RockSpringCluB-Hendricks Appraisal.pdf

HIGHEST AND BEST USE The sales included on the preceding pages have been considered in connection with the highest and best use determination for the subject property. The first set of comparables represent former golf course properties which were acquired for residential subdivision and development. These sales reflect a rather narrow range of value on a per acre basis - $273,182.00 to $276,256.00 with an average or mid-range found at $274,719.00 per acre. The analysis per hole is also provided and ranges from $1,708,333.00 to $2,000,000.00 with an average range found at $1,854, 166.00 per hole. The second set of comparable sales involved transactions which were acquired for continued use as golf courses. In two of the sales, there was additional (significant- non-disclosed) expenditures by the purchaser in connection with capital investment, membership certificate redemptions, etc. Nonetheless, all of the sales also reflect a Narrow range on a per acre basis - $31,622.00 to $58,625.00 with an average or mid- range found at $41,279.00 (per acre). The per hole analysis ranges from $201,944.00 to $434,657.00 also with a mid-range or average found at $306,175.00 (per hole). An illustration-tabulation and summary of the brief income analysis applied to the Rock Spring Club as a public facility along with the sales data has been included below. 7 "income Analysis | Acquired For Golf Course _ (Basbd.on/RSC Only) | Use (Average $293,889.00 Per Hole $306,175.00 Per Hole $ 37,792.00 PerAcre | §$ 41,279.00 Per Acre $1,854, 166.00 Per Hole $274,719.00 Per Acre The table above clearly and convincingly illustrates and supports the conclusion that the highest and best use of the subject property, both as vacant land and improved is residential single family subdivision and development as zoned. It has been noted that the two comparable sales of golf course facilities which were purchased for residential development would absolutely require independent analysis along with comparative adjustments for significant differences in location and physical characteristics. The average analysis included above reflects the unadjusted per hole and per acre values. In this regard, application of the unadjusted per acre value and/or the per hole value to the Rock Spring Ciub property would suggest a total unadjusted valuation well in excess of $30,000,000.00. The comparative

d, application of the unadjusted per acre value and/or the per hole value to the Rock Spring Ciub property would suggest a total unadjusted valuation well in excess of $30,000,000.00. The comparative analysis involving the transactions of properties acquired for continued golf course use reflects and supports a substantially lower valuation. If the unadjusted average sale on a per acre and per hole basis are applied to the Rock Spring Club property, the indicated value range (unadjusted) would be $5,511,150.00 to $5,780,000.00 (rounded). The foregoing coupled with the brief income (direct capitalization) analysis valuation at $5,290,000.00 readily supports the conclusion and determination that residential development of the Rock Spring Club property is the highest and best use. The appraiser cautions that a direct comparative analysis involving sales of golf course properties with the subject property is not an appropriate valuation method. The sales noted herein involved going-concerns; included the assumption of debt, leases, contracts, etc. Furthermore, several transactions involved additional capital investment along with membership redemptions which were not reflected in the purchase price. REAL ESTATE | APPRAISALS - 63 - & RESEARCH