$103 per square foot with an average of $89 per square foot. Based on his analysis, Mr. Wolff concluded that a value of $89 per square foot would be indicated for the subject property. With the subject property containing a total of 82,367 square feet of gross finished floor area, Mr. Wolff concluded that the fee simple value of the subject property indicated by the sales comparison approach is $7,330,663, which he rounded to $7,330,000 for fiscal year 2014. b. Income-capitalization approach Mr. Wolff conducted a single analysis under this approach applicable to both fiscal years at issue. He first decided to value separately the subject property’s non-refrigerator/freezer “dry” space and the refrigerator/freezer “cold” space. Mr. Wolff selected 10 purportedly comparable industrial market rental properties to value the “dry” warehouse space. The rentals that Mr. Wolff found to be most comparable are summarized below: # Location Tenant Area (sf) Date term $/sf NNN Comment 1 18 Dorrance St., Charlestown Alta Bicycle Share a/k/a Hubway 28,750 06/2012 4 yrs $4.50 multi-tenant warehouse const. in 1990, avg. condition 2 41 Bartlett St., Everett Confidential 9,047 02/2012 5 yrs $5.00 multi-tenant manufacturing building constr. in 1982, avg. condition
3 224 Crescent Ave., Chelsea Cinco DeMayo Mexican Food Corp. 24,045 11/2012 3 yrs $5.95 multi-tenant warehouse constr. in 1960, avg. condition 4 130 Eastern Ave., Chelsea Confidential 6,047 07/2012 3 yrs $12.00 multi-tenant warehouse constr. in 1965 renovated in 1986, avg. condition 5 191-201 Williams St., Chelsea Steele Canvas Basket Corporation 23,651 11/2011 5 yrs $8.50 multi-tenant manufacturing building constr. in 1970, renovated in 1986, avg. condition 6 174 Williams St., Chelsea Mystic Brewery 12,841 04/2011 5 yrs $6.50 multi-tenant manufacturing building, constr. in 1970, avg. condition 7 175 William F. McClellan Hwy., East Boston S&S Wholesale 6,345 07/2011 5 yrs $5.00 multi-tenant warehouse constr. in 1910, avg. condition 8 73 Norman St., Everett Distinctive Janitorial Services 13,046 07/2011 5 yrs $6.25 gross + util. multi-tenant warehouse condo building constr. in 1940, avg. condition 9 3-7 Griffin Way, Chelsea Cran Barry, Inc. 11,547 06/2011 $9.50 multi-tenant warehouse constr. in 1986, avg. condition 10 56 Vine St., Everett The Common Dog 12,134 07/2010 10 yrs $6.00 single-occupant warehouse constr. in 1950, renovated in 2004, avg. condition After making undisclosed adjustments to the above comparables for size, condition and location, Mr. Wolff claimed that the indicated adjusted average rent was $7.00 per square foot. He therefore opined that the market rent for the 57,101 square feet of “dry” warehouse space was
Mr. Petersen performed a single income-capitalization analysis applicable to both fiscal years at issue. First, Mr. Petersen selected 6 purportedly comparable industrial properties. Unlike Mr. Wolff, Mr. Petersen did not analyze separately the “cold” and “dry” spaces. He also selected different purportedly comparable properties. Pertinent details of Mr. Petersen’s comparable properties are summarized in the chart below: # Location Tenant Area (sf) Date Term $/SF Terms Comments Relative to Subject property 1 1 Griffin Way, Chelsea Hua Shing, Inc. 11,216 04/2010 5 yrs $9.94 NNN 11,216 sf food processing building with office space and 0-degree freezer space Similar 2 801 Jubilee Dr., Peabody Fishery Products Int’l 122,282 05/2007 7 yrs $11.00 NNN 1-story cold storage whse Superior 3 1 Fibertech Center (Lot #2), Haverhill General Mills 108,869 10/2013 10 yrs $9.00 NNN 1-story cold storage whse, nearly fully refrigerated Similar 4 1 Commercial St. Sharon Preferred Freezer Services 103,171 07/2005 25 yrs $13.91 (avg) NNN 2-story office, loading dock and mech. space, 75% freezer space with 52-ft ceiling height Superior 5 253 Williams St, Chelsea State Garden 52,133 06/2012 $9.38 (avg) NNN “shell condition” - State Garden brought in freeze/refrig. at own cost Inferior 6 220-240 Second St, Chelsea State Garden 36,000 05/2011 $9.00 (avg) NNN Multi-tenant bldg.; “shell condition” Inferior