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2012 04-30 CCP Board of Appeal & Equalization
EN I CITY OF BROOKLYN CENTER 2012 LOCAL BOARD OF APPEAL AND EQUALIZATION APRIL 30, 2012 April 30, 2012 Letter of Transmittal 2012 Local Board of Appeal and Equalization To The Honorable Mayor and City Council: As you know, each year the City Council is required by our Charter to sit as the Local Board of Appeal and Equalization. The purpose of this board is to review the work of the Office of the City Assessor and to hear valuation and classification appeals. The 2012 Local Board of Appeal and Equalization is scheduled to begin at 7:00 p.m. on Monday, April 30, 2012. In addition to the valuation notices mailed to all individual property owners on March 23, 2012, the City Clerk has published and posted notices of this meeting as required by state statute. The attached report is presented for your information. This report contains a review of the Board's powers and responsibilities, information from our office regarding the 2012 assessment and an overview of recent market activity. The issues before the Local Board of Appeal and Equalization are questions of estimated market value and classification of Brooklyn Center properties for the January 2, 2012 assessment for taxes payable in 2013. Respectfully submitted, Z&)4i*k Nancy J. Wojcik, S.A.M.A. City Assessor 01 N N-- - 2012 Brooklyn Center Local Board of Appeal and Equalization Meeting Agenda: 1. Meeting called to order, roll call. (7:00 p.m.) 2. Local Board of Appeal and Equalization (LBAE) Certification Form. 3. The purpose of the Local Board of Appeal and Equalization. 4. Questions regarding the Local Board of Appeal and Equalization duties. 5. The Assessor's Report. 6. Questions regarding the assessment report. 7. Appearances by taxpayers with appointments. 8. Appearances by taxpayers without an appointment. 9. Consideration of written appeals. 10.Set date of Local Board of Appeal and Equalization reconvene meeting. 11.Adjourn Local Board of Appeal and Equalization Certification Form The Local Board of Appeal and Equalization must sign and complete the Local Board of Appeal and Equalization Certification form for each meeting of the board. Since all boards are required to comply with the training and quorum requirements, this form must be completed even if no appeals are heard. This form certifies that a quorum was present with a majority of the voting members of the Local Board of Appeal and Equalization in attendance and that at least one of the members present has attended an appeal and equalization course approved by the Commissioner of Revenue within the last four years. If the above requirements are not met the meeting will become an open book meeting. Training of Local Board members is offered by the Minnesota Department of Revenue, but not until all local boards are completed. In addition, the Minnesota Department of Revenue states that they will be monitoring changes to `parcels owned by a member of the board, the spouse, parent, son or daughter of a board member, or property in which a board member has a financial or other interest in the property". It is the recommendation that the board vote "no change" to avoid the appearance of having a conflict of interest, and forward the appeal to the county board. While making changes is not prohibited, these changes will be monitored and must be noted on the LBAE certification form. The Minnesota Department of Revenue will be conducting random surveys of persons who attended the local boards to monitor the public's perception of the board's performance. Purpose of the Local Board of Appeal and Equalization The purpose of the Local Board of Appeal and Equalization is to provide a fair and objective forum for property owners to appeal their valuation or classification. One of the most important duties placed by law upon the governing body of a township or city is to serve as the Local Board of Appeal and Equalization. Effective actions taken by the local board may potentially make a direct contribution to attaining assessment equality. The goal of the Local Board of Appeal and Equalization should be to attempt to address property owners' issues efficiently, fairly and objectively. Always keep in mind that any changes made by the board must be substantiated by facts. Any value reductions must be justified because they have the effect of shifting the tax burden to other property in the jurisdiction. Minnesota Statutes, Section 274.01, provides that the governing body of each city or a duly appointed board will serve as the Local Board of Appeal and Equalization. This review is held each spring. The board has the responsibility to review the assessed valuation and classification of property within the city. This year's review is limited to the 2012 assessment; which affects taxes payable in 2013. Role of the Local Board in the Assessment Process The Local Board of Appeal and Equalization has the authority to change the valuation or classification of a property for the current assessment year (2012). Taxes or prior year assessments are not within the jurisdiction of the local board. In order to make an informed decision on these two items, it is important to understand them. Excerpts from the Minnesota Revenue Local Board of Appeal and Equalization handbook have been enclosed to assist in the definition of market value and classification. Limits of Authority for the Local Board of Appeal and Equalization The authority of the board extends over individual parcels only. Changes of value are made to the estimated market value. No changes may be made by percentage, class, or property type. Changes in the aggregate assessment may be made by the state board of equalization. The total of all changes made by the board of must not reduce the aggregate assessment by more than 1%. Should this occur, none of the changes of the Local Board of Appeal and Equalization will be accepted. This limitation does not apply to clerical corrections. The Local Board of Appeal and Equalization does not have the authority to reopen previous assessments. An example of this is the 2011 assessment for the taxes payable in 2012. Homeowner's that received their 2012 tax statement in March, 2012, are not able to appeal the 2011 estimated market value listed on the statement. Should the board wish to raise any assessment, the owner must be notified. It is necessary for a majority of the board to be present for any valid board action to be taken. The board should carefully consider any cases where taxpayers feel aggrieved by the proposed assessment. All available evidence should be considered. The board then has authority to adjust the assessment as it deems just. The initial 2012 meeting is scheduled for April 30, 2012. The board must complete its work within 20 days or receive a written extension from the Commissioner of Revenue. Any actions taken after 20 days without an authorized extension will be invalid. The assessor's recommendation is to complete all board business at the first meeting, if possible. Should a second reconvene meeting be necessary, it must be held no later than Sunday, May 20, 2012. A tentative reconvene meeting date has been set for Monday, May 7, 2012. A motion to sustain the assessment or to adjust the assessment may be made upon completion of the discussion of each property or may be held until all appeals have been heard. No 0 Review Procedures - 2012 Assessment Informal 1. Discuss assessment procedures and the valuation methodologies employed by the assessor's office. 2. Review market information, sales and property characteristics with the owner by phone or in the assessor's office. 3. Provide the owner with nearby assessed values and/or sales of homes similar to the subject property. 4. Suggest the owner have a market analysis provided by a local Realtor. 5. Review by physically inspecting the property and recalculating the value based on characteristics gathered in the new inspection. 6. Discuss with the owner the valuation recommendation based on the review performed. Formal 1. Local Board of Review / City Board of Equalization April 30, 2012. 2. County Board of Equalization June 18, 2012. 3. Minnesota Tax Court 4. Abatement Summary The assessor's office will make every effort to resolve as many questions possible prior to the board. Those property owners still wishing to be heard at the board will be given an opportunity to express their individual concerns. The assessor's office will have an appraisal prepared for all properties where the owner has notified the assessor's office of their intent to appear at this year's Local Board of Appeal and Equalization. A copy of this report will be provided to each board member and the property owner. Please remember that the issue at hand is the market value or classification of the property at hand, not the taxes. Cases that the board feels may be too difficult or complex to decide may be affirmed. The property owner will then have the opportunity to continue on to the County Board of Appeal and Equalization. Hennepin County Board of Appeal and Equalization The 2012 County Board of Appeal and Equalization will be held beginning June 18, 2012. Taxpayers wishing to appear must have appealed to their Local Board of Appeal and Equalization and must register with the county no later than May 23, 2012. You must call in advance to be placed on the agenda. Appointments are available by calling (612) 348-7050. At the County Board level the county assessor's office will perform an independent appraisal of each property. Should a reduction to the assessment be indicated, it is offered to the owner. The county will also notify the owner if their review indicates either no change or an increase. At this point, the owner can accept the reduction, withdraw the appeal, or continue on, to be heard by the County Board of Appeal and Equalization. Minnesota Tax Court For information regarding a tax court appeal, contact (651) 296-2806. Information is also available at the following link: http://www:taxcourt.state.mn.us Abatements This is a process that allows assessors to correct a clerical or appraisal error only. Application must be received by the assessor no later than December 31 for the year the taxes are payable. This is a discretionary process and decision of the assessor is final. The City of Brooklyn Center charges a $45.00 application fee for abatements when it is not an error of the assessment process. However, in most cases the assessor's office is able to inform the property owner prior to application if approval is likely. Assessment Valuation Procedures 2011 Property Review During the summer of 2011 our office conducted property reviews within an area located north of 65th Avenue N., west of Xerxes and South of 73rd Avenue to the western city limits. The summer inspections began at the end of April, 2011, and included approximately 1,700 parcels. All quintile inspections were completed by the end of October. The re-inspections were performed by Nancy Wojcik, City Assessor, Jill Brenna, Appraiser, and Karen Casto, Appraiser Technician. Permit review was completed by December 29, 2011. Statewide Implementation of Time Adjustments The Department of Revenue implemented a new statewide sales ratio requirement of time adjustments beginning with the 2012 assessment. Time adjustments are used to adjust the sale price forward to the date of assessment to reflect any changes in market conditions. Time adjustments are necessary due to the distorting effect that changes in market conditions can have on ratios. As a point of policy, the Department of Revenue utilizes a 90% cutoff for significance, meaning a time trend will only be applied if there is at least 90% confidence that there is actually a trend in the statistical data. For the 2012 assessment, the City of Brooklyn Center sales study indicated a time adjustment of-.85% monthly, with a significance of 99.9%, from the sale date through January 2, 2012. Due to the conversion to new methodology for the 2012 assessment, the Department of Revenue and Hennepin County are tracking both a direct and time adjusted ratio until full conversion to time adjusted ratios are implemented for the 2013 assessment. An example of a direct ratio and time adjusted ratio applied to a single sale is given below as an example; 2012 Sale Price Time Adjusted Direct Ratio Time Adjusted Estimated Sale Price Ratio Market Value $130,500 $135,000 $126,968 96.7 102.8 This example shows the impact of a declining market when converted to a time adjustment. The time adjustment is then applied to the sale price going forward to the next assessment date of 1/2/2012. The time adjusted sale price is then used to calculate the time adjusted ratio. The Brooklyn Center residential assessment falls within all accepted measurement guidelines for mass appraisal accuracy and uniformity. Hennepin County completes the assessment review by checking sample values, sales ratio measurements and the coefficient of dispersion. The median ratio of both the direct, and time adjusted ratio of all sale types are reviewed by both county and state. The ratios must meet the county requirement of a level of assessment that falls within the MN. Department of Revenue guidelines, and is fair and equitable within the county. Overview of the 2012 Assessment The 2012 assessment has again experienced declining market valuations, though certain types of property are not continuing that trend. Lender-mediated sales continued to dominate the market for sales of residential properties. Commercial and Industrial properties saw variations in changes based on property use. Smaller and/or older style apartments are holding flat at last year's values. We are beginning to see growth in the overall apartment market in suburban Hennepin County. The market value of a property is a combination of a myriad of factors. Economic conditions, highest and best use, demographics, zoning, physical characteristics, government and policy, infrastructure, supply and demand all interact in a complex, intricate way to produce a market value that is always changing. The City of Brooklyn Center 2012 assessment meets all state guidelines for the level of assessment requirements. The Hennepin County ten box direct and MCAP ratio reports give a measurement of the assessment by property type. The direct ratio reflects the cities ratios unadjusted for time. The MCAP report represents the market time adjusted price, which has been mandated by the state. The Assessor's office is to serve the taxpayers of the City of Brooklyn Center by uniformly valuing and classifying real property in an accurate and equitable manner as prescribed by the statutes of the State of Minnesota. The Assessor's office is pleased to present this report and hopes that it will be a useful tool for city officials and those with a general interest in assessed market valuations. I -M E____ - I Residential Properties Open market sales occurring in the prescribed study period, October 1, 2010 through September 30, 2011, are analyzed by comparing them to the previous assessment and the preliminary assessment in process. Adjustments are then made either to the land values or to the computerized rate tables employed by the CAMA system in calculating the building values. This computer assisted mass appraisal system allows the assessor's office to value properties according to their individual characteristics. Examples of these characteristics include age, condition, size, style, amenities, functionality, and location. The preliminary final assessment is then analyzed statistically to ensure accuracy and uniformity. Residential New Construction The total market value of all residential construction improvements reviewed from November 1, 2010 through October 31, 2011, totaled $1,021,700. This includes single family, townhomes, duplexes and condominiums. Residential Land All residential land was reduced for the 2012 assessment. This includes all residential single family, condominium, townhome and waterfront lots within Brooklyn Center. The adjustment for the total of all residential land was just under- 23%. The one exception to this land adjustment was the peninsula piece located on Twin Lake. The reduction on that land parcel was -3.2%. Residential lot values range from $35,500 to $42,100 a lot. Waterfront lots range from $107,100, on Twin Lake to $123,900 on the Mississippi River. Single Family Residential For the fifth consecutive year, market values decline in Hennepin County for detached single family residential properties. In some instances, values dropped more than the county-wide average as some areas continue to be affected by foreclosure markets. The total single family residential market value was reduced in Brooklyn Center -11.8% for the 2012 assessment. Brooklyn Center had 61 open market sales with a direct ratio of 95.4 and a coefficient of dispersion of 9.8. Time adjusted, the ratio is 104.3 with a coefficient of dispersion of 9.7. Properties of all styles larger than 1,600 sq. ft. were specifically reviewed. Brooklyn Center had 4 open market sales of properties larger than 1600 sq. ft. for the 2012 assessment study period. The direct ratio for these 4 sales is 95 with a coefficient of dispersion of 3.8. Time adjusted, the ratio is 105.3 with a coefficient of dispersion of 4.5. 11 M_ 0 1 0 Single Family - Waterfront The Waterfront property type received the same land value reduction(with the exception of our peninsula), as well as the same reduction in structure rates as all single family properties in Brooklyn Center for the 2012 assessment. Our largest homes are located on water, so the percentage drop in values here reflects the overall drop in homes 1600 sq. ft. and larger. We did have one good riverfront sale. The property at 6648 West River Rd. sold 4/11 for $130,600. This home showed deferred maintenance, no updating and its placement on the site fell within one foot of the property line to the north. Due to the issues with setbacks, deferred maintenance, and the seller's personal need to relocate, the sale price fell below typical market for waterfront properties. Although this was the only open market waterfront sale, we did have two lakefront sales that were rejected as estate sales (not reflective of open market). The property at 5433 Twin Lake Blvd E sold 4/11 for a cash equivalent of $252,200. This would be a 99.5% direct ratio for 2012. The property at 5601 Indiana sold 3/11 for $272,000. This would be a 94.9% direct ratio for 2012. One riverfront sale occurred 12/22/11, putting it in the 2013 assessment study period. This sale, at 6850 Willow Lane sold for a cash equivalent sale price of $305,550. A direct ratio on this sale and the other open market sale at 6648 West River Rd comes in at 104.4%. Townhomes Townhome properties were reduced an average of -20.1% for the 2012 assessment. The two story townhome style was specifically reviewed and that specific style townhome was reduced slightly more at 25.9%. Our biggest reduction was in two story townhomes over 1,400 sq. ft. Overall we had eight open market townhome sales with a direct ratio of 94.6% and a coefficient of dispersion of 10.5. Time adjusted, the ratio is 103.3% with a coefficient of dispersion of 10.7. County-side townhomes are leading the decline in market value for 2012. Condominiums The condominium property type was reduced -5.5% for the 2012 assessment. The City of Brooklyn Center has two distinct condominium markets. The Beach condominiums complex saw a reduction of -6.5%. Our two open market sales are from this complex, and have a direct ratio of 93% with a coefficient of dispersion of 8.3. Our time adjusted ratio on these open market sales is 99.6% with a coefficient of dispersion of 6.4. The Humboldt condominiums are increasing 8.4%. This complex went entirely into I M 0- foreclosure shortly after its conversion from apartments to condominiums. The Humboldt Condominium complex has been carrying a lower value than our other condominiums to reflect the condition of the units, as well as the lack of open market sales. These units have been increasing slowly over the last two years, but are still valued considerably less than our other condominium units in the city. County-wide the overall decline in condominium properties was 6.8%. Duplexes There were no open market duplex sales in Brooklyn Center. After consideration of non- open market transactions, as well as active and pending duplex listings, the duplex property type was reduced 12.6%. This reduction is slightly more than our reduction for single family properties. Commercial / Industrial The valuation of these properties is primarily accomplished through an analysis of the rental market, potential income, and the sale market. What the investor's expectations are and what the yield requirements are effects the valuation of market segments differently. There are two key questions where market activity can provide some guidance. The potential market (economic) income to a property is best estimated by analyzing recent leases, rental surveys, rental listings, and published data from the local market and market real estate journals. All of these sources and more have been employed by the assessor's office to ensure that the current assessed values follow the market as closely as possible. Sales data used in researching the local markets has been provided from a shared sales exchange program with adjacent counties. The sale exchange program provides sale data, property characteristics and verified information on both open and non-open market transactions, within Anoka, Hennepin, Ramsey, and Carver County. The assessor's office also has access to MILS commercial data and contacts with local real estate offices. The commercial/industrial market in Brooklyn Center saw a slight growth of .7%. Sub- markets of suburban larger office appear to have evened out and begun to stabilize. County-wide commercial property values were up1.8%, while industrial property values dropped 2.1%. Commercial New Construction The total market value of all commercial and industrial construction improvements reviewed from November 1, 2010 through December 31 , 2011, totaled $19,578,000. Apartments The apartment assessment is based on a combination of market sale activity and analysis of the rental market. Even in years without adequate sale information, changes in rental rates and occupancy levels are valid, accurate measures of changes in market value. Apartments are sold primarily for their potential to generate future income for the buyer. Therefore, the analysis of the likely (economic) income is a proven and widely accepted approach to valuation. Apartment surveys are sent out annually to collect market trends in rental income and vacancy within the City of Brooklyn Center. Information regarding expenses and improvement costs are also included, to give a complete picture of the apartment market. COMPARISON OF THE BROOKLYN CENTER ASSESSED VALUE BY PROPERTY TYPE 2012 to 2013 TAX PAYABLE YEARS 2011 ASMT PERCENTAGE 2012 ASMT PERCENTAGE PROPERTY PAY 2012 OF PAY 2012 PAY 2013 OF PAY 2013 TYPE VALUATION VALUE VALUATION VALUE APARTMENT $168,687,200 10.33% $167,706,000 11.05% COMMERCIAL $235,319,000 14.41% $249,980,000 16.48% INDUSTRIAL $112,692,800 6.90% $111,791,800 7.37% VACANT LAND $18,393,600 1.13% $24,166,200 1.59% RESIDENTIAL $1,098,067,000 67.23% $963,236,700 63.49% FARM $168,300 0.01% $172,200 0.01% TOTALS $1,633,327,900 $1,517,052,900 NOTE: Payable 2013 valuation totals are based on values as of March 8,2012. The residential taxable market value total for 2012 pay 2013 is $782,115,108., after exclusions for veterans, "This Old House" and homestead classification. Prepared by the Brooklyn Center Assessor's Office 4/26/2012 CHANGES MADE TO 2012 ASSESSMENT CITY OF BROOKLYN CENTER OVERALL Prepared by the Brooklyn Center Assessor's Office 4/25/2012 VALUE CHANGE City Wide - All (Includes all property types) -7.0% (Excluding new construction) -8.3% City Wide - Resid. (Single Family - Detached Only) -11 .8% (Excluding new construction) -11 .9% Commercial (excluding new construction) -3.1% Industrial (excluding new construction) -1.2% Apartments (excluding new construction) 0.7% Condominiums (excluding new construction) -5.6% Townhouses (Excluding new construction) -20.1% Double Bungalows (Excluding new construction) -14.9% Residential Nbad #50 - #55 Off Water -11.8% Nbad #56 - Waterfront -15.9% t80ARDICIps made to 07 asmt x15107 Change BROOKLYNCTR - 2/24/2012 DIRECT ALL RES STATISTICS SALES:72/8176 0.9% CONDO STATISTICS SALES:21160 1.3% Approval Info: COM=C,GC,ND,NP,SC.SL,SM DIRECT RATIOS MEDIAN MEAN COD PRD DIRECT RATIOS MEDIAN MEAN COD PRD APTS=A,HF.HL j 2012 95.1% 97.8% 10.3 101.9 2012 92.9% 92.9% 8.2 100.5 ALL RES=AX,B,BJ,D,DB,DJ,HR,K, 2011 106.7% 111.7% 13.3 102.8 2011 99.8% 99.8% 8.1 100.5 R,RL,RM,RZ,TP,X,XC,XM,Y,Z = R&RL PLUS=B,BJ,D,DJ,R,RL = (A"proval Signitufe) INFERRED RATIOS SALES GROWTH: 11.7% INFERRED RATIOS SALES GROWTH: 6.9% CONDO=X,XM,XC,AX } OTHER=CHANGED PROP TYPE 11 SAMPLE GROWTH: 0.0% PROP TYPE GROWTH: 12.4% SAMPLE GROWTH: 7.6% PROP TYPE GROWTH: 5.5% t,!A p o4ed X MEDIAN: 106.7% X MEDIAN: 94.0% X MEDIAN: 92.2% X MEDIAN: 94.3% RESUBMITT FROM: Printed: 2124/12 3:48 PM X MEAN: 111.7% X MEAN: 98.4% X MEAN: 92.2% X MEAN: 94.3% COM/IND STATISTICS SALES:3/188 1.6% R&RL PLUS STATISTICS SALES:6317279 0.9% TOWNHOUSE STATISTICS SALES:6/675 0.9% DIRECT RATIOS MEDIAN MEAN COD PRD DIRECT RATIOS MEDIAN MEAN COD PRD DIRECT RATIOS MEDIAN MEAN COD PRD 2012 100.1% 100.9% 2.3 0.0 2012 95.4% 98.4% 10.5 102.2 2012 94.5% 97.0% 6.9 100.2 2011 103.2% 103.7% 3.0 0.0 2011 106.6% 111.2% 12.9 102.6 2011 123.9% 123.4% 11.5 103.8 INFERRED RATIOS SALES GROWTH: -2.6% INFERRED RATIOS SALES GROWTH: -11.2% INFERRED RATIOS SALES GROWTH: -18.5% SAMPLE GROWTH: 1.3% PROP TYPE GROWTH: 0.7% SAMPLE GROWTH. -11.5% PROP TYPE GROWTH: -11.9% SAMPLE GROWTH: -19.7% PROP TYPE GROWTH: -20.1% X MEDIAN: 104.6% X MEDIAN: 104.0% X MEDIAN: 94.3% X MEDIAN: 93.9% X MEDIAN: 99.5% X MEDIAN: 99.0% X MEAN: 1051% X MEAN: 104.5% X MEAN: 98.4% X MEAN: 98.0% X MEAN: 99.1% X MEAN: 98.6% APARTMENT STATISTICS SALES:0/98 0.0% RL STATISTICS SALES. 1/107 0.9% DB,TP STATISTICS SALES:0/62 0.0% DIRECT RATIOS MEDIAN MEAN COD PRD DIRECT RATIOS MEDIAN MEAN COD PRD DIRECT RATIOS MEDIAN MEAN COD PRD 2012 0.0% 0.0% 0.0 0.0 2012 122.9% 122.9% 0.0 100.0 2012 0.0% 0.0% 0.0 0.0 2011 0.0% 0.0% 0.0 0.0 2011 154.2% 154.2% 0.0 99.9 2011 0.0% 0.0% 0.0 0.0 INFERRED RATIOS SALES GROWTH: 0.0% INFERRED RATIOS SALES GROWTH -20.3% INFERRED RATIOS SALES GROWTH: 0.0% SAMPLE GROWTH: 0.0% PROP TYPE GROWTH: -0.7% SAMPLE GROWTH: -14.3% PROP TYPE GROWTH: -16.1% SAMPLE GROWTH: 0.0% PROP TYPE GROWTH: -12.7% X MEDIAN: 0.0% X MEDIAN: 0.0% X MEDIAN: 132.1% X MEDIAN: 129.4% X MEDIAN: 0.0% X MEDIAN: 0.0% X MEAN: 0.0% X MEAN: 0.0% X MEAN: 132.1% X MEAN: 129.4% X MEAN: 0.0% X MEAN: 0.0% STRATIFICATION(R&RL)BY MEAN R PROPERTY TYPE STATISTICS SALES:6217172 0.9% RZ STATISTICS SALES:0/0 0.0% BY EMV BY PRICE DIRECT RATIOS MEDIAN MEAN COD PRD DIRECT RATIOS MEDIAN MEAN COD PRD # % # % 2012 951% 98.0% 10.3 102.3 2012 0.0% 0.0% 0.0 0.0 62 UNDER 175K 98.7% 62 UNDER 175K 98.7% 2011 106.6% 110.5% 124 102.7 2011 0.0% 0.0% 0.0 0.0 0 175-250K 0.0% 0 175-250K 0.0% 0 250-350K 0.0% 0 250-350K 0.0% INFERRED RATIOS SALES GROWTH: -11.0% INFERRED RATIOS SALES GROWTH: 0.0% 0 350-500K 0.0% 0 350-500K 0.0% 0 500-700K 0.0% 0 500-700K 0.0% SAMPLE GROWTH: -11.4% PROP TYPE GROWTH: -11.8% SAMPLE GROWTH: 0.0% PROP TYPE GROWTH: 0.0% 0 700K-1MIL 0.0% 0 700K-1MIL 0.0% X MEDIAN: 94.4% X MEDIAN: 94.1% X MEDIAN: 0.0% X MEDIAN: 0.0% 0 OVER 1MIL 0.0% 0 OVER 1MIL 0.0% X MEAN: 97.9% X MEAN: 97.5% X MEAN: 0.0% X MEAN: 0.0% BROOKLYNCTR - 2/24/2012 MCAP ALL RES STATISTICS SALES:72/8176 0.9% CONDO STATISTICS SALES:2/160 1.3% :Approval Info: MCAP Adj:-10.27% COM=C,GC,ND,NP,SC,SL,SM I MCAP RATIOS MEDIAN MEAN COD PRD MCAP RATIOS MEDIAN MEAN COD PRO APTS=A,HF,HL 2012 104.1% 105.8% 10.0 101.9 2012 99.7% 99.7% 6.4 100.3 ALL RES=AX,B,BJ,D,DB,DJ,HR,K, 2011 117.5% 120.8% 13.1 102.7 2011 107.0% 107.0% 6.3 100.2 R,RL,RM,RZ,TP,X,XC,XM,Y,Z R&RL PLUS=B,BJ,D,DJ,R,RL (Approval Signiture) INFERRED RATIOS SALES GROWTH: -11.7% INFERRED RATIOS SALES GROWTH: -6.9% CONDO=X,XM,XC,AX OTHER=CHANGED PROP TYPE SAMPLE GROWTH: 0.0% PROP TYPE GROWTH: -12.4% SAMPLE GROWTH: -7.6% PROP TYPE GROWTH: -5.5% ------------ (Date Approved -- X MEDIAN: 117.5% X MEDIAN: 103.5% X MEDIAN: 98-9% X MEDIAN: 101.1% RESUBMITT FROM: Printed: 2/24/12 3:50 PM X MEAN: 120.8% X MEAN: 106.4% X MEAN: 98.9% X MEAN: 101.1% COM/IND STATISTICS SALES:3/188 1.6% R&RL PLUS STATISTICS SALES:63/7279 0.9% TOWNHOUSE STATISTICS SALES:6/675 0.9% MCAP Adj:0% MCAP RATIOS MEDIAN MEAN COD PRD MCAP RATIOS MEDIAN MEAN COD PRD MCAP RATIOS MEDIAN MEAN COD PRD 2012 100.1% 100.9% -2.6 0.0 2012 104.1% 106.4% 10.3 102.1 2012 103.3% 105.6% 6.8 100.3 2011 103.2% 103.7% 10 0.0 2011 116.6% 120.3% 12.7 102.5 2011 136.1% 134.4% 10.9 104.0 INFERRED RATIOS SALES GROWTH: 2.3% INFERRED RATIOS SALES GROWTH: -11.2% INFERRED RATIOS SALES GROWTH: -18.5% SAMPLE GROWTH: 1.3% PROP TYPE GROWTH: 0.7% SAMPLE GROWTH: -11.5% PROP TYPE GROWTH: -11.9% SAMPLE GROWTH: -19.7% PROP TYPE GROWTH: -20.1% X MEDIAN: 104.6% X MEDIAN: 104.0% X MEDIAN: 103.2% X MEDIAN: 102.7% X MEDIAN: 109.3% X MEDIAN: 108.8% X MEAN: 105.1% X MEAN: 104.5% X MEAN: 106.5% X MEAN: 106.0% X MEAN: 107.9% X MEAN: 107.4% APARTMENT STATISTICS SALES:0/98 0.0% RL STATISTICS SALES:1/107 0.9% DB,TP STATISTICS SALES:0/62 0.0% MCAP Adj:-4.62% MCAP Adj:-10.27% MCAP RATIOS MEDIAN MEAN COD PRD MCAP RATIOS MEDIAN MEAN COD PRD MCAP RATIOS MEDIAN MEAN COD PRD 2012 0.0% 0.0% 0.0 0.0 2012 133.1% 133.1% 0.0 99.9 2012 0.0% 0.0% 0.0 0.0 2011 0.0% 0.0% 0.0 0.0 2011 167.1% 167.1% 0.0 100.0 2011 0.0% 0.0% 0.0 0.0 INFERRED RATIOS SALES GROWTH: 0.0% INFERRED RATIOS SALES GROWTH: -20.3% INFERRED RATIOS SALES GROWTH: 0.0% SAMPLE GROWTH: 0.0% PROP TYPE GROWTH: -0.7% SAMPLE GROWTH: -14.3% PROP TYPE GROWTH: -16.1% SAMPLE GROWTH: 0.0% PROP TYPE GROWTH: -12.7% X MEDIAN: 0.0% X MEDIAN: 0.0% X MEDIAN: 143.2% X MEDIAN: 140.2% X MEDIAN: 0.0% X MEDIAN: 0.0% X MEAN: 0.0% X MEAN: 0.0% X MEAN: 143.2% X MEAN: 140.2% X MEAN: 0.0% X MEAN: 0.0% STRATIFICATION(R&RL)BY MEAN R PROPERTY TYPE STATISTICS SALES:62/7172 0.9% RZ STATISTICS SALES:0/0 0.0% BY EMV BY PRICE MCAP RATIOS MEDIAN MEAN COD PRD MCAP RATIOS MEDIAN MEAN COD PRD # % # % 2012 104.1% 106.0% 10.0 102.2 2012 0.0% 0.0% 0.0 0.0 62 UNDER 175K 106.7% 62 UNDER 175K 106.7% 2011 115.9% 119.5% 12.3 102.6 2011 0.0% 0.0% 0.0 0.0 0 175-250K 0.0% 0 175-250K 0.0% 0 250-350K 0.0% 0 250-350K 0.0% INFERRED RATIOS SALES GROWTH: -11.0% INFERRED RATIOS SALES GROWTH: 0.0% 0 350-500K 0.0% 0 350-500K 0.0% 0 500-700K 0.0% 0 500-700K 0.0% SAMPLE GROWTH: -11.4% PROP TYPE GROWTH: -11.8% SAMPLE GROWTH: 0.0% PROP TYPE GROWTH: 0.0% 0 700K-1 MIL 0.0% 0 700K-1 MIL 0.0% X MEDIAN: 102.7% X MEDIAN: 102.3% X MEDIAN: 0.0% X MEDIAN: 0.0% 0 OVER 1MIL 0.0% 0 OVER 1MIL 0.0% X MEAN: 105.9% X MEAN: 105.4% X MEAN: 0.0% X MEAN: 0.0% BROOKLYNCTR - 2/24/2012 AS SUBMITTED GROWTH ANALYSIS STATIC PROPERTY TYPE 2011 TAXABLE 2012 IMPROVE NET % TAXABLE 2011 TAXABLE 2012 IMPROV NET % TAXABLE EMV PARCELS EMV AMOUNT CHANGE CHANGE PARCELS EMV PARCELS EMV AMOUNT CHANGECHANGE PARCELS APTS* 168,687,200 98 167,706,000 170,000 -1,151,200 -0.7% 98 APTS` 168,687,200 98 167,706,000 170,000 -1,151,200 -0.7% 98 COM* 230,922,500 144 247,461,400 19,075,000 -2,536,100 -1.1% 140 COM* 224,003,500 139 247,005,400 19,075,000 3,926,900 1.8% 139 CR,CT 1,658,600 4 1,603,600 0 -55,000 -3.3% 4 CR,CT 1,658,600 4 1,603,600 0 -55,000 -3.3% 4 DB,TP,HR 12,433,600 64 10,579,800 2,500 -1,856,300 -14.9% 62 DB,TP,HR 12,109,600 62 10,579,800 2,500 -1,532,300 -12.7% 62 FARM* 168,300 1 172,200 0 3,900 2.3% 1 FARM* 168,300 1 172,200 0 3,900 2.3% 1 I 112,692,800 49 111,791,800 553,000 -1,454,000 -1.3% 49 I 112,692,800 49 111,791,800 553,000 -1,454,000 -1.3% 49 K 0 46 0 0 0 0.0% 46 K 0 46 0 0 0 0.0% 46 C/I/A LAND* 15,760,100 34 22,305,400 0 6,545,300 41.5% 37 C/I/A LAND* 11,085,100 32 10,920,400 0 -164,700 -1.5% 32 RES LAND* 2,633,500 51 1,860,800 0 -772,700 -29.3% 48 RES LAND* 2,221,200 45 1,689,100 0 -532,100 -24.0% 45 MH 0 0 0 0 0 0.0% 0 MH 0 0 0 0 0 0.0% 0 NH 0 0 0 0 0 0.0% 0 NH 0 0 0 0 0 0.0% 0 RES* 1,009,841,500 7,287 890,726,000 1,016,200 -120,131,700 -11.9% 7,286 RES* 1,008,765,500 7,279 889,786,200 1,012,800 -119,992,100 -11.9% 7,279 RZ 0 0 0 0 0 0.0% 0 RZ 0 0 0 0 0 0.0% 0 S 0 0 0 0 0 0.0% 0 S 0 0 0 0 0 0.0% 0 U 2,737,900 3 2,735,000 0 -2,900 -0.1% 3 U 2,737,900 3 2,735,000 0 -2,900 -0.1% 3 X,XC,AX,XM 8,794,400 160 8,310,600 0 -483,800 -5.5% 160 X,XC,XM,AX 8,794,400 160 8,310,600 0 -483,800 -5.5% 160 Y 66,997,500 675 53,620,300 3,000 -13,380,200 -20.0% 676 Y 66,997,500 675 53,559,000 3,000 -13,441,500 -20.1% 675 Z 0 0 0 0 0 0.0% 0 Z 0 0 0 0 0 0.0% 0 OTHERS* 0 0 0 0 0 0.0% 0 OTHERS* 13,406,300 23 13,013,800 3,400 -395,900 -3.0% 17 TOTAL 1,633,327,900 8,616 1,518,872,900 20,819,700 -135,274,700 -8.3% 8,610 TOTAL 1,633,327,900 8,616 1,518,872,900 20,819,700 -135,274,700 -8.3% 8,610 CHANGE -7.0%GROSS -8.3% NET CHECK 1,633,327,900 8,616 1,518,872,900 20,819,700 -135,274,700 -8.3% 8,610 APTS=A,H F,H L COM=C,GC,ND,NP,SC,SL,SM STATE RES. STATE RES. FARM=BF,DF,F,FF,FP,LF,LV IMPR.TOTAL 1,021,700 GROWTH CALC. 1,098,888,200 963,924,700 1,018,300 -135,981,800 -12.4% C/I/A LAND=LA,LC,LI, RES LAND=LL,LR GROWTH -12.4% STATE RESIDENTIAL PROPERTY TYPES-B,BJ,D,DJ,R,RL,RM,DB,TP,X,XC,XM,AX,RZ,Y&Z RES=B,BJ,D,DJ,R,RL,RM OTHER=CHANGED PROP TYPE STATE RES(FORMER BACKWARD TIME ADJUSTED)MEDIAN RATIO: 107.1% X 8,794,400 160 8,310,600 0 -483,800 -5.5% 160 STATE BOARD INFERRED RES RATIO(FORMER METHOD): 93.8% XC 0 0 0 0 0 0.0% 0 AX 0 0 0 0 0 0.0% 0 STATE BOARD RES RATIO(MCAP-FORWARD TIME ADJUSTED)MEDIAN RATIO: 104.1% XM 0 0 0 0 0 0.0% 0 The City of Brooklyn Center % of Parcels Changing in Estimated Market Value 2011 to 2012 Single Family Homes Townhomes 1% 2%2% 31% ■Increase ■Increase ■No Change ■No Change ■-.01% to-5% ■-.01% to-5% ■-5.01 to-10% ■ 5.01 to-10% 0 Greater than-10% ■Greater than-10% 68% 87% Condominiums Double Bungalows 5% 22% ■Increase ■Increase ■No Change ■No Change ■-.01% to-5% io-.01% to-5% ■-5.01 to-10% ■-5.01 to-10% Greater than-10% ■Greater than-10% 78% 95% .....................Residential 2012 Values -77777 . .......... ........... ........ ........ ................. Residential 2012Values REVISED 174112 DIRECT Avera ne overall Target 95.0 Number NMedian % %land Average Average Cash E uiv Ratio H Ratios %Ratios 0 Ratios %Ratios Area of Sales C.O.D. chan e Chan ge I-�,,j%',fl- F.M V Sale Price Ran�c Under 85% Under 85% Over 106°o Over 106% Cit' SF50-56 61 9.8 -IL8 -23.0% S 36,000 1121,481 $125,831 74.9-172.2 5 8.20% 10 16.39% 4/11-9/11 SF50-56 38 10.2 $122,160 $124,128 83.5172.2 I 2.63% 7 18.42% 56river 1 -15.6 -22.6 $ 114,169 $160,500 $130,600 122.9 0 0.00% 1 100.00% 561ake 11 -16.3 23.7 $ 110,942 N 50 RIVER INFL 11 -13.2 -23.6% $ 42.1181 N_51 NW 10 94.4 5.6 -11.9 -23.1% $ 36,010 $118,690 $127,050 79.2-108.3 1 10.00% 1 10.00% N52 NE 91.5 3.1 -11.3 -23.0% $ 36,100 $128,728 $140,228 86.8-97.4 0 0.00% 0 0.00% N 53 W CENT 22 97.4 11.0 -10.7 -23.0% $ 35,800 $122,613 $124,026 84.2-135.6 1 4.55% 6 27.27% N 54 SE 15 96.5 12.0 -12.8 -22.8% $ 35,500 $112,213 $115,272 74.9-172.2 2 13.33% 2 13.33% N55 SW 6 94.7 7.6 -11.9 -23.0% $ 36,600 $130,200 $139,225 83.5103.3 1 16.67% 0 0.00% N56 WATERFRONT 1 122.9 -15.8 -23.0% $ 112,590 $160,500 $130,600 122.9 U 0.00% 1 IUO.W% al/Class 01 ll al/Class 02 0 al/Class 03 0 al/Class 04 4 95.0 3.8 $ 145,425 $ 152,975 90.6-100.9 0 0.00% U 0.00% al/Class 05 4 105.8 8.8 $ 133,650 $ 126,937 88.4-122.9 U ().00-%- 2 50.00% al/Class 06 8 94.3 5.8 $ 128,662 $ 135,963 85.6-105.4 U 0.00% U 0.00% al/Class 07 45 94,9 10.7 $ 116,995 $ 121,519 74.9-172.2 5 11.11% 8 IZ78% al/Class 08 0 al/Class 09 0 al/Class 10 0 al/Class I1 0 al/Class 12 0 Sale Price to$75,000 1 172.2 $94,700 $55,000 172.2 U 0017%. 1 100.00 Sale Price$75,001 to$100,000 7 114.6 9.6 1 $ 109,671 $ 93,449 104-135.6 11 0.00% 5 71.43% Sale Price$100,001 to$115,000 21 98.1 4.7 S 113,452 $ 113,956 92.2-115.1 0 0.00% 3 14.29% Sale Price$125,001 to$150,000 24 91.1 6.7 $ 126,766 $ 137,322 79.2-122.9 3 12.50% 1 4.17% Sale Price$150,001 to$175,000 8 90.5 4.7 $ 140,387 $ 159,719 74.9-93.2 2 25.00% U 0.00% Sale Price$175,001 to$200,000 0 Sale Price$200,001 to 250,000 U Sale Price$250,001 to$300,000 0 Sale Price$300,001 and Over 0 EMV to$75,000 0 EMV$75,001 to$100,000 1 172.2 $ 94,701) $ 55,000 172.2 Il 0.00% 1 100.00% EMV$100,001 to$125,000 40 96.3 9.7 $ 114,217 $ 118,083 74.9-135.6 4 10.011% 6 15.00% EMV$125,001 to$150,000 17 93.0 5.2 $ 134,058 $ 143,064 83.5107.3 1 5.88% 1 5.88% EMV$150,001 to$175,000 3 93.2 11.6 $ 156,000 $ 155,089 90.6-122.9 U 0.00% 1 33.33% EMV$175,001 to 200,000 11 EMV$200,001 to 250,000 U EMV$250,001 to$300,000 U EMV$300,001 and Over 0 Rambler 50 95.8 8.7 $121,264 $125,573 79.2-172.2 3 6.00% 7 14.00% Split Emr3 1 135.6 $125,000 $92,214 135.6 U 0.00% 1 100.00 Split Level 4 90.8 12.7 $126,250 $132,614 84.2-128.8 1 25.00% 1 25.00% 11/4 Ex p. 5 96.5 11.7 $112,640 $120,880 74.9-114.6 1 20.00% 1 20.00% 1/2Exp. 1 90.6 $154,000 $170,000 90.6 0 0.00% U 0.00% 1 3/4 Ex p. 0 2 Story U Airport 0 U A Iartnrents -.05 U Commercial/industrial -.03 0 Hi hwa /Freewa -.10 3 105.6 8.9 $123,556 $113,694 96.8-122.9 0 0.1111% 1 33.33% Railroad -.05 U Thru S1ree1 -.115 8 90.1 6.1 $116,337 $129,628 79.2-104 2 25.00-% 0 0.00% Park 1.04 2 90.4 7.6 1 $127,100 $141,550 83.5-9°.4 1 511.011% U 0.00% All Townhouses 8 94.6 10.5 -20.1 -23.0% $ 17,600 $79,500 $82,750 79.8-120 1 12.50% 2 25.00% RAMBLERS 1 93.7 $137,800 $146,995 93.7 n 0.00% u SE/SF 3 95.4 7 $77,366 $77,079 95.4 0 B.00% 1 33.33'1.. SPLIT LEVEL 0 1 1/2 Ex p 0 2 STORY 4 94 15.4 $66,525 $70,942 79.8-120 1 25.011% 1 25.00'/,, Condominiums 2 93 8.3 -5.5 -23.7 $ 9,900 $62,150 $67,250 85.3-100.6 0 II.INI% 0 0.001/1, Double's 11 -12.6 -23.5 1 38.3181 t\FINAL Ratios ss 12 ASMT.xlsz 2012 Asm1 DIRECT" ........ .............Residential 2012 Values' .. ........................................ Residential 2012Values REVLVED 114112 TIME ADJ Average overall Time Adj Target 100 Number Median % %land Average Average Cash E uiv Ratio #Ratios %Ratios #Ratios %Ratios Area of Sales Ratio COD change Change Land valu, E.M.V. Sale Price Kan ge Under 85% Under 85% Over 106% Over 106% City SF 50-56 61 104.3 9.7 -11.8% -23.0% $36,000 $121,481 $116,294 859-181.4 0 0.00% 26 42.62"/. 4/11-9/11 SF 50-56 38 103.4 10.3 $122,160 $117,383 1 87.2-181.4 0 0.00% 15 39.47% 56 river 1 133.1 -15.6% -22.6 $114,169 $160,500 $120,609 133.1 0 0.00% 1 100.00% 56 lake 0 16.3% -23.7 $110,942 N 50 RIVER INFL 0 -13.2% -23.6% $42,100 N 51 NW 10 101.8 6.8 -11.9% -23.1 $36,000 $118,690 $115,583 90.7-124.2 0 0.00% 4 40.00% N52 NE 7 94.7 3.5 -11.3% -23.0% $36,100 $128,728 $132,453 93.8-104 0 0.00% 11 0.00% N 53 W CENT 22 105.6 9.8 -10.7% -23.0% $35,800 $122,613 $114,402 89.9-148.1 0 0.00 10 45.45% N 54 SE 15 107.5 11.1 -12.8% -22.8% $35,500 $112,213 $105,552 85.9-181.4 0 0.00% 9 60.00% N55 SW 6 99.8 7.9 -11.9% -23.0% $36,600 $130,200 $131,702 87.2-110.3 0 0.00% 2 33.33% N56 WATERFRONT I 133.1 -15.8% -23.0% $112,590 $160,500 $120,609 133.1 0 0.00% 1 100.00% NI/Class 01 0 NI/Class 02 0 al/Class 03 0 al/Class 04 4 105.3 4.5 $ 145,425 $ 141,040 93.8-110.3 0 0.00% 2 50.00% NI/Class 05 4 111.5 8.5 1 $ 133,650 $ 117,186 100.4-133.1 0 0.00% 3 75.00% NI/Class 06 8 103.4 3.2 1 $ 128,662 $ 125,406 97.3-109.1 0 0.00% 2 25.00 NI/Class 07 45 104.3 11.1 $ 116,995 $ 112,395 85.9-181.4 0 0.00% 19 42.22% al/Class 08 0 al/Class 09 0 al/Class 10 0 al/Class I I 0 al/Class 12 Sale Price to$75,000 1 181.4 $94,700 $52,195 181.4 0 0.00 1 100.00% Sale Price$75,001 to$100,0181 13 116.4 9.1 $ 109,691 $ 91,728 105.4-148.1 0 0.00% 12 92.31% Sale Price$100,001 to$125,000 22 106.1 5.3 $ 118,500 $ 112,282 90.7-133.1 0 ().(K)% 11 50.00 Sale Price$125,001 to$150,000 23 97.3 5.6 $ 129,195 $ 132,982 85.9-110.3 0 ().(K)% 2 8.70% Sale Price$150,001 to$175,000 2 96.0 2.3 $ 153,750 $ 160,245 93.8-98.2 0 O.fRI'% 0 0.00 Sale Price$175,001 to$200,000 0 Sale Price$200,001 to 250,000 11 Sale Price$250,001 to$300,000 0 Sale Price$300,001 and Over ll EMV to$75,010 U EMV$75,001 to$100,0(N) 1 181.4 $ 94,700 $ 52,195 181.4 ll 0.00% 1 100.00% EMV$100,001 to$125,000 40 105.9 9.6 $ 114,217 $ 109,220 85.9-148.1 0 0.00% 20 50.00% EMV$125,001 w 5150000 17 102.8 4.5 $ 134,058 $ 131,284 87.2-114.1 0 0.00% 4 23.53% EMN'$150,001 to$175,000 3 98.2 13.3 $ 156,000 $ 147,033 93.8-133.1 U 0.00% 1 33.33% EMN$175,001 to 200,0011 0 EMV$200,001 Io 250,00(1 U EMV$250.001 to$300,000 0 EMN'$300,001 and Over () Rambler 50 104.6 8.7 $121,264 $116.279 87.2-181.4 0 0.00% 22 44.00% Split Entry 1 148.1 $125,000 $84,376 148.1 0 0.00% 1 100.00% Split Level 4 99.3 12.0 $126,250 $122,139 92-135.7 0 0.00% 1 25.00% 11/4 Ex p. 5 105.4 10.3 $112,640 $108,568 85.9-131.3 0 0.00% 2 40.00% 1 1/2 Ex p. 1 93.8 $154,000 $164,220 93.8 0 0.00% 0 0.00 13/4 Ex p. 0 2 Stor- 0 Airport 0 ll Apartments -.05 11 Copmnercial/Induslrial -.03 0 lli hwav/Freeway (-.lot 3 109,4 10.4 $123,566 $107,662 99-133.1 0 0.00% 2 66.67% Railroad -.OS U Thru Street -.115 8 98.0 5.9 $116,337 $120,102 87.2-112.6 0 0.00% 1 12.50% Park +.04 2 94.5 7.6 $127,100 $135,534 87.2-101.7 11 0.00./ 0 0.66K.- .00% All Townhouses 637 8 103.3 10.7 -20.1% -23% $17,600 $79,500 $75,684 88.9-134.9 0 0.00% 3 37.50% RAMBLERS 1 100.6 $137,800 $136,999 100.6 0 0.00% U 0.00% SE/SF 3 105.3 7.3 $77,366 $70,054 101.2-124.2 0 0.00% 1 33.33% SPLIT LEVEL 0 1 1/2 Ex p 0 2 STORY 4 101.2 15 $66,525 $64,577 88.9-134.9 U 0.00% 2 50.00% Condominiums 2 99.6 6.4 -5.5% -23.7 $9900 $62150 $62597 93.2-106 0 0.00% 1 50.00% Double's 11 -12.6"/. -23.5% $38,300 ------------.. _ 2 \FINAL Ratios ss 12 ASMT.xlsx 2012 Asmt TIME ADJ- CITY OF BROOKLYN CENTER RESIDENTIAL MEDIAN ASSESSED VALUE AND TAX CAPACITY TAX YEARS 2003 - 2013 Median Value Percentage Tax Capacity Change Single Family Residential ° Payable 2003 $140,200 17.52/0 $1,402.00 Single Family Residential $152,000 8.42% $1,520.00 Payable 2004 Single Family Residential Payable 2005 $164,100 7.96% $1,641.00 Single Family Residential $176,400 7.50% $1,764.00 Payable 2006 Single Family Residential $190,400 7.94% $1,904.00 Payable 2007 Single Family Residential ° Payable 2008 $196,100 2.99/0 $1,961.00 Single Family Residential $180,400 -8.01% $1,804.00 Payable 2009 Single Family Residential $156,500 -13.25% $1,565.00 Payable 2010 Single Family Residential Payable 2011 $137,500 -12.14% $1,375.00 Single Family Residential $133,900 -2.62% $1,339.00 Payable 2012 Single Family Residential $119,400 -10.83% $1,194.00 Payable 2013 The median tax capacity listed for 2013 does not include any reduction for estead market value exclusion. 11 0 CITY OF BROOKLYN CENTER RESIDENTIAL NEIGHBORHOODS 2012 ASSESSMENT AVG. LOT VALUE IV _ NORTHWEST ®_ RIVER INFLUENCE ® 1®III AVG LOT$42,100 AVG LOT$36,000 �,, , ® 1 ®® M�0 o m l - NORTHEAST W jimm e ®® M. AVG LOT$36,100 ® I e� ® AVERAGE RIVERFRONT ® ®®� AVG LOT$122,400 CENTRAL ®®®®®® OVERSIZE RIVERFRONT ® ® AVG LOT$35,800 ® AVG LOT$123,900 Awl _ SMALL RIVERFRONT ® ®m ® ®®®®® AVG LOT$103,300 �® FLOOD PLAIN RIVERFRONT ® �� ®®®® � MM®M® AVG LOT$112,600 DEMMMMM a Elp SOUTHEAST ® ® AVG LOT$35,500 UPPER TWIN LAKE ® I @ G AVG LOT$114,800 ® i WPM MME HE Q UkM SOUTHWEST AVG LOT$36,600 MIDDLE TWIN LAK _ AVG LOT$107,100 D N This map prepared by the assessing division for illustrative purposes only. i Comparable Sales-All Neighborhoods Cash Bsmt Central Deck Porch Total Total Equiv.Sale # Street Name Style Age GBA Bsmt Area Finish% Gar Location #Cars Air Area Area Bdrm Baths Sale Date Price 625 59th Ave N 1 1/4 1941 1,074 825 50% Detached 3 Yes 104 3 2 10/13/2o10 $91,650 5425 Colfax Ave N 1 1/4 1951 1,152 832 70% Attached 1 Yes 72 1 2 1 3130/20111 6130 Bryant Ave N 1 1/4 1952 1,184 832 85% Detached' 2 Yes 168 3 t2 10/28/2010 $159,000 5620 Fremont Ave N 1 1/4 1948 1,25 12 872 50% Detachedi 2 Yes 3 12- 9/23/2011 $105,000 5800 Ewing Ave N 1 1/4 1951 1,4_40 1,120 50% Detached; 2 Yes 4 12 _ 11112/2010 $143,748 816 69th Ave N 1 1/2 1950 2,140 896 0% Detached' 2 Yes 316 5 i3 9119/2011, $170,000 5921 Lyndale Ave N Rambler 1952 884 884 75% Attached, 1 Yes 80 64 312 9/30/2011 $98,932 5345 Humboldt Ave N Rambler 1954 942 912 i5°i° Detached 1 Yes 4 2 9/ 011 $120,280 6001 Colfax Ave N Rambler 1954 950 950 50% Attached/Detached' 3 Yes 3 2 1228/2010 $145,000 5212 Howe La Rambler 1959 9581 950 75%_ Detached 2 Yes 3 1 8/25/2011_ $111,550 7018 Drew Ave N Rambler 1958 Tj 960 9601 Detached 2 Yes 3 i2 4/18/2011 $109,900 3712 Urban Ave Rambler 1958 960 9601 Detached 2 Yes 168 2 1 11/19/2010 $113,490 6227 Colfax Ave N Rambler 1955 _ 974! 960 60%1 Detached 1 Yes 3 1 3/30/2011. $112,250 6221 Colfax Ave N Rambler 1 1955 1 975 960 75% Detached/Detached 3 Yes 4 2 111222010 $124,704 5937 Vincent Ave N Rambler 1955 1 976 976 70% Detached 2 Yes 288 400 2 2 3/25,t20111 $125,000 6112 Emerson Ave N Rambler 1956 '1976 960 75% Detached 1 i Yes 170 3 2 _ 5/20/2011 $105,000 5952 Admiral La Rambler 1956 1,000 1,000 40% Detached 2 Yes 320 2 _ _ 1 ai28rzo11 $100,000 5830 Admiral La Rambler 1955 1,000 1,000 75°i° Attached 1 Yes _ 180 200 4 2 3/30/2011 $127,700 6913 France Ave N Rambler 1959 1,000i 11000 50% Detached 2 Yes 2 2 5/26/2011 $112.000 7124 France Ave N Rambler 1957 1,0_00 11000 0% Detached 2 Yes 3 1 10/18/2010 $132,000 713_0 France Ave N Rambler 1957 1,000 1,000 85% Detached z Yes i a 2 8/25/2011 $136,350 5127 France Ave N .Rambler 1961 1,003 984 50% Detached 2 Yes 3 2 6/10/2011. $131,160 6142 Kyle Ave N 1 Rambler 1955 1,016 960 75% Detached 2 Yes _j 3 2 9/712011 $86,000 5334 Fremont Ave N Rambler 1936 1,024 660 0% Detached 2 No 3 1 _ 7/28/2o11 $55,000 7124 Oliver Ave N Rambler 1962 1,032 1,032 85% Detached 2 Yes 150 a 1 8/312o11 $128,299 6006 Halifax PI Rambler 1955 1,036 1,000 75% Attached 2 Yes 170 4 2 5122011 $133,000 2336 Brookview Dr Rambler 1956 1,040 1,040 65% Detached 1 Yes 180 3 2 11/11/2010 $122,600 2325 Brookview Dr Rambler 1956 1,040 1,040 7s°i° Detached 2 Yes 2 2 ! 6/1/2011 $110,000 T. - - -- - 7019 Quail Ave N Rambler 1957 1,0401 11040 75% Detached 1 Yes 280 2 z 11/42010 $114,900 6724 Dupont Ave N Rambler 1967 1,040 1,032 2 Yes 3 2 6/24/2011 $134,900 I"or 6342 Girard Ave NN Rambler 1957 1,04- 1,oa0z 75% Attached 2 Yes zao a 2 412/2011 $138,000 ° Detached o 1- d 2 Yes 4 2 9/26/2011 $139,000 1500 71st Ave N Rambler 1968 1,048, 1,032 90% Attached' 2 Yes 176 1 6 2 _4/21/_2011 $138,000 3707 DuhontA e N Rambler 1971 1,050 1,008 75/o Detached ° 2 Yes 280 4 2 8/22011 $154,800 Dupont ° 2 Yes 4 2 9/30/2011 $131,400 2_201 54th Ave N Rambler 1955 1,056 1,056 50% Detached 1 Yes 3 1 10/14/2010 $110,000 5301 63rd Ave N Rambler 1959 1,065 1,056' 0% Detached'! 2 Yes 160 3 2 4/27/2011 $99,849 ° i 2 Yes 3 2 7/29/2011 $105,000 6217 Scott Ave N Rambler 1958 1,065 1,065 75 r° Detached 3007 65th Ave N Rambler 1959 1-,0651 1,056 75% Detached' 2 Yes 3 2 7/25/2011 $143,000 7106 Quail Ave N Rambler 1957 1,070 1,051 75% Detached z Yes 4 2 10/20/2010 $108,006 382_8 Oak St Rambler 1954 1,100 1,100 75% Attached 2 Yes 120 2 2 7/15/2011 $135,707 6937 Quail Ave N Rambler 1957 1,117 1,095 75% Detached 2 Yes 192 4 2 5t2r20111 $139,900 3907 56th Ave N Rambler 1956 1,1261 1,100 750ro Attached 4 Yes 80 327 3 2 7/1312011 $151,682 5637 Girard Ave N Rambler 1962 1,170 1,040 WWI Attached/Detached 3 Yes 3 2 7129/2011 $164,668 5730 Drew Ave N Rambler 1955 1,200 1,000 60%. 1 Yes 160 2 2 9/16/2011 $121,000 6224 Major Ave N Rambler 1962 1,222 1,222 80% Attached 2 Yes 132 4 2 10/29/2010 $159,700 This information was provided by the City of Brooklyn Center Assessor's office. Bsmt Central Deck Porch Total Total Equiv.Sale # Street Name Style Age GBA iBsmt Area Finish% Gar Location #Cars Air Area Area Bdrm Baths Sale Date Price 6449 Marlin Dr Rambler 1958 1,232' 1,232 50% Detached 2 Yes 3 2 5/27 $125,000 L 2 6/28/2011 $ 6049 EWIn Ave N Rambler 1955 1,248 1,248 75% Detached 2 Yes _ _ 3 135,000 5201 Eleanor Rambler 1958 1,248 1,248 75% Detached 2 No 5 3 10/29/2010 $149,000 3606 Commodore Rambler 1955 1,300 1,000 75% Attached 2 Yes 140 3 2 3/28/2011 $135,000 3407 62nd Ave N Rambler 1955 1,412 1,092 50% Attached 2 Yes 208 128 3 2 8115/2011 $116,400 6648 W River Rd Rambler 1945 1,462 1,526 40% Attached 2 No 3 2 4/20/2011 $130,600 4200 61stAve N Rambler 1956 1 1,528 1,2a 7s°ro Attached 1 Yes 60 72 3 ---+ 2 6/27/2011 $117,000 3701 154th Ave N Rambler 1955 1,610 1,0501 75%' � Attached 1 Yes 240 3 3 3/29/2011 $141,000 2901 63rd Ave N Rambler 1957 1,706 1,256' 75% Attached 1 Yes 392 77 4 2 10/14/2010 $159,900 7037 Knox Ave N Rambler 1966 1,716 1,716 20% Tuck Under 2 Yes 96 3 2 5/31/2011 $141,000 2807 63rd Ave N Split Entry/Foyer 1957 864 864 90% Attached 1 Yes 288 4 2 3/17/2011 $92,214 6418 Kyle Ave N ,Split Level i 1956 j 1,012 1,012 so°r° Detached 2 No 266 a 1 7/29/2011 $85,500 6419 June Ave N Split Level 1957 1,056 572 95% Detached 2 Yes 3 2 3124/2011 $140,000 6924 Scott Ave N Split Level 1958 1,104 1,1041 90% Detached 2 Yes 6 2 1216/2010 $146,955 6918 Toledo Ave N Split Level 1958 1,320 1,320 60% Tuck Under 2 Yes 4 2 6/1/2011 $158,000 This information was provided by the City of Brooklyn Center Assessor's office. "The Thing" -❑ Interactive Market Analytics from the Minneapolis Area Association of... Page 1 of 1 THETHINU Median Sales Price • PRESENTED BY; A I Jan 09 thru Dec 09 Jan 10 thru Dec 10 Jan 11 thru Dec 11 NINN[APO[�S AI[A Alulhtwa $130,350 $134,900 $120,000 $115,900 -f REALTORS' $96,200 $110,000 $76,900 $12,000 $81,500 Area INOW" ft.Al DMMW ZIP Dry +3,5% -11.0% +25.1% -25.2% +5,4ab •24.5% S&. � —i ----- Traditional Foreclosure Short Sale Breakouts Traditional Foreclosure Short Sale Pick Up to 2 stso,000 Price Ranges smo,ouo Foreclosures Property S,Eum • New Cons-1ruction Sloo.oao ukiG Print Share Email Powered By k Jan 05 Jan 06 Jan 07 Jan 08 Jan 06 Jan 10 Jan 11 .. Feedback 89 1 , 1. � 1 1 1 1 �. 1 1 1 1 1 1 1 3.01IP� :?.tai fi.3Gi13 :, �: ,1 , t: 11 ®� 1 1 http://thething.mplsrealtor.com/ 1/3/2012 CITY OF BROOKLYN CENTER TOWNHOME SALE ANALYSIS FOR 2012 ASSESSMENT SALES FROM OCTOBER, 2010 TO SEPTEMBER, 2011 NBHD TOWNHOME COMPLEX # of Units # SALES AVG. SALE PRICE 100 Evergreen Estates 8 0 No Sales 105 Rosemary Terrace 10 0 No Sales 110 Humboldt Square 8 1 $64,135 115 Riverwood 21 0 No Sales 120 Brookwood 32 1 $100,000 125 Northbrook Est. 8 0 No Sales 130 Madsen Floral 28 0 No Sales 140 Moorwood 36 1 $66,000 150-152 Hi-Crest 60 1 $52,000 160 Earle Brown Farm Estates 100 1 $65,767 170-172 Earle Brown Farm Townhomes 20 0 No Sales 180 Creek Villas 103 1 $77,103 190-194 Mallard Creek 206 1 $90,000 196 Riverwood Estates Townhomes 21 1 $146,995 197 France Ave 4 0 No Sales 198 Tanami 2nd Addn-Bristol Village 21 0 No Sales Totals 686 8 TOWNHOME SALES BY STYLE # SALES TOWNHOME STYLE AVG. MKT VALUE AVG. SALE PRICE 1 Rambler $137,800 $146,995 3 Split Entry/Split Foyer $77,366 $77,079 0 Split Level No Sales No Sales 0 1 112 Expansion No Sales No Sales 4 Two Story $66,525 $70,942 G\BOARD\[THSALES 12AS MT.xls]Townhomes Sales CITY OF BROOKLYN CENTER CONDOMINIUM SALE ANALYSIS FOR 2012 ASSESSMENT SALES FROM OCTOBER, 2010 TO SEPTEMBER, 2011 NBHD TOWNHOME COMPLEX # of Units # SALES AVG. SALE PRICE 201-203 The Beach Condos 122 2 $67,250 204 Humboldt Court Condos 36 0 No Sales 205 Beard Ave Condos 4 0 No Sales Totals 162 2 TOWNHOME SALES BY STYLE NBHD # TOWNHOME STYLE Percent of Growth 201-203 The Beach Condos -7.48% 204 Humboldt Court Condos 8.43% 205 Beard Ave Condos -7.05% Condos in Brooklyn Center saw an average decrease of 5.58% in the 2012 assessment for taxes payable in 2013. G:\BOARD\2012\Jill\[CONDO SALES 2012 ASMT.xls]condo sales CITY OF BROOKLYN CENTER COMMERCIAL AND INDUSTRIAL ANALYSIS BY USE 2011 VS. 2012 2011 2012 New ^/Change %Change Type of Property EMV Totals EMV Totals Construction Excluding Improv. Including Improv. Auto Retail&Gas $9,824,100 $9,896,800 $0 0.7% 0.7% Auto Dealers $26,045,200 $26,595,000 $0 2.1% 2.1% Banks $5,902,999 $5,878,000 $0 -0.4% -0.4% Day Care $2,394,000 $2,432,000 $0 1.6% 1.6% Entertainment $13,257,400 $13,257,400 $0 0.0% 0.0% Fast-Food/Restaurant $13,176,000 $13,040,000 $0 -1.0% -1.0% Greenhouse/Farm Green Acres $1,400,700 $1,150,082 $0 -17.9% -17.9% Hotel $24,172,000 $24,564,500 $0 1.6% 1.6% Medical Office $11,815,200 $11,638,900 $0 -1.5% -1.5% Mortuary $830,000 $830,000 $0 0.0% 0.0% Office Large $43,018,500 $61,573,300 $17,975,000 1.3% 1.3% Office Small $11,904,400 $11,819,400 $0 -0.7% -0.7% Office Condominiums $2,441,400 $2,295,000 $0 -6.0% -6.0% Retail $44,525,000 $45,818,000 $315,0001 2.2% 2.9% Nbad Shopping Centers $16,077,400 $16,422,100 $220000 0.8% 2.1% Veterinary $520,000 $501,000 $0 -3.7% -3.7% Vacant Land Comm/Ind $5,591,200 $4,881,200 $0 -12.7% -12.7% Industrial $114,350,000 $113,764,000 $503,000 -1.0% -0.5% Shingle Creek Crossing $16,457,500 $16,911,0001 $565,000 -0.7% 2.8% I Totals $347,245,499 $366,356,682 $195780001 -0.1% 5.5% GASPREDSHT\Assessor\2012 CIA12012 Growlh.xlsx]2012 C&I Growth 2011 Commercial 12 Month Study WUNIJ PID# ADDRESS DATE SALE PRICE CASH EQUIV 20091MP I 2009EMV I 2010IMPI 2010EMV 1 2011 IMP I 2011EMV IPTISCISECOdPERPROPI ADJ PRICE I COMMENTS RATIO 63 34-117-23-14-0036 344 WATER ST 201011 220.000.00 220,000.00 0.00 169,300.00 0.00 133,900.00 0.00 133,900.00 C O 353 0.00 220,000.00 60.86% 86 19-118-21-33-0008 9390 27TH AVE N 201102 325,000.00 325,000.00 0.00 125,000.00 0.00 125,000.00 0.00 215,000.00 C C 344 0.00 325,000.00 R/C SPLIT 66.15% 40 13-118-22-12-0003 4445 NATHAN LA N 201108 20,500,000.00 20,500,000.00 0.00 14,069,000.00 0.00 13,698,300.00 0.00 13,699,800.00 C W 412 0.00 20,500,000.00 66.83% 46 07-028-24-21-0031 4901 EXCELSIOR BLVD 201105 450,000.00 450,000.00 0.00 346,000.00 0.00 333,900.00 0.00 333,900.00 C W 344 0.00 450,000.00 74.20% 99 05-117-22-31-0006 109 BUSHAWAY RD 201102 1,750,000.00 1,750,000.00 0.00 1,522,000.00 0.00 1,355,000.00 0.00 1,355,000.00 C W 341 0.00 1,750,000.00 77.43% 63 34-117-23-11-0124 217 WATER ST 201108 649,000.00 649,000.00 0.00 664,000.00 0.00 509,000.00 0.00 509,000.00 C W 353 0.00 649,000.00 78.43% 34 04-117-22-14-0012 601 CARLSON PKWY 201102 54,402,887.00 54,402,887.00 0.00 42,000,000.00 0.00 39,300,000.00 0.00 44,410,600.00 C W 344 0.00 54,402,887.00 81.63% 63 34-117-23-11-0121 229 WATER ST 201102 675,000.00 675,000.00 160,000.00 740,000.00 0.00 577,000.00 0.00 577,000.00 C W 353 0.00 675,000.00 85.48% 34 34-117-22-14-0006 12600 WHITEWATER DR 201103 9,550,000.00 9,550,000.00 0.00 9,100,000.00 0.00 8,300,000.00 0.00 8,300,000.00 C W 344 0.00 9,550,000.00 86.91% 80 12-118-23-41-0070 52 HAMEL RD 201011 560,000.00 560,000.00 0.00 575,100.00 0.00 459,000.00 0.00 496,000.00 C W 494 0.00 560,000.00 88.57% 80 11-118-23-14-0012 810 TOWER DR 201105 555,000.00 555,000.00 0.00 586,200.00 0.00 527,000.00 0.00 495,000.00 C W 494 0.00 555,000.00 89.19% 61 09-116-22-33-0059 15756 VENTURE LA 201012 495,000.00 495,000.00 0.00 544,000.00 0.00 489,000.00 0.00 441,000.00 C M 399C 5,000.00 490,000.00 INCL 0059 90.00% 50 31-120-2142-0080 11141 ZEALAND AVE N 201101 150,000.00 150,000.00 0.00 205,000.00 0.00 133,000.00 0.00 136,500.00 C C 399 0.00 150,000.00 91.00% 46 16-117-21-21-0088 5601 LAKE ST W 201101 400,000.00 400,000.00 0.00 335,000.00 0.00 316,600.00 0.00 365,000.00 C W 344 0.00 400,000.00 91.25% 61 23-11622-23-0085 8905 AZTEC DR 201109 378,000.00 378,000.00 0.00 425,000.00 0.00 382,500.00 0.00 345,000.00 C W 399C 0.00 378,000.00 91.27% 20 06-027-24-32-0008 5270 84TH ST W 201011 6,800,000.00 6,800,000.00 0.00 5,429,600.00 0.00 5,429,600.00 0.00 6,250,000.00 C W 344 7,500.00 6,792,500.00 92.01% 76 22-119-22-13-0019 13151 WEAVER LAKE RD N 201011 1,650,000.00 1,650,000.00 0.00 1,669,600.00 0.00 1,587,000.00 0.00 1,567,900.00 C W 353 0.00 1,650,000.00 95.02% 40 22-118-22-23-0031 3370 ANNAPOLIS LA N 201102 362,000.00 362,000.00 0.00 406,000.00 0.00 364,900.00 0.00 344,200.00 C W 3990 0.00 362,000.00 95.08% 20 16-027-24-11-0009 9432 LYNDALE AVE S 201103 725,000.00 725,000.00 0.00 883,500.00 0.00 795,200.00 0.00 700,000.00 C C 353 0.00 725,000.00 96.55% 40 36118-22-14-0035 605 STATE HWY NO 169 201106 25,073,500.00 25,073,500.00 0.00 24,717,000.00 0.00 22,100,000.00 0.00 24,542,900.00 C W 344 0.00 25,073,500.00 97.88% 72 34-118-23-24-0056 2075 DANIELS ST 201012 425,000.00 425,000.00 0.00 619,000.00 0.00 498,000.00 0.00 418,000.00 C C 353 0.00 425,000.00 98.35% 61 14-11622-12-0023 11825 TECHNOLOGY DR 201103 950.000.00 950,000.00 0.00 1,012,000.00 0.00 940,000.00 0.00 940,000.00 C W 350 0.00 950,000.00 98.95% 61 10-11622-44-0011 12910 PLAZA DR 201011 1,250,000.00 1,250,000.00 0.00 1,378,000.00 0.00 1,325,000.00 0.00 1,246,000.00 C W 350 0.00 1,250,000.00 99.68% 42 29-028-2441-0013 2401 66TH ST W 201011 407,500.00 407,500.00 0.00 587,000.00 0.00 507,000.00 0.00 407,000.00 C W 344 0.00 407,500.00 99.88% 48 22-119-21-11-0071 8459 XERXES AVE N 201104 235,800.00 235,800.00 0.00 354,600.00 0.00 354,600.00 0.00 235,800.00 C W 499 0.00 235,800.00 100.00 61 09-11622-33-0060 15750 VENTURE LA 201011 360,000.00 360,000.00 0.00 450,000.00 0.00 405,000.00 0.00 351,000.00 C M 399C 9,000.00 351,000.00 INCL 0060 100.00% 61 15-11622-24-0002 13625 TECHNOLOGY DR 201106 39,500,000.00 39,500,000.00 0.00 51,105,000.00 0.00 44,000,000.00 0.00 39,500,000.00 C W 344 0.00 39,500,000.00 100.00% 94 06-029-23-22-0087 2400 37TH AVE N E 201012 385.000.00 399,434.00 0.00 400,000.00 0.00 400,000.00 0.00 300,000.00 C W 419 100,000.00 299,434.00$14,434 IN SPECIALS 100.19 63 34117-23.14-0037 356 WATER ST 201109 405,000.00 405,000.00 0.00 175,000.00 0.00 260,000.00 0.00 409,000.00 C W 459 0.00 405,000.00 R/C Split 100.99% 24 30-117-21-23-0031 4974 LINCOLN DR 201108 97,000.00 97,000.00 0.00 119,900.00 0.00 99,500.00 0.00 99,500.00 C W 399 0.00 97,000.00 102.58% 22 03-118-21-14-0034 3220 CO RD NO 10 201108 1,950,000.00 1,988,913.00 0.00 2,465,000.00 0.00 2,086,600.00 0.00 2,053,300.00 C W 344 0.00 1,988,913.00 INCL$38,913 SPECIALS 103.24% 34 01-117-22-24-0025 10590 WAYZATA BLVD 201107 2,700,000.00 2,700,000.00 0.00 3,000,000.00 0.00 2,824,000.00 0.00 2,824,000.00 C W 344 5,000.00 2,695,000.00 104.79% 20 31-11621-04-0046 7400 109TH ST W 201109 925,000.00 925,000.00 0.00 1,099,300.00 0.00 989,400.00 0.00 989,400.00 C W 344 10,000.00 905,000.00 109.33% 76 14-119-22-44-0060 11318 86TH AVE N 201109 545,000.00 545,000.00 0.00 765,000.00 0.00 782,900.00 0.00 597,000.00 C W 399 0.00 545,000.00 109.54 61 08-1162243-0040 7820 TERREY PINE CT 201105 1,450,000.00 1,450,000.00 0.00 1,774,000.00 0.00 1,676,000.00 0.00 1,676,000.00 C W 344 0.00 1,450,000.00 115.59% 42 26-028-24-11-0075 6244 CEDAR AVE S 201105 1,100,000.00 1,100,000.00 0.00 1,479,000.00 0.00 192,000.00 0.00 1,287,000.00 C Q 471 0.00 1,100,000.00 117.00% 61 01-11622-24-0052 6436 CITY WEST PKWY 201102 3,525,000.00 3,525,000.00 0.00 5,939,100.00 0.00 5,074,100.00 0.00 4,200,100.00 C M 344 0.00 3,525,000.00 INCL 0053 119.15% 34 29-117-22-32-0029 5125 CO RD NO 101 201105 2,220,000.00 2,220,000.00 0.00 4,500,000.00 0.00 4,100,000.00 0.00 2,800,000.00 C W 344 0.00 2,220,000.00 126.13% 76 21-119-22-14-0019 14500 WEAVER LAKE RD N 201103 950,000.00 950,000.00 0.00 1,325,800.00 0.00 1,348,500.00 0.00 1,200,000.00 C W 350 0.00 950,000.00 126.32% 48 29-119-21-34-0051 7007 LAKELAND AVE N 201107 2,350,000.00 2,350,000.00 0.00 3,540,400.00 0.00 3,307,400.00 0.00 3,307,400.00 C W 534 0.00 2,350,000.00 140.74% 46 21-117-21-23-0127 6002 EXCELSIOR BLVD 201103 450,000.00 450,000.00 0.00 772,000.00 0.00 692,000.00 0.00 641,900.00 C W 353 0.00 450,000.00 142.64 80 11-118-2341-0005 3595 HICKORY DR 201108 242.500.00 242,500.00 0.00 419,000.00 0.00 377,000.00 0.00 355,000.00 C W 406 0.00 242,500.00 146.39% 48 23-119-21-33-0062 3020 BROOKDALE DR N 201108 501.855.00 512,058.00 0.00 910,000.00 0.00 842,300.00 0.00 770,000.00 C W 412 0.00 512,058.00 INCL$10,203 SPECIALS 150.37% 30 25-117-22-24-0039 632 11TH AVE S 201102 350,000.00 350,000.00 0.00 1,090,000.00 0.00 752,000.00 0.00 538,000.00 C M 494 0.00 350,000.00 INCL 0038 153.71% 34 34-117-2244-0019 6000 CLEARWATER DR 201109 11,434,040.00 11,434,040.00 0.00 32,330,000.00 0.00 21,547,000.00 0.00 19,884,100.00 C M 344 0.00 11,434,040.00 INCL 0017&44-0019 173.90% 72 33-118-23-14-0020 2455 INDUSTRIAL BLVD W 201010 240,000.00 240,000.00 0.00 1,032,000.00 0.00 793,000.00 0.00 563,000.00 C M 111 0.00 240,000.00 INCL 0021 234.58% 48 28-119-21-24-0012 5800 74TH AVE N 201108 320,000.00 320,000.00 0.00 843,600.00 0.00 810,900.00 0.00 794,600.00 C W 344 0.00 320,000.00 248.31% Number of Sales: 47 Median: 99.9% Mean: 108.9% Aggregate: 96.4% COD: 22.0% BROOKLYN CENTER-COMAND MrktTmFctr: 0.000% sales PID PT UC SlsDate ActSI$Prlce SC PersProp/Spcls AdjPrice Emv 10 Imp 11 Emv 11 ActRatio 11 AdjRatio 11 Imp 12 Emv 12 ActRatio 12 AdjRatio 12 Growth CS-01 03-118-21-14-0034 a' C 344 08/23111 $1,950,000 W (38,913) $1,988,913 $2,086,600 - $2,053,300 103.24% 103.24% - $1,990,000 100.05% 100.05% -3.08% CS-02 10-118-21-42-0014 1 494 07/12/11 $550,000 0 25,000 $525,000 $570,000 $570,000 108.57% 108.57% - $550,000 104.76% 104.76% -3.51% CS-03 35-119-21-14-0016 b' 1 406 05/11/11 $1,300,000 W (8,086) $1,308,086 $1,752,000 $1,300,000 99.38% 99.38% 500,000 $1,780,000 97.85% 97.85% -1.54% $ 3,800,000 $ (21,999) $ 3,821,999 $ 4,408,600 - $ 3.923.300 102.65% 102.65% 500,000 $ 4,320,000 99.95% 99.95% -2.63% a`Sale includes$0 of Personal Property and$38,913 Special Assessments paid by the buyer ActRatio 11 AdjRatio 11 ActRatio 12 AdjRatio 12 b'Sale includes$0 of Personal Property and$8,086 Special Assessments paid by the buyer 3 3 Number of Sales 3 3 b'Sale PID's 2010 EMV was change ordered on 03/01/2010 from$1,790,000 to$1,752,000. 103.2% 103.2% Median 100.1% 100.1 b'Sale PID's 2010 EMV was change ordered on 05/11/2011 from$1,752,000 to$1,350,000. 103.7% 103.7% Mean(Average) 100.9% 100.9% b'Sale PID has$500,000 Improvement Amount for 2012 which is 28%of 2012 EMV&39%of Sale Price 102.7% 102.7% Aggregate 99.9% 99.9% -11.0% -11.0% Growth -2.6% -2.6% 3.0 3.0 COD 2.3 2.3 comps PID PT UC SlsDate ActSlsPrice SC Emv 10 Imp 11 Emv 11 Imp 12 Emv 12 Growth CS-01 02-118-21-11-0011 C 344 08/00/08 $1,900,000 W $1,607,600 - $1,535,200 - $1,625,300 5.87% CS-02 10-118-21-42-0013 C 494 $570,000 $570,000 $550,000 -3.51% CS-03 35-119-21-14-0017 1 406 09/00/05 $2,150,000 R $1,780,000 $1,630,000 $1,610,000 -1.23% $ 4,050,000 $ 3,957,600 $ 3,735,200 $ 3,785,300 1.34 2011 2012 -5.62% Growth 1.34% Date Printed:2/24/2012,10'00 AM COMMERCIAL-INDUSTRIAL SALES 2011 - RATIO STUDY 3/2/2012 100 (22 ) BROOKLYN CENTER WOJCIK PID SALE PRICE DATE CE PRICE 2009-IMP 2009-EMV 2010-IMP 2010-EMV 2011-IMP 2011-EMV PT SC UC PER PROP ADJ. PRICE RATIO 03-118-21-14-0034 1,950,000 201108 1,988,913 0 2,465,000 0 2,086,600 0 2,053,300 C W 344 0 1,988,913 103.2% 3220 CORD NO 10, CSM OFFICES AUD#:40408 COMMENTS: 1NCL$38,913 SPECIALS 10-118-21-42-0014 550,000 201107 550,000 0 588,500 0 570,000 0 570,000 I O 494 25,000 525,000 108.6% 3415 48TH AVE N AUD#: 38568 COMMENTS: 35-119-21-14-0016 1,300,000 201105 1,308,086 0 2,190,000 0 1,752,000 0 1,300,000 1 W 406 0 1,308,086 99.4% 1700 FREEWAY BLVD, INDUSTRIAL BLDG AUD#: 34330 COMMENTS: $8086 SPECIALS CITY TOTALS COUNTY TOTALS SALES: 3 SALES: 81 MEDIAN: 103.2% MEDIAN: 100.0% MEAN: 103.7% MEAN: 109.8% AGGREGATE: 102.7% AGGREGATE: 94.5% COD: 3.0 COD: 21.4 Off Larger Space Users Take Charge in Southwest, Twin Cities Office Market Lurches Toward Recovery OVERVIEW CLASS A SPACE IN DEMAND some submarkets,such as the South/ The Twin Cities office market ended Larger submarkets showed the most Airport,are competing with a grow- 2011 on a positive note-literally. For improving conditions.The Minneapolis ing number of single-user buildings that the first time since 2007,the overall CBD recorded 116,000 sf of positive corporate owners are marketing for market posted positive absorption absorption for the year, marking a sale or lease. numbers:484,000 square feet for the second consecutive year of absorption year.Vacancy fell for the first time since growth.Vacancy in the CBD declined Rental rate recovery remains elusive, 2006.The market finished the year with to 18%for direct space, 19.7%overall. although some of the higher-quality class a 21.2%overall vacancy rate, 19.2%for Space users continued to take advan- A properties are seeing rates firm up. direct space.Vacancy among class A tage of existing conditions by upgrading The average market-wide rate is$22.84 properties stood at 17.1%overall, 14.9% into better-quality space, pushing down per square foot gross,versus$22.74 psf for direct space at year-end. the class A vacancy rate to 13.2% at year-end 2010. Prolonged weakness in overall, 11.6%for direct space. the B and C leasing markets-and to an Larger space users were most active extent in the lesser-quality A properties throughout the year,and much of their User demand lagged overall expec- as well-is pushing an increasing number demand for space was focused on the tations,however.Small-to mid-size of building owners into default. class A market,as evidenced by the users were reluctant to move in some 656,000 sf of positive absorption re- submarkets,whereas in others-such SOUTHWEST SEES BIG DEALS corded for class A properties. Demand as the St. Paul CBD-they were only It was the Year of the Big Deal in the for class B and C space remained muted too willing to move in pursuit of better Southwest submarket. Large space users at best-both property types recorded deals. Leasing activity was virtually shut were aggressive in their pursuit of new negative absorption for the year. off among the rising number of prop- deals in the submarket's class A proper- Vacancy in class B and C properties is erties that have gone back to lenders. ties,resulting in 502,000 sf of positive in the 24-25%range overall. Owners of multi-tenant properties in class A absorption for the year.The onslaught of demand for class A space enabled the submarket to report total positive absorption of 456,000 sf-the OFFICE ABSORPTION, O O D VACANCY highest total in more than a decade. High demand for class A space reduced ■ABSORPTION IN CONSTRUCTION •VACANCY the Southwest's overall vacancy rate 5 18.9. 18.3 - 19.6 19.9 19.2 20 to 17.9%,down from 20.8%in 2010. 17.0 16.1 15.2 15.2 1S.9 4 -12.7 16 The vacancy rate would have dropped Z 3 12 further; however,weak demand in class 2.04 B and C properties netted a negative f 2 1.25 1.47 1.35 e a 46,000 sq.ft.of absorption. 0.95 w1 0.28 0.520.23 0.18 0.16 0.60 0.33 0.52 0.48 4 Q 0 0.00 0.00 0 SUBLEASE SPACE DIMINISHES (0°°) Z L l4) IN WEST SUBMARKET U ot: The West submarket saw a decline in d (2) (8) a 101 '02 '03 '04 OS '06 '07 '08 09 10 I I available sublease space as several options 5.uL CW,,➢ &Wake'ekf1.O Marq that had long been on the market rolled 2 Subnarket reports available at www.northmargcompass.com 11111114 CUS F ELD. NORTHMARQ Real Estate Services Helping You Navigate Today's Commercial Real Estate Market OFFICE t ABSORPTION SUBMARKET TOTAL,:OF NRA VACANT SPACE PERCENT PERCENTVACANT IST HALF 2011 2ND HALF 2011 2011 BUILDINGS `VACANT W/SUBLEASE ABSORPTION ABSORPTION ABSORPTION Minneapolis CBD 107 26,268,918 4,719,769 18.0% 19.7% (80,141) 196,269 116,128 Northeast 119 7,660,078 1,577,648 20.6% 21.7% 78,631 38,143 116,774 Northwest 36 2,364,711 759,727 32.1% 32.6% 6,762 (45,093) (38,331) South/Airport 80 5,660,573 1,082,150 19.1% 20.0% (4,904) 33,079 28,175 Southwest 147 14,416,085 2,574,649 17.9% 22.1% 264,316 192,174 456,490 SL Paul CBD 45 6,950,402 1,730,308 24.9% 26.4% (54,764) (109,158) (163,922) West 97 8,794,422 1,373,226 15.6% 17.1% 114,117 (145,454) (31,337) TOTAL MARKET 631 72,115,189 13,817,477 19.2% 21.2% 324,017 159,960 483,977 Source:Cusp &Wak(cld/Nor:FMarc over to direct space. Direct vacancy cant transactions closed in the second trending in the right direction from the climbed to 15.6%,up from 14%at mid- half, including One Financial Plaza and landlords'and developers' points of view. year Absent the additional sublease the Soo Line Building in the Minneapolis space,the class A direct vacancy rate CBD; Minnetonka Corporate Campus Lender repossessions are increasing picture would have been much brighter, in Minnetonka;two office towers at throughout the market. Lenders repos- as a number of space users took advan- West End in St. Louis Park,the 1600 sessed 15-18 office properties in 2011, a tage of current conditions to upgrade Tower and MoneyGram Tower; majority in suburban submarkets. More from class B to A space during the second Colonnade office tower plus an adjacent defaults are likely in 2012,especially half and throughout the year. land parcel in Golden Valley;and Two among properties with lower occupan- MarketPointe in Bloomington (plus an cy levels and credit-stretched owners. RENEWED MOMENTUM adjacent 5.75-acre land parcel).The IN MINNEAPOLIS CBD pipeline of potential deals is relatively Lenders will likely put many of those The Minneapolis CBD regained some robust going into 2012. properties up for sale in 2012. New positive momentum in the second half, ownership could stimulate activity in reporting 196,000 sf of positive absorp- OUTLOOK the B and C markets,since the new tion,compared with negative absorp- Deal makers will be in the driver's seat owners could be positioned to market tion in the first half.That allowed the again in 2012,as the market battles to their properties below current rental CBD to post 116,000 sf of positive gain more positive momentum.The rates. Holdouts among the small-to absorption for the year and mark a market looks to be capable of produc- medium-sized space users may finally be second consecutive year of positive ing as much as 850,000 sf of positive motivated to re-enter the market in the absorption.Vacancy continued to edge absorption,with the majority of it resulting competitive environment. down for a third straight year, reaching booked in the second half of the year. 18%for direct space and 19.7%overall. New development remains on hold;the • ' • INVESTMENT SALE market has seen no new multi-tenant Details by submarket, including: ACTIVITY PICKS UP product since 2009.Absent new Investment activity continued to product,the market could see a further -Vacancy,absorption and rental rebound in the office sector in 2011. decline in the direct space vacancy rates resulting in more than $800 million rate of about 1.4 percentage points •Transaction activity worth of sales volume.Several signifi- to 17.8%—still elevated, but definitely • Projections for the coming year pillikkCI WA EF ELD NORTHMARQ Submarket reports available at www.northmargcompass.com 3 Reaf Estate Services Industrial Twin Cities Multi-Tenant Industrial Market Remains in Recovery Mode OVERVIEW primarily the result of losing two large RATES FLAT, CONCESSIONS The Twin Cities multi-tenant industrial tenants(Digital River and Swartz). DIMINISHING IN TIGHTER market continued its slow and some- The Southeast posted the highest POCKETS times rocky road to recovery. Deals vacancy rate at 19.2%, and the North- Rates are flat at$4.37 and$7.98.There with some traction were offset by east boasted the most positive absorp- are still some very aggressive lease companies downsizing,consolidating, tion with 141,940 sf following a number deals as well as some concessions on relocating into single-user buildings,or of smaller"bread-and-butter"deals. the table, particularly for bigger deals leaving the market. Many users simply The Northeast's vacancy rate is 178%. as landlords compete for tenants. It re- traded spaces looking to gain efficiency, mains a very competitive market.Some BULK IN DEMAND landlords,however,are backing off Leasing activity was modest with 71,667 Bulk/warehouse properties continued to on concessions. In the Northwest,for square feet of positive absorption, be the tightest product,reporting a 14.5% example,if a tenant was receiving five down from 541,582 sf in the first half. vacancy rate and 196,093 sf of negative months of free net rent on a five-year The vacancy rate is 17%,one of the absorption due to several space give- lease,today the tenant might receive highest vacancy rates in a decade.The backs,including Swartz vacating 250,000 four months of free rent.Gross free good news is that 2011 ended the year sf in the Southwest and Medtronic rent is less prevalent.Across all submar- with 613,249 sf of positive absorption— pulling out of 120,000 sf in the North- kets, landlords are able to push rents on the first positive absorption reported east. Few large blocks of quality bulk newer,well-located,functional,24-foot- since 2008. space are available.The Northwest clear office/warehouse properties. boasted the tightest bulk/warehouse Older struggling properties, however, The Northwest submarket was tightest market at 9.6%.Tight market condi- continue offering hefty discounts. with a 14.4%vacancy rate.The South- tions prompted Medline Industries to west,at 17%,dragged the market down develop a 300,000-sf bulk build-to-suit USER-BUILDING SALES with 220,000 sf of negative absorption, in Rogers. GAIN TRACTION User-building sales activity picked up across all submarkets.There are INDUSTRIAL ABSORPTION,CONSTRUCTION ANDVACANCY several reasons, including low interest rates,availability of SBA loans, reduced ■ABSORPTION ■CONSTRUCTION •VACANCY building costs,and many companies 5 17.2 17.0 20 want to own their own buildings.At 4 14.0 15.2 15.5 3.77 13.0 13.0 159 16 least seven sales closed in the North- 13.3 3 11.9 1z.3 12 west where pricing dropped 25-35% cl2 s3 216 j1.72 9 from 2007 as the"expectation gap" O 1.24 1, 1°4 between buyers and sellers closed. In 072 0.93 °•� 0.61 4 Z the Northeast,where a handful of sales 0.41 0.068 i5 0.43 0 04 0 00 000 0 Q u closed,there is a consistent,definitive LU Q (1) (0A0) a > price discount of 30-40%off the listed (0.71) O 1_ Q (2) (e) W prices. Not much quality product is for D (238) � sale in the Southeast, but several sales (3) '01 '02 •03 '04 OS •06 '07 08 09 10 I I (12) 0- closed.In the Southwest,at least five – C-;ro,sw.,krsrw111—1., properties sold. p1111114 CUSHMAN& i NCIRTHMARQ Submarket reports available at www.northmargcompass.com 5 !��!WAKEFIELD Real Estate Sermes Helping You Navigate Today's • Re INDUSTRIAL VACANCY •ABSORPTION SUBMARKET TOTAL#OF NRA VACANT SPACE PERCENT PERCENTVACANT IST HALF 2011 2ND HALF 2011 201 1 BUILDINGS VACANT W/SUBLEASE ABSORPTION ABSORPTION ABSORPTION F- Bulk Warehouse 50 11,978,139 2,024,377 16.9% 20.8% 157,990 (63,946) 94,044 w Office Showroom 71 4,555,951 841,782 18.5% 21.1% (12,742) 15,597 2,855 S ac Office Warehouse 259 18,433,814 3,365,177 18.3% 23.3% (194,799) 190,289 (4,510) O Z TOTAL 380 34,967,904 6,231,336 17.8% 22.2% (49,551) 141,940 92,389 N Bulk Warehouse 83 11,427,999 1,094,186 9.6% 16.0% 197,297 (290) 197,007 3 Office Showroom 82 5,297,104 834,042 15.7% 18.3% (19,598) 53,001 33,403 2 Office Warehouse 134 9,257,805 1,819,110 19.6% 21.6% (43,459) 79,591 36,132 O Z TOTAL 299 25,982,908 3,747,338 14.4% 18.5% 134,240 132,302 266,542 F- Bulk Warehouse 36 5,562,299 957,207 17.2% 20.3% 118,067 1,487 119,554 w Office Showroom 52 3,147,422 682,830 21.7% 24.2% 10,920 46,590 57,510 2 j Office Warehouse 120 8,217,831 1,608,005 19.6% 24.1% 38,115 (30,284) 7,831 O TOTAL 208 16,927,552 3,248,042 19.2% 22.9% 167,102 17,793 184,895 H Bulk Warehouse 27 4,716,392 806,211 17.1% 18.4% 207,568 (133,344) 74,224 w Office Showroom 101 7,256,993 1,425,297 19.6% 22.2% 90,296 (8,019) 82,277 2 j Office Warehouse 162 11,713,511 1,785,638 15.2% 18.2% (8,073) (79,005) (87,078) O TOTAL 290 23,686,896 4,017,146 17.0% 19.5% 289,791 (220,368) 69,423 t- Bulk Warehouse 196 33,684,829 4,881,981 14.5% 18.8% 680,922 (196,093) 484,829 Y Office Showroom 306 20,257,470 3,783,951 18.7% 21.2% 68,876 107,169 176,045 Office Warehouse 675 47,622,961 8,577,930 18.0% 21.9% (208,216) 160,591 (47,625) CR TOTAL 1,177 101,565,260 17,243,862 17.0% 20.7% 541,582 71,667 613,249 Source Cushman&Wakef Id/Nor Ma INVESTMENT SALES ARE HOT positive absorption in the next six buildings. However, concessions and Strong investor demand exists,espe- months and as much as 665,000 sf reduced rates will likely remain relatively cially for core bulk properties(low finish by year-end 2012.The good news is widespread for less-functional buildings and high ceilings). Institutional capital several large users are seeking space. as landlords compete to fill space. is pursuing industrial properties in the However, it will remain a slow, Midwest where cap rates are more labored recovery because the market User-building sales will continue as the attractive than the coasts. Liberty Prop- is still negatively impacted by older, pricing gap between buyers and sellers erty Trust acquired three assets totaling less functional product and tenants has narrowed. Build-to-suit activity will 450,000 sf for roughly$25 million.The continue vacating and trading spaces. continue with another seven or eight Travelers Cos.acquired I I properties All submarkets expect large blocks of likely announced in 2012. in Roseville and Shoreview, UBS Realty space to come back on the market, Advisors purchased Diamond Lake I and which will cause more volatility. II in Rogers,and Interstate Partners sold several buildings to Welsh Cos.This is Rates should start to stabilize and . Showroom struggles the most sales activity in five years, concessions diminish as the market tightens. Landlords have some pricing • Build-to-suit development OUTLOOK power on newer office/warehouse and takes off The market could see 225,000 sf of bulk/distribution,24-foot-clear quality •Alternative users take space 6 Submarket reports ava fable at www.northmar com ass.com IIIIII1h CUSHMAI 8 j N ORTH MARQ P q P �;;�WAKEFIELD. Real Estate Services Although Economic Recovery Lags,Twin Cities Retail Posts Moderate Growth, Chips Away at Vacancies OVERVIEW WHICH CENTERS tight at 1.3%. Most noteworthy was The Twin Cities retail real estate market PERFORMED BEST? Herberger's opening at Southdale Cen- remains relatively stable despite the Expectations between landlords and ter,which is undergoing a major renova- economic roller-coaster and a higher- tenants in lease negotiations are align- tion.Specialty centers performed well. than-typical unemployment rate.The ing, making it easier to get deals done. Landlords have pricing power in the market experienced modest growth Community centers, at a 7.5%vacancy strongest trade markets like the Galle- during the past six months, posting an rate,continued chipping away at big- ria,50th& France and Grand Avenue. 8.4%vacancy rate,down from 8.8%at box vacancies.The market started mid-year,with 198,765 square feet of with 80 in early 2010. Nine additional CONSTRUCTION PICKS UP positive absorption (335,550 sf for the boxes came back in the second half, but Approximately I msf is underway,and year).The market was tightest in 2002 another 20 were leased.The market development is being driven by big at a 4.5%vacancy rate. is down to 61 vacant boxes.Approxi- users like Walmart,Target, Menards and mately one-third are good real estate. Whole Foods. Most projects, however, While the vacancy rate may seem high Others may be repositioned into other are"preliminary"as developers wait for on paper,the Twin Cities remains a retail or repurposed into non-retail uses anchors. market in which retailers want to do like medical,schools or churches. business. It outperforms many other WALMART EXPANDS markets nationally due to its healthy Neighborhood centers posted 192,318 Walmart has three stores under con- demographics, including high household sf of positive absorption, primarily due struction and a fourth planned.Two discretionary income, higher education, to active smaller users like"fast-casual'Y other proposed stores in Plymouth and concentration of Fortune 500 compa- convenience restaurants, medical users Chanhassen were stymied by city of- nies and the strength of its workforce. and discounters. Regional centers were ficials, but Walmart continues negotiating on more sites.The retailer has an aggres- sive plan for growth,and its real estate RETAIL ABSORPTION,CONSTRUCTION AND VACANCY department has become very creative.In addition to new construction,it is consid- ■ABSORPTION s CONSTRUCTION •VACANCY ering redeveloping existing buildings. 10.1 s 9.8 10 RETAILERS CONSIDER 4.5 8.4 9 'RIGHT-SIZING' q 7.8 7.9 8 be 6.9 Some big retailers,facing soft sales . 6.3 3.5 3.00 3•I 3.105 and online competition, are looking to Z 3 5.0 Z90 6 downsize stores and sublease space O 2.5 4.5 2.23 2.35 5 to smaller retailers. Sears is consider- 2 '10S 1.94 2.04 4 F- F z ing this strategy at all of its locations F- L5 I•'al 09 ';' L3d3 1.31 Ova 1 12 3 Q nationwide. Best Buy is also looking to I e � ' 2 > "right-size"stores.Target and Walmart .5 `3 i4, �'_ a 037�� 0.260.17 0330.18 I w continue expanding with smaller for- ° r �4 1 0 U (Y (0.05) (020 w mats that offer larger grocery lines.And N (S) of '02 '03 '04 OS '06 '07 08 09 10 I I a The Gap,Zales and others are experi- Soo-ce:Cushnw+&Wakefield/No,thMa, menti ng with their formats. 8 Submarket reports avai,ab'e at www.northmargcompass.com illkk CUS NDRTHMARQ l F ELD Helping You Navigate Today's • _ _ Market RETAIL VACANCY AND ABSORPTION SUBMARKET TOTAL#OF NRA VACANT SPACE PERCENT PERCENTVACANT IST HALF 2011 2ND HALF 2011 2011 BUILDINGS VACANT W/SUBLEASE ABSORPTION ABSORPTION ABSORPTION Community 121 31,073,178 2,318,960 7.5% 8.6% 210,594 (140,223) 70,371 Minneapolis CBD 17 1,574,001 365,909 23.2% 23.9% (24,174) (10,461) (34,635) Neighborhood 307 19,959,162 2,451,990 12.3% 13.9% (66,846) 192,318 125,472 Outlet Mall 3 788,440 34,000 4.3% 4.3% 4,350 (6,000) (1,650) Regional 8 10,716,064 140,288 1.3% 1.4% 52,600 148,500 201,100 Specialty 17 2,063,969 227,136 11.0% 11.9% (41,739) 14,631 (27,108) St.Paul CBD 9 368,737 35,379 9.6% 9.6% 0 0 0 TOTAL MARKET 482 66,543,551 5,573,662 8.4% 9.4% 134,785 198,765 333,550 Source Cush—&Wakd,,W/NoMMarq URBAN RETAIL IS HOT is becoming very fractured and will community centers will probably be Many retailers are eyeing dense urban continue to be very competitive. more subdued. Many retailers looking and first-ring suburban markets due to to enter prime markets or upgrade lo- their strong demographics.While urban MEDICAL USERS EYE cations have done so.They took advan- sites are more expensive to redevelop, RETAIL SITES tage of soft market conditions and now they are a safer bet due to dense The soft retail market is giving clinics and may sit back and evaluate sales before populations.Trader Joe's is consider- outpatient facilities,which want to be adding new stores.Activity by smaller ing building a store in the Lyn-Lake located directly in front of their patients, users will continue at neighborhood neighborhood of south Minneapolis. the ability to secure well-parked,highly centers,driven by value/thrift concepts, The population there is still growing, visibly retail space in locations that were medical users and fast-casual restau- and there has not been new retail previously unattainable and at more rants. Regional centers are relatively full, space added.Also,Walmart is pushing affordable rates than new construction. while decent activity will continue at a smaller prototype that will go into Aspen Medical Group leased a former prime specialty centers. urban markets. Old Country Buffet in St, Paul, Health- East leased a former Borders in St. Paul, Walmart will continue to be creative GROCERY 'WARS' CONTINUE Park Nicollet Clinic took the former in finding locations.Some retailers will Grocery stores continue to be under Hollywood Video space at Timbercrest continue downsizing,right-sizing and ex- immense pressure to compete for in Lakeville,and Hennepin County Medi- perimenting with store formats. Some market share,as retailers are becoming cal Center leased a former Snyder's in landlords of premier centers in the creative and using food to drive traffic, St.Anthony. Medical uses have found strongest trade markets will continue Conventional grocers are directly com- acceptance among landlords because having pricing power;the rest of the peting with Target,Walmart, Costco they fill vacancies,draw traffic, pay centers will offer aggressive deals to fill and Sam's Club.They are also impacted decent rents and sign long-term leases. space. Development will continue to be by specialty grocers,including Trader In some parts of the country,weaker demand-driven. Joe's and Whole Foods Market as well shopping centers are being completely as deep discount grocers like Aldi. repurposed into"medical malls." • ' • Drugstore chains CVS and Walgreen's • Twin Cities tops many lists and even dollar and home-improve- OUTLOOK ment stores are adding grocery lines to There will likely be modest growth •Value/thrift concepts thriving get in on the action.The marketplace duripg the next six months.Activity in • Fitness concepts expand 11111114 CUSHMAN& NORTIHIII I Subr ark Real Estate Services et reports avalable at www.northmargcompass.com 9 ���► WAKEFIELD M-- 1 - 1 - M City of Brooklyn Center Apartment Assessment Details APARTMENT ANALYSIS 2012 VS. 2011 2012 EMV 2011 EMV New %Change 2012 2012 Average 2011 Average Totals Totals Construction Exclude Improv. Average EMV EMV Per Unit EMV Per Unit 4-5 Units $4,616,000 $4,623,000 $0 -0.15% $219,810 $54,952 $55,036 Average$55,893 unit Average$58,179 unit $67,500 for $73,800 for 6-8 Units $1,970,000 $2,055,000 $0 -4.14% $394,000 1 Lakefront/Walkout Lakefront/Walkout I 10-12 Units $6,671,000 $6,671,000 $0 0.00% $555,917 $49,414 $49,414 $471316 Apt $47,260 Apt 18-36 Units $10,266,000 $10,256,000 $0 0.10% $1,283,250 $82,217 Townhome uniti $82,217 Townhome unit $43,094 Apt $46,444 Apt $59,590 Townhome Unit $60,610 Townhome Unit 48-75 Units $26,641,000 $27,578,000 $0 -3.40% $2,960,111 $63,623 Sr.Unit $63,623 Sr.Unit $45,572 Apt $45,414 Apt $58,510 Townhome Apt $60,770 Townhome Apt 76 + $117,656,000 $117,585,000 $170,000 -0.08% $6,920,941 $60,206 Sr.Apt $60,518 Sr.Apt Total Apartment Asmt $167,820,000 $168,768,000 $170,000 -0.66% 1 $50,640 1 $50,926 2011 All Apartment 12 Month Study MUNId PID# ADDRESS DATE SALE PRICE CASH EOUIV 2009IMP I 2009EMV 2010IMP 2010EMV 12011IMPI 2011EMV I PT I SC NIT4 PER PROP ADJ PRICE COMMENTS RATIO 40 21-118-22-11-0007 14300 34TH AVE N 201107 54,675,000.00 54,675,000.00 1,092,500.00 45,978,000.00 0.00 40,000,000.00 0.00 40,ODO,000.00 A W 500 750,000.00 53,175,000.00 75.22% 24 30-028-24-11-0045 4240 VALLEY VIEW RD 201103 440,000.00 440,000.00 0.00 445,000.00 0.00 380,600.00 0.00 380,600.00 A W 4 1,000.00 439,000.00 86.70% 24 31-028-24-11-0021 4000 MAVELLE DR 201102 406,000.00 406,000.00 0.00 418,800.00 0.00 358,100.00 0.00 358,100.00 A W 5 5,000.00 401,000.00 89.30% 42 27-028-24-21-0093 6337 PLEASANT AVE S 201010 634,000.00 634,000.00 0.00 593,000.00 0.00 563,000.00 0.00 563,000.00 A W 11 18,400.00 615,600.00 91.46% 20 32-116-21-31-0006 10700 HAMPSHIRE AVE S 201102 46,500,000.00 46,500,000.00 0.00 46.027 000 00 0.00 40,050,000.00 0.00 42,052,500.00 A M 534 887,000.00 45,613,000.00 INCL 0008 92.19 34 35-117-22-43-0009 6125 CHASEWOOD PKWY 201010 17,831,796.00 17,831,796.00 0.00 15,876,000.00 0.00 14,580,000.00 0.00 15,876,000.00 A W 162 631,800.00 17,199,996.00 92.30% 20 03-027-24-13-0059 80161STAVE S 201106 880,000.00 880,000.00 0.00 964,000.00 0.00 935,000.00 0.00 800,000.00 A M 16 16,000.00 864,000.00 INCL 0060 92.60% 34 30-117-22-33-0004 18900 STRATFORD RD 201101 21,300,000.00 21,300,000.00 0.00 20,060,000.00 0.00 19,175,000.00 0.00 19,175,000.00 A W 255 297,000.00 20,409,000.00 INCL 32-0037 9395% 34 35-117-22-42-0040 5950 CHASEWOOD PKWY 201010 4,843,204.00 4,843,204.00 0.00 4,532,000.00 0.00 3,872,000.00 0.00 4,400,000.00 A M 44 171,600.00 4,671,604.00 INCL 43 0005 94.19% 85 23-117-24-11-0025 2479 COMMERCE BLVD 201106 1,187,000.00 1,187,000.00 0.00 1,246,000.00 0.00 1,143,000.00 0.00 1,143,000.00 A W 24 0.00 1,187,000.00 96.29% 54 05-118-21-42-0060 5755 WEST BROADWAY 201012 2,750,000.00 2,750,000.00 0.00 2,846,000.00 0.00 2,577,000.00 0.00 2,577,000.00A W 41 86,500.00 2,663,500.00 96.75% 28 33-118-21-34-0010 259 YOSEMITE CIR 201103 3,700,000.00 3,700,000.00 0.00 4,370,000.00 0.00 3,887,000.00 0.00 3,555,000.00 A W 79 59,250.00 3,640,750.00 97.64% 86 05-118-21-21-0116 7319-7349 62ND AVE N 201106 850,000.00 850,000.00 0.00 1,440,000.00 0.00 1,078,000.00 0.00 800,000.00 A M 16 16,000.00 834,000.00 INCL 0117 THRU 0131 97.80% 54 04-118-21-33-0015 6001 56TH AVE N 201104 1,066,000.00 1,066,000.00 0.00 1,375,000.00 0.00 1,256,000.00 0.00 1,050,000.00 A M 32 16,000.00 1,050,000.00 INCL 0016 100.00% 85 13-117-24-33-0052 2360 COMMERCE BLVD 201012 1,025,000.00 1,025,000.00 0.00 1,199,000.00 0.00 1,096,000.00 0.00 1,096,000.00 A M 18 12,600.00 1,012,400.00 INCL 0020 108.26% 48 29-119-21-33-0015 7616 69TH AVE N 201106 220,000.00 220,000.00 0.00 240,000.00 0.00 240,000.00 0.00 230,000.00 A W 4 1,600.00 211,861.00 108.56% 46 17-117-21-33-0060 3600 PENNSYLVANIA AVE S 201109 235,000.00 241,000.00 0.00 336,000.00 0.00 291,100.00 0.00 285,300.00 A W 4 2,000.00 237,000.00$6000 SPECIALS 120.38% 86 06-118-21-43-0001 5555 ZEALAND AVE N 201109 2,840,000.00 2,840,000.00 0.00 3,467,000.00 0.00 3,080,000.00 0.00 3,080,000.00 A O 69 144,900.00 2,550,200.00 120.77% 54 21-118-21-33-0040 2701 BRUNSWICK AVE N 201104 2,800,000.00 2,800,000.00 0.00 3,718,000.00 0.00 3,326,000.00 0.00 3.326,000.00A W 66 46,200.00 2,753,800.00 120.78% 63 34-117-23-11-0037 200 1ST ST 201101 460,000.00 461,966.00 0.00 570,000.00 0.00 524,900.00 0.00 588,900.00 A W 13 0.00 461,966.00$1966 IN SPECIALS 127.48% 54 04-118-21-34-0116 5509 YATES AVE N 201108 172,000.00 172,000.00 0.00 258,000.00 0.00 235,000.00 0.00 224,000.00 A W 4 0.00 172,000.00 130.23% Number of Sales: 21 Median: 96.8% Mean: 101.6% Aggregate: 88.4% COD: 13.3% Multi - Family Apartment Vacancy Rates Approaching Record Lows; Rents Rising, Development Taking Off OVERVIEW 2011.While that is well below pre-reces- markets—more than 3,500 units are The Twin Cities apartment market sion levels,it remains good by national planned for downtown Minneapolis continues to outperform other markets standards.Also beneftting the rental and another 1,200-plus units for nationally, and local landlords remain market is the fact that people continue Uptown.There is also select suburban optimistic.According to Marquette moving away from homeownership— development occurring—either Advisors,the vacancy rate fell to 2.3% either by choice or necessity—and young strategic in-fill or first-ring suburban from 4.2%one year ago—the lowest people are more confident to move out markets like St. Louis Park and Bloom- since the 1990s. It is one of the tightest of their parents'basements or no longer ington or high-growth corridors like markets nationally.The national apart- need to"double up"with roommates. Maple Grove.This may be the largest ment vacancy rate is 5.6%. concentration of apartment develop- RENTS INCREASING ment since the 1980s. Specific pockets are even tighter Strong demand means landlords are with urban units reporting the high- experiencing rent growth.The average OUTLOOK est demand. Downtown Minneapolis monthly rent is$925, up 2.2%from Market fundamentals should remain properties posted a I%vacancy rate, $905 a year ago. Rents had edged down strong with high occupancy and and downtown St. Paul 1.1%. However, for three straight years,so this is a increasing rents continuing in 2012. If properties across the board are per- significant increase. Meanwhile,conces- development is kept in check,apart- forming well.Twenty-nine of 54 submar- sions have disappeared. Downtown ment fundamentals will continue to kets tracked posted vacancy rates of 2% Minneapolis boasted the biggest spike be very favorable and strong investor or lower.The highest vacancies are in in rent to$1,230, up 8.6%over last year. demand will continue.Opportunistic outer-ring markets like Lakeville/Farm- The overall effective rent—the amount sellers will look at capitalizing on the ington at 6.1%and Stillwater at 5.4%. paid after discounts—increased by 3.5% scarcity of assets for sale. year-to-date. SOURCE OF DEMAND job growth is key to continued success. Demand is being fueled by limited job Third-quarter absorption was 390 units; A 2012 outlook by the Federal Reserve growth;the metro added 20,500 jobs in it has slowed since the record-setting Bank of Minneapolis projects that Minne- 6,400 units seen in 2010.Only 750 units sota employment will grow by a faster- MULTI-FAMILY VACANCY were delivered in 2011,and 1,250 units than-average rate of 2.8%in 2012,with are expected to be delivered in 2012. business investment and wages rising. e But more units are on the way, It projects moderate economic growth 7.3 and lower unemployment rates. Urban 6.1 DEVELOPMENT RAMPS UP and select suburban development will 6 Because vacancy rates dropped drasti- continue. Hopefully,units will be spread s a.' call developers are eager to et their out rather than delivered all at once. a.z Y� P g g a shovels in the ground.They are com- e 3 peting to line up financing or obtain j 2.3 Z 2 equity partners and gain city approvals. MORE ONLINE U 1 Approximately 1,500 units are under cc w construction and thousands more are • Rents could"pop" CL 0 •05 '06 '07 '08 '09 '10 '11 planned.The majority of activity is • Investors have healthy appetite I focused on urban and transit-oriented for apartment assets 10 Submarket reports a,%ailable at www.northmargcompass.com il'i Nt3RTHMARQ h WA EF ELD This page was intentionally left blank Appearances by Taxpayers with an Appointment Spencer Ung Apartment Ung Properties, LLP 5301 Dupont Ave N. PI D # 01-118-21-33-0146 Nhut Van Dang Industrial 3707 50th Ave N. PID # 10-118-21-13-0062 This page was intentionally left blank Spencer Ung — Ung Properties LLC 15301 Dupont Ave N. Mr. Ung contacted the Assessor's office on April 4, 2012. An inspection of the property was completed on the property April 10, 2012. Mr. Ung submitted an appeal application requesting a valuation of $260,000. A copy of the current property listing at $309,900 and the 2011 income and expense data was included. Due to the confidential nature of income and expense data the information was reviewed by the Assessor but not included with this report. Comparable apartment sales were analyzed from Hennepin County as the City of Brooklyn Center did not have any small complex apartment sales. The property has six units and no garage facilities. The property is in overall average/fair condition, and shows some deferred maintenance. The property is currently fully occupied, and the owner appears to be receiving rent slightly above market. The complex has insufficient parking for the number of two bedroom units. The property is located on the border of Brooklyn Center and Minneapolis. • Owner(s) statement of estimated market value or classification and presentation of factual information regarding the property. Questions addressed to the owner regarding the market value or classification. • Assessor's statement of value or classification and presentation of factual information regarding the property. Questions addressed to the Assessor. • Action by the Local Board of Appeal and Equalization Local Board of Appeal will select one of the following: Make no change and sustain the 2012 estimated market value or classification. Reduce the 2012 estimated market value. Increase the 2012 estimated market value. If the owner is not satisfied with the outcome of the Local Board of Appeal and Equalization they may appeal to the County Board of Appeal and Equalization. CITY OF BROOKLYN CENTER LOCAL BOARD OF APPEAL AND EQUALIZATION 2012 Assessment APPLICATION FOR APPEAL March 23, 2012 through April 18, 2012 You must return this application by April 18 2012 to be placed on the Agenda for the Local Board of Appeal and Equalization held April 30, 2012 at 7:00 P.M. Names) Uitil�� (�' Nrle- L io e- a S C)� "'N Cl Daytime Contact Number:__ V / _3 Property Address 5 3 d /°�✓I fJ Property Identification Number ( (" - Z l — 3 3 -- Assessor's 2012 Estimated Market Value 3 Z C-, ° 0 Is your property residential, commercial or multi-family? JM L1 L-'T I _F71"7 Ii-y !f you are appealing a commercial, multi-family or residential rental property you must include income and expense data for calendar year 2011 with your application. What is the reason you are appealing your 2012 assessment? ✓4t-kLe P5"S i S `Tv c 1} l ( t+, Li ST E0 otJ (ijC Mr E-�� �a%, %00 feel- u yF-4-tf— AND Lr S F.f� T-byi r` When did you purchase your home? Date of Purchase , -aj L -2-0 ,)57 Purchase Price 3 o a 0 Did you purchase your property from a bank, as a foreclosure or short sale? Has your property physically changed since the purchase? (maintenance, upgrades, remodeling or structural damage) Please list a brief description below with an estimated cost. 1(VI ✓r M(-'„►T S o P/W G_wt r-v_j i c��✓rG�,�-F' /%'/�D Gfi/� 4 g 'l�, b%PF-ic'� try i o �- r {lt�� r l LtGiS fi-AID �LP-nO4 Have you had a recent appraisal for refinancing, a purchase agreement or a market analysis by a real estate agent completed within the last year? Ges r No If so, what was the determination of value? 0 0/ o 0 0 What do you think the market value of your property should be? Z (,of o-0`0 Please provide any documentation supporting your claim of overvaluation or erroneous classification with this application. IN III-- 4/i0112 5301 Dupont Avenue N,Brooklyn Center,MN 55430(MLS#4070566)1 Edina Realty Schedule a Showing Today!Click Here! Paul Real Es:U-.it�Agent un't- 5301 Dupont Avenue N., Brooklyn Center., MN Schedule a Showing 55430 (MLS # 4070566) Name Request More Info Schedule a Showing 1' Share Print Price $309,900 Email Beds n1a Baths 0 baths Home size n/a Phone Lot Size 15,681 sqft Requested Showing Date Listed with RE/MAX Results Time of Day VERY WELL MAINTAINED 6 UNIT BUILDING LOCATED IN A NICE RESIDENTIAL Anytirre NEIGHBORHOOD WITH LOW RENTAL COMPETITION.LARGE RENTAL UNITS WITH NATURAL WOODWORK,LARGE KITCHENS,CERAMIC BATHS AND LARGE ROOM SIZES.LOW MAINTENANCE PITCHED ROOF AND BRICK EXrERIOR. Questions(Comments Property Type(s):Commercial (click here to stop the yelling) Year Built 1960 County Hennepin Schools School District 286-Brooklyn Center FSch,dulcii Additional Details Amenities-Shared Coin-op Laundry Leased Appliances Range,Refrigerator CMU Style Apartments/Multi Family,Low Rise Edina Realty Current Use Residential Exterior Brick/Stone 612-605-2252 Fuel Natural Gas Garage Stalls 0 h0ml;@aaron sold-COM Handicap Accessible None Aaron Dickinson Heating Hot Water Licensed in MN Lot Description City Bus(w/in 6 blks),Comer Lot Number of Ranges Six or More Search Homes for Sale Number of Refrigerators Six or More Parking Characteristics Driveway-Concrete,Unassigned V Property Identification Number 0111821330146 PropType CMU Road Frontage City Roof Asphalt Shingles,Pitched nv 15 f N Sewer City Sewer/Connected Tax Amount 7138 Tax Year 2011 Water City Water/Connected 7nni nn Rp..-;i(ip.ntiql-Mtilti-Fqmilv \",,vw.aaronsold.comAdx/mis4070566-5301_dupont—avenue—n—brooklyn_center—Mn-55430 1/3 2011 Income and Expense data for Ung Properties, LLP - 5301 Dupont As requested, Spencer Ung provided 2011 Income and Expense data. Due to the confidential nature of Mr. Ung's Income and Expense information, it has not been included in this report. The information will be reviewed by the City Assessor. If Mr. Ung elects to provide the confidential data to the board for review he may do so. M - =_ I INCOME 2011 TOTAL 2011 Rent 2012 Rent Unit#1 1 Bedroom 1 Bedroom Unit#2 2 Bedroom 2 Bedroom Unit#3 2 Bedroom 2 Bedroom Unit#4 2 Bedroom 2 Bedroom Unit#5 2 Bedroom 2 Bedroom Unit#6 2 Bedroom 2 Bedroom SUBTOTAL Misc Laundry/late fee TOTAL INCOME CONFIDENTIAL INCOME INFORMATION EXPENSE WAS SUBMITTED FOR REVIEW BY ASSESSOR Electricity -Xcel Energy Gas -Center Point Energy Water Garbage Property Insurance Maintenance/Repairs Property Tax Office/supplies License Legal Fees Eviction Write-Off(EWO) Mortgage Payment TOTAL EXPENSE TOTAL Assessor' s Report i E --- I 1 0- MTCity of Brooklyn Center A Millennium Community To: 2012 Brooklyn Center Local Board of Appeal and Equalization RE: Spencer Ung Ung Properties LLP 6019 68t" Ave N. Brooklyn Park, MN 55429 Mr. Ung contacted the Assessor's office on 4/5/2012 regarding the 2012 valuation on his property located at 5301 Dupont Ave N., Brooklyn Center. Mr. Ung indicated that his property had been listed for over a year at $309,900 with no interest, and requested a valuation of $260,000. Mr. Ung was requested to provide income and expense documentation for his property, as a prior survey had been completed with no information given. Mr. Ung provided that information but due to the confidential nature of these documents the information was reviewed by the Assessor but not included with this report. An interior review of the property was completed April 5, 2012 with Mr. Ung. The subject property is a 5,940 sq. ft. apartment building built in 1960. The building is wood frame construction with brick exterior. The subject has a hip roof, with a tearoff/reroof permit completed December of 2011 . The property had 43 windows replaced in 2004. The interior finish includes carpeting in living areas, vinyl tile in kitchens and original ceramic flooring and surround in the bathrooms. The bathrooms have original wall mounted sinks with limited storage. The property is in average to fair condition, due to general maintenance and interior conditions. The condition of carpet, kitchen cupboards and deferred interior maintenance contribute to the overall condition grade of the property. One unit displays past evidence of water intrusion by a buckling in the ceramic wall behind the shower head. The property has hot water heat and wall air conditioning units. The property includes one 1-bedroom unit and 5 — two bedroom units, and a combined laundry, storage, and mechanical room on the lowest level. There are no garages, and 8 parking stalls. The parking appears to be insufficient for the number of two bedroom units, with the busy roads and alley adjacent to the building. There were no comparable small apartment sales in Brooklyn Center during the study period. The property had been listed in MLS in March of 2011 for $329,900 but Mr. Ung indicated that it had been reduced to $309,900 during the spring of 2011. There were four apartment sales of comparable age and size to the subject property. The comparable sales were located within Hennepin County. The comparable sales indicated a range of sale price from $43,500 to $55,700 per unit. Comparable sale number two is most comparable to the subject property in size, and unit mix. Sales comparable number four and five have the least amount of adjustments the condition factor is hard to measure without an interior review of the sales. The comparable sales indicate a sale price range of $66 to $84 per sq. ft. 6301 Shingle Creek Parkway Recreation and Community Center Phone& TDD Number Brooklyn Center, MN 55430-2199 (763)569-3400 City Hall& TDD Number(763)569-3300 Fax (763)569-3434 Fax(763)569-3494 www.cityofbrooklyncenter.org Mr. Ungs income and expense information was reviewed, and it indicated that he is currently receiving rents slightly higher than market. His property unit mix would put him on the higher end of valuation due to the majority of his units being two bedrooms. A market derived income approach was completed on the subject, which indicated a value of $55,300 per unit. Due to the unit mix of the subject, more weight has been placed with the market sales approach. Due to the age of the property, the cost approach was considered but not used. After reviewing market listings, the listing time of the subject, sale comparables and the market derived income approach it is my recommendation to reduce the subject property. The reduction is supported by the sales comparable approach and current market listing. It is my recommendation to reduce the 2012 assessed value of $326,000 to $300,000 or $50,000 per unit for taxes payable in 2013. Respectfully submitted, Al Nancy Wojcik, SAL City Assessor This page was intentionally left blank City of M3BROOKLYN CENTER 2012 Local Board of Appeal and Equalization Spencer Ung Ung Properties LLP 5301 Dupont Ave N 01-118-21-33-0146 r 2012 Assessed Value: $326,000 Recommendation: Reduction to $300,000 This report is not an appraisal as defined in M.S. §828.02(subd.3)nor does it comply with the Uniform Standards of Professional Appraisal Practice. It is intended to be used as a reference only and any use other than its intended use is prohibited and unlawful The author does not represent this to bean appraisal and is not responsible for any inappropriate use. It is a report ofpublic records using a mass appraisal technique. City of Brooklyn Center Assessing Department 2012 Local Board of Appeal and Equalization 3r Staff Report Spencer Ung Property Owner(s): Ung Properties LLP Property Address: 5301 Dupont Ave N PID #: 01-118-21-33-0146 Market Value Assessment Year 2012 $326,000 Assessment Year 2011 $326,000 Assessment Year 2010 $329,000 Sale: April 19, 2005 - 435,000 (11 - Other) Comments: Mr. Ung contacted the Assessor's office on April 5, 2012 regarding his valuation. Mr. Ung was directed to complete an application form and provide income and expense information. The Assessor completed a physical review of the property on April 10, 2012, and inspected all units. The subject property is a 6 unit apartment building located on the border of Brooklyn Center and Minneapolis, with access from 53rd Ave, Dupont and the adjacent alley. The property was constructed in 1960 and has original kitchens and bathroom ceramic. The property is average to fair condition. There are some general maintenance issues with the carpet condition, woodwork and hot water registers. Interiorr finishing includes five units with carpet in the living and bedrooms, and vinyl kitchen flooring. One unit has pergo flooring through out the unit. All bathrooms have original ceramic tile floors and surround., with wall mounted sinks. There are no storage bathroom vanities. One unit displays past evidence of moisture intrusion behind the shower head, with buckling tile. All units have two exits. Basement units are considered garden style with above grade windows. The laundry, storage and utilites are in the basement level. There is one storage closet per unit, and one of each washer and dryer available to tenants. The subject property has no garage units and has parking for 8 vehicles, which appears insufficient for the number of two bedroom units. Assessor Recommendation: Reduction to $300,000 Appraiser: Last Inspection Date: Nancy Wojcik April 10, 2012 2012 Board of Appeal and Equalization Spencer Ung Subject Data Summary PID#: 01-118-21-33-0146 Buildings on File: 1 Property Name: Ung Apts.. -6 Plex Apt Property Address: 5301 Dupont Ave N Brooklyn Center, MN 55430 Multiple Address: No Lot/Block: 000/004 Addition: N.&E. Perkins Addition To Minneapolis Legal(120): LOTS 13, 14,AND 15 Owner(s): Ung Properties LLP Property Classification: Apartment 2012 EMV: 326,000 2011 EMV: 326,000 2010 EMV: 329,000 EMV/Unit: 54,333 Lot Size: 15,360 Sq.Ft./.35 Acres Zoning: R4 Building Use: 352- Multiple Residence, Low Rise/100% #Units: 6 Avg Story Height: 9 Avg Clear Height: 8 #Stories: 3 Actual Year Built: 1960 Effective Year Built: 1960 Renovated Year: First Floor Area: 1,980 Gross Building Area: 5,940 Parking: Parking-Surface 2012 Board of Appeal and Equalization Spencer Ung City of Brooklyn Center PID: 01-118-21-33-0146 Property Type: A-Apartment Multi-Family Field Card Property Address: 5301 Dupont Ave N Zoning: R4 Lot/Block: 000/004 Addition: N.&E.Perkins Addition To Minneapolis Owner(s): Ung Properties LLP Printed: 4/27/2012 District: Assessment Year: 2012 Neighborhood: 0071 Version: I Watershed: 15 Project(s): Building: 1 School District: 0286 Total Apt.Units: 6 Total Garage Units: 0 Building Detail Basement Income Information Sport Courts Zoning: R4 Name: Ung Apts Basement Basics Gross Income: Indoor Sport Courts: Area Rating: Average Quality Area(SgFt): Vacancy Percent: Outdoor Sport Courts: Site Rating: Fair o Basement Area Percent: Eff.Gross Income: Last Sale Land Quality: A01-Land Overall al Construction(/o): Operating Expense:Q ty� Overall uali Basement Use Code: 352-Multiple Residence, � g � Contamination: Quality: Net Income: Date: 04/19/2005 Architectural Appeal: Fair Bsmt.Use Code Suffix: Flood Plain Map Ref: Capitalization Rate: Price: $435,000 PUD Ref: Construction Quality: Good/Average Elevator(s): Gross Rent Mult: Code: 00 Bildin Fi Allowable Units: Construction Type: Wood Frame Mechanicals `' Rent/Square Feet: Desc: Good Sale Excess Land(SgFt): ug Condition: ar Security stem: N Zoning Variance: N Walls and Roof Electrical Service: Average ty S y Last Ins ection Plumbing: Average Factors p Frontage: 120 Primary Exterior Walls: Brick Sprinkler Type/Percent: / Appraiser ID: I 1 Left Side: 128 Secondary Exterior Walls: Wood Location Factors Appraisal Date: 04/10/2012 Rear Side: 120 Roof Construction: Wood Heating (Type/Percent) Reason: Appeal Right Side: 128 Roof T Effective Width: 120 YPe: HiP Heating 1: Hot Water/100 Result: Interior Roof Cover: Asphalt Shingles Heating 2: / Effective Depth: 128 Use Codes Type Suffix % Heating 3: / Effective Water: 0 Current Inspection Property Area(SgFt): 15,360 Code 1: 352-Multiple Residence,Low Rise I i�n Air Cond. (Type/Percent) Utilities(Rent Includes) Appraiser ID: Acreage: 0.35 Code 2: Park: Code 3: A/C I: Wall/80 C;as Park Quality: A/C 2: / Water P Pa Lake: Code 4: A/C 3: Garbage Appraisal Date: Lake Quality: Depreciation and Age Totals On River: Functional%: Actual Age: 1960 Reason: River Quality: Economic%: Effective Age: 1960 Building Areas Landscape Quality: Physical%: Renovated Age: First Floor Area: 1,980 Building iscellaneous Gross Building Area: 5,940 Attributes g Amenities = Result: Alley Garages and Parking Net Rentable Area: 4,878 Storage Facilities Curbs Type Spaces Floor Area Rental$ Mezzanine Area: Common Laundry Gas Type 1: Parking-Surface 8 672 Total Floor Area: 5,940 Left Tag: Yes/No Gutter Type 2: Building Ratios and Perimeter Paved Street Sewer Available Type 3: Land Building Percent: 259 t Value Water Available Type 4• Floor Area Percent: 39 Value: Perimeter Length: 181 Desc: Type 5: Office Area: Pools Gross Office Area Percent: Influences Number Type Thru Street Comments FAIR CONDITION OVERALL.THERE ARE SOME ITEMS THAT ARE POOR CONDITION,SUCH AS THE Building Heights CARPETING CONDITION,KITCHEN CABINETS NEED VARNISH AND COMMON AREAS NEED Average Story Height: 9.0 ATTENTION.BASEMENT LEVEL LAUNDRY ROOM INCLUDES 1 WASHER AND 1 DRYER RUN BY THE Number of Stories 3.0 OWNER. PROPERTY HAS INSUFFICIENT PARKING FOR NUMBER OF 2 BEDROOM UNITS-SUFFICIENT Average Clearance Height: 8.0 PARKING WOULD BE AT LEAST I I SPACES PLUS VISITING. APT ONLY HAS 8 SPACES.APT LOCATED Finished Ceiling Height: 8.0 ON BUSY ST BETWEEN BC AND MPLS,AND ALONG ALLEY. I YEAR LEASES,AFTER 1 YR MTH TO Miscellaneous MTH. MOISTURE DAMAGE TO CEILING IN BATHROOM AND BUCKLING IN CERAMIC DUE TO SWELLING STUDS BEHIND BATH SURROUND. ALL UNITS HAVE ORIG CABINETS,DOORS,TRIM AND I WALL MOUNTED BATHROOM SINKS. UNITS HAVE VINYL TILE AND CARPET,EXCEPT ONE UNIT Teenant:nant:Lease: Multi-Tenant HAS PERGO FLOOR THROUGH OUT. ORIG.CERAMIC IN BATHROOMS. UNITS HAVE 2 EXITS. 0--- - 0- City of Brooklyn Center PID: 01-118-21-33-0146 Property Type: A-Apartment Multi-Family Field Card Property Address: 5301 Dupont Ave N Zoning: R4 Lot/Block: 000/004 Addition: N.&E.Perkins Addition To Minneapolis Owner(s): Ung Properties LLP Printed: 4/27/2012 District: Assessment Vear: 2012 Neighborhood: 0071 Version: 1 Watershed: 15 Project(s): Building: 1 School District: 0286 Total Apt.Units: 6 Total Garage Units: 0 55' 36' Rllrxwn'� �Pte , NEI MUI nir�nrr�,?x. � Ske[ch by Apex MedinzTM Additional Subject Photos �S➢ Conversion rim Iwo _ - y 04-10-2012 Exterior bldg front 2012 Board of Appeal and Equalization Spencer Ung Additional Subject Photos .� = or Ova 04-10-2012 Exterior Bldg Side k i Ailk 04-10-2012 Interior stairwell 2012 Board of Appeal and Equalization Spencer Ung Additional Subject Photos t 3 04-10-2012 Interior Kitchen _1 04-10-2012 Interior bathroom 2012 Board of Appeal and Equalization Spencer Ung Additional Subject Photos 04-10-2012 Living Room t 04-10-2012 Interior kitchen 2012 Board of Appeal and Equalization Spencer Ung Additional Subject Photos It'll,, 04-10-2012 Interior bathroom A. - y t I i 04-10-2012 Interior kitchen 2012 Board of Appeal and Equalization Spencer Ung Additional Subject Photos s 1 t r 'YYki i tC � "IWO y• A 04-10-2012 Interior bathroom 3 fi , Alk,. IM 1 R� y 1 4-10-2012 Laundry facilities 2012 Board of Appeal and Equalization Spencer Ung Additional Subject Photos f.. 2012 Board of Appeal and Equalization Spencer Ung Subject Sketch 55' 36' Sketch by Apex k4dina^' Conversion 2012 Board of Appeal and Equalization Spencer Ung Comparable Sales Analysis }' Lill N . - Subject Comparable 1 Comparable 2 Comparble 3 Cpr_parable 4 PID# 01-118.21-33-0146 19-028-23-23.0084 03-025-24-42-0078 36-029.24-44-0175 34-029-24-24-0198 Address 5301 Dupont Ave N 5749 Sander Dr 3408 Stevens Ave S 2828 28th Ave S 2402 Blaisdell Ave City Brooklyn Center Minneapolis Minneapolis Minneapolis Minneapolis Sale Price $169,950 $244,000 $297,000 $340,000 _._ .......... -- - - Sale Date - 12/14/2011 3131/2011 4119/2011 7/28/2011 Cash Equivalent Price $169,950 $244,000 $294,000 $334,000 Price[/j Unit $54,333 $33,990 $40,667 $58,800 $55,667 Property Use Apartment Apartment Apartment Apartment Apartment Location Average Inferior Inferior Superior Superior Total Land Area 15,360 6,010 5,934 7,536 16,250 #Units 6 5 6 5 6 Efficiency 0 0 0 0 2 1 Bedrooms 1 4 2 1 4 2 Bedrooms 5 1 4 4 0 3 Bedrooms 0 0 0 0 0 Year Built 1960 1961 1923 1923 1915 Quality/Condition Average/Fair Similar Similar Superior Superior Construction Class Wood Frame Wood Frame Wood Frame Wood Frame Wood Frame Exterior Brick Stucco/Brick Stucco Stucco Stucco Roof Hip Flat Flat Flat Gable Heating Hot Water Hot Water Hot Water Hot Water Hot Water #Stori es 2.5 2..5 2.5 2.5 2.5 First Floor Area 1,980 1,428 2,015 2,396 1,764 Gross Building Area 5,940 4,284 6,042 7,188 5,342 Garages None None None None None Surface parking spaces: 8 5 4 3 2 Comments: Airport/Freeway Freeway Hiawatha Rail Wedge Area ADJUSTMENTS: Time 0% 0% 0% 0% Location 5% 3% -2% -20% and Size Adi 3% 5% 3% 0% Age 0% 5% 5% 10% Quality/Condition 0% 0% 5% 5% Size 5% 0% -15% 0% Unit Miz 10% 0% 0% 10% Parking 5% 5% 5% 5% Net Adjustment% 28% 18% -9% 0% Adjusted Sale Price $217,536 $287,920 $267,540 $334,000 Adjusted Price[/]Unit - $43,507 $47,987 $53,508 $55,667 Indicated Value Indicated Adjusted Sale Price Range$43,500 TO$55,700 per unit 0 1 ,PROPERTY USE: APT Low Rise MUNICIPALITY: MINNEAPOLIS COMPLEX NAME: COUNTY: HENNEPIN ADDRESS: 5749 Sander Dr PIN#: 19-028-23-23-0084 Seq#:4 AUDITOR ID: 46702 MULTI PID: N COMMUNITY: 83 NBRHOOD: 83 PROPERTY DESCRIPTION MARKET DATA Year Built/Effective Year Built: 1961 1968 Buyer: CPM3 LLC Seller: ]RON LLC onst Quality/Condition: AVERAGE AVERAGE ;Sale Data: Date of Sale: 12/14/11 onst Class/Bsmt Use: WD or Steel Stud Frm Total Purchase Price: $169,95 Roof Type/Exterior Type: Flat Stucco Down Payment Amount: $ Roof Cvr/2nd Exterior Type: Tar and Gravel Brick Other Terms:TERMS No.of Stories/Bldg Height: 2.0 Ft No Data Available No.of Bldgs/Units Each: 1 Cash Equivalent Price: 0.00% $169,95 Cash Equivalent Adj: Bsmt Area/Finished: 1,428 Sq Ft Sq Ft LESS: Personal Property: $ PLUS:Special Assessments: $ 1st Fl Area/GBA: 1,428 Sq Ft 4,284 Sq Ft Spl Assessment Verified Ind: N Perimeter: Ft Cash Equivalent of Real Estate: $169,95 of Units/Avg Sz: 5 Units Sq Ft Sale Analysis: Sale Price Per Unit: $33,99 Tot Rooms/Avg Sz: Rooms Sq Ft Sale Price Per Room: Sale Price Per Sq. Ft.GBA: $39.6 • 18R 1.00 BA/Size: 4 Sq Ft Gross Rent Multiplier: • 2BR 1.00 BA/Size: 1 Sq Ft Income Data: Garage Stalls: PRIVATE DATA Primary Heating/Pct Hot Water 100% Apt Rents: PRIVATE DATA Secondary Heating/Pct Includes: Heat prinklers/Elevators: Parking Surface/Area: Asphalt 5 Control Entry/Laundry: Patio or Decks: Lake or View: Total Land Area/Excess Land: 6,010 Sq Ft F N Useable Land Area: Sq Ft Zoning: RS Utilities: Units P Acre/Topography: 36.24 i Environmental Concern Ind: Location Rating Factor: Other Amentities:points *The Y/N next to the unit desc indicate:(Stove&Refrigerator)-(Dishwasher)-(Garbage Disposal)-(Washer&Dryer)-(No.of Air Conditioners Per Unit)-(No.of Fireplaces). Summary Comments: Page 1 of I I, t •t a a. p tf. s y • � � 1y+.�.' a/aan •'{'..�,. .._v ti r r•�era.� . - ✓� https://wwwl 6.co.hennepin.mn.us/ace/main?next=pimages&munic=2701&prop_id=19028... 4/27/2012 PROPERTY USE: APT Low Rise MUNICIPALITY: MINNEAPOLIS COMPLEX NAME: COUNTY: HENNEPIN ADDRESS: 3408 Stevens Ave S PIN#: 03-028-24-42-0078 Seq#: 1 AUDITOR ID: 32270 MULTI PID: N COMMUNITY: 53 NBRHOOD: 53 PROPERTY DESCRIPTION MARKET DATA Buyer: Carlson,Daniel&Catherine Year Built/Effective Year Built: 1923 1949 ,Seller: Severson,Dennis&Mary onst Quality/Condition: AVERAGE AVERAGE Sale Data: Date of Sale: 3/31/11 onst Class/Bsmt Use: WD or Steel Stud Frm Total Purchase Price: $244,00 Roof Type/Exterior Type: Flat Stucco Down Payment Amount: $ Roof Cvr/2nd Exterior Type: Tar and Gravel Other Terms: TERMS No.of Stories/Bldg Height: 2.0 Ft No Data Available No.of Bldgs/Units Each: 1 Cash Equivalent Price: 4.85% $244,00 Cash Equivalent Adj: Bsmt Area/Finished: 2,015 Sq Ft Sq Ft LESS: Personal Property: $ PLUS:Special Assessments: $ 1st A Area/GBA: 2,015 Sq Ft 6,042 Sq Ft Spl Assessment Verified Ind: N Perimeter: Ft Cash Equivalent of Real Estate: $244,00 Tot Units/Avg Sz: 6 Units Sq Ft Sale Analysis: Sale Price Per Unit: $40,66 Tot Rooms/Avg Sz: Rooms Sq Ft Sale Price Per Room: Sale Price Per Sq.Ft.GBA: $40.3 * 113R 1.00 BA/Size: 2 Y Sq Ft Gross Rent Multiplier: * 2611 1.00 BA/Size: 4 Y Sq Ft Income Data: Garage Stalls: PRIVATE DATA Primary Heating/Pct Hot Water 100% Apt Rents: PRIVATE DATA Secondary Heating/Pct Includes: Heat Water Trash Sprinklers/Elevators: Parking Surface/Area: Asphalt 4 Control Entry/Laundry: Patio or Decks: Lake or View: Total Land Area/Excess Land: 5,934 Sq Ft F N Useable Land Area: Sq Ft oning: 11213 Utilities: Units P Acre/Topography: 44.04 Environmental Concern Ind: (Location Rating Factor: L� Other Amentities:points *The Y/N next to the unit desc indicate:(Stove&Refrigerator)-(Dishwasher)-(Garbage Disposal)-(Washer&Dryer)-(No.of Air Conditioners Per Unit)-(No.of Fireplaces). Summary Comments: Valid sale,though sales price is lower than indicated by other similar sold properties.The subject is fully rented but units are in need of upgrading. per buyer: current tenants habeen there for many years and pay low rents.Per buyer,All units need to be updted to be rented at current market level. i ! i ,, _ • . A6 E E PROPERTY USE: APT Low Rise MUNICIPALITY: MINNEAPOLIS COMPLEX NAME: COUNTY: HENNEPIN ADDRESS: 2828 28th Ave S PIN#: 36-029-24-44-0175 Seq#:2 AUDITOR ID: 34309 MULTI PID: N COMMUNITY: 61 NBRHOOD: 61 PROPERTY DESCRIPTION MARKET DATA Buyer: Clover Valley Properties LLC Year Built/Effective Year Built: 1923 1923 Seller: Evans,Sharon&Etten Reinhart,Janet onst Quality/Condition: AVERAGE AVERAGE Sale Data: Date of Sale: 4/19/11 onst Class/Bsmt Use: WD or Steel Stud Frm Total Purchase Price: $300,00 Roof Type/Exterior Type: Flat Stucco Down Payment Amount: $ Roof Cvr/2nd Exterior Type: Tar and Gravel ther Terms: ERMS No.of Stories/Bldg Height: 2.0 Ft No Data Available No.of Bldgs/Units Each: 1 Cash Equivalent Price: 4.88% $297,00 Cash Equivalent Adj: LESS: Personal Property: $3,00 Bsmt Area/Finished: 2,396 Sq Ft Sq Ft PLUS:Special Assessments: $ 1st A Area/GBA: 2,396 Sq Ft 7,188 Sq Ft I Spl Assessment Verified Ind: N Perimeter: Ft Cash Equivalent of Real Estate: $294,00 Tot Units/Avg Sz: 5 Units Sq Ft Sale Analysis: Sale Price Per Unit: $58,80 Tot Rooms/Avg Sz: Rooms Sq Ft Sale Price Per Room: Sale Price Per Sq.Ft.GBA: $40.9 * iBR 1.00 BA/Size: 1 Y Sq Ft Gross Rent Multiplier: * 28R 1.00 BA/Size: 4 Y Sq Ft Income Data: Garage Stalls: PRIVATE DATA Primary Heating/Pct Steam 100% Apt Rents: Secondary Heating/Pct PRIVATE DATA ncludes: Heat Water Sprinklers/Elevators: Parking Surface/Area: Asphalt 3 Control Entry/Laundry: Patio or Decks: Lake or View: Total Land Area/Excess Land: 7,536 Sq Ft F N Useable Land Area: Sq Ft Zoning: R4 Utilities: Units P Acre/Topography: 28.90 Environmental Concern Ind: Location Rating Factor: i I Other Amentities:points *The Y/N next to the unit desc indicate:(Stove&Refrigerator)-(Dishwasher)-(Garbage Disposal)-(Washer&Dryer)-(No.of Air Conditioners Per Unit)-(No.of Fireplaces). Summary Comments: Expired listing for$369,000.sales price appears to be below market.sold between acquiantances.per buyer,seller continue occupying one unit for next few motns.The property had been homesteaded. 5th units in basement will need substantial work before it can be made rentable. Page 1 of 1 7 't rut. .. L VA https://wwwl6.co.hennepin.mn.us/ace/main?next=pimages&munic=2701&prop_id=36029... 4/27/2012 0 PROPERTY USE: APT Low Rise MUNICIPALITY: MINNEAPOLIS COMPLEX NAME: COUNTY: HENNEPIN ADDRESS: 2401 Blaisdell Ave PIN#: 34-029-24-24-0198 Seq#:3 AUDITOR ID: 40954 MULTI PID: N COMMUNITY: 51 NBRHOOD: 51 FROPERTY DESCRIPTION MARKET DATA Buyer: Irving Properties Inc Year Built/Effective Year Built: 1915 1915 Seller: Scherston Real Estate Investments LLC onst Quality/Condition: AVERAGE AVERAGE Sale Data: Date of Sale: 7/28/11 onst Class/Bsmt Use: WD or Steel Stud Frm Total Purchase Price: $340,00 Roof Type/Exterior Type: Gable Stucco Down Payment Amount: $ Roof Cvr/2nd Exterior Type: Shingles/Composition Brick Other Terms:TERMS No.of Stories/Bldg Height: 2.5 Ft No Data Available No.of Bldgs/Units Each: 1 Cash Equivalent Price: 4.57% $340,00 Cash Equivalent Adj: Bsmt Area/Finished: 1,764 Sq Ft Sq Ft LESS: Personal Property: $6,00 PLUS: Special Assessments: $ 1st FI Area/GBA: 1,764 Sq Ft 5,342 Sq Ft Spl Assessment Verified Ind: N Perimeter: Ft Cash Equivalent of Real Estate: $334,00 Tot Units/Avg Sz: 6 Units Sq Ft LSale Analysis: Sale Price Per Unit: $55,66 Tot Rooms/Avg Sz: Rooms Sq Ft Sale Price Per Room: Sale Price Per Sq. Ft.GBA: $62.5 * 1BR 1.00 BA/Size: 4 Y Sq Ft Gross Rent Multiplier: * EFF 1.00 BA/Size: 2 Y Sq Ft ncome Data: Garage Stalls: PRIVATE DATA Primary Heating/Pct Hot Water 100% pt Rents: Secondary Heating/Pct PRIVATE DATA includes: Heat Water Trash prinklers/Elevators: Parking Surface/Area: Asphalt 2 Control Entry/Laundry: Patio or Decks: Lake or View: Total Land Area/Excess Land: 16,250 Sq Ft F N Useable Land Area: Sq Ft Zoning: R5 Utilities: Units P Acre/Topography: 16.08 Environmental Concern Ind: Location Rating Factor: Other Amentities:points *The Y/N next to the unit desc indicate:(Stove&Refrigerator)-(Dishwasher)-(Garbage Disposal)-(Washer&Dryer)-(No.of Air Conditioners Per Unit)-(No.of Fireplaces). Summary Comments: listed for$340,000.appraisal for$340,000. listed for less than 2 months. Page https://wwwl6.co.hennepin.mn.us/ace/Main?next=pimages&munic=2701&propjd=34029... 1 ........ ...................... .................. ......... ...I........ 212 MARKET'fERIV .. D INCOME APP ROACH ANALYSIS . .....: APARTMENTS: .............................. .. Ung Apartments YEAR OF CONSTRUCTION: 1960 5301 Dupont Avenue North PID: 01-118-21-33-0146 .................. ...................... ............................ .......................... '6" UNIT MARKET;;; "TOTAL: UNITS MIX RENT ... MARKET RENT ............I... 0 Studio $500 $0 1 1 Bdrm $600 $600 5 2 Bdrm $700 $3,500 THIS IS NOT 0 3 Bdrm $975 $0 ACTUAL INCOME 0 GARAGES $50 $0 FOR THE SUBJECT ECONOMIC PROPERTY MONTHLY ADJ. RENT $4,100 TOTAL ANNUAL ADJ. RENT $49,200 TOTAL NUMBER OF UNITS 6 GROSS BUILDING AREA 5,616 Gross Rent Multiplier G.R.M. 6.75 11 6.75 CAPITALIZED VALUE OF PROPERTY $332,000 CAPITALIZED VALUE PER UNIT $55,333 $55,333 LV per Unit BV per 2012 Land $85,000 $14,167 2012 Bldg $247,000 $43.98 CORRELATED 2012 VALUE BY INCOME APPROACH $332,000 2012 Assessment Land Value Bldg Value EMV SR 1 A NHS $ 85,000 $ 247,000 $332,000 2012 per [/] $59.12 Total $ 85,000 $ 247,000 $332,000 2012 per Unit $55,333 2012 BROOKLYN CENTER APARTMENT ASSESSMENT COMPLEXES 6 to 8 units Apartments 6 TO 8 UNITS 2012 Unit # PROPERTY AREAS 2012 EMV Values [1 2011 EMV 1 SCHAFF APARTMENTS Land 28,882 Land $85,000 $10,625 Unit Land $90,000 7018 Brooklyn Boulevard GBA 7,042 Building $370,000 $52.54 [/] Building $381,000 PID:27-119-21-33-0005 Units 8 Total $455,000 $64.61 [/] Total $471,000 1 -1 Bdrm &7-2 Bdrm Age 1963 Change -3.4% $56,875 Unit Change 0.0% No Garage 2 D&J Properties Land 19,710 Land $85,000 $12,143 Unit Land $100,000 5843 Fremont Ave.N. GBA 5,652 Building $305,000 $53.96 [/] Building $301,000 PID:01-118-21-23-0059 Units 7 Total $390,000 $69.00 [/] Total $401,000 Majority 1 Bdrm's Age 1960 Change -2.7% $55,714 Unit Change 0.0% 6-1 Bdrm&1 -2 Bdrm 4 Garages 3 CERIC APARTMENTS Land 26,850 Land $85,000 $12,143 Unit Land $100,000 7240 West River Road GBA 7,890 Building $309,000 $39.16 [1 Building $331,000 PID: 25-119-21-42-0043 Units 7 Total $394,000 $49.94 11 Total $431,000 6-2 Bdrm&1 -3 Bdrm's Age 1978 Change -8.6% $56,286 Unit Change 0.0% Avg to Fair Cond. 8 Garages 4 Ung Apartments Land 15,360 Land $85,000 $14,167 unit Land $85,000 5301 Dupont Avenue North GBA 5,616 Building $241,000 $42.91 [1 Building $241,000 PID:01-118-21-33-0146 Units 6 Total $326,000 $58.05 11 Total $326,000 Fair Condition Age 1960 Change 0.0% $54,333 Unit Change -0.9% Listed @$309,900(listed for 2+years) 1 -1 Bdrm&5- 2 Bdrm No Garage Border of MPLS/Brooklyn Center 5 LAKE SHORE APARTMENTS Land 15,360 Land $145,000 $24,167 Unit Land $160,000 4809 Twin Lake Avenue GBA 6,130 Building $260,000 $42.41 [/] Building $266,000 PID: 10-118-21-32-0048 Units 6 Total $405,000 $66.07 [/] Total $426,000 HOMESTEAD Age 1961 Change -4.9% $67,500 Unit Change -3.8% All 2 Bdrm-6 Garages Land Bldg Total Bldg Total On Twin Lake w/Dock Sub1 $24,200 $43,300 HMSTD $44,300 Lower level have brick FP's Sub 2 $120,800 $216,700 NON-HMSTD $221,700 and full view w/walk-outs $145,000 $260,000 $266,000 TOTALS Land 106,162 Land $485,000 $ 14,265 Unit Land $535,000 and GBA 32,330 Building $1,485,000 $ 45.93 In Building $1,520,000 AVERAGES Units 34 Total $1,970,000 $ 60.93 11 Total $2,055,000 Change -4.14% $55,893 Unit Change -0.96% G:\SPREDSHT\Assessor\2012 CIAWpartments\[APT 6-8.xlsx]2012 6-8 $55,893 394,000 $58,179 Nhut Van Danq — Mtec Electric Inc. 13707 50th Ave N. An inspection was completed on the property August 10, 2011 during quintile review. The subject property is a single tenant, owner occupied property. The City of Brooklyn Center did not have any industrial sales of comparable age and size, so comparable industrial sales were reviewed from within Hennepin County. Four industrial property sales with structures of comparable age and size were found within Hennepin County during the sales study period. The sales comparable grid indicates a sale price range of $66 to $84 per sq. ft. Since the subject property is owner occupied a market derived income approach was completed on the subject property, which indicated an income approach value of $67 per sq. ft. Due to the lack of industrial sales within the City of Brooklyn Center, recent listings of comparable properties assisted in the overall review of the industrial market locally. • Owner(s) statement of estimated market value or classification and presentation of factual information regarding the property. Questions addressed to the owner regarding the market value or classification. • Assessor's statement of value or classification and presentation of factual information regarding the property. Questions addressed to the Assessor. • Action by the Local Board of Appeal and Equalization Local Board of Appeal will select one of the following: Make no change and sustain the 2012 estimated market value or classification. Reduce the 2012 estimated market value. Increase the 2012 estimated market value. If the owner is not satisfied with the outcome of the Local Board of Appeal and Equalization they may appeal to the County Board of Appeal and Equalization. CITY OF BROOKLYN CENTER LOCAL BOARD OF APPEAL AND EQUALIZATION APR 2 3 2012 2012 Assessment APPLICATION FOR APPEAL March 23, 2012 through April 18, 2012 You must return this application by April 18, 2012, to be placed on the Agenda for the Local Board of Appeal and Equalization held April 30, 2012 at 7:00 P.M. Name(s) Ig y T -IZA rj )A fJG-- Daytime Contact Number: -7�3 ti-37_ /_F 7y Property Address 3 70'7 S-d /t-Vr /U Property Identification Number h ID - Assessor's 2012 Estimated Market Value loo Is your property residential, commercial or multi-family? �- 0/P In 611CO A � If you are appealing a commercial, multi-family or residential rental property you must include income and expense data for calendar year 2011 with your application. What is the reason you are appealing your 2012 assessment? orbK merit_ n'1 A = ,(/�4 LIE . When did you purchase your home? Date of Purchase Purchase Price 4_cy, 0 y L� Did you purchase your property from a bank, as a foreclosure or short sale? n Has your property physically changed since the purchase? (maintenance, upgrades, remodelina or structural damage) Please list a brief description below with an estimated cost. :E)� Have you had a recent appraisal for refinancing, a purchase agreement or a market analysis by a real estate agent completed within the last year? Yes or(No) If so, what was the determination of value? i 1Z t i) O S/91 olc/zy cot A i -` 3 1001 C200 13 UT J\40. 1foEEM _ What do you think the market value of your property should be? 4a oco Please provide any documentation supporting your claim of overvaluation or erroneous classification with this application. 41-3olzo f2- n Lc we- ve-,5i YC)z�e�z�(an '5�eO+ th us orn cz�l z.0 atn crul- �4v-w0 Subject Property Use Code Clr Ht/ #Stories Land GBA EMV EMV[/] Age City #Parking Mtec Electric Industrial 13 1 14,717 5,604 $398,100 $71.04 1952 BC 6 -' 0 Solds Use Code Clr Ht #Stories Land GBA Sale Date Sale Price Price[n Age City #Parking �Q(r/,✓� � 414 6th Ave N. Industrial 1 7,900 5,942 5/1812011 $525,000 $88.35 1955 MPIs 7 2415 Nicollet Ave S Industrial 10.7 1 6,925 5,225 8/12/2011 $389,900 $74.62 1955 MPIs 6 �Dmirk -- 9635 Humboldt Ave S Industrial 13 1 32,344 4,000 5/4/2011 $340,000 $85.00 1962 Bloomington 12 2201 107th LN NE Industrial 1 66,211 7,000 312912012 $395,000 $85.00 1987 Blaine 20 f� Actives Use Code Clr Ht #Stories Land GBA List Price Price[/j Age City #Parking 5001 Drew Ave N Industrial 10 1 20,261 4,673 $489.000 $104.64 1955/1995 BC 14 nom- �� 5124 Hanson Ct Industrial 14 1 13,504 6,340 $449.000 $70.82 1966 Crystal /1 �0 5153 Idaho Ave N Industrial 10 1 22,199 6,950 $395,000 $56.83 1954 Crystal ��k This page was intentionally left blank Assessor' s Report _ 01 E �3rCity of Brooklyn Center A Millennium Community To: 2012 Brooklyn Center Local Board of Appeal and Equalization RE: Nhut Van Dang Mtec Electric Inc. 3707 50th Ave N. Brooklyn Center, MN 55430 Mr. Dang contacted the Assessor's office on 3/30/2012 regarding the 2012 valuation on his property located at 50th Ave N., Brooklyn Center, Mr. Dang indicated that he did not have a recent appraisal on his property. It was suggested that Mr. Dang have a market analysis completed that would indicate a market value. Mr. Dan was directed to contact the Assessor's office should he decide to continue the appeal. The assessor's office did not receive any information from Mr. Dang by April 16th so a follow up letter was mailed including open market industrial sales and information regarding submitting an appeal application. Mr. Dang has indicated on his appeal application that he is requesting a market value of $280,000. A review of the property was completed August 10, 2012 during quintile review. The subject property is a 5,604 sq. ft. industrial building built in 1952, with an effective age of 1970. The property is in average condition, with updated office finish. The building is masonry construction, with secondary brick exterior finish and a flat roof. The roof was replaced in 2005. The property has roof top units providing heat to 86% of the building and space heat for the remaining 24%. The property includes office area, a conference room, engineering area, three bathrooms, lunchroom and warehouse. The office finish has 8' ceiling height, ceiling tiles, carpet, pine trim and six panel wood doors. The warehouse area has a 10' clear height and includes one delivery door. The building does not contain fire alarms or a sprinkler system. There is parking for six vehicles at the rear of the building, but it is currently used for business trucks. There is limited parking on the street for employees. There were no comparable industrial sales in Brooklyn Center during the study period. Four comparable industrial property sales were selected from Hennepin County. The sales are of like age, style and size to the subject property. Comparable sales number four and five have the lowest adjustment percentage and are most comparable to the subject property. The comparable sales indicate a sale price range of $66 to $84 per sq. ft. Industrial sales in Hennepin County during the sale study period indicate a market derived capitalization rate of 6.5%. Using the market derived capitalization rate and local market rents a market derived income approach was completed. As the property is owner occupied, lease income is not available. A market derived income approach was included that indicates a value of $67 per sq. ft. Due to the age of the property, the cost approach was considered but not used. 6301 Shingle Creek Parkway Recreation and Community Center Phone& TDD Number Brooklyn Center, MN 55430-2199 (763)569-3400 City Hall& TDD Number(763)569-3300 Fax (763)569-3434 Fax(763)569-3494 www.cityofbrooklyncenter.org After reviewing market listings, comparable sales and market rents, equal weight was placed on the market derived income approach and the market comparable sales. The indicated $67 per sq. ft. from the income approach falls within the market comparable sale price range of $66 to $84 per sq. ft. Both approaches support a $67 per sq. ft. valuation of the property. It is my recommendation to reduce the 2012 assessed value of $398,100 to $375,500 for taxes payable in 2013. Respectfully submitted, Nancy Wo i , SAM City Assessor This page was intentionally left blank City of BROOKLYN CENTER 2012 Local Board of Appeal and Equalization Nhut Van Dang 3707 50th Ave N 10-118-21-13-0062 2012 Assessed Value: $398,100 Recommendation: $375,500 This report is not an appraisal as defined in M.S. §828.02(subd.3)nor does it comply with the Uniform Standards of Professional Appraisal Practice. It is intended to be used as a reference only and any use other than its intended use is prohibited and unlawful The author does not represent this to bean appraisal and is not responsible for any inappropriate use. It is a report of public records using a mass appraisal technique. City of Brooklyn Center Assessing Department 2012 Local Board of Appeal and Equalization Staff Report Nhut Van Dang Property Owner(s): Property Address: 3707 50th Ave N PID #: 10-118-21-13-0062 irket Value Assessment Year 2012 $398,100 Assessment Year 2011 $398,100 Assessment Year 2010 $398,100 Sale: December 1, 2001 - 200,000 (11 - Other) Comments: The subject property was physically reviewed August 10, 2011. Building area includes office area, conference room, engineering area, three restrooms and a lunchroom. Office finish includes 8' clear height with ceiling tiles and carpet flooring. Pine trim work and 6 panel wood doors. Building does not have fire alarm system or sprinklers. 45%of Building is office area with 80 % pkg unit heat, and 20% space heat. Warehouse area has 10' clear height.and one delivery door. Property has minimal parking for employees as 6 stalls on site used for business trucks. Emp-loyees use on-street parking. The property is currently owner occupied, and constructed for single tenant use. Sales comparable approach indicates a sale price range of$66 to$84 per square foot for properties of similar age, construction, size, and use. A market derived income approach indicates a value per sq. ft. of$67 per square foot. In reconciling the approaches to value the most weight is given to the income approach, with market data fromt he subjects location. The income approach indicates a price per square foot that corresponds with the market sales approach range per square foot. The cost approach was not considered due to the significant adjustment required for the age of the property. It is the Assessor's recommendation to reduce the estimated market value from $398,100 to $375,500 for the 2012 assessment for taxes payable in 2013. Assessor Recommendation: $375,500 Appraiser: Last Inspection Date: Nancy Wojcik August 10, 2011 2012 Board of Appeal and Equalization Nhut Van Dang Subject Data Summary PID#: 10-118-21-13-0062 Buildings on File: 1 Property Name: MTec Electric Inc. Property Address: 3707 50th Ave N Brooklyn Center, MN 55430 Multiple Address: No Lot/Block: 004/005 Addition: Brooklyn Manor Legal(120): Owner(s): Property Classification: Industrial 2012 EMV: 398,100 2011 EMV: 398,100 2010 EMV: 398,100 EMV/GBA: 71.04 Lot Size: 14,717 Sq.Ft./.33 Acres Zoning: 12 Gross Office Area Percent: 44.6% Building Use: 392- Industrial Engineering Bldg/100% #Stories: 1 Avg Story Height: 13 Avg Clear Height: 9 Actual Year Built: 1952 Effective Year Built: 1970 Renovated Year: First Floor Area: 5,604 Gross Building Area: 5,604 Basement: No Parking: Parking-Surface 2012 Board of Appeal and Equalization Nhut Van Dang City of Brooklyn Center PID: 10-118-21-13-0062 Property Type: I-Industrial Commercial Field Card Property Address: 3707 50th Ave N Zoning: I2 Lot/Block: 004/005 Addition: Brooklyn Manor Owner(s): Nhut Dang Printed: 4/26/2012 District: Pham Dang Assessment Year: 2012 Neighborhood: 0016 Project(s): Version: 1 Watershed: 14 Building: 1 School District: 0281 Building Detail Basement Income Information Zoning: 12 Name: Mtek Electronic Basement Basics Gross Income: Area Rating: Average Quality Area(SgFt): Vacancy Percent: Site Rating: Fair Partial Construction(/): Basement Area Percent: Effective Gross Income: Land Quality:� C01-Land Overall Quality: Bsmt.Use Code: Operating Expense: Contamination: Net Income: Architectural Appeal: Fair Bsmt.Use Code Suffix: Flood Plain Map Ref: Capitalization Rate: PUD Ref: Construction Quality: Low Elevator(s): Gross Rent Multiplier: Construction Type: Masonry Allowable Units: Nlechanicals Rent/Square Feet: Excess Land(SgFt): Building Condition: Average Security System: N Electrical Service: Average h' y Zoning Variance: N Walls and Roof Plumbing: Average Last Sale Frontage: 75 Primary Exterior Walls: Concrete Sprinkler Type/Percent: / Date: 12/01/2001 Left Side: Secondary Exterior Walls: Heating (Type/Percent) Rear Side Roof Construction: Wood Heating I: Package Unit/80 Price: $200,000 Right Side: Roof Type: Flat g g Code: 00 Effective Width: Roof Cover: Pitch&Gravel Heating 2: Space/20 Desc: Good Sale Effective Depth: 200 Use Codes Type Suffix % Heating 3: / Effective Water: 0 Air Cond. (Type/Percent) Last Inspection Property S Code 1: 392-Industrial Engineering Bldg A 100 p m'Area( q Ft): 14,717 A/C I: / Appraiser IU: I 1 Acreage: 0.33 Code 2: - 0 A/C 2: Appraisal Date: 08/10/2011 Park: Code 3: - 0 A/C 3: Reason: Quintile Review Park Quality: Code 4: - 0 Totals Result: Interior On Lake: Lake Quality: Depreciation and Age Building 'Lreas o Current Inspection ' On River: Functional /o: Actual Age: 1952 First Floor Area: 5.604 River Quality: Economic%: Effective Age: 1970 Gross Building Area: 5,604 Appraiser ID: Landscape Quality: Physical%: Renovated Age: Net Rentable Area: Appraisal Date: Building Miscellaneous Attributes Mezzanine Area: Garages and Parkin Curbs g g Total Floor Area: Reason: Gas Type Spaces Area Rental$ 6 Building Ratios and Perimeter Result: Gutter Type 1• Parking-Surface Paved Street Land Building Percent: 262.6 Type 2: Floor Area Percent: 38.1 Left Tag: Yes/No Sewer Available Soil Correction Type 3: Perimeter Length: 326 Water Available Type 4: Office Area: 2,500 Gross Office Area Percent: 44.6 Value: Type 5: Net Office Area Percent: Desc: Pools Number Type Comments Influences Inc&Exp Request/Appt.Letter-No response for 2006 assessment.Appeal in 2009,Interior completed 8/10/2011. No Fire Alarm or sprinklers,1 exterior garage door at rear. Building includes office area,conference room,engineering area,one unisex bath in rear and I M/1 F in office area and lunchroom. Office finish includes 8' Building Heights w �k finish w/celing tiles and carpet.Pine trim and 6 panel doors. Minimal parking-parking on property is only for Average Story Height: 13.0 business trucks at the rear. Approximately 6 car capacity,employees currently park on street. Warehouse 10'clear Number of Stories: 1.0 height. Average Clearance Height: 9.0 Finished Ceiling Height: 8.0 Miscellaneous Income/Lease: Tenant: Single Tenant MlAdditional Subject Photos Awe*ddcc W- v Conversion 2012 Board of Appeal and Equalization Nhut Van Dang Subject Sketch 6 3' I 42 First Floor 12' 5604 sf 00 58 51' Sketch by Apex Medina'"' Conversion 2012 Board of Appeal and Equalization Nhut Van Dang Comparable Sales Analysis Subject Comparble 1 Comparable 2 Comparable 3 Comparable 4 PID# 10-118-21-13-0062 11-029-24-43-0071 16-027-24-13-0016 34-029-24-13-0020 22.029-24-24-0027 Address 3707 50th Ave N. 1737 Adams St NE 9635 Humboldt Ave S 2415 Nicollet Ave S 414 6th Ave N City Brooklyn Center M1 Bloomington inneapolis Minneapolis Sale Price $168,000 $355,000 $389,900 $525,000 Sale Date 3/10/2011 514/2011 8/12/2011 5/18/2011 Cash Equivalent Price $168,000 $340,000 $389,900 $525,000 Price[!]GBA $71 $59 $85 $75 $88 Property Use Office/Warehouse Office/Warehouse Office/Warehouse Office/Shop Office/Shop Location Average Average Average Average Average Total Land Area 14,717 6,969 32,344 6,925 7,900 LIB Ratio 2.63 2.47 8.09 1.33 1 33 Year Built/ Eff.Year 1952/1970 1951/1965 1962/1972 1955/1955 1955/1970 Quality/Condition Average Average Average Average Average Construction Class Masonry Block Masonry Block Masonry Block Masonry Block Masonry Block #Stories 1 1 1 1 1.0 First Floor Area 5,604 2,824 4,000 5,225 5,942 Total Floor Area 5,604 2,824 4,000 5,225 5,942 Mezzanine None None None None None Basement None None None None 2000 GBA 5,604 2,824 4,000 5,225 5,942 Office Area 2,500 400 900 700 100 Office Percentage 45% 14% 23% 13% 2% Wall Ht/Clear Ht 1319 14/11 16/13 13/10' 13/9 Primary Heating Package Unit 45% Space Heaters 90% Space Heaters 77% Space Heaters 87% Space Heaters 100% Surface parking spaces: 6 4 12 6 7 Multiple Tenancy? None None None None None Comments: Tearoff/Reroof in 2005, Surface parking,mixed use Cash Equivalent sale price Buyer was adjacent property Average condition warehouse Good office finish nbad.Variations in Wall hts reflects reduction of$15,000 owner. workshop building with from 9-12.12'finished ceiling in personal property that was minimal office area. Vacant at ht office. included in sale price. time of sale.Close proximity to Building has new roof, Target Field. windows and heating system. Building requires painting. ADJUSTMENTS: IL Time 0% 0% 0% 0% Location 0% -10% -5% -15% Land/Building Ratio 0% -5% 0% 0% Age 0% -2% 0% 0% Quality/Condition 0% 0% 0% 0% Size 5% 1% 0% 0% Office Area 10% 5% 10% 10% Functional -5% -5% 0% 0% Net Adjustment% 10% -16% 5% -5% Adjusted Sale Price $185,247 $285,600 $409,395 $498,750 Adjusted Price[/J GBA $66 $71 $78 $84 d Sa Indicated Value Indicate les Price Range$66 to$84 per Sq.Ft PROPERTY USE: Ind. Light Mfg. MUNICIPALITY: MINNEAPOLIS Code: 494 RC:03 COMPLEX NAME: COUNTY: HENNEPIN GBA 2824 CD ADDRESS: 1737 Adams St NE PIN#: 11-029-24-43-0071 Seq #: 2 Ratio N Comp: Y AUDITOR ID: 31509 MULTI PID: N COMMUNITY: NE NBRHOOD: LgPk PROPERTY DESCRIPTION MARKET DATA Year Built/Effective Year Built: 1951 1965 Buyer: Living Hope Ministries Const Quality/Condition: AVERAGE AVERAGE Seller: Treant LLC Const Class/No.of Bldgs: Masonry Bearing Wall Sale Data: Date of Sale: 3/10/11 Exterior Type/Roof Type: Concrete Block Flat 2nd Exterior Type/Roof Cvr: Brick Built-Up Membrane Total Purchase Price: $168,000 SIZE&USES Down Payment Amount: $60,000 First Floor Area/GBA: 2,824 SF 2,824 SF Other Terms: Total Floor Area/NRA: 2,824 SF TERMS Bldg Perim./Shape/Units: FT Set 1 Mezzanine Area/Use: SF Assume Ind: Bsmt Area/%Fin/W SF 0% 0% GBA $108,000 Bsmt Use: PMT- $696 INT- 5.00% PMTS- Bsmt Fin/%: SF 0% GBA BALLOON DATE- 3/31/2014 First Floor Use: Office/Storage First Floor SF/%: 2,824 SF 100% GBA �i Cash Equivalent Price: 4.85% $168,000 2nd+ Floor Use: Cash Equivalent Adj: 2nd+ Floor SF/%: SF 0% GBA LESS: Personal Property: $0 Tot Off Area: 400 SF 14% GBA PLUS:Special Assessments: Ind:N $0 Primary Heating/Pct: Space Heaters 90% Cash Equivalent of Real Estate: $168,000 Secondary Heating/Pct: Warmed&Cooled Air 10% Air Conditioning Pct: 10% Sale Analysis: Sale Price Per Sq.R.TFA: $59.49 Sprinklers/Elevators: Sale Price Per Sq. Ft.GBA: $59.49 Garage/Ramp Spaces: Sale Price Per Sq. Ft. NRA: Surface Parking Space: 4 Sale Price Per Sq. Ft. Land Area: $23.53 Parking Surface Type: Sale Price Per Room: Multiple Tenancy: N Income Data: Bldg Ht/Avg Clear Ht: 14.0 FT 11.0 FT #stories: 1.0 PRIVATE DATA Avg. Finished Ceiling Ht: 12.0 FT Total Land Area/Topography: 7,140 SF Rent Schedule: Useable Land Area: SF PRIVATE DATA Zoning/Land Def Cd: I1 F Trackage/Utilities: N Land Blg Ratio/Excess Land: 2.53 to One N Environmental Concern Ind: Other Amenities: Summary Comments: This property was on the market in July'10 for$400k.The asking price as of 12/10 was$285k.The buyer intends on using the building as-is with just a little bit of painting.The workshop area will be a training/class room. •f� PROPERTY USE: Warehouse Storage MUNICIPALITY: BLOOMINGTON Code: 406 RC:00 COMPLEX NAME: Nor-Star/Ext Innovation COUNTY: HENNEPIN GBA 4000 WD ADDRESS: 9635 Humboldt Avenue South PIN #: 16-027-24-13-0016 Seq#: 1 Ratio Y Comp: Y AUDITOR ID: 34686 MULTI PID: N COMMUNITY: NBRHOOD: PROPERTY DESCRIPTION MARKET DATA Year Built/Effective Year Built: 1962 1972 Buyer: Gardener,Gerald W., ETAL Const Quality/Condition: AVERAGE AVERAGE Seller: Humboldt Properties of Bloomington LLC Const Class/No.of Bldgs: Masonry Bearing wail 1 Sale Data: Date of Sale: 5/4/11 Exterior Type/Roof Type: Concrete Block Flat Total Purchase Price: $355,000 2nd Exterior Type/Roof Cvr: Tar and Gravel SIZE&USES Down Payment Amount: $134,112 First Floor Area/GBA: 4,000 SF 4,000 SF Other Terms: Total Floor Area/NRA: 4,000 SF TERMS Bldg Perim./Shape/Units: 260 FT Rectangle No Data Available Mezzanine Area/Use: 0 SF Cash Equivalent Price: 4.77% $355,000 Bsmt Area/%Fin/%: 0 SF 0% 0% GBA Cash Equivalent Adj: Bsmt Use: 0 LESS: Personal Property: $15,000 Bsmt Fin/%: SF 0% GBA PLUS:Special Assessments: Ind:N $0 First Floor Use: off/Whse Cash Equivalent of Real Estate: $340,000 First Floor SF/%: 4,000 SF 100% GBA 2nd+ Floor Use: Sale Analysis: Sale Price Per Sq. Ft.TFA: $85.00 2nd+ Floor SF/%: 0 SF 0% GBA Sale Price Per Sq. Ft.GBA: $85.00 Tot Off Area: 909 SF 23% GBA Sale Price Per Sq. Ft. NRA: Primary Heating/Pct: Space Heaters 77% Sale Price Per Sq. Ft. Land Area: $10.51 Secondary Heating/Pct: Forced Air 23% Sale Price Per Room: Air Conditioning Pct: 9% Income Data: Sprinklers/Elevators: 0 Garage/Ramp Spaces: PRIVATE DATA Surface Parking Space: 12 Parking Surface Type: Asphalt Rent Schedule: Multiple Tenancy: N PRIVATE DATA Bldg Ht/Avg Clear Ht: 16.0 FT 13.0 FT #Stories: 1.0 Avg. Finished Ceiling Ht: FT Total Land Area/Topography: 32,344 SF Useable Land Area: 32,344 SF Zoning/Land Def Cd: I-3 F Trackage/Utilities: N Land Blg Ratio/Excess Land: 8.09 to One Y Environmental Concern Ind: Other Amenities: Summary Comments: Verified with both buyer and sellers broker(Russ Crawford). Property was marketed for 2 months at$395,000. Buyer owns construction company with a location on the same street. He signed a PA but had trouble with financing.The bank had a'limited evaluation"at$272,000 and would only loan 80/20. Buyer wanted to back out but would of lost$20k in earnest money. He felt he overpaid due to this.Selling broker thought property was in demand and a hard to find size. PP of forklift, racking,phone system estimated to be worth$15,000. Building has newer roof but needs repainting, new windows and new heat.see addn comments. �# I s k � a oil ON ( - BB p w PROPERTY USE: Ind. Light Mfg. MUNICIPALITY: MINNEAPOLIS Code: 494 RC: 03 COMPLEX NAME: COUNTY: HENNEPIN GBA 5225 TD ADDRESS: 2415 Nicollet Ave S PIN #: 34-029-24-13-0020 Seq#: 1 Ratio N Comp: Y AUDITOR ID: 40357 MULTI PID: N COMMUNITY: 51 NBRHOOD: 51 PROPERTY DESCRIPTION MARKET DATA Year Built/Effective Year Built: 1955 1955 Buyer: Tasks Unlimited Lodges Const Quality/Condition: AVERAGE AVERAGE Seller: Merz,Raymond J Jr Trustee Const Class/No.of Bldgs: Masonry Bearing wall Sale Data: Date of Sale: 8/12/11 Exterior Type/Roof Type: Concrete Block Flat Total Purchase Price: $389,900 2nd Exterior Type/Roof Cvr: Brick Tar and Gravel SIZE&USES Down Payment Amount: $389,900 First Floor Area/GBA: 5,225 SF 5,225 SF Other Terms: Total Floor Area/NRA: 5,225 SF TERMS Bldg Perim./Shape/Units: 300 FT Rectangle No Data Available Mezzanine Area/Use: SF Cash Equivalent Price: 4.44% $389,900 Bsmt Area/%Fin/%: SF 0% 0% GBA Cash Equivalent Adj: Bsmt Use: LESS: Personal Property: $0 Bsmt Fin/W SF 0% GBA PLUS: Special Assessments: Ind:N $0 First Floor Use: offc/Shop Cash Equivalent of Real Estate: $389,900 First Floor SF/%: 5,225 SF 100% GBA 2nd+ Floor Use: Sale Analysis: Sale Price Per Sq. Ft.TFA: $74.62 2nd+ Floor SF/%: SF 0% GBA Sale Price Per Sq. Ft.GBA: $74.62 Tot Off Area: 700 SF 13% GBA Sale Price Per Sq. Ft. NRA: Primary Heating/ Pct: Space Heaters 87% Sale Price Per Sq. Ft. Land Area: $56.30 Secondary Heating/Pct: Forced Air 13% Sale Price Per Room: Air Conditioning Pct: 100% Income Data: Sprinklers/Elevators: Garage/Ramp Spaces: PRIVATE DATA Surface Parking Space: 6 Parking Surface Type: Asphalt Rent Schedule: Multiple Tenancy: N PRIVATE DATA Bldg Ht/Avg Clear Ht: 13.0 FT 10.7 FT #Stories: 1.0 Avg. Finished Ceiling Ht: FT Total Land Area/Topography: 6,925 SF Useable Land Area: SF Zoning/Land Def Cd: C1 F Trackage/Utilities: N Land Blg Ratio/Excess Land: 1.33 to one N Environmental Concern Ind: Other Amenities: Summary Comments: The buyer owns the properties on either side of the sale property.The buyer is a non profit and will seek exempt status.The buyer has been talking about the purchase of this property with the seller for years. t r 4 - � IY + i a ry�'c"YYilj1 t� 4 a r • a • PROPERTY USE: Warehouse Dist. MUNICIPALITY: MINNEAPOLIS Code: 407 RC:00 COMPLEX NAME: COUNTY: HENNEPIN GBA 5942 WD ADDRESS: 414 6th Ave N PIN#: 22-029-24-24-0027 Seq #: 1 Ratio Y Comp: Y AUDITOR ID: 34729 MULTI PID: N COMMUNITY: 86 NBRHOOD: 86 PROPERTY DESCRIPTION MARKET DATA Year Built/Effective Year Built: 1955 1970 Buyer: 414 Sixth Ave N LLC Const Quality/Condition: AVERAGE AVERAGE Seller: Sunny Hill Investment Co LLC Const Class/No.of Bldgs: RF Concrete Frame Sale Data: Date of Sale: 5/18/11 Exterior Type/Roof Type: Concrete Block Flat Total Purchase Price: $525,000 2nd Exterior Type/Roof Cvr: Tar and Gravel Down Payment Amount: $157,500 SIZE&USES First Floor Area/GBA: SF 5,942 SF Other Terms: Total Floor Area/NRA: 5,942 SF TERMS Bldg Perim./Shape/Units: FT Rectangle No Data Available Mezzanine Area/Use: SF Cash Equivalent Price: 4.77% $525,000 Bsmt Area/%Fin/%: 0 SF 0% 0% GBA Cash Equivalent Adj: Bsmt Use: LESS: Personal Property: $0 Bsmt Fin/%: SF 0% GBA PLUS: Special Assessments: Ind:N $0 First Floor Use: Cash Equivalent of Real Estate: $525,000 First Floor SF/%: SF 0% GBA 2nd+ Floor Use: Sale Analysis: Sale Price Per Sq. Ft.TFA: $88.35 2nd+ Floor SF/%: SF 0% GBA Sale Price Per Sq. Ft. GBA: $88.35 Tot Off Area: SF 0% GBA Sale Price Per Sq. Ft, NRA: Primary Heating/Pct: Space Heaters 100% Sale Price Per Sq. Ft. Land Area: $66.46 Secondary Heating/Pct: Sale Price Per Room: Air Conditioning Pct: 0% Income Data: Sprinklers/Elevators: 0 0 Garage/Ramp Spaces: PRIVATE DATA Surface Parking Space: 7 Parking Surface Type: Asphalt Rent Schedule: Multiple Tenancy: N PRIVATE DATA Bldg Ht/Avg Clear Ht: FT FT #Stories: 1.0 Avg. Finished Ceiling Ht: FT Total Land Area/Topography: 7,900 SF Useable Land Area: SF Zoning/Land Def Cd: I2 F Trackage/Utilities: N Land Big Ratio/Excess Land: 1.33 to One N Environmental Concern Ind: Other Amenities: Summary Comments: Small,average cnd whs/workshop bldg.Was leased 8/2010 by buyer 2 yrs w/options; listed at time for sale @$520k or lease. Buyer's went back to seller 5/11 to negotiate purchase,needed to own in order to get SBA loan(504b),also worried about Target Field impact on future prices and lease rates. $525k final negotiated price.Vacant at sale,needs some build out(incl new HVAC),use will be micro-brewery production.Appraisal of$695k was"as improved"per SBA loan plan; no as is appraisal done. Ei l! •itt'� t r 5 INCOME WORKSHEET 2012 Pay 2013 .....1 '1.1$.��..13.00��................................ :::::.:.: '.'. ::.:..:.... #�ROACT NAIL[ h1' G........... ..:.:.:.:.:.:.:: .: .R -.p I . AQI R A PRtJA ..............................MARKET ZQNINCi ' 13.:.:.:.:.:................................................ OWNER PROPERTY TYPE -CC : INDUSTRIAL NET LEASES YEAR BUILT 1952 MARKET DERIVED INCOME ANALYSIS GROSS BUILDING AREA 5,604 OFFICE INCOME $20,625 WAREHOUSE INCOME $13,192 .......................... MEZZANINE INCOME $0 I Blended Rent ....................................: OFFICE AREA 2,500 PGI $33,817 : 6.03 :...................................: BA i WAREHOUSE AREA 3,104 Sq Ft G...........; MEZZANINE AREA 0 0% LESS: VACANCY $3,382 OFFICE RATE $8.25 EGI (before concessions) $30,435 WAREHOUSE RATE $4.25 MEZZ. RATE LESS: RENT CONCESSIONS $0 VACANCY ALLOWANCE 10.00% FREE RENT $0 SQUARE FEET VACANT 560 SQUARE FEET OCC. 5,044 EGI $30,435 % OF EGI RENT CONCESSIONS 0.00% LESS: EXPENSES $1,821 5.98% FREE RENT 0.00% LEASING $1,614 5.30% TURNOVER RATE 10.00% TENANT IMPROVEMENTS $0 0.00% TENANTS REMAINING 90.00% RESERVES $0 0.00% AV. LEASING PERIOD 5 MANAGEMENT $913 3.00% TOTAL EXPENSES - $4,348 14.29% EXPENSES/SQ.FT.NSES/S Q 3.2 NOI MANAGEMENT 3.00% TENANT IMP. COST- NEW $0.00 20CiQPITAIDVAu '' 38QfQQ0 RENEWAL $0.00 PER SQ.FT. GBA $67.81 EXPENDABLE VAL. OF TI 30.00% RES. FOR REPLACEMENT $0.00 SQ FT EXPENSE RATIO - 14.29% LEASE COMMISIONS-NEW $2.50 SQ FT USEABLE LAND AREA- 14,717 RENEWAL $1.50 SQ FT EFFECTIVE TAX RATE 4.00% CAP RA 0 ............ .................. TAX:RATE € €€€ 0>?ttl.fo. 2012 ASSESSED VALUE $380,000 0v5RALL RATE 6>90°Io PER SQ.FT. GBA $67.81 Minnesota Commercial Real Estate Page 1 of 1 Mori e. Aa C<xrnner:ial Real Estate-Minnesota C—i nay gal Prix-!y For yak Mlnnesola(:umrnercNl Prgl hes kx Lase AGENT ID PASSWORD Submit Forgot Password? HOME MEMBERSHIP ASSOCIATIONS MNCAR EXCHANGE JOIN EVENTS RESOURCES OUR SPONSORS GREATER MN CONTACT US Listing Detail - For Sale 5124 Hanson Ct $449,000 Listing ID#1228184 5124 Hanson Ct 5124 Hanson Ct Crystal MN 55429 - ° County:Hennepin TO Map:91/E2 Listing Type:Industrial $74.83 per Bldg SF Options: Print Version I -Ma I Demographics I Bird's Eve View For More Information Contact: Jim Cohen-Edina Realty Inc Phone:(952)285-3141 1 Fax:952-285-3101 1 Email:click h r Property Summary-5124 Hanson Ct Property Type: Industrial Year Built: 1966 Total Building SgFt: 6,000 Total SgFt of Lot: 13,504 Total Rentable Area: 0 Total Acres of Lot: 0.31 Total Units: Cap Rate: Status: Available Number of Floors: 1 NOI: Construction Type: Masonry,Stucco General Zoning: I-1 Description 5124 Hanson Ct ONE LEVEL STUCCO AND BLOCK OFFICE/WAREHOUSE BUILDING WITH 14 FT CLEAR HEIGHT CEILING AND 2-DRIVE-IN DOORS.2-RESTROOMS.400 AMP ELECTRIC.1,500 SF OFFICE AND 4,500 SF WAREHOUSE.1,750 SF ADDITION-1985.NEW CARPETING OFFICE- 2002.NEW 1/3 ROOF-2004.NEW SECURITY SYSTEM-2006.5,000 LB CAPACITY TRUCK HEIGHT HYDRAULIC SCISSORS FLOOR LIFT AT MAIN DRIVE-IN DOOR. All information provided is deemed reliable but is not guaranteed and should be inderxndently verified. ©Copyright 2012 MNCAR 16800 France Ave#760,Edina,MN 55435 1 Ph:952.908.1780 1 Fax:952.908.1799 1 Home I Site Ma .BBB» Click for Review http://www.mncar.org/index.cfm?fuseaction=property.detailfs&ln=1228184 4/2/2012 11 0 Minnesota Commercial Real Estate Page 2 of 2 Listing Detail - For Sale INTERNATIONAL Coffiers 5153 Idaho Ave N $395,000 Listing ID«1232528 5153 Idaho Ave N 5153 Idaho Ave N Crystal MN 55428 County:Hennepin T Listing Type:Industrial $57.40 per Bldg SF Options: Print Version j Map I Demographics 1 PQF I Bird's Eve View For More Information Contact: Andrew Odney-Colliers International/Mpls-St Paul Phone:(952)897-7709 1 Fax:952-897-7704 1 Email:click here Co-Listing Agent:Brian Netz-Colliers International/Mpls-St Paul Phone:(952)897-7736 Website Marketing Website Property Summary-5153 Idaho Ave N Property Type: Industrial Year Built: 1954 Total Building SgFt: 6,882 1"otal SgFt of Lot: 22,216 Total Rentable Area: 0 1 O Acres of Lot: 0.51 Total Units: Crap Rate: Status: Available Number of Floors: 1 NOI: Construction Type: General Zoning: Description 5153 Idaho Ave N All information provided is deemed reliable but Is not guaranteed and should be independently verified. ©Copyright 2012 MNCAR 1 6800 France Ave#760,Edina,MN 55435 1 Ph:952.908.1780 1 Fax:952.908.1799 1 Home I Site Mao T i3i3a. - Click for Review http://www.mncar.org/index.cfm?fuseaction=property.detailfs&ln=1232528 4/2/2012 Minnesota Commercial Real Estate Page 1 of 1 Minnesota Cmnmer:ial Real Estate-Mnnesota C<wmnac"I for SWe-NirNtesolA co"oercel Pro{xxti s Finr L.eaw AGENT ID PASSWORD Submit Famot Vauword7 HOME MEMBERSHIP ASSOCIATIONS MNCAR EXCHANGE JOIN EVENTS RESOURCES OUR SPONSORS GREATER MN CONTACT US Listing Detail - For Sale CUSHIMAN& _x NORTHMARQ Stoner Associates Building $489,000 LiSrinO 10,- t1�r3ct� Stoner Associates Building 5001 Drew Ave N Brooklyn Center MN 55429 County:Hennepin i6ii Listing Type:Industrial $104.64 per Bldg SF Options: Print Version I _MW I Demographics I Bird's Eye View For More Information Contact: Brent Masica-Cushman&Wakefield/NorthMarg Phone:(952)893-8231 1 Fax:952-893-8293 1 Ernail:click here Co-Listing Agent:Hudson Brothen-Cushman&Wakefield/NorthMarg Phone:(952)893-8261 Property Summary-Stoner Associates Building Property Type: Industrial Year Built: 1955 Total Building SgFL 4,673 Iota SgFt of Lot: 20,261 Total Rentable Area: 4,673 Total Acres of Lot: 0.47 Total Units: Crap Rate: Status', Available Number of Floors: 1 N01: Construction Type: Masonry General Zoning: C-2 Description Stoner Associates Building Extrememly well kept building with great visibility to Hwy 100.Part of the office can easily be converted to warehouse or storage if needed. All information provided is deemed reliable but is not guaranteed and should be independently verified. ©Copyright 2012 MNCAR 16800 France Ave#760,Edina,MN 55435 1 Ph:952.908.1780 1 Fax:952.908.1799 1 Home I Site Mao BBB. Click for Review http://www.mncar.org/index.cfm?fuseaction=property.detailfs&ln=1229813 4/2/2012 This page was intentionally left blank Appearances by Taxpayers Without an Appointment The following format is recommended for each walk-in appeal. Please state owner(s) name and address. Owner(s) statement of estimated market value or classification and presentation of factual information regarding the property. • Questions addressed to the owner(s). Assessor's statement of estimated market value or classification and presentation of factual information regarding the property. • Questions addressed to the Assessor. The Local Board of Appeal and Equalization considers the appeal and makes one of the following motions: • Refer the appeal to the Assessor's office for an interior review of the property if and Assessor's recommendation at a Local Board reconvene meeting on May 7, 2012. • Make no change and sustain the 2012 estimated market value or classification of the property. If the owner is not satisfied with the outcome of the Local Board of Appeal they may appeal to the County Board of Appeal and Equalization. This page was intentionally left blank CITY OF BROOKLYN CENTER LOCAL BOARD OF APPEAL AND EQUALIZATION 2012 Assessment APPLICATION FOR APPEAL March 23, 2012 through April 18, 2012 You must return this application by April 18, 2012, to be placed on the Agenda for the Local Board of Appeal and Equalization held April 30, 2012 at 7:00 P.M. Name(s) ru,/ 1 (5�`� Daytime Contact Number: ?j63 Property Address Property Identification Number_/ Assessor's 2012 Estimated Market Value O d Is your property residential, commercial or multi-family? V j�jjL"l If you are appealing a commercial, multi-family or residential rental property you must include income and expense data for calendar year 2011 with your application. What is the reason you are appealing your 2012 assessment? ed 4,4 f` v -e L, cc sale p'l,ce When did you purchase your home? Date of Purchase Purchase Price Did you purchase your property from a bank, as a foreclosure or short sale? Has your property physically changed since the purchase? (maintenance, upgrades, remodeling or structural damage) Please list a brief description below with an estimated cost. Have you had a recent appraisal for,refinancing, a purchase agreement or a market analysis by a real estate agent completed within the last year? <:6p or No If so, what was the determination of value? //') 6 o What do you think the market value of your property should be? ()O Please provide any documentation supporting your claim of overvaluation or erroneous classification with this application. Main File No.07081 1 P e#1 r SMINMlik 3 lip. S 6r,yt 3 3#Y�3 h1; , u. " \ V A$ WI APPRAISAL OF REAL PROPERTY LOCATED AT: 6913 Oliver Ave N Lot 003 Block 004 Haleks addition Brooklyn Center,MN 55430 FOR: Private 6913 Oliver Ave N Brooklyn Center,MN 55430 AS OF: 04/26/2012 BY: Brian Manthey I IRR-Residential(763)503-9354 I Form GA2—"WinTOTAL"appraisal software by a la mode,inc.—1-800-ALAMODE Borrower N/A File No. 0708191 Property Address 6913 Oliver Ave N City Brooklyn Center County Hennepin State MN Zip Code 55430 Lender Private TABLE OF CONTENTS CoverPage ....................................................................................................................................................................................................................... 1 Summaryof Salient Features............................................................................................................................................................................................. 2 URAR ................................................................................................................................................................................................................................ 3 AdditionalComparables 4-6.............................................................................................................................................................................................. 9 Market Conditions Addendum to the Appraisal Report ..................................................................................................................................................... 10 UADDefinitions Addendum .............................................................................................................................................................................................. 11 GeneralText Addendum..................................................................................................................................................................................................... 14 SubjectPhotos.................................................................................................................................................................................................................. 16 PhotographAddendum ..................................................................................................................................................................................................... 17 PhotographAddendum ..................................................................................................................................................................................................... 18 PhotographAddendum ..................................................................................................................................................................................................... 19 PhotographAddendum ..................................................................................................................................................................................................... 20 PhotographAddendum ..................................................................................................................................................................................................... 21 BuildingSketch(Page-1)................................................................................................................................................................................................. 22 BuildingSketch(Page-2)................................................................................................................................................................................................. 23 ComparablePhotos 1-3..................................................................................................................................................................................................... 24 ComparablePhotos 4-6..................................................................................................................................................................................................... 25 LocationMap..................................................................................................................................................................................................................... 26 PlatMap............................................................................................................................................................................................................................ 27 AerialMap......................................................................................................................................................................................................................... 28 Appraiser's License........................................................................................................................................................................................................... 29 E&0 Insurance................................................................................................................................................................................................................. 30 Form TOCNP—°WinTOTAL"appraisal software by a la mode,Inc.—1-800-ALAMODE , Main File No.07081911 Pa a#2 SUMMARY OF SALIENT FEATURES i Subject Address 6913 Oliver Ave N Legal Description Lot 003 Block 004 Haleks Addition City Brooklyn Center County Hennepin State MN Zip Code 55430 Census Tract 0202.00 Map Reference 78-B3 Sale Price $ Date of Sale Borrower N/A Lender Private Size(Square Feet) 1,224 Price per Square Foot $ Location N;Res; Age 59 Condition C5 Total Rooms 5 Bedrooms 1 Baths 1.0 Appraiser Brian Manthey Date of Appraised Value 04/26/2012 Final Estimate of Value $ 110,000 I Form SSD—"WinTOTAL"appraisal software by a la mode,inc.—1-800-ALAMODE �I IRR-Residential(763)503-9354 Main File No.0708191 Pa a#3 Summary Appraisal Report 12DBWP Uniform Residential Appraisal Report File#0708191 The purpose of this summary appraisal report is to provide the lender/client with an accurate, and adequately supported, opinion of the market value of the subject property. FropertyAddress 6913 Oliver Ave N City Brooklyn Center State MN Zip Code 55430 Borrower N/A Owner of Public Record Vetter Robert&Graham Kurt County Hennepin Legal Description Lot 003 Block 004 Haleks Addition Assessor's Parcel# 2611921340001 Tax Year 2011 R.E.Taxes$ 2,643 Neighborhood Name Brook) n Center Map Reference 78-133 Census Tract 0202.00 Occupant ®Owner ❑Tenant ❑Vacant Special Assessments$ 0 PUD HOA$ 0 per year ❑per month Property Rights Appraised ® Fee Simple ❑ Leasehold ❑ Other describe Assignment Type ❑ Purchase Transaction ❑ Refinance Transaction ® Other describe Determine Market Value as of 04/24/12 the date of inspection. Lender/Client Private Address 6913 Oliver Ave N Brooklyn Center MN 55430 Is the subject property currently offered for sale or has it been offered for sale in the twelve months prior to the effective date of this appraisal? ❑Yes ® No Report data sources used,off ering rice s,and date(s). Hennepin CountV Records and Northstar MLS. 1 ❑ did ❑ did not analyze the contract for sale for the subject purchase transaction.Explain the results of the analysis of the contract for sale or why the analysis was not performed. Contract Price$ Date of Contract Is the property seller the owner of public record? ❑Yes ❑No Data Source(s) Is there any financial assistance(loan charges,sale concessions,gift or downpayment assistance,etc.)to be paid by any parry on behalf of the borrower? ❑Yes ❑ No If Yes,report the total dollar amount and describe the items to be paid. Note:Race and the racial composition of the neighborhood are not appraisal factors. p x r_ `' One�U,mt'Houstn :Trendsµ_-, s Qn Un txMod si °, .,J PresenX,L�rid.lJse.% Nei"hborhood Gharackenstics r. {� �. Location ❑Urban ®Suburban Ll Rural Property Values ❑Increasing ® Stable ❑ Declining PRICE AGE One-Unit 85% Built-Up ®Over 75% ❑25-75% ❑ Under 25% Demand/Supply ❑Shortage Z In Balance ❑Over Supply $ 000 rs 2-4 Unit 5% Growth ❑Rapid ®Stable ❑ Slow Marketing Time ® Under 3 mths ❑3-6 mths ❑ Over 6 mths 40 Low 25 Multi-Family 5% Neighborhood Boundaries The market area is located south of Brookdale Dr N west of Humboldt Ave.N 200 High 75 Commercial 5% north of Interstate 694 and east of Zane Ave. 100 Pred. 55 Other % Neighborhood Description The subject is located in a first tier suburb 8 miles northwest of the Minneapolis Central Business District. Immediate nei hborhood consists mainly of modest well maintained rambler style homes built in the 1950's and 1960's. Commercial support improvements are located within one mile and feature numerous big box retailers and national chain restaurants. Freeway access is within one mile. Market Conditions including support for the above conclusions SEE ATTACHED MARKET CONDITIONS FORMS Dimensions 80x262x75x306 Area 20038 sf Shape Rectangular View B;Woods, Specific Zoning Classification R1 Zoning Description One Family Residence Zoning Compliance ®Legal ❑ Legal Nonconforming Grandfathered Use ❑ No Zoning ❑ Illegal describe Is the highest and best use of subject property as improved or as proposed per plans and specifications)the present use? ®Yes ❑ No tf No,describe Utilities Public Other(describe) Public Other(describe) Off-site Improvements-Type Public Private Electricity ® ❑ Water ® ❑ Street Asphalt ® ❑ Gas ® ❑ Sanitary Sewer ® 0 AlleY None ❑ ❑ FEMA Special Flood Hazard Area ❑Yes ® No FEMA Flood Zone X FEMA Map# 27053CO208E FEMA Map Date 09/02/2004 Are the utilities and off-site improvements typical for the market area? ®Yes ❑ No If No,describe Are there any adverse site conditions or external factors easements,encroachments,environmental conditions,land uses,etc.)? ❑Yes ® No If Yes,describe General;Descri tion, .' „` Foundation,{�;'"� Eztei(orDesei!`#ion, ' tmatertalsXcondIt Otertor t�materials%ontlit(on" Units ® One ❑ One with Accessory Unit ❑ Concrete Slab ❑ Crawl Space Foundation Walls Concrete Blk/Avq Floors C t/tile/Av #of Stories 1 Full Basement ❑ Partial Basement Exterior Walls Metal/Vinyl/Ay Walls Drywall/Avg Tye ® Det. ❑Att. ❑S-Det./End Unit Basement Area 1,224 s .ft.Roof Surface As halt/Av Trim/Finish Wood/Avg ® Existing ❑ Proposed Under Const.Basement Finish 43 % Gutters&Downspouts Alum/Ay Bath Floor Ceramic/Av Design(Style) 1 Story ❑ Outside En /Exit ®Sump Pump Window Type Casement/Avg Bath Wainscot CeramicTile/av Year Built 1953 Evidence of ❑ Infestation Storm Sash/Insulated thermopane/Avq Car Story e ❑ None Effective Age(Yrs) 35 ® Dampness ❑Settlement Screens Yes/Avq ® Driveway #of Cars 2 Attic El None Heating FWA 14 HWBB JE1 Radiant Amenities Woodstove s # 0 Driveway Surface Concrete ❑ Drop Stair Stairs ❑ Other I Fuel Gas ® Fireplaces # 2 El Fence None ® Garage #of Cars 2 Floor ® Scuttle I Cooling Central Air Conditioning ® Patio/Deck 12x12 Porch None ❑ Carport #of Cars 0 ❑ Finished ❑ Heated JZ Individual Wall ❑ Other 10 Pool None ❑ Other None JZ Att. ❑ Dot. ❑ Built-in Appliances® Refrigerator ® Range/Oven ®Dishwasher ® Disposal ® Microwave ®Washer/Dryer ®Other describe Water Softener Finished area above grade contains: 5 Rooms 1 Bedrooms 1.0 Baths 1,224 Square Feet of Gross Living Area Above Grade . Additional features(special energy efficient items etc.. 2 Fireplaces,12x12 deck Describe the condition of the property(including needed repairs,deterioration,renovations,remodeling,etc.. CS;No u dates in the prior 15 ears•The home is in average to below average condition. There is evidence of deteriorated concrete block in the basement. There are traces of mold in the basement due to a hot tub that maintains a high moisture level conducive to mold growth. There are various areas of drywall damage and the entrance to the lower level family room is unfinished. The garage door has peeling paint and appears like it is deteriorating. Quality is considered average for this submarket. Are there any physical deficiencies or adverse conditions that affect the livability,soundness,or structural integrity of the property? ®Yes ❑ No If Yes,describe There is portions of cracked concrete block in the basement. The house does not aPDear to be failing structurally at the current time as the floors are not sagging and the walls are not showing signs of distress. Does the property generally conform to the neighborhood functional utility,style,condition,use,construction,etc.? ®Yes ❑ No If No,describe Freddie Mac Form 70 March 2005 UAD Version 9/2011 Page 1 of 6 Fannie Mae Form 1004 March 2005 Form 1004UAD—"WinTOTAL"appraisal software by a la mode,Inc.—1-800-ALAMODE Min File No.07081911 Page#4 12DBWP Uniform Residential Appraisal Report File# 0708191 There are 3 comparable properties currently offered for sale in the subject neighborhood ranging in price from$ 99,900 to$ 134,966 There are 25 comparable sales in the subject neighborhood within the past twehre months ranging in sale price from$ 55,00 to$ 154,900 FEATURE I SUBJECT COMPARABLE SALE#1 1 COMPARABLE SALE#2 COMPARABLE SALE#3 Address 6913 Oliver Ave N 7124 Oliver Ave N 1706 Woodbine Ln 6825 Zenith Ave N Brooklyn Center MN 55430 Brooklyn Center MN 55430 Brooklyn Center MN 55430 Brooklyn Center MN 55429 Proximity to Subject 1.74 miles W 0.91 miles NW 0.81 miles W Sale Price $" ".`: $ 135 000 . "' •" ;F :_ $ 112,000, ._ Y °" .,4$ 127,000 WK Sale Price/Gross Liv.Area $ s -ft-$ 130.81 s .ft. "" �' '' ` '$ 101.82 s .ft. �._" `: ",ie`$ 102.42 Data Sources MLS#4049069•DOM 60 MLS#4070947•DOM 75 MLS#4105332•DOM 107 Verification Sources Hennepin Countv Records Hennepin Count,Records Hennepin Count,Records VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION + $Adjustment DESCRIPTION + $Adjustment DESCRIPTION +- $Adjustment Sales or Financing ;`;� anti , ',Arml-th ArmLth Arml-th Concessions �` � s FHA 6701 6 701 FHA 5000 -5 000 FHA•4445 -4 445 Date of Sale/Time jd`++` s08/11 Unk s1O/11•Unk sO4/12•Unk Location N;Res; N•Res• N;Res• N;Res• Leasehold/Fee Simple Fee Simple Fee Simple Fee im le Fee Simple Site 20038 sf 9583 sf +5,227 16117 sf +1,960 10890 sf +4,574 View B•Woods; B•Prk• 0 N•Res• +3,360 N•Res• +3.800 Design(Style) 1 Story 1 Story 1 Story 1 Story Quality of Construction Q4 Q4 Q4 Q4 Actual Age 59 50 043 0 53 0 Condition C5 C3 -27,000 C4 -11,200 C4 -12,700 Above Grade Total Bdrms.I Baths Total Bdrms. Baths 0 Total !Bdrms. Baths 0 Total I Bdrms.I Baths 0 Room Count 5 1 1 1.0 6 3 1.0 -5000 6 3 1.0 -5,000 6 3 1.1 -7,500 Gross Living Area 1,224 s .ft. 1,032 s -ft. +7,680 1 100 sq.ft. +4,960 1,240 sq.ft. 0 Basement&Finished 1224sf526sfin 1032sf826sfin -3,000 1100sf130sfin +3,960 1240sf606sfin 0 Rooms Below Grade 1 rrObr1.Oba1 o 1 rr1 brO.ObaOo -2.500 1 rrObrO.ObaOo +5.000 1 rrObr0.1 bat o +2,500 Functional Utility Avg ANq Avg Avg Heating/Cooling GasHW/wa11AC GFA/CA -2,000 GFA/CA -2,000 GFA/CA -2,000 Energy Efficient Items None None None None Garage/Carport 2 Attached 2+Detached -2,000 2 Attached 2 Attached Porch/Patio/Deck Deck 12x12 Deck 15x11 0 None +1.500 Deck 0 • Fire laces 2 FP 1 FP +1,500 None +3,000 None +3,000 Other Amenities Shed 12x24 None +3,000 SmShed/S rink +1,000 SmShed +2,000 • Net Adjustment(Total) " ❑ + ® $ -30,794 ® + ❑ $ 1,540 ❑ + Z - $ -10,771 Adjusted Sale Price Net Adj. 22.8% Net Adj. 1.4% Net Adj. 8.5% of Com arables -Gross Adj. 48.6% $ 104,2061G ss Ad'. 42.8% $ 113 540 Gross Adj. 33.5% $ 116,229 1 ® did ❑did not research the sale or transfer history of the subject property and comparable sales.If not,explain My research ❑ did ®did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal. Data Sources MLS and Hennepin County Records My research X did ❑did not reveal any prior sales or transfers of the comparable sales for the year prior to the date of sale of the comparable sale. Data Sources MLS and Hennepin County Records Report the results of the research and analysis of the prior sale or transfer history of the subject property and com arable sales(report additional p or sales on page 3). ITEM SUBJECT COMPARABLE SALE#1 COMPARABLE SALE#2 COMPARABLE SALE#3 Date of Prior Sale/Transfer Price of Prior Sale/Transfer Data Sources Hennepin County Records Hennepin County Records Hennepin County Records Hennepin County Records Effective Date of Data Sources 04/26/2012 04/26/2012 04/26/2012 04/26/2012 Analysis of prior sale or transfer history of the subject property and comparable sales No prior sales were noted within the last 36 months for the subject. Comparable#4 had a prior sale that took place on 05/10/2011 for$67,100.None of the other com arables were sold during the last 12 months. Summary of Sales Comparison Approach The com arables represent the best sales available after a search of MLS data covering the past twelve months. Adjustments for differences in room count are applied at$2,500 per bedroom and$5,000 per full bath $2,500 per partial bath. Basement adjustments consider finished square footage and walkout lower levels. Adjustments for living space are made at 40 per s .ft. Adjustments of$10 per square foot are applied for finished lower level area. Com arables#1 and#4 have recent updates to kitchen and baths and are adjusted down 20%for condition. Com parables#2 and#3 are adjusted down 10%reflecting the subject's cracked concrete foundation unfinished entrance to lower level family room see photos)and presence of mold. Due to significant condition and site size adjustments it is necessary to exceed recommended guidelines regarding net gross and single line adjustments. Indicated Value by Sales Comparison A roach$ 110,000 Indicated Value by:Sales Comparison A proach$ 110,000 Cost Approach(if developed)$ Income Approach(if developed)$ The sales comparison approach is the most applicable as it best represents buyers and sellers in the marketplace. The cost approach is not • applicable as the subject property is 59 years old and suffers significant physical depreciation. The income approach is not applicable as units in the subject market are typically not used for income production This appraisal is made ® "as is", ❑ subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been completed, ❑subject to the following repairs or alterations on the basis of a hypothetical condition that the repairs or alterations have been completed, or ❑subject to the • following required inspection based on the extraordinary assumption that the condition or deficiency does not require alteration or repair: Based on a complete visual inspection of the interior and exterior areas of the subject property,defined scope of work,statement of assumptions and limiting conditions,and appraiser's certification,my(our)opinion of the market value,as defined,of fhe real property that is the subject of this report is $ 110,000 as of 04/26/2012 which is the date of inspection and the effective date of this appraisal. Freddie Mac Form 70 March 2005 UAD Version 9/2011 Page 2 of 6 Fannie Mae Form 1004 March 2005 Form 1004UAD-"WinTOTAL'appraisal software by a la!I mode,Inc.-1-800-ALAMODE M in File No.0708191 Pa a#5 12DBWP Uniform Residential Appraisal Report File#0708191 .°g .>. COSTAPPf;OACFI TO€yALUE(not, lfn:d h sFanmeMae °. '.,x N Provide adequate information for the lender/client to re licate the below cost figures and calculations. Support for the opinion of site value(summary of comparable land sales or other methods for estimating site value ESTIMATED ❑ REPRODUCTION OR ❑ REPLACEMENT COST NEW OPINION OF SITE VALUE---------------------------------------------------------------------- _$ Source of cost data DWELLING S .Ft.@$ ------------- _$ Quali rating from cost service Av Ft Eff ective date of cost data S . .@$ - _$ Comments on Cost Approach gross living area calculations,depreciation,etc. _ _$ Garage/Carport S .R.@$ _$ Total Estimate of Cost-New =$ ------------ Less Physical Functional External Depreciation =$ Depreciated Cost of Improvements .................................................... _$ "As-is"Value of Site Improvements ---------------------------------------------------- _$ Other Im rovements Estimated Remaining Economic Life HUD and VA onl 25 Years INDICATED VALUE BY COST APPROACH---------------------------------------------_$ } INCQMEA P OAC �O.Y�ILUE u re..� Fa r } y s W � .. (tt4 f, Estimated Monthly Market Rent$ X Gross Rent Multiplier =$ Indicated Value by Income Approach Summary of Income Approach including support for market rent and GRM R.FEOIECTtINFORJNATIONIFOR ' Is the developer/builder in control of the Homeowners'Association(HOA)? ❑Yes ❑ No Unit e s ❑ Detached ❑Attached Provide the following information for PUDs ONLY if the developer/builder is in control of the HOA and the subject property is an attached dwelling unit. Legal Name of Project Total number of phases Total number of units Total number of units sold Total number of units rented Total number of units for sale Data source(s) Was the project created by the conversion of existing buildings into a PUD? ❑Yes ❑ No If Yes,date of conversion. Does the project contain any multi-dwelling units? ❑Yes ❑ No Data Source Are the units,common elements,and recreation facilities complete? ❑Yes No If No,describe the status of completion. Are the common elements leased to or by the Homeowners'Association? ❑Yes ❑ No If Yes,describe the rental terms and options. Describe common elements and recreational facilities. Freddie Mac Form 70 March 2005 UAD Version 9/2011 Page 3 of 6 Fannie Mae Form 1004 March 2005 Form 1004UAD—°WinTOTAL"appraisal software by a la mode,inc.—1-800-ALAMODE Main File No. 7 8191 Pa a#6 12DBWP Uniform Residential Appraisal Report File#0708191 This report form is designed to report an appraisal of a one-unit property or a one-unit property with an accessory unit; including a unit in a planned unit development (PUD). This report form is not designed to report an appraisal of a manufactured home or a unit in a condominium or cooperative project. This appraisal report is subject to the following scope of work, intended use, intended user, definition of market value, statement of assumptions and limiting conditions, and certifications. Modifications, additions, or deletions to the intended use, intended user, definition of market value, or assumptions and limiting conditions are not permitted. The appraiser may expand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisal assignment. Modifications or deletions to the certifications are also not permitted. However, additional certifications that do not constitute material alterations to this appraisal report, such as those required by law or those related to the appraiser's continuing education or membership in an appraisal organization, are permitted. SCOPE OF WORK: The scope of work for this appraisal is defined by the complexity of this appraisal assignment and the reporting requirements of this appraisal report form, including the following definition of market value, statement of assumptions and limiting conditions, and certifications. The appraiser must, at a minimum: (1) perform a complete visual inspection of the interior and exterior areas of the subject property, (2) inspect the neighborhood, (3) inspect each of the comparable sales from at least the street, (4) research, verify, and analyze data from reliable public and/or private sources, and (5) report his or her analysis, opinions, and conclusions in this appraisal report. INTENDED USE: The intended use of this appraisal report is for the lender/client to evaluate the property that is the subject of this appraisal for a mortgage finance transaction. INTENDED USER: The intended user of this appraisal report is the lender/client. DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. 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 concessions* granted', by anyone associated with the sale. *Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales !transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgment. STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS: The appraiser's certification in this report is subject to the following assumptions and limiting conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it, except for information that he or she became aware of during the research involved in performing this appraisal. The appraiser assumes that the title is good and marketable and will not render any opinions about the title. 2. The appraiser has provided a sketch in this appraisal report to show the approximate dimensions of the improvements. The sketch is included only to assist the reader in visualizing the property and understanding the appraiser's determination of its size. 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in this appraisal report whether any portion of the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand, or as otherwise required by law. 5. The appraiser has noted in this appraisal report any adverse conditions (such as needed repairs, deterioration, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the research involved in performing the appraisal. Unless otherwise stated in this appraisal report, the appraiser has no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of the property (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) that would make the property less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, this appraisal report must not be considered as an environmental assessment of the property. 6. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that the completion, repairs, or alterations of the subject property will be performed in a professional manner. Freddie Mac Form 70 March 2005 UAD Version 9/2011 Page 4 of 6 Fannie Mae Form 1004 March 2005 Form 1004UAD—"WinTOTAL"appraisal software by a la('',mode,inc.—1-800-ALAMODE Main File No.07081911 Pa a#7 12DBWP Uniform Residential Appraisal Report File# 0708191 APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: 1. 1 have, at a minimum, developed and reported this appraisal in accordance with the scope of work requirements stated in this appraisal report. 2. 1 performed a complete visual inspection of the interior and exterior areas of the subject property. I reported the condition of the improvements in factual, specific terms. I identified and reported the physical deficiencies that could affect the livability, soundness, or structural integrity of the property. 3. 1 performed this appraisal in accordance with the requirements of the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal report was prepared. 4. 1 developed my opinion of the market value of the real property that is the subject of this report based on the sales comparison approach to value. I have adequate comparable market data to develop a reliable sales comparison approach for this appraisal assignment. I further certify that I considered the cost and income approaches to value but did not develop them, unless otherwise indicated in this report. 5. 1 researched, verified, analyzed, and reported on any current agreement for sale for the subject property, any offering for sale of the subject property in the twelve months prior to the effective date of this appraisal, and the prior sales of the subject property for a minimum of three years prior to the effective date of this appraisal, unless otherwise indicated in this report. 6. 1 researched, verified, analyzed, and reported on the prior sales of the comparable sales for a minimum of one year prior to the date of sale of the comparable sale, unless otherwise indicated in this report. 7. 1 selected and used comparable sales that are locationally, physically, and functionally the most similar to the subject property. 8. 1 have not used comparable sales that were the result of combining a land sale with the contract purchase price of a home that has been built or will be built on the land. 9. 1 have reported adjustments to the comparable sales that reflect the market's reaction to the differences between the subject property and the comparable sales. 10. 1 verified, from a disinterested source, all information in this report that was provided by parties who have a financial interest in the sale or financing of the subject property. 11 1 have knowledge and experience in appraising this type of property in this market area. 12. 1 am aware of, and have access to, the necessary and appropriate public and private data sources, such as multiple listing services, tax assessment records, public land records and other such data sources for the area in which the property is located. 13. I obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report from reliable sources that I believe to be true and correct. 14. 1 have taken into consideration the factors that have an impact on value with respect to the subject neighborhood, subject property, and the proximity of the subject property to adverse influences in the development of my opinion of market value. I have noted in this appraisal report any adverse conditions (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) observed during the inspection of the subject property or that I became aware of during the research involved in performing this appraisal. I have considered these adverse conditions in my analysis of the property value, and have reported on the effect of the conditions on the value and marketability of the subject property. 15. 1 have not knowingly withheld any significant information from this appraisal report and, to the best of my knowledge, all statements and information in this appraisal report are true and correct. 16. 1 stated in this appraisal report my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the assumptions and limiting conditions in this appraisal report. 17. 1 have no present or prospective interest in the property that is the subject of this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or opinion of market value in this appraisal report on the race, color, religion, sex, age, marital status, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property or on any other basis prohibited by law. 18. My employment and/or compensation for performing this appraisal or any future or anticipated appraisals was not conditioned on any agreement or understanding, written or otherwise, that I would report (or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of any party, or the attainment of a specific result or occurrence of a specific subsequent event (such as approval of a pending mortgage loan application). 19. 1 personally prepared all conclusions and opinions about the real estate that were set forth in this appraisal report. If I relied on significant real property appraisal assistance from any individual or individuals in the performance of this appraisal or the preparation of this appraisal report, I have named such individual(s) and disclosed the specific tasks performed in this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in this appraisal report; therefore, any change made to this appraisal is unauthorized and I will take no responsibility for it. 20. 1 identified the lender/client in this appraisal report who is the individual, organization, or agent for the organization that ordered and will receive this appraisal report. Freddie Mac Form 70 March 2005 UAD Version 9/2011 Page 5 of 6 Fannie Mae Form 1004 March 2005 Form 1004UAD—"WinTOTAL"appraisal software by a la mode,inc.—1-800-ALAMODE Main File No.0708 Pa a#8 12DBWP Uniform Residential Appraisal Report File#0708191 21. The lender/client may disclose or distribute this appraisal report to: the borrower; another lender at the request of the borrower; the mortgagee or its successors and assigns; mortgage insurers; government sponsored enterprises; other secondary market participants; data collection or reporting services; professional appraisal organizations; any department, agency, or instrumentality of the United States; and any state, the District of Columbia, or other jurisdictions; without having to obtain the appraiser's or supervisory appraiser's (if applicable) consent. Such consent must be obtained before this appraisal report may be disclosed or distributed to any other party (including, but not limited to, the public through advertising, public relations, news, sales, or other media). 22. 1 am aware that any disclosure or distribution of this appraisal report by me or the lender/client may be subject to certain laws and regulations. Further, I am also subject to the provisions of the Uniform Standards of Professional Appraisal Practice that pertain to disclosure or distribution by me. 23. The borrower, another lender at the request of the borrower, the mortgagee or its successors and assigns, mortgage insurers, government sponsored enterprises, and other secondary market participants may rely on this appraisal report as part of any mortgage finance transaction that involves any one or more of these parties. 24. If this appraisal report was transmitted as an "electronic record" containing my "electronic signature," as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature. 25. Any intentional or negligent misrepresentations) contained in this appraisal report may result in civil liability and/or criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Section 1001, et seq., or similar state laws. SUPERVISORY APPRAISER'S CERTIFICATION: The Supervisory Appraiser certifies and agrees that: 1. 1 directly supervised the appraiser for this appraisal assignment, have read the appraisal report, and agree with the appraiser's analysis, opinions, statements, conclusions, and the appraiser's certification. 2. 1 accept full responsibility for the contents of this appraisal report including, but not limited to, the appraiser's analysis, opinions, statements, conclusions, and the appraiser's certification. 3. The appraiser identified in this appraisal report is either a sub-contractor or an employee of the supervisory appraiser (or the appraisal firm), is qualified to perform this appraisal, and is acceptable to perform this appraisal under the applicable state law. 4. This appraisal report complies with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal report was prepared. 5. If this appraisal report was transmitted as an "electronic record" containing my "electronic signature," as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature. APPRAISER Brian Manthey SUPERVISORY APPRAISER (ONLY IF REQUIRED) Signature Signature Name Brian Manthey Name Company Name IRR-Residential Appraisal Partners Company Name Company Address 7111 West Broadway,Suite 201 Company Address Brooklyn Park,MN 55428 Telephone Number (763)503-9354 Telephone Number Email Address info 1019(a)irr-residential.com Email Address Date of Signature and Report 04/26/2012 Date of Signature Effective Date of Appraisal 04/26/2012 State Certification# State Certification# 4002714 or State License# or State License# State or Other(describe) State# Expiration Date of Certification or License State MN Expiration Date of Certification or License 08/31/2013 SUBJECT PROPERTY ADDRESS OF PROPERTY APPRAISED ❑ Did not inspect subject property 6913 Oliver Ave N ❑ Did inspect exterior of subject property from street Brooklyn Center,MN 55430 Date of Inspection APPRAISED VALUE OF SUBJECT PROPERTY$ 11o,000 ❑ Did inspect interior and exterior of subject property LENDER/CLIENT Date of Inspection Name No AMC Company Name Private COMPARABLE SALES Company Address 6913 Oliver Ave N Brooklyn Center MN 55430 Did not inspect exterior of comparable sales from stree t E] Did inspect exterior of comparable sales from street Email Address graham ar7mninter.net Date of Inspection Freddie Mac Form 70 March 2005 UAD Version 9/2011 Page 6 of 6 Fannie Mae Form 1004 March 2005 II Form 1004UAD—"WinTOTAL"appraisal software by a la',mode,inc.—1-800-ALAMODE Main File No.0708191 Pa a#9 12DBWP Uniform Residential Appraisal Report File#0708191 FEATURE SUBJECT COMPARABLE SALE#4 COMPARABLE SALE#5 COMPARABLE SALE#6 Address 6913 Oliver Ave N 7013 Drew Ave N Brooklyn Center MN 55430 Brooklyn Center MN 55429 Proximity to Subject 0.92 miles W Sale Price $ w $ 139 000 • < <° , ��a::= $ �� � � : $ Sale Price/Gross Liv.Area $ s .ft. $ 100.72 s .ft. " $ SO. "a $ s .ft. Data Sources "�4102138;DOM 35 Verification Sources f ?'Hennepin County Records VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION + $Adjustment DESCRIPTION + $Adjustment DESCRIPTION + $Adjustment Sales or financing Arm Lth Concessions , �.� FHA;4865 -4,86 Date of Sale/Time s01/12•Unk Location N;Res• N;Res; Leasehold/Fee Simple Fee Simple Fee Simple Site 20038 sf 10454 sf +4,792 View B•Woods; N•Res; +4100 Design Style 1 Story 1 Story Quality of Construction Q4 Q4 Actual Age 59 54 0 Condition C5 C3 -27,800 Above Grade Total Bdrms. Baths Total I Bdrms.I Baths 0 Total Bdrms. Baths Total Bdrms. Batl�s Room Count 5 1 1.0 --6-F-2 2.0 -7 500 Gross Living Area 1,224 S—ft— 1,380 S—ft— -6,240 s .ft. s .ft. Basement&Finished 1224sf526sfin 960sf490sfin 0 Rooms Below Grade 1 rrObr1.Oba10 1 rr1 brO.ObaOo -3,500 Functional Utility Avg Avg Heating/Cooling GasHW/wallAC GFA/CA -2,000 Energy Efficient items None None Garage/Carport 2 Attached 2 Detached 0 Porch/Patio/Deck Deck 12x12 Patio +2,000 Fire laces 2 FP 1 FP +1,500 Other Amenities Shed 12X24 None +3,000 Net Adjustment(Total) '' ;` ❑ + ® $ -36 513 ❑ + ❑ - $ ❑ + ❑ - $ Adjusted Sale Price f Net Adj. 26.3% Net Adj. % Net Adj. % of Comparables "` Gross Ad'. 48.4% $ 102 487 Gross Adj. %1$ 1 Gross Ad'. %1$ Report the results of the research and analysis of the prior sale or transfer history of the subject property and com arable sales report additional p or sales on page 3). ITEM SUBJECT COMPARABLE SALE#4 COMPARABLE SALE#5 COMPARABLE SALE#6 Date of Prior Sale/Transfer 05/10/2011 Price of Prior Sale/Transfer $67,100 Data Sources Hennepin County Records Hennepin County Records Effective Date of Data Sources 04/26/2012 04/26/2012 Analysis of prior sale or transfer history of the subject ro ert and comparable sales p y Analysis/Comments Freddie Mac Form 70 March 2005 UAD Version 9/2011 Fannie Mae Form 1004 March 2005 Form 1004UAD.(AC)—"WinTOTAL"appraisal software by a la mode,inc.—1-800-ALAMODE IMain File No.07 81 1 Pa e# 12DBWP Market Conditions Addendum to the'Appraisal Report File No. 0708191 The purpose of this addendum is to provide the lender/client with a clear and accurate understanding of the market trends and conditions prevalent in the subject neighborhood.This is a required addendum for all appraisal reports with an effective date on or after April 1,2009. Pro erty Address 6913 Oliver Ave N City Brooklyn Center State MN ZIP Code 55430 Borrower N/A Instructions:The appraiser must use the information required on this form as the basis for his/her conclusions,and must provide support for those conclusions,regarding housing trends and overall market conditions as reported in the Neighborhood section of the appraisal report form.The appraiser must fill in all the information to the extent it is available and reliable and must provide analysis as indicated below.If any required data is unavailable or is considered unreliable,the appraiser must provide an explanation.It is recognized that not all data sources will be able to provide data for the shaded areas below;if it is available,however,the appraiser must include the data in the analysis.If data sources provide the required information as an average instead of the median,the appraiser should report the available figure and identify it as an average.Sales and listings must be properties that compete with the subject property,determined by applying the criteria that would be used by a prospective buyer of the subject property.The appraiser must explain any anomalies in the data,such as seasonal markets,new construction,foreclosures,etc. Inveitto Ana sts ,.? Prior 7-12 Months Prior 4-6 Months Current-3 Months Overall Trend Total#of Comparable Sales Settled 16 8 2 Increasing Stable IN Declining Absorption Rate(Total Sales/Manths 2.67 2.67 0.67 ❑ Increasing ❑ Stable ® Declining Total#of Comparable Active Listings 3 4 _': 3 EM Stable. ,`. # Ant:reasing Months of Housing Supply(Total Listings/Ab.Rate 11 ", 1.5 4.5 ❑stable. �'.�• �fncr�easin` `Median'Sale,&•Liatihrfce;.QOM;Sa-e/List%". Prior 7-12 Months Prior 4-6 Months Current-3 Months Overall Trend Median Comparable Sale Price 128,819 117,500 129,750 ❑ Increasing ® Stable ❑ Declining Median Comparable Sales Days on Market 24 36 70 ❑ Declining ❑ Stable IN Increasing Median Comparable List Price 129,900` 1:291'900) "-' ` 129 900 ❑,Increasng.@Stabfe�: _.Q:`becifnrrrg`` Median Comparable Listings Days on Market ," 3�l' ' �!36 40 �, becl(nmg.�. � Stabler` ®�Elncrea's'ing Median Sale Price as%of List Price 98.86 98.36 98.88 ❑ Increasing ® Stable n Declining Seller-(developer,builder,etc.paid financial assistance prevalent? ®Yes ❑ No ❑ Declining ® Stable ❑ increasing Explain in detail the seller concessions trends for the past 12 months(e.g.,seller contributions increased from 3%to 5%,increasing use of buydowns,closing costs,condo fees,options,etc.. Seller concessions are typically between 1%-3%of sales price and are considered stable. Are foreclosure sales RED sales a factor in the market? ®Yes No If yes,explain(including the trends in listings and sales of foreclosed properties). Over the last year 40.2%of Twin Cities region homes for sale were lender mediated. In March of 2012 Twin Cities bank mediated homes for sale held 37.7%of sales. In the Brooklyn Center marketplace 63.8%of homes for sale were lender mediated over the last year. Cite data sources for above information. Minnesota Area Association of Realtors and Northstar MLS Summarize the above information as support for your conclusions in the Neighborhood section of the appraisal report form.If you used any additional information,such as an analysis of pending sales and/or expired and withdrawn listings,to formulate your conclusions,provide both an explanation and support for your conclusions. The data presented above indicates that median comparable sale price is increasing in recent months. Median sales price as a percentage of is declining. According to MAAR the median sales price for single family homes has decreased.9%over the last 12 months for the Brooklyn Center area. In conclusion values in the immediate submarket are stable. If the sub ct is a unit in a condominium or cooperative project,complete the following: Project Name: Subject Project Data Prior 7-12 Months Prior 4-6 Months Current-3 Months Overall Trend Total#of Comparable Sales Settled Increasing 10 Stable ❑ Declining Absorption Rate otal Sales/Months ❑ Increasing ❑Stable ❑ Declining Total#of Active Comparable Listings t. s �Declrnm ., _. .Sable_. ..increasin P 9 9 ❑ 9 Months of Unit Supply otal Listings/Ab.Rate "� `r ra::! ❑ 0ecl»ngfStable. '4lncreasing` Are foreclosure sales(RED sales)a factor in the project? ❑Yes El No If yes,indicate the number of RED listings and explain the trends in listings and sales of foreclosed properties. . Summarize the above trends and address the impact on the subject unit and project. Signature Signature Appraiser Name Brian Manthey Supervisory Appraiser Name Company Name IRR-Residential Appraisal Partners Company Name Company Address 7111 West Broadway,Suite 201,Brooklvn Park,MN 55428 Company Address State License/Certification# 4002714 State MN I State License/Certification# State Email Address info 1019 @irr-residential.com Email Address Freddie Mac Form 71 March 2009 Page 1 of 1 Fannie Mae Form 1004MC March 2009 Form 1004MC2—"WinTOTAL"appraisal software by a la mode,Inc.—1-800-ALAMODE Main File No.07081 1 Pa a#11 12DBWP File No. 0708191 UNIFORM APPRAISAL DATASET (UAD) DEFINITIONS ADDENDUM (Source:Fannie Mae UAD Appendix D:UAD Field-Specific Standardization Requirements) Condition Ratings and Definitions C1 The improvements have been very recently constructed and have not previously been occupied.The entire structure and all components are new and the dwelling features no physical depreciation.* *Note:Newly constructed improvements that feature recycled materials and/or components can be considered new dwellings provided that the dwelling is placed on a 100%new foundation and the recycled materials and the recycled components have been rehabilitated/re-manufactured into like-new condition.Recently constructed improvements that have not been previously occupied are not considered"new"if they have any significant physical depreciation(i.e.,newly constructed dwellings that have been vacant for an extended period of time without adequate maintenance or upkeep). C2 The improvements feature no deferred maintenance,little or no physical depreciation,and require no repairs.Virtually all building components are new or have been recently repaired,refinished,or rehabilitated.All outdated components and finishes have been updated and/or replaced with components that meet current standards.Dwellings in this category either are almost new or have been recently completely renovated and Ili are similar in condition to new construction. C3 The improvements are well maintained and feature limited physical depreciation due to normal wear and tear.Some components,but not every major building component,may be updated or recently rehabilitated.The structure has been well maintained. C4 The improvements feature some minor deferred maintenance and physical deterioration due to normal wear and tear.The dwelling has been adequately maintained and requires only minimal repairs to building components/mechanical systems and cosmetic repairs.All major building components have been adequately maintained and are functionally adequate. C5 The improvements feature obvious deferred maintenance and are in need of some significant repairs.Some building components need repairs, rehabilitation,or updating.The functional utility and overall livability is somewhat diminished due to condition,but the dwelling remains useable and functional as a residence. C6 The improvements have substantial damage or deferred maintenance with deficiencies or defects that are severe enough to affect the safety, soundness,or structural integrity of the improvements.The improvements are in need of substantial repairs and rehabilitation,including many or most major components. Quality Ratings and Definitions 011 Dwellings with this quality rating are usually unique structures that are individually designed by an architect for a specified user.Such residences typically are constructed from detailed architectural plans and specifications and feature an exceptionally high level of workmanship and exceptionally high-grade materials throughout the interior and exterior of the structure.The design features exceptionally high-quality exterior refinements and ornamentation,and exceptionally high-quality interior refinements.The workmanship,materials,and finishes throughout the dwelling are of exceptionally high quality. Q2 Dwellings with this quality rating are often custom designed for construction on an individual property owner's site.However,dwellings in this quality grade are also found in high-quality tract developments featuring residence constructed from individual plans or from highly modified or upgraded plans.The design features detailed,high quality exterior ornamentation,high-quality interior refinements,and detail.The workmanship,materials,and finishes throughout the dwelling are generally of high or very high quality. Q3 Dwellings with this quality rating are residences of higher quality built from individual or readily available designer plans in above-standard residential tract developments or on an individual property owner's site.The design includes significant exterior ornamentation and interiors that are well finished.The workmanship exceeds acceptable standards and many materials and finishes throughout the dwelling have been upgraded from"stock"standards. Q4 Dwellings with this quality rating meet or exceed the requirements of applicable building codes.Standard or modified standard building plans are utilized and the design includes adequate fenestration and some exterior ornamentation and interior refinements.Materials,workmanship, finish,and equipment are of stock or builder grade and may feature some upgrades. UAD Version 9/2011 Form UADDEFINE—"WinTOTAL"appraisal software by a la mode,inc.—1-800-ALAMODE Wain File N .070811 Pa a#12 UNIFORM APPRAISAL DATASET (UAD) DEFINITIONS ADDENDUM (Source.Fannie Mae UAD Appendix D.UAD Field-Specific Standardization Requirements) Quality Ratings and Definitions (continued) Q5 Dwellings with this quality rating feature economy of construction and basic functionality as main considerations.Such dwellings feature a plain design using readily available or basic floor plans featuring minimal fenestration and basic finishes with minimal exterior ornamentation and limited interior detail.These dwellings meet minimum building codes and are constructed with inexpensive,stock materials with limited refinements and upgrades. Q6 Dwellings with this quality rating are of basic quality and lower cost;some may not be suitable for year-round occupancy.Such dwellings are often built with simple plans or without plans,often utilizing the lowest quality building materials.Such dwellings are often built or expanded by persons who are professionally unskilled or possess only minimal construction skills.Electrical,plumbing,and other mechanical systems and equipment may be minimal or non-existent.Older dwellings may feature one or more substandard or non-conforming additions to the original structure Definitions of Not Updated, Updated, and Remodeled Not Updated Little or no updating or modernization.This description includes,but is not limited to,new homes. Residential properties of fifteen years of age or less often reflect an original condition with no updating,if no major components have been replaced or updated.Those over fifteen years of age are also considered not updated if the appliances,fixtures,and finishes are predominantly dated.An area that is'Not Updated'may still be well maintained and fully functional,and this rating does not necessarily imply deferred maintenance or physical/functional deterioration. Updated The area of the home has been modified to meet current market expectations.These modifications are limited in terms of both scope and cost. An updated area of the home should have an improved look and feel,or functional utility.Changes that constitute updates include refurbishment and/or replacing components to meet existing market expectations.Updates do not include significant alterations to the existing structure. Remodeled Significant finish and/or structural changes have been made that increase utility and appeal through complete replacement and/or expansion. A remodeled area reflects fundamental changes that include multiple alterations.These alterations may include some or all of the following:replacement of a major component(cabinet(s),bathtub,or bathroom tile),relocation of plumbing/gas fixtures/appliances,significant structural alterations(relocating walls,and/or the addition of) square footage).This would include a complete gutting and rebuild. Explanation of Bathroom Count Three-quarter baths are counted as a full bath in all cases. Quarter baths(baths that feature only a toilet)are not included in the bathroom count. The number of full and half baths is reported by separating the two values using a period,where the full bath count is represented to the left of the period and the half bath count is represented to the right of the period. Example: 3.2 indicates three full baths and two half baths. UAD Version 9/2011'. Form UADDEFINE—"WWOTAL"appraisal software by a la mode,inc.—1-800-ALAMODE i Main File No.0708191 Pa a#13 UNIFORM APPRAISAL DATASET (UAD) DEFINITIONS ADDENDUM (Source:Fannie Mae UAD Appen&D:UAD Field-Specific Standardization Requirements) Abbreviations Used in Data Standardization Text �Abtirev&'Fd7 i ��� " '� �� s.��iFuIl Name " ''�x �� � � ` � Fields Where This Atibreviation Ma"l� ear- ?` ac Acres Area,Site AdjPrk Adjacent to Park Location AdjPwr Adjacent to Power Lines Location A Adverse Location&View ArmLth Arms Length Sale Sale or Financing Concessions ba Bathrooms Basement&Finished Rooms Below Grade br Bedroom Basement&Finished Rooms Below Grade B Beneficial Location&View Cash Cash Sale or Financing Concessions CtySky City View Skyline View View CtyStr City Street View View Comm Commercial Influence Location c Contracted Date Date of Sale/Time Conv Conventional Sale or Financing Concessions CrtOrd Court Ordered Sale Sale or Financing Concessions DOM Days On Market Data Sources e Expiration Date Date of Sale/Time Estate Estate Sale Sale or Financing Concessions FHA Federal Housing Authority Sale or Financing Concessions GlfCse Golf Course Location Glfvw Golf Course View View Ind Industrial Location&View in Interior Only Stairs Basement&Finished Rooms Below Grade LndfI Landfill Location LtdSght Limited Sight View Listing -Listing Sale or Financing Concessions Mtn Mountain View View N Neutral Location&View NonArm Non-Arms Length Sale Sale or Financing Concessions Bs Rd Busy Road Location o Other Basement&Finished Rooms Below Grade Prk Park View View Pstrl Pastoral View View PwrLn Power Lines View PubTrn Public Transportation Location rr Recreational Rec Room Basement&Finished Rooms Below Grade Relo Relocation Sale Sale or Financing Concessions REO REO Sale Sale or Financing Concessions Res Residential Location&View RH USDA-Rural Housing Sale or Financing Concessions s Settlement Date Date of Sale/Time Short Short Sale Sale or Financing Concessions sf Square Feet Area,Site,Basement sqm Square Meters Area,Site Unk Unknown Date of Sale/Time VA Veterans Administration Sale or Financing Concessions w Withdrawn Date Date of Sale/Time wo Walk Out Basement Basement&Finished Rooms Below Grade wu Walk Up Basement Basement&Finished Rooms Below Grade WtrFr Water Frontage Location Wtr Water View View Woods Woods View View Other Appraiser-Defined Abbreviations Abtireviatian °F �F-,Name. ; „rt �..,,_a :, ", ,. fi., Fields rUhere h� Atibreviatio60 ear" UAD Version 9/2011 Form UADDEFINE—"WInTOTAL"appraisal software by a la mode,inc.—1-800-ALAMODE Main File No.0708191 a #14 Supplemental Addendum File No.0708191 Borrower N/A Property Address 6913 Oliver Ave N City Brooklyn Center County Hennepin State MN Zip Code 55430 Lender Private This property was appraised by Brian Manthey,License Number 4002714,Certified General Real Property Appraiser.A Certified General Real Property Appraiser may appraise any real estate regardless of value or use. A person in this category can perform appraisals for federally related transactions. Wayne Pedersen, License Number 40281947,Trainee Appraiser,assisted in the research and development of this report. He assisted in measuring the exterior of the property;created the sketch using the appraisal software program; researched statistical data to complete the 1004MC form; inspected the property along with the appraiser,obtained zoning information and assembled the report on behalf of the signing appraiser. A Trainee Real Property Appraiser may appraise residential or agricultural property when a net income capitalization analysis is not required by the uniform standards of professional appraisal practice. APPRAISAL DEVELOPMENT AND REPORTING PROCESS At the request of the lender, I conducted a REAL PROPERTY APPRAISAL intended to comply with Standard 1 of the Uniform Standards of Professional Appraisal Practice(USPAP). The report itself is intended to meet the requirements of a SUMMARY APPRAISAL REPORT as outlined in Standards Rule 2-2(b)of USPAP. This appraisal still meets all prior guidelines normally required for a FNMA/FHLMC appraisal The report presents summary discussion of the data,reasoning and analysis that were used in the appraisal process to develop the appraiser's opinion of value.Supporting documentation that is not provided with the report concerning the data, reasoning, and analysis is retained in the appraiser's file. The depth of the discussion contained in this report is specific to the needs of the client and for the intended use stated in the report. The appraiser is not responsible for unauthorized use of this report. VERIFICATION OF SALES Minnesota requires payment of a Deed Tax at the time of transfer of any real property. In order to enforce payment,and to provide sales data to assessors,a document called a Certificate of Real Estate Value(CRV)must accompany each Deed that is presented to the County Recorder for recording.The CRV has information regarding mortgage amount,terms,points paid by buyer and seller(if any), purchase agreement date and closing date.The'Northstar MLS collects that data and provides it to appraisers and other real estate professionals.This office subscribes to that service,and the sales used in this report were verified by that source. In addition,the financing terms were analyzed to develop any financing adjustment that may appear in this report. COMMENTS ON DIGITAL PHOTOS AND SIGNATURES: 1.The photos included in this appraisal are digital/electronic images,they have not been enlarged,enhanced or altered in anyway. 2. If electronic/digital signatures are used, it has been ruled acceptable appraisal practice by USPAP. 3.The appraiser/appraisers certifies/certify that this appraisal includes an electronic/digital signature that is maintained and controlled by the appraiser through Appraisal Partners,Inc. The appraiser/appraisers has given authorization to apply the digital signature to this report. 4.Once the appraisal is digitally signed it cannot be altered in any way. CONFIDENTIALITY AND SECURITY POLICY-In compliance with the Gramm-Leach-Bliley Act. We consider privacy to be fundamental to our relationship with clients.We are committed to maintaining the confidentiality, integrity and security of clients'personal information. Internal policies have been developed to protect this confidentiality,while allowing client needs to be served. We restrict access to personal information to authorized individuals who need to know this information to provide service and products for you. We maintain physical,electronic,and procedural safeguards that comply with federal standards to protect your nonpublic personal information. We do not disclose this information about you or any former consumers or customers to anyone,except as permitted by this information with companies that perform marketing services for us,or other financial institutions that have joint marketing agreements with us. When we share nonpublic information referred to above,the information is made available for limited purposes and under controlled circumstances.We require third parties to comply with our standards for security and confidentiality.We do not permit use of consumer/customer information for any other purpose nor do we permit third parties to rent,sell,trade or otherwise release or disclose information. I have performed no services,as an appraiser or in any other capacity,regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. Form TADD—"WinTOTAL°appraisal software by a la mode,inc.—1-800-ALAMODE I Main File No.0708191 Pa a#15 Supplemental Addendum File No.0708191 Borrower N/A Property Address 6913 Oliver Ave N city Brooklyn Center Courity Hennepin State MN Zip Code 55430 Lender Private EXPOSURE TIME Two related but different concepts are Exposure and Marketing Time. In appraisal terminology, Exposure Time refers to the historical time frame required to sell a property and Marketing Time is the forecasted period to sell property just placed on the market. Differences in the two concepts appear when there is a perceived changed in the market. USPAP specifically addresses the differences as follows: =71 k The estimated angr,,of urns the property r1wost being This is a reacspechv opinion oared upon an analysis Exposure Time appraised would have been offered on the market pnbr M of past events assuring a conpef m and open ;stamment 6) the nypomerlcas consfanmatlon of a sale at market value on martial.This is'backward loosing-and ends on via the effective dote of the appraisal." effect w vane date An oplo bn of the amorint of We.K 1"W 8.0 to Se/a roar While exposure time precedes trio affective date of Marketing Time or personal property Merest a!the conekmed market vakre vaus,marketing time Is subsequent.This Is"award (Advisory Opinion T) aping toe pedad F,nmedtately after Me efec-hre dale ofthe looking'and starts on the effective value date.This is a appratsac° future forecast. An estimated Exposure Time for the subject is 1 to 3 months. Expanded Scope of Work Statement At the request of the client,this appraisal report has been prepared in compliance with the Uniform Appraisal Dataset(UAD) from Fannie Mae and Freddie Mac. The UAD requires the appraiser to use standardized responses that include specific formats,definitions,abbreviations,and acronyms. The appraiser attempted to obtain an adequate amount of information in the normal course of business regarding the subject and comparable properties. Some of the standardized responses required by the UAD,especially those in which the appraiser has NOT had the opportunity to verify personally or measure, could mistakenly imply greater precision and reliability in the data than is factually correct or typical in the normal course of business. Examples include condition and quality ratings as well as comparable sales and listing data. The appraiser makes no representations,guarantees or warranties,express or implied, regarding building materials,their fitness,quality,condition or remaining economic life. Not every element of the subject property was viewable. The appraiser did not move any personal property,due to liability concerns for potential damage to the property,to disclose or reveal any unapparent or hidden defects to the structure, nor did the appraiser dismantle or probe the structure to observe enclosed,encased,or otherwise concealed areas. Comparable data was generally obtained from third-party sources including but not limited to the local MLS,County Assessor,Township Assessor,or online resources and additional public data sources. Consequently,this information should be considered an"estimate"unless otherwise noted by the appraiser. Form TADD—VinTOTAL"appraisal software by a la mode,inc.—1-800-ALAMODE Main File No.07081 1 P a#16 Subject Photo Page Borrower N/A Property Address 6913 Oliver Ave N City Brooklyn Center County Hennepin State MN Zip Code 55430 Lender Private Subject Front 6913 Oliver Ave N Sales Price Gross Living Area 1,224 Total Rooms 5 Total Bedrooms 1 Total Bathrooms 1.0 Location N;Res; View B;Woods; Site 20038 sf Quality Q4 Age 59 i Subject Rear A t Subject Street Form PICPD(.SR—"WinTOTAL"appraisal software by a la mode,inc.—1-800-ALAMODE Main File No.0708191 Pa a#17 Photograph Addendum Borrower N/A Property Address 6913 Oliver Ave N City Brooklyn Center County Hennepin State MN Zip Code 55430 Lender Private r r �w `M1q Y 5 • t ]p� Y Wooded Backyard View Shed n Y a e II , N t. 3y Side Side qtr �• ���, �k> � �� � ,„� �t��yx' t Garage Door Peeling Paint Garage Form PICSIX2—"WinTOTAL"appraisal software by a la mode,inc.—1-800-ALAMODE Wain File No. 7 191 P #18 Photograph Addendum Borrower N/A Property Address 6913 Oliver Ave N City Brooklyn Center COUntY Hennepin State MN Zip Code 55430 Lender Private Tm Living Room Family Room pn- kr 1 � Kitchen Main Level Bath gg Y,r s 33r � rA Bedroom Main Level Den Drywall damage around windows Form PICSIX2—"WinTOTAL°appraisal software by a la mode,inc.—1-800-ALAMODE Main File No.0708191 a e#19 Photograph Addendum Borrower N/A Property Address 6913 Oliver Ave N City Brooklyn Center County Hennepin State MN Zip Code 55430 Lender Private G.,a S Laundry/Storage Lower Level Office , u a fie^ I Lower Level Den Lower Level Storage z � z a r _ £ f Iii f v 3 • .y Lower Level Hot Tub Lower Level Family Room(Unfinished) Form PICSIX2—"WinTOTAL"appraisal software by a la mode,inc.—1-800-ALAMODE Main File No.07081 1 Pa e# Photograph Addendum Borrower N/A Property Address 6913 Oliver Ave N city Brooklyn Center COUntY Hennepin State MN Zip Code 55430 Lender Private Lower Level Bath Lower Level Ceiling Damage F : b Lower Level Heating Lower Level Mold in closet (Missing radiator covers) ``iz r" x .t J I� 4 aL Lower Level Concrete Block Damage Lower Level Electrical Form PICSIX2—"WinTOTAL"appraisal software by a la mode,inc.—1-800-ALAMODE Rain File No.0708191 Pa a#21 Photograph Addendum Borrower N/A Property Address 6913 Oliver Ave N City Brooklyn Center County Hennepin State MN Zip Code 55430 !i Lender Private x w 4. Y i L eeS IIII�� Lower Level concrete block Lower Level Concrete Block (Unfinished) (Unfinished) y( w Mechanicals Form PICSIX2—"WinTOTAL"appraisal software by a la mode,inc.—1-800-ALAMODE Main File No.07081911 Paae#22 Building Sketch Borrower N/A Property Address 6913 Oliver Ave N C ity Brooklyn Center County Hennepin State MN Zip Code 55430 Lender Private r---------I i Shed i i 12' r---------1 12 Deck 12' 22' i 26' 12' Kitchen Family 12' 26' Garage 36' Main Level Bath Den 24' 22' Living Bedroom 38' TOTAL sue'by°In mde,im. Area Calculations Surnnury First Fbor 1224 Sq ft 36 x 26= 936 12 x 24= 288 Total Living Area(Rounded): 1224 Sq ft _ 2 Car Attached 572 Sq ft 26 x 22= 572 Wood Deck 144 Sq it 12 x 12= 144 Form MENU—"WinTOTAL"appraisal software by a(a mode,inc.—1-800-ALAMODE i Main File No.0708191 Pa a#2 Building Sketch Borrower N/A Property Address 6913 Oliver Ave N city Brooklyn Center County Hennepin State MN Zip Code 55430 Lender Private 26' Unfinished Family 112' Hot Tub 12' 36' Mechanicals Bath Laundry Basement 24' Den Storage Mj 38' Toro Sketch by a r mode,im. Area Calculations Summary IM I ;Non InrmgArea - � ....'�w WNI eti_ ? r� ' First Floor 1224 Sq ft 36 x 26= 936 12 x 24= 288 Form SKT.BldSId—"WinTOTAL"appraisal software by a la mode,inc.—1-800-ALAMODE Min File No.07081911 Pace#24 Comparable Photo 'Page Borrower N/A Property Address 6913 Oliver Ave N city Brooklyn Center County Hennepin State MN Zip Code 55430 Lender Private °z Comparable 1 x : 7124 Oliver Ave N Prot to Subject 1.74 miles W ' Sale Price 135,000 Gross Living Area 1,032 Total Rooms 6 Total Bedrooms 3 Total Bathrooms 1.0 Location N;Res; View B;Prk; Site 9583 sf Quality Q4 - Age 50 Comparable 2 1706 Woodbine Ln Prox.to Subject 0.91 miles NW Sale Price 112,000 Gross Living Area 1,100 Total Rooms 6 Total Bedrooms 3 Total Bathrooms 1.0 Location N;Res; View N;Res; Site 16117 sf Quality Q4 Age 43 a } Comparable 3 6825 Zenith Ave N Prox.to Subject 0.81 miles W Sale Price 127,000 ti Gross Living Area 1,240 Total Rooms 6 Total Bedrooms 3 Total Bathrooms 1.1 Location N;Res; View N;Res; Site 10890 sf Quality Q4 Age 53 Form PICPD(.CR—°WinTOTAL"appraisal software by a la mode,inc.—1-800-ALWODE Main File No.0708191 Pa a#25 Comparable Photo Page Borrower NIA Property Address 6913 Oliver Ave N city Brooklyn Center County Hennepin State MN Zio Code 55430 Lender Private Comparable 4 7013 Drew Ave N Prox.to Subject 0.92 miles W Sales Price 139,000 Gross Living Area 1,380 Total Rooms 6 Total Bedrooms 2 $; + i Total Bathrooms 2.0 – 1 Location N;Res; View N;Res; Site 10454 sf Quality Q4 Age 54 Comparable 5 Prox.to Subject Sales Price Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location View Site Quality Age Comparable 6 Prox to Subject Sales Price Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location View Site Quality Age form PICPD(.CR—"WinTOTAL"appraisal software by a la mode,inc.—1-800-ALAMODE Min File No.07 191 Pa a#2 Location Map Borrower N/A Property Address 6913 Oliver Ave N city Brooklyn Center County Hennepin State MN Zip Code 55430 Lender Private r" z Park Island a la mode in t�raravaarcaewarcreeroaupr F,, �. �r � �.� 4.` in eh �q , +Q I 45th I)I Cottonwood O Et5'uerwo Centrtil Park Park z „ Woods �robklarrd,. 83rd4keN' gyro Pa`f�f .,�. Sunny F C Rearson P .,..,:� 252 Acres Park ¢ r Sunkist o' rk N Park 19 3625 Viole I. 14 lWthAve „ I r l vd .I Z Ave N iptiale Park r, r ood Dr N I g .. 73rd Ave N Subject 6913 Oliver Ave N m' M take 3 Park P. n s; Willow z Lane ; Park - . —"_`'OO i� -69,h Ave_N-, — 6 -_ h �► � 0 Z, w b 52 2 , Orchard Flrehou Park Park'' 65th Ave N _6SthA- ve-N- - 111 L a eu Comparable -- =-63rd-Ave--N::: -- p Mi a Pa 1.74 miles W rk z 1521 Su �h, 1J Pa f z o �+ 60th Ave N` Grandview I ParC �, Mae Park 100 Crystal - �� Airport \ z vArr Noctffptxt IiIII IftookdaleCenter d Z {` Park a a �+ take z i+ z < <� -N�=- 10 a l awns 0 rk kapark CoUtS 57 i I � It Happy..," �. a N51st+ftve i Hallow s1. a !,' O�,rrs z Park ;t, c cRa 1- _ S. HINGLt tt 1l Z �-_4 'ti+r,. a J"_+l l?3:ra•.�it!'ra�y�a+�7192�3F�11'3� Form MARLOC—'WinTOTAL°appraisal software by a la mode,Inc.—1-800-ALAMODE Main File N . 708191 Pa a#27 Plat Map Borrower N/A Property Address 6913 Oliver Ave N city Brooklyn Center County Hennepin State MN Zip Code 55430 Lender Private / as: ( l I / M / , (2) / I , 4 (5) s(4) i � f 1 0 t� "" ...... ..........ap......... ...... 69TH AVE N 13� .. x@5.3, 1"• R` '�r•gyp - 1 28 '!L I Form MAP.PLAT—"WinTOTAL"appraisal software by a la mode,inc.—1-800-ALAMODE Main File o.07081 #28 Aerial Map Borrower N/A Property Address 6913 Oliver Ave N city Brooklyn Center County Hennepin State MN Zip Code 55430 Lender Private a la mode inc: fl+e kadw in sm e"e waoo"Y 701b'AYe:M , 69th N Ave F. F � F i N ik lY ' s 5� 1�x n 4 4 r f A �,..: n91e Cre a' Shill e Shingle Creek Pkwy kwy �— � ',Shincytc Creek Pkwy in to Creek'PktvY a. Sh,9r. WINru �9 # 1L � Riv e _ Ar ls t e "wF A�w y c, Form MAP.LOC—"WinTOTAL"appraisal software by a la mode,inc.—1-800-ALAMODE Main File No.07081 Pa e# 9 Appraiser's License STATE OF MINNESOTA. BRIAN L MANTHEY 1401 SKILES LANE ARDEN HILLS, MN 55112 Department Of Commerce The Undersigned COMMISSIONER OF COMMERCE for the State of Minnesota hereby certifies that BRIAN L MANTHEY 1401 SKILES LANE ARDEN HILLS, MN 55112 has compiled with the laws of the State of Minnesota and is hereby licensed to transact the business of Resident Appraiser:Certified General License Number:4002714 unless this authority is suspended,revoked,or otherwise legally terminated.This license shag be in effect trail August 31,2013. IN TESTIMONY WHEREOF,I have hereunto set my hand this August 12,2011. *0 *�Ot COMMISSIONER OF COMMERCE Continuing Education: Minnesota Department of Commerce CE Requirement Tine CE Required Hours Licensing Division 85 7th Place East,Suite 500 Total-Appraiser 30.00 St.Paul,MN 55101-3165 USPAP 7.00 Telephone:(651)2966319 Email:licensing.commerceastate.mn.us WebslW commeme.state.mn.us Notes: • Continuing Education:15 hours is required In the first renewal period,which includes a 7 hour USPAP course.30 hours is required For each subsequent renewal period,which inductee 8 7 how USPAP course. • AmMusars:You must hold a Homed Residential,Certified Residential,or Certified General quallfication in order to rrf,wf aPaP atate.mn.ed raty-W8tGd transactions.Tndn*06 do not qualify.For further details,please visit our wetsite Form SCNLGL—°WinTOTAL"appraisal software by a la mode,inc.—1-800-ALAMODE Main File No.0708191 Pa a#30 E & 0 Insurance LEXINGTON INSURANCE COMPANY WILMINGTON,DELAWARE Admioiarative Offices-100 Sri nna Strad,BasYon,'Matsechuselts02110 Certificate Number. J016087500 This Certificate forms a part of Master Policy Number: 016084574 Renewal of Master Policy Number: 018714816 YOUR RISK PURCHASING GROUP MASTER POLICY IS A CLAIMS MADE POLICY. READ THE ATTACHED MASTER POLICY CAREFULLY THE AMERICAN ACADEMY OF STATE CERTIFIED APPRAISERS CERTIFICATE DECLARATIONS 1. Name and Address of Certificate Holder: IRR•ResidentW,Inc. 7111 West Broadway,Suite 201 Brooklyn Park MN 55428 2. Certificate Period: Effective Date: 05!10111 to Expiration Date: 05!10112 12:01 am.Loral Time at the Address of the Insured. 2a. Retroactive Date: 0511 on 1 12:01 am.Local Time at the Address d the Insured. 3. Limit of Liability: $ 1,000,000 each claim $ 1,000,000 aggregate[knit 4. Deductible: $ 2,500 each claim 5. Professional Covered Services insured by this policy are: REAL ESTATE APPRAISAL SERVICES & Advance CerWicate Holder Premium: >X 1,518 7. Minimum Earned Premium: 25'x.or Z 380 Forms and Endorsements: PRG 3150(10/05)Real Estate Appraisers Professional Liability Declarations,PRG 3149(7109)Real Estate Appraisers Professional Usbility Coverage Form,81227(11/02)Terrorism Exclusion,PRG 3344(7/09)Property Damage To Lockbox Coverage Extension,PRG 3151 (7/09)Disciplinary Proceedings Extension. Agency Name and Address: INTERCORP,INC. 1438-F West Main Street Ephrata,PA 17522-1345 IT IS HEREBY UNDERSTOOD AND AGREED THAT THE CERTIFICATE HOLDER AGREES TO ALL TERMS AND CONDITIONS AS SET FORTH IN THE ATTACHED MASTER POLICY. TFSS POLICY IS ISSUED BY YOUR RISK PURCHASING GROUP. YOUR RISK PURCHASING GROUP MAY NOT BE SUBJECT TO ALL OF THE INSURANCE LAWS AND REGULATIONS OF YOUR STATE. STATE INSURANCE INSOLVENCY GUARANTY FUNDS ARE NOT AVAILABLE FOR YOUR RISK PURCHASING GROUP. C .�3"1 to Au ltiorized Representative OR Countersignature(in states where applicable) Date: May 4,2011 012d08bc0c PRG 3152(10105) Farm SCNLGL—°WinTOTAL"appraisal software by a la!node,inc.—1-800-ALAMODE i CITY OF BROOKLYN CENTER a 2012 LOCAL BOARD OF APPEAL AND EQUALIZATION Walk— In Appeal Application Local Board of Appeal and Equalization held April 30, 2012 at 7:00 P.M. Names G 10_( l Z!!n2 � Daytime Contact Number: 4 Property Address 3 60 / Property Identification Number 0 t I Y Z t 13 0059 Assessor's 2012 Estimated Market Value ZbOrtbo Is your property residential, commercial or multi-family? eve` If you are appealing a commercial, multi-family or residential rental property you will need to submit income and expense data for calendar year 2011 with your application. What is the reason you are qppealing your 2012 assessment? ZZ When did you purchase your home? Date of Purchase 7� Purchase Price fs/ Did you purchase your property from a bank, as a foreclosure or short sale? Has your property physically changed since the purchase? (maintenance, upgrades, remodeling or structural damage) Please list a brief description below with an estimated cost. Have you had a recent appraisal for refinancing, purchase or a market analysis by a real estate agent completed within the last year? Yes or, If so, what was the determination of value? What do you think the market value of your property should be? We will need to schedule an interior review of your property within the week, is there a specific date or time that works best for you? / `-- Please provide any documentation supporting your claim of overvaluation or erroneous classification with this application. In order to appeal vtour valuation an appointment to view the property will be required. CONTRACT FOR DEED Form No. 56-M Minnesota Uniform Conveyancing Blanks 1978 Miller-Davie Co. Minnee olio Corporation or Partnership Seller No delinquent taxes and transfer entered; Certificate of Real Estate Value (. )filed ( )not required 19_ County Auditor By Deputy (reserved for recording data) MORTGAGE REGISTRY TAX DUE HEREON: (reserved for mortgage registry tax payment data) Date: THIS CONTRACT FOR DEED is made on the above date by RENER T nW INf CORPORATION 'a nder the laws of—MT_ NNESO_TA _ Seller, and V- 1ERICAN WILDLIFE ART GALLERIES, LLC, A LIMITED LIABILITY CORPORATION, , Purchaser (whether one or more). Seller and Purchaser agree to the following terms: 1. PROPERTY DESCRIPTION. Seller hereby sells, and Purchaser hereby buys, real property in m�pr>\T County, Minnesota, described as follows: Lot 001, Block 005, Brooklyn Manor Hennepin County, Minnesota. together with all hereditaments and appurtenances belonging thereto (the Property). 2. TITLE. Seller warrants that title to the Property is, on the date of this contract, subject only to the following exceptions: (a) Covenants, conditions, restrictions, declarations and easements of record, if any; (b) Reservations of minerals or mineral rights by the State of Minnesota, if any; (c) Building, zoning and subdivision laws and regulations; (d) The lien of real estate taxes and installments of special assessments which are payable by Purchaser pursuant to paragraph 6 of this contract; and (e) The following liens or encumbrances: 3. DELIVERY OF DEED AND EVIDENCE OF TITLE.Upon Purchaser's prompt and full performance of this contract, Seller shall: (a) Execute, acknowledge and deliver to Purchaser aldarranty recordable form,'conveying marketable title to the Property to Purchaser, subject only to the following exceptions: (i) `Dose exceptions referred to in paragraph 2(a), (b), (c) and (d) of this contract; (ii) Liens,encumbrances,adverse claims or other matters which Purchaser has created,suffered or permitted to accrue after the date of this contract; and (iii) The following liens or encumbrances: and (b) Deliver to Purchaser the abstract of title to the Property or,if the title is registered,the owner's duplicate certificate of title. 4. PURCHASE PRICE.Purchaser shall pay to Seller, at a designated pl are f sum e o One Hundred Twenty Five Thousand and 00 100ths - - - - - - - (� 125,000 the o as and for the purchase price for the Property, payable as follows: $ 5,000.00 Cash, the receipt of which is hereby acknowledged; $ 120,000.00 By contract for deed with "0" interest thereon payable as follows: There will be no payments on this contract for deed until March 15, 2014, at which time a payment of $5.00.00 shall be made and a payment of $500.00 shall be made on each and every month thereafter until March 15, 2027 at which time the entire remaining contract balance will be due and payable in full.', Seller retains security interest in said property until contract is paid in full. 5. PREPAYMENT.Unless otherwise provided in this contract,Purchaser shall have the right to fully or partially prepay this contract at any time without penalty. Any partial prepayment shall be applied first to payment of amounts then due under this contract,including unpaid accrued interest, and the balance shall be applied to the principal installments to be paid in the inverse order of their maturity. Partial prepayment shall not postpone the due date of the installments to be paid pursuant to this contract or change the amount of such installments. 6. REAL ESTATE TAXES AND ASSESSMENTS. Purchaser shall pay,before penalty accrues,all real estate taxes and installments of special assessments assessed against the Property which are due and payable in the year :'20�*and in all subsequent years. Real estate taxes and installments of special assessments which are due and payable in the year in which this contract is dated shall be paid as follows:-;keal Estate taxes payable in 2012 shall 'be p y prorated to date of closing between seller and 'purchaser. Any pending or levied special assessments due shall be the Seller's responsiblity to pay. Seller warrants that the real estate taxes and installments of special assessments which were due and payable in the years preceding the year in which this contract is dated are paid in full. 7. PROPERTY INSURANCE. (a) INSURED RISKS AND AMOUNT. 1',. ;.:,haser shall keep all buildings, improvements and fixtures now or later.located on or a part of the Property insured against loss by fire, extended coverage perils, vandalism, malicious mischief a d' if applicable, steam boiler explosion for at least the amount of it's full insurable va ue If any of the buildings,improvements or fixtures are located in a federally designated flood prone area, and if flood insurance is available for that area,Purchaser shall procure and maintain flood insurance in amounts reasonably satisfactory to Seller. (b) OTHER TERMS.The insurance policy shall contain a loss payable clause in favor of Seller which provides that Seller's right to recover under the insurance shall not be impaired by any acts or omissions of Purchaser or Seller, and that Seller 'shall otherwise be afforded all rights and privileges customarily provided a mortgagee under the so-called standard mortgage clause. (c) NOTICE OF DAMAGE. In the event of damage ;to the Property by fire or other casualty, Purchaser shall promptly give notice of such damage to Seller and the insurance company. 8. DAMAGE TO THE PROPERTY. (a) APPLICATION OF INSURANCE PROCEEDS. If the Property is damaged by fire or other casualty, the insurance proceeds paid on account of such damage shall be applied to payment of the amounts payable by Purchaser under this contract,even if such amounts are not then due to be paid,unless Purchaser makes a permitted election described in the next paragraph.Such amounts shall be first applied to unpaid accrued interest and next to the installments to be paid as provided in this contract in the inverse order of their maturity. Such payment shall not postpone the due date of the installments to be paid pursuant to this contract or change the amount of such installments. The balance of insurance proceeds, if any, shall be the property of Purchaser. �Uf r VY�'l..t t[-�.71.�it .3 i'i_,i.�..1 lvly I Pll'1"V1LiJ• 11 rU11:11aSG1 IN 11UL III uC1aLl1L UIIUef MIN conLracL, or after curing any such default, and if the mortgagees in any prior mortgages and sellers in any prior contracts for deed do not require otherwise, Purchaser may elect to have that portion of such insurance proceeds necessary to repair, replace or restore the damaged Property (the repair work) deposited in escrow with a bank or title insurance company qualified to do business in the State of Minnesota, or such other party as may be mutually agreeable to Seller and Purchaser. The election may only be made by written notice to Seller within sixty days after the damage occurs. Also, the election will only be permitted if the plans and specifications and contracts for the repair work are approved by Seller, which approval Seller shall not unreasonably withhold or delay. If such a permitted election is made by Purchaser, Seller and Purchaser shall jointly deposit, when paid, such insurance proceeds into such escrow. If such insurance proceeds are insufficient for the repair work, Purchaser shall, before the commencement of the repair work, deposit into such escrow sufficient additional money to insure the full payment for the repair work. Even if the insurance proceeds are unavailable or are insufficient to pay the cost of the repair work, Purchaser shall at all 'times be responsible to pay the full cost of the repair work. All escrowed funds shall be disbursed by the escrowee in accordance with generally accepted sound construction disbursement proce- dures. The costs incurred or to be incurred on account of such escrow shall be deposited by Pur- chaser into such escrow before the commencement of the repair work. Purchaser shall complete the repair work as soon as reasonably possible and in a'good and workmanlike manner, and in any event the repair work shall be completed by Purchaser within one year after the damage occurs. If, following the completion of and payment for the repair work, there remain any undisbursed escrow funds, such funds shall be applied to payment of the amounts payable by Purchaser under this contract in accordance with paragraph 8 (a) above. 9. INJURY OR DAMAGE OCCURRING ON THE PROPERTY. (a) LIABILITY. Seller shall be free from liability and claims for damages by reason of injuries occur- ring on or after the date of this contract to any person or persons or property while on or about the Property. Purchaser shall defend and indemnify Seller from all liability, loss, costs and obliga- tions, including reasonable attorneys' fees, on account of or arising out of any such injuries. However, Purchaser shall have no liability or obligation to Seller for such injuries which are caused by the negligence or intentional wrongful acts or omissions of Seller. (b) LIABILITY INSURANCE. Purchaser shall, at Purchaser's own expense, procure and maintain liability insurance against claims for bodily injury, death and property damage occurring on or about the Property in amounts reasonably satisfactory to Seller and naming Seller as an additional insured. 10. INSURANCE, GENERALLY. The insurance which Purchaser is required to procure and maintain pursuant to paragraphs 7 and 9 of this contract shall be issued by an insurance company or companies licensed to do business in the State of Minnesota and acceptable to Seller. The insurance shall be maintained by Purchaser at all times while any amount remains unpaid under this contract. The insur- ance policies shall provide for not less than ten days written notice to Seller before cancellation, non-renewal, termination or change in coverage, and Purchaser shall deliver to Seller a duplicate original or certificate of such insurance policy or policies. ' 11. CONDEMNATION. If all or any part of the Property is taken in condemnation proceedings instituted under power of eminent domain or is conveyed in lieu thereof under threat of condemnation; the money paid pursuant to such condemnation or conveyance in lieu thereof shall be applied to payment of the amounts payable by Purchaser under this contract, even if such amounts are not then due to be paid. Such amounts shall be applied first to unpaid accrued interest and next to the installments to be paid as provided in this contract in the inverse order of their maturity. Such payment shall not postpone the due date of the installments. to be paid pursuant to this contract or change the amount of such installments. The balance, if any, shall be the property of Purchaser. 12..WASTE, REPAIR AND LIENS. Purchaser shall not remove or demolish any buildings, improvements or fixtures now or later located on or a part.of the Property, nor shall Purchaser commit or allow waste of the Property. Purchaser shall maintain the Property in good condition and repair. Purchaser shall not create or permit to accrue liens or adverse claims against the Property which constitute a lien or claim against Seller's interest in the Property. Purchaser'shall pay to Seller all amounts, costs and expenses, including reasonable attorneys' fees, incurred by Seller to remove any such liens or adverse claims. 13. DEED AND MORTGAGE REGISTRY TAXES. Seller shall, upon Purchaser's full performance of this contract, pay the deed tax due upon the recording or filing of the deed to be delivered by Seller to Purchaser. The mortgage registry tax due upon the recording or filing of this contract shall be paid by the party who records or files this contract; however, this provision shall not impair the right of Seller to collect from Purchaser the amount of such tax actually paid by Seller as provided in the applicable law governing default and service of notice of termination of this contract. 14. NOTICE OF ASSIGNMENT. If either Seller or Purchaser assigns their interest in the Property, a copy of such assignment shall promptly be furnished to the non-assigning party. 15. PROTECTION OF INTERESTS. If Purchaser fails to pay any sum of money required under the terms of this contract or fails to perform any of Purchaser's obligations as set forth in this contract, Seller may, at Seller's option, pay the same or cause the same to be performed, or both, and the amounts so paid by Seller and the cost of such performance shall be payable at once, with interest at the rate stated in paragraph 4 of this contract, as an additional amount due Seller under this contract. If there now exists, or if Seller hereafter creates, suffers or permits to accrue, any mortgage, contract for deed; lien or encumbrance against the Property which'is not herein expressly assumed by Purch- aser, and provided Purchaser is not in default under this contract, Seller shall timely pay all amounts due thereon, and if Seller fails to do so, Purchaser may, at Purchaser's option, pay any such delinquent amounts and deduct the amounts paid from the installment(s) next coming due under this contract. 16. DEFAULT. The time of performance by Purchaser of the terms of this contract is an essential part of this contract. Should Purchaser fail to timely perform any of the terms of this contract, Seller may, at Seller's option, elect to declare this contract cancelled and terminated by notice to Purchaser in accor- dance with applicable law. All right, title and interest acquired under this contract by Purchaser shall then cease and terminate, and all improvements made upon the Property and all payments made by Purchaser pursuant to this contract shall belong to Seller as liquidated damages for breach of this contract. Neither the extension of the time for payment of any sum of money to be paid hereunder nor any waiver by Seller of Seller's rights to declare this contract forfeited by reason of any breach shall in any manner affect Seller's right to cancel this contract because of defaults subsequently occurring, and no extension of time shall be valid unless agreed to in writing. After service.of notice of default and failure to cure such default within the period allowed by law, Purchaser shall, upon demand, surrender possession of the Property to Seller, but Purchaser shall be entitled to possession of the Property until the expiration of such period. 17. BINDING EFFECT. The terms of this contract shall run with the land and bind the parties hereto and their successors in interest. 18. HEADINGS. Headings of the paragraphs of this contract are for convenience only and do not define, limit or construe the contents of such paragraphs. 19. ASSESSMENTS BY OWNERS' ASSOCIATION. If the Property is subject to a recorded declaration providing for assessments to be levied against the Property by any owners' association, which assessments may become a lien against the Property if not paid, then: (a) Purchaser shall promptly pay, when due, all assessments imposed by the owners' association or other governing; body as required by the provisions of the declaration or other related documents; and (b) So long as the owners' association maintains a master or blanket policy of insurance against fire, extended coverage perils and such other hazards and in such amounts as are required by this contract, then: (i) Purchaser's obligation in this contract to maintain hazard insurance coverage on the Property is satisfied; and (ii) The provisions in paragraph 8 of this contract regarding application of insurance proceeds shall be superseded by the provisions of the declaration or other related documents; and (iii) In the event of a distribution of insurance proceeds in lieu of restoration or repair following an insured casualty loss to the Property, any such proceeds payable to Purchaser are hereby assigned and shalt be paid to Seller for application to the sum secured by this contract, with'',the excess, if any, paid to Purchaser. 20. ADDITIONAL TERMS: See attached list of equipment and assets made a part hereof. i i I SELLER PURCHASERS — .E LOW INC. AMERICAN WILDLIFE ART GALLERIES. LLC. �, A LIMITED LIABILITY CORP � �— E L. LOW, PRESIDENT BY: Michael W. Haase, President ; By— Its i STATE OF MINNESOTA COUNTY OF " The foregoing instrument was acknowledged before me this r� day of by —RENEE T... QW � and the RE SIDENT — and of I RMMF-P T C-Gd_,.._1lC a CORPORATTON under the laws of MTNNFSnTA , on behalf of the roppORATLION NOT ARIA1.STAMPOlt SEAL(Olt O'I'll_f•ItTT SETH ARON RICHEY "( Notary Public j ' Minnesota SIONATURL--•OF NOTARY PUBLIC OR OTHER OFFICIAL My Commission Expires Jan un 31,201 i I STATE OF MINNESOTA COUNTY OF The foregoing instrument was acknowledged before me this day of !by Michael W Naa.ga; Prea;.dent_ of AMERICAN WILDLIFE ART'GALLERTES; T, r 1 A MTNNF:SnTA LTMTTED T,TARTT,TTY r.GRPQPATTQN_ NO'l!\RIA1..STAMP OR SR,\i.(Olt OTIiI•:It TI'fLIS OR RANI:>: i SIGNATURE OF NOTARY PUBLIC OR O'IYIER OFFICIAL Tar Statements for the real properly described in this inslnimenl should be sail lo: f I i AMERICAN WILDLIFE ART GALLERIES,LLC. I THES IivttEtU:`.ti.Sl'1'II'a5F)ltAP'fL..U33\'(5:1 M."AND ADDRESS); 4531 Robin Circle North CLOSERS FiNAL1S, I Minneapolis, Minnesota 55422 4W Hemlock Lane NoM Plymouth, Minnesota VW2 i i 1 FAILURE TO RECORD OR FILE THIS CONTRACT FOR DEED MAY GIVE OTHER PARTIES PRIORITY OVER PURCHASERS' INTEREST IN THE PROPERTY. i 3 CITY OF BROOKLYN CENTER LOCAL BOARD OF APPEAL AND EQUALIZATION 2012 Assessment APPLICATION FOR APPEAL March 2.3, 2012 through April 18, 2.012 You must return this application by April 18 2012,_to be placed on the Agenda for the Local Board of Appeal and Equalization held April 30, 2012 at 7:00 P.M. Daytime Contact Number: I (Q 1— _ R Property Address`31 l � AV e 'N o r 1r-1 Property Identification Number 1 1` pj C> Assessor's 2012 Estimated Market Value I DV Is your property residential, commercial or multi-family? M -e-,r If you area g y _ y appealing a commercial, multi-family or residential rental property you must include income and expense data for calendar year 2019 with your application. What is the reason you are appealing your 2012 assessment? c 1 V e, When did you purchase Rul_:�19 D ate of Purchase Purchase Price q Did you purchase your property from a bank, as a foreclosure or short sale? Has your property physically changed since the purchase? (maintenance, upgrades, remodeling or structural damage) Please list a brief description below with an estimated cost. Have you had a recent appraisal for refinancing, a purchase agreement or a market analysis by a real estate agent completed within the last year? Yes or No If so, what was the determination of value? What do you think the market value of your property should be? ID V I OCO Please provide any documentation supporting your claim of overvaluation or erroneous classification with this application, HENNEPIN COUNTY 2012 PROPERTY TAX STATEMENT YOUR PROPERTY TAX VALUES &CLASSIFICATION 10-118-21 13 0080 Taxes Payable Year: 2011 2012 4 Estimated Market Value: 850,000 850,000 Homestead Exclusion: Veteran Exclusion: New Improvements/ Expired Exclusions: 0 0 MONTE K HANSON Taxable Market Value: 850,000 850,000 7953 ORCHID LA N Property Class(es) : IND PREFERRED IND PREFERRED MAPLE GROVE MN 55311-2186 You may be eligible for one or even t►vo refunds to reduce your property tax. Read the back REFUNDS? of this statement to find out how to apply. Taxes Payable Year 2011 2012 I.- Use this amount on Form M1PR to see if you are eligible for a property tax refund. .00 File by August 15. If box is checked, you owe delinquent taxes and are not eligible 2. Use this amount for the special property tax refund on schedule 1 of form M1PR. .00 Property Tax and Credits 3- Property tax before credits 33,303.40 35,605.08 4. A. Agricultural market value credit .00 .00 B. Other credits .00 .00 5. Property taxes after credits 33,303.40 35,605.08 Property Tax by Jurisdiction III, 6. A. County. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 4,783.85 1,961.05 B. Regional Rail Authority. . . . . .. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130.03 52.61 7. City or Town. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .. . . . . . 5,971.15 2,616.81 8. State..General Tax. . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 7,969.48 8,303.75 9. School District: A. Voter approved levies . . . . . . . . . . . . . . . . . . .,. . . ... ,. . . . 1,928.59 2,562.63 B. Other Local Levies. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,624.12 1,118.44 10. Special Taxing Districts: A. Metropolitan Special Taxing Districts. . . . . . 307.75 125.39 B. Other Special Taxing Districts.. 718.66 268.51 C. Tax Increment. . . .. . . . . . . . . . . . . . .1. . . ... . . . . . .00 10,113.20 D. Fiscal Disparity. . . . . . . . . . . . . . . . . . . . .. . . . . . 7,519.07 8,114.99 11. Non-School Voter Approved Referenda Levies. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 350.70 367.70 12. Total property tax before fees and Special Assessments. . . . . . . . . . . . . . . . . . . . . 33,303.40 35,605.08 13. A. Special Assessment Principal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . B. Special Assessment Interest. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 14. YOUR TOTAL PROPERTY TAX AND SPECIAL ASSESSMENTS. . . . . . . . . . 33,303.40 35,605.08 -,--------------------------------------!----------------------------------------------------------------------- MAKE CHECK PAYABLE TO SECOND HENNEPIN COUNTY TREASURER A-600 Government Center Pay on or before October 15,2012 to avoid penalty. 2ND HALF PAY STUB 2012 Minneapolis,MN 55487-0060 Please read the reverse side for payment information. TAXPAYER OR AGENT MUNIC MTG.CODE 612-348-3011 •www.hennepin.us El CHECK B CHANGE Office Hours 8:00 to 4:30 Monday-Friday MONTE K HANSON 22 7953 ORCHID LA N MAPLE GROVE MN 55311-2186 Owner PROPERTYADDRESS MONTE K HANSON (IUUq�II��II9�IIW�� �III��IIAIIIIn� 3715 50TH AVE N Munic School Watershed Sewer TIF Check Out the Payment Options! 22 281 8 2148 www.hennepin.us Property Address PROPERTY IDENTIFICATION NO. SECOND HALF TAX 3715 50TH AVE N 10-118-21 13 0080 17, 802 .54 Addition BROOKLYN MANOR BROOKLYN CTR Lot block 1011821130080000000000001,78025421],1810],300807 005 LOTS 5 AND 6, BLOCK 5, "BROOKL - ----------------------------------------------------- - --------------------------- ---------------------------------------------------------------------------- DETACH AND - YOUR FIRST HALF PAYMENT TAXPAYER NAME OR Pay on or before May 15,2012 to avoid penalty. 1ST HALF PAY STUB 2012 6325 Welcome Ave N, Brooklyn Park, MN 55429 Recent sales comp valuation on Loop... Page 1 of 2 C�i11,Y ' LoopNet #1 in Commercial Real Estate Online Access closed sale transactions,Upgrade Now. Back to My Property Comps LoopNet Property Comps x LoopNet Property Comps provide recent commercial property sale details and valuation. sales comps provide a snapshot of the recent property sale, and we offer over 1.5 Million Sales Comps sold commercial real estate records.Historical sale information is compiled from brokers,our Research team, deed information,and public record. Industrial—Sales Comp 6325 Welcome Ave N Additional options 6325 Welcome Ave N,Brooklyn Park,MN 55429 Sale Original Listing Owner&Mortgage Property Tax Ir(o , Photos Map Print ID:3541647 Sale Details Original Listing► i Sale Status: Sold ILI Sale Date: 04 105/2012 Sale Price: $900,000($31.01/SF) Listing Price: $1,300,000 a lQC l Document#: 4942407 L F' 651111 Aar N Property Information View Details -63rd Ave Nr:.:: Property Type: Industrial Property Subtype: Flex Space $ 02012MI....*C.,p.fi- 02010NAVTEO P O AND Building Size: 29,027 SF View Larger Maps► Lot Size: 2.38 Acres APN/Parcel ID: 33-119-21-31-0006 Parties to Transaction Seller: REITER RALPH L JR TRUST Broker: Paramount Real Estate Corporation John Young View Phone Number Buyer: FITWELL LP 604 Lincoln Ave Ne,St Cloud,MN 56304 Financing Comments Sale involved mortgage financing.Lender identified as FALCON NArt-BK, Nearby Properties for 6325 Welcome Ave N,Brooklyn Park,MN 55429 Nearby Recently Sold Industrial Properties Search all recently sold commercial real estate Flex Space Flex Space Flex Space Flex Space Flex Space Sold Apr 2012 Sold Apr 2012 Sold Apr 2012 Sold Dec 2011 Sold Oct 2011 Sold$900,000- Sold$5,500,000- Sold$6,500,000- Sold$550,000- Sold$500,000- $950,000 $6,000,000 $7,000,000 $600,000 $550,000 http://www.loopnet.com/sold/3 541647/6325-Welcome-Ave-N-Brooklyn-Park-MN-55429/... 4/30/2012 J V Sk" Sb � y,� v�� Can!-�� � tMA SS Lf ln� �>, Ze. 36 r � O sC Written Appeals by Taxpayers Regal Cinemas Inc. 36-119-21-42-0021 Commercial Vacant Land 6420 Camden Ave N. 36-119-21-13-0120 Commercial Chet Yancey The Aegis Group, LLC 1102 18th Avenue South Nashville, TN 37212 m 0- This page was intentionally left blank Written Appeal Regal Cinema 6420 Camden Ave N. PID# 36-119-21-42-0021 and 36-119-21-13-0120 The following format is recommended for each written appeal. Please state owner(s) name and address. Review owner(s) statement of estimated market value or classification and presentation of factual information regarding the property. Assessor's statement of value or classification and presentation of factual information regarding the property. • Questions addressed to the Assessor. The Local Board of Appeal and Equalization considers the appeal and makes one of the following motions: • Refer the appeal to the Assessor's office for an interior review of the property and the Assessor's recommendation at the Local Board reconvene meeting on May 7, 2012. • Make no change and sustain the 2012 estimated market value or classification. If the owner(s) is not satisfied with the outcome of the Local Board of Appeal and Equalization they may appeal to the County Board of Appeal and Equalization. CITY OF BROOKLYN CENTER LOCAL BOARD OF APPEAL AND EQUALIZATION 2012 Assessment APPLICATION FOR APPEAL March 23, 2012 through April 18, 20'12 You must return this application by April 18, 2012, to be placed on the Agenda for the Local Board of Appeal and Equalization held April 30, 2012 at 7:00 P.M. Name(s) 'Rpac.l C,i�emas 'T-0G. L,e+,a �, Gino.�2edl a�,c Daytime Contact Number: Property Address (a 42 Q C ao, e >�•,� N bazl Id�33(o�oa� j Property Identification Numbers �i�4- 2�1.-�2� o t2� � 1, y89,�(0 � Assessor's 2012 Estimated Market Value " - 3i 3!a,0 d (, LlP9 Is your property residential, commercial or multi-family?___.(' urov-arc,' If you are appealing a commercial, multi-family or residential rental property you must include income and expense data for calendar year 2011 with your application. What is the reason you are appealing your 2012 assessment? --- \ c egseQ o� Pcor� �� obs�te sce„ce V ea- x le je l ,^II low e4fe_ SinCC 2-d06 o� 01 U1 2 c re Ash oI V 7 V 2, Out- r z”�j-';k2 aka r\G0�^A- Cc (O a Gh C M A -I�Q 0Jn e r CO V l Q l h b r C1�" have V Zj, When did you purchase your home. y� cash• /a..,. Date of Purchase — Purchase Price ^ Did you purchase your property from a bank, as a foreclosure or short sale? Has your property physically changed since the p urchase? (maintenance, u pg rades, remodeling or structural damage) Please list a brief description below with an estimated cost. 1 i 1 Have you had a recent appraisal for refinancing, a purchase agreement or a market analysis by a real estate agent completed within the last year? Yes or No If so, what was the determination of value? What do you think the market value of your property should be? y;/S�a Utz Please provide any documentation supporting your claim of overvaluation or erroneous classification with this application. � �� � REGAL ENTERTAINMENT G R O U P To: City, County and State Ad Valorem Taxing Authorities and/or Landlords Re. Letter of Authority to Act in Matters of Ad Valorem Taxation This Authorizes: The Aegis Group, LLC 1102 18th Avenue South Nashville, TN 37212 To act on behalf of Regal Entertainment Group as our agent In assessment matters for all realty whether awned, possessed or controlled by Regal Entertainment Group, This Agent is delegated full authority to handle all matters relative to assessments with your office, including negotiations with assessing officials and appearance before appeal boards on our behalf. Please provide access to all information and records of your offices which would have been available to us as the taxpayers and as it pertains to these tax matters. This authorization Is effective until otherwise revoked by certified letter from this Company. Sincerely, FeterAltmann Vice President--Property Management State of Tennessee County of Knox Subscribed and sworn to before me this. ' day of A ,2009. i % SSA C i STATE (STAiiP) ,r OF :?�s - : TENNESSEE otary Public NOTARY z My commission expires Feb.2,2011 � •� PUBLIC commission expires: '�,� REGAL CINEMAS UNITED ARTISTS EDWARDS THEATRES Corporate Of/Ice---865.922.1123 • Fax:865.922.3188—7132 Regal Lane,Knoxville,TN 37938 Los Angeles Film Office--818.593.4000 • Fax:818.593.4035—21700 Oxnard Street,#1000,Woodland Hills,CA 91367 Nty of Brooklyn Center,;;Mlnnesota U11 Shingle Creek Paril Brooklyn Center,MN 55430-2199•(763)569-3310■FAX: (763)569.3337■TDD:MN,Relay 711 2012 Notice of Valuation and Classification For taxes payable in 2013– Tihls is NOT a bill – 'roperty Identification Number, 38-119-21-42-0027 'roperty,4ocaiinn: 6420 Camden Ave N Real CinAmas Inc "'' ' ` "' Real Estatna'bilpartmanE' 7132 RegalLri ,. ,+'. +, :,;,,, r; . .�• , „t :s,. . ... .. Knoxville TN 3781&6803 'his form Is to notify you of the market value and classification of your property for assessment year 2012.The property taxes you pay In 2013 Text year)will be based on this valuation and dassif oaflon. The prior year data has been Included for comparison purposes, Assessment Year 2011 Assessment Year 2012 (For Taxes Payalale In 2012) (For Taxes Payable In 2013) ropatty Classification: COMMERCIAL PREFERRED COMMERCIAL PREFERRED :stimated Market Value: $10,338,000 336000 'clue of Now Improvements: ,roan Acres Value Deferred: )pen Spaces Value Deferred; 'tat Deferment: 'ural Preserve Value Dofofmd: his Old House Exclusion: 11sabied Vetemns Market Valub Fxclusfon: 'eferendurn Market Value: $10,336,000 $10,336,000 romestead.Market Value Exd4fslorh axable Market Valuer : .$10,338;000 . $10,336;0()0 IMPORTANT INFORMATION AppeNlinp the Value or Classfflcatlon of Your Property ppeal Option 1: Informal Appeal=Contact Your Assessor you have questions or disagree.with the classification or estimated market value for your property for 2012, lease essor°s office first to scuss your concerns.Often your Issues can be resolved at this level. You may contact the Brooklyn Center Assessor's Office at(763)568.3310.Property formation can be vlewed at the assessor's office between 8:00 AM and 4:30 PM Monday through Friday. ppeal Option 2: Formal Appeal�Opllons top City of Brooklyn Center Local Board ofAppeal and Equalization TM Ij;1I T aye your Valua or classy r n-r Is ncorre o ma r ng buf 669 o h_e o0—@1`Bub 'o Appeal an Equalization. You may appear in arson,by letter', or be represented by an authorized agent. Please call your Assessor's Office first,an application Is necessary. It)s required that au first attend the Local Board prior to attending the County Board of Appoei. The Local Board of Appeal and Equalization convenes at 7:00 PM i Monday,Aprll 30,2012 In the Council Chambers,City Hall,6301 Shingle Creek Parkway, Brooklyn Center, MN 55430. Wu wish to make an appeal before Ilia LoraLfloord.an application is requested no later than Wednesday,April 012. lep 92–Hennepin County Board of Appeal and Equalization to County Board of Appeal and' Equalization begins on June 18, 2012, at the Hennepin County Government Center, 300 S Sixth St., Inn eapolis, MN 55487. ApplicatO is required no later than May 23, 2012. To appear before the County Board.•Vou Mira{have appeared I More tho City of Brooklyn Center Boend of Appeal and Equalization. You must call In advance to get-on the agenda: Phone:(612)348- )50 or(TTY(6 12)346-3461 Teletype). ppeal Option 3--Minnesota Tax.Court spending on the type of appeal,you may take your case to either the Small Claims Division or the Regular Division of Tax Court. You have until >rfl 30,2013 to file an appeal with the Small Claims Division or the Regular Division of Tax Court for your 2012 valuation and Classification. )r Information on the Tax Cou rt,cdritact the Minnesota Tax Court: tone:651-296-2806 [TTY Relay(800)627-3528 Tafetypel Web site: htto:/Ar".taxcou rt.state.mn ylg r additional information concerning a property's valuation or classification,you can access the Hennepin County website Vt.f1tf9;Ywwy.henneoin us/ )party dassificatlon information can also be accessed through the Department of Revenue website at:htto:1Avww.tams.state,nnn usl Ed OEEE IA17NASHI dH WUaS :G ZtOZ Ga JeW My of Brooklyn Center, Minnesota 301 Shingle Creek Parkway■Brooklyn Center,MN 65-43D-2199■(763)569.3310■FAX:(763) 559-3337■ TDD:MN Relay 711 2012 Notice of Valuation and Classification For taxes payable in 2013- This Is h(OT a bill roperly Identification Nurnber'; 9t�419-21-73-0720 " roperty'Lccatlon Agdress:Unassigned Regan Crnames Inc 14 j .... .... ;r:- . •.. se!'E state Depertmenf'!- - .. .•_ . . . . 7132 Regal Ln , .. ;• ';�. , I •S :4 . . p. :r �.• . :t:, Knoxville TN 37918-5803 his form is to notify you of the market value and classification of your property for assessment year 2012.The property taxes you pay In 2013 text year)will be based an this valuation and ciassificatlon.The prior year data has been Included for comparison purposes. Assessment Year 2011 Assessment Year 2012 (For Taxes Payable In 2412) (For Taxes Payable in 2013) roperly Classification: LAND COMMERCIAL NON-PREF8RRED LAND COMMERCIAL NON-PREFERRED stlmated Market Value; $1,989;400 $4,489,400 Blue of New Improvements: teen Acres Value Deferred: pen Spaces Value Deferred: let Deferment: ural Preserve Value Deferred: h!s Old Mouse Exclusion: l$ab/ed Veterans Market Value Exclusion: ererendum Market Value: $1,489,400 $1,489,400 omestead.Morket Value Exclusion: ; axable tltarket Value: $4,489,40p $1,469,400 IMPORTAMT INFORMATION - Appealing the Value or Classif j atle•n of Your Property ppeal Option 1: Informal Appeal-Contact Your Assessor you have questions or disagree with.the classification or estimated market value for your property for 2012, Iease contact your assessor s office first to cuss your gorkQfrrs.Ciften your Issues can be resolved al this level.You may oonted tho Brooklyn Center Assessor's t 999 at(763)569-3310.Property brmadon can be viewed at the assessor's office between 8:00 AM and 4:30 PM Monday through Friday. ppeal Option 2: Formal Appeal Options :ep#1-.City of Brooklyn Center Local Board of Appeal and Equal ization o e0eve your value or.cfsssTi�c� b`t(-n(s fn"corn° e°°ct;yi�tf rrfay r ng r case fie ""��oa f pe`a ari qualtzafoR. S?o may appear"n Irson, by letter, or be represented`by an arrlhorizad agent. Please call your Assessor's OMce first,an application Is necessary. It Is required that ill first attend the Local Board prior to attending the County Board of Appeal. The Local Board of Appeal and Equalization convenes at 7;00 PM t Monday,April 30,2012 in the Council Chambers,CitV Hall,6301 Shingle Creek Parkway, Brooklyn Center, MN 55430. You wish to make an appeal before the Local Board an application is requested no later than Wednesday,April 16 2012. sp#2-Hennepin County Board of Appeal and Equalization le County Board of Appeal and Equalization begins on June 18, 2012, at the Hennepin County Govemment Cantor, 300 S Sixth St., Inneapolis, MN 55487. Application Is required no later than May 23, 2012. To appear before the County Board you must have appeared ofore the City of Brooklyn Con Me ward of Appeal and Fouaflzaflon• You must call In advance to get on the agenda: Phone:(612)348- 150 or[TTY(612)348-3461 TMetyoe]. i )peal Option 3 Minnesota Tax Court pending on the typo of appeal,you may take your case to either the.Small Claims Division or the Regular Division of Tax Court. You have until lril 30,2013 to file an appeal with the Small Claims Division or the Regular Division of Tax Court for your 2012 valuation and classification. it Information on the Tax Court,contact the Minnesota Tax Court; lone:651-296-2806 [TTY Relay(800)827.3529 Teletype] Web site: http;//www.taxcmrt.state.Mn.us r additional Information conceming a property's valuation or dassificabon,you can access the Hennepin County website at:tMp:jjWMy,hennenIn.0 1perty classification Information can also be accessed through the Department of Revenue website at:httpJ1WWw,taxas.statexnn us! Z d OEEE 13rN3SH-1 dH wuls :6 a10Z� 6�7 -Jew I '' :J'�r 'I•.rel��r�+;'J 1•.: tj1•x,.',!ll;j i.i:., '��tl..lf ' (It t l WINIM Tki rvei• ' •xklr°° , rl. � I '10 Quarter i f ■ r�•�+`117... ; )� 3 ,rl((�jr�V-' , �1 rrc/'I``y'y•,�^��Y� ` I �'J,t:J III{ril�5yY1„12t�1( ArY�v�li�SI{N4ii}�0 (' .� r I �. ��t,lsiJ✓Ibd'i�uS.rffa 1 {(,:Ij '�(s I14: Y }{ P” M.!ja S(I r;ky4,y 1�'r�l It.N1}3,y hl. YI-iia :gS ? �lil i '14!"y._\I!\Si i'y•' �7.A;i' sil +1'F bIJ r 9 r •Y n'I1,d )&'� I'yyY;l��f J•tl �T'.ry u )�,rr.1�744 •.., ��I�.)t ,!«�LI�[•'�t. •,,f�'• i' x I(q {�� � P�L 1 ! r ,t le4 .. �j} r�, ✓!�}�}A r ] , k , ti>i' _ v !r` •S,r (;{�1'�1j��rPrNKi�I,�>:iAfy .r,`-'�4•'r 7 {"Irll 5�,rr 1 h y # iry Ith7T(ntgf htl"IjVtF11 ti h. ) N( �TaF rk � J I61 f l:: y1�f�kl h , r r y l l ti f f d,^ / � r r IS'• r `kf , aY,.��!"V4f•�SI 11,1ki) Y� 4�1t� � y I t 7 I •M{['rl't H A(h• \ A II .:t ' bi � u � ^t y�,!k 11 {n �,J+'{. _G .I n T• ' h}}•"irOyq-?A xfj 1� " rriF�l � } + 5+ 413 } ! t!Iy S.7,• Y . ' I'R:Ia�+�+;�R •ka. 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'' tl' d41 j,n,i•I'{¢y s ' a}y ')'l I t� j ..tl,. i r`, 'iF '�' 'i "I �t 5'I s t JPA�`'nE``f' t 1.4 i c '. `: A.•ir k k +'(+r I} Jv'If!y ,fd {, 4k3lft {•I� , 1, iy 1!t 1�tf14 y+rk�Y � �(�I'yV�•�}��N� ,�}�,5.i fit' +�,I! .l � 1 , .�>, ),• #:t�( d�,4J�K , ES w'..Ni �(p tf{l ,}r,�e�9¢1°'eXt:ef a, M1j. 7t k 1r 1 I 'I yy 1.«'ln I , Slp tl, 1k'( Ytl Til 7ti TN + � 1R, Mi J..t H,Gy✓111 Yl4,.,-.. ... ... ... �,'I ,,.A� :,�h�1..11..�iV-.,..,,n 11•K,..1. .k,l t'ldY:;h.✓t",k.._,e<''h5:i1�.. Il l�lalM..... 's Y,A.C.A:u.,nra_$r>'.ro..Y4 L.A.�s. dw .e.N, 1 . , Quaiqer 2011* Off lee Buildings In_oome _ AskingRent �_ _Z1S.98 $19.00 _ $21.56 _$21.2_5 $18.37 _$20.31 $15.37 $18.14 Effective Rent $13.43 _ $15.03~ $16.90 $16.66 $14.79~ $16.35 _$12.39 $14.6 Other Income _ $0.67 _$0.75 $0.84 $0.83 __$0.74 �a0.82 $0.62 `$0.7 Total Inc om! _$14.10 $15.78 $17.74 $17.49 `$16.53 _$17.16 _ $13.01 _ $15. Vacant Rate�T 16.5%J 16.1% 16,1% 18.6Y. 132% 18.2'/. 14.9' _.. __.---- EGIM �11�34 $13.33 $14.88 $14.68 $12MI 4.50 $10.64 $13.07 Expenses _ Total Expenses $8.75 ^$8.58 $8.89 $9.93 _$_9.88 $8.47 $7.02 y $8.47 Expense Ratio 77.12/ 64_37% 59.77% 67.65% 78.17% 56.83% 65.98% 64.76' NOI $2.60 $4.75 $5.98 $4.75 $2.76 $6.43 a $3.62 $4.6 P. Y. 1' l Yts: Aug sale Price $37 _$69 $68 _ $64 $41 _ $73 -�$40 -�$5 OAR _ 7.0,/ 8.0'/. 8.7'/.w 7.4% 6.T/.y 8.8'/. 9.0% 9.1x GRM ^ _ 2.76 �~ 3.83 4.05 3.84 r_2.77 4.49 Y 3.26 ~� 3.46 EGIM 3.26 4.43 4.50 4.36 3.25 _ 4.92 -3.78 3.87 '3rd On rttr 2011 Ooh Copyright 2011 RtaltyRatce.comlm ! I Income�� _ Askln Rent $18.25 __$182_6 $16.77 ~$16.65 $15.88 $15.60 _ $15.27 $15.15 Effective Rent _ $15.99 $15.98 y�$14.02 $14.70 $13.70 $13.46 __$13.13 $13.03 Other Income _$0.80 _Y$0.80 $0.74 $0.74 $0.69 $0.67_$0.66 $0._66 Total Income ~. $16.79 $16.78 _ $15.56 $15.44 $14.39 $14.13 $13.79 $13.68 Va0anoy Rate._.._ 10.7% _ .10.5% 10.1%1 9,7% 8.3Y. ._... _8.0% _9.7Y. 9.4% j EGI _ $16.00_ $1502 $13.99 $13.95 13.00 _ $1248 $1240 Expenses _ _ __ _ Total Expenses $9.55 $8.61 $8.26 $7.44 $6.70 $6.04 _$7.36 $6.63 Expense Ratio 63.7_9%_ 57.31% 6_9.04% 53.36% 50.82'/. 4S.51% 59.04% 63.481 NOI _ $5.44 N $641 $5.73 _ $5.51 $649 $6.95 Y $510 $5.77 'Avg Sale Price _ $67 $73 $72 _ 78 $81 _$85 $ss $71 OAR 8.1% 9.8% 110%_ 8.31 8.09c 8.2% _ 73_% _ _8.1_% GRM _ +y yJ4.19 4.57 4.8_6 '15.105 5.91 ^~6.32 r�5.03 5.44 EGIM _ 4.47 4.86 5.16 5.59^� 6.14 6.54 5.30 5.71 3rd Qua rttr 2011 t7ata Copyright 2011 RtaltyFtatc-...coral„ RealtyRates.com TM 23 R Sj9}7,1}I T� �4�., V•.'•. 4u YW•1V WW Y, fir;: it:� ;'�� F• ;� �• its yylC�n�)�,L,`f• � } �j . ,V,21ey f• 4th Quarter 2011 ,;�Yi:}j''y Z� 1 'y�1; -P'•'i.p r to p , Il�• R a 7' �i Real a ! Quarter 2011* SPECIAL Item Input OAR l'� t k nR1'f�3 iG' 5 3.�k"mel a '-Fk 19 •�Sfo+�-�V>Y 19AA�t -..__._-__ 10 _ __.....__ Technique 63 0 80 5 6 u 1. 0 0682 3 Spread Over 10 Year Treasury 184 . / OCR Tech �-+ --- DebtCouera�eRatlo��-�- Band of Investment Technique ^- - - Interest Rate 4.14% Mortgage 80% 0.058263 0.046610 Amortization _ _ _ - �30 Sulty 20%-0,087S26 0.017566 Mortgage Constant_-_- 0.0.58263 OAn�-^- _642 Loan-to"Value Ratio BOX Surveyed Rates _ _ 6.10 _. -� - Equity D Ividend Rate ^8.78'/. _ - M Spread Over 10-Year Treasu ry 12.18% OCR Technique 2.101 0.163697 0.50 17.19 Debt Coverage Ratio _2.10 Band Investment Technique__ -•-_........_.._____......... __...__ ,- Mort�a�e 50'/.-Oy16 Interest Rate 14.48% ` -�- _- v 3597 0.081849 u Amortization ---__ _ _15 Equity -- 60% 0.188126 0.094063 -_ MortgageConstant _ 0.163697 CAR _ _ 17.59 Loan_-to-Value Ratio - 50_% Surveyed Rates` - _ -- 16.71 Equity Dr�ivldend Rate-�...__._. 18_.81% �+'- S.. reasury 4.71% DCR Technique 1.70 0.092708 0.62 _9.76 Spread Over 10�Year T Debt Coverage Ratio - - _ 1.70 Band of Investment Technique Interest Rate 7.01% Mortgage 62% 0.092708 0.057397 Amortization 20 E uit 38% 0,142991 0.054463 _.-._-.,.zation ._.._q_...�.._.__.._..I-_...... Mortgage Constant 0;092708 OAR 11.19 Loan-to-Value Ratio 61.9% Surveyed Rates 11.30 Equity Dividend Rate 14.30% '3rdQuortcr2011Doh Copyright 2011Ra41tyRataocom a' INVESTOR Quarter 2011' PURPOSE SPECIAL !t DAYCARE Item ;Inp;ut OAR ta4:'�. S read Dver 10-Year Treasury 1.84% OCR Teohnique 1,15 0.058263 0.80 5.36 Debt CoverageRatio 1.15 Band of Investment Technique Interest Rater 4.14% Mortgage -_- 80'/. 0.058263 0.046610 _ Amortization _ -_- 30 Equltg - - _20% 0.0878.26_0.0_17565 _- Mortgage Constant 0.058263 OAR �_-` _- - ^ 6.42 Loan-to-Value Ratio --80% Surveyed Rates 9.10 E uity D ividend Rate 0.70v { Aa,&.Jnv rurR` '� -s"5a. �.¢�.,_�^• �� ��r�� s "'w .'�:tr�. Spread Over 10-Year Treasury 8.16'/. DCR Technique 1.85 0.131429 -- 0.60 14.59 Debt Coverage Ratio 1.85 Band of Investment Technique Amortization 10.48% Mortgage 60/.f 0.131429 0.078857 Interest Rate __..----.._.. 15 Equi[ 40r _0.176126 0.070451 MortgageConstant 0.131428 OAR - j 14.93 Loan-to"Value Ratio 60% Surve ed Rates _ 14.18 YEquity 0lvidendna4!te 1761% �P {.G:.'.'1 K`v��`4""' •C "_ ,x.15 `� ' '�'" s�5a�n•-+"'+�'f � j�4 F+fir f 1� r��. �.�..kxx ��'�'�..�,•� � ���� Spread Over 10-Year Treasury 5.01-/. DCR Technique 1.50J 0.090461 00.70 -9.50 Debt Coverage Ratio 1.50 Band of Investment Techni ae interest Rate 7.31% Mortgage 7QY 0.090461 0.063323 Amortization EtLuitq -- _ _ 30Y. 0.127561 0.038268 Mortgage Constant 0.090461 OAR 10.16 Loan-to-Value Ratio 70'/. Surveyed Rates 10.05 Equity Dividend Rate 12,76'/. �-~i- '3rd auor tar 2011 Coto Cop yright 2011 nwtirRat,sx.m TM Market Commentary RealtyRates.com Investor Survey Cap Rate Indices Down Somewhat For All Property Types Except Office During 3rd Quarter 2011 Coincident with an 87 basis point drop in Treasury rates to which most commercial morWge interest rates are indexed, the RealtyRates.comi"1 Investor Survey Weighted Composite (Cap Rate) Index decreased 23 basis points,from 9.82% to 9.60%during the 3rd Quarter of 2011. The greatest quarter-over-quarter cap rate index decreases were recorded by the Lodging and Mobile Home/RV Park sectors,down 49 and 47 basis points,respectively. Only the Office sector recorded an increase-3 basis points-last quarter,while the smallest decrease was recorded by the Retail sector,down 11 basis points. Mortgage terms remained tight during the 3rd Quarter while equity dividend rates increased somewhat,Moreover, net operating income was down for virtually all property types except Apartments and Lodging facilities,thus,the decreased cap rates did not result increased property values. ReAt9liates.coin INVESTOR SURVEY-4th CURRENT&HISTORICAL CAP RATE Quawlev 2011' INDICES � � f I 2011 6.62 11.96 9.32 _ _9.64 10.86- 9.48 9.39 28 • 11.64 , 10.84 11.12 8.8-3�-- 3rd Qtr. 9.28 -39 11.76 •H-._9.07 -24_9.32 -20 10,44 •49 8.08 -41 9.33 3 .11 -It 11.47�•13 81.50 .39 10.98 .13 9.601_ •23 2nd Qtr. 8.67 X22 11.92~•30 9,31 --31 9.5_3 4 10,93 -12 9.86 _1 9,31 43..02* •31 11180 •24 10,88 17 1109 -21 9.02 ~ 1st Qh. 8,91 30 12.18 30 9.57 12 9.76 32 fl.17 39 9.80 35 y 9.54 _ 6 9.60 13 11.86 16 11.14 66 1132 2B.•10.07 26 2010 4 12.22 6 9.62 15 9.60 12 11.05 7 9.55 22 9.54 16 9.54 25^1184 r2 10.72 21 1130_ 0 10.00 13 2009 9.86 8 12.17 16 9.47 10 9_.48 _10 10.89 -7 9.33 1 9.38 29 929 20 tt72_ 15 10.60 37 11.3_0 B 9.97 _14 2008 _8.77 4 12.01 29 9.37 •19 9.38 •14 1105 56 9.32_5 9.08 •16 8.08 •11 8.57 -2B 10.13 20 1122 9,74 •1 _2007 _8.81_-45 11.72_•21 9.53 -68 9.52 -26 81.49 .29~9.37 •26 926 -47 92_0 -12_IM 61 9.93 -38 1129 -24 9.76 •28 2006 9.26_12 1193 4_7�1QI8 15 9.77 36 10.77 27_9.63 41 8.72 26 9.32 30 11.24 IB 10.31 27 V.53,_, 10.03 28 2008 8.H 14 11.46 80- 10.0_3~ -16 9.42 •30 10.60 -21 9.22 19 9,46 6 9,02 16 11.06 _5 10.04 13 8,44 9.77 2 _2004 9.00 .19 10.66 28 10,1_9�•37 912 18 10.71 •98 9.03 -481 9.40 -_4_8.86 •19 11.01-y45 w 9,91 •13 y 1174 9.75 -19 2003 9.19 -2 10.38 .32 _10,68 64 9.63 33-1189 66 9.51 •11 9.44 1 9.06 `18 11.16 8_M1.04 •53 12.04 9.94 12 _2002 8.21 40 10,70�81 9.92 •39 920 •61 11.13 u26_9.92 •60 _9.43 �-36 9.23 _.62 1108 ~-3 _10.67 -12 10.99 8.82 4 _2001 9.61 64 10.52 133 10.31 90 9,61 16 0.87 98 .10.22 a8~9.78-�-36 _9:86 .53 _1111 .47 M1.69 13 V-76 M1.2 2 2000 8.97 8.19 9.41 9 66 9.89 10.90 10.13 10.38_.- -10.64 10.66 1244 '3Ad 6hatu 2011 Data cogrlgh12011 NIAIR.W..M" . i i i Income Approach to Value Regal Cinemas Brooklyn Center 20 Theater 4240793 Parcel 36-119-21-42-4021 36-'119-21- 13 0«^0 Estimated Market Rent 15%of Total Revenue CONFIDENTIAL Less 5% V&C Loss Effective Net Income Less 5% Non-Reimbursable Ownership expense CONFIDENTIAL Net Operating Income CAP Rate Estimated value for Both Parcels CAP Rates for Special Purpose properties for 4th Quarter 2011 were 184 basis points higher than CAP rates for retail properties. We used the unanchored CAP rate of 8.3% in the Realty Rates Market Survey and added 1.84%to arrive at our first CAP rate of 10.14% Nancy Wojcik From: Chet Yancey <cyancey @aegistax.com> Sent: Wednesday, April 18, 2012 3:13 PM To: Nancy Wojcik Subject: emai address (Regal Brooklyn Center) Nancy- It was a pleasure speaking with you today regarding the Regal Theater. As soon as I am able to arrange a walk-through for you, I will let me know. Thanks, Chet Chet Yancey Vice President- Real Estate The Aegis Group, LLC 1102 18th Avenue South Nashville, TN 37212 Bus.: (615) 843-2805 Fax : (615) 843-2808 i This page was intentionally left blank Assessor's Report City of BROOKLYN CENTER 2012 Local Board of Appeal and Equalization Regal Cinemas Inc. C/O Chet Yancey 6420 Camden Ave N 36-119-21-42-0021 2012 Assessed Value: $10,336,000 Recommendation: Sustain - Recommend MN Tax Court Appeal This report is not an appraisal as defined in M.S. §82B.02(subd.3)nor does it comply with the Uniform Standards of Professional Appraisal Practice. It is intended to be used as a reference only and any use other than its intended use is prohibited and unlawfuL The author does not represent this to bean appraisal and is not responsible for any inappropriate use. It is a report of public records using a mass appraisal technique. City of M3BROOKLYN CENTER 2012 Local Board of Appeal and Equalization Regal Cinema Inc. C/O Chet Yancey 36-119-21-13-0120 2012 Assessed Value: $1,489,400 Recommendation: Sustain - Recommend MN Tax Court Appeal This report is not an appraisal as defined in M.S. §828.02(subd.3)nor does it comply with the Uniform Standards of Professional Appraisal Practice. It is intended to be used as a reference only and any use other than its intended use is prohibited and unlawful The author does not represent this to bean appraisal and is not responsible for any inappropriate use. It is a report ofpublic records using a mass appraisal technique. City of Brooklyn Center Assessing Department 2012 Local Board of Appeal and Equalization Staff Report Regal Cinemas Inc. C/O Chet Yancey Property Owner(s): Property Address: 6420 Camden Ave N PID #: 36-119-21-42-0021 Market Value Assessment Year 2012 $10,336,000 Assessment Year 2011 $10,336,000 Assessment Year 2010 $10,336,000 Sale: February 1, 2000 - 5,973,845 (11 - Other) Comments: Chet Yancey, AEGIS Group, LLC contacted the Assessor's office on April 18, 2012 regarding an appeal of the Regal theater valuation The theater subject property contains two separate parcels, PID # 36-119-21-42-0021 and 36-119-21-13-0120. Due to the complexity of reviewing profit and loss statements, market comparables in the seven county metro area and the amount of valuation reduction requested, it is both the City Assessor and Assistant County Assessor's recommendation to sustain the valuation and recommend the property owner address the valuation concerns in Minnesota Tax Court. Assessor Recommendation: Sustain - Recommend MN Tax Court Appeal Appraiser: Last Inspection Date: Nancy Wojcik October 14, 2010 2012 Board of Appeal and Equalization Regal Cinemas Inc.C/O Chet Yancey Subject Data Summary PID#: 36-119-21-42-0021 Buildings on File: 1 Property Name: Regal Cinema Property Address: 6420 Camden Ave N Brooklyn Center, MN 55430 Multiple Address: No Lot/Block: 003/001 Addition: Regal Road Development 2nd Addition Legal(120): LOT 3 BLOCK 1 EXCEPT THAT PART EMBRACED WITHIN GOVT LOT 2 SEC 36 T 119 R 21 Owner(s): Property Classification: Commercial 2012 EMV: 10,336,000 2011 EMV: 10,336,000 2010 EMV: 10,336,000 EMV/GBA: 115.60 Lot Size: 390,781 Sq.Ft./8.97 Acres Zoning: PUD/C2 Gross Office Area Percent: Building Use: 380-Theatre,Cinema/100% #Stories: 1 Avg Story Height: 30 Avg Clear Height: Actual Year Built: 1999 Effective Year Built: 1999 Renovated Year: First Floor Area: 84,430 Gross Building Area: 89,410 Basement: No Parking: Parking-Surface 2012 Board of Appeal and Equalization Regal Cinemas Inc.C/O Chet Yancey Theater 2012 pay 2013 REGAL THEATER 36-119-21-13-0120 36-119-21-42-0021 TOTAL LAND 594,440 GROSS BUILDING AREA 84,430 STATUS 1/2/01 100%Complete Theater Opened for Business on Friday Sepember 15,2000 20 Screen Stadium Style Seating 2012 pay 2013 ALLOCATION TO PARCELS ASSESSED AREA VALUES NEW IMPROV. PT 36-119-21-13-0120 LAND 184,950 $1,489,400 0 $8.05 LC Dist 11 BUILDING 0% $0 Parking lot only TOTAL $1,489,400 36-119-21-42-0021 LAND 409,490 $3,285,600 0 $8.02 C Dist 286 BUILDING 100% $6,500,000 TOTAL $9,785,600 TOTALS LAND 594,440 $4,775,000 $8.03 8.03277 BUILDING 100 11/0 $6,500,000 $76.99 Bldg [/] TOTAL $11,275,000 $134 Total GBA [/] Per Screen$ $563,750 $18.97 EMV/LA %Growth 0% G:\SPREDSHT\Assessor\2012 CIA\[Theater.xlsx]Theater 2011 Page 1 City of Brooklyn Center PID: 36-119-2142-0021 Property Type: C-Commercial Commercial Field Card Property Address: 6420 Camden Ave N Zoning: PUD/C2 Lot/Block: 003/001 Addition: Regal Road Development 2nd Addition Owner(s): Regal Cinemas Inc Printed: 4/27/2012 District: Assessment Year: 2012 Neighborhood: 0011 Project(s): Version: I Watershed: 15 Building: 1 School District: 0286 Land Building Detail Basement Income Information Zoning: PUD/C2 Name: Regal Theater(also13-0120) Basement Basics Gross Income: Area Rating: Very Good Quality Area(SgFt): Vacancy Percent: Site Rating: Good Partial Construction(/o o ): Basement Area Percent: Effective Gross Income: Land Quality: A01-Land Overall uali Bsmt.Use Code: _ Operating Expense: Contamination: Q ty" Net Income: Flood Plain Map Ref: Architectural Appeal: Very Good Bsmt.Use Code Suffix: Capitalization Rate: PUD Ref: Construction Quality: Good/Average Elevator(s):s Rent/Square Feet: Excess Land(SgFt): Gross Rent Multiplier: Construction Type: Masonry Allowable Units: Mechanical Building Condition: Good Security Electrical Service: n'System- N Zoning Variance: N Walls and Roof Plumbing: Last Sale Frontage: Primary Exterior Walls: Other Sprinkler Type/Percent: Wet/100 `- Left Side: Date: 02/01/2000 Secondary Exterior Walls: Heating (Type/Percent) Rear Side Roof Construction: Steel Price: $5,973,845 Right Side: Roof Type: Flat Heating 1: Package Unit/100 Code: 99 Effective Width: Roof Cover: Rubber Membrane Heating 2: / Desc: Conversion-X Sales Effective Depth: Use Codes Type Suffix % Heating 3: / Effective Water: 0 Air Cond. (Type/Percent) Last Inspection Property Code 1: 380-Theatre,Cinema p m,Area(S q Ft): 390,781 100 A/C 1: Package/100 Appraiser ID: 11 Acreage: 8.97 Code 2: - 0 A/C 2: / Appraisal Date: 04/20/2012 Park: Code 3: 0 A/C 3: / Reason: Appeal Park Quality: Code 4• 0 Totals Result: Interior On Lake: Lake Quality: Depreciation and Age Building Areas Current Inspection On River: Functional%: Actual Age: 1999 First Floor Area: 84,430 River Quality: Economic%: Effective Age: 1999 Gross Building Area: 89,410 Appraiser ID: Landscape Quality: Physical%: Renovated Age: Net Rentable Area: 89,410 Appraisal Date: Building Miscellaneous Attributes Mezzanine Area: Buried Electric Garages and Parking Total Floor Area: 89,410 Reason: Curbs Type Spaces Area Rental$ Gas Type 1• Parking-Surface 1,120 Building Ratios and Perimeter Result: Gutter Land Building Percent: 437.1 Type 2: Floor Area Percent: 22.9 Left Tag: Yes/No Paved Street Type 3: Perimeter Length: Sewer Available Flat Value Water Available Type 4: Office Area: Type 5: Gross Office Area Percent: Value: yp Net Office Area Percent: Desc: Pools Number Type Comments Influences 4,478 SEAT 20 SCREEN STADIUM STYLE MOVIE THEATER 20 YEAR LEASE,BLDG COSTS ABOVE $7,650,000 PAID BY TENANT I OPENED FOR BUSINESS 9-14-00.9 ENTRY DOORS/EXTERIOR AUTO TICKET AGENT.ASBS EXTERIOR W/DECO BLOCK TRIM.ONE INTERIOR STAIRWELL TO 2ND FLOOR Building Heights PROJECTER AREA. Average Story Height: 30.0 Number of Stories: 1.0 Average Clearance Height: Finished Ceiling Height: Miscellaneous Income/Lease: Tenant: City of Brooklyn Center PID: 36-119-21-42-0021 Property Type: C-Commercial Commercial Field Card Property Address: 6420 Camden Ave N Zoning: PUD/C2 Lot/Block: 003/001 Addition: Regal Road Development 2nd Addition Owner(s): Regal Cinemas Inc Printed: 4/27/2012 District: Assessment Year: 2012 Neighborhood: 0011 Project(s): Version: I Watershed: 15 Building: 1 School District: 0286 I -- - No Sketch Available Report Name: Taxpayer Inquiry City of Brooklyn Center Printed:4/27/2012 Page: 1 Taxpayer Inquiry Display PID House Nbr Street Name Unit Zia Code 36-119-21-13-0120 55430 Last Name First Name Ml Owner Taxpayer Resident Regal Cinemas Inc Y Y N Frontage Left Side Rear Side Right Side Eff.Width Eff. Depth Property Area Acreage Zoning P/S Exempt Code School Dist Watershed Yr Built 0 0 0 0 0 0 203,670 4.67 PUD/C 0011 15 Year Ver #Subs Land Value Bldg Value Mach Value Tot Mkt Value Tax Call Hmstd Midyr Rel H P/T %Own P/C 2012 1 1 1,489,400 0 0 1,489,400 29,788 N N N LC 0 N 2011 1 1 1,489,400 0 0 1,489,400 29,788 N N N LC 0 N 2010 1 1 1,489,400 0 0 1,489,400 29,788 N N N LC 0 N Lot: 003 Block: 001 Addition: Regal Road Development 2nd Addition THAT PART OF LOT 3 BLOCK 1 EMBRACED WITHIN GOVT LOT 2 S 36 T 119 R 21. No Photo Available This page was intentionally left blank CITY OF BROOKLYN CENTER LOCAL BOARD OF APPEAL AND EQUALIZATION 2012 Assessment APPLICATION FOR APPEAL March 23, 2012 through April 18, 2012 You must return this application-by April 18, 2012, to be placed on the Agenda for the Local Board of Appeal and Equalization held April 30, 2012 at 7:00 P.M. Names) S"o i Daytime Contact Number: 612- � Property Address 0 X-e rx-es Avc 1U0 Property Identification Number ] f r 2, Assessor's 2012 Estimated Market Value i*j 0 j 00 0 Is your property residential, commercial or multi-family? An `w c.j`o- j If you are appealing a commercial, multi-family or residential rental property you must include income and expense data for calendar year 2011 with your application. What is the reason you are appealing your 2012 assessment? I r ��/ ��� �, •�-►:- �c�.irl'� 1"'E� ^ + � � . 1 P�l.tp ®��'e.�,Q ri i � •'-�Z1Y 1 / � �` i ill�1 � Ct 1 `J d � r rood ru® r �, rt ® I� bJ1.r !Ct i �►�s' hen d Id purchase your horde? .F►n&,",c i CL If Date of Purchase 6! ^ 2- 0c) _, - Purchase Price 9b , o n 0 Did you purchase your property from a bank, as a foreclosure or short sale? y a Has your property physically changed since the purchase? (maintenance, upgrades, re' )modeling or structural damage) Please list a brief(description below with an (estimated cost. r r Gt'f ` t `-4 L Cy r 7L :rj Q Acc G lkk c� -�'�a ,��e�.m-l� i n c' /a '�.� 1'70.�''r"� -1 Have you had a recent appraisal for refinancfng, a purchase agrdement or a�markefa�alysis by a real estate agent completed within the last year? (�YDes o r No If so, what was the determination of value?}� k eo K f r) 1(!55 550 r 4,q5- -/D look- -( � r et &4, d e-cc : fCe,1-tee oc If What do you think the market value of your property sh uld be? ,J, /i-C-CA-e Please provide any documentation supporting your claim of overvaluation or erroneous classification with this application. i Dear Council Members: I am writing this to you to look closer at the valuation for the property address as 5810 Xerxes Ave No., with a PID of 02-118-21-23-0022. I believe this building is overvalued in comparison to some of the other multi-tenant retail facilities within the city. Attached are some of the properties I have identified as comparables.These buildings have more land and are mostly bigger in size or relatively around the same square footage as my parents. On the Valuation Notice Page, I highlighted the price range of the 5 comps compared the subject property. At the lowest end of the price range is Comp#2 at$9.67 psf. The higher end is Comp #5 at$18.12 psf.The SUBJECT PROPERTY is at$22.25. If you use these range in numbers,that would value the Subject Property within the range of$806,700.00-$1,058,500.00, with an average of $$819,100.00 Since my parents bought this building,their rental income has decrease significantly mainly due to the tough economy. Due to the high maintenance cost to upkeep the building they have done a lot of the work themselves if they can to keep the cost down. The estimated net operating income is roughly around$90,000 annually. IF you were to list this building at a cap rate of 8%during good times the value would show for$1,125,000.00 In today's market,where investors are looking at more of at least 10%on their return,that values the building at$900,000.00. A friend of mine,who is an assessor at Hennepin County stopped by over a month ago to do a quick walk through gave me his opinion of the value after looking at some of the other properties within the city that he considered as good comparables. His opinion was$900,000-$1,100,000.00 Overall, I don't believe the value of the subject property is in the in the range of$800k-$900K. In my opinion the value of this property is in the $1M-1$1.1M source: Hennepin County Subiec Comparable#1 Comparable#2 Comparable#3 Comparable#4 Comparable#5 P0#: 02-118-21-23-0022 02-118-21-42-0033 34-119-21-14-3006 03-118-21-44-0035 02-118-21-12-0014 02-118-21-21-00 Location: 5810 Xerxes Ave No. 2105 57th Ave No 6215 Brooklyn Blvd 5425 Xerxes Ave No 6000 Shingle Creek 5927 John Martir C assificati®n: Com' Prefered Com' Prefered Com' Prefered Com' Prefered Com' Prefered Com' Prefered Owner: Som, LLC George Zeller M & E Realty Co. Brooklyn 55 LLC Inland Shingle Creek Lin Shuang LLC 1199 Summer St c/o Welsh Co. 4210 Old Shakopee c/o Welsh Co. P.O. Box 9275 5927 John Martir Roseville, MN 55113 4350 Baker Rd Ste 400 Bloomington, Mn 55437 4350 Baker Rd Ste 400 Oak Brook, IL 60521 Tonka, MN 55343 Tonka, MN 55343 Lana Qacres): 1.34 1.68 2.19 3.24 1.6 1.36 �sq.ft.): 58,423 73,150 95,392 141,198 69,861 59,060 B06i ng; sq.ft.): 14,500 2(321 Market Vzz aue: $ 1,300,000.00 $ 1,010,000.00 $ 922,100.00 $ 1,600,000.00 $ 1,200,000.00 $ 1,070,000.00 Land: $ 500,000.00 $ 655,000.00 $ 765,000.00 $ 1,200,000.00 $ 650,000.00 $ 535,000.00 BuiUng: $ 800,000.00 $ 355,000.00 $ 157,100.00 $ 400,000.00 $ 550,000.00 $ 5,350,000.00 Tax: $ 57,752.22 $ 44,180.92 $ 37,636.12 $ 72,112.60 $ 52,821.02 $ 45,243.96 ,assessment: $ 2,493.83 $ 1,586.33 $ - $ 3,751.95 $ 294.87 $ - MV Overall (psf): $ 22.25 $ 13.81 $ 9.67 $ 11.33 $ 17.18 $ 18.12 Lace �psf): $ 836 $ 8.95 $ 8.02 $ 8.50 $ 9.30 $ 9.06 Eua Ung(psf): $ 55.17 2(D a2 Market Value $ 1,370,000.00 $ 1,090,000.00 $ 922,100.00 $ 1,600,000.00 $ 1,220,000.00 $ 1,050,000.00 Increase $70,000.00 Increase $80,0000.00 Same Same Increase $20,000.00 ease$20,000.00 OPINION OF VALUE Value(lowest) $ 806,660.70 Value(highest) $ 1,058,459.36 Value (avg) $ 819,083.62 $ 14.02 Som, UI 581U Xerxes Ave N Brooklyn Center, MNSS43O Income: Rental 181,200.00 $ 181,20Q,00 Expense: Property Tax $ 54,290.98 Management A 12,000.00 Parking lot 1'800.00 Insurance $ 4,500.00 Trash $ 3,413.32 Water $ 2,848.49 Gas $ 4,039.29 Electric $ 2,718.35 Snow Plow $ 2,500.00 Drain Cleaning $ 1,500.00 MiscExpenses $ 93,208.97 NOi 87,991.03 CITY OF BROOKLYN CENTER LOCAL BOARD OF APPEAL AND EQUALIZATION 2012 Assessment APPLICATION FOR APPEAL March 23, 2012 through April 18, 20,12 You must return this application by April 18, 2012, to be placed on the Agenda for the Local Board of Appeal and Equalization held April 30, 2012 at 7:00 P.M. Name(s) C, Daytime Contact Number: Property Address 6", /4/1 A-) Property Identification Number oo Assessor's 2012 Estimated Market Value 0,)D` oo,--) Is your property residential, commercial or multi-family? 6)VA1f'ACl`(, (J If you are appealing a commercial, multi-family or residential rental property you must include income and expense data for calendar year 2011 will)your application. What is the reason you are appealing your 2012 assessment? Cc/mac/ Ca , r t h NQ c-4 akA tic v),\ �s Q AjA, (-,\I r I ..1 m_ 0',35 Ao IOP14-y Vf40CVkC)4 . U LA 0", revvv\ When did you purchase your home? Date of Purchase Purchase Price Did you purchase your property from a bank, as a foreclosure or short sale? Has your property physically changed since the purchase? (maintenance, upgrades, remodeling or structural damage) Please list a brief description below with an estimated cost. J- mprO ecmc-l� re. m(X4 e. r 0 J,,PA C 4 C,f- -jr,) cic,40-1- r 6-[Cr�, Have you had a recent appraisal for refinancing, a purchase agreement or a market analysis by a real estate agent completed within the last year? Yes or N 0- If so, what was the determination of value? What do you think the market value of your property should be? Please provide any documentation supporting your claim of overvaluation or erroneous classification with this application. EXCELSIOR. >° The Excelsior Group City of Brooklyn Center Local Board of Appeal and Equalization Attn: Nancy Wojcik 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 RE: Valuation Appeal—Americlnn Brooklyn Center, 2050 Freeway Boulevard, Brooklyn Center, MN Local Board of Appeal and Equalization, Below and attached you will find some analysis and documentation for our appeal of property valuation for the Americlnn at 2050 Freeway Blvd., Brooklyn Center, MN. We acquired the property through a Deed-in-Lieu of Foreclosure earlier this year. The property has not been able to service its debt for several years and is in need of improvement to remain a functioning Americhin. Attached is the financial information that we have for 2011 from previous owner, We only have income statement through October of 2011. o The property was no longer servicing its debt at that point. Net income for the year at end of October was$99,000. Adding back interest(loan and mortgage expense for the year of$59,000 gets an NO[ of $158,000. Capping the NOI at 12%cap rate, which is a market cap for an Americlnn in similar markets,gets a valuation of$1,316,666. Other hotels in the immediate area are valued at less per room than the Americlnn and many of them have larger sites and land area than the Americlnn. • The Super 8 is valued at$19,300 per room and has a land area of 2.43 acres • The Days Inn is valued $20,219 per room and has a land area of 2.1 acres • The Crowne Plaza is valued at$18,954 per roorn and has a land area of 6.37 acres • Our Americlnn is valued at$21,746 per room and has a land area of 1.81 acres Due to the financial condition of the prior owner, the property is in need of significant repairs and improvements to remain a functioning Americlnn. So far we have replaced 3 industrial sized hot water heaters, one elevator, and replaced 10 non function PTAC units. The roof also is in need of replacement. The new ownership group has spent approximately$50,000 to date of these items and estimate another$200,000 worth of improvements that are needed including the roof to stabilize the property. Due to the above income information,the comparable hotels in the area, and the condition of the property we believe a realistic value for the property is$1,500,000 or$18,000 per room. This would be in line with the other hotels in the area and reflect the substantial investment needed to continue to operate the hotel and make it profitable. We hope you will consider the above in your analysis of the property. I am available to discuss at (612)353-3316. Pt10NE 6 n-353-3300 :' FAX 611-3533-3 3 2 9 11455 VIKING DItIV[,SUITE 3 50 •: EDEN PRA IItIL,,IrN SS3q} i Sincerely, is Chris Kennelly Vice President Brooklyn Center Hospitality, LLC 11455 Viking Drive,Suite 350 Eden Prairie, MN 55344