2013 FBO Appraisal

7/27/2019 2013 FBO Appraisal

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Update of appraisal of 102 W 2nd St Owasso, OK.

Appraisal Associates of N.E. Oklahoma, LLC Page 1

Real Property Appraisal

102 W 2 nd AvenueOwasso, Oklahoma 74055

For:The City of Owasso

Effective date July 25, 2013

ByRobert J Dunkle

The Burton Group/Appraisal Associates of NE Oklahoma, LLC104 East A Street

Jenks, OK. 918-298-5559


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Table of Contents

Letter of transmittal ..3Summary of Important Facts ..4Appraisers Certification ..5Assumptions and Limiting Conditions.. 6Definitions 9Scope of the Work .11Purpose of the Appraisal .12Intended Users .13

Zoning, Taxes & Assessment..14Flood Information.. 15 Highest and Best Use 16The Approaches to Value..18The Cost Approach 19The Income Approach Not Developed 21Sales Comparison Approach .22Sales Comparison Reconciliation Page .27Final Reconciliation and Appraiser Signature.. 28Addenda . 29 PhotosMaps

Appraisers Licensure and Qualifications


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August 9, 2013

Mr. John FearyCity of Owasso301 West 2 nd AvenueOwasso, OK. 74055

Re: former First Bank of Owasso Bldg.Owasso, OK.

Dear Mr. Feary:At your request, we have prepared an update to an appraisal prepared by this appraiser for

the above referenced property which is parts of Blocks 27 and 37, Original Town of Owasso,OK. The full legal is described later in this report. The original appraisal was dated June 27,2012 with an effective date of June 20, 2012. That report is, by reference, incorporated intothis update. Readers of this update should have thorough knowledge of the original appraisalin order to understand all facets of the update. The update is intended for your use only, noothers should depend on this report for any purpose.

The accompanyin g Summary Appraisal has been completed in accordance with the UniformStandards of Professional Appraisal Practice (USPAP) 2012-13. The attached report details thescope of the appraisal, level of reporting, definition of value, valuation methodology andpertinent data researched and analyzed in the development of this appraisal.

We certify that we have no present or contemplated future interest in the property beyondthis estimate of value. Your attention is directed to the Limiting Conditions and Assumptions onpages five through eight. Acceptance of this report constitutes an agreement with theseconditions and assumptions.

The opinion of value is located on the signatory page. We estimate the market exposure periodnecessary for the subject to achieve this value to be less than 12 months.Sincerely,

Robert J. DunkleAppraisal Associates of Northeast Oklahoma, LLC.OK. Certification # 12092 CGA Certified General Appraiser


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Summary of Important Facts

Location : 102 W 2 nd Avenue, Owasso, OK.

Legal Description Parts of Block 27 and 37, Original Town of Owasso, OK.

Zoning: CH High Intensity Commercial

Flood Zone: Zone X Shaded , Not in a Special Flood Hazard Ar ea

but is a 500 year Flood Zone

Highest and Best Use: Office Building

Site size : 131,122 sf m/l (per Tulsa County Assessor).

Buildings: One building of approximately 27,521 sf feet on two floors.

Utilities: All city utilities are available to the site.

Effective date of the appraisal: 07/25/2013

Values by various approaches:

Cost Approach: $1,800,000Income Approach: $Not DevelopedSales Comparison Approach: $1,625,000

Final Reconciliation of Indicated Value: $1,625,000

Estimated Marketing Time 9-12 months


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Certification

I certify that, to the best of my knowledge and belief,

the statements of fact contained in this report are true and correct.

the reported analyses, opinions, and conclusions are limited only by the reportedassumptions and limiting conditions and are my personal, impartial, and unbiasedprofessional analyses, opinions and conclusions.

I have no present of prospective interest in the property that is the subject of this appraisalreport and no personal interest with respect to the parties involved.

I have no bias with respect to the property that is the subject of this report or to the partiesinvolved.

my engagement in this assignment was not contingent upon developing or reportingpredetermined results.

my compensation for completing this assignment is not contingent upon the development orreporting 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 asubsequent event directly related to the intended use of this appraisal.

my analyses, opinions, and conclusions were developed, and this report has beenprepared, in conformity with the Uniform Standards of Professional Appraisal Practice .

I have made a personal inspection of the property that is the subject of this report.

no one provided significant real property appraisal assistance to the person signing thiscertification.

I have not performed any services connected with this property in the past three years.

________________________________________________Signed 08/09/2013Robert J. Dunkle, Oklahoma Certified General Appraiser # 12092 CGACertification expires August 31, 2014


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Premises of the Appraisal ___________________________________________________________________Assumptions and Limiting Conditions

All analyses and conclusions are based on the following Assumptions and Limiting Conditions,Definitions, Concepts and Identification of the subject property. Recognizing the premises is vital to thisappraisal assignment and to the analysis and conclusions that come from these premises.This appraisal is expressly subject to the following:

1. I assume no responsibility for the legal description provided or formatters pertaining to legal or title considerations. I assume that title tothe property is good and marketable unless otherwise stated.

2. I appraised the property as though free and clear of any or all liens orencumbrances, unless otherwise stated.

3. I assume responsible ownership and competent property management.4. I believe that information furnished by others is reliable, but I give no

warranty for its accuracy.5. I assume that all engineering studies are correct. The plot plans and

illustrative material in this report are included only to help the readervisualize the property.

6. I assume there are no hidden or unapparent conditions of the property,subsoil, or structures that render it more or less valuable. I assume noresponsibility for such conditions or for obtaining the engineering

studies that may be required to discover them.7. In this appraisal assignment, unless otherwise stated in the report, I did

not observe any potentially hazardous material used in the constructionor maintenance of the building and/or the existence of such materialson or in the property. However, I am not qualified, and do not have theequipment, to detect such substances. The existence of any potentiallyhazardous waste material may have an adverse effect on the value of the property. I urge the client to retain an expert in this field if theclient believes it is necessary or appropriate. If such hazardous material

is present a re-appraisal at additional cost may be necessary.


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8. I assume that the property is in full compliance with all applicablefederal, state, and local environmental regulations and laws unless the

lack of compliance is stated, described, and analyzed in the appraisalreport.

9. I assume that all licenses, certificates of occupancy, consents, and otherlegislative or administrative authority from any local, state, or nationalgovernment or private entity or organization have been or can beobtained and/ or renewed for any use on which the value opinioncontained in this report is based.

10. Possession of an original or copy of this report does not carry with it theright of publication or reproduction, nor may an original or copy of the

report be used for any purpose whatsoever by anyone except the clientwithout the previous written consent of the appraiser and the client.Out-of-context quoting from, and partial reprinting of this appraisalreport are expressly prohibited. The omission or change of any part of this appraisal report without my written authorization invalidates theentire appraisal report. Please note that this report is copyrighted.

11. Neither all nor any part of this report (especially any opinion of value,my identity, or the firm with which I am connected sh all bedisseminated to the news media, sales media, or any other public meansof communication without my prior written consent and approval.

12. I will appear and give testimony in court in connection with thisappraisal on request if I receive adequate advance notice in order tomake required preparations and scheduling arrangements. I will specifyand make charges in connection with pre-trial hearings, conferences,and court testimony in accordance with my usual practice. All of theabove will require compensation at our normal rate for all research timein or out of our office, transportation, and appearance time from ouroffice back to our office, regardless if we are requested or subpoenaed.

13. I assume that the use of the land and improvements is confined withinthe boundaries of the property described and that there is noencroachment or trespass, unless noted in the report.


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14. Any allocation of the total value opinion in this report between the landand the improvements applies only under the stated program of use.

The separate values allocated to the land and improvements must notbe used in conjunction with any other appraisal and are invalid if soused. Any value opinion provided in the report applies to the entireproperty and any proration or division into fractional interests willinvalidate the value opinion unless such proration or division of interestshas been stated in this report.

15. Nothing set forth in this report should be relied upon for the purpose of determining the amount or type of insurance coverage to be placed

upon the property. The appraiser assumes no liability for and does notguarantee that any insurable value estimate derived from information inthis report will result in the property being fully insured for any loss thatmight be sustained. Further, the Cost Approach may not be a reliableindication of replacement costs incurred in the event of a loss because itdoes not include many of the costs that may result from demolition, etc.and getting ready to rebuild. Also, due to changing costs of labor andmaterials and changing building codes and governmental regulationsand requirements, it does not reflect building costs for any date otherthan the effective date of this appraisal. An insurance professionalshould be consulted and they should measure the property andcalculate the amount of insurance needed based upon tables at theirdisposal.

16. Acceptance and/or use of this appraisal report by the client or any thirdparty constitutes acceptance of the stated Assumptions and LimitingConditions. My liability extends only to the stated client, and only in theamount of the fee actually collected, not to subsequent parties or un-named users of the report.


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Definitions of some terms and abbreviations used in this report.

Acre:43,560 square feet of land equals one acre. This is, roughly, 208.7 by 208.7 feet.

As-is: The condition observed upon inspection and as it physically and legally exists without hypotheticalconditions, assumptions, or qualifications as of the date of appraisal.The Appraisal of Real Estate, 12 th Edition, Appraisal Institute.

Depreciation (Physical)Reduction in value of an asset caused by the passage of time. This refers to loss of value due to deteriorationof the structure and is components that tend to wear out. In real estate appraisal, this term refers only to

improvements on the land, not the land itself.

Depreciation (External)Loss of value due to factors outside the property lines. This can affect the value of the buildings, the land, orboth.

Effective Date:Comparable data used in the valuation process of this report was based on market conditions that werecurrent as of the effective date. This effective date is important because the factors that influence value arealways in the process of change, possibly the value to fluctuate. Therefore, an opinion of value is valid onlyfor the point in time designated as the effective date.

Extraordinary AssumptionThis is the use of a condition that may, or may not, be true, but, for purposes of analysis and valuation, theappraiser assumes one stance or the other. The appraiser and readers must all know that, if the oppositecondition is found to exist, the appraisal must be adjusted. For instance, the owner reports that a propertycurrent zoned residential can be re-zoned commercial and the client wishes to have the property appraised asthough it can be re-zoned to commercial, but the appraiser cannot confirm that possibility.

Fee Simple EstateThe most complete form of ownership of real property, absolute ownership, subject only to taxation andpolice powers of the state.

FEMAThis is the Federal Emergency Management Agency which publishes the Flood Insurance Rating Maps (FIRM)utilized in determin ing the Flood Zone designation for this property.

Functional ObsolescenceLoss of value due to improvements in technology and materials utilized in newer buildings,as well as poor floor plans, etc.


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Highest and Best Use

The maximally productive (in economic terms) potential usage of a property subject to location, zoning andother restrictions. In other words, this is the use that would return the most dollars to the land. Morediscussion of this subject is within the report.

Leased FeeThis is similar to fee simple, except that the owner has leased to (a) lessee(s) certain described rights that thefee simple owner had prior to execution of the lease and the property is valued subject to that (those)lease(s).

Market ValueThe most probable price in cash or terms equivalent to cash, or in other precisely revealed terms for which the

appraised property would sell with the buyer and the seller each acting prudently, knowledgeably, and for self interest, and assuming that neither is under undue duress.

Fundamental assumptions and conditions presumed in this definition: The buyer and seller are motivated by self-interest. Buyer and seller are well informed and are acting prudently. The property is exposed for a reasonable time on the open market. Payment is cash, its equivalent, or in specified financing terms. Specified financing terms, if any, may be financing actually in place or on terms generally available for

the property type in its locale on the effective date of the appraisal. The effect, if any, on the amount of market value of atypical financing, services or fees shall be clearly

and precisely revealed in the appraisal report.From The Appraisal of Real Estate, 12 th Edition, Chicago, Appraisal Institute, 2001, pages 23-24

Sf Square foot (feet) or square footage, usually applies to gross building area, net rentable area or site size.Psf Per square foot, usually applies to price per square foot of building or land.

Remediation:the act, or process, of correcting a fault or deficiency.

Scope of WorkOutlines the extent of research and reporting that were requested by the client and utilized by the appraiserfor this report.


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Scope of Work

What was done.This update of appraisal was prepared in compliance with the Uniform Standards of Professional

Appraisal Practice (USPAP) as developed and issued by the Appraisal Foundation.The preparation of the report included a visitation to the subject property. Also, NortheasternOklahoma Real Estate Services (NORES) Multiple listing service, Tulsa County and Indian NationsCouncil of Governments may have been utilized for information pertaining to zoning, floodplain andother factors.The area, community and neighborhood data was analyzed for the impact on the subject property.The market investigation included a search for sales of comparable properties, and comparablesrent data in the community. This information was developed from knowledgeable brokers, agents,owners and other sources deemed reliable, including county records.The sales and rentals were analyzed for influences on values including, but not limited to sales

conditions, sales terms and time factors.The data was analyzed to indicate elements of comparison and support for the capitalization ratesfor the investor market. The approaches were analyzed for appropriateness to this report.

What was not doneThis appraiser is not a building inspector and this report should not be viewed as an inspectionreport. The visitation to the property was only for purposes of valuation and NOT for determinationof the adequacy or probable reliability of any portion of the property or component of theimprovements.

We are NOT engineers. Determination of the structural integrity and adequacy of the variousbuilding components or proposed components is outside the scope of work for this appraisal.

We are NOT surveyors. No plat of survey was furnished to this appraiser. We assume that theimprovements of the property are ON the property with set-backs, etc. that fall within therequirements of the county and/or city in which it is located.

An environmental study of the property was NOT performed.

Asbestos and mold studies were performed by others and the client indicates no problems were

found.

This is a Summary Appraisal Report under 20 12/13 Uniform Standards of Appraisal Practice. It isreported with what is considered to be sufficient background information to allow the reader tounderstand and follow the logic used by the appraiser in arriving at the indicated conclusions.


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Address of the property:The physical address is 102 W Second Avenue, Owasso, OK.

Legal Description:No survey or contract of sale was furnished to this appraiser. We base the followingdescription on data available from public records and other information:

Lots 1,2,3,4,5, less the south 50 of lot 5, and Lots 6 and 7, and the East 100 of the vacated alleyway in Block 27, and Lot 1, less the south 125.73 thereof, Block 37, Original Town of Owasso,Oklahoma.

We did not find any evidence that First Bank Owasso was ever deeded title to the western240.9 feet of the vacated alley.

Assessors Parcel Number(s): There are six parcel numbers contained within this report: R61000143100 (605), (160),

(170), (180),(190), & (200).

The Owner of Record:The owner of record is First Bank of Owasso, P.O. Box 1800, Owasso, OK. 74055-1800.

Rights Appraised:The rights to be appraised are the fee simple title to the real estate and all appurtenancesthereto, except mineral rights (if any) and the easements conveyed. The subject is evaluated asfree and clear of all encumbrances and/or mortgages.

Purpose of the Appraisal :The purpose of the appraisal is to estimate the market value, as defined earlier in this report,for the subject property, based on its highest and best use with no restrictions other thanthose imposed by the normal health, safety, and police power of the government and recordedeasements, as of the effective date of this report.

Function of the Appraisal: The function of the appraisal is to provide the client with a current estimate of the market valuefor use in a purchase decision concerning the subject property.


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Intended Users of the Appraisal:The intended user of this report is the City of Owasso, and no other.

Limitations:The value estimates contained in this report are valid and effective as of the 25 th day of July, 2013. This report is subject to the Assumptions and Limiting Conditions containedthroughout this report, including addendums .


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The PropertyWe are going to limit our analysis of the subject area as the client has knowledge of statistics,etc. that even this appraiser does not have access to and any information we mightregurgitate here is not likely to a ffect the clients purchasing decision, and would only result

in cluttering up the report.

The AreaThe Tulsa Metro area is a diversified metropolitan area of over three-quarters of a millionpeople located in the northeastern part of Oklahoma. Tulsa is the second largest city in thestate, is the county seat for Tulsa County, and the focus of a five county SMSA. Theunemployment rate is now just over 5%. Commercial property sales activity has slowedsubstantially from 2008 levels as investors stay on the sidelines for more promising news on thenational and state economy.

The Community Owasso is, basically, a bedroom community for the City of Tulsa. A large contingent of American Airline employees reside in Owasso, but there are, also, large employers located inthe Cherokee Industrial Park a few miles west of Owasso. Development of the 96 th StreetCorridor has greatly enhanced the retail community in Owasso. Two hospitals built severalyears ago provide good medical facilities for the community and the area north and east of Owasso.

The Site The site is located on the southwest corner of the intersection of West Second Avenue and

South Main Street in the southwest portion of Owasso. Based on compilation of the squarefootage supplied by the Tulsa County Assessor for each of the tracts involved, we find thatthere is 131,112 sf contained in the five tracts appraised. According to the NRCS Web SoilSurvey the practicability of utilization of the site for small commercial use is Very Limited.We have attached a copy of that study for the client to peruse. Since a building is already inuse on the site, it may not be of any value to the client, but we submit it for your use. The soilon the entire site is Dennis Silt Loam with 1 -3% slopes. The main concern with this type of

soil is the permeability, wetness, high shrink/swell potential and the texture and acidity of thesub-soil. All city utilities are available to the tract.

Zoning InformationPer the City of Owasso, the zoning for the subject tract is CH for Commercial, High Intensity.


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Highest and Best Use

The Highest and Best Use concept is probably the most misunderstood and misused term

among appraisers and the general public. The concept and its utility is applicable inpredominantly three cases.

1. Currently vacant parcels where value could be influenced according to thedevelopment pursued.

2. Parcels where zoning or possible zoning exists which could produce a more intensedevelopment and, thus, a value greater than the current use. An example could be asmall, older, low value housing structure at a commercially zoned interchange.

3. A deteriorated structure, whose value has been depreciated and whose value is less

than the value of the land and cost of demolition.Highest and Best Use is a concept that deals in land categories such as residential,commercial, industrial, etc., but not the issue of intensity.

The concept utilizes the following four criteria, all of which must be met:

1. Legally permissible2. Physically possible3. Economically feasible4. Maximally productive.

These criteria also bring into consideration zoning, land use trends, the property size and shapeand competition between alternative uses and alternative sites.

Considering the maximization of return to the land, one must consider all of the factors thatplay into why a business would locate on a particular tract. When the subject building wasbuilt, most of the commerce of Owasso was on the west side of Highway 169, between 76 th Street North (2 nd Ave) and 86 th Street North. The building trend has, actually, been away fromthe site. The center of commercial area has been pulled to the north and east by thedevelopment of areas on the east side of Highway 169 and the development of the 96 th Street corridor and Garnett Avenue running north from 86 th to 96 th . Partially due to the layof the land, there has not been successful development of the area around the subject and tothe west.


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We consider the management of First Bank of Owasso to be knowledgeable (and successful)people who know the Owasso market. The fact that they elected to spend in excess of sevenmillion dollars to move their headquarters and did not even leave a branch bank at thislocation, reinforces our opinion that the highest and best use for the site, as improved, is not as

a bank. Given the construction and size of the improvements, conversion to straight officespace, is the logical transition for the property. Because of its size and the limited demand foroffice space in Owasso the market for the building is considered to be limited.

The highest and best use if vacant would be some form of retail space.

The highest and best use as improved is as an office building with remodeling needed to bestutilize the space and renovation needed to restore the condition of the building.


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Analysis

The Approaches to ValueThere are three generally accepted approaches to determining value. Each has their strengthsand weaknesses and each contributes to an understanding of value. The following describeseach approach.Cost ApproachThis method is, almost, a construction cost technique. This method adds the raw value of theland to the actual cost of construction of a replacement facility, minus the actual and accrueddepreciation for the current age of the improvements to give an indication of value. This ismost applicable when the buildings are new and not impacted by the large swings sometimesexperienced with the subjective nature of depreciation.

Income CapitalizationAn income stream for rental of space is worth a calculable price, which is the value the investoris willing to pay to secure that income stream. In order to calculate that value, it is necessary tohave data which presents that gross income as well as the expenses and expected rate of returnfor the investor. This approach is most applicable to properties which have stable incomepotential, are not influenced by speculation (as opposed to investment) and are not likely to beowner-occupied property. Where data is complete and not derived, this approach helps tosupport a determination of value.

Sales Comparison ApproachThis approach compares the subject property to the price of recent sales of similar property. Inan active market, with sufficient, this is an accurate method. Adjustments are made for varyingcharacteristics of the various properties, based on market reaction to those characteristics, soas to reach a valid comparison level.

The Cost and Sales Comparison Approaches will be developed in this report, with varying levelsof reliability. Since the current design of the building does not mesh with the Highest and BestUse of the building, there will be substantial functional obsolescence in addition to the

physical depreciation caused by time and the elements. The building has been owner -occupied and is proposed to be owner -occupied so there is no rental history and an incomestream from rentals is not the reason for the proposed purchase.


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Cost Approach

The building is a story and a half, Class C office building, built, partly in 1962 with the two

story portion built in 1982, of Average to Good quality and in Fair c ondition for its age. ClassC buildings are characterized by masonry construction. The county assessors records indicatethat the building is of metal frame construction . We anticipate that the original portion wasof full masonry construction as steel studs were not common in 1962. The two story portionmay be of metal frame, but is, mostly of drywall interior covering, so there is combustiblematerial which places it in the Class D.

Since the building does not exactly meet either of the quality grades, we will interpolatebetween the values shown by M & S . The Marshall & Swift estimated cost to construct a bank

building of frame with brick veneer construction in the Tulsa, Oklahoma area in June,2012 is$ 174.80 psf for a good quality building and $135.11 psf for an average quality building. Theelevator would add an estimated $2.65 psf. This would bring our estimated cost to constructto 157.60. M & S estimates that a comparable office, or bank, building will have an economiclife of 50-55 years. The combined actual age of the building is 40 years, but we estimate theeffective age to be 28 years since a new roof has been installed and new windows installed inthe foyer area . Calculation of the value of the building by the Cost Approach, then is:

A 28 year effective age on a building with an expected 50 yr economic life would result in

56% physical depreciation. Since the Highest and Best Use calls for this to be converted toregular office space, we must allow an additional 20 % allowance for Functional Obsolescence

Cost to build 163.40 27,521 sf 4,496,931Less Depreciation 76% -3,417,668Est. Depreciated Value 1,079,263

To determine the land portion of the value, we will utilize comparison to sales of other vacantland in the area.


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Income Approach

The Income Approach is not developed for this report.


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Sales Comparison ApproachWe are utilizing the following sales in our Sales Comparison Approach. The reader will notethat there is a combination of buildings formerly utilized by financial institutions and others

that were built as office buildings.

1. Boston Place 1516 S Boston Avenue, Tulsa, OK. This four story office building s oldNovember 29, 2012. The building is of Class A construction of fireproof steel framewith masonry, built in 1983. There are two elevators in the building. The buildingcontains 56,060 sf of gross building area and was about 65% leased up at the time of sale. The building sold in average condition for its age and the location is considered tobe superior to the subject.Seller: Acron Boston Place, LP Buyer: Main Square Towers, Inc.Consideration $3,500,000 or $59.76 psf Date of Sale: 11/29/2012


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2. 4770 S Harvard Ave, Tulsa, OK. The former Jack Richards Foundation building, thisbuilding was purchased and razed for inclusion in development of the corner of 49 th (I-44) and Harvard Avenue. This building included an additional showroom building, butit had structural problems and we have not included it in the square footage shown.The building was built in 1980. It contained 12,430 sf and the site size was 84, 942 sf.The building was considered to be in low fair condition at the time of sale.Seller: Jack Richardson FoundationBuyer: American Commercial Development 49 th and Harvard, LLC.Consideration: $730,000 or $ 58.73 psf Date of Sale: 06/14/2013


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3. 6737 S 85 th Avenue East, Tulsa, OK. this 21,704 sf office building is located across thestreet from the north end of Woodland Hills Shopping Center . The 21,704 sf buildingwas built in 1979 and sold in good to very good condition and about 90% leased up.The building sets on a 2.92 acre site with ample parking and good room for landscaping.Designed of unique architecture, the building is reported by the county assessor to beof wood frame construction. However, it appears to us to be of steel frame with mostlyglass exterior with areas of th e first floor that are bermed . The location and conditionare considered to be superior to that of the subject.Seller: Bronco Properties, LLC Buyer: UFS Real Estate, LLCConsideration: $2,000,000 or $92.15 psf Date of Sale: 12/20/2012


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4. 10314 N 138 th Avenue East, Owasso, OK. This building is located in the northeastportion Owasso, a few blocks from the new Sams Warehouse Club building that isunder construction. It is of Class D (combustible, wood frame) construction and wasbuilt in 2004. It is a very different type of building from the subject, but is includedbecause it is a recent sale of office space in Owasso. The building was considered to bein good condition at the time of sale. The building contains 9,010 square feet and thesite contains 26,193 sf, all per the Tulsa County Assessor.Seller: CRK Properties, Inc. Buyer: SVR, Inc.Consideration: $ 500,000 or $55.49 psf Date of Sale: 11/15/2012


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11980 E 86 th St N, Owasso sold 12/31/2012 for $525,000 or $154.78 psf. This building was builtin 1991, contains only 3,392 sf and is in a much superior location, so, with sufficient othersales, we will not analyze this sale.

An office property that is for sale and located fairly close to the subject property is 202 East 2nd

Avenue. This 6,080 sf building, built in 1984 is shown to be 92% leased up and is for sale for$585,000 or $95.93. The broker indicates that the owner is wanting to complete a sale with alease back for five years. This sale, if completed, would not be of great worth in valuing thesubject as it has already found its tenant for, at least, the first five years.


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Reconciliation of differences in comparable sales

Sale # $/sf Bldg size Location Condition Land/Bldg. % Adj. Adj.Quality Ratio $/sf

Subj N/A 27,521 Good Fair Plus 4.76:11 59.76 56,060 Superior Average 0.9:1

+5% -5% +10% 0 59.762 58.73 12,430 Superior Inferior 6.8:1

-15% +5% -5% -15% 49.923 92.15 21,704 Superior Superior 5.9:1

-15% -10% -5% -30% 64.504 55.49 9,010 Similar Superior* 2.9:1

-5% +5% 055.49

The range of adjusted values is rather large ($49.92 to $64.50), so we look for some way tonarrow the range. If one throws out sale 2 which was sold for the land it was setting on, therange goes to a more manageable $55.49 to $64.50. It is our opinion that a reasonable andsupportable value would lie in the middle portion of that range or $59.00 psf. The calculationof the value, then, by the Sales Comparison Approach is:

27,521 sf times $59.00 psf equals $1,623,739

Indicated value by the sales comparison approach is $1,625,000 rounded


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Reconciliation

Indicated value by the Cost Approach $1,800,000Indicated Value by Income Approach $ Not DevelopedIndicated Value by Sales Comparison Approach $1,625,000

We have presented and analyzed four properties of rather diverse sizes, amenities andlocations. There is so much accrued depreciation in the Cost Approach that we would not giveit much consideration if it were very different from the Sales Comparison Approach. However,

it supports the Sales Comparison Approach value, so we shall, then, utilize the salescomparison approach value for the final indicated value. The reader should understand thatthis is not a stand alone appraisal and that the original appraisal of June 27, 2012 (6/20/2012effective date) contains some information that may be needed to fully understand this updateof value.

The final indicated value as of July 25, 2013, then is $ 1,625,000

__________________________________________Signed August 11, 2013Robert J. Dunkle, Certified General Real Estate AppraiserOklahoma Certification # 12092 CGA License expires 8/31/2014


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Addenda


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2013 FBO Appraisal

Documents

Transcript of 2013 FBO Appraisal