Laserfiche WebLink
,`~" Property- 633 Main Avenue - #416 <br />'~ Elk River, MN <br />PID 75-795-0416 <br />Value is at best, between $50,000 (what I paid) and $80,000. <br />A. Income approach <br />1. Based on income approach without any discounts for vacancy or costs of tenant turnover, <br />current value is in the $39M to $49M range. <br />2. Assuming 80M TAV and 1.25% tax rate, value improves to $60M to $75M. <br />3. This assumes rental rates above comparable and newer property in Elk River -Lions Park <br />Apartments which is assessed at $43.020/unit. <br />B. Current appraisal of the residential portion of the property as of October 15, 2010 is $80,802 per <br />unit. <br />1. Highest and best use in the appraiser's expert opinion is market rate rental property. <br />C. Lack of other comparable sales - <br />1. In fact no condo sales in ER, or for that matter Sherburne County. Usually, lack of <br />comparable sales suggests a lower price, not a higher price. <br />2. Northstar MLS reports the closest condo sales are in Coon Rapids and Columbia Heights- <br />a. One comparable size unit in Coon Rapids sold for $58,000 November 1, 2010 <br />b. The other unit located in Columbia Heights (Grand Central Lofts) is 1,292 sft and <br />sold for $75,100 12/10/10. So bigger unit in better location sold for less than <br />$80,000. <br />D. Lender mediated sales significantly impacting Elk River residential market. Can't ignore it. <br />1. In 2010, per the Minneapolis Association of Realtors, distressed home sales made up 60% of <br />home sales in the Elk River Market. <br />2. In 2010, per the Minneapolis Association of Realtors, average price per square foot was $85. <br />