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ELECTRONICALLY FILED
Redacted by Clerk of Court COURT OF COMMON PLEAS
Wednesday, January 26, 2011 10:19:57 AM
CASE NUMBER: 2016 CV 06086 Docket ID: 15814416
GREGORY A BRUSH
CLERK OF COURTS MONTGOMERY COUNTY OHIO:
I] THE COURT OF COMMOI PLEAS
MOI] TGOMERY COU] TY, OHIO
PNC BANK, NATIONAL ASSOCIATION, 7 Case No. 2010 CV 06086
SUCCESSOR TO NATIONAL CITY BANK,
Plaintiff,
v. ; OBJECTIOL TO THE
7 APPRAISER’S REPORT AI D
WILLIAM G. MORITZ, JR., et al. REQUEST FOR HEARII G
Defendants. ;
J OW COME Defendants William G. Moritz, Jr., Nancy L. Moritz, and Moritz Flowers,
Inc. (collectively the “Defendants”), by and through counsel and for their objection to the
Appraiser’s Report respond as follows:
1. The Defendants believe that the filed Appraiser’s Report in the amount of
$1,350,000.00, does not reflect the accurate value of the real estate.
2. On May 5, 2009, National City Bank had an appraisal completed by The Dunham
Company (attached as “Exhibit A”). The appraised value for the real estate was
determined to be $1,750,000.00.
3. There is a value discrepancy of $400,000.00 between the Appraiser’s Report and the
appraisal completed on May 5, 2009 (approximately a 23% difference).
WHEREFORE, the Defendants, William G. Moritz, Jr., Nancy L. Moritz, and Moritz
Flowers, Inc., respectfully request, a hearing to be set on this matter to determine the true and
accurate value of the real estate.Respectfully submitted,
/s/ John Paul Rieser
John Paul Rieser (0017850)
Patricia J. Friesinger (0072807)
Rieser & Associates LLC
7925 Graceland Street
Dayton, Ohio 45459-3834
Tel: (937) 224-4128
Fax: (937) 224-3090
Attorneys for Defendants William G. Moritz,
Jr., | ancy L. Moritz, and Moritz Flowers,
Ine.
CERTIFICATE OF SERVICE
The undersigned hereby certifies that a true and correct copy of the foregoing was served by
regular U.S. mail, postage prepaid, this 26" day of January, 2011 upon:
William and Nancy Moritz
8220 A North Dixie Drive
Dayton, OH 45414
Moritz Flowers, Inc.
8220 A North Dixie Drive
Dayton, OH 45414
George B. Patricoff, Esq.
301 West Third Street, 5° Floor
Dayton, OH 45402
Jeffrey Hendricks, Esq.
1900 Fifth Third Center
S11 Walnut St.
Cincinnati, OH 45202
Victor T, Whisman, Esq.
301 West Third Street, 5" Floor
PO Box 972
Dayton, OH 45422
/s/ John Paul Rieser
John Paul Rieser
First International Bank
280 Trumbull Street
Hartford, CT 06103
First International Bank
2035 Limestone Rd.
Wilmington, DE 19808
Matthew A. Taulbee, Esq.
Lerner, Sampson & Rothfuss
PO Box 5480
Cincinnati, OH 45201
William H. Macbeth, Esq.
Murr, Compton, Claypoole & Macbeth
401 East Stroop Road
Kettering, OH 45429A SUMMARY REPORT OF
AN APPRAISAL ASSIGNMENT
OF
PROJECT # 09-001669-01-1
COMMERCIAL LAND
PARCEL A = 3.57 ACRES
PARCEL B= 5.05 ACRES
8220 NORTH DIXIE DRIVE
DAYTON, OHIO 45414
PREPARED FOR:
MR. ROBERT MCGEE
NATIONAL CITY BANK
629 EUCLID AVENUE, 6™ FLOOR
CLEVELAND, OHIO 44122
AS OF:
MAY 5, 2009
PREPARED BY:
The Dunham Company, lac.
.O, Box 592 WBB, Dayton, Ohio 45409-0592 (937) 461-0517
BO. BO ae EXHIBIT A FAX (937) 461-0771TABLE OF CONTENTS
TITLE PAGE
TABLE OF CONTENTS
APPRAISAL SUMMARY ..
DATE OF VALUATION...
‘LEGAL DESCRIPTION ...
ASSUMPTIONS AND LIMITING CONDITIONS ......
HYPOTHETICAL CONDITIONS ....
EXTRAORDINARY LIMITING ASSUMPTION:
DEFINITIONS....... Seldeldetdatdaptebtaateen
DEFINITION OF MARKET VALUE .....
IDENTIFICATION OF CLIENT AND OTHER INTENDED USERS.....
INTENDED USE OF THE APPRAISAL
OBJECTIVE OF APPRAISAL.......
PROPERTY INTEREST APPRAISED .......
CONDITIONS OF THE REPORT........
ENVIRONMENTAL STATEMENT.......
AMERICAN DISABILITIES ACT STATEMENT.
THE SCOPE OF WORK....
NEIGHBORHOOD DATA............ seteeeeesseee
SALES HISTORY...
SUBJECT SUMMARY...
SITE DESCRIPTION — PARCEL A
SITE MAP...
SUBJECT PHOTOGRAPHS .....
SUBJECT SUMMARY.......
SITE DESCRIPTION — PARCEL B.....
SITE MAP......
SUBJECT PHOTOGRAPHS
EXPOSURE TIME.......
MARKETING TIME..... oe
HIGHEST AND BEST USE................
SALES COMPARISON APPROACH — PARCEL A
SALES COMPARISON APPROACH — PARCEL B
RECONCILIATION & FINAL VALUE CONCLUSION .....
DISPOSITION VALUE...
CERTIFICATIONS...
QUALIFICATIONS......
ENGAGEMENT LETTER9.57 ACHES & 5.05 ACRES, SEC.23, T.3, R.6, TOWNSHIP OF BUTLER
DAYTON, OH 45414 Index #: 9588
MONTGOMERY ‘Appraisal filo #: 204074
Appreises(s): MICHAEL W. GILDEA
‘Consus tract #: 1102 TIMOTHY N. DUNHAM, MAI. SRA
‘Date of inspection: MAY 5, 2008
Date of valuation: MAY 5, 2009
Date of report: MAY 8, 2008
Property rights appraised: FEE SIMPLE Zoning: Le-s2, LOCAL|GOMM DS
Highest and best use: LAND
‘Owners of record: WILLIAM G. MORITZ, JR.
Floodplain influence; NONEX
FEMA flood map panel #: 390113C0152E
FEMA flood map date: (06—Jan—2005
‘Tax identification #: 772.73
[i
REPRESENTATIVE
VIEW
OF
SUBJECT
VALUE CONCLUSIONS:
COST APPROACH: NLA.
SALES COMPARISON APPROACH — PARCEL A:
SALES COMPARISON APPROACH — PARCEL
INCOME APPROACH: NLA,
FINAL VALUE ESTIMATE — PARCEL A:
FINAL VALUE ESTIMATE — PARCEL B:
$770,000
$1,090,000
$690,000
$1,060,000ASSUMPTIONS AND LIMITING CONDITIONS
This report, the letter of transmittal and the certification of value are made expressly subject to
the following assumptions and limiting conditions, and any special limiting conditions contained
in the report, which are incorporated herein by reference.
1. The legal description furnished is assumed to be correct. | assume no responsibility for
matters legal in character nor do | render any opinion as to the title, which is assumed to be
good. All existing liens and encumbrances, if any, have been disregarded and the property is
appraised as though free and clear, under responsible ownership and competent management.
2. The sketch in this report is included to assist the reader in visualizing the property. | have
made no survey of the property and assume no responsibility in connection with such matters.
3. | believe to be reliable the information which was furnished by others, but | assume no
responsibility for its accuracy.
4, Possession of this report, or copy thereof, does not carry with it the right of publication, nor
may it be used for any purpose by any but the applicant without the previous written consent of
the appraiser or the applicant and then only with proper qualification.
5. | am not required to give testimony or to appear in court by reason of this appraisal, with
reference to the property in question, unless arrangements have been previously made
therefore.
6. The distribution of the total valuation in this report between land and improvements applies
only under the existing program of utilization. The separate valuations for land and building
must not be used in conjunction with any other appraisal and are invalid if so used.
7. The land, and particularly the soil, of the area under appraisement appears firm and solid.
Subsidence in the area is unknown or uncommon, but this appraiser does not warrant against
this condition or occurrence.
8. Subsurface rights (mineral and oil) were not considered in making this appraisal.
9. This appraiser very carefully inspected the buildings involved in this appraisal report, and
damage, if any, by termites, dry rot, wet rot, or other infestations were reported as a matter of
information by your appraiser, as | do not guarantee the amount of damage, if any.
10. All furnishings and equipment, except those specifically indicated and typically considered
as a part of real estate, have been disregarded by this appraiser. Only the real estate has been
considered.
11. The comparable sales data relied upon in this appraisal is believed to be from reliable
sources; however, it was not possible to inspect the comparables completely, and it was
necessary to rely on information furnished by others as to said data; therefore, the value
conclusions are subject to the correctness and verification of said data.
12. The appraiser has inspected, as far as possible, by observation, the land and the
improvements thereof; however, it was not possible to personally observe conditions beneath
the soil or hidden structural components within the improvements; therefore, no representations
are made herein as to these matters and unless specifically considered in the report, the valueASSUMPTIONS AND LIMITING CONDITIONS
estimate is subject to any such conditions that could cause a loss in value. Condition of heating,
cooling, ventilating, electrical and plumbing equipment is considered to be commensurate with
the conditions of the balance of the improvements unless otherwise stated.
13. Neither all nor any of the contents of this report shall be conveyed to the public through
advertising, public relations, news, sales or other media, without the written consent and
approval of the author, particularly as to valuation conclusions, the identity of the appraiser or
firm with which he is connected, or any references to the Appraisal Institute.
14. Zoning ordinances are assumed to be stable. Full conformity is assumed unless otherwise
specified in this report.
15. The market conditions used if a prospective value estimate is required for the appraisal are
as of the date of inspection, the appraiser is not responsible for unforeseeable events that alter
market conditions prior to the effective date of the appraisal.
16. The Dunham Company, Inc. shall not be liable for any compensatory, special or general
damages in the event of any inaccuracy in the market value of the property being appraised.
Therefore, The Dunham Company, Inc.'s liability for any inaccuracy in the market value of the
property being appraised shall be limited to a refund to the Client of all amounts paid by the
Client hereunder. The client expressly waives any right to pursue a claim for any damages of
any kind beyond a return of all sums paid to The Dunham Company, Inc.
HYPOTHETICAL CONDITIONS
HYPOTHETICAL CONDITION: that which is contrary to what exists but is supposed for the
purpose of analysis.
Comment: Hypothetical conditions assume conditions contrary to known facts about physical,
legal, or economic characteristics of the subject property; or about conditions external to the
property, such as market conditions or trends; or about the integrity of data used in an analysis.
A hypothetical condition may be used in an assignment only if:
° Use of the hypothetical condition is clearly required for legal purposes, for purposes of
reasonable analysis, or for purposes of comparison;
e Use of the hypothetical condition results in a credible analysis; and
e The appraiser complies with the disclosure requirements set forth in USPAP for
hypothetical conditions."
1. There are no hypothetical conditions.
1 USPAP 2008-2009 Edition, The Appraisal Foundation
3EXTRAORDINARY LIMITING ASSUMPTIONS
EXTRAORDINARY ASSUMPTION: An assumption, directly related to a specific assignment,
which, if found to be false, could alter the appraiser's opinions or conclusions.
Comment: Extraordinary assumptions presume as fact otherwise uncertain information about
physical, legal, or economic characteristics of the subject property; or about conditions external
to the property such as market conditions or trends; or about the integrity of data used in an
analysis.
An extraordinary assumption may be used in an assignment only if:
e [tis required to properly develop credible opinions and conclusions;
e The appraiser has a reasonable basis for the extraordinary assumption;
e Use of the extraordinary assumption results in a credible analysis; and
e The appraiser complies with the disclosure requirements set forth in USPAP for
extraordinary assumptions.2
1. There are no extraordinary limiting assumptions.
2 USPAP 2008-2009 Edition, The Appraisal Foundation
4DEFINITIONS
APPRAISAL: (noun) the act or process of developing an opinion of value; an opinion of value.
(adjective) of or pertaining to appraising and related functions such as appraisal
practice or appraisal services.3
Self-Contained Appraisal Report: A written report prepared under Standards Rule 2-2(a) of an
appraisal performed under Standard Rule 1.
Summary Appraisal Report: A written report prepared under Standards Rule 2-2(b).
Restricted Use Appraisal Report: A written report prepared under Standards Rule 2-2(c).
DEFINITION OF MARKET VALUE
Market value, herein used, is defined as follows:
The most probably price which a property should bring in a competitive and open market
under all conditions requisite to a fair sale, the buyer and seller, each acting prudently
and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit
in this definition is the consummation of a sale of a specified date and the passing of title
from seller to buyer under conditions whereby:
fH Buyer and seller are typically motivated;
2. Both parties are well informed or well advised, and acting in what they consider
their interests;
3. A reasonable time is allowed for exposure in the open market;
4, Payment is made in terms of cash in United States dollars or in terms of financial
arrangements comparable thereto; and
5. The price represents the normal consideration for the property sold unaffected by
special or creative financing or sales concessions granted by anyone associated
with the sale. 4
FEE SIMPLE ESTATE: Absolute ownership unencumbered by any other interest or estate,
subject only to the limitations imposed by the governmental powers of taxation, eminent domain,
police power, and escheat.5
LEASED FEE INTEREST: An ownership interest held by a landlord with the rights of use and
occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the
lessee are specified by contract terms contained within the lease.®
3 The Appraisal Foundation, Uniform Standards of Professional Appraisal Practice, Appraisal Standards Board, 2006, P.1.
4 Office of the Comptroller of the Currency under 12 CFR, Part 34, Subpart C-Appraisals, 34.42 Definitions [f).
5 Appraisal Institute, The Dictionary of Real Estate Appraisal, 4th ed. (Chicago: Appraisal institute, 2002).
5 bid.
5DEFINITIONS
LEASEHOLD INTEREST: The interest held by the lessee (the tenant or renter) through a lease
transferring the rights of use and occupancy for a stated term under certain conditions. See also
negative leasehold; positive leasehold.”
IDENTIFICATION OF CLIENT AND OTHER INTENDED USERS
CLIENT: National City Bank
OTHER INTENDED USERS: None
This report is intended for use only by the named client above and any other named intended
users. USE OF THIS REPORT BY OTHERS IS NOT INTENDED BY THE APPRAISER.
INTENDED USE OF THE APPRAISAL
To provide an independent opinion of the market value of the subject property for the use of
asset analysis for the client/named other users. This report is not intended for any other use.
OBJECTIVE OF APPRAISAL
To provide an opinion of the market value for the fee simple estate for the subject property.
PROPERTY INTEREST APPRAISED
The property interest considered is the fee simple estate in the subject property.
CONDITIONS OF THE REPORT
This appraisal is based on the subject's current "as is" condition.
ENVIRONMENTAL STATEMENT
This report is based on no environmental problems being present on or near the subject
property that would have a negative impact on this property. The appraiser is not
knowledgeable regarding environmental problems, therefore, if any are discovered to exist, this
appraisal is null. The owner reported that a phase II environmental report details no significant
site contamination. It also was reported that the client has a copy of this report.
AMERICAN DISABILITIES ACT STATEMENT
The American Disability Act ("ADA") became effective January 26, 1992. We have not made
nor are we qualified to make a specific compliance survey and analysis of the property to
determine whether or not it is in conformity with the various detailed requirements of the act. It
is possible that a compliance survey of the property could reveal that the improvements may not
be in compliance with one or more of the requirements of the act. If so, this could have a
negative affect upon the sale of the property. Since we have no direct evidence relating to this
issue, we did not consider possible non-compliance with the requirements of the ADA in
estimating the value of the subject property.
7 Appraisal Institute, The Dictionary of Real Estate Appraisal, 4th ed. (Chicago: Appraisal Institute, 2002).THE SCOPE OF WORK
The scope of work for the appraisal is designed to explain the type and extent of research and
analyses in an assignment? that the appraiser conducted in analyzing, collecting, evaluating,
confirming and reporting pertinent data found in the appraisal report. The scope of work is
described in this section and may be further detailed in other sections of the written appraisal
report. The detail and complexity of the appraisal will vary depending on the complexity and
value of the real estate. The degree of detail and analysis provided in this report is appropriate
per current standards for this real estate product type and the intended use of the client.
1.) TYPE AND EXTENT
As part of this appraisal, we made several independent investigations and analyses. However,
we collected some data from other sources familiar with necessary procedures applicable in the
appraisal process. We believe these sources of information are familiar with the real estate
industry and competent in their professional knowledge in the real estate field. The
investigation undertaken and the major data sources used in are listed below.
AREA AND NEIGHBORHOOD ANALYSIS: The appraiser made a physical inspection of the
subject's immediate and surrounding neighborhood. An analysis of the Dayton-Springfield
M.S.A. had also been made and updated. The following is a partial list of the sources of
information that have been used:
Source Publication
Ohio Labor Market Information County Profile
Metropolitan Profile
Labor Force Estimates
Labor Market Review
Township of Butler: Zoning Ordinance
SITE DESCRIPTION AND ANALYSIS: A physical inspection of the subject site was conducted
by the appraiser on the reported date of inspection (see appraisal summary page). We obtained
the subject's parcel identification map from an internet data service with County Engineer maps.
IMPROVEMENTS DESCRIPTION AND ANALYSIS: A physical interior and exterior inspection
of the subject's improvements was conducted by the appraiser on the reported date of
inspection (see appraisal summary page). The building dimensions were obtained from:
appraiser measurement and public records.
MARKET DATA: As required for this appraisal we obtained data on the sales and current
listings in the subject's neighborhood and surrounding area from our database, an internet
based public record search service, on line County record services, MLS / Loop Net services
and telephone/internet searches with real estate brokers. These sales were verified by at least
one party familiar with the sale and through public records. We conducted, at a minimum, an
exterior inspection of each of these sales and personally photographed them if located in the
immediate area.
RENTAL DATA: As required for this appraisal we obtained rental data from our database, MLS
/ Loop Net services and telephone/internet searches with real estate brokers. A physical
inspection of the exterior was conducted of this data at a minimum if local in nature.
8 The Appraisal Foundation, Uniform Standards of Professional Appraisal Practice, Appraisal Standards Board, 2006, P.4.
7THE SCOPE OF WORK
2.) ANALYSIS USED (VALUATION METHODOLOGY)
In the appraisal of real estate there are three traditional approaches to value. These are the
cost, sales comparison, and income approaches.
The cost approach to value considers the cost of replacing the subject improvements new, less
accrued depreciation in all forms plus the current estimated value of the land "as if vacant".
The sales comparison approach requires the gathering of data as similar to the subject property
as possible and provides an indication of value through the comparative process.
Determining the degree of comparability between market data and the subject involves
considering their similarity with respect to many valuation factors including physical
characteristics such as: size, location, age, quality of construction and condition; and economic
factors which include: competitive rental positions, required capital for deferred maintenance, if
any existing financing and availability of financing at the time of the appraisal. Adjustments are
made for market recognized differences.
The adjustment process has the goal of making the available data as comparable as possible to
the subject property, and relies upon extracting adjustment factors from the market and also
upon the appraiser's trained judgment as to the data's similarity.
The income approach reflects current market rents and competitive operating expenses. This
approach utilizes a capitalization rate found in the recent/current real estate market which is
applied to the subject's estimated net operating income to produce an indicated value for the
subject.
To value the subject the following approach(s) is used:
The value of vacant land is best reflected in the sales comparison approach to value via the
principle of substitution if sufficient sales are available. There are adequate sales for this
property. The market participant typically looks only to this approach to value. The client as a
mortgage lender uses various underwriting techniques to secure their loan, including credit
analysis of the applicant, loan to value ratio and a real estate appraisal.
The analysis and accuracy pursued reflect the client's use. Considering the client and the
intended use, this approach to value will produce a credible appraisal. Therefore, the other two
approaches are not used.NEIGHBORHOOD DATA
La a
I a turin Helonts, 5
SUBJECT
18220 N Dixie Dr
Dayton, OH 45414
rah sped 2
‘and (F) 1088-2007: Microsoft Corpsration andiorits suppliérs AMT nights reserve
The subject property is located in a Butler Township commercial neighborhood accessed via
North Dixie Drive. The subject's immediate neighborhood area is zoned business. This is an
older formerly residential neighborhood that has transformed over the last 10 years to one of
northern Dayton’s thriving retail/commercial areas. In the mid to late 90’s rapid commercial
development occurred within this area further accelerated by the addition of a new I-75
interchange at Benchwood/Wise Road significantly benefiting the real estate at the southern
end of Miller Lane near Benchwood Road. The area remains a thriving retail area despite the
closing of some national theme style restaurants.
The national, regional and local economies have slipped into recession (December of 2007).
The slowing economy along with the closure of the General Motors plant has caused the
unemployment rate to rise within the immediate area. These negative economic factors have
further strained an already beleaguered area industrial real estate market. These market
conditions are causing values to soften and increasing vacancies across a broad spectrum of
commercial property types within the Dayton market area.SALES HISTORY
In developing a real estate appraisal, an appraiser must consider, analyze and disclose:
(a) Any current agreement of sale, option or listing of the property being appraised.
(b) Any prior sales of the subject property being appraised that occurred within the
following time periods:
(i) Three (3) years for 1 - 4 family residential property, and
(ii) Three (3) years for all other property types.
The appraiser has attempted to obtain specific information on the subject property with the
following findings:
[X] The subject property has had no change of ownership during the past three-(3)
years.
[ ] The subject property is currently under contract. Details of the pending purchase are
summarized below.
[X] The subject property is currently offered for sale.
[ ] The subject property has been sold during the past three- (3) year period. Details of
the previous sale are disclosed below.
[ ] The subject property is proposed construction and is not currently being offered.
{ ] A previous sales history of the property could not be obtained by the appraiser in the
normal course of business.
Grantor/Owner of Record: William G. Moritz, Jr.
Grantee/Purchase: N.A.
Contract Price/Sale Price: N.A.
Date of Contract/Sale: N.A.
COMMENTS
The subject property has not sold in the past 3 years.
The owner has had the property listed for sale over the past several years. It reportedly was first
listed for $330,000 per acre. According to the owner, there was no interest in the property at that
asking price. The asking price has since been lowered to $275,000/acre and, according to the
owner, there have been a few “nibbles” at that the lower asking price.
10PROPERTY IDENTIFICATION
Property nem PARCEL A
Address: 18220 NORTH DIXIE DRIVE
City, state, zip code: DAYTON, OH, 45414
MONTGOMERY ‘Appraisal fle #: 204074
OWE — NORTH DIME DRIVE
9.57 ACRES IN SEC. 27, T.3,R.6, TOWNSHIP OF BUTLER
APPRAISAL DATA
‘Appraised value: ‘$690,000
‘Appraisal effective data: (05-May-2009
Owner: WILUAM G. MORITZ, JR.
TAXES
‘Tax identification #: 72,73
Current use: GARDEN SUPPLY STORE Tax amount: $11,468.60
Confirmed by: INSPECTION; P. RECORD; OWNER Tax year: 2008
Company: BILL MORITZ ‘Appraised value: $291,440
Deedferms/rights: FEE SIMPLE; CONVENTIONAL
Financing source: NATIONAL CITY BANK
IMPROVEMENT DESCRIPTION SITE DESCRIPTION
Land area (acres): 357
Land area (sf): 155,509
Utilities: WATER, SEWER, GAS, ELECTRIC
Location in block: INTERIOR
Land topogrephy: LEVEL
Zoning: LC-S2, LOCALICOMM DS
Land dimensions: L-SHAPE
# of front fect: 320
INCOME AND EXPENSE DATA.
DATA N/A
COMMENTS
‘The subject is 3.57 acres of commercially zoned land backing to the
York Commons commercial development along Miller Lane. The site has all
public utilities. It is accessed by a 4 lane road with a center tum lane.
The site is improved with a 5,144 SF concrete block warehouse building
and a 2,500 SF retail/warehouse building. In addition, there is
approximately 20,000 SF of asphlat paving and 14,000 SF of concrete
walkways and pads for the several greenhouses located on the site. There
is a considerable amount of site debris.
11SITE DESCRIPTION — PARCEL A
The site description is found opposite this page on the subject summary sheet.
The site area is not in a recognized FEMA flood area. The FEMA reference map used is detailed on
page 1 of this report. No significant adverse conditions were observed or reported to the appraiser
during the inspection.
The subject is an L-shaped site with 320+- feet of frontage along heavily traveled North Dixie Drive.
The north side of the site has 264+- feet of depth. The south side has 594+- feet of depth. The
average depth is 429+- feet. The front to depth ratio is 0.75 and considered above average for
commercial development.
CONCLUSION
The subject site is an average size L-shaped lot with high traffic exposure off a major highway
suitable for retail space development.
IMPROVEMENT DESCRIPTION
The subject is improved with an older block office/warehouse building and a metal retail/warehouse
building. On the following pages is a sketch of the main improvement(s).
In addition there is approximately 22,420 SF of asphalt paving and 14,114 SF of concrete.
These improvements will need to be razed prior to any commercial development. This will make the
subject competitive within its market area considering that all the sales and most of the prime
current listings were or are pad/shovel ready sites. The Marshall and Swift Valuation Handbook will
be utilized to estimate the razing of the subject improvements. Also, the site debris in the form of
junk cars, wood, trees and equipment/materials needs to be cleared from the site.
The chart below details the estimated razing and site clearing cost of the subject’s improvements.
NGe os
Old block officeAwarehouse building
Metal retail/warehouse building
[Asphalt paving
Concrete
$11,210
$28,228
EEARING = a
Item : SIAC Total
Removal of site debris [3.6 [$1,000.00 $3,570
[Total $76,709
Based on this data, the estimated cost to raze the subject improvements and clear the site is say
$80,000 (rounded).
12SITE MAP
FIBIA,
I-VI 8
275.20!
GOCE
2700's a
6 tte)
AERIAL MAP
‘SUBJECT.
ae 7
13BUILDING SKETCH
Parking lot
aunty foe ttea™ ‘Seale:
AREA CALCULATIONS SUMMARY |) BUILDING AREA BREAKDOWN
Code ‘Description Net Size Net Totals «|
Gai” First Floor Sidd.o B1ae.0
OTH’. | Parking Lot 12420:0 12420.0
Net BUILDING Area (rourides) 5144 (rounded)BUILDING SKETCH
{3 | concrete pad
Concrete pad
50"
in Warehouse
ig Concrete pad
Retail service
B
48 space asphalt parking lot
Scale:
Sey oa
code
‘GBA
Description
ori
Conerete pad
Net BUILDING Area
AREA CALCULATIONS SUMMARY
Net Size 7 Net Totals |
3750.0
144.0
(rounded)
“BUILDING AREA BREAKDOWN
Breakcown ‘Subtotals
Ratail gales/service
50.0 x. 50.0 2500.0
Warehouse
25.0 x 1250.0
50.0
(rounded) 3750
2 items,inine DANET O1Ra
FLOOD MAP
16
Flood Hazards Map
Map Humber
39113C0152E
Effective Date
January 6, 2005
Flood Legend
High flood risk
[_] moderate food risk
[EJ] Low ttood riteSUBJECT PHOTOGRAPHS
FRONT
REAR
17SUBJECT PHOTOGRAPHS
STREET SCENE
STREET SCENE
18PROPERTY IDENTIFICATION APPRAISAL
Property name: PARCEL B E1102
Address: 18220 NORTH DIXIE DRIVE
City, state, zip code: DAYTON, OH, 45414
County: MONTGOMERY ‘Appraisal file #: 9204074
Stroot frontage: (OWE — NORTH DOME DRIVE
Legal description: 5.05 ACRES IN SEC. 27, 7.9, R.6, TOWNSHIP OF BUTLER
APPRAISAL DATA
‘Appraised val $1,090,000
Appraisal effective date: 05-May-2009
Owner: WILLIAM G. MORITZ, JR.
TAXES
“Tax identification #: —
Current use: VACANT Tax amount: $6,499.34
Confirmed by: INSPECTION; P. RECORD; OWNER Tax year: 2008
Company: BILL MORITZ ‘Appraised value: $204,510
Deodytorms/tights: FEE SIMPLE; CONVENTIONAL
Financing source: NATIONAL CITY BANK,
IMPROVEMENT DESCRIPTION SITE DESCRIPTION
Land area (acres) 5.05
Land area (=f): 220,087
Utilities: WATER, SEWER, GAS, ELECTRIC
Location in block: INTERIOR
Land topography: LEVEL
Zoning: LG~S2, LOCALICOMM DS
Land dimensions: L-SHAPE
# of front feet: 370
INCOME AND EXPENSE DATA
DATANIA
COMMENTS
‘The subject is 5.05 acres of commercially zoned land backing to the
York Commons commercial development along Miller Lane. The site has all
public utilities. It is accessed by a 4 lane road with a center turn fane.
‘The site is improved with a 1,590 SF single family type structure and an
old 1,740 SF barn.
19SITE DESCRIPTION — PARCEL B
The site description is found opposite this page on the subject summary sheet.
The site area is not in a recognized FEMA flood area. The FEMA reference map used is detailed on
page 1 of this report. No significant adverse conditions were observed or reported to the appraiser
during the inspection.
The subject is a rectangular site with 370+- feet of frontage along heavily traveled North Dixie Drive.
The depth is 594+- feet. The front to depth ratio is 0.62 and considered above average for
commercial development.
CONCLUSION
The subject site is an average size rectangular lot with high traffic exposure off a major highway
suitable for retail space development.
IMPROVEMENT DESCRIPTION
The subject is improved with an single family house and barn. On the following pages is a sketch of
the main improvement(s).
In addition there is approximately 36,000 SF of asphalt paving.
These improvements will need to be razed prior to any commercial development. This will make the
subject competitive within its market area considering that all the sales and most of the prime
current listings were or are pad/shovel ready sites. The Marshall and Swift Valuation Handbook will
be utilized to estimate the razing of the subject improvements. Also, the site debris in the form of
junk wood, trees and equipment/materials needs to be cleared from the site.
The chart below details the estimated razing and site clearing cost of the subject's improvements.
enon vltemy i ee SE _CostiSF:}: Total: |
ingle famliy 1,590 $3.00 $4,770
arn 1,740 3.00 5,
halt pavi 36,000 $0.50 $18,000
ee Ttemie es acre: SIAC. Total
emoval of site debris 5.1 $500.00 $2,525,
otal 515
Based on this data, the estimated cost to raze the subject improvements and clear the site is say
$30,000 (rounded).
20SITE MAP
wT
8
Zoe"
ie 244°
(PACT YC
iA GA, s
FS"
BOP 29°E
Kael veaie
7
pal
ieee tcc eer
ee i
' 4004,
PAEIA,
d-V-t58&
755-46 F44g)
£0 Ha,
F “O37 ta D
Marrs vig)
LA OVSED
370.88")AERIAL VIEW
2.68 ACRE SITE
WITH NEW HOTEL
| UNDER
22BUILDING SKETCH
150’ x 240! asphalt parking lot
hype Seale; 1248
AREA, CALCULATIONS. SUMMARY i BUILDING AREA BREAKDOWN
Description Net Size : Breakdown ‘Subtotals
Barh 3710.0 Barn
House 1590.0 30,0 x 58.0
House
38:0 x 27.0
izi0 x. a7l0
Net BUILDING Area: (rounded) (rounded),FLOOD MAP
FLOODSCAPE
Flood Hazards Map
Map Number
39113C01 $2 i
Effective Date
January 8, 2005
Flood Legend
High flood risk
[_] Moderate flood risk
[J Low too risk
24SUBJECT PHOTOGRAPHS
FRONT
REAR
25SUBJECT PHOTOGRAPHS
STREET SCENE
STREET SCENE
26EXPOSURE TIME
1. The time a property remains on the market.
2. The estimated length of time the property interest being appraised would have been offered
on the market prior to the hypothetical consummation of a sale at market value on the effective
date of the appraisal; a retrospective estimate based on an analysis of past events assuming a
competitive and open market. Exposure time is always presumed to occur prior to the effective
date of the appraisal. The overall concept of reasonable exposure encompasses not only
adequate, sufficient and reasonable time but also adequate, sufficient and reasonable effort.
Exposure time is different for various types of real estate and value ranges and under various
market conditions. (Appraisal Standards Board of The Appraisal Foundation, Statement on
Appraisal Standards No. 6, "Reasonable Exposure Time in Real Property and Personal
Property Market Value Opinions")
Market value estimates imply that an adequate marketing effort and reasonable time for
exposure occurred prior to the effective date of the appraisal. In the case of disposition value,
the time frame allowed for marketing the property rights is somewhat limited, but the marketing
effort is orderly and adequate. With liquidation value, the time frame for marketing the property
tights is so severely limited that an adequate marketing program cannot be implemented. (The
Report of the Appraisal Institute Special Task Force on Value Definitions qualifies exposure time
in terms of the three above-mentioned values.) See also marketing time.9
The exposure time necessary to sell the subject depends upon numerous variables. These
include, but are not limited to the condition of the property, prevailing financing, availability of
financing, location, reasonableness of asking price and willingness to negotiate price and terms.
For this discussion it will be assumed that the property will be sold for market value as defined
in this appraisal report with a reasonable asking price.
The estimate of exposure time based on sale histories and Realtor® opinions is from 6 months
to 18 months.
MARKETING TIME
1. The time it takes an interest in real property to sell on the market sub-sequent to the date of
an appraisal.
2. Reasonable marketing time is an estimate of the amount of time it might take to sell an
interest in real property at its estimated market value during the period immediately after the
effective date of the appraisal; the anticipated time required to expose the property to a pool of
prospective purchasers and to allow appropriate time for negotiation, the exercise of due
diligence, and the consummation of a sale at a price supportable by concurrent market
conditions. Marketing time differs from exposure time, which is always presumed to precede the
effective date of the appraisal. (Advisory Opinion 7 of the Appraisal Standards Board of The
Appraisal Foundation and Statement on Appraisal Standards No. 6, "Reasonable Exposure
Time in Real Property and Personal Property Market Value Opinions" address the determination
of reasonable exposure and marketing time.)"°
The estimated market time based on sale histories, Realtor® opinions and future estimated
market conditions is from 12 months to 36 months.
9 Appraisal Institute, The Dictionary of Real Estate Appraisal, 4th ed. (Chicago: Appraisal Institute, 2002).
10 hi
Ibid.
27TYPICAL BUYER /USER
The typical buyer of this real estate type would be a real estate developer.
HIGHEST AND BEST USE
DEFINITION: Highest and best use is the reasonably probable and legal use of vacant land or
an improved property, which is physically possible, appropriately supported, financially feasible
and that results in the highest value.
The zoning for the subject site is LC-S2, commercial service district. The zoning appears to be
stable. The zoning accommodates a wide variety of commercial uses. The site is physically
capable of supporting these legal uses. Currently, mortgage interest rates are reasonable to
support new construction costs. However, demand for speculative building is limited. Therefore,
the highest and best use as vacant would be an interim use to hold until a pre-lease is
negotiated or a sale to an owner occupant.
The highest and best use as improved is not its current use.
The subject existing structures do not contribute to the highest and best use of the site. Many of
the older area structures have been razed and converted to “big-box” retail, hotels and
restaurant uses. The most recent development is of a Residence Inn hotel, which abuts to the
subject's eastern property line. In a review of area sales data, it is estimated that the value of
the existing structures on Parcel A and Parcel B do not produce the highest value, as improvéd.
Parcel A:
We reviewed area sales for the similar industrial/retail properties, which indicated a range of $29
to $46 with a mean of $35.76 for similar industrial properties with retail components. This would
indicate a value for the subject's 8,994 SF of industrial retail buildings of say $320,000
(rounded).
Parcel B:
We reviewed area sales for the mixed-use single family/retail type properties, which indicated a
range of $34 to $52 with a mean of $42.60 for similar single family properties with retail
components. This would indicate a value for the subject’s 3,330 SF of mixed-use single
family/barn retail building of say $145,000 (rounded).
Therefore, it is estimated that a higher value would result from razing the existing structures and
developing the site with modern retail use consistent with the nearby new commercial retail
development.
28HHE DUN
[Sale number.
He
I
SUBJECT
4
I
"ARCEL A
LE #204074
2
indax #
‘9508
IPARCELA
|NORTH DDXE DRIVE
DAYTON, OH 45414
"7908
IMCDONALD's LAND
lae11 YORK COMMONS BOUL
JDAYTON, OH 45414
7098)
FIFTH THIRD BANK LAND
1.625 ACRES NORTH ODUE DI
DAYTON, OH 45414
RESIDENCE INN LAND
YORK GENTER DRIVE
DAYTON, OH 45614
JHARSON INVESTMENT LAND.
MAXTON ROAD
JDAYTON, OF 45414
[Sale prico
‘05—May—09|
357
165,500]
20
(09-Dec-2005
1.50]
65,122
285}
NIA
15-May-2008
1.63
70,785
258]
$450,000)
17-Jul-2008]
41
200,724)
$1,080,000}
(07—May-2006|
8.282]
348,069]
$1,800,000|
[zoning
Specific use
[Topography terrain
Location in block
tities
|Floodptain influence
Dimensions
Site improvements/cover
[COMMERCIAL
Leven,
INTERIOR
woNe:x
L-SHAPE
Lo=s2, LOCALICOMM DS.
WATER, SEWER, GAS, ELECTH
CORNER WiLIGHT
|WATER, SEWER, GAS, ELECT
INONE:x
258 x-245, RECTANGULAR
[B-3; COMM. OIST.
COMMERCIAL
uve,
INTERIOR
|WATER, SEWER, GAS, ELECTH
[COMMERCIAL
COMMERCIAL
LEVEL.
CORNER — NO.LIGHT
|WATER, SEWER, GAS, ELECTH
NONE:
RECTANGULAR
COMMERCIAL,
[COMMERCIAL
Lever.
INTERIOR
WATER, SEWER, GAS, ELECT
NONE
REGULAR
Bicenemss
a
Ea g308,009)
PROPERTY RIGHTS
|
$301,005)
szstar
semis
Adjusted price por acrs
pee TERMS:
[CONDITIONS OF SALE
\ijustad price|
$301,009)
a
a
=10.0
$183,
IME/MAR
justed price per acre
{KET CONDITION NEGATIVE,
10.
$270,909
=10.00%|
$249,231)
Seon
$222,655)
smal
LOCATION
Percentage adjustment
Dollar adjustment
SIZE
Percentage adjustment
Dollar adjustment
IPHYSICAL ATTRIBUTES
Percentage adjustment
Dollar adjustment
|ACCESS/VISIBILITY
Percentage adjustment
Dollar adjustment
ZONING
Percentage adjustment
Dollar adjustment
‘BUTLER TWP.
3.57 ACRES:
AVG+/GOOD
COMMERCIAL
1.0 ACRES
(627,099)
Leven,
($27,080)
COMPARABLE
[BUTLER TWP.
1.63 ACRES
JAve+iG000
COMPARABLE
|4.61 ACRES
Jaoop/eoon
-5%|
(s11,133]
COMPARABLE
[BUTLER TWP INFERIOR
10%
$10,574]
82 ACRES
$18,374
lave+a00D
JcOMPARABLE
Gross percentage adjustment
ercentage adjustment.
a
[ Gross dollar adjustment | onl ‘$24,
‘Net dollar adjustment ($54,181 ($24,923)
GDS ae Tun se
ioe
29THE, BUN N a At COMER a —
[Sale number IL ‘SUBJECT c 4 2 ae 3
index # 7am 7a08
Name pancete wcponALs’s LaNo IrFTHTHORD BANKLAND — |RECIDENCEINN LAND | HARSON INVESTHENT LAND
Address 20 NORTH Dyce Drive —_fa411 YORK COMMON BOULE 1.625 ACRES NORTH DIXIE DAYORK ENTER DRIVE | MAXTON ROND
city, State, Zip Code__|pavTon, on 45414 DAYTON, OH 45414 DAYTON, OF 45414 DAYTON, OH 45414 DAYTON, OF 45414
Sele dete 05-May-09 @9-Deo 2005 15-May-2008 17—Jul2008| (O7-May2008
Land area (acres) S05 1.50] 1.99] 461 aa]
Land area (el) 220,067 5,122] 70,705 200.724| 248,000]
# of front feet s70] 2a5| 250
o oo
[Sale prico NA ‘$450,000 $450,000) $31,090,000] $1,200,000]
Zoning 1Lc=82, Locajcomm Ds [B-3; COMM. DIET. [5-3; comm, DIST. Jcommenciat [coMmenciAL
Specific use | feommencia lcommenciat lconmERCAL lcommenctal lcoMMERCIAL
Topographynerrain LeveL LEVEL ever peven LEVEL
Location in block INTERIOR CORNER W/IGHT Interior IconNer ~ No LIGHT Wrenn
tities |WATER, SEWER, GAS, ELECTH WATER, SEWER, GAS, ELECT WATER, SEWER, GAS, ELECTAWATER, SEWER, GAS, ELECTH WATER, SEWER, GAS, ELEOTH
Floodplain irftuence | wone;x INONE:x owe;x None:x Nowe:x
Dimensions L-sHarE J265x245, RECTANGULAR |250%228, RECTANGULAR |RECTANGULAR IaREGULAR
Site imp foover.
pretperene oe ce po |e ST
[PROPERTY RIGHTS
a = = Sa
re pra J sso.o sera cul sau
FINANCING TERMS l cl J | |
Adjusted price per acre $301 $276,923) $234,375) $204,151]
[CONDITIONS OF SALE
IME/MARKET CONDITIONNEGATIVE =a] =10. | =S00x |
Adit ic acre. $249,231 $189,736)
LOCATION | BUTLER TAP. BUTLER Twe. jauTLER TWP. jeuTER Tw. [BUTLER TWP./INFERIOR
Percentage adjust mont 10%
Dollar adjustment $18,374)
SIZE 5.05 ACRES }.SOACRES 1.63 ACRES [4.01 ACRES b.02 ACRES
Percentage adjustment 10% -10% 10%
Dollar adjustment (627,090 ($24,023} $18,974]
PHYSICAL ATTRIBUTES LEVEL Lever. Leven. LeveL Leven.
Percentage adjustment
Dollar adjustment
JACCESSMISIBILITY —- AVG+/GOOD lExcyaoon lava+yGoon goon/coo0 Jave+iac00
Percentage adjustment —10% 5%]
Dollar adjustment ($27,090} ($14,199}
ZONING COMMERCIAL, |COMPARABLE COMPARABLE COMPARABLE COMPARABLE
Percentage adjustment
Dollar adjustment
‘Gross percentage adjustment | on ‘oa = aa
Notporcontage adjustmont =20% =103 =5x)
Gross dollar adjustment | ssa] $245 sta er
($54,161 (24 sr $36,747
Net dollar adjustment
ee ee
average (Means
30COMPARABLE IMPROVED SALES PHOTOGRAPHS
COMPARABLE #1 COMPARABLE #2
COMPARABLE #3 COMPARABLE #4
31COMPARABLE SALES MAP
#4
Dayton, OH 45414
48220 N Dixie Dr
Dayton, OH 45414
1.625 ACN. Dixie
Dayton, OH 45414
Drury inn and Suite
8.817 AC Maxton Rd
Comfort i faNO"
Inn Dayonggy
@
| Fetreld
fore eo
al
| Lone Star
(1 eo
ind Saloon
‘Joe's Crab
hack
“
of Ouiback
-{ | Steakhouse
3
3 ive Carden
aie
cee
i
i
ieee
fayon-Nort
. S
Residence
Inn-Dayton
ern
‘Courtyaid-Daytor||
ie met
i
Homestretch-RE-———]
Vandalia
32RECONCILIATION & FINAL VALUE CONCLUSION
The value indicated by application of each of the utilized approaches is:
PARCEL A:
Cost Approach Sales Comparison Approach Income Approach
NLA. $690,000 NLA.
PARCEL B:
Cost Approach Sales Comparison Approach. Income Approach
NA. $1,060,000 NLA.
RECONCILIATION CONSIDERATIONS:
Reconciling the indicated values into a final value conclusion necessitates focusing on the
following critical factors:
1. Which of the approaches is based on the greatest amount of reliable data;
2. In which approach are the attitudes of typical buyers and sellers most faithfully
represented;
3. In consideration of the objective of the appraisal and the present use of the subject
property, which approach is the most pertinent.
RECONCILIATION DISCUSSION:
Four comparables were selected. All of them are from the subject's immediate market area.
One of them (C#4) is an offering sale. The noticeable trend of the unadjusted prices per acre
has been downward, which appears to be trending in concert with declining market conditions.
After adjustments to the sales for condition of sale, time/market conditions, sizes, and
access/visibility they indicated an adjusted price per acre of $211,000 to $224,000. The opinion
of value from these sales is favored toward the lower end of the range at say $215,000 acre
primarily due to recessionary conditions causing weakening demand for retail development.
NOTE: The values for parcel A and B include downward adjustments for the estimated cost raze
existing improvements and clearing of their respective sites of $80,000 and $30,000,
respectively.
CONCLUSION:
As a result of my investigation, and based upon the foregoing data and analysis, it is my finding
that the market value opinion of the property rights herein appraised, of the subject property, as
of May 5, 2009, and subject to the underlying assumptions and limiting conditions and
certifications in the sum of:
PARCEL A- $690,000
PARCEL B - $1,060,000
SUBJECT TO EXPOSURE TIME AS ESTIMATED
HYPOTHETICAL CONDITIONS, EXTRAORDINARY LIMITING CONDITIONS
33DISPOSITION VALUE
eee ee = SALES OF DISTRESSED PROPERTIES:
Property type [City Date _|Vvalue [vaiue: _|Distressed |% Decrease |Comments:
established by: [sale price: [established value:
Subdivision [Kettering | Jul-07|Appraisal_[ $85,000 | $68,000 | 20.00% _ [smal resent subdivision, forced sale by lender.
Retail Moraine | Feb-08|Appraisal_ [$275,000| $182,000 | 33.82% _ [pisiessed retal property foreclosed on by Its lender
industrial [Dayton | Dec-07|Market sale [$256,000] $195,000 | 23.83% _ [Property purchased at Sher sale by its fonder fr S255
Jotice Kettering | Dec-04|Appraisal_ [$184,000] $146,000 | 20.65% _ | auick saleby bank. Only 1 month of marketing time.
findustial [Franklin | Jan-08|Appraisal [$235,000 | $210,000] 10.64% _ [co.shut down oporations locking for uick sale of vacant bid,
[Special Xenia__| Dec-07|Appraisal [$645,000] $550,000 | 14.73% _ [Forced eal by lender. Listed for $1,100,000, Appraised for $645K
industrial [Moraine | Dec-06|Appraisal_ [$335,000] $279,000 | 16.72% _ [Forced saleby lender. Property was neglected and vacant.
office Hamitton |" JuL07| Market sale | $360,000 | $270,000 | 26.00% | Lender ol for $270K. © mos tater etl for ighr pie $360k
industrial__|Dayton_|_Sep-08[BPO $250,000 | $207,500 | 17.00% _ | Forced saleby endor, Liste at $275,000. Property was vacant.
[Analysis
Range: 11% to 34%
[Mean: 20.26%
DEFINITION: LIQUIDATION VALUE
The most probable price that a specified interest in real property is likely to bring under all of the
following conditions:
4.Consummation of a sale will occur within a severely limited future marketing period specified
by the client.
2.The actual market conditions currently prevailing are those to which the appraised property
interest is subject.
3. The buyer is acting prudently and knowledgeably.
4. The seller is under extreme compulsion to sell.
5. The buyer is typically motivated.
6. The buyer is acting in what he or she considers his or her best interest.
7. A limited marketing effort and time will be allowed for the completion of a sale.
8. Payment will be made in cash in U.S. dollars or in terms of financial arrangements
comparable thereto.
9. The price represents the normal consideration for the property sold, unaffected by special or
creative financing or sales concessions granted by anyone associated with the sale.
This definition can be modified to provide for valuation with specified financing terms. See also
disposition value; distress sale; forced price; market value."
Market data indicates that properties sold within shorter than typical marketing times or
distressed properties often sell for less than market value. The liquidation (disposition) value is
based on the subject having to be sold in a shor
Preview
ELECTRONICALLY FILED Redacted by Clerk of Court COURT OF COMMON PLEAS Wednesday, January 26, 2011 10:19:57 AM CASE NUMBER: 2016 CV 06086 Docket ID: 15814416 GREGORY A BRUSH CLERK OF COURTS MONTGOMERY COUNTY OHIO: I] THE COURT OF COMMOI PLEAS MOI] TGOMERY COU] TY, OHIO PNC BANK, NATIONAL ASSOCIATION, 7 Case No. 2010 CV 06086 SUCCESSOR TO NATIONAL CITY BANK, Plaintiff, v. ; OBJECTIOL TO THE 7 APPRAISER’S REPORT AI D WILLIAM G. MORITZ, JR., et al. REQUEST FOR HEARII G Defendants. ; J OW COME Defendants William G. Moritz, Jr., Nancy L. Moritz, and Moritz Flowers, Inc. (collectively the “Defendants”), by and through counsel and for their objection to the Appraiser’s Report respond as follows: 1. The Defendants believe that the filed Appraiser’s Report in the amount of $1,350,000.00, does not reflect the accurate value of the real estate. 2. On May 5, 2009, National City Bank had an appraisal completed by The Dunham Company (attached as “Exhibit A”). The appraised value for the real estate was determined to be $1,750,000.00. 3. There is a value discrepancy of $400,000.00 between the Appraiser’s Report and the appraisal completed on May 5, 2009 (approximately a 23% difference). WHEREFORE, the Defendants, William G. Moritz, Jr., Nancy L. Moritz, and Moritz Flowers, Inc., respectfully request, a hearing to be set on this matter to determine the true and accurate value of the real estate.Respectfully submitted, /s/ John Paul Rieser John Paul Rieser (0017850) Patricia J. Friesinger (0072807) Rieser & Associates LLC 7925 Graceland Street Dayton, Ohio 45459-3834 Tel: (937) 224-4128 Fax: (937) 224-3090 Attorneys for Defendants William G. Moritz, Jr., | ancy L. Moritz, and Moritz Flowers, Ine. CERTIFICATE OF SERVICE The undersigned hereby certifies that a true and correct copy of the foregoing was served by regular U.S. mail, postage prepaid, this 26" day of January, 2011 upon: William and Nancy Moritz 8220 A North Dixie Drive Dayton, OH 45414 Moritz Flowers, Inc. 8220 A North Dixie Drive Dayton, OH 45414 George B. Patricoff, Esq. 301 West Third Street, 5° Floor Dayton, OH 45402 Jeffrey Hendricks, Esq. 1900 Fifth Third Center S11 Walnut St. Cincinnati, OH 45202 Victor T, Whisman, Esq. 301 West Third Street, 5" Floor PO Box 972 Dayton, OH 45422 /s/ John Paul Rieser John Paul Rieser First International Bank 280 Trumbull Street Hartford, CT 06103 First International Bank 2035 Limestone Rd. Wilmington, DE 19808 Matthew A. Taulbee, Esq. Lerner, Sampson & Rothfuss PO Box 5480 Cincinnati, OH 45201 William H. Macbeth, Esq. Murr, Compton, Claypoole & Macbeth 401 East Stroop Road Kettering, OH 45429A SUMMARY REPORT OF AN APPRAISAL ASSIGNMENT OF PROJECT # 09-001669-01-1 COMMERCIAL LAND PARCEL A = 3.57 ACRES PARCEL B= 5.05 ACRES 8220 NORTH DIXIE DRIVE DAYTON, OHIO 45414 PREPARED FOR: MR. ROBERT MCGEE NATIONAL CITY BANK 629 EUCLID AVENUE, 6™ FLOOR CLEVELAND, OHIO 44122 AS OF: MAY 5, 2009 PREPARED BY: The Dunham Company, lac. .O, Box 592 WBB, Dayton, Ohio 45409-0592 (937) 461-0517 BO. BO ae EXHIBIT A FAX (937) 461-0771TABLE OF CONTENTS TITLE PAGE TABLE OF CONTENTS APPRAISAL SUMMARY .. DATE OF VALUATION... ‘LEGAL DESCRIPTION ... ASSUMPTIONS AND LIMITING CONDITIONS ...... HYPOTHETICAL CONDITIONS .... EXTRAORDINARY LIMITING ASSUMPTION: DEFINITIONS....... Seldeldetdatdaptebtaateen DEFINITION OF MARKET VALUE ..... IDENTIFICATION OF CLIENT AND OTHER INTENDED USERS..... INTENDED USE OF THE APPRAISAL OBJECTIVE OF APPRAISAL....... PROPERTY INTEREST APPRAISED ....... CONDITIONS OF THE REPORT........ ENVIRONMENTAL STATEMENT....... AMERICAN DISABILITIES ACT STATEMENT. THE SCOPE OF WORK.... NEIGHBORHOOD DATA............ seteeeeesseee SALES HISTORY... SUBJECT SUMMARY... SITE DESCRIPTION — PARCEL A SITE MAP... SUBJECT PHOTOGRAPHS ..... SUBJECT SUMMARY....... SITE DESCRIPTION — PARCEL B..... SITE MAP...... SUBJECT PHOTOGRAPHS EXPOSURE TIME....... MARKETING TIME..... oe HIGHEST AND BEST USE................ SALES COMPARISON APPROACH — PARCEL A SALES COMPARISON APPROACH — PARCEL B RECONCILIATION & FINAL VALUE CONCLUSION ..... DISPOSITION VALUE... CERTIFICATIONS... QUALIFICATIONS...... ENGAGEMENT LETTER9.57 ACHES & 5.05 ACRES, SEC.23, T.3, R.6, TOWNSHIP OF BUTLER DAYTON, OH 45414 Index #: 9588 MONTGOMERY ‘Appraisal filo #: 204074 Appreises(s): MICHAEL W. GILDEA ‘Consus tract #: 1102 TIMOTHY N. DUNHAM, MAI. SRA ‘Date of inspection: MAY 5, 2008 Date of valuation: MAY 5, 2009 Date of report: MAY 8, 2008 Property rights appraised: FEE SIMPLE Zoning: Le-s2, LOCAL|GOMM DS Highest and best use: LAND ‘Owners of record: WILLIAM G. MORITZ, JR. Floodplain influence; NONEX FEMA flood map panel #: 390113C0152E FEMA flood map date: (06—Jan—2005 ‘Tax identification #: 772.73 [i REPRESENTATIVE VIEW OF SUBJECT VALUE CONCLUSIONS: COST APPROACH: NLA. SALES COMPARISON APPROACH — PARCEL A: SALES COMPARISON APPROACH — PARCEL INCOME APPROACH: NLA, FINAL VALUE ESTIMATE — PARCEL A: FINAL VALUE ESTIMATE — PARCEL B: $770,000 $1,090,000 $690,000 $1,060,000ASSUMPTIONS AND LIMITING CONDITIONS This report, the letter of transmittal and the certification of value are made expressly subject to the following assumptions and limiting conditions, and any special limiting conditions contained in the report, which are incorporated herein by reference. 1. The legal description furnished is assumed to be correct. | assume no responsibility for matters legal in character nor do | render any opinion as to the title, which is assumed to be good. All existing liens and encumbrances, if any, have been disregarded and the property is appraised as though free and clear, under responsible ownership and competent management. 2. The sketch in this report is included to assist the reader in visualizing the property. | have made no survey of the property and assume no responsibility in connection with such matters. 3. | believe to be reliable the information which was furnished by others, but | assume no responsibility for its accuracy. 4, Possession of this report, or copy thereof, does not carry with it the right of publication, nor may it be used for any purpose by any but the applicant without the previous written consent of the appraiser or the applicant and then only with proper qualification. 5. | am not required to give testimony or to appear in court by reason of this appraisal, with reference to the property in question, unless arrangements have been previously made therefore. 6. The distribution of the total valuation in this report between land and improvements applies only under the existing program of utilization. The separate valuations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. 7. The land, and particularly the soil, of the area under appraisement appears firm and solid. Subsidence in the area is unknown or uncommon, but this appraiser does not warrant against this condition or occurrence. 8. Subsurface rights (mineral and oil) were not considered in making this appraisal. 9. This appraiser very carefully inspected the buildings involved in this appraisal report, and damage, if any, by termites, dry rot, wet rot, or other infestations were reported as a matter of information by your appraiser, as | do not guarantee the amount of damage, if any. 10. All furnishings and equipment, except those specifically indicated and typically considered as a part of real estate, have been disregarded by this appraiser. Only the real estate has been considered. 11. The comparable sales data relied upon in this appraisal is believed to be from reliable sources; however, it was not possible to inspect the comparables completely, and it was necessary to rely on information furnished by others as to said data; therefore, the value conclusions are subject to the correctness and verification of said data. 12. The appraiser has inspected, as far as possible, by observation, the land and the improvements thereof; however, it was not possible to personally observe conditions beneath the soil or hidden structural components within the improvements; therefore, no representations are made herein as to these matters and unless specifically considered in the report, the valueASSUMPTIONS AND LIMITING CONDITIONS estimate is subject to any such conditions that could cause a loss in value. Condition of heating, cooling, ventilating, electrical and plumbing equipment is considered to be commensurate with the conditions of the balance of the improvements unless otherwise stated. 13. Neither all nor any of the contents of this report shall be conveyed to the public through advertising, public relations, news, sales or other media, without the written consent and approval of the author, particularly as to valuation conclusions, the identity of the appraiser or firm with which he is connected, or any references to the Appraisal Institute. 14. Zoning ordinances are assumed to be stable. Full conformity is assumed unless otherwise specified in this report. 15. The market conditions used if a prospective value estimate is required for the appraisal are as of the date of inspection, the appraiser is not responsible for unforeseeable events that alter market conditions prior to the effective date of the appraisal. 16. The Dunham Company, Inc. shall not be liable for any compensatory, special or general damages in the event of any inaccuracy in the market value of the property being appraised. Therefore, The Dunham Company, Inc.'s liability for any inaccuracy in the market value of the property being appraised shall be limited to a refund to the Client of all amounts paid by the Client hereunder. The client expressly waives any right to pursue a claim for any damages of any kind beyond a return of all sums paid to The Dunham Company, Inc. HYPOTHETICAL CONDITIONS HYPOTHETICAL CONDITION: that which is contrary to what exists but is supposed for the purpose of analysis. Comment: Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. A hypothetical condition may be used in an assignment only if: ° Use of the hypothetical condition is clearly required for legal purposes, for purposes of reasonable analysis, or for purposes of comparison; e Use of the hypothetical condition results in a credible analysis; and e The appraiser complies with the disclosure requirements set forth in USPAP for hypothetical conditions." 1. There are no hypothetical conditions. 1 USPAP 2008-2009 Edition, The Appraisal Foundation 3EXTRAORDINARY LIMITING ASSUMPTIONS EXTRAORDINARY ASSUMPTION: An assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser's opinions or conclusions. Comment: Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property such as market conditions or trends; or about the integrity of data used in an analysis. An extraordinary assumption may be used in an assignment only if: e [tis required to properly develop credible opinions and conclusions; e The appraiser has a reasonable basis for the extraordinary assumption; e Use of the extraordinary assumption results in a credible analysis; and e The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary assumptions.2 1. There are no extraordinary limiting assumptions. 2 USPAP 2008-2009 Edition, The Appraisal Foundation 4DEFINITIONS APPRAISAL: (noun) the act or process of developing an opinion of value; an opinion of value. (adjective) of or pertaining to appraising and related functions such as appraisal practice or appraisal services.3 Self-Contained Appraisal Report: A written report prepared under Standards Rule 2-2(a) of an appraisal performed under Standard Rule 1. Summary Appraisal Report: A written report prepared under Standards Rule 2-2(b). Restricted Use Appraisal Report: A written report prepared under Standards Rule 2-2(c). DEFINITION OF MARKET VALUE Market value, herein used, is defined as follows: The most probably price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale of a specified date and the passing of title from seller to buyer under conditions whereby: fH Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and acting in what they consider their interests; 3. A reasonable time is allowed for exposure in the open market; 4, Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 4 FEE SIMPLE ESTATE: Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.5 LEASED FEE INTEREST: An ownership interest held by a landlord with the rights of use and occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the lessee are specified by contract terms contained within the lease.® 3 The Appraisal Foundation, Uniform Standards of Professional Appraisal Practice, Appraisal Standards Board, 2006, P.1. 4 Office of the Comptroller of the Currency under 12 CFR, Part 34, Subpart C-Appraisals, 34.42 Definitions [f). 5 Appraisal Institute, The Dictionary of Real Estate Appraisal, 4th ed. (Chicago: Appraisal institute, 2002). 5 bid. 5DEFINITIONS LEASEHOLD INTEREST: The interest held by the lessee (the tenant or renter) through a lease transferring the rights of use and occupancy for a stated term under certain conditions. See also negative leasehold; positive leasehold.” IDENTIFICATION OF CLIENT AND OTHER INTENDED USERS CLIENT: National City Bank OTHER INTENDED USERS: None This report is intended for use only by the named client above and any other named intended users. USE OF THIS REPORT BY OTHERS IS NOT INTENDED BY THE APPRAISER. INTENDED USE OF THE APPRAISAL To provide an independent opinion of the market value of the subject property for the use of asset analysis for the client/named other users. This report is not intended for any other use. OBJECTIVE OF APPRAISAL To provide an opinion of the market value for the fee simple estate for the subject property. PROPERTY INTEREST APPRAISED The property interest considered is the fee simple estate in the subject property. CONDITIONS OF THE REPORT This appraisal is based on the subject's current "as is" condition. ENVIRONMENTAL STATEMENT This report is based on no environmental problems being present on or near the subject property that would have a negative impact on this property. The appraiser is not knowledgeable regarding environmental problems, therefore, if any are discovered to exist, this appraisal is null. The owner reported that a phase II environmental report details no significant site contamination. It also was reported that the client has a copy of this report. AMERICAN DISABILITIES ACT STATEMENT The American Disability Act ("ADA") became effective January 26, 1992. We have not made nor are we qualified to make a specific compliance survey and analysis of the property to determine whether or not it is in conformity with the various detailed requirements of the act. It is possible that a compliance survey of the property could reveal that the improvements may not be in compliance with one or more of the requirements of the act. If so, this could have a negative affect upon the sale of the property. Since we have no direct evidence relating to this issue, we did not consider possible non-compliance with the requirements of the ADA in estimating the value of the subject property. 7 Appraisal Institute, The Dictionary of Real Estate Appraisal, 4th ed. (Chicago: Appraisal Institute, 2002).THE SCOPE OF WORK The scope of work for the appraisal is designed to explain the type and extent of research and analyses in an assignment? that the appraiser conducted in analyzing, collecting, evaluating, confirming and reporting pertinent data found in the appraisal report. The scope of work is described in this section and may be further detailed in other sections of the written appraisal report. The detail and complexity of the appraisal will vary depending on the complexity and value of the real estate. The degree of detail and analysis provided in this report is appropriate per current standards for this real estate product type and the intended use of the client. 1.) TYPE AND EXTENT As part of this appraisal, we made several independent investigations and analyses. However, we collected some data from other sources familiar with necessary procedures applicable in the appraisal process. We believe these sources of information are familiar with the real estate industry and competent in their professional knowledge in the real estate field. The investigation undertaken and the major data sources used in are listed below. AREA AND NEIGHBORHOOD ANALYSIS: The appraiser made a physical inspection of the subject's immediate and surrounding neighborhood. An analysis of the Dayton-Springfield M.S.A. had also been made and updated. The following is a partial list of the sources of information that have been used: Source Publication Ohio Labor Market Information County Profile Metropolitan Profile Labor Force Estimates Labor Market Review Township of Butler: Zoning Ordinance SITE DESCRIPTION AND ANALYSIS: A physical inspection of the subject site was conducted by the appraiser on the reported date of inspection (see appraisal summary page). We obtained the subject's parcel identification map from an internet data service with County Engineer maps. IMPROVEMENTS DESCRIPTION AND ANALYSIS: A physical interior and exterior inspection of the subject's improvements was conducted by the appraiser on the reported date of inspection (see appraisal summary page). The building dimensions were obtained from: appraiser measurement and public records. MARKET DATA: As required for this appraisal we obtained data on the sales and current listings in the subject's neighborhood and surrounding area from our database, an internet based public record search service, on line County record services, MLS / Loop Net services and telephone/internet searches with real estate brokers. These sales were verified by at least one party familiar with the sale and through public records. We conducted, at a minimum, an exterior inspection of each of these sales and personally photographed them if located in the immediate area. RENTAL DATA: As required for this appraisal we obtained rental data from our database, MLS / Loop Net services and telephone/internet searches with real estate brokers. A physical inspection of the exterior was conducted of this data at a minimum if local in nature. 8 The Appraisal Foundation, Uniform Standards of Professional Appraisal Practice, Appraisal Standards Board, 2006, P.4. 7THE SCOPE OF WORK 2.) ANALYSIS USED (VALUATION METHODOLOGY) In the appraisal of real estate there are three traditional approaches to value. These are the cost, sales comparison, and income approaches. The cost approach to value considers the cost of replacing the subject improvements new, less accrued depreciation in all forms plus the current estimated value of the land "as if vacant". The sales comparison approach requires the gathering of data as similar to the subject property as possible and provides an indication of value through the comparative process. Determining the degree of comparability between market data and the subject involves considering their similarity with respect to many valuation factors including physical characteristics such as: size, location, age, quality of construction and condition; and economic factors which include: competitive rental positions, required capital for deferred maintenance, if any existing financing and availability of financing at the time of the appraisal. Adjustments are made for market recognized differences. The adjustment process has the goal of making the available data as comparable as possible to the subject property, and relies upon extracting adjustment factors from the market and also upon the appraiser's trained judgment as to the data's similarity. The income approach reflects current market rents and competitive operating expenses. This approach utilizes a capitalization rate found in the recent/current real estate market which is applied to the subject's estimated net operating income to produce an indicated value for the subject. To value the subject the following approach(s) is used: The value of vacant land is best reflected in the sales comparison approach to value via the principle of substitution if sufficient sales are available. There are adequate sales for this property. The market participant typically looks only to this approach to value. The client as a mortgage lender uses various underwriting techniques to secure their loan, including credit analysis of the applicant, loan to value ratio and a real estate appraisal. The analysis and accuracy pursued reflect the client's use. Considering the client and the intended use, this approach to value will produce a credible appraisal. Therefore, the other two approaches are not used.NEIGHBORHOOD DATA La a I a turin Helonts, 5 SUBJECT 18220 N Dixie Dr Dayton, OH 45414 rah sped 2 ‘and (F) 1088-2007: Microsoft Corpsration andiorits suppliérs AMT nights reserve The subject property is located in a Butler Township commercial neighborhood accessed via North Dixie Drive. The subject's immediate neighborhood area is zoned business. This is an older formerly residential neighborhood that has transformed over the last 10 years to one of northern Dayton’s thriving retail/commercial areas. In the mid to late 90’s rapid commercial development occurred within this area further accelerated by the addition of a new I-75 interchange at Benchwood/Wise Road significantly benefiting the real estate at the southern end of Miller Lane near Benchwood Road. The area remains a thriving retail area despite the closing of some national theme style restaurants. The national, regional and local economies have slipped into recession (December of 2007). The slowing economy along with the closure of the General Motors plant has caused the unemployment rate to rise within the immediate area. These negative economic factors have further strained an already beleaguered area industrial real estate market. These market conditions are causing values to soften and increasing vacancies across a broad spectrum of commercial property types within the Dayton market area.SALES HISTORY In developing a real estate appraisal, an appraiser must consider, analyze and disclose: (a) Any current agreement of sale, option or listing of the property being appraised. (b) Any prior sales of the subject property being appraised that occurred within the following time periods: (i) Three (3) years for 1 - 4 family residential property, and (ii) Three (3) years for all other property types. The appraiser has attempted to obtain specific information on the subject property with the following findings: [X] The subject property has had no change of ownership during the past three-(3) years. [ ] The subject property is currently under contract. Details of the pending purchase are summarized below. [X] The subject property is currently offered for sale. [ ] The subject property has been sold during the past three- (3) year period. Details of the previous sale are disclosed below. [ ] The subject property is proposed construction and is not currently being offered. { ] A previous sales history of the property could not be obtained by the appraiser in the normal course of business. Grantor/Owner of Record: William G. Moritz, Jr. Grantee/Purchase: N.A. Contract Price/Sale Price: N.A. Date of Contract/Sale: N.A. COMMENTS The subject property has not sold in the past 3 years. The owner has had the property listed for sale over the past several years. It reportedly was first listed for $330,000 per acre. According to the owner, there was no interest in the property at that asking price. The asking price has since been lowered to $275,000/acre and, according to the owner, there have been a few “nibbles” at that the lower asking price. 10PROPERTY IDENTIFICATION Property nem PARCEL A Address: 18220 NORTH DIXIE DRIVE City, state, zip code: DAYTON, OH, 45414 MONTGOMERY ‘Appraisal fle #: 204074 OWE — NORTH DIME DRIVE 9.57 ACRES IN SEC. 27, T.3,R.6, TOWNSHIP OF BUTLER APPRAISAL DATA ‘Appraised value: ‘$690,000 ‘Appraisal effective data: (05-May-2009 Owner: WILUAM G. MORITZ, JR. TAXES ‘Tax identification #: 72,73 Current use: GARDEN SUPPLY STORE Tax amount: $11,468.60 Confirmed by: INSPECTION; P. RECORD; OWNER Tax year: 2008 Company: BILL MORITZ ‘Appraised value: $291,440 Deedferms/rights: FEE SIMPLE; CONVENTIONAL Financing source: NATIONAL CITY BANK IMPROVEMENT DESCRIPTION SITE DESCRIPTION Land area (acres): 357 Land area (sf): 155,509 Utilities: WATER, SEWER, GAS, ELECTRIC Location in block: INTERIOR Land topogrephy: LEVEL Zoning: LC-S2, LOCALICOMM DS Land dimensions: L-SHAPE # of front fect: 320 INCOME AND EXPENSE DATA. DATA N/A COMMENTS ‘The subject is 3.57 acres of commercially zoned land backing to the York Commons commercial development along Miller Lane. The site has all public utilities. It is accessed by a 4 lane road with a center tum lane. The site is improved with a 5,144 SF concrete block warehouse building and a 2,500 SF retail/warehouse building. In addition, there is approximately 20,000 SF of asphlat paving and 14,000 SF of concrete walkways and pads for the several greenhouses located on the site. There is a considerable amount of site debris. 11SITE DESCRIPTION — PARCEL A The site description is found opposite this page on the subject summary sheet. The site area is not in a recognized FEMA flood area. The FEMA reference map used is detailed on page 1 of this report. No significant adverse conditions were observed or reported to the appraiser during the inspection. The subject is an L-shaped site with 320+- feet of frontage along heavily traveled North Dixie Drive. The north side of the site has 264+- feet of depth. The south side has 594+- feet of depth. The average depth is 429+- feet. The front to depth ratio is 0.75 and considered above average for commercial development. CONCLUSION The subject site is an average size L-shaped lot with high traffic exposure off a major highway suitable for retail space development. IMPROVEMENT DESCRIPTION The subject is improved with an older block office/warehouse building and a metal retail/warehouse building. On the following pages is a sketch of the main improvement(s). In addition there is approximately 22,420 SF of asphalt paving and 14,114 SF of concrete. These improvements will need to be razed prior to any commercial development. This will make the subject competitive within its market area considering that all the sales and most of the prime current listings were or are pad/shovel ready sites. The Marshall and Swift Valuation Handbook will be utilized to estimate the razing of the subject improvements. Also, the site debris in the form of junk cars, wood, trees and equipment/materials needs to be cleared from the site. The chart below details the estimated razing and site clearing cost of the subject’s improvements. NGe os Old block officeAwarehouse building Metal retail/warehouse building [Asphalt paving Concrete $11,210 $28,228 EEARING = a Item : SIAC Total Removal of site debris [3.6 [$1,000.00 $3,570 [Total $76,709 Based on this data, the estimated cost to raze the subject improvements and clear the site is say $80,000 (rounded). 12SITE MAP FIBIA, I-VI 8 275.20! GOCE 2700's a 6 tte) AERIAL MAP ‘SUBJECT. ae 7 13BUILDING SKETCH Parking lot aunty foe ttea™ ‘Seale: AREA CALCULATIONS SUMMARY |) BUILDING AREA BREAKDOWN Code ‘Description Net Size Net Totals «| Gai” First Floor Sidd.o B1ae.0 OTH’. | Parking Lot 12420:0 12420.0 Net BUILDING Area (rourides) 5144 (rounded)BUILDING SKETCH {3 | concrete pad Concrete pad 50" in Warehouse ig Concrete pad Retail service B 48 space asphalt parking lot Scale: Sey oa code ‘GBA Description ori Conerete pad Net BUILDING Area AREA CALCULATIONS SUMMARY Net Size 7 Net Totals | 3750.0 144.0 (rounded) “BUILDING AREA BREAKDOWN Breakcown ‘Subtotals Ratail gales/service 50.0 x. 50.0 2500.0 Warehouse 25.0 x 1250.0 50.0 (rounded) 3750 2 items,inine DANET O1Ra FLOOD MAP 16 Flood Hazards Map Map Humber 39113C0152E Effective Date January 6, 2005 Flood Legend High flood risk [_] moderate food risk [EJ] Low ttood riteSUBJECT PHOTOGRAPHS FRONT REAR 17SUBJECT PHOTOGRAPHS STREET SCENE STREET SCENE 18PROPERTY IDENTIFICATION APPRAISAL Property name: PARCEL B E1102 Address: 18220 NORTH DIXIE DRIVE City, state, zip code: DAYTON, OH, 45414 County: MONTGOMERY ‘Appraisal file #: 9204074 Stroot frontage: (OWE — NORTH DOME DRIVE Legal description: 5.05 ACRES IN SEC. 27, 7.9, R.6, TOWNSHIP OF BUTLER APPRAISAL DATA ‘Appraised val $1,090,000 Appraisal effective date: 05-May-2009 Owner: WILLIAM G. MORITZ, JR. TAXES “Tax identification #: — Current use: VACANT Tax amount: $6,499.34 Confirmed by: INSPECTION; P. RECORD; OWNER Tax year: 2008 Company: BILL MORITZ ‘Appraised value: $204,510 Deodytorms/tights: FEE SIMPLE; CONVENTIONAL Financing source: NATIONAL CITY BANK, IMPROVEMENT DESCRIPTION SITE DESCRIPTION Land area (acres) 5.05 Land area (=f): 220,087 Utilities: WATER, SEWER, GAS, ELECTRIC Location in block: INTERIOR Land topography: LEVEL Zoning: LG~S2, LOCALICOMM DS Land dimensions: L-SHAPE # of front feet: 370 INCOME AND EXPENSE DATA DATANIA COMMENTS ‘The subject is 5.05 acres of commercially zoned land backing to the York Commons commercial development along Miller Lane. The site has all public utilities. It is accessed by a 4 lane road with a center turn fane. ‘The site is improved with a 1,590 SF single family type structure and an old 1,740 SF barn. 19SITE DESCRIPTION — PARCEL B The site description is found opposite this page on the subject summary sheet. The site area is not in a recognized FEMA flood area. The FEMA reference map used is detailed on page 1 of this report. No significant adverse conditions were observed or reported to the appraiser during the inspection. The subject is a rectangular site with 370+- feet of frontage along heavily traveled North Dixie Drive. The depth is 594+- feet. The front to depth ratio is 0.62 and considered above average for commercial development. CONCLUSION The subject site is an average size rectangular lot with high traffic exposure off a major highway suitable for retail space development. IMPROVEMENT DESCRIPTION The subject is improved with an single family house and barn. On the following pages is a sketch of the main improvement(s). In addition there is approximately 36,000 SF of asphalt paving. These improvements will need to be razed prior to any commercial development. This will make the subject competitive within its market area considering that all the sales and most of the prime current listings were or are pad/shovel ready sites. The Marshall and Swift Valuation Handbook will be utilized to estimate the razing of the subject improvements. Also, the site debris in the form of junk wood, trees and equipment/materials needs to be cleared from the site. The chart below details the estimated razing and site clearing cost of the subject's improvements. enon vltemy i ee SE _CostiSF:}: Total: | ingle famliy 1,590 $3.00 $4,770 arn 1,740 3.00 5, halt pavi 36,000 $0.50 $18,000 ee Ttemie es acre: SIAC. Total emoval of site debris 5.1 $500.00 $2,525, otal 515 Based on this data, the estimated cost to raze the subject improvements and clear the site is say $30,000 (rounded). 20SITE MAP wT 8 Zoe" ie 244° (PACT YC iA GA, s FS" BOP 29°E Kael veaie 7 pal ieee tcc eer ee i ' 4004, PAEIA, d-V-t58& 755-46 F44g) £0 Ha, F “O37 ta D Marrs vig) LA OVSED 370.88")AERIAL VIEW 2.68 ACRE SITE WITH NEW HOTEL | UNDER 22BUILDING SKETCH 150’ x 240! asphalt parking lot hype Seale; 1248 AREA, CALCULATIONS. SUMMARY i BUILDING AREA BREAKDOWN Description Net Size : Breakdown ‘Subtotals Barh 3710.0 Barn House 1590.0 30,0 x 58.0 House 38:0 x 27.0 izi0 x. a7l0 Net BUILDING Area: (rounded) (rounded),FLOOD MAP FLOODSCAPE Flood Hazards Map Map Number 39113C01 $2 i Effective Date January 8, 2005 Flood Legend High flood risk [_] Moderate flood risk [J Low too risk 24SUBJECT PHOTOGRAPHS FRONT REAR 25SUBJECT PHOTOGRAPHS STREET SCENE STREET SCENE 26EXPOSURE TIME 1. The time a property remains on the market. 2. The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based on an analysis of past events assuming a competitive and open market. Exposure time is always presumed to occur prior to the effective date of the appraisal. The overall concept of reasonable exposure encompasses not only adequate, sufficient and reasonable time but also adequate, sufficient and reasonable effort. Exposure time is different for various types of real estate and value ranges and under various market conditions. (Appraisal Standards Board of The Appraisal Foundation, Statement on Appraisal Standards No. 6, "Reasonable Exposure Time in Real Property and Personal Property Market Value Opinions") Market value estimates imply that an adequate marketing effort and reasonable time for exposure occurred prior to the effective date of the appraisal. In the case of disposition value, the time frame allowed for marketing the property rights is somewhat limited, but the marketing effort is orderly and adequate. With liquidation value, the time frame for marketing the property tights is so severely limited that an adequate marketing program cannot be implemented. (The Report of the Appraisal Institute Special Task Force on Value Definitions qualifies exposure time in terms of the three above-mentioned values.) See also marketing time.9 The exposure time necessary to sell the subject depends upon numerous variables. These include, but are not limited to the condition of the property, prevailing financing, availability of financing, location, reasonableness of asking price and willingness to negotiate price and terms. For this discussion it will be assumed that the property will be sold for market value as defined in this appraisal report with a reasonable asking price. The estimate of exposure time based on sale histories and Realtor® opinions is from 6 months to 18 months. MARKETING TIME 1. The time it takes an interest in real property to sell on the market sub-sequent to the date of an appraisal. 2. Reasonable marketing time is an estimate of the amount of time it might take to sell an interest in real property at its estimated market value during the period immediately after the effective date of the appraisal; the anticipated time required to expose the property to a pool of prospective purchasers and to allow appropriate time for negotiation, the exercise of due diligence, and the consummation of a sale at a price supportable by concurrent market conditions. Marketing time differs from exposure time, which is always presumed to precede the effective date of the appraisal. (Advisory Opinion 7 of the Appraisal Standards Board of The Appraisal Foundation and Statement on Appraisal Standards No. 6, "Reasonable Exposure Time in Real Property and Personal Property Market Value Opinions" address the determination of reasonable exposure and marketing time.)"° The estimated market time based on sale histories, Realtor® opinions and future estimated market conditions is from 12 months to 36 months. 9 Appraisal Institute, The Dictionary of Real Estate Appraisal, 4th ed. (Chicago: Appraisal Institute, 2002). 10 hi Ibid. 27TYPICAL BUYER /USER The typical buyer of this real estate type would be a real estate developer. HIGHEST AND BEST USE DEFINITION: Highest and best use is the reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible and that results in the highest value. The zoning for the subject site is LC-S2, commercial service district. The zoning appears to be stable. The zoning accommodates a wide variety of commercial uses. The site is physically capable of supporting these legal uses. Currently, mortgage interest rates are reasonable to support new construction costs. However, demand for speculative building is limited. Therefore, the highest and best use as vacant would be an interim use to hold until a pre-lease is negotiated or a sale to an owner occupant. The highest and best use as improved is not its current use. The subject existing structures do not contribute to the highest and best use of the site. Many of the older area structures have been razed and converted to “big-box” retail, hotels and restaurant uses. The most recent development is of a Residence Inn hotel, which abuts to the subject's eastern property line. In a review of area sales data, it is estimated that the value of the existing structures on Parcel A and Parcel B do not produce the highest value, as improvéd. Parcel A: We reviewed area sales for the similar industrial/retail properties, which indicated a range of $29 to $46 with a mean of $35.76 for similar industrial properties with retail components. This would indicate a value for the subject's 8,994 SF of industrial retail buildings of say $320,000 (rounded). Parcel B: We reviewed area sales for the mixed-use single family/retail type properties, which indicated a range of $34 to $52 with a mean of $42.60 for similar single family properties with retail components. This would indicate a value for the subject’s 3,330 SF of mixed-use single family/barn retail building of say $145,000 (rounded). Therefore, it is estimated that a higher value would result from razing the existing structures and developing the site with modern retail use consistent with the nearby new commercial retail development. 28HHE DUN [Sale number. He I SUBJECT 4 I "ARCEL A LE #204074 2 indax # ‘9508 IPARCELA |NORTH DDXE DRIVE DAYTON, OH 45414 "7908 IMCDONALD's LAND lae11 YORK COMMONS BOUL JDAYTON, OH 45414 7098) FIFTH THIRD BANK LAND 1.625 ACRES NORTH ODUE DI DAYTON, OH 45414 RESIDENCE INN LAND YORK GENTER DRIVE DAYTON, OH 45614 JHARSON INVESTMENT LAND. MAXTON ROAD JDAYTON, OF 45414 [Sale prico ‘05—May—09| 357 165,500] 20 (09-Dec-2005 1.50] 65,122 285} NIA 15-May-2008 1.63 70,785 258] $450,000) 17-Jul-2008] 41 200,724) $1,080,000} (07—May-2006| 8.282] 348,069] $1,800,000| [zoning Specific use [Topography terrain Location in block tities |Floodptain influence Dimensions Site improvements/cover [COMMERCIAL Leven, INTERIOR woNe:x L-SHAPE Lo=s2, LOCALICOMM DS. WATER, SEWER, GAS, ELECTH CORNER WiLIGHT |WATER, SEWER, GAS, ELECT INONE:x 258 x-245, RECTANGULAR [B-3; COMM. OIST. COMMERCIAL uve, INTERIOR |WATER, SEWER, GAS, ELECTH [COMMERCIAL COMMERCIAL LEVEL. CORNER — NO.LIGHT |WATER, SEWER, GAS, ELECTH NONE: RECTANGULAR COMMERCIAL, [COMMERCIAL Lever. INTERIOR WATER, SEWER, GAS, ELECT NONE REGULAR Bicenemss a Ea g308,009) PROPERTY RIGHTS | $301,005) szstar semis Adjusted price por acrs pee TERMS: [CONDITIONS OF SALE \ijustad price| $301,009) a a =10.0 $183, IME/MAR justed price per acre {KET CONDITION NEGATIVE, 10. $270,909 =10.00%| $249,231) Seon $222,655) smal LOCATION Percentage adjustment Dollar adjustment SIZE Percentage adjustment Dollar adjustment IPHYSICAL ATTRIBUTES Percentage adjustment Dollar adjustment |ACCESS/VISIBILITY Percentage adjustment Dollar adjustment ZONING Percentage adjustment Dollar adjustment ‘BUTLER TWP. 3.57 ACRES: AVG+/GOOD COMMERCIAL 1.0 ACRES (627,099) Leven, ($27,080) COMPARABLE [BUTLER TWP. 1.63 ACRES JAve+iG000 COMPARABLE |4.61 ACRES Jaoop/eoon -5%| (s11,133] COMPARABLE [BUTLER TWP INFERIOR 10% $10,574] 82 ACRES $18,374 lave+a00D JcOMPARABLE Gross percentage adjustment ercentage adjustment. a [ Gross dollar adjustment | onl ‘$24, ‘Net dollar adjustment ($54,181 ($24,923) GDS ae Tun se ioe 29THE, BUN N a At COMER a — [Sale number IL ‘SUBJECT c 4 2 ae 3 index # 7am 7a08 Name pancete wcponALs’s LaNo IrFTHTHORD BANKLAND — |RECIDENCEINN LAND | HARSON INVESTHENT LAND Address 20 NORTH Dyce Drive —_fa411 YORK COMMON BOULE 1.625 ACRES NORTH DIXIE DAYORK ENTER DRIVE | MAXTON ROND city, State, Zip Code__|pavTon, on 45414 DAYTON, OH 45414 DAYTON, OF 45414 DAYTON, OH 45414 DAYTON, OF 45414 Sele dete 05-May-09 @9-Deo 2005 15-May-2008 17—Jul2008| (O7-May2008 Land area (acres) S05 1.50] 1.99] 461 aa] Land area (el) 220,067 5,122] 70,705 200.724| 248,000] # of front feet s70] 2a5| 250 o oo [Sale prico NA ‘$450,000 $450,000) $31,090,000] $1,200,000] Zoning 1Lc=82, Locajcomm Ds [B-3; COMM. DIET. [5-3; comm, DIST. Jcommenciat [coMmenciAL Specific use | feommencia lcommenciat lconmERCAL lcommenctal lcoMMERCIAL Topographynerrain LeveL LEVEL ever peven LEVEL Location in block INTERIOR CORNER W/IGHT Interior IconNer ~ No LIGHT Wrenn tities |WATER, SEWER, GAS, ELECTH WATER, SEWER, GAS, ELECT WATER, SEWER, GAS, ELECTAWATER, SEWER, GAS, ELECTH WATER, SEWER, GAS, ELEOTH Floodplain irftuence | wone;x INONE:x owe;x None:x Nowe:x Dimensions L-sHarE J265x245, RECTANGULAR |250%228, RECTANGULAR |RECTANGULAR IaREGULAR Site imp foover. pretperene oe ce po |e ST [PROPERTY RIGHTS a = = Sa re pra J sso.o sera cul sau FINANCING TERMS l cl J | | Adjusted price per acre $301 $276,923) $234,375) $204,151] [CONDITIONS OF SALE IME/MARKET CONDITIONNEGATIVE =a] =10. | =S00x | Adit ic acre. $249,231 $189,736) LOCATION | BUTLER TAP. BUTLER Twe. jauTLER TWP. jeuTER Tw. [BUTLER TWP./INFERIOR Percentage adjust mont 10% Dollar adjustment $18,374) SIZE 5.05 ACRES }.SOACRES 1.63 ACRES [4.01 ACRES b.02 ACRES Percentage adjustment 10% -10% 10% Dollar adjustment (627,090 ($24,023} $18,974] PHYSICAL ATTRIBUTES LEVEL Lever. Leven. LeveL Leven. Percentage adjustment Dollar adjustment JACCESSMISIBILITY —- AVG+/GOOD lExcyaoon lava+yGoon goon/coo0 Jave+iac00 Percentage adjustment —10% 5%] Dollar adjustment ($27,090} ($14,199} ZONING COMMERCIAL, |COMPARABLE COMPARABLE COMPARABLE COMPARABLE Percentage adjustment Dollar adjustment ‘Gross percentage adjustment | on ‘oa = aa Notporcontage adjustmont =20% =103 =5x) Gross dollar adjustment | ssa] $245 sta er ($54,161 (24 sr $36,747 Net dollar adjustment ee ee average (Means 30COMPARABLE IMPROVED SALES PHOTOGRAPHS COMPARABLE #1 COMPARABLE #2 COMPARABLE #3 COMPARABLE #4 31COMPARABLE SALES MAP #4 Dayton, OH 45414 48220 N Dixie Dr Dayton, OH 45414 1.625 ACN. Dixie Dayton, OH 45414 Drury inn and Suite 8.817 AC Maxton Rd Comfort i faNO" Inn Dayonggy @ | Fetreld fore eo al | Lone Star (1 eo ind Saloon ‘Joe's Crab hack “ of Ouiback -{ | Steakhouse 3 3 ive Carden aie cee i i ieee fayon-Nort . S Residence Inn-Dayton ern ‘Courtyaid-Daytor|| ie met i Homestretch-RE-———] Vandalia 32RECONCILIATION & FINAL VALUE CONCLUSION The value indicated by application of each of the utilized approaches is: PARCEL A: Cost Approach Sales Comparison Approach Income Approach NLA. $690,000 NLA. PARCEL B: Cost Approach Sales Comparison Approach. Income Approach NA. $1,060,000 NLA. RECONCILIATION CONSIDERATIONS: Reconciling the indicated values into a final value conclusion necessitates focusing on the following critical factors: 1. Which of the approaches is based on the greatest amount of reliable data; 2. In which approach are the attitudes of typical buyers and sellers most faithfully represented; 3. In consideration of the objective of the appraisal and the present use of the subject property, which approach is the most pertinent. RECONCILIATION DISCUSSION: Four comparables were selected. All of them are from the subject's immediate market area. One of them (C#4) is an offering sale. The noticeable trend of the unadjusted prices per acre has been downward, which appears to be trending in concert with declining market conditions. After adjustments to the sales for condition of sale, time/market conditions, sizes, and access/visibility they indicated an adjusted price per acre of $211,000 to $224,000. The opinion of value from these sales is favored toward the lower end of the range at say $215,000 acre primarily due to recessionary conditions causing weakening demand for retail development. NOTE: The values for parcel A and B include downward adjustments for the estimated cost raze existing improvements and clearing of their respective sites of $80,000 and $30,000, respectively. CONCLUSION: As a result of my investigation, and based upon the foregoing data and analysis, it is my finding that the market value opinion of the property rights herein appraised, of the subject property, as of May 5, 2009, and subject to the underlying assumptions and limiting conditions and certifications in the sum of: PARCEL A- $690,000 PARCEL B - $1,060,000 SUBJECT TO EXPOSURE TIME AS ESTIMATED HYPOTHETICAL CONDITIONS, EXTRAORDINARY LIMITING CONDITIONS 33DISPOSITION VALUE eee ee = SALES OF DISTRESSED PROPERTIES: Property type [City Date _|Vvalue [vaiue: _|Distressed |% Decrease |Comments: established by: [sale price: [established value: Subdivision [Kettering | Jul-07|Appraisal_[ $85,000 | $68,000 | 20.00% _ [smal resent subdivision, forced sale by lender. Retail Moraine | Feb-08|Appraisal_ [$275,000| $182,000 | 33.82% _ [pisiessed retal property foreclosed on by Its lender industrial [Dayton | Dec-07|Market sale [$256,000] $195,000 | 23.83% _ [Property purchased at Sher sale by its fonder fr S255 Jotice Kettering | Dec-04|Appraisal_ [$184,000] $146,000 | 20.65% _ | auick saleby bank. Only 1 month of marketing time. findustial [Franklin | Jan-08|Appraisal [$235,000 | $210,000] 10.64% _ [co.shut down oporations locking for uick sale of vacant bid, [Special Xenia__| Dec-07|Appraisal [$645,000] $550,000 | 14.73% _ [Forced eal by lender. Listed for $1,100,000, Appraised for $645K industrial [Moraine | Dec-06|Appraisal_ [$335,000] $279,000 | 16.72% _ [Forced saleby lender. Property was neglected and vacant. office Hamitton |" JuL07| Market sale | $360,000 | $270,000 | 26.00% | Lender ol for $270K. © mos tater etl for ighr pie $360k industrial__|Dayton_|_Sep-08[BPO $250,000 | $207,500 | 17.00% _ | Forced saleby endor, Liste at $275,000. Property was vacant. [Analysis Range: 11% to 34% [Mean: 20.26% DEFINITION: LIQUIDATION VALUE The most probable price that a specified interest in real property is likely to bring under all of the following conditions: 4.Consummation of a sale will occur within a severely limited future marketing period specified by the client. 2.The actual market conditions currently prevailing are those to which the appraised property interest is subject. 3. The buyer is acting prudently and knowledgeably. 4. The seller is under extreme compulsion to sell. 5. The buyer is typically motivated. 6. The buyer is acting in what he or she considers his or her best interest. 7. A limited marketing effort and time will be allowed for the completion of a sale. 8. Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto. 9. The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. This definition can be modified to provide for valuation with specified financing terms. See also disposition value; distress sale; forced price; market value." Market data indicates that properties sold within shorter than typical marketing times or distressed properties often sell for less than market value. The liquidation (disposition) value is based on the subject having to be sold in a shor