FSI Appraisal Westhampton Road, Kensington Estates, Northampton 06-2016.pdf
APPRAISAL REPORT
of
Kensington Estates
Westhampton and Glendale Roads
Northampton, Massachusetts
EFFECTIVE DATE
June 16th, 2016
PREPARED FOR
City of Northampton
PREPARED BY
Stephen A. Brunelle, MA CGREA #233
Gary L. Aldrich, MA CGREA #75488
June 24, 2016
Wayne Feiden, FAICP
Director of Planning and Sustainability
City of Northampton
210 Main Street, Room 11
Northampton, MA 01060
RE: Assessors’ Reference: Map 41, Parcel 032
Northampton, MA 01060
Dear Mr. Feiden:
We have prepared the attached Appraisal Report for the purpose of offering an opinion of the “as
is” Market Value of the fee simple interest for 53.1-acres of land with frontage along Westhampton
Road and Glendale Road, Northampton, Massachusetts, as of June 16th, 2016, the date of the last
inspection.
A Final Subdivision Plan Approval was granted by the planning board in May 2012 for a
residential development to be located off Westhampton Road called Kensington Estates. The
subdivision consists of 55.3-acres. According to the plan there are twenty-four proposed residential
building lots with the construction of 1,751 linear feet of interior roadway. The lots vary in size
from 14,300 to 38,283 square feet with the vast majority of the lots in the 17,000 to 26,000 square
foot range. The property is located in the RR-Rural Residence Zoning District, which requires a
minimum of 80,000 square feet for a building lot. In addition, the property is in the WS-Watershed
Protection Overlay District and the WSP-Water Supply Protection Overlay District. An Open
Space Residential Development allows for 10,000 square foot lots with 85-feet of frontage as long
as at least fifty (50) percent of the total tract area, of which at least seventy-five (75) percent shall
be neither wetlands nor floodplains, shall be set aside as Common Open Space with no buildings
allowed. As of the writing of this report (June 2016), no work has been done on the marketing or
development of this project.
Of the 55.3-acres of land, the City of Northampton has an option to purchase 53.1-acres, which
makes up twenty-one of the twenty-four approved building lots and is the subject of this Appraisal
Report.
Page | 2
Kensington Estates, Northampton, MA 06-2016
The purpose of this Appraisal is to offer an opinion of the Market Value for the subject parcel.
This Appraisal was performed in accordance with the Uniform Standards of Professional
Appraisal Practices (USPAP) and the Commonwealth of Massachusetts Executive Office of
Energy & Environmental Affairs (EOEEA), Department of Environmental Protection Grant
Program in formulating the value conclusions contained within this Appraisal Report.
This is an Appraisal Report, which is intended to comply with the reporting requirements set
forth under Standards Rule 2-2 (a) of the Uniform Standards of Professional Appraisal Practices
for an Appraisal Report. As such, it presents summary discussions of the data, reasoning and
analysis that were used in the Appraisal Process in order to develop the appraisers’ opinion of
value. Some of the supporting documentation concerning the data, reasoning and analyses is
retained in the appraisers’ file. The depth of discussion contained in this report is specific to the
needs of the client. The appraisers are not responsible for unauthorized use of this report.
INTENDED USE OF THIS REPORT
This Appraisal is intended to assist the client, the City of Northampton, with an opinion of Market
Value for funding the purchase of the land being appraised by the Commonwealth of
Massachusetts Executive Office of Energy & Environmental Affairs (EOEEA), Department of
Environmental Protection Grant Program.
In the scope of this Appraisal we researched all relevant land sales within the City of Northampton
and the surrounding Market Area and were able to locate adequate, comparable sales of
unimproved land from which to develop the Sales Comparison Approach. The Income
Approach to Value and Cost Approach to Value were not considered because the subject is
vacant land, which is not conducive to either approach. This included an in-depth analysis of the
Highest and Best Use for the subject.
Page | 3
Kensington Estates, Northampton, MA 06-2016
It is our opinion that the “as is” Market Value of the fee simple interest for the 53.1-acres of land
as of June 16th, 2016 is:
FOUR HUNDRED FIFTY THOUSAND DOLLARS
( $450,000 )
Respectfully submitted,
___________________________
Stephen A. Brunelle
MA Certified General R. E. Appraiser
License #233, Expires 10/20/2017
__________________________
Gary L. Aldrich
MA Certified General Real Estate Appraiser
License #75488, Expires 05/14/2018
SAB/GLA/cvb
Page | 4
Kensington Estates, Northampton, MA 06-2016
TABLE OF CONTENTS
Letter of Transmittal, Intended Use ...........................................................................1-3
Table of Contents .......................................................................................................4
Executive Summary ...................................................................................................5-6
Certificate of Value, Certification, Limiting Conditions ...........................................7-12
Identification of Real Estate .......................................................................................13
Taxes, Transfer History, Intended Use, Effective Date, Exposure Time ..................14-15
Definition of Market Value, Appraisal Process .........................................................16-17
State Economic Summary, Market and Area Analysis ..............................................18-34
Site Description, Subject Photographs .......................................................................35-37
Factors Affecting Use ................................................................................................38-40
Highest and Best Use .................................................................................................41-42
Methods of Approach to Value, Valuation of the Subject .........................................43-44
The Sales Comparison Approach to Value ................................................................45-55
Cost of Development Method ....................................................................................56-75
Reconciliation and Final Value of Opinion ...............................................................76
Addenda .....................................................................................................................77
Page | 5
Kensington Estates, Northampton, MA 06-2016
EXECUTIVE SUMMARY
OWNERS: JPST, LLC.
PROPERTY LOCATION: Kensington Estates
Westhampton Road and Glendale Road,
Northampton, MA
TITLE REFERENCE: Hampshire County Registry of Deeds
Parcel Id. Location Grantor Date Legal Reference
41-032-001 Westhampton Road Morton Pickman 11/15/2010 Book 10371, Page 154
PROPERTY RIGHTS APPRAISED: Fee Simple Interest
DATE OF VALUATION: June 16, 2016
SITE AREA: 53.1-acres
FRONTAGE: According to the development plan 1,751 linear feet
of roadway will run between Westhampton Road and
Glendale Road
HAZARDOUS WASTE: None Assumed
ZONING: The subject is located in the RR-Rural Residence
Zoning District, the WS-Watershed Protection
Overlay District and the WSP-Water Supply
Protection Overlay District.
FLOOD ZONE: Zone C-FEMA Map 250167-0001-A
IMPROVEMENTS: None
CURRENT USE: Vacant Land
HIGHEST AND BEST USE
AS IF VACANT: Recreational with future residential development
potential
ASSESSORS’ REFERENCE: Assessors’ Reference: Map 41, Parcel 032
Page | 6
Kensington Estates, Northampton, MA 06-2016
TOTAL ASSESSED VALUE (FY 16): $359,300
OPINION OF MARKET VALUE: $450,000
ESTIMATE OF MARKETING
TIME: Twelve-months
APPRAISER: Stephen A. Brunelle
MA Certified General Appraiser
License #233, Expire 10/20/2017
APPRAISER: Gary L. Aldrich
MA Certified General Appraiser
License #75488, Expire 05/14/2018
Page | 7
Kensington Estates, Northampton, MA 06-2016
Owner(s): JPST, LLC
Address/Location of Property: Westhampton Road and Glendale Road, Northampton , MA
CERTIFICATE OF VALUE
I, Gary L. Aldrich HEREBY CERTIFY THE FOLLOWING: THAT ON June 16th, 2016, I
PERSONALLY MADE A FIELD INSPECTION OF THE PROPERTY HEREIN APPRAISED;
THE OWNER AND THE CLIENTS WERE PROVIDED AN OPPORTUNITY TO ACCOMPANY
THE APPRAISER BUT DECLINED.
That, to the best of my knowledge and belief, the statements contained in the Appraisal here set
forth are true and the information upon which the opinions expressed herein are based, is
correct, subject to the Limiting Conditions therein set forth;
That, I understand that such an Appraisal may be used in connection with the acquisition of the
subject parcel by The City of Northampton, Massachusetts;
That such Appraisal has been made in conformity with the appropriate state laws, regulations,
policies, specifications and procedures;
That, neither my employment nor my compensation for making this Appraisal Report is in any
way contingent upon the values reported herein;
That, I have no direct or indirect, present or contemplated future personal interest in said
properties or in any benefit from the acquisition of said properties appraised; and
That, I have not revealed the findings and results of said Appraisal to anyone other than the
proper officials of The City of Northampton and, I will not do so until so authorized by the city or
until I am required to do so by due process of law or until I am released from this obligation by
having publicly testified in a court of law as to such findings; and
Page | 8
Kensington Estates, Northampton, MA 06-2016
THAT, MY OPINION(S) OF THE VALUE FOR THE PARCEL AFFECTED BY THE
PROPOSED ACQUISITION, AS OF THE 16th day of June, 2016 is:
$450,000 for the 53.1-acres of land and buildings (if any) thereon for Map 41, Parcel 32
Northampton, Massachusetts;
THE CONCLUSIONS SET FORTH IN THIS APPRAISAL ARE BASED ON THE EXERCISE
OF MY INDEPENDENT, PROFESSIONAL JUDGEMENT.
June 24th, 2016
DATE:_____________________ SIGNATURE:___________________________
Gary L. Aldrich
MA Certified General Appraiser
License #75488, Expires 5/14/2018
Page | 9
Kensington Estates, Northampton, MA 06-2016
CERTIFICATION
We, Stephen A. Brunelle and Gary L. Aldrich certify that to the best of our knowledge and belief
that:
The facts and data reported and used in the valuation process are true and correct;
The reported analyses, opinion and conclusions are limited only by the reported Assumptions
and Limiting Conditions and are our personal, unbiased professional analyses and conclusions;
We have no present or prospective interest in the property that is the subject of this report and we
have no personal interest or bias with respect to the parties involved;
The value opinion found within was not based on a requested minimum valuation, a specific
valuation or the approval of a loan;
Our compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value that favors the cause of the client, the
amount of the value opinion, the attainment of a stipulated result or the occurrence of a
subsequent event directly related to the intended use of this Appraisal;
Our analyses, opinions and conclusions were developed and this report has been prepared in
accordance with the requirements of the Code of Professional Ethics and Standards of
Professional Practices of the Appraisal Institute and the Uniform Standards of Professional
Appraisal Practices (USPAP) as adopted by the Appraisal Standards Board of the Appraisal
Foundation;
Appraiser, Gary L. Aldrich, personally inspected the property that is the subject of this report;
Stephen A. Brunelle contributed in the research, analysis and writing of the report;
Page | 10
Kensington Estates, Northampton, MA 06-2016
No one provided significant professional assistance to the person(s) signing this report.
The appraisers have not performed services regarding the subject parcel within the prior three-
years as appraisers or in any other capacity.
Respectfully submitted,
___________________________
Stephen A. Brunelle
MA Certified General R. E. Appraiser
License #233, Expires 10/20/2017
__________________________
Gary L. Aldrich
MA Certified General Real Estate Appraiser
License #75488, Expires 05/14/2018
Page | 11
Kensington Estates, Northampton, MA 06-2016
STATEMENT OF GENERAL AND LIMITING CONDITIONS
This report has been prepared under the following Assumptions and Limiting Conditions:
1. Information furnished by others is assumed to be true, factually correct and reliable. No effort
has been made to verify such information and no responsibility for its accuracy is assumed by the
appraiser. Should there be any material error in the Assumptions within this report the results of
this report are subject to review and revision.
2. All mortgages, liens and encumbrances (except lease documents) have been disregarded unless
so specified within this report. The subject property is analyzed as though under responsible
ownership and competent management. It is assumed in this analysis that there were no hidden
or apparent conditions at the property’s subsoil or structures, which would render it more or less
valuable. No responsibility is assumed for such conditions or for engineering, which may be
required to discover them. No responsibility is assumed for legal matters existing or pending nor
is opinion rendered as to title, which is assumed to be good.
3. It is assumed that there is full compliance with all applicable federal, state and local
environmental regulations and laws unless non-compliance is noted.
4. It is assumed that all applicable zoning and use regulations have been complied with, unless a
non-conformity has been stated, defined and considered in the analysis.
5. It is assumed that all licenses, consents or other legislative or administrative authorities from any
local, state or national government or private entity or organization have been or can be obtained
or renewed for any use on which the value estimate contained in this report is based on.
6. Possession of this report or a copy thereof does not carry with it the right of publication.
7. The appraisers assume that there is no hazardous waste contaminating the sub-soils. The
appraisers are not qualified to detect such substances on the site or to value the affects of such
substances on the value of the property.
8. Unless prior arrangements have been made, the appraisers, by reason of this report, are not
required to give further consultation or testimony or to be in attendance in court with reference to
the property that is the subject of this report.
Page | 12
Kensington Estates, Northampton, MA 06-2016
9. The conclusions apply only to the property specifically identified and described herein.
10. The appraisers have made no legal survey nor have they commissioned one to be prepared.
Therefore, references to a sketch, plat, diagram or previous survey appearing in this report is
only for the purpose of assisting the reader to visualize the property.
11. The person(s) signing this Appraisal are fully qualified appraisers who have been involved in
the valuation and/or review of many similar properties. The education and experience in valuing
and reviewing similar properties satisfies the competency provision of USPAP. The
qualifications of the appraisers are in the Addenda section of this report.
Extraordinary Assumptions or Limiting Conditions are the following: We are making the
Extraordinary Assumption that the development of nine lots is possible without the added cost
of building roads and infrastructure beyond what already exists. We are also making the
Extraordinary Assumption that the proposed nine lots would meet the minimum standards of
Title V.
Respectfully submitted,
___________________________
Stephen A. Brunelle
MA Certified General R. E. Appraiser
License #233, Expires 10/20/2017
__________________________
Gary L. Aldrich
MA Certified General Real Estate Appraiser
License #75488, Expires 05/14/2018
Page | 13
Kensington Estates, Northampton, MA 06-2016
Subject
Westhampton Road site
IDENTIFICATION OF THE REAL ESTATE
The subject is located in Northampton, MA. The City of Northampton Assessors’ Office identifies
the property as follows:
Parcel Id. Location Grantor Date Legal Reference
41-032-001 Westhampton Rd. Morton Pickman 11/15/2010 Book 10371, Page 154
Page | 14
Kensington Estates, Northampton, MA 06-2016
Assessors’/Zoning Map
REAL ESTATE TAXES
According to the Northampton Tax Assessors’ Office the subject’s total assessment for FY 2016 is
$359,300. The FY 2016 tax rate for the city is $16.16. In addition, there is a Community
Preservation Act (CPA) tax assessed to all properties. The rate is 3% of the assessed value less
$100,000 on residential properties the full assessment on commercial properties. According to the
Northampton Tax Collector’s Office there are no back taxes owed on the subject parcel.
Parcel Id. Location Assessed Tax Rate Tax round CPA Asmt Total Tax
41-032-001 Westhampton Road $359,300 $16.16 $5,806 $126 $5,932
TRANSFER HISTORY
JPST, LLC acquired the subject parcel from Morton Pickman via Indenture Deed on November 15,
2010 for $10.00 consideration. This transaction is recorded in the Hampshire County Registry of
Deeds Book 10371, Page 154. The property has not transferred within the prior three-years.
According to our client, the City of Northampton has an option to purchase from JPST, LLC 53.1-
acres of the total 55.3-acres at a price of $450,000. An unexecuted copy of the option was made
available to the appraisers and a copy of the “Option for Purchase of Land” is included in the
Addenda section of this report. The property was not actively marketed for sale at the time the
agreement was made.
Page | 15
Kensington Estates, Northampton, MA 06-2016
PURPOSE AND INTENDED USE
The Purpose of the Appraisal Report is to offer an opinion of the “as is” Market Value of the fee
simple interest for the subject parcel.
The Intended Use of the Appraisal Report is to provide an opinion of the “as is” Market Value
that will assist the client, the City of Northampton, with funding the purchase from the
Commonwealth of Massachusetts Executive Office of Energy & Environmental Affairs (EOEEA),
Department of Environmental Protection Grant Program.
REAL PROPERTY INTEREST1
The property rights valued consist of the fee simple interest. Definition: Absolute ownership
unencumbered by any other interest or estate; subject only to the limitations imposed by the
governmental powers of taxation, eminent domain, police power, escheat.
EFFECTIVE DATE OF THE APPRAISAL
The Effective Date of this Appraisal Report is June 16th, 2016, the date of the last inspection.
General Assumptions and Limiting Conditions applicable to this Appraisal Report are
included within this report.
EXPOSURE PERIOD AND MARKETING TIME
Exposure Time is the estimated length of time that the property interest being appraised would
have been offered on the market prior to the Hypothetical Consummation of a sale at Market Value
on the Effective Date of the Appraisal. Exposure Time is a Retrospective opinion based on an
analysis of past events, assuming a competitive and open market.
An Exposure Time of twelve-months is estimated for the property. This is based on the Market
Value opinions developed within this report and the property being actively offered for sale by a
competent brokerage company familiar with this property type and the region.
Marketing Time is an opinion of the amount of time it might take to sell a real property interest at
the concluded Market Value level during the period immediately after the Effective Date of the
value opinion. Based on the market conditions as of June 16th, 2016, a Marketing Period of
twelve-months is considered reasonable.
1 The Dictionary of Real Estate Appraisal, fifth edition, Appraisal Institute
Page | 16
Kensington Estates, Northampton, MA 06-2016
DEFINITION OF FAIR MARKET VALUE2
“Fair Market Value shall be defined assuming use of the property in the light of the Highest and
Best Use to which the land could reasonably be put and for which the properties would be sold in
cash or on terms reasonably equivalent to cash, by a knowledgeable owner willing but not
obligated to sell to a knowledgeable purchaser who desires but is not obligated to buy.”
DESCRIPTION OF THE APPRAISAL PROCESS
The scope of work is the type and extent of research and analysis conducted in an Appraisal
assignment. The scope of work includes, but is not limited to, the extent to which the property is
identified, the extent to which the property is inspected, the type and extent of data researched and
the type and extent of analysis applied to arrive at a credible opinion or consideration.
The appraisers have completed the following investigations and analysis to determine the relevant
characteristics of the general real estate market, the subject property and the Market Value
opinions.
Scope of the Assignment:
An inspection of the subject by Gary L. Aldrich on June 16th, 2016
Research and collection of market data relating to market conditions and market
activity
A detailed review of the zoning ordinance that governs the subject property
An in-depth Market and Highest and Best Use Analysis
The development of the Sales Comparison Approach
A determination that neither the Cost Approach or Income Approach were applicable
in the valuation of the subject property, due to the fact that the property is vacant land
Arrival at a conclusion relating to a Market Value opinion and the writing of this
Appraisal Report
2 EOEA Specifications for Analytical Narrative Appraisal Reports-Dated August 1, 1995
Page | 17
Kensington Estates, Northampton, MA 06-2016
For this report, the information sources have included public records, city/town websites and
commercial data collection services. We have also consulted reports concerning real estate and
general economic conditions prepared by other professionals. We have spoken with other real estate
professionals, owners, tenants and/or management companies of other properties in the area as part
of the ongoing survey of the market that is maintained for all appraisals. We have obtained some
publicly available information from area governments, including other cities, counties and the State
of Massachusetts. Regional and city data was also based in part on publicly available demographic
information. Miscellaneous data pertaining to the local real estate market was researched through
the local media. Comparable sales data was researched in the Hampshire County Registry of Deeds,
Banker and Tradesman and MLSPIN, as well as from other appraisals we have performed. A
reasonable attempt was made to confirm the comparable sales and market data with principals,
representatives, informed third parties and/or public records.
A drive-by of the comparables as well as other properties considered but not used was performed.
An inspection of the subject was made for the purpose of describing it and considering its value
relative to the comparable properties. This however, is not to be construed as a formal building or
site inspection or survey. Throughout this Appraisal, nominal dollar and square foot figures are
used. All amounts and figures are believed and assumed to be accurate, but are to be considered as
the amount stated more or less, approximately, plus or minus, as appropriate, even when not
specifically expressed as such.
All information used in the preparation of this report is believed and assumed but not guaranteed, to
be fully and completely accurate. It is assumed that the data, statistics, estimates and opinions
furnished by others is correct. Sales comparable data is assumed to be reliable. In some cases we
have received data on sales from parties not directly involved in the transactions, but whom we
believe are reliable. However, buyers and sellers and others involved in real estate transactions will
often not discuss the pertinent facts with outside parties and when they do they do not always relate
complete or totally accurate information.
Page | 18
Kensington Estates, Northampton, MA 06-2016
STATE ECONOMIC ANALYSIS SUMMARY
Economic growth in Mass. Improves in Q1,
UMass journal reports
Unemployment rate now below pre-recession low; Moderate growth expected in Q2 and Q3
Massachusetts real gross domestic
product grew at an annual rate of 2.3
percent in the first quarter of 2016
according to the MassBenchmarks
Current Economic Index, released today
by MassBenchmarks, the journal of the
Massachusetts economy published by the
UMass Donahue Institute in collaboration
with the Federal Reserve Bank of Boston.
In contrast, according to the U.S.
Department of Commerce, national real
gross domestic product grew at an annual
rate of 0.5 percent during the same period.
Recently revised data now reveal that in
2015, the state’s economy expanded at an
annual rate of 1.4 percent in the fourth quarter (1.4% for the US), 2.0 percent in the third quarter
(2.0%), 4.9 percent in the second quarter (3.9%) and 2.0 percent in the first quarter (0.6%).
The pace of economic growth in Massachusetts picked up in the first three-months of 2016 after
slowing in the second half of 2015. Although underlying indicators were mixed, both
employment and earnings recorded strong growth and the unemployment rate fell. Payroll
employment grew at a 2.0 percent annual rate in the first quarter, up from 0.7 percent in the prior
quarter. Wage and salary income, as estimated from state withholding tax revenue, expanded 5.6
percent in the first quarter, after falling 7.0 percent in the final three months of last year.
The state’s headline unemployment rate – the so-called U-3 measure – stood at 4.4 percent in
March, down from 4.9 percent in December and down from 5.1 percent in March of 2015. The
U.S. unemployment rate in March was 5.0 percent, the same as in December and down from 5.5
percent in March of last year. The unemployment rate in Massachusetts is now lower than its
pre-recession low of 4.6 percent in 2007.
Page | 19
Kensington Estates, Northampton, MA 06-2016
But this overall strong performance continues to mask
troubling imbalances in the labor market. The broader U-6
measure of unemployment, which includes those who are
working part-time but want full-time work, as well as those
who are marginally attached to the labor force, is still
significantly above pre-recession levels. It inched down to
9.3 percent in March from 9.5 percent in December and 9.8
percent in March 2015. The U.S. rate in March was 9.8
percent, down from 9.9 percent in December and 10.9
percent in March 2015. Prior to the recession in 2007, the
U-6 reached lows of 7.1 percent in Massachusetts and 8.0
percent in the U.S.
“Spending on items subject to the state regular sales tax
declined by 6.3 percent in the first quarter, in stark contrast
to the very strong growth of 9.5 percent experienced in the
fourth quarter of 2015. Year over year, spending is up 3.5
percent,” noted Alan Clayton-Matthews, MassBenchmarks
Senior Contributing Editor and Associate Professor of
Economics and Public Policy at Northeastern University,
who compiles and analyzes the Current and Leading Indexes. “Most of the drop this quarter was
due to spending on automobiles, which slowed after expanding strongly at the end of 2015 and
also to weak spending on other taxable sales items in February.”
The Massachusetts Department of Revenue recorded weaker
bonus payouts in February, tied to stock market performance and
corporate profits. Market fear tends to dampen business
confidence and investment and a prolonged market downturn
may restrain consumer spending as well.
The MassBenchmarks Leading Economic Index suggests that the
state economy will continue to grow at a moderate pace over the
next six months, at a 3.1 percent rate in the second quarter and a
2.5 percent rate in the third quarter of this year. The factors
weighing on the state and national economic outlook have
changed little from last quarter.
One factor is the tightening labor market. As there are fewer
unemployed workers and as more baby boomers retire, it is
becoming more difficult for employers to find the workers they
need. This is reflected in historically low levels of initial unemployment claims, a sign that
employers are reacting to the tightening labor market by holding on to the workers they have.
Another factor is slower worldwide economic growth as China’s rapid pace of economic growth
has decelerated, Japan’s economy is stalled and Europe remains sluggish. A third is turmoil in
financial markets.
Page | 20
Kensington Estates, Northampton, MA 06-2016
Although volatility in stock markets in reaction to falling commodity prices has calmed, there are
remaining downside risk factors related to the fallout of weak global demand on corporate
profits.
The 10 indicators that comprise the leading
index usually do not all move in tandem.
Typically, some may indicate an
expectation of faster than average growth,
while at the same time others may indicate
an expectation of slower than average
growth. The accompanying table accounts
for the contributions of each towards faster
or slower growth than the trend of 2.9
percent. The index value is their sum.
In March, four indicators contributed to a
forecast of above-trend growth: total
nonagricultural employment, withholding
taxes, the Bloomberg stock index for
Massachusetts and construction
employment. One indicator, the unemployment rate, contributed to average-trend growth. Five
indicators contributed to below-trend growth: sales taxes, consumer confidence, the interest rate
spread between 10-year and 3-month U.S. Treasury securities, initial unemployment claims and
motor vehicle sales taxes.
In the three-month period January through March, three indicators contributed to a forecast of
above-trend growth: total nonagricultural employment, withholding taxes and construction
employment. Three indicators contributed to average-trend growth: consumer confidence, the
interest rate spread between 10-year and 3-month U.S. Treasury securities and the Bloomberg
stock index for Massachusetts. Four indicators contributed to below-trend growth: sales taxes,
the unemployment rate, initial unemployment claims and motor vehicle sales taxes.
The current and historical quarterly estimates for state domestic product growth include
adjustments for changes in productivity growth. These adjustments are estimates of the quarterly
deviations from the 1978-2014 trend in the growth of the ratio of output to employment and
output to wage and salary income.
In the first quarter of 2016, these adjustments subtracted 2.3 percentage points from
growth.
In the fourth quarter of 2015, these adjustments subtracted 2.0 percentage points from
growth.
In the third quarter of 2015, these adjustments subtracted 1.5 percentage points from
growth. In the second quarter of 2015, these adjustments subtracted 0.2 percentage points
from growth.
Page | 21
Kensington Estates, Northampton, MA 06-2016
For the forecast of state domestic product growth in the second and third quarters of this year,
productivity growth is assumed to return to the average of the last five years.3
Several recent months of the indices are revised each release. These revisions are a result of the
statistical method used to create the index, as well as revisions in the underlying indicators.
All of the indicators except interest rates refer to Massachusetts. The current index is composed
of four indicators: nonagricultural employment, withholding taxes, sales taxes and the
unemployment rate. The leading index includes these four current indicators plus the other six
(leading) indicators in the contributions table. All of the indicators are as of March, except for
interest rates and the Bloomberg stock index for Massachusetts, which are through April 22. The
MassInsight Consumer Confidence Index is released every third-month. Intervening months are
interpolated and changes in the Conference Board’s Consumer Confidence Index for the U.S. are
used to extrapolate to the current month of the index, as needed. Series measured in current
dollars or values, i.e., withholding taxes, sales taxes, the Bloomberg stock index and motor
vehicle sales taxes, are deflated by the U.S. consumer price index for all urban consumers,
excluding food and energy.
MassBenchmarks is published by the University of Massachusetts Donahue Institute in
cooperation with the Federal Reserve Bank of Boston. The Donahue Institute is the public
service, outreach and economic development unit of the University of Massachusetts Office of
the President. The Current and Leading Indexes are compiled and analyzed by Dr. Clayton-
Matthews, Associate Professor of Economics and Public Policy at Northeastern University and
released quarterly by MassBenchmarks.
3 For a description of the methodology used to construct these indices, see: Alan Clayton-Matthews and James H.
Stock, "An application of the Stock/Watson index methodology to the Massachusetts economy," Journal of Economic
and Social Measurement, vol. 25 (1998/1999), pp. 183-233.
Page | 22
Kensington Estates, Northampton, MA 06-2016
Aerial Photo
Area Analysis
Northampton is located in Hampshire County, in western Massachusetts. It is bordered to the east
by the Connecticut River and Hadley, the south by Easthampton, the west by Westhampton and the
north by Williamsburg and Hatfield. The city covers an area of 34.69 square miles. Northampton
was founded as a town in 1654 and was granted a city charter in 1883.
The cities elected officials who oversee its day to day operation are the mayor and the nine-
member city council. According to the 2010 United States Federal Census, the population of
Northampton was 28,549, a 2.1% decrease from the 2000 United States Federal Census figure of
28,978. This calculates to a density of 823 people per square mile.
According to information provided by the
Department of Housing and Community
Development, there are a total of 19,575
registered voters in Northampton, with
Democrats comprising (48.5%), Republicans
comprising (7.4%), other parties (.02%) and
unenrolled voters comprising (43.9%)
people.
Page | 23
Kensington Estates, Northampton, MA 06-2016
Additional DHCD information puts the total number of housing units at 12,405, with 11,880 of the
housing units occupied, which is a 95.8% occupancy rate. There are 508 state subsidized housing
units and 110 federally subsidized public housing units. In terms of rental assistance, there are 41
state subsidized rental units and 128 federally subsidized rental units.
Of Northampton residents, approximately 77.5% work in Hampshire County and 57% work within
their own community. Approximately 4,110 people work in Northampton who commutes from
other towns. Williamsburg, Hatfield and Easthampton supply the highest proportion of commuting
workers. Of the counties within Western Massachusetts, Hampshire County has the lowest
unemployment rate.
The Pioneer Valley Planning Commission has been the designated regional planning body for the
Pioneer Valley region, which encompasses 43 cities and towns in the Hampden and Hampshire
county areas. PVPC is the primary agency responsible for increasing communication, cooperation
and coordination among all levels of government as well as the private business and civic sectors
in order to benefit the Pioneer Valley region and to improve its residents' quality of life.
The following represents findings from the Pioneer Valley Planning Commission (PVPC) for the
City of Northampton.
Page | 24
Kensington Estates, Northampton, MA 06-2016
Page | 25
Kensington Estates, Northampton, MA 06-2016
The city offers a variety of employment opportunities. According to the Division of Employment
and Training (DET), over the past year, the labor force in Northampton has ranged from a low of
15,606 to a high of 16,089 people. The non-seasonally adjusted unemployment rate in April 2016
was reported to be 2.7% as compared to 3.4% in April 2015. This rate has been consistently lower
than the state average, which was 3.9% in April 2016 as compared to 4.7% in April 2015.
Historically, the three major employment sectors in Northampton have been government agencies
at all levels, manufacturing jobs and trade jobs.
Northampton is serviced by a good highway system. Interstate Route 91, which runs north and
south, offers access in three locations within the city. Route 9 runs east and west, connecting
Northampton with other surrounding communities and employment centers. Northampton is a
member of the Pioneer Valley Transit Authority (PVTA), which provides fixed route service and
offers para-transit services to the elderly and disabled.
The school system is regarded as one of the best in the state. There are nine schools, with grades
ranging from kindergarten to grade-twelve of high school. Smith College, one of the oldest and
most prestigious women’s colleges in the country, is located in the heart of the city. Other colleges
located less than fifteen-miles away include the University of Massachusetts, Amherst College,
Hampshire College and Mount Holyoke College.
The city provides an attractive location for retail firms, business support services and restaurants.
The Hampshire County Courthouse not only brings people into the city, but its activities
necessitate the location of professional offices and services nearby.
Page | 26
Kensington Estates, Northampton, MA 06-2016
Location Map
Market Area
The subjects’ Market Area is considered to be the southwestern section of Northampton in what
is referred to as the West Farms section of the city. The property is more specifically located off
the southerly side of Westhampton Road (Route 66), the west side of Glendale Road and north of
the Town of Easthampton and east of the Town of Westhampton. The regional landfill and
transfer station is located in proximity. Expansion of the landfill operation has had a profound
impact on the marketing of residential properties in the immediate area. During the early plans to
expand the landfill the city purchased two abutting properties of the landfill from homeowners
who were vocal opponents of its expansion.
Regarding the application for the Preliminary Subdivision Plan for Kensington Estates, in a
memorandum from the Department of Public Works to the Office of Planning and Development
dated December 9, 2009, it was stated that “The subdivision is proposed within close proximity
to the existing Northampton Sanitary Landfill and the proposed landfill expansion. Deed or
covenant language shall be required that informs each property owner of the existence of this
facility and restricts each landowner from bringing suit against the city regarding the landfill as
long as the facility is in compliance with Massachusetts DEP regulations”.
A Final Subdivision Plan Approval was granted by the planning board in May 2012 for
Kensington Estates.
Page | 27
Kensington Estates, Northampton, MA 06-2016
Besides the landfill the neighborhood is almost exclusively residential in nature with a rural
character to the surrounding landscape. The dwellings in the immediate area range from
affordable to high-end houses, with several newer, upscale developments branching off of
Westhampton Road.
Other residential development projects either approved or in the development process in
Northampton include the following:
Beaver Brook Estates, off Evergreen Road in Leeds, MA;
This project received final approval on April 9, 2008. The lots range in size from 10,000 square
feet to over an-acre. The project is sited on 68.99-acres of which 28.49-acres is to be developed
and 40.50-acres to be donated to the city as conservation land. There are twenty-five building
sites for sale for construction of single-family residential homes. Buyers obtain title to
individual, exclusively owned building sites. They also have access to the remaining 40.50-acres
of conservation land. There is pedestrian access to the protected open space as well as to Beaver
Brook and the Mill River. Each site has direct access to the Northampton Bike Path, which
allows homeowners and their children to travel by foot or by bike to Look Park, Florence,
downtown Northampton and beyond. The Leeds Elementary School is a very short walk or bike
ride from this new development.
Each building site has access to public water and public sewer. There are underground electric,
cable and telephone service connections available. Gas service is available for economical home
heating fuel. Many sites abut wooded protected areas. Every building site has potential for solar
heating and cooling opportunities. The development is underway with eleven lots reportedly sold
with the remaining lots listed for sale with asking prices ranging from $86,000 to $185,000.
Page | 28
Kensington Estates, Northampton, MA 06-2016
The Village at Hospital Hill, off Route 66, Northampton, MA;
Taken from BusinessWest.com (November 2014)
Taken from Mass Development (June 2014)
Page | 29
Kensington Estates, Northampton, MA 06-2016
Emerson Way, Off Burts Pit Road, Northampton, formerly known as The Oaks subdivision;
This development is comprised of fifty-three building lots in a cluster development. Marketing for
lots in this subdivision started in mid 2011. The lots vary in size from 9,672 to 57,941 square feet,
with the vast majority of lots in the 10,000 to 14,000 square foot range. There are forty-five (45)
single-family lots, four (4) duplex lots for affordable housing and five (5) flag lots within the
subdivision. Emerson Way is in the SR-Suburban Residence Zoning District. The Emerson Way
subdivision has access from two curb cuts off Burts Pit Road. As of this writing seventeen lots
have sold with prices ranging from $95,000 to $120,000. Taken from the Emerson Way website:
This area of Northampton is appealing to a prospective homeowner who wants to take advantage
of the benefits that the City of Northampton has to offer, while retaining the ambiance of a
wooded, rural home site. The subject’s location is also convenient to major thoroughfares, such as
Route 9, Interstate Route 91 and Routes 5 & 10 as well as points that lead west into Westhampton
and south into Easthampton.
The subjects’ Market Area, which is mostly residential in character, is currently stable and should
remain so for the foreseeable future.
According to Bankers and Tradesman the average price for lots in Northampton for 2006 through
2015 is as follows:
Year # of Lot Sales Ave Sale Price
2006 9 $134,222
2007 3 $131,667
2008 9 $150,278
2009 7 $118,571
2010 9 $119,411
2011 4 $112,458
2012 19 $84,132
2013 10 $138,065
2014
2015
15
17
$138,333
$93,559
The fifteen sales in 2015 include seven-lots sold in the Village Hill Development, which were sold to two
developers at a price of $50,000 per lot. The remaining ten-lots sold at an average price of $124,050.
Page | 30
Kensington Estates, Northampton, MA 06-2016
According to MLS Property Information System the average price for lots in Northampton for 2006
through 2015 are as follows:
Year # of Lot Sales Average Sale Price DOM
2006 6 $158,442 153
2007 7 $179,714 164
2008 5 $134,400 248
2009 4 $115,938 318
2010 9 $119,411 153
2011 8 $104,313 205
2012 12 $97,875 371
2013 6 $99,850 387
2014 13 $106,441 279
2015 6 $145,417 159
The 2015 sales in MLSPIN are reported as follows:
The 2016 sales in MLSPIN are reported as follows:
Page | 31
Kensington Estates, Northampton, MA 06-2016
According to the Warren Information Systems the median sales price for single-family homes in
Northampton is presented below. Warren Information Systems bases its statistics on any transfers
with prices greater than $1,000 and that foreclosure deeds have been excluded from these statistics.
The data suggests that the median price of single-family homes in Northampton dropped 6.69% for
the time period from 2014 through 2015 with single-family home prices increasing in 11.6% for
the period from 2011 through 2015. This is a modest increase over a five-year period when the
number of sales increased almost 39% during the same period.
Page | 32
Kensington Estates, Northampton, MA 06-2016
For the twelve-month period from April 2015 to April 2016 there was an 18.18% increase in
single-family home sales and the median price increased 62.35%. This is a positive report but may
not be a true trend indicator for the long term.
Northampton has enjoyed a reputation as an active housing market and continues to do so.
According to MLSPIN statistics, there are ninety-one active listings of single-family homes. The
average list price is $457,511 ($207.00 per square foot) with an average of one-hundred-days on
the market. The house prices range from $148,000 to $2,200,000. There are currently sixty-four
homes either under agreement or contingent, having an average list price of $392,681 with an
average marketing time of sixty-six-days.
In the past twelve-months there were two-hundred-twenty single-family home sales in
Northampton. The average list price was $354,926 ($202 per square foot) and the average sale
price was $344,386 (196.00 per square foot) with an average marketing period of one-hundred-
nine-days. In the past six-months there have been seventy-three single-family home sales. The
average list price was $363,909 ($210.00 per square foot) and the average sale price was $353,316
($202.00 per square foot) with an average of one-hundred-thirty-seven-days on the market.
Regarding vacant building lots, there are currently thirty-seven residential building lots available
through Multiple Listing Service (6.2-year supply based upon the number of sales reported in the
past twelve-months). The average list price is $166,317 with an average of five-hundred-ninety-
one-days on the market. There are five lots under agreement. Three of the lots are located in the
Emerson Way Subdivision off Burts Pit Road and across the street from the subject. The average
list price for these lots is $117,167. In the past twelve-months there were six lots sold. The average
sale price was $127,983 and the average marketing period was five-hundred-sixty-three-days.
Page | 33
Kensington Estates, Northampton, MA 06-2016
There are two current listings of large tracts of land with asking prices of $7,454 per acre and
$38,603 per acre respectively. They are as follows:
Page | 34
Kensington Estates, Northampton, MA 06-2016
These listings are not necessarily similar to the subject property but offer an alternative investment
opportunity to prospective investors and buyers of vacant land.
Page | 35
Kensington Estates, Northampton, MA 06-2016
SITE DESCRIPTION
The subject of this Appraisal is a 53.1-acre parcel of land with frontage along Glendale Road and
Westhampton Road (Route 66). This section of Route 66 completed a reconstruction project in
2010. Repaving of Glendale Road took place in November of 2006. The subject parcel has been
granted preliminary approval for the development of a twenty-four lot cluster development
offering 39.6-acres of open space. A detailed description of the site is included in a Wildlife
Habitat Evaluation report prepared by New England Environmental, Inc. dated November 14,
2008. Excerpts from this report are included in the Addenda section of this report.
A Final Subdivision Plan Approval was granted by the planning board in May 2012 for
Kensington Estates for twenty-four residential building lots with 1,751 linear feet of roadway that
is designed to run between Westhampton Road and Glendale Road. The lots vary in size from
14,300 to 38,283 square feet with the vast majority of the lots in the 17,000 to 26,000 square foot
range. The subject is located in the RR-Rural Residence Zoning District, which requires a
minimum of 80,000 square feet for a building lot. In addition, the property is in the WS-
Watershed Protection Overlay District and the WSP-Water Supply Protection Overlay District.
An Open Space Residential Development allows for 10,000 square foot lots with 85-feet of
frontage as long as at least fifty (50) percent of the total tract area, of which at least seventy-five
(75) percent shall be neither wetlands nor floodplains, shall be set aside as Common Open Space
with no buildings allowed.
The land is bordered by forested/residential land to the north and east, an active gravel pit to the
south and undeveloped forest land to the west. The site itself is a combination of woodlands
(eastern side extending to Glendale Road), scrub/shrub upland (middle section) and wetland areas
(adjacent to a small perennial stream that runs through the site from the northwestern boundary
towards the southeastern boundary). Within the wetlands it is reported that there may be pockets
that provide vernal pools. The development would be concentrated in the forested area on the
eastern side of the parcel and the scrub/shrub upland area in the middle of the property that is
bordered by wetlands on the north and south. None of the wetlands would be disturbed.
The development would require a forty-foot wide asphalt-paved public right-of-way. Utilities
would be underground and include public water, electric, telephone, gas, cable television and
internet. Amenities along the road way would include granite curbing, a greenbelt with tree
plantings and five-foot wide concrete sidewalks. On the east side of the main entrance there are
plans for a bus stop shelter.
The building sites would be serviced by a private community septic system that would be located
at the far southeast corner of the property. The DPW would not be required to maintain the
private sewer lines but instead would be maintained by the homeowners association.
Page | 36
Kensington Estates, Northampton, MA 06-2016
APPROVED DEVELOPMENT PLAN
According to the United States Department of Agriculture Soil Survey Maps the following soil
conditions exit on the parcel. This map is an approximate location of the subject parcel and is not
representative of its actual size or dimensions but rather provides a general presentation of the
soil conditions in the immediate area.
Page | 37
Kensington Estates, Northampton, MA 06-2016
SUBJECT PHOTOGRAPHS
Westhampton Road frontage Glendale Road frontage
Westhampton Road looking east Glendale Road looking south
Page | 38
Kensington Estates, Northampton, MA 06-2016
FACTORS AFFECTING THE USE OF THE PROPERTY
Three types of factors affect the development of raw land, i.e. Physical, Legal and Economic.
Physical Characteristics include wetlands, the drainage classification, structure of the soils and
topography. If city/town water and/or sewer are available, poor soil conditions or difficult
topography are less of an impediment to potential development.
It is equally important to understand the Legal and Economic constraints imposed by state and
municipal regulations and the influences of the local real estate market. Zoning, subdivision
regulations, building permits and residential lot transfers are important guidelines for determining
the Highest and Best Use for this type of property and also for gauging supply and demand.
Zoning and Subdivision Regulations
A Final Subdivision Plan Approval was granted by the planning board in May 2012 for
Kensington Estates for twenty-four residential building lots with 1,751 linear feet of roadway that
would run between Westhampton Road and Glendale Road. The lots vary in size from 14,300 to
38,283 square feet with the vast majority of the lots in the 17,000 to 26,000 square foot range.
The subject is located in the RR-Rural Residence Zoning District, which requires a minimum of
80,000 square feet for a building lot. In addition, the property is in the WS-Watershed Protection
Overlay District and the WSP-Water Supply Protection Overlay District. An Open Space
Residential Development allows for 10,000 square foot lots with 85-feet of frontage as long as at
least fifty (50) percent of the total tract area, of which at least seventy-five (75) percent shall be
neither wetlands nor floodplains, shall be set aside as Common Open Space with no buildings
allowed.
Site Plan Approval is required by the Planning Board for residential shared driveways. The
planning board may issue a special permit allowing for the reduction of the frontage
requirements when a lot is to be used solely for single-family residential purposes. The minimum
frontage requirement is 50-feet. Under Section 6.13 of the zoning regulations for Flag Lots, the
portion of the Flag Lot with less than the usual required frontage (the “Flag Pole”) may be no
deeper than 300-feet.
According to our client’s representative, Wayne Feiden, Director of Planning and Sustainability,
there is an alternative development plan “that would yield nine buildable lots with no road
required”. “Permitting would be easy because we (the Planning Board) would amend the existing
special permit to dramatically reduce the number of lots being developed”.
We were provided a development plan that shows the location of the proposed nine lots. We are
making the Extraordinary Assumption that the development of these nine lots is possible
without the added cost of building roads and infrastructure beyond what already exists.
Page | 39
Kensington Estates, Northampton, MA 06-2016
OPTION TO PURCHASE PLAN
Extraordinary Assumption : an Assumption, directly related to a specific assignment, as of the
Effective Date of the assignment results, which, if found to be false, could alter the appraiser’s
opinions or conclusions.
Extraordinary Assumptions presume as fact otherwise uncertain information about physical,
legal or economic characteristics of the subject property; or about conditions external to the
property such as market conditions or trends; or about the integrity of data used in an analysis.
Board of Health Regulations
The board of health follows the State Sanitary Code, Title V for septic systems. The Title V
regulation, in effect as of March of 1995, requires greater distances between wells and septic
systems and requires larger leach fields. The subject site has no access to public sewer, therefore
Title V regulations are a factor. We are unaware of any percolation tests having been conducted.
We are making the Extraordinary Assumption that the proposed nine lots would meet the
minimum standards of Title V.
Page | 40
Kensington Estates, Northampton, MA 06-2016
Wetland Regulations
The local conservation commission enforces the Massachusetts Wetlands Protection Act that
regulates all construction activity within 100-feet of wetlands, streams and water bodies. Permits
must be obtained for all activities including well drilling, excavations and driveways before
construction can take place. The development plan outlines wetlands areas and conditions on the
site. The proposed nine lots are located away from the designated wetland areas.
Flood Plain Data
If a property is located in a flood zone, building is not permitted. It appears that no section of the
site is located within a flood plain as identified by FEMA Map 250167-0001-A. See pertinent
flood map in the Addenda section of the report.
Flood Insurance Rate Map
Supply and Demand
As described in the Market Analysis, there appears to be a moderate to slow demand for single-
family development within Northampton at the present time with an oversupply (6.2-years) of
inventory of single-family residential building lots. This holds true as well for large undeveloped
parcels of land. It is our opinion that the addition of twenty-four lots as approved in the Kensington
Estates Development plan to the current supply would probably require an extended marketing
period and lengthen the number of marketing days beyond what currently exists. The proposed
alternate plan of nine lots without the added expense of constructing roads and infrastructure is a
more viable alternative to the approved development plan.
Page | 41
Kensington Estates, Northampton, MA 06-2016
HIGHEST AND BEST USE
Real estate is valued in terms of its Highest and Best Use. The Highest and Best Use of the land
or site, “if vacant” and available for use, may be different from the Highest and Best Use of the
improved property. This will be true when the improvements are not an appropriate use and yet
make a contribution to total property value in excess of the value of the site.
Highest and Best Use may be defined as that reasonable and probable use that will support the
highest present value as of the date of the Appraisal. Alternatively, it is the most profitable, likely
use to which a property may be put; it may be measured in terms of the present worth of the
highest net return that the property may be expected to produce over a stipulated long-range period
of time.
The Highest and Best Use is that use from among one or more proposed uses that has been found
to be legally permissible, physically possible, appropriately supported and financially feasible that
is expected to generate the highest rate of net return over a given income forecast period at the time
the decision is made.
The appraisers must estimate the highest, best and most probable use for the property with its
existing improvements unless cessation of uses and/or demolition of existing improvements appear
necessary.
Although the public sector establishes the pool of possible uses, the imperfect market determines
the feasible uses, the probable uses and actual use. The market in terms of supply and demand also
influences which specific use or typical uses would be most needed in the market analyzed.
The Highest and Best Use of the property both “as vacant” land and “as improved” must meet
criteria that are identified and described as follows:
Physically Possible
This reflects those uses for which the subject site is physically suited. Factors such as size, shape,
terrain, availability of public utilities and soil conditions are relevant in determining a Highest and
Best Use for land “as though vacant”, since they affect its physical utility and adaptability. For
improved properties, physical characteristics such as size, design and condition of the
improvements are also analyzed.
Legally Permissible
This concerns those uses that are physically possible and permitted on the site. Legal permission
depends on public and private restrictions, zoning, building codes, environmental regulations and
any other governmental law and/or regulations that pertain to the property.
Page | 42
Kensington Estates, Northampton, MA 06-2016
Financially Feasible
This relates to an examination of alternative uses that are physically possible and legally
permissible in order to determine which will produce an income or return equal to or greater than
the amount needed to satisfy operating expenses, financial obligations and capitalization
amortization. All alternative uses anticipated to produce a positive return are regarded as
financially feasible.
Maximally Productive
Among financially feasible uses, the use that produces the highest price or value consistent with
the rate of return warranted by the market is the maximally productive use.
Subject Property “As Vacant”
In analyzing the Highest and Best Use for the subject parcel the following sources of
information were researched. (1) Northampton zoning by-laws and subdivision regulations, (2)
U.S.D.A Soil Conservation Service Soils Information, (3) Interview’s with representatives of the
applicable city departments (4) Interviews with local real estate agents, developer’s and
contractor’s (5) Field inspection for the parcel.
The subject is approximately 53.1-acres of land approved for the development of twenty-four
building lots. However, there is enough frontage for development potential for approximately
nine residential building lots as stated by Wayne Feiden, Director of Planning and Sustainability
for the city of Northampton without the cost of construction of roads and infrastructure.
That being said, there are currently thirty-seven residential building lots listed for sale in the City
of Northampton. According to MLSPIN statistics there has been an average of six lots sold per
year from 2012 through 2015. Based upon the current number of listings there is a 6.2-year
supply. The number of lots listed and sold through MLSPIN is not representative of the entire
number of building lots currently available in existing subdivisions and Form A lots scattered
throughout the city. The current level of demand is considered sluggish at best as the average
number of days on the market for the lots listed in MLSPIN is reported to be five-hundred-ninety
plus-days. By adding an additional nine building lots to an already saturated inventory would
only extend these Marketing Periods.
Based on the analysis, it is our opinion that the subjects’ Highest and Best Use is for continued
passive recreational use until such time as the inventory of residential building lots is depleted or
demand improves significantly.
Page | 43
Kensington Estates, Northampton, MA 06-2016
METHODS OF APPROACH TO VALUE
Cost Approach to Value
In the Cost Approach to Value, the purchaser/investor is assumed to consider producing through
new construction a substitute, competing property with the same utility as the property being
appraised. To estimate the present worth of the improvements it is necessary to identify the size,
condition, effective age and the estimate of Accrued Depreciation. The estimated site value is
then added to the Depreciated Value.
Sales Comparison Approach to Value
The Sales Comparison Approach to real property valuation is based on the premise that the
informed, prudent and rational purchaser will pay no more for a property than the cost of acquiring
a similar, competitive property with the same utility as of the valuation date. This approach is
predicated on the assumption that there is, in fact, an active market for the type of property being
appraised. This approach involves selecting a number of sales of similar properties that have
recently transferred on the local market. These are then adjusted to provide indications of the most
probable selling price for the subject.
Income Approach to Value
In the Income Approach to Value, the purchaser/investor assumes that the property will generate
a net income in order to support their investment and to provide them with at least a competitive
rate of return on that investment over the projected investment holding period. The emphasis in
valuing future income receipts rests in the Capitalization Process. The value of income property
is the present worth of the anticipated future net income receipts forecasted to be produced by the
property over a specified period of time. The Capitalization Technique is generally a
fundamental measurement of income property value.
Page | 44
Kensington Estates, Northampton, MA 06-2016
VALUATION OF THE SUBJECT
We have considered all three approaches to value and two of the three will be used in this
Appraisal Report.
The Cost Approach to Value will not be used in this Appraisal Report. This approach is
typically used to test the feasibility of a property that is relatively free of Accrued Depreciation or
to test the reliability of a developer’s construction cost estimates. The use of this approach calls for
an estimation of Replacement Cost New for the subject that also requires a difficult estimate of
Accrued Depreciation and Economic Obsolescence in the marketplace. The subject is vacant
land, which has limited marketable timber. As a result, the Cost Approach to Value is not
appropriate for valuation.
The Sales Comparison Approach will be used. This approach is particularly useful in the
valuation of unimproved properties, such as the subject. It is the appraisers’ opinion that the Sales
Comparison Approach to Value is an appropriate methodology for offering an opinion of Market
Value for the subject. This approach is also utilized in conjunction with the Cost of Development
Method in arriving at the value for the proposed nine residential building lots to a single
investor/buyer.
The Income Approach to Value will not be used. The property does not produce an income
stream that can be relied upon to help measure value to a typical investor. This approach results in
an indicated value for the property by determining and then applying a Capitalization Rate to the
projected Net Operating Income for the property. This is not relevant for vacant land.
Page | 45
Kensington Estates, Northampton, MA 06-2016
THE SALES COMPARISON APPROACH TO VALUE
The Sales Comparison Approach to Value is based on the premise that the informed, prudent
and rational purchaser will pay no more for a property than the cost of acquiring a similar,
competitive property with the same utility as of the valuation date. This approach is predicated on
the assumption that there is in fact, an active market for the type of property being appraised. This
approach involves selecting a number of sales of similar properties that have recently transferred
on the local market. These sales are then adjusted to provide indications of the most probable
selling price for the subject, under specified market conditions.
A summary of the data on comparable improved sales is illustrated below.
# Location Sale Date Sale Price Parcel Size # of
Potential
Lots
Sale Price/per
potential # of
lots
Sale Price/per
acre
1. Ashfield Road, Williamsburg 04/14/2011 $415,000 79.42-acres 6 $69,167 $5,225
2. Main Road, Westhampton 06/08/2012 $460,000 162.7-acres 9 $51,111 $2,827
3. Federal Street, Montague 08/09/2012 $200,000 25.5-acres 5 $40,000 $7,843
4. Pleasant Street, Southampton 12/07/2012 $750,000 87.33-acres 13 $57,692 $8,588
5. Strong Road, Southampton 04/02/2013 $600,000 31.28-acres 15 $40,000 $19,182
6. Moosebrook Road, Southampton 01/27/2014 $100,000 13.54-acres 2 $50,000 $7,385
7. Franklin Street, Belchertown 10/30/2015 $445,000 67.97-acres 24 $18,542 $6,547
Page | 46
Kensington Estates, Northampton, MA 06-2016
Comparable Sale #1 is located along Ashfield Road, Williamsburg, MA. This property is
located along the easterly side of Ashfield Road, just north of the Hemenway Road intersection.
This 79.42-acre tract of land has roughly 2,000-feet of road frontage and is rolling elevated
woodlands. There was an abandoned single-family house and barn on the site. The barn was in
functional condition. There is a brook that bisects the parcel but there is sufficient road frontage
and upland area for the development of multiple Form A lots. Ashfield Road is a paved public
road. Besides electric and telephone there is no public services in this section of the town. After the
sale the grantee demolished the house and subdivided the parcel into five Form A lots leaving one
large 53.5-acre parcel that could be subdivided further. The property was originally listed for sale
in MLSPIN #71165682 on November 24, 2010 with an asking price of $499,000.
The property was purchased by Antonio Rizos and Efthimios Rizos from Ramon P. Carando for
$415,000 consideration on April 14, 2011 via Warranty Deed. This transaction is recorded in the
Hampshire County Registry of Deeds in Book 10525, Page 93. The prior sale occurred more than
three-years ago.
Page | 47
Kensington Estates, Northampton, MA 06-2016
Comparable Sale #2 is located along Main Road (Route 66), Westhampton, MA. This
property consists of a nine lot residential subdivision on 162.7-acres of land located along Main
Road in Westhampton and Huntington, MA. According to the site map the parcel has
approximately 1,349.22-feet of road frontage. The majority of the land is located in the AR-
Agricultural/Residential Zoning District. The site was approved for a nine lot residential
subdivision known as Blueberry Hills in 2007. The lots range in size from 5-acres to 36.18-acres
with several of the parcels having panoramic views of the surrounding valley. The subdivision is a
parcel of land that is irregularly shaped and consists basically of a large piece of wooded land that
goes back almost directly southeast from the Main Road frontage and then jogs east. The land
provides a gradual slope up from the street and then plateaus at the point of a cul-de-sac.
According to the prior developer there was a number of successful percolation tests conducted on
the nine individual sites. At the time of the sale roughly one-third of the site development costs had
been completed.
The property transferred from Mt. Tom Properties, LLC to Blueberry Hills, LLC for $460,000
consideration on June 8, 2012 via Quitclaim Deed. This transaction is recorded in the Hampshire
County Registry of Deeds in Book 10934, Page 119. The prior transfer was a Deed in Lieu of
Foreclosure dated September 20, 2011 and recorded in Book 10668, Page 20. The prior sale
occurred more than three-years ago.
Page | 48
Kensington Estates, Northampton, MA 06-2016
Comparable Sale #3 is located along Federal Street (Route 63), Montague, MA. This parcel is
located along the easterly side of Federal Street and southerly side of Ripley Road in Montague,
MA. The property is zoned RB-Rural Business and allows for residential and/or many business
uses or up to a four-unit condominium or multi-family development. This 25.5-acre parcel has
approximately 2,000-feet of frontage on two roads, which may allow for up to five ANR lots. The
land offers both open fields and woodlands. The property is located one-mile from Montague
Center and is a ten-minute drive to Amherst. There is no public water or sewer available to the site.
The property was listed for sale (MLSPIN #71379793) on May 8, 2012 with an asking price of
$200,000.
The property sold from Gerri Cote, Personal Representative of the Estate of Joyce A. Cote, a/k/a
Joyce Cote to Duane E. Jenks, Trustee of the Jenks Investment Trust for $200,000 on August 9,
2012 via Fiduciary Deed. This transaction is recorded in the Franklin County Registry of Deeds in
Book 6233, Page 129. The prior sale occurred more than three-years ago.
Page | 49
Kensington Estates, Northampton, MA 06-2016
Comparable Sale #4 is located along Pleasant Street, Southampton, MA. This parcel is
comprised of approximately 87.33-acres of land that is a combination of open fields and
woodlands. Approximately 16.5-acres are being farmed for the growing of hay. The land is located
in the R-R Rural Residential Zoning District. There are approximately 811.28-feet of frontage
along the westerly side of Pleasant Street. The topography varies as one heads north and west.
According to the owner some selective cutting has occurred over the past fifteen-years as part of a
forestry management plan. A brook meanders through the parcel, which is located to the north of
the open field. The brook runs east/west and empties into the Manhan River that serves as the
western boundary. The parcel extends back approximately 2,750-feet from the road. The location
of this brook appears to have very little impact on the development potential of the site. The land
was surveyed and includes three, 1.5-acre building lots that front along Pleasant Street. In June
2013 the new owners submitted a plan for the development of a ten lot cluster development.
The property was purchased by Chester J. Kellog and Susan Kellogg from George W. Gunn and
Candice R. Gunn for $750,000 consideration on December 7, 2012 via Quitclaim Deed. This
transaction is recorded in the Hampshire County Registry of Deeds in Book 11146, Page 153. The
prior sale occurred more than three-years ago.
Page | 50
Kensington Estates, Northampton, MA 06-2016
Comparable Sale #5 is located along Strong Road, Southampton, MA. This sale consists of
31.28-acres as shown in Plan Book 231, Pages 74 and 91 in the Hampshire County Registry of
Deeds. The land at the time of the purchase was in Chapter 61-A and was utilized as farmland. The
land is located in the R-N Residential Neighborhood Zoning District. The site contains a total of
540.36-feet of frontage along the easterly side of Strong Road. The topography is level and open
and ready for development. The land had sufficient frontage for the development of three Form A
lots of approximately 1-acre each. The remaining 28.28-acres was later developed with a twelve lot
subdivision. Town water is available at the street.
According to the Town of Southampton Planning Department, definitive site plan approval was
given for twelve lots on January 1, 2014 and it is now known as Western View Estates. The
subdivision plan is recorded in the Hampshire County Registry of Deeds in Plan Book 231, Pages
91-96. According to the developer, the cost for the installation of the infrastructure was $500,000
and development and engineering cost was $150,000. As of November 2015 all but one of the
fifteen lots has been sold.
The property transferred from Edwin F. Goral to Triple Seven, LLC for $586,823 consideration on
April 2, 2013 via Quitclaim Deed. Additionally, the buyer paid $13,177 in back taxes on the
property. According to the buyer, James Labrie, the total purchase price was $600,000. This
transaction is recorded in the Hampshire County Registry of Deeds in Book 11270, Page 330. The
prior sale took place more than three-years ago.
Page | 51
Kensington Estates, Northampton, MA 06-2016
Comparable Sale #6 is located along Moosebrook Road, Southampton, MA. This parcel is
located along the northerly side of Moosebrook Road, just east of Strong Road. The 13.54-acre
parcel has approximately 400+/-feet of frontage along a paved public road and was classified as
Chapter 61 land. The Town of Southampton chose not to exercise their right of first refusal under
the provisions of Chapter 61. The parcel is wooded and public electric is available at the street. It is
unknown whether or not a percolation test was conducted prior to the sale. The property is
designated as Parcel 29B on the town’s Tax Map #35. This property has sufficient frontage for
more than one building lot.
The property was purchased by Viktor Gorobinskiy from James and Lois Pease, Trustees of the
Pease Realty Trust for $100,000 consideration on January 27, 2014 via Quitclaim Deed. This
transaction is recorded in the Hampshire County Registry of Deeds in Book 11573, Page 310. The
property was listed for sale in MLSPIN #713221153 on December 29, 2011 with an asking price of
$199,000. The prior sale occurred more than three-years ago.
///////////
Page | 52
Kensington Estates, Northampton, MA 06-2016
Comparable Sale #7 is located along Franklin Street, Belchertown, MA. This property is
located along the easterly side of Franklin Street (Route 181) in the southeast section of
Belchertown, in close proximity to the Town of Palmer. The property has approval for a twenty-
four-lot cluster development that according to the town planner is a valid permit. The property has
been utilized as a rock quarry and materials from this site have been used for the reconstruction of
Route 181. The property is zoned AG-Agriculture. According to the town planner the buyer of this
property is also the contractor doing the reconstruction of Route 181. During the reconstruction of
Route 181 the buyer extended public sewer to the property at his cost. The development of this
parcel will require extensive blasting for road construction and digging of cellar holes. There is an
extensive amount of wetlands at the eastern section of the property that is designated as open space
for the cluster development. No road work was done prior to the sale.
The property was purchased by S & M Equipment LLC from Northborough Realty Holdings, LLC
Trust for $445,000 consideration on October 30, 2015 via Quitclaim Deed. This transaction is
recorded in the Hampshire County Registry of Deeds in Book 12115, Page 260. The prior sale
occurred on December 29, 2009 and is recorded in Book 10063, Page 163.
Page | 53
Kensington Estates, Northampton, MA 06-2016
The land sales presented range in price per potential lot from $18,542 to $69,167. The unadjusted
weighted average price per potential lot is $40,135 and the unadjusted median price per potential
lot is $50,000. The price per acre ranges from $2,827 to $19,182. The unadjusted weighted average
price per acre is $6,350 and the median price per acre is $7,260.
ADJUSTMENT PROCESS – The adjustment process involves the appraisers’ attempt to answer
the following questions:
What would the comparable property have sold for if it had possessed identical
characteristics to that of the subject, instead of the characteristics it possessed at the time of
the sale? In this sense, characteristics included market conditions, terms of financing and
conditions of sale, as well as physical characteristics of the property. How much variance in
sale price did these differences in characteristics cause? The answer to this question usually
indicates the amount of adjustment made for each difference.
Adjustments to the comparables for differences in quality have been made in terms of perceived
relevance and importance. In the Sales Comparison Approach the subject is taken as the baseline
or norm in the adjustment process. Differences between the comparable property and the subject
are adjusted only in the comparable property. If the comparable property is superior to the subject
in a characteristic, the adjustment is downward. In other words, because of this superior
characteristic, the comparable property sold for more than it would have if it had been identical to
the subject, with respect to the specific attribute. Because of this, its sales price must be adjusted
downward by the appropriate amount for this category of difference. Similarly, if the comparable
property is inferior to the subject in some characteristic, the adjustment in the sales price of the
comparable property is upward.
Date of Sale
In analyzing market conditions in this Appraisal assignment we have applied the best available
means to measure the effect of changes in the market. Over the past four-years market conditions
have stabilized somewhat and most real estate participants indicate the sentiment that conditions
are stable to slightly improving. As all of the comparable sales occurred within the last four-years
they are all considered similar to the subject with regards to sale date.
Property Rights Appraised
We are appraising the fee simple interest. The buyers of the comparable sales purchased the fee
simple interest in these properties, which are similar to the subject. As such, all the sales have been
considered similar to the subject and no adjustments have been made to this standard.
Financing
The financing of each sale was considered to be at market rates and no adjustment is required to
any of the sales for this element of comparison.
Page | 54
Kensington Estates, Northampton, MA 06-2016
Conditions of Sale
Each sale was properly exposed to the market and none of the transfers evidenced unusual sale
adjustments or conditions. Thus, the comparable sales were not adjusted for this element of
comparison.
Other adjustments as per the following grid:
Adjustment Grid
Subject #1 $/AC #2 $/AC #3 $/AC #4 $/AC
$5,225 $2,827 $7,843 $8,588
Location
average
similar -0- similar -0- similar -0- superior -15%
Utilities
Public/Priv.
private +10% private +10% private +10% Public/priv. -0-
Amenities
none
similar -0- superior -10% similar -0- similar -0-
Size
53+/-acres
similar -0- larger +10% smaller -10% larger +10%
Lots/Acre
Ratio
1:6
1:13 +20% 1:18
+20% 1:5 -0- 1:7 -0-
Dev Cost -0- -0- -0- -0-
Net Adj. +30% +30% -0- -5%
Adj. SP $6,793 $3,675 $7,843 $8,159
Subject #5 $/AC #6 $/AC #7 $/AC
$19,182 $7,385 $6,547
Location
average
superior -15% similar -0- inferior +5%
Utilities
Public/Priv.
Public/priv. -0- private +10% public/priv. -0-
Amenities
None
similar -0- similar -0- similar -0-
Size
53+/-acres
smaller -10% smaller -15% similar -0-
Lots/Acre
Ratio
1:6
1:2 -20% 1:7 -0- 1:3 -15%
Dev. Cost -0- -0- +20%
Net Adj. -45% -5% +10%
Adj. SP $10,550 $7,016 $7,202
Page | 55
Kensington Estates, Northampton, MA 06-2016
The adjusted sale price per acre ranges from a low of $3,675 to the high of $10,550. Comparable
Sales #3 and #4 required the least net adjustments with Comparable Sale #4 being most similar to
the subject. It is our opinion that the subject has an indicated value of $8,200 per acre when applied
to the 53.1-acres of land. The calculation is as follows:
53.1-acres x $8,200 = $435,420
Rounded to: $435,000
Therefore, after analyzing the above data, it is our opinion that the Market Value via the Sales
Comparison Approach for the 53.1-acres is $435,000.
INDICATED VALUE VIA THE SALES COMPARISON APPROACH
FOUR HUNDRED THIRTY-FIVE THOUSAND DOLLARS
( $435,000 )
Page | 56
Kensington Estates, Northampton, MA 06-2016
COST OF DEVELOPMENT METHOD
As a test of reasonableness the Cost of Development Method will be used by first using the
concept of the Sales Comparison Approach to determine a per lot value by utilizing local sales
data. In the Gross Revenue resulting from the sale of the lots, the Cost to Develop the property
will be subtracted to arrive at a value indicator for the subject as a whole.
The search area for sales data included the community of Northampton, with the greatest
consideration given to those parcels that sold either near the subject site or those with the most
similar land characteristics. Our research also included conversations with owners of area
subdivisions and local contractors who are typically the purchasers of subdivision lots. The
following sales were given the greatest consideration in the opinion of value for the proposed
subject lots.
# Location Sale Date Sale Price Size
1. Lot 18, 145 Emerson Way, Northampton 03/23/2015 $117,500 0.258-acres
2. Lot 13, 115 Emerson Way, Northampton 03/26/2015 $120,000 0.258-acres
3. Lot 14A, Birch Lane, Northampton 05/01/2015 $63,000 1.830-acres
4. Lot “Revised 5”, Sylvester Road, Northampton 05/14/2015 $125,000 1.837-acres
5. Lot 3, Dunphy Drive, Northampton 11/19/2015 $100,000 2.109-acres
Page | 57
Kensington Estates, Northampton, MA 06-2016
Comparable Sale #1 is located along Emerson Way, Northampton, MA.
This property was originally listed for sale in MLSPIN #71563684 on August 1, 2013 with an
asking price of $115,000 and later changed to $117,500 on September 14, 2013.
The property was purchased by Rosemund, LLC from Emerson Way, LLC for $117,500
consideration on March 23, 2015 via Quitclaim Deed. This transaction is recorded in the
Hampshire County Registry of Deeds in Book 11893, Page 123. The prior sale occurred more than
three-years ago.
Page | 58
Kensington Estates, Northampton, MA 06-2016
Comparable Sale #2 is located along Emerson Way, Northampton, MA.
This property was originally listed for sale in MLSPIN #71770482 on November 19, 2014 with an
asking price of $120,000.
The property transferred from Emerson Way, LLC to Sunwood Development Corp. for $120,000
consideration on March 26, 2015 via Quitclaim Deed. This transaction is recorded in the
Hampshire County Registry of Deeds in Book 11896, Page 79. The prior sale occurred more than
three-years ago.
Page | 59
Kensington Estates, Northampton, MA 06-2016
Comparable Sale #3 is located at the end of Birch Lane, Northampton, MA.
This property is referenced as Lot 14A, on a plan of land recorded in Plan Book 138, Page 64 in
the Hampshire County Registry of Deeds. The lot contains 1.83-acres, is located in an upscale
neighborhood and is wooded and sloping. The lot has public water and private sewer.
The property sold from Timothy J. Dachos and Mary-Ellen G. Dachos to Sherri A. Kuchinskas for
$63,000 on May 1, 2015 via Warranty Deed. This transaction is recorded the Hampshire County
Registry of Deeds in Book 11927, Page 176. The prior sale occurred more than three-years ago.
Page | 60
Kensington Estates, Northampton, MA 06-2016
Comparable Sale #4 is located along Sylvester Road, Northampton, MA.
This property is referenced as “Revised 5”, 249 Sylvester Road on a plan of land recorded in Plan
Book 205, Page 19 in the Hampshire County Registry of Deeds. The lot contains 1.8367-acres and
is located adjacent to Parsons Brook. The site is moderately sloping and lightly wooded. There is
no public water or sewer to this section of Sylvester Road.
The property was purchased by Daviau & Hathaway Development, LLC from Kathleen E.
LaValley for $125,000 consideration on May 14, 2015 via Quitclaim Deed. This transaction is
recorded in the Hampshire County Registry of Deeds in Book 11937, Page 298. The prior sale
occurred more than three-years ago.
Page | 61
Kensington Estates, Northampton, MA 06-2016
Comparable Sale #5 is located along Dunphy Drive, Northampton, MA.
This 2.1085-acre parcel is located at the end of Dunphy Drive and is referred to as Lot 3 (Revised)
on a site plan recorded in Plan Book 205, Page 12 in the Hampshire County Registry of Deeds.
This is a flag lot that is wooded and moderately sloping. The site has public water and sewer.
This property transferred from Marlene A. Border to Robert Stanley and Leah Stanley for
$100,000 consideration on November 19, 2015 via Quitclaim Deed. This transaction is recorded in
the Hampshire County Registry of Deeds in Book 12133, Page 21. The prior sale occurred more
than three-years ago.
Page | 62
Kensington Estates, Northampton, MA 06-2016
The land sales presented above range in price from $63,000 to $125,000 per lot. The unadjusted
average price per lot is $105,100 and the unadjusted median price per lot is $115,625.
ADJUSTMENT PROCESS – The adjustment process involves the appraisers’ attempt to
answer the following questions:
What would the comparable property have sold for if it had possessed identical
characteristics to that of the subject, instead of the characteristics it possessed at the time
of the sale? In this sense, characteristics included market conditions, terms of financing
and conditions of sale, as well as physical characteristics of the property. How much
variance in sale price did these differences in characteristics cause? The answer to this
question usually indicates the amount of adjustment made for each difference.
Adjustments to the comparables for differences in quality have been made in terms of perceived
relevance and importance. In the Sales Comparison Approach the subject is taken as the
baseline or norm in the adjustment process. Differences between the comparable property and
the subject are adjusted only in the comparable property. If the comparable property is superior
to the subject in a characteristic, the adjustment is downward. In other words, because of this
superior characteristic, the comparable property sold for more than it would have if it had been
identical to the subject, with respect to the specific attribute. Because of this, its sales price must
be adjusted downward by the appropriate amount for this category of difference. Similarly, if the
comparable property is inferior to the subject in some characteristic, the adjustment in the sales
price of the comparable property is upward.
All indications from the five comparable sale properties is that only modest adjustments are
warranted for difference in size. Other warranted adjustments are applied for public versus
private utilities and location. The location of the subject lots in close proximity to the
Northampton Sanitary Landfill requires a significant downward adjustment. We assume for the
purposes of establishing individual lot values that the proposed nine lots will range in size from
.38-acres to 1.37-acres. An adjustment grid is presented as follows:
Adjustment Grid
Subject #1 $ #2 $/AC #3 $/AC #4 $/AC #5 $/AC
$117,500 $120,000 $63,000 $125,000 $100,000
Location
Avg.
superior -40% superior -40% superior -40% superior -40% superior -40%
Utilities
Public/priv.
similar -0- similar -0- similar -0- private +10% public -10%
Amenities
None
similar -0- similar -0- similar -0- similar -0- similar -0-
Sizes
0.5-1.5
acres
smaller +5% smaller +5% similar -0- similar -0- similar -0-
Dev. Cost similar -0- similar -0- similar -0- similar -0- similar -0-
Net Adj. -35% -35% -40% -30% -50%
Adj. SP $76,375 $78,000 $37,800 $87,500 $50,000
Page | 63
Kensington Estates, Northampton, MA 06-2016
The adjusted sales prices for the five comparable properties range from $37,800 to $87,500 per lot.
Based on the market data presented we can assume that the nine lots would have an average
value of $75,000 per lot and that it would take five years to sell all nine lots. This is based upon
the current supply of lots on the market and the projected level of activity going forward. We
have not applied an appreciation rate in the later years as the market has demonstrated relative
stability in lot prices over the past few years.
Discounting to present value will therefore be necessary to account for this estimated timeframe.
Lot prices have remained relatively stable over the past few years and we anticipate that this will
continue to be the case for the foreseeable future. Therefore no adjustment to the value of the lots
will be made during the holding period.
PROJECT EXPENSES DURING THE HOLDING PERIOD
The following project expense items must be deducted from gross revenues on a year-by-year
basis in order to estimate the residual land value.
Real Estate Taxes
The payment of real estate taxes would be required by the owner during the Sell-Out Period.
The tax amount for year-one is based on the actual FY 2016 assessment. We have also included
the tax for the remaining years, based on individual lot assessments using the values utilized in
the gross revenue section of the Cash Flow.
Engineering/Common Septic/Percolation Tests
Minimal engineering work has been done. We estimate an additional cost of $9,000 ($1,000 per
lot) for this work.
Sales Commissions
Real estate broker’s fees for individual lots in subdivisions generally range from 5% to 10% of
the retail values. We have estimated a 6% broker’s fee for the subject development.
Legal Fees
We have estimated an expense of approximately $800.00 per lot, which is in line with other
projects of this size and scope. Legal fees cover the cost of deed research and the writing of
individual deeds as the lots are sold.
Page | 64
Kensington Estates, Northampton, MA 06-2016
Developer’s Profit
The developer’s gross profit is actually a gross revenue figure from which operating costs, such
as salaries and overhead would be deducted before the actual return on an investment could be
estimated. Given the size of the inherent risk we anticipate profits amounting to 10% of the gross
lot sales would be necessary in order to attract an investor to this type of project.
Miscellaneous Expenses
Miscellaneous expenses are used to account for unplanned items as well as for charges for
professional services, such as accounting and other costs of ownership. One percent of the gross
receipts are estimated to cover this.
DISCOUNT RATE
Similar in concept to an internal rate of return or Yield Rate, the Discount Rate has been
estimated as a blended rate of interest that reflects a typical developer’s costs of capital or the
competitive rate of return on investments, together with market interest rates. It is the annual rate
of return, before income taxes, assumed required to attract capital to the project. In the analysis,
each periodic Cash-Flow is Discounted to a present value at an appropriate Discount or Yield
Rate that attempts to reflect the expectations of typical market participants. Such a rate is influenced
by many considerations, including the degree of apparent (but not necessarily the actual) risk,
market attitudes with respect to future inflation, the prospective rates of return for alternative
investment opportunities, historical rates of return earned by comparable properties, supply and
demand of mortgage funds and the availability of tax shelters. The Discount Rate employed in land
development is generally higher than for income producing properties or safer alternate investment
opportunities.
The National Association of Home Builders publication, Financing Land Acquisition and
Development, offers the following regarding financing land acquisitions and homebuilding:
“Financial institutions have traditionally hesitated to lend money for raw land development
because it is considered very risky. Since the raw land will generate no cash flow the financial
institution must rely on the credit worthiness of the developer for assurance that they will receive
payment. Raw land may be difficult to resell, should the project fail, which reduces its value as
collateral. Lending for land development is considered a high risk venture since the increased
value will not occur if the project fails. Land development loans are considered riskier than
construction loans because repayment of the development loan is contingent on the sale of
building sites.”
Page | 65
Kensington Estates, Northampton, MA 06-2016
SELECTION OF A DISCOUNT RATE
The typical investor recognizes that there are alternative investments, which can be made and these
may provide different yields and have a different amount of risk. There is always an opportunity
cost associated with an investment. It can be considered as the difference in yield between the
investment chosen and the return on available alternative investments. This factor is dealt with in
this Appraisal in the Discount Rate selected for the analysis. To help select the assumptions made
for the subject various sources were surveyed. We have examined some criteria for investment by
firms and individuals currently active in the local real estate market.
Factors considered in the chosen rate included:
Time Preference: Compensation for a base rate of interest for giving up control over money. This is
the compensation for the opportunity cost of putting money into a particular investment. It has been
represented by the “low risk” rate of interest on quality long term bonds. Such instruments are
highly liquid, involve virtually no investment management and carry little risk of principal loss
(when held to maturity) or nonpayment of interest.
Compensation for Liquidity: This return is felt necessary to overcome illiquidity preferences. Real
estate is a relatively illiquid asset and investors are assumed to require additional compensation for
illiquidity.
Compensation for Investment Management: This is not to be confused with the active operating
management of a property, for which an expense is already included in project management. It is
rather the activity required of the owner/investor in keeping accounts and other duties solely related
to being an investor.
Compensation for Investment Risks Assumed: There is necessary uncertainty about each of the
component characteristics of future income receipts: the amount; the timing; the periodicity; the
duration; the variability and other factors. The degree of uncertainty of each of these components
has been assessed by examining the perceived probabilities assigned them by market participants
and by the experience of the appraiser. The possibility of capital loss can also be a factor.
Page | 66
Kensington Estates, Northampton, MA 06-2016
MARKET DISCOUNT RATE
Interest rates are stable but short term rates are expected to increase in the not too distant future. The
Federal Reserve has continued to postpone interest rate hikes to help the economy but indications
are that their delay is nearing the end. Interest rates are anticipated to increase in the first quarter of
2016. Developers and investors in the area are by and large using Discount Rates ranging from
10% to 20%, excluding separate Developer’s Profit, with the preponderance of the market
participants in the central part of the range. The Discount Rate selected and presented below was
developed from published information and from discussions with investors and developer’s active
in the market.
The rate selected considers the degree of apparent risk, prospective rates of return for alternative
investments, historical rates of return for comparable properties, market attitudes with respect to
current economic trends, supply and demand of both competitive properties and mortgage funds,
capital gain and other investment criteria. The rate selected is, furthermore, intended to represent the
rate of return assumed necessary to satisfy the analysis requirements of a typical developer.
While the rate selected is, ultimately, only an informed estimate based on representative,
perceived market expectations, it is nevertheless, believed to be helpful in formulating the
opinion of value.
1.) Riskless Rate 1.75%
2.) Liquidity Premium 5.00%
3.) Management Premium 2.75%
4.) Risk Premium 3.00%
Assumed Required Rate of Return 12.50%
For the purposes of this analysis we will be utilizing a 12.5% Discount Rate using the mid-term
factor under the assumption that income and expenses are realized throughout the period.
Page | 67
Kensington Estates, Northampton, MA 06-2016
DISCOUNTED CASH FLOW ANALYSIS
12 Months 24 Months 36 Months 48 Months 60 Months
GROSS INCOME
Single-Family Lots 1 2 2 2 2
Avg. S-Family Lot Price $75,000 $150,000 $150,000 $150,000 $150,000
Gross Sales $75,000 $150,000 $150,000 $150,000 $150,000
EXPENSES
Real Estate Taxes $11,000 $9,500 $7,300 $4,800 $2,400
Engineering/Perc Tests $9,000 -0- -0- -0- -0-
Sales Commission 6% $4,500 $9,000 $9,000 $9,000 $9,000
Legal Fees @ 800/Lot $800 $1,600 $1,600 $1,600 $1,600
Developer Profit (10%) $7,500 $15,000 $15,000 $15,000 $15,000
Misc Expense (1%) $750 $1,500 $1,500 $1,500 $1,500
TOTAL EXPENSES $33,550 $36,600 $34,400 $31,900 $29,500
NET OPERATING
INCOME $41,450 $113,400 $115,600 $118,100 $120,500
Discount Rate 12.5% 0.9412 0.8366 0.7436 0.661 0.5876
Present Worth of
Annual Proceeds $39,013 $94,870 $85,960 $78,064 $70,806
VALUE $368,713
ROUNDED TO: $370,000
Page | 68
Kensington Estates, Northampton, MA 06-2016
The $370,000 represents the indicated value for the nine lots that makes up roughly 6.34-acres of
the 53.1-acre parcel being purchased. The remaining 46.76-acres are to remain undeveloped and
utilized for passive recreation use.
In order to value the 46.76-acres of recreational land the following sales were analyzed.
# Location Sale Date Sale Price Size $/Acre
1. Off Amherst Road, Pelham 09/06/2013 $5,500 4.71-acres $1,168
2. Chestnut Mountain Road, Hatfield 06/27/2014 $42,380 20.13-acres $2,105
3. Off Batchelor Street, Granby 06/12/2015 $12,000 10-acres $1,200
4. Off Chmura Road, Hadley 06/29/2015 $4,500 3.75-acres $1,200
5. Off Bay Road, Amherst 06/29/2015 $70,000 20.00-acres $3,500
6. Shaw Road, Westhampton 07/20/2015 $275,000 142.41-acres $1,931
Page | 69
Kensington Estates, Northampton, MA 06-2016
Comparable Sale #1 is located off Amherst Road, Pelham, MA. This property is comprised of
4.71-acres of land with access via a right-of-way over an abutting property. The location of the
site and its limited access precludes the possibility for development. The parcel is located in the
Residential Zoning District and is currently being used for hiking and recreational use.
The parcel was purchased by The Kestrel Land Trust from Judson W. Spalding, Mark J. Spalding,
Linda Wolfe, Warren Spalding and Violet Savage for $5,500 consideration on September 6, 2013
via Quitclaim Deed. This transaction is recorded in the Hampshire County Registry of Deeds in
Book 11454, Page 89. The prior sale occurred more than three-years ago.
Page | 70
Kensington Estates, Northampton, MA 06-2016
Comparable Sale #2 is located along Chestnut Mountain Road, Hatfield, MA. Map 208,
Parcel 8 consists of 20.13-acres of unimproved land with approximately 720-feet of frontage along
the easterly side of Chestnut Mountain Road in Hatfield, MA. The parcel is wooded and elevated
with a moderate slope up from west to east. With some clearing the site offers distant views to the
east. Chestnut Mountain Road is a non-maintained public road that is little more than a logging
road that runs north off of Rocks Road. The closest access to electrical power is to a house lot
located to the south side of Rocks Road, which runs underground. There is no electric power
running along Chestnut Mountain Road and no other public utilities available to the parcel.
Based on the site inspection, a review of the town’s zoning regulations and discussions with the
superintendent of public works and the chairman of the planning department, there appears to be
very limited development potential even though the parcel exceeds the minimum frontage and
size requirements of the zoning district.
The property was purchased by The Kestrel Land Trust from Ellen P. White for $42,380
consideration on June 27, 2014 via Quitclaim Deed. This transaction is recorded in the Hampshire
County Registry of Deeds in Book 11678, Page 329. The prior sale occurred more than three-years
ago.
Page | 71
Kensington Estates, Northampton, MA 06-2016
Comparable Sale #3 is located off the northerly side of Batchelor Street, Granby, MA. This is
a 10-acre parcel of land with no public road access. This recreational parcel is wooded with a
moderate slope. The parcel is referenced as assessors’ Map 13, Lot 34. There is no indication in the
deed that there is any right-of-way access, therefore it is perceived to be landlocked.
The parcel was purchased by The Kestrel Land Trust from John Rodman Besse, Jr. for $12,000
consideration on June 12, 2015 via Quitclaim Deed. This transaction is recorded in the Hampshire
County Registry of Deeds in Book 11968, Page 174. The prior sale occurred more than three-years
ago.
Page | 72
Kensington Estates, Northampton, MA 06-2016
Comparable Sale #4 is located off the southerly side of Chmura Road, Hadley, MA. This
3.75-acre parcel is located along the northern border of South Hadley and the Mount Holyoke
Range. This elevated parcel is heavily wooded. This long and narrow parcel is surrounded by other
Conservation Restricted land with no recorded access. Its primary use is for hiking and other
passive recreational uses.
The property was purchased by The Kestrel Land Trust from Stanley M. Niedziela for the Estate of
Helen Niedziela for $4,500 consideration on June 29, 2015 via Quitclaim Deed. This transaction is
recorded in the Hampshire County Registry of Deeds in Book 11985, Page 203. The prior sale
occurred more than three-years ago.
Page | 73
Kensington Estates, Northampton, MA 06-2016
Comparable Sale #5 is located off Bay Road, Amherst, MA. This 20-acre parcel of wooded
land of various slopes has no public road frontage and is accessed via walking trials from adjacent
properties that are used for passive recreation. An easement for Western Mass Electric Company
runs along the eastern property line.
The property was purchased by The Kestrel Land Trust from Lisa B. Epstein and Martha L.
Epstein for $70,000 consideration on June 29, 2015 via Quitclaim Deed. This transaction is
recorded in the Hampshire County Registry of Deeds in Book 11985, Page 173. The prior sale
occurred more than three-years ago.
Page | 74
Kensington Estates, Northampton, MA 06-2016
Comparable Sale #6 is located along Shaw Road, Westhampton, MA. This parcel is located
west and north of Shaw Road, which is a dead end gravel road. According to the seller the property
was purchased by an abutter for recreational use. The 142.41-acre parcel has frontage along Shaw
Road and Chesterfield Road but offers limited access due to the location of Roberts Meadow
Brook. The wooded parcel slopes up, heading north. No percolation tests were conducted prior to
the sale.
The parcel was purchased by Pandora C J Redwin and Melissa A P Redwin from Dennis R. and
Arlene T. Nolan for $275,000 consideration on July 20, 2015 via Quitclaim Deed. This transaction
is recorded in the Hampshire County Registry of Deeds in Book 12009, Page 4. The prior sale
occurred more than three-years ago.
Page | 75
Kensington Estates, Northampton, MA 06-2016
All of the comparable sales have a bearing on the subject site in one way or another. They are
fairly recent sales requiring no market adjustment. Terms of the sale were all arms length
transactions with no special or unusual financing arrangements. However, there are some
differences, which have been adjusted for as follows:
The land sales presented above range from $1,168 to $3,500 per acre. The unadjusted weighted
average price per acre is $2,036 and the unadjusted median price per acre is $1,658.
ADJUSTMENT GRID
Subject #1 $/AC #2 $/AC #3 $/AC #4 $/AC #5 $/AC #6 $/AC
$1,168 $2,105 $1,200 $1,200 $3,500 $1,931
Location Similar -0- Similar -0- Similar -0- Similar -0- Similar -0- Similar -0-
Utilities Similar -0- Similar -0- Similar -0- Similar -0- Similar -0- Similar -0-
Amenities Similar -0- Similar -0- Similar -0- Similar -0- Similar -0- Similar -0-
Access Inferior +5% Similar -0- Inferior +25% Inferior +25% Similar -0- Similar -0-
Net Adj. +5% -0- +25% +25% -0- -0-
Adj. SP $1,226 $2,105 $1,500 $1,500 $3,500 $1,931
The adjusted sale price for the six comparable properties ranges from $1,226 to $3,500 per acre.
The adjusted average sale price per acre is $1,960 and the median is $1,715.
Given all of the above factors it is our opinion that the land value on a per acre basis is within the
mid-range of the adjusted average of the comparable sales with the least weight given to
Comparable Sales #3 and #4 due to inferior access.
Therefore, after analyzing the above data it is our opinion that the Market Value via the Sales
Comparison Approach for the 46.76-acres is $1,750 per acre. The calculation is as follows:
46.76-acres @ $1,750/acre = $81,830
Rounded to $80,000
Summary of Cost of Development Analysis
“as is” value of nine-building lots $370,000
“as is” value of 46.76-acres of Recreational Land $ 80,000
Total $450,000
INDICATED VALUE VIA THE COST OF DEVELOPMENT
FOUR HUNDRED FIFTY THOUSAND DOLLARS
( $450,000 )
Page | 76
Kensington Estates, Northampton, MA 06-2016
RECONCILIATION AND VALUE CONCLUSION
SALES COMPARISON APPROACH
FOUR HUNDRED THIRTY-FIVE THOUSAND DOLLARS
( $435,000 )
COST OF DEVELOPMENT APPROACH
FOUR HUNDRED FIFTY THOUSAND DOLLARS
( $450,000 )
The valuation of the subject based on this Highest and Best Use premise was accomplished with
the use of the Sales Comparison Approach and the Cost of Development Method.
The Sales Comparison Approach was used to form a meaningful opinion of value for the bulk
acreage land sale as well as to establish individual lot values as if the land were to be developed.
The bulk land value estimate assumes the land to be sold to an individual investor for utilization
for future residential development.
The Cost of Development Method was used to develop a Market Value opinion for the nine
potential residential building lots. The market study and analysis of recent subdivision projects
and listings of comparable building lots available for sale indicated that the projected Sell-out
Period would be approximately five years. After subtracting the projected expenses from the
sales revenues a present value could be estimated. The remaining 46.76-acres was then valued as
recreational land using a Sales Comparison Analysis.
In the final reconciliation, we believe both approaches are appropriate and have a bearing on the
subject parcels final opinion of value and given the subject size and potential. Therefore, we
have reconciled toward the upper end of the two approaches.
Therefore, it is our opinion that the Market Value for the 53.1-acres of land as of June 16th, 2016
is:
FOUR HUNDRED FIFTY THOUSAND DOLLARS
( $450,000 )
Page | 77
Kensington Estates, Northampton, MA 06-2016
ADDENDA
Page | 78
Kensington Estates, Northampton, MA 06-2016
COMPARABLE SALES MAP
Page | 79
Kensington Estates, Northampton, MA 06-2016
COMPARABLE SALES MAP
Page | 80
Kensington Estates, Northampton, MA 06-2016
COMPARABLE SALES MAP
Page | 81
Kensington Estates, Northampton, MA 06-2016
OFFER
Page | 82
Kensington Estates, Northampton, MA 06-2016
OFFER
Page | 83
Kensington Estates, Northampton, MA 06-2016
OFFER
Page | 84
Kensington Estates, Northampton, MA 06-2016
OFFER
Page | 85
Kensington Estates, Northampton, MA 06-2016
DEED
Page | 86
Kensington Estates, Northampton, MA 06-2016
DEED
Page | 87
Kensington Estates, Northampton, MA 06-2016
DEED
Page | 88
Kensington Estates, Northampton, MA 06-2016
DEED
Page | 89
Kensington Estates, Northampton, MA 06-2016
CONTRACT
Page | 90
Kensington Estates, Northampton, MA 06-2016
QUALIFICATIONS OF THE APPRAISER
STEPHEN A. BRUNELLE
Education:
B. S. Accounting (1972) American International College, Springfield, MA
Society of Real Estate Appraisers:
Course 101 (Basic Principles) University of New Hampshire, Passed 101 Exam 1976
Course R-2 (Residential) Passed R-2 Exam 1978
Course 201 (Income Property Appraising) University of Wisconsin,
Passed 201 Exam 1980
Course 202 (Applied Income Property Valuation) Springfield, Massachusetts,
Passed 202 Exam July 1990
Adjusting for Financing Differences Seminar - March, 1982
Freddie-Mac, Fannie-Mae Form Seminar - Single Family
Condominium Units and Small Residential Income Property
Uniform Residential Appraisal Report - Seminar (URAR) 1987
Real Estate Valuation Using Spreadsheets Seminar - March 1988
Professional Practice Seminar Part A - October 1988
Professional Practice Seminar Part B - June 1992
Preparing and Understanding the Small Residential Income
Property Appraisal Report Form 72 - Seminar June 1990
American Institute of Real Estate Appraisers:
Condominium Analysis and Valuation - Seminar October 1989
Page | 91
Kensington Estates, Northampton, MA 06-2016
Appraisal Institute:
Americans with Disabilities Act Seminar - October 1995
Eminent Domain and Condemnation Seminar - October 1997
Appraisal of Local Retail Properties Seminar – September 1998
Partial Interest Valuation Seminar – April 2001
Standards of Professional Practice, Part C – 9/20/01-9/21/01 – Passed Exam
Analyzing Commercial Lease Clauses – April 2002
Regression Analysis – March 2003
Reviewing the Reviewer Seminar – October 2003
Supporting Capitalization Rates Seminar – May 2004
Evaluating Commercial Construction Seminar- October 2004
USPAP Update Seminar – May 2005, July 2015
R.E. Finance, Value and Investment Performance Seminar – March 2007
Appraisal Curriculum Overview – May 2010
Business Practices and Ethics – September 2010
Marketability Studies: Six Steps Process – October 2012
Marketability Studies: Advanced Considerations and Application – March 2013
Analyzing Operating Expenses- August 2015
Forcasting Revenue-September 2015
Massachusetts Board of Real Estate Appraisers:
Capitalization Theory and Techniques - Seminar October 1988
Land Planning and Development - Seminar January 1989
Commercial Site Selection/Financing Workshop - September 1993
USPAP Update Seminar – 2/96, 8/98, 12/03, 9/06, 3/08, 3/10, 2/12, 4/14
Supporting Capitalization Rates Seminar – September 1999
HUD Appraising Seminar – November 1999
Appraisers New England Expo, Commercial Program – 2001, 2003, 2006, 2008, 2010, 2013
Fair Lending Seminar – November 2003
Appraising in the Foreclosure Market – September 2008
Financial Institutions Guide to Commercial Appraisal – January 2013
Northeastern University:
Business Valuation I, passed exam, March 29, 1995
Business Valuation II, passed exam June 28, 1995
American Society of Farm Managers and Rural Appraisers
Yellow Book Seminar-Uniform Appraisal Standards for Federal Land Acquisitions-September
2004
Page | 92
Kensington Estates, Northampton, MA 06-2016
Business Experience:
Fee Appraiser: FSI Appraisal Company, Inc., October 2012 - Present
President/Owner: FSI Appraisal Company, Inc., March 1986 – October 2012
Chief Appraiser: Northampton Institution for Savings, 9 Years
Staff Appraiser: Vanguard Savings Bank, 3 Years
Organizations and Affiliations:
The Appraisal Institute – Associate Member #15291
The Appraisal Institute Western Mass. Chapter #104 - Second Vice President, 1991 - Treasurer
1985-1990, Director 1994-2000
Massachusetts Certified General Appraisers License #233, Expiration Date 10/20/2017
Corporator-Easthampton Savings Bank 2008-2013
State of South Carolina Certified General Appraiser License #7059, Expires 06/30/2016
PARTIAL LIST OF CLIENTS
Banks and Financial Institutions:
Bank of Boston - West Bank of Western Mass
Bank of America Berkshire Bank
Baybank Baybank Mortgage Corporation
Boston Safe Deposit & Trust Co. BankNorth NA
BankNorth Mortgage Charter Home Mortgage Co.
Chicopee Savings Bank Citizens Bank
Connecticut Bank and Trust Federal Deposit Insurance Corporation
Fleet Bank Florence Savings Bank
FNMA-Federal National Mortgage Greenfield Co-Operative Bank
Association Greenfield Savings Bank
Hampden Bank Monson Savings Bank
Lenders Service, Inc. Albank
Litchfield Financial Corporation MFC Mortgage Co., Inc
Monsanto Employees Credit Union Northeast Savings
Northampton Co-Operative Bank Peoples Bank
Recoll Management Corporation Resolution Trust Corporation
Shawmut Bank Shawmut Mortgage Corporation
Sovereign Bank Southbridge Savings Bank
U/Mass Five College Credit Union United Co-Operative Bank
W. Mass Telephone Workers Credit Union Worcester Central Federal Credit Union
Mass Mutual Credit Union Woronoco Savings Bank
First American Title Lawyers Title Insurance Corporation
Citi Mortgage Option One Mortgage Corporation
TD Bank People’s United Bank
Family First Bank
Page | 93
Kensington Estates, Northampton, MA 06-2016
Companies and Institutions:
Army Corp of Engineers Almer Huntley, Jr. & Associates, Inc
Berkshire Gas Company Colebrook Realty Services, Inc.
Echo Village Corporation Hampshire Property Management Group
Eric Management Inc. Gateway Development Corp.
Kollmorgan Corporation Merrill Lynch Relocation
MFC Mortgage Co., Inc. Fidelity Valuation Services
Northampton Manufacturing PHH Homequity
Pro-Tech Services Ltd. Prudential Relocation
Sterling Mortgage Corp. Smith College
University of Massachusetts Travelers Relocation Co
U.S. Trust/Essex Valley Design & Development Corp.
Zee Enterprises Easthampton Dye Works, Inc.
Wright Builders Oasis Development Enterprises, Inc.
Trident Realty U.S. Appraisal, Inc.
Lloyd’s of London Kestrel Land Trust
Massachusetts Housing Partnership Fund University of Massachusetts-Amherst
Amherst College Hampshire College
Nonotuck Land Fund The Trust for Public Land
Six Flags New England W.D. Cowls
Lawyers and Legal:
Various Attorneys throughout Massachusetts
Expert Witness:
Probate Court Franklin County, Greenfield, MA
Probate Court Hampshire County, Northampton, MA
United States Federal Bankruptcy Court, Worcester, MA
United States Federal Bankruptcy Court, Springfield, MA
Superior Court Hampshire County, Northampton, MA
Massachusetts Tax Appellate Court, West Springfield, MA
Massachusetts Tax Appellate Court, Northampton, MA
Page | 94
Kensington Estates, Northampton, MA 06-2016
Municipalities and Government Agencies:
Town of Amherst - Conservation Commission/ Department of Public Works
Town of Belchertown - Highway Department and Conservation Commission
Town of Chester – Town Administrator
City of Easthampton – Mayor’s Office and Planning Office
Town of Hatfield – Selectperson’s Office
Town of Longmeadow, Conservation Commission
Town of Monson – Conservation Commission
City of Northampton - Planning Department/Department of Public Works
Massachusetts Department of Environmental Management
Town of Palmer - Planning Department
Town of South Hadley - Water Commissioners
Town of Southampton - Conservation Commission/Town Administrator
Town of Sunderland – Selectperson’s Office
Town of Whately - Recreation Department
Town of Williamsburg – Selectperson’s Office
Deerfield Economic Development and Industrial Corporation
U.S. Army Corp of Engineers
U.S. Fisheries and Wildlife
Franklin Regional Transit Authority
Greenfield Redevelopment Authority
Page | 95
Kensington Estates, Northampton, MA 06-2016
QUALIFICATIONS OF THE APPRAISER
GARY L. ALDRICH, PRESIDENT / MA CGREA #75488
Professional Experience
FSI Appraisal Company, Inc., Northampton, MA, President Nov. 2012 – Current
Aldrich Appraisals, Agawam, MA, Owner/Founder June 2008 – Current
Contract Appraiser for various local and regional Appraisal Firms 2003-2008
Area Remarketing Mgr, Enterprise Rent-A-Car, Windsor Locks, CT 1996-2003
Professional Affiliations
Massachusetts Certified General Real Estate Appraiser
MA License #75488, Expiration Date 05/14/2018
FHA Approved
Massachusetts Board of Real Estate Appraisers (MBREA) – Associate Member
MLS Property Information Network, Inc.
Northampton, Massachusetts Chamber of Commerce
Educational Background
Bachelor of Science, Westfield State College, Westfield, MA 1996
Major: Business Management
Minor: Commercial Recreation & Tourism
Appraisal Courses – Continuing Education Courses/Seminars
Appraisal of Self-Storage Facilities 04/2016 McKissock
Foreclosure Basics for Appraisers 04/2016 MBREA
Green in Residences and Appraisals 04/2016 MBREA
Book of Adjustments 04/2015 MBREA
Valuation of Conservation Easements 11/2013 Appraisal Institute
And Taxes
Supervising Beginning Appraisers 10/2013 JMB Acad.
Residential Appraisal Review 09/2013 MBREA
Environmental Awareness 04/2013 Calypso
for Appraisers: Environmental Hazards
Fannie Mae Form 1004MC Seminar 01/2009 MBREA
Appraisers New England Expo. – 12/2008 MBREA
Commercial Program
Appraising Complex Residential Properties 05/2004 MBREA
Practical Residential Appraising 05/2004 MBREA
Appraising Single Family Residence 05/2003 MBREA
Page | 96
Kensington Estates, Northampton, MA 06-2016
Appraisal Courses – Primary Education Courses
Advanced Income Property Appraising 11/2009 JMB Acad.
General Sales Comparison 10/2009 MBREA
General Market Analysis and 05/2009 MBREA
Highest and Best Use
General Report Writing 05/2009 MBREA
General Appraiser Income Approach I 11/2008 MBREA
General Site Valuation and Cost Appr. 10/2008 MBREA
Statistics, Modeling and Finance 09/2004 MBREA
Basic Appraisal Principles 04/2003 MBREA
Basic Appraisal Procedures 04/2003 MBREA
Real Estate Appraisal Basics 04/2003 MBREA
Uniform Standards of Professional Appraisal Practice (USPAP)
USPAP Update 2016-2017 12/2015 MBREA
USPAP Update 2014-2015 12/2013 MBREA
USPAP Update 2012-2013 02/2012 MBREA
USPAP Update 2010-2011 04/2011 MBREA
USPAP Update 2008-2009 04/2009 MBREA
USPAP Update 2006-2007 06/2007 MBREA
USPAP Update 2004-2005 06/2006 MBREA
Uniform Standards of Appraisal Practice 05/2003 MBREA
Property Types Completed
One to Four Family Dwellings
Multi-family Apartments
Residential Condominiums
Office Condominiums
Fraternity/Sorority Buildings
Office Buildings
Retail Buildings
Mixed-use Buildings
Convenience Stores
Industrial Buildings
Manufacturing Buildings
Warehouse Buildings
Restaurants
Automotive Garages/Body shops
Shopping Centers
School Buildings
Churches
Historic Buildings
Land
Residential Subdivision
Agriculture Land
Recreational Land
Farms
Raw/Undeveloped Land
Easements/Restricted Land
Conservation Land (APR)
Conservation Easements
(Before/After Valuations)
Page | 97
Kensington Estates, Northampton, MA 06-2016
PARTIAL LIST OF CLIENTS
Banks and Financial Institutions
Academy Mortgage Company Greenfield Savings Bank
Albank Hampden Bank
Alden Credit Union Mass Mutual Credit Union
Bank of America MassMutual Federal Credit Union
BankNorth Mortgage Merrimack Mortgage Company
Berkshire Bank Monson Savings Bank
Chicopee Savings Bank North Brookfield Savings Bank
Citi Mortgage North Brookfield Savings Bank
Citizens Bank Northampton Cooperative Bank
Community Econ. Dev. Assistance Corp. People’s United Bank
Country Bank Peoples Bank
Easthampton Savings Bank Regency Mortgage Corporation
Family First Bank Southbridge Savings Bank
Federal National Mortgage Association Sovereign Bank
First American Title TD Bank
Florence Bank U/Mass Five College Credit Union
Freedom Credit Union United Bank
Greenfield Cooperative Bank W. MA Telephone Workers Credit Union
Companies and Institutions
Almer Huntley, Jr. & Associates, Inc Prudential Relocation
Amherst College Salvation Army
Berkshire Gas Company ServiceNet
Colebrook Realty Services, Inc. Six Flags New England
College of our Lady of the Elms Smith College
Easthampton Dye Works, Inc. Sterling Mortgage Corp.
Echo Village Corporation The Trust for Public Land
Fidelity Valuation Services Travelers Relocation Co
Hampshire College Trident Realty
Hampshire Property Management Group U.S. Appraisal, Inc.
Kestrel Land Trust University of Massachusetts
Knights of Columbus – Amherst University of Massachusetts-Amherst
Kollmorgan Corporation US Small Business Associations
Massachusetts Housing Partnership Fund Valley CDC
Merrill Lynch Relocation Valley Design & Development Corp.
Noble & Cooley Company W.D. Cowls
Nonotuck Land Fund WD Schock Company, Inc.
Northampton Manufacturing Westover Metropolitan Dev. Corp.
Oasis Development Enterprises, Inc. Wright Builders
PHH Homequity Zee Enterprises
Pro-Tech Services Ltd. U.S. Trust/Essex
Page | 98
Kensington Estates, Northampton, MA 06-2016
Municipalities and Government Agencies
Town of Amherst - Conservation Commission/ Department of Public Works
Town of Belchertown - Highway Department and Conservation Commission
Town of Chester – Town Administrator
City of Easthampton – Mayor’s Office and Planning Office
Town of Granby – Town Administrator
Town of Hatfield – Selectperson’s Office
Town of Longmeadow – Conservation Commission
Town of Monson – Conservation Commission
Town of Hadley – Town Administrator
City of Northampton - Planning Department/Department of Public Works
Massachusetts Department of Environmental Management
Town of Palmer - Planning Department
Town of South Hadley - Water Commissioners
Town of Southampton - Conservation Commission/Town Administrator
Town of Sunderland – Selectperson’s Office
Town of Whately - Recreation Department
Town of Williamsburg – Selectperson’s Office
Deerfield Economic Development and Industrial Corporation
U.S. Army Corp of Engineers
U.S. Fisheries and Wildlife
Franklin Regional Transit Authority
Greenfield Redevelopment Authority
Westover Metropolitan Development Corp.
Whately Housing Committee
Lawyers and Legal
Various Attorneys throughout Western Massachusetts
Copy of License