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These data differ slightly with investor survey results from the Korpacz Real Estate Investor Survey published by PricewaterhouseCoopers. It is important to note that the subject property has undergone extensive renovations since our prior appraisal, the most important being the renovations of the Main Building. The survey reports average exposure periods of 7. It is our goal to provide clients with the finest update appraisal report available. According to property management, this annual lease expense has remained unchanged for at least the past four years and is unlikely to escalate beyond inflation in future years. Total Capital Expenditures. Expressed in Base-Year Dollars. Copper domestic water pipes Main Building. The story main building was constructed in , and the story tower was constructed in The main building occupies the western portion of the parcel, which fronts Michigan Avenue, and the tower. Description of the Real Estate. Completion of 10 Tower suites. Segmented Rooms Revenue s. In addition, the accounting department, previously located on the third floor, was relocated to a boardroom in the basement, adjacent to the cafeteria. Guestroom renovation - Tower rooms. Mock-up room for Main building renovation. Replace trash compactor and lift. Occupancy and Average Rate Analysis. Guestroom televisions. The Dictionary of Real Estate Appraisal. We look forward to serving you again in the future. The subject property contains rentable units, a leased restaurant, a freestanding quick-service coffee and pastry kiosk, 39, square feet of meeting space, a business center, a fitness room, a gift shop, an underground parking garage with spaces, and a typical complement of back-of-the-house facilities. Highest and Best Use. Convert old health club to administrative office. We are available to answer any questions and are pleased to have provided you with the finest quality product available. Tower room HVAC controls. Replace and rebalance domestic water. Suzanne R. Replace 29th-floor elevator roof. Guestroom safes.{/INSERTKEYS}{/PARAGRAPH} Summary of Salient Data and Conclusions 2. An additional meeting room was created with the reallocation of restaurant space. All the renovated areas of the hotel are in excellent condition, while the other areas of the subject property appeared in adequate condition at the time of inspection. Reclad planters in stone to match building. Garage entrance facade, floor, ceiling renovation. Convert 3rd-floor offices to meeting rooms. Guestroom miscellaneous. Approaches to Value. The value conclusion of the complete appraisal is based upon this investigation and analysis and is conveyed in this appraisal update report. Daniel F. On the second floor, a spiral staircase connecting the first and second floors became superfluous not required per fire code , as the Grill on the Alley increased the space allocation from that of the previous Chelsea Restaurant and Bar to include a portion of the lobby. Resurface service areas - 12 floors. This survey references marketing time with the average stated as 6. In addition, we have investigated the general economy of the area affecting the subject property, as well as the specifics of the competitive hotel market. We have investigated numerous improved sales in the market area and have spoken with buyers, sellers,. Construct new function room on 2nd floor. Another variation in the subject market since our prior appraisal is the opening of three additional lodging facilities and changes to the proposed additions to supply. Other minor changes include a relocation of the business center and the Service Express department. Engineering misc. The following staff members acknowledge their contribution to this report. All information was collected and analyzed by the signatories to this report. Marketing times, as reported by the Korpacz survey, average 6. Renovation - Presidential and State Suites. Convert Rex meeting rooms to guestrooms. Field Museum of Natural History. The subject property is encumbered by a management agreement. Appraisal Update. Guestroom renovation - remaining Tower rooms. The soft and case goods in the guestrooms and hallways were also replaced. As such, we have deducted general and incentive management fees in our forecast, as stipulated in the management agreement, which was synopsized in the addenda to our prior report. Fire exit stairway from 2nd floor. For the purposes of this appraisal, we assume that this amount will increase at inflation in our projections. All the renovated areas of the hotel are in excellent condition, while the other areas of the subject property appeared in adequate condition, at the time of inspection. {PARAGRAPH}{INSERTKEYS}Summary of Salient Data and Conclusions. Most of this additional meeting space came about as a result of the conversion of third-floor administrative offices into breakout rooms. The value conclusion is based upon this investigation and analysis and is conveyed in this appraisal update. These developments will be discussed in greater detail later in this report. Water pipe risers Main Building. As provided by property management, the following chart details the most recent rendition of this budget. Market Area Analysis. Concrete restoration of loading dock and garage ramps. Building, Grounds, Other. Signage and electronic reader boards. Our appraisal update involves a careful analysis of the property itself and the economic, demographic, political, physical, and environmental factors that have influenced real estate values since our prior appraisal. According to the most recent National Investor Survey published by CB Richard Ellis, exposure time has increased in the past six months due to reduced REIT activity and a more stable real estate investment environment. Chicago: Appraisal Institute, , p. All projections are expressed in inflated dollars, and the value estimate represents dollars. Supply and Demand Analysis. Income Capitalization Approach. Paula Hood extension is available to answer any billing questions. For purpose of this appraisal, we have assumed that the lease income generated will increase at inflation throughout our projections. Guestroom renovation - 18 corner suites. Nature of the Assignment. We assume upon sale continued management of the property by Westin Hotels and Resorts. Total Capital Expenditures Per Room. Average Annual Compounded Percentage Change Museum of Science and Industry. The property is located in the city of Chicago, the county of Cook and state of Illinois. Average Annual Compounded Percent Change Segmented Rooms Captured. Administration and Engineering. The rights of the lessor the leased fee owner and the leased fee are specified by contract terms contained within the lease. Grill in the Alley capital obligation. Hyatt Regency McCormick Place. Summary of Salient Data and Conclusions 1. The methodology used to develop this appraisal update is also consistent with that of the original appraisal. The capital expenses that are budgeted for are discussed in the following section. Construct replacement fire exit from 2nd floor. Sales Comparison Approach.