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Home My WebLink AboutMarket Value Analysis from Dennis Kelsall Co. 07-01-2010 � . � - � ��.�c� ��J � �� c�- c�- cv�� ' . DENNIS D. KELSALL & CO. Real Estate Appraisers � Consultanfs 15000 Wildwood Road • Burnsville, Minnesota • 55306 Phone: (952) 892-7099 • Fax: (952}435-4022 • E-mail: kelsall@frontiernet.net . n-rnr ,� DENNIS D. KELSALL, MAl July 1, 2010 City of Rosemount 2875 145�'St. W. Rosemount, MN 55068 Attn: Mr. Dan Schultz Re: Market Value Analysis � Typical Land Values Cash Equivalents In Lieu Of Land For Parks Dedication Fees Rosemount, MN. Our Job No.: 1000110 Mr. Schultz: Following are estimated typical market values for land parcels intended for 5 general types of uses, as you requested. Typical Value Intended Use Per Acre Low Density Residential $70,000 Medium Density Residentiaf $85,000 Commercial $180,000 Industrial $80,000 Business Park $150,000 These typical values are based upon the analysis of recent comparable sales in Rosemount and the surrounding area. They consider the current recessionary conditions that have resulted in: (1) a considerable reduction in the number of all types of land sales occurring during the period beginning in early 2008 and continuing to the present, and (2} declining values for all types of development land including residential, commercial and industrial parcels. Both trends are typical for the Minneapolis /St. Paul Area in general and can be directly attributed to the deteriorations in financial and economic conditions that have occured over this same time period. July 1, 2010 Mr. Dan Schultz Page 2 of 2 The comparable sales that were considered shared the following characteristics: • All sales prices were cash or cash equivafent transactions. • All sales had city utilities at or near the property line and assume that any bafances of special assessments were paid by the seller. • Ali sales prices were of larger parcels that were (or could be) subdivided into srnaller sites. Please note that these market value estimates are intended to reflect"typical" values for the selected zoning uses within the City of Rosemount and as such each is intended to represent a typical site and a typical value within a range of possible values for each intended use. The actual value of parcels within any given zoning district can vary significantly depending upon location, size, topography, soil conditions,trees and foliage, etc,. Please do not hesitate to contact me if you have any questions or comments. Sincerely, ��2'�� / Dennis D. Kelsall, MAI Certified General Real Property Appraiser Minnesota License#4000668 LAND ANALYSIS -MARKET CONDITfONS -GEt�[ERAL DISCUSSION The current recessionary conditions have severely curtailed demand for land parcels suitable for residential,commercial and industrial development. Some owners have seen the value of their land decrease by as much as 75%to 80%from the peak values experienced in 2006-2007 according to some published reports. Generally the"further out"markets such as Otsego, St. Michael, Watertown,and Elko have seen the largest declines,while"closer in"areas have been less severely affecfed. More popular"closer in"areas such as Chanhassen. Piymouth and Maple Grove have seen dectines in the range of 15%to 20%. Many land owners in areas such as Shakopee&Lakeville have reported lowering their asking prices by 30%to 50%with little affect. These conditions are expected to continue unfil at leasf 2019 and perhaps into 2012. The adjustments for market conditions in this analysis (for the Rosemount area)are based upon the following assumptions and calcufations: Estimated Value Index Year Of Sa1e For Comparable Sales 2006-2007 1.00 2008 0.85 2009 0.70 2010 0_60 Adjustments for sales occuring in 2006-2007 are calculated as .60/1.00=.6Q Adjustments for sales occuring in 2008 are calculated as.60/.85=.71 Adjustments for sales occuring in 2009 are calculated as.60/.70=.86 Adjustments for sales occuring in 2010 are calculated as .60/.60= 1.00 Typical Land Values Dennis D.Kelsall Co. As of Ju(y 1.2010 Park Dedication Analysis 15000 WJdwood Road Job#'1060'I'10 Rosemount,MN Bumville,MN 55306 Phone 952-892-7099 LOW DENSffY RESIDEfVTfAL LAND ANALYSfS Summarv Of Comparable Sales Adjustment for Market CondiGons 2006-2007 sales=.60 2008 sales=.71 2009 sales=_86 Adjust For Size 2010 sales=1.00 Based On 10% Adjusted Land Price Listings AdJusted Leaming Curve Price Area Safe Sale Per Intended use Adjust For pownard (Adjust To Per Location Zoning Acres Date Price Acre Comments Location 0.80 10.00 acres) Acre Sales 14300 Biscayne Ave. R1 8.09 7/07 $655,000 $80,964 School 1.00 0.60 0.95 $46,'149 Rosemount,MN 1 D55 Wescott Road SFR 5.00 2/08 $500,00o �100,000 Single family residential 1.00 0.71 , 0.90 $63,900 Eagan,MN development 1695 Dodd Road SFR 17.56 6/07 $2,600,000 $148,064 Par 3 golf course 1.00 0.60 1.05 $93,280 Mendota Heights,MN Appraised and sale negotiated as if single family residen6al deveiopment Listinqs SWQ 770th SG W.8� SFR 81.00 Asking $5,750,000 $70,988 Single family residentiai 1.00 0.80 1_30 $73,828 Pilot Knob Road development Lakeville.MN Range $46,149 To $93,280 Average $69,289 Median $68,864 Typical Land Values Dennis D.Kelsall Co. As of July 1,2010 Park Dediration Analysis 'F5a00 Wildwaod Road Job#10d0170 Rosemaunt,MN Bumville,MN 55306 Phone 952-892-7099 MEDIUM DENSITY RESI�ENTIAL LAND ANALYSIS Summarv Of Comparebte Sales Adjustment for Market Conditions 2006-2007 sales=.60 2008 sales=.71 2009 sales=_86 Adjust For Size 2010 sales=1.00 Based On 10% Adjusted Land Price Listings Adjusted Leaming Curve Price Area Sale Sale Per Intended use Adjust For pownard {Adjust To Per LocaGon Zoning Acres Date Price Acre Comments Location 0.80 '10_00 aaes) Acre Sales NEQ Akron Ave_8 Ag. 19.75 3/OS �1,488,506 $75,367 Guided(or medium 1.00 0.71 1.10 $58,862 Cty.Rd.42 density residenGal Rosmount,MN NWC Hwy.3& R2 5.02 3106 $650,000 $129,482 Townhouse development 1.00 0.60 0.90 �69,920 Connemara Tr. Rosmount,MN NEC Adacia Blvd.& MFR 15.12 2J08 $1,888,000 $124,868 City park 1.00 0.7'I 1.05 $93,089 Pilot Knob Road Appraised and sale negotiated Mendota Heights,MN as if townhouse development SEQ Denmark Ave.& R3 6.05 1/08 $814,000 $134,545 Townhouse development 1.00 0.71 0.90 $85,974 220th St.W. Farmingion,MN Listfn s Jurel Way& MFR 17.70 Asking $2,500,000 $141,243 Medium Denisty 1.00 0.80 1.05 $1'18,644 Kemvood Trail residential development Lakeville,MN Range $58,862 To $�18.644 Average $85,298 Median $85,974 Typiral Land Values Dennis D.Kelsall Co. As of July 1.2010 Park Dediqtion Analysis 15000 Wildwood Road Job#1000110 Rosemnunt,MN BumvDle,MN 55306 Phone 952-892-7099 COMMERCIAL LAND ANALYSIS Summarv Of Comaarable Sales Adjustment for Market Conditlons 2006-2007 sales=.60 2008 sales=.7'I 2009 sales=.86 Adjust For Size 2010 sales=1.00 Based On 10% Adjusted land Price Listings Adjusted Leaming Curve Price Area Sale Sale Per lntended use P.djust For pownard (Adjust To Per Location Zoning Acres Date Price Acre Comments Location 0.80 10.00 acres) Acre Sales 15075 Cimarron Ave. Com. 2.'11 7/08 $852,000 $403.791 Medical clinic and 1.00 0.71 0.75 $215,019 Rosemount,MN excess land 7757 So.Robert Trail Com. 12_50 6l08 $2,750,000 $220,000 Shopping center 1.OD 0.71 1.fl5 $164,010 Inver Grove Heights NWC So.Robert Trail &Courthouse Blvd. 1646 DifFley Rd. PD 7.44 6/08 $2.631,020 $353.632 Retail 0.80 0_71 0.95 $190,820 Eagan,MN SEQ 1-35E&Diffely interchange SWC I-494 8 PD 8.39 2/08 u�1,650,000 $196,663 Office 1.00 0.71 0.95 $132,fi49 Ames Crassing Rd. Exposure to I-494 Eagan,MN Ltstings NWC Co.Rd.42& Com. 14.91 Asking $3,085,025 $206,910 1.00 �.80 1_10 $182,081 Biscayne Ave. Rosemount,MN � Range $132,649 To $215,019 Average $176,916 Median $182,081 Typical Land Values Dennis D.Kelsall Co ��oy#1000910 Park Dedication Malysis t5000 Wildwood Road Phone 952�92-7099 Rosemount,MN Bumville,MN 55306 INDUSTRIAL LAND ANALYSIS Summarv Of Comaarable Sales Adjustment for Market Conditions 2006-2007 sales=.60 2008 sales=.71 2009 sales=.86 Adjust For Size 2010 sales=9.00 Based On 10% Adjusted Land Price Listings Adjusted Leaming Curve Price Area Sale Sale Per Intended use Adjust For pownard (Adjust To Per Location Zoninq Acxes Date Price Acre Comments Location 0.80 10.00 acres) Acre Sales NEC STH#3& GI 21.33 6/O6 $2,453,547 $115,028 Future industrial 1.00 0.60 1.10 $75,918 160th St.W. development RosemounT,MN 109XX Clark Rd. 12 41.72 1/08 $2,750,000 565,916 Future industrial 1_00 0.71 120 $56,160 Inver Grove Heights,MN development 1/4 mile south of interchange of Clark Road&CouRhouse Blvd. 10900 Courthouse Blvd_ 11 8.11 5/07 $1,140,000 $140,567 RV storage 1.00 0.60 0.95 • $80,123 Inver Grove Heights,MN SWC of interchange of Clark Road&Courthouse Blvd. 2840 Lone Oak Pkwy 11 7.17 5/DS $532,316 $74,242 Future industrial 1.00 0.71 0_95 $50,076 Eagan,MN development Listinas 13420 Courthouse Bivd. GI 16.61 Asking $2,532,358 $152,460 Future industriai 1.00 0.80 1.05 $128,066 Rosemount,MN development SEQ Highview Ave_& 12 14.31 Asking $9,870,000 $130,678 Future industrial 1.00 0.80 1.05 $109,770 Hwy 70 development Lakeville,MN Range $50,076 To $128,066 Average $83,352 Median $78,021 Typical Land Values Dennis D.Kelsatl Co. As of July 1,ZOiO Park Dedication Analysis 15000 Wldwood Road Job#1000110 Rosemount,MN 8umville,MN 55306 Phone 952-892-7099 BUSINESS PARK LAND ANALYSIS Summarv Of Comparable Sales Adjustrnent for Market Conditions 2006-2007 sales=_60 2008 sales=.7'I 2009 sales=.86 Adjust For Size 2010 sales=1.OQ Based On 10°/a Adjusted Land Price Listings Adjusted Learning Curve Price Area Sale Sale Per Intended use Adjust For pownard (Adjust To Per Location Zoninq Acres Date Price Acre Comments LocaUon 0.80 10 00 acres� Acre Sales 15191 Boulder Ct. BP 5.43 5/06 $783,555 $144,301 Fulure development 1.00 0.60 p.gp $n g23 Rosemount,NiN SWC Lemay Ave 8 BP 5.01 9/09 $1,029,092 $205,408 Office/warehouse 1_00 0.86 0.90 $'158,986 Commerce Drive Mendota Heights,MN 99Q,1020,1030 GenGan BP 6.56 4/08 $2,383,000 $363,262 Multi tenant o�ce 0.80 0.71 0.90 $185,70� Circle Exposure to 11194 Eagan,MN Kenrick Ave.West of CC 2.58 8/09 $627,589 $243,252 Future development 1.00 0.86 0.80 g�67,357 Kensington Blvd. Lakevile,MN Listinas 15199 Boulder Ct. 8P 1.59 Asking �385,000 $242,138 Future development �.00 0.80 0_75 $145,283 Rosemount,MN SEQ Co_Rd.42 8 BP 35.00 Asking $5,869,710 $167,706 Future development 1.00 0.80 1.15 $154,290 STH#3 Rosemount,MN Range $77,923 To $185,700 Average $148,257 Median �956,638 Typica!Land Values Dennis D.Kelsall Co. Park Dedir.3tion Malysis 75000 Wldwood Road �Job#1000110 Rosemount,MN Bumvtlie,MN 55306 Phone 952-892-7099