APPRAISAL-Beaver Brook Greenway-ST Marys-2019
RESTRICTED APPRAISAL REPORT
MAP 6, PARCEL 8
HAYDENVILLE ROAD
NORTHAMPTON, MASSACHUSETTS
PREPARED FOR
MR. B. JOHN DILL
COLEBROOK REALTY SERVICES
1441 MAIN STREET
SPRINGFIELD, MASSACHUSETTS 01103
PREPARED BY
MICHAEL F. CROWLEY, MAI &
JASON FENLASON
CROWLEY & ASSOCIATES
70 POST OFFICE PARK- SUITE 7011
WILBRAHAM, MASSACHUSETTS 01095
DATE OF INSPECTION AND EFFECTIVE DATE OF VALUATION
MARCH 8, 2019
April 19, 2019
Mr. B. John Dill
Colebrook Realty Services
1441 Main Street
Springfield, Massachusetts 01103
Re: Restricted Appraisal Report :
Map 6, Parcel 8
Haydenville Road
Northampton, Massachusetts
Crowley & Associates File #17347
Dear Mr. Dill:
At your request, we have developed the attached Restricted Appraisal Report for the
purpose of estimating the Market Value of the fee simple interest in a hypothetical 44.7
acre portion of the property identified as Map 6, Parcel 8, Haydenville Road in
Northampton, Massachusetts. The most recent date of inspection was March 8, 2019 and
it is this date that will serve as the effective date of the appraisal. The intended user of
this appraisal is Colebrook Realty Services. The intended use of this Restricted Appraisal
Report is for asset valuation in conjunction with internal business purposes.
According to information obtained from the City of Northampton Assessor's Office, the
larger property consists of a single parcel that contains 52.8 acres of land. The larger
parcel is further identified in the Northampton Assessor's Office on Map 6 as Parcel 8.
At the specific request of the client, we have assumed that a 44.7 acre parcel will be
subdivided from the larger parcel. Per the Northampton Planning Department, the
subject is located within a Rural Residence (RR) Zoning District.
The hypothetical subject parcel consists of heavily wooded, unimproved land with
sloping topography throughout. A portion of the site contains a pond and additional
portions of the site are affected by wetlands. The hypothetical site has no street frontage.
The larger site is utilized as the St. Mary's Cemetery.
The Hampshire County Registry of Deeds (H.C.R.D.) information notes a deed reference
for the subject propert y as Book 659, Page 377. However, the reported book and page
does not match any recorded deed per the H.C.R.D. web-site. We recommend that a title
search be conducted prior to any transfer of the subject . To the best of our knowledge the
larger subject property ha s not transferred within the prior three years, nor is it currently
listed for sale or encumbered by a purchase and sale agreement.
We do note that it has been reported to us that the City of Northampton is interested in
acquiring the hypothetical subject site for conservation purposes. Reportedly, there has
been no formal offer submitted, but an informal offer in the range of $60,000-$65,000
has been discussed.
Mr. B. John Dill
Page 2
April 19, 2019
We note that properties owned by the Roman Catholic Bishop of Springfield are only
transferred under a deed restriction running with the land providing that in no event shall
the Premises ever be put to any use that is inconsistent with the teaching of the Roman
Catholic Church as determined in the sole discretion of the Roman Catholic Bishop of
Springfield. We do not believe that this restriction has an effect on the potential
marketability of the property.
SCOPE OF THE RESTRICTED APPRAISAL REPORT
This is a Restricted Appraisal Report, which is intended to comply with the reporting
requirements set forth under Standard Rule 2-2(c) of the Uniform Standards of
Professional Appraisal Practice for a Restricted Appraisal Report. As such, it does not
include discussions of the data, reasoning, and analysis that were used in the appraisal
process to develop our opinion of value. Supporting documentation concerning the data,
reasoning, and analyses is retained in our file.
It is understood that the client is aware of the reporting limitations inherent in a
Restricted Appraisal Report. We have determined that a reasonably accurate analysis of
the subject property is possible within the scope of a Restricted Appraisal Report.
The preparation o f this Restricted Appraisal Report consists of:
An inspection of the subject property on March 8, 2019.
Research and collection of market data related to market conditions and market
activity.
Some degree of due diligence to determine the existence of adverse conditions.
A highest and best use analysis.
Development of the Sales Comparison Approach.
Arriving at a value conclusion and writing this report.
It is important to note that the Restricted Appraisal Report process did not include the
following:
Review of environmental surveys.
Development of the Income and Cost Approaches. These Approaches were not
utilized as they are not valuation methods that would typically be used by other
market participants.
Inclusion of data utilized in determining the final value, which is retained in our
file.
Mr. B. John Dill
Page 3
April 19, 2019
DEFINITION OF MARKET VALUE
Market Value is defined as “the most probable price which a property sho uld bring in a
competitive and open market under all conditions requisite to a fair sale, the buyer and
seller each acting prudently and knowledgeably, and assuming the price is not affected by
undue stimulus. Implicit in this definition is the consummation of a sale as of a specified
date and the passing of title from seller to buyer under conditions whereby:
(1) Buyer and seller are typically motivated;
(2) Both parties are well informed or well advised, and
acting in what he considers his own best interests;
(3) A reasonable time is allowed for exposure in the open market;
(4) Payment is made in terms of cash in US dollars or in
terms of financial arrangements comparable thereto;
(5) The price represents the normal consideration for the property sold unaffected
by special or creative financing or sales concessions granted by anyone
associated with the sale.”1
THE “AS IS” VALUE
The “as is” value represents the value of the subject property in its reported c ondition as
of the effective date of the appraisal. It represents the highest probable price that a
prudent purchaser would pay for the subject considering all of the costs and risks inherent
in its future development/ownership.
HYPOTHETICAL SCENARIO/LIMITING CONDITION
The valuation of the subject is hypothetical as the subdivision scenario contemplated does
not exist at this time. The valuation of the hypothetical parcel is contingent on an
assumption and the valuation rendered may not be valid if this assumption proves to be
incorrect. In the valuation of the conceptualized parcel, we have made the following
assumption.
It is assumed that the hypothetical subdivision of the property will occur as contemplated.
We again note that we have provided a Market Value estimate for:
1.) The value of a hypothetical 44.7 acre parcel subdivided from the larger parcel.
1 Office of the Comptroller of the Currency. Rule 12 CFR 34.42 (f).
Mr. B. John Dill
Page 4
April 19, 2019
The valuation of the property under this scenario is hypothetical and as such a Limiting
Condition is required. Based upon our research, the subdivision contemplated herein is
physically possible and legally permissible. As such, we believe that such a subdivision
of the land as contemplated herein is reasonably probable. However, if for any reason
such a subdivision should be disallowed, the value of the hypothetical parcel as proffered
in this appraisal would be materially impacted. Therefore, we reserve the right to alter
the opinion of value rendered herein if the hypothetical subdivision of the pro perty does
not come to fruition.
EFFECTIVE DATE OF THE APPRAISAL
Jason Fenlason physically inspected the subject property on March 8, 2019 and
photographs of the subject property were taken at that time. Michael F. Crowley, MAI
has also inspected the subject property. March 8, 2019 shall serve as the effective date of
the appraisal. General assumptions and limiting conditions applicable to this Restricted
Appraisal Report are attached to this report.
PROPERTY RIGHTS APPRAISED
As of the most recent date of inspection, the larger subject property was utilized by
current ownership. To the best of our knowledge, the subject property is unencumbered
by any long term lease agreements. Therefore, we have addressed the fee simple estate,
which is defined as:
“…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 and escheat.”2
ASSIGNMENT ACCEPTABILITY
Based on market data available and our research, we have used the valuation
methodology that is most relevant for the property type. It is our opinion that a similar
valuation methodology would be used by other market participants and our peers.
COMPETENCY STATEMENT
Based on our knowledge of the real estate market, we certify that we have the knowledge
and experience to complete this assignment in accordance with the competency rule in
the Uniform Standards of Professional Appraisal Practice (USPAP).
2 The Appraisal Institute, The Appraisal of Real Estate, Fourteenth Edition, Chicago, 2013, p. 5.
Mr. B. John Dill
Page 5
April 19, 2019
EXPOSURE PERIOD
Exposure period is the amount of time that a property would have needed to be exposed
to the market in order for the property to achieve a value that is consistent with that
which we have concluded in our report. Consequently, our va lue estimate assumes that
the subject property would have been exposed to the market for a 12 month period and is
based upon market conditions and comparable sales data that occurred prior to the
effective date of this appraisal.
Mr. B. John Dill
Page 6
April 19, 2019
Subject photographs taken on March 8, 2019 by Jason Fenlason
Mr. B. John Dill
Page 7
April 19, 2019
Subject photographs taken on March 8, 2019 by Jason Fenlason
Mr. B. John Dill
Page 8
April 19, 2019
Subject photographs taken on March 8, 2019 by Jason Fenlason
Mr. B. John Dill
Page 9
April 19, 2019
Subject photographs taken on March 8, 2019 by Jason Fenlason
Mr. B. John Dill
Page 10
April 19, 2019
LOCATION AND SITE DATA
The subject property is located along Haydenville Road (Route 9) in the Leeds section of
the Town of Northampton. The Leeds section of the city is located in the northwest
corner of Northampton abutting the Town of Williamsburg. The general neighborhood is
defined by the Town of Williamsburg to the north, the Village of Florence section of
Northampton to the south, the Town of Westhampton to the west, and Routes 5 and 10 to
the east.
Haydenville Road (Rte. 9) is a moderate to heavily traveled primary artery that, in the
area of the subject, runs in a north/south direction. The Williamsburg town line is located
less than a mile north of the site. The subject property is abutted by undeveloped land to
north, south and west. The immediate and extended neighborhoods present a mix of
residential, commercial and recreational uses with some large tracts of wooded and
unimproved land. The property is located in close proximity to Look Memorial Park.
We note the April 2010 sale of a 4.051 acre former portion of the larger subject parcel
from the Roman Catholic Bishop of Springfield to The City of Northampton for a
recorded consideration of $35,000. The parcel was located along the western boundary
of the larger parcel in immediate proximity to the Mill River. The parcel was acqu ired,
along with numerous additional parcels in the area, for the creation of a rail trail.
No adverse conditions were noted in the neighborhood on the date of inspection. We do
not foresee any major changes in the neighborhood in the immediate future.
Mr. B. John Dill
Page 11
April 19, 2019
Land Area/Frontage: According to information obtained from the City of Northampton
Assessor's Office, the larger property consists of a single parcel that contains 52.8 acres
of land. The larger parcel is furt her identified in the Northampton Assessor's Office on
Map 6 as Parcel 8. At the specific request of the client, we have assumed that a 44.7 acre
parcel will be subdivided from the larger parcel. The hypothetical site has no street
frontage.
Shape/Topography: Irregular in shape. Heavily sloping throughout the site.
Site Improvements: The hypothetical subject parcel consists of heavily wooded,
unimproved land with sloping topography throughout. A portion of the site contains a
pond and additional portions of the site are affected by wetlands. The hypothetical site
has no street access.
Utilities: E. There is electricity in the street near the site. The subject parcel does not
have public water or sewer. There are no public water or sewer systems in the area and
properties rely on private water and on-site sewage systems which is typical of the market
and is not considered to pose a negative influence on the value and/or marketability of the
property.
Flood Plain: According to Flood Insurance Rate Map #2501670001A, dated April 3.
1978, the subject site is located in Zone C, which is an area of minimal flooding. The
appropriate section of the flood map is located on the following page .
Mr. B. John Dill
Page 12
April 19, 2019
Mr. B. John Dill
Page 13
April 19, 2019
Environmental: No site assessments have been made available to us and at the time of
inspection there were no adverse site conditions noted. Therefore, we have assumed that
the subject site meets all acceptable standards with regard to the Massachusetts General
Law Chapter 21E, “The Massachusetts Oil and Hazardous Material Release Prevention
and Response Act.” We reserve the right to alter our opinion of value proffered within
this report if there proves to be contamination at t he site.
ZONING
According to the Northampton Planning Department, the subject is located within a Rural
Residence (RR) Zoning District. Uses permitted by right include single-family
residences, home businesses, family day care, cemetery, agricultural and essential and
municipal facilities among others. Additional uses permitted via Site Plan Approval
include educational, re-use of educational or religious buildings and year -round
greenhouse/stand for wholesale and retail sale of agricultural products ra ised on site
among others. Minimal dimensional requirements for the Rural Residence zone are as
follows:
Minimum dimensional requirements
District Minimum
Lot Size
Minimum
Area/Unit
Minimum
Frontage
Minimum
Front/Side/Rear
Maximum
Height
Maximum
Coverage Ratio
RR 80,000 SF* None 175' 40’/20’/50’ 35’ 20%
*Properties with private water and sewer
The hypothetical subject site would not meet the frontage requirement of the current
zoning by-laws and as such, would be considered to be a legal, non-conforming site. The
appropriate section of the City of Northampton Zoning Map is included in the addendum
section of the report.
ASSESSMENT/TAXES
The subject property is currently tax exempt.
BUILDING IMPROVEMENTS
There are no permanent structures on the hypothetical subject site.
Mr. B. John Dill
Page 14
April 19, 2019
HIGHEST AND BEST USE
Highest and best use as defined in The Appraisal of Real Estate, Fourteenth Edition,
published by the Appraisal Institute, is as follows:
“the reasonably probable and legal use of vacant land or an improved property that is
legally permissible, physically possible, appropriately supported, financially feasible and
that results in the highest value.”3
The procedure to be applied in estimating highest and best use involves a four-stage
analysis as follows:
1) Possible Use - To what uses is it physically possible to put the site in question?
2) Legally Permissible Use - What uses are permitted by zoning and deed restrictions on
the site in question?
3) Feasible Use - Which possible and permissible uses will produce any net return to the
owners of the site?
4) Highest and Best Use - Among the feasible uses, which will produce the highest net
return or the highest present worth?
When the property being appraised is improved with structures it is necessary to
determine the highest and best use of the property “as if vacant” as well as “as
improved”. However, when a property is not improved with any structures or site
improvements, only the highest and best use “a s vacant” need be analyzed.
3 The Appraisal Institute, The Appraisal of Real Estate, Fourteenth Edition, Chicago, 2013, p. 333.
Mr. B. John Dill
Page 15
April 19, 2019
HIGHEST AND BEST USE AS VACANT
The hypothetical subject property consists of a single parcel that contains 44.7 acres of
Rural Residence (RR) zoned land. Portions of the site contain wetlands, ponds, streams
and are heavily wooded. The hypothetical parcel is situated off of Haydenville Road but
has no street frontage and access could only be achieved via the larger subject parcel
which is currently under common ownership.
Uses permitted by right include single-family residences, home businesses, family day
care, cemetery, agricultural and essential and municipal facilities among others.
Additional uses permitted via Site Plan Approval include educational, re -use of
educational or religious buildings and year-round greenhouse/stand for wholesale and
retail sale of agricultural products raised on site among others. The site could physically
accommodate a number of uses.
We have considered a number of development scenarios for the sub ject parcel including
agricultural and municipal. We have also considered residential development for the
subject land. However, all of the uses require street frontage, which the hypothetical lot
will not have. Additionally, the sloping topography would likely make any development
not financially feasible.
We have also considered maintaining the site as open space for preservation and/or
conservation purposes. The subject property is located in an area where many properties
consist of open space or co nservation land and as such, we believe that there would be
interest in preserving the subject property as open land. As noted, a former portion of the
larger parcel was previously acquired for conservation purposes with a portion utilized as
a rail trail. The subject parcel is proposed to be acquired for similar purposes.
As such, we have concluded that use of the land for conservation/preservation purposes,
or for an abutter for expansion or privacy purposes , would constitute the highest and best
use of the hypothetical subject site based on the physically possible, legally permissible,
and most economically feasible uses.
Mr. B. John Dill
Page 16
April 19, 2019
VALUATION METHODOLOGY/VALUE CONCLUSION
We have considered all three methods of valuation in this Restricted Appraisal Report
and have selected the Sales Comparison Approach to value the subject. This approach
best reflects the current behavior of owners who would consider purchasing property like
the subject. We have researched sales activity in the subject market for results that allow
us to draw an estimate of value for the subject property. In our opinion, the Sales
Comparison analysis yielded a sufficient amount of data from which we could draw a
reasonable conclusion as to the per acre value range that we believe the Market Value of
the subject land would fall. All of the data used in the valuation of the subject has been
verified to the best extent possible, and we are confident that the information relied upon
to draw our conclusion is accurate and is the best information available for review. The
sales, reasoning and analysis of the sales are retained in our file.
The local market was researched for transfers of large parcels of land that present
somewhat similar locational and physical characteristics to the subject. We looked
within the City of Northampton, the surrounding communities and Hampden and
Hampshire County for sales of large tracts of land that were nominally improved, had
limited development potential and/or were acquired for conservation/recreational
purposes. The sales utilized were those properties which were considered to be most
similar to the subject property and were selected based on their comparability and
similarity to the subject in regards to characteristics such as date of sale, location, land
area, utility and zoning. The sales were examined and compared to the subject to provide
a per acre value for the subject property. While there were more sales that occurred in
the market in the area of the subject these sales were not included mainly due to size,
utility, and/or date of sale discrepancies.
In conclusion, in determining a value estimate for the subject property we have relied on
the sales data that we have retained in our file. In general, the q uality and quantity of
data is considered to be adequate for forming a value estimate for the subject.
Mr. B. John Dill
Page 17
April 19, 2019
After considering all of the available data, it is our opinion that the best method of
determining the Market Value for the subject property is to base it on a sale price per acre
basis as compared to similar sales. The per acre prices ranged from a low of $1,000 per
acre to a high of $6,000 per acre with the majority of the sales within the range of $1,000-
$3,000 (rounded) per acre. Based on all the information that we have compiled, it is our
opinion that a per acre value range of $1,500 to $2,000 per acre is a fair representation of
the Market Value. We believe that the hypothetical subject lot would command a pr ice
towards the middle of the range or $1,750 per acre. Therefore, based on our selection of
$1,750 per acre, it is our opinion that the Market Value of the fee simple interest in the
subject via the Sales Comparison Approach is $78,225 (44.7 acres SF x $1,750 per acre)
which we have rounded to the nearest $5,000 increment, or:
EIGHTY THOUSAND DOLLARS
$80,000
Thank you for contacting our firm for this assignment. If you have any questions
concerning our valuation and analysis, please co ntact us at (413) 682-0050.
Sincerely,
Michael F. Crowley, MAI
MA General Certified #571
Jason Fenlason
MA Trainee License #103125