2101Aurelius-DelhiTwp.pdf

Cole Eric Frageman Petitioner V Township Of Delhi Charter Respondent · 26-000575-TT

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1 

Vantage Appraisal Services LLC 

Sharon Bollinger 

Certified General Real Estate Appraiser 

sbollinger@charter.net 

(810) 938-5161

Restricted Real Estate Appraisal Report 

2101 Aurelius Road 

Holt, Delhi Township, Michigan 48842 

Front View of Subject Property 

Client: 

Credit Union One 

400 E Nine Mile Road 

Ferndale, MI 48220 

Report Date 

January 15, 2026 

Effective Date 

January 9, 2026 

Reviewed by 

on 1/16/2026

2 

 

Vantage Appraisal Services LLC 

Sharon Bollinger 

Certified General Real Estate Appraiser 

 

 

January 15, 2026 

 

Ms. Lisa Lobb 

Credit Union One 

400 E Nine Mile Road 

Ferndale, MI 48220 

 

Re: 

Real Estate Appraisal Report 

 

2101 Aurelius Road 

 

Holt, Delhi Township, Michigan 48842 

 

Dear Ms. Lobb: 

 

 

In response to your request, I am submitting a real estate appraisal report for the above-mentioned property. 

The subject of this restricted appraisal assignment is an office property containing ±12,360 sq. ft. GBA 

located in Holt, Delhi Township, Michigan. We are appraising the leased fee interest. The purpose of this 

appraisal is to estimate the market value as defined in this report in accordance with the enclosed 

Certification, Assumptions and Limiting Conditions. 

 

The intended use of this appraisal report is to assist the client in evaluating the subject property’s market 

value. This letter is accompanied by a real estate appraisal report in summary format. It has been prepared 

in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP) and the Financial 

Institution Reform & Recovery Enforcement Act (FIRREA). This report is for the exclusive benefit of Credit 

Union One and may not be used or relied upon by any other party, in part or in whole. 

 

 

The subject was inspected on January 9, 2026. This appraiser inspected the property, then performed 

necessary research and analysis to complete the attached appraisal report. Based on the facts and findings 

contained within this appraisal report, it is my opinion that the market value of the subject property as of 

January 9, 2026 is: 

 

$730,000 

Seven Hundred Thirty Thousand Dollars 

As Is Leased Fee 

1/9/2026 

 

Please review the entire appraisal report as support to this value conclusion. 

 

Sincerely, 

 

Sharon Bollinger 

Certified General Real Estate Appraiser 

Permanent ID # 1205073587

3 

 

Vantage Appraisal Services LLC 

Sharon Bollinger 

Certified General Real Estate Appraiser 

 

Table of Contents 

Section 

 

Topic 

Page 

Introduction 

Letter of Transmittal 

2 

 

Certification 

4 

 

Summary of Important Facts & Conclusions 

5 

 

 

 

Scope 

Intended Use and User 

7 

 

Property Rights Appraised 

7 

 

Definition of Market Value 

7 

 

Scope of Work 

7 

 

 

 

Property Information 

Legal Description 

8 

 

Property History & Ownership 

8 

 

Occupancy 

9 

 

Furniture, Fixtures & Equipment 

9 

 

Property Taxes 

10 

 

Zoning 

10 

 

Site Description 

11 

 

Building Description 

13 

 

 

 

Valuation 

Highest & Best Use 

18 

 

Cost Approach 

20 

 

Income Approach 

21 

 

Sales Comparison Approach 

28 

 

As Is Value 

33 

 

 

 

Conclusion 

Reconciliation 

34 

 

Exposure Period 

35 

 

General Assumptions & Limiting Conditions 

36 

 

 

 

Addendum 

Subject Photographs 

38 

 

Zoning Ordinance 

47 

 

Property Information 

52 

 

Appraisal Contract 

56 

 

Definitions 

57 

 

Appraiser Qualifications 

60 

 

 

 

 

 

 

2101Aurelius-DelhiTwp 

File #3771

4 

 

Vantage Appraisal Services LLC 

Sharon Bollinger 

Certified General Real Estate Appraiser 

 

Certification 

I certify that, to the best of my knowledge and belief: 

 

The statements of fact contained in this report are true and correct. 

 

The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting 

conditions, and are personal, impartial, and unbiased professional analyses, opinions, and conclusions. 

 

I have no present or prospective interest in the property that is the subject of this report and have no personal 

interest or bias with respect to the parties involved. 

 

I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject 

of this report within the three-year period immediately preceding acceptance of this assignment. 

 

I have no bias with respect to the property that is the subject of this report or to the parties involved with this 

assignment. 

 

My engagement in this assignment was not contingent upon developing or reporting a predetermined result. 

 

My compensation for completing this assignment is not contingent upon the development or reporting of a 

predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the 

attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of 

this appraisal. 

 

My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformance 

with the Uniform Standards of Professional Appraisal Practice. 

 

I have made a personal inspection of the property that is the subject of this report. 

 

No one provided significant property appraisal assistance to the person signing this certification. 

 

The reported analyses, opinions and conclusions were developed, and this report has been prepared, in 

conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the 

Appraisal Institute. 

 

This use of this report is subject to the requirements of the Appraisal Institute relating to review by duly 

authorized representatives. 

 

As of the date of this report, I, Sharon M. Bollinger, have completed the Standards and Ethics Education 

Requirements for Practicing Affiliates of the Appraisal Institute. 

 

Appraisers are required to be licensed and are regulated by the Michigan Department of Licensing & Regulatory 

Affairs, PO Box 30018, Lansing, Michigan 48909. Sharon Bollinger is currently and properly licensed. 

 

_______________________________________ 

Sharon Bollinger 

State Certified General Real Estate Appraiser 

Permanent ID # 1205073587 

 

 

13308 Enid Boulevard 

(810) 938-5161 

Fenton, MI 48430 

sbollinger@charter.net

5 

 

Vantage Appraisal Services LLC 

Sharon Bollinger 

Certified General Real Estate Appraiser 

 

Summary of Important Facts & Conclusions 

 

Type of Property 

Office 

 

 

Property Location 

2101 Aurelius Road, Holt, Delhi Township, Ingham County, Michigan 48842 

 

 

Property ID # 

33-25-05-15-479-009 

 

 

Record Owner 

Holt Business Center Inc 

 

 

Prospective Purchaser 

Cole Frageman 

 

 

Occupant 

Total Health Dentistry, Hubbell, Roth & Clark, 

Elizabeth Howard and Tracey Hernley 

 

 

Building Size 

±12,360 sq. ft. GBA 

 

 

Land Size 

±1.209 acres 

 

 

Client 

Credit Union One 

400 E Nine Mile Road 

Ferndale, MI 48220 

 

 

Intended Use 

The intended use of this appraisal is to provide an analysis of data and an 

estimate of value to be used by the client for possible mortgage financing. This 

appraisal assignment was developed consistent with the scope specified by 

Credit Union One. 

 

 

Intended User 

The intended user of this report is identified as the above stated client which is 

Credit Union One, its successors or assigns, and any participating financial 

institution. 

 

 

Interest Appraised 

Leased Fee 

 

 

Zoning 

TC Town Cetner District 

 

 

Effective Date 

January 9, 2026 

 

 

Prospective Date 

February 1, 2027 

 

 

Highest & Best Use 

 As-Vacant 

 As-Improved 

 

General Commercial 

Office 

 

 

Tax Information 

SEV: $423,700 

Taxable Value: $366,277

6 

 

Summary of Important Facts & Conclusions 

 

 

Exposure Time 

9 – 12 Months 

 

Hypothetical Conditions 

 

No hypothetical conditions apply. 

 

Extraordinary Assumptions 

This appraisal is completed with the extraordinary assumption that the 

leases are enforceable with the stated contract rents, as opposed to the 

rent roll provided by the owner. It is further assumed that Total Health 

Dentistry will remain as a tenant through the end of their leases in 2030. 

The BOMA factor to calculate rentable area is 1.128. It is also assumed 

that proper marketing efforts are made with a professional broker to 

achieve market occupancy levels in a timely manner to achieve market 

stabilization in 1 year. 

 

Personal Property 

 

 

No personal property is included in this appraisal report. 

 

 

 

Estimated Values 

Cost Approach 

 

 

N/A 

Income Approach 

 

 

As Stabilized Leased Fee 

2/1/2027 

$765,000 

Sales Comparison Approach 

As Stabilized Leased Fee 

2/1/2027 

$800,000 

 

 

 

 

 

 

As Is Leased Fee 

 

1/9/2026 

$730,000 

 

 

 

 

 

Reconciled Values 

 

As Is Leased Fee 

 

1/9/2026 

$730,000 

 

 

 

 

 

 

As Stabilized Leased Fee 

2/1/2027 

$765,000

7 

 

Intended Use & User 

The intended use of this appraisal is to provide an analysis of data and an estimate of value to be used by the 

client for use as collateral in a mortgage loan transaction. This appraisal assignment was developed 

consistent with the scope specified by Credit Union One. The intended user of this report is Credit Union 

One, its successors or assigns, and any participating financial institution. 

 

 

Property Rights Appraised 

The interest appraised in the subject property is the leased fee interest. Leased Fee Interest is defined in the 

Dictionary of Real Estate Appraisal, Fifth Edition as: 

 

 

A freehold (ownership interest) where the possessory interest has been granted to another party by 

creation of a contractual landlord-tenant relationship (ie. a lease). 

 

 

Market Value 

 

The most probable price that 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 as of a specified 

date and the passing of title from seller to buyer under conditions whereby: 

 

a. buyer and seller are typically motivated; 

b. both parties are well-informed or well advised, and acting in what they consider their best 

interests; 

c. a reasonable time is allowed for exposure in the open market; 

d. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable 

thereto; and 

e. 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. 

 

Source: Dictionary of Real Estate Appraisal, Fifth Edition 

 

 

Scope of Work 

The appraiser made a walk-through, visual inspection of the interior (limited) and exterior (not roof) of the 

subject. In January of 2026, this appraiser was contacted by Ms. Lisa Lobb of Credit Union One who 

requested an as-is leased fee value on the subject property for a possible mortgage loan with a restricted 

appraisal report. Restricted appraisals provide summary data while all research & analysis is retained in the 

appraisal workfile. She indicated the contact person as Mr. Cole Frageman. 

 

Mr. Frageman referred this appraiser to Jim Vlahakis of NAI who then referred to Bob Reid. Mr. Reid 

arranged for an inspection of the property with an owner’s representative. The credit union provided copies of 

the leases, a rent roll, income & expense summaries as well as a list of capital improvements. Other building 

& site data as well as zoning and taxes were provided by Delhi Township and Ingham County. The data 

summarized herein is considered sufficient for the purposes of this analysis. 

 

Upon inspection, the property is 25% vacant. This is a higher-than-market vacancy level; therefore, we 

develop the income and sales comparison approaches to value the as-stabilized condition. The as-is value is 

derived at the end of this report. 

 

 

 

 

 

 

 

 

After analyzing the subject’s physical and financial features, the appraiser researched municipal files for 

subject and comparable data; researched a variety of public and private sources for comparable data 

regarding improved office building sales, office rent data and occupancy rates; then analyzed the data.

8 

 

In this analysis, I use the income and sales comparison approaches to develop an opinion of the as-stabilized 

value. The subject’s building was originally constructed in 1978 and is 48 years old. Estimating depreciation 

in older structures becomes unreliable rendering the cost approach not applicable in this appraisal 

assignment. 

 

The income approach will be used to determine a value for the building with underlying land. The subject 

property is 75% leased to multiple tenants. We will analyze the existing leases for rental rates, terms and 

conditions. Then, we will conduct a market rent investigation to determine if contract rent is within market, as 

well as stabilized vacancy levels. Upcoming expenses will be estimated using expense history, expense 

comparables and this appraiser’s experience with similar properties 

 

The subject’s leases vary in rent and term, with most having rent escalations and renewal options. Yield 

capitalization will be used to value the subject’s leased fee interest in order to consider rent escalations in 

future income. A discounted cash flow analysis will be developed to project annual cash flows over a holding 

period. The present value of the income stream will be added to the reversionary value to determine a value 

of the as-stabilized leased fee interest in the subject. 

 

The sales comparison approach will also be used to value the existing building and its underlying land. 

Recent sales of similar properties will be researched in the market. The most similar sales will be further 

compared to the subject and appropriate adjustments for dissimilarities will be applied. An adjusted price per 

sq. ft. will be determined and used to derive a value of the as-stabilized condition via the sales comparison 

approach. 

 

Lastly, we derive a value of the as-is leased fee interest. The lost rent and holding costs are calculated over a 

stabilization period as well as leasing commissions. This total lost opportunity is deducted from the as-

stabilized value to determine a value of the as-is leased fee interest based on the subject’s current 

occupancy rate. 

 

In reaching the concluded value, I applied the income and sales comparison approaches; concluded the 

market values requested by the client and issued this written report for exclusive use by the intended 

user/client-bank. The scope of the appraisal problem offers no difficulties or peculiarities. 

 

 

Legal Description 

The legal description is provided from public record as shown in the addenda of this report under Property 

Information. 

 

 

Property History 

The subject property is currently owned by Holt Business Center Inc. c/o Susan Maples. According to public 

record, she purchased an interest in the property in 1994 on a land contract for $575,000. This sale occurred 

several years ago under very different market conditions. 

 

There is a current purchase agreement from Mr. Cole Frageman for $715,000. This equates to $58 per sq. ft. 

GBA. The property was listed for sale through NAI for $769,900 for only 1-day before the current purchaser 

made the offer. According to NAI there are 2 back-up offers on the property. 

 

To my knowledge there has been no other sales activity on the subject property within the past three years.

9 

 

Occupancy 

The subject property is occupied by multiple tenants. Leases were reviewed and a rent roll summary follows: 

 

 

 

Three of the tenants reflect a lower rent on the rent roll provided by the owner. Based on the owner’s rent roll, 

it appears recent rent escalations were not enforced. The above rent roll reflects the lease rates and 

assumes the rents can be enforced per lease terms. The unit sizes reflect net rentable area assuming a 

BOMA factor of 1.128. This results in a total rentable area of ±11,477 sq. ft., assuming this BOMA factor. The 

gross building area is ±12,360 sq. ft. including ±2,185 sq. ft. of common areas. The subject is currently 25% 

vacant. 

 

The rents range from $11.50 to $17.34 per sq. ft. The high end of the range is for dental office space and is 

the owner’s lease. The other units are general office space. All leases are gross plus utilities whereby the 

tenant pays separately metered gas & electric while the owner pays all other operating expenses. 

 

According to NAI, the subject is listed for lease at $15 per sq. ft. NNN. We investigate market rent for similar 

properties in the income section of this report. 

 

 

Furniture, Fixtures & Equipment 

This appraisal is for real estate only and does not include any FF&E.

10 

 

Real Estate Taxes 

The subject has a legal parcel number of 33-25-05-15-479-009, according to the Delhi Township public 

records. Michigan has a two-tier real estate tax system. The State Equalized Value (SEV) is equal to 50% of 

“true cash value” and reflects the assessor’s opinion of current market value. The Taxable Value (TV) is the 

basis of tax calculations, unless a sale or a significant renovation is completed. The information below was 

provided by Delhi Township assessor’s office. 

 

The 2025 non-homestead tax rate for the subject is $68.5646 per thousand dollars of taxable value, as 

reported by the assessing department. The taxes below are based on the 2025 Taxable Value x 

$68.5646/thousand. 

 

Parcel # 

2025 SEV 

2025 Taxable Value 

Taxes 

33-25-05-15-479-009 

$423,700 

$366,277 

$25,114 

 Admin Fees 

 

 

$251 

 Special Assessment 

 

 

$2,284 

Total 

$423,700 

$366,277 

$27,649 

 

Based on the SEV, the assessor indicates a true cash value of $847,400 (2025 SEV x 2). This value is higher 

than our as-is value conclusion and the current purchase price. Assessments reflect the fee simple estate 

while this appraisal values the leased fee interest. 

 

Based on the 2025 Taxable Value of $366,277 at a non-homestead combined millage rate 68.5646 mills per 

one thousand dollars plus administrative fees and a special assessment equates to annual taxes of $27,649 

or $2.23 per sq. ft. There has been a special assessment on the subject property each year since at least 

2022, according to public record. “Green Consolidation” was billed in 2025 at $2,284.37. It is unknown how 

many years this special assessment will be charged. Interested parties are cautioned to conduct due 

diligence. 

 

Properties are usually re-assessed after a sale occurs. The Michigan Department of Treasury provides an 

estimated property tax after sale for the subject property at $29,335 or $2.37 per sq. ft. This estimate does 

not include future special assessments. 

 

According to the Ingham County Treasurer’s Office, there are no delinquent taxes on the subject property as 

of January 7, 2026. 

 

 

Zoning 

The subject site is zoned TC Town Center District. This district is intended to provide and promote attractive 

development while at the same time protecting and maintaining existing mature and/or historic areas of the 

community. Principal permitted uses include single family residential, professional office, personal service, 

retail, restaurant, drug store, dance studio, and other similar uses. 

 

The parking requirement for office use is 1 per 200 sq. ft. of usable floor area. Parking for dental office is 4 

per practitioner plus 1 per 2 employees. Based on the subject’s current use, it is required to have ±62 parking 

spaces. Upon inspection, there were ±69 marked parking spaces in the asphalt improvements thereby 

exceeding the parking requirement. 

 

The site appears to meet minimum lot size and width requirements as well as setback and height restrictions. 

The subject’s use as an office property is legally permitted. It appears the subject is legally conforming. The 

zoning map and excerpts from the zoning ordinance are found in the addendum of this report.

11 

 

Site Description 

The subject’s site is located on the west side of Aurelius Road in downtown Holt, which is part of Delhi 

Township, Michigan. The site is rectangular in shape measuring ±160’ x 329’ and containing ±1.209 acres. 

There is ±160 feet of frontage on Aurelius Road with 1 curb cut for access. The site has level topography and 

access to all public utilities. It is zoned TC Town Center District. 

 

The site has asphalt parking and drives constituting ±69 marked parking spaces. There are concrete 

walkways around the building with concrete steps accessing the front entrance. The rear has a composite 

handicap ramp. There is a metal-framed road sign along the road frontage as well as a city sidewalk. The site 

has some chain link fencing along the north and west lot lines. There is nice landscaping at the south side 

and along the road frontage. Upon inspection, the site improvements were in good condition. 

 

The site, as-if vacant, is viable for development, based on net usable area and conforms to the surrounding 

area. 

 

Easements: 

Normal and necessary easements include typical utility easements, including sewer. No 

negative easements were reported to this appraiser and none were noted upon inspection. 

 

Soil Conditions: 

 

 

No soil or geo-technical reports were provided to the appraiser. The appraiser has assumed 

that the load-bearing capacity of the subject soils is sufficient to support the existing structure. 

No evidence to the contrary was observed. Interested parties are cautioned to contact 

qualified engineers with regard to soil testing for the subject site. 

 

Environmental 

Hazards: 

The appraiser has not been informed, nor have the appraisers any knowledge of the existence 

of any environmental or health impediment, which if known, could have a negative impact on 

the market value of the subject property. The valuation contained herein is not valid if any 

hazardous items are found in the subject property and not stated within the appraisal report, 

including but not limited to: Urea-formaldehyde Foam Insulation, Radon Gas, Asbestos 

Products, Lead or Lead Based Products, and Toxic Waste Contaminants. 

 

Major 

Wetlands: 

No wetlands survey was furnished. Upon inspection, there were no low-lying areas observed. 

 

Flood 

Hazard: 

According to the FEMA mapping program, the subject property is located in panel 

26065C00144D (8/16/2011). The site is located in an area of minimal flood hazard within Zone 

X. Interested parties are cautioned to contact qualified engineers with regard to flooding 

potential for the subject site.

12 

 

 

 

 

 

 

Site boundaries provided by Ingham County GIS and are approximate

13 

 

Building Improvement Description 

The subject property’s building improvements include a concrete block structure containing ±12,360 sq. ft. 

GBA. There is ±10,175 sq. ft. of usable space and ±2,185 sq. ft. of common areas. The leases use a BOMA 

factor of 1.128 to derive rentable area for each tenant for a rentable area of ±11,477 sq. ft. 

 

The building is a split-level concrete block structure with a hip roof using gutters and downspouts for 

drainage. The exterior has a brick façade with some vinyl siding. There is a main entrance at the front into a 

common open staircase which accesses a common hall providing interior access to each rental unit. This 

common area also has a public restroom and mechanical room on each level. It appears the building was 

originally split into 4 units but has since been divided for current tenant needs. Each rental unit is designed 

and finished per tenant specifications with 1 unit being dental office space and all other units being general 

office space. 

 

The building has 4 gas-forced furnaces for heating and 5 ground-mount air conditioning units for cooling. 

There is emergency lighting throughout. No sprinkler fire suppression system was observed. The interior 

finishes are of good quality materials. The building was originally constructed in 1978 and is in average 

condition. No engineering inspection or report of any kind, is offered or implied by this real estate appraisal 

report, the appraisal firm, or the appraiser. Interested parties are strongly cautioned to conduct due diligence 

for self-interest. 

 

Title 

No title report was provided to the appraiser. Title to the subject is assumed free and clear. Interested parties 

are encouraged to contact a title or legal expert regarding matters of title. Other than normal utility 

easements, no easements were noted by visual inspection. 

 

Building Sketch; Subject Photos 

No footprint or floorplans were provided. Photographs of the building’s interior and exterior were taken by 

Sharon Bollinger on January 9, 2026, and are presented in the addendum of this report.

14 

 

Location Map 

 

 

 

 

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16 

 

Trends After COVID-19 Pandemic 

The global outbreak of a novel corona virus known as Covid-19 was officially declared a pandemic by the 

World Health Organization (WHO) in 2020. The reader is cautioned, and reminded that the conclusions 

presented in this appraisal report apply only as of the effective date indicated. The appraiser makes no 

representation as to the effect on the subject property of any unforeseen event, subsequent to the effective 

date of this appraisal. 

 

Beginning in March 2020, the Governor of Michigan mandated a state-wide shut-down of non-essential 

businesses – similar to most states across the country. The summer of 2020 had many businesses reopen 

with limited capacities and strict guidelines. However, most office employment remained remote. 

Unemployment surged in 2020, along with the entire country’s unemployment. Federal government stimulus 

programs were instituted to assist individuals and small businesses during this financial hardship. These 

efforts bolstered employee payroll and citizens’ finances in the short-term. 

Michigan enacted a second shut-down of most nonessential businesses in November 2020 when infection 

rates spiked again. Although this second shutdown was less aggressive, the hospitality industry was hit the 

hardest including hotels and restaurants. 

 

Unemployment has declined significantly since the start of the pandemic and is generally below 5% in most 

counties in Michigan. The federal stimulus checks, 3 in all, bolstered people’s bank accounts and a second 

round of the Payment Protection Program (PPP) assisted small businesses. The American Rescue Plan was 

also enacted providing further financial assistance to businesses to maintain operation. 

 

There are lasting impacts of the pandemic on commercial real estate. These impacts are primarily remote 

work, e-commerce and population shifts. 

 

During the pandemic and government shut-downs, most businesses were ordered closed for a period of time 

to reduce person-to-person contact. This resulted in high unemployment for a period during 2020. However, 

many employers shifted to remote work whereby employees were required to work from home. Over the 

years after 2020, some employers have required their employees to return to work, while many have opted 

for a hybrid situation or continuing work from home. This shift has influenced office use in 2 ways. 1) lower 

office demand due to hybrid and remote work resulting in higher vacancy rates for office use, and 2) 

reconfigured office space to add amenities and accommodate social distancing thereby requiring new office 

layouts. 

 

Hybrid and remote work have become standard for many employers across the country. This lessens the 

demand for office space with an expected vacancy rate of 18% by 2030 nationwide. This is a 55% increase 

over 2019 and pre-pandemic levels. Employers requiring in-office workers are becoming creative to attract 

employees with amenities in the office such as catering services, day care, outdoor space, activity rooms, 

etc. Those wanting hybrid work are reconfiguring the space for shareable offices with social distancing 

capabilities, thereby requiring new floor plans. They are also upgrading HVAC for improved air circulation and 

higher quality technology for better communication. 

 

E-commerce has drastically affected retail with a lower need for brick-and-mortar shops. There was a surge 

of on-line shopping during the pandemic which accelerated the lower utilization of retail space. Strip centers 

in populated areas are maintaining occupancy by offering service-oriented businesses such as grocery 

stores, salons and other personal services resulting in continued foot traffic. However, Class B & C shopping 

malls continue to struggle. These larger malls should be considered for repurposing with discussion of 

affordable housing, market-level housing, warehouse or fulfillment centers. The national retail vacancy rate in 

2022 was 4.4%. In 2021, on-line retail grew by 14% resulting in $870B in sales. This is expected to slowly 

increase as more shoppers are using on-line sources instead of traditional stores. 

 

The pandemic also brought about population shifts. Since residents were working remotely, there was no 

longer a need to live near the place of employment. Many residents relocated from large cities to suburbs. 

This resulted in higher vacancy rates for residential uses which led to lower rents. For example, New York 

City declined in average rents by 18% from 2019 to 2022, while San Francisco declined in average rents by

17 

 

28% over the same time period. This shift in population is largely a result of employment demands and will be 

contingent on future employer expectations. Conversely, the housing market in suburbs experienced strong 

demand with high prices making it difficult to find affordable housing. 

 

Hospitality was one of the hardest hit real estate sectors during the pandemic. Restaurant sales were down 

$65B from 2019 and experienced the permanent closure of 90,000 restaurants during and soon after the 

pandemic. Some restaurants were able to reopen in 2021 and 2022, which helped foster the economic 

recovery. Hotels had their worst year on record in 2020 with only a 44% occupancy rate, and RevPAR was 

down by 48%. The 2021 occupancy reported an increase to 57% indicating a slight rebound from the 

pandemic year. It appears leisure travel has resumed to normal levels; however, business travel is still low 

and 23% below the 2019 levels. This business travel may never recover to normal levels due to more 

effective and acceptable remote work. 

 

Industrial properties were not as severely impacted by the pandemic. Many industrial properties were 

considered necessary functions which were not required to close during the government’s shutdowns. 

Furthermore, industrial properties typically have employees which must be on-site, and are not affected by 

remote work influences. As e-commerce grows, the need for distribution functions and fulfillment centers will 

expand which could positively affect industrial properties. 

 

Experts identify repurposing and adaptation as the key factors in successfully operating a commercial real 

estate investment in the coming years. Many property types remain in flux as we see consumers’ needs and 

activities change. Office properties should consider new floor plans to accommodate shareable space and 

group activities as well as amenities. Retail strip centers can focus on in-person services to create foot traffic 

while shopping malls could seek alternative uses. The regional Briarwood Shopping Mall in Ann Arbor 

recently announced the demolition of an anchor store to construct apartments and street-level retail in a park-

like environment. The Northland Mall in Southfield has already begun a similar renovation. 

 

Repurposing a property has several considerations including 1) local regulations i.e. zoning, 2) utilities needs 

as adjustments to meters, public lines, etc., 3) updated fire suppression needs, and 4) insurance needs. 

These considerations are only a few of many other items such as cost, structural limitations, population, etc. 

 

Flexibility and creativity will be necessary for most commercial property types in the coming years. Users’ 

needs, population patterns, government restrictions as well as building structures along with many other 

considerations will dictate the viability of each property. This shifting environment must be considered in 

evaluating the longevity, supply & demand, and future use of each property type. New variants of Covid or 

other viruses could also impact the real estate market with unknown effects and actions by society and/or 

government restrictions. The aforementioned trends are what is known after a few years into the pandemic. 

Long-term effects could result in further implications and unknown changes. 

 

Sources: 

Forbes, “The Pandemic Impact on Commercial Real Estate and Where the Industry Is Going”, October 24, 2023. 

 

Agency Forward, “The Future of Commercial Property Considering the Covid-19 Pandemic”, January 20, 2023. 

 

Statista.com, “Coronavirus (Covid-9): Impact on Real Estate in the US – Statistics & Facts”, December 19, 2023.

18 

 

Highest and Best Use 

Highest & Best Use may be defined as: 

 

 

The reasonably profitable and legal use of vacant land or an improved property that is 

physically 

possible, appropriately supported, and financially feasible and that results in the highest value. 

 

The theoretical focus of highest & best use analysis is on the potential uses of the land as though vacant. In 

practice, however, the contributory value of the existing improvements and any possible alteration of those 

improvements are also important to determining highest & best use and, by extension, in developing an 

opinion of the market value of the property. 

 

In the analysis of highest & best use of land as though vacant, the appraiser seeks the answers to several 

questions: 

• 

Should the land be developed or left vacant? 

• 

If left vacant, when would future development be financially feasible? 

• 

If developed, what kind of improvement should be built? 

 

In the analysis of the highest & best use of the property as improved, additional questions must be answered: 

• 

Should the existing improvements on the property be maintained in their current state, should they be 

altered in some manner to make them more valuable, or should they be demolished to create a 

vacant site for a different use? 

• 

If renovation or redevelopment is warranted, when should the new improvements be built? 

 

The Four Tests 

As market/marketability analysis progresses to highest & best use analysis, appraisers first consider the 

reasonably probable uses of a site that can be legally undertaken. In the analysis of pertinent data, four 

steps are implicit and are applied in the following order to develop adequate support for the appraiser’s 

highest & best use opinion: 

1. Legally permissible 

2. Physically possible 

3. Financially feasible 

4. Maximally productive 

 

The highest & best use of land as though vacant is concluded after the four criteria have been applied and 

various alternative uses have been eliminated. The remaining use that fulfills all four criteria is the highest & 

best use. 

 

The highest & best use of a property as improved may be continuation of the existing use, renovation or 

rehabilitation, expansion, adaptation or conversion to another use, partial or total demolition, or some 

combination of these alternatives. 

 

The highest & best use analysis for the subject property is summarized in the following pages. 

 

 

This page on Highest & Best use is taken from excerpts of The Appraisal of Real Estate, 13th Edition. P. 277-287.

19 

 

Highest and Best Use 

As-Vacant 

In order to determine the highest and best use as vacant it is necessary to analyze the above-mentioned criteria. 

The subject’s site contains ±1.209 acres and is located on the west side of Aurelius Road in Delhi Township, 

Michigan. There is ±160 feet of frontage on Aurelius Road with 1 curb cut for access. The site has level 

topography and access to all public utilities. It is zoned TC Town Center District. 

 

Legally Permissible 

Our first consideration is those uses which are legally permissible. Under the legally permissible category the TC 

Town Center District zoning is analyzed. The subject’s site meets the minimum lot size and width requirements. 

 

Physically Possible 

The second test of highest & best use is those uses which are physically possible. Due to its size and shape of the 

parcel, it could be put to many uses as any of the legally permitted uses including general commercial. 

 

Financially Feasible 

Next, we consider the uses which are financially feasible. Each of the legally permissible and physically possible 

uses would produce a return. It is likely that the site can be developed into a general commercial use which can be 

rented to produce an income stream, or held by an owner-user for the successful operation of a business. 

Therefore, all of the legally permissible and physically possible uses are also financially feasible. 

 

 

Maximally Productive 

Lastly, we analyze the uses which are maximally productive. A general commercial use of the site appears to 

produce the highest possible return. Due to the size and shape of the parcel, a general commercial building can be 

constructed which conforms to the area along Aurelius Road and throughout downtown Holt. A general 

commercial use could be rented to generate an income stream or held by an owner-user. Therefore, the maximum 

productivity of the parcel, as vacant, is for a general commercial use. 

 

The subject property’s improved site as vacant has a highest and best use as general commercial. 

 

Highest and Best Use 

As-Improved 

The subject’s improvements include a concrete block split-level office structure containing ±12,360 sq. ft. GBA. 

There is a common entrance with restrooms and mechanical rooms. The building is split into office rental units with 

interior access to each. It was built in 1978 and is in average condition. 

 

Legally Permissible 

Our first consideration is those uses which are legally permissible under the TC zoning. Upon inspection, the 

building appears to meet setback requirements as well as height restrictions. General office and dental office are 

legally permitted uses in the TC district. 

 

Physically Possible 

The second test of highest & best use is those uses which are physically possible. Under the physically possible 

category the property could be put to any of the legally permitted including office. 

 

Financially Feasible 

Next, we consider the uses which are financially feasible. All of the above-mentioned uses can be rented out to 

produce a rental income as evidenced by the current leases. 

 

Maximally Productive 

Lastly, we analyze the uses which are maximally productive. All of the legally permitted uses are also physically 

possible and financially feasible. Based on the design of the subject’s building and the current leases indicating 

demand, the maximum productivity is an office. 

 

The subject property as-improved has a highest and best use as office

20 

 

Cost Approach 

The Cost Approach is a set of procedures through which a value indication is derived for the fee simple 

interest in a property by estimating the current cost to construct a reproduction of (or replacement for) the 

existing structure, including an entrepreneurial incentive; deducting depreciation from the total cost; and 

adding the estimated land value. Adjustments may then be made to the indicated fee simple value of the 

subject property to reflect the value of the property interest being appraised. 

 

After gathering all relevant information and analyzing data for the market area, site and improvements, an 

appraiser follows a series of steps to derive a value indication by the Cost Approach. The appraiser will: 

 

1. Estimate the value of the site as though vacant and available to be developed to its highest and best 

use. 

2. Determine which cost basis is most applicable to the assignment: reproduction cost or replacement 

cost. 

3. Estimate the direct and indirect costs of the improvements as of the effective appraisal date. 

4. Estimate an appropriate entrepreneurial profit or incentive from analysis of the market. 

5. Add the estimated direct costs, indirect costs and entrepreneurial profit or incentive to arrive at the 

total cost of the improvements. 

6. Estimate the amount of depreciation in the structure and, if necessary, allocate it among the three 

major categories: 

• 

Physical deterioration 

• 

Functional obsolescence 

• 

External obsolescence 

7. Deduct estimated depreciation from the total cost of the improvements to derive an estimate of their 

depreciated cost. 

8. Estimate the contributory value of any site improvements that have not already been considered. 

(Site improvements are often appraised at their contributory value, ie. Directly on a depreciated cost 

basis, but may be included in the overall cost calculated in Step 2 and depreciated if necessary.) 

9. Add the site value to the total depreciated cost of all the improvements to develop the market value of 

the property. 

10. Adjust the value conclusion if any personal property (e.g. furniture, fixtures and equipment) of 

intangible assets are included in the appraisal assignment. If necessary, this value, which reflects the 

value of the fee simple interest, may be adjusted for the property interest being appraised to arrive at 

the indicated value of the specified interest in the property. 

 

Source: The Appraisal of Real Estate, Thirteenth Edition 

 

 

The subject property was constructed in 1978 and is 48 years old. Estimating depreciation in older structures 

becomes unreliable rendering the cost approach not applicable in this appraisal assignment.

21 

 

Income Approach 

The income capitalization approach supports two basic methodologies: direct capitalization, which uses the 

relationship of one year’s income to conclude a value, and yield capitalization, which considers a series of 

cash flows over time together with any reversion value or resale proceeds. 

 

Initially, both methods require a comprehensive study of historical income and expenses for the subject 

property. This study is combined with an analysis of typical income and expense levels for comparable 

properties. A reconstructed operating statement is developed for the subject property. This statement must 

reflect the purpose of the appraisal, especially with respect to the property interest being appraised. Leased 

fee value will reflect current leases and the associated expense structure, while fee simple value starts with 

an income based on market rent. 

 

Yield capitalization will require a consideration of probable income and expenses over the designated 

projection period, often from five to ten years. When this method is used, the appraiser must forecast income 

and expenses over time together with the eventual reversion or resale value of the property. Direct 

capitalization, on the other hand, requires a one-year cash flow estimated (date of valuation plus next 12 

months) and application of an overall rate to estimate value. This method relies on sales of properties with 

income characteristics and future expectations similar to the subject’s. 

 

Although there are various income capitalization techniques available to the appraiser, certain steps are 

essential in applying the income capitalization approach. Before applying any capitalization techniques, an 

appraiser must work down from potential gross income to net operating income. To do this, the appraiser 

will: 

1. Research the income and expense data for the subject property and comparables. 

2. Estimate the potential gross income of the property by adding rental income and any other potential 

income. 

3. Estimate the vacancy and collection loss. 

4. Subtract vacancy and collection loss from total potential gross income to arrive at the effective gross 

income of the subject property. 

5. Estimate the total operating expenses for the subject by adding fixed expenses, variable expenses, 

and a replacement allowance (where applicable). 

6. Subtract the estimate of total operating expenses from the estimate of effective gross income to arrive 

at net operating income. (Deductions for capital items may also be necessary at various points in time 

through the projection period to calculate the cash flow used in discounted cash flow analysis.) 

7. Apply one of the direct or yield capitalization techniques to this data to generate an estimated of value 

via the income capitalization approach. 

Source: The Appraisal of Real Estate, Thirteenth Edition. 

 

Yield Capitalization 

Yield Capitalization is defined in the Dictionary of Real Estate, Fifth Edition as “A method used to convert 

future benefits into present value by 1) discounting each future benefit at an appropriate yield rate, or 2) 

developing an overall rate that explicitly reflects the investment’s income pattern, holding period, value 

change and yield rate.” 

 

The Yield Capitalization method considers a property’s specific income characteristics including lease terms, 

contract rent, actual expenses as well as risks for vacancy & credit loss. Properties with a strong upside 

potential are typically those with strong lease arrangements having good/long-term tenants. Generally, 

properties with this strong upside potential can attract a reduced cash-on-cash rate of return. Properties with

22 

 

less upside potential generally require a higher cash-on-cash return because of a diminished expectation of 

future benefits. 

 

To perform yield capitalization, an appraiser: 

1. Selects an appropriate projection period. 

2. Forecasts all future cash flows or cash flow patterns (including the reversion). 

3. Chooses an appropriate yield rate. 

4. Converts future benefits into present value by discounting each annual future benefit or by developing 

an overall rate that reflects the income pattern, value change and yield rate using one of the various 

yield capitalization formulas. 1 

 

Yield capitalization is preferred over Direct Capitalization when income fluctuates, and it allows for projections 

over more than one year. With the strong tenant relationship and low risk of vacancy, a Discounted Cash 

Flow Analysis using Yield Capitalization is appropriate to value the income stream by analyzing the subject’s 

income producing capabilities. Therefore, this appraisal includes a DCF using the actual lease arrangement 

for contract rent and expenses; then assumes low risk with regard to vacancy & credit loss. A lower-than-

average discount rate is appropriate due to the very low risk of this tenant vacating the building. 

 

The Yield Capitalization Method (Discounted Cash Flow) is the best means in analyzing a property’s income 

stream by considering actual lease agreements and their inherent risks, if any. The DCF uses contract rent 

with appropriate vacancy & credit loss as well as estimated expenses. The net operating income is estimated 

over a 5-year holding period. Each year’s net operating income (NOI) is discounted to present value. A 6th 

year NOI is also projected to develop a reversion value which is also discounted to present value. The 

present value of the income stream and the reversion are added together for a leased fee value conclusion 

based on yield capitalization. 

1 The Appraisal of Real Estate, Thirteenth Edition 

 

 

Leased Fee Analysis 

This income analysis of the leased fee interest is for the as-stabilized condition in the subject property as a 

multi-tenant office building. The subject is 75% leased to multiple tenants having varying lease terms 

including rent escalations and renewal options. The following is a rent roll summary based on the leases 

provided.

23 

 

All leases are gross plus utilities. Each lease has rent escalations at varying times, as well as varying renewal 

options. The highest rent is paid by Total Health Dentistry which is the only dental office in the building while 

all other units are general office use. The dental unit is also occupied by the current owner. It is assumed this 

tenant will remain through at least 2030 after sale of the real estate. Tenants pay rent on the rentable area 

which assumes a 1.128 BOMA factor. 

 

A rent roll was provided in addition to copies of leases. Three of the leases reflect a higher rent for 2026 than 

shown on the rent roll provided by the owner. The above rent summary reflects the lease arrangements with 

the extraordinary assumption that the rent roll provided by the owner has not been updated. It is assumed the 

leases are enforceable and the contract rent is collected per the lease terms. 

 

We use yield capitalization to analyze the income producing capabilities in the subject property by developing 

a discounted cash flow analysis using contact rent and the current lease terms. First, we analyze the existing 

leases for contract rent, lease terms and conditions and compare the contract rent to market rent for similar 

properties. Next, we determine a market vacancy & credit loss and any appropriate expenses to be deducted 

from the potential gross income. 

 

The DCF using Yield Capitalization is considered a reliable method to valuing a property which is 

encumbered by a lease with escalations and renewal options. This is the process a prospective purchaser 

would likely analyze the property to determine a value. Therefore, most consideration is given to the DCF in 

determining a final value conclusion. The subject’s leases have rent escalations; and with increasing rent, 

direct capitalization tends to under-value the property because it does not consider the escalations in future 

rental income. 

 

The annual rental income is projected over the holding period with vacancy & credit loss deducted for an 

effective gross income. Appropriate expenses are deducted each year to derive annual cash flows. A 

discount rate is established to discount each year’s annual cash flow to present value in order to determine a 

present worth of the income stream. Lastly, a 6th year cash flow is projected using a terminal cap rate to 

determine reversionary value. This value is discounted for a present worth of the reversion and added to the 

present value of the income stream for a leased fee value. 

 

Market Rent Analysis 

We conduct a market rent investigation to determine if contact rents are reasonable and establish a fair 

market rent for the vacant space. Many of the office properties in Holt are small buildings as owner-users. A 

few rental comparables were found for comparison as follows: 

 

 

*Base rent reflects the estimated gross plus utilities equivalent 

**Asking rents are adjusted downward by 15%f or potential negotiation

24 

 

The rental comparables are a mix of modified gross, gross and plus utilities and triple net (NNN) 

arrangements. A modified gross lease requires the tenant to pay a base rent plus reimburse of some 

operating expenses, usually maintenance and utilities, while a gross lease does not require any 

reimbursements. The gross plus utilities lease requires tenants to pay only utilities. The subject’s leases are 

each gross plus utilities arrangements; therefore, we analyze the market rents on a gross plus utilities basis. 

The above base rent estimates the gross plus utilities equivalent. 

 

Rentals 3 and 4 are in Okemos which is a superior location with regard to demand and rent potential. They 

reflect the high end of the range. Rentals 5 and 6 are current listings for lease in Holt. Their estimated base 

rent is adjusted downward by 15% for negotiation. 

 

The subject’s contract rents are within the range of comparables and considered reasonable. The owner’s 

dental space is at the high end of the range, but reasonable because dental/medical office space usually 

collects higher rent than general office space. Rentals 2 and 3 are superior in condition, and Rentals 3 and 4 

are superior in location. Rentals 5 and 6 reflect an adjusted rent based on their current listing. These lower 

rental rates indicate a downward trend for office rents placing downward pressure on the market. Therefore, 

we conclude a fair market rent below the overall average at $14.00 per sq. ft. gross plus utilities. This fair 

market rent will be used on vacant space for this analysis. 

 

Fair Market Rent: $14 per sq. ft. gross plus utilities 

 

Vacancy & Credit Loss Analysis 

Upon visual inspection of the immediate area, there were minimal office properties along Aurelius Road in 

Holt. Most office development is on Cedar Street, near I-96. In searching office properties, the vacancy rate 

reported by CoStar for 4th quarter 2025 was 5.2% in the Southern Lansing submarket (which includes Holt). 

The subject is currently 25% vacant. Based on financial data provided by the owner, it has been 25% 

vacancy for the past 3 years. As a result, we conclude a market vacancy at 5%, and add a 4% credit loss 

factor in consideration of historical vacancy rates inferring risk. This analysis will use a vacancy & credit loss 

of 9%. 

Vacancy & Credit Loss: 9% 

 

Yield Rate 

The Dictionary of Real Estate, Fifth Edition, defines yield rate as “A rate of return on capital, usually 

expressed as a compound annual percentage rate. A yield rate considers all expected property benefits, 

including the proceeds from sale at the termination of the investment.” A yield rate is more difficult to extract 

from the market. 

 

PwC analyzes large property categories including retail shopping malls, office buildings over 100,000 sq. ft. 

and apartments with 100+ units, none of which have similarities to small suburban office properties. 

Therefore, we use Realty Rates data from the 4th Quarter 2025 Investor Survey for suburban office. 

 

Realty Rates Investor Survey 

4th Quarter 2025 

Discount Rates 

Minimum 

Maximum 

Average 

Suburban Office 

8.66% 

14.62% 

11.50% 

 

The average discount rate for all suburban office properties nationwide is 11.50%. This research includes all 

suburban office properties of every size, age and condition in any location.

25 

 

Next, we analyze cap rates on similar properties based on recent sales in the market to develop an opinion of 

discount rate and residual cap rate. Generally, discounts rates are ±1.0% to 1.50% higher than overall cap 

rates and residual cap rates are slightly higher than overall cap rates. 

 

Market Extracted Cap Rates 

Minimal cap rate data is available on similar office properties in the Lansing market. The following is a 

summary of the sales found with their corresponding cap rates. 

 

 

 

The above cap rates for office properties in the Lansing market range from 7.60% to 10.00%. Comps 2, 3 and 

4 are each newer construction. Comps 2 and 4 are considered superior locations in East Lansing with higher 

demand for use and rent potential. Based on this data, we expect the subject could attract a cap rate above 

the overall average at 9.00% to 9.50%. A cap rate is generally lower than the discount rate because cap rates 

reflect the risk of only one year. A discount rate is higher than a cap rate due to the risks associated with 

estimating cash flows over the holding period. 

 

In conclusion, a discount rate (yield rate) of 10.50% is considered an appropriate reflection of the subject’s 

existing lease arrangements. This discount rate is slightly below the average of the Realty Rates data for 

office properties but considered reasonable based on our cap rate research. The DCF will use a 10.50% 

discount rate for the annual cash flows and 10.00% terminal cap rate for the 6th year for residual value. 

 

Discounted Cash Flow Analysis 

Holding Period 

The subject property has several leases on 75% of the building. Each lease has varying terms and 

conditions, but all expire within the next 5 years. Therefore, we establish a 5-year holding period to 

encompass the entirety of the lease agreements. With 25% vacant, the property is not stabilized, so we 

derive an as-stabilized value using the DCF assuming market occupancy rates at fair market rent. 

 

Rental Income 

The rental income is derived from contract rent based on the actual lease arrangements. Each lease has 

varying rent escalations and renewal options. We calculate individual rent increases and assume renewal 

options are exercised. The vacant space is analyzed at fair market rent of $14 per sq. ft. gross plus utilities 

and assumes a 1% annual increase. The total rental income is Year One is 177,000, increasing throughout 

the holding period to Year Five at $186,105. 

 

Expense Reimbursements 

All leases are gross plus utilities with utilities separately metered and billed direct to tenants. There is no 

pass-thru of the utilities expense with no reimbursements. 

 

Vacancy & Credit Loss 

The concluded vacancy & credit loss of an office property in Holt is 9.0%, which is deducted each year during 

the holding period.

26 

 

Effective Gross Income 

The vacancy & credit loss is deducted from the total income to determine an effective gross income for each year 

in the holding period. The effective gross income increases from Period 1 through Period 5 due to increasing rents. 

 

Expenses 

The operating expenses include maintenance, utilities, property insurance and taxes as well as management and 

reserves. Utilities are billed direct to tenants, so the utilities expense is for common areas only. Expense history, 

expense comparables and this appraiser’s experience with similar properties were used to estimate reasonable 

expenses by line item. These line items are calculated based on an expense per sq. ft. for the gross building area. 

Maintenance & repairs are estimated at $2.00 per sq. ft. Utilities are estimated at $0.75 per sq. ft. for common area 

only. Property insurance is estimated at $0.60 per sq. ft. Property taxes are estimated at $2.37 per sq. ft. after 

sale. We assume a 2% increase in all operating expenses year-over-year throughout the holding period. 

 

Management is estimated at 5% of effective gross income. A reserves budget is also estimated for the repair 

and/or replacement of large building components and is estimated at $0.50 per sq. ft. of GBA. 

 

The total expenses in Period 1 are $84,974, increasing through Period 5 to $91,220. 

 

Annual Cash Flows 

Annual cash flows are calculated by deducting the total expenses from the effective gross income for each year in 

the holding period. 

 

Discounting 

The discount rate was established at 10.50%. A present worth factor is calculated for each holding period based 

on this 10.50% discount rate. Each year’s rental income for Periods 1 - 5 is discounted to present value for a 

present worth of the income stream at $287,402. 

 

Reversion 

A 6th year cash flow is projected at $78,367 based on contract rent and estimated expenses. A residual cap rate of 

10.00% is applied to the 6th year rental income for a reversion value of $783,670. The 5th year present worth factor 

is then applied to the reversion value to discount to present value. Therefore, $783,670 is discounted at 10.50% 

from Year 5 for a present value of the reversion at $475,685. The 5th year present-worth factor is used because a 

purchaser in Year 5 would use that year’s estimated rate in determining an appropriate purchase price. 

 

Yield Capitalization (DCF) Conclusion 

The present worth of the income stream based on a 10.50% discount rate is $287,402. The reversion value using 

a 10.00% residual cap rate discounted at 10.50% for the 5th year indicates a present value of the reversion at 

$475,685. The value conclusion is determined by adding the present worth of the income stream to the discounted 

reversion value indicating an as-stabilized leased fee value of $765,000 with an estimated stabilization date of 

February 1, 2027. This value conclusion is based on extraordinary assumptions stated on Page 6. 

 

 

Yield Capitalization (DCF) of Leased Fee Income 

$765,000 

Seven Hundred Sixty-Five Thousand Dollars 

As-Stabilized Leased Fee 

2/1/2027

27 

 

 

 

 

 

 

 

 

PERIOD

1

2

3

4

5

6

YEAR

2026

2027

2028

2029

2030

2031

Income

Total Health Dentistry

$50,564

$51,069

$51,069

$51,069

$52,091

$52,091

Hubbell, Roth & Clark

$39,303

$39,303

$39,696

$40,094

$40,495

$40,900

Total Health Dentistry

$4,248

$4,290

$4,290

$4,290

$4,333

$4,333

Elizabeth Howard

$4,371

$4,415

$4,459

$4,503

$4,548

$4,594

Tracey Hernley

$38,070

$39,136

$40,232

$41,358

$42,516

$43,707

Tracey Hernley

$2,252

$2,315

$2,315

$2,315

$2,379

$2,379

Vacant

$38,192

$38,574

$38,960

$39,349

$39,743

$40,140

POTENTIAL

GROSS INCOME

$177,000

$179,102

$181,020

$182,979

$186,105

$188,144

Vacancy &

Credit Loss 

($15,930)

($16,119)

($16,292)

($16,468)

($16,749)

($16,933)

EFFECTIVE

GROSS INCOME

$161,070

$162,982

$164,728

$166,511

$169,356

$171,211

Operating Expenses

Maintenance & Repairs

$24,720

$25,214

$25,719

$26,233

$26,758

$27,293

Utilities

$9,270

$9,455

$9,645

$9,837

$10,034

$10,235

Insurance

$7,416

$7,564

$7,716

$7,870

$8,027

$8,188

Property Taxes

$29,335

$29,922

$30,520

$31,131

$31,753

$32,388

Total Operating Expenses

$70,741

$72,156

$73,599

$75,071

$76,572

$78,104

Management

$8,053

$8,149

$8,236

$8,326

$8,468

$8,561

Reserves

$6,180

$6,180

$6,180

$6,180

$6,180

$6,180

Total Other Expenses

$14,233

$14,329

$14,416

$14,506

$14,648

$14,741

Total Expenses

$84,974

$86,485

$88,015

$89,576

$91,220

$92,844

Annual Cash Flow

$76,095

$76,497

$76,713

$76,934

$78,136

$78,367

Present Worth 

Factor @ 10.50%

0.905

 

0.819

 

0.741

 

0.671

 

0.607

 

Present Worth

$68,864

$62,650

$56,857

$51,603

$47,428

Present Worth of Income Stream

$287,402

Reversion

$475,685

Indicated Value

$763,087

Rounded - As Stabilized Leased Fee

2/1/2027

$765,000

$62 per sq. ft.

 Discounted Cash Flow Analysis

Assumptions

Contract rent for current tenant with rent escalations per lease terms.

No reimbursements per lease terms

Vacancy & Credit Loss at 9% 

Expenses increase by 2% per year

Management at 5.0% of effective gross income

Reserves at $0.50 per sq. ft. GBA

10.50% Discount Rate

10.0% Terminal Cap Rate

28 

 

Sales Comparison Approach 

The Sales Comparison Approach is based on the concepts of anticipation and change, which underlie the 

principles of supply and demand, substitution, balance, and externalities. This method of valuation holds that 

a seller would not expect to receive, nor would a buyer expect to pay more for a property than the price at 

which an equally desirable substitute property can be acquired in the open market. Guided by these 

principles, an appraiser attempts to consider all issues relevant to the valuation problem in a manner that is 

consistent and reflects local market conditions. 

 

To apply the Sales Comparison Approach, appraisers follow a systematic procedure: 

1. Research the competitive market for information on properties that are similar to the subject property 

and that have recently sold, are listed for sale, or are under contract. Consider the characteristics of 

the properties such as property type, date of sale, size, physical condition, location, and land use 

constraints. The goal is to find a set of comparable sales as similar as possible to the subject 

property to ensure they reflect the actions of similar buyers. Market analysis and highest & best use 

analysis set the stage for the selection of appropriate comparable sales. 

2. Verify the information by confirming that the data obtained is factually accurate and that the 

transactions reflect arm’s-length market considerations. Verification should elicit additional 

information about the property and the market so that comparisons are reliable. 

3. Select the most relevant units of comparison in the market (e.g. price per acre, price per square foot, 

price per front foot) and develop a comparative analysis for each unit. The appraiser’s goal is to 

define and identify a unit of comparison that explains market behavior. 

4. Look for differences between the comparable sale properties and the subject property using all 

appropriate elements of comparison. Then adjust the price for each sale property, reflecting how it 

differs, to equate it to the subject property of eliminate that property as a comparable. This step 

typically involves using the most similar sale properties and then adjusting for any remaining 

differences. If a transaction does not reflect the actions of a buyer who would also be attracted to the 

subject property, the appraiser should be concerned about the comparability. 

5. Reconcile the various value indications produced from the analysis of comparables to a value bracket 

and then to a single value indication. 

 

Information on recent sales of similar properties in the market is investigated and verified through reliable 

sources. Analysis begins using appropriate units of comparison such as price per sq. ft., price per unit, price 

per room, etc. Each sales transaction can be adjusted to account for differences between itself and the 

subject property. There are two main deficiencies with the Sales Comparison Method as: 

 

• 

There is no market sale so similar as to accurately mirror every aspect of the subject’s circumstances. 

• 

Adjustments are difficult to quantify without a large market sample which possess similar economic 

and physical variables as the subject.

29 

 

Elements of comparison are the characteristics of properties and transactions that help explain the variances 

in the prices paid for real property. The basic elements of comparison that should be considered in sale 

comparison analysis are as follows: 

1. Real property rights conveyed 

2. Financing terms 

3. Conditions of sale 

4. Expenditures made immediately after purchase 

5. Market conditions 

6. Location 

7. Physical characteristics 

8. Economic characteristics 

9. Use 

10. Non-realty components of value 

 

Sequential adjustments are made to the comparable sales for Steps 1-5, while cumulative adjustments are 

made for the remaining categories. 

Excerpts Taken From: The Appraisal of Real Estate, Thirteenth Edition 

 

 

 

Sales Comparison Approach 

The sales comparison approach is based on the principle of substitution, which holds that a seller would not 

expect to receive, nor would a buyer expect to pay more for a property than the price at which an equally 

desirable substitute property can be acquired in the open market. 

 

The subject property is a split-level office building containing ±12,360 sq. ft. GBA. It is a concrete block 

structure with a brick façade having a hip roof. There is a common entrance into a common hall with public 

restrooms and mechanical rooms. Each rental unit has interior access from this common area. The rental 

units are designed and finished per tenant specifications mostly with open office space, private offices, 

conference room and a restroom. The finishes are of average quality. The building was constructed in 1978 

and is in average condition. 

 

The subject’s site contains ±1.209 acres with a land-to-building ratio of ±4.26:1. There is level topography 

and access to all public utilities. It is zoned TC Town Center District.

30 

 

The sales comparison approach is used to estimate the stabilized value for the subject; and has been used 

along with the income approach to reach a final value conclusion. An extensive market investigation was 

conducted into recent sales of similar office buildings in the Lansing market. Sales were specifically chosen 

based on use, size, age, condition and location. The most similar sales were chosen for further comparison to 

the subject property. A summary of the sales used in this analysis is presented in the chart below. 

 

Summary of Improved Sales Comparables 

 

# 

 

Location 

Sale Price 

Size 

(Sq. Ft.) 

Year Built/ 

Condition 

Price per 

Sq. Ft. 

Date of 

Sale 

1 

4287 Five Oaks Drive 

Delhi Township 

$850,000 

12,000 

2002 

Good 

$71 

3/31/2025 

 

 

 

 

 

 

 

2 

3186 Pine Tree Road 

Delhi Township 

$1,400,000 

17,312 

1991 

Average 

$81 

11/6/2024 

 

 

 

 

 

 

 

3 

6709 Centurion Drive 

Delta Township 

$1,275,000 

15,832 

2001 

Good 

$81 

10/17/2024 

 

 

 

 

 

 

 

4 

826 Municipal Way 

Delta Township 

$1,000,000 

11,649 

2005 

Good 

$86 

10/15/2024 

 

 

 

 

 

 

 

5 

7200 Saginaw Highway 

Delta Township 

$974,000 

10,496 

1968 

Average 

$93 

8/16/2024 

 

 

 

 

 

 

 

6 

4710 Saginaw Highway 

Delta Township 

$700,000 

13,765 

1972 

Average 

$51 

8/12/2023 

 

The buildings ranged considerably in location, age, condition, and price per sq. ft.; however, the range of 

physical and financial aspects of the comparables was considered to bracket the overall characteristics of the 

subject. The comparable sales are further compared in the following adjustment grid. Details of all 

comparables are retained in the appraisal workfile.

31 

 

 

 

Summary of Adjustments 

 

Market Conditions 

We evaluate the subject’s as-stabilized condition based on the estimated stabilization date of February 1, 

2027. In reviewing sales of similar office properties over the past few years, prices have remained relatively 

stable without a significant increase or decrease. No significant changes in sale prices is expected in the 

coming year. Therefore, no adjustments are made for market conditions. 

 

 

 

SUBJECT

Comparable 1

Comparable 2

Comparable 3

Comparable 4

Comparable 5

Comparable 6

Address

2101 Aurelius Rd

4287 Five Oaks Dr

3186 Pine Tree Rd

6709 Centurion Dr

826 Municipal Way

7200 Saginaw Hwy

4710 Saginaw Hwy

City

Delhi Twp

Delhi Twp

Delhi Twp

Delta Twp

Delta Twp

Delta Twp

Delta Twp

Sale Price

$850,000

$1,400,000

$1,275,000

$1,000,000

$974,000

$700,000

Price/sq.ft.

 

$71

$81

$81

$86

$93

$51

Property

Leased Fee

Leased Fee

Leased Fee

Leased Fee

Leased Fee

Leased Fee

Leased Fee

Rights

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

$71

$81

$81

$86

$93

$51

Financing

Cash to seller

Cash to Seller

Cash to Seller

Cash to Seller

Cash to Seller

Cash to Seller

Cash to Seller

Terms

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

$71

$81

$81

$86

$93

$51

Conditons 

Arms Length

Arms-Length

Arms-Length

Arms-Length

Arms-Length

Arms-Length

Arms-Length

of Sale

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

$71

$81

$81

$86

$93

$51

Date

Feb-27

Mar-25

Nov-24

Oct-24

Oct-24

Aug-24

Aug-23

of Sale

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

Cash equivalent price

$71

$81

$81

$86

$93

$51

Land-To-Bldg

4.26:1

7.18

 

12.10

 

4.44

 

7.48

 

3.97

 

2.88

 

 Ratio

-2.92%

-7.84%

-0.18%

-3.22%

0.29%

1.38%

Location

Average

Similar

Similar

Superior

Superior

Superior

Superior

0.0%

0.0%

-10.0%

-10.0%

-10.0%

-10.0%

Use

Office

Office

Office

Office

Office

Office

Office

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

Construction

Good

Good

Good

Good

Good

Good

Good

 Quality

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

Conditon

Average

Good

Average

Good

Good

Average

Average

-5.0%

0.0%

-5.0%

-5.0%

0.0%

0.0%

Building Size

12,360

12,000

17,312

15,832

11,649

10,496

13,765

 (sq. ft.)

-0.36%

4.95%

3.47%

-0.71%

-1.86%

1.41%

Zoning

TC

C-3

C-3

O

O

O

O

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

Functional

Split-Level

Superior

Superior

Superior

Superior

Superior

2-story

 Obsolescence

-5.0%

-5.0%

-5.0%

-5.0%

-5.0%

0.0%

Gross adjustment

13.3%

17.8%

23.7%

23.9%

17.2%

12.8%

Net adjustment ($)

($9.41)

($6.38)

($13.46)

($20.54)

($15.38)

($3.67)

Net adjustment (%)

-13.3%

-7.9%

-16.7%

-23.9%

-16.6%

-7.2%

Indicated Value

per sq. ft. including land

$61

$74

$67

$65

$77

$47

Building area adjustment

1% per 1,000 sq. ft.

Market conditions (Time) adjustment 

0.00% per month

per sq. ft.

Average

$65

$809,367

Median

$66

$815,760

Indicated Value

$65

$803,400

Value Conclusion - As Stabilized 

$800,000

2/1/2027

.

Sales Adjustment Grid

32 

 

Land-To-Building Ratio 

The subject’s land-to-building ratio is ±4.26:1. Each sale is adjusted based on their respective land-to-building 

ratio with higher ratios being superior and lower ratios being inferior. As a result, properties with higher land-

to-building ratios are adjusted downward as opposed to properties with lower ratios which are adjusted 

upward. 

 

Location 

The subject property is located on Aurelius Road in Delhi Township with a similar location to Sales 1 and 2. 

Sales 3, 4, 5 and 6 are each located in Delta Township at the west side of the Lansing. There is strong office 

development in the area with good highway access. It is considered a superior location with regard to 

demand for use. Therefore, Sales 3, 4, 5 and 6 are each adjusted downward by 10% for their superior 

location. 

 

Use 

The subject is constructed and used as an office property. It has the same use as each comparable and no 

adjustments are made. 

 

Construction Quality 

The subject property has good construction quality, similar to all six sales. Therefore, no adjustments are 

made. 

 

Condition 

The subject property is in average condition, similar to Sales 2, 5 and 6. Sales 1, 3 and 4 were in good 

condition at the time of sale and each is adjusted downward by 5%. 

 

Building Size 

The subject building contains ±12,360 sq. ft. GBA. Each sale is evaluated based on their respective gross 

building area (GBA). Typically, larger buildings sell at a lower price per sq. ft. and smaller buildings sell at a 

higher price per sq. ft. The comparables’ building size have been adjusted based on 1% per 1,000 sq. ft. 

 

Zoning 

The subject is zoned TC Town Center District with a wide range of general commercial uses, including office. 

It has a similar zoning to all six sales, and no adjustments are made. 

 

Functional Obsolescence 

The subject property is a split-level office building without elevator access between floors. Sale 6 is also a 

split-level design without elevator access. Sales 1, 2, 3, 4 and 5 are each 1-story buildings with accessibility 

to each rental unit. Therefore, Sales 1, 2, 3, 4 and 5 are each considered superior and adjusted downward by 

5%. 

 

Value via Sales Comparison Approach 

In conclusion, considering the quantity and quality of the data available, and property characteristics the 

adjusted range is $47 to $77 per sq. ft. with an average of $65 and a median of $66 per sq. ft. We calculate a 

gross adjustment for each sale indicating the level of differences from the subject property. Sales with high 

gross adjustments indicated several differences as opposed to sales with low gross adjustments having fewer 

differences. Each sale has a similar gross adjustment indicating they are each similarly equal to the subject 

property.

33 

 

Because the gross adjustments are all very similar, we consider the overall average a good indication of 

value by giving equal consideration to each sale. This concludes a value based on $65 per sq. ft. 

 

In conclusion, the trend in adjusted values is used to reach our value conclusion at $65 per sq. ft. The subject 

property has ±12,360 sq. ft. GBA; and at $65 per sq. ft. indicates an as-stabilized value of the leased fee 

interest at $800,000 (rounded) via the sales comparison approach with an estimated stabilization date of 

February 1, 2027. All conclusions are based on extraordinary assumptions stated on Page 6. 

 

$800,000 

Eight Hundred Thousand Dollars 

As-Stabilized Leased Fee 

2/1/2027 

 

As Is Value 

The income and sales comparison approaches were developed to value the as-stabilized leased fee interest 

for a final value conclusion of $765,000 with an estimated stabilization date of February 1, 2027. The subject 

property is currently 75% occupied with an above-market vacancy level. We develop an opinion of the as-is 

value based on its current condition. 

 

First, we calculate the amount of space needed to be leased in order to reach market stabilization. The 

income section has an investigation into market vacancy rates concluding a 9% vacancy & credit loss. We 

use the subject’s rentable area of ±11,477 sq. ft. in total area (including a BOMA factor of 1.1258). There is 

currently ±8,749 sq. ft. leased; therefore, another ±1,696 sq. ft. is needed to achieve market occupancy. 

 

 

NRA 

Sq. ft. 

 

 

Market 

Occupancy 

 

Stabilized 

Occupancy 

(sq. ft.) 

 

Currently 

Leased 

(sq. ft.) 

 

To Be 

Leased 

(sq. ft.) 

11,477 

X 

91% 

= 

10,444 

- 

8,748 

= 

1,696 

 

We calculate lost rent, holding costs and leasing commission over the stabilization period to conclude a total 

lost opportunity. Our market rent investigation concluded fair market rent at $14 per sq. ft., indicating a total 

lost rent of $23,744. The lease is likely gross plus utilities with no reimbursements for utilities over the 

stabilization period, which is estimated at $1.50 per sq. ft. for in-unit utilities, or $2,544. The leasing 

commission is based on leasing the ±1,696 sq. ft. at market rent of $14 per sq. ft. for 5 years with 6% 

commission, or $7,123. The total lost opportunity is calculated at $33,411. 

 

 

This lost opportunity is deducted from the as-stabilized value to conclude an as-is leased fee value of 

$730,000 with an effective date of January 9, 2026. All conclusions are based on extraordinary assumptions 

stated on Page 6. 

$730,000 

Seven Hundred Thirty Thousand Dollars 

As Is Leased Fee 

1/9/2026

34 

 

Reconciliation and Final Value Conclusion 

Two approaches to value were used in developing an estimate of the value of the leased fee interest in the subject 

as follows: 

 

Cost Approach 

 

 

 

Income Approach 

As Stabilized Leased Fee 

2/1/2027 

$765,000 

Sales Comparison Approach 

As Stabilized Leased Fee 

2/1/2027 

$800,000 

 

 

The subject property is an office property which is encumbered by multiple leases. Therefore, we appraised 

the leased fee interest in the subject. Also, the property is currently experiencing above-market vacancy 

levels and is not stabilized. We develop the income and sales comparison approaches to value the as-

stabilized condition assuming market occupancy levels. 

 

The subject’s building improvements were originally constructed in 1978 and are 48 years old. Estimating 

depreciation in older structures becomes unreliable rendering the cost approach not applicable in this 

appraisal assignment. 

 

The income approach is a reliable method in determining the value of the leased fee interest. The leases 

were reviewed to identify contract rent, lease terms, rent escalations and renewal options. A market rent 

investigation was conducted for similar space in the market and determined that contract rent is reasonable. 

Yield capitalization was used to reflect the contract rent with rent escalations and renewal options. A 5-year 

holding period was established, and the contract rent and escalations were projected over this holding period 

in a discounted cash flow analysis for a total rental income per period. 

 

The lease is gross plus utilities which are billed direct to tenants without reimbursement of other operating 

expenses. A market vacancy was applied to establish an effective gross income for each year in the holding 

period. Then, expenses were deducted from the effective gross income for each year in the holding period to 

derive an annual cash flow. An appropriate discount rate was applied to discount each annual cash flow to 

present value. Lastly, a terminal cap rate was applied to the 6th year cash flow and discounted to present 

value. The present value of the income stream and the residual value were added to conclude an as-

stabilized leased fee value of $765,000 via yield capitalization with an estimated stabilization date of February 

1, 2027. 

 

The sales comparison approach was also developed to value the subject property’s as-stabilized condition. 

Recent sales of similar office properties were researched in the market. The six most similar sales were 

further analyzed in an adjustment grid with adjustments for dissimilarities. The trend in adjusted values was 

applied to the subject property to conclude an as-stabilized leased fee value of $800,000 via the sales 

comparison approach with an estimated stabilization date of February 1, 2027. 

 

Lastly, we derive an as-is value based on the subject’s current condition. Total lost opportunity of lost rent, 

holding costs and leasing commissions were calculated over the stabilization period. This total lost 

opportunity was deducted from the as-stabilized value to conclude an as-is leased fee value of $730,000 with 

an effective date of January 9, 2026.

35 

 

The income and sales comparison approaches were developed to value the subject property’s as-stabilized 

condition. The subject has current leases with varying expiration dates over the next 4 years, and the contract 

rent is considered reasonable based on our rent investigation. The likely user is a local investor seeking a 

stable return from a leased property. The income approach closely reflects the process a prospective 

purchaser would use to derive a potential purchase price. The sales comparison approach has an adequate 

number of recent sales to support the value as well. As a result, we consider the value from our income 

approach in determining a final value conclusion of the leased fee interest with full support from the sales 

comparison approach. All conclusions are based on extraordinary assumptions stated on Page 6. 

 

It is my opinion that the Value of the Leased Fee Interest in the subject, based on conditions evident in the 

current market is: 

$730,000 

Seven Hundred Thirty Thousand Dollars 

As-Is Leased Fee 

1/9/2026 

 

 

$765,000 

Seven Hundred Sixty-Five Thousand Dollars 

As Stabilized Leased Fee 

2/1/2027 

 

 

 

 

Exposure Period 

Exposure Time is defined in the Dictionary of Real Estate, Fifth Edition as follows: 

 

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 upon on 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 estimate of 

exposure time should be based on information gathered through the sales verification process and may be 

expressed as a range. Exposure time is different for various types of real estate and under various market 

conditions. The reasonable exposure period is a function of price, time, and use not an isolated estimate of 

time alone. 

 

Exposure time is estimated by speaking with area brokers and reviewing recent sales of similar properties for 

Days On Market. This information and considering recent market conditions, the Exposure Period for the 

subject property is estimated at 9 to 12 months.

36 

 

General Assumptions 

This appraisal report has been made with the following general assumptions: 

 

➢ 

No responsibility is assumed for the legal description provided or for matters pertaining to legal or title 

considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 

 

➢ 

The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 

 

➢ 

Responsible ownership and competent property management are assumed. 

 

➢ 

The information provided by others is believed to be reliable, but no warranty is given for its accuracy. 

 

➢ 

All engineering studies are assumed to be correct. The plot plans and illustrative material in this 

report are included only to assist the reader to visualize the property. 

 

➢ 

It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures 

that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the 

engineering studies that may be required to discover them. 

 

➢ 

It is assumed that the property is in full compliance with all applicable federals, state and local 

environmental regulations and laws unless the lack of compliance is stated, described and considered in the 

appraisal report. 

 

➢ 

It is assumed that the property conforms to all applicable zoning and use regulations and restrictions 

unless non-conformity has been identified, described and considered in this appraisal. 

 

➢ 

It is assumed that all required licenses, certificates of occupancy, consents and other legislative or 

administrative authority from any local, state or national government or private entity or organization have 

been or can be obtaining or renewed for any use on which the opinion of value contained in this report is 

based. 

 

➢ 

It is assumed that the use of the land and improvements is confined within the boundaries or property 

lines of the property described and that there is no encroachment or trespass unless noted in the report. 

 

➢ 

Unless otherwise stated in this report, the existence of hazardous material, which may or may not be 

present on the property, was not observed by this appraiser. The appraiser has no knowledge of the 

existence of such materials on or in the property. The appraiser, however, is not qualified to detect such 

substances. The value estimate is predicated on the assumption that there is no such material on or in the 

property that would cause a loss in value. No responsibility is assumed for any such conditions or for any 

expertise or engineering knowledge required discovering them. The client is urged to retain an expert in this 

field, if desired. 

➢ 

Any proposed improvements are assumed to have been completed unless otherwise stipulated, so 

any construction is assumed to conform with the building plans referenced in this report. 

 

➢ 

The appraiser assumes that the reader or user of this report has been provided with copies of 

available building plans and all leases & amendments, if any, that encumber the property. 

 

➢ 

No legal description or survey was furnished, so the appraiser used the municipality’s plat to ascertain 

the physical dimensions and acreage of the property. Should a survey prove this information to be 

inaccurate, it may be necessary for this appraisal to be adjusted. 

 

➢ 

The forecasts, projections and operating statements contained herein are based on current market 

conditions, anticipated short-term supply and demand factors and a continued stable economy. These 

forecasts are, therefore, subject to change with future conditions.

37 

 

General Limiting Conditions 

This appraisal report has been made with the following general limiting conditions. 

 

➢ 

Any allocation of the total value in this report between the land and improvements applies only under 

the stated program of utilization. The separate value allocations for land and buildings must not be used in 

conjunction with any other appraisal and are invalid if so used. 

 

➢ 

Possession of this report, or a copy thereof, does not carry with it the right of publication. 

 

➢ 

The appraiser by reason of this appraisal is not required to give further consultation, testimony, or be 

in attendance in court with reference to the property in question unless arrangements have been previously 

made. 

 

➢ 

Neither all nor any part of the contents of this report (especially any conclusions as to value, the 

identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public 

through advertising, public relations, news, sale, or other media without prior written consent and approval of 

the appraiser. 

 

➢ 

The Americans with Disabilities Act (ADA) became effective January 26, 1992. This appraiser has not 

made a specific compliance survey or analysis of the property to determine whether or not it is in conformity 

with the various detailed requirements of ADA. It is possible that a compliance survey of the property and a 

detailed analysis of the requirements of the ADA would reveal that the property is not in compliance with one 

or more of the requirements of the act. It so, this fact could have a negative impact on the value of the 

property. Since the appraiser has no direct evidence relating to this issue, possible noncompliance with the 

requirements of ADA was not considered in estimating the value of the property. 

 

➢ 

Any opinion of value provided in this report applies to the entire property, and any proration or division 

of the total into fractional interests with invalidate the opinion of value, unless such proration or division of 

interests has been set forth in this report. 

 

➢ 

Absolutely no liability is assumed for errors or omissions except for corrections in the appraisal report 

at the author’s expense. The mechanical and electrical have been visually inspected. They have not been 

tested, but are assumed to be in proper working order and capacity. Appropriate experts should check this. 

The roof and insulation are not warranted to be adequate, except as noted in the description of property. 

 

➢ 

The valuation contained herein is not valid if any hazardous items are found in, on or near the subject 

property and not stated within the appraisal report, including but not limited to the presence of substances 

such as asbestos products, urea-formaldehyde foam insulation, radon gas, lead or lead based products, and 

toxic waste contaminants. No responsibility is assumed for any such conditions, or for any expertise or 

engineering knowledge required to discover them. 

 

➢ 

No environmental impact study has been ordered or made by the appraiser(s). Full compliance with 

applicable federal, state and local environmental regulations and laws is assumed unless otherwise stated, 

defined and considered in this report. It is also assumed that all required licenses, consents, or legislative or 

administrative authority from any local, state, or national government or private entity organization either 

have been or can be obtained or renewed.

38 

 

Subject Photographs 

 

 

 

North side of building 

 

 

 

Main entrance 

 

 

 

East side of building 

 

 

 

West side of building 

 

 

 

South side of building 

 

 

 

Handicap ramp

39 

 

 

 

 

 

Road sign 

 

 

 

Frontage along Aurelius Road 

 

 

 

Side parking area 

 

 

 

Rear parking area 

 

 

 

South lot line 

 

 

 

North lot line

40 

 

 

 

 

 

Rear of site 

 

 

 

Common stairs 

 

 

 

Typical common restroom 

 

 

 

Maintenance room 

 

 

 

Typical furnace 

 

 

 

Total Health Dental unit

41 

 

 

 

 

 

Total Health Dental unit 

 

 

 

Total Health Dental unit 

 

 

 

Total Health Dental unit 

 

 

 

Total Health Dental unit 

 

 

 

Total Health Dental unit 

 

 

 

Total Health Dental unit

42 

 

 

 

 

 

Total Health Dental unit 

 

 

 

Total Health Dental unit 

 

 

 

Total Health Dental unit 

 

 

 

Total Health Dental unit 

 

 

 

 

Total Health Dental unit 

 

 

 

Elizabeth Howard unit

43 

 

 

 

 

 

Hubbell, Roth & Clark unit 

 

 

 

Hubbell, Roth & Clark unit 

 

 

 

Hubbell, Roth & Clark unit 

 

 

 

Hubbell, Roth & Clark unit 

 

 

 

Hubbell, Roth & Clark unit 

 

 

 

Hubbell, Roth & Clark unit

44 

 

 

 

 

 

Tracey Hernley unit 

 

 

 

Tracey Hernley unit 

 

 

 

Tracey Hernley unit 

 

 

 

Tracey Hernley unit 

 

 

 

Tracey Hernley unit 

 

 

 

Tracey Hernley unit

45 

 

 

 

 

 

Vacant unit 

 

 

 

Vacant unit 

 

 

 

Vacant unit 

 

 

 

Vacant unit 

 

 

 

Vacant unit 

 

 

 

Vacant unit

46 

 

 

 

 

 

Vacant unit 

 

 

 

Looking northerly on Aurelius Road 

 

 

 

Looking southerly on Aurelius Road

47 

 

Zoning 

 

 

 

 

UBJECT 

Br TRY 

Zoning (M) 

A-1- Agriculture 

C-1- Low Impact Commercial 

C-2- General Business 

C-3- Highway Service 

A - Industrial Assembling 

M - Industrial Manufacturing 

P 

- Industrial Park 

R - Industrial Research 

W 

- Industrial Warehouse 

PP - Public Property 

PD - Planned Development 

IB 

©D-2- Planned Development 

R-1A- One Fam Rural Res 

Il 

R-1B- One Fam Low Den Res 

R-1C - One Fam Med Den Res 

R-1D- 1 and 2 Fam High Den Res 

I 

R-1E- One Fam High Den Res 

IB 

R”M- 

Muki-Fem Res 

RM-1 - Multi-Fam Res 

IB TC- Town Center 

47

48 

 

 

 

fection 5.13 - Town Center District (10)] 

% 

a 

[=] 

5.13.1 Intent and purpose. The Town Center District is intended to provide and promote attractive development while at the same time protecting and 

maintaining existing mature and/or historic areas of the community. 

To achieve this objective, the Town Center District allows a blend of compatible residential and commercial uses. Residential and commercial uses may be 

concurrent within the same building. 

5.13.2 Exclusive zoning district. Town Center zoning classifications shall be restricted to the following areas: 

1) 

Cedar Street - Both sides from Holt Road north to Aurelius Road. 

2) 

Holt Road - North side from Aurelius Road to Thorburn Street; south side from Aurelius Road to Michael Street. 

3) Aurelius Road - Both sides from Holt Road to Cedar Street. 

4) 

DeCamp Street - Both sides between Aurelius Road and Cedar Street. 

5) 

North Street - Both sides between Aurelius Road and Cedar Street. 

6) 

Center Street - Both sides between DeCamp Street and North Street. 

7) 

Any property shown as "Community Activity Center" on the Future Land Use Map within the current Delhi Township Master Plan. 

5.13.3 Uses permitted by right. The following uses are permitted by right within the Town Center District: 

1) 

One- and two-family dwellings. 

2) 

Professional offices. 

3) 

Retail establishments and personal services. 

4) 

Specialty grocery, food or beverage shop. 

5) 

Full-service and quick-service restaurant, coftee shop, pastry shop, bakery, or delicatessen. 

6) 

Pharmacy or drugstore. 

7) 

Art gallery, shops and studios. 

8) 

Beauty salon, day spa, hair salon or similar. 

9) 

Pet grooming, pet stores and similar. 

10) Dance studio, martial arts studio or similar. 

5.13.4 Uses permitted under special conditions. The following uses of land and/or structures may be permitted, subject to the conditions listed: 

1) Antique stores: 

All displays and sales must be conducted within a fully enclosed building. No chemical stripping or refinishing of antiques and/or 

furniture shall be permitted on the premises. 

2) 

Funeral homes: Subject to section 8.2.4 Site development requirements for institution. 

3) 

Loft style dwelling units may be permitted on a second or higher story within commercial/office buildings, provided that, each unit contains a 

minimum living area, as follows: 

a. 

Efficiency units shall contain a minimum of four hundred (400) square feet of living area: 

b. One-bedroom units shall contain 

a minimum of five hundred (500) square feet of living area; 

c. Two-bedroom units shall contain a minimum of six hundred fifty (650) square feet of living area, and that for each additional room thereafter 

an additional two hundred (200) square feet of living area shall be required. 

4) 

One (1) on-site use wind energy systems and anemometer tower: Subject to the requirements of section 6.2.2.1. 

5) 

Outdoor patio or sidewalk dining and/or drinking establishments in conjunction with a properly zoned and approved use within the Town Center 

District. The following conditions will apply: 

a. 

If the activity is to occur within the road right-of-way a permit or license from the Ingham County Road Department may be required by that 

office. 

48

49 

 

 

 

5.1 

1 

2 

3 

4) 

5) 

6) 

b. The serving of alcoholic beverages outdoors is regulated by the State ot Michigan Liquor Control Commission. Evidence ot the MLCC's approval, 

as appropriate, shall be provided to the director of community development. 

c. 

Asite plan shall be submitted and approved pursuant to section 3.3 of this Ordinance for the patio or sidewalk dining and/or drinking 

establishment. 

3.5 Uses authorized by special use permit. 

Multiple-family dwellings: Multiple-family dwellings may be allowed within the Town Center District following issuance of a special use permit as 

regulated in article VIII. Such multiple dwellings must be unusual and/or different concept from the common multiple dwelling plan and project 

such as, but not limited to, senior citizens housing, medically assisted living and service club developments. 

Animal day care (even when it is a service offered by another pet related business) and veterinary clinics with or without outdoor areas for housing 

or keeping animals approval conditions in section 5.9.4. 

a. 

No more than twenty (20) dogs are permitted. 

Boarding houses, boutique hotels and bed and breakfast facilities. 

Buildings exceeding thirty-five (35) feet in height 

Commercial buildings exceeding fifteen thousand (15,000) square feet in size. 

Multi-level or raised parking areas, ramps or lots; a parking area that is not a typical surface lot. 

7) Theaters for performing arts, movies or similar. 

8 

B 

Alcohol drinking establishments, bars, nightclubs and similar. 

.13.5.1 Uses not permitted in the TC Zoning District. 

1) 

Secondhand and pawn stores are not permitted within the TC District, except those stores that sell antiques pursuant to subsection 5.13.4 1) 

above. This provision is not intended to prohibit stores that sell merchandise on consignment. 

2) 

Dollar stores, payday advance, rent-to-own furniture stores or similar operations. 

3) 

Adult motion picture theaters, adult bookstores or massage parlors as identified by subsection 8.6.3(8). 

4) 

Mobile home parks. 

5.13.6 Site development requirements. 

1 

Minimum lot area - Five thousand (5,000) square feet. 

2 

Minimum lot width - Fifty (50) feet along the road on which the property fronts. 

3) 

Yards: 

Front yard: No minimum dimensions. 

Side yard: Five (5) feet minimum, unless adjacent property is also zoned Town Center in which case no side yard setback shall be required. 

Rear yard: Twenty-five (25) feet when abutting a property that is zoned R1-A, R1-B, R1-C or R1-D. If subject site abuts a property that is zoned RM, 

RM-1, RM-2, TC, C-1, C-2, C-3, A-1, IW, IR, IA, IM, IP or PP, the rear yard setback may be reduced to ten (10) feet. 

4) 

5) 

6] 

Maximum building height without a special use permit pursuant to subsection 5.13.5 4) above: Thirty-five (35) feet. 

Signs may be permitted as provided in article VI, section 6.9. 

Off-street parking: Off-street parking shall be provided as is required in section 7.1.8. All parking must be hard surface and located behind the front 

building line. 

49

50 

 

 

 

 

11) 

8) 

9 

Figure 1: Parking Area Location 

/ ~ 

7) 

Buildings shall be sited such that they front on the roadway, with parking and service areas located in the rear. The development objective is that 

each building will contribute to an attractive streetscape that is a part of a recognizable "downtown" area and be of a scale and type that is typically 

associated with same. 

~ 

Undesireable 

Site 

Figure 2: Site Layout 

Buildings shall be constructed of high-quality materials such as brick, stone, masonry or other quality siding and roofing materials. The use of false 

fronts, non-durable surfaces, or other "quick fix" type treatments will not be permitted. 

Whenever feasible, shared driveways shall be used to provide access to multiple properties. 

10) 

Fencing: Within the Town Center (TC) zoning district shall be regulated as follows: 

1. During site plan review: 

a. 

Fencing may be required along the entire length of a property line whenever a commercial development abuts property that is zoned R-1A, 

R-1B, R-1C, R-1D, R-1E, RM, RM-1 or RM-2. 

2. 

Fencing installed at the option of the property owner may be constructed on a Town Center site, provided that it meets the following 

requirements: 

a. 

Fencing shall not exceed six (6) feet in height. 

b. 

All provisions of subsections 6.2.4(2)(d) through 6.2.4(6) shall also apply. 

Human scale: All development and redevelopment of buildings and sites shall be constructed in a manner that creates and preserves human scale 

development. Human scale is defined as the proportional relationship of the physical environment (buildings, trees, parking lots, streets, etc.) to 

human dimensions. When components in the built environment are ordered in such a way that people feel comfortable, then human scale has 

most likely been achieved. By contrast, a place that is out of human scale, either too small or too large, will tend to make people feel 

uncomfortable. The reaction is to avoid such a place or to move through it quickly. Significant buildings and sites use monumental scale to create a 

sense of importance. In these cases, the human scale elements are often incorporated into the project as well. Human scale can be further 

reinforced by the choice of materials, textures, patterns, colors and details. 

50

51 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1. 

Characteristics of human scale development are as follows: 

a. 

The dimensions of building height and width, street width, streetscape elements, 

building setback, and other elements are combined so that they establish a 

comfortable realm for people to move around in and interact in. The dimensions of 

human interaction govern the design rather than the dimensions of vehicular 

circulation and convenience. 

b. 

Buildings are arranged to enclose 

YE, 

of 

and define space. This may 

include locating buildings close to 

a sidewalk, creating spatial 

definition. 

c. 

Buildings have limited height at 

pedestrian paths and sidewalks. 

Taller buildings have upper stories 

that are setback. 

d. 

Building articulation and design details reduce the perceived mass of large buildings. Elements such as openings at street level, decorative 

elements that mark floor heights such as cornices, porches and awnings are used to break the building down to human dimensions. 

d. 

Building articulation and design details reduce the perceived mass of large buildings. Elements such as openings at street level, decorative 

elements that mark floor heights such as cornices, porches and awnings are used to break the building down to human dimensions. 

e. 

Residential forms and proportions are used on commercial and office buildings next to residential areas 

f. 

Street trees with protective canopies enclose and define the streetscape. 

g. 

Complete streets infrastructure is installed when appropriate 

h. 

Streetscape elements such as sidewalks wide enough for comfortable pedestrian movement, distinctive 

sidewalk paving, pedestrian-scale streetlights and other fixtures are used to relate to the human 

dimension. 

(Ord. 

No. 39.53, 12-21-93; Ord. 

No. 39.73, 7-7-98; Ord. 

No. 39.106, 1-18-05; Ord. No. 

39.111, 

5-4-05, eff. 5-15-05; Ord. No. 39.124, 

3-7-06; Ord. No. 39.136, 6-5-07; Ord. No. 39.145, 11-20-07; Ord. No. 39.155, § VIII, 2-16-10; Ord. 

No. 39.161, § 

|, 8-6-14) 

51

52 

 

Property Information 

 

Property Information 

TRE, 11:13 AM 

Parcel Number - 33-25-05-15-475-009 

| Daihi Charter Township | BSE 

Oring 

2101 AURELIUS ROAD 

HOLT, bil 43842 

[3 

=» 

Parcel #33-20-05-15-479-009 

Account Number: 000Z-00690-01-1 

Property Owner; HOLT BLUISINESS CENTER, INC 

Owner and Taxpayer Information 

HOLT BUSINESS CENTER, INC 

CHD SUSAN 5 MAPLES 

[Pwmer 

207 AURELIUS ROAD, STE 

HOLT, hil 48842 

HOLT BUSINESS CENTER, INC 

Tapayer 

CID SUSAN § MAPLES 

ZI AURELIUS ROAD, STE 

HOLT, hil 48842 

General Information for Tax Year 2025 

Property Class 

201 COMMERCIAL-IAPROVED 

Schaal District 

HOLT PUBLIC SCHOOLS 

MAP # 

15-26-36 

USE 

m 

SPLITIDEL 

Mar Availabe 

REMTAL 

Hor Avataive 

Historical District 

Mot Avaliable 

REVIEW 

Mar Avalaiie 

unit 

05 DELHI CHARTER TOWNSHIP 

Mggessed Value 

§423700 

Taxable Value 

5366277 

Sete Equalized Value 

5423700 

Date of Last Mame Change 07/22/2014 

Matas 

Mot Avaliable 

Cantus Block Group 

Nar Available 

Exemption 

Mo Data fo Display 

Principal Residence Exemption Information 

Effective Dale 

Fir Dara ro Display 

Principal Residence Examplian 

June 1st 

2025 

0.0000% 

Previous Year Information 

ear 

MBCOR Assessed 

Final SEV 

2024 

$423,700 

S423,700 

2023 

£302,800 

£392,800 

2022 

$364,300 

$364,300 

Land Information 

Zaning Code 

Far Avalaiie 

Land Value 

525,200 

Renaissance Zone 

Ne 

ECF Neighborhood 

COM = GEN OFFICE NBHD 

LE BlpROS 

Ip 

nments Na Data fo Display 

® 

TEEGRDINUING to use thisgepbsite you agree fo the 

, 

Final 

Lele) 

Final Taxable 

$355,264 

$338,347 

$322,238 

hittpsivesra Esaonine. com/Site Search/FropertyDetaik PSearch Type=1 Auid=43585 earch Texi=2 101 +aurelisE Pageindes= JAR eferenceley=33-25-08-... 

112 

52

53 

 

 

1ITI26, 19:13 AM 

Parcel Humber 

- 33.26-05.15-4 78-009 

| Dedhi Charter Township 

| BSEA Online 

Land Improvements 

£20818 

fanalssance 

Zone 

Expiration Date 

No Data fo Display 

Mortgage Code 

Na Data to Disgpiay 

Maighborhaod Entarprise 

Ne 

Zona 

Lats] 

Frontage 

Depth 

Lot 

E000 ft 

REIN 

Legal Description 

10 15--4, 15-07-41 COM AT SE COR OF SEG 15, TH NOT04' 400 ALG E SEC LN B52 FT TO POE, 

TH S548 

35 W 320.33 FT, TH MOTD 40°W BLL 

WE SEC LN 160 FT. TH NBES48735°E 326.93 FT 

E SEC LN, TH SOT04'40°E ALG E LN 160 FT TO POE, SEC 15, TINR2W 121 AT MIL. 

Land Division Act Information 

Date 

of Last Split'Combing 

Mo Data fo Display 

Date Foem Filed 

Mo Data fo Display 

Date Created 

No Data ta Display 

Acreage of Parant 

0.00 

Split Number 

o 

Parent Parcel 

Mo Data fo Displey 

Humber 

of Spits Left 

1] 

Unallocated 

Div.s of Parent 

0 

Unalloeated Div.s 

a 

Transferred 

Rights Wera Transfarred 

Mor Available 

Courtesy Split 

Not Available 

Sale History 

Sale Date 

Sale Price Instrument Grantor 

Grantee 

Terms of Sale 

Liber/Page 

DEE/200 

$0.00 LC 

ZIMMERMAN, RICHARD L & HOLT BUSINESS 

2-NOT USEDFOTHER 

 3074-023960 

HESTER C 

CENTER, IMG 

0312/23 

$0.00 WD 

ZIMMERMAN, RICHARD L & ZIMMERMAN, HESTER 

 21-NOT USEDJOTHER 

 203- 

HESTER C 

C TRUST 

027B1y0Z7E12 

01'0iNee4 $575,000.00 LC 

ZIMMERMAN, RICHARD 

L 

& 

HOLT BUSINESS 

04-BUYERS INTEREST 2833-307 

HESTERC 

CENTER, INC 

ALE 

BTerms of Usa 

By continuing to use this website you agree to the, 

Ihitps- wear bsacniine. comfSiteSearch/ProperiyDetails TSearch Type=1 A uid=4 3585 earch Texi=2 101 +aurelusE Pageindes= 1AReferenceley=33.25.05- 

23 

53

54 

 

 

TIE, 11:94 AM 

Farcel Number - 33.25-005-15-3 T5009 

| Dedhi Charter Township | BS8A Online 

2101 AURELIUS ROAD 

HOLT, MI 45842 

i= 

=» 

Parcel #33-25-05-15-479-008 

Account Number: 0002-00650-01-1 

Progeery Qwmer; HOLT BLISINESS CENTER, INC 

Important Message 

A To print your Tax Bill, please scroll down below 

to the Tax History section and click/expand the year for the 

"Click here for your Tax Bill" option. 

Owner and Taxpayer Information 

Amount Due 

HOLT BUSINESS CENTER, INC 

C/O SUSAN 

S MAPLES 

Current Taxes: 

$22,020.94 

E01 ALRELILIS ROAD, STE 1 

HOLT, Ml 48842 

Owings 

HOLT BUSINESS CENTER, ING 

C/O SUSAN 5 MAPLES 

Taxpayer 

#101 AURELIUS ROAD, STE 1 

HOLT, MI 48842 

Legal Description 

10 15-86-4, 15-87-4) COM AT SE COR OF 5EC 15, TH NOT"04'30°W 

ALG E SEC LN BESEZ FT TO POB, 

TH SBE748°35"W 329.33 FT, TH NO1"04'40°W PLL 

WW E SEC LM 150 FT, TH NBB®42°35°E 326.33 FT E SEC LN, TH S01"04'407E ALG E LM WD FT TO FOE, SEC 15, TIHRIW 121 AT ML. 

Tax History 

Year Season 

Tatal Amount 

Total Paid Last Paid 

Total Due 

2025 Winter 

$22,820.88 

$0.00 

522,820.98 

2025 Summer 

$4,728.08 

$4,728.08 09/05/2025 

$0.00 

2024 Winter 

$22,358.27 

$22,358.27 02/05/2025 

£0.00 

3024 Summar 

$4,585.91 

£4,585 

91 09M3/2024 

£0.00 

2023 Winter 

$20,991.43 

$20,961.43 02/07/2024 

$0.00 

2023 Summer 

£4 357.54 

$4,367.54 0O/OS/2023 

£0.00 

BOF Winter 

$2054.87 

SI0)154 

BY 0232023 

0.00 

2022 Summer 

34,150.57 

54,158.57 DB/0B/2022 

$0.00 

2021 Winter 

$19,869 68 

£19,669.88 02/03/2022 

£0.00 

2021 Summer 

34,026.68 

$4,026.69 DBMZ2021 

$0.00 

Itiprs-tvesra bs aoniine. com Site SearchPropertyDetails Search Type=1&uid-2 3585 earch Fexi=2101 «aurelis&Pagednden= | AR eferencebey=33-25-08-... 

12 

54

55 

 

 

 

 

 

 

 

 

 

 

 

 

County 

Ingham 

City/Township/Village 

School District 

Delhi TOWNSHIP 

HOLT PUBLIC SCHOOLS 

2024 - Homestead Millage Rate 

2024 - Non-Homestead Millage Rate 

51.0546 

To estimate property taxes paid by the current owner, enter the 

$423700 

taxable value. For future owners, enter the SEV: 

calculate 

69.2346 

Estimated Property Tax For Principal Residence or 

Qualified Farm (Homestead) 

$21,632 

Estimated Property Tax For Second Home, Rental or 

Business (Non-Homestead) 

$29,335 

55

56 

 

Appraisal Contract 

 

 

 

 

 

Appraisal Contract 

1IS/26, 12:05 PI 

sbolingenlicharter 

ret - Webmail | CHTR 

Subject: RE: Restricted Appraisal Quote and Torn-around time 

Date: January 5, 2026 at 7:58 AM MST 

From: Lobb, Lisa<Lisa_Lobbi@cuone.org> 

To: shollinger@ charer.net 

Good moming Sharan, 

Please move forward with this appraisal order. Contact information is Cole Frageman 219-861-8087 

‘Thank you 

Lisa Lobb 

Commercial Loan Operations Manager 

Credit Union ONE 

248-584-5217 

lisa_lobbjcuone. 

org 

From: shollinger@charter.net <sbollinger@charternet= 

Sent: Friday, January 2, 2026 12:02 PM 

To: Lobb, Lisa <Lisa_Lobb@cuone 

orgs 

Subject: RE: Restricted Appraisal Quote and Turn-around 

time 

Happy Mew Year, Lisa! 

An appraisal of this property would develop the income and sales comparison approaches. As a multi-tenant 

property. we would appraise the leased fee mterest requiring review of several leases. Based 

on your 

comments, 

the property has a higher-than-market 

vacancy rate. An appraisal 

would derive an as-stabilized 

value; then conclude 

an as-is value by deducting lost rent over the stabilization 

period. 

A restricted appraisal can be completed on this property within 2 weeks for 51,700. Thank you for the 

‘opportunity to bid on this appraisal. | look forward to hearing from you. 

Sharon Bollinger 

Ihittprsciorad spacirum. netuserimalSUSCT 

1g% 3085481 

56

57 

 

Definitions 

 

Market Value 

The most probable price that 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 as of a specified 

date and the passing of title from seller to buyer under conditions whereby: 

 

a) buyer and seller are typically motivated; 

b) both parties are well-informed or well advised, and acting in what they consider their best 

interests; 

c) a reasonable time is allowed for exposure in the open market; 

d) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable 

thereto; and 

e) 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. 

 

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. 

 

Leased Fee Interest 

A freehold (ownership interest) where the possessory interest has been granted to another party by creation 

of a contractual landlord-tenant relationship. 

 

As-Is Value 

The estimate of the market value of real property in its current physical condition, use, and zoning as of the 

appraisal date. 

 

As-Complete Value 

The estimate of the market value of real property in a defined state of condition, use or zoning as of a specific 

future date. 

 

Extraordinary Assumption 

An assignment-specific assumption, as of the effective date regarding uncertain information used in an 

analysis, which, if found to be false, could alter the appraiser’s opinions or conclusions. Uncertain 

information might include physical, legal, or economic characteristics of the subject property; or conditions 

external to the property such as market conditions or trends; or the integrity of data used in an analysis. 

 

Hypothetical Condition 

That which is contrary to what exists but is supposed for the purpose of analysis. 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. 

Marketing Time 

An opinion of the amount of time it might take to sell a real or personal property interest at the concluded 

market value level during the period immediately after the effective date of an appraisal. Marketing time 

differs from exposure time, which is always presumed to precede the effective date of an appraisal. As is the 

case with reasonable exposure time, the concept of reasonable marketing time encompasses not only 

adequate, sufficient and reasonable time, but also adequate, sufficient and reasonable effort.

58 

 

Exposure 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 estimated based on an analysis of past events assuming a competitive and 

open market. 

Highest and Best Use 

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 four criteria that the 

highest and best use must meet are legal permissibility, physical possibility, financial feasibility and maximum 

productivity. 

 

Special Purpose Property 

A property with a unique physical design, special construction materials, or a layout that particularly adapts its 

utility to the use for which it was built. 

 

Disposition Value 

The most probable price that a specified interest in real property should bring under the following conditions: 

1. Consummation of a sale within a future exposure time specified by the client. 

2. The property is subjected to market conditions prevailing as of the date of valuation. 

3. Both the buyer and seller are acting prudently and knowledgeably. 

1. The seller is under compulsion to sell. 

2. The buyer is typically motivated. 

3. Both parties acting in what they consider their bets interests. 

4. An adequate marketing effort will be made during the exposure time specified by the client. 

5. Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable 

thereto. 

6. 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. 

 

Liquidation Value 

The most probable price that a specified interest in real property should bring under the following conditions: 

1. Consummation of a sale within a short time period. 

2. The property is subjected to market conditions prevailing as of the date of valuation. 

3. Both the buyer and seller area acting prudently. 

4. The seller is under extreme compulsion to sell. 

5. The buyer is typically motivated. 

6. Both parties are acting in what they consider to be their best interests. 

7. A normal marketing effort is not possible due to the brief exposure time. 

8. Payment will be made in cash in US 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 to anyone associated with the sale.

59 

 

Going Concern Value 

One of the premises in which the total assets of a business can be valued; the assumption that a company is 

expected to continue operating well into the future (usually indefinitely). Under the going concern premise, 

the value of a business as a going concern is equal to the sum of the value of tangible assets and the value 

of intangible assets, which may include the value of excess profit, where asset values are derived consistent 

with the going concern premise. 

 

1. The market value of all the tangible and intangible assets of an established and operating 

business with an infinite life, as if sold in aggregate, more accurately termed the market value of 

the going concern. 

2. The value of an operating business enterprise. Goodwill may be separately measured but is an 

integral component of going concern value when it exists and is recognizable. 

 

Investment Value 

The value of a property interest to a particular investor or class of investors based on the investor’s specific 

requirements. Investment value may be different from market value because it depends on a set of 

investment criteria that are not necessarily typical of the market. 

 

Value In Use 

The value of a property assuming a specific use, which may or may not be the property’s highest & best use 

on the effective date of the appraisal. Value In Use may or may not be equal to market value but is different 

conceptually.

60 

 

Sharon Bollinger 

Qualifications 

Certified General Real Estate Appraiser 

MI# 1205073587 

 

Summary of Experience 

 

Vantage Appraisal Services LLC, Owner 

 

 

 

 

 

 

2011-Current 

 

FRG Consultants, Appraiser 

 

 

 

 

 

 

 

2011-2014 

 

Bollinger Appraisal & Investment Company, Appraiser & Trainee 

 

 

2008-2012 

 

 

Bollinger Properties, Co-Owner & Property Manager (Genesee County) 

 

1999-2012 

 

86,000 sq. ft. of retail space 

68,000 sq. ft. of office space 

35,000 sq. ft. of industrial space 

 

Republic Bank, Regional Retail Manager/Vice President 

 

 

 

 

1995-1999 

 

Michigan National Bank, Various Management/Marketing/2nd VP 

 

 

1988-1995 

 

 

Types of Properties Appraised 

Office 

Apartments 

Industrial 

Medical Office 

Mobile Home Park 

Flex Space 

Office Condominium 

Assisted Living Facility 

Self-Storage Facility 

Retail-Fee Standing 

Funeral Home 

Hotel/Motel 

Retail-Strip Center 

Residential Subdivision 

Bowling Alley 

Convenience Store 

Mobile Home Park 

Church/School 

Gas Station 

Agricultural 

New Construction 

Restaurant 

Vacant Land 

Government Building/Lease 

Auto Repair/Car Wash 

Mixed Use Property 

Federal Land Acquisition 

 

 

Education 

Michigan State University; B.A. 

Certified General Real Estate Appraiser; MI# 1205073587 

 

 

Appraisal Classes 

Advanced Income Capitalization 

USPAP 

Advanced Concepts & Case Studies 

Michigan Law 

Appraisal Principles & Procedures 

Business Practice & Ethics 

Market Analysis and Highest & Best Use 

Appraising Distressed Real Estate 

Site Valuation & Cost Approach 

Forecasting Revenue 

Income Approach Part I & Part II 

Data Verification Methods 

Sales Comparison Approach 

Comparative Analysis 

Report Writing & Case Studies 

Residential Report Writing & Case Studies 

Real Estate Finance & Statistics 

Apartment Appraisal: Concepts & Applications 

Appraising Convenience Stores 

Hotel/Motel Valuation 

Appraising Medical Office Buildings 

Appraising Automobile Dealerships

61 

 

Sharon Bollinger 

Qualifications (Page 2) 

Certified General Real Estate Appraiser 

MI# 1205073587 

 

 

Locations of Experience by County (Michigan) 

Genesee 

Monroe 

Clinton 

Oakland 

Washtenaw 

Saginaw 

Macomb 

St. Clair 

Bay 

Wayne 

Shiawassee 

Isabella 

Livingston 

Jackson 

Alcona 

Lapeer 

Ingham 

Midland 

Clare 

Eaton 

Ogemaw 

 

 

Professional Affiliations 

 

 

 

 

 

 

 

 

 

 

Practicing Affiliate of the Appraisal Institute

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