APPRAISAL REPORT FOR
3010 N Mannheim Road,
Franklin Park,
Cook County, Illinois, 60131
AS OF
January 24, 2024
PREPARED FOR
Mr. Nicholas Walny
Director of Community
Development
Village of Franklin Park
9500 W Belmont Ave
Franklin Park, IL 60131
PREPARED BY
Praedium Valuation Group
1658 N Milwaukee Ave., Ste B,
PMB 5460
Chicago, Illinois 60647
File Name: 22379
www.pvgchicago.com
1658 N. Milwaukee Ave,
Ste B PMB 5460
Chicago
Illinois
, 606
47
www.pvgchicago.com
[email protected]
773-665-8361
Fax: 773-665-8342
February 6, 2024
Mr. Nicholas Walny
Director of Community Development
Village of Franklin Park
9500 W Belmont Ave
Franklin Park, IL 60131
Re:
Appraisal Report
3010 N Mannheim Road, Franklin Park,
Cook County, Illinois, 60131
File Name:
22379
Dear Mr. Walny:
At your request, we have prepared an appraisal for the above referenced property, which is
briefly described as follows:
The subject property is a dual corner, rectangular vacant site comprising approximately 56,480
square feet (sf) of land along a primary commercial thoroughfare in the Village of Franklin Park.
It is zoned C-3. The site had previously been improved with a Super 8 motel, which was
demolished in 2011 subsequent to a fire. The subject property and valuation methodology are
further detailed in the appropriate sections of this report.
Please reference page 11 of this report for important information regarding the scope of research
and analysis for this appraisal, including property identification, inspection, highest and best use
analysis and valuation methodology.
We certify that we have no present or contemplated future interest in the property beyond this
estimate of value. We have not performed any prior services regarding the subject within the
three years immediately preceding the appraisal date.
www.pvgchicago.com
Mr. Walny
Village of Franklin Park
February 6, 2024
Page 2
Your attention is directed to the Limiting Conditions and Assumptions section of this report
(page 47). Acceptance of this report constitutes an agreement with these conditions and
assumptions. In particular, we note the following:
Hypothetical Conditions:
There are no hypothetical conditions for this appraisal.
Extraordinary Assumptions:
There are no extraordinary assumptions for this appraisal.
Based on the appraisal described in the accompanying report, subject to the Limiting Conditions
and Assumptions, Extraordinary Assumptions and Hypothetical Conditions (if any), we have
made the following value conclusions:
Current Market Value of the Subject Property, As Is:
The market value of the fee simple estate of the property, as is, as of January 24, 2024, is:
$540,000
Five Hundred Forty Thousand Dollars
The market exposure time preceding January 24, 2024 would have been 6 to 12 months and the
estimated marketing period
as of January 24, 2024 is 6 to 12 months.
This report was prepared in conformance with USPAP appraisal guidelines as well as those of
the Appraisal Institute.
Respectfully submitted,
Praedium Valuation Group
Mary Wagner, MAI
IL Certified General Real Estate
Appraiser
License No. 553-001102
License Expires:
September 30, 2025
www.pvgchicago.com
TABLE OF CONTENTS
Aerial View ..................................................................................................................................... 1
Subject Photographs........................................................................................................................ 2
Summary of Important Facts and Conclusions ............................................................................... 7
Key Analysis Points ........................................................................................................................ 9
Scope of Work .............................................................................................................................. 11
Market Area Analysis ................................................................................................................... 13
Location Map – Metro Area ..................................................................................................... 13
Market Area Location ............................................................................................................... 14
Community Map ....................................................................................................................... 15
Property Description ................................................................................................................. 19
Site ............................................................................................................................................ 19
Sidwell Map .............................................................................................................................. 21
Flood Map ................................................................................................................................. 22
Assessment and Taxes .................................................................................................................. 24
Zoning ........................................................................................................................................... 25
Zoning Map ................................................................................................................................... 26
Highest and Best Use .................................................................................................................... 27
Highest and Best Use – “As If Vacant” .................................................................................... 27
Highest and Best Use – “As Improved” ................................................................................... 28
Valuation Methodology ................................................................................................................ 29
Analyses Applied ...................................................................................................................... 30
Sales Comparison Approach ......................................................................................................... 31
Land Comparables .................................................................................................................... 31
Comparables Map ..................................................................................................................... 38
Analysis Grid ............................................................................................................................ 38
Comparable Land Sale Adjustments ......................................................................................... 40
Conclusion – Land Valuation ................................................................................................... 44
Certification .................................................................................................................................. 45
Addenda ........................................................................................................................................ 46
Limiting Conditions and Assumptions ..................................................................................... 47
Legal Description ...................................................................................................................... 49
Environmental Phase I Site Assessment Executive Summary ................................................. 50
Appraiser Qualifications ........................................................................................................... 52
Engagement Letter .................................................................................................................... 54
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AERIAL VIEW
Source: Cook County GIS
Note: Subject outlined in red above
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SUBJECT PHOTOGRAPHS
LOOKING WEST AT SUBJECT FROM MANNHEIM ROAD
LOOKING NORTHWEST AT SUBJECT SITE
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LOOKING NORTHEAST AT SUBJECT SITE
LOOKING SOUTH AT SUBJECT SITE
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LOOKING SOUTHEAST AT SUBJECT SITE
VIEW NORTH ON MANNHEIM ROAD
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VIEW WEST ON SCHILLER BOULEVARD
VIEW EAST ON CENTER AVENUE
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VIEW WEST ON CENTER AVENUE
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SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS
PROPERTY IDENTIFICATION
Address:
3010 N Mannheim Road, Franklin Park,
Cook
County,
Illinois
,
60131
Description: The subject property is a dual corner, rectangular vacant site
comprising approximately 56,480 square feet (sf) of land along a
primary commercial thoroughfare in the Village of Franklin Park.
It is zoned C-3. The site had previously been improved with a
Super 8 motel, which was demolished in 2011 subsequent to a
fire. The subject property and valuation methodology are further
detailed in the appropriate sections of this report.
Tax Identification:
12
-
29
-
212
-
002,
-
003,
-
008,
-
009 and
-
013
Census Tract:
8117.01
Owner:
Village
of Franklin Park
Sale & Listing History
And Pending Contract:
The subject property was acquired by the Village of Franklin Park
via a Warranty Deed in Lieu of Foreclosure due to a demolition
lien against the grantor, ANZ Enterprises, Inc. According to the
deed (doc. #1425134073) the amount of the lien was $541,084.0
3.
This represents the expenditures by the Village to demolish the
former hotel that was on the property. There was a major fire at
the hotel in 2011 which caused significant damage and the
building required demolition. The former owner deeded the
proper
ty to the village instead of paying for the cost of demolition.
The village subsequently had a contract with a developer for
$575,000 to purchase the site and construct a strip center, but the
deal fell through as the contract purchaser was not able to o
btain a
construction loan. The TIF that used to exist for the subject has
since expired. The village is currently negotiating with another
potential purchaser.
SCOPE OF WORK SUMMARY
Report Type:
Appraisal Report
Date of Report:
February
6, 2024
Type of Value:
Market Value
Property Rights
Appraised:
Fee Simple
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Intended Use: The intended use is to establish market value to be used in
determining a fair selling price.
Intended Users: The intended user is our client, Mr. Nicholas Walny of the
Village of Franklin Park.
PROPERTY CHARACTERISTICS
Land:
Land Summary
Parcel ID
Gross Land
Area (Acres)
Gross Land
Area (Sq Ft)
Usable Land
Area (Sq Ft) Topography Shape
12-29-212-002, -003, -
008, -009, -013
1.30 56,480 56,480 Slopes up slightly
to the west
Rectangular
Zoning:
C
-
3
,
General Commercial District
Highest and Best Use
of the Site:
For a build-to-suit commercial development in accordance
with existing zoning.
Highest and Best Use
as Improved:
The subject property is a vacant site. Therefore, a Highest &
Best Use 'as improved' analysis is not applicable.
Hypothetical Conditions: There are no hypothetical conditions for this appraisal.
Extraordinary Assumptions:
There are no extraordinary assumptions for this appraisal.
VALUE CONCLUSION
Reconciled Value:
Premise:
As Is
Value Type:
Market Value
Property Rights:
Fee Simple
Effective Date:
January 24, 2024
Value Conclusion:
$540,000
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KEY ANALYSIS POINTS
The subject property consists of rectangular, dual corner, vacant site having 56,480 square feet of
land. The property is zoned C-3, General Commercial District. The site has 200 feet of frontage
on the west side of Mannheim Road, and roughly 282.4 feet of frontage on the south side of Center
Avenue and the north side of Schiller Boulevard. According to IDOT, 27,100 vehicles per day
travel along Mannheim Road, providing good exposure. There are two curb cuts onto the site from
Mannheim Road, though they have been blocked by concrete barricades. The site is currently
vacant and grass covered.
Improvements along Mannheim Road include a variety of commercial properties including
neighborhood and community shopping centers, single tenant commercial buildings, offices, auto
repair, gas stations, restaurants, hotels and motels. There are also some light industrial buildings,
particularly to the north, and township offices further to the south. There are shopping centers on
the northwest and southeast corners of Grand Avenue and Mannheim Road, two blocks south of
the subject. Rio Valley at the southeast corner is anchored by Rio Valley Supermarket, along with
a mix of local and national tenants. Wendy’s and White Castle are on outlots. The northwest
corner is improved as Franklin Marketplace which has tenants including Starbucks, Sonic, Chase,
Jersey Mikes, AT&T, T-Mobile and Pizza Hut. A new 110-room Wyndam Garden hotel is
currently under construction in Franklin Marketplace and will serve as the anchor for the shopping
center. There had been a free-standing CVS in the subdivision but the store has gone dark. The
Starbucks is at the northwest corner of Grand Avenue and Mannheim Road and is technically not
a part of the subdivision. An elementary school and a house of worship are located at the southwest
corner of Mannheim Road and Grand Avenue, and a gas station is located on the northeast corner.
The area to the west of the subject site contains older and modest residential (single family and
low-rise multifamily) and some industrial improvements.
The subject location offers good access to the area’s major thoroughfares and expressways. Access
to Interstate 290 and Interstate 294 from North Avenue is located approximately 3 miles southwest
of the subject. Interstate 294 can also be accessed approximately 2 miles north of the subject just
east of Mannheim Road. These expressways provide quick access to O’Hare International Airport,
the southern boundary of which is 1.5 miles north of the subject. Public bus service is available
along Mannheim Road. Metra Rail serves the community with two lines and two stations. The
Milwaukee District West line has a depot at 3148 Rose Street while the North Central Line has a
station at 9280 Belmont.
Following the last recession, there was little to no development of any type in the Village for a few
years. The industrial market began to recover first locally and there have been several large
industrial projects in the village. In 2016 / 2017, two new commercial strip center buildings were
constructed in the Franklin Marketplace, and the aforementioned Wyndam Garden hotel is
currently under construction. A McDonald’s, a car wash and a Quik Trip gas station were recently
approved for commercial sites in the village. Many commercial and industrial zoned sites in the
village are located within Enterprise Zones and TIF zones, which are an incentive for new
development. The subject site had been within a TIF district, but the TIF expired in 2022.
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Subject Property History
The subject property was acquired by the Village of Franklin Park via a Warranty Deed in Lieu
of Foreclosure due to a demolition lien against the grantor, ANZ Enterprises, Inc. According to
the deed (doc. #1425134073) the amount of the lien was $541,084.03. This represents the
expenditures by the Village to demolish the former hotel that was on the property. There was a
major fire at the hotel in 2011 which caused significant damage and the building required
demolition. The former owner deeded the property to the village instead of paying for the cost of
demolition. The village subsequently had a contract with a developer for $575,000 to purchase
the site and construct a strip center, but the deal fell through as the contract purchaser was not
able to obtain a construction loan. The TIF that used to exist for the subject has since expired.
The village is currently negotiating with another potential purchaser.
The last occupancy of the subject property was as a Super 8 motel operated by ANZ Enterprises.
The Village revoked their license for multiple code violations in 2009. In August of 2011, the
building was destroyed in a major fire which was later determined to be arson. The village
ordered the demolition of the building and the former owner was required to pay for it. A while
after the site was cleared and sodded, the village erected a sign on the property offering it for
sale, with the price subject to negotiation. It was not listed with a realtor or on the MLS. The
village is currently in negotiations with an interested party after a prior contract fell through.
The client provided a Phase I Environmental Site Assessment report for a prior appraisal and the
report concluded that there was no evidence of recognized environmental conditions based on
the limited assessment. Additionally, the client provided a report of findings from a limited soil
bearing analysis of the site which concluded that the site has “rubberized or intact elements of
previous structures” which prevented a thorough analysis of the soil. Reportedly, the former
hotel on the subject site had a subsurface swimming pool, and that area may have been filled
with debris from the fire during the clean-up process. The area was then covered with soil and
sod and the pool remained buried underground and filled with debris. The village has since
excavated, cleared and refilled the site, and it is reported to be construction ready.
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SCOPE OF WORK
According to the Uniform Standards of Professional Appraisal Practice, it is the appraiser’s
responsibility to develop and report a scope of work that results in credible results that are
appropriate for the appraisal problem and intended user. Therefore, the appraiser must identify
and consider:
● the client and intended users;
● the intended use of the report;
● the type and definition of value;
● the effective date of value;
● assignment conditions;
● typical client expectations; and
● typical appraisal work by peers for similar assignments.
This appraisal is prepared for Mr. Nicholas Walny, at Village of Franklin Park. The problem to
be solved is to estimate the current market value of the subject property, as is.
The definition of market value used in this appraisal is found in The Dictionary of Real Estate
Appraisal, 6
th
edition (Chicago: Appraisal Institute, 2015), and the same definition can also can
be found in the Code of Federal Regulations; “12 CFR, part 34, subpart C-Appraisal 34.42 (g).
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 and knowledgeably, and assuming the price is not affected by undue
stimulus. Implicit in this definition is the consummation of a sale as of a specified date
and the passing of title from seller to buyer under conditions whereby:
Buyer and seller are typically motivated;
Both parties are well informed or well advised, and acting in what they consider their
best interests;
A reasonable time is allowed for exposure in the open market;
Payment was made in cash in U.S. dollars or in terms of financial arrangements
comparable thereto; and
The price represents the normal consideration for the property sold, unaffected by
special or creative financing or sales concessions granted by anyone associated with
the sale.
The intended use is to establish market value to be used in determining a fair selling price. This
appraisal is intended for the use of our client, Mr. Nicholas Walny of the Village of Franklin
Park.
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SCOPE OF WORK
Report Type: This is an Appraisal Report as defined by Uniform
Standards of Professional Appraisal Practice under
Standards Rule 2-2(a). This format provides a summary
or description of the appraisal process, subject and
market data and valuation analyses.
Property Identification: The subject has been identified by the Assessor's parcel
numbers. A Plat of Survey was not provided for this
assignment.
Inspection: An observation of the subject property has been made,
and photographs taken.
Market Area and Analysis of
Market Conditions:
An analysis of market conditions has been made. The
appraiser maintains and has access to comprehensive
databases for this market area and has reviewed the
market for sales and listings relevant to this analysis.
Highest and Best Use Analysis:
An as vacant highest and best use analysis for the
subject has been made. Physically possible, legally
permissible and financially feasible uses were
considered, and the maximally productive use was
concluded.
Type of Values: Market Value
Valuation Analyses
Cost Approach:
A cost approach was not applied as the subject is vacant
land and this Approach was not applicable.
Sales Comparison Approach:
A sales comparison approach was developed as there is
adequate data to develop a value estimate and this
approach reflects market behavior for this property
type.
Income Capitalization
Approach:
An income capitalization approach was not developed
as the subject is a vacant land parcel not generating any
income. There is not a demonstrable rental market for
commercial zoned sites in the area and therefore, this
approach was not applicable and has not been
developed for this appraisal.
Hypothetical Conditions:
There are no hypothetical conditions for this appraisal.
Extraordinary Assumptions:
There are no extraordinary assumptions for this
appraisal.
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MARKET AREA ANALYSIS
Location Map – Metro Area
The subject is located in the Village of Franklin Park, approximately 14 miles northwest of
the Loop, 1.5 miles south of the southern boundary of O’Hare Airport, and 12 miles
northwest of Midway Airport.
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Market Area Location
The subject is located in the Village of Franklin Park, approximately 14 miles northwest of the
Loop, four miles south of O’Hare Airport, and 12 miles northwest of Midway Airport. The
major employers in the Chicago market area are as follows:
CHICAGO AREA MAJOR EMPLOYERS 2020
Top Employers – Chicago
Local
Employees
1. U.S. Government 52,357
2. Chicago Public Schools 38,637
3. City of Chicago 30,928
4. Advocate Aurora Health 26,335
5. Cook County 22,074
6. Northwestern Memorial Healthcare 21,999
7. University of Chicago 18,732
8. Walmart Inc. 16,711
9. Amazon.com Inc. 16,610
10. Amita Health 14,282
Source: Crain’s Chicago Business
The nation’s unemployment rate as of November 2023 was 3.7%, according to the Bureau of
Labor Statistics. The Illinois unemployment rate as of November 2023 was 4.7%, and the
Chicago metro area rate was 4.4%.
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Community Map
The subject is located within the Village of Franklin Park, IL, less than one mile south of the
“Mannheim” station along the Metra Rail’s Milwaukee District West Line. The subject has
proximate expressway access just over one mile north to I-294. Bus routes run in proximity to
the subject along Mannheim Road and Grand Avenue. The southern boundary of O’Hare
Airport is approximately 1.5 miles north of the subject.
SUBJECT
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Population Trends
The following chart details household income and population within one-mile, three-mile, and five-
mile radii of the subject property:
The populations within each of the radii cited above are expected to decline modestly between
2023 and 2028 which is consistent with many Chicago suburbs. This population trend is typical
of a market in the stabilization phase of the neighborhood life cycle.
Household Income
2023 median household income within a one-mile radius of the subject property was $71,497
while household incomes were $66,859 and $76,900 for the three-mile and five-mile radii,
respectively. The median income in the subject’s area is below the median for the Metro Area as
a whole which was estimated at $82,900 as of 2022 by the US Census Bureau. Median
household incomes within each of the aforementioned rings of the subject are expected to
increase by between 1.95% to 2.52% per year through 2028.
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Housing Trends
For-Sale Housing
The subject property is located in the Village of Franklin Park. The housing stock consists
primarily of single-family detached housing units, with limited sales of attached and 2-4 unit
properties. Median selling prices over the last three years for these housing types in the subject’s
market area follow.
Median sale prices for detached properties, which make up the majority of the market area, have
increased year-over-year for the past two years on declining volume. The median price for an
attached housing unit increased in 2023 after a decline in 2022. Overall the median price in 2023
exceeds the median in 2021. The median price for two-to-four unit residential properties was down
this past year after having increased in the previous year, however, volume is insufficient to
determine trends. Sales volume for detached housing has declined significantly in the past two
years due to higher interest rates. The median sale price for detached properties in the subject area
is slightly below the median for the Chicago Metro Area as a whole, which was $310,500 as of
year-end 2022. Overall, this area's for-sale residential market is appreciating, but on lower volume.
As interest rates remain elevated, volume is expected to remain low. However, the Fed has signaled
that the rate hike cycle is most likely over and rate cuts may occur later this year, which would
result in an increase in sales volume.
Retail Market
The subject site has commercial zoning and was recently under contract to a developer that planned
a strip center. We have considered data from CoStar pertaining to the retail market within a two-
mile radius of the subject. According to CoStar, the local retail vacancy rate has fluctuated between
1.5% and 5.2% in the last five years and currently stands at 3.9%. Our tour of the area indicated
slightly higher retail vacancy, including the aforementioned CVS, a couple of free-standing
restaurant vacancies and vacancies in area retail centers. CoStar projects that vacancy will remain
near the current level in the coming years. Further, they report that the average asking retail rental
rate has been trending upward in the past five years though at a lower rate in the past year. The
current average asking rental rate is $17.25 psf. It is projected to continue to trend upwards slightly
in the coming years.
Property % Change % Change
Type # Units Med. Price # Units Med. Price # Units Med. Price Prior Year Most Recent Yr.
Detached 202 $274,950 162 $280,000 137 $300,000 1.8% 7.1%
Attached 19 $195,000 12 $190,750 15 $200,000 -2.2% 4.8%
2-4 Unit 7 $385,000 6 $392,500 3 $380,000 1.9% -3.2%
MLS 131: FRANKLIN PARK
1/1/2023 - 12/31/20231/1/2021 - 12/31/2021 1/1/2022 - 12/31/2022
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Although income and occupancy fundamentals are strong for the retail market, sales volume is
down sharply and cap rates are higher due to the substantial increase in interest rates over the past
two years. This has outweighed the benefit of rising rents and low vacancy in most instances. Also,
construction levels are down due to tightened credit and higher financing costs.
Market Area Summary
The market conditions in which a property exists will change over the life of an asset. Generally
a neighborhood passes through four stages, briefly described as follows:
• Growth, during which time the neighborhood is establishing and gaining public favor and
acceptance.
• Stability, which is a static period evidenced by a lack of available land for continued new
development.
• Decline, during which time shifting neighborhood use patterns result in a secondary
location.
• Redevelopment, which results in a removal of or renovation of outdated improvements
and construction of more modern improvements.
Overall, the subject’s location on Mannheim Road in Franklin Park indicates positive demographic
trends and a for-sale housing market trending upward, though on lower sales volume. The local
retail market has good fundamentals, including rising rents and stable occupancy, however,
higher interest rates have resulted in higher cap rates and tightened credit. This has resulted in
lower transaction volume and construction levels. The Fed has signaled that interest rate cuts are
likely in 2024, which should ease credit conditions and increase transaction volume. Locally, the
subject had been in a TIF district which expired in 2022 making the site less appealing for
potential new development. Due to the preceding, the subject’s location remains in the
growth/stabilization phase of the market life cycle.
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Property Description
Site
SITE
Location: The subject property is a vacant, dual corner site located on the
west side of Mannheim Road between Center Avenue (SWC) and
Schiller Boulevard (NWC) in the Village of Franklin Park, IL.
Current Use of the
Property:
Vacant land
Land Summary
Parcel ID
Gross Land
Area (Acres)
Gross Land
Area (Sq Ft)
Usable Land
Area (Sq Ft) Topography Shape
12-29-212-002, -003, -
008, -009, -013
1.30 56,480 56,480 Slopes up slightly
to the west
Rectangular
Site Size: Total: 1.30 acres; 56,480 square feet
Usable: 1.30 acres; 56,480 square feet
The entire subject site is usable.
Shape: Rectangular
Frontage/Access:
The subject property has above average access with frontage as
follows:
Mannheim Road : 200.00 feet
Center Avenue: 282.31 feet
Schiller Blvd: 282.49 feet
The site has an average depth of 282.40 feet. It is a corner lot.
According to IDOT, the average daily traffic count along
Mannheim Road is 27,100 vehicles per day.
Visibility: Unobstructed
Topography: The subject has mostly level topography but slopes up slightly to
the west at the rear of the site. Overall, the site slopes modestly
downward to the southeast. There are no known areas of wetlands
or floodplain.
Soil Conditions: Based on the previous use of the site as a motel property, the soil
conditions at the subject appear to be typical of the region and
adequate to support development.
Utilities:
Electricity: The site is served by public electricity.
Sewer: City sewer
Water:
City
water
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Natural Gas: Nicor or People's Gas
Underground Utilities: The site is serviced by underground
utilities, aside from electric which is overhead on poles.
Adequacy: The subject's utilities are typical and adequate for the
market area.
Site Improvements:
Overhead Street Lights
Concrete Sidewalk
Concrete Curb and Gutter
Flood Zone: The subject is located in an area mapped by the Federal
Emergency Management Agency (FEMA). The subject is located
in FEMA zone X, which is not classified as a special flood hazard
area.
FEMA Map Number: 17031C0386J
FEMA Map Date: August 19, 2008
The subject is not in a special flood hazard area.
Environmental Issues:
According to a Phase I ESA, there are no known adverse
environmental conditions on the subject site. Please reference the
Limiting Conditions and Assumptions.
Encumbrance /
Easements:
Surrounding
Improvements:
There are no known adverse encumbrances or easements. Please
reference Limiting Conditions and Assumptions.
Hotel across Mannheim Road to the east; medspa to the south; auto
related to the north (Ziebart and Auto Zone); low-rise multifamily
to the west
Site Comments: The subject is a 56,480 sf, rectangular, commercial-zoned, dual
corner site located along a primary arterial road. The site has two
curb cuts along Mannheim Road which would provide good
access, however, they have been blocked by concrete barricades.
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Sidwell Map
Subject highlighted above
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Flood Map
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Wetlands Map
Based on a review of the National Wetlands Inventory Maps on the US Fish and Wildlife Service
website, the subject site does not contain any mapped wetlands. These are preliminary maps
based on dated aerial imagery, and are not a final determination. Persons intending to engage in
activities involving modifications within or adjacent to wetland areas should seek the advice of
appropriate federal, state, or local agencies concerning specified agency regulatory programs and
proprietary jurisdictions that may affect such activities.
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ASSESSMENT AND TAXES
Taxing Authority: Cook County
Assessment Year: 2023
Tax Identification:
12-29-212-002, -003, -008, -009 and -013
ASSESSED VALUE
Real estate in Cook County is reassessed every three years. Taxes are payable in arrears in two
installments. The first installment is an estimated bill based on the prior year’s tax rate and
assessed value. The second installment is then adjusted to reflect changes in assessed valuation or
tax rates for that year. Taxes for 2023 will be payable in 2024.
The subject property is owned by the Village of Franklin Park and is therefore tax exempt.
The local property tax rate is 11.832%, which is above average when compared to all
other Cook County municipalities, but similar to or lower than rates in some surrounding suburbs
(Stone Park, Northlake, Melrose Park, Schiller Park). Also, the effective property tax rate in
Franklin Park and surrounding Cook County communities is much higher than the effective tax
rates in nearby communities in DuPage County, a couple of miles west of the subject, which puts
the Cook County municipalities at a disadvantage in attracting new businesses. TIF districts,
enterprise zones and tax incentive classes are some of the available tools to attract new business
despite the real estate tax disadvantage.
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ZONING
The subject is zoned C-3, General Commercial District by the Village of Franklin Park.
Zoning
District:
C-3 General Commercial District
Purpose:
“…to accommodate those commercial activities which may be incompatible
with the predominantly retail uses permitted in other business districts.”
Permitted
Uses:
Public/Civic
:
Conditional only
Commercial:
Auto service stations and sales, medical clinics, recording
studios, wholesale establishments, electrical showrooms,
etc.
Residential: Hotel / motel (conditional), and watchmen’s quarters only
Conditional: Hospitals, hotels, car washes, printing and publishing,
schools, theaters, etc.
Minimum Lot
Size:
3,000 sf
Max. Bldg.
Height:
45 feet
Yard Req.:
Front: 25 ft
Side: 25 ft
Rear: 20 ft
Maximum
Floor-Area-
Ratio (FAR):
3.5:1
Parking
Requirements:
Varies by use. See full Ordinance for complete listing.
Source: Village of
Franklin
Park Zoning Ordinance
www.pvgchicago.com 26
ZONING MAP
The subject is zoned C-3, General Commercial District by the Village of Franklin Park.
Note: The subject is indicated by the blue arrow above
www.pvgchicago.com 27
HIGHEST AND BEST USE
Land is appraised as if vacant and available for development to its Highest and Best Use, and the
appraisal of improvements is based on their actual contribution to the site.
Highest and Best Use may be defined as:
The reasonably probable and legal use of vacant land or improved property, which is
physically possible, appropriately supported, financially feasible, and that results in the
highest value. The four criteria the highest and best use must meet are legal permissibility,
physical possibility, financial feasibility, and maximum profitability.
Highest and Best Use – “As If Vacant”
1. Legally Permissible: Private restrictions, zoning, building codes and other regulations
establish use that are legally permitted. As indicated in the zoning section of this report,
the subject is zoned C-3. The current zoning allows for a variety of commercial uses.
Residential units are not allowed other than hotel / motel rooms (as a conditional use) and
watchmen’s quarters. There are no known deed restrictions preventing development of
the site in accordance with the existing C-3 zoning requirements.
2. Physically Possible: Factors such as the size, shape, terrain, accessibility of land and the
risk of natural disasters such as floods or earthquakes affect the use to which vacant land
can be used. In the case of the subject, the site is adequate in terms of size, frontage, terrain
and depth to accommodate most types of developments permitted by the subject’s C-3
zoning.
3. Financially Feasible: Based on surrounding land uses and zoning, commercial
development is the probable use. The majority of the surrounding uses along Mannheim
Road are single-story commercial buildings, though there are also some light industrial and
a couple of hotel / motel properties. Our review of the area indicated that there is a limited
amount of vacant land inventory in the area. Although retail rental rates have been
increasing and vacancy is near a frictional level, due to higher construction costs and
interest rates, most developers are holding off on speculative commercial construction at
this time. Therefore, financially feasible uses include a commercial build-to-suit or to hold
for future development.
4. Maximally Productive: Of the financially feasible uses, the one creating the highest present
land value is the most profitable use of the site as if vacant. Under current economic
conditions, the most probable use would be a build-to-suit retail development.
5. The most probable buyer of the subject would be an investor or developer for land
development purposes.
6. In conclusion, the Highest and Best Use of the site, as if vacant and ready for development,
is: For a build-to-suit commercial development in accordance with existing zoning.
www.pvgchicago.com 28
Highest and Best Use – “As Improved”
The subject property is a vacant site. Therefore, a Highest & Best Use 'as improved' analysis is
not applicable.
www.pvgchicago.com 29
VALUATION METHODOLOGY
Three basic Approaches may be used to arrive at an estimate of market value. They are:
1. The Cost Approach
2. The Income Capitalization Approach
3. The Sales Comparison Approach
Cost Approach
The Cost Approach is based on the principle that a prudent buyer would not pay more for a property
than the cost of obtaining a similar site and having similar improvements constructed on the site.
The land and the improvements are separately valued. The land is valued based on sales of
comparable sites, adjusting their sale prices for differences indicated by the market. The
replacement cost new of the improvements is estimated, and then adjusted for depreciation. The
depreciated value of the improvements is then added to the value of the land to arrive at an estimate
of value for the subject by the Cost Approach. The Cost Approach is summarized as follows:
Cost New
- Depreciation
+ Land Value
= Value
Sales Comparison Approach
The Sales Comparison Approach is based on the principle that a prudent buyer would not pay more
to purchase a property than it would cost to purchase a similar alternative property. The first step
in this Approach is to collect sale prices (or asking prices) for properties that are comparable to
the subject. These sales are then analyzed using common units of comparison, such as price per
square foot, price per dwelling unit, or price per acre, depending on the property type. The unit
prices that are derived are then adjusted for differences between the comparable sales and the
subject. An adjusted unit price is applied to the subject, resulting in an estimate of value by the
Sales Comparison Approach.
Income Capitalization Approach
The Income Capitalization Approach is based on the principle that a prudent buyer will pay no
more for an income-producing property than the value of the projected income capitalized (or
discounted) to a current lump-sum value at a given rate of return. This Approach forecasts a gross
income for the subject, which is reduced to a net income by deducting a vacancy allowance and
reasonable expenses. The net income is then capitalized (or discounted) based on a rate that is
required in the market, taking into account the perceived risks and benefits that would apply to
owning the subject property. The capitalization process results in an estimate of value by the
Income Capitalization Approach.
Final Reconciliation
The appraisal process concludes with the final reconciliation of the values derived from the
Approaches applied for a single estimate of market value. Different properties require different
means of analysis and lend themselves to one Approach over the others.
www.pvgchicago.com 30
Analyses Applied
A cost analysis was considered and was not developed because the subject is vacant land and this
Approach was not applicable.
A sales comparison analysis was considered and was developed because there is adequate data
to develop a value estimate and this approach reflects market behavior for this property type.
An income analysis was considered and was not developed because the subject is a vacant land
parcel not generating any income. There is not a demonstrable rental market for commercial zoned
sites in the area and therefore, this approach was not applicable and has not been developed for
this appraisal.
www.pvgchicago.com 31
SALES COMPARISON APPROACH
Land Valuation
The Sales Comparison Approach is based on the premise that a buyer would pay no more for a
specific property than the cost of obtaining a property with the same quality, utility, and
perceived benefits of ownership. It is based on the principles of supply and demand, balance,
substitution and externalities. The following steps describe the applied process of the Sales
Comparison Approach.
The market in which the subject property competes is investigated; comparable sales,
contracts for sale and current offerings are reviewed.
The most pertinent data is further analyzed and the quality of the transaction is
determined.
The most meaningful unit of value for the subject property is determined.
Each comparable sale is analyzed and where appropriate, adjusted to equate with the
subject property.
The value indication of each comparable sale is analyzed and the data reconciled for a
final indication of value via the Sales Comparison Approach.
Land Comparables
We have researched several land sales for this analysis, and the following five were most relevant
for this appraisal. The comparables are documented on the following pages followed by a location
map and analysis grid. All sales have been researched through numerous sources, inspected and
verified by a party to the transaction and/or by public record. The following data is considered the
most pertinent available.
www.pvgchicago.com 32
Comparable Sales Summary Table
Comp Address Date Land SF Zoning
Comp City Price Price Per
Land SF
Road Frontage
Subje ct
3010 N Mannheim Road N/A 56,480 C-3
Subje ct
Franklin Park N/A N/A Dual Corner
1
3700 N Mannheim Road 2/11/2022 269,645 C-3
Franklin Park $1,060,000 $3.93 Signalized corner
2
800 N River Rd 10/18/2022 28,837 B-4, Corridor Commercial
Mount Prospect $295,000 $10.23 Sig., Corner; T-intersctn.
3
2506-2516 N Mannheim Rd. 12/22/2022 88,019 C-4, Cook County
Franklin Park $1,025,000 $11.65 Corner
4
Lot C Franklin Marketplace 11/29/2022 120,226 C-3
Franklin Park $862,861 $7.18 Corner within subdiv.
5
800 W Irving Park Rd. 12/1/2021 72,300 C-2
Bensenville $1,100,000 $15.21 Corner
www.pvgchicago.com 33
ID
10062
Date
2/11/2022
Address
3700 N Mannheim Road
Price
$1,060,000
City
Franklin Park
Price Per Land SF
$3.93
State
IL
Financing
Conventional
Tax ID
12-20-202-007 & -039
Property Rights
Fee Simple
Grantor
3700 Mannheim Arena
Days on Market
--
Grantee
Quicktrip Corp.
Verification
Book/Page or Reference
2204622017
Conditions of Sale
Normal
Acres
6.2
Topography
Primarily level
Land SF
269,645
Zoning
C-3
Road Frontage
Signalized corner
Flood Zone
No
Shape
Irregular - Avg.
Encumbrance or
Overhead tollway &
Utilities
At site
Environmental Issues
None known
Broker, CoStar, Deed
Transaction
Site
Comments
According to Jack Reardon at NAI Hiffman, broker, this is an irregular-shaped site located at the southwest
corner of Mannheim Road and Waveland Avenue, a signalized intersection. It has additional frontage on
Front Avenue and Waveland Avenue. The Tri-State Tollway overpass runs above approximately 47,500 sf
of the south portion of the property, limiting the use of this area to parking or perhaps storage if approved
by the village. The broker reported that the village was very particular as to what they would allow on the
site, and prohibited warehouse and distribution uses. This adversely impacted the price. Also, the buyer
would be required to complete infrastructure upgrades, including some offsite work. The buyer plans a
Quik Trip fueling station and convenience store, which required special use approval. The site has some
visibility from I-294, which is elevated in this area.
Land Comparable 1
www.pvgchicago.com 34
ID
12565
Date
10/18/2022
Address
800 N River Rd
Price
$295,000
City
Mount Prospect
Price Per Land SF
$10.23
State
IL
Financing
Conventional
Tax ID
03-25-400-018
Property Rights
Fee Simple
Grantor
JLK Enterprises LLC
Days on Market
119
Grantee
Basit Trading LLC
Verification
CoStar, CCC, Broker
Book/Page or Reference
2229410050
Conditions of Sale
Normal
Acres
0.7
Topography
Level
Land SF
28,837
Zoning
B-4, Corridor Commercial
Road Frontage
Sig., Corner; T-intersctn.
Flood Zone
X
Shape
Rectangular
Encumbrance or
None Known
Utilities
City
Environmental Issues
None Known
Land Comparable 2
Comments
Site
Transaction
This was the sale of a 28,837 sf parcel that was improved with a car wash at the time of sale. It has been
vacant since the sale. The broker was not sure what the buyer planned to do, but he said that the village
was open to residential use, even though it is zoned B-4, Corridor Commercial District which does not permit
residential. Broker said the property was clean with no environmental issues.
www.pvgchicago.com 35
ID
12682
Date
12/22/2022
Address
2506-2516 N Mannheim
Price
$1,025,000
City
Franklin Park
Price Per Land SF
$11.65
State
IL
Financing
Cash
Tax ID
12-29-418-010, -011, -021
& -022
Property Rights
Fee Simple
Grantor
Neveda Property LLC
Days on Market
700
Grantee
Leyden Township
Verification
Broker, MLS, CoStar,
Book/Page or Reference
2300625157
Conditions of Sale
Assemblage
Acres
2.0
Topography
Slight slopes
Land SF
88,019
Zoning
C-4, Cook County
Road Frontage
Corner
Flood Zone
No SFHA
Shape
Rectangular
Encumbrance or
None known
Utilities
At site
Environmental Issues
None per Phase I
Land Comparable 3
The sale property is a rectangular, corner site located in an unincorporated area of Cook County, but has a
Franklin Park mailing address. According to the listing agent, Ben Cocogliato of RCI Realty, former
improvements on the site had been demolished at the time of listing.
The site had a clear Phase I environmental. The site had been on the market for nearly two years prior to
the contract with an original list of $1,300,000, which was eventually reduced to $1,150,000. The buyer was
Leyden Township and they also own adjacent land. Their plans are for a senior center on the site. The
broker thought that the price was reflective of market value.
Site
Comments
Transaction
www.pvgchicago.com 36
ID
12690
Date
11/29/2022
Address
Lot C Franklin
Marketplace
Price
$862,861
City
Franklin Park
Price Per Land SF
$7.18
State
IL
Financing
Conventional
Tax ID
12-29-203-069 to -071
Property Rights
Fee Simple
Grantor
Village of Franklin Park
Days on Market
--
Grantee
WG Hotels LLC / John
Verification
Seller, Appraisal
Book/Page or Reference
2234208087
Acres
2.8
Topography
Mostly level
Land SF
120,226
Zoning
C-3
Road Frontage
Corner within subdiv.
Flood Zone
Minimal
Shape
Nearly rectangular
Encumbrance or
VIllage RDA, Subdiv.
Utilities
At site
Environmental Issues
None known
Transaction
Land Comparable 4
Site
Comments
The sale property is a vacant lot located along the south side of Crown Drive, about 315 feet west of
Mannheim Road and 300 feet north of Grand Avenue within Franklin Marketplace, a commercial
subdivision. The site is nearly rectangular in shape and has approximately 325 feet of frontage on the
south side of Crown Road. Franklin Marketplace has curb cuts on Mannheim Road, Grand Avenue and
Crown Road, and there are cross access easements throughout the development. The buyer is currently
developing a Wyndham Garden hotel on the site. A small portion of the site along the north lot line is in a
special flood hazard area. A new plat was created for the sale site and the new PINs do not yet show on
most county sites.
www.pvgchicago.com 37
ID
12683
Date
12/1/2021
Address
800 W Irving Park Rd.
Price
$1,100,000
City
Bensenville
Price Per Land SF
$15.21
State
IL
Financing
Village Funds
Tax ID
03-14-118-001
Property Rights
Fee Simple
Grantor
Mason Grave Realty LLC
Days on Market
--
Grantee
Village of Bensenville
Verification
Buyer, CoStar
Book/Page or Reference
R2022-05331
Acres
1.7
Topography
Primarily level
Land SF
72,300
Zoning
C-2
Road Frontage
Corner
Flood Zone
No SFHA
Shape
Rectangular
Encumbrance or
None known
Utilities
At site
Environmental Issues
None known
According to Kurtis Pozsgay with the Community & Economic Development Department of the Village of
Bensenville, the sale property is a rectangular corner site that was improved with an older, vacant banquet
hall having approximately 15,488 sf. It was primarily marketed as a redevelopment site and that was the
village's intended use. The property was bank owned at the time of sale, but the purchaser indicated that it
was widely marketed and they believe the price they paid was near market, but they may have overpaid
slightly. They had an end user for a mixed-use development but the deal fell through as interest rates
increased substantially. The improvements remain on the land, but the village has since secured a
development partner for a mixed-use retail and residential development.
Comments
Site
Transaction
Land Comparable 5
www.pvgchicago.com 38
Comparables Map
Analysis Grid
The above sales have been analyzed and compared with the subject property. We have
considered adjustments in the areas of:
Property Rights Sold
Financing
Conditions of Sale
Market Trends
Location
Physical Characteristics
On the following page is a sales comparison grid displaying the subject property, the
comparables, and the adjustments applied.
www.pvgchicago.com 39
Address
City
State
Date
Price
Land SF
Unit Price per SF
Property Rights
Fee Simple
0.0%
Fee Simple
0.0% Fee Simple 0.0%
Fee Simple
0.0% Fee Simple 0.0%
Financing
Conventional
0.0%
Conventional
0.0% Cash 0.0%
Conventional
0.0%
Village Funds
0.0%
Conditions of Sale Normal 0.0% Normal 0.0% Assemblage -3.0% Village
owned
land
0.0% REO,
Village
redevl.
-3.0%
Expenditures After Sale
Market T rends T hrough
1/24/2024
Location
% Adjustment
$ Adjustment
Land SF
% Adjustment
$ Adjustment
Shape
% Adjustment
$ Adjustment
Zoning
% Adjustment
$ Adjustment
Site Improvements
Pad in shop. Cntr.
% Adjustment
$ Adjustment
Road Frontage
% Adjustment
$ Adjustment
Other
% Adjustment
$ Adjustment
Net Adjustments
Gross Adjustments
Utilites at site
Adjusted Land SF Unit Price
Adjusted Price Per Unit
Adjusted Unit Price
50.0% -17.0%
$13.00$10.52
-2.0%
18.0%
0.0%
50.0% 10.0%
$5.88 $7.89$11.07
-2.0%
5.0% -5.0%
-20.0%
C-2
3.0%
Corner
$0.00
0.0%
Rectangular
$0.00
$0.47
None
-$3.13
Utilites at site
0.0%
$0.00
3.0%
None
-$0.81
$0.00
$0.24$0.33
$0.00
3.0%
0%
None
Corner
0%
-2.0%
$0.32
3.0%0.0%
$0.00
None
0%
Sig., Corner; T-
intersctn.
Utilites at site
Dual corner
$0.59
Portion under
interstate
None
Signalized corner
15%
$0.00
56,480
5.0%
$0.20
C-3
Rectangular
269,645
10.0%
C-3 B-4, Corridor
Commercial
28,837
-$0.54
-5.0%
$0.54
-$0.54
0.0%
$3.92
Similar
$10.96
$21,000.00
7.1%
$4.13
-5.0%
Inferior
-2.0%
$10.74
3010 N Mannheim
Road
IL
$11.30
Typical
Franklin Park Mount Prospect
ILIllinois
$11.65
88,019
Conventional
5.0% 0.0%
Fee Simple
$53,000
Transaction Adjustments
Franklin Park
Land Analysis Grid
Comp 1
56,480
N/A $3.93
IL
3700 N Mannheim
Road
800 N River Rd
Franklin Park
28,837
Comp 2
$10.23
Comp 4
Franklin Park
Comp 5
2506-2516 N
Mannheim Rd.
Comp 3
269,645
12/22/2022
$0.78
0.0%
$0.00
Superior
20.0%
Irregular - Avg.
$0.00
$0.39
Requires
infrstructure & off-
site work
0.0%
Utilites, paved
parking
$1,025,000$1,060,000
-$0.55$0.00
0.0%
Nearly rectangular
88,019
$11.07
$0.00$0.00
0.0%
2.0%
$0.00
Rectangular
$0.00
$0.22
-5.0%
$0.00
-10.0%
Rectangular
0.0%
$0.00
C-3
$0.00
0.0%
C-4, Cook County
$0.40
0.0%0.0%
IL
Lot C Franklin
Marketplace
$8.22
-2.0%
$1,100,000
Bensenville
$862,861
12/1/2021
IL
11/29/2022
800 W Irving Park Rd.
Corner within
subdiv.
0%
$0.00
$0.00
72,300
$125,000.00
-5.0%
72,300
0.0%
$15.66
0.0%
11.4%
$0.00
0.0%
$0.00
120,226
Similar
$15.21
$16.49
$7.18
120,226
23.0%
N/A
10/18/20221/24/2024 2/11/2022
$295,000
18.0%
14.5%
5.0%
$8.05
Similar
www.pvgchicago.com 40
Comparable Land Sale Adjustments
Property Rights
The subject is valued on a fee simple basis.
It appears that all of the comparables sold on a fee simple basis; therefore, no property rights
adjustments are required.
Financing
The availability of financing affects both the supply of real estate and property values. In most
cases, the cost and availability of financing have an inverse relationship; high interest rates and
other costs usually are accompanied by a decline in the demand for credit. The adjustment for
financing considers the differences in financing terms between the subject property and the
comparable sales. Adjustments are made for sales financed with terms not readily available to
typical buyers.
None of the comparables indicated that unusual financing factors affected the indicated sales
prices. The comparable sales are cash, are conventionally financed at market rates, or involved
terms equivalent to cash and therefore need no adjustments.
Conditions of Sale
If a comparable sale reflects unusual situations, we make appropriate adjustments for the
motivations of the buyer and the seller, or for atypical conditions of sale. Situations requiring
adjustment may include 1031 tax exchanges, assemblies, condemnation, sales between related
parties and partnership dissolution.
While most sales have varying conditions, usually, they do not result in prices that vary from
market. To the best of our knowledge, Comps 1, 2 and 4 did not have any atypical conditions that
impacted the price and no adjustments are warranted. Although the broker said that the village
would not allow what some potential buyers wanted, he was referring to industrial users and the
site is not zoned for that, nor is the subject. An adjustment is not warranted.
Comp 3 was purchased by Leyden Township, an adjacent land owner. They were looking for a
suitable site to construct a senior center and this site, in combination with their adjacent land, met
the need. Given that they may have been more highly motivated, a downward adjustment is
warranted.
Comp 5 was an REO property, but it was widely marketed. The eventual buyer was the village
and they were looking to redevelop the vacant banquet hall site and had secured a developer for
the project. According to the Community and Economic Development department representative,
the REO status did not impact the price but the village may have overpaid because they wanted to
control the site and had a developer lined up. The deal with the developer subsequently fell through
as interest rates increased. Overall, a downward adjustment is warranted.
Expenditures After Purchase
The subject is vacant land, as were Comps 3 and 4.
www.pvgchicago.com 41
Comp 1 was a parking lot and had an old water tower on the site. The pre-construction site work
would be more costly than compared to a construction-ready site, though the amount of work is
not known. An upward adjustment of 5% is made for this factor.
Comp 2 was improved with a small car wash while Comp 5 was improved with a banquet hall
and the improvements will have to be demolished at the buyer’s expense. Upward adjustments
are made for this factor.
Economic Trends
An adjustment for market conditions may be necessary for sales if price appreciation or
depreciation is common in the market, or if other factors such as tax law changes, moratoriums,
or fluctuations in supply and demand have influenced values over the time of the sales. Although
sometimes called a “time” adjustment, time is not the cause of the adjustment. Values do not
change owing to the passage of time; they change along with changing market conditions.
As stated, though the retail market is performing well, sharply higher interest rates paired with
elevated construction costs have resulted in a drop in transaction volume and new construction as
projects that were feasible at low interest rates are not at the current higher rates. A proposed project
on the subject site fell through for this reason and the same is true of Comp 5.
Comps 1 and 5 transacted near the height of the market in late 2021 and Q1 2022 and downward
adjustments are warranted. Comps 2, 3 and 4 sold in the 4
th
quarter of 2022 when rates were higher
but the impact on the market was not as pronounced as it currently is. Less significant downward
adjustments are warranted. The adjustments consider the positive retail fundamentals along with the
impact of higher rates and market uncertainty.
Location
Adjustments may be necessary to reflect the differences in value attributable to a property's
location or market area. Although comparable properties in the same market area have similar
general locational characteristics, property specific variations may exist. The key locational
characteristics we considered include access, visibility, traffic count, tax rate, demographics and
surrounding uses.
The subject property is located in Franklin Park on Mannheim Road, which has an average daily
traffic count (ADTC) of 27,100 vehicles per day in this area. Surrounding properties on
Mannheim Road are primarily commercial along with some light industrial, and there are some
national tenants in the area. The site has two curb cuts on Mannheim Road and others on the
side streets.
Comp 1 is located on Mannheim Road to the north of the subject. It has a superior traffic count
at 40,700 vehicles per day and is also closer to O’Hare and the expressway interchange.
Conversely, its visibility is partially obstructed to traffic approaching from the south due to the
expressway overpass, and Mannheim becomes elevated at this point as it passes over the railroad
tracks. Overall, these factors offset and the two properties are nearly similar in location.
Comp 2 is located on the corner of River Road and Kensington Avenue in Mt. Prospect. The
total traffic count at 23,000 vpd is lower, and the east side of River is forest preserve land along
the Des Plaines River, resulting in inferior commercial co-tenancy. Many improvements along
this stretch of Mannheim are residential. Mt. Prospect has significantly higher home values and
www.pvgchicago.com 42
household income levels, but a lower population density. Overall, it is inferior and adjusted
upward.
Comp 3 is located 0.6 miles south of the subject on Mannheim Road. It has a Franklin Park
mailing address but is in an unincorporated area. The traffic count is higher on this portion of
Mannheim Road, and the tax rate is lower at 10.3% (vs. 11.8% for subject). Overall, a slight
downward adjustment is warranted.
Comp 4 is located in the Franklin Marketplace, which is a seven-lot commercial subdivision that
wraps around the northwest corner of Mannheim Road and Grand Avenue. As such, this sale has
superior access from two primary thoroughfares and a secondary street. However, the sale site is
set back from both thoroughfares and has inferior visibility, which is partially offset by signage.
At the time of sale, subdivision tenants included Chase, Sonic, Jersey Mikes, Chipotle, AT&T
and T-Mobile with an adjacent Starbucks. It has superior co-tenancy. Despite the advantages, it
is overall similar as it set back 300 feet from a thoroughfare.
Comp 5 is located on Irving Park Road in neighboring Bensenville. The traffic count is slightly
higher at 30,700 vehicles per day. The population density is inferior and the median home value
is lower than the subject’s (within a 1-mile radius) but the household income level is higher. It
has an advantage due to its DuPage County location and lower effective property tax rate.
Conversely, this portion of Irving Park Road has many residential improvements and commercial
tenants are mostly local businesses. It is inferior in this respect. Overall, the two properties are
generally similar and not adjusted.
Size
Size adjustments are necessary when there are significant differences in site size. There is
usually an inverse relationship between unit value and size, with smaller sites selling at higher
prices per square foot of value than larger sites, all else being equal. The subject property
contains 56,480 sf of land.
Comps 1, 3 and 4 are larger sites warranting upward adjustments for size. Comp 2 is smaller
and adjusted downward, while Comp 5 is generally similar in size and not adjusted,
Shape
The subject site is rectangular in shape. Comp 1 is irregular and is adjusted upward. Comps 2
through 5 are rectangular or nearly rectangular and are not adjusted.
Zoning
Zoning and characteristics of the site may affect how a site can be used and how much of the
parcel is buildable. In this instance, the most appropriate unit of adjustment was determined to
be the price per square foot.
The subject is zoned C-3, General Commercial District by the Village of Franklin Park, which
indicates a maximum FAR of 3.5. Residential units are not permitted as a part of a mixed-use
development in the C-3 district.
www.pvgchicago.com 43
Comps 1, 3 and 4 are similar in this respect. Comp 2 is zoned B-4 which also does not permit
residential as a part of a mixed-use development, but the village was willing to consider such a
use. A modest downward adjustment is warranted for this factor.
Comp 5 allows for mixed-use and the planned use is for a four-story building with residential
units on the upper levels. There is strong demand for apartment units and they are less risky than
retail space. A significant downward adjustment is warranted.
Site Improvements
The subject site was previously improved as a hotel property and has all utilities available at the
site lines.
According to the broker, Comp 1 would require infrastructure improvements and off-site work
prior to development. The estimated cost was not reported. An upward adjustment is
warranted.
Comps 2, 3 and 5 are similar sites that had previously been improved and had all utilities at the
lot lines. No adjustments are warranted for these comps.
Comp 4 is a pad-ready site within a commercial subdivision, and has off-site detention. All
common area roads were completed and the subdivision signage was erected, and these
amenities benefitted the sale property. A downward adjustment is warranted.
Road Frontage / Block Location
The subject is a dual corner lot.
Comp 1 is a signalized corner lot and is generally similar. Comp 2 is a signalized corner lot, but
it is at a T-intersection and not a true four-corner intersection. A modest upward adjustment is
warranted.
Comps 3 through 5 are single corner lots and are adjusted upward slightly.
Other
Approximately one acre of Comp 1 is located beneath the Tri-State Tollway and is not buildable.
It could potentially be used for parking or storage but the Tollway has easements for the right to
access this land as needed. There is a small portion south of the part that is beneath the
expressway, but it is separated from the north fully usable portion, and has less utility. Overall, a
significant upward adjustment is warranted.
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Conclusion – Land Valuation
The adjusted unit values of the comparable properties range from $5.88 to $13.00 psf; the
average is $9.67 psf. Comps 3 and 4 were given primary consideration in this analysis due to
their proximity to the subject and because they are the most recent sales. The adjusted average
of Comps 3 and 4 was $9.48 psf. The subject was recently under contract for $575,000 or
$10.18 psf, but it fell through due to elevated interest rates which resulted in the proposed project
no longer being financially feasible for the contract purchaser. Also, the local TIF expired since
then. Therefore, the concluded value is between the average adjusted unit price of Comps 3 and 4
($9.48 psf), and the adjusted average of all of the comparables of $9.57 psf, or say $9.50 per
square foot.
56,480 square feet x $9.50 psf = $536,560 rounded to $540,000
Market Value, As Is
Indicated Value per Square Foot:
$9.50
Subject Size (SF):
56,480
sf
Indicated Value:
$536,560
Rounded:
$540,000
Five Hundred Forty Thousand
Dollars
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CERTIFICATION
We certify that, to the best of our knowledge and belief:
The statements of fact contained in this report are true and correct.
The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting
conditions and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions.
We have no present or prospective interest in the property that is the subject of this report and no personal
interest with respect to the parties involved.
Mary Wagner previously appraised the property for the same client in 2018, but otherwise the appraisers
have not performed any appraisal work or any other type of work on the subject property in the past three
years.
We have no bias with respect to the property that is the subject of this report or to the parties involved with
this assignment.
Our engagement in this assignment was not contingent upon developing or reporting predetermined results.
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
opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the
intended use of this appraisal.
Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity
with the Uniform Standards of Professional Appraisal Practice.
Elizabeth Gulis, MAI has not made a personal inspection of the property that is the subject of this report.
Mary Wagner, MAI, has made a personal inspection of the property.
The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in
conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the
Appraisal Institute.
The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly
authorized representatives.
As of the date of this report, Mary Wagner, MAI, and Elizabeth Gulis, MAI, have completed the continuing
education program of the Appraisal Institute.
Mary Wagner, MAI
IL Certified General Real Estate Appraiser
License No. 553-001102
License Expires:
September 30, 2025
Elizabeth Gulis, MAI
IL Certified General Real Estate Appraiser
License No. 553.002269
License Expires:
September 30, 2025
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ADDENDA
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Limiting Conditions and Assumptions
Acceptance of and/or use of this report constitutes acceptance of the following limiting
conditions and assumptions; these can only be modified by written documents executed by both
parties.
This appraisal is to be used only for the purpose stated herein. While distribution of this
appraisal in its entirety is at the discretion of the client, individual sections shall not be
distributed; this report is intended to be used in whole and not in part.
No part of this appraisal, its value estimates or the identity of the firm or the appraiser(s) may be
communicated to the public through advertising, public relations, media sales, or other media.
All files, work papers and documents developed in connection with this assignment are the
property of Praedium Valuation Group Information, estimates and opinions are verified where
possible, but cannot be guaranteed. Plans provided are intended to assist the client in visualizing
the property; no other use of these plans is intended or permitted.
No hidden or unapparent conditions of the property, subsoil or structure, which would make the
property more or less valuable, were discovered by the appraiser(s) or made known to the
appraiser(s). No responsibility is assumed for such conditions or engineering necessary to
discover them. Unless otherwise stated, this appraisal assumes there is no existence of hazardous
materials or conditions, in any form, on or near the subject property.
Unless otherwise stated in this report, the existence of hazardous substances, including without
limitation asbestos, polychlorinated biphenyl, petroleum leakage, or agricultural chemicals,
which may or may not be present on the property, was not called to the attention of the appraiser
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 property unless otherwise stated.
The appraiser, however, is not qualified to test for such substances. The presence of such
hazardous substances may affect the value of the property. The value opinion developed herein is
predicated on the assumption that no such hazardous substances exist on or in the property or in
such proximity thereto, which would cause a loss in value. No responsibility is assumed for any
such hazardous substances, nor for any expertise or knowledge required to discover them.
Unless stated herein, the property is assumed to be outside of areas where flood hazard insurance
is mandatory. Maps used by public and private agencies to determine these areas are limited
with respect to accuracy. Due diligence has been exercised in interpreting these maps, but no
responsibility is assumed for misinterpretation.
Good title, free of liens, encumbrances and special assessments is assumed. No responsibility is
assumed for matters of a legal nature.
Necessary licenses, permits, consents, legislative or administrative authority from any local, state
or Federal government or private entity are assumed to be in place or reasonably obtainable.
It is assumed there are no zoning violations, encroachments, easements or other restrictions
which would affect the subject property, unless otherwise stated.
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The appraiser(s) are not required to give testimony in Court in connection with this appraisal. If
the appraisers are subpoenaed pursuant to a court order, the client agrees to pay Praedium
Valuation Group’s regular per diem rate plus expenses.
Appraisals are based on the data available at the time the assignment is completed.
Amendments/modifications to appraisals based on new information made available after the
appraisal was completed will be made, as soon as reasonably possible, for an additional fee.
Americans with Disabilities Act (ADA) of 1990
A civil rights act passed by Congress guaranteeing individuals with disabilities equal opportunity
in public accommodations, employment, transportation, government services, and
telecommunications. Statutory deadlines become effective on various dates between 1990 and
1997. Praedium Valuation Group has not made a determination regarding the subject’s ADA
compliance or non-compliance. Non-compliance could have a negative impact on value;
however, this has not been considered or analyzed in this appraisal.
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Legal Description
Source: Cook County Records
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Environmental Phase I Site Assessment Executive Summary
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The preceding is a brief summary of a 349 page report.
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Appraiser Qualifications
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Engagement Letter
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