08/17/2022 VAB - Laserfiche WebLink

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area.) The property was 92% occupied as of the data of value. The intended users of the appraisal report include Zon Management Inc. (the owner's) and the Brevard County Property Appraiser. The definition of just value was provided from the Florida administrative code 1230 -1.002 (2). The three approaches to value were utilized to develop the going concern value. An allocation of value was provided to estimate the real estate value. The real estate value was used to develop the just value of the subject property. The contributory value (market value) of the real estate only was estimated to be in the range of $10,594,662 to $11,782,312. An assessment ratio of 85% was applied to estimate the range in just value of $9,000,0000 to $10,000,000. The appraisal classifies the building as a "Class C, Multiple Residence, Elderly AFL structure of Average to Good quality" by the Marshall Valuation Service. (This differs from the property appraiser's classification of the building and quality of the building been rated as just "good quality".) The condition of the subject was rated as good overall and it is noted that the facility was expanded and renovated in 2016 and 2019. The effective age was concluded at an average of 15 years with the remaining economic life of 35 years and a total economic life of 50 years. The highest and best uses was for continued use as a senior housing facility. In the valuation of the going concern, an income approach and a sales comparison approach were presented. The subject's rental rate structure was compared to five local facilities that were all within 9 miles or less of the subject. The subject's assisted living and memory care rents were determined to be within the range of the comparables. Historical income and expense for years ending 2018 and 2019 were compared to the projected pro forma for January 1, 2020. The projected net operating income for 2020 was estimated at approximately $1,835,000. A capitalization rate of 8% was utilized and indicated a stabilized value of $22,900,000 for the going concerned value of the subject property. Sales comparison approach was presented with six comparable sales of similar facilities within the state of Florida. The comparable sold between June 2017 and August 2018. The comparables varied in age and size and included from between 34 to 189 units. The comparable sales indicated a range from $116,667 to a high of $292,900 per unit and a sale price per square foot ranging from $174 to $347. The sales indicated effective gross income multipliers from between 3.872 to 5.29 and overall rates ranging from 6.5% to a high of 7.81%. -75-