09-28-15 Agenda, Packet & Committee Meeting Notice

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DIRECT SALES COMPARSION APPROACH(cont.) COMPARABLE NO.2 1541 Prairie Avenue South Bend, IN This is a former German Club that was located on the southwest side of the City of South Bend. This is a brick, 2-story building that was, according to the Assessor's Office, built in 1910. The building had a 4 lane bowling alley,which still operative at the time of the sale. It also had a newer heating system, which included a boiler. The building contained a total of 15,970 sq. ft, and it is presumed based on sketchy information that the condition was substantially inferior to the subject property. The building sold on 02/24/2011 for$75,000. This would equate to a sales price of$4.70 per sq. ft.of land and building merged. It is recognized that this Comparable is 4 years old. However, it is the only sale I found of a private club building that contained bowling lanes, and was located west of the Central Business District of South Bend. It is presumed that this club also experienced a change in the ethnic makeup of the neighborhood such as that being experienced by the PNA. This obviously would be reflective in the sales price. COMPARABLE NO. 3 1502 Dunham South Bend,IN - This is a bar located on the west side of the City of South Bend in relatively close proximity to the subject property. This sale does not have a bowling alley,but it is similar in respect that it was a neighborhood tavern under the same general economic influences of the subject property. This property sold for $155,000 on 02/08/2013. However, the details of the sale are of particular significance. The bar had been refurbished in 2010 including bar refinishing, new cabinets, new flooring, restrooms were remodeled, and new lighting installed. The sale itself was a"turn-key" operation which included a 3-way liquor license with carry-out, new bar stools and furnishings. In addition,there was a third floor apartment on the upper level. There was an adjoining vacant lot and a one bedroom house included. In order to ascertain the value of the building only, it is necessary to abstract these items from the sale. After several inquiries, I have concluded that the 3-way liquor license plus the furnishings in the building to have an indicated value of$70,000. I have estimated the extra house at$40,000 and the vacant lot at$5,000. All these extra items would have an 30