Purchaser/Borrower

FILE #:  7N724987

 
Housing Assistance Office

Property Address

115-117 Harding Avenue

Text Box: PROPERTY INFORMATIONCity

Bremen

County

Marshall

State

Indiana

Zip

46506

Legal Description

See attached legal description which is attached hereto and made a part hereof.

1.0 acre+/- zoned R-8 according to the Marshall County zoning office.

German Township, Marshall County (RD Esther Smith 260-244-6266 Ex 4)

 

Map Reference

Justus Property Mgt.  Sherri Herder 574-773-2910 Ex 6

Census Tract

Consultant Anne Mannix 574-233-9305/Fax 574-282-3429

Lender/Client #

Housing Assistance Office          Grant $750,000/$52,052 Yr. Tax Credits

Text Box: LENDER INFOAddress

1138 Lincolnway East                  2nd    $385,000 @ 2%/20 Yr. Amort

City, State, Zip

South Bend, IN   46634-1558

Contact

Janet Ditmire

Phone #:  574-233-9305

Client Case #

INV. #32366

Fax #:  574-282-3429

Comments

P.P.-Rehab patio aparts 8 units @ Harding Ave/16 @ Birkey/8 @ Faith Ave. = 32 units

3 Apts.-Ex. Loan $530,000 (Rehab $635,000) $385,000 2nd 2%-20 Yrs.= $1,165,000 total

 

 

Appraisal Fee Amount

$1,200.00

 

Mail or Handling Fee

$

Unit Density 4 to 1           Per Unit $22,500

Additional Charges 1

$

# of Rooms 32                 Cap Rate 10.17

Text Box: INVOICE INFOAdditional Charges 2

$

Per Room $5,625            Prfrma GIM 3.61

Sales Tax

$

Parking Ratio 2 to 1         Price SF $34.61

   Total Amount of Order

$$1,200.00

 

Misc. Comments

Restricted 28% Discount                           Market Rent - $519

 

Date Appraisal Order Placed

1/31/08

10.863 Ł .085 = 130.000

 

Date Appraisal Made

2/19/08

130.000 Ł 8 = 16.250 units

 

Date Invoice Delivered

2/28/08

130.000 Ł 5,200 = 25 SF

 

Date Payment for Invoice Received

 

130.000 Ł31.038 = 4.18 GRM

 

Amount Received

 

 

 

Balance Due

$1,200

 

 

Turn Around Time  28   days

 

 

 

Days Past Due

 

 

Sale Price

Text Box: Comments$765,000   3Apts - $23,906 Unit

 

Appraised Value

$

 

Loan Amount

$

 

Square Footage

$

 

Cost Per Sq Ft

$

 

Date Closed/Sold

Text Box: Commercial

 

Text Box: FINANCING INFORms/Bdrms/Baths

 

Land Size

 

Seller

 

Zoning

 

Buyer

 

Recorded

 

Year Buit

 

Verified

 

# of Mtgs.

 

Rental Rate/Term

 

Interest Rate

 

Gross Income

 

Loan Term

 

Net Income

 

Loan Type

 

NOI

 

Appraiser

Description/Comments

Fee %

Fee Amt

Date Paid

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Text Box: FEE SPLITS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Text Box: ACTIVITY DATES

 

 

 

 

 

 

 

Summary

Appraisal   

Report

 

 

 

 

 

 

 

 

Prepared for:

 

Janet Ditmire

Housing Assistance Office

1138 Lincolnway East

South Bend, IN   46634-1558

 

 

 

 

 

 

 

VALUATION & ADVISORY SERVICES                

APPRAISAL GROUP, INC.

 

 

 

 

 

SUMMARY APPRAISAL REPORT

 

 

 

 

 

 

 


SUBMITTED TO:

 

Housing Assistance Office

1138 Lincolnway East

South Bend, IN   46634-1558

 
 

 

 

 

 

 

 

 

 

 

 


SUBMITTED BY:

 

Appraisal Group, Inc.

922 E. Jefferson Blvd.

South Bend, IN   46617

Telephone No. (574) 232-3660 ext. 213

Toll Free No. (800) 527-0261 ext. 213

Facsimile No. (574) 239-3557

 

File No.:  7N724984

 

 

DATE OF VALUE:

 

02/8/07 – As Is & As If Renovated/Stabilized

 

 

DATE OF REPORT:

2/8/07

 

 


 

 

Letter of Transmittal

 

Appraisal Group, Inc.

Feb. 8, 2007

 

 

 

Janet Ditmire

Housing Assistance Office

1138 Lincolnway East

South Bend, IN   46634-1558

 

RE:  1995-2009 Faith Avenue

Bremen

Indiana   46506

 

Dear Ms. Ditmire:

 

Per your request, we have performed a Summary Appraisal Report of the above-mentioned real estate and improvements.  The purpose of the Summary Appraisal Report will be to estimate the market value of the leased fee estate for the real estate under current market conditions.  The intended use of the report will be for selling and marketing the office building only.  The report is not intended for any other use or for use by others.  No responsibility is accepted for unauthorized use of the report.

 

The appraisal will be an independent estimate of market value of the leased fee estate and the payment of the fee shall not be contingent upon any value estimate reported.  It is understood the three approaches (Cost Approach, Sales Comparable, and Income Capitalization) to value will be used in the valuation analysis. 

 

The Summary Appraisal Report is intended to comply with the reporting requirements set forth under Standards Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice.  As such, it may only present summary discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the opinion of value.  Additional supporting documentation concerning the data, reasoning, and analyses may be retained in file.  The depth of discussion contained in this report is specific to your needs for the intended use stated above.  This appraisal report is subject to the attached General Limiting Conditions and authorization to perform the appraisal assignment.

 

 

Based on the valuation analysis in the accompanying report, and subject to the definitions, assumptions, and limiting conditions expressed in the report, our opinion of value is as follows:

 

VALUE CONCLUSIONS

 

Appraisal Premise

Interest Appraised

Date of Value

Value Conclusion

Market Value As is

Prospective Market Value at

Stabilization

Leased Fee

Leased Fee

Feb. 8, 2007

$210,000

$210,000

 

EXTRAORDINARY ASSUMPTIONS & HYPOTHETICAL CONDITIONS

The value conclusions are subject to the following extraordinary assumptions and hypothetical conditions that may affect the assignment results.

 

For purposes of this valuation, we have made the extraordinary assumption that:

1.     The 17,673 square feet of data center expansion space will remain unfinished and unoccupied.  This space consists of a Phase II future renovation and conversion for which there is currently no timeline according to ownership.

 

 

 

If you have any questions or comments, please contact the undersigned.  Thank you for the opportunity to be of service.

 

Respectfully submitted,

 

 

 

 

Stephen A. Cox                                                        Philip C. Krause GAA

Certified General Appraiser                                  Certified General Appraiser

Indiana License #CG40100077                           Indiana License #CG49400447

                                                                                    Michigan License #1201005801

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

Title Page

Letter of Transmittal

Table of Contents

 

 

Page

Certification

1

 

 

Summary of Salient Facts and Conclusions

2

 

 

USPAP Appraisal Requirements

3

 

 

Pertinent Data

4-7

 

 

Highest and Best Use

8

 

 

Brief Comments on Location

9-10

            Map

11

 

 

Immediate Area Affecting Marketability of Subject

12

 

 

Site Description

13

            Plot Plan

14

 

 

Site Valuation

15-17

 

 

Description of Improvements with Photos

18-21

 

 

Valuation Analysis

22

 

 

Sales Comparison Approach

23-24

 

 

Income Approach

25-27

 

 

Reconciliation and Conclusion of Value

28

 

 

Addenda

          Exhibit A:  Qualifications of the Appraiser

          Exhibit B:  Engagement Letter

          Exhibit C:  Public Records/Preliminary Title Commitment

          Exhibit D:  Historical Operating Expense Statements

29-


CERTIFICATION

 

We certify that, to the best of our knowledge and belief:

 

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

 

2)          The reported analysis, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, unbiased professional analysis, opinions, and conclusions.

 

3)          We have no present or prospective interest in the property that is the subject of this report, and we have no personal interest or bias with respect to the parties involved.

 

4)          We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

 

5)          Our engagement in this assignment is no 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 estimate, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

 

6)          Our 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 estimate, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

 

7)          Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Practice of the Appraisal Institute, the Uniform Standards of Professional Appraisal Practice (USPAP) and all current federal regulations.

 

8)          We have made a personal inspection of the property that is the subject of this report.

 

9)          No one provided professional assistance to the persons signing this report.

 

10)       The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

 

11)       We have the knowledge and experience to complete this assignment competently and have appraised this property type before.

 

12)       The appraisers did not base, either partially or completely, the analysis, or estimate of value on the race, color, religion, sex, handicap, familial status, health or national origin of either the present or prospective owners, occupants, or users of the subject property or of the present or prospective owners, occupants or users of the properties in the vicinity of the subject property. 

 

13)       As of the date of this report, Philip Krause has completed the requirements of the continuing education program of the Appraisal Institute, and Stephen Cox and Philip Krause are Indiana State Certified General Real Estate Appraisers.

 

Respectfully submitted,

 

 

Stephen A. Cox                                                           Philip C. Krause

Certified General Appraiser                              Certified General Appraiser

Indiana License #CG40100077                                   Indiana License #CG49400447

                                                                        Michigan License #1201005801

SUMMARY OF SALIENT FACTS AND CONCLUSIONS

 

 

Property Name

Address

 

Property Type

Owner of Record

Tax ID

 

1995-2009 Faith Avenue

Bremen, IN   46506

Three 1 Story Frame Apartment Buildings

Calvin J. Shumaker

50-53-34-103-244.000-006 and

50-53-34-103-245.000-006

Land Area

Gross Building Area

Rentable Area

Percent Occupied (Included reserved space)

Percent Leased (Included reserved space)

Year Built

Year Renovated

Irregular 2 Acres; 87,120 SF

6,416 SF

6,416 SF

31%

36%

1981

1979/2003

Zoning Designation

Highest and Best Use

   As if Vacant

   As Improved

Exposure Time; Marketing Period

R-8 Residential

 

Commercial Use

Continued data center use

12 months; 12 months

 

VALUE CONCLUSION

 

Appraisal Premise

Interest Appraised

Date of Value

Value Conclusion

Market Value As Is

Prospective Market Value at Stabilization

Leased Fee

Leased Fee

Feb. 8, 2007

Dec. 1, 2008

$12,900,000

$15,400,000

 

EXTRAORDINARY ASSUMPTIONS & HYPOTHETICAL CONDITIONS

The value conclusions are subject to the following extraordinary assumptions and hypothetical conditions that may affect the assignment results.

  1. For purposes of this valuation, we have made the extraordinary assumption that:

The 17,673 square feet of data center expansion space will remain unfinished and unoccupied.  This space consists of a Phase II future renovation and conversion for which there is currently no timeline according to ownership.

 

 

 

 


USPAP APPRAISAL REQUIREMENTS

 

 

The Uniform Standards of Professional Appraisal Practice requires a number of items to be covered in this report, plus a signed certification.  Some items are of particular importance and these are addressed as follows:

 

Competency Provision:

 

The Appraiser is an independent contractor in a full service appraisal company and has appraised a number of commercial, industrial and specialty properties, in the States of Indiana, Michigan and Illinois.  The Appraiser is thoroughly familiar with the format for appraising properties such as the subject. 

 

Sales History:

 

The subject property has been under the same ownership in excess of three years.  Any information concerning the original purchase price or development costs is not relevant.

 

Marketing Period:

 

Upon consultation with local real estate brokers handling commercial properties, the typical time for marketing a property such as the subject could range from 6 months to 2 years.

 

Market Trends: 

 

This is an established bar with a good reputation and a faithful clientele.  Anyone contemplating going info this type of business should find this an attractive property to purchase if it were being offered for sale.

 

Personal Property:

 

     This appraisal is confined to the land and buildings constructed thereon and there is no personal property included in this valuation.  The liquor license and other licenses are not included in the valuation.

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


PERTINENT DATA

 

 

Location of the Property Appraised:

 

The subject property is located at 1995-2009 Faith Avenue, City of Bremen, County of Marshall, State of Indiana.

 

Statement of Ownership:

 

The subject property is currently owned by Calvin J. Shumaker.

 

Present Occupant and Use

 

As of the date of this appraisal, the property is Bremtown Apartments – 8 units

 

Property Rights Appraised:

 

The property rights appraised are those rights in the “Title in Fee Simple”.  This includes all rights, which are lawfully owned and is considered an “Absolute Fee” without limitations to any particular class of heirs or restrictions.

 

Zoning:

 

According to the Marshall County Zoning Office, the subject property is zoned “R-8”.  This is 1or 2 family on less than 8,000 SF.  The present use of this property is permitted under this zoning albeit existing legal non-conforming.

 

HUD Flood Plain Statement:

 

The subject property is not located in an area designated by HUD as having special flood hazards.  Specifically, it is located in Community-Panel #180163, Map Page 03B, date 10/15/81.  This map identifies the subject as being located in Flood Zone “C”.  A “C” zone is designated as being outside of the 500-year flood plain.

 
 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Pertinent Data (cont.)

 

Legal Description:

 

The legal description found in the Portage Township Assessor’s records is for the entire area owned by Stouffer Industries, Inc.

 

EAST PORTION OF LOAT A 1ST REPLAT OF LOTS 3 & 4 MILL RACE SUB.

 

An additional legal description was found on the survey and this is as follows:

 

A PART OF THE EAST ONE HALF OF THE SOUTHWEST QUARTER OF SECTION 1, TOWNSHIP 37 NORTH, RANGE 2 EAST, PORTAGE TOWNSHIP, CITY OF SOUTH BEND, ST. JOSEPH COUNRTY, INDIANA AND DESCRIBED AS THE FIRST REPLAT OF MILL RACE SUBDIVISION.        

 

 

Taxes and Assessments:

 

Key Number:

50-53-34-103-244.000-006 and

50-53-34-103-245.000-006

 

 

Assessed Value

 

Land:

$  67,100.00

Improvements:

$136,300.00

 

 

Total:

$203,400.00

 

 

 

The subject property is located in Marshall County, and the tax rate, with state tax credit, is 16.0036.  Therefore, the taxes for 2001 payable in 2002 are:

 

$203,400  X  ?????  /  100  =  $3,963.68

 

Date of Inspection:

 

The property was inspected on January 29, 2002.

 
 

 

 


Date of Appraisal:

 

The date upon which this appraisal applies is February 8, 2007.

 

Purpose of the Appraisal:

 

The purpose of the appraisal is to estimate the fair market value of the subject property.  Market value is defined as:

 

     The most probable price which a property should bring in a competitive and

     Open market under all conditions requisite to a fair sale, the buyer and seller,

     each acting prudently, 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:

 

1.    buyer and seller are typically motivated;

 

2.    both parties are well informed or well advised and each acting in what he

considers his own best interest;

 

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

 

4.    payment is made in terms of cash in U.S. dollars or in terms of financial

arrangements comparable thereto; and

 

the sales 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.

 

In simple terms, it is the likely selling price of the subject property as of the date of this appraisal,

 

Scope of the Appraisal:

 

This appraisal is intended to be an “Appraisal Assignment” as defined in the Standards of Professional Practice of the American Institute of Real Estate Appraisers; i.e., it is our intent that the results of the analysis, opinion, or conclusion be that of a disinterested third party.  It is our intent that all appropriate data deemed pertinent to the solution of the appraisal problem be collected, confirmed and reported in conformity with the Standards of Professional Practice

of the Appraisal Institute.  The extent of the work and the size of the report are intended to be appropriate in relation with the significance of the appraisal

problem.

 

 
 

 

 

 


    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Environmental Disclaimer:

 

The Appraiser is not an environmental engineer.  This appraisal is done without benefit of an environmental audit.  This appraisal is not an environmental audit.  The value conclusions expressed in this report are based on the assumption that there is no environmental damage.  If such damage exists, the value conclusion may be affected.

 

Function of the Appraisal:

 

The function of the appraisal is for mortgage loan purposes.

 
 


HIGHEST AND BEST USE ANALYSIS

 

 

HIGHEST AND BEST USE IF VACANT

 

   Legally Permissible

   The only permitted uses under zoning that are consistent with prevailing land use patterns in the area are commercial uses.

 

   Physically Possible

   There are no physical limitations that would prohibit development of any of these uses on the site.

 

   Financially Feasible

   Based on our analysis of the market, there is currently adequate demand for commercial use in the subject’s area.  It appears that a newly developed commercial use on the site would have a value commensurate with its cost.  Therefore, commercial use is considered to be financially feasible.

 

   Maximally Productive

   There does not appear to be any reasonable probable use of the site that would generate a higher residual land value than commercial use.

 

   Conclusion

   The highest and best use of the subject is for its present use as apartments.

 

AS IMPROVED

   The existing improvements are currently leased and produce a significant positive cash flow that we expect will continue.  Therefore, a continuation of the current use, and the value of the existing improved property exceeds the value of the site, as if vacant.  For these reasons, continued data center use is concluded to be maximally productive, and the highest and best use of the property as improved.

 

MOST PROBABLE BUYER

   The most probably buyer is a regional or national investor such as a REIT.

 

 

 

 

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



BRIEF COMMENTS ON LOCATION

 

 

In the preparation of this report, as well as scores of other assignments in this metropolitan area over recent years, the Appraiser has reviewed a massive amount of locational data.  However, since the client is already familiar with this area and this particular location, setting out detailed locational data would appear to serve no useful purpose.  Rather, a brief discussion on locational factors is confined to the following comments considered to be particularly relevant.  For those interested in statistical information about the city, reference should be made to the “General Area Information” in the addenda.

 

1.    The subject is in a residential neighborhood.

 

2.    The neighborhood is a small town surrounded by agricultural land.

 

3.    There is a lake close to the town that draws some recreation visitors.

 

4.    The town is typical for towns in northern Indiana.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


INSERT MAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


IMMEDIATE AREA AFFECTING MARKETABILITY OF SUBJECT PROPERTY

In the “Highest and Best Use” of this report, I have gone to great lengths to explain the various changes which had a profound affect on the subject neighborhood. 

 

Madison Center has been the major catalyst as far as changing and upgrading the subject neighborhood. 

 

Numerous changes have occurred not only as far as Madison Center property, but other changes, such as an apartment complex known as The Pointe at St. Joseph, have occurred.  These are high quality apartments that have substantially increased the residential occupancy of this neighborhood.

 

I have also mentioned the efforts on the part of the City to upgrade and beautify this neighborhood, and these efforts are continually, particularly in the area just north of Crescent Avenue.

 

A Marriott Residence Inn is located in the northerly portion of Niles Avenue on the east side of the street just south of Corby Boulevard.

 

There have been some new office buildings constructed on Niles Avenue south of LaSalle Street.  These include the AM General Headquarters building and the McGladrey & Pullen building.

 

The outlook for the neighborhood appears to be extremely bright.  It is presumed that somewhere in the not too distant future, the Rose Fuel & Materials company, which is located on the east side of Niles Avenue and Madison Street, will eventually find their land too valuable to be used for its present purposes.  This would make some choice building sites available on Niles Avenue. 

 

 

 

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



SITE DESCRIPTION

 

 

Reference should be made to the Plot Plan on the following page. 

 

It should be emphasized that the Oyster Bar occupies what might be called the northwesterly portion of the Stouffer Industries, Inc. total property.  I have attempted to delineate with heavier markings the approximate boundaries of the subject property.

 

As noted on the drawing, the site has approximately 235’ of frontage on Madison Street.  It has 140’ across the south side.  It has approximately 210’ on the east side, and 250’ along the East Race.  It contains a total of approximately 37,400 square feet, or .86 acre, plus or minus.

 

The subject property is located in the city of South Bend and is served by city water, sewer, gas and electricity.

 

The terrain is level, however, it is approximately 3’ lower than the rest of the Stouffer Industries, Inc. property.  There are 110 parking spaces available on the upper level.  This is a paved asphalt parking lot lined for parking spaces.  There are also 20 parking spaces on the lower concrete area.

 

It is my understanding that the north end of the building has settled since the addition of the East Race.  Water flues removed from the subject had unstable soils added and caused the settling.

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


PLOT PLAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


SITE VALUATION

 

 

Due to the size and location of the subject town, no land comparables were available in the subject neighborhood.  The appraisers contacted local real estate offices and confirmed no sales comparables were available and to obtain information on the opinion of value of the subject site. The town is typical of smaller rural towns in central Indiana and agriculture predominates the area.

 

 

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



DESCRIPTION OF IMPROVEMENTS

 

The following is a brief description of the improvements.  This is not an engineering or an architectural report, and is not intended to be such.  I have included photographs of both interior and exterior to assist the reader in visualizing the improvements.

 

DESCRIPTION

 

Type of Space:

3 1-story frame apartment buildings

 

 

Construction Class:

D

 

 

Stories:

1

 

 

Year Built:

1981

 

 

Gross Sq. Ft.:

6,416

 

 

Net Sq. Ft.:

6,416

 

 

Foundation: 

The foundation is a concrete slab.  This is a raised concrete slab.

 

 

Exterior Walls: 

The exterior walls are fiberboard siding.

 

 

Interior Walls: 

The interior walls are drywall with painted surfaces.

 

 

Roof: 

This is a pitched shingle roof.  I did not personally inspect the roof surface.  However, there was no indication of roof leakage based on interior inspection.

 

 

Ceilings: 

The ceilings are drywall with a height of approximately 9’.

 

 

Windows & Doors: 

 Standard windows and doors. 

 

 

Floors: 

The floors are carpet, vinyl and tile.

 

 

Insulation:

Concealed.

 

 

 

 

Electric: 

APX 100 amp each unit; the lighting is incandescent and fluorescent.

 

 

Plumbing: 

1 bath and kitchen with total of 8 fixtures.

 

 

Kitchen:

The kitchen has range, oven, refrigerator and cabinetry.

 

 

HVAC: 

The furnace is gas with through-the-wall air conditioning.

 

 

Sprinklers: 

None.

 

 

General Comments: 

Reportedly, the pending sales price is $765,000 for three apartment complexes.  This apartment building is one of the three.  Reportedly, the rehab cost is $635,000 to go towards all three apartments.  The Appraiser’s opinion of value is based upon a hypothetical condition, completion of rehab.  The Appraisers are making an extraordinary assumption that the rehab of the improvements will be completed as planned and in a reasonable time frame.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


INSERT PHOTOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INSERT PHOTOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

VALUATION ANALYSIS

 

VALUATION METHODOLOGY

   Appraisers usually consider three approaches to estimating the market value of real property.  These are the cost approach, sales comparison approach and the income capitalization approach.

 

   The cost approach assumes that the informed purchaser would pay no more than the cost of producing a substitute property with the same utility.  This approach is particularly applicable when the improvements being appraised are relatively new and represent the highest and best use of the land, or when the property has unique or specialized improvements for which there is little or no sales data from comparable properties.

 

   The sales comparison approach assumes that an informed purchaser would pay no more for a property than the cost of acquiring another existing property with the same utility.  This approach is especially appropriate when an active market provides sufficient reliable data.  The sales comparison approach is less reliable in an inactive market, or when estimating the value of properties for which no directly comparable sales data is available.  The sales comparison approach is often relied upon for owner-user properties.

 

   The income capitalization approach reflects the market’s perception of a relationship between a property’s potential income and its market value.  This approach converts the anticipated net income from ownership of a property into a value indication through capitalization.  The primary methods are direct capitalization and discounted cash flow analysis, with one or both methods applied, as appropriate.  This approach is widely used in appraising income-producing properties.

 

   Reconciliation of the various indications into a conclusion of value is based on an evaluation of the quantity and quality of available date in each approach and the applicability of each approach to the property type.

 

   Use of the approaches in this assignment is summarized as follows:

 

APPROACHES TO VALUE

Approach

Applicability to Subject

Use in Assignment

Cost Approach

Sales Comparison Approach

Income Capitalization Approach

Not applicable

Applicable

Applicable

Not Utilized

Utilized

Utilized

 

 

 

 

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SALES COMPARISON APPROACH

Our search for comparable sales focused on transactions within the following parameters:

 

  • Property Type:  Apartments
  • Location:  Midwest
  • Size:  Less than 200,000 square feet
  • Age/Quality:  Older and good quality
  • Transaction Date:  2002 to present

 

The most relevant sales are summarized in the following table.

 

SUMMARY OF COMPARABLE IMPROVED SALES

 

 

 

No.

 

 

Name/Address

 

Sale

Date

Yr. Built;

# Stories;

% Occ.

Acres;

FAR;

Parking Ratio

Clear Height;

% Office;

Prop Rights

 

Sales Price

 

Rentable

SF

 

$/Rentable

SF

 

Cap

Rate

Subj

1995-2009 Faith Ave.

Bremen

IN

 

1981

2.0

 

 

 

 

 

1

1305 W. Vistula

Elkhart

IN

2003

1973

2-brick

85%

11.6

-

-

-

-

Fee Simple

$4,250,000

161,000

$242.24

10.00%

2

322 Main St.

Lakeville

IN

2004

1973

2-frame

100%

.1955

-

-

-

-

Fee Simple

$103,000

88,134

$179.27

9.00%

3

321 W. 4th St.

Mishawaka

IN

2002

1972

2-frame/msnry

-

.227

-

-

-

-

Fee Simple

$350,000

108,336

$218.76

-

 

 

 

 

 

 

 

 

 

 

 

 

 

SALES COMPARISON APPROACH

 

Improved Sale 1

 

Name:

 

 

 

Address:

 

 

 

Date of Sale:

 

 

 

Grantor:

 

 

 

Grantee:

 

 

 

Recordation:

 

 

 

Consideration:

 

 

 

Terms:

Cash to Seller

 

 

Adjusted Sale Price:

 

 

 

Physical Data:

 

 

Year Built:

 

 

Land Area:

 

 

Parking:

 

 

Rentable Area:

 

 

Number of Units:

 

 

Project Density:

 

 

Average Unit Size:

 

 

 

 

Type of Construction:

 

 

 

Amenities:

 

 

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



1995-2009 Faith Avenue, Bremen, IN

                                                                                                                                       

                                                                                                                                       

Comparable Sales

 

 

 

 

 

 

 

Sale

Date

Location

Bldg. Size

Land Size

Price

Price/SF

 

 

 

 

 

 

 

Subject

 

1995-2009 Faith Ave.

Bremen

IN

6,416

2.0 Acres

 

 

1

2003

1305 W. Vistula

Elkhart

IN

120,960

11.6 Acres

$4,250,000

$35.14

2

2004

322 Main St.

Lakeville

IN

3,840

.1955 Acres

$103,000

$26.82

3

2002

321 W. 4th St.

Mishawaka

IN

6,642

.227 Acres

$350,000

$52.69

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sale Adjustments

Sale

Sale Price/SF

Location/     Size

Time

Age/Phys Depr

Market Conditions

Adj.Price/SF

 

 

 

 

 

 

 

1

$35.14

 

6%

+4%

 

$57.80

 

 

 

 

 

 

 

2

$26.82

 

5%

-10%

 

$57.09

 

 

 

 

 

 

 

3

$52.69

 

0

+7.5%

 

$58.90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mean $57.59/SF unadjusted prices.                                                                                                                

Standard Deviation less than 2%                                                                                                                    

                                                                                                                                       

Note:  The subject is newer than the comparables.  Comparable 2 is closest to the subject, older, poor condition, shared bathroom, and former single family home.  Comparable 1 is much larger and has larger land size.  The Appraiser’s opinion of the subject is that it is most  similar to Comparable 3 with more land.                                                                                         

                                                                                                                                       

The better sales are 2 and 4, reflected about $57.10 to $56.66/SF, with concluded value of subject considering the unadjusted mean of all the sales at $57.59/SF, to estimate $57.50/SF                                                                                                     

                                                                                                                                       

              69,300 SF X $57.50/SF        =                    $3,984,750                                    

                                                                                                                                       

              Value by Sales Comparison Approach     $3,985,000                                    

 

 

 

 

 

 

 

 

 

 

 

INCOME APPROACH

 

 

The Income Approach is a means of estimating the value of a property based upon the income it is either producing or is capable of producing.

 

In the case of the subject property, we are dealing with an auto repair shop that is owner-occupied.  It is therefore necessary to establish a potential income stream for this garage.  Typically, similar buildings are also owner-occupied so it is quite difficult to establish a market rent for this building.  It contains 5,156 square feet and is located on a heavily traveled street.  It has good consumer identification, and after considering all of theses factors, I have concluded that a rent of $4,000 per month would be an appropriate rental.  Typically, the renter would pay his own heat, utilities and snow removal, and the owner would pay the taxes, insurance and exterior maintenance of the building.

 

In the case of the 1½ story rental, I have estimated the market rent at $600 per month with the tenant paying the utilities and the owner paying taxes and insurance for the building and exterior maintenance.  The apartment is rented for $475 per month, which I felt was a realistic market rent.  This would also be rented under similar circumstances.

 

I felt the major income producer would be the mini-warehouse units and I have used the new proposed rent schedule for these units.  These are shown on the following page.

 

Vacancy and Rent Loss:

 

In the history of any rental property, one must consider Vacancy and Rent Loss.  The auto repair shop, which can be adapted to alternate uses, would require a particular type of renter which may not be that easy to attract.  Once it was rented, however, I feel that the renter would be somewhat permanent.  The rental dwellings would be very easy to rent since there is a strong demand for rental unites in this area.

 

The mini-warehouses will take some time to achieve a full lease out period.  Even in the best of times there will be 10 percent vacancy for the mini-warehouse units simply based upon the nationwide statistics as far as turnover.  The major problem encountered in achieving the 90 percent occupancy level will be the public’s realization that these units exist.  This may take from one to two years.

 

In arriving at my Vacancy and Rent Loss Rate, I have used 25 percent.  I feel this will cover the rent out of the mini-warehouses, as well as a tenant for the auto repair shop.

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 


Text Box: RENTAL ANALYSIS SUMMARY


No.	
Name/Address	
Monthly Rent	
Rent/SF	
Annual 
Rent	
Overall
Comparison to Subject


Subj	
1995-2009 Faith Ave.
Bremen
IN
				

1	
1305 W. Vistula
Elkhart
IN
				
Similar

2	
322 Main St.
Lakeville
IN
				
Similar

3	
321 W. 4th St.
Mishawaka
IN
				
Similar

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


ADDENDA

 

 

 

 

 

 

QUALIFICATIONS OF THE APPRAISER

 

LICENSE REGISTRATION

 

CERTIFICATION OF THE APPRAISER

 

LIMITING CONDITIONS AND ASSEMPTIONS

 

HAZARDOUS WASTE DISCLAIMER

 

GENERAL AREA INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


QUALIFICATIONS OF THE APPRAISER

 

 

 

Philip C. Krause, GAA

 

Mr. Krause has been a commercial Broker and commercial Appraiser since 1978 for:  Cushman & Wakefield of New York; Del Webb Corp. of Phoenix, AZ; Harrington, Tiedeman & O’Leary of Chicago, IL; Appraisal Group, Inc. of South Bend, IN. 

 

He has a broad range of experience in valuation and analysis of all types of commercial real estate, including but not limited to , individual low to high rise office buildings, industrial parks, mixed use properties, land, land developments, golf courses, marinas and race tracks. 

 

Valuations, market and rent studies have been prepared on proposed, partially completed, renovated and existing structures.  These assignments have been performed on behalf of institutional investors and other clients.  Multiple asset valuations and due diligence assignments have been completed on behalf of investment banking firms, banks, corporations, municipalities, school corporations, the Small Business Association, universities, and the courts.  Assignments have included a wide variety of properties across the United States.

 

Mr. Krause also has many years of experience as a review appraiser and processor for assessments on appraisal engagements for various township and county assessors.

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



CERTIFICATION OF THE APPRAISER

 

 

The undersigned does hereby certify that, except as otherwise noted in this appraisal report:

 

1.     I have personally inspected the property appraised.

 

2.     I have no present or contemplated future interest in the real estate that is the subject of this report.

 

3.     I have no personal interest or bias with respect to the subject matter of this appraisal report or the parties involved.

 

4.     To the best of my knowledge and belief, the statements of fact contained in this appraisal report, upon which the analysis, opinions and conclusions expressed herein are based, are true and correct.

 

5.     This appraisal report sets forth all of the limiting conditions (imposed by the terms of my assignment or by the undersigned) affecting the analysis, opinions and conclusions contained in this report.

 

6.     This appraisal report has been made in conformity with and is subject to the requirements of the Code of Professional Ethics and Standards of Professional Conduct of the Appraisal Institute.

 

7.     No one other than the undersigned prepared the analysis, conclusions and opinions concerning real estate that are set forth in this appraisal report.

 

8.     The amount of my fee is not contingent upon reporting a predetermined value, or upon the amount of the value estimate.

 

9.     This appraisal assignment was not based on a requested minimum valuation, a specific valuation or the approval of a loan.

 

Disclosure of the contents of this appraisal report is governed by the By-Laws and Regulations of the Appraisal Institute.

 

Neither all nor any part of the contents of this report (especially any conclusions of value, the identity of the Appraiser or firm with which he is connected, or any reference to the Appraisal Foundation, or to the GAA designation), shall be disseminated to the public through advertising media, public relations media, news media, sales media, or any other public means of communication without prior written consent and approval of the undersigned.

 

The Appraisal Foundation conducts a voluntary program of continuing professional education for its designated

 

 

Dated:___________________________                   __________________________

                                                                                    Philip C. Krause


 

LIMITING CONDITIONS AND ASSUMPTIONS

 

 

This appraisal report is subject to the following limiting conditions and assumptions:

 

1.     No responsibility is assumed for legal descriptions or for matters including legal or title considerations.  Title to the properties is assumed to be good and marketable unless otherwise stated.

 

2.     The properties are appraised free and clear of any or all liens or encumbrances unless otherwise stated.

 

3.     Responsible ownership and competent management are assumed.

 

4.     The information furnished by others is believed to be reliable.  However, no warranty is given for its accuracy.

 

5.     All engineering is assumed to be correct.   The plot plans and illustrative materials in this report are included only to assist the reader in visualizing the property.

 

6.     It is assumed that there are no hidden or unapparent conditions of the properties, subsoil, or structures that render them more or less valuable.  No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them.

 

7.     It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined and considered in the appraisal report.

 

8.     It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless nonconformity has been stated, defined and considered in the appraisal report.

 

9.     It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based.

 

10.  It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the properties described and that there is no encroachment or trespass unless noted in the report.

 

11.  All maps, title and area data furnished the Appraiser or obtained from various city and county departments are assumed to be correct.

 

12.  This appraisal is made subject to legal descriptions which describe the parcels mentioned in this report.

 

13.  The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization.  The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used.


 

14.  Possession of this report, or a copy thereof, does not carry with it the right of publication.  It may nor be used for any purpose, by any persons other than the party to whom it is addressed, without the written consent of the Appraiser, and in any event, only with proper written qualification and only in its entirety.

 

15.  The Appraiser herein by reason of this appraisal is not required to give further consultation, testimony, or be in attendance in court with reference to the properties in question unless arrangements have been previously made.

 

16.  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, sales, or other media without the prior written consent and approval of the Appraiser.

 

17.  Unless otherwise stated in this report, the existence of hazardous substances, including without limitation, asbestos poly chlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to the attention of, nor did the Appraiser become aware of such during the Appraiser’s inspection.  The Appraiser has no knowledge of the existence of such materials on or in the properties unless otherwise stated.  The Appraiser, however, is not qualified to test such substances or environmental conditions exist, it may affect the value of the property.  The value estimated is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss in value.  No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them.

 

18.   The Americans with Disabilities Act (ADA) became effective January 26, 1992.  The Appraiser has not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA.  It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act.  If so, this fact could have a negative effect upon the value of the property.  Since the Appraiser has no direct evidence relating to this issue, he did not consider possible noncompliance with the requirements of the ADA in estimating the value of the property.

 

 

 

 

 

 

 

 

 

 

 

 

 


HAZARDOUS MATERIALS AND LIMITING CONDITIONS

 

 

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 the 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 presence of substances such as asbestos, urea-formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property.  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 to discover them.  The client is urged to retain an expert in this field, if desired.

 

 

 

 

 

 

 

 

TOXIC WASTE AND ENVIRONMENTAL COMPLIANCE

 

 

The Appraiser assumes no responsibility or liability whatsoever for the identification or discovery of any hazardous substances as defined by the Comprehensive Environmental Response Compensation and Liability Act of 1980 (“CERLA”), 42 USC 9601 (14), pollutants or contaminants as defined in CERLA, 42 USC 9601 (14), or hazardous wastes defined by the Resource Conservation and Recovery Act (RCRA), 42 USC 6903 (5), or other similar applicable federal or state laws and regulations including, but not limited to, asbestos, oil deposited over, beneath, in or on the property under appraisement.  The inspections of the property made by this Appraiser during the course of this appraisal assignment were made solely to estimate the age and condition of the improvements.

 

It is strongly recommended that a separate inspection be ordered by the appraisal customer from a qualified environmental engineer or consultant which would address matters of toxic waste and environmental compliance.

 

 

 

 

 


SOUTH BEND

 

GENERAL AREA INFORMATION

 

 

The City of South Bend is the county seat of St. Joseph County, Indiana.  It is located approximately six miles from the Indiana/Michigan state line, and midway between Chicago and the Ohio state line.  It is a transportation hub served by five railroads, major truck lines, and several airlines.  The area is served by the Indiana Toll Road (I 80/90), with close proximity to I-94.  U.S. 31/33 is the major north/south connector.

 

The climate in South Bend is moderate.  The average altitude is 773 feet above sea level.  The mean annual temperature is 50 degrees, and the precipitation is approximately 40 inches.  The area enjoys an ample supply of good water.

 

The eight-county retail trade area has a population of 642,000 with St. Joseph County indicating a population of 247,052, and the City of South Bend having a population of 105,511.  The City, like most cities, is static in growth, with most new housing being constructed in the suburbs, thus increasing the county growth rate at a more rapid pace.

 

The S.M.S.A. ranks this area in the United States as 142nd out of 405 in Metropolitan Areas, 81st in Households, 80th in Retail Sales, and 76th in Net Effective Buying Income.  The Net Effective Buying Income is $32,605 per household and $13,072 per capita.  There are a total of 43,100 households in the community, of which approximately 70% are owner-occupied.  There has been very limited construction of homes in the moderate price class, and most building, which has taken place in St. Joseph County, has been more expensive homes.  Most of the construction has taken place in the Knollwood Quail Ridge and Harris Township areas in the extreme northern end of the county.

 

Of the general work force, manufacturing comprises 29% of all employment in the county, with a total of 27,277 persons working in 404 manufacturing firms.  Non-manufacturing establishments employ 71% of all employees in the county.  There are 67,593 persons employed in 4,280 non-manufacturing establishments.  Of these, trade groups with 24,296 employees working for 1,859 firms are the largest of the non-manufacturing industries.

 

Service establishments have been one of the fastest growing non-manufacturing areas in the work force and comprise 35% of the non-manufacturing work force.  State and local governments account for 15% of the county’s non-manufacturing employment.  Transportation, communications and utilities account for a total of 4,238 workers employed in 142 firms.

 

Construction has always been an important employment area and accounts for 5% of the county’s non-manufacturing employment, with a total of 3,631 employees working for 177 general contractors and 337 subcontractors.

 

The old manufacturing base of the county has eroded somewhat over the last 25 years, and some of the longtime industries have either gone out of business or have moved to the south.  However, some newer industries, such as I/N Tek and I/N Kote, located west of South Bend and just east of New Carlisle on U.S. 20, have had a substantial impact upon the industrial development and growth in the area.  Some larger companies in the


area include Allied Signal, Ameritech, Nyloncraft, Trans Tech Electric, and the Ethanol Plant.

 

The Michiana Regional Transportation Center is the transportation hub of St. Joseph County.  In addition to its capability of handling large jet aircraft, it has recently constructed a new South Shore Railroad terminal.  It also serves as a United Limo pickup station for direct transportation to Chicago Midway and O’Hare Airports.

 

South Bend has become an important educational center as far as higher education is concerned.  The university of Notre Dame and its facilities have long been an integral part of the city and is one of the major employers in St. Joseph County.  Indiana University at South Bend continues to expand its campus.  St. Mary’s College, Bethel College, Holy Cross College and vocational colleges such as Indiana Vocational Technical College continue to grow.

 

Memorial Hospital, St. Joseph Medical Center, and Michiana Community Hospital are major facilities offering a full scope of medical services.  The area is competently protected by an adequate police force and fire protection service.  There are 235 churches in the area, of all denominations.

 

The University Park Mall, located north of the city, is a regional mall attracting buyers from not only St. Joseph County, but also southwestern Michigan.  There is also Erskine Plaza on the south side of the city.  The Grape Road area has become one of the busiest commercially developed areas in northern Indiana, and new retail developments continue to be built.

 

The Central Business District has almost ceased as a retail entity, and now contains governmental offices and professional offices.  The Century Center convention building continues to attract more and more conventions and trade shows.  There have also been a number of office buildings constructed in the central business district and they include One Michiana Square, Teachers Credit Union and River Glen Plaza, to name a few.  The national College Football Hall of Fame building is the newest addition to the central business district.

 

 Some of the cultural and recreational developments that have taken place include the East Race Waterway, which offers water sports such as rafting and kayak competition.  The Stanley Coveleski Stadium, home of the South Bend Silver Hawks minor league baseball team, has become an outstanding sports center for the area.  Athletics at the University of Notre Dame also are an integral part of the local sports picture.

 

Even though much of the original industrial base of the area has eroded, the area continues to show growth and promise.  The Blackthorn Industrial and Office Park, located just north of the Michiana Regional Transportation Center, is one of the most recent steps to attract highly technical industries.  The Blackthorn Golf Course is an outstanding 18-hole course.  Generally speaking, the outlook for South Bend and the surrounding area is highly optimistic.