RockSpringCluB-Hendricks Appraisal.pdf

THE COST APPROACH — AS A VALUATION INDICATOR As previously discussed, this appraisal assignment has employed a Comparative (market data) Approach in the site valuation of the Rock Spring Club under its highest and best use. In this regard, | have deducted the cost of demolishing the improvements as reported by Core Logic - Marshall & Swift. It has been noted that the cost of demolition is based on a percentage of the replacement cost new per square foot of the individual improvements. | have therefore prepared individual replacement cost new estimates for the subject (major improvements) clubhouse, poo! house, cart storage building and the maintenance garages. It should also be noted that the removal of the golf course improvements (i.e., tee boxes, greens, fairways, etc.) are considered to be nominal and would generally 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 such as tee boxes, greens, bunkers, irrigation, cart paths, along with the parking lots, poo! and tennis courts. The lump sum deduction is an estimate based on the reported costs for the demolition of similar improvements at the High Mountain Country Club in Franklin Lakes and an includes an increment for additional tennis and paddle tennis courts found with the subject. A review of the Core Logic Marshall & Swift cost manual (Section 96, Page 1 - Insurance Exclusions) the following specifically addresses demolition costs. A review of the costs for each several years reveals the same percentages and therefore, | have applied the same demolition cost percentage to each Tax Year. “The percentages listed are averages of costs of complete building demolition and removal, excluding any hazardous material abatements, and apply to the entire cost of a building and basement.’ .... Contractors' profit and overhead are included in all costs in this manual and can never be excluded. They are as definitely a part of the construction cost as the cost of any other labor." Building Class 12.00% _| 45.60% 13.40% 10.60% 8.80% 7.60% 6.70% 16.00% 12.80% 10.70% 9.30% 7.40% 6.20% 5.40% 4.80% 13.70% 11.00% 9.30% 8.10% 6.50% 5.40% 4.70% 4.20% ¢0) 0] of 00] >| 12.70% 10.30% 8.70% 7.60%, 6.10% 5.20% 4.50% 4.00% Building Costs

7.60% 6.70% 16.00% 12.80% 10.70% 9.30% 7.40% 6.20% 5.40% 4.80% 13.70% 11.00% 9.30% 8.10% 6.50% 5.40% 4.70% 4.20% ¢0) 0] of 00] >| 12.70% 10.30% 8.70% 7.60%, 6.10% 5.20% 4.50% 4.00% Building Costs Per Square Foot & Corresponding % For Demolition A 480% 440% 4.00% 3.50% 3.10% 2.80% 2.60% 2.40% 8 6.00% 5.50% 5.00% 4.30% 3.80% 3.40% 3.10% 2.80% c 4.30% 3.90% 3.60% 3.10% 2.80% 2.50% 2.30% 2.10% D 3.80% 3.50% 3.20% 2.80% 2.50% 2.20% 2.00% 1.90% | Ss 3.70% 3.40% 3.10% | 270% 2.40% 2.20% 2.00% 1.90% | ~~ om REAL ESTATE APPRAISALS & RESEARCH