RockSpringCluB-Hendricks Appraisal.pdf

HIGHEST AND BEST USE In connection with the analysis of highest and best use as improved, | have prepared a brief income analysis as well as a summary of recent golf course transactions. Both have been considered and readily support the determination of residential single family subdivision and development as the highest and best use of the property, as improved. The brief income analysis presented herein represents an analysis and valuation of the subject property as a public golf course. Please note that the direct capitalization (income) analysis has been presented in brief, and only as a component of the highest and best use conclusion and determination. In the preparation of the income (direct capitalization) analysis included herein, | have made certain assumptions regarding the utilization of the Rock Spring Club, specifically, | have assumed that the club will be converted to, and operated as, a public golf course under the supervision of a professional management firm. | have also estimated the annual number of rounds to be played along with annual expenses. The estimated number of rounds is based on the reported number of rounds played in 2018 at the East Orange Golf Course, a competitive eighteen (18) hole facility located in Millburn. This is a municipal owned public course operated by a professional management firm under an agreement with the City of East Orange. | have considered the daily rates charged at this facility along with those reported at the local Essex County Francis Byrne public golf course which is situated in West Orange. A summary of the individual (2018) rates for both courses have been included below. 2018 Rates: Weekday Daily Weekend Rates Facility Rates Adult Adult Cart Fees Francis Byrne $28.00 - $44.00 $34.00 - $51.00 $18.00 } East Orange $27.00 - $43.00 $32.00 - $45.00 $10.00-$12,00 i In the analysis on the following page, based on its lacation, physical features, amenities, history and location, | have assumed that Rock Spring Club, being operated as a public course would readily command a greater daily fee rate than East Orange or Francis Byrne (Essex County public course). | also note that in 2018, East Orange had reported a total of 20,455 individual rounds played. | was unable to obtain information relating to the number of rounds played at Francis Byrne, but in light of its direct competition and proximity to

eported a total of 20,455 individual rounds played. | was unable to obtain information relating to the number of rounds played at Francis Byrne, but in light of its direct competition and proximity to the East Orange Course, it can be assumed to have experienced a similar number. In this appraisal, as the subject property had previously been operated as a private country club, it is my opinion, that the facility would experience, at least initially, a greater number of rounds being played when compared with its public comparison set. In addition, | have also assumed that the average rate charged would be higher than East Orange or Byrne, but nonetheless remain competitive. Assumptions: 22,500 Rounds - May 1, 2019 - October 31, 2019 Weekend Rate Including Cart - $75.00 (54) Weekday Rate including Cart - $68.00 (135) Assumed 120 Rounds Per Day Weekend Revenues -$ 486,000.00 Weekday Revenues - $1,101,600.00 REAL ESTATE - 60 - 5 APPRAISALS G RESEARCH