The Walters Group was engaged to perform a Development Feasibility Valuation (DFV) for ownership of a small 11,200 SF assemblage in Belleville New Jersey. The land had a 2 family home, a 1,000 SF auto repair and a series of small garages. The asset had recently been appraised at $550, 000 and the Assessed Value was $415,000. Performance of the DFV included:

• A micro analysis of possible within zoning uses
• Determination of Highest and Best Use (HBU)
• Elements of a within Zoning Preliminary Application were developed/considered in support of HBU:
  • Informal Site Plan
  • Ground level and underground level parking
  • Footprint and FAR
  • Impervious Surface limitations
  • Net Usable and Gross per floor square footage
  • Unit size and room configuration
  • Retail configuration and location
  • Loading Zone size and placement
  • Height and Set back requirements
  • Amenity location, type and size
  • Three proposed elevations and one showing roof top amenities
    • There were three separate roof top amenities
    • Two larger interior amenities on three levels
      • media/recreation area and a duplex fitness facility

• Fully supported income/return analysis for HBU
  • Included Affordable obligation
  • Incorporated a 5 yr Tax Abatement solidified by TWG with township
  • Soft and hard Development costs and Income were aged for five years

The result of analysis yielded a “by right” ground up having 33 res units and a 2,500 SF retail. Prior to submitting finding to Seller Client we met with township presenting what was in essence a Preliminary Development Application….and received an informal “sign off” on the project. The full monetization/underwriting resulted in an “as is” Development Value for the land of $1,400,000 and a Pro-Forma Finished Fully Absorbed Value of the to be completed development of over $12,000,000.