RockSpringCluB-Hendricks Appraisal.pdf

DESCRIPTION OF PROPERTY THELAND - Based on tax maps & survey by G.C. Stewart Associates: Block 160.01, Lot 30: The parcel is irregular in shape having a frontage of 523.23 feet along Walker Road, a depth on the east side of 1,327.69 feet in multiple courses, including 566.00 feet of frontage along Undercliff Terrace South; a depth on the south side of 735.11 feet in multiple courses including 416.88 feet of frontage along Hillcrest Avenue (Township of South Orange Village); and is 1,155.00 feet (scaled) along the west side. The parcel is generally contour level with the grade of Walker Road, Undercliff Terrace South and Hillcrest Avenue. It is served with all available municipal improvements, services and public utilities including gas, water, sewer, and electric, It appears to be bisected at the approximate mid-point in an east-west direction by a sub-surface sanitary sewer tunnel. The parcel contains approximately 903,015 square feet or 20.7303 acres. Block 160.01, Lot 34: The parcel is rectangular in shape having a frontage of 25.00 feet along Hillcrest Avenue (Township of South Orange Village), a depth on the east side of 100.00 feet, a depth on the west side of 100.00 feet, and is 25.00 feet across the rear. The parcel is generally contour level with the grade of Hillcrest Avenue. It is served with all available municipal improvements, services and public utilities including gas, water, sewer, and electric. The parcel contains approximately 2,500 square feet or 0.0573 acres. THE LAND - Summary: Block 42.01, Lot 22 86,249 Sq. Ft. 1.9800 Acres Block 760, Lot 2 10,800 Sq. Ft. 0.2479 Acres Block 160, Lot 10 5,094,769 Sq. Ft. 116.9598 Acres Block 160.01, Lot 30 903,015 Sq. Ft. 20.7303 Acres Block 160.01, Lot 34 2,500 Sq. Ft. 0.0573 Acres = 42 = REAL ESTATE a APPRAISALS & RESEARCH

DESCRIPTION OF PROPERTY THE IMPROVEMENTS The subject of this appraisal involves a private golf and country club known as Rock Spring which was originally founded in 1925, it was merged with Montclair Golf Club in 2016 and in December 2018, Rock Spring Club ceased operations. This appraisal assignment is specifically limited to only the Rock Spring Club portion of the Montclair Golf Club. The Rock Spring Club features an eighteen (18) hole championship caliber golf course having a slope rating of 72.5 and total yardage of 6,611. The individual subject improvements are detailed below and on the following page. Clubhouse — an expansive one and two story with partial basement, frame club house facility. This structure was originally erected around 1925, with several additions over the years. The building has also been partially renovated and modernized, however, portions of the structure appear to be in need of modernization and renovation. The club house contains approximately 22,291 square feet, which includes approximately 18,686 square feet of first floor developed area, including approximately 1,400 square feet of retail-golf pro-shop area. The second floor is improved with support offices and contains approximately 3,605 square feet. Other features of the clubhouse include both men's and women's locker room facilities, a grill (19th hole) room, a combination living-reception area with full bar services and access to the terrace overlooking Cable Lake; and a large open restaurant-banquet room featuring unobstructed views of the New York City skyline. There is also a full commercial kitchen and support facilities. Pool - There are two (2) inground concrete pools - a small wadding pool containing approximately 400 square feet and a larger “T" shaped pool comprising approximately 3,700 square feet, both of which are located along the east bank of Cable Lake. The pool area is served by a one story masonry and frame, combination snack (Cable Lake Cafe) bar and locker-changing rooms. This building contains approximately 2,916 square feet and also features a large covered exterior dining area. Cart Storage-Charging Building - this is a one story frame structure featuring three (3) overhead doors. The building contains approximately 3,072 square feet. Grounds Maintenance Building - a one story masonry and frame garage type building featuring five (5)

ructure featuring three (3) overhead doors. The building contains approximately 3,072 square feet. Grounds Maintenance Building - a one story masonry and frame garage type building featuring five (5) overhead doors. The building contains approximately 3,384 square feet. Grounds Maintenance - Equipment Storage Building - a one story masonry and frame garage type building featuring four (4) overhead doors. The building contains approximately 1,800 square feet. [ ] ABPRAIGALS = 48% B & RESEARCH

DESCRIPTION OF PROPERTY THE IMPROVEMENTS Tennis Building - this is a one story frame structure utilized for tennis pro-shop and observation. It is located along the four (4) har-tru tennis courts and contains approximately 512 square feet. Guard-House - a one story masonry and frame structure containing approximately 90 square feet. Half-Way House - a one story masonry and frame snack-bar and restroom structure. The building contains approximately 256 square feet. Miscellaneous - three (3) elevated paddle tennis courts with an attached one story observation structure containing 290 square feet. Surface macadam paved and illuminated parking lots, both upper and lower having an approximate capacity for 172 vehicles. A non-descript driving range located along the north side of the eighteenth (18th) fairway. Golf Course - An extensive eighteen (18) hole championship caliber quality golf course featuring undulating terrain, a natural water hazard (Cable Lake), bunkers at various fairway locations along with positions at most greens. The Rock Spring Club has hosted a number of prestigious golf tournaments including the New Jersey State Open several times as well as the State Amateur championship. CONDITION Based on observations during the physical inspection, the building improvements were found to be in fair overall condition. Although winter weather conditions existed during the inspection by this appraiser, my most recent (golf) seasonal visit (August 2018) to the course revealed that the golf course, including the greens, fairways, tee boxes, hazards, bunkers, and cart paths were well maintained by a large ground maintenance staff and considered to be in good overall condition. Please refer to the photographic exhibits included elsewhere in this report. The client is advised that properties such as the subject, in the normal routine of maintaining a golf course and related areas, are treated and applied with chemical fertilizers and other compounds. In addition, these materials may also be stored in the grounds maintenance facilities located on the course. This appraiser did not observe any of the foregoing materials being stored on the property. Furthermore, due to the winter conditions existing during the inspection, he cannot comment as to ground observations. | therefore recommend that the client retain the services of an expert in this field for

more, due to the winter conditions existing during the inspection, he cannot comment as to ground observations. | therefore recommend that the client retain the services of an expert in this field for information of this type. Om REAL ESTATE APPRAISALS & RESEARCH

CONDITION As previously noted, the appraiser did not observe any adverse environmental problems, conditions or contamination etc. during the inspection. | nonetheless advise the client as to the potential of adverse contamination due to the utilization of the property over the years and the possibility of soil contamination-migration. The appraiser has not been provided with any reports, studies, documents or other information with regard to potential adverse environmental conditions as it relates to Rock Spring Club. The foregoing includes both man-made and naturally occurring conditions such as environmentally sensitive areas, including wetlands and related transition-buffer areas. In the absence of any information of this type, | have assumed that the property is unencumbered with any such conditions. However, should a subsequent investigation reveal information to the contrary, this appraisal and its conclusions may be subject to revision. INCOME ANALYSIS The Rock Spring Club had been organized and operated as a private member only, 501(c)-3 non-profit corporation under Internal Revenue Service codes and regulations since October 1940, The status of the tax-exemption is unknown as of the date of this appraisal. Furthermore, this appraiser has not been provided with any current actual or historical income and expense information. Generally speaking, a private country club such as Rock Spring Club is rarely, if ever, leased for rental income purposes. It’s very premise and existence is based upon private equity membership and the quality, exclusivity and reputation of the club itself. In this regard, the proper application of an Income Approach requires a sufficient number of directly and truly comparable private golf course-country club facilities which have been leased in order to estimate a Market Rental for the subject property. This appraiser is unaware of any such private country club-golf course facilities being leased or rented for income producing for profit purposes. The fact that the subject property along with most, if not all similar private country club-golf course facilities have been held and operated as not for profit corporations and are tax exempt under IRS Rule 501c, effectively eliminates the applicability of a direct capitalization (Income Approach) of the net income utilizing actual revenues and expenses. In adcition, a

s and are tax exempt under IRS Rule 501c, effectively eliminates the applicability of a direct capitalization (Income Approach) of the net income utilizing actual revenues and expenses. In adcition, a stabilization of revenue and expense based on a survey of other private golf and country club facilities, which are also organized and operated as not for profit tax exempt entities under the same or similar IRS rules, would have the same effect. The foundation of an Income Approach requires the existence of profit motivation by the owner. In this instance, and under IRS rules, the profit motivation is entirely absent. Therefore, in this appraisal, other then in support of the highest and best use conclusion, | have not employed a direct capitalization (Income) approach in the estimate of Market Value. 50. [T] a REAL ESTATE APPRAISALS & RESEARCH

ASSESSED VALUATION Block 46.01, Lot 22 Land $ 182,000.00 Improvement $000,000.00 Total $ 182,000.00 Block 160, Lot 10 Land $10,124,600.00 Improvement $ 2,467.400.00 Total $12,592,000.00 Block 160, Lot 2 Land $ 1,000.00 Improvement $ 0,000.00 Total $ 1,000.00 Block 160.01, Lot 30 Land $ 1,210,000.00 Improvement $ 500,000.00 Total $ 1,710,000.00 Block 160.01, Lot 34 Aqgaregate Assessment Land $ 15,000.00 Land $11,532,600.00 Improvement $ 00,000.00 Improvement $ 2,967.400.00 Total $ 15,000.00 Total $14,500,000.00 2018 Tax Rate: $4.038 Per One Hundred Dollars of Assessed Value 2018 Real Estate Taxes: $585,510.00 The Township of West Orange had an equalization ratio of 87.74% for the Tax Year 2019 (as of October 1, 2018). Based on the assessed valuation included above, the subject property had an equalized value of $16,526, 100.00 for Tax Year 2019. DELINEATION OF TITLE Based on a review of public-municipal records, there has been no recent arms length conveyance or transaction involving the subject property. However, the most recent transfer of title in connection with the merger of Montclair Golf Club with Rock Spring Golf Club was found and is detailed as follows: Rock Spring Club a/k/a Rock Spring Club, inc. to Montclair Golf Club. Deed dated October 30, 2018. Consideration reported - $1.00. Recorded in Essex County Deed Book 20180, Page 96847. - 51 - [tT ] REAL ESTATE APPRAISALS a & RESEARCH

FLOOD CONDITION The subject property is located within Zone X according to the Flood Hazard Boundary Map dated June 4, 2007. The map is designated as Panel #34013C0094-F and has been reproduced below. It has also been noted that the small area of Cable Lake is located within a designated flood zone (Zone A). | r | REAL ESTATE - 52 - APPRAISALS a & RESEARCH

ZONING R-1 - One Family Residential District - 80,000 Sq. Ft. Minimum Lot Area (Block 46.01, Lot 22 - Block 160, Lot 10 - Block 160.01, Lot 30) R-3 - One Family Residential District - 20,000 Sq. Ft. Minimum Lot Area (Block 160, Lot 2) R-4 - One Family Residential District - 15,000 Sq. Ft. Minimum Lot Area (Block 160.01, Lot 34) As previously discussed, the primary or controlling zone is the R-1 District which has been utilized in the valuation of the subject property. The two subject parcels located within the R-3 & R-4 Districts have a combined lot area of 13,000 Sq. Ft. which is substandard within both districts. A summary of the regulations and requirements applicable to the R-1 One Family Residence District has been included below and on the following page. The following principal uses are permitted in the R-1 Single-Family Zone: 1. 2. 3. 4 5. 6. The following accessory uses are permitted in the R-1 Single-Family Zone: 1. © On aa pA wH One family, detached dwelling Water reservoir, well tower, filter bed Federal, state, county or township building | Golf course and golf club house . Farm, nursery, greenhouse and similar uses Hospital Required accessory parking Private garage Horticultural or agricultural building Customary accessory building or structure Private swimming pool Private recreation facility Home occupation Home professional office Signs Sey REAL ESTATE APPRAISALS a & RESEARCH