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We assume upon sale continued management of the property by Westin Hotels and Resorts. The soft and case goods in the guestrooms and hallways were also replaced. Construct replacement fire exit from 2nd floor. Average Annual Compounded Percentage Change Museum of Science and Industry. 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. The subject property is encumbered by a management agreement. 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. Building, Grounds, Other. Marketing times, as reported by the Korpacz survey, average 6. Income Capitalization Approach. Suzanne R. 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. Tower room HVAC controls. Approaches to Value. The Dictionary of Real Estate Appraisal. The survey reports average exposure periods of 7. Renovation - Presidential and State Suites. Guestroom safes.{/INSERTKEYS}{/PARAGRAPH} {PARAGRAPH}{INSERTKEYS}Summary of Salient Data and Conclusions. The property is located in the city of Chicago, the county of Cook and state of Illinois. Other minor changes include a relocation of the business center and the Service Express department. Copper domestic water pipes Main Building. Segmented Rooms Revenue s. 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. Sales Comparison Approach. It is our goal to provide clients with the finest update appraisal report available. Convert Rex meeting rooms to guestrooms. The following staff members acknowledge their contribution to this report. Highest and Best Use. Completion of 10 Tower suites. The capital expenses that are budgeted for are discussed in the following section. Occupancy and Average Rate Analysis. Guestroom televisions. Summary of Salient Data and Conclusions 2. Garage entrance facade, floor, ceiling renovation. Replace 29th-floor elevator roof. Replace trash compactor and lift. 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. Description of the Real Estate. All information was collected and analyzed by the signatories to this report. Guestroom miscellaneous. We have investigated numerous improved sales in the market area and have spoken with buyers, sellers,. 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. Field Museum of Natural History. Summary of Salient Data and Conclusions 1. Daniel F. We look forward to serving you again in the future. Guestroom renovation - remaining Tower rooms. For the purposes of this appraisal, we assume that this amount will increase at inflation in our projections. The methodology used to develop this appraisal update is also consistent with that of the original appraisal. Guestroom renovation - Tower rooms. In addition, the accounting department, previously located on the third floor, was relocated to a boardroom in the basement, adjacent to the cafeteria. Administration and Engineering. Expressed in Base-Year Dollars. Reclad planters in stone to match building. Market Area Analysis. Chicago: Appraisal Institute, , p. Replace and rebalance domestic water. Guestroom renovation - 18 corner suites. Resurface service areas - 12 floors. 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. Engineering misc. Concrete restoration of loading dock and garage ramps. 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. Convert 3rd-floor offices to meeting rooms. 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. Hyatt Regency McCormick Place. 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. Nature of the Assignment. All projections are expressed in inflated dollars, and the value estimate represents dollars. Construct new function room on 2nd floor. Appraisal Update. Convert old health club to administrative office. Fire exit stairway from 2nd floor. For purpose of this appraisal, we have assumed that the lease income generated will increase at inflation throughout our projections. Average Annual Compounded Percent Change Segmented Rooms Captured. These data differ slightly with investor survey results from the Korpacz Real Estate Investor Survey published by PricewaterhouseCoopers. Grill in the Alley capital obligation. The rights of the lessor the leased fee owner and the leased fee are specified by contract terms contained within the lease. 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. Most of this additional meeting space came about as a result of the conversion of third-floor administrative offices into breakout rooms. Water pipe risers Main Building. Total Capital Expenditures Per Room. As provided by property management, the following chart details the most recent rendition of this budget. This survey references marketing time with the average stated as 6. An additional meeting room was created with the reallocation of restaurant space. Mock-up room for Main building renovation. Signage and electronic reader boards. The value conclusion is based upon this investigation and analysis and is conveyed in this appraisal update. Paula Hood extension is available to answer any billing questions. These developments will be discussed in greater detail later in this report. The value conclusion of the complete appraisal is based upon this investigation and analysis and is conveyed in this appraisal update report. Supply and Demand Analysis. Total Capital Expenditures. 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. We are available to answer any questions and are pleased to have provided you with the finest quality product available.