Exhibit B Appraisal Checklist.pdf

EXHIBIT B – APPRAISAL CHECKLISTS

These two checklists must be completed by the production appraiser and included in both the draft and final appraisal report. If not include in the addendum, the report will be returned. The following are samples only, an Excel Spreadsheet will be provided upon contract or micro purchase acceptance.

EXHIBIT B – APPRAISAL CHECKLISTS

GSA Building/Facility Number

Property Name

Street Address

City, State, Zip

Property Type

Property Interest(s) Appraised

Appraisal Report Type

Contract Appraiser

Contract Appraiser Phone No. & Email

Contract Appraiser Address

Highest and Best Use as if vacant

Highest and Best Use as improved

GSA Review Appraiser

GSA Date of Reviews Initial Review Final Review

Usable Area (in SF) GSA Rentable Area (SF)

Gross Building Area (SF) Mkt Rentable Area (SF)

Mkt Bldg. Class (A,B,C,D) Number of Stories

# of Existing Occupancy Agreements Year Built

Current Occupancy Condition

Yr. of Recent Renovation/Expansion Other Features

Land Area (SF) (including excess land) Excess Land (SF)

Current Physical Condition

Effective Date of Values

Effective Age (years)

Total Economic Life (years)

Cost New

Depreciated Cost

Land Value

Value Indication

Price Per SF/Unit/Lot

Value Indication

Market Rent

Overall Capitalization Rate

Annual Revenue per SF Gross Full Service Rate

Annual Expense per SF Conclusion

Expense Ratio (%)

Analysis Period Years/Months/etc.

Value Indication

Final Value

Value Per Unit of Comparison

Recommend appraiser for future assignments?

Reconciliation

If Applicable, Other Value (Specify): (Disposition, Bulk, Going Concern, Excess Land, etc. )

General Review Comments - To Be Completed by GSA Reviewer

Are the data, appraisal methods, analyses, and conclusions used adequate? TBD

TBD

Additional Comments

Sales Comparison Approach

Income Capitalization Approach

Appraisal Report Findings

Analysis reflects following scenario:

"Other" (i.e.: "as if competed", "upon completion and stabilization, label values below)

Cost Approach

Building /Site Data

GSA - Fair Market Value Appraisal Report

Summary of Significant Conclusions

Must be a USPAP 2-2(a) defined narrative appraisal report as per GSA Statement of Work

GSA Bldg/Facility Number

Property Name

Street Address

City, State, Zip

Production Appraiser

Date Draft Rec'd by GSA 01/00/00 Date(s) of Review:######

No. YES NO Page(s) a.

b.

c.

d.

e.

f.

g.

h.

b) Does the data include: Property Identification, Purpose of the Appraisal, Scope of the Appraisal, Dates of Value, brief Site and

Improvement Descriptions, Occupancy, Zoning, Highest and Best Use, Value Indications, Capitalization and other rates used and

Final Estimate of Value?

Property Identification. Does the report have an adequate identification of the subject (name, location, address and legal description)?

Scope of the Appraisal. Is the appraisal's scope is consistent with the instructions and as described in the GSA Statement of

Work?

Property Rights Appraised. Are the property rights appraised consistent with the instructions?

c) Is the certification signed by all signatories of the report?

a) Are the extraordinary assumptions, hypothetical conditions, and limiting conditions affecting value are clearly noted?

(Assumptions may include: Build to Suit Methodology, ownership by a private sector entity, continued stabilized occupancy by the

Federal government, completion of on-going capital improvements, etc.)

a) Photographs: Do the photographs of the subject show the front elevation, any unusual features, abutting properties, etc., and have captions including the date taken, and exterior photos show the view direction of the camera?

b) Maps: Do the location maps legibly depict the locations of the subject and comparables?

Exhibits:

c) Do the graphic exhibits include adequate descriptive captions?

Statement of Limiting Conditions and Assumptions.

b) Are any encumbrances impacting the subject clearly explained?

Report Certification:

a) Is the certification compliant with current USPAP recommendations?

b) Does the appraiser have any interest, direct or indirect, in the subject?

Property Ownership History. Is the ownership history as per USPAP addressed and prior sales analyzed as appropriate?

Appraiser Competency and Prior Engagements with Subject Property. Did the appraiser discuss competency with assignment and any prior appraisal and/or consulting assignments involving the subject property during the past three years?

Date of Value.

b) Is the date of value 45 days or less from the date the draft is submitted and final appraisal report is received and accepted by

GSA?

a) Is the date of value the same date as the last comprehensive interior inspection by the Production Appraiser?

Definition of Value. Is the fair market value appraised consistent with the GSA Scope of Work and the correct definition is the only market value definition in the report?

Purpose of Report. Is the purpose of the report consistent with the Scope of Work and the intended use and users identified?

Effective date of each value stated?

b) Effective date of the appraisal and date of the report.

a) Property name, street address, and GSA Building/Facility Number.

Title Page includes:

Letter of Transmittal

Table of Contents

Appraisal complete and documented in a self-contained report?

Are all three approaches to value (Cost, Income, Sales Comparison) included?

a) Is the important data and conclusions summarized in a complete but concise manner?

Summary of Salient Facts and Conclusions

Does the appraiser have prior authorization to eliminate any of the three typical valuation approaches (Cost, Sales Comparison, and/or Income Capitalization).

Part I: INTRODUCTION

Is the Summary of Significant Conclusions and Reporting Requirements Checklist completed and included in the Addendum

Section as required?

Did the contract Appraiser personally inspection the property interior?

Is the: Date of the report clearly stated?

='Summary Significant Conclusions'!C7:F7

='Summary Significant Conclusions'!C11:F11

GSA Review Appraiser Donald Briggs, MAI, SRA, AI-GRS, LEED

#VALUE!

Item

List N/A where appropriate. GENERAL REQUIREMENTS

GSA - Fair Market Value Appraisal Report

Reporting Requirements Checklist

Please note: This document will be used to review the appraisal report. It must be completed by the appraiser and included in the initial draft report or report will be returned.

='Summary Significant Conclusions'!C4:F4

='Summary Significant Conclusions'!C5:F5

='Summary Significant Conclusions'!C6:F6

Is the report addressed to GSA Central Office, Suite 5100 (Attn: Mark J. Hanson, MAI)?

If the subject property has recently undergone a renovation project or significant upgrades, did the appraiser provide an adequate description of those improvements with an explanation of how those changes might affect the value of the property?

a) Site:

- Are relevant characteristics impacting the site, its use, and value discussed?

b) Zoning/Legal Restrictions:

- Did the appraiser conclude, support, and discuss the most likely zoning if the site was under private ownership?

- Does the concluded most likely zoning under private ownership allow for additional building area, transferable development rights and/or any other rights or regulations that could impact value?

- Are the improvements adequately described including, at a minimum:

- Building dimensions (gross, net rentable, and common areas), square foot measurements, exteriors, interiors, age, condition, quality (Class A, B, C), functional utility/obsolescence, core factors, number of stories, adequacy of parking, deferred maintenance, etc?

d) Rentable to Useable Area Discussion:

- Does the appraisal adequately address the subject property's R/U factor?

c) Improvements:

- Sources of demand and most significant competitors identified and discussed?

c) Does the conclusion for this section explain how this information impacts the subject?

d) Is the competitive position of the subject property in relation to its market discussed?

- Is there a discussion whether the improvements would be legally conforming or non-conforming if privately owned?

- What is the appraiser's estimate of "Market Rentable Area"? Does this R/U factor and adjusted Market Rental Area affect the appraiser's estimate of market value?

f) Real Estate Taxes: Is the real estate tax assessment under private ownership estimated and does this estimate appear reasonable?

e) Recent Improvements/Renovations

Neighborhood Data

a) Is there a clearly defined neighborhood boundary?

Property Data

b) Does the conclusion for this section explain how this information impacts the subject?

b) Are market vacancy & absorption rates, rents, efficiency ratios and market R/U factors addressed?

c) Supply and Demand Issues:

- Are competitive supply factors (including proposed additions) discussed?

Subject Property Type Market Discussion

a) Does the discussion include a market description for subject's property type?

b) Are land use patterns, transportation issues, vacant land, life cycle, and local market for subject's property type discussed?

PART II: FACTUAL DATA

Regional and City Analysis:

a) Are the pertinent aspects of the region and/or city are adequately discussed in a concise manner, including descriptions of the economic base/MSA, and land use trends?

- Is the subject LEED certified and the certification level identified?

b) H&BU as Improved. Has the appraiser completed a financial feasibility rent analysis?

21 Land Value

k) Is/are the overall rate(s) (cap rate(s)) adequately analyzed and reconciled?

l) If used, does the discounted cash flow model adequate support the projected revenues and expenses, rates of increase, and discount rate?

Capitalization and Valuation Analysis

j) Is a supported, stabilized operating statement including reserves for replacement included? Are the immediate capital expenditure needs quantified?

Operating Expense Discussion

Sales Comparison Approach

h) Operating history is reported and considered as background information.

i) Are the expenses logically explained and supported, including real estate taxes and insurance as if the subject property was privately (non-government) owned.

d) Are the detailed datasheets in the Addenda and has the reader been advised of their location.

b) Is the appropriateness and reliability of each approach discussed? Does the derivation of the final estimated value appear reasonable?

m) Does the value indicated by the Income Approach appears reasonable, given the data and analysis presented?

PART III: ANALYSES AND CONCLUSIONS

Highest and Best Use (H&BU)

a) Is the land value based on the H&BU as if vacant and available for development?

d) Is each rent comparable explained in relation to the subject? Are the adjustments made to the comparable after considering the subject attributes?. Are adjustments quantified either by dollar amounts or percentages?

g) The value indicated by the sales comparison approach appears reasonable, given the data and analysis presented.

Income Capitalization Approach

c) Are all rental comparables reasonably current?

b) Are the confirmed lease and rent comparables adequately described and applicable to subject? Federal Leases are not to be used as comparables.

Potential Income Discussion

a) Does the appraisal discuss current subject property suite sizes and interior finishes?

a) H&BU of Underlying Land as if Vacant and available for Development. Is this report section adequately described and conclusion supported and reasonable?.

b) H&BU as Improved. Are the improvements briefly described and the conclusion supported and reasonable? Are the existing improvements an interim or special purpose use?

e) If GSA has granted permission to omit Cost Approach, has the property's economic life, effective age, and any applicable forms of depreciation or obsolescence discussed?

a) Are confirmed sales of comparable properties used?

b) Are all sale comparables reasonably current?

b) Is the site valued using sales confirmed with a party knowledgeable regarding the terms of the transaction and is the methodology reasonably applied?

c) Has the estimate of land value, as if vacant, been adequately supported?

c) If the subject is LEED certified are the comparable sales also LEED certified? If not, have appropriate adjustments been made in the comparables sales analysis process?

f) The location of the detailed information datasheets, if in the Addenda, has been provided.

d) Are the adjustments quantified, clearly explained and logically supported?

e) Are the value indicators such as overall rates, adjusted sale price per SF and the final estimate of value developed through the use of appropriate correlation techniques, not by averaging?

Reconciliation and Final Estimated Value

a) Are the appraiser's opinions concerning marketability, market trends and highest and best use reflected in the valuation?

e) Are estimated revenues consistent with market rents? Are allowances for absorption, periods of vacancy, credit loss or renewal/ turnover considered?

f) If property is not stabilized, is an appropriate lease-up period supported by market information included in report?

Vacancy and Collection Loss Projection

g) Are current and projected occupancies adequately supported? Does the vacancy and collection loss estimate reasonably account for the assumption of "continued stabilized occupancy by the federal government" for the typical local real estate market holding period?

Cost Approach

a) Is the data source(s) for the direct/indirect costs identified and appropriately applied?

b) Is the effective age and economic life estimated and supported?

c) Are the estimates for the developer's profit and depreciation supported?

d) Is the value concluded by this approach reasonable, given the data and analysis presented?

d) Is the GSA Statement of Work included?

e) The Summary of Significant Conclusions and the Reporting Requirements Checklist have been completed by the appraiser(s) and included in the Addenda.

PART IV: EXHIBITS AND ADDENDA

Exhibits include, but are not limited to:

COMMENTS AND CLARIFICATIONS FROM THE REVIEWER

b) If provided by GSA, only a single representative floor plan of one floor is included in report. Appraiser may elect to exclude all floor plans. As per Homeland Security, additional floor plans are not to be included and report will be sent back for revision.

a) Plot Plan and Tax Map.

c) Comparative Data Map(s) showing the subject and the comparables.

f) Appraiser Qualifications for all appraisers & analysts significantly contributing to assignment.