APPRAISAL REPORTREAL ESTATE APPRAISAL
OfChina Fisheries North America, Inc.
246 South De Lacey Avenue, Pasadena
Los Angeles County
CA, 91105
As ofOctober 6, 2021
Prepared ForMr. Hua LiuChina Fisheries North America, Inc.
246 South De Lacey Avenue
Pasadena, CA, 91105
Prepared byEMPIRE VALUATION & ADVISORY SERVICES, INC.
Timothy G. Mings, MAI, CA-AG 006185
File Name:
21-230 Pasadena Office Condo
EMPIRE VALUATION & ADVISORY SERVICES, INC.
20261 Rim Ridge RoadWalnut,
| CA, 91789 |
909-374-6408
tim@empirevas.com
| empirevas.com |
October 11, 2021
Mr. Hua LiuChina Fisheries North America, Inc.246 South De Lacey AvenuePasadena, CA91105
| Re: | Appraisal Report, Real Estate Appraisal |
China Fisheries North America, Inc.246 South De Lacey Avenue, Pasadena,Los Angeles County, CA, 91105
Dear Mr. Liu:
At your request, I have prepared an appraisal for the above referenced property, which may be brieflydescribed as follows:
The subject is a 700 SF condominium unit located on the ground floor of a 4-story residential overcommercial building located at the southeast corner of South De Lacey Avenue and Orange Place inPasadena, CA. Surrounding uses include high density residential and commercial uses. There is coveredpatio area. The unit includes a private entrance, bathroom, enclosed offices, and 2 covered parkingspaces. HOA fees are relatively high for a commercial unit, paying for the cost of the pool, spa, andconcierge. The building has high quality, attractive finishes. The interior of the unit is in good condition.
This report may not contain supporting rationale for all of the opinions and conclusions set in the report.Please reference page 10 of this report for important information regarding the scope of research andanalysis for this appraisal, including property identification, inspection, highest and best use analysis andvaluation methodology.
I certify that I have no present or contemplated future interest in the property beyond this estimate ofvalue. The appraiser has not performed any prior services regarding the subject within the previous threeyears of the appraisal date.
Your attention is directed to the Limiting Conditions and Assumptions section of this report (page 8).Acceptance of this report constitutes an agreement with these conditions and assumptions. In particular,I note the following:
Hypothetical Conditions:
? There are no hypothetical conditions for this appraisal.
Extraordinary Assumptions:
? There are no Extraordinary Assumptions for this appraisal.
Based on the appraisal described in the accompanying report, subject to the Limiting Conditions andAssumptions, Extraordinary Assumptions and Hypothetical Conditions (if any), I have made thefollowing value conclusion(s):
Current As Is Market Value:
The “As Is” market value of the Fee Simple estate of the property, as of October 6, 2021, is
Six Hundred Twenty Thousand Dollars ($620,000)
The market exposure time preceding October 6, 2021 would have been 8 months and the estimatedmarketing period
as of October 6, 2021 is 8 months.
Respectfully submitted,Empire Valuation & Advisory Services, Inc.
CA-AG 006185
| Mr. Liu |
China Fisheries North America, Inc.
October 11, 2021
Page 2
TABLE OF CONTENTS
Summary of Important Facts and Conclusions ...... 5
Limiting Conditions and Assumptions ...... 8
Scope of Work ...... 10
Location Map ...... 12
Aerial Maps ...... 12
Plat Map ...... 13
Sales Comparison Approach ...... 19
Comparables ...... 19
Analysis Grid ...... 25
Sales Comparison Approach Conclusion ...... 26
Certification Statement ...... 27
Glossary ...... 28
Addenda ...... 33
Qualifications and Certification ...... 33
Summary of Important Facts and Conclusions
| GENERAL | |
| Subject: | |
246 South De Lacey Avenue, Pasadena,Los Angeles County, CA, 91105
The subject is a 700 SF condominium unit located on the groundfloor of a 4-story residential over commercial building located atthe southeast corner of South De Lacey Avenue and Orange Placein Pasadena, C
| A. Surrounding uses include high density |
residential and commercial uses. There is covered patio area. Theunit includes a private entrance, bathroom, enclosed offices, and2 covered parking spaces. HOA fees are relatively high for acommercial unit, payin
concierge. The building has high quality, attractive finishes. Theinterior of the unit is in good condition.
| Owner: | China Fisheries North America, Inc. |
| Legal Description: | See addenda |
| Date of Report: | October 11, 2021 |
| Intended Use: | The intended use is for internal decision making. |
| Intended User(s): | The client. |
Assessment:
| Real Estate Assessment and Taxes | ||||||
| Tax RateTaxes | ||||||
| 5713-023-041$124,346$292,157$416,503$4671.06609%$4,907 | ||||||
| Notes: | Proforma taxes are estimated using the direct capitalization method within the income approach. Per my review of the assessor's website, property taxes appear to be current. | |||||
| Sale History: | The subject has not sold in the last three years, according to |
public records. The subject last sold for $345,000 on December20, 2010.
| Current Listing/Contract(s): | The subject is not currently listed for sale, or under contract. |
Land:
| 5713-023-0410.5724,829LevelRectangular | ||||||
| Notes: | Condominium unit in a larger multistory residential over commercial project with covered parking | |||||
Improvements:
| Office2010Good700 | ||||
| Notes: | Ground floor unit, exterior patio, 2 covered stalls, concierge, small pool & spa, 2 elevators | |||
| Zoning: | Central District Specific Plan- (CD); Subdistrict: Old Pasadena |
(CD-1)
| Highest and Best Use |
of the Site:
| for future development | |
| Highest and Best Use as Improved: | continued commercial use |
| Type of Value: | Market Value |
VALUE INDICATIONSReconciled Value(s):
| Reconciled Value(s): | As Is |
| Value Conclusion(s) | $620,000 |
| Effective Date (s) | October 6, 2021 |
| Property Rights | Fee Simple |
Property Strengths and Weaknesses
Strengths, Opportunities, Potential? Modern, high image, good quality building;? Amenities, including covered parking, upper floor pool & spa, & concierge;? Downtown Pasadena location, walking distance to supporting commercial services.Weaknesses, Threats? Current market conditions are changing due to the economic slowdown from the pandemic
o Retail and office markets are being negatively impacted with declining demand;o To date, tenant demand and rental rates in the subject size range and market are stableo Demand for office space remains depressed, as many employees continue to work from
home;? No commercial exposure from the adjacent street, which has virtually no street traffic;? High HOA fees for amenities and facilities more amenable to residential uses.
Limiting Conditions and AssumptionsAcceptance of and/or use of this report constitutes acceptance of the following limiting conditions andassumptions; these can only be modified by written documents executed by both parties.
This appraisal is to be used only for the purpose stated herein. While distribution of this appraisal in itsentirety is at the discretion of the client, individual sections shall not be distributed; this report is intendedto be used in whole and not in part.
No part of this appraisal, its value estimates or the identity of the firm or the appraiser(s) may becommunicated to the public through advertising, public relations, media sales, or other media.
All files, work papers and documents developed in connection with this assignment are the property ofEmpire Valuation & Advisory Services, Inc.. Information, estimates and opinions are verified wherepossible, but cannot be guaranteed. Plans provided are intended to assist the client in visualizing theproperty; no other use of these plans is intended or permitted.
No hidden or unapparent conditions of the property, subsoil or structure, which would make the propertymore or less valuable, were discovered by the appraiser(s) or made known to the appraiser(s). Noresponsibility is assumed for such conditions or engineering necessary to discover them. Unlessotherwise stated, this appraisal assumes there is no existence of hazardous materials or conditions, inany form, on or near the subject property.
Unless otherwise stated in this report, the existence of hazardous substances, including without limitationasbestos, polychlorinated biphenyl, petroleum leakage, or agricultural chemicals, which may or may notbe present on the property, was not called to the attention of the appraiser nor did the appraiser becomeaware of such during the appraiser’s inspection. The appraiser has no knowledge of the existence of suchmaterials on or in the property unless otherwise stated. The appraiser, however, is not qualified to testfor such substances. The presence of such hazardous substances may affect the value of the property.The value opinion developed herein is predicated on the assumption that no such hazardous substancesexist on or in the property or in such proximity thereto, which would cause a loss in value. Noresponsibility is assumed for any such hazardous substances, nor for any expertise or knowledge requiredto discover them.
Unless stated herein, the property is assumed to be outside of areas where flood hazard insurance ismandatory. Maps used by public and private agencies to determine these areas are limited with respectto accuracy. Due diligence has been exercised in interpreting these maps, but no responsibility isassumed for misinterpretation.
Good title, free of liens, encumbrances and special assessments is assumed. No responsibility is assumedfor matters of a legal nature.
Necessary licenses, permits, consents, legislative or administrative authority from any local, state orFederal government or private entity are assumed to be in place or reasonably obtainable.
It is assumed there are no zoning violations, encroachments, easements or other restrictions which wouldaffect the subject property, unless otherwise stated.
The appraiser(s) are not required to give testimony in Court in connection with this appraisal. If theappraisers are subpoenaed pursuant to a court order, the client agrees to pay the appraiser(s) EmpireValuation & Advisory Services, Inc.’s regular per diem rate plus expenses.
Appraisals are based on the data available at the time the assignment is completed.Amendments/modifications to appraisals based on new information made available after the appraisalwas completed will be made, as soon as reasonably possible, for an additional fee.
Americans with Disabilities Act (ADA) of 1990A civil rights act passed by Congress guaranteeing individuals with disabilities equal opportunity inpublic accommodations, employment, transportation, government services, and telecommunications.Statutory deadlines become effective on various dates between 1990 and 1997. Empire Valuation &Advisory Services, Inc. has not made a determination regarding the subject’s ADA compliance or non-compliance. Non-compliance could have a negative impact on value, however this has not beenconsidered or analyzed in this appraisal.
Scope of WorkAccording to the Uniform Standards of Professional Appraisal Practice, it is the appraiser’sresponsibility to develop and report a scope of work that results in credible results that are appropriatefor the appraisal problem and intended user(s). Therefore, the appraiser must identify and consider:
● the client and names of intended users;
● the intended use of the report;
● the type and definition of value;
● the effective date of value;
● assignment conditions;
● typical client expectations; and
● typical appraisal work by peers for similar assignments.
This report may not contain supporting rationale for all of the opinions and conclusions set in the report.This appraisal is prepared for Mr. Hua Liu, China Fisheries North America, Inc. The problem to besolved is to estimate the 'as is' market value of the subject property. The intended use is for internaldecision making purposes. This appraisal is intended for the use of the client.
| SCOPE OF WORK | |
| Report Type: | This is an Appraisal Report as defined by Uniform Standards of Professional Appraisal Practice under |
Standards Rule 2-2(a). This format provides a summary
market data and valuation analyses.
| Property Identification: | The subject has been identified by the property address, |
assessors' parcel number and legal description. The sizeis based on LA County Assessor’s records.
| Inspection: | A complete interior and exterior inspection of the |
subject property has been made, and photographs taken.
| Market Area and Analysis of |
Market Conditions:
comprehensive databases for this market area and hasreviewed the market for sales and listings relevant tothis analysis.
| Highest and Best Use Analysis: |
use analysis for the subject has been made. Physically
| possible, legally permissible and financially feasible uses were considered, and the maximally productive |
use was concluded.
| Type of Value: | Market Value |
| Valuation Analyses | |
| Cost Approach: | A cost approach was not applied as there is inadequate data to develop a land value and the age of the |
| improvements makes the depreciation difficult to |
accurately measure. In addition, market participants arenot using cost to estimate market value.
| Sales Comparison Approach: |
| A sales approach was applied as there is adequate data |
to develop a value estimate and this approach reflectsmarket behavior for this property type.
| An income approach was not applied as while the |
subject could generate
probable buyer is an owner-occupant.
| an income stream, the most | ||
| Hypothetical Conditions: |
appraisal.
| Extraordinary Assumptions: |
appraisal.
| Information Not Available: | ? Building plans, preliminary title report, |
environmental, soils, property condition, roofreports
Location Map
Aerial Maps
Plat Map
Flood Map
Zoning Map
Subject Photographs
| Subject 4-story project, 3 stories of residential units over ground floor commercial. |
| Exterior patio area |
| Concierge desk in main lobby |
| Main lobby, not high-quality finishes |
| Offices |
| Reserved, covered parking |
| De Lacey facing north, subject to right |
| De Lacey facing south, subject to left |
Sales Comparison Approach
Comparables
| CompAddressDatePricePrice Per SFGBA | Notes | |||||
| GBAYear Built | ||||||
| 10/6/2021--$900.00700 | Ground floor unit with patio, 2 covered & reserved parking stalls, concierge, pool, spa, higher than typical HOA fees | |||||
| SubjectPasadena----7002010 | ||||||
| 7/21/2021$375,000$613.75611 | User, 2-story, 10.0 pkg, good quality TI's | |||||
| 1Hacienda Heights1114907$613.756111980 | ||||||
| 2139 S Hudson Ave7/2/2021$1,475,000$768.231,920 | User, 2-story, 4 parking spaces, 2 units, conference room, kitchen with stove | |||||
| 2Pasadena1039906$768.231,9202006 | ||||||
| 31401 Mission St6/30/2021$768,000$972.15790 | User, 2-story, 2 parking spaces, ground floor end unit on Freemont | |||||
| 3South Pasadena1027303$972.157902010 | ||||||
| 41001 Marengo Ave5/3/2021$1,250,000$1,146.791,090 | User, freestanding building, +/-15 parking stalls, 1-story, 9,591 2018 ADT | |||||
| 4Pasadena700804$1,146.791,0901922 | ||||||
| 12/1/2020$1,760,000$923.401,906 | User, ground floor unit in a 2-story office condo project, 52 parking spaces, 44,939 2020 ADT | |||||
| 5San Gabriel1543984$923.401,9062017 | ||||||
| Comparable 1 | ||
| Transaction | ||
| ID1194Date7/21/2021 | ||
| Address2440 S Hacienda BlvdPrice$375,000 | ||
| CityHacienda HeightsPrice Per SF$613.75 | ||
| CountyLos AngelesDocument No.1114907 | ||
| StateCAGrantorEc Investments, LLC | ||
| Zip91745GranteeLuis R Barrios | ||
| MarketSan Gabriel ValleyTransaction TypeSale | ||
| Tax ID8204-005-057Verification SourceKris Gunewardena | ||
| Distance14.8Days on Market79 | ||
| Land | ||
| AcresNAProperty RightsFee Simple | ||
| Land SFNAConditions of SaleTypical | ||
| Land to Building RatioNAFinancingCash to seller | ||
| NA | ||
| No. of Stories2Environmental IssuesNA | ||
| ConstructionWFSTime Stamp10/9/2021 | ||
| Improvements & Financial Data | ||
| GBA611PGINA | ||
| Year Built1980EGINA | ||
| RenovationsNAExpense RatioNA | ||
| ConditionAverageOccupancy0.0% | ||
| Ceiling HeightNANOI/SFNA | ||
| Pkg Ratio/1000SF9.8Cap RateNA | ||
| Comments | ||
| This is the July 2021 sale of a 611 SF condominium unit in a 2-story 39,191 SF building located on the east side of Hacienda Boulevard, south of Tetley Street, in Hacienda Heights. Surrounding uses are a mix of commercial and residential uses. The building was completed in 1980 parked at 10.0/1,000 SF. It was listed for $385,000 and sold to a user for $375,000, or $613.75 PSF. |
| ID1195Date7/2/2021 |
| Address139 S Hudson AvePrice$1,475,000 |
| CityPasadenaPrice Per SF$768.23 |
| CountyLos AngelesDocument No.1039906 |
| StateCAGrantorCalifornia Statewide Certified Development Corp |
| Zip91101GranteeCary Casey Fashion Group LLC |
| MarketSan Gabriel ValleyTransaction TypeSale |
| Tax ID5734-025-071,72Verification SourceScott Unger |
| Distance1.0Days on Market120 |
AcresNAProperty RightsFee Simple
| AcresNAProperty RightsFee Simple | ||
| Land SFNAConditions of SaleTypical | ||
| Land to Building RatioNAFinancingCash to seller | ||
| NA | ||
| No. of Stories2Environmental IssuesNA | ||
| ConstructionWFSTime Stamp10/9/2021 |
GBA1,920PGINA
| GBA1,920PGINA |
| Year Built2006EGINA |
| RenovationsNAExpense RatioNA |
| ConditionAverageOccupancy0.0% |
| Ceiling HeightNANOI/SFNA |
| Pkg Ratio/1000SF2.1Cap RateNA |
Improvements & Financial Data
Improvements & Financial Data
This is the July 2021 sale of 2 units totaling 1,920 SF in a 2-story building located on the west side ofHudson Avenue, north of Cordova Street, in the city of Pasadena. Surrounding uses are a mix of commercialand residential uses. It was completed in 2006 the unit includes 6 parking spaces. It was listed for $1,525,000and sold to a user for $1,475,000, or $768.23 PSF.
This is the July 2021 sale of 2 units totaling 1,920 SF in a 2-story building located on the west side ofHudson Avenue, north of Cordova Street, in the city of Pasadena. Surrounding uses are a mix of commercialand residential uses. It was completed in 2006 the unit includes 6 parking spaces. It was listed for $1,525,000and sold to a user for $1,475,000, or $768.23 PSF.
Comments
CommentsComparable 2
Comparable 2Transaction
TransactionLand
| ID1196Date6/30/2021 |
| Address1401 Mission StPrice$768,000 |
| CitySouth PasadenaPrice Per SF$972.15 |
| CountyLos AngelesDocument No.1027303 |
| StateCAGrantorSouth Pasadena Strings Program, LLC |
| Zip91030GranteeWilliam G Ericson Foundation |
| MarketSan Gabriel ValleyTransaction TypeSale |
| Tax ID5315-003-064Verification SourceCarol Chua-Vigue |
| Distance1.8Days on MarketNA |
AcresNAProperty RightsFee Simple
| AcresNAProperty RightsFee Simple | ||
| Land SFNAConditions of SaleTypical | ||
| Land to Building RatioNAFinancingCash to seller | ||
| NA | ||
| No. of Stories2Environmental IssuesNA | ||
| ConstructionMasonryTime Stamp10/9/2021 |
GBA790PGINA
| GBA790PGINA |
| Year Built2010EGINA |
| RenovationsNAExpense RatioNA |
| ConditionGoodOccupancy0.0% |
| Ceiling HeightNANOI/SFNA |
| Pkg Ratio/1000SF2.5Cap RateNA |
This is the June 2021 sale of a 790 SF condo unit that is part of an 18,290 SF 2-building, 2-story projectlocated at the southeast corner of Mission Street and Freemont Avenue in the city of South Pasadena.Surrounding uses are commercial in nature. It was completed in 2010 the unit includes 2 parking spaces. Itsold to a user for $768,000, or $972.15 PSF.
This is the June 2021 sale of a 790 SF condo unit that is part of an 18,290 SF 2-building, 2-story projectlocated at the southeast corner of Mission Street and Freemont Avenue in the city of South Pasadena.Surrounding uses are commercial in nature. It was completed in 2010 the unit includes 2 parking spaces. Itsold to a user for $768,000, or $972.15 PSF.
Improvements & Financial Data
Improvements & Financial DataTransaction
TransactionLand
LandComments
CommentsComparable 3
| ID1197Date5/3/2021 |
| Address1001 Marengo AvePrice$1,250,000 |
| CityPasadenaPrice Per SF$1,146.79 |
| CountyLos AngelesDocument No.700804 |
| StateCAGrantorColorado Boulevard Real Estate Investments |
| Zip91106GranteePeter Kwok Hin Fung and Julienne Yuen Ping Tam |
| MarketSan Gabriel ValleyTransaction TypeSale |
| Tax ID5720-017-010Verification SourceRandy Stevenson |
| Distance1.0Days on Market108 |
Acres0.2Property RightsFee Simple
| Acres0.2Property RightsFee Simple | ||
| Land SF8,712Conditions of SaleTypical | ||
| Land to Building Ratio7.99FinancingCash to seller | ||
| NA | ||
| No. of Stories1Environmental IssuesNA | ||
| ConstructionWFSTime Stamp10/9/2021 |
GBA1,090PGINA
| GBA1,090PGINA |
| Year Built1922EGINA |
| RenovationsYesExpense RatioNA |
| ConditionAverageOccupancy0.0% |
| Ceiling HeightNANOI/SFNA |
| Pkg Ratio/1000SF13.8Cap RateNA |
Transaction
TransactionComments
CommentsLand
Land
This is the May 2021 sale of a 1,090 SF freestanding office building situated on 8,712 SF lot with +/- 15parking stalls. It is located on the west side of Marengo Avenue, north of Glenarm Street, in the city ofPasadena. Surrounding uses are commercial in nature. This is a 1-story building constructed in 1922. It wasrenovated over the years. It was listed for $1,225,000 sold to a user for $1,250,000, or $1,146.79 PSF.
This is the May 2021 sale of a 1,090 SF freestanding office building situated on 8,712 SF lot with +/- 15parking stalls. It is located on the west side of Marengo Avenue, north of Glenarm Street, in the city ofPasadena. Surrounding uses are commercial in nature. This is a 1-story building constructed in 1922. It wasrenovated over the years. It was listed for $1,225,000 sold to a user for $1,250,000, or $1,146.79 PSF.
Improvements & Financial Data
Improvements & Financial DataComparable 4
| ID1198Date12/1/2020 |
| Address7232 Rosemead BlvdPrice$1,760,000 |
| CitySan GabrielPrice Per SF$923.40 |
| CountyLos AngelesDocument No.1543984 |
| StateCAGrantorGem01738 Investments LLC |
| Zip91775GranteeHY, LLC |
| MarketSan Gabriel ValleyTransaction TypeSale |
| Tax ID5379-032-044Verification SourceStephen Chan |
| Distance4.6Days on MarketNA |
AcresNAProperty RightsFee Simple
| AcresNAProperty RightsFee Simple | ||
| Land SFNAConditions of SaleTypical | ||
| Land to Building RatioNAFinancingCash to seller | ||
| NA | ||
| No. of Stories2Environmental IssuesNA | ||
| ConstructionMasonryTime Stamp10/9/2021 |
GBA1,906PGINA
| GBA1,906PGINA |
| Year Built2017EGINA |
| RenovationsNAExpense RatioNA |
| ConditionNewOccupancy0.0% |
| Ceiling HeightNANOI/SFNA |
| Pkg Ratio/1000SF1.1Cap RateNA |
Land
LandImprovements & Financial Data
Improvements & Financial DataComparable 5
Comparable 5
This is the December 2020 sale of a 1,906 SF condo unit that is part of an 15,000 SF 2-building. It is located on the eastside of Rosemead Boulevard, north of E Fairview Avenue, in the city of San Gabriel. Surrounding uses are commercialin nature. The 2020 average daily traffic was 44,939. This a ground floor unit in the project. It was completed in 2017the project includes 52 parking spaces. It was marketed as medical office space; however, the space was sold in a vanillashell condition. It sold to a user for $1,760,000, or $923.40 PSF. Other units sold between 2017 and 2019 ranging insize from 1,120 to 1,332 SF sold for $697 to $754 PSF. There are three second floor units listed for sale, 1,162 SF at$724 PSF 1332 SF t $732 PSF d 1273 SF t $766 PSF
This is the December 2020 sale of a 1,906 SF condo unit that is part of an 15,000 SF 2-building. It is located on the eastside of Rosemead Boulevard, north of E Fairview Avenue, in the city of San Gabriel. Surrounding uses are commercialin nature. The 2020 average daily traffic was 44,939. This a ground floor unit in the project. It was completed in 2017the project includes 52 parking spaces. It was marketed as medical office space; however, the space was sold in a vanillashell condition. It sold to a user for $1,760,000, or $923.40 PSF. Other units sold between 2017 and 2019 ranging insize from 1,120 to 1,332 SF sold for $697 to $754 PSF. There are three second floor units listed for sale, 1,162 SF at$724 PSF 1332 SF t $732 PSF d 1273 SF t $766 PSF
Comments
CommentsTransaction
Analysis Grid
| Address |
| City |
| State |
| Date |
| Price |
| GBA |
GBA Unit PriceProperty Rights
Fee Simple
0.0%
Fee Simple
0.0%
Fee Simple
0.0%
Fee Simple
0.0%
Fee Simple
0.0%
Financing
Cash to seller
0.0%
Cash to seller
0.0%
Cash to seller
0.0%
Cash to seller
0.0%
Cash to seller
0.0%
Conditions of SaleTypical0.0%Typical0.0%Typical0.0%Typical0.0%Typical0.0%
Market Trends Through10/6/2021
0.0%
Location
| Analysis Grid | Comp 1 | Comp 2 | Comp 3 | Comp 4 | Comp 5 | |||||||
| Economic Characteristics | 246 South De | 2440 S Hacienda ld | 139 S Hudson | 1401 Mission St | 1001 Marengo | 7232 Rosemead ld | ||||||
| Pasadena | Hacienda Heights | Pasadena | South Pasadena | Pasadena | San Gabriel | |||||||
| CA | CA | CA | CA | CA | CA | |||||||
| 10/6/2021 | 7/21/2021 | 7/2/2021 | 6/30/2021 | 5/3/2021 | 12/1/2020 | |||||||
| -- | $375,000 | $1,475,000 | $768,000 | $1,250,000 | $1,760,000 | |||||||
| 700 | 611 | 1,920 | 790 | 1,090 | 1,906 | |||||||
| -- | $613.75 | $768.23 | $972.15 | $1,146.79 | $923.40 | |||||||
| Transaction Adjustments | ||||||||||||
| Fee Simple | ||||||||||||
| Conventional | ||||||||||||
| Adjusted GBA Unit Price | $613.75 | $768.23 | $972.15 | $1,146.79 | $923.40 | |||||||
| 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | ||||||||
| Adjusted GBA Unit Price | $613.75 | $768.23 | $972.15 | $1,146.79 | $923.40 | |||||||
| 15.0% | 0.0% | -10.0% | -5.0% | -10.0% | ||||||||
| $92.06 | $0.00 | -$97.22 | -$57.34 | -$92.34 | ||||||||
| 700 | 611 | 1,920 | 790 | 1,090 | 1,906 | |||||||
| -2.0% | 15.0% | 2.0% | 4.0% | 15.0% | ||||||||
| -$12.27 | $115.23 | $19.44 | $45.87 | $138.51 | ||||||||
| 2010 | 1980 | 2006 | 2010 | 1922 | 2017 | |||||||
| 15.0% | 0.0% | 0.0% | 20.0% | -4.0% | ||||||||
| $92.06 | $0.00 | $0.00 | $229.36 | -$36.94 | ||||||||
| 20.0% | 0.0% | 7.5% | -20.0% | 0.0% | ||||||||
| $122.75 | $0.00 | $72.91 | -$229.36 | $0.00 | ||||||||
| 2.86 spaces per | 9.8 | 2.1 | 2.5 | 13.8 | 3.5 | |||||||
| -15.0% | 0.0% | 0.0% | -15.0% | -2.0% | ||||||||
| -$92.06 | $0.00 | $0.00 | -$172.02 | -$18.47 | ||||||||
| % Adjustment | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | |||||||
| $ Adjustment | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | |||||||
| Adjusted GBA Unit Price | $816.28 | $883.46 | $967.29 | $963.30 | $914.17 | |||||||
| Net Adjustments | 33.0% | 15.0% | -0.5% | -16.0% | -1.0% | |||||||
| Gross Adjustments | 67.0% | 15.0% | 19.5% | 64.0% | 31.0% | |||||||
Sales Comparison Approach Conclusion
5% Δ
33%-16%3%
| $923.40$1,250,000.00gba | ||||
| Number of Comps: | Unadjusted | Adjusted | ||
| $613.75 | $816.28 | |||
| High: | $1,146.79 | |||
| Average: | $884.86 | $908.90 | ||
| Median: | ||||
| Reconciled Value/Unit Value: | $890.00 | |||
| Subject Size: | 700 | |||
| Indicated Hypothetical Stabilized Value: | $620,000 | |||
| Less Lease Up Discount | $0 | |||
| Reconciled As Is Value: | $620,000 | |||
| Six Hundred Twenty Thousand Dollars | ||||
Value Ranges & Reconciled Value
Value Ranges & Reconciled Value$967.29
$967.29Low:
Certification StatementI certify that, to the best of my knowledge and belief:
? 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, impartial, and unbiased professional analyses, opinionsand conclusions.
? I have no present or prospective future interest in the property that is the subject of this report, andhave no personal interest with respect to the parties involved.
? I have no bias with respect to the property that is the subject of this report, or to the partiesinvolved with this assignment.
? My engagement in this assignment was not contingent upon developing or reporting predeterminedresults.
? My compensation for completing this assignment is not contingent upon the development orreporting of a predetermined value or direction in value that favors the cause of the client, theamount of the value estimate, the attainment of a stipulated result, or the occurrence of asubsequent event directly related to the intended use of this appraisal.
? My analyses, opinions, and conclusions were developed, and this report has been prepared, inconformity with the Uniform Standards of Professional Appraisal Practice (USPAP).
? No one provided significant real property appraisal assistance to the person(s) signing this
certification.
? I certify sufficient competence to appraise this property through education and experience, in
addition to the internal resources of the appraisal firm.
? The appraiser has not performed any prior services regarding the subject within the previous threeyears of the appraisal date.
? Timothy G. Mings has made an inspection of the subject property.
? -- -- has made an inspection of the subject property.
Timothy G. Mings, MAI
Glossary
This glossary contains the definitions of common words and phrases, used throughout the appraisalindustry, as applied within this document. Please refer to the publications listed in the Works Citedsection below for more information.
Works Cited:
? Appraisal Institute. The Appraisal of Real Estate. 14th ed. Chicago: Appraisal Institute, 2013.Print.? Appraisal Institute. The Dictionary of Real Estate Appraisal. 6th ed. 2015. Print.
Band of InvestmentA technique in which the capitalization ratesattributable to components of a capitalinvestment are weighted and combined to derivea weighted-average rate attributable to the totalinvestment. (Dictionary, 6th Edition)
Common Area
1. The total area within a property that is not
designed for sale or rental but is available forcommon use by all owners, tenants, or theirinvitees, e.g., parking and its appurtenances,malls, sidewalks, landscaped areas,recreation areas, public toilets, truck andservice facilities.
2. In a shopping center, the walkways and areas
onto which the stores face and whichconduct the flow of customer traffic. (ICSC)(Dictionary, 6th Edition)
Common Area Maintenance (CAM)
1. The expense of operating and maintaining
common areas; may or may not includemanagement charges and usually does notinclude capital expenditures on tenantimprovements or other improvements to theproperty.? CAM can be a line-item expense for a
group of items that can includemaintenance of the parking lot andlandscaped areas and sometimes theexterior walls of the buildings.? CAM can refer to all operating expenses.? CAM can refer to the reimbursement by
the tenant to the landlord for all expensesreimbursable under the lease. Sometimesreimbursements have what is called anadministrative load. An example would
be a 15% addition to total operatingexpenses, which are then proratedamong tenants. The administrative load,also called an administrative andmarketing fee, can be a substitute for oran addition to a management fee.
2. The amount of money charged to tenants for
their shares of maintaining a center’scommon area. The charge that a tenant paysfor shared services and facilities such aselectricity, security, and maintenance ofparking lots. The area maintained incommon by all tenants, such as parking lotsand common passages. The area is oftendefined in the lease and may or may notinclude all physical area to be paid for by alltenants. Items charged to common areamaintenance may include cleaning services,parking lot sweeping and maintenances,snow removal, security, and upkeep. (ICSC)(Dictionary, 6th Edition)
Debt Coverage Ratio (DCR)The ratio of net operating income to annual debtservice (DCR = NOI/Im), which measures therelative ability of a property to meet its debtservice out of net operating income; also calleddebt service coverage ratio (DSCR). A largerDCR indicates a greater ability for a property towithstand a downturn in revenue, providing animproved safety margin for a lender.(Dictionary, 6th Edition)
Discount RateA yield rate used to convert future payments orreceipts into present value; usually considered to
be a synonym for yield rate. (Dictionary, 6thEdition)
Effective AgeThe age of property that is based on the amountof observed deterioration and obsolescence ithas sustained, which may be different from itschronological age. (Dictionary, 6th Edition)
Effective Date
1. The date on which the analyses, opinion, and
advice in an appraisal, review, or consultingservice apply.
2. In a lease document, the date upon which the
lease goes into effect. (Dictionary, 6thEdition)
Exposure Time
1. The time a property remains on the market.
2. The estimated length of time the property
interest being appraised would have beenoffered on the market prior to thehypothetical consummation of a sale atmarket value on the effective date of theappraisal; a retrospective estimate based onan analysis of past events assuming acompetitive and open market. (Dictionary,6th Edition)
External ObsolescenceAn element of depreciation; a diminution invalue caused by negative externalities andgenerally incurable on the part of the owner,landlord, tenant. (Dictionary, 6th Edition)
Extraordinary AssumptionAn assumption, directly related to a specificassignment, which, if found to be false, couldalter the appraiser’s opinions or conclusions.Extraordinary assumptions presume as factotherwise uncertain information about physical,legal, or economic characteristics of the subjectproperty; or about conditions external to theproperty such as market conditions or trends; orabout the integrity of data used in an analysis.(USPAP, 2020-2022 ed.) (Dictionary, 6thEdition)
Fee Simple EstateAbsolute ownership unencumbered by any otherinterest or estate, subject only to the limitationsimposed by the governmental powers oftaxation, eminent domain, police power, andescheat. (Dictionary, 6th Edition)
Functional ObsolescenceThe impairment of functional capacity of aproperty according to market tastes andstandards. (Dictionary, 6th Edition)
Functional UtilityThe ability of a property or building to be usefuland o perform the function for which it isintended according to current market tastes andstandards; the efficiency of a building’s use interms of architectural style, design and layout,traffic patterns, and the size and type of rooms.(The Appraisal of Real Estate, 14th Edition)
Gross Building Area (GBA)Total floor area of a building, excludingunenclosed areas, measured from the exterior ofthe walls of the above-grade area. This includesmezzanines and basements if and when typicallyincluded in the region. (Dictionary, 6th Edition)
Gross Leasable Area (GLA)Total floor area designed for the occupancy andexclusive use of tenants, including basementsand mezzanines; measured from the center ofjoint partitioning to the outside wall surfaces.(Dictionary, 6th Edition)
Highest & Best UseThe reasonably probable and legal use of vacantland or an improved property that is physicallypossible, appropriately supported, financiallyfeasible, and that results in the highest value.The four criteria the highest and best use mustmeet are legal permissibility, physicalpossibility, financial feasibility, and maximumproductivity. Alternatively, the probable use ofland or improved property—specific withrespect to the user and timing of the use—that isadequately supported and results in the highestpresent value. (Dictionary, 6th Edition)
Highest and Best Use of Land or a Site asThough VacantAmong all reasonable, alternative uses, the usethat yields the highest present land value, afterpayments are made for labor, capital, andcoordination. The use of a property based on theassumption that the parcel of land is vacant orcan be made vacant by demolishing anyimprovements. (Dictionary, 6th Edition)
Highest and Best Use of Property asImprovedThe use that should be made of a property as itexists. An existing improvement should berenovated or retained as is so long as it continuesto contribute to the total market value of theproperty, or until the return from a newimprovement would more than offset the cost ofdemolishing the existing building andconstructing a new one. (Dictionary, 6thEdition)
Hypothetical ConditionThat which is contrary to what exists but issupposed for the purpose of analysis.Hypothetical conditions assume conditionscontrary to known facts about physical, legal, oreconomic characteristics of the subject property;or about conditions external to the property,such as market conditions or trends; or about theintegrity of data used in an analysis. (Dictionary,6th Edition)
Leased Fee InterestA freehold (ownership interest) where thepossessory interest has been granted to anotherparty by creation of a contractual landlord-tenant relationship (i.e., a lease). (Dictionary,6th Edition)
Market AreaThe area associated with a subject property thatcontains its direct competition. (Dictionary, 6thEdition)
Market RentThe most probably rent that a property shouldbring is a competitive and open marketreflecting all conditions and restrictions of the
lease agreement, including permitted uses, userestrictions, expense obligations, term,concessions, renewal and purchase options, andtenant improvements (TIs). (Dictionary, 6thEdition)
Market ValueThe major focus of most real property appraisalassignments. Both economic and legaldefinitions of market value have been developedand refined.
1. The most widely accepted components of
market value are incorporated in thefollowing definition: The most probableprice that the specified property interestshould sell for in a competitive market aftera reasonable exposure time, as of a specifieddate, in cash, or in terms equivalent to cash,under all conditions requisite to a fair sale,with the buyer and seller each actingprudently, knowledgeably, for self-interest,and assuming that neither is under duress.
2. Market value is described in the Uniform
Standards of Professional Appraisal Practice(USPAP) as follows: A type of value, statedas an opinion, that presumes the transfer of aproperty (i.e., a right of ownership or abundle of such rights), as of a certain date,under specific conditions set forth in thedefinition of the term identified by theappraiser as applicable in an appraisal.(USPAP, 2020-2022 ed.) USPAP alsorequires that certain items be included inevery appraisal report. Among these items,the following are directly related to thedefinition of market value:
? Identification of the specific property
rights to be appraised.? Statement of the effective date of thevalue opinion.? Specification as to whether cash, terms
equivalent to cash, or other precisely
described financing terms are assumed as
the basis of the appraisal.? If the appraisal is conditioned upon
financing or other terms, specification as
to whether the financing or terms are at,
below, or above market interest rates
and/or contain unusual conditions or
incentives. The terms of above—orbelow—market interest rates and/orother special incentives must be clearlyset forth; their contribution to, ornegative influence on, value must bedescribed and estimated; and the marketdata supporting the opinion of valuemust be described and explained.
3. The following definition of market value is
used by agencies that regulate federallyinsured financial institutions in the UnitedStates: The most probable price that aproperty should bring in a competitive andopen market under all conditions requisite toa fair sale, the buyer and the seller eachacting prudently and knowledgeably, andassuming the price is not affected by unduestimulus. Implicit in this definition is theconsummation of a sale as of a specified dateand the passing of title from seller to buyerunder conditions whereby:
? Buyer and seller are typically motivated;? Both parties are well informed or well
advised, and acting in what they considertheir best interests;? A reasonable time is allowed forexposure in the open market;? Payment is made in terms of cash in U.S.dollars or in terms of financialarrangements comparable thereto; and? The price represents the normalconsideration for the property soldunaffected by special or creativefinancing or sales concessions granted byanyone associated with the sale. (12C.F.R. Part 34.42(g); 55 Federal Register34696, August 24, 1990, as amended at57 Federal Register 12202, April 9,1992; 59 Federal Register 29499, June 7,1994)
4. The International Valuation Standards
Council defines market value for the purposeof international standards as follows: Theestimated amount for which a propertyshould exchange on the date of valuationbetween a willing buyer and a willing sellerin an arm’s-length transaction after proper
marketing wherein the parties had each actedknowledgeably, prudently, and withoutcompulsion. (International ValuationStandards, 8th ed., 2007)
5. Market value is the amount in cash, or on
terms reasonably equivalent to cash, forwhich in all probability the property wouldhave sold on the effective date of theappraisal, after a reasonable exposure of timeon the open competitive market, from awilling and reasonably knowledgeable sellerto a willing and reasonably knowledgeablebuyer, with neither acting under anycompulsion to buy or sell, giving dueconsideration to all available economic usesof the property at the time of the appraisal.(Uniform Standards for Federal LandAcquisitions) (Dictionary, 6th Edition)
Marketing TimeAn opinion of the amount of time it might taketo sell a real or personal property interest at theconcluded market value level during the periodimmediately after the effective date of theappraisal. Marketing time differs from exposuretime, which is always presumed to precede theeffective date of an appraisal. (AdvisoryOpinion 7 of the Standards Board of TheAppraisal Foundation and Statement onAppraisal Standards No. 6, “ReasonableExposure Time in Real Property and PersonalProperty Market Value Opinions” address thedetermination of reasonable exposure andmarketing time). (Dictionary, 6th Edition)
Net Operating Income (NOI)The actual or anticipated net income thatremains after all operating expenses arededucted from effective gross income but beforemortgage debt service and book depreciation arededucted. (Dictionary, 6th Edition)
ObsolescenceOne cause of depreciation; an impairment ofdesirability and usefulness caused by newinventions, changes in design, improvedprocesses for production, or external factors thatmake a property less desirable and valuable for
a continued use; may be either functional orexternal. (Dictionary, 6th Edition)
Parking RatioA ratio of parking area or parking spaces to aneconomic or physical unit of comparison.Minimum required parking ratios of variousland uses are often stated in zoning ordinances.(Dictionary, 6th Edition)
Rentable AreaFor office buildings, the tenant’s pro rata portionof the entire office floor, excluding elements ofthe building that penetrate through the floor tothe areas below. The rentable area of a floor iscomputed by measuring to the inside finishedsurface of the dominant portion of the permanentbuilding walls, excluding any major verticalpenetrations of the floor. Alternatively, theamount of space on which the rent is based;calculated according to local practice.(Dictionary, 6th Edition)
Replacement CostThe estimated cost to construct, at current pricesas of the effective appraisal date, a substitute forthe building being appraised, using modernmaterials and current standards, design, andlayout. (Dictionary, 6th Edition)
Scope of Work
The type and extent of research and analyses inan assignment. (Dictionary, 6th Edition)
Stabilized OccupancyAn expression of the expected occupancy of aproperty in its particular market consideringcurrent and forecasted supply and demand,assuming it is priced at market rent. (Dictionary,6th Edition)
Tenant Improvements (TIs)
1. Fixed improvements to the land or structures
installed and paid for use by a lessee.
2. The original installation of finished tenant
space in a construction project; subject toperiodic change for succeeding tenants.(Dictionary, 6th Edition)
Vacancy and Collection LossA deduction from potential gross income (PGI)made to reflect income reductions due tovacancies, tenant turnover, and non-payment ofrent; also called vacancy and credit loss orvacancy and contingency loss. Often vacancyand collection loss is expressed as a percentageof potential gross income and should reflect thecompetitive market. Its treatment can differaccording to the interest being appraised,property type, capitalization method, andwhether the property is at stabilized occupancy.(Dictionary, 6th Edition)
Addenda
Qualifications and Certification
PROFESSIONAL PROFILE
Timothy G. Mings, MAI provides valuation and advisory services for incomeproducing properties. Tim started working for CBRE in 1987, working in theOntario office of CBRE Valuation & Advisory Services since its opening 1999 and2014. Mr. Mings’ extensive experience includes the valuation of all propertytypes, including apartments, office industrial, retail, and land, for the southernCalifornia metropolitan area, focusing on the Inland Empire. He also providespartial interest valuation services.
REPRESENTATIVE ASSIGNMENTS
Property Name Property Type Description? LBA Inland Empire Portfolio, MiraLoma, Ontario
Single and multitenantoffice & industrial
Over 3 million SF? Alere Inland Empire Portfolio,Riverside, Ontario, Mira Loma
Industrial Over 5 million SF
? Panattoni Inland Empire,
Beaumont, Chino, Ontario,Rancho Cucamonga
Industrial, retail, mixeduse land
Multiple projects for national
developer over 20 years
? Whirlpool & Hanes Distribution
Facilities, Perris.
Industrial 2 single tenant facilities
totaling over 3 million SF
? CalSTRS Inland Empire Land-
Perris, Moreno Valley, AppleValley
Industrial land 13 industrial sites and 800K
SF distribution facility
? Piemonte, Ontario Mixed use, office, retail,
hotel, residential, land
Large mixed use land and
improved project with city’s
arena
? Canyon Springs Marketplace,
Riverside
Mixed use, retail, office,land
Power center, 50+acres of
retail, office, and industrial
land
? Claremont Colleges Office, Industrial, gravel
pit, land
Consortium owned university
assets
TIMOTHY G. MINGS, MAIEmpire Valuation &Advisory Services, Inc.T. +1 909 374-6408Tim@empirevas.comCLIENTS REPRESENTED?Claremont CollegeConsortium?City of Ontario?Pomona ValleyHospital?Manulife?Principal LifeInsurance?Comerica Bank?Wells Fargo Bank?Cathay Bank?Preferred Bank?Farmers & MerchantsBank?HillwoodDevelopment?Sares Regis?Prologis?IDS Real EstateGroup?PanattoniDevelopment?Ridge Property Trust?Alere Property Group?KTR Capital Partners?C-III AssetManagement?Stater Bros?
| Rite Aid |
PROFESSIONAL PROFILE
EXPERIENCE
Specializing in Inland Empire properties. Experience includes valuation of the following propertytypes:
Truck Terminals All Types of Retail CentersMixed-Use DevelopmentProject
All Types of LandResearch and Development Business ParksParking Facilities Film Production StudioMovie Theaters ApartmentsSubdivisions Market AnalysisNet Leased Investments Medical OfficeMarket Feasibility Analysis Educational FacilitiesRight of Way Valuations Youth Rehabilitation CentersGravel Pits Food Storage & ProcessingPartial Interest Valuations Leasehold/Leased Fee InterestsAll Types of IndustrialProperties
Office BuildingsEDUCATION? University of Southern California, Bachelor of Arts, Real Estate Finance – June 1987APPRAISAL INSTITUTE COURSES AND SEMINARS
Appraisal of Real Estate (USC)Litigation Skills for the
Appraiser
Expert Witness & PreparationCapitalization Theory andTechniques
Market Trends in SouthernCalifornia
Technical Inspection of
Commercial Real Estate rBusiness Practices & Ethics Office Building Valuation Standards of Professional
Practice
Basic Valuation Procedures Operating Expenses Trends Experience Review ScreenerCost Estimation Workshop Real Estate Appraisal
Principals
Trends in Hospitality IndustryLand and EnvironmentalIssues
Real Estate Investment (USC) Residential Subdivision
AnalysisBusiness Value Reporting Writing and
Valuation Analysis
Market Trends In The Inland
Empire
Small & Mixed Use PropertiesReal Estate Law (USC) Urban Land TheoryCase Studies in Partnership &Common Tenancy
Appraisal Institute AppraisalExperience Committee Review
Trends in Real Estate Debt
and EquityCREDENTIALSProfessional Affiliations/Accreditations/Certifications? Member, Appraisal Institute (MAI No. 10,258)? California General Certified (Appraiser No. AG006185)? Member National Association of Industrial and Office Professionals (NAIOP)