Site
Greenwood Dr. Address:
Chesterfield Township, MI
48047
City/State/Zip:
Macomb County:
Suburban Market Orientation:
N. of 24 Mile Road, E. of I-94
Freeway
Property Location:
IRR Event ID: 3227050
Sale Information
$140,000 Sale Price:
$140,000 Effective Sale Price:
08/22/2022 Sale Date:
Listing Date: 10/15/2021
Sale Status: Closed
$/Acre(Gross): $4,911
$/Land SF(Gross): $0.11
Grantor/Seller: Thomas Beauchemin
Grantee/Buyer: Bradley Kersten
Property Rights: Fee Simple
Financing: Cash to seller
Conditions of Sale: Arm's-length
Document Type: Warranty Deed
Recording No.: Liber 28611/Page 117
Verified By: Constantino G. Naoum
Verification Date: 04/24/2024
Verification Type: Secondary Verification
Improvement and Site Data
MSA: Detroit-Warren-Dearborn, MI
15-09-10-400-011Legal/Tax/Parcel ID:
28.51Acres(Gross):
1,241,721Land-SF(Gross):
Shape: Irregular
Topography: Gently Sloping
Vegetation: Heavily treed
Zoning Code: R1A
Zoning Desc.: Single Family Residential
Utilities Desc.: All Available
Source of Land Info.: Public Records
Comments
The vast majority of the property is not buildable due to
regulated wetlands. The only portion building is the residential
lot situated in Heatherwoods Sub.
Heavily wooded.
Vacant Land
Land Sale Profile Sale No. 3
Location & Property Identification
Vacant Land Property Name:
Sub-Property Type: Specialty, Park/Open Space
33210 Hooker Rd. Address:
Chesterfield Township, MI
48047
City/State/Zip:
Macomb County:
Suburban Market Orientation:
S. of CallenProperty Location:
IRR Event ID: 3230908
Sale Information
$285,000 Sale Price:
$285,000 Effective Sale Price:
12/13/2021 Sale Date:
Sale Status: Closed
$/Acre(Gross): $8,708
$/Land SF(Gross): $0.20
Grantor/Seller: Six Rivers Lands Conservancy
Grantee/Buyer: Chesterfield Township
Property Rights: Fee Simple
Financing: Cash to seller
Conditions of Sale: Arm's-length
Verified By: Constantino G. Naoum
Verification Date: 04/30/2024
Confirmation Source: Seller, Six Rivers Land
Conservancy
Verification Type: Confirmed-Seller
Improvement and Site Data
09-23-153-003,
09-23-154-006,
09-23-302-010,
09-23-154-002,
09-23-153-001
Legal/Tax/Parcel ID:
32.73 Acres(Gross):
1,425,719 Land-SF(Gross):
Shape: Irregular
Topography: Gently Sloping
Zoning Code: R-1-A
Zoning Desc.: One-Family Residential
Utilities Desc.: All Available
Source of Land Info.: Public Records
Comments
Chesterfield Township secured grant money from the state to
purchase the site. Being utilized as the Salt River Nature
Preserve.
The property contains 1,332 feet of frontage along the Salt
River. A significant portion of the property is situated in a
flood plain along with a portion being submerged. The R-1-A
district requires a minimum lot area of 13,500 SF. A portion of
the site is also zoned R-1-B which requires a minimum lot area
of 9,750 SF. Reportedly, the site was once proposed for a
residential development containing 78 lots. It is unclear if the
flood plain issues ultimately resulted in the property not being
able to be developed.
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Land Sale Profile Sale No. 4
Location & Property Identification
Stanley Park Property Name:
Sub-Property Type: Specialty, Park/Open Space
10785 Elizabeth Lake Rd. Address:
White Lake Township, MI
48386
City/State/Zip:
Oakland County:
Suburban Market Orientation:
W/S Elizabeth Lake, S. of
Highland Road
Property Location:
IRR Event ID: 3227452
Sale Information
$1,800,000 Sale Price:
$1,800,000 Effective Sale Price:
12/12/2019 Sale Date:
Sale Status: Closed
$/Acre(Gross): $30,000
$/Land SF(Gross): $0.69
Grantor/Seller: Bernice Pawlak
Grantee/Buyer: White Lake Township
Property Rights: Fee Simple
Financing: Cash to seller
Conditions of Sale: Arm's-length
Verified By: Constantino G. Naoum
Verification Date: 04/24/2024
Confirmation Source: Justin Quagliata, White Lake
Twp. Parks & Rec
Verification Type: Confirmed-Buyer
Improvement and Site Data
12-27-100-014Legal/Tax/Parcel ID:
60.00Acres(Gross):
2,613,600Land-SF(Gross):
Shape: Irregular
Topography: Rolling
Frontage Feet: 404
Frontage Desc.: Elizabeth Lake Road
Zoning Code: R-1B
Zoning Desc.: Single-Family Residential
Utilities Desc.: Septic & Well
Source of Land Info.: Public Records
Comments
The property was improved with Stanley Park. Per the buyer,
roughly 50% of the property contains regulated wetlands with
the uplands scattered throughout the site with limited
clustering of upland areas. White Lake Township secured a
grant for 74% of the purchase price via the natural resource
trust fund.
The property has frontage along Brendel Lake. The R-1B
zoning district requires a minimum lot area of 20,000 SF.
Stanley Park
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Addendum F
Engagement Letter
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