SUMMARY MARKET ANALYSIS · PDF fileSUMMARY MARKET ANALYSIS Lowell High School Site Downtown Lowell, MA Prepared For: Craig Thomas, Chief Design Planner

SUMMARY MARKET ANALYSIS

Lowell High School Site Downtown Lowell, MA

Prepared For:

Craig Thomas, Chief Design Planner Department of Planning and Development

50 Arcand Drive Lowell, MA 01852

Date of Valuation:

December 2015

December 22, 2015

Craig Thomas, Chief Design Planner Department of Planning and Development 50 Arcand Drive Lowell, MA 01852 RE: MARKET ANALYSIS ‐ Lowell High School Site, Downtown Lowell, MA 01852 Dear Mr. Thomas,

I respectfully submit herewith a summary market analysis for the Lowell High School site. This report puts forth my analysis of the relevant site characteristics and the market factors that influence development of the parcel.

I visited the exterior of the property on November 16, 2015. I did not perform an interior

inspection and do not have information on the condition of the buildings. The conclusions contained in this report are subject to the standard general assumptions

and the standard certification that are in conformance to the Uniform Standards of Professional Appraisal Practice.

The attached report has been completed in conformance to the Uniform Standards of

Professional Appraisal Practice (USPAP) guidelines.

Respectfully submitted, RP REALTY ADVISORS

Rose M. Perrizo Rose M. Perrizo, MAI Mass. Certified General Appraiser #1937 Certified through October 15, 2017

M a r k e t A n a l y s i s – L o w e l l H i g h S c h o o l

R P R e a l t y A d v i s o r s P a g e 1

TABLE OF CONTENTS

EXECUTIVE SUMMARY ......................................................................................................................... 2

AERIAL PHOTOGRAPH OF LOWELL HIGH SCHOOL ................................................................................ 3

SITE PLAN OF LOWELL HIGH SCHOOL ................................................................................................... 4

DESCRIPTION OF ASSIGNMENT ............................................................................................................ 5

IDENTIFICATION OF THE TYPE OF STUDY ................................................................................................................... 5 SCOPE OF ASSIGNMENT ......................................................................................................................................... 5 PURPOSE AND FUNCTION OF REPORT ...................................................................................................................... 6 COMPETENCY STATEMENT ..................................................................................................................................... 6

PROPERTY DATA .................................................................................................................................. 6

PROPERTY DESCRIPTION ........................................................................................................................................ 6 DOWNTOWN LOWELL OVERVIEW ............................................................................................................................ 9

MARKET AREA ANALYSIS .................................................................................................................... 15

DEMOGRAPHIC OVERVIEW ................................................................................................................................... 15 ECONOMIC OVERVIEW .......................................................................................................................................... 17 AVAILABLE DOWNTOWN LOWELL DEVELOPMENT SITES ........................................................................................... 18 OFFICE MARKET OVERVIEW ................................................................................................................................. 21 LOWELL RETAIL MARKET OVERVIEW ..................................................................................................................... 27 LOWELL RESIDENTIAL MARKET OVERVIEW ............................................................................................................. 33

HIGHEST AND BEST USE ..................................................................................................................... 40

ADDENDA

GENERAL ASSUMPTIONS AND LIMITING CONDITIONS CERTIFICATION

QUALIFICATIONS OF THE APPRAISER



EXECUTIVE SUMMARY Site Identification Lowell High School, 50 Father Morrissette

Boulevard, Lowell, MA 01852 Location/Access The property is located on the northern edge of the

core Downtown area, three blocks from the Merrimack River. Access to the regional highway system is via 1.2 miles of local streets (Arcand Drive, Thornton Street and Dutton Street) to the Lowell Connector which leads to Route 3 and Interstate 495, the region’s outer beltway.

Property Description The subject property comprises three non‐

contiguous sites and has frontage on Arcand Drive, Father Morrissette Boulevard, French Street, John Street, Paige Street, and Kirk Street.

The buildings were built in phases over the previous 100 years. Total site area is 285,043 square feet or 6.54 acres. The existing improvements total 794,378 square feet. The buildable potential of the site, based on the 4.0 FAR allowed under current zoning is 1,140,172 square feet.

Ownership City of Lowell – School Department Zoning DMU – Downtown Mixed Use Highest and Best Use There is a surplus of development‐ready sites in

Downtown and no market support for redevelopment of the subject site in the near future. Highest and best use is continued use of the site.



AERIAL PHOTOGRAPH OF LOWELL HIGH SCHOOL



SITE PLAN OF LOWELL HIGH SCHOOL



DESCRIPTION OF ASSIGNMENT

Identification of the Type of Study Market analysis is defined as “a process for examining the demand for and supply of a

property type and the geographic market area for that property type .”1

There are numerous types of market studies ranging from the very general to site

specific. Based on the terms of the assignment, this is a summary market analysis that will

address economic conditions in Lowell’s core Downtown market, highlighting supply and

demand characteristics for likely reuses of the Lowell High School site.

Scope of Assignment

The term scope of the assignment means the extent of the process undertaken in

collecting, confirming, and reporting data in the appraisal report. I visited the exterior of the

subject property; investigated regional and local economic and demographic trends; reviewed

relevant market‐specific data as was found to be available; identified comparable properties;

and conducted interviews and independent market research. Data was collected from:

City of Lowell Craig Thomas, Chief Design Planner, Department of Planning and Development Allison Lamey, Economic Development Director, Department of Planning and Development Maria Dickinson, Economic Development Officer, Department of Planning and Development City of Lowell Assessor’s Office Market Sources Adam Baacke, Director of Campus Planning and Development, UMass Lowell President James C. Mabry, Middlesex Community College Fred Faust, President, The Edge Group, Inc. Mark Reardon, Executive Vice President, CBRE/New England Alex Plaisted, Senior Associate, CBRE/ New England Joanne Souza, Realtor, Heritage Properties Dennis Page, Realtor, RE/MAX Partners Tim Bulman, at District Real Estate Advisors Fran Sagendorf at Taupeir Real Estate Inc.,

1 Dictionary of Real Estate Appraisal, Fifth Edition, 2010, Appraisal Institute



This study is prepared in accordance with the Uniform Standards of Professional

Appraisal Practice (USPAP) and the Appraisal Institute. Readers are encouraged to note the

General Assumptions and Limiting Conditions described herein.

Purpose and Function of Report

The purpose of this study is to evaluate the market support for potential reuses of the

Lowell High School site in the event that the high school is rebuilt outside of the Downtown. The

study has been prepared for use by the City of Lowell to assist in decision making for the

property.

Competency Statement

Rose M. Perrizo, MAI is competent to perform the appraisal assignment and is

experienced in the valuation of all types of commercial property. I am currently certified under

the continuing educational program of the Appraisal Institute and licensed by the

Commonwealth of Massachusetts as a Certified General Real Property Appraiser. Qualifications

are included in the Addenda.

PROPERTY DATA

This section of the appraisal report summarizes pertinent information concerning the

immediate neighborhood, property description, and applicable zoning regulations.

Property Description

The subject property comprises three non‐contiguous sites in Downtown Lowell. The

sites are developed with Lowell High School buildings that were built in phases over the previous

100 years. Lowell High School has over 3,000 students.

According to data from the City of Lowell Assessor’s Office, total site area is 285,043

square feet or 6.54 acres. The existing improvements total 794,378 square feet. The buildable

potential of the site, based on the 4.0 FAR allowed under current zoning is 1,140,172 square feet.



The property is summarized in the following table.

Location/Access ‐ The property is located on the northern edge of the core Downtown

area, three blocks from the Merrimack River. Access to the regional highway system is via 1.2

miles of local streets (Arcand Drive, Thornton Street and Dutton Street) to the Lowell Connector

which leads to Route 3 and Interstate 495.

The Lowell MBTA station at the Gallagher Transportation Center provides commuter rail

service to Boston. It is located 1.2 miles from Lowell High School at 101 Thorndike Street.

Street Frontage – The property has frontage on Arcand Drive, Father Morrissette

Boulevard, French Street, John Street, Paige Street, and Kirk Street.

A branch of the Merrimack Canal and Lucy Larcom Park separates the 50 Farther

Morrissette Boulevard and 38 Kirk Street school buildings.

Improvements – I visited the exterior of the property on November 16, 2015. I did not

perform an interior inspection and do not have information on the condition of the buildings.

38 Kirk Street ‐ I was informed that this is the original building. It is an attractive three and

one‐half story masonry building reportedly built in the 1920’s and in fair condition. It occupies the

Address Land (SF) GBA (SF) Buildable GBA * Comments

38 Kirk Street 100,627 386,936 402,508 Attractive 3 1/2 story

masonry. Built 1920s. Fair

condition.

50 Fr. Morrissette Blvd. 143,248 281,099 572,992 Brick. Two buildings built

1970/80s. Poor condition.

68 John Street 16,737 78,605 66,948 Freshman Academy

55 French Street 17,759 46,410 71,036 Freshman Academy

35 French Street 6,672 3,328 26,688 Freshman Academy

285,043 796,378 1,140,172

* 4.0 FAR

47 Fr. Morrissette Blvd. 108,043 parking garage

63 Kirk Street 16,144 ?? US Dept of Interior

* Assuming 4.0 FAR development

Lowell High School



entire block between Father Morrissette Boulevard and Kirk Street and might have re‐use

potential, but I have no information to evaluate the physical condition.

50 Father Morrissette Boulevard – I was informed that this brick, two‐building connected

structure was built in the 1970’s and is in poor condition. One component is a hexagonal

auditorium and one section is a three‐story school building.

Freshman Academy – 68 John Street and 35 and 55 French Street comprise the Freshman

Academy component. The three buildings are attractive two and three story brick structures. I was

not provided with information on the physical condition.

Environmental – I was not provided with information on the environmental condition of

the property. As such, it is a general assumption and limiting condition of this report that the

subject property does not have any deleterious environmental conditions that would inhibit

development.

Zoning ‐ The parcels are zoned DMU (Downtown Mixed Use.) This zoning designation

allows a wide variety of commercial, retail, hotel, business, laboratory and institutional uses as of

right. Multi‐family housing is allowed with a special permit. This zone allows for a 4.0 FAR

development potential.

Adjacent Property Uses

North – U. S. Post Office is at the northwest corner of Father Morrissette Boulevard and

Arcand Drive. The 1,250 space Ayotte municipal parking garage is at 47 Father Morrissette

Boulevard. The River Place Towers rental apartment complex is at 1 River Place. The former Lowell

Five Savings Bank property, which is currently for sale, is at French Street and Merrimack Plaza.

The Boott Mills Storage building is at 30 French Street. Boarding House Park is at French

and John Streets.

East – The Joe Downes municipal parking garage is at 15 John Street. A Lowell National

Historic Park office building is located at 67 Kirk Street.

South – Commercial buildings are located on Paige and Kirk Streets. Merrimack Street is

the core Downtown artery.

West – The City Police and Fire Departments are situated on Arcand Drive. The 200 unit

North Canal Apartments affordable housing complex is located at 110 Arcand Drive.



Downtown Lowell Overview

The City of Lowell is the fourth largest city in the state. It is located in northeastern

Massachusetts and is bordered by Dracut on the north, Tyngsborough on the northwest,

Chelmsford on the southwest, and Tewksbury on the east. Lowell is located 25 miles north of

Boston, 45 miles north of Worcester and 100 miles south of Portland.

Lowell is centrally located at the intersection of two major limited‐access highways,

Interstate 495 and Route 3, with convenient access to all of New England’s amenities and

resources.

Lowell was at the heart of the Industrial Revolution and textile industry that boomed in

New England in the nineteenth century. Many of the former mill buildings are part of the Lowell

National Historic Park. The park includes historic cotton textile mills, 5.6 miles of canals,

operating gatehouses, and worker housing.

The subject property is located at the northern edge of the Downtown. General

neighborhood boundaries are the Merrimack River on the north; Concord River and Lowell

General Hospital on the east; Appleton Street on the south; and the Western Canal on the west.

A Map of the City of Lowell Downtown Area follows.



Over the past thirty years, Downtown Lowell has undergone dramatic changes.

Revitalization efforts during the 1970s and 1980s have radically changed Downtown Lowell from

a center of industry to a true urban village. Major initiatives, such as the Lowell National Historic

Park, the Tsongas Arena, and the redevelopment of numerous mill buildings have transformed

the city.



Downtown Lowell is home to University of Massachusetts at Lowell and Middlesex

Community College. The student population has enhanced retail businesses in the CBD and

surrounding neighborhoods. Many new restaurants, bars and cafes have opened up in

Downtown Lowell in recent years.

The 3,200‐seat Lowell Auditorium hosts many of the country's top performers at

affordable prices. The UML Tsongas Arena is located in Downtown Lowell, along with the

Merrimack Repertory Theatre, which is one of the few self‐sustaining repertory theater groups

in the Northeast. Lowell boasts over a dozen museums, including Boott Cotton Mills Museum,

New England Quilt Museum, American Textile Museum, Morgan Cultural Center, National

Streetcar Museum, Revolving Museum and Brush Art Gallery and Studios.

University of Massachusetts at Lowell (UML) ‐ UML has expanded rapidly in recent

years to 17,500 students, which is an increase of than 50% from the student population of 11,600

in 2007. According to Adam Baacke, Director of Campus Planning and Development, the future

five‐year plan calls for expanding to 20,000 students.

The UML campus has three major locations; North, South, and East. The North and

South campuses are primarily academic buildings with some residence halls and playing fields.

The North Campus is on the north side of the Merrimack River and is connected to the East

Campus and Downtown area by the Howe Bridge.

The East campus is at the western edge of Downtown Lowell and is the location of the

majority of residence halls, the primary dining facility, recreation center, LeLacheur Baseball

Park, and Tsongas Center. UML also occupies a significant amount of space in the Downtown

Wannalancit Mills and Boott Mills office complexes. The UML Tsongas Center, which is located

north of Lowell High School, is the eastern most point of campus, with one exception. UMass

Lowell purchased a Downtown hotel at 50 Warren Street and now operates is as the University

Inn & Conference Center.

The university is completing a spate of new construction projects, including Riverview

Suites on the South Campus, a new Business School on the North Campus, and the recently

opened 230,000 square foot University Crossing student center which connects all three

campuses.



In February 2013 UML joined NCAA Division I Athletics. The move to Division I will require

the University to add basketball capability to the Tsongas Center, make improvements to the

North campus Costello facility, and add new playing fields with artificial turf. The University

would also like to add another ice rink for practice, although there are no concrete plans at the

moment.

The University of Massachusetts Lowell (UML) recently announced the purchase of the

4.85‐acre parcel of land located at 225 Aiken Street and identified as the “Notini site.” The $5.8

million price indicates a unit value of $27.48 per square foot. UML’s initial plans are to use the

site as recreation fields for the East Campus.

While UML does not currently have funding for the needed athletic facilities, it could

build them on the Notini site or on the 122,743 square foot site at 152 River Place that it owns if

public funding becomes available.

Middlesex Community College – MCC is a two‐year community college with a total

student population of 9,000 students on its two campuses in Downtown Lowell and Bedford.

There are 4,700 students at the Downtown Lowell campus which is centered at Kearney Square

and is located three blocks east of Lowell High School along Merrimack Street, between

Prescott and Howe Streets.

MCC’s main building is the former Wang Corporate Education Center at Kearney Square,

which opened in 1991. MCC acquired the Federal Building in 2004, along with the historic John

Nesmith House. The College owns the Talbot building on Middle Street, which houses its health

and medical programs, and the Derby building. It leases the Pollard building to operate

Middlesex Charter School. MCC currently occupies 151,500 square feet in Lowell. The College is

renovating the former B&M railroad depot for its $20 million performing arts center; it is

scheduled to open in Fall 2017.

President James C. Mabry told me that MCC projects a decline in student population of

approximately 2% annually over the next five years, as a result of two trends. 1) Community

college growth tends to be countercyclical to growth in the larger economy; MCC experienced a

growing student population during the Great Recession years of 2008 – 2010, followed by

declines since then as the economy has improved and employers began hiring again. 2) A decline



in the number of Lowell High School students is forecast for the near future based on City

demographic projections. President Mabry said MCC’s near term plans in Downtown Lowell are

to revitalize its existing space. Like all public institutions, capital plans are subject to state

funding and there are no plans for future spending.

Hamilton Canal District ‐ This 14‐acre redevelopment district is located on the south

side of Lowell’s Downtown. The City anticipates that the District will be transformed as the

primary gateway into the City and double the size of Downtown. The Hamilton Canal District

will connect the transportation hub at the Gallagher Terminal and Lowell Connector with the

core Downtown, the Arts District, and the major event venues.

The District master planned development began in 2005 when Trinity Financial was

selected as the master developer. To date, significant infrastructure improvements have been

made and two projects are completed. The City of Lowell recently issued a RFP to select a new

master developer.

The City of Lowell is committed to creating a transit‐oriented, mixed‐use neighborhood

along the canals through an expedited permitting process. There are plans to secure local, state

and federal incentives to maximize business growth and commercial investment. Enormous

time and energy has been invested in this project in the hope that it will strengthen the

residential and commercial markets, expand the City’s employment base, and broaden the

population base of creative professionals in the City.

The following table summarizes the completed, planned, and permitted sites in the

District. There are currently nine development‐ready sites totaling 475,729 square feet of land

(almost 11 acres.)

Given the flexibility in height and density restrictions in the form based code, it is

appropriate to apply a 4.0 FAR allowance to derive a general estimate of the maximum build out

potential. Application of 4.0 FAR indicates a potential buildout of 1.5 million square feet.



Address Planned Use Zone

Land

Area (SF)

Max GBA

* Comments

Completed

#6 & 7 ‐Appleton Mills 219 Jackson Street Renovated apt

building.

DMU 76,336 219,245 Renovated mill

bldg. 130 units

affordable,

live/work units.

#10 ‐ UML Innovation

Hub

110 Canal Street Renovated mill

building.

DMU 14,048 58,450 UML Innovation

Hub. Renovated

mill bldg (4.16 FAR)

Subtotal 90,384 277,695

Planned

Lowell Trial Court 351 Middlesex St. Institutional 127,291 255,555 14 acre site at

southern edge of

HC

#2/3A & 4 341 Jackson St. Residential DMU 58,258 140,000 Genesis Health

Care. Skilled

nursing.

#14/ Parking Garage parking DMU 65,581 262,324 City planning 980

space garage.

# 17/ 17A Commercial DMU 23,853 60,000 Watermark;

proposed 6 story

office

Subtotal 251,130 717,879

Permitted

#1 330 Jackson St. Commercial DMU 22,586 89,500 Proposed 6 story

bldg. (3.96 FAR)

#5 291 Jackson St. Commercial DMU 22,688 90,752 Commercial or

theatre.

#8 & 9 193‐239 Jackson St. Residential DMU 50,946 203,784 130 units

#11 193‐239 Jackson St. Residential DMU 24,944 99,776

# 15 & 16 ‐ Signature

site

Commercial DMU 79,582 318,328 232,000 sf

Subtotal 200,746 802,140

451,876 1,520,019

* Based on 4.0 FAR when actual density is not known.

Hamilton Canal District

TOTAL PLANNED/PERMITTED



Market Area Analysis In order to estimate the future demand of a particular property the economic vitality of

both the immediate and general areas encompassing the property must be considered. Market

area analysis focuses on the social, economic, governmental, and environmental forces that

affect real estate, which are all ultimately understood in terms of their effects on the economic

climate in which property transactions occur.

This section examines the supply of and demand for real estate in the primary market.

Demographic Overview The primary market is the Downtown Lowell submarket. It is defined as the 0.5‐mile

radius around 100 Market Street. A map of the submarket follows.

Downtown Lowell Submarket Map

Key demographic data for the Downtown Lowell submarket, the City of Lowell, the

Boston metropolitan area, and the Commonwealth of Massachusetts are summarized in the

following table. The data was provided by the Site To Do Business, and compiled by RP Realty

Advisors.



Population ‐ Downtown Lowell’s current population is 10,514 and is projected to grow

1.27% annually to 11,178 in 2020. It comprises only 10% of the City of Lowell’s population, which

is currently 107,625. The City’s population is forecast to grow 0.52% annually by 2020.

The Boston‐Cambridge‐Quincy MA‐NH CBSA population is estimated as 4,665,265 and

grew 0.50% annually from 2010. The State’s population of 6,689,353 in 2015 represents a 0.43%

annual population growth. Modest population growth is anticipated in these two jurisdictions.

Median Age – The median age in Downtown Lowell is 34.7. The median age in the City

of Lowell is 33.6.

Households – Downtown Lowell has 5,094 households. Annual average growth of 1.52%

is projected over the next five years. The average household size in Downtown Lowell is 1.94

persons, which is much smaller than the City of Lowell’s average household size of 2.64 persons.

The City of Lowell has 39,084households, which indicates a 0.32% annual average

increase since 2010.

Ann. Av.Chg. Ann. Av.Chg.

Population 2010 2015 2010‐ 2015 2020 2015 ‐ 2020

Downtown Lowell 9,885 10,514 1.27% 11,178 1.26%

City of Lowell 106,519 107,625 0.21% 110,427 0.52%

Bos‐Camb‐Quincy MA‐NH CBSA 4,552,402 4,665,265 0.50% 4,825,949 0.69%

State of Massachusetts 6,547,629 6,689,353 0.43% 6,880,602 0.57%


Households 2010 2015 2010‐ 2015 2020 2015 ‐ 2020

Downtown Lowell 4,734 5,094 1.52% 5,646 2.17%

City of Lowell 38,470 39,084 0.32% 40,235 0.59%

Bos‐Camb‐Quincy MA‐NH CBSA 1,760,584 1,813,395 0.60% 1,881,436 0.75%

State of Massachusetts 2,547,075 2,613,774 0.52% 2,695,209 0.62%


Average HH Size 2010 2015 2010‐ 2015 2020 2015 ‐ 2020

Downtown Lowell 1.95 1.94 ‐0.10% 1.93 0.00

City of Lowell 2.66 2.64 ‐0.15% 2.63 0.00

Bos‐Camb‐Quincy MA‐NH CBSA 2.50 2.48 ‐0.16% 2.48 0.00

State of Massachusetts 2.48 2.46 ‐0.16% 2.46 0.00

Ann. Av.Chg.

Median HH Income 2015 2020 2015 ‐ 2020

Downtown Lowell $21,578 $23,437 1.72%

City of Lowell $49,380 $54,444 2.05%

Bos‐Camb‐Quincy MA‐NH CBSA $75,060 $84,306 2.46%

State of Massachusetts $67,601 $78,488 3.22%

Source: Esri Business Analyst Online; compiled by RP Realty Advisors

Demographic Information



Median Household Income –The median City household income of $49,380 is 34%

below the metro’s median income and 27% below the state’s median income.

Downtown Lowell’s median household income is only $21,578. However, this figure is

somewhat misleading. There are a number of low and very low income residents in public

housing in the Downtown, as well as many upper income residents in the high rise apartment

towers.

Economic Overview Major Employers – The following table details the top 20 employers in the City of Lowell.

The Health Care and Education sectors sector provide the lion’s share of employment.

Telecommunications follows, followed by Electronics.



Unemployment Rate – According to the Massachusetts Department of Employment

and Training, the most recent employment statistics for October 2015 show that the City of

Lowell’s total labor force is 53,568, of which 50,440 were employed indicating an unemployment

rate of 5.8%.

The data in the following table shows that in comparison, unemployment rates in the

Lowell‐Billerica‐Chelmsford, MA‐NH Region and State of Massachusetts were 4.6% for the

same period. The US unemployment rate was 5.0%.

Available Downtown Lowell Development Sites

Details of available, development‐ready sites in Downtown Lowell are found in the

following table.

Jurisdiction %

City of Lowell 5.8%

Lowell‐Billerica‐Chelmsford, MA‐NH Region 4.6%

State of Massachusetts 4.6%

USA 5.0%

Unemployment Rates ‐ Oct. 2015





Off Market ‐ The University of Massachusetts Lowell (UML) recently announced the

purchase of the 4.85‐acre parcel of land located at 225 Aiken Street and identified as the Notini

site. The $5.8 million price indicates a unit value of $27.48 per square foot. UML’s initial plans

are to use the site as recreation fields for the East Campus.

Available Land – Four significant land parcels are available and development ready in

the Downtown Core area. All are immediately adjacent to the Lowell High School. The parcels

total almost 7.0 acres and possess a buildout potential of over 1.2 million square feet.

Map of Available Downtown Development Sites

The City of Lowell owns two parking lots at 168 and 230 Martin Luther King Boulevard.

The City’s efforts to market these sites to private developers has meet with tepid interest.



UML owns a developable site at 152 River Place, next to the Tsongas Arena. I was

informed that an RFP was issued to develop this site, but only a private dormitory developer

expressed interest.

Lowell Five Cent Savings Bank has been marketing its 2.2 acre former headquarters site

for several years. Recently Mark Reardon from CBRE took over marketing efforts and has

attached an asking price of $4 million or $41.60 per square foot. It is noted that this unit price is

50% higher than the price that the Notini site sold for and appears unrealistic. The only interest

has come from the same private dormitory developer that expressed interest in the City’s and

UML’s land.

There are nine permitted and pad‐ready development sites in the Hamilton Canal

District. The parcels total 475,729 square feet and offer development potential of over 1.6 million

square feet.

In total, there are 13 development sites in Downtown Lowell that are being actively

marketed. The sites total almost 18 acres of land and would afford development potential of

over 2.7 millions square feet. This is a vast supply of available land and would allow for many

years of future development, before consideration of the subject site.

Office Market Overview

Colliers International provides market indicators for the Greater Boston Office Market.

The most recently published data is from the Greater Office/R&D Market Snapshot: 2nd Quarter

2015 and is found below.



Total office supply in the Greater Boston office market is 218 million square feet, of which

63.2 million square feet are found in Downtown Boston; 21.5 million square feet are in

Cambridge; and 133.73 million square feet are in the Suburban market.

Overall vacancy in Greater Boston is 14.2%. Vacancy in the Suburban market is 17.2%.

The average overall rental rate in the Boston metro market is $35.34 per square foot. The

average rental rate in the suburban market is $24.50 per foot.

Route 495 North Office Submarket ‐ Lowell is in the Route 495 North Office Submarket.

The average rental rate is $19.80 per foot. Class A space reports an average of $20.94 per foot.

Class B space reports an average of $19.70 per foot.

Lowell’s submarket is the weakest office submarket among the 20 submarkets in the

metro area, as shown by the vacancy rate of 23.5% and negative year to date absorption of

(313,361) square feet.



Lowell Office Market – I found no published, third‐party surveys of the Lowell office

market. I relied on data from Costar Professional Data Service for information on the Lowell

Downtown Submarket. It is important to note that the data is self‐reported from owners and

brokers marketing their properties and has not been independently verified. Further the Costar

report includes data only for larger Class A and B properties. Data for many of the smaller, Class

C buildings found in Downtown Lowell is not included.

The Costar Professional Data Service reports that the Downtown Lowell submarket

contains 2.3 million square feet of office space.

The vacancy rate is reported as 10.7%, with a 12.4% availability rate, although these rates

appear low. It may be that owners and brokers have removed available space from the market

after lengthy marketing periods. Also, the DMU zoning allows for mixed‐use buildings in the

Downtown and upper floors may be used as either commercial or residential space.

Full service/ gross rental rates range from $7.00 to $23.44 per foot and average $12.91

per square foot.

The Downtown Lowell annual absorption rate is weak; it was reported as only 25,092

square feet in the previous year, with an 11,827 square foot average.

The data is presented below.





Office Market Rental Rate Analysis – I spoke with office market experts, including Fred

Faust, President, The Edge Group, Inc., Mark Reardon, Executive Vice President, CBRE/New

England, Alex Plaisted, Senior Associate, CBRE/ New England, Joanne Souza, Realtor, Heritage

Properties, and Dennis Page, Realtor, RE/MAX Partners.

I have examined the Lowell office rental market several times over the last eight years.

The following table compares the results of same‐building market rental studies in 2007 and in

2015. The buildings include Wannalancit Mills, Boott Mills, Gateway Center, 100 Merrimack

Street, and Crosspoint.

Typical office tenants are small, local business with space requirements of 500 to 2,000

square feet. Typical rental rates for the best Downtown buildings range between $15.00 and

$14.00 per square foot, on a partial gross basis, or $13.00 to $15.00 per foot on a triple net basis.

The 2015 office rental rates are at essentially the same level as the rental rates found in

my 2007 investigation. These rent levels are not sufficient to support new construction for

investors.



Downtown Lowell’s office market has an ample supply of good quality office space in

Wannalancit Mills, Boott Mills, Gateway Center, and 110 Canal Street. The existing space should

be able to satisfy office demand into the near future.

# Address SF/ Available Basis Ask Avg. NNN SF/ Available Basis Ask Avg. NNN Comments

1 Wannalancit Mills 25,245 Gross $12.00 $8.00 21,608 Partial $15.00 $13.00 Adj. to UML & Tsongas Arena.

175 Cabot & 660‐72 Suffolk/ 8.92% 7.64% Gross to $18.00 to $15.00 283,000 sf complex. 1866/1987

283,000 SF 3.0 parking ratio

2 Boott Mills Substantially $19.00 $15.00 49,994 Partial $15.00 $13.00 300,000 sf. former mill building in CBD.

120 and 200 John St./ vacant. 45.45% Gross to $20.00 to $15.00 Renovated in 1990/2002.

110,000 SF

3 Gateway Center I NAV NNN $13.50 $13.50 3,464 NNN $13.00 $13.00 2 Class A buildings. Built 1997‐ 1999.

10 George Street/ 10.50% $15.00 to $15.00 Op. Exp, CAM, RE taxes are $5‐$6/sf.

33,000 SF

Gateway Center II NAV NNN $13.50 $13.50 12,116 NNN $15.00 $13.00

10 George Street/ 36.72% to $15.00

30,000 SF

4 100 Merrimack Street/ NAV Gross $10.00 $7.00 8,475 Gross $10.00 $7.00 Renovated Class B.

33,900 SF 25.00% Offered for sale at $1.4M or $41/sf.

5 Crosspoint 1, 2, 3 150,000 Gross $19.00 $14.00 511,100 Gross $22.00 $14.00 1.2MSF complex with amenities

900 Chelmsford Street/ 12.00% $23.00 $18.00 42.59% Vacancy dropped to 150,000 sf (12%)

1,200,000 SF as a result of recent large leases in 2007.

Excellent highway access & parking.

6 UML Innovation Hub 55,000 $13.00 Completed in 2012. UML leases the top

110 Canal Street 50.00% to $15.00 two floor for research lab space.

110,000 SF In spite of tax credits and public incentives,

there is still high vacancy.

Market Office Rental Rates ‐ Lowell, MA ‐ Comparison of 2007 and 2015

2007 Rental Rates 2015 Rental Rates



Lowell Retail Market Overview

The Keypoint Eastern Massachusetts/Greater Boston, 2015 Report surveys conditions in

the Eastern Massachusetts retail market. The 2015 newsletter observed that inventory

increased to 193.2 million square feet, while at the same time vacant retail space also increased

to 8.8%, up from 8.5% in 2014.

A general trend in Eastern Massachusetts was increases in vacancy rates among smaller”

stores, largely attributable to “mom and pop” stores that could not recover from the Great

Recession. Key findings are presented in the following table.

Lowell is located in the Northwest retail submarket, which has a total supply of 17.8

million square feet. The vacancy rate is reported as 7.1%, up 80 basis point from the previous

year’s vacancy rate of 6.4%.

While Lowell does not have a regional, enclosed mall, there are ample mall shopping

opportunities available in adjacent towns.

Retail space in Lowell is concentrated in strip shopping centers anchored by

supermarkets or discount stores. Most of the retail space is located two miles outside of the

Downtown, on state roadways.

I relied on data from Costar Professional Data Service for information on the Lowell

Downtown Submarket. It is important to note that the data is self‐reported from owners and



brokers marketing their properties and has not been independently verified. Further the Costar

report includes data only from larger properties and not smaller, Class C space may be excluded.

The Costar Professional Data Service reports that the Downtown Lowell submarket

contains slightly more than 1.0 million square feet of retail space.

The vacancy rate is reported as 4.2%, although this rate appears low. Costar only includes

data that is being marketed. It may be that owners and brokers have removed available space

from the market after lengthy marketing periods.

The current average asking rental rate, on a triple net basis, is $10.08 per foot, which is

consistent with the five year average rental rate of $9.60 per foot.

The annual absorption rate is weak; it was reported as negative (11,406) in the previous

year, with a 28,518 square foot average.

The data is presented below.







Retail Market Rental Rate Analysis – Lowell’s Downtown core has numerous vacant

retail spaces. While the many new residential developments in Lowell have brought a changing

demographic and the addition of several upscale shops and restaurants, the supply of

Downtown retail space currently exceeds the demand created by new residents.

I spoke with two retail experts including Tim Bulman, at District Real Estate Advisors,

Fran Sagendorf at Taupeir Real Estate Inc., Fred Faust, President, The Edge Group, Inc., Joanne

Souza, Realtor, Heritage Properties, and Dennis Page, Realtor, RE/MAX Partners. The following

table summarizes the results of my detailed study at six properties.

Typical retail tenants in Lowell are service‐related or restaurants and range in size from

1,000 to 2,000 square feet. Retail rents range from $8.00 to $15.80 per foot, on a triple net basis.

The rental rates are not sufficient to support new construction. New retail development will not

be economically feasible until significant new demand generators are in place.

# Tenant/Address Size/SF Basis Ask Avg. NNN Comments

1 Discount Furniture Store 15,500 NNN $10.00 $8.00 Shopping plaza on edge of Downtown.

Central Plaza Shopping Ctr.

93,900 SF 4.0/ 1,000 sf parking ratio

2 Available 30,000 $20.00 $15.00 A 30,000 sf pad site is available for new

336 Church Street construction. Site currently occupied with

5,000 sf office building.

3 Cricket Cell Phones 1,000 Mod $13.20 $9.20 3 year lease. Two 5‐yr options with 10%

118‐122 Merrimack Street Gross steps.

Op. Exp, CAM, RE taxes estimated at $4/sf.

4 Retail user 1,100 Gross $21.80 $15.80 Renovated Class B.

104 Merrimack Street Op. Exp, CAM, RE taxes estimated at $6/sf.

5 Retail user 1,800 Mod $14.67 $10.67 Located in heart of downtown.

95‐103 Market Street Gross Large storefront. Plus basement use.

6 Retail user 900 Mod $14.50 $10.50

96 Merrimack Street Gross

Market Retail Rental Rates ‐ Lowell, MA ‐ 2015

2015 Rental Rates



According to the Urban Land Institute, a general rule of thumb for retail development is

that 1,000 new housing units are required to support an additional 100,000 square feet of retail

space. As new market‐rate housing is introduced Downtown and resident’s disposable income

increases, the demand for new retail space should grow. Thus a greater critical mass of housing

will be required before new retail development becomes viable in Downtown Lowell.

Retail Leakage and Surplus Analysis – This analysis examines the quantitative aspect

of a community’s retail opportunities. It is a guide to understanding retail opportunities but does

not designate unconditional opportunities. It is also called a Gap Analysis or a Supply and

Demand Analysis and can aid in identifying how well the retail needs of local residents are being

met; uncovering unmet demand and possible opportunities; understanding the strengths and

weaknesses of the local retail sector; and measuring the difference between actual and potential

retail sales.

The following Retail Marketplace Profile of Downtown Lowell, using Esri data for the 0.5

mile radius around 100 Market Street, identifies “retail leakage” and “retail surplus.”

Retail leakage (shown as positive figures in green) suggests that there is unmet demand,

although it does not necessarily translate into direct opportunities. For example, there could be

strong competition in a neighboring area that dominates the market for that type of product or

store.

Downtown Lowell appears to have retail leakage in motor vehicle, general merchandise,

furniture, and building supply categories. However, purchases in these categories tend to be

“high value.” The small number of households in the trade area, only 5,094, there is not large

enough to sustain stores in these categories.

Retail surplus (shown as negative figures in red) means that the trade area is attracting

non‐local shoppers. This may mean that certain types of retailers have become destination

stores for outsiders. Downtown Lowell appears to have retail surplus in the retail trade and food

and drink categories.



Lowell Residential Market Overview Housing data for Lowell is summarized in the following table. The data was provided by

the Site To Do Business, the Massachusetts Executive Office of Housing and Economic



Development’s Subsidized Housing Inventory, and The Warren Group’s Real Estate Records

Search and compiled by RP Realty Advisors.

There are an estimated 42,397 housing units in the City of Lowell. The vacancy rate is

7.8%. Renters occupy slightly more than half of all units.

As of December 2014, Subsidized Housing Inventory (SHI) 12.4% of the city’s housing units

were considered affordable. Lowell is one of the few communities in the state to meet the

Commonwealth’s Chapter 40B mandate to make 10% of all units affordable.

The median single family home sale price for the first ten months of the year was

$240,094. The median condominium price was $165,000.

2015 Housing Units Number %

Total Units 42,397

Vacant Units 3,313 7.8%

Renter Occupied Units 21,339 50.3%

Subsidized Housing Inventory 5,250 12.4%

Median SF Price (Jan‐Oct 2015) $240,094

Median Condo Price (Jan‐Oct 2015) $165,000

Housing Data

City of Lowell



Housing prices in Lowell have not recovered from the peak in 2005. Median single family

home prices are currently 13% below the 2005 price of $274,900. Median condo prices are 15%

below the $194,200 median 2005 price.

In comparison, the current median Middlesex County single family home price of

$460,000 is above the 2005 price of $435,000; the current median condo price of $365,000 is

above the 2005 price of $300,000.

New Development ‐ The empty mill buildings in Lowell’s Downtown provide an

opportunity for adaptive reuse to commercial and residential use. The City of Lowell offers many

unique financial incentives to encourage new growth and development. Many former mill

properties have been converted to residential use.

The City of Lowell’s Office of Economic Development compiles an annual list of the

Downtown Lowell new residential projects. I reviewed this list in 2007 which showed that 783

new and renovated units had been completed in 18 buildings since 2000.

I reviewed the 2015 list which shows that 1,631 new units in 30 buildings have been

completed since 2000. This indicates an addition of 848 units have been added to the Downtown

market in the last eight years, or an average of 106 units per year.

I have analyzed the list and present it on the following page.





There are currently 165 units under development in four Downtown buildings. There are

an additional 788 units planned and permitted at five other developments.

Given the experience of the previous eight years, these 953 new units could take almost

10 more years to be built and absorbed by the market.

Downtown Lowell Condominium Prices– I surveyed sale prices at new and recently

modernized loft buildings in Downtown Lowell in 2006 and 2007 and compared prices at three

of the same properties which had recent transactions. The results of the survey are found on the

following page.

Average sale price in 2006 and 2007 ranged from $142 to $211 per square foot of unit

area. My research found that prices actually declined in the last eight years; average prices are

now $135 to $152 per foot in the same buildings.

Ayer Lofts, 172 Middle Street – The current average unit price of $148.79 per foot

indicates a 30% decline from the 2006 – 2007 sale price average of $211.27 per foot.

Cottonhouse Lofts, 240 Jackson Street – The 2015 average unit price of $152.08 is

slightly higher than the 2007‐unit price of $142.90 per foot, indicating annual appreciation of

0.8%.

Canal Place, 200 Market Street – The current average unit price is $135.42 per foot,

which is 14.5% lower than the $158.47 average price.





Downtown Lowell Apartment Rental Rates – In spite of the downturn in the sales

oriented market, I did not find a corresponding decline in the rental market.

I re‐surveyed four rental properties in Lowell and the results are found in the following

table.

The Loft 27 property (formerly Joan Fabrics Building) is located at 27 Jackson Street and

was renovated into 173 residential units in 2005. College Street Development originally intended

to market it as a condominium project, with units priced at $275,000. Winn Development

purchased the property and is operating it as a rental property. The upscale property features

granite kitchen counters, tile bath and kitchen floors and a large recreation center.

Average one bedroom rents were $1,450 per month in 2007 and are now $1,630,

indicating a 12% overall appreciation rate. Two bedroom rents increased from $1,800 to $2,400

in the same period, or 33%.

303 Dutton Street average one bedroom rents were $1,085 per month in 2007 and are

now $1,310. Two bedroom rates were $1,450 in 2007 and are now $1,700 per month.

Boott Mills and MassMills also experienced positive rental rate appreciation in the same

period.

Apartment Name\Type SF Rent $/SF SF Rent $/SF

#1‐Loft 27, 27 Jackson St. 2007 1330 $1,450 $1.09 1600 $1,800 $1.13

2015 1330 $1,637 $1.23 1972 $2,400 $1.22

#2 ‐ 305 Dutton Street\ Existing 2007 910 $1,085 $1.19 1124 $1,450 $1.29

2015 910 $1,310 $1.44 1200 $1,700 $1.42

#3 ‐ Boott Mills\ Existing 2007 940 $1,175 $1.25 1145 $1,450 $1.27

2015 927 $1,765 $1.90 1195 $2,075 $1.74

#4 ‐ MassMills I & II 2007 750 $900 $1.20 1125 $1,150 $1.02

2015 750 $1,330 $1.77 1125 $1,520 $1.35

Compiled by RP Realty Advisors

Apartment Market Rental Survey ‐ Lowell, MA: 2007 and 2015

Two BR/ Two BAOne BR/ One BA



HIGHEST AND BEST USE

Highest and best use is defined as:

“The reasonably probable and legal use of vacant land or an improved property, which is

physically possible, appropriately supported, financially feasible, and that results in the

highest value. The four criteria the highest and best use must meet are legal

permissibility, physical possibility, financial feasibility, and maximum profitability.”2

This definition refers to the highest and best use of both vacant as well as improved

property. Implied in the definition is that the determination of highest and best use takes into

account the contribution of a specified use to the community and community development

goals, as well as the benefits of that use to individual property owners. An additional implication

is that the determination of highest and best use results from the appraiser’s judgment and

analytical skill, that is the use determined from analysis represents an opinion, not a fact to be

found.

The definitions of highest and best use indicate that there are two types of highest and

best use. The first type is highest and best use of land or site as though vacant. The second is

highest and best use of property as improved. Each type requires a separate analysis. In the case

of the subject property, analysis, as vacant, is necessary.

Highest and Best Use As Vacant – The question to be answered in this analysis is what

use should be made of the land? That is, what type of building or other improvement (if any)

should be constructed on the land?

Physically Possible – In the case of the subject, lot shape and dimensions do not pose

unusual constraints to development. Much of the site is relatively level and at grade and would

support many types of development. The physical characteristics of the property will allow most

types of commercial, retail or industrial uses.

2 The Dictionary of Real Estate Appraisal, 3rd Edition, published by the Appraisal Institute (1993), p.171.



Legally Permissible – The site is located in the DMU (Downtown Mixed Use.) This

zoning designation allows a wide variety of commercial, retail, hotel, business, laboratory and

institutional uses as of right. Multi‐family housing is allowed with a special permit.

Financially Feasible – In addition to being physically possible and legally permissible, a

use must make financial sense and have sufficient market support.

Downtown Lowell Supply: There are currently 13 development‐ready sites available in

Downtown Lowell. All have been actively marketed in recent years with limited interest from

private developers.

Four sites are adjacent to Lowell High School and would afford over 1.2 million square

feet of development potential.

Nine sites are in the Hamilton Canal District and offer over 1.6 million square feet of

potential development area.

In total, development on the almost 18 acres of pad‐ready land would increase the supply

of the Downtown market by more than 2.8 million square feet.

Downtown Demand:

Institutional Use: The University of Massachusetts Lowell and Middlesex Community

College are among the top five employers in the City of Lowell and major users of Downtown

office space. UML expects to add 3,000 more students in the next five years, although most of

the growth will occur on the existing campus footprint.

UML joined NCAA Division I Athletics in 2013 and this move will require the University to

add basketball capability to the Tsongas Center, make improvements to the North campus

Costello facility, and add new playing fields with artificial turf. The University would also like to

add another ice rink for practice, although there are no concrete plans at the moment.

The University of Massachusetts Lowell (UML) recently announced the purchase of the

4.85‐acre parcel of land located at 225 Aiken Street and identified as the “Notini site.” UML’s

initial plans are to use the site as recreation fields for the East Campus.

While UML does not currently have funding for the needed athletic facilities, it could

build them on the Notini site or on the 122,743 square foot site at 152 River Place that it owns if

public funding becomes available.



MCC projects an annual 2.0% decline in its student population over the next five years

and will not need more space in Downtown Lowell in the near future.

Office Use: The vacancy rate in the subject’s Route 495 North submarket is the highest

among all 20 submarkets in the Greater Boston office market, at 23.5%. Year to date absorption

was reported as negative (313,361) square feet at the end of the second quarter of 2015.

My same‐building Downtown Lowell rental rate analysis between 2007 and 2015 found

that rates are essentially the same and below the level needed to support new construction.

There is very little demand for new office space in Lowell or the surrounding market. Thus, office

use, while legally allowed, would not be financially feasible.

Retail Use: Commercial and retail uses are also allowed “as of right.” Lowell’s Downtown

core has numerous vacant retail spaces. While the many new residential developments in Lowell

have brought a changing demographic and the addition of several upscale shops and

restaurants, the supply of Downtown retail space currently exceeds the demand created by new

residents.

As new market‐rate housing is introduced Downtown and resident’s disposable income

increases, the demand for new retail space should grow. At this time Downtown Lowell has not

achieved the critical mass of residential housing required to support new retail development.

Residential Use: Lowell’s housing prices have not recovered from the peak in 2005.

Median single family home prices are currently 13% below the 2005 price of $274,900. Median

condo prices are 15% below the $194,200 median 2005 price.

In spite of the downturn in the sales oriented market, I did not find a corresponding

decline in the rental market. My same‐building rental survey of three converted apartment

buildings found that rental rates have increased 2% to 5% on average between 2007 and 2015.

Maximally Productive – Simply stated, highest and best use is that use which fully

develops the land's potential.

Institutional demand appears speculative at this time. There is only lackluster demand

demonstrated for office use in Downtown Lowell. Demand for support retail, restaurant and

commercial uses will follow once residential buyers and tenants move to Downtown Lowell.



There is positive demand for residential rental properties but 953 units are under

construction or planned in Downtown Lowell, which indicates ample supply.

Conclusion – At this time, there is a surplus of development‐ready sites in Downtown and

no market support for redevelopment of the subject site in the near future. Highest and best use

is continued use of the site.



ADDENDA



GENERAL ASSUMPTIONS & LIMITING CONDITIONS I assume: 1. That the subject property's fee simple estate is marketable and that the property is free and clear of all liens,

encumbrances, easements and restrictions unless otherwise noted. 2. No liability for matters legal in nature. 3. That property ownership and management are in competent, responsible hands. 4. The property is not operating in violation of any applicable government regulations, codes, ordinances, or statutes.

Any zoning variations and special permits currently in place are assumed to be available as of the date of value. 5. That there are no concealed or dubious conditions of the subsoil or subsurface waters, including water table and flood

plain or environmental hazards. Further, that there are no regulations of any government entity to control or restrict the use of the property, unless specifically referred to in this report.

6. Building and unit area estimates are based on information supplied by the others including the building information

provided by the current owner to the appraiser preparing this report. The following limiting conditions are submitted with this report: 1. All of the facts, conclusions, and observations contained herein are consistent with information available as of the date

of this report. The value of real estate is affected by many related and unrelated economic conditions, both local and national. I, therefore, assume no liability for the effect on the subject property of any unforeseen change in the economy.

2. The market analysis, which applies only to the property described herein, was prepared for the purpose so stated and

should not be used for any other purpose. 3. I have not made a survey of the property. Any and all maps, sketches, and site plans provided to me are presumed to

be correct, but no guarantee is made as to their accuracy. 4. Any information furnished by others is presumed to be reliable and, where so specified in the report, has been verified,

but no responsibility, whether legal or otherwise, is assumed for its accuracy or can it be guaranteed as being certain. No single item of information was completely relied upon to the exclusion of any other information.

5. The signatory herein shall not be required to give testimony or attend court or appear at any governmental hearing

with reference to the subject property, unless prior arrangements have been made. 6. Disclosure of the contents of this report is governed by the bylaws and regulations of the Appraisal Institute. Neither

this report nor any portions thereof (especially any conclusions as to value, the identity of the analyst or the firm with which she is connected, or any reference to the Appraisal Institute or the MAI or RM designation) shall be disseminated to the public through public relations media, news media, advertising media, sales media or any other public means of communications without my prior written consent and approval.

7. I have no present or contemplated interest in the subject property. 8. Employment and compensation for the report are in no way contingent on the conclusions reported herein. 9. This report has been made in conformance to the Code of Professional Ethics and Standards of Practice of the

Appraisal Institute, of which Rose M. Perrizo is a member, and represents the best judgment of the analyst. 10. No responsibility is taken for the effect on the subject property of changes in market conditions after the date of the

report. 11. No effort has been made to determine the impact on this project of possible energy shortages or present or future

federal, state, or local legislation, including any environmental or ecological matters or interpretations thereof. 13. Other than the zoning analysis herein, the appraiser did not ascertain further legal and regulatory requirements,

including permits and licenses and other state and local government regulations.



CERTIFICATION

I certify that, to the best of my knowledge and belief:

• I have the requisite knowledge and experience to competently undertake this assignment.

• 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 prospective 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.

• I have not performed any 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.

• 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, promulgated by the Appraisal Foundation.

• I visited the exterior of Lowell High School subject property on November 16, 2015.

• No one else provided significant professional assistance to the signatories of this report.

• I certify to the best of my knowledge and belief, the reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute.

• I certify that the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

• I certify that I am appropriately certified to appraise the subject property in the state in which it is located. Rose M. Perrizo, MAI is registered with the Commonwealth of Massachusetts as Certified General Real Estate Appraisers, Certification No. 1937.

• Rose M. Perrizo, MAI is competent to perform this assignment and are experienced in the valuation of all types of commercial property, including but not limited to, office buildings, industrial buildings, research and development facilities, retail developments, lodging facilities, mixed use projects, multi‐family residential property, and undeveloped land. Ms. Perrizo is currently certified under the continuing education program of the Appraisal Institute.

Rose M. Perrizo, MAI

Rose M. Perrizo

Rose M. Perrizo, MAI Mass. Certified General Appraiser #1937 Certified through October 15, 2017



QUALIFICATIONS OF ROSE M. PERRIZO, MAI

Rose Perrizo has extensive experience in commercial real estate consulting, valuation and market analysis across the United States. Ms. Perrizo has expertise with all property types, including land, ranging from urban renewal sites to master planned developments; office, retail, and industrial buildings, ranging in size from 50,000 to two million square feet; and every type of residential use including apartment towers, condominiums and mixed‐use facilities. Ms. Perrizo has served as an expert witness and provided litigation support for cases in U.S. District Court, U.S. Bankruptcy Court, and the Massachusetts Superior Court. She has a special expertise with federal and state housing programs and transportation agencies and has earned the highest real estate appraisal designation, Member of the Appraisal Institute.

PROFESSIONAL EXPERIENCE RP REALTY ADVISORS, Boston, MA (1992 to Present) Principal and Owner

Prepare appraisal and market studies for MassHousing, U.S. Postal Service, major law firms, and numerous other institutions.

Develop market transactional analyses, highest and best use studies, market rent reports and feasibility reports for public transportation agencies including Massachusetts Bay Transit Authority, New York Thruway, and Chicago Transit Authority.

Estimated the highest and best use and market value of a 31‐acre freight yard in Brockton, MA for the owner, CSX Corporation, in connection with disposition decisions.

Prepared valuation of the one million square foot Technology Square Campus in Cambridge, MA to assist Prudential Insurance Company with an underwriting investigation.

Engaged as a testifying expert in a professional malpractice case in U.S. District Court, Boston to estimate the value of ocean front land and homes in Cotuit, MA. Successful resolution at mediation.

LANDAUER ASSOCIATES, New York, NY (1987 ‐ 1992) Senior Vice President

Supervised teams of consultants on large‐scale engagements across the United States. Examples include current asset valuation of a $2.5 billion real estate portfolio; advisory study of 16 land developments in Maryland; and the feasibility analysis of 220 Dallas land parcels.

RELATED EXPERIENCE (1981‐1987) New York City Dept. of Housing Development – Responsible for planning projects in Manhattan Joseph J. Blake & Associates and The Weitzman Group – Real estate consulting studies across the U.S.

EDUCATION & PROFESSIONAL AFFILIATIONS

M.P.A. Public Administration and Urban Planning, cum laude, SYRACUSE UNIVERSITY, 1980

B.S. Political Science, magna cum laude, UNIVERSITY OF WISCONSIN, Stevens Point, 1979

Member of the Appraisal Institute, #7765

Certified General Real Estate Appraiser, MA, #1937

Guest Lecturer at New York University Real Estate Institute

Former Member of the Town of Sharon Conservation Commission

DBE Certification

Open Water Diver, IDEA #1004781

Documents

SUMMARY MARKET ANALYSIS · PDF fileSUMMARY MARKET ANALYSIS Lowell High School Site Downtown Lowell, MA Prepared For: Craig Thomas, Chief Design Planner