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Landmark Research, Inc. / An appraisal of the property known as Spring Plaza, 403-405 North Spring Street, Beaver Dam, Wisconsin
(December 25, 1986)
VII. Most probable use and most probable buyer, p. 7
Page 7
band with outside lighting strip which since has been marred
with
uncoordinated signage as revealed in photographs in Exhibit 6.
The original Goodyear facility consisted of a finished showroom
area
with 4,960 square feet (120 feet by 40 feet, plus 16 feet
by 10
feet), a service and parts center for customers, which is now
a video
tape store with a finished ceiling and has approximately 864
square
feet (16 feet by 54 feet), and a six bay car garage
area for
servicing and tire changing. (See sketch of tenant spaces in
Exhibit
5.) The garage doors, front and rear, have been sealed
off with
plywood and the unfinished space with open ceilings and space
heaters
is now used for appliance storage and repair. This space measures
54
feet deep and approximately 32 feet wide for a total of 1,719
square
feet. The appliance store and the video share a customer entrance
at
the front of the store. There is an additional drive-in garage
door
entrance remaining at the rear of the Embassy TV showroom as revealed
by the photographs in Exhibit 6. There is a 15-foot driveway
between
this structure and the north wall of the Boy Blue addition
to the
Kroger structure, and this alley leads to delivery and car
storage
space at the rear of the Goodyear building. Much of this
space is
cluttered with used appliances which are unsightly and unsafe.
The
1,500 square foot area directly behind Boy Blue has not been
covered
with asphalt.
There is a pair of basic two fixture washrooms in the Embassy
store
area serving the entire building which could be nonconforming
with
state code requirements if the three occupancies are not divisions
of
the same enterprise.
VII. MOST PROBABLE USE AND MOST PROBABLE BUYER
Given site characteristics and current improvements, the
present
situation must be regarded as the most probable use for the foreseeable
period. However, both structures will suffer a high rate
of retail
obsolescence, but the site, as a large assemblage in the center of
town,
should appreciate gradually to a point where it would be economic
to
replace current improvements with an efficiently sized food market
or to
change its use, for example, to independent housing for the elderly
who
could benefit from existing site linkages to public services and
nearby
retailing.
The most probable buyer would be a local investor for income
and for
control of the future reuse of the site. The property is of
inferior
investment quality for regional investors or institutional
investors
since the national credits on the original leasebacks have terminated.
VIII.VALUATION OF TBE SUBJECT PROPERTY
There are three customary approaches to value, specifically the
Income
Approach, the Market Comparison Approach, and the Cost Approach.
In this
case, the Income Approach will be relied upon primarily, with
the Cost
Approach used as a check on the Income Approach. The Market Comparison
7
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