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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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