CCU Appraisal Highlights - LoopNet

Pinnacle at Coastal Carolina 18-101-14 PHOTOGRAPHS OF THE SUBJECT

3

Subject Subject

Subject Subject

Subject Subject


4

Subject Subject

Subject Subject

Looking North on Highway 544 Looking South on Highway 544


5

Renderings


6


7

Pinnacle at Coastal Carolina 18-101-14 AREA ANALYSIS

19

AREA MAP


20

MOODY’S ECONOMY.COM AND ANALYZES THE MYRTLE BEACH-CONWAY-NORTH MYRTLE BEACH MARKET AS OF OCTOBER 2018

The subject is located in Horry County, which is part of the Myrtle Beach-Conway-North Myrtle Beach Metropolitan area.

Recent Performance. Myrtle Beach-Conway-North Myrtle Beach is racing ahead. After moving in lockstep with South Carolina and the U.S. in the first half of the decade, the tourism-dependent metro area has outperformed in key gauges such as job growth over the last three years. Though pivotal leisure/hospitality is holding its own, business/professional services along with education/healthcare have added the bulk of the net new jobs in the past six months. After a spike early in 2018, the jobless rate has resumed its descent, and the tight labor market is leading firms to increase wages. A spike in hourly earnings has reversed last year’s decline, but average pay falls well short of that statewide and nationally because of a high concentration of low-wage service jobs.

Consumer. Strong tourism and positive consumer fundamentals will help sustain above-average job growth in consumer services into the decade’s end. At almost 26%, the share of jobs in leisure/hospitality is the highest in the state and fifth highest in the U.S. Fortunately, MYB was largely spared from damage during Hurricane Florence, which also impacted the Carolinas after the peak tourist season. Although the storm caused widespread road closures and flooded some communities along the route to the beach, the negative impact on tourism and the economy will be modest. Thanks to greater nonstop service from budget airlines, including a new route from Denver, MYB is increasingly accessible for cost-conscious travelers, and the share of U.S. households that intend to take a vacation in the next six months is at an all-time high. Consumer services, especially retail and restaurants, will also benefit from more homegrown support. Population growth in MYB is stronger than anywhere else in the South.

Healthcare. The steady influx of migrants also bodes well for healthcare, a key source of mid-wage jobs. Retirees constitute the vast majority of new residents. The population of those age 65 or older soared 8% last year, the largest increase in the country. Medical providers will also expand in an effort to service an expanding working-age population with growing incomes. The under-65 population has risen by more than 2% in each of the last three years. As a result of the population explosion, MYB is underserved in medical services, with fewer healthcare workers per 1,000 residents than anywhere else in South Carolina. Medical providers are investing as a result. A new $23 million inpatient rehabilitation center in Little River will create 130 jobs, and Conway Medical Center is spending $12 million to expand its emergency services with a 36,000-square-foot facility slated to open in 2019.

Housing. With households forming much more rapidly than elsewhere, housing is poised to outperform in MYB. There has been some damage to the housing stock from Hurricane Florence, particularly in areas near the Waccamaw River, but federal and insurance money will enable homeowners to rebuild. Meanwhile, even though housing is expensive in MYB, the influx of retirees and strong investor demand will keep a floor under sales as mortgage rates rise and affordability erodes. While construction is gearing up, land is scarce, and house prices are forecast to rise more quickly than average in 2019.

Hurricane Florence will prove nothing more than a hiccup for Myrtle Beach-Conway-North Myrtle Beach, which will benefit from its close ties to the U.S. economy and exploding population and expand at an above-average rate this year and next. Strong domestic growth will drive robust tourist inflows and spending, while a wave of retiring baby boomers will fuel demand for healthcare and housing. MYB will remain an above-average long-term performer because of its strong demographics.


21


22


23


24


25

AREA DEMOGRAPHIC AND INCOME DATA The following data was obtained from MOODY’S ANALYTICS Précis® U.S. Metro South, September 2018. The full report is located in the Addenda, and contains additional information about the social, economic, governmental and environmental forces that influence value.

Source: MOODY’S ANALYTICS Précis® U.S. Metro South

Myrtle Beach-Conway-North Myrtle Beach, SC-NC2012 2013 2014 2015 2016 2017 INDICATORS 2018 2019 2020 2021 2022 2023

15.0 15.5 15.6 15.8 16.0 16.4 Gross metro product (C09$ bil) 17.2 18.1 18.7 19.7 20.7 21.70.8 3.3 0.8 1.0 1.3 2.4 % change 5.1 5.5 3.1 5.1 5.5 4.7

145.0 148.4 151.5 155.3 161.0 166.4 Total employment (ths) 171.4 176.5 178.4 177.9 182.2 186.41.5 2.3 2.1 2.5 3.6 3.4 % change 3.0 3.0 1.0 -0.3 2.4 2.3

10.6 8.9 7.5 7.1 6.0 5.1 Unemployment rate (%) 5.0 4.4 4.8 5.9 6.1 6.04.6 4.9 7.6 8.4 4.9 5.6 Personal income growth (%) 5.6 6.7 5.0 5.7 6.8 6.2

42.4 43.6 45.0 46.1 46.8 48.3 Median household income ($ ths) 50.2 51.7 52.6 53.6 55.3 56.9394 404 416 432 448 464 Population (ths) 478 492 506 520 535 5502.0 2.6 3.0 3.6 3.8 3.7 % change 3.0 2.9 2.8 2.8 2.9 2.97.4 10.3 12.0 15.2 17.0 17.0 Net migration (ths) 14.7 14.7 14.6 15.1 16.3 16.9

3,198 4,370 5,027 5,763 6,209 7,468 Single-family permits (#) 7,108 8,442 9,197 10,414 11,170 11,321359.0 568.0 419.0 391.0 316.0 1,119.0 Multifamily permits (#) 453.5 1,044.4 2,060.9 2,925.8 3,784.5 3,832.4

174 174 180 188 196 207 FHFA house price (1995Q1=100) 220 229 238 247 258 269

0

50

100

150

200

Total Employment (ths)

(1.00%)

1.00%

2.00%

3.00%

4.00%

% Change in Employment

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

Unemployment Rate

2.00%

4.00%

6.00%

8.00%

10.00%

Personal Income Growth


26

CONCLUSION Steady population growth, which will provide an ongoing source of demand for housing in the area, is expected to continue. The local economy is reasonably diversified and has maintained unemployment levels generally in-line with state and national averages. Over the long term, the outlook for the region is generally positive.

340360380400420440460480

Historic Population Growth (ths)

0

2,000

4,000

6,000

8,000

10,000

12,000

Single-Family Permits

440

460

480

500

520

540

560

Projected Population Growth (ths)

0

1,000

2,000

3,000

4,000

5,000

Multi-Family Permits

$0

$10

$20

$30

$40

$50

$60

Median Household Income (ths)

$0

$50

$100

$150

$200

$250

$300

Existing Home Price (ths)

Pinnacle at Coastal Carolina 18-101-14 NEIGHBORHOOD ANALYSIS

27

NEIGHBORHOOD MAP


28

INTRODUCTION A property is an integral part of its surroundings and must not be treated as an entity separate and apart from its surroundings. The value of a property is not found exclusively in its physical characteristics; physical, economic, political and sociological forces in the area interact to give value to a property. In order to determine the degree of influence extended by these forces on a property, their past and probable future trends are analyzed. Therefore, in order to form an opinion of the value of a property, an analysis is made of the area in which the property under study is found. This area is referred to as a neighborhood.

A neighborhood can be a portion of a city, a community or an entire town. It is usually an area which exhibits a fairly high degree of homogeneity as to use, tenancy and certain other characteristics. Homogeneity is a state of uniform structure or composition throughout. Therefore, in real estate terminology, a homogeneous neighborhood is one in which the property types and uses are similar. A neighborhood is more or less a unified area with somewhat definite boundaries. As a neighborhood's boundaries serve to limit the physical area that exerts germane influences on a property's value, the boundaries may indeed run concurrent with variations in prevailing land uses or physical characteristics.

LOCATION The subject is located on the westside of Highway 544 and approximately 1.5 miles from the center of CCU’s campus.

Coastal Carolina University is located in the city of Conway, South Carolina. Conway is the county seat of Horry County and is part of the Myrtle Beach metropolitan area. The population was 17,103 at the 2010 census, and had an estimated population in 2017 of 23,714.

Numerous buildings and structures located in Conway are on the National Register of Historic Places. Since the completion of the Main Street USA project in the 1980s, Conway's downtown has been revitalized with shops and bistros. Highlighting the renovation of the downtown area is the Riverwalk, an area of fine dining which follows a stretch of the Waccamaw River that winds through Conway.

Coastal Carolina University Coastal Carolina University is a public institution that was founded in 1954. It has a total undergraduate enrollment of 9,898, its setting is suburban, and the campus size is 633 acres. It utilizes a semester-based academic calendar. Coastal Carolina University's ranking in the 2019 edition of Best Colleges is Regional Universities South, 52. Its in-state tuition and fees are $11,536 (2018-19); out-of-state tuition and fees are $26,648 (2018-19)

Coastal Carolina University, or CCU, is located about 10 miles northwest of the Myrtle Beach resort area in South Carolina. The university offers more than 40 undergraduate majors and about 10 master's programs, including those in the Wall College of Business Administration. CCU is also home to an Osher Lifelong Learning Institute, which offers hundreds of courses at multiple locations for community residents to attend during the daytime or evening. Outside the classroom, CCU students can get involved in more than 150 campus organizations, play at the neighboring Hackler Golf Course or check out the beaches a few miles away


29

ACCESSIBILITY The site is accessible by Highway 544. In the subject’s immediate area Highway 544 is north-south 4 lane highway that is surrounded by retail, residential development, and vacant land.

The chart below details the subject’s proximity to major points throughout the area.

Major Point Distance from Subject Direction

Coastal Carolina University 1.6 ± Miles Northeast Highway-501 1.8 ± Miles East Downtown Conway 5.1 ± Miles North Conway-Horry County Airport 9.0 ± Miles Northwest Myrtle Beach International Airport 11.1 ± Miles Southeast Myrtle Beach Beaches 11.5 ± Miles Southeast Downtown Myrtle Beach 11.7 ± Miles Southeast Interstate-95 54.8 ± Miles Northwest

The major advantage of the subject’s location its proximity to the CCU campus and ease of access to state highways.

DEVELOPMENT Myrtle Beach is a coastal city on the East Coast of South Carolina. Ranked as the second fastest-growing metropolitan area in the country (per 2018 census estimates), Myrtle Beach is one of the major centers of tourism in South Carolina and the United States because of the city's warm subtropical climate and extensive beaches. As of the 2010 census, the population of the city was 27,109, and in 2016 the estimated population was 32,240. The Myrtle Beach metropolitan area had an estimated population in 2016 of 449,495

Myrtle Beach is the primary city in an area called the Grand Strand. The Grand Strand is a large stretch of beaches on the East Coast of the United States extending from Little River to Georgetown in the U.S. State of South Carolina. It consists of more than 60 miles along an essentially uninterrupted arc of beach land, beginning around the Little River and terminating at Winyah Bay.

The area has become a major tourist attraction along the Southeastern coast, attracting over ten million visitors each season. It is home to numerous hotels, golf resorts, and recreational centers, making it popular with families and college students during the summers and winters.


30

DEMOGRAPHICS The Site To Do Business is a service that provides demographic data, including historical, current and forecasted population estimates for a specified region. Patterns of development, density and migration are reflected in the population estimates. A survey of the subject area's population and growth rate is summarized in the following charts, followed by a map of the surveyed area.

Source: Site To Do Business

Summary 1 mile 2 mile 3 mile 1 mile 2 mile 3 milePopulation 5,947 15,039 21,774 6,657 16,605 24,144Households 2,370 5,545 8,241 2,675 6,198 9,220Families 1,249 3,153 4,873 1,401 3,501 5,419Average Household Size 2.31 2.42 2.44 2.31 2.42 2.44Owner Occupied Housing Units 1,369 3,587 5,629 1,554 4,029 6,320Renter Occupied Housing Units 1,000 1,959 2,612 1,121 2,169 2,901Median Age 30.2 31.3 35.2 32.1 34.0 38.0Population by Age 1 mile 2 mile 3 mile 1 mile 2 mile 3 mile0 - 4 4.3% 3.7% 3.9% 4.4% 3.7% 3.8%5 - 9 4.1% 3.8% 4.0% 4.1% 3.8% 3.9%10 - 14 4.3% 4.0% 4.2% 4.3% 4.0% 4.2%15 - 19 14.4% 16.8% 13.6% 13.9% 16.1% 13.2%20 - 24 16.8% 15.2% 13.8% 16.0% 14.3% 12.9%25 - 34 11.4% 10.2% 10.3% 10.3% 9.0% 9.0%35 - 44 8.2% 7.9% 8.4% 9.4% 9.0% 9.3%45 - 54 9.0% 9.3% 9.8% 8.7% 8.7% 9.3%55 - 64 9.1% 10.2% 11.4% 9.3% 10.6% 11.6%65 - 74 9.7% 10.7% 11.9% 9.5% 10.8% 12.3%75 - 84 6.4% 6.3% 6.7% 7.5% 7.6% 8.2%85+ 2.3% 2.0% 1.9% 2.6% 2.3% 2.3%Households by Income 1 mile 2 mile 3 mile 1 mile 2 mile 3 mile<$15,000 11.90% 10.00% 9.80% 9.80% 8.20% 8.00%$15,000 - $24,999 11.30% 10.90% 11.30% 9.40% 9.00% 9.30%$25,000 - $34,999 11.40% 10.60% 10.80% 10.50% 9.60% 9.70%$35,000 - $49,999 15.10% 15.00% 14.80% 14.70% 14.30% 14.10%$50,000 - $74,999 18.00% 20.10% 20.00% 18.80% 20.50% 20.60%$75,000 - $99,999 13.30% 13.70% 14.70% 15.20% 15.40% 16.80%$100,000 - $149,999 11.50% 12.60% 12.10% 14.00% 15.30% 14.80%$150,000 - $199,999 3.50% 3.60% 3.40% 3.70% 3.70% 3.60%$200,000+ 3.90% 3.70% 2.90% 4.10% 3.90% 3.10%Median Household Income $50,212 $53,078 $52,726 $55,602 $58,384 $58,364Average Household Income $68,610 $70,362 $68,219 $76,147 $78,116 $76,140Per Capita Income $27,182 $27,188 $26,971 $30,252 $30,170 $30,103

Demographics2018 2023


31



1 mile Radius Area State NationalPopulation 2.28% 1.25% 0.83%Households 2.45% 1.26% 0.79%Families 2.32% 1.13% 0.71%Owner HHs 2.57% 1.37% 1.16%Median Household Income 2.06% 2.16% 2.50% 2 mile Radius Area State NationalPopulation 2.00% 1.25% 0.83%Households 2.25% 1.26% 0.79%Families 2.12% 1.13% 0.71%Owner HHs 2.35% 1.37% 1.16%Median Household Income 1.92% 2.16% 2.50% 3 mile Radius Area State NationalPopulation 2.09% 1.25% 0.83%Households 2.27% 1.26% 0.79%Families 2.15% 1.13% 0.71%Owner HHs 2.34% 1.37% 1.16%Median Household Income 2.05% 2.16% 2.50%

Trends: 2018 - 2023 Annual Rate


32

As can be seen in the previous charts, with an average 2018 household income of $68,610 within a 1-mile radius, $70,362 within a 2-mile radius and $68,219 within a 3-mile radius, the subject’s immediate area is considered a middle to upper income area.

LIFE CYCLE A neighborhood’s life cycle usually consists of four stages:

• Growth - a period during which the neighborhood gains public favor and acceptance • Stability - a period of equilibrium without marked gains or losses • Decline - a period of diminishing demand • Revitalization - a period of renewal, redevelopment, modernization, and increasing demand

Source: The Appraisal of Real Estate, 14th Edition From 2018 to 2023, the population is projected to increase approximately 2.28% per year within a 1-mile radius around the subject, 2.00% per year within a 2-mile radius and 2.09% per year within a 3-mile radius. Due to this projected growth, the subject’s neighborhood appears to be in a growth stage of its life cycle.

NEIGHBORHOOD ANALYSIS CONCLUSION In conclusion, we have researched all germane influences that could possibly affect the value of properties in the area. This research did not produce any factors that could be classified as negative or undesirable. Accessibility, location, demographics and reputation have all been a positive influence. Finally, in our opinion, the neighborhood should experience continued growth due to the solid foundation that is currently in place.

Pinnacle at Coastal Carolina 18-101-14 MARKET ANALYSIS

33

MARKET ANALYSIS The following information was compiled from published sources and is used in conjunction with primary and secondary data to analyze the market trends impacting the value of the subject property.

NATIONAL STUDENT HOUSING MARKET - PWC According to the PwC Real Estate Investor Survey, 2nd Quarter 2018

A testament to the desirability of owning student housing assets, total sales in the past five years were double the number seen in the prior five years. From 2013 to 2017, a total of 1,237 student housing properties traded hands compared to 618 in the prior five–year period, as per Real Capital Analytics (RCA). As competition has intensified in this sector, its average overall cap rate has declined and sits at 5.88% this quarter, a 57-basis-point drop from the second quarter of 2014 when this sector debuted in the Survey.

While steady supply growth has contributed to an increase in trades, certain investors are wary of the new supply’s impact on pricing and rent growth. “Quality assets will retain their value, but others will struggle in an asset category that has few barriers to entry,” remarks an investor. In fact, the year-end 2017 average price per unit is down 3.8% from five years ago, as per RCA.

At the same time, this market’s average initial-year market rent change rate dips eight basis points this quarter. “Rent growth has leveled in most markets,” confirms an investor. Even in the face of steady new supply and slowing rent growth, the positives outweigh the negatives as investors foresee limited investment risk for this market over the next 24 months. (pg. 17)

Current Quarter Fourth Quarter 2017 Year AgoDiscount Rate (IRR) 6.00%-10.00% 6.00%-10.00% 6.00%-10.00%Average 8.05% 8.05% 8.18%

Overall Cap Rate (OAR) 4.50%-7.50% 4.50%-7.50% 4.50%-7.50%Average 5.88% 5.86% 6.02%

Residual Cap Rate 4.75%-7.50% 4.75%-7.50% 4.75%-7.50%Average 6.33% 6.30% 6.30%

Market Rent Change Rate 0.00%-5.00% 0.00%-5.00% 0.00%-5.00%Average 2.58% 2.66% 2.44%

Expense Change Rate 1.50%-3.00% 1.50%-3.00% 0.00%-11.00%Average 2.41% 2.41% 3.09%

Marketing Time Range 0-12 months 0-12 months 0-6 monthsAverage 4.0 3.9 3.4

National Market Yield Rates for Real Estate InvestmentsNational Student Housing Market

Second Quarter 2018

Source: PwC Real Estate Investor Survey, 2nd Quarter 2018


34

COASTAL CAROLINA UNIVERSITY Coastal Carolina University is a public comprehensive liberal arts institution that seeks to develop students who are both knowledgeable in their chosen fields and prepared to be productive, responsible, healthy citizens with a global perspective. To deliver on this commitment, Coastal Carolina recruits highly qualified and motivated students, faculty, and staff from the region, state, nation, and world to create a diverse and dynamic student-centered learning environment.

Because Coastal Carolina embraces the teacher-scholar model, it places primary emphasis on high quality teaching and engaged learning, and it supports faculty research, creative activities, and expert collaboration in the community, state, nation and world. This focus enables faculty and staff to mentor students in collaborative research, creative opportunities, and internships. To nurture this active learning community, Coastal Carolina maintains a broad range of contemporary technologies, programming, support services, and innovative course offerings and delivery methods. The result is alumni who are well prepared for professional careers or graduate programs in their chosen fields and who continue to be connected to Coastal Carolina.

Inspired by its founding in 1954 to serve the educational needs of the region, Coastal Carolina has a tradition of a strong liberal arts core. As such, Coastal Carolina commits its resources to building undergraduate and graduate degree programs of national and/or regional significance in the arts and sciences, business, humanities, education, and health and human services. Coastal Carolina fully embraces its leadership role as a regional center of economic and intellectual resources, lifelong learning, cultural and recreational opportunities, and athletic programs.

Coastal Carolina University offers baccalaureate degrees in 73 major fields of study. Among CCU's graduate-level programs are 25 master's degrees, two educational specialist degrees, and two doctoral programs: the Ph.D. in marine science: coastal and marine systems science, and the Ph.D. in education. The most popular undergraduate majors are marine science, management, exercise and sport science, and communication. CCU boasts a growing array of internship, research and international opportunities for students, as well as numerous online programs through Coastal Online.

The University comprises 115 main buildings on 621 acres, including the Coastal Science Center and the Burroughs & Chapin Center for Marine and Wetland Studies, located in the Atlantic Center on U.S. 501, and the General James Hackler Golf Course at Coastal Carolina University, a public 18-hole golf facility located adjacent to the campus. The University also offers courses at the Myrtle Beach Education Center, and in Litchfield and Georgetown. A 1,105-acre tract that includes a portion of Waties Island provides a natural laboratory for extensive study in marine science and wetlands biology on an Atlantic coast barrier island.

Coastal Carolina's athletic programs competed in NCAA Division I as a member of the Big South Conference, while the football team, which began play in 2003, competed in the NCAA Football Championship Subdivision (FCS). On September 1, 2015, Coastal Carolina announced it would leave the Big South Conference following the 2015–16 school year to transition to FBS-level football and the Sun Belt Conference. The university joined in all sports except for football starting July 1, 2016, with football joining in 2017. Women’s teams include: basketball, beach volleyball, cross country, golf, indoor track and field, lacrosse, soccer, softball, tennis, outdoor track and field, volleyball. Men’s varsity teams include: baseball, basketball, cross country, football (FBS), golf, soccer, tennis, outdoor track and field.


35

AXIOMETRICS REPORT FALL 2018

Source: AXIOMETRICS & U.S. News



36



0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2008 2010 2012 2014 2016 2018F 2020F 2022FEnrollment(L) Enrollment Growth(R)

0%5%10%15%20%25%30%35%40%45%50%

72.0%73.0%74.0%75.0%76.0%77.0%78.0%79.0%80.0%81.0%

2008 2010 2012 2014 2016 2018F 2020F 2022FFresh. Retention Rates(L) 6 Yr. Grad. Rates(R)


37

Key Takeaways 1. CCU’s student enrollments has shown steady growth for the past several years, increasing by about

30.9% in the past 10 years. Enrollment growth is expected to increase another 9.8% during the next five years.

2. CCU has no on campus student housing projects in the pipeline at this time. 3. In the past five years, privately owned student housing rent growth average 3.7% annually.

Source: AXIOMETRICS


38

Source: AXIOMETRICS

Source: AXIOMETRICS

Source: AXIOMETRICS

University Owned Beds as a % of Total Enrollment

29.6%28.0% 28.1% 27.1% 26.4%

37.8%36.2% 35.2% 34.7%

37.2% 38.6%

44.9% 43.9% 43.0% 43.4% 43.3% 43.3% 44.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Beds as % of Enrollment

Off-Campus Student Competitive Rent/Occ Trend

89.0%90.0%91.0%92.0%93.0%94.0%95.0%96.0%97.0%98.0%

-2.0%-1.0%0.0%1.0%2.0%3.0%4.0%5.0%

Rent Growth(L) Occupancy(R)

Pinnacle at Coastal Carolina 18-101-14

MARKET AN

ALYSIS

39


MARKET AN

ALYSIS

40

As can be seen in the above chart, besides the subject’s units, there are no new

student housing complexes planed.

There are no off campus student housing projects in the pipeline at this tim

e.

There are no competitive projects in the pipeline at this tim

e.

There are no on campus student housing projects in the pipeline at this tim

e.

Source: Axiom

etrics Inc.

University O

wned H

ousing Market - Student H

ousing (SH)

Disclaimer Notice: This report is prepared from

data believed reliable but not guaranteed by AXIO

ME

TRIC

S IN

C. and its directors, officers, em

ployees, and contractors, without verification or investigation. The facts and forecasts contained herein are not guaranteed to be com

plete or error-free. The forecasts expressed in this report are subject to change w

ithout notice. Use at your ow

n risk.

Pipeline Delivery Schedule

Off-C

ampus H

ousing Market - Student H

ousing (SH)

Off-C

ampus H

ousing Market - Student C

ompetitive (SC

)

(1) Distance refers to distance from

the University Boundary. (2) Property Status: U/L: Under construction/Lease up; UC: Under construction; P: Planned; SH-P: Planned Student Property; SH-W

ND: Student Property W

ould Not Disclose O

ccupancy Rate; SH-

U: Under Construction Student Property; SH-U/L: Under C

onstruction/Lease Up Student Property. (3) Bed counts in the delivery schedule are blank for properties that don't have unit mixes, estim

ated bed counts, or announced bed counts. (4) If the anticipated construction start date has not been confirm

ed, the property’s status will rem

ain “planned” until confirmed.


MARKET AN

ALYSIS

41

As can be seen in the above chart, in the past five years, privately ow

ned student housing rent growth average 3.7%

annually and occupancy is expected to rem

ain fairly high, averaging 96.0% annually over the next four years.

2018

University O

wned H

ousing and Tuition TrendsYear

20082009

20102011

20122013

20142015

20162017

2018F2019F

2020F2021F

2022FNum

ber of Beds

2,209

2,209

3,290

3,290

3,290

3,290

3,715

3,966

4,700

4,685

4,651

4,784

4,927

5,029

5,254

Occupied B

eds2,194

2,136

3,326

3,509

3,514

3,426

3,597

3,949

4,061

4,256

4,209

4,396

4,582

4,757

4,939

B

eds +/--

-

1,081

-

-

-

425

251

734

(15)

(34)

133

143

102

225

Net D

emand

(10)

(58)

1,190

183

5

(88)

171

352

112

195

(47)

188

186

175

181

Occupancy

99.3%96.7%

101.1%106.7%

106.8%104.1%

96.8%99.6%

86.4%90.8%

90.5%91.9%

93.0%94.6%

94.0%Vacancy

0.7%3.3%

-1.1%-6.7%

-6.8%-4.1%

3.2%0.4%

13.6%9.2%

9.5%8.1%

7.0%5.4%

6.0% Vacancy C

hange0.5%

2.6%-4.4%

-5.6%-0.2%

2.7%7.3%

-2.7%13.2%

-4.4%0.4%

-1.4%-1.1%

-1.6%0.6%

Room

$4,630$4,650

$4,750$5,000

$5,000$5,040

$5,440$5,440

$5,440$5,440

$5,440$5,532

$5,687$5,938

$6,163M

onthly Rent Level by B

ed$514

$517$528

$556$556

$560$604

$604$604

$604$604

$615$632

$660$685

Room

Grow

th5.7%

0.4%2.2%

5.3%0.0%

0.8%7.9%

0.0%0.0%

0.0%0.0%

1.7%2.8%

4.4%3.8%

Board

$2,450$2,550

$2,600$2,700

$2,700$2,820

$3,000$3,250

$3,450$3,700

$3,889$4,029

$4,146$4,291

$4,419 Board G

rowth

6.5%4.1%

2.0%3.8%

0.0%4.4%

6.4%8.3%

6.2%7.2%

5.1%3.6%

2.9%3.5%

3.0%

Com

bined Room

& B

oard$7,080

$7,200$7,350

$7,700$7,700

$7,860$8,440

$8,690$8,890

$9,140$9,329

$9,561$9,833

$10,228$10,583

Room

& Board G

rowth

6.0%1.7%

2.1%4.8%

0.0%2.1%

7.4%3.0%

2.3%2.8%

2.1%2.5%

2.8%4.0%

3.5%

TuitionIn-State

$8,570$8,870

$9,310$9,680

$9,680$9,680

$10,060$10,450

$10,796$11,020

$11,229$11,510

$11,924$12,282

$12,589 C

hange14.0%

3.5%5.0%

4.0%0.0%

0.0%3.9%

3.9%3.3%

2.1%1.9%

2.5%3.6%

3.0%2.5%

Out-O

f-State$18,010

$18,690$20,190

$21,480$21,970

$22,690$23,400

$24,060$24,940

$25,692$26,422

$27,267$28,358

$29,350$30,231

Change

9.1%3.8%

8.0%6.4%

2.3%3.3%

3.1%2.8%

3.7%3.0%

2.8%3.2%

4.0%3.5%

3.0%Fees

$80$80

$80$80

$80$80

$80$80

$80$180

Privately-Ow

ned Housing Trends

Year2008

20092010

20112012

20132014

20152016

20172018F

2019F2020F

2021F2022F

Occupancy

92.3%91.8%

92.8%93.8%

95.0%94.3%

96.4%95.6%

96.5%95.7%

96.2%96.5%

96.0%95.4%

Rent Level by B

ed$412

$393$414

$445$450

$453$485

$508$532

$544$549

$561$583

$601$617

Rent G

rowth

-4.8%5.0%

6.9%1.2%

0.8%6.5%

4.6%4.4%

2.3%0.8%

2.3%3.9%

3.1%2.6%

NO

TE: If room

and/or board is blank, the university may not offer board and/or have university-ow

ned housing or these figures are only reported as combined.

Coastal C

arolina University

Conw

ay, SC

Fall 2018


42

US NEWS NATIONAL RANKINGS- COASTAL CAROLINA UNIVERSITY


43


44

NICHE.COM RANKINGS- COASTAL CAROLINA UNIVERSITY


45

CONCLUSION Coastal Carolina’s student enrollment has shown steady growth for the past several years, increasing by about 30.9% in the past 10 years. Enrollment growth is expected to increase another 9.8% during the next five years.

According to Axiometric, besides the subject, there are no new student housing planned in the near future. In the past five years, privately owned student housing rent growth average 3.7% annually and occupancy is expected to remain fairly high, averaging 96.0% annually over the next four years. Overall, the trends at CCU in terms of enrollment and housing are positive and are expected to continue that trend.

Pinnacle at Coastal Carolina 18-101-14 DESCRIPTION OF THE SITE

46

Parcel ID/Tax IDGross Land

Area (Acres)Gross Land Area (SF) Topography Type Shape Type

1500006110, 1500006069 10.77 469,141 Level and at street grade Irregular in shape

Land Summary

SITE DETAILS ADDRESS 1482 Highway 544, Conway, Horry County, SC 29526

PARCEL NUMBER 1500006110, 1500006069 LEGAL DESCRIPTION See Addenda

LOCATION The subject is located on the westside of Highway 544 and approximately 1.5 miles from the center of CCU’s campus.

LOCATION TYPE Suburban MAP LATITUDE/LONGITUDE 33.776782/-79.022634

SIZE 469,141 SF or 10.770 acres USABLE LAND 469,141 SF or 10.770 acres

ZONING The parcel is zoned “MRD-3,” under the jurisdiction of the Horry County .

PRIMARY FRONTAGE STREET Highway 544 PRIMARY FRONTAGE STREET LENGTH 400 feet

PRIMARY FRONTAGE COMMENTS In the subject’s immediate area Highway 544 is north-south 4 lane highway that is surrounded by retail, residential development, and vacant land.

ADJACENT PROPERTIES - NORTH Sweetwater Church/ paving company ADJACENT PROPERTIES - SOUTH Vacant Land

ADJACENT PROPERTIES - WEST Vacant Land ADJACENT PROPERTIES - EAST Waffle House/ former gas station

TRAFFIC COUNT N/A TRAFFIC COUNT YEAR N/A

PROPOSED USE Student Housing development NUMBER OF PROPOSED UNITS 152

PROPOSED UNIT TYPE Apartment PROPOSED UNIT STATUS Approved

VIEW Good ACCESS The site is accessible by Highway 544.

INGRESS/EGRESS The subject has ingress/egress at two points, both via a curb cuts along Highway 544.

SITE VISIBILITY The Site itself is tucked back behind some road front retail. STREET CONDITION Paved

SIDEWALKS There are sidewalks along both sides of Highway 544. CURBS AND GUTTERS Highway 544 has curbs and gutters.

LANDSCAPING The subject's landscaping is typical for the area. TOPOGRAPHY The subject's topography is level and at street grade.

SHAPE The subject site is irregular in shape. REQUIRED SITE WORK Typical clear and grade

SOIL CONDITIONS AND DRAINAGE The soil conditions observed at the subject appear to be typical of the region and adequate to support development.


47

FLOOD ZONE The subject’s provided site plan is indicating 1.21± acres of jurisdictional wetland. The remainder of the site lies within X. This information was obtained from the National Flood Insurance Rate Map Number 45051C0519H dated August 23, 1999.

FLOOD ZONE DEFINITION Area of minimal flood hazard, usually depicted on FIRMs as above the 500-year flood level. In communities that participate in the NFIP, flood insurance is available to all property owners and renters in this zone.

ENCUMBRANCES AND EASEMENTS There are no known adverse encumbrances or easements. Please reference Limiting Conditions and Assumptions.

ENVIRONMENTAL HAZARDS There are no known adverse environmental conditions on the subject's site. Please reference Limiting Conditions and Assumptions.

ADEQUACY OF UTILITIES Public utilities are available to the site. PUBLIC ELECTRICITY Horry County

WATER SUPPLY TYPE Horry County SEWER TYPE Horry County

UNDERGROUND UTILITIES Yes POLICE AND FIRE PROTECTION Horry County

CONCLUSION The subject site is considered well-suited to functionally support its proposed use.


48

AERIAL PHOTOGRAPH

Pinnacle at Coastal Carolina 18-101-14 DESCRIPTION OF THE IMPROVEMENTS

49

Building Name/ID Year Built ConditionNumber of

Floors/StoriesGross Building

AreaNet Rentable

AreaNumber of

Units1482 Highway 544 2019 New 4 223,202 166,560 152

Building Summary

Detailed Unit Mix

Unit Type No. of Units No. of Bedrooms Size (SF) Avg Unit Size Total NRA (SF) % of Total1BD/1BA 8 8 600 600 4,800 2.88%2BD/2BA 48 96 850 850 40,800 24.50%4BD/4BA 96 384 1,260 1,260 120,960 72.62%Total/Wtd. Avg. 152 488 1,096 1,096 166,560 100.00%

Unit Mix

GENERAL DETAILS DESCRIPTION Briefly described, the subject consists of a 10.77 ± acre tract of

land that is being developed with a new Costal Carolina University (CCU) off campus student housing complex called Pinnacle at Coastal Carolina. When completed the apartments will include Class A, 4-story, 6-building, complex that will be a mixture of mid-rise and garden style buildings. When completed, the subject will include 152-units with a total of 488 beds and 166,560 ± SF of residential net rentable area for and average unit size of approximately 1,096 SF. There will also be 54,922± SF of common areas/amenities and 1,720± SF of leasing office and maintenance space for a total gross building area of 223,202± SF. The property will also have 459 surface parking spaces. Construction began in September 2018 and is expected to be completed by August of 2019 for the 2019/2020 school year.

BUILDING DETAILS BUILDING NAME 1482 Highway 544 BUILDING CLASS A DWELLING TYPE Four-story garden-style apartment

CONDITION New YEAR BUILT 2019

EFFECTIVE AGE 0 TOTAL ECONOMIC LIFE 60

REMAINING ECONOMIC LIFE 60 GROSS BUILDING AREA 223,202

NET RENTABLE AREA 166,560 GROSS LEASABLE AREA 166,560

NUMBER OF UNITS 152 LAND TO BUILDING RATIO 1.71

FLOOR AREA RATIO 0.59 BUILDING EFFICIENCY RATIO 74.6%

CURRENT OCCUPANCY 91% APPEAL AND APPEARANCE Excellent

DESIGN AND FUNCTIONAL UTILITY The overall layout of the improvements on the parcel is considered to be average.

Pinnacle at Coastal Carolina 18-101-14 DESCRIPTION OF THE IMPROVEMENTS

50

BUILDING AMENITIES Swimming pool with cabanas, outdoor fire pits and kitchens, a sauna, tanning beds, rooftop entertainment deck with a bar area and seating for up to 250 people, fitness center, movie theater, study room, meeting rooms, juice bar, billiards area, gaming system area, several large flat screen TVs, on-site management office, business center, clubhouse, community gardens, green space, and a 24- hour guarded secure property entrance, perimeter fencing and a shuttle to CCU Campus.

UNIT AMENITIES Full size kitchen with stainless steel appliances, granite countertops, and designer cabinets equipped with a range, refrigerator, dishwasher, microwave oven, garbage disposal, and vent hood, central heat and air conditioning, washer/dryer, carpet/vinyl/hardwood flooring, and window blinds. Bedrooms and common areas in the units will be wired with cable and Internet ports. All units will be fully furnished with couch, coffee table, dining table and chairs, bedroom furniture, and a flat screen TV.

SECURITY Secure access

CONSTRUCTION DETAILS MARSHALL VALUATION SERVICE

CLASS D

MARSHALL VALUATION SERVICE QUALITY

Good/Average

CONSTRUCTION TYPE Frame NUMBER OF STORIES 4

FOUNDATION Poured concrete footings FRAME Heavy Steel Frame

EXTERIOR WALLS/FINISH Siding WINDOWS Fixed Casement ROOF TYPE Flat

ROOF COVER Rubber Membrane FLOOR PLAN LAYOUT Average

INTERIOR WALLS Painted drywall CEILING COVER Drywall

ELECTRICAL Assumed to be in compliance with prevailing code requirements. PLUMBING Assumed to be in compliance with prevailing code requirements.

PARKING DETAILS

PARKING TYPE Paved open surface parking CONDITION OF PARKING New

PARKING SPACES 459 PARKING RATIO 3.02 spaces per unit


DESCRIPTION

OF THE IM

PROVEM

ENTS

51

PROPO

SED DEVELOPM

ENT


DESCRIPTION

OF THE IM

PROVEM

ENTS

52

Pinnacle at Coastal Carolina 18-101-14 ZONING

53

The subject is zoned "MRD-3," Multi-Residential District, under the jurisdiction of the Horry County .

ZONE DETAILS ZONING CODE MRD-3

ZONING DESCRIPTION Multi-Residential District PERMITTED USES The Multi-Residential (MRD) District is intended to provide

opportunities for rural, suburban and urban density mixed-residential developments consistent with the objectives of the Horry County Comprehensive Plan. The MRD district encourages the design of a more complete and sustainable environment consistent with the needs of the rural, suburban and urban areas of the County through the application of imaginative approaches to community design that allow and support mixed residential uses, design flexibility, pedestrian-oriented development, interconnectivity, and sensitivity to the needs of the public, economy and natural environment

Zoning Comments Urban density (MRD-3) development requirements. Urban density is herein defined as no greater than fifteen (15) units per acre.

According to information supplied by the subject’s developer, the proposed development has been approved.

Overall, we have concluded that the subject’s current planned improvements are the maximum financially feasible development.

Pinnacle at Coastal Carolina 18-101-14 TAXES

54

The subject is assessed by the Horry County property appraiser’s office, and is taxed by the Horry County. The following table summarizes the subject’s assessment and taxes:

Parcel ID 1500006110 1500006069 1610002002 TotalsAssessment Year 2018 2018 2018 2018

Tax Authority Land Value $1,140,720 $216,620 $52,890 $1,410,230Tax Authority Improvements Value $0 $0 $0 $0

Tax Authority Other Value $0 $0 $0 $0Tax Authority Total Value $1,140,720 $216,620 $52,890 $1,410,230

Assessment % 6.00% 6.00% 6.00% 6.00%Total Taxable Assessment $68,443 $12,997 $3,173 $84,614

Millage Rate $212.7000 $212.7000 $212.7000 $212.7000Millage Rate 2 $0.0000 $0.0000 $0.0000 $0.0000

Millage Rate Taxes $14,558 $2,765 $675 $17,997Millage Rate 2 Taxes $0 $0 $0 $0

Total Tax Rate $212.7000 $212.7000 $212.7000 $212.7000Tax Rate Per $1,000.00 $1,000.00 $1,000.00 $1,000.00

Taxes $14,558 $2,765 $675 $17,997Special Assessments $30 $9 $44 $83

Taxes with Special Assessments $14,588 $2,774 $719 $18,080 * The 1610002002 parcel is 27.84 acres, of which the subject’s portion only represents 2.0 acres.

In projecting the subject’s assessment and taxes, we have analyzed other properties in the Horry County. The tax comparables are outlined in the following table:

Address 630 Highway 544 501 Hinson Drive 101 Breakers Drive Average

Name Coastal Club Vinings at Carolina Bays

Alta Surf Apartments

Tax Parcel ID 15000-06-029 16500-01-404 16500-01-198Date 09/30/2016 09/16/2016 12/12/2012

Price $40,850,000 $35,300,000 $17,000,000 $31,050,000Assessment Year 2017 2017 2013

Total Assessment $30,637,500 $26,475,000 $12,798,200 $23,303,567Assessment Percent 75.00% 75.00% 75.28% 75.09%

Assessment Year Prior 2016 2016 2012Total Assessment Prior $23,890,400 $16,302,700 $17,000,000 $19,064,367

Prior Assessment Percentage 58.48% 46.18% 100.00% 68.22%Value Change 28.24% 62.40% -24.72% 21.97%

The above tax comparables are indicating that Horry County is increasing assessments after sales at a rate of approximately 75%.

Any increase in fair market value of any parcel of real property as a result of a countywide reassessment program is limited to 15% within a 5-year period. Re-appraisals are triggered by 2 other events: (1) completion of most types of “improvements” or “additions,” including new construction and remodeling; and, (2) an “assessable transfer of interest,” (ATI) which encompasses a broad range of changes as to ownership, or use, or the passage of time as set forth in South Carolina Code §12-37-3150.

After an assessable transfer of interest occurs, the fair market value of the parcel will be adjusted by appraisal, resulting in a transfer value. The 15% cap does not apply to (1) the fair market value of the improvements or additions in the year they are first subject to property tax, (2) the transfer value in the year the transfer value is first subject to property tax, and (3) real property valued by the unit valuation method.

Pinnacle at Coastal Carolina 18-101-14 TAXES

55

On June 2, 2011, The South Carolina Senate and the House of Representatives passed important legislation which will limit or potentially eliminate property tax increases for certain property undergoing an assessable transfer of interest (“ATI”), which includes any sale or transfer of property to a third party.

The law applies to all commercial real property and non-owner occupied residential property which undergoes an ATI sale/transfer after the 2010 tax year. The new law does not affect agricultural property, manufacturer and utility property, and owner-occupied residences which will all continue to be subject to the old ATI transfer and revaluation laws.

Under this new law, qualified property owners can have the value of their property reduced on the date of any ATI sale/transfer by up to 25%. If the 25% valuation discount results in a value lower than the property tax value at the time of the ATI, then the existing property tax value will continue to apply. If the market value of property is lower than the property tax value at the time of the ATI, such as where the property is sold for a loss, then this lower market value will be used for property tax purposes.

These property tax rules are not automatic for property owners. An owner of commercial real property or non-owner occupied residential property must notify the county assessor law before January 31st that the property is to be taxed under the new.

The subject's projected taxes are shown in the following table:

Parcel ID As CompleteProjected Assessment @ 75% of Value $23,550,000

Percent Assessment 6%Projected Total Assessment $1,413,000

Projected Millage Rate $212.7000Tax Rate Per $1,000

Projected Taxes $300,545Projected Special Assessments $30

Projected Total Taxes $300,575Projected Taxes Rounded $301,000

Pinnacle at Coastal Carolina 18-101-14 HIGHEST AND BEST USE

56

In determining the highest and best use of the property, consideration was given to the economic, legal, and social factors that motivate investors to develop, own, buy and sell, manage, and lease real estate.

In forming an opinion of the highest and best use of a vacant parcel of land, there are essentially four stages of analysis:

• Physically Possible Use: What uses of the site in question are physically possible?

• Legally Permissible Use: What uses are permitted by zoning and deed restrictions on the site in question?

• Financially Feasible Use: Which possible and permissible uses will produce a gross return to the owner of the site?

• Maximally Productive: Among the feasible uses, which will produce the highest return or highest present worth of the site in question?

The following tests must be met in estimating the highest and best use of a vacant parcel: the potential use must be physically possible and legally permissible, there must be a profitable demand for such a use, and it must return to the land the highest net return for the longest period of time. These tests have been applied to the subject's site and are discussed as follows:

PHYSICALLY POSSIBLE The subject is located on the westside of Highway 544 and approximately 1.5 miles from the center of CCU’s campus. The underlying site consists of 469,141 SF or 10.770 acres. The subject's topography is level and at street grade. As noted in the Assumptions and Limiting Conditions, we know of no environmental or engineering study that has been conducted on the site to determine subsoil conditions.

Upon analysis of all physical aspects, space, size, shape, terrain, location and others the most supportable highest and best uses of the site, as it relates to physical properties, are residential development.

LEGALLY PERMISSIBLE The subject's site is zoned "MRD-3," Multi-Residential District, under the jurisdiction of the Horry County , SC. Reference is made to the Zoning section of this report. Permitted uses include The Multi-Residential (MRD) District is intended to provide opportunities for rural, suburban and urban density mixed-residential developments consistent with the objectives of the Horry County Comprehensive Plan. The MRD district encourages the design of a more complete and sustainable environment consistent with the needs of the rural, suburban and urban areas of the County through the application of imaginative approaches to community design that allow and support mixed residential uses, design flexibility, pedestrian-oriented development, interconnectivity, and sensitivity to the needs of the public, economy and natural environment

Overall, we have concluded that the subject’s current planned improvements are the maximum financially feasible development.

Upon analysis of the permitted uses, the most supportable highest and best uses of the site, as it relates to what is legally permissible, are mixed use development.

.

Pinnacle at Coastal Carolina 18-101-14 HIGHEST AND BEST USE

57

FINANCIALLY FEASIBLE Analysis for financially feasible uses for the site, as if vacant, involves consideration of several criteria. Unlike the physically possible and legally permissible aspects of the highest and best use analysis, many external economic factors serve to prove or disprove financial feasibility. The cost of acquisition, sources of capital, forecast of potential revenue/expenses, reversionary price forecast, property tax implications and measures of risk and yield are all determinant to this analysis. The above financial measures serve to eliminate the uses that would not provide a reasonable return to the land based on an investor's expectations.

The cost of land and its development limits the highest and best use of the site, generally to only those uses that are financially feasible.

As detailed in the Cost Approach, the subject’s development cost is $30,900,000, which is inclusive of 10% in entrepreneurial profit. The subject’s competed value is, $31,400,000 and the stabilized value is $35,100,000 indicating that the current proposed improvements are financially feasible.

We conclude that financially feasible uses of the site that are physically possible and legally permissible are residential development that has a relationship with CCU.

MAXIMALLY PRODUCTIVE We considered those uses, as aforementioned, to meet the physically possible, legally permissible and financially feasible tenets of the highest and best use definition. The final criteria for full compliance within the highest and best use of the subject, as vacant, is that of a maximally productive use. We conclude the maximally productive use of the site is residential development.

HIGHEST AND BEST USE, AS IF VACANT A final reconciliation of the analysis leads to the conclusion that the highest and best use of the site, as if vacant, is residential development.

HIGHEST AND BEST USE, AS IMPROVED The subject’s site is not improved.

HIGHEST AND BEST USE, AS PROPOSED The subject’s proposed development is a student housing complex. As detailed in the Cost Approach, the subject’s development cost is $30,900,000, which is inclusive of 10% in entrepreneurial profit. The subject’s competed value is, $31,400,000 and the stabilized value is $35,100,000 or $230,921/unit or $210.73/SF, indicating that the current proposed improvements are financially feasible.

In terms of market rent apartments, according to Costar, there have been 7 apartment sales over the last 3 years that were above 50 units and 2000 year built or newer. These comparables ranged in price from $63,758/unit to $203,234/unit. Overall, a student-oriented apartment complex appears to generate a higher value per unit than a market rent complex. Therefore, we concluded that the highest and best use, as proposed is for a student-oriented residential development.

Pinnacle at Coastal Carolina 18-101-14 ANALYSIS OF DATA AND CONCLUSIONS

58

IDENTIFICATION OF A LIKELY BUYER Due to the subject's size, quality and price point, the most likely buyer would be a large regional or national investor. These factors will be considered in the valuation of the subject.

VALUATION METHODOLOGIES In appraising a property, there are three traditional valuation methodologies that can be applied: the Cost, Income Capitalization and Sales Comparison Approaches. Selection of one or more of the approaches in the appraisal of a property rests primarily upon the property type and its physical characteristics, as well as the quality and quantity of available market data.

In the Land Value section, market data is presented along with an analysis of the data and reasoning that lead to the land value opinion.

The Cost Approach is based on the premise that an informed purchaser will not pay more for a property than it would cost him or her to construct a property of similar utility. This approach is most applicable when the subject is of new or nearly new construction and the improvements represent the highest and best use of the site. This approach is also particularly useful when appraising unique or special purpose properties where there are few, if any, comparable sales or leases.

The Income Capitalization Approach is based on the fundamental investment premise that the higher a property’s earnings, the higher its value. Investment in an income-producing property represents the exchange of present dollars for the right to receive future dollars. In this approach, a value indication for an income-producing property is derived by converting its anticipated benefits (cash flows and reversion) into property value. This conversion can be accomplished in two ways: one year’s income expectancy can be capitalized at a market-derived capitalization rate, or alternatively, the annual cash flows for the holding period and the reversion can be discounted at a specified yield rate. The Income Capitalization Approach typically provides the most meaningful estimate of value for income-producing properties.

The Sales Comparison Approach involves delineating appropriate units of measurement from comparable sales, in order to apply them to the subject’s property. Adjustments are then made to the sales prices of the comparable properties based on various shared elements. This methodology may be used to value many different types of improved properties and vacant land, as long as there is a sufficient quantity of good-quality market data available. It becomes less reliable as the quantity and magnitude of adjustments increases, and it is generally not applicable to unique or special purpose properties.

The final step in the valuation process is the reconciliation or correlation of the value indications. In the reconciliation or correlation, we consider the relative applicability of each of the approaches used, examine the range between the value indications, and place major emphasis on the approach that appears to produce the most reliable and credible result.

VALUATION METHODOLOGIES APPLICABLE TO THE SUBJECT PROPERTY The Cost Approach was utilized because there is adequate data to develop a land value and the depreciation accrued to the improvements can be reasonably measured. The Income Capitalization Approach was utilized because the subject is an income producing property and there is adequate data to develop a value estimate with this approach. The Sales Comparison Approach was utilized because there is adequate data to develop a value estimate and this approach reflects market behavior for this property type.

Pinnacle at Coastal Carolina 18-101-14 LAND VALUE

59

LAND VALUATION The land, as if vacant, is valued by direct sales comparison, in which sales of comparable sites within the subject's area are analyzed in context with the subject's site. Adjustments are made to compensate for differences between the submitted sales data and the subject for such factors as location, size, shape, topography, utility, and marketability, etc. Land sales are presented to arrive at a $/Bed for the subject. In an effort to locate comparable land sales, a search throughout the subject’s area was conducted. The presented sales are valid indicators of land values in the subject’s area. Information pertaining to these sales has been verified by the buyer, seller, broker or other sources considered reliable and having knowledge of the particular transaction when available.

SCHEDULE OF VALUES 8/10/2018 General Conditions $750,886.00 Temp Power to each Building $50,000.00 Temporary Power $30,828.00 Closeout $45,879.00 Dumpsters $102,462.00 Final Clean $49,167.00 Performance and Payment Bond $155,433.00 Sub Bonds $146,946.00 Permit reuse fee (4 buildings) $2,000.00 Business License $4,320.00 GL Insurance $114,666.00 Taller than 24" Foundation Allowance $12,000.00 Owner Contingency $200,000.00 Amenity Building $750,000.00 Builders Contingency $200,000.00 General Overhead & Profit $939,884.00

B-1 Mobilization $13,333.00 B-1 Soil Poisoning $584.00 B-1 CONCRETE $97,221.00 B-1 Rebar & Wire Mesh - Materials $8,419.00 B-1 MASONRY - Elevator Shaft $26,420.00 B-1 MASONRY - Brick Veneer $76,252.00 B-1 Elevator Beam, grate, and ladder $1,814.00 B-1 Framing & Framing Anchor Material $299,911.00 B-1 Roof and Floor Trusses $99,889.00 B-1 Framing Sub Labor Only $200,500.00 B-1 Exterior Finish Carpentry $199,841.00 B-1 Interior Finish Carpentry $36,655.00 B-1 Railings $25,000.00 B-1 Cabinets and Counter Tops Sub Labor & Material $79,256.00 B-1 Insulation Sub (Batts & Blown) $27,823.00 B-1 Caulk & Sealants $1,700.00 B-1 Roofing $46,130.00 B-1 Gutter & Downspout - Sub $2,100.00 B-1 House Wrap $10,137.00 B-1 Exteriod Doors and Windows $138,513.00 B-1 Inter'r Prehung Dr (all types) $32,670.00 B-1 Hardware - LSUM $11,500.00 B-1 Drywall & Metal Studs $151,117.00 B-1 Ceramic Tile $13,883.00

B-1 Resilient Flooring $21,264.00 B-1 Carpet $15,991.00 B-1 Painting $91,900.00 B-1 Draftstopping $6,085.00 B-1 Toilet Accessories Labor/Mater $2,000.00 B-1 Building/ Unit Signage $1,715.00 B-1 Fire Ext $2,318.00 B-1 Mirror $3,340.00 B-1 Hat & Coat Rack $2,450.00 B-1 Appliances Installed $72,000.00 B-1 Elevators Sub $113,334.00 B-1 Fire Sprinkler $61,300.00 B-1 Plumbing $171,624.00 B-1 HVAC Systems $128,646.00 B-1 Electrical $166,856.00 B-1 Wire to Transformer $5,000.00 B-1 Fire Alarm $23,334.00 B-2 Mobilization $13,333.00 B-2 Soil Poisoning $584.00 B-2 CONCRETE $97,221.00 B-2 Rebar & Wire Mesh - Materials $8,419.00 B-2 MASONRY - Elevator Shaft $26,420.00 B-2 MASONRY - Brick Veneer $76,252.00 B-2 Elevator Beam, grate, and ladder $1,814.00 B-2 Framing & Framing Anchor Material $299,911.00 B-2 Roof and Floor Trusses $99,889.00 B-2 Framing Sub Labor Only $200,500.00 B-2 Exterior Finish Carpentry $199,841.00 B-2 Interior Finish Carpentry $36,655.00 B-2 Railings $25,000.00 B-2 Cabinets and Counter Tops Sub Labor & Material $79,256.00 B-2 Insulation Sub (Batts & Blown) $27,823.00 B-2 Caulk & Sealants $1,700.00 B-2 Roofing $46,130.00 B-2 Gutter & Downspout - Sub $2,100.00 B-2 House Wrap $10,137.00 B-2 Exteriod Doors and Windows $138,513.00 B-2 Inter'r Prehung Dr (all types) $32,670.00 B-2 Hardware - LSUM $11,500.00 B-2 Drywall & Metal Studs $151,117.00 B-2 Ceramic Tile $13,883.00 B-2 Resilient Flooring $21,264.00

B-2 Carpet $15,991.00 B-2 Painting $91,900.00 B-2 Draftstopping $6,085.00 B-2 Toilet Accessories Labor/Mater $2,000.00 B-2 Building/ Unit Signage $1,715.00 B-2 Fire Ext $2,318.00 B-2 Mirror $3,340.00 B-2 Hat & Coat Rack $2,450.00 B-2 Appliances Installed $72,000.00 B-2 Elevators Sub $113,334.00 B-2 Fire Sprinkler $61,300.00 B-2 Plumbing $171,624.00 B-2 HVAC Systems $128,646.00 B-2 Electrical $166,856.00 B-2 Wire to Transformer $5,000.00 B-2 Fire Alarm $23,334.00 B-3 Mobilization $13,333.00 B-3 Soil Poisoning $584.00 B-3 CONCRETE $97,221.00 B-3 Rebar & Wire Mesh - Materials $8,419.00 B-3 MASONRY - Elevator Shaft $26,420.00 B-3 MASONRY - Brick Veneer $76,252.00 B-3 Elevator Beam, grate, and ladder $1,814.00 B-3 Framing & Framing Anchor Material $299,911.00 B-3 Roof and Floor Trusses $99,889.00 B-3 Framing Sub Labor Only $200,500.00 B-3 Exterior Finish Carpentry $199,841.00 B-3 Interior Finish Carpentry $36,655.00 B-3 Railings $25,000.00 B-3 Cabinets and Counter Tops Sub Labor & Material $79,256.00 B-3 Insulation Sub (Batts & Blown) $27,823.00 B-3 Caulk & Sealants $1,700.00 B-3 Roofing $46,130.00 B-3 Gutter & Downspout - Sub $2,100.00 B-3 House Wrap $10,137.00 B-3 Exteriod Doors and Windows $138,513.00 B-3 Inter'r Prehung Dr (all types) $32,670.00 B-3 Hardware - LSUM $11,500.00 B-3 Drywall & Metal Studs $151,117.00 B-3 Ceramic Tile $13,883.00 B-3 Resilient Flooring $21,264.00 B-3 Carpet $15,991.00

B-3 Painting $91,900.00 B-3 Draftstopping $6,085.00 B-3 Toilet Accessories Labor/Mater $2,000.00 B-3 Building/ Unit Signage $1,715.00 B-3 Fire Ext $2,318.00 B-3 Mirror $3,340.00 B-3 Hat & Coat Rack $2,450.00 B-3 Appliances Installed $72,000.00 B-3 Elevators Sub $113,334.00 B-3 Fire Sprinkler $61,300.00 B-3 Plumbing $171,624.00 B-3 HVAC Systems $128,646.00 B-3 Electrical $166,856.00 B-3 Wire to Transformer $5,000.00 B-3 Fire Alarm $23,334.00 B-4 Mobilization $13,333.00 B-4 Soil Poisoning $584.00 B-4 CONCRETE $97,221.00 B-4 Rebar & Wire Mesh - Materials $8,419.00 B-4 MASONRY - Elevator Shaft $26,420.00 B-4 MASONRY - Brick Veneer $76,252.00 B-4 Elevator Beam, grate, and ladder $1,814.00 B-4 Framing & Framing Anchor Material $299,911.00 B-4 Roof and Floor Trusses $99,889.00 B-4 Framing Sub Labor Only $200,500.00 B-4 Exterior Finish Carpentry $199,841.00 B-4 Interior Finish Carpentry $36,655.00 B-4 Railings $25,000.00 B-4 Cabinets and Counter Tops Sub Labor & Material $79,256.00 B-4 Insulation Sub (Batts & Blown) $27,823.00 B-4 Caulk & Sealants $1,700.00 B-4 Roofing $46,130.00 B-4 Gutter & Downspout - Sub $2,100.00 B-4 House Wrap $10,137.00 B-4 Exteriod Doors and Windows $138,513.00 B-4 Inter'r Prehung Dr (all types) $32,670.00 B-4 Hardware - LSUM $11,500.00 B-4 Drywall & Metal Studs $151,117.00 B-4 Ceramic Tile $13,883.00 B-4 Resilient Flooring $21,264.00 B-4 Carpet $15,991.00 B-4 Painting $91,900.00

B-4 Draftstopping $6,085.00 B-4 Toilet Accessories Labor/Mater $2,000.00 B-4 Building/ Unit Signage $1,715.00 B-4 Fire Ext $2,318.00 B-4 Mirror $3,340.00 B-4 Hat & Coat Rack $2,450.00 B-4 Appliances Installed $72,000.00 B-4 Elevators Sub $113,334.00 B-4 Fire Sprinkler $61,300.00 B-4 Plumbing $171,624.00 B-4 HVAC Systems $128,646.00 B-4 Electrical $166,856.00 B-4 Wire to Transformer $5,000.00 B-4 Fire Alarm $23,334.00 B-5 Mobilization $13,333.00 B-5 Soil Poisoning $584.00 B-5 CONCRETE $97,221.00 B-5 Rebar & Wire Mesh - Materials $8,419.00 B-5 MASONRY - Elevator Shaft $26,420.00 B-5 MASONRY - Brick Veneer $76,252.00 B-5 Elevator Beam, grate, and ladder $1,814.00 B-5 Framing & Framing Anchor Material $299,911.00 B-5 Roof and Floor Trusses $99,889.00 B-5 Framing Sub Labor Only $200,500.00 B-5 Exterior Finish Carpentry $199,841.00 B-5 Interior Finish Carpentry $36,655.00 B-5 Railings $25,000.00 B-5 Cabinets and Counter Tops Sub Labor & Material $79,256.00 B-5 Insulation Sub (Batts & Blown) $27,823.00 B-5 Caulk & Sealants $1,700.00 B-5 Roofing $46,130.00 B-5 Gutter & Downspout - Sub $2,100.00 B-5 House Wrap $10,137.00 B-5 Exteriod Doors and Windows $138,513.00 B-5 Inter'r Prehung Dr (all types) $32,670.00 B-5 Hardware - LSUM $11,500.00 B-5 Drywall & Metal Studs $151,117.00 B-5 Ceramic Tile $13,883.00 B-5 Resilient Flooring $21,264.00 B-5 Carpet $15,991.00 B-5 Painting $91,900.00 B-5 Draftstopping $6,085.00

B-5 Toilet Accessories Labor/Mater $2,000.00 B-5 Building/ Unit Signage $1,715.00 B-5 Fire Ext $2,318.00 B-5 Mirror $3,340.00 B-5 Hat & Coat Rack $2,450.00 B-5 Appliances Installed $72,000.00 B-5 Elevators Sub $113,334.00 B-5 Fire Sprinkler $61,300.00 B-5 Plumbing $171,624.00 B-5 HVAC Systems $128,646.00 B-5 Electrical $166,856.00 B-5 Wire to Transformer $5,000.00 B-5 Fire Alarm $23,334.00 B-Core Mobilization $15,806.00 B-Core Soil Poisoning $688.00 B-Core CONCRETE $107,121.00 B-Core Rebar & Wire Mesh - Materials $9,320.00 B-Core MASONRY - Elevator Shaft $26,420.00 B-Core MASONRY - Brick Veneer $81,585.00 B-Core Elevator Beam, grate, and ladder $1,814.00 B-Core Framing & Framing Anchor Material $330,211.00 B-Core Roof and Floor Trusses $107,512.00 B-Core Framing Sub Labor Only $228,696.00 B-Core Exterior Finish Carpentry $217,088.00 B-Core Interior Finish Carpentry $41,084.00 B-Core Railings $25,000.00 B-Core Cabinets and Counter Tops Sub Labor & Material $102,215.00 B-Core Insulation Sub (Batts & Blown) $30,614.00 B-Core Caulk & Sealants $1,778.00 B-Core Roofing $51,868.00 B-Core Gutter & Downspout - Sub $2,100.00 B-Core House Wrap $10,832.00 B-Core Exteriod Doors and Windows $153,640.00 B-Core Inter'r Prehung Dr (all types) $38,410.00 B-Core Hardware - LSUM $13,500.00 B-Core Drywall & Metal Studs $172,418.00 B-Core Ceramic Tile $15,836.00 B-Core Resilient Flooring $23,837.00 B-Core Carpet $18,353.00 B-Core Painting $102,782.00 B-Core Draftstopping $7,113.00

B-Core Toilet Accessories Labor/Mater $2,400.00 B-Core Building/ Unit Signage $2,154.00 B-Core Fire Ext $3,091.00 B-Core Mirror $3,841.00 B-Core Hat & Coat Rack $2,786.00 B-Core Appliances Installed $96,000.00 B-Core Elevators Sub $113,334.00 B-Core Fire Sprinkler $71,477.00 B-Core Plumbing $195,748.00 B-Core HVAC Systems $145,982.00 B-Core Electrical $188,817.00 B-Core Wire to Transformer $5,000.00 B-Core Fire Alarm $25,804.00

SOV TOTAL $18,797,671.00

CONTRACT AMOUNT $18,797,671.00

PROJECT COSTS SUMMARY PER UNIT

LAND COST: 2,670,000$ $17,565.79

SITE DEVELOPMENT : 1,736,000$ $11,421.05

VERTICAL CONST COSTS: 18,797,568$ $123,668.21

FINANCING : 2,183,500$ $14,365.13

SOFT COSTS : 3,932,100$ $25,869.08

TOTAL COSTS: 29,319,168$ $192,889.26

Date post:	11-Jan-2022
Category:	Documents
Upload:	others
View:	2 times
Download:	0 times

CCU Appraisal Highlights - LoopNet

Documents