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SUMMARY OF THE BASIS FOR JUST COMPENSATION (Continued)
<br />Value of Parent Property, Before Taking: (Continued)
<br />Sales Comparison Approach: (Continued)
<br />Value as Improved: (Continued)
<br />After considering the various elements of comparability, as well as economic and financial
<br />conditions prevailing during the consummation of the various sale properties, as compared to
<br />current market conditions, it is estimated at $2,700,000, which reflects $66.67 per square foot
<br />of land area, and $1,075.70 per square foot of building area. The resulting unit rate per square
<br />foot of building area exceeds the value range indicated by the sale properties due primarily to
<br />the higher land/building area ratio of the subject facility. It may be of interest to note that the
<br />unit rate per square foot of land area is supported by the comparable sale properties.
<br />Income Capitalization Approach:
<br />The Income Capitalization Approach is based on the capitalization of net income generated, or
<br />capable of being generated, by the subject property. The net operating income is the product of
<br />the estimated gross rental income, less allowances for long term vacancy /credit loss and
<br />various expense charges. The income /expense pro forma set forth herein is intended to reflect
<br />a typical stabilized holding period.
<br />Following is the income and expense schedule considered applicable to the subject property.
<br />Monthly rental income:
<br />2,510 SF @ $4.65 = $11,672
<br />Total gross annual income:
<br />$11,672 x 12 = $140,064
<br />Vacancy and credit loss (1.5 %): - 2,101
<br />Effective gross annual income: (carried forward) $137,963
<br />Continued .. .
<br />75B -16
<br />Overall
<br />Data
<br />Comparability
<br />Sale Price
<br />4
<br />inferior
<br />$1,900,000
<br />1
<br />inferior
<br />$1,925,000
<br />6
<br />inferior
<br />$2,510,000
<br />2
<br />similar
<br />$2,595,000
<br />Subject
<br />- - - -
<br />$2,700,000
<br />3
<br />similar
<br />$2,710,000
<br />5
<br />superior
<br />$3,194,500
<br />After considering the various elements of comparability, as well as economic and financial
<br />conditions prevailing during the consummation of the various sale properties, as compared to
<br />current market conditions, it is estimated at $2,700,000, which reflects $66.67 per square foot
<br />of land area, and $1,075.70 per square foot of building area. The resulting unit rate per square
<br />foot of building area exceeds the value range indicated by the sale properties due primarily to
<br />the higher land/building area ratio of the subject facility. It may be of interest to note that the
<br />unit rate per square foot of land area is supported by the comparable sale properties.
<br />Income Capitalization Approach:
<br />The Income Capitalization Approach is based on the capitalization of net income generated, or
<br />capable of being generated, by the subject property. The net operating income is the product of
<br />the estimated gross rental income, less allowances for long term vacancy /credit loss and
<br />various expense charges. The income /expense pro forma set forth herein is intended to reflect
<br />a typical stabilized holding period.
<br />Following is the income and expense schedule considered applicable to the subject property.
<br />Monthly rental income:
<br />2,510 SF @ $4.65 = $11,672
<br />Total gross annual income:
<br />$11,672 x 12 = $140,064
<br />Vacancy and credit loss (1.5 %): - 2,101
<br />Effective gross annual income: (carried forward) $137,963
<br />Continued .. .
<br />75B -16
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