wholeness center appraisal.pdf

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

23SouthMainStreetChambersburg,PA.17201

PREPAREDFOR:

Attn:PastorBowerman&TrusteesCentralPresbyterianChurch

40LincolnWayWestChambersburg,PA17201

Asof:May5,2015Preparedby:AushermanBros.RealEstate,Inc.

JohnD.Ausherman,SRAPAStateCertifiedGeneralRealEstateAppraiserDavidJ.Coletta,PAStateCertifiedResidentialRealEstateAppraiser

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TABLE OF CONTENTS

TITLE PAGE TABLE OF CONTENTS 2 LETTER OF TRANSMITTAL 3 SUMMARY OF SALIENT FACTS 5 APPRAISAL SPECIFICS 6 APPRAISAL SCOPE 7 LIMITING CONDITIONS & ASSUMPTIONS 9 AREA ANALYSIS 10 PROPERTY DESCRIPTION 16

ASSESSMENT AND ZONING 22 HIGHEST AND BEST USE 24 VALUATION METHODOLOGY 25 COST APPROACH TO VALUE 26 SALES APPROACH TO VALUE 27 INCOME APPROACH TO VALUE 35 RECONCILIATION AND FINAL ESTIMATE 39 CERTIFICATION STATEMENT 40 ADDENDA LEGAL DESCRIPTION TAX MAP FLOOD MAP ENVIRONMENTAL ADDENDUM QUALIFICATIONS OF APPRAISER AND CERTIFICATION

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Ausherman Bros. Real Estate Inc. 229 North Second Street Chambersburg, PA 17201

www.aushermanbros.com 717-264-6715 717-264-4973

May 11, 2015 Central Presbyterian Church Attn: Pastor Bowerman

Re: 23 S. Main Street Chambersburg, PA 17201

To whom it may concern: Pursuant to your request, we have prepared an appraisal for the above referenced property. The purpose of this appraisal is to estimate the market value of the subject propertys fee simple interest for internal review purposes, as of May 5, 2015. This appraisal is intended for the use of the client only. The summary report of a complete appraisal has been completed in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP) and applicable Federal regulations. The attached report details the scope of the appraisal, level of reporting, definition of value, valuation methodology, and pertinent data researched and analyzed in the development of this appraisal. We certify that we have no present or contemplated future interest in the property beyond this estimate of value. Your attention is directed to the Limiting Conditions and Assumptions, located on page 9. Acceptance of this report constitutes an agreement with these conditions and assumptions.

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May 11, 2015 Page 2 In my opinion, the value of the subject property, as of May 5, 2015, was as follows:

23 South Main Street $122,000

Respectfully submitted, Ausherman Bros. Real Estate Inc.

John D. Ausherman PA State Certified General Real Estate Appraiser Certification #GA000148L

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Summary of Salient Facts

Subject Property: 23 South Main Street Chambersburg, PA 17201

Property Overview: Mixed Use Interest Appraised: Fee Simple Interest

Highest and Best Use

As Improved: Commercial

Zoning: DBD

Appraisal Effective Date: May 5, 2015

Cost Approach:

Not Developed

Sales Comparison Approach:

$ 122,000

Income Approach:

Reconciled Value:

N/A

$ 122,000

THIS IS A SUMMARY APPRAISAL REPORT. This page is invalid as an appraisal report if detached from the following detailed report which contains 45 pages. This page nor any other section of this report including addenda, may be removed from or used outside of the full context of the report.

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Appraisal Purpose The purpose of this appraisal is to estimate the market value of the subject property, as of May 5, 2015 to establish an opinion of market value.

Intended Use The intended use of this report is to estimate the market value of the subject property, in as is condition, as of May 5, 2015, for the Central Presbyterian Church, this report is not being completed for financing purposes.

Intended User(s) This appraisal is intended the use of client only, the Central Presbyterian Church.

Market Value Definition The term "market value" is defined as "the most probable price in terms of money which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

A. Buyer and seller are typically motivated; B. Both parties are well informed or well advised, and each acting in what he/she considers

his/her own best interest; C. A reasonable time is allowed for exposure in the open market; D. Payment is made in cash in U.S. dollars or in terms of financial arrangements comparable

thereto; and; E. The price represents a normal consideration for the property sold unaffected by special or

creative financing of sales concessions gained by anyone associated with the sale."1

Five-Year Sale History Subject property has not transferred within the previous five years. According to the Franklin County Courthouse, the last recorded transfer was on October 29, 1999 for the consideration of $125,500. This transaction is recorded in Franklin County Deed Book 1465 page 226. A copy of the deed is included in the addenda of this report.

Current Listing/Pending Contracts Local multi-list service notes that the subject property is not currently listed nor under sales contract agreement.

1 Title XI of FIRREA, 1989.

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Appraisal Scope According to the Uniform Standards of Professional Appraisal Practice, it is the appraisers responsibility to determine the appropriate scope of work. USPAP defines the scope of work as:

The amount and type of information researched and the analysis applied in an assignment. Scope of work includes, but is not limited to, the following:

the degree to which the property is inspected or identified; the extent of research into physical or economic factors that could affect the property; the extent of data research; and the type and extent of analysis applied to arrive at opinions or conclusions.

SCOPE OF WORK

Appraisal Type: Summary Appraisal Report

Property Identification and Inspection:

The subject has been identified and inspected by the appraiser(s) as follows:

Analysis of Physical Factors:

All pertinent physical factors were analyzed.

Analysis of Economic Factors:

All pertinent economic factors were analyzed.

The Extent of Data Research:

The appraiser(s) maintain a current and comprehensive database of commercial sales and listings for the subjects market area. In addition to market data developed in the course of previous appraisal work and retained in the appraiser(s) work files, other sources of information include: Courthouse MLS Property Owner Property Inspection Where warranted, market data has been confirmed by a party to the transaction, or other reliable source.

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The Type and Extent of Analysis:

Cost Approach: This approach is not applicable, nor necessary and has not been developed. Sales Comparison Approach: This approach is applicable, necessary and has been fully developed. In this case, the income approach has been developed using data from data provided by the current owner.

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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 Ausherman Bros Real Estate Inc. 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 limited appraisal assumes there is no existence of hazardous materials or conditions, in any form, on or near the subject property. 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. The appraiser(s) are not required to give testimony in Court in connection with this limited appraisal. If the appraisers are subpoenaed pursuant to a court order, the client agrees to pay the appraiser(s) our regular per diem rate plus expenses. Appraisals are based on the data available at the time the assignment is completed. Amendments/modifications to limited appraisals based on new information made available after the limited appraisal was completed will be made, as soon as reasonably possible, for an additional fee.

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AREA ANALYSIS OVERVIEW Franklin County was founded in 1784 by Benjamin Chambers, and named in honor of Benjamin Franklin. The county encompasses an area of 754 square miles. Located in the south-central section of Pennsylvania, the county is comprised of seven boroughs and fifteen townships. The boroughs include Chambersburg (the county seat), Waynesboro, Greencastle, Shippensburg, Mercersburg, Orrstown, and Mont Alto. The townships include Antrim, Fannett, Greene, Guilford, Hamilton, Letterkenny, Lurgan, Metal, Montgomery, Peters, Quincy, St. Thomas, Southampton, Warren, and Washington.

LOCATION The south-central region lies north of the Pennsylvania-Maryland border known as the Mason-Dixon Line, south of Cumberland County, west of Adams County, and east of Fulton County. The area is located at the edge of the Washington-Baltimore Metropolitan area, near the hub of interstate highways, Pennsylvania Turnpike, and state/federal highways. U. S. Route 30, which runs east/west, and U.S. Route 11 running north/south flow through the county and intersect in the downtown Chambersburg commercial area. Interstate 81, which parallels U.S. Route 11, provides three easy off/on ramps. The Pennsylvania Turnpike is a distance of approximately 20 miles. Interstate 70 running east/west parallels U.S. Route 40 and flows through Hagerstown, Maryland, a distance to the south of 30 miles. The area is located approximately 154 miles from Pittsburgh, 238 miles from New York, 140 miles from Philadelphia, 76 miles from Baltimore, 94 miles from Washington, D.C. and 380 miles from Detroit.

CLIMATE Typical of continental moist climates, the area experiences moderate weather. The average annual temperature is 51F with summer average temperatures in July of 75F and winter average temperatures in January of 32F. Normal annual rainfall is 42 inches and the crop-growing season extends from May through October.

TRANSPORTATION The area is conveniently located to rail, air freight and trucking terminals. Harrisburg International Airport is 55 miles from Chambersburg while Washington Country Regional Airport is 30 miles. Both provide air parcel and cargo service to major airports. Trucking firms with major terminals are located in Hagerstown, Greencastle, Shippensburg, Chambersburg and Carlisle; all within 15-30 minutes driving time. ConRail, CSX Transportation, Inc. and Maryland Midland Railway, Inc. service rail transportation with freight offices just outside Chambersburg. Norfolk Southern operates a regional intermodal terminal just off exit 3 of I-81, while CSX operates an intermodal terminal at exit 14, of I-81. Pennsylvania & Southern Rail operates a short line service within the Cumberland Valley Business Park while the Railroad Associates Corporation (TRAC) operates a short line service within the Chambers-5 Business Park. One-third of the major U.S. markets in the

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Northeast, Midwest, and South can be reached within one-to-two days travel time using the trucking industries available or the rail network system.

LAND USE The land use within Franklin County is governed in most cases by local zoning regulations. Land use in townships without zoning laws, is controlled by deed restrictions. Land use covers a wide range of allowable codes such as residential, commercial, and light/heavy manufacturing.

POPULATION The population of Franklin County is experiencing growth as illustrated by the Census data shown below:

1950 Population 75,927








The most recent data available indicates that from 2000 to 2010, the population increased by 15.7%. The majority of this growth has been realized in Greene Township with 36% increase, Southampton Township with 30.1%, Montgomery Township with 23.5%, Washington Township with 21.1%, and Hamilton Township with 20.5%.

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Population Growth Franklin County

149,618

121,082

113,629

100,833

88,172

75,927

129,313

0 50,000 100,000 150,000 200,000

Yr 1950

Yr 1960

Yr 1970

Yr 1980

Yr 1990

Yr 2000

Yr 2010

# of People

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HOUSING Styles of housing within the county are diverse and prices are below the national average. Housing supply has increased significantly during the past five years with new single family residential developments established in most areas of the county. According to statistics provided by the local Multi-List Service, the average sales price for single family homes sold in 2007 that were located in Franklin County was $201,205. The average sale price for single family homes in Franklin County decreased during 2006 to 2007 by a factor of 2.46%. While in 2008 the average sales price for single family homes sold and located in Franklin County was $188,582. In other words, the average sale price for single family homes in Franklin County decreased during 2007 to 2008 by a factor of 6.27%, then from 2008 to 2009, the average sale price for single family homes in Franklin County decreased by 7.65%. When comparing 2010 to 2009 the decrease was 4.59%. The year end for 2011 shows the average sale price for single family homes in Franklin County at $156,693. Thus, indicating that the average sale price for singe family homes in Franklin County decreased 5.79% when comparing 2011 to 2010. The most current end-year figures for 2012 reflects the average sale price for single family homes in Franklin County to be $159,314; for a slight increase of 1.67% when comparing the past two years. According to an article published in The Herald-Mail newspaper on February 26, 2012 only 179 new construction home building permits were issued for 2011 by the Franklin County Planning Department. Updated information through the Public Opinion newspaper indicates that 154 new construction home building permits were issued for 2012. The following chart illustrates the number of housing starts over the past thirteen years.

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EDUCATION Educational opportunities in Franklin County begin with numerous pre-school facilities operated by private companies, the local YMCA, and by many local churches. In addition, there is an operating Montessori school in Chambersburg. The public school districts consistently score above national and state averages on standardized tests. Over half of the graduates continue their schooling at college or technical schools. The Franklin County Area Vocational Technical School offers 25 three-year programs and provides on-the-job training opportunities at businesses and industries. Franklin County also has a center for learning disabled people. In addition, there are several church sponsored schools having kindergarten through twelfth grade classes. The Mercersburg Academy is a private preparatory school, which offers classes for grades 9-12. The Franklin County area has three excellent colleges and universities. Wilson College in Chambersburg is a private, liberal arts college committed to educating women. However, a Continuing Ed Studies Division offers degree, intern programs, certificate and professional development courses to both men and women. The college recently voted to open the school to males for full enrollment beginning with the class of 2014. The Pennsylvania State University offers degree programs, graduate courses and professional development at its campus in Mont Alto. The largest college level facility is Shippensburg University, which maintains an enrollment of over 8,000 students. The university offers 75 undergraduate degrees, 8 pre-professional programs, 17 post graduate programs, and 3 post masters degree programs.

EMPLOYMENT The areas diversified terrain with topography ranging from level and gently rolling to steeply sloping mountains has provided a mainstay for agriculture, as well as, industrial and manufacturing opportunities. The largest concentrations of employment are in machinery, printing and publishing, food products, lumber, wood, leather, stone-clay glass products and transportation equipment. Letterkenny Army Depot is the largest employer with an approximate workforce of 4300. Major employers in Franklin County include Summit Health (2,800), Manitowoc Crane Group (2000), Chambersburg Area School District (1,040), Franklin County Government (940), Volvo Construction Equipment (800), Food Lion (625), Target Distribution Center (600), Johnson Controls/Frick Co (620), Waynesboro School District (510), Martins Famous Pastry Shoppe (480), World Kitchens (400), Ventura Foods (400), TB Woods (320), Tyco (300)2. Several new industries have opened during the past few years; some of these include Bri-Mar Mfg, MFG Properties (manufacturer of road machinery parts), Nursery Supplies Inc., TBJ Industries, Olympic Steel, and several distribution plants such as K-Mart and Ulta. The area has shown recent growth with the opening of new motels, restaurants, and retail stores.

Agriculture remains a stable base in the local economy with a yield of more than $165 million annually. The Dairy industry represents $94 million in yearly receipts. Local farmers have a strong work ethic and maintain up-to-date technology. Local orchards produce apple and peach crop yields that rank second in the state.

__________________ 2 Data extracted from Herald Mail, June 6, 2011.

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The labor poll has a diversified workforce that is productive, dependable and experiences very few strikes or work stoppages. Traditionally, the unemployment rate for the county is lower than the state average. During the past ten years, the Franklin County annual average unemployment rate has fluctuated from a high of 8.2% in 2009 to a low of 3.2% in 2006. The March 2013 unemployment rate for Franklin County was 6.5% which is higher than the February 2013 rate of 6.4%. The state unemployment rate in March 2013 was 7.7% while the United States rate was 7.6%. The chart on the following page illustrates the average annual unemployment rate for the past eleven years. Unemployment rates are misleading because many builders are self-employed independent contractors who do not draw unemployment compensation. With the downturn in the new housing market many contractors are out of work.

REGIONAL DEVELOPMENT The Franklin County region has experienced residential and commercial development. Some of the larger projects are as follows:

New residential housing developments are located in Antrim, Greene, Guilford and Washington Townships, as well as, Chambersburg and Waynesboro Boroughs. These consist of single-family homes, townhouses, and complexes geared toward senior citizens. Whitetail Ski Resort has developed a townhouse complex and multi-story condominiums; a golf course has been added.

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Chambers 5 Business Park Located just off I-81 at exit 14, the park contains 250 acres, and is zoned heavy industrial. Some of the sites have dual rail access and I-81 visibility. The Borough of Chambersburg furnishes all utilities. The major industries are: Ventura Foods, Nursery Supplies, Gates Rubber Co., Chambersburg Cold Storage, Olson and Olson, Olympic Steel, Hirschmann Headquarters, and several warehouse/distribution facilities. During 1998, Chambersburg Area Development Corp. (CADC) purchased approximately 45 acres of adjoining land to enlarge the park. Both the Franklin County Area Development Corporation (FCADC) and CADC are actively pursuing new businesses. Kmart, Ingram Books, and Target have constructed large distribution centers.

Continued growth is expected as the Gateway Center opened and land along Walker Road sold for commercial development purposes. The following is a portion of the recent or planned development: Interstate 81's Exit 17 opened and Norland Avenue was extended to connect the I-81 exit 17 to U.S. 11 in Chambersburg's north end. F & M Trust Co., M&T Bank, Tower Bank, branches opened along Norland Ave. The former Gabler farm west of Interstate 81 between Exit 16, U.S. 30, and Exit 17 has experienced significant growth during the past six years. The latest businesses would be adjacent to the Gateway Center on Walker Road. Anticipated commercial developments in the Gabler tract total more than $22 million: Wolfes Furniture, Future Vision, and several eateries including Brusters Ice Cream, Fuddruckers, Quiznos, Red Robin, and TGI Fridays have opened since fall of 2006. Crest Ford opened a new dealership on 4.4 acres at the corner of Walker Road and Gateway in 2005. A 70 room Country Inn and Suites at Beddington Blvd and Walker Road is open. Chambersburg Crossing at Norland Ave and Walker Road includes a Kohls Michaels, PetSmart, Giant, Target, Sonic, and Sheetz. The shopping center has 419,000 sq ft; Target opened in March 2007 followed by Giant in July. Several other small businesses opened in the strip center along with a Panera Bread Company eatery. Chipolte opened a restaurant as a pad site in the area of Kohls in February 2013. The extension of Norland Avenue joins existing professional and medical offices at Fifth Avenue to Walker Road, Exit 17 and the current commercial development. Jennings Auto Dealership constructed a new showroom/dealership at the corner of Gateway and Norland Avenues. A Maryland developer has built a shopping center across the street from Chambersburg Crossing on Norland Avenue. The site encompasses 15.5 acres from Gateway Avenue to Walker Road along Norland Avenue. This part of the development is to be known as On the Avenue @ Chambersburg. The first phase is to include the LongHorn Steakhouse, Olive Garden, and Texas Roadhouse; which opened in the fall of 2012. Other plans include two retail anchors, and eight storefronts. Additional growth is underway on the south section of Chambersburg between Country Road and Kriner Road. In fact, CSX has built a new rail-truck yard that encompasses a 114 acre terminal. This will increase the CSX rail-truck network permitting containers the size of trailers to be unloaded from trains and then hauled by trucks. A study completed by HDR/HLB Decision Economics Inc., Silver Spring, Maryland estimated that initially the terminal will employ 35 people, but by 2017 the rail-truck yard will be responsible for 1,500 to 5,000 additional jobs along

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the Interstate 81 corridor (United Transportation Union, 4-10-07, from Chambersburg Public Opinion report). In Greencastle, Antrim Commons Business Park located west of US 11 off Commerce Avenue, is a 4 million square foot industrial park. The park is owned by Atapco Properties, Inc of Baltimore, MD. Once the park is completed, it is anticipated that at least 2,000 new jobs will be offered. The park is a mixture of office space, retail, light commercial, and industrial uses. Armada Supply Chain Solutions began construction of a 400,000 square foot facility. This company is based in Pittsburgh, PA and provides supply chain management for food service and restaurant industries. In January 2013, a company based in the United Kingdom purchased 1.8 acres of land in the Antrim Commons Business Park in order to build a new 12,000 square foot plant. The company known as Gate 7, Ltd supplies construction, industrial, and agricultural based industries with decals and print supplies. The plant is expected to be operational by the end of July. Two of the major customers of this company are Manitowoc Cranes and Volvo. On April 3, 2013, Waynesboro Hospital officials announced that an expansion of the hospital with a projected cost of $15 million was actively being pursued. The expansion will provide space for physicians and an urgent care center. The officials have requested help from the Waynesboro Borough Council in obtaining a Redevelopment Assistance Capital Program grant of $6.7 million towards the project. On April 9, 2013, Franklin County Area Development Corporation (FCADC) announced that an India-based manufacturer of hydraulic cylinders plans to open a facility at 1101 Sheffler Drive (the former Olson & Olson facility). The new company, Wipro Infrastructure Engineering manufacturers of cylinders used in material and cargo handling, construction and earth-moving, agriculture, and mining equipment. It is a major supplier to Volvo Construction Equipment in Shippensburg, which just opened its $100 million expansion in March 2013. The total project cost is approximately $11.7 million, which includes the FCADC building purchase of $1.675 million. The new company will create approximately 74 jobs.

In late 2014, it was announced that Dicks Sporting Goods, Petco, and TJ Maxx are coming to the Franklin Center shopping plaza on Lincoln Way East in Chambersburg.

CONCLUSION Generally speaking, the economy of the area, because of its wide array of industries coupled with the agricultural base, had been stable during the majority of the past decade. The most recent unemployment rate data has Franklin County at 4.45 preliminary December 2014, which is below previous years, yet the real estate market has continued to be slow and there are few new homes are under construction. The economic forecast still appears to be stable.

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Property Description

SITE Site Size: The subject property consists of parcel 05-1C57.-043. According to

the most current deed this parcel contains 0.25 ac.

Site Shape: Rectangular

Site Topography: At street grade, nearly level

Road Frontage/Access: The subject property has road frontage along South Main Street. This provides ample ingress and egress.

Flood Zone: The subject is located in an area mapped by the Federal Emergency

Management Agency (FEMA). The subject property is not located in a flood hazard zone. FEMA Map No.: 42055C0291E FEMA Map Date: January 18, 2012 FEMA Zone Classification: C

Easements/ Encroachments:

No adverse encroachments were observed on or around the subject property at the time of inspection.

Site Comments: The subject property site is improved with the building, there is no off street parking.

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Improvements Property Type: Mixed Use

Description: The subject property consists of a brick exterior building originally

constructed in approximately 1900, based on assessment office data. The overall current condition of the property is considered average/ poor. The effective age of the property is considered as 30 years old. The first floor contains approximately 4,945 square feet. It is divided into twelve office units as well as waiting area and restrooms. This area, utilized as professional space has two half baths and is finished with panel and plaster walls, carpet and vct flooring, suspended ceilings, fluorescent lighting and the heat is via gas fired boiler. The second and third floors of the building are noted to contain a mix of office suites and efficiency apartments, however the appraiser did not have access to these floors. The upper floors are noted by church personnel to be in poor condition and in need of complete remodeling. Deferred maintenance was also evident on the first floor as demonstrated by the accompanying photographic addenda. The second and third floors are deemed uninhabitable .

Foundation/Basement: The subject property building is constructed on a stone foundation.

Exterior: Previously noted.

Roof: Membrane and shingle, however the appraiser has no knowledge of

the condition of said roof as it is not visible from ground level .

MECHANICAL SYSTEMS Heating/HVAC: Currently there is a mix of common gas fired heat and electric

baseboard heat. There is no central air conditioning.

Electrical Systems: The subject property has adequate electrical systems.

SITE IMPROVEMENTS Parking: None

Fencing: There is no perimeter fencing.

Drainage:

Appears adequate

Landscaping:

None

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PROPERTY ANALYSIS

The subject property is located within an area that has commercial, multi-family residential and office properties. The subjects location is suitable for a downtown commercial mixed use due to the Main Street, Chambersburg Borough location. The property layout and design are considered average with an average appeal to the market. Adequate ingress/egress to the subject property would be accommodating. Overall, due to the location and property layout or design, the subjects highest and best use is as the current use for as a mixed use building. .

Functional Utility: Average

Design & Appeal: Average

Highest and Best Use: Mixed Use

The term Highest and Best Use is defined as that use which at the time of the appraisal is most likely to produce the greatest return to the property over a given period of time and, consequently, indicates the highest present value. The highest and best use of a property is that use which will create the greatest utility for the land, be it in profit or in amenities, and that which is permitted by the local municipal or township authorities, and that which would not be unduly objectionable to the character of the general neighborhood development. In estimating the highest and best use, there are essentially three states of analysis: A. Possible Use - uses to which it is physically possible to put the site in question. B. Permissible use - legal uses permitted by zoning and restrictions. C. Feasible use - possible and permissible uses that will produce the highest net return, or present worth. Based on the foregoing, it is my opinion that the highest and best use of the subject property is as a Mixed Use building.

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Subject Photographs

Subject Building Front

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Subject Rear

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Assessment & Taxes

Tax Parcel ID# 05-1C57.-043 Tax Year: 2015

Assessed Value Land 39,650 Assessed Value Improvements: 41,230

Total Assessed Value: 80,880 Tax Rate: 0.14632

Real Estate Taxes: $11,834.36 Equalization Ratio: 6.90

Implied Market Value $558,072

Assessment Analysis Equalization ratio is based on the 2014 common level ratio for Franklin County developed by the Pennsylvania Department of Revenue and is applicable from July 1, 2014 through June 30, 2015. Based upon the assessment data obtained the implied market value: $558,072.

Zoning Analysis

District: CC (Central Core) Conforming: The Current use is a conforming use.

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Highest and Best Use 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.2

Permissible Use. What uses are permitted by zoning and other legal restrictions?

Possible Use. To what use is the site physically adaptable?

Feasible Use. Which possible and permissible use will produce any net return to the owner

of the site?

Maximally Productive. Among the feasible uses which use will produce the highest net return, (i.e., the highest present worth)?

Highest and Best Use As Improved After reviewing the property, I have determined the highest and best use would be for current use as a Mixed Use.

2 The Appraisal of Real Estate 11th Edition, Page 297, Appraisal Institute

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Valuation Methodology Three basic approaches may be used to arrive at an estimate of market value. They are:

The Cost Approach The Income Approach The Sales Comparison Approach

This appraisal includes the following:

Cost Approach: This approach is not applicable, nor necessary- due to the age and condition of the improvements, and the lack of second and third floor inspection, and has not been developed.

Sales Comparison Approach: This approach is applicable, necessary and has been developed to the extent that available sales data allows. The appraiser could not locate any truly comparable sales of properties improved with multiple buildings such as the subject property.

Income Approach: In this case, the income approach has been developed utilizing data provided by the client. After an analysis of said data as well as the condition of the improvements, this approach is deemed to be unreliable as the building does not produce sufficient income to draw investors, therefore this approach is deemed not to be a good representation of value and given no weight in the final reconciliation.

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Cost Approach The Cost Approach is based on the principle of substitution - that a prudent and rational person would pay no more for a property than the cost to construct a similar and competitive property, assuming no undue delay in the process. The Cost Approach tends to set the upper limit of value before depreciation is considered. This approach in the valuation process has been considered but deemed not applicable due to the age and condition of the improvements, and the fact this report relies on exterior only inspection, per client request, and has not been developed. .

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Sales Comparison Approach 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 principals of supply and demand, balance, substitution and externalities. The following steps describe the applied process of the Sales Comparison Approach.

1. The market in which the subject property competes is investigated; comparable sales, contracts for sale and current offerings are reviewed.

2. The most pertinent data is further analyzed and the quality of the transaction is determined.

3. The most meaningful unit of value for the subject property is determined.

4. Each comparable sale is analyzed and where appropriate, adjusted to equate with the subject

property.

5. The value indication of each comparable sale is analyzed and the data reconciled for a final indication of value via the Sales Comparison Approach.

We have researched and analyzed 3 comparables to analyze in this approach. All sales have been researched through numerous sources, inspected and verified by a party to the transaction.

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COMPARABLE SALE NO. 1

GRANTOR: WPA Properties, LLC

GRANTEE: Beverly Court, LLC

LOCATION: 76 South Main Street,

Chambersburg, PA 17201

PARCEL NO.: 03-1C57-103

DATE: December 18, 2014

DEED REFERENCE: Franklin County Deed Instrument 2014-22833

CONSIDERATION: $270,000

SITE SIZE: 4,356 sq ft.

DESCRIPTION: Brick building containing 12,532 sq ft. Built in approximately 1900. Two retail stores and eight apartments, average condition. Property sold for $21.55 per square foot land inclusive. 65 DOM.

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GRANTOR: James W. Taylor

GRANTEE: Valley Gate Properties, LLC

LOCATION: 149-153 South Main Street,

Chambersburg, PA 17201

PARCEL NO.: 05-1E51-051

DATE: April 4, 2013

DEED REFERENCE: Franklin County Deed Instrument 2013-09725


SITE SIZE: 3,552 sq ft.

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GRANTOR: Galaxy Development, LLC.

GRANTEE: Ziva Shaool

LOCATION: 31-33 East Franklin St Hagerstown, Washington County, MD

PARCEL NO.: 2222015427

DATE: April 4, 2013

DEED REFERENCE: Washington County Deed 4506 page 388


SITE SIZE: 5,124 sf

DESCRIPTION: Built in 1924, this building has 10,536 sf GBA, brick/ vinyl exterior. This building is noted to have two retail spaces and a total of six residential apartments. There are three two bedroom units and three, three bedroom units Sold for $21.36 per square foot land inclusive. Originally listed at $650,000 this property was 188 DOM.

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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

Economic Trends (time) Location Physical Characteristics

On the following page is a sales comparison grid displaying the subject property, the comparables and the adjustments applied.

32

Indicated Value: $121,900 Rounded to: $122,000

Element Subject Comp #1 Comp #2 Comp #3 Address 19-23 S. Main .

Chambersburg 76 S. Main Chambersburg

149/153 S. Main Chambersburg

31/33 E. Franklin St Hagerstown

Proximity

13.201 miles NW 13.13 miles NW

10.78 miles SW

Sales Price

$270,000 $163,000 $225,000

Price/Sq Ft

$21.55 $ 27.20 $21.36

Source

Inspection Deed Transfer Deed Transfer Deed Transfer

Financing

Conventional Conventional Conventional

Sale Date

12/18/2014 04/04/2013

04/04/2013

Location

Average Average Average

Average

Site Size

0.25 ac. 0.10 ac +1,500

0.08 acres +1,700

0.12 ac. +1,300

Const. Quality Average

Average

Average

Average

Building Size

10,051 sq ft

12,531 sq ft -49,600

5,993 sq ft +81,160

10,536 sq ft -9,700

Condition

Avg./ Poor Average -100,000

Average -100,000

Average -100,000

Other Basement Basement Basement Basement

Net Adjustment

-148,100

-17,140

-108,400

Indicated Value

$121,900

$145,860

$116,600

33

Adjustment Notes

No Conditions of Sale No adjustments were required for condition of sale.

Economic Trends No adjustments were required for economic trends.

Date Of Sale No adjustments were required for date of sale.

Location No location adjustments were required..

Site Size Site size adjustment applied to all sales.

Design No adjustment was required.

Building Size Size adjustments were utilized to make the comparable sales the same size as the subject at a rate indicated by current market trends. The building size adjustments were made on a $15 per square foot basis.

Condition A condition adjustment was required for all three comparable sales as they were considered to be in superior condition when compared to the subject property. The condition adjustment was based on 4,945 square feet of GBA being in poor condition @ $20.00 per square foot.

Other No adjustment was required..

34

Sales Comparison Approach Conclusion

In the completion of this approach to value, the appraiser has spoken with local Realtors and property managers and notes what appears to be an extended marketing time for properties such as the subject. The most likely buyer for such a property would be an investor. Based on the preceding analysis, we have reconciled to a value of $122,000, as of May 5, 2015 , subject to the Limiting Conditions and Assumptions of this appraisal. Most weight has been given to sale #1 as it is the most recent sale..

35

INCOME APPROACH TO VALUE

This procedure in the appraisal analysis converts anticipated benefits (dollar income or amenities) to be derived from the ownership of property into a value estimate. The income is based upon monies received in the form of rental payments for use of the building. The income approach is widely applied in appraising income-producing properties. Anticipated future income and/or reversions are discounted to a present worth figure through the capitalization process. In the completion of the report, the appraiser relied on actual expense and income information provided by the borrower and the following projected income statement was developed. **After an analysis of said data as well as the condition of the improvements, this approach is deemed to be unreliable as the building does not produce sufficient income to draw investors, therefore this approach is deemed not to be a good representation of value and given no weight in the final reconciliation.**

36

PROJECTED INCOME STATEMENT Wollschlager (first floor) $ 2,904 Pathways (first floor) $30,110 Upper floors 0 Actual Gross Income Per Year $33,014 Less Estimated Expenses: Taxes $ 11,834 Misc. Supplies & Expenses* $ 10,000 Utilities $ 7,866 Total Expenses and Replacement Reserves: $ 29,700 Net Operating Income: $ 3,314 *No replacement reserves were calculated as the appraiser was unable to view the entirety of the property. The expenses are based on a three year average of Supplies and expenses the appraiser obtained from the church offices.

37

INCOME STUDY The Income Approach considers the estimated income of the property, making due allowance for expenses incurred in the operation and capitalizing the net income which would represent an attractive yield to an investor. I have examined the monthly projection of rentals and feel that they reflect the market in its current state. A review has been made of the current interest rates being charged by local lending institutions such as Orrstown Bank, and F&M Trust and I have determined that the current interest rates would be 4.5% to 5.0. Taking a long look at the market, I have set forth a possibility of 5.0% as a projected interest rate at 80% of the value for a term of 20 years. I consider that an investor contributing the balance of 20% would be attracted to an investment with a return of 10% resulting in an overall rate of .083356% as follows: Mortgage Rate 5.0% Loan Term 20 years Loan to value Ratio 80 % Portion Rate Weighted (Constant) Rate Mortgage .80 X .079195 = .063356 Equity .20 X .0100 = .020000 Overall Rate .083356 Projected Net Income of $3,314 capitalized at .083356 = $39,757.19 Rounded to: $ 40,000.00 COMMENTS ON INCOME APPROACH

In the Income Approach, the appraiser viewed the subject property as a potential investment for an investor. The appraiser utilized client provided income/ expense figures. ** After an analysis of said data as well as the condition of the improvements, this approach is deemed to be unreliable as the building does not produce sufficient income to draw investors, therefore this approach is deemed not to be a good representation of value and given no weight in the final reconciliation.**

38

Final Reconciliation The process of reconciliation involves the analysis of each approach to value. The quality of data applied the significance of each approach as it relates to market behavior and defensibility of each approach are considered and weighed. In this appraisal, three approaches to value were considered. Each approach has been considered separately and comparatively with each other.

Value Indications Cost Approach .

Sales Comparison Approach ... Income Approach..

Not developed $122,000 No Weight

Cost Approach The Cost Approach is based on the principle of substitution - that a prudent and rational person would pay no more for a property than the cost to construct a similar and competitive property, assuming no undue delay in the process. The Cost Approach tends to set the upper limit of value before depreciation is considered. This approach in the valuation process has been considered but deemed not applicable due to the age and condition of the improvements, and the fact this report relies on exterior only inspection, per client request, and has not been developed.

Sales Comparison Approach In the Sales Comparison Approach, the Appraiser researched sales over the past three years that would be considered comparable to the subject property and through a series of plus and minus to the comparable sales, arrived at the indicated value. Typically this approach best represents the action of buyers and sellers in the market place and is given the most weight.

Income Approach The Income Approach best portrays the value for income producing properties and is developed on an income/expense basis, however, due to the current condition of the building, the building does not produce an income stream sufficient to attract an investor, therefore no weight has been given to this approach. .

Value Conclusion There based on the data and analyses developed in this appraisal, we have reconciled to a value estimate of $122,000 as of January 9, 2015, subject to the Limiting Conditions and Assumptions of this appraisal and based on exterior only inspection. Based upon the current market statistics, it is this appraisers opinion that the subject property would require a marketing time of approximately 100- 400 days marketing time to sell if listed for sale at the indicated value.

39

Certification Statement I certify that, to the best of my 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 my personal, unbiased professional analyses, opinions and conclusions.

I have no present or contemplated future interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved.

My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event.

My analyses, opinions, and conclusions were developed and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP).

I have made a personal inspection of the property that is the subject of this report. No one provided significant professional assistance to me in the development of the

conclusions contained in this report. The Appraiser has established sufficient competence to appraise this property through

education and experience, in addition to the internal resources of the appraisal firm. My value conclusion and other opinions expressed herein are not based on a requested

minimum value, a specific value or approval of a loan.

John D. Ausherman, SRA

I hereby acknowledge the assistance of David Coletta, State Certified Residential Appraiser, in the collection, interpretation and reconciliation of the data used in this report

David J. Coletta, State Certified Residential Appraiser

40

Serving all of Franklin County since 1935

Ausherman Bros. Real Estate Inc.

229 North Second Street Chambersburg, PA. 17201-1641

717-264-6715 FAX 717-264-4973 Federal Tax #25-1552788 www.aushermanbros.com

QUALIFICATIONS OF JOHN D. AUSHERMAN

John D. Ausherman has been engaged in the general real estate practice since 1977. He is experienced in the sale, management, and appraisal of real estate. He obtained his Pennsylvania State General Real Estate Appraiser Certification in 1991. He is qualified as an expert witness for Federal Bankruptcy Court and Assessment Appeals. The following represents a partial list of appraisal clients serviced by Mr. Ausherman: - First Mariner Mortgage Co. - M&T Bank - Metlife Home Loans - F & M Trust Co. - Chase Manhattan Mortgage - Patriot Federal Credit Union - Orrstown Bank - Adams Co. Natl Bank - Flagstar Approved Appraiser - Sovereign Bank - ERA Home Loans - First Home Mortgage - Well Fargo Mortgage Co. - FHA Certified Fee Appraiser - American Home Bank - AgChoice Farm Credit - PCV / Murcor - Susquehanna Bank - Bank of America - 1st American Equity - Hagerstown Trust Co. - First Community Bank of Mercersburg - BB&T Bank - United States Dept. of Agriculture, Rural Dev. - USAA - Veterans Administration (Panel Member) - iMortgage Services (Since 1986) - Huntington Natl Bank - Community Bank of Orbisonia - Northwest Savings Bank

EARNED DESIGNATIONS ASA - Accredited Senior Appraiser Designation 1989 SRA - Senior Residential Appraiser Designation 1994

41

EDUCATIONAL COURSES Risky Business: Ways to Minimize Your Liability, December 2014 Business Practices and Ethics, December 2014 Mortgage Fraud-Protect Yourself, December 2014 Review of Court Decisions on Valuations Lessons Learned, November 2014 Supervisor-Trainee Course for Pennsylvania, November 2014 Introduction to Uniform Appraisal Dataset, October 2014 Land and Site Valuation, May 2014 Appraising FHA Today, April 2014 The New Appraiser Quality Monitoring Policy from Fannie Mae, February 2014 National USPAP Update Course, January 2014 Pennsylvania Appraiser Regulations, December 2013 Pennsylvania State Mandated Law for Appraisers, March 2013 National USPAP Update Course, March 2013 Appraising the Appraisal: Appraisal Review, March 2013 Construction Details and Trends, April 2012 Foundations in Sustainability, April 2012 National USPAP Update Course, January 2011 Appraising Manufactured Housing, December 2009 FHA and The Appraisal Process, December 2009 Business Practices and Ethics, December 2009 National USPAP Update Course, May 2009 Appraising for the Secondary Market, May 2008 Construction Details and Trends, April 2008 The Client Perspective on the Appraisal Profession, July 2007 Making Sense of the Changing Landscape of Value, July 2007 The Real Estate Economy: Whats in Store for 2008?, July 2007 Environmental Pollution and Mold, February 2007 Pennsylvania State Mandated Law, February 2007 Fair Housing, April 2006 The Relocation Training Program, December 2006 US Real Estate Landscape, May 2004 Home Construction, May 2004 Business Practice and Ethics, February 2004 Fee Appraiser and Staff Appraisal Review Meeting, July 2003 Factory built Housing, January 2003 PA State Mandated Course, December 2002 Real Estate Damages: Assessment & Testimony, December 2002 Capitalization Theory and Techniques, April 2002 Law & Order: USPAP & PA Law, February 2001 FHA Appraisal Guidelines & Exam Prep, August 1999

42

Loss Prevention Seminar, September 1998 PA Appraisal Statutes, Regulation and Policies, September 1998 Ethics, Doing The Right Thing, May 1998 A Closer Look At Home Construction, April 1998 Standards of Professional Practice-Part B, November 1997 Residential Appraisal Review, April 1996 Standards of Professional Practice, March 1995 Appraising Residential Real Estate & VA, June 1995 Limited Appraisals Appraisal Institute, October 1994 Code of Professional Ethics (SPP Part A), May 1993 Applied Sales Comparison Approach, March 1993 Discounted Cash Flow Analysis, March 1993 Appraising Residential Real Estate and VA, February 1993 Code of Professional Ethics (SPP Part B), March 1993 Certified in Pennsylvania for General Appraising, 1991 Certified in Pennsylvania for Residential Appraising, 1991 Narrative Report Writing Seminar, May 1988 Society of Real Estate Appraisers Course 101, 1983 Course 102, 1987 Attendance at annual Veterans Administration Seminars, 1985-Present B.S. Degree Juniata College, 1977 PROFESSIONAL AFFILIATIONS Appraisal Institute Central Pennsylvania Chapter Franklin County Board of Realtors Past Director and President Member of Franklin County Board of Realtors Pennsylvania General Appraiser Certification #GA-000148L

43

Qualifications of David J. Coletta

David J. Coletta has been engaged in the practice of residential real estate appraisal since 2002. He has a background in property management and real estate sales dating to 1986. Mr. Coletta obtained his Pennsylvania State Residential Real Estate Appraiser Certification in 2002. Mr. Coletta was added to the roster of FHA appraisers in 2008. Mr. Coletta is qualified as an expert witness for Federal Bankruptcy Court and Assessment Appeals.

The following is a sampling of appraisal clients served by Mr. Coletta: - Tower Bank Flagstar Approved Appraiser - The First National Bank of Mercersburg M&T Bank - F&M Trust Company National City Bank - Patriot Federal Credit Union Citizens National Bank - Orrstown Bank Farmers & Mechanics Bank - Fulton County National Bank & Trust Company Hagerstown Trust Company - Chase Home Finance Citicorp Bank & Trust - Bank of America Corning Federal Credit Union - Various Private Law Offices PCV/ Murcor - United States Dept.of Agriculture, Rural Development -Appraisal Management Companies - Relocation Companies including: Weichert Relocation Services, Plus Relocation Services, and Primary Relocation, LLC. -Various Corporate Clients including Bob Evans Farms and Armstrong Industries, LLC

Educational Courses (Most recent courses listed first) Mortgage Fraud, 2013 REO & Foreclosures, 2013 PA Mandated State Law for Appraisers, 2013 Land & Site Valuation, 2013 National USPAP Update, 2013 Introduction to the Uniform Appraisal Dataset, 2011

Serving all of Franklin County since 1935

Ausherman Bros. Real Estate Inc.

229 North Second Street Chambersburg, PA. 17201-1641 717-264-6715 FAX 717-264-4973

Federal Tax #25-1552788 www.aushermanbros.com

44

Foundations in Sustainability: Greening the Real Estate & Appraisal Industry, 2011 Oddball Appraisals, 2011 PA Mandated State Law, 2011 Essential Elements of Disclosures and Disclaimers, 2011 National USPAP Update Course, 2011 Relocation Appraisal is Different, 2009 Income Capitalization Course, 2009 Pennsylvania Mandated State Law, 2009 2008/2009 National USPAP Update, 2009 FHA Current Appraisal Requirements, 2008 15 Hour National USPAP Course, 2008 FHA Appraisal Today, 2008 Environmental Issues in Real Estate Practice, 2007 A Look at Home Inspections, 2007 National USPAP Update Course, 2007 Pennsylvania Mandated State Law, 2007 Environmental Pollution & Mold, 2007 Art of the Appraisal Review, 2007 Professionals Guide to the Uniform Residential Appraisal Report, 2005 Principles of Real Estate Investment, 2005 National USPAP Compliance Course, 2004 US Real Estate Landscape, 2004 Land Valuation and Development, 2003 USPAP Update, 2003 Appraising Factory Built Housing, 2003 Principals of Real Estate Finance, 2002 Reproduction/ Replacement Cost Course, 2001 Income Property Appraisal, 2001

45

Narrative Appraisal Report Writing, 2000 Sales Comparison Approach, 1999 Uniform Standards Professional Appraisal Practice & Procedure, 1999

FHA/VA Case No.

The Central Presbyterian Church 23SMAIN23 S Main StChambersburg Franklin PA 17201The Central Presbyterian Church

APPRAISAL AND REPORT IDENTIFICATION

2-2(a)

2-2(b)

Comments on Standards Rule 2-3I certify that, to the best of my 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 my personal, impartial, and unbiased professional analyses, opinions, and conclusions.- Unless otherwise indicated, I 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.- Unless otherwise indicated, I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.- I have no bias with respect to the property that is the subject of this report or the parties involved with this assignment.- My engagement in this assignment was not contingent upon developing or reporting predetermined results.- My 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.- My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice that were in effect at the time this report was prepared.- Unless otherwise indicated, I have made a personal inspection of the property that is the subject of this report.- Unless otherwise indicated, no one provided significant real property appraisal assistance to the person(s) signing this certification (if there are exceptions, the name of each individual providing significant real property appraisal assistance is stated elsewhere in this report).

Due to current market conditions, the uniqueness of the subject property and the lack of truly comparable sales, the appraiser estimates the opinion of reasonable exposure time to be 200-500 days.

Comments on Appraisal and Report IdentificationNote any USPAP-related issues requiring disclosure and any state mandated requirements:"I have not performed any services, as an appraiser or in any other capacity, on the subjectproperty within the three-year period immediately preceding acceptance of this assignment."Exposure Time' as defined by USPAP is "the estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal.

John D. Ausherman, SRAPA Certified Residential Real Estate Appraiser

GA-000148

PA 06/30/201505/15/2015

05/05/2014

05/05/2014

Form ID14E - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE

Borrower

Lender/Client

File No.

Property Address

City County State Zip Code

This Report is one of the following types:

Appraisal Report (A written report prepared under Standards Rule , pursuant to the Scope of Work, as disclosed elsewhere in this report.)

RestrictedAppraisal Report

(A written report prepared under Standards Rule , pursuant to the Scope of Work, as disclosed elsewhere in this report,restricted to the stated intended use by the specified client or intended user.)

Reasonable Exposure Time (USPAP defines Exposure Time as the estimated length of time that the property interest beingappraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal.)

My Opinion of Reasonable Exposure Time for the subject property at the market value stated in this report is:

APPRAISER:

Signature:

Name:

State Certification #:

or State License #:

State: Expiration Date of Certification or License:

Date of Signature and Report:

Effective Date of Appraisal:

Inspection of Subject: None Interior and Exterior Exterior-Only

Date of Inspection (if applicable):

SUPERVISORY or CO-APPRAISER (if applicable):

Signature:

Name:

State Certification #:

or State License #:

State: Expiration Date of Certification or License:

Date of Signature:

Inspection of Subject: None Interior and Exterior Exterior-Only

Date of Inspection (if applicable):

FHA/VA Case No.

Form PICPIX.SR - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE

Subject Photo PageThe Central Presbyterian Church23 S Main StChambersburg Franklin PA 17201The Central Presbyterian Church

Subject Front

Sales PriceGross Living AreaTotal RoomsTotal BedroomsTotal BathroomsLocationViewSiteQualityAge

23 S Main StN/A

Subject Rear

Subject Street

Borrower

Lender/Client

Property Address


FHA/VA Case No.

Form PICSIX2 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE

Photograph AddendumThe Central Presbyterian Church23 S Main StChambersburg Franklin PA 17201The Central Presbyterian Church

Interior first floor Interior first floor



Borrower

Lender/Client

Property Address


FHA/VA Case No.



basement basement

basement basement

basement basement

Borrower

Lender/Client

Property Address


FHA/VA Case No.



right side of building

Borrower

Lender/Client

Property Address


FHA/VA Case No.

23SMAINThe Central Presbyterian Church23 S Main StChambersburg Franklin PA 17201The Central Presbyterian Church

Form 69F2 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE

Borrower

Lender/Client

ENVIRONMENTAL ADDENDUM

APPARENT* HAZARDOUS SUBSTANCES AND/OR DETRIMENTAL ENVIRONMENTAL CONDITIONS

File #

Property Address


*Apparent is defined as that which is visible, obvious, evident or manifest to the appraiser.

This Environmental Addendum is for use with any real estate appraisal. Only the statements which have been marked by the appraiser apply to the Subject property.

This addendum reports the results of the appraiser's routine viewing of and inquiries about the subject property and its surrounding area. It also states what assumptions

were made about any observed evidence of any hazardous substances and/or detrimental environmental conditions. The appraiser is not an expert environmental inspector

and therefore might be unaware of existing hazardous substances and/or detrimental environmental conditions which may have a negative effect on the safety or value of the

property. It is possible that tests and inspections made by a qualified environmental inspector would reveal the existence of hazardous materials and/or detrimental

environmental conditions on or around the property that would negatively affect its safety and value.

DRINKING WATER

Drinking water is supplied to the subject from a municipal water supply which is considered safe. However, the only way to be absolutely certain that the water meetspublished standards is to have it tested at all discharge points.

Drinking water is supplied by a well or other non-municipal source. It is recommended that tests be made to be certain that the property is supplied with adequatedrinking water.

Lead can get into drinking water from its source, the pipes, at all discharge points, plumbing fixtures and/or appliances. The only way to be certain that water doesnot contain an unacceptable lead level is to have it tested at all discharge points.

The opinion of value is based on the assumption that there is an adequate supply of safe, lead-free drinking water.

Comments:

SEWER SYSTEM

Sewage is removed from the property by a municipal sewer system.

Sewage is disposed of by a septic system or other sanitary on-site waste disposal system. The only way to determine that the disposal system is adequate and in goodgood working condition is to have it inspected by a qualified inspector.

The opinion of value is based on the assumption that the sewage is disposed of by a municipal sewer or an adequate properly permitted alternatetreatment system in good condition.

Comments:

SOIL CONTAMINANTS

There are no apparent signs of soil contaminants on or near the subject property (except as stated in Comments, below). It is possible that research, inspection andtesting by a qualified environmental inspector would reveal existing and/or potential hazardous substances and/or detrimental environmental conditions on or aroundthe property that would negatively affect its safety and value.

The opinion of value is based on the assumption that the subject property is free of soil contaminants.

Comments:

ASBESTOS

All or part of the improvements were constructed before 1979 when asbestos was a common building material. The only way to be certain that the property is free offriable and non-friable asbestos is to have it inspected and tested by a qualified asbestos inspector.

The improvements were constructed after 1979. No apparent friable asbestos was observed (except as stated in Comments, below).

The opinion of value is based on the assumption that there is no uncontained friable asbestos or other hazardous asbestos material on the property.

Comments:

PCBs (POLYCHLORINATED BIPHENYLS)

There were no apparent leaking fluorescent light ballasts, capacitors or transformers anywhere on or nearby the property (except as stated in Comments, below).

There was no apparent visible or documented evidence known to the appraiser of soil or groundwater contamination from PCBs anywhere on the property (exceptas reported in Comments below).

The opinion of value is based on the assumption that there are no uncontained PCBs on or nearby the property.

Comments:

RADON

The appraiser is not aware of any radon tests made on the subject property within the past 12 months (except as stated in Comments, below).

The appraiser is not aware of any indication that the local water supplies have been found to have elevated levels of radon or radium.

The appraiser is not aware of any nearby properties (except as stated in Comments, below) that were or currently are used for uranium, thorium or radium extractionor phosphate processing.

The opinion of value is based on the assumption that the Radon level is at or below EPA recommended levels.

Comments:

FHA/VA Case No.

Form 69F2 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE

USTs (UNDERGROUND STORAGE TANKS)

There is no apparent visible or documented evidence known to the appraiser of any USTs on the property nor any known historical use of the property that wouldlikely have had USTs.

There are no apparent petroleum storage and/or delivery facilities (including gasoline stations or chemical manufacturing plants) located on adjacent properties (exceptas reported in Comments below).

There are apparent signs of USTs existing now or in the past on the subject property. It is recommended that an inspection by a qualified UST inspector be obtained todetermine the location of any USTs together with their condition and proper registration if they are active; and if they are inactive, to determine whether they weredeactivated in accordance with sound industry practices.

The opinion of value is based on the assumption that any functioning USTs are not leaking and are properly registered and that any abandoned USTs arefree from contamination and were properly drained, filled and sealed.

Comments:

NEARBY HAZARDOUS WASTE SITES

There are no apparent hazardous waste sites on the subject property or nearby the subject property (except as stated in Comments, below). Hazardous Waste Sitesearch by a trained environmental engineer may determine that there is one or more hazardous waste sites on or in the area of the subject property.

The opinion of value is based on the assumption that there are no hazardous waste sites on or nearby the subject property that negatively affect thevalue or safety of the property.

Comments:

UREA FORMALDEHYDE INSULATION (UFFI)

All or part of the improvements were constructed before 1982 when urea foam insulation was a common building material. The only way to be certain that theproperty is free of urea formaldehyde is to have it inspected by a qualified urea formaldehyde inspector.

The improvements were constructed after 1982. No apparent urea formaldehyde materials were observed (except as stated in Comments, below).

The opinion of value is based on the assumption that there is no significant UFFI insulation or other urea formaldehyde material on the property.

Comments:

LEAD BASED PAINT

All or part of the improvements were constructed before 1978 when lead based paint was a common building material. There is no apparent visible or knowndocumented evidence of peeling or flaking Lead Paint on the floors, walls or ceilings (except as stated in Comments, below). The only way to be certain thatthe property is free of surface or subsurface lead based paint is to have it inspected by a qualified inspector.

The improvements were constructed after 1978. No apparent Lead Paint was observed (except as stated in Comments, below).

The opinion of value is based on the assumption that there is no flaking or peeling Lead Paint on the property.

Comments:

AIR POLLUTION

There are no apparent signs of air pollution at the time of the appraiser's viewing of the subject property, nor were any reported (except as reported in Comments,below). The only way to be certain that the air is free of pollution is to have it tested.

The opinion of value is based on the assumption that the property is free of air pollution.

Comments:

WETLANDS/FLOOD PLAINS

The site does not contain any apparent wetlands/flood plains (except as stated in Comments, below). The only way to be certain that the site is free of wetlands/flood plains is to have it inspected by a qualified environmental professional.

The opinion of value is based on the assumption that there are no Wetlands/Flood Plains on the property (except as stated in Comments, below).

Comments:

MISCELLANEOUS ENVIRONMENTAL HAZARDS

There are no other apparent hazardous substances and/or detrimental environmental conditions on or in the area of the site except as indicated below:

Excess noise

Radiation and/or electromagnetic radiation

Light pollution

Waste heat

Acid mine drainage

Agricultural pollution

Geological hazards

Nearby hazardous property

Infectious medical wastes

Pesticides

Other (chemical storage, drums, pipelines, etc.)

The opinion of value is based on the assumption that, except as reported above, there are no other environmental hazards that would negatively affect the value ofthe subject property.

When any of the environmental assumptions made in this addendum are not correct, the opinion of value in this appraisal may be affected.

03/10

FHA/VA Case No.

Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE

Location MapThe Central Presbyterian Church23 S Main StChambersburg Franklin PA 17201The Central Presbyterian Church

Borrower

Lender/Client

Property Address


FHA/VA Case No.

Form MAP.FLOOD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE

Flood MapThe Central Presbyterian Church23 S Main StChambersburg Franklin PA 17201The Central Presbyterian Church

Borrower

Lender/Client

Property Address


FHA/VA Case No.

Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE

Location MapThe Central Presbyterian Church23 S Main StChambersburg Franklin PA 17201The Central Presbyterian Church

Borrower

Lender/Client

Property Address


FHA/VA Case No.

Legal Description - Page 1

Form SCNLGL - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE

FHA/VA Case No.

Legal Description - Page 2

Form SCNLGL - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE

wholeness center appraisal.pdf

Documents

summary appraisal report

appraisal purpose

appraisal scope

appraisal specifics

complete appraisal

estimate of value

summary report

market value