Bank Appraisal PDF

APPRAISALREPORTOF:
15SouthMainStreet
Chambersburg,PA.17201
PREPAREDFOR:
Attn:PastorBowerman&Trustees
CentralPresbyterianChurch
40LincolnWayWest
Chambersburg,PA17201
Asof:May5,2015
Preparedby:AushermanBros.RealEstate,Inc.
JohnD.Ausherman,SRAPAStateCertifiedGeneralRealEstateAppraiser
DavidJ.Coletta,PAStateCertifiedResidentialRealEstateAppraiser
TABLE OF CONTENTS
TITLE PAGE
TABLE OF CONTENTS
LETTER OF TRANSMITTAL
SUMMARY OF SALIENT FACTS
2
3
5
APPRAISAL SPECIFICS
APPRAISAL SCOPE
LIMITING CONDITIONS & ASSUMPTIONS
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
36
RECONCILIATION AND FINAL ESTIMATE
40
CERTIFICATION STATEMENT
41
ADDENDA
LEGAL DESCRIPTION
TAX MAP
FLOOD MAP
ENVIRONMENTAL ADDENDUM
QUALIFICATIONS OF APPRAISER AND CERTIFICATION
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 & Trustees
Re: 15 S. Main Street

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.
May 11, 2015

Page 2
In my opinion, the value of the subject property, as of May 5, 2015, was as follows:
15 South Main Street $244,000
Respectfully submitted,
Ausherman Bros. Real Estate Inc.
John D. Ausherman
PA State Certified General Real Estate Appraiser
Certification #GA000148L
Summary of Salient Facts

Subject Property: 15 South Main Street
Property Overview: Professional Office/ Bank
Interest Appraised: Fee Simple Interest
Highest and Best Use Commercial
As Improved:
Zoning: CC
Appraisal Effective Date: May 5, 2015
Cost Approach: Not Developed

Sales Comparison $ 244,000
Approach:
Income Approach: $318,000
Reconciled Value: $ 244,000
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.
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 July 26, 2000 for the consideration of
$425,000. This transaction is recorded in Franklin County Deed Book 1538 page 174. 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.
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 The subject has been identified and inspected by the
Inspection: appraiser(s) as follows:
Analysis of Physical All pertinent physical factors were analyzed.
Factors:
Analysis of Economic All pertinent economic factors were analyzed.
Factors:
The Extent of Data The appraiser(s) maintain a current and comprehensive
Research: 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.
The Type and Extent of Cost Approach: This approach is not applicable, nor
Analysis: necessary and has not been developed.
Sales Comparison Approach: This approach
applicable, necessary and has been fully developed.
is
In this case, the income approach has been developed

using data from data provided by the current owner.
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.
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 MasonDixon 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 1530 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
1960 Population
88,172
1970 Population
100,833
1980 Population
113,629
1990 Population
121,082
2000 Population
129,313
2005 Population
137,409
2010 Population
149,618
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
Yr 2010
129,313
Yr 2000
121,082
Yr 1990
Yr 1980
113,629
100,833
Yr 1970
88,172
Yr 1960
75,927
Yr 1950
0
50,000
100,000
# of People
12
150,000
200,000
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.
15
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.-042. According to
the most current deed this parcel contains 0.26 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/ No adverse encroachments were observed on or around the subject
Encroachments: 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: Professional Office/ Bank
Description: The subject property consists of a brick exterior building, originally
built in 1864. The overall current condition of the property is
considered average/ fair. The effective age of the property is
considered as 30 years old. Building contains approximately 9,811
square feet. There are double pane windows with storms, downspouting and gutters to direct rainwater away from the foundation.
There is a full basement. The front section of the building is currently
utilized as a full service banking facility. There is an entrance lobby,
reception area, several small offices, teller area, and two vaults. There
are plaster walls. Carpet and marble floors. The rear of the first floor
has an employee lounge, additional offices, an office suite,
conference room and two half baths. The rear area appears dated and
does not appear to be utilized at this time.
There is a basement has concrete, brick and stone walls making up
the foundation. There are concrete and tie floors in the basement.
There is ample storage in the basement area, however there is
evidence of dampness and water infiltration. There are restrooms in
disrepair. The HVAC is a gas steam heat boiler and there is central air
conditioning to this building.
The second floor has a large conference room, as well as several
offices, two of them quite large. There are plaster walls, carpet and
tile flooring and again, several examples of deferred maintenance.
Reference can be made to the accompanying photographic addenda.
The second floor is dated.
Overall the building is considered to be of average quality and in
average to fair condition as deferred maintenance is evident
throughout.
.
Foundation/Basement: The subject property building is constructed on a stone, brick and
concrete 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: Previously noted.
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Electrical Systems: The subject property has adequate electrical systems.
SITE IMPROVEMENTS
Parking: None
Fencing: There is no perimeter fencing.
Drainage: Appears adequate
Landscaping: None
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 use as a Professional Office
building.
.
Functional Utility: Average
Design & Appeal: Average
Highest and Best Use: Professional Offices
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 Professional Office building.
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Subject Photographs
Subject
Building Front
21
Subject Rear
22
Assessment & Taxes

Tax Parcel ID#
Tax Year:
Assessed Value Land
Assessed Value Improvements:
Total Assessed Value:
Tax Rate:
Real Estate Taxes:
Equalization Ratio:
Implied Market Value
05-1C57.-042
2015
49,550
129,730
179,280
0.14632
$26,232.25
6.90
$1,237,032
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: $1,237,032.
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.
The Appraisal of Real Estate 11th Edition, Page 297, Appraisal Institute
24
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
from the previous report.
25
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.
.
26
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.
27
COMPARABLE SALE NO. 1

GRANTOR: Citizens National Bank
GRANTEE: Life Center Church
LOCATION: 35-41 North Carlisle Street, Greencastle Borough, Franklin County
Greencastle, PA 17225
PARCEL NO.: 08-2B21-084, 08-2B21-085, 08-2B21-086, & 08-2B21-096
DATE: January 31, 2013
DEED REFERENCE: Franklin County Deed Instrument 2013-04133
CONSIDERATION: $450,000
SITE SIZE: 1.17 acres
DESCRIPTION: This property was previously used as a financial operations building. The
property was purchased to be used as a religious place of worship. The building has multiple
private offices and conference rooms. The building is of masonry construction with a brick
exterior. The building was constructed 1956 and an addition was added in 1966. There is 16,022
square feet of building area. At the time of sale approximately 3,100 square feet of the building
was being leased for an attorneys office. The property has three carports and over half of an acre
of paving. The building has unfinished areas on the second floor above the old office area. Sold
for $28.09 per square foot.
28

GRANTOR: Susquehanna Bank
GRANTEE:
Hagers5, LLC
LOCATION: 55-59 W. Washington Street,

Hagerstown, MD 21740
PARCEL NO.: 030600002248
DATE: 11/14/2012
DEED REFERENCE: Washington County Deed Book 4404 page 455
SITE SIZE: 19,166 sq ft.
DESCRIPTION: This property was previously used as a branch bank. The building has several
private offices and conference rooms. The building was constructed ~1967 and contains
approximately 11,456 sq ft. Sold for $24.87 per square foot.
29

GRANTOR: Caledonia Gettysburg.
GRANTEE: Lin Son Wang & Yu Ying
LOCATION: 44 S. Franklin St
Gettysburg, Adams County, PA
PARCEL NO.: 01-16010-0012A--00
DATE: 02/21/2013
SITE SIZE: 13,939 sf
DESCRIPTION: Built in ~1972, this building has 6,664 sf GBA, masonry exterior. This office
building is noted to have two floors. Second floor was vacant at time of sale. Average location.
Sold for $42.02 per square foot land inclusive.
30
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.
31
Element
Address
Subject
19-23 S. Main .
Chambersburg
Comp #1
35-41 N.Carlisle
Greencastle
Comp #2
55-59 W.
Washington
Hagerstown
$285,000
Comp #3
44 S. Franklin
Gettysburg
Sales Price
$450,000
Price/Sq Ft
$28.09
$ 24.87
$42.02
Deed Transfer
Deed Transfer
Deed Transfer
Financing
Conventional
Conventional
Conventional
Sale Date
01/31/2013
11/14/2012
02/21/2013
Source
Inspection
$280,000
Location
Average
Average
Average
Average
Site Size
0.25 ac.
Const. Quality
Average
1.17 ac
-36,800
Average
0.44 acres
-7,600
Average
0.32 ac.
0
Average
Building Size
9,811 sq ft
16,022 sq ft
-124,220
11,456 sq ft
-33,480
6,664 sq ft
+62,940
Condition
Avg./ Fair
Avg./ Fair
Avg./ Fair
Other
Basement
Basement
Basement
Good
-50,000
Basement
-161,020
-41,080
+12,940
$288,980
$243,920
$292,940
Net Adjustment
Indicated Value
Indicated Value: $243,920

Rounded to: $244,000
32
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 $20 per square
foot basis.
Condition
A condition adjustment was required for comparable sale #3 as it is noted to have been in good
condition at the time of the sale.
Other
No adjustment was required..
33
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 $244,000, as of May 5, 2015 ,
subject to the Limiting Conditions and Assumptions of this appraisal. Most weight has been given
to sales #1 & #2 as they are both former bank buildings. Appraiser also noted the sale of the former
Grand Piano building located at 20 West Washington Street, Hagerstown, MD. This building had
several office suites at the time of the sale and was in similar condition. This 34,220 square foot
building sold for $600,000 or $17.53 per square foot, November 13, 2013.
34
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.
35
PROJECTED INCOME STATEMENT

Annual Gross Income
$62,074
Less 5% vacancy and collection loss
- 3,104
Effective Gross Income Per Year
$58,970
Less Estimated Expenses:

Taxes
Management Fee
$ 26,232
$ 6,207
Total Expenses and Replacement Reserves:
$ 32,439
Net Operating Income:
$26,531
*No replacement reserves were calculated as the appraiser was unable to view the entirety of the
property. The income figures were obtained from the church offices, expenses were noted to be
taken care of by the tenant..
36
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
Mortgage
.80
Rate
(Constant)
X
.079195
Weighted
Rate
=
Equity
.20
X
.0100
=
Overall Rate
Projected Net Income of $26,531 capitalized at .083356 = $318,285.42
Rounded to: $ 318,000.00
.063356
.020000
.083356
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.
37
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 . Not developed
Sales Comparison Approach ... $244,000
Income Approach.. $318,000
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. This approach is developed based on income and expense information
provided by the client.
.
Value Conclusion
There based on the data and analyses developed in this appraisal, we have reconciled to a value
estimate of $244,000 as of May 5, 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.
38
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
39
Serving all of Franklin County since 1935
Ausherman Bros.
Real Estate Inc.
Chambersburg, PA. 17201-1641
717-264-6715 FAX 717-264-4973
Federal Tax #25-1552788
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
F & M Trust Co.
Patriot Federal Credit Union
Adams Co. Natl Bank
Sovereign Bank
First Home Mortgage
FHA Certified Fee Appraiser
AgChoice Farm Credit
Susquehanna Bank
1st American Equity
First Community Bank of Mercersburg
United States Dept. of Agriculture, Rural Dev.
Veterans Administration (Panel Member)
(Since 1986)
- Community Bank of Orbisonia
EARNED DESIGNATIONS
ASA - Accredited Senior Appraiser Designation 1989
SRA - Senior Residential Appraiser Designation 1994
40
Metlife Home Loans

Chase Manhattan Mortgage
Orrstown Bank
Flagstar Approved Appraiser
ERA Home Loans
Well Fargo Mortgage Co.
American Home Bank
PCV / Murcor
Bank of America
Hagerstown Trust Co.
BB&T Bank
USAA
iMortgage Services
Huntington Natl Bank
Northwest Savings Bank
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
41
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
42
Serving all of Franklin County since 1935
Ausherman Bros.
Real Estate Inc.
Chambersburg, PA. 17201-1641
717-264-6715 FAX 717-264-4973
Federal Tax #25-1552788
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
43
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
44
Narrative Appraisal Report Writing, 2000

Sales Comparison Approach, 1999
Uniform Standards Professional Appraisal Practice & Procedure, 1999
45
Borrower
Property Address
City
Lender/Client
File No.
The Central Presbyterian Church

15 S Main St
Chambersburg
County
State
Franklin
PA
15SMAIN
Zip Code
17201-2201
APPRAISAL AND REPORT IDENTIFICATION

This Report is
one of the following types:
Appraisal Report
(A
written
report
prepared
under
Standards
Rule
2-2(a) , pursuant to the Scope of Work, as disclosed elsewhere in this report.)
Restricted
Appraisal Report
(A written report prepared under Standards Rule

2-2(b) , 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.)
Comments on Standards Rule 2-3

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, 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).
Reasonable Exposure Time
(USPAP defines Exposure Time as 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.)
My Opinion of Reasonable Exposure Time for the subject property at the market value stated in this report is:
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 Identification

Note 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 subject
property 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.
APPRAISER:
SUPERVISORY or CO-APPRAISER (if applicable):
Signature:
Signature:
Name:
John D. Ausherman, SRA

PA Certified Residential Real Estate Appraiser
State Certification #:
GA-000148
Name:
or State License #:
or State License #:
State:
PA
Expiration Date of Certification or License:
Date of Signature and Report:
Effective Date of Appraisal:
Inspection of Subject:
Date of Inspection (if applicable):
State Certification #:
06/30/2015
Interior and Exterior
05/05/2014
Expiration Date of Certification or License:
Date of Signature:
05/15/2015
05/05/2014
None
State:
GA000148L
Exterior-Only
Inspection of Subject:
None
Date of Inspection (if applicable):
Form ID14E - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Interior and Exterior
Exterior-Only
ENVIRONMENTAL ADDENDUM
APPARENT * HAZARDOUS SUBSTANCES AND/OR DETRIMENTAL ENVIRONMENTAL CONDITIONS
File #
Borrower

15 S Main St
Chambersburg
Property Address
City
Lender/Client
* Apparent
County
State
Franklin
15SMAIN
Zip Code
PA
17201-2201
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
on
the
safety
or
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
property.
might
It
is
be
unaware
possible
that
of
existing
tests
and
hazardous
substances
inspections
made
and/or
by
detrimental
qualified
environmental
environmental
conditions
inspector
which
would
may
have
reveal
the
existence
negative
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 meets
published 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 adequate
drinking 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 does
not 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 good
good 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 alternate
treatment 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 and
testing by a qualified environmental inspector would reveal existing and/or potential hazardous substances and/or detrimental environmental conditions on or around
the 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 of
friable 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 (except
as 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 extraction
or phosphate processing.
The opinion of value is based on the assumption that the Radon level is at or below EPA recommended levels.
Comments:
Form 69F2 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
effect
of
hazardous
materials
value
and/or
of
the
detrimental
USTs (UNDERGROUND STORAGE TANKS)

There is no apparent
likely have had USTs.
visible or documented evidence known to the appraiser of any USTs on the property nor any known historical use of the property that would
There are no apparent petroleum storage and/or delivery facilities (including gasoline stations or chemical manufacturing plants) located on adjacent properties (except
as 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 to
determine 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 were
deactivated 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 are
free 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 Site
search 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 the
value 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 the
property is free of urea formaldehyde is to have it inspected by a qualified urea formaldehyde inspector.
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
documented 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 that
the property is free of surface or subsurface lead based paint is to have it inspected by a qualified inspector.
apparent
apparent
visible or known
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 of
the 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
Form 69F2 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Subject Photo Page

Borrower
Property Address
City
Lender/Client

15 S Main St
Chambersburg
County
Franklin
State
PA
Zip Code
17201-2201
Subject Front
Sales Price
Gross Living Area
Total Rooms
Total Bedrooms
Total Bathrooms
Location
View
Site
Quality
Age
N/A
Subject Rear
Subject Street
Form PICPIX.SR - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Photograph Addendum
Borrower
Property Address
City
Lender/Client

15 S Main St
Chambersburg
County
Franklin
State
PA
Zip Code
17201-2201
Interior
Interior
Interior
Interior
Interior
deferred maintenance
Form PICSIX2 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Photograph Addendum
Borrower
Property Address
City
Lender/Client

15 S Main St
Chambersburg
County
Franklin
State
PA
Zip Code
17201-2201
Interior
Interior
Photograph Addendum
Borrower
Property Address
City
Lender/Client

15 S Main St
Chambersburg
County
Franklin
State
PA
Zip Code
17201-2201
Interior
Interior
Photograph Addendum
Borrower
Property Address
City
Lender/Client

15 S Main St
Chambersburg
County
Franklin
State
PA
Interior
Interior
Interior
Interior
Zip Code
17201-2201
Photograph Addendum
Borrower
Property Address
City
Lender/Client

15 S Main St
Chambersburg
County
Franklin
State
PA
Zip Code
17201-2201
Interior
Interior
Interior
Photograph Addendum
Borrower
Property Address
City
Lender/Client

15 S Main St
Chambersburg
County
Franklin
State
PA
Zip Code
17201-2201
Photograph Addendum
Borrower
Property Address
City
Lender/Client

15 S Main St
Chambersburg
County
Franklin
State
PA
Zip Code
17201-2201
Location Map
Borrower
Property Address
City
Lender/Client

15 S Main St
Chambersburg
County
Franklin
State
Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
PA
Zip Code
17201-2201
Location Map
Borrower
Property Address
City
Lender/Client

15 S Main St
Chambersburg
County
Franklin
State
Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
PA
Zip Code
17201-2201
Flood Map
Borrower
Property Address
City
Lender/Client

15 S Main St
Chambersburg
County
Franklin
State
Form MAP.FLOOD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
PA
Zip Code
17201-2201
Legal Description - Page 1
Form SCNLGL - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Legal Description - Page 2
Form SCNLGL - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE

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APPRAISALREPORTOF:

LIMITING CONDITIONS & ASSUMPTIONS

ASSESSMENT AND ZONING

HIGHEST AND BEST USE

COST APPROACH TO VALUE

SALES APPROACH TO VALUE

INCOME APPROACH TO VALUE

RECONCILIATION AND FINAL ESTIMATE

Ausherman Bros. Real Estate Inc.

May 11, 2015

Central Presbyterian Church

Re: 15 S. Main Street

To whom it may concern:

May 11, 2015

15 South Main Street $244,000

Summary of Salient Facts

Cost Approach: Not Developed

THIS IS A SUMMARY APPRAISAL REPORT.

Market Value Definition

Five-Year Sale History

Current Listing/Pending Contracts

1 Title XI of FIRREA, 1989.

the degree to which the property is inspected or identified;

In this case, the income approach has been developed

Limiting Conditions and Assumptions

Data extracted from Herald Mail, June 6, 2011.

Electrical Systems: The subject property has adequate electrical systems.

Assessment & Taxes

Highest and Best Use

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

Highest and Best Use As Improved

The Cost Approach

This appraisal includes the following:

Sales Comparison Approach

COMPARABLE SALE NO. 1

COMPARABLE SALE NO. 2

LOCATION: 55-59 W. Washington Street,

COMPARABLE SALE NO. 3

Economic Trends (time)

Indicated Value: $243,920

Sales Comparison Approach Conclusion

INCOME APPROACH TO VALUE

PROJECTED INCOME STATEMENT

Less 5% vacancy and collection loss

Effective Gross Income Per Year

Less Estimated Expenses:

Total Expenses and Replacement Reserves:

Net Operating Income:

COMMENTS ON INCOME APPROACH

Sales Comparison Approach

John D. Ausherman, SRA

David J. Coletta, State Certified Residential Appraiser

Serving all of Franklin County since 1935

QUALIFICATIONS OF JOHN D. AUSHERMAN

First Mariner Mortgage Co.

Metlife Home Loans

Loss Prevention Seminar, September 1998

Serving all of Franklin County since 1935

Qualifications of David J. Coletta

Educational Courses (Most recent courses listed first)

Narrative Appraisal Report Writing, 2000

The Central Presbyterian Church