Loading...
14 FRANKLIN STREET APPRAISAL REPORT 1996 LONG REAL ESTATE APPRAISERS 1996 APPRAISAL REPORT OF 14 FRANKLIN STREET SALEM, MASSACHUSETTS PART I- INTRODUCTION 480 BROADWAY, LYAUVf D, MCI (617) 592-4700. LONG REAL ESTATE APPRAISERS AN APPRAISAL REPORT OF: A COMMERCIAL PIECE OF LAND CONSISTING OF 21,500 SQUARE FEET OF LAND - AND AN INCOMPLETE INDUSTRIAL BUILDING LOCATED AT: 14 FRANKLIN STREET SALEM, MASSACHUSETTS OWNER OF RECORD: FRANKLIN STREET REALTY TRUST CRAIG C. BURNHAM, TRUSTEE DATE OF VALUE ESTIMATE: MAY 24, 1996 * * * * * * * * * * * * * * * APPRAISED BY: DAVID J. SAKURAI MA CERT. GEN. R.E. APPRAISER LIC. 1321 REVIEWED BY: WILLIAM LONG, MRA MA CERT. GEN. R.E. APPRAISER LIC. 1404 LONG REAL ESTATE APPRAISERS 480 BROADWAY LYNNFIELD, MASSACHUSETTS (617) 592-4700 480 BROADWAY, LYNNFIELD,MA. PAGE# 1 (617) 592-4700 LONG REAL ESTATE APPRAISERS TABLE OF CONTENTS PART I-INTRODUCTION COVER PAGE 1 TABLE OF CONTENTS 2 LETTER OF TRANSMITTAL 3 GENERAL ASSUMPTIONS AND LIMITING CONDITIONS 4 SPECIFIC ASSUMPTIONS AND LIMITING CONDITIONS 6 SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS 7 EXTENT OF THE APPRAISAL 8 PART H- FACTUAL DATA SUBJECT PROPERTY DESCRIPTIVE PHOTOGRAPH 12 PURPOSE OF THE APPRAISAL 13 IDENTIFICATION OF SUBJECT PROPERTY 14 LEGAL DESCRIPTION _ 15 AREA AND NEIGHBORHOOD ANALYSIS 16 PART HI-PROPERTY DATA SITE DESCRIPTION AND ANALYSIS 24 SITE PLAN 25 FLOOD ZONE MAP 26 PROPERTY HISTORY 27 PROPERTY TAXES AND ASSESSMENTS 28 ZONING/LAND USE CONTROLS 29 DESCRIPTION OF IMPROVEMENTS 31 PART IV-ANALYSES AND CONCLUSIONS HIGHEST AND BEST USE 33 THE VALUATION PROCESS 36 COST APPROACH 37 INCOME CAPITALIZATION APPROACH 45 SALES COMPARISON APPROACH 45 RECONCILIATION AND FINAL VALUE ESTIMATE 46 CERTIFICATION OF THE APPRAISER 47 PART V- EXHIBITS AND ADDENDA QUALIFICATIONS OF THE APPRAISER 49 COMPARABLE SALES ADJUSTMENT GRID 50 COMPARABLE SALES MAP/COMPARABLE SALES PLOT PLANS 51 PHOTOGRAPHS 53 ZONING EXCERPTS 56 BUILDING PERMITS/INFORMATION 57 LETTER OF ENGAGEMENT 58 480 BROADWAY, LYAWFIELD, MA. PAGE# 2 (617) 592-4700 LONG REAL ESTATE APPRAISERS June 11, 1996 Ms. Elizabeth Debski Acting City Planner One Salem Green Salem, MA 01970 Re: 14 Franklin Street Salem, Massachusetts Dear Ms. Debski, At your request, I have conducted an appraisal of the above referenced property. The property consists a 21,500 square foot lot with an incomplete industrial building, dock and fencing. The purpose of this appraisal is to estimate the market value of the fee simple estate in the subject property, as of May 24, 1996. The valuation of the property and the accompanying report, prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP), describes the subject site and improvements, the rights appraised, and offers my opinion of the highest and best use of the site. This report includes data and conclusions from the application of three approaches to value. After assembling and analyzing the data defined in the scope of this appraisal, a final estimate of market value was made. Please note the assumptions and limiting conditions of this appraisal listed within the report. Based on my investigation and analysis of the data gathered with respect to this assignment, I estimate the market value of the subject property as of May 24, 1996, subject to the specific assumptions and limiting conditions, as follows: ONE HUNDRED SEVENTY FIVE THOUSAND DOLLARS - $175,000.00 Respectfully yours, David J. Sakurai MA. CERTIFIED GENERAL R.E. APPRAISER LIC. #1321 William Long, MA. CERTIF D GENERAL R.E. APPRAISER LIC. #1404 480 BROADWAY, LYNNFIELD, AM. PAGE# 3 (617) 592-4700 LONG REAL ESTATE APPRAISERS GENERAL ASSUMPTIONS AND LIMITING CONDITIONS Acceptance of and/or use of this appraisal report constitutes acceptance of the foregoing general assumptions and general limiting conditions. GENERAL ASSUMPTIONS: 1. No responsibility is assumed for the legal description or for matters including legal or title considerations. No survey has been made of the property nor is an opinion of title rendered. Title to the property is assumed to be good and marketable unless otherwise stated. 2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. 5. All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 7. Unless otherwise stated in this report, the value estimated in this report is based on the assumption that the property is not negatively affected by the existence of hazardous substances or detrimental environmental conditions. The appraiser is not an expert in the identification of hazardous substances or detrimental environmental conditions. A routine inspection of and inquiries about the subject property did not,develop any information that indicated any apparent significant hazardous substances or detrimental environmental conditions which would affect the property negatively. It is possible that tests and inspections made by a qualified hazardous substance and environmental expert would reveal the existence of hazardous materials and environmental conditions on or around the property that would negatively affect its value. 480 BROADWAY, LYAWFIELD,MA. PAGE# 4 (617) 592-4700 LONG REAL ESTATE APPRAISERS GENERAL ASSUMPTIONS AND LIMITING CONDITIONS (cont.) 8. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. 9. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in the appraisal report. 10. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state or national government or private entity or organization have been or can be obtained or renewed, for any use on which the value estimate contained in this report is based. 11. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. GENERAL LIMITING CONDITIONS: 1. The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 2. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by anyone but the owners without written consent of the appraiser, and in any event, only with the proper written qualification and only in its entirety. 3. The appraiser, by reason of this appraisal, is not required to give further consultation, testimony, or be in attendance in court with reference to the property in question, unless arrangements have been previously made. 4. Neither all nor any part of the contents of this report, (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be conveyed to the public through advertising, public relations, news, sales, or any other media without the prior written consent and approval of the appraiser. 480 BROADWAY, LYNNFIELD, MA. PAGE# S (617) 592-4700 LONG REAL ESTATE APPRAISERS GENERAL ASSUMPTIONS AND LIMITING CONDITIONS (cont.) 5. Included in this report are sales and rental information from many sources. A concerted effort has been made to personally verify the market data used in this analysis with a reliable source. Occasionally, some new information is found on these sales, or errors may be found and corrected. If any errors or omissions are discovered, it will be brought to the client's attention. The appraiser must reserve the right to change his conclusion, if required, due to a subsequent discovery. SPECIFIC ASSUMPTIONS AND LIMITING CONDITIONS In this appraisal, the following specific assumptions have been made. The value conclusion is based upon these points. 1. The appraised market value reflects the value of the Real Estate "REAL PROPERTY"* only. No personal property, fixtures, or intangible items are valued separately in this appraised value. * REAL PROPERTY refers to the interests, benefits, and rights inherent in the ownership of the physical real estate. It is a bundle of rights with which the ownership of real estate is endowed. * Appraisal Institute, The Appraisal of Real Estate, loth ED. Chicago, 1990. 480 BROADWAY, LYNNFIELD,MA. PAGE# 6 (617) 592-4700 LONG REAL ESTATE APPRAISERS SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS DATE OF APPRAISAL : May 24, 1996 DATE OF INSPECTION May 24, 1996 PROPERTY RIGHTS Fee Simple Interest ADDRESS 14 Franklin street Salem, Massachusetts LEGAL DESCRIPTION Book 11472, Page 66 REGISTRY OF DEEDS Essex County, Southern District ZONING B5 - Central Development LAND AREA 21,500 Square Feet GROSS BUILDING AREA 3,900 square feet + 1,500 Mezzanine CONFORMANCE Illegal, No occupancy permit allowed PROPERTY USE The building is vacant at this time, due to lack of conformance with regulations according to the building inspector. See zoning section of report. HIGHEST AND BEST USE CONCLUSIONS AS IF VACANT Vacant, Developable land AS CURRENTLY IMPROVED The highest and best use is determined to be as improved, with the completion of the improvements to conform to zoning. THE VALUATION SUMMARY LAND VALUE $150,000 COST APPROACH $183,000 INCOME CAPITALIZATION APPROACH N/A SALES COMPARISON APPROACH N/A FINAL VALUE CONCLUSION $175,000 480 BROAD WAY, LYNNFIELD, MA. PAGE.# 7 (617) 592-4700 LONG REAL ESTATE APPRAISERS EXTENT OF THE APPRAISAL This section describes the extent of the process of collecting, confirming and reporting data, the limitations of the appraiser's investigation, and a description of the appraisal procedures used. The appraisal analysis was performed in compliance with the real estate appraisal regulations promulgated by the Office of the Comptroller of the Currency, 12 CFR 34, and by the Federal Deposit Insurance Corporation, 12 CFR 323, Pursuant to Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA). In this appraisal, the appraiser has made every attempt to satisfy the requirements of the Uniform Standards of Professional Appraisal Practice (USPAP, 1992) adopted by the Appraisal Standards Board of the Appraisal Foundation. As part of the appraisal process, a number of independent investigations and analyses were completed. Reliance was placed on data retained in our files, field research, data collection and interviews. The investigations undertaken and the major data sources used are listed below. AREA AND NEIGHBORHOOD ANALYSIS: The first area to be analyzed is the regional location of the subject, with the economic base and demographics reviewed in particular. From this analysis the area's current trends, growth patterns and economic conditions were established. Information was obtained from a number of recent publications, including Massachusetts Municipal Profiles, regional and local newspapers, and Department of Employment& Training. Area real estate brokers and appraisers were also interviewed in order to obtain a local perspective. The next step in this part of the appraisal was to perform a physical inspection of the neighborhood, which included driving the immediate area and reviewing the local traffic patterns, locating all services and amenities and considering current trends in the area. Neighboring property uses were also noted for concerns relating to hazardous waste issues. This was performed to better understand the market influences on the subject, This research also served to define the borders of the subject's neighborhood. A survey was made of the current market for competing space in the subject's neighborhood. Specific emphasis was placed upon similar projects and buildings, as this is the market the subject competes within. This encompassed inspections of the projects currently in place, discussions with the building department of projects under construction, and planning department interviews as to future development expectations. This was performed to determine the future trends in the supply and demand for commercial, retail, and residential units and the absorption rates for such units. 480 BROADWAY, LYNNFIELD,MA. PAGE# 8 (617) 592-4700 LONG REAL ESTATE APPRAISERS SITE DESCRIPTION AND ANALYSIS: The subject was physically inspected by the Appraisers, David J. Sakurai and William Long, on May 24, 1996, with condition, utility and amenities reviewed. This included the exterior inspection and measurement of the improvements, an interior inspection, and physically walking the site. Photographs were taken of the exterior of the subject, the street scenes and site improvements. Facts were collected at the City of Salem assessor's office, and the planning and building departments. The Essex South County Registry of Deeds was utilized in the obtaining and reviewing of the subject's deed reference, found in Book 11472, Page 66 and a plot plan was obtained from the assessors map, illustrating the subject's metes and bounds. Copies of these documents are included in this report. MARKET DATA PROGRAM Research of the regional real estate market, for the period between 1992 and 1996, was completed. Primary emphasis was placed on similar use properties, situated with similar location influences to that of the subject. This included reviewing the City's sales records, speaking with local commercial real estate brokers and reviewing the real estate trade publications, "The Banker and Tradesman" as well as "The Boston Globe", and other real estate periodicals. In addition, a review of broker's listings for any applicable data was made. All sales noted were confirmed through a review of the recorded deed and with one or more of the parties involved, when possible. The physical data was obtained from the assessor's records and verified with an exterior inspection of each property. RENTAL DATA PROGRAM: The investigation included discussions with area brokers on offerings, leases and rentals in the competing market. Also used, was information from our office files on leases and expenses known in the market, as well as, direct conversations with property owners. A number of area property managers were interviewed for localized data. Vacancy data was obtained from discussions with building managers, brokers and a physical inspection of the market. 480 BROADWAY, LYNNFIELD, MA. PAGE# 9 (617) 592-4700 LONG REAL ESTATE APPRAISERS HIGHEST AND BEST USE/VALUATION ANALYSIS: In establishing the highest and best use for the subject, an analysis was made of the data compiled in the steps noted above. In addition, a study of the local market was made to help determine the economic feasibility of this use. The valuation analysis considered the three most commonly recognized appraisal techniques: the sales comparison approach, the cost approach, and an income capitalization approach. Each technique will be discussed in more detail within its specific section of the report. The three approaches are reconciled to produce a final value conclusion for the subject property. In the process of collecting data, information is verified with the parties involved, where possible, and through legally recorded documents, when available. Verbal information was gathered from sources deemed reliable, by utilizing real estate brokers and other professionals familiar with the subject's marketplace. Please refer to the general assumptions and limiting conditions as set forth on pages four through six. 480 BROADWAY, LYAWFIELD, MA. PAGE# 10 (617) 592-4700 LONG REAL ESTATE APPRAISERS PART II - FACTUAL DATA: 480 BROADWAY, LYNNFIELD, MA. PAGE# 11 (617) 592-4700 LONG REAL ESTATE APPRAISERS SUBJECT PROPERTY DESCRIPTIVE PHOTOGRAPH r R r l•1 �. T �. ► '{ f- FRONT VIEW/PHOTO TAKEN: May 24, 1996 480 BROADWAY, LYAWFIELD, IVIA. PAGE# 12 (617) 592-4700 LONG REAL ESTATE APPRAISERS THE PURPOSE OF THE APPRAISAL This appraisal was requested by Ms. Elizabeth Debski, Acting City Planner of Salem, MA, One Salem Green, Salem, MA, to determine the market value of the subject property. The purpose of the appraisal is to estimate the MARKET VALUE of the FEE SEMPLE ESTATE as of May 24, 1996, of the real estate identified as: 14 Franklin street, Salem, Massachusetts; MARKET VALUE is defined as follows: 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 specific date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; 2. both parties are well informed or well advised, and acting in what they consider their best interests, 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concession granted by anyone associated with the sale. (12 CFR 34.43 FUMEA) * FEE SIMPLE implies the absolute ownership unencumbered by any other interest or estate. Partial interests in real estate are created by selling, leasing, or otherwise limiting the bundle of rights in a fee simple estate. * Appraisal Institute, The Dictionary of Real Estate Appraisal, Second Edition. Chicago: The American Institute of Real Estate Appraisers, 1989. 480 BROADWAY, LYAWFIELD, MA. PAGE# 13 (617) 592-4700 LONG REAL ESTATE APPRAISERS IDENTIFICATION OF SUBJECT PROPERTY PROPERTY ADDRESS: 14 Franklin street Salem, Massachusetts 01970 OWNER(s) OF RECORD : Franklin Street Realty Trust Craig C. Burnham, Trustee LEGAL DESCRIPTION: Book 11472, Page 66 REGISTRY OF DEEDS: Essex County, South SALES HISTORY: Purchased by current owner for$150,000 September 10, 1992. ASSESSOR'S DESCRIPTION: Map 26, Lot 403 TOTAL ASSESSMENT: $152,400 COMMERCIAL TAX RATE: $34.23 F/Y 1996 TOTAL ANNUAL TAX: $5,216.65 STATE CLASSIFICATION: 390/Developable Land ZONING: B5 - Central Development LAND AREA: 21,500 square feet GROSS BUILDING AREA: 3,900 Square Feet+ 1,500 Square Foot Mezzanine 480 BROADWAY, LYNNHELD, MA. PAGE# 14 (617) 592-4700 LONG REAL ESTATE APPRAISERS LEGAL DESCRIPTION Book 11472, Page 66 �.�'. � •• .. .. 09!i i=05 Irat la;�r. .� I 5 ,WILLIAi4 H." I,IksKRr •of.4 Ss,Konc�ysuck]s,.,Road.-:Hamilton, Il a ty;' Massachusetts for,consideration:.paid.:,and.,:in--.full con=,i�'•;°:• `.:':. i '.aldaration ofxONE HUNDRED A.ND FIFTY THOUSAND-'AND 00d100 a: a c :.($160,000) -DOLLARS;'grants to.CRAIG G. BURNHAM,- TRUST EE•+DF THE s' FRANKLIH:� STREET;REALTY;TRUST-,UNDER DaCLARATION•OF;.TRUST„DATFiA.:,a;,-j SHPTEMERR 9, . 1992;recorded;herswith of: 26jpparborn,Strset,°aa;am,; BanBA",County,;;Masoachugottn..;with quitclaim covenanta;,the,;land.,in,;•L-i 8alete.eltuated,;ori the.Easterly, nIde.0f FranklIn_Street,.;and `,;, :boundad'aiid-described aa-,follows: x: ~ Jry L Y(; WESTERLY: by;Franklin Street .seventy-eight and twenty,!!elght_ hundredths. (7a.28) feats :•..NOPTHEASTRRLY: by.Lot -E on plan hereinafter.referred, xo on 1two•_t t courses, .forty-five (46) .foot and-two;;hunQred.;�Y; l -n fifty-three and nineteen'hundredtha' (263:1 . feet respectively; .k SOUTHEA3THRLYz by the North River, fifty- (60) feeti yand.r•: , J SOUTHWESTERLY: by land now or formerly .of. George:H.;_Griswold, Inc., two.,hundred al six and fort eaix y- y r.:sc hundredths' (260.46) feet. Contajn.inp 21,500. square feet and being shown as Lot ;'!A'l.-on,•p]sn. :. '02 ."Land .u. 3axes..J•: Ankete3l...Fre+nklin •Street, .,Salew,,rjan.,� wN S9S9°, r_corded with Easax.South Distr1ct ,Reg3stry;,of. Deeda, Book,.. 4537, Page 244. For Grantor's title see deed from Naumkeag Trust Company dated August 1G;='1979 rocorQedln -the Essox, South District Registry of Mt H 'needs at-Book 6622, Page 6e3:''' . r, IN WITNESS WHEREOF the parties have -set their hands and "seals this 9th day of September, 1992 >~ Wi lints M. _Linskey S+ 3 COMMONWEALTH OF MASSACHUSRTTS "✓7: �,:'?ixj ':� ,. I 33SEY, s$ September..9, •1992 Then personally appeared the above.-�naroed William M. Linskrdy j tea and acknowledged the foregoing 'instrument•.to be his free act and. a' ` deed. before me, - o r N bt^tery U liC u;. -:�c:, .: 1 �•.. � M.Y Co ssian' expires:�I s. iti27 i �`"'i.. �, � �.• �� o ram-" - � MICHA,EL J. ESCHELBACHER ,NOTARY PUBLIC MY For )0S1*n EX002 July 964 if,99 1 rEt 4 �•...�,• Long Real Estate Appraisers PAGE# 15 File 96020414 LONG REAL ESTATE APPRAISERS REGIONAUNEIGHBORHOOD ANALYSIS REGIONAL DESCRIPTION: The subject is located in the State of Massachusetts. Known as the "Bay State", Massachusetts is the location of the Cape Cod Peninsula and Cape Cod Bay. Massachusetts is 8,257 square miles in area and consists of 14 counties, with 346 municipalities. It is bordered by Rhode Island (S), Connecticut (S), New York(W), Vermont(N) and New Hampshire (N). To the east is the Atlantic Ocean. The major regions of the state include Greater Boston, North Shore, South Shore, Metro-West, Cape Cod, Southeastern Massachusetts, Central Massachusetts, Western Massachusetts and the Berkshires. Some of the largest cities include Boston, Worcester, Springfield, Brockton, Cambridge, Pittsfield, Lowell and Lawrence. The major regional and national highways accessing the commonwealth include Routes 90, 93, 495 and 95. The Greater Boston and Lawrence areas are the regional focus of this analysis. Boston, the capital of Massachusetts, is both the state's and the region's largest city. It is noted as the center of commerce, education, and health services. Boston is one of the nation's ten busiest historical landmarks and cultural centers. With its waterfront locale, Boston is also a commercial shipping port. Additional access is facilitated by major highways, Logan International Airport, and Amtrak rail service. Greater Boston is encircled by two highways, Routes 4 and 128, which act as employment centers and access routes. The area within these boundaries is the most intensely developed in the Commonwealth and is the center of commerce and industry. Route 128, named "America's Technology Highway", is renowned for its cluster of office, industrial, research and development parks. POPULATION DATA: The population of Massachusetts has shown steady growth over the past three decades as indicated by the following chart. AVERAGE ANNUAL HOUSEHOLDS 1,970 1,980 1,990 Massachusetts 1,759,558 2,032,717 2,278,982 Source 1970 1980 and 1990 U.S. Census 480 BROAD WAY, LYAWFIELD,MA. PAGE# 16 (617) 592-4700 LONG REAL ESTATE APPRAISERS REGIONAL EMPLOYMENT DATA: The employment and unemployment factors have a direct influence on property values and growth in the region. The Massachusetts economy in the mid 1980's had a surge in which employment growth, fueled by manufacturing, construction and computer industries, and supported by other industries, created a surge in the overall economy of the region. The end of the 1980's and the beginning of the 1990's (1987-1993) saw a decrease of these industries in the region and the nation as a whole. The decline in industry had a negative affect on employment figures, where the unemployment rate went over 8%, and as high as 10% in some areas. The manufacturing and construction industries were the key contributors to these job layoffs during this period. The current unemployment rate in the region is around 5.4%. This rate has been stable in recent months. REGIONAL ECONOMIC ANALYSIS: The Northeast, as well as the rest of the United States, has gone through a difficult time, due to poor economic conditions of the late 1980's to the early 1990's. Increased unemployment and loss of jobs in manufacturing and construction industries were a heavy burden on the region. However, most recently,job trends and construction trends indicate a resurgence in the region and the possibility of a recovery from the recent downturn in the economy is hoped for. The trends published by the state, indicates that the service sector is the strongest or highest growth industry in the area. Growth in retail trade industries, such as eating and drinking establishments, specialty retail stores, auto dealerships and food stores, lead this trend. 480 BROADWAY, LYNNFIELD, MA. PAGE# 17 (617) 592-4700 LONG REAL ESTATE APPRAISERS TOWN/NEIGHBORHOOD DESCRIPTION: Salem is located along the North Shore of Massachusetts. It is 16 miles northeast of Boston and is bordered by three communities: Peabody is to the west, Swampscott is to the south, and Marblehead is to the east. The City of Beverly is situated to the north, with the Danvers River running between the two communities. Salem is the urban center of southern Essex County. Salem is accessed from nearby Route 128 (east/west), and convenient from Route 1 (north/south). Major secondary Routes 114, 107, and 1A, and roadways (i.e. Washington Street, North Street, Highland Avenue, Lafayette Street and Canal Street) expedite local transit. The city's accessibility and proximity to Boston and major highways all contribute to its desirability for residents and local commerce. Population shifts over the last half century reflect the urban trend of development from the cities to the suburbs. Over several decades, the suburbs experienced several waves of migration to surrounding communities. Salem experienced tremendous growth during the turn of the century and peaked in 1935 at 42,833. The current population is 38,701, (1991 census), and is considered fully developed. City projections indicate limited growth(39,290)in population into the year 2000. Salem's real estate market has mirrored the rest of eastern Massachusetts. Tremendous appreciation and growth was evident during the last half of the 1980's. At the height of the market over 1,000 building permits were issued in one year. By 1988, the real estate market slowed. Due to budget constraints, pending tax changes, and the decline of the manufacturing, high technology and military industries, new business prospects were limited and investors were hesitant. Layoffs resulted and foreclosures increased. As a consequence, an oversupply of retail, office and residential property occurred. Building permit activity dropped by 40%by 1990, vacancies increased, and rents were reduced to attract new or maintain existing tenants. Commercial property values have declined as much as 30% during this period. Currently, some growth is evident in this practically fully developed community. Few new residential units were added in Fiscal Year 1994. Some activity, however, was evident in special use facilities. Recently, in 1995 a total of 23 single family dwelling permits were issued and an additional 12 attached single unit dwellings were built (including condominiums). This indicates a positive trend for the community as a whole when compared with permits over the previous 4 years. Also, over the years there were several new commercial properties developed; they include a restaurant, a food mart, a warehouse, a miniature golf course, a surgeon center at Salem Hospital, a nursing home, a small office building and a car wash. Much of the present activity, however, is attributed to additions and renovations in existing residential and commercial properties. The following is an illustrative table showing the number of single family housing permits and commercial use permits(buildings) from July 1989 through June 1995: 480 BROADWAY, LYNNFIELD,MA. PAGE# 18 (617) 592-4700 LONG REAL ESTATE APPRAISERS Year Residential Commercial 7/89-6/90 69 7 7/91-6/92 47 41 7/93-6/94 15 2 7/94-6/95 37 61 Total 168 19 Subject Location: The subject is located on Franklin Street, five lots down from the corner of North Street(route 114) and Franklin Street. Franklin Street runs along the North River between Beverly Harbor and North Street. The site is situated on the east side of Franklin Street with the eastern portion of the lot running along the North River's edge. Franklin Street is a lightly traveled street which feeds into North Street and accesses the northern section of the North Salem neighborhood . The neighborhood is defined by Orne Street to the west, route 114 to the south, Bridge Street to the east and Beverly Harbor to the north. The neighborhood is mixed use with a large commercial and industrial influence along North Street, Franklin Street and Bridge Street. There is a high density of residential uses located on side streets off of North Street, Franklin Street and Bridge Street. Franklin Street is a two way, asphalt paved roadway, heading north from North Street. Property uses surrounding the subject consist of a vacant lot to the south and an auto junk yard to the north. The rear of the subject is on the North River. The subject's locale is considered average for the property uses allowed by zoning. Its access to interstate highways is somewhat limited for a regional facility, but it has a satisfactory access for a local enterprise. Major highways, route 128, 95 and 1 are within a short drive. The general access routes in and out of the city are 107, 114 and IA. All public and private utilities are available in this area, including water, sewer, and above ground utility lines with electric and telephone service. From a review of the data, I anticipate the market for this type of property will remain somewhat stable for the next few years. Due to the supply, rentals have declined since the late 1980's. A few buildings appeared to be vacant. Absorption of vacant space is described as sluggish. Marketing time is typically nine to twelve months for this space. Vacancies were noted between 5-15% for commercial property, depending on condition, location and appeal. There is ongoing construction of a new bridge that will replace the Essex Bridge, which runs from Bridge Street into the City of Beverly. The new bridge will run along North River behind the subject (across the river) and plans are for the street to eventually start at Boston Street. The preliminary plan is for the bridge to open from the courthouse area and eventually the road 480 BROADWAY,, LYNNFIELD, MA. PAGE# 19 (617) 592-4700 LONG REAL ESTATE APPRAISERS will run down to Boston Street. It is anticipated that this will relieve traffic along Bridge Street and may improve appeal for the area in the long run. Bridge Street will still have direct access to Beverly via a high speed on ramp. There are also plans that include the subject's site for expansion of the park located to the north of the subject further down Franklin Street in hopes of improving visual appeal for the area. 480 BROADWAY, LYNNFIELD, MA. PAGE# 20 (6I7) 592-4700 LONG REAL ESTATE APPRAISERS REAL ESTATE TRENDS: The real estate market has not remained immune to the economy. After a long period of vigorous growth in which New England grew faster than the rest of the United States, the region suffered an economic downturn in the late 1980's to early 1990's. This is reflected in the number of vacancy and "For Sale" signs, and in the numerous foreclosures in the early 1990's. Among the factors influencing commercial real estate in Massachusetts, the state's banking is cited as a leading factor. With the banks not lending, business expansion and commercial real estate had come to a standstill. Further complicating the real estate market were the large inventories of bank owned and FDIC acquired properties, which were flooding an already troubled market. The shake-out in the high-tech industry is another contributing factor. Raytheon, Digital, DEC, Wang, Prime Computer, and Data General all have experienced major layoffs and placed large blocks of sublease space outside of Routes 128, 93 and 4 on the market. The most recent was the failure of Wang in nearby Lowell and the relocation of Raytheon offices from Andover's central business district to central offices along the interstate highway. With this and other influx of space on the market, consolidations have out-paced growth of existing companies. Investors are limited and hesitant. Most recently, the trend appears that space has started to be consumed. Thus, vacancies have dwindled. The large supply of foreclosure property resulted in a large number of property sales at prices well below their selling prices of prior years, during the "Boom" period. These sales and lower rentals resulted in an absorption of the large amount of available space, therefore, helping to stabilize the market for these properties. Smaller companies, 15,000 square feet or less, have lead the way towards this stability. Their growth is said to promise longer-term economic stability. Based on this information, this market is exhibiting signs of improvement and absorption is improving as the economy recovers. Currently, vacancy rates appear to be stable at approximately 5-15%within the area. Typical leases are from three to five years. The vacancy for the area is considered to remain stable for some time at this rate. Retail rental rates currently range from $6.00 to $12.00 per square foot, depending on the terms of the rent, condition, location and quality. These rates represent a decline over the recent past, however, with this decline, absorption is noted. The desirable properties with good management, parking and well maintained condition are in most demand. CONCLUSION: The national and regional economy, the town's location, accessibility, amenities, and neighborhood desirability were all analyzed. This market appears to have leveled off and bottomed out. Vacancies have diminished, but some are evident. Rent and value declines, combined with low interest rates, have spurred activity. Despite consolidation trends, 480 BROADWAY, LYNNFIELD, MA. PAGE# 21 (617) 592-4700 LONG REAL ESTATE APPRAISERS user-buyers and investors have entered the market. Large retail oriented companies have expanded and introduction of developing bio-tech industries is providing optimism for the economy and the real estate market. This market appears to be stabilizing. The City of Salem is a desirable community. It has good access to highways and local employment. The subject's locale close to Routes 114, IA and 128, is also a positive feature. The appraiser considers that this is a desirable market in the future for smaller retail and service sector businesses. The for owner occupants and tenants. 480 BROADWAY, LYNNFIELD,MA. PAGE# 22 (617) 592-4700 LONG REAL ESTATE APPRAISERS PART III - PROPERTY DATA 480 BROADWAY, LYNNFIELD,MA. PAGE# 23 (617) 592-4700 LONG REAL ESTATE APPRAISERS SITE DESCRIPTION AND ANALYSIS The subject site is located 5 lots down from the corner of North Street and Franklin Street. The lot is an irregular shaped parcel containing 21,500 square feet of land. The site has 78 feet of frontage on Franklin Street and is level at street grade. Overall, the site is completely usable. The majority is level at street grade. The site is fenced in at the front and on the sides. The rear of the site is on the North River, were there is a sea wall and a small dock area. A review of the FIRM Flood Insurance Map 250102-0001-B indicates that the subject is located in a zone A-2 area. Thus, any building on the site would have to conform to wetlands protection, conservation and flood requirements. i In conclusion, the site has an average locale for a commercial use. It has all the utilities and amenities available to similar use properties and is typical of the area. 21-E Issues: The appraiser is not an expert in determining the existence of hazardous waste. It should be noted that the subject's site abuts a car junk yard and that there is apparently a contaminated site across the street from the subject. It is recommended that the site be tested for hazardous water materials, however, the appraisal of the subject assumes that the site is "clean". The value estimated in this report is contingent upon the site not being contaminated by hazardous waste. 480 BROADWAY, LYNNFIELD,MA. PAGE# 24 (617) 592-4700 LONG REAL ESTATE APPRAISERS SITE PLAN ea _ I X. ep .. .tip .14 : l L � f 1 Long Real Estate Appraisers. PAGE# 25 File 96020414 L ONG REAL ESTATE APPRAISERS FLOOD ZONE MAP FIRM#250102-0001B Dated: August 5, 1985 i _ f r .7, {I CCQ 1 i Z T W rE-4, O E-- �- CO JCx v L J W C0 ai W w g � LL a O O c�.. CV Q U F CIO) LO G a w � a ME 0 THE T��Y S LU �v.^l� ¢ w GNTAG 4F! �:. -•,''.. �. 1/"'°.� .. �+7,'t�en�c ., �.Krir'm�+asva�wwrw.a.p.:..:�.i.- - -- - - - 1S N N1N vM N 5 M OWWOO W3_1vS in ^ ' 2 Y �6 1y rr�� ko `�''�.�SA`.�+4 1' a''�'a+ b 1 td•�3;�`l�wi�F'{,+�s J NOZ / �� Ys s rf: "A ,: ,,,, rb'�i yarf dx ,.* /�q 7N". ^ o � ��d �� $� \\ F�C/ 31 O° L .ma's. s s:! t\j t i�< •y�i � :..r fir.� � ,�1� :,y'v p x \ ".+� tr i I'�. �,�' b ��� � � f3��,�ra t y a a � .� + .✓_ - r 5SS'° c � � �y f ',-/\ �y ,, ♦.t 4^k'Ki.bra 1 +'�# 1 s 4 fix x d9 ,p11..`i fit}?.F7 . �- t`•A.n",' r '•��` t -t 71 � $ b -I n�ayx� f + !.: �' L r"•�i{'S "fit s r�r.a '11 _ u ?, i 11*y '• as, �j' 7 t�• 1r � f• �. J4 ��'t' ��"4 nN 5 r t: r t+FbJ .t' a ?rest. s-• ,�'� i. Mt{ pL �xY >� Yt�1 3t�,��� �y'y s�� liV sJ71VOZ •94 "y �lyv�6s11.aitC:�,r a .S. .Gnz.;.,r. �0 I Y o, Long Real Estate Appraisers. PAGE 4 26 File 96020414 LONG REAL ESTATE APPRAISERS PROPERTY HISTORY The subject property was purchased by the current owner in 1992 and has been in their possession since that time. The property was vacant land at the time of the purchase and has since been improved with an industrial style building. The building was not complete at the time of the inspection. The appraiser noted that there was no floor in the building and the building is basically a shell at this time. The appraiser also noted that the construction appears to be for industrial use, which is not allowed in this zone. According to the building inspector an occupancy permit for the property was not allowed, due to the apparent illegal use and non-conformance of zoning regulations. The total cost of construction was reported to be $24,000. The prior owner of the subject property owned the subject since 1979. PROPERTY TAXES AND ASSESSMENTS The subject is located in a B5 zone. The current tax rate for commercial property in Salem is, $34.23 per thousand. Since the subject is in a commercial zone, it is taxed as a commercial property at the commercial rate The following table indicates the tax assessment for the commercial use of the subject property. 1996 ASSESSMENT RATIOS Commercial Land $ 150,900 Improvements $ 1,500 Other N/A Total Value $152,400 Based on the assessment and tax rate, the subject's taxes for 1996 are figured as follows; $152,400 x $34.23 = $5,216.65 480 BROADWAY, LYNNFIELD,MA. PAGE# 27 (6I7) 592-4700 LONG REAL ESTATE APPRAISERS TAX HISTORY The following table illustrates the subject's assessment history, total taxes, the tax rates over the past three years and the taxes for 1996. TAX ASSESSMENT HISTORY TAX YEAR TAX TAX RATE TOTAL TAXES ASSESSMENT COMMERCIAL PAYABLE 1,993 $152,300 $28.31 $4,311.61 1,994 $152,300 $31.12 $4,739.59 1,995 $152,400 $33.46 $5,099.30 1,996 $152,400 $34.23 $5,216.65 The tax history indicates that rates have risen as assessments have remained stable. This has resulted in a relatively stable tax burden for the subject property with an increase of 17% from 1993 to 1996. It appears that the tax burden is increasing steadily, however, assessments are remaining stable. This is supporting by the tax assessments of similar properties in the neighborhood, which have had stable assessments over the recent years, in line with the subject. The assessment appears within reason and is supported by recent sales and assessment comparisons in the neighborhood. 480 BROAD WAY, LYNNFIELD,MA. PAGE# 28 (617) 592-4700 LONG REAL ESTATE APPRAISERS ZONING/LAND USE CONTROLS The City of Salem regulates development, within the requirements as designated by Zoning Bylaw Districts. These districts are established to act as authority over land uses;building size, height, bulk, and location; population density; traffic congestion; and parking, loading, landscaping and open space development. The subject is located in a "BY', Central Development zoning district. Permitted uses in this district are outlined in Article V, Section 5-2 of the Salem Zoning Ordinance, which is attached in the addenda of this report. The subject lot is not in use at this time, as the improvements do not conform to the zoning bylaws, according to the building inspector, W Leo Tremblay. Mr. Tremblay indicated that there would not be an occupancy permit issued for the property until appropriate floor plans are submitted showing use within regulations, as well as more than 50% of the property being used as office space. The building inspector also indicated that the intended use was to be office space with some parking and storage. The site meets minimum lot requirements for the intended uses for zoning, however, the site is not utilized legally at this time. Legal use would result in the improvements conforming to current zoning bylaws. In conclusion, the current improvements are non-conforming. 480 BROAD WAY, LYNNFIELD, MA. PAGE# 29 (617) 592-4700 LONG REAL ESTATE APPRAISERS ZONINGILAND USE MAP i 1 i _ ZONINGILAND USE MAP 141,1 ;,"Iffiry F �� e° t � ,y ' � 5'.—� - •� F-�trS.C'6Y (x�'a��kl'w� a t�S•s 1 T�_` A J ♦e r1: ti1VVVVp + ,� ..�� B ✓\ \�� _'pss /// 1.t W Pe�lt�ry F( ...A MW RC RESIDENTIAL CONSERVATION 1 - i- CM RI RESfDENTIAL ONE FAMILY i �.f ED R2 RESIDENTIAL TWO FAMILY I N' 1' r. L R3 RESIDENTIAL MULTI•FAM!LY O BI BUSINESS NEIGHBORHOOD 7: WA B2 BUSINESS HIGHWAY . ` C7 83 BUSINESS CENTRAL I 'Ia e�-9 i' 11�_' �.- W B4 WHOLESALE a AUTOMOTIV (1 _ ., C_-1 85 CENTRAL DEVELOPMENT MR " INDUSTRIAL r .. I "BPD BU INESS PARK DEVE—L—OP—ME ION NDARIES k- L I q rJF E Li V L7 / 177 ESTABLISHES -- PROPERTY LINES DISTRICTS.SAID EM SWAMP kNCROACHMENT LIMITS ERED AS OVER- (SEE ITEM 47.No.20e,1969 AMEN .) 1 ' 1 ON THIS MWAP. 0 ENTRAI CE CORRIDOR OVERLAY AND AREAS OF M ATED MARCji IS, -Y CLERK. II - k t Long Real Estate Appraisers J� File 98020414 � I rrFnln Long Real Estate Appraisers. PAGE T 30 File 96020414 LONG REAL ESTATE APPRAISERS DESCRIPTION OF IMPROVEMENTS BUILDING TYPE: Commercial Year Built: 1995 Stories: 2 stories Building Area: 3,900 Square Feet+ 1,500 Square Foot Mezzanine Construction Quality Foundation: Concrete footings, with no floor at the time of inspection Structure/Frame: Metal/Steel Frame Exterior Finish: Metal Roof Cover: Metal Insulation: Walls Interior Finishes: Ceilings Metal Exposed Joist Walls Exposed Insulation and Metal Siding Floors Dirt Floor/No Floor Installed Doors Not installed Mechanical/Utilities: Electrical Incomplete Heating&A/C Incomplete Water Public Sewer Public Fire/Security Incomplete Rent Roll: The subject was vacant at the time of inspection. Comments: The improvements consist of a shell for an industrial building. There is an unfinished mezzanine area. The subfloor foundation is not installed at this time. The building is basically a shell and is not considered functional at this time. 480 BROADWAY, LYNNFIELD, MA. PAGE# 31 (617) 592-4700 LONG REAL ESTATE APPRAISERS PART IV - ANALYSIS AND CONCLUSIONS 480 BROADWAY, LYNNFIELD, MA. PAGE# 32 (617) 592-4700 LONG REAL ESTATE APPRAISERS HIGHEST AND BEST USE The Appraisal Institute defines Highest and Best Use as the reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible and that results in the highest value. The four criteria the highest and best use must meet are: the legal permissibility, physical possibility, financial feasibility and maximum profitability. I. Legal Permissibility: Uses that are permitted under existing zoning and other land use regulations and controls or under an existing deed restriction that may apply to the property. 2. Physical Possibility: Uses that are physically possible on the subject's site given the physical characteristics revealed by the property analysis. Only those uses that are legally permissible are considered. 3. Financial Feasibility: Uses that have met the first two tests are further analyzed to determine whether they produce a net return to the owner, or a positive net present value given the characteristics revealed by market, neighborhood, and property analysis. All uses expected to yield a positive return are regarded as financially feasible. 4. Maximum Profitability: Of those uses that meet the financially feasible, physically possible and legally permissible criteria, one use will provide the highest return on the investment, resulting in the highest property value. This use is determined as the Highest and Best Use of the property. The highest and best use analysis investigates the potential of the property as though vacant, and as improved. First, the site is considered as if vacant and available to be put to its highest and best use. The present use of a site may not be the highest and best use. The building may contribute value to the land or the land may be suitable for a greater, or more intense use. Second, the property is considered as currently improved. This analyzes whether the property, as improved, contributes value to the site. In both cases, the four criteria noted above are investigated. 480 BROADWAY, LYNNFIELD, MA. PAGE# 33 (617) 592-4700 LONG REAL ESTATE APPRAISERS HIGHEST AND BEST USE -AS VACANT The legally permissible uses are established by the City of Salem. Development is strictly governed to conform to zoning and building standards. The subject is located in a B5 Central' Development zone. The requirements for this district are cited in the addenda section of this report. The permitted uses are geared to support business development and create a business atmosphere supportive of the nearby downtown area. Zoning restrictions also regulate the intensity of development of a site. These requirements also are noted in the addenda section of this report. The subject is a legal site and, therefore, is considered to be developable land if vacant. Physically Possible uses are defined by zoning requirements. The subject's site contains 21,500 square feet, with 78 feet of frontage. The site does conform to the minimum lot requirements allowing development and offers the necessary utility to develop the site. Thus, it is physically possible. Financial feasibili1y for development of the site may be possible at this time. However, since there is similar use property available for cost that is less than development it is not likely the site would be developed in the near future if vacant. The use is not financially feasible. Therefore, it is not maximally productive. The highest and, best use would be to remain vacant until development is feasible. However, it should be noted that an owner occupant may desire such a site and the feasibility of development is not totally beyond reason. AS IMPROVED The lot is improved, however, the building is not legally permissible, due to lack of conformance to current zoning regulations. The building exists, therefore, the improvements are physically possible. Physical parameters are most conducive for commercial uses. The current use is not financially feasible, as the improvements do not generate any income and are vacant. Alternative uses are possible, however, they are not considered feasible, due to conversion costs involved. As only one use is feasible, it is also not maximally productive. The legally permissible, physically possible, financially feasible, and maximally productive uses are analyzed for the site "as vacant" and "as improved". The improvements presently do not 480 BROADWAY, LYNNFIELD, MA. PAGE# 34 (617) 592-4700 LONG REAL ESTATE APPRAISERS contribute value to the conforming lot, due to lack of conformance with zoning. The improvements would have to be altered to conform to zoning. Presently, the improvements are of little value, due to lack of finish of the shell. Consequently, the highest and best use of the site is considered to be to remain vacant as an interim use until development becomes feasible and the subject's improvements are completed in a legal manner that conforms to zoning regulations. 480 BROADWAY, LYAWFIELD,MA. PAGE#-35 (617) 592-4700 LONG REAL ESTATE APPRAISERS THE VALUATION PROCESS The valuation process involves the collection and analysis of market data related to the subject property. The valuation process typically encompasses three approaches to value: a cost approach, a sales comparison approach, and an income capitalization approach. The cost approach involves analyzing the cost to reproduce the current improvements. Deducting for accrued depreciation and adding an estimated site value, offers an indication of market value. The principle of substitution is the essence of this approach. The principle affirms that no prudent investor would pay more for a property than the amount for which the site can be acquired and for which improvements, that have equal desirability and utility, can be constructed, without undue delay. Consequently, the depreciated reproduction cost on the date of the appraisal, plus the site value, provides a measure for which an already improved property may be judged. When the subject is an income-producing property, the appraiser can estimate its economic worth by the income capitalization approach. This value provides an estimate of the present worth of future benefits of ownership. A value may be estimated by calculating the present worth of the potential income stream, and then, adding an estimate of the value of reversion. This process is replicated in a stable market by capitalizing the income stream with the mortgage equity band-of-investment technique, utilizing a direct capitalization of the anticipated annual net cash flows prior to debt service. The sales comparison approach is a technique that requires the comparison of similar properties. Adjustments are made for noted differences, both superior and inferior, to arrive at an indicated property value. Income streams, appeal, structure, etc., are closely matched. The resultant of this process produces value indicators: value per square foot of building area, land area, per leasable unit, etc., which are utilized to support a value estimate for the subject. All of these approaches are interrelated; however, they may or may not apply to the property appraised. Each is discussed in detail in the following sections of this report. 480 BROADWAY, LYNNFIELD,MA. PAGE# 36 (617) 592-4700 LONG REAL ESTATE APPRAISERS THE COST APPROACH In considering the use of the cost approach, a number of factors were reviewed. First, the quality of a reasonable replacement cost estimate for the structure was considered, as well as the estimate of accrued depreciation. This process is most reliable when the appraised property is of new construction and the improvements represent the highest and best use of the site. When this is not the case, developing a reproduction cost is highly subjective, as well as estimating the forms and amounts of accrued depreciation. The second factor in the cost approach analysis is the development of a reasonable estimate of land value. A land value may be developed through a review of recent sales of similarly zoned parcels, or the extraction of the land value contribution from recent sales of improved properties. On the following pages are several land sales of the many investigated for this report. No sale was knowingly omitted that would have an affect on the value of the subject property. The cost approach is developed to determine the value of the improvements made to the site. 480 BROADWAY, LYNNFIELD, MA. PAGE# 37 (617) 592-4700 LONG REAL ESTATE APPRAISERS LAND SALE COMPARISON#1 LOCATION: 7 Franklin Street, Salem MA DATE OF SALE: 10/94 SALE PRICE: $120,000 GRANTOR: National Grand Bank GRANTEE: Contract Engineering RECORDING-DATA: Book 12792 page 267 MARKETING TIME: 3 months+/- PREVIOUS SALES HISTORY: No sales in past three years PROPERTY RIGHTS: Fee Simple FINANCING: Bank Financing @ 96% loan to value CONDITIONS OF SALE: None, Conventional VERIFICATION: Buyer John Galoe ASSESSOR'S MAP-LOT- 26-374 AS SES SMENT/YEAR: $133,700/1996 SITE DATA: 17,097 square feet UTILITIES: All Municipal Utilities ZONING: B-5/Legal IMPROVEMENTS: The building was demolished by the buyer at a cost of $10,000. Therefore, the adjusted sales price is $130,000. OCCUPANCY: Vacant at time of sale, presently vacant land PRICE PER SQUARE FOOT: $7.60* *The value per square foot is based on a sales price of$120,000, plus the $10,000 for demolision. 480 BROADWAY, LYNNFIELD, MA. PAGE# 38 (617) 592-4700 LONG REAL ESTATE APPRAISERS LAND SALE COMPARISON#2 LOCATION: 130-40 Cabot Street, Beverly, MA DATE OF SALE: 12/95 SALE PRICE: $100,000 GRANTOR: Sams Cleaners GRANTEE: 130-140 Cabot Street RT RECORDING DATA: Book 13314 page 564 MARKETING TIME: Not marketed, owner bought from owner of building that is down the street. PREVIOUS SALES HISTORY: No sales in past three years PROPERTY RIGHTS: Fee Simple FINANCING: Conventional CONDITIONS OF SALE: None, noted VERIFICATION: Buyer Joe Amore ASSESSOR'S MAP-LOT: 5-163 AS SES SMENT/YEAR: $112,500/1996 SITE DATA: 13,420 square feet UTILITIES: All Municipal Utilities ZONING: CC-Commercial Zone IMPROVEMENTS: This is the sale of a vacant lot used as a parking lot at the time of the sale. The land is potentially buildable according to zoning regulations , which requires 6,000 square foot lots, with 50 feet of frontage. OCCUPANCY: Vacant at time of sale, presently vacant land used as a parking lot. PRICE PER SQUARE FOOT: $7.45 480 BROADWAY, LYNNFIELD,AM. PAGE# 39 (617) 592-4700 LONG REAL ESTATE APPRAISERS LAND SALE COMPARISON#3 LOCATION: 56 Sanderson Ave, Lynn, MA DATE OF SALE. 6/95 I SALE PRICE: $129,500 GRANTOR: 56 Sanderson Ave Nominee Realty Trust GRANTEE: Landscape Realty Trust RECORDING DATA: Book 13075 page 1 MARKETING TEAE: Unknown PREVIOUS SALES HISTORY: No sales in past three years PROPERTY RIGHTS: Fee Simple FINANCING: Conventional CONDITIONS OF SALE: None, noted VERIFICATION: AssessorlB & T ASSESSOR'S MAP-LOT: 535-37-1 ASSESSMENT/YEAR: $116,300/1995 SITE DATA: 31,512 square feet UTILITIES: All Municipal Utilities ZONING: Light Industrial IMPROVEMENTS: This is the sale of a vacant site developable for industrial use. The location is just off of route 129 in Lynn. The site is level and rectangular with 166 feet of frontage. The site is presently being developed. OCCUPANCY: Vacant at time of sale. PRICE PER SQUARE FOOT: $4.11 480 BROADWAY, LYNNFIELD,MA. PAGE# 40 (617) 592-4700 LONG REAL ESTATE APPRAISERS LAND SALE COMPARISON#4 LOCATION: 80-90 Merrimac Street, Newburyport, MA DATE OF SALE: 11/92 SALE PRICE: $500,000 GRANTOR: Walrum Inc. (North Mark Bank) GRANTEE: 869 Merrimac Street Nominee Trust RECORDING DATA: Book 11622, Page 230 MARKETING TIME: Unknown PREVIOUS SALES HISTORY: No sales in past three years PROPERTY RIGHTS: Fee Simple FINANCING: Conventional CONDITIONS OF SALE: None, noted VERIFICATION: Assessors/County Comps/Appraiser Files ASSESSOR'S MAP-LOT: 48-7 AS SES SMENT/YEAR: $484,100 SITE DATA: 63,035 square feet UTILITIES: All Municipal Utilities ZONING: Commercial IMPROVEMENTS: This is a full service boat yard located in Newburyport. There were no physical improvements and the site was primarily unpaved. The location is used for boat storage. No prior sales were noted in the past three years. PRICE PER SQUARE FOOT: $7.93 480 BROADWAY, LYNNFIELD, MA. PAGE# 41 (617) 592-4700 LONG REAL ESTATE APPRAISERS LAND SALE COMPARISON 45 LOCATION: 58 River Street, Danvers, MA DATE OF SALE: 8/93 SALE PRICE: $650,000 GRANTOR: Thomas E. Cargill, III GRANTEE: Harborview Property, Inc. RECORDING DATA: Book 12058 page 299 MARKETING TIME: Unknown PREVIOUS SALES HISTORY: No sales in past three years PROPERTY RIGHTS: Fee Simple FINANCING: Conventional CONDITIONS OF SALE: None, noted VERIFICATION: Assessors/County Comps/Appraiser Files ASSESSOR'S MAP-LOT: 60-9 ASSESSMENT/YEAR: $515,300/1996 SITE DATA: 69,365 square feet UTILITIES: All Municipal Utilities ZONING: Residential IMPROVEMENTS: This is a combination marina and boat yard located on Danvers River. The sale included two lots of land, which totaled 69,365 square feet. The physical improvements consisted of three small wood frame structures, which totaled 650 square feet. There is a total of 1,500 linear feet of dock space with 50 boat slips. No prior sales were noted in the past three years. PRICE PER SQUARE FOOT: $9.37 480 BROADWAY, LYNNFIELD,AM. PAGE# 42 (617) 592-4700 LONG REAL ESTATE APPRAISERS Land Sales Analysis: The sales indicated a range of value from $5.97 per square foot to $8.59 per square foot, after adjustments. Comparables 1 and 2 are given the most weight, due to least overall adjustments, as well as the most similar location for sale 1, which is across the street. Comparable 1 is located across the street from the subject. The owner indicated that they are going before the board in the near future to apply for a permit to construct an 8,100 square foot building on this site. The appraiser considered an adjustment for location, due to the subject's location on the water, however, comparable 1 is closer to the corner where there is more street traffic. Thus, the benefits of each seemed to outweigh any advantage. Comparable 2 is a developable piece of land on Cabot Street in Beverly. Cabot Street is a busy street that runs straight through the center of Beverly. The higher traffic counts for this location support an adjustment of 10% for superior location. Comparables 4 and 5 are sales of river front properties. Comparable sale 5 is most similar to the subject, due to the limited improvements on the land at the time of the sale. Sale 5 was adjusted for the value of the improvements at -10%. Both sales 4 and 5 had superior locations and were given less weight, due to their being older sales and the improvements of sale 5. Based on the adjusted value per square foot of sales 1 and 2, with support from sale 4, the estimated value range of the subject's site is between $5.97 - 7.10 per square foot. This indicates a total value range of$128,355 - 152,650. The appraiser estimates the value, with the most support from sale 1, due to closest location to the subject. The appraiser places a value on the land at $150,000. LAND VALUE: $150,000 480 BROAD WAY, LYNNFIELD,MA. PAGE# 43 (617) 592-4700 LONG REAL ESTATE APPRAISERS COST APPROACH ESTIMATE COST APPROACH Size 3900 Base S ft Cost $17.13 Refined S ft Cost $17.13 Local Cost Multi iler 1 Final Sqft Cost $17.13 Area 3900 Total $66,807.00 Depreciation Physical 0 External 0 Functional -50.00% Total -50.00% TOTAL COST $66,807.00 DEPRECIATION $33,403.50 VALUE $33,403.50 The value of the improvements are estimated at $33,403.50. This value added to the value of the land results in the total value via the cost approach. The calculation is as follows: Land Value+Building= Total Value $150,000 +33,403.50 = $183,403.50 The appraiser estimates the value of the subject to be: ONE HUNDRED EIGHTY THREE THOUSAND DOLLARS $1831000.00 480 BROADWAY,, LYNNFIELD, MA. PAGE# 44 (617) 592-4700 LONG REAL ESTATE APPRAISERS THE SALES COMPARISON APPROACH The sales comparison approach is a valuation method that involves the investigation of market activity in property and uses similar to the subject. In this appraisal, data that included sales, listings, and lease information was reviewed. The research attempted to identify property with similar improvements. This technique identifies market derived data for the purpose of reflecting the actual thought process of buyers and sellers in the marketplace. The appraiser has utilized the sales comparison approach within the cost approach to arrive at a land value for the subject property, however, the appraiser has not utilized the sales comparison approach for determining the value of the improvements, due to the unfinished nature of the improvement. The appraiser determined that this approach would be unreliable, due to the lack of unfinished building sales within the market area. THE INCOME APPROACH The income approach is most applicable when the subject is an income producing property or an investment property. Since the subject is not legal to occupy in its current configuration the property can not be rented, thus, this approach was considered to be_of little use in this analysis. 480 BROADWAY, LYAWFIELD,MA. PAGE# 45 (617) 592-4700 LONG REAL ESTATE APPRAISERS RECONCILIATION AND FINAL VALUE ESTIMATE In this appraisal I have examined three approaches to value: a cost approach, an income capitalization approach and a sales comparison approach. The sales comparison approach and the income approach were not developed in this appraisal, due to the fact that the subject is not an income producing property and the subject is an unfinished improvement. The lack of ground leases and the lack of rentable area in the subject, due to the incomplete nature of the improvements limits these approaches and deems it unreasonable to utilize them. The sales comparison approach was utilized to find similar land sales within the cost approach. This resulted in a land value for the subject. The appraiser then estimated the value of the unfinished improvements using cost figures from Marshall and Swift cost figures and local construction cost figures. The land value was then added to the value of the improvements to determine the market value of the subject property. In accordance with the findings and with greatest emphasis placed on the cost approach to value, I estimate the market value of the real estate identified herein, as 14 Franklin Street, Salem, Massachusetts, as of May 24, 1996 to be: ONE HUNDRED SEVENTY FIVE THOUSAND DOLLARS - $175.000.00 APPRAISED BY; David Y. Sakurai Mass. Certified General R.E. Appraiser Lic. 1321 REVIEWED BY,- William Long,MIR.A Mass. Certified General R.E. Appraiser Lic. 1404 480 BROAD WAY, LYNNFIELD,MA. PAGE# 46 (617) 592-4700 LONG REAL ESTATE APPRAISERS CERTIFICATION OF THE APPRAISER I certify that, to the best of my knowledge and belief: the statements of fact contained in this report are true and correct; the reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions, and conclusions; I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved; my compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event; the appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan; my analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Uniform Standards of Professional Appraisal Practice; a personal inspection of the property that is the subject of this report was performed by David J. Sakurai and William Long. and, unless previously stated, no one provided significant professional assistance to the person signing this report. APPRAISED BY; David J. Sakurai Mass. Certified General R.E. Appraiser Lic. 1321 REVIEWED BY; William Long, MKA Mass. Certified General R.E. Appraiser Lic. 1404 480 BROADWAY, LYAWFIELD, MA. PAGE# 47 (617) 592-4700 LONG REAL ESTATE APPRAISERS PART V - EXHIBITS AND ADDENDA 480 BROADWAY, LYNNFIELD, MA- PAGE# 48 (617) 592-4700 LONG REAL ESTATE APPRAISERS QUALIFICATIONS OF APPRAISER William Long Jr.,M.R.A. Experience Fee appraiser since 1966 Active in Real Estate since 1960 Speculated in land, new and old construction 1962/80 Owned and operated 100 rental units in greater Lynn area 1965/80 Property manager for local bank, 1977/79 Manager Real Estate Brokerage office 1964/70 License and Certifications License with the Commonwealth of Massachusetts as a Certified General Real Estate Appraiser, Lic. #1404. M.R.A. Designation with Massachusetts Board of Real Estate Appraisers since 1978 Real Estate license 1960 Builders license in Lynn, MA since 1970 Education Completed College requirements in Real Estate Appraisals 1 and 2 at Bentley College, Waltham MA, in 1977 and 1978. Massachusetts Board of Real Estate Appraisers Courses; Professional Appraisal Practice and Conduct, in Nov. 1990. Real Estate II, income property, in Aug. 1992. Appraisal Institute Courses; Residential course 102 case study, completed/passed 11/91 Income Real Estate course 202 case study, completed/passed 10/91 Also attended various courses and seminars on Real Estate Appraising with the Society of Real Estate Appraisers Professional & Service Memberships Massachusetts Board of Real Estate Appraisers, MRA Designation. Appraisal Institute (Candidate for Designation). President of Lynnfield Rotary Club 1987 to 1988. 480 BROADWAY, LYNNFIELD,MA. PAGE# 49 (617) 592-4700 LONG REAL ESTATE APPRAISERS Qualified for Expert Court Testimony Cambridge Probate Court, Cambridge, MA Cambridge Superior Court, Cambridge, MA - Lawrence Superior Court, Lawrence, MA Salem Superior Court, Salem, MA Salem Probate Court, Salem, MA Appellate Tax Board, Boston, MA Rochester County, Superior Court, Exeter New Hampshire Consultant for; The City of Lynn in the valuation of all commercial, and industrial real estate, and residential apartment complexes in excess of 2000 parcels. Established land base value for all non-residential land parcels, improved, and or vacant, for the entire city. The results of the analysis are used in establishing the assessed valuations for 1987-1991 real estate taxes, and was approved by Department of Revenue for the State of Massachusetts. Appraisal Purpose All types of residential, commercial, industrial real estate. Some uses being multi-million dollar industrial complexes, large tracts of residential, industrial, and commercial land, mariners, condominium conversions, multi-use storage, tenant complexes, and inner city complexes. The above types of assignments ranged in scope of multi page narrative reports to Freddie Mac/Fannie Mae form appraisals report. i 480 BROADWAY, LYNNFIELD 617-592-4700 LONG REAL ESTATE APPRAISERS Additional Appraisers of Long Real Estate Appraisers The following is a list of appraisers that are associated withLong Real Estate Appraisers on an ongoing relationship. Peter Daniels R.A. of Melrose, MA License with the Commonwealth of Massachusetts as a Certified General R.E. Appraiser, Lie. #1037 Active in real estate since 1976. Member of Massachusetts Real Estate Board of Appraisers. David Sakuri of Swampscott, MA License with the Commonwealth of Massachusetts as a Certified General R.E. Appraiser, Lie. #1321 Active in real estate since 1988. James E. Yeaton of Somerville, MA License with the Commonwealth of Massachusetts as a Certified Residential R.E. Appraiser, Lie. #4298 Active in real estate since 1981. Steven M. Long of Methuen, MA License with the Commonwealth of Massachusetts as a State Licensed Real Estate Appraiser Lie. #3827 Active in real estate since 1991. All appraisal reports reviewed by, William J. Long Jr., MR.A., Certified General R.E. Appraiser, Lie# 1404. 480 BROADWAY, LYNNFIELD 617-592-4700 LONG REAL ESTATE APPRAISERS APPRAISAL CLIENTS Eastern Bank East Boston Savings Bank Salem, Lynn, Malden, MA East Boston, MA F.D.I.C. City of Salem Planning Dept. Franklin, Westborough, MA Salem, MA Heritage Cooperative Bank Forward Financial Company Salem, MA Northboro, MA Lynn Community Development Prudential Relocation Management Lynn, MA MI, TX, CT, IL,NY Commonwealth of Massachusetts Saugus Cooperative Bank Probate Trial Court, Salem, MA Saugus, MA Woburn National Bank P.H.A. Home Equity Woburn, MA Danbury, CT City of Lynn Assessors Dept. The Savings Bank Lynn, MA Wakefield, MA Lynn Office of E.D.I.C. Greater Lynn M.H.R.A. Lynn, MA Lynn, MA Family& Children's Services Everett Savings Bank Lynn, MA Everett, MA Salem Housing Authority Brotherhood Credit Union Salem, MA Lynn, MA ' Warren Five Cents Savings Bank Shawmut Bank Swampscott, MA Boston, MA Saint Jean's Credit Union Century North Shore Bank Lynn, MA Lynn, MA 480 BROADWAY, LYNNFIELD 617-592-4700 LONG REAL ESTATE APPRAISERS QUALIFICATIONS OF APPRAISER DAVE) J. SAKURAI PROFESSIONAL EXPERIENCE: 1989 to Present: Long Real Estate Appraisers,Lynnfield,MA Position: Staff Appraiser/Sub-Contract Experience: Assisted in and perofrmed all forms of real estate appraisal services, including the appraisal of commercial and industrial properties in Massachusetts and New Hampshire. Appraisal assignments included multi tenanted residential, commercial and industrial properties of all sizes. 1995 to 1996: Remis Associates,Inc.Marblehead,MA Position: Staff Appraiser Experience: Appraisal of commercial and residential real estate. Appraised large residential subdivisions exceeding 10 lots, commercial/industrial properties in excess of 40,000 square feet and land to be developed for an Olympic training facility for ice skating. 1987 to 1989: Kensington Appraisals,Hampton,NH Position: Staff Appraiser/Sub-Contract Experience: Appraisal of commercial and residential real estate. Including real estate appraisals of large residential subdivisions. Developed office policies for commercial real estate appraisal assignments, as well as assisted in the development of proper inspection procedures for residential and commercial appraisal assignments. EDUCATION: Mass Board of Real Estate Appraisers 5/4/96 Attacking&Defending and Appraisal in Litigation/Seminar 4/18/96 Uniform Standards of Professional Appraisal Practice/Update Seminar 4/9/96 Commercial Appraisal Problem Soh ing/Seminar 3/19/96 Commercial Appraisal Review/Review Appraising Seminar 3/13/96 Residential Appraisal Trends 1/24/96 Discounted Cash Flow Analysis/Seminar Appraisal Institute I 2/1/92-5/16/92 Capitalization Theory&Techniques Parts A&B 9/16/91 Basic Valuation 6/15/91 Principals of Appraisal 4/16/91 Uniform Standards of Professional Appraisal Practice Berklee College,Boston.MA 1979-1983 Bachelors Degree Computer Learning.Center, Somerville,MA Present Presently maintaining a 3.0 grade point average in computer programming Visual Basic, C, C++,UNIX,DOS and Windows Applications. License Massachusetts Certified General Real Estate Appraiser License#1321 New Hampshire Certified Residential Appraiser License#365 480 BROADTJ74Y, LYNNFIELD,AM (617) 5924700 LONG REAL ESTATE APPRAISERS COMPARABLE SALES ADJUSTMENT GRID EO co cy) CD LO � c00nCac`nornrn � �� � o M � 1 Aom ,� 00 0 O O cfJ N w o N o fnor) o O ® O 3 0 00 0 CD o [C) i to CcOo O O y, [OC3 N 00 iB c0 O o o O CO r tico z CD 0 ( ai Z oo o o N ® OO o W �crnr� co �' CQ 35 try O Ca � C) � 0 0ell4, , CD U2 �C73 mo o Z o N LO cfl r•Ar, _ I i~ � �cc a) 0 � w o w ID a� O 1 U +6IS o Long Real Estate Appraisers. PAGE# 50 File 96020414 LONG REAL ESTATE APPRAISERS COMPARABLE SALES LOCATION MAPS yl 2. -3 EN ylc R KP T > x z 0 0 GLOUC TER x m E E S W M G BqVER REA ING LYNNFIELO EABODX0 x SALEiM A F ARBLEHEAD WO RN UGUS COTT W CH TER MEL 0 E x x HALOE rRadius: 13.76 miles 4 994 Courtesy of: (617) 592-4700 1 W-7 FRANKLIN ST 2 130 CABOT ST 3 55 SANDERSON AV 4 185 LORING AV 5 90 MERRIMAC ST 6 58 RIVER ST 7 821 LYNNWAY ST Long Real Estate Appraisers. PAGE# 51 File 96020414 LONG REAL ESTATE APPRAISERS COMPARABLE SALES PLOT PLANS 480 BROADWAY, LYNNFIELD, MA. PAGE# 52 (617) 592-4700 {r��l..t ram. ~�i'r`'' r-. S 7 �kCS+'a( �' s+�- ;� -w� `.`n' t \ ,'};"•ya': ram`J F� `_ � t-. • Y - a !a •`.ilk" - Y� x 3: t \ • ' k ' s x fj t� p / Q 5Y2 • . ♦ �� _.. ��C)•. tea_ 9� � 0 `,`1, �. •`C1� � l-s- � 1► �' rrA� `" �i, g ,� .�J- •� �:�� �.� � �. 4/lye G :'��,,;,�; ..,, rye, ., /� \ °'�. .�� ��-. h ��°�� � �1•� � � c410 �• A .94 ® � � oj ? Q W a 5'00 47t �p s th f - 'tf °�,,,'' � t d J ,01 9 42!2. . o 11I•9' ul ' tJ ro 60t 167 IV r o 07 CD w0 7,9 , dy ,,. .� N raj t _ ( Jx` © ,IL of 1 I cp 01 st 6.1.' 4 op Fm ��'� � K�. ,- � Div _ .W � •�4 �� � .: : , � - 67 i .t♦ 'i e �_•0zj �_.a �stf�s,. Ti '� �_�� a /iA .'ir � c o �r r'�f.+ars". - .•^` it Kin V S '1, e +�w�y T , .' ,E g - V -.t oU4V94 CD r CA 00, w I a O CD m _ � O OW N C,T^1 .V' C I `� (31 :a � o rl 1 LO of tNrs O inCD --l"ll `n I N OLn 1 (IDo O tr sUl 1a 1 ,'A O ()AO ul co Iw _ 0 I Co Nl N Ln Jco I I w — I O ' l C tm Q 1ow La cn � i N., .. C� 6_ p '.-.. A � 4 3� ti Yi�y•�L.J.l� - a - - • t$11 i��YZ"Pow 7 y A ye vti r ' �r-_^--_..:...-.�:...__.._..._.__—____: ____�•__-.-..�._,__.._r_ __.....-'"._.__:sue..._.: , U.S. ROUTE ONE. 1 47 GD cn 10 :n. 00 74 ' N J� ` 1tf0 • . 14 qr d s tzyF .'� x r +4 a F w �,a •,,w 1.¢c`fir S H .— OF 'i• �r. Ao mt -1: 11M W•pxirvl�l,. :-fir, J. .'t•. r.70 '�fi. - •�t� •pY•�KKM.• :�{•• :.t.y:.•iW J J�..* i' �11 4 :i:. S t• �r <�+y r. t ..•r. irl�._'S'•%:y:y,�. ' 1 7p022' 1-• f • 1 r u �l •.'.:O': �ry� -�,>T..i :! 91::,� � r.}'}`;.: _ •� 'L�'°•,I.�., s•t; ..�•.x..,•.•ft,S.��i�• .�� 1 ::y� 'Y': r.r:i::`:t,. r C.y� ..Q°.�ri'...':©'•'� �JopOp•.�� _ -i' F l C• .1I Y� I"r`• •ti• r• '�D. 'y^�.0 a .ti ".;: •i�'+'1.Lt {�i ;�' :-'��:.. �1.• :.rl.•!•tia.' '+�•:• ,.5�� �!'. 'F:; �C•q)ii.: :`t:. ,+ .ry d.,�tY,,�":;.�'''�' �;:.• ,,y;�"•a.. '�'3.N•..,. t 1.,.,..H.r �'Y A=CSSMS'YAI,,+Fi::vei�rj'.•t„•'��: D A-N V b,R t r LONG IEAL ESTATE APPRAISERS PHOTO COMPARABLE 1 PHOTO 4 �+ Y i LONG REAL ESTATE APPRAISERS PHOTO 1 i � a5 4 � PHOTO H , , COMPARABLE • • I yr • _ cr C I54 LONG REAL ESTATE APPRAISERS PHOTO COMPARABLE 5 480 BROADWAY, LYNNFIELD, MA. PAGE# 55 (617) 592-4700 LONG REAL ESTATE APPRAISERS ZONING EXCERPTS 480 BROADWAY, LYAWFIELD, MA. PAGE# 56 (617) 592-4700 I DENSITY REGULATIONS' SALEH ZONING:ORDITTANGE, Art.VI,§6=4- TABLE III B-5 DENSITY REGULATIONS Residential'Uses or Residential Uses or� Nonresi- Nonresi- Combined Residen- Combined Residen-' dential dential tial and Nonresi= tial and Nonresi Uses-Existing Uses-New dential Uses- dential Uses-` Building Construction Existing Building' New Construction" Minimum lot area(square 2,000 2,000 2,000 2,000.1 feet) Minimum lot area per — — — 500" dwelling unit (square Minimum lot width (feet) 30 30 30 30 Maximum lot coverage by 100 50 i00 50 all buildings (percent) s Minimum width of side — 5 — 5 yard (feet) Maximum height of build 70 70 70 70 ings (feet) Maximuni height of build- 6 6 6 6 ings (stories) Ala-xiniun:helg'A of ier_ces 10 10 6 6 and bordering iva lls 11inimum distance be- Distance equal to the height of the taller buildingz tween buildings if;.pore than oile (1) on a lot Floor area ratio 6:1 3:13 6:1 3:1 1 Where residential use comprises twenty-five (25) percent or less of the total building area, the regulations for nonresidential uses shall apply. 2 This distance -may be reduced to a distance which is sufficient to provide adequate light, air and access, subject to the approval of the planning board. There shall be no requirement for individual row houses sharing a party wall. 3 May be increased up to 6.0:1 for buildings predominantly characterized as fifty (50) percent open automobile parking structures. ' `'5 1 _ -s USE-REGULATIONS SALEM ZONING.ORDINANCE Art.V,§ 5-2 'st s; ARTICLE V. USE REGULATIONS d. No products shall be publicly displayed or offered for sale from the roadside. i Sec. 5.1. Generally. (3) Nursery,elementary and secondary schools, (a) Uses of land, buildings and structures shall public parks and playgrounds, and public be regulated according to the schedule of uses set libraries. out in this article for each type of district. "Per- (4) Churches and similar places of worship. mitted uses" are those which shall be permitted in the district at any time. "Special permit uses" (i) Parish houses, convents and monasteries. are those which may be permitted in the district (6) institutions of higher education. i at the discretion of the board of appeals upon its i (7) Public and private golf courses. determination that specific conditions are satis- fied. As explained in section 5-3(h)(3), "prohibited (8) Private garages and other accessory uses uses" are those which shall be specifically prohib- and buildings, provided that such uses are ited in the City of Salem at any time. clearly incidental to the principal use. All the buildings on the lot shall not occupy a (b) The interpretation of the language of this greater percentage of the lot area than ecial listed in Table I following Article VI herein.ordinance with respect to permitted and sp permit uses shall be in accordance with the intent stated in section 3 1 for each type of district. (b) R-2 Districts. The following are permitted uses in the two-family residential districts: I (c) The terns "use of land" shall include the in et retation which shall include the restriction (=) All uses permitted in R C and R 1 Districts, that the land cannel be used for the storage or except agricultural,horticultural and flon- cultural operations. overnight parking of motor vehicles, including p 4` trucks, tractors, trailers except as exempted by (2) Two-family dwellings,detached or attached. i, section 7-1, unless the "permitted use" for build- (3) Rooming and boarding of not more than two ings in the district allows such parking for the (2) persons. storage of commercial motor vehicles. (4) Historic buildings open to the public. Sec. 5.2. Permitted uses. (5) Museums. (a) R-C and R-1 Districts. The following are per- (6) Private garages and other accessory uses mitted uses in the residential-conservation and and buildings, provided that such uses are ore-family residential districts: clearly incidental to the principal use. (1) Detached single-family dwellings. (7) Buildings and facilities for elderly housing (2) Customary agricultural, horticultural and projects built under the jurisdiction of the floricultural operations, provided that: Salem Housing Authority and financially aided by either the U.S.Public Housing Ad- a. All the buildings combined shall net ministration and/or the Commonwealth of occupy a greater percentage of the lot Massachusetts Department of Commerce- area than listed in Table I_following Division of Public Housing. Article VI herein. (c) R-3 Districts. The following are permitted b. No storage of manure or odor- or dust- uses in the multifamily residential districts: producing substance and no building in which farm animals are kept shall (1) All uses permitted in R-2 Districts. be permitted within one hundred (100) (2) Multifamily dwellings. feet of any property line. c. No greenhouse heating plant shall be (3) Private garages and other accessory uses operated within fifty (50) feet of the and buildings, provided that such uses are property line. clearly incidental to the principal use. ••f Art.V, § 5-2 SALEM ZONING ORDINANCE USE REGULATIONS fTen (d) B-1 Districts. The following are permitted (e) B•2 Districts. The following are permittedR ' uses in the neighborhood business districts: uses in the highway business districts: (1) All uses permitted in R-3 Districts, subject (1) All uses permitted in B-1 Districts, subject to all the provisions specified for each use. to all provisions specified for such uses, ex- - (2) Grocery, fruit, vegetable and meat stores, cept that all residential uses are prohib- ited. delicatessens. , (3) Bakeries,provided that all baked goods are (2) Restaurants and other eating places in sold at retail on the premises only. which alcoholic beverages may be served on the premises. (41. Drugstores. (3) Motels. - (5) Stores selling liquor,beer and wine for con sumption off the premises. t'`=) Automobile service stations, subject to the restrictions of section 7-2. (6) Newsstands and variety stores. (5) Off-street parking and loading facilities and .(7) Dry goods and notions stores. other accessory uses and buildings, pro- (8) 'Book, stationery and gift stores. vided that such uses are clearly incidental (9) Florist shops, but excluding greenhouses. to the principal use. (G) Supermarkets. (10) Hardware stores. 0.1) .Banks and savings and loan institutions. (7) Retail department stores located within a shopping plaza. (12) Barber shop^ and beauty parlors. (8). Other accessory uses located within a shop- (1.3) Laundry, dry cleaning and pressing estab- ping plaza. lishments,provided that not more than five (9) Research and development facilities. (5) persons are engaged in providing such services. (10) Publishing and printing establishments. (14) Self-service laundries. (11) Warehousing and distribution. (15) Tailor and custom dressmaking shops. (12) Laboratories, provided, however, that no (16) Shoe repair shops. noxious odors are emitted. (17) Radio, television and appliance repair (13) General office buildings and other similar shops, provided that not more than three and related uses. (3)persons are engaged in performing such services. (f) B-4 Districts. The following are permitted uses in the wholesale and automotive business (18) Professional offices, medical and dental districts: clinics. # (1) Automobile service stations, subject to the (19) Restaurants and other eating places which restrictions of section 7-2. do not serve alcoholic beverages consumed on the premises and including drive-in res (2) .Automobile, trailer and boat sales and ser- taurants and drive-in snack shops. vice. (20) Municipal buildings. (3) Plumbing,carpentry and sheet metal shops. r [ (21) Off-street parking and loading facilities and (4) Printing establishments. other accessory uses and buildings, pro- (5) Sale and storage of building supplies. vided=that such-uses are clearly incidental ; to the principal use. (6) Warehousing. r 12 i USE'REGULATIONS 'SALEM ZONING ORDINANCE (7) Wholesale merchandise brokers and whole- Housing Authority and financially aided by sale storage. either the U.S.Public Housing Administra- (8) Service establishments exceeding the re- tion and/or the Commonwealth of Massa- quirements for such businesses in B-1 Dis- chusetts Department of Commerce-Division tricts, such as major laundry, dry cleaning of Public Housing. f and baking establishments. (13). Retail-wholesale contractors supply estab- lishments, provided however, that the (9) Churches and similar places of worship, wholesale operation does not consist of over public and private nursery,elementary and {`fifty (50) percent of the business. secondary schools,institutions of higher ed- ucation. (14) Studios,workrooms and shops of artists,ar- (10) Off-street parking and loading facilities and tisans and craftsmen,provided that all prod y` other accessory uses and buildings, pro- ucts of the artistic endeavor or craft ac- tivity are primarily for sale on the remises vided that such uses are clearly incidental y p= y p to .the principal use. or by specific off-premises commission from a sponsor or client. (11) All uses permitted in B-1 Districts, subject ,f to all provisions specified for such uses, ex- (15) Publishing and printing establishments. cept that all residential uses are prohib- -(1.6) One-family,two-family and multifamily res- ited. idential uses as primary uses in townhouse, (12) Retail uses relating to the permitted uses row house, flats or multistory arrange- in this subsection (f). ments, including high-rises, and as see- G ordary uses in upper floors of structures (g) B-5 Districts. The following are permitted primarily used for retail, personal service u,,es in the central development districts: or office purposes. (1) All uses permitted in B-1 Districts, subject + ` (17) Accessory uses generally in support of the :E to all the provisions specified for such uses. above permitted uses. (2) Other retail stores and service establish- I ments, except those permitted in B 4 Dis (h) 1 Districts. The following are permitted uses in the industrial districts: All uses permitted in tricts. j B-4 Districts, subject to all the provisions speci- (3) Places of commercial recreation and enter- fled for such uses. tainment, such as theaters and bowling al- leys. W Business Park Development Districts.The fol- lowing are permitted uses in the Business Park (4) Restaurants and other eating and drinking Development Districts: places.: ` (1) General office buildings including business f (5) Nonprofit clubs, lodges and fraternal asso- ! and professional offices and ancillary activ- ! ciations. ities (i.e., cafeteria facilities). (6) Philanthropic and charitable institutions. o warehousing and whole- k (_) General storage, w g (7) Music and dancing studios. sale distribution uses. (8) Trade and business schools. (3) Manufacturing, packaging, assembly, re- conditioning, processing, research and (9) Hotels, motels and inns. testing of the following types of industries: (10) Business and professional offices. pharmaceuticals and other related prod- (11) Off-street parking and loading facilities. ucts, food and kindred products, apparel, i electronics and electrical products, furni- �, (12) Buildings and facilities for housing projects Lure and fixtures, primary and fabricate built under the jurisdiction-of the Salem metal products, box manufacturing, textile 13 LONG REAL ESTATE APPRAISERS BUILDING INSPECTOR PERMITS AND REPORTS 480 BROADWAY, LYNNFIELD, MA. PAGE# 57 (617) 592-4700 � �% r No. 09"�J City Of Salem Ward q cj 67 APPLICATION FOR PERMIT TO BUILD ADDITION, MAKE ALTERATIONS OR NEW CONSTRUCTION IMPORTANT-Applicant to complete all items in sections:1, 11, Ill, IV,and IX r t ti I T� ]— ZONING I. AT(LOCATION) / � r �, f 1 !-;!_- ! _ DISTRICT. LOCATION %;°j� ..T (51REET) /'r� J �` 1/ OF BETWEEN U ' J AND � - - 1 . 1 , 1 �iOSSF OS STREET) (CROSS STREET) BUILDING L /} ► - i l n /� �t P LOT SUBDMSION LOT BLOCK SIZE II. TYPE AND COST OF BUILDING -All applicants complete Parts A - D A. TYPE OF IMPROVEMENT D. PROPOSED USE-FOR"DEMOLITION"USE MOST RECENT USE 1`9 New building Residential Nonnsfdential 2 ❑ Addition to residential,enter number of new 12 ❑ One family 18 ❑ Amusement,recreational housing units added,if any,in part D,13) 19 ❑ Chruch,other religious 13 ❑ Two or more family-Enter number 3 ❑ Alteration(See 2 above) of units........_............................................ 20 ❑ Industrial 21 Parking garage 4 ❑ Repair replacement + 14 ❑ Transient hotel,motel,or dormitory Enter number of units ........................... 22 ❑ service station,repair garage 5 ❑ Wrecking(If multifamily residential,enter number 23 ❑ Hospital,institutional of units in building in Part D.13) 15 ❑ Garage 24,� Office.bank,Professional u ❑ Moving(relocation) 16 ❑ Carport 25 ❑ Public utility 7 ❑ Foundation only 26 ❑ School,library,other educational 17 ❑ Other-Specify 27 Stores,mercantile B.OWNERSHIP 28 ❑ Tanks,towers 8 on,Private(individual,corporation,nonprofit 29 Other specify instituti etc.) 9 ❑ Public(Federal,State,or local government - - C.COST (Omit cents) 10. Cost of improvement $ .2(_j. L -•........___......_........................_......� Cr1 I A A W W N N � i N � s O O cD c0 cc, m O W O W O W O W O O W O I W To be installed but not included O O O O O O o 0 0 0 0 0 0 0 0 O 0 O I c in the above cost a. Electrical__._......._................................................._.. . b. Plumbing..__.....»..........................................._._... c. Heating.air conditioning............................ i d. Other(elevator,etc.)._..___-................................. I 11. TOTAL COST OF IMPROVEMENT 111. SELECTED CHARACTERISTICS OF BUILDING •F I I I complete only Parts J&M, all others skip: to IV E. PRINCIPAL TYPE OF FRAME F. PRINCIPAL TYPE OF HEATit 30 ❑ Masonry(wall bearing) 35 Gas j ! i 1 Wood frame 36 Oil I i 2 Structural steel 37 ❑ Electricity 33 ❑ Reinforced concrete 38 ❑ Coal II n ei, 34 ❑ Other-Specify 39 ❑ Other-Specify _ f ANNUAL REPORT OF THE INSPECTOR OF BUILDINGS July 1, 1994 - June 30, 1995 fed code # of Permits Issued: Descri tion of Work Estimated Cost: 101 23 Single family dwellings, detached $ -1,869,606. 102 12 Single family houses, attached 1,296,775. (includes condominiums) 105 2 Five or more family buildings 655,000. (includes: 5 or more unit townhouses) 320 1 Industrial - Water Tx Plant 6,708,000. 324 1 New offices, banks, or professional buildings 365,563. 325 2 Public Works & Utilities 100,333. 326 2 Schools & Other Educational Bldgs. 280,000. 27 5 Stores & Customer Service (includes: restaurants, malls, taverns) 1,840,350. 328 12 Other Non-Residential Bldgs. _ (includes: sheds & storage garages) 122,100. 329 1 Structures Other Than (Pier).Bldg s ) '80,000. 434 176 Residentaal Additions, Alterations, & Conversions 2,797,677. 437 46 Non-Residential Additions, Alterations 8,142,433. 438 2 Additions of Residential Garages & Carports 34,000. 645 12 s Demolitions of Residential Bldgs. 125,890. 649 5 Demolition of Non-Residential Bldgs. & Structures 14,200. '- 340 Signs, Siding, Roofing & other minor work 1,176,659. TOTALS: 644 Permits Estimated Costs: $ 25,608,586. In Addition: 260 Certificates of Inspection were issued 66 City of Salem Builders' Licenses were issued PAGE TWO - INSPECTOR OF BUILDINGS JULY 1, 1991 - JUNE 30, 1992 The following is a brief outline of permits issued for various types of work, and the estimated cost of accomplishing the proposed work. QUANITY CONSTRUCTION ESTIMATED COST 9 Single Family Dwellings $ 634,500.00 2 Two Family Dwellings 200,000.00 36 Five or more family (condo) . 2,084,940.00 1 Motel foundation 100,000.00 1 Addition to Motel (Clipper Ship) 873,764.00 1 Addition, Renovation to Middle School West 11,925,180.00 1 Nursing Home (Vinnin Sq.) 5,800,000.00 1 Offices & Professional Buildings 4, 376,000.00 3 Public Works 85,554.00 2 Stores & Customer Service 355,000.00 9 Sheds & Garages 43,800.00 13 Swimming Pools 39,900.00 245 Additions, Alterations, Residential 4,901, 144.00 90 Additions, Alterations, Nan-Res. 3,974,101.00 .1 Demolition of Armory Walls 100,000.00 2 Demolition, Residential, Interior 1,700.00 11 Demolition, . all other -buildings 53,.550.00 168 Signs, Siding, Roofing & Wood STove 553 356.00 596 TOTALS $36,108,489.00 ANNUAL REPORT OF THE 1NSPECTOR OF BUILDINGS JULY 1 , 1989 - JUNE 30, 1990 To His Honor, Neil J. Harrington, Mayor of. Salem and the Honorable City Council Ladies and Gentlemen: In compliance with 'the requirements of. the City Ordinance, the Annual Report of the Inspector of Buildings for the twelve month period ending June 30, 1990 is herewith submitted: PERPITTS ISSTJ.F,D VALUE FEE'S RECEIVED 89/90 698 $21 ,087,740.n0 S 151 ,578.00 Permits issued included new construction, alterations, repairs, additions, demolitions, signs, wood stoves and swimming pools. In addition 16n inspection Certificates were issued to places of Public Assern.blev and 73 new Contractor's t,icenses �•7ere issued. The following is a brief outline of. *permits issued for various types of work, and the estimated cost of accomplishing the proposed work: CONSTRUCTION - ESTIMATED COST 17 Single Family Dwelling, S 1 , 190,611 .00 52 Three & Four Family/Condo 2,230,000.00 I Office, Banks 195,500.00 5 Stores & Customer Services 6,057,920.00 2 Public Works & Utilities 1 ,384, 113.00 I Service Station 220,000.00 20 Swimming Pools 85,700.00 1 Demolition - Residential 1 ,000.00 15 Demolition -Non-Residential 167,450.00 264 Additions, Alteration - Residential 2,738,026.00 91 Additions,Alterations Non-Res. 5,884 ,044.00 221 Signs, Siding & Roofing 885, 186.00 8 Sheds , Garages 48, 190.00 698 $21 ,087, 740.00 ` i ANNUAL REPORT OF THE INSPECTOR OF BUILDINGS JULY 1, 1993 - JUNE 30, 1994 To His Honor, Neil J. Harrington, Mayor of Salem and the Honorable City Council. Ladies & Gentlemen: In compliance with the requirements of the City Ordinance, the Annual Report of the Inspector of Buildings for the twelve month period ending June 30, 1994 is herewith submitted: PERMITS ISSUED: EVALUTION: FEES RECEIVED: 566 20,514,353.00 $131,280.00 Permits issued include: new construction, alterations, repairs, additions, demolitions, signs, wood stoves, siding, & swimming pools. In addition 161 Inspection Certificates were issued to places of Public Assembly & 58 City of Salem Contractors' Licenses were issued. The following is a brief outline* of building permits issued, the type of work done, and the estimated cost of the work done: # OF PERMITS: DESCRIPTION OF WORK: ESTIMATED COST: 13 Single Family Dwellings $ 1,115,807.00 2 Six Unit Condominiums 694,980.00 5 Public Works/Utility Buildings 4,491,192.00 2 Stores & Customer Service Buildings 850,000.00 4 Mail Houses/Non-Residential Bldgs. 128,000.00 6 Swimming Pools 11,750.00 159 Residential Additions/Alterations 3,356,290.60 72 Non-Residential Additions/Alterations , 7,647,013.00 19 Demolition of Residential & Non-Res. Buildings 1,242,705.00 284 Signs, Siding, Roofing, Etc. 976,616.00 566 $ 20,514,353.00 . LONG REAL ESTATE APPRAISERS ENGAGEMENT LETTER 480 BROADWAY, LYAWFIELD,MA. PAGE# 58 (617) 592-4700 CITY OF SALEM SSACHUSMS PLANNING DEPAIENT WILLiAM E. LUSTER ONE SALEM GREEN City Planner f 01970 +� t re (508) 745-9595. EXT. 311 FAX(508) 744-5918 23 May 1996 . William.Long' ; 'Long Real Estate 480 Broadway. Lynx eld,M 01940 Dear Mr. Long: Z hereby authorize you to perform all appraisal,'at the price accepted by the City of Salem Purchasing Department, of the following properties: • 70A North-Street • 14 Franklin Street • 16 Franklin Street • 18 Franklin Street • 20 rear Franklin Street The property owners may or may not facilitate your work. This.appraisal inust conform to the format required by the state Executivo 01ff ice of Environme fatal.A.tkairs, as detailed in materials previously sent to you, and must be completed as soon as possible. If you have any questions,please do not hesitate to ca-11-me. Sincerely, . Elizabeth Debski Acting City Plannter