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HomeMy WebLinkAboutsales comparisonSALES COMPARISON APPROACH(CONT.) Our analysis includes the sales of four improved office properties located in the City of Miami. It was necessary to use sales from outside the immediate subject neighborhood in order to find mixed use properties. The unit of comparison utilized in this analysis is the price per square foot and the gross income multiplier. In addition, we were able to obtain financial information on three sales to develop Gross Income Multipliers. Each sale was analyzed with regard to real property rights conveyed, financing terms, conditions of sale, date of sale, location, size/type of building, age/condition and quality of the improvements, and the land -to -building ratio. The following chart contains an analysis of the subject along with the four comparable sales.. PRICE PER SQUARE FOOT ANALYSIS Prior to adjustment, the sales prices range from $76.15 to $114.61 per square foot. Adjustments were made to the comparable sales as seen below. Subject Sale 1 Sale 2 Sale 3 Sale 4 Price SF N/A $88.16 $76.15 $114.61 $83.84 Cond. N/A 0 0 0 0 of Sale Time N/A 2% 3% 6% 13% Financing N/A 0 0 0 0 Location Avg 0 0 -10% -10% Imp Size 2,500 SF 0 0 0 0 Quality Good 10% 10% -10% 5% Condition Excellent 10% 20% 0 10% LIB Ratio 2.00:1 -10% 0 0 0 Adj PriceSF N/A $98.91 $101.96 $97.18 $99.47 Time was adjusted at 5% per year based on the CPI and with current price increases in the Miami area with a range of 5% to 8%. Time adjustments to the sales price are made prior to any other adjustments below it in the grid. Prestige Appraisal Services Page 50 SALES COMPARISON APPROACH(CONT.) Our analysis includes the sales of four comparable commercial land sales located in the City of Miami. It was necessary to use sales from outside the immediate subject neighborhood in order to find sales of non- buildable lots. The unit of comparison utilized in this analysis is the price per square foot. PRICE PER SQUARE FOOT ANALYSIS Prior to adjustment, the sales prices ranged from $3.55 to $13.44 per square foot. Adjustments were made to the comparable sales as seen below. Subject Sale 1 Sale 2 Sale 3 Sale 4 Price SF N/A $8,80 $3.55 $10.10 $13.44 Cond. N/A 0 0 0 0 of Sale Time N/A 2.5% 7.5% 8% 13% Financing N/A 0 0 0 0 Location Avg 0 5% -15% -25% Lot Size 4,193 SF 0 0 0 0 Zoning C-1 -5% 0 0 0 Utilities All 0 0 0 0 Access Front 0 0 0 0 Assemblage N/A 0 0 -10% -10% Adj Price /SF N/A $8.56 $4.00 $8.18 $9.87 Time was adjusted at 5% per year based on the CPI and is adjusted prior to any other adjustment below it. 4 Prestige Appraisal Services Page 45