FBI-commissioned appraisal of Epstein's 9 East 71st Street mansion, July 2019

APPRAISAL REPORTS, INC.¶

File No. F907005.1¶

******* INVOICE **********¶

File Number: F907005.1¶

7/14/2019¶

APPRAISAL REPORTS, INC.¶

Federal Bureau of Investigation¶

26 Federal Plaza¶

New York, NY 10278¶

Invoice #:	F907005.1
Order Date:	7/9/2019
PO Number:	19-3540-0000143

9 East 71st Street¶

New York, NY 10021¶

Complex Appraisal Fee Amount	$3,244.97
Invoice Total	$3,244.97
Amount Due	$3,244.97

Terms: Payment due upon receipt.¶

Please Make Check Payable To:¶

We Value Your Business¶

USAO 000372¶

EFTA_00018282¶

EFTA00168347¶

APPRAISAL REPORTS, INC.¶

File No. F907005.1¶

APPRAISAL OF¶

A SINGLE FAMILY RESIDENTIAL PROPERTY¶

LOCATED AT:¶

9 East 71st Street¶

New York, NY 10021¶

CLIENT:¶

Federal Bureau of Investigation¶

26 Federal Plaza¶

New York, NY, 10278¶

AS OF:¶

July 13, 2019¶

BY:¶

#45¶

Gary D. Lane¶

NYS Certified Resid RE Appraiser¶

USAO 000373¶

EFTA_00018283¶

EFTA00168348¶

APPRAISAL REPORTS, INC.¶

File No. F907005.1¶

July 15, 2019¶

APPRAISAL REPORTS, INC.¶

Federal Bureau of Investigation¶

26 Federal Plaza¶

New York, NY 10278¶

File Number: F907005.1¶

Attention¶

In accordance with your request, I have appraised the real property at:¶

9 East 71st Street¶

New York, NY 10021¶

The purpose of this appraisal is to develop an opinion of the defined value of the subject property, as improved. The property rights appraised are the fee simple interest in the site and improvements.¶

In my opinion, the defined value of the property as of July 13, 2019¶

is:¶

86,250,000¶

Eighty-Six Million Two Hundred Fifty Thousand Dollars¶

The attached report contains the description, analysis and supportive data for the conclusions, final opinion of value, descriptive photographs, assignment conditions and appropriate certifications.¶

Respectfully Submitted,¶

Gary Lane¶

NYS Certified Resid RE Appraiser¶

Field Appraiser¶

USAO 000374¶

EFTA_00018284¶

EFTA00168349¶

APPRAISAL REPORTS, INC.¶

File No. F907005.1¶

FEATURE	SUBJECT	COMPARABLE SALE NO. 1	COMPARABLE SALE NO. 2	COMPARABLE SALE NO. 3
9 East 71st Street Address New York, NY	14 East 67th Street New York, NY 10065	110 East 76th Street New York, NY 10021	16 East 69th Street New York, NY 10021	16 East 69th Street New York, NY 10021
Promptly to Subject	0.23 miles SW	0.28 miles SW	0.12 miles SW	0.12 miles SW
Sales Price	$	$77,100	$40,250	$40,250
Site Point/Gross Lv. Area	$0.00 sq. ft.	$1,541.43 sq. ft.	$13,356.68 sq. ft.	$4,025.60 sq. ft.
Data Source(s)	GeoData Plus	GeoData Plus	GeoData Plus	GeoData Plus
Verification Source(s)	StreetEasy.com/Exterior View	StreetEasy.com/Exterior View	StreetEasy.com/Exterior View	StreetEasy.com/Exterior View
VALUE ADJUSTMENTS	DESCRIPTION	DESCRIPTION	DESCRIPTION	DESCRIPTION
Sales & Financing Concessions	None	None	None	None
Date of Sale/Time	6/4/2019	8/16/2018	3/14/2018	3/14/2018
Location	Urban	Urban	Urban	Urban
Leasehold Fee Simple	Fee Simple	Fee Simple	Fee Simple	Fee Simple
Site Wide/5108 sq. ft.	Wide/4820 sq. ft.	+28,800	Level/3678 sq. ft.	Level/3314 sq. ft.
City	Qty	Qty	Qty	Qty
Deposit (Style)	1-Fam Attached	1-Fam Attached	1-Fam Attached	1-Fam Attached
Quality of Construction	Limestone/Good	Limestone/Good	Limestone/Good	Brick/Good
Actual Age	109 +/- Years	114 +/- Years	7 +/- Years	99 +/- Years
Condition	Very Good	Very Good	New Construct	-500,000
Above Grade	Top Grade	Top Grade	Top Grade	Top Grade
UNK	14 UNK	7	10 +/- Unknown	11
Gross Leave Area,2,000	18,814 km²	14,240 km²	9,148 km²	13,646 km²
Basis Finned	Full Basement	Full Basement	Full Basement	Full Basement
Room Below Base	Full Finished	Full Finished	Full Finished	Full Finished
Functional Utility	1-Fam Good	1-Fam Good	1-Fam Good	1-Fam Good
Healthy Cooling	HW/Radiant/Cent	HW/Radiant/Cent	HW/Radiant/Cent	HW/Radiant/Cent
General Windows	Intra Windows	Intra Windows	Intra Windows	Intra Windows
Internal Carport	None	None	None	None
Porch/Park Deck	Patio	Balcony	Patio	Balcony
Net Adjustment (Total)	X	9,276,800	X	13,619,000
Adjusted Sale Price of Comparisons	Net Adj. 12.0%	Net Adj. 12.0%	Net Adj. 33.8%	Net Adj. 48.2%
Summary of Sales Comparison Approach	The subject's comparability to other one-family townhouses in the area is good; the subject is similar to the sales in most elements of comparison. Comparable #1, #2, and Listing #1 are from the neighborhood of Lenox Hill. Comparable sale #2 is from the adjoining Upper East Side. Listing #2 is from the West Village. GLA was adjusted @ $2,000 per sq. ft. Site differentials @ 100 per sq. ft. plus a premium for wide frontage.

Produced using ACI software, 805.234.8727 www.acciweb.com ¶

Page 1 of 3¶

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This is a simple Markdown representation of the provided image, preserving the original layout with headings, paragraphs, and formulas as they appear. No additional content has been added or removed.¶

EFTA00168350¶

RECONSTRUCTION¶

Approaches to value developed: X Sales Comparison Approach X Cost Approach X Income Approach¶

Persons for inclusion an approach to value: The appraiser has relied on the Sales Comparison approach as it is the best method to estimate the value of a one-family townhouse from the exterior only; the Cost and Income approaches are not applicable.¶

Reconciliation comments: The final value conclusion is not bracketed as to actual sales prices due to the superior size and premium lot frontage of the subject property. The subject was inspected from the exterior only.¶

Based on the scope of work, assumptions, limiting conditions and appraiser’s certification, my (our) opinion of the defined value of the real property that is the subject of this report as of July 13, 2019, which is the effective date of this appraisal:¶

$165,000,000 or $165,000,000
to $ Greater than than $

Appraiser’s Certification¶

The appraiser(s) certify that, in the best of the appraiser’s knowledge and belief:¶

The statement of fact contained in the report is true and correct.
The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are the appraiser’s personal, impartial, and unbiased professional analyses, opinions, and conclusions.
Unless otherwise stated, the appraiser has no respect to the property that is the subject of this report or to the parties involved with this assignment.
The appraiser has no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
The appraiser’s argument in this assignment was not contingent upon development or reporting predetermined results.
The appraiser’s comparison to complete the assignment is not contingent upon the development or reporting of a predefined value or direction in value that favors the cause of the client, the amount of the value option, the attachment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
The appraiser’s analyses, opinions, and conclusions were developed, and this report has been prepared, in compliance with the Uniform Standards of Professional Appraisal Practice.
Unless otherwise noted, the appraiser has made a personal inspection of the property that is the subject of this report.
Unless noted, no one provided significant real property appraisal assistance to the appraiser signing this certification. Significant real property appraisal assistance provided by:
- N/A

Additional Certifications:¶

This appraisal is based on the extraordinary assumption that the interior of the property is the same as described in this report. The client ordered an exterior viewing only. The appraiser has gathered information about the subject property by limited visual exterior inspection, available public records, and assumes that the interior is typical to other competing properties. Use of this report indicates the user will not hold the appraiser or the appraiser firm responsible for any damages associated with this type of data gathering method and that the use of the aboveemotional extraordinarily assumed(s) may have an effect on the assignment results.¶

Definition of Value: X Market Value X Other Value: X State Value X Appraisal Institute¶

The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self interest, assuming that neither is under undue duress.¶

APPRAISER¶

Signature: [Name] Name: Gary Lane State Certification #: 45000049094 or License #: or other (descript): State # State New York Exterior Date of Certification or License: 04/06/2020 Date of Signature and Report: 7/14/2019 Date of Property Viewing: 7/13/2019 Degree of property viewing: Interior and Exterior Only Did not personally view¶

CO-APPRAISER¶

Signature: [Name] State Certification #: or License #: State: Expiration Date of Certification or License: Date of Signature: Date of Property Viewing: Degree of property viewing: Interior and Exterior Only Did not personally view¶

Produced using ACI software, 600.234.8727 www.aclweb.com	This form Copyright © 2005-2010 ACI Division of ISO Claims Services, Inc., All Rights Reserved.
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USAO 000376¶

| EFTA_00018286 | | :--- | :--- |¶

EFTA00168351¶

File No. F907005.1¶

Scope of Work, Assumptions and Limiting Conditions¶

Scope of work is defined in the Uniform Standards of Professional Appraisal Practice as “the type and extent of research and analyses in an assignment.” In short, scope of work is what the appraiser did and did not do during the course of the assignment. It includes, but is not limited to: the extent to which the property is identified and inspected the type and extent of data researched, the type and extent of analyses applied to arrive at opinions or conclusions.¶

The scope of this appraisal and ensuing discussion in this report are specific to the needs of the client, other identified intended users and to the intended use of the report. This report was prepared for the sole and exclusive use of the client and other identified intended users for the identified intended use and its use by any other parties is prohibited. The appraiser is not responsible for unauthorized use of the report.¶

The appraiser’s certification appearing in this appraisal report is subject to the following conditions and to such other specific conditions as are set forth by the appraiser in the report. All extraordinary assumptions and hypothetical conditions are stated in the report and might have affected the assignment results.¶

The appraiser assumes no responsibility for matters of a legal nature affecting the property appraised or title thereto, nor does the appraiser render any opinion as to the title, which is assumed to be good and marketable. The property is appraised as though under responsible ownership.
Any sketch in this report may show approximate dimensions and is included only to assist the reader in visualizing the property. The appraiser has made no survey of the property.
The appraiser is not required to give testimony or appear in court because of having made the appraisal with reference to the property in question, unless arrangements have been previously made thereto.
Neither all, nor any part of the content of this report, copy or other media thereof (including conclusions as to the property value, the identity of the appraiser, professional designations, or the firm with which the appraiser is connected), shall be used for any purposes by anyone but the client and other intended users as identified in this report, nor shall it be conveyed by anyone to the public through advertising, public relations, news, sales, or other media, without the written consent of the appraiser.
The appraiser will not disclose the contents of this appraisal report unless required by applicable law or as specified in the Uniform Standards of Professional Appraisal Practice.
Information, estimates, and opinions furnished to the appraiser, and contained in the report, were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy of such items furnished to the appraiser is assumed by the appraiser.
The appraiser assumes that there are no hidden or unapparent conditions of the property, subsoil, or structures, which would render it more or less valuable. The appraiser assumes no responsibility for such conditions, or for engineering or testing, which might be required to discover such factors. This appraisal is not a home inspection or environmental assessment of the property and should not be considered as such.
The appraiser specializes in the valuation of real property and is not a home inspector, building contractor, structural engineer, or similar expert, unless otherwise noted. The appraiser did not conduct the intensive type of field observations of the kind intended to seek and discover property defects. The viewing of the property and any improvements is for purposes of developing an opinion of the defined value of the property, given the intended use of this assignment. Statements regarding condition are based on surface observations only. The appraiser claims no special expertise regarding issues including, but not limited to: foundation settlement, basement moisture problems, wood destroying (or other) insects, pest infestation, radon gas, lead based paint, mold or environmental issues. Unless otherwise indicated, mechanical systems were not activated or tested.

This appraisal report should not be used to disclose the condition of the property as it relates to the presence/absence of defects. The client is invited and encouraged to employ qualified experts to inspect and address areas of concern. If negative conditions are discovered, the opinion of value may be affected.¶

Unless otherwise noted, the appraiser assumes the components that constitute the subject property improvement(s) are fundamentally sound and in working order.¶

Any viewing of the property by the appraiser was limited to readily observable areas. Unless otherwise noted, attics and crawl space areas were not accessed. The appraiser did not move furniture, floor coverings or other items that may restrict the viewing of the property.¶

Appraisals involving hypothetical conditions related to completion of new construction, repairs or alteration are based on the assumption that such completion, alteration or repairs will be competently performed.
Unless the intended use of this appraisal specifically includes issues of property insurance coverage, this appraisal should not be used for such purposes. Reproduction or Replacement cost figures used in the cost approach are for valuation purposes only, given the intended use of the assignment. The Definition of Value used in this assignment is not consistent with the definition of Market Value for property insurance coverage/use unless otherwise stated by the appraiser.

Additional Comments Related To Scope Of Work, Assumptions and Limiting Conditions¶

gpar™ general purpose¶

Produced using ACI software, 805.234.8727 www.acciweb.com ¶

Page 3 of 3¶

(gPAR™) General Purpose Appraisal Report 04/2007¶

GPARRES2 08112909¶

USAO 000377¶

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FBI-commissioned appraisal of Epstein's 9 East 71st Street mansion, July 2019

APPRAISAL OF¶

LOCATED AT:¶

NYS Certified Resid RE Appraiser¶

APPRAISAL REPORTS, INC.¶

RECONSTRUCTION¶

Scope of Work, Assumptions and Limiting Conditions¶

Other documents from the same file