firstcaribben international bank - boekhoudt · pobox 503, broad street, bridgetown, barbados, wi....

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A P P R A I S A L R E P O R T

REF/011.05/2019.HASSELL‐EUX‐FCIB

PRINCESS GARDENS, ORANJESTAD, SINT EUSTATIUS, NC.

*

APARTMENT HOUSE @ JOHN SPANNER ROAD #5

CLIENT

*

FIRSTCARIBBEN INTERNATIONAL BANK BROAD ST., BRIDGETOWN, BARBADOS

Ocean Building, 88 Union Road, Colebay, Sint Maarten

Tel 1‐721 542‐2719

design@dma‐architects.com

David Morrison Associates

ARCHITECTS & APPRAISERS

SUBJECT

'REF/011.05/2019.HASSELL‐EUX‐FCIB

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POBox 503, Broad Street, Bridgetown, Barbados, WI.

Attn. Zerrie‐Ann Morris, Analyst, Credit Risk Management,

680 m2

Page # Pages

3

4

5

6

7

8 DESCRIPTION

ACCOMMODATION

9 INFRASTRUCTURE

STRUCTURAL

FINISHES

10 DISCUSSION

11 EVALUATION

12 INSURANCE VALUATION

PHOTOGRAPHS 7

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0

21PAGES TOTAL

ADDENDA

Appraisers : David Morrison assisted by Margit Poulsen & Geraldine Ladera.

INDEX

LIMITING CONDITIONS & DEFINITIONS

KADASTRAL EXTRACT

OBJECTS

Market & quick‐sale (forced sale) values;

Reinstatement value (for insurance).

Sint Eustatius, Holland (Dutch Caribbean)

TITLE

Cadastral description : Mbr. #32/1988

Site area :

FREEHOLD title in name of Fernando L. Hassell and Sharine Hassell

GLOBAL SITUATION

ISLAND DESCRIPTION

FLOOR PLANS

LOCATION PLAN

CIBC FirstCaribbean International Bank

DATE

Effective date & inspection : 8 May 2019

SUBJECT

Apartment house at John Spanner Road #5

LOCATION

REQUIREMENTS & INDEX

CLIENT


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property and excludes land and movable assets (eg. furniture, fittings, equipment & personal effects). It may be used as a guide for insurance risk & excludes depreciation unless specifically noted.

The information and conclusions provided in this report are time sensitive and should be subject to re‐evaluation from time to time, as circumstances require. Values exclude furniture, fittings, equipment & personal effects.

Where a “replacement value” is provided, this reflects the appraiser’s consideration of the cost to replace the immovable

ARCHITECTS & APPRAISERS

OCEAN BUILDING ‐ UNION ROAD ‐ COLEBAY ‐ SINT MAARTEN

thereof, nor with any other party concerned therewith in regard to the subject property.

The conclusions in this report are not in any way affected by any remuneration received.

Principal has been registered with the Dutch Institute of Architects (BNA) : all work is performed according to the DNR‐2011

assembled, interpreted and prepared with all reasonable diligence by experienced professionals.

and in accordance with all codes, regulatory requirements and general good practices.

the conclusions of this report.

knowledgably, prudently and without compulsion.

If a “quick sale” value is provided in this report, this term should be interpreted as an assessment of the potential value of the asset with minimal market exposure, eg. at auction,: however, it must be understood that auction sales are unpredictable and

property is free from rot, water damage, fungal or insect infestation, or any other defect, current or latent, not immediately

Any legal definitions or ownership statements have been the subject of enquiry at the Island Kadaster (survey and records) Department and are reproduced dependent on same and assumed to be correct.

of the property and that construction (if any) has been executed according to such permissions in a proper workmanlike manner

Market Value is herein defined as the estimated amount for which a property should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where each of the parties have acted

that a lesser value may result in such cases.

David Morrison Associates N.V. is a limited liability company incorporated under the laws of Sint Maarten (1981)

Areas & dimensions quoted are approximate only and should not be used for purpose other than herein utilised.

Furthermore, this report does not warrant the structural integrity of the improvements (buildings & appurtenances) nor that the

purchase, future changes in public access, utilities or facilities in general, nor for future local or global events which may affect

evident upon brief inspection.

LIMITING CONDITIONS & DEFINITIONS

This report is confidential and is for the sole use of the client and his/their professional advisors: the information therein has been

The report, either in whole or in part, may not be reproduced, published or otherwise disseminated in any way without the expre written permission of the authors.

All reasonable care has been taken in the inspection of the property concerned : however, no responsibility is taken by the autho as to its/their precise location(s), conformity to codes, whether or not planning or construction permits have been obtained, nor improvements (if any) conform to such permissions.

It is thus presumed, but not verified, that the applicable planning and construction permits have been issued for any developmen

No investigation (other than in the above paragraphs) has been made into potential public rights‐of‐way, possible compulsory

The appraisers hereby state that they have no undeclared interest whatsoever in the appraised property, nor with the owner

the use and enjoyment of the property as if he or she were the owner. The legal case of property ownership remains with the egal owner. Unless otherwise agreed, the leaseholder may rent and (sub)lease. The 'right in rem', which is leasehold, may be sold, the Market Value thereof reflecting that of freehold. There may be conditions inherent in the leasehold sold.

Dutch leasehold is the real right authorizing the leaseholder to keep and use another's property whereby the leaseholder has


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ELEVATION

Approx. 93 m (305') above sea level

GLOBAL COORDINATES

17.4814 N

‐62.979 W

GLOBAL SITUATION

LOCATION PLAN ‐ ISLAND CONTEXT


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immediately to the northwest of Saint Kitts, and to the southeast of Saba and Sint Maarten. The island's capital and

only town is Oranjestad, where well preserved remnants of European and Jewish heritage are very visible.

around 2000 ft). At the turn of the last century, Statia's population was recorded as 3,543 inhabitants, with a density

of 169 inhabitants per square kilometre, probably half what it was two hundred years prior .The bulk of the island's

in English. A local English‐based creole is also spoken informally. Travelers to the island by air arrive through

F.D. Roosevelt Airport, accommodating small planes, STOL craft and very small private jets.

Statia became a special municipality within The Netherlands on 10 October 2010. The name “Sint Eustatius”

reported to be uninhabited. As of 1678, the islands of St. Eustatius, Sint Maarten and Saba fell under the direct

command of the Dutch West India Company, with a commander stationed on St. Eustatius to govern all three.

At the time, the island was of some importance for cultivation of tobacco and sugar.

from which the young United States could obtain military stores. The good relationship between St. Eustatius and

the United States resulted in the noted "First Salute".

On November 16, 1776, Captain Isaiah Robinson of the 14‐gun American brig Andrew Doria, sailed into the anchorage

below St. Eustatius' Fort Oranje. Robinson announced his arrival by firing a thirteen gun salute, one gun for each of

the thirteen American colonies in rebellion against Britain. Governor Johannes de Graaff replied with an eleven gun

salute from the cannon of Fort Oranje. Protocol required a lesser salute (‐2) as acknowledgement of a sovereign flag,

Today, Statia is known as an oil storage port (Statia Terminals), and apart from a small tourism industry, little other

population lives in the saddle between the two elevated areas, which forms the center of the island.

The official language is Dutch, but English is the "language of everyday life" on the island and education is solely

The Quill, amidst similar dwellings : access to public services, airport, port, etc., is reasonable.

This Property is located on Sint Eustatius which, combined with the other islands of Curaçao, Bonaire, Saba and

St. Maarten, originally made up the Netherlands Antilles, but is now a special municipality (officially “public body”)

The island lies in the northern Leeward Islands portion of the West Indies, southeast of the Virgin Islands. Statia is

ISLAND DESCRIPTION

is the Dutch name for Saint Eustace (also spelled Eustache), a legendary Christian martyr.

The island was sighted by Christopher Columbus in 1493 and later claimed by many different nations. From the

first settlements in the 17th century until the early 19th century, Statia changed hands and flags 22 times.

In 1636, the chamber of Zeeland of the Dutch West India Company took possession of the island that was then

During the 18th Century, the island sold arms and ammunition to anyone willing to pay. It was one of the few places

of the Netherlands. Sint Eustatius, also known affectionately as Statia, is thus part of the Caribbean Netherlands.

Subject property lies in the well developed subdivision of Princess Gardens close to central Oranjestad on the SW side of

but this became a part of history as the first acknowledgement of the independent American flag.

activity of importance is presently noteworthy.

Statia has an area of 21 square kilometres (>8 sq mi) and is dominated by a dormant volcano known as The Quill (at


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NEIGHBOURS

NW

NE

SE

LOCATION PLAN

Residential property

Residential property

Residential and unpaved alley

Public road

Part of Oranjestad at Princess Gardens

SW


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NW SE

Middle class

MARKET APPEAL

Below standard

ORIENTATION

SURVEY DATA

Y

Subject property is located on the NE side of John Spanner Road, an extension of Mansionweg, to the south of the

Y

STREET VIEWS

Residential area

faces the SW over Oranjestad towards the Caribbean Sea

Top class

Lower class

Commercial/residential

LOCATION

kadastral information not available but no evident encroachments

average

Industrial/residential

Undeveloped area

airport and to the east of the port, in the area known as Princess Gardens, on the lower SW slopes of The Quill, a

dormant stratovolcano.

TOPOGRAPHICAL

Surrounding development is mixed single‐ and multi‐family residential, medium density.

gently sloping land

KADASTER


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INTERNAL SPACE LL 309 m2

COVERED TERRACES LL 20 m2

LAUNDRY AREA COVERED LL 13 m2

CARPORT LL 27 m2

INTERNAL SPACE UL 80 m2

COVERED TERRACES UL 31 m2

480 m2UNCOVERED TERRACES UL 103 m2

3 Bathrooms

2 Porches

External Works

MAIN LEVEL

Plumbing

Overall property

2 Family rooms

Laundry

1 Covered terrace (over carport)

1 Kitchen

Quality construction

DESCRIPTION

Parking facilities

0%

1‐Bedroom apartment

Living rooms

3

TOTAL COVERED SPACE

Millwork & trim

Closet & storage

2

1 Dining room

Electrical

1

side (wooden) terrace of the main house, close to a large diesel generator.

ACCOMMODATION

Condition improvement

Room sizes/lay‐out

To the NW boundary, a block wall protects the property for the most part and to the SE a fence stretches along

right is the carport and steps up to the covered terrace; to the left is the small studio apartment and steps to the

100%

plus 51 m2 covered terraces (of varying type).

50%

A further small self‐contained studio dwelling is located at the W corner of the property, near the main entry,

and on the S corner lies a large car‐port with a tiled covered terrace above.

Bedrooms

the side alley to a gated access to the rear of the property at its E corner.

The gross built area of the dwelling, old and newer parts, totals an estimated 389 m2 of internal habitable space

A wall with entrance gate front the property from the road, affording access via a small paved courtyard; to the

Y

A multiple dwelling house is extant on the property, on three levels, the middle of which is evidently the original

3‐bedroom dwelling, with access via concrete front steps through a small terrace, as well as from a hardstanding

to the rear, again through a covered terrace.

At the N corner of this building, five small apartments have been added, three at the main house level (and

accessible from within same) and two on the upper floor, accessed by an external concrete stair.

2 Studio apartments


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28 32

2 1‐Bedroom apartment

Estimated remaining life of building (yrs.)

ENVIRONMENTAL CONSTRAINTS

Due to the maritime influence on the island, many properties are subject to the effects of environmental stress

caused by sun, wind and a relatively saline atmosphere, as well as potential (often residual, apparent at a later

Y1 Roof deck

date) damage due to extreme conditions created by hurricanes, tropical storms, seismic and volcanic activity.

plaster, paint; tiled as required; wooden division wall at studio #1

Carport

Kitchen

Windows

mainly concrete, some timberTerrace rails

FINISHES

Air conditioning split systems in bedrooms

tiled floors, walls, showers

wooden cabinetry with hard‐surfaced countertops; tiled countertops in studios apartments

Protection n/a

alum/glass louvre windows, alum/glass sliding windows

Doors

Baths

Ceiling

ceramic tile, vinyl, carpet; bare concrete floors at roof deck (upper level)

exposed rafters; painted concrete soffitts

Floors

patio doors (part glazed) to terraces; alum/glass sliding door to family room and access to

studio #2

Estimated age of existing building (yrs.)

UPPER LEVEL

Public water

INFRASTRUCTURE

Walls

STRUCTURAL

Com sewageCable TV

Electricity

Paved roads

Although no in‐depth information is available, there would appear to be no further environmental conditions

which may be detrimental to subject property, which lies in a residential area, with minimal traffic noise.

ROAD LEVEL

Y

Y

N

TelephoneY

The following utilities are normally available:‐

Y

Y

walling, fencing, hardstanding; iron gates

1 Studio apartment

The building is constructed mainly of concrete and concrete block and appears to be strongly built : roofs are

partly concrete, partly timber‐raftered and decked, topped with profiled galvanised metal sheeting.

Ext. works


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is MF residential, the CAPITALISED INCOME approach may dominate, especially due to the lack of sales

COST APPROACH : the land and building were assessed for probable replacement cost :‐

COMPARABLES : no definitive information on property sales in Sint Eustatius over ther past few years

was found. Older information (>3 years) indicates the sale of residential lots in the region of $40/m2.

m2

1 12

1 12

1 12

1 12

1 12

1 12

1 12

25%

9%

NET RENT (NOI)

423,333$ CAPITALISED AT

CAPITALISATION OF RENTAL INCOME

APT #1 (including electricity & water)




$500

22,275$

16,000$

data (indeed, lack of sales) and on reinstatement cost (excluding land) for insurance estimates.

38,100$

7,200$

6,000$ $500

TECH INSTALLATIONS (A/C., GENSET, SOLAR COLLECTOR)

LAND 30,000$

Values are generated using comparable sales, projected income generation & estimated replacement cost

474,300$ IMPROVEMENTS

INCOME APPROACH ; the rental income of the several spaces in subject building was reported:

TOTAL 542,575$

DISCUSSION

MAIN DWELLING 12,000$ $1,000

6,000$

$400

EXTERNAL WORKS

$600

RENT/AN

$400

APT #5 (including water)

DEDUCT FOR T/OVER, INS., TAX, UTILS., etc. (8,700)$

4,800$

6,000$ $500

APT #6 (including water)

(including land). SF residential properties generally rely on COMPARABLE SALES, when available : as subject

4,800$

RATE/mth

The current real estate climate in Statia remains flat.


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The following estimates are, in the opinion of the Appraiser(s), true and correct, and are based on current

construction costs and market forces on Sint Eustatius :‐

The property is reportedly burdened by a mortgage with FCIB.

The property may be considered as being developed as its 'highest‐and‐best use'.

EVALUATION

DAVID MORRISON,

DAVID MORRISON ASSOCIATES N.V.

MARKET VALUE OF REAL PROPERTY 475,000$

reasonable, but perhaps 10% below MV: the QS value should be used for a sale withing six months.

QUICK‐SALE VALUE 337,500$

It is the opinion of the appraisers that the likelihood of disposal of the property within a twelve month window is


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The following estimates are, in the opinion of the Appraiser(s), true and correct, and are based on current

construction costs and market forces on Sint Eustatius, for insurance purposes only:‐

Neither furnishings, fittings, equipment, nor personal effects are included in the above valuations, such to be

No specific allowance has been made in the reinstatement estimates for any demolition, removal of debris or

professional services required after a (substantial) loss, these being included in 'extended benefits' in certain policies.

Reinstatement estimates exclude external works (walls, fences, paved drives and walks, gates, antennae, etc.) but

No moveable contents of the subject dwelling are included in the above assessment : it is recommended that all

receipts for furniture/appliances are preserved and all items (esp. valuable art/artefacts) are photographed and a

full dossier kept available in case of loss. Valuable items especially should be specifically identified.

INSURANCE VALUATION

insured or specifically mentioned and documented with the insurer of record (refer below).

The total may be broken down as follows:‐

include storm shutters and all external appurtenances physically attached to the building (aircos., lights, etc.).

It is recommended that any specialist structure (eg. swimming pool, separate gazebo) or item (solar water heater,

emergency generator, centralair system, spa, etc.) or other external works (walls, fences, gates) be either separately

evaluated separately by the insured party : inventory and photographs are recommended.

REINSTATEMENT COST 527,000$

BUILDING & APPURTENANCES 505,000$

‐$

7,500$

2,500$

EXT METALS (GATES)

DAVID MORRISON ASSOCIATES N.V.

CONTENTS

6,000$

DAVID MORRISON, B.N.A.,

AIRCO

SOLAR HEATER

STORM SHUTTERS

GENERATOR 6,000$

The estimates assume all insured property to be in a good state of repair and maintenance.


firstcaribben international bank - boekhoudt · pobox 503, broad street, bridgetown, barbados, wi....

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