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HomeMy WebLinkAboutParrish Rd PUD Impact Study 6-5-24 June 5, 2024 Ms. Laura Haywood Forestar 8041 Arco Corporate Drive, #110 Raleigh, NC 27617 Ms. Haywood, I have considered the likely impact of the proposed Parrish Road PUD in Harnett County, North Carolina. The scope of this assignment is to address the whether or not the proposed development will substantially injure the value of adjoining property, and whether or not the proposed development will be in harmony with the scale, bulk, coverage, density, and character of the neighborhood in which it is located. To this end I have reviewed the site plan and considered the potential impacts on adjoining properties. I have not been asked to assign any value to any specific property. This letter is a limited report of a real property appraisal consulting assignment. My client is Forestar represented to me by Ms. Laura Haywood. The intended use is to assist in the permit application. The effective date of this consultation is June 5, 2024. Proposed Use Description The subject property is owned by Senter-Coffield LLC and comprised of 100.530 acres. The property is zoned RA-30 by Harnett County and is proposed to be developed with a mix of 123 single family lots with minimum dimensions of 60’x150’, 58 single family lots with minimum dimensions of 75’x120’, and 167 townhome lots. A total of 348 residential units on 100.53 acres for an effective density of 3.46 units per acre. The project includes 34.383 acres of open space and the amenity package will include a dog park, pool with clubhouse, and a commercial outlot at the north end of Parrish Road near Chalybeate Springs Road. The map on the following page shows the subject property. Richard C. Kirkland, Jr., MAI 9408 Northfield Court Raleigh, North Carolina 27603 Phone (919) 414-8142 rkirkland2@gmail.com www.kirklandappraisals.com Kirkland Appraisals, LLC Ms. Laura Haywood June 5, 2024 2 The adjoining uses are primarily residential single-family homes on lots to the south on Parrish Road as well as agricultural land surrounding this use on the east and west sides and Drakes Landing Shooting and Hunting club to the north across Chalybeate Springs Road. The land to the east and west is owned by William Daniel Andrews, the same owner of the Drakes Landing property. The three adjoining parcels to the south include: 594 Parrish Road owned by Dawn Michelle German with a single-family home on 0.70 acres 595 Parrish Road owned by Dwight D. Parrish et ux with a single-family home on 1.42 acres 615 Parrish Road owned by Walter Dean Parrish with a single-family home on 27.37 acres There are seven other single-family homes further south on or off Parrish Road, which is a dead end road. The proposed project has the single-family homes located primarily on the east side of Parrish Road and the townhome units will be located on the southwest side. The commercial lot is to be located on the west side of Parrish Road near the north end of the tract at the pool and amenity area. The closest townhome to an adjoining residential use is 435 feet north of 594 Parrish Road. The second closest distance to an adjoining residential use is 610 feet north of 595 Parrish Road. Ms. Laura Haywood June 5, 2024 3 The single-family lots on the east side of Parrish Road will include four lots that adjoin 595 Parrish Road. There is HOA space separating these two uses that is 50 feet wide and then the home sites would be further separated by the yards of the two uses. The exact location of a home on that lot has not been determined, but based on a likely location the home would be 150 feet from the nearest point of the home located at 595 Parrish Road. Ms. Laura Haywood June 5, 2024 4 Other Nearby Uses The subject property is located between Angier and US Highway 401 at Chalybeate Springs Road. There are numerous developments on either end of this range with subdivision developments on either side. The subdivision near the south end of Parrish Road is Victoria Hills which has single family homes on 0.5 acres to 2 acres each. To the southeast there is Kinnis Creek and Neills Creek Farms subdivisions with a mix of lots from 1 acre to some larger ones up to 20 acres. Also to the east along Chalybeate Springs Road is Cross Link Place with homes on 0.5 to 6 acres, with most being on that 0.5-acre size. There are a number of other subdivisions located along Atkins Road to the northeast such as Southern Acres with homes on 0.30 acre lots up to 1 acre lots. Neill’s Point is a new subdivision past Atkins Road on Chalybeate Springs Road with lots averaging 0.16 acres each. The first three phases of this development included 82 lots on 23.6776 acres, or 3.46 units per acre. This is the same density proposed at the subject property. The trend shown by Neill’s Point and the proposal at the subject property is an ongoing trend for smaller lots in an attempt to make homes more affordable than traditional building patterns. Another nearby development shown in the map below is just northwest of the solar farm outlined in green. This development is proposed to include a total of 393 single family lots and 80 townhomes for 2.27 units per acre. Ongoing development of the vacant land between these two centers is anticipated. Ms. Laura Haywood June 5, 2024 5 Market Data - Townhomes I have considered the proximity of the nearby homes to multifamily uses focusing on townhomes. Brookmere Townhomes Brookmere Townhomes are located off NC 55 West in Angier with apartments to the north and single-family homes to the south in Cambridge Subdivision. The MLS shows 22 homes having sold in Cambridge Subdivision since 2020 with homes. The home at 117 Cambridge Drive sold on December 9, 2021 for $260,000 or $198.32 per square foot. This home is 174 feet from the nearest townhome, but located near a future townhome site that would be only 114 feet away. This is well above the average and median rates for the neighborhood and shows no impact due to proximity and adjacency to the townhome. I also looked at 21 Cambridge Drive that sold on December 22, 2022 for $300,000, or $208.33 per square foot. This home is 121 feet from the nearest townhome and sold near the very top Ms. Laura Haywood June 5, 2024 6 end of prices in the neighborhood showing no impact due to adjacency to the townhome. This measurement is shown below. Ms. Laura Haywood June 5, 2024 7 Sterling Subdivision This subdivision includes a mix of townhomes and single-family homes with the closest home being 45 feet away with no expectation of impact on property value given they were developed together. The most recent sale identified is 224 Sterling Way that sold on August 30, 2021 for $240,000, or $182.51 per square foot. This home is 58 feet from the nearest townhome. I found 7 total sales in this development since 202 and this sale at $240,000 is near the high end of the range, above the average and at the high end of the range on a per square foot as well. No sign of an impact from the townhomes is observed. Ms. Laura Haywood June 5, 2024 8 The Landing at Arnold Park The Landing at Arnold Park is located in Fuquay Varina near Harnett County off Wagstaff Road. This mix of townhomes and single family includes townhomes being located directly across from single family homes on Citrus Petal Drive with homes as close as 80 feet. These are all part of the same development with no expectation of impact on property value. Ms. Laura Haywood June 5, 2024 9 Lake Park Luxury Townhomes The townhomes at Lake Park Luxury Townhomes were built in 1996 and are located off E. Williams Street and adjoin the park. The single-family homes to the north are all approximately 80 feet north of the townhome units. The townhomes have recent sales prices ranging from $210,000 to $235,000. Three of the homes to the north have sold in recent years. 384 E Smithfield Street sold on June 1, 2020 for $155,000 for this 1,173 s.f. ranch on 0.23 acres. 398 E Smithfield Street sold on November 5, 2021 for $208,000 for a 1,310 s.f. home on 0.23 acres. 408 E Smithfield Street sold on May 16, 2022 for $285,000 for this 1,248 s.f. home on 0.23 acres built in 1993. This sale had a $4,000 financing concession for an effective purchase price of $281,000. This property sold for over $20,000 above the asking price of $259,900. This was a recently updated property with new appliances and roof with a fenced backyard and storage building. Clearly there is strong appreciation being shown for these homes over time. Focusing on the most recent sale in 2022 I have considered similar nearby home prices that are not adjoining townhomes or the park. The purchase price at $281,000 for 1,248 s.f. works out to $225.16 per s.f. I have compared this to 587 Circle Drive that is a newly built single-family dwelling that sold on December 29, 2022 for $323,500 with $14,998 in financing concessions which works out to an effective purchase price of $308,502. This was 1,492 s.f. built in 2022 on 0.26 acres. Assuming the recent updates at 408 E Smithfield balance out the difference in age with the inclusion of the fencing and the storage building, this works out to $206.77 per s.f. which is less than the price paid for 408 E Smithfield Street, which strongly supports a finding of no impact on value due to the adjoining townhomes. Ms. Laura Haywood June 5, 2024 10 Lionsgate Townhomes Lionsgate Townhomes are located in Clayton and adjoin single family housing to the south within the Lionsgate subdivision. These units were built in 2018 and are all owned by Lionsgate Townhomes, LLC. The single-family homes within Lionsgate subdivision adjoining the townhomes are as close as 50 feet from the adjoining townhomes. One of the closer homes in Lionsgate Subdivision, 251 Fieldspar Lane, sold on November 30, 2020 for $230,000 for a 1,477 square foot 1-story dwelling built in 2016 with a 2-car garage. I have compared this to 85 E Lumber Court that sold on October 13, 2020 for $218,000 for a 1,477 square foot 1-story dwelling built in 2018 with a 2-car garage. This home is similar and the same floorplan and is located a block south and within the same subdivision, but not adjoining a townhome. The homes have the same floorplan, year built, and a similar sales time period. The primary difference is that the 85 E Lumber Court sale is on a 0.310-acre lot and the 251 Fieldspar Lane sale is on a 0.11-acre lot. Comparing these two sales I see no basis for any impact due to the adjacent townhome and actually suggests a positive impact given that the home next to the townhomes on a smaller lot sold for more than the identical home on a larger lot. The adjoining townhomes are within 135 feet of the dwelling that sold on Fieldspar Lane. Ms. Laura Haywood June 5, 2024 11 Summerwind Plantation Summerwind Plantation is located in Clayton and adjoin single family housing to the west within the Village at Cleveland Springs and to the north within Trace at Summerwind. These units were built in 2008. The single-family homes within the Village at Cleveland Springs adjoining the townhomes are as close as 70 feet from the adjoining townhomes. The single-family homes within the Trace at Summerwind are as close as 45 feet from the adjoining townhomes. One of the closer homes in the Village at Cleveland Springs, 98 Outwater Ridge Drive, sold on February 19, 2021 for $293,000 for a 2,107 square foot 2-story dwelling built in 2015 with a 2-car garage. I have compared this to 344 Outwater Ridge Drive that sold on June 7, 2021 for $305,000 for a 1,855 square foot 2-story dwelling built in 2019 with a 2-car garage. This home is similar and is located to the north and within the same subdivision, but not adjoining a townhome. I have adjusted the comparable downwards by 2% for market conditions, downwards by 6% for a newer year built and upwards for the difference in s.f. This indicates a value of $305,826 for the comparable sale at 344 Outwater Ridge Drive. The indicated impact for being adjacent to the townhome is negative 4.4% which is an indication of a negative impact for being adjacent to the townhome. However, this is within typical market friction and is an indication of no impact for being adjacent to the townhome. Ms. Laura Haywood June 5, 2024 12 I have compared this to 35 Pine Creek Court that sold on December 30, 2020 for $275,000 for a 2,495 square foot 2-story dwelling built in 2016 with a 2-car garage. This home is similar and is located to the northwest and within the same subdivision, but not adjoining a townhome. I have adjusted the comparable upward by 1% for market conditions, downwards by 2% for a newer year built and downwards for the difference in s.f. This indicates a value of $246,536 for the comparable sale at 35 Pine Creek Court. The indicated impact for being adjacent to the townhome is positive 19% which is an indication of a positive impact for being adjacent to the townhome. I note that the adjoining townhomes are within 77 feet of the dwelling that sold on Outwater Bridge Road. One matched pair shows a mild negative impact, while the other shows a significant positive impact. Ms. Laura Haywood June 5, 2024 13 Summerwind Communities This is another example of the interconnectivity between multifamily and single family uses and how they are common in the market. This includes the Summerwind Apartments, Summerwind Plantation (Townhomes on previous page), Cleveland Springs Townhomes, the Village at Cleveland Springs subdivision and Summerwind Trace subdivision. This is in Clayton and shows compatibility between multifamily and single family uses in the market area. Ms. Laura Haywood June 5, 2024 14 Garden Spot Townhomes Garden Spot Townhomes is located in Clayton and adjoins single family housing to the west within the Stonebrook subdivision and to the east within the Glen Haven subdivision. These units were built in 2001. The single-family homes within the Stonebrook subdivision adjoining the townhomes are as close as 100 feet from the adjoining townhomes. The single- family homes within the Glen Haven subdivision are as close as 150 feet from the adjoining townhomes. One of the closer homes in the Glen Haven subdivision, 105 Mitchell Avenue, sold on February 19, 2019 for $167,000 for a 1,423 square foot 1-story dwelling built in 1997 with a 1-car garage. I have compared this to 205 Hunter Way that sold on June 7, 2019 for $173,000 for a 1,538 square foot 1-story dwelling built in 1998 with a 1-car garage. This home is similar and is located to the east and within the same subdivision, but not adjoining a townhome. I have adjusted the comparable upward by 2% for market conditions, downwards by 2% for a newer year built and downwards for the difference in s.f. This indicates a value of $165,169 for the comparable sale at 205 Hunter Way. The indicated impact for being adjacent to the townhome is negative 1.1% which is within typical market friction and is a basis for a finding of no impact on value. Comparing these two sales I see no basis for any impact due to the adjacent townhome. I note that the adjoining townhomes are within 150 feet of the dwelling that sold on Mitchell Avenue. Ms. Laura Haywood June 5, 2024 15 Capital Creek Apartments Capital Creek Apartments are just east of the Crossings at Heritage apartments that are discussed next and are located directly north of a section of The Homestead at Heritage as shown above. This is a mixed-use development where the developers intentionally co-located these uses with no anticipation of negative impacts. The apartment buildings are 100 feet off the property line of the homes to the south. These three-story apartments were built in 2016 and the single-family homes were developed in the same time frame starting in 2015. These apartments are 3-story apartments adjoining single family housing with only 100 feet between them. First and foremost is the fact that the developer of both the subdivision and the apartment site were one and the same and they chose to locate these two uses in this manner, which shows no expectation of a negative impact with this similar situation. I also considered the most recent home sale adjoining these apartments which was 3425 Mountain Hill Drive that sold on October 6, 2020 for $445,000 for a 3,114 square foot 2-story home built in 2018 with a 2-car garage. I have compared this to 2017 Higley Drive in the same subdivision but not adjoining the apartments. That home sold on June 9, 2020 for $478,000 for a 3,477 square foot, 2-story home built in 2016 with a 2-car garage. Adjusting that sale upward by 1% for growth in the market, upward by 2% for difference in year built, but downward by 10% for the difference in size, I derive an adjusted indication of value for the non-adjoining home of $444,540. This is very similar to the indication of value for the home adjoining the apartments. Ms. Laura Haywood June 5, 2024 16 This matched pair does not support a negative impact for the adjoining 3-story-apartments to the single-family dwelling at 100 feet off the rear property line. This a strong indicator of no impact on adjoining and nearby home values. Ms. Laura Haywood June 5, 2024 17 Crossings at Heritage Apartments Crossings at Heritage Apartments as shown above directly adjoins another section of The Homestead at Heritage subdivision. This is directly west of the Capital Creek Apartments discussed above. This is another mixed-use development where the developers intentionally co-located these uses with no anticipation of negative impacts. The apartment buildings are 50 to 55 feet off the property line of the homes to the south. These one-story apartments were built in 2005 and the single-family homes were not developed until 2015. The most recent home sale adjoining these apartments was 3373 Mountain Hill Drive that sold on August 26, 2020 for $467,000 for a 3,304 square foot 2-story home built in 2017 with a 2-car garage. I have compared this to 3356 Mountain Hill Drive in the same subdivision but not adjoining the apartments. That home sold on June 28, 2020 for $413,000 for a 2,893 square foot, 2-story home with some stone façade, built in 2015 with a 2-car garage. Adjusting that sale upward by 2% for difference in year built and upward by 14% for the difference in size but downward by 4% for the stonework, I derive an adjusted indication of value for the non-adjoining home of $462,560. This is a much closer co-location of single family housing and apartments, which strongly supports a finding of no impact at the subject property. This matched pair does not support a negative impact for the adjoining apartments to the single-family dwelling at 50 feet off the rear property line. Ms. Laura Haywood June 5, 2024 18 Conclusion – Proximity to Townhomes The chart below summarizes the findings where I have compared individual home sales next to townhomes to the larger subdivision. The sales prices show home prices between the Median and High end of the range in all instances identified. The sales price is the high end of the range in one of the four examples at Lake Park in Angier. The second chart below identifies specific paired sales shown on the earlier pages. The paired sales show a range of impacts from -4% to +16%. Excluding the highest and lowest indicators the range is +0% to +9%. The median indicated impact is +1%. Market impacts between +/-5% are within typical market imperfection and does not support any impact at all. For this reason, I consider the set of paired sales to provide strong support for no impact on homes under $470,000 at distances around 80 feet or more. The proposed use is typical for new developments in the area with a mix of housing types. While the density is higher than immediately adjoining development, they are typical and fall within common single family development densities as shown through comparison with Neill’s Point to the east. Similar mixed neighborhoods with townhomes and single-family housing have shown compatibility and harmony between these uses at similar distances as shown in this report. I conclude based on the data presented that the proposed development will not substantially injure the value of adjoining property. The closest townhome to an adjoining home will be 435 feet away. Paired sales supports no impacts for numerous comparables at much closer distances than that with most supporting no impacts starting at or before 100 feet of Harnett County Home Sales Near Townhomes Property Home to TH Sales Median for Median High for High Development Address Distance Price $/SF Neighborhood $/SF Neighborhood $/SF 1 Cambridge 117 Cambridge 114 $260,000 $198.32 $241,000 $166.00 $315,000 $221.00 2 Cambridge 21 Cambridge 121 $300,000 $208.33 $241,000 $166.00 $315,000 $221.00 3 Sterling 224 Sterling 58 $240,000 $182.51 $220,000 $165.00 $270,000 $201.00 4 Lake Park 408 E Smithfield 80 $285,000 $225.16 $208,000 $148.00 $285,000 $225.00 Average 93 $271,250 $203.58 $227,500 $161.25 $296,250 $217.00 Median 97 $272,500 $203.33 $230,500 $165.50 $300,000 $221.00 Homes near THs are between the median and the high end of the range in all examples. Paired Sales of Single Family Homes Near Townhomes/Apartments Property Home to TH Sales Comparable Sales Adj. Sales Development Address Distance Price $/SF Address Price Price $/SF % Diff 1 Lake Park 408 E Smithfield 80 $285,000 $225.16 587 Circle $308,502 $258,049 $206.77 9.46% 2 Lionsgate 251 Fieldspar 135 $230,000 $155.72 85 E Lumber $218,000 $218,000 $147.60 5.22% 3 Summerwind 98 Outwater 77 $293,000 $139.06 344 Outwater $305,000 $305,000 $144.76 -4.10% 4 Summerwind 98 Outwater 77 $293,000 $139.06 35 Pine Crk $275,000 $246,536 $117.01 15.86% 5 Glen Haven 105 Mitchell 150 $167,000 $117.36 205 Hunter $173,000 $165,169 $116.07 1.10% 6 Homestead 3425 Mtn Hill 120 $445,000 $142.90 2017 Higley $478,000 $444,540 $142.76 0.10% 7 Homestead 3374 Mtn Hill 70 $467,000 $141.34 3356 Mtn Hill $413,000 $462,560 $140.00 0.95% Average 101 $311,429 $151.52 $299,979 $144.99 4.08% Median 80 $293,000 $141.34 $258,049 $142.76 1.10% Homes show a positive impact in 2 instances out of 7 and no impact in 5 out of 7 Ms. Laura Haywood June 5, 2024 19 separation. The commercial component is very much separated from the nearby homes and presents no potential impact to those homes or values. If you have any questions please call me any time. Sincerely, Richard C. Kirkland, Jr., MAI State Certified General Appraiser