Laserfiche WebLink
<br /> Page 42 Nagell Appraisal Incorporated | 952.544.8966 <br />Highest and Best Use – continued <br /> <br /> <br /> <br /> <br />Maximally Productive Use: The subject is surrounded by commercial, residential, and senior living. The <br />City of Mounds View is investigating various potential development plans for the subject site. Depending <br />on city approval of densities, the subject’s value could have a significant range. <br /> <br />That said, here are the proposals the city is considering at this time: <br /> <br /> <br />1. Develop entirely with apartments. The proposal provided to the appraiser indicates 135 -units. <br />2. Develop with a gas station (likely Kwik Trip) and 63 apartment units. <br />3. Develop with general commercial and 63 apartment units. <br />4. Develop entirely with general commercial. <br /> <br /> <br />Each scenario is considered in the following Sales Comparison Analysis. Because it is unknown at this <br />time which option is legally allowed, all three will be valued for the client’s consideration. Traditionally, the <br />highest value is the maximally productive use of the site. Give n this, Option 1 technically has the highest <br />value based on the above assumptions. That said, the final development option (and effectively value) <br />rest on the city’s approval of a site development plan. <br /> <br /> <br /> <br /> <br />Note: <br /> <br />Typical apartment construction in the market results in average to good quality units. <br /> <br />Typical commercial construction in the market results in average to good quality and land -to- <br />building ratios of 4 to 6 to 1. This would imply a commercial building of 10,000 SF to 16,000 SF. A <br />single- or multi-tenant building would be supported on the site. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Site as Improved: The use that should be made of a property as it exists. An existing improvement should be <br />renovated or retained as so long as it continues to contribute to the total market value of the property, or until the <br />return from a new improvement would more than offset the cost of demolishing the existing building and constructing <br />a new one. The Dictionary of Real Estate Appraisal, Fifth Edition, by the Appraisal Institute. <br /> <br /> <br /> <br /> <br />The site as improved is not a relevant analysis because the subject is vacant. <br /> <br /> <br /> <br /> <br /> <br />Most Probable Buyer: The most likely buyer of the subject would be a local or regional investor who <br />would develop the site. <br /> <br /> <br /> <br /> <br />