000 Garrisonville Rd
Stafford, VA 22554

From a 2019 appraisal report: Highest and Best Use “As Though Vacant”: Commercial use after rezoning to commercial. Properties to the east and south of the subject are zoned commercial and improved with commercial buildings, several of which have been rezoned to commercial from A-1 over the last 10 years to 15 years. Rezoning is considered likely because of recent rezoning of adjoining parcels from A-1 to commercial. Highest and Best Use “As Improved”: Continued use of the existing mobile home park as an interim use until it is rezoned B2 and sold or developed for commercial use. The existing mobile home park does not contribute income in excess of the land value for its highest and best use “As Though Vacant” and are an under improvement of the site. Based on income and expense data for the subject provided by the client, the value indication of the subject’s continued use as a mobile home park is $800,000, which is not its highest and best use conclusion. The subject’s most likely buyer would be an investor who would purchase the property to rezone it to commercial and sale or develop the site for commercial use. VALUATION AND RECONCILATION: The “As Is” market value for the subject would be what its most likely buyer would be willing to pay for the subject as it was on the effective date of value for its highest and best use conclusion of commercial development. The income approach utilizing a discounted cash flow analysis (DCF) is used to provide an indication of value for the subject’s highest and best use conclusion. This method discounts to a present value as of the effective date of value all the forecast future income and expenses associated with rezoning the property to commercial and then selling it to a commercial end user or developer after rezoning. Income includes the sale of the subject site after rezoning and the interim income from continuing to operate the mobile home park until rezoning is secured. Expenses include the out of pocket expenses to rezone the property including government rezoning fees, engineering fees, and attorney fees in addition to an appropriate entrepreneurial incentive that is sufficient to entice a typical investor to purchase the subject “As Is” zoned A-1 and assume all the risk, time, and expenses associated with rezoning the property to commercial and then marketing it for sale.