RockSpringCluB-Hendricks Appraisal.pdf

VALUATION METHOD. As discussed on the preceding page, this appraisal assignment has employed the Comparative Approach in the estimate of land value under its highest and best use - as a single family residential subdivision. Nonetheless, the Rock Spring Club property is presently improved with several structures which will require demolition, specifically the club house, the pool building, cart storage building, along with the maintenance structures. | have recognized the estimated demolition costs for these structures as reported by Core Logic - Marshall & Swift. Since the cost of demolition is based on the cost new per square foot of the individual improvements, | have prepared a replacement cost new for each utilizing the Core Logic-Marshall & Swift service and have included the demolition cost summaries and copies of the cost print-outs in the Addenda to this teport. The removal of the golf course improvements (i.e., tee boxes, greens, fairways, etc.) is considered to be nominal and would typically be included with the grading costs involved in any future residential development of the property. Nonetheless, | have included an estimated, lump-sum deduction of $700,000.00 for the cost of removing the golf course improvements, parking lots, tennis courts, and pools. The lump sum deduction is based on the actual reported costs for the demolition and removal of similar improvements at the High Mountain Country Club in Franklin Lakes. It also includes an increment for the additional features found with the subject property. It should be noted that in the event the property was to be appraised specifically as a private country club, a use for which it had been since 1925, the underlying land value as noted herein would be unaffected. Furthermore, the depreciated replacement cost new of the buildings, and other improvements including the individual per hole development costs as indicated by Marshall & Swift Core Logic would be added to the land value estimate. The total combined valuation (both land and improvements) would teflect the Market Value of the property, as a private country club. In this regard, the private country club use would be considered as an interim or temporary highest and best use of the property. In view of the recent closure of the facility (December 2018) as well as the depleted status of membership, it is my opinion that as of the

n interim or temporary highest and best use of the property. In view of the recent closure of the facility (December 2018) as well as the depleted status of membership, it is my opinion that as of the date of valuation, continued private country club use of the subject is not the highest and best use of Rock Spring Club. REAL ESTATE APPRAISALS a & RESEARCH - 65 -