Property Appraisal Summary - Portland Development Commission

Transcription

SUMMARY APPRAISAL REPORT
SUBJECT PROPERTY
Commercial Redevelopment Site
10506-10512 & 10520 NE Halsey St
Portland, OR 97220
PREPARED FOR
Justin Douglas
Portland Development Commission
222 NW Fifth Ave
Portland, OR 97209-3859
PREPARED BY
W. Grant Norling
Todd S. Liebow MAI
December 9, 2008
Justin Douglas
Portland Development Commission
222 NW Fifth Ave
Portland, OR 97209-3859
RE:
10506-10512 & 10520 NE Halsey St
Portland, OR 97220
Mr. Douglas:
In accordance with your request, we have appraised the above captioned property using generally
accepted appraisal principles and theory. This appraisal report is intended to conform with the
current Uniform Standards of Professional Appraisal Practice (USPAP) and the appraisal scope
provided by the Portland Development Commission.
At the request of the client, this appraisal is presented in a summary report format as defined by
USPAP Standards Rule 2-2(b). This format provides a summarized description of the appraisal
process, subject and market data and valuation analyses.
The purpose of this appraisal is to estimate the As-Is Market Value of the subject property. The
subject site is described in the report. The following table summarizes the estimated value
conclusions, based upon our investigation and analysis of available information:
VALUE SCENARIO(S)
INTEREST APPRAISED
DATE
VALUE
As-Is Market Value
Fee Simple
December 2, 2008
$4,930,000
The subject is a partially improved commercial site located at the corner of NE Halsey St and
NE 106th Ave within Gateway District of northeast Portland. The current improvements consist
of a fair/average condition commercial building formerly occupied by a restaurant and banquet
user. The improvements are at or near the end of their economic life and serve only as an
interim value contributor as their short-term income likely would offset any prospective
demolition costs. Therefore, no deduction is made to the site value to arrive at the As-Is Market
Value of the subject property. Please refer to the Assumptions and Limiting Conditions section
within this report for the specific hypothetical conditions and extraordinary assumptions applied
in the following analysis.
110 SW Yamhill Street, Suite 200
Portland, OR 97204
National-International Real Estate Appraisal,
Consulting & Advisory Services
www.pgpinc.com
LETTER OF TRANSMITTAL (CONTINUED)
This valuation was prepared by the undersigned. Brandon S. Henderson (OR State Registered
Appraiser Assistant No. AA02351) provided significant assistance in the research and
preparation of this report. If questions arise concerning this report, please contact W. Grant
Norling.
Sincerely,
PGP Valuation Inc
W. Grant Norling
Certified General Real Estate Appraiser
State of Oregon License #C000792
503.542.5416
[email protected]
Todd S. Liebow MAI
Certified General Real Estate Appraiser
State of Oregon License # C000152
503.226.0983
[email protected]
COPYRIGHT © 2008 PGP VALUATION INC. ALL RIGHTS RESERVED.
TABLE OF CONTENTS
Letter of Transmittal
INTRODUCTION
Executive Summary _________________________________________________________ 1
Appraisal Summary _________________________________________________________ 1
Valuation Summary _________________________________________________________ 1
Scope of Work _____________________________________________________________ 2
Preliminary Appraisal Information_______________________________________________ 4
Assumptions and Limiting Conditions____________________________________________ 6
DESCRIPTION
Market Area Description ______________________________________________________ 8
Market Area Map __________________________________________________________ 10
Site Description ___________________________________________________________ 11
Aerial Photograph__________________________________________________________ 14
Plat Map _________________________________________________________________ 15
Zoning Map ______________________________________________________________ 16
Flood Map _______________________________________________________________ 17
Gateway Plan District Map ___________________________________________________ 18
Maximum Height Map ______________________________________________________ 19
Floor to Area Ratios Map ____________________________________________________ 20
Subject Property Photographs ________________________________________________ 21
Market Analysis ___________________________________________________________ 24
Highest and Best Use_______________________________________________________ 26
VALUATION
Valuation Methodology ______________________________________________________ 27
Site Valuation _____________________________________________________________ 27
Land Sales Summation Table ________________________________________________ 29
Land Sales Comparable Location Map _________________________________________ 30
Analysis of Value Conclusions ________________________________________________ 33
CERTIFICATION
Certificate of Appraisal ______________________________________________________ 34
ADDENDA
Qualifications of PGP Valuation Inc
Qualifications of Appraisers
C081313
I
EXECUTIVE SUMMARY
APPRAISAL SUMMARY
Property Type:
Address:
10506-10512 & 10520 NE Halsey St
Portland, OR
Assessor’s Parcel Nos.:
R320039, R320001 & R320014
Site Description:
SizeGross:
Net:
Shape:
Topography:
Zoning:
Plan District:
Seismic Zone:
Flood Zone:
4.18 acres (182,081 SF)
3.59 acres (156,197 SF); excludes right-of-way dedication
Irregular (functional)
Level
CXd (Central Commercial w/design overlay)
Gateway Plan District
3
X
Highest & Best Use:
As Vacant:
As Improved:
A commercial or residential mixed-use
Demolition of the existing improvements and redevelopment
as a commercial mixed-use site. The existing improvements
are suitable as an interim use.
Property Rights Appraised:
Fee Simple interest
PGP File Number:
C081313
VALUATION SUMMARY
VALUE CONCLUSION(S)
Cost Approach
Not Presented
Income Approach
Not Presented
Sales Comparison Approach
As-Is Market Value
C081313
$4,930,000
Interest Appraised
Date of Value
Value Conclusion(s)
Fee Simple
December 2, 2008
$4,930,000
1
EXECUTIVE SUMMARY (CONTINUED)
SCOPE OF WORK
Report Organization
This report is designed to inform the reader of all factors influencing the property's value in a
clear and concise manner. The Executive Summary section provides an overview of the
property and general information related to this report. The Description sections briefly describe
general area information and present detailed explanations of the site. The Highest and Best
Use section establishes the premise on which the value estimate of the property is based. The
Valuation section describes the appraisal methods used to estimate the various values of the
property and includes comparable information, application of market information to the subject
and valuation analysis. This appraisal utilizes the Sales Comparison Approach to estimate the
As Is market value of the subject site.
Purpose, Use, and Users of the Appraisal
The purpose of this appraisal is to estimate the As-Is market value of the subject property’s Fee
Simple interest. This appraisal is to be used by the client (Portland Development Commission
and/or Assigns) for internal decision making and acquisition purposes.
Market Value
The most probable price which a property should bring in a competitive and open market under
all conditions requisite to a fair sale, the buyer and seller each acting prudently,
knowledgeably, and assuming that the price is not affected by undue stimulus. Implicit in this
definition is the consummation of a sale as of a specified date and the passing of title from seller
to buyer under conditions whereby:
1. Buyer and seller are typically motivated;
2. Both parties are well informed or well advised, and acting in what they consider their own
best interests;
3. A reasonable time is allowed for exposure in the open market;
4. Payment is made in terms of cash in United States dollars or in terms of financial
arrangements comparable thereto; and
5. The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale.1
1
Office of Comptroller of the Currency (OCC), Title 12 of the Code of Federal Regulation, Part 34, Subpart C - Appraisals, 34.42 (g);
Office of Thrift Supervision (OTS), 12 CFR 564.2 (g); This is also compatible with the RTC, FDIC, FRS and NCUA definitions of
market value.
C081313
2
Property Rights Appraised
The property rights appraised constitute the Fee Simple Interest as defined below.
Fee Simple Estate is defined in The Dictionary of Real Estate Appraisal, Third Edition (1993),
as:
“Absolute ownership unencumbered by any other interest or estate, subject only to the
limitations imposed by the governmental powers of taxation, eminent domain, police
power, and escheat.”
Subject Property Inspection
An inspection of the subject property was conducted on December 4, 2008 by W. Grant Norling
and Brandon S. Henderson of PGP Valuation, Inc.
Appraisal Development and Reporting Process
Preparation of this appraisal included the following: an inspection of the subject property;
reviewing assessor’s maps; reviewing county records for information on taxes and
assessments; inspecting the subject market area; gathering and confirming land sales from
immediate and competing markets; inspecting all comparables utilized; analyzing supply and
demand conditions in the area; and applying applicable approaches to value to arrive at the
indications of value for the subject property.
Sources of Information
The relevant market data was obtained from developers, real estate agents/brokers, appraisers,
lenders, and various sources of secondary market data. In addition representatives from various
municipal offices were also contacted to obtain relevant market and/or property information.
Disclosure of Competency
We are aware of the competency provision of USPAP and the authors of this report meet the
standards.
Availability of Information
A preliminary title report was not provided. We did not observe any adverse easements or
encumbrances; it is assumed none exist. If adverse easements or encumbrances exist, they
could have a negative impact on the market value estimates and revision to the analysis would
be warranted. All other information was available to the appraisers.
Personal Property
No personal property or intangible items are included in this valuation.
Deductions and Discounts
Costs associated with demolishing the existing improvements to create a buildable site were
estimated for the subject; however, the improvements are currently leased for $8,100/mo. to
North’s Restaurant, Inc. on a short-term basis through June 30, 2009. It is assumed that the
income generated from an interim use of the existing improvements will likely offset the
C081313
3
necessary demolition costs. Therefore, no deduction was made for demolition or holding costs
in the following analysis.
PRELIMINARY APPRAISAL INFORMATION
Property Identification/Legal Description
The subject site is located at 10506-10512 & 10520 NE Halsey St Portland, OR 97220, and is
more specifically described as Section 34, Township 1 North, Range 2 East of the Willamette
Meridian, Tax Lots R320039, R320001 and R320014, in Multnomah County, OR. A more
detailed legal description was not available to the appraisers.
Sales History and Ownership
Current Owners – As reported by Multnomah County, the current owners of the subject
property are Brad Fishel et al (Tax Lot 700) and The Ukrainian Bible Church – Pathway to God
(Tax Lots 800 & 3100).
Three-Year Sales History – All parcels were purchased in excess of three years ago. Tax Lot
700 recently changed ownership from H & M Investments to Brad Fishel et al, a related party to
the previous ownership. This transaction was not a sale transaction and only represented a
change of ownership to a related party. No arms length sale transactions have occurred in the
past three years.
According to the listing broker, the subject site is currently marketed as a mixed-use
redevelopment parcel for $5,089,000 ($28/SF based on the gross site size). According to the
listing broker, the site is marketed as a redevelopment site with no significant value attributed to
the improvements. The property has been on the market for approximately 18 months and
started at $45/SF; the listing price was subsequently reduced to the current asking price of
$28/SF. Due to the recent slow down in the commercial real estate market there has not been
significant demand for large re-development parcels.
Assessment and Tax Information
The subject’s assessed values and property taxes for the current year are summarized in the
following table:
TAX INFORMATION (2008/2009 Tax Year)
APN
RMV Land
RMV
Imp./Other
RMV Total
Assessed
Total
2008/2009
Taxes
R320014
$1,307,070
$776,700
$2,083,770
$1,055,010
$22,755
$21.568
R320039
$226,510
$0
$226,510
$58,480
$1,261
$21.568
R320001
$2,321,750
$0
$2,321,750
$1,071,520
$23,111
$21.568
Total
$3,855,330
$776,700
$4,632,030
$2,185,010
$47,127
-
Millage Rate
In Oregon, Measure 50 was passed in the May 20, 1997 special election. This measure
establishes the maximum assessed value of property in Oregon for the 1997/1998 tax year as
90 percent of the property’s real market value in the 1995/96 tax year. Any increases in
assessed value for tax years following 1997/1998 are limited to 3 percent per year. Assessed
value will be adjusted for new property or property improvements and certain other events.
Certain local option taxes are permitted, if approved by voters. Measure 50 retains the existing
total property tax rate for all property taxes, including local option taxes but excluding taxes for
C081313
4
bonds at $5 per $1,000 of value for schools and $10 per $1,000 of value for non-school
government.
Exposure Time/Marketing Period
Exposure time is defined as "the estimated length of time the property interest being appraised
would have been offered on the market prior to the hypothetical consummation of a sale at
market value on the effective date of the appraisal; a retrospective opinion based on an analysis
of past events assuming a competitive and open market."
Reasonable exposure time is impacted by the aggressiveness and effectiveness of a property’s
exposure to market participants, availability and cost of financing, and demand for similar
investments. Exposure time is best established upon the experience of recent comparable sales
and discussions with market participants. Comparable sales over the last year indicate
exposure times ranging from three to twelve months in the subject’s regional marketplace for
similar mixed-use properties. Based upon this information and considering the physical
characteristics and location of the subject property and current economic conditions, a
reasonable estimate of exposure time for the subject is one year or less.
Marketing period is very similar to exposure time, but reflects a projected time period to sell the
property, rather than a retrospective estimate. As such, a similar time period of one year or less
is supported for the subject’s marketing period.
As for the subject’s actual marketing period, the subject has been marketed for sale for
approximately 18 months. The original listing price was at the high-end of the comparable range
and generated little interest. Over the subsequent year, the price was reduced substantially to
the current listing price. Additionally, during the listing period the commercial real estate market
slowed dramatically, reducing the demand for redevelopment parcels.
C081313
5
ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal is subject to the following assumptions and limiting conditions:
Extraordinary Assumptions
The exact square footage of the right-of-way dedication was unavailable to the appraisers. If the
actual square footage of the right-of-way dedication is materially different from our estimate, it
could have an adverse impact on the market value estimate, and modifications to the valuation
analysis would be warranted.
Hypothetical Conditions
The Gateway Plan District currently requires that all sites larger than 80,000 SF must set aside
15% (or pay $30/SF for the applicable site area) of the total site area for non-developed open
spaces. As of present, this requirement is under review by the City of Portland and is projected
to be changed to apply to sites greater than five acres (217,800 SF) in size. This valuation is
based on the hypothetical condition that the open space requirement will not apply to the
subject site. If the open space requirement continues to apply to the subject site, it could have
an adverse impact on the market value estimate, and modifications to the valuation analysis
would be warranted.
General Assumptions and Conditions
The legal description provided has not been compared with the assessor's records. The
analysis assumes that this description accurately represents the subject property. A survey has
not been provided to the appraisers. If further verification is required, a survey by a registered
surveyor is advised.
We assume no responsibility for matters legal in character, nor do we render any opinion as to
title, which is assumed to be marketable. All existing liens, encumbrances, and assessments
have been disregarded, unless otherwise noted, and the property is appraised as though free
and clear, under responsible ownership, and competent management.
The exhibits in this report are included to assist the reader in visualizing the property. We have
made no survey of the property and assume no responsibility in connection with such matters.
Unless otherwise noted herein, it is assumed that there are no encroachments, zoning, or
restrictive violations existing in the subject property.
The appraisers assume no responsibility for determining if the property requires environmental
approval by the appropriate governing agencies, nor if it is in violation thereof, unless otherwise
noted herein.
Information presented in this report has been obtained from reliable sources, and it is assumed
that the information is accurate.
This report shall be used for its intended purpose only, and by the party to whom it is
addressed. Possession of this report does not include the right of publication.
The appraisers may not be required to give testimony or to appear in court by reason of this
appraisal, with reference to the property in question, unless prior arrangements have been
made therefore.
C081313
6
ASSUMPTIONS AND LIMITING CONDITIONS (CONTINUED)
The statements of value and all conclusions shall apply as of the dates shown herein.
The appraisers have no present or contemplated future interest in the property which is not
specifically disclosed in this report.
Neither all, nor any part of, the contents of this report shall be conveyed to the public through
advertising, public relations, news, sales, or other media without the written consent or approval
of the authors. This applies particularly to value conclusions and to the identity of the appraisers
and the firm with which he or she is connected.
This report must be used in its entirety. Reliance on any portion of the report independent of
others, may lead the reader to erroneous conclusions regarding the property values. No portion
of the report stands alone without approval from the authors.
The liability of PGP Valuation Inc, its principals, agents, and employees is limited to the client.
Further, there is no accountability, obligation, or liability to any third party. If this report is placed
in the hands of anyone other than the client, the client shall make such party aware of all limiting
conditions and assumptions of the assignment and related discussions. The appraisers are in
no way responsible for any costs incurred to discover or correct any deficiency in the property.
The appraisers are not qualified to detect the presence of toxic or hazardous substances or
materials which may influence or be associated with the property or any adjacent properties,
has made no investigation or analysis as to the presence of such materials, and expressly
disclaims any duty to note the degree of fault. PGP Valuation Inc and its principals, agents,
employees, shall not be liable for any costs, expenses, assessments, or penalties, or diminution
in value, property damage, or personal injury (including death) resulting from or otherwise
attributable to toxic or hazardous substances or materials, including without limitation hazardous
waste, asbestos material, formaldehyde, or any smoke, vapors, soot, fumes, acids, alkalis, toxic
chemicals, liquids, solids or gasses, waste materials or other irritants, contaminants or
pollutants.
The appraisers assume no responsibility for determining if the subject property complies with
the Americans with Disabilities Act (ADA). PGP Valuation Inc, its principals, agents, and
employees, shall not be liable for any costs, expenses, assessments, penalties or diminution in
value resulting from non-compliance. This appraisal assumes that the subject meets an
acceptable level of compliance with ADA standards; if the subject is not in compliance, the
eventual renovation costs and/or penalties would negatively impact the present value of the
subject. If the magnitude and time of the cost were known today, they would be reduced from
the reported value conclusion.
An on-site inspection of the subject property was conducted. No evidence of asbestos materials
on-site was noted. A Phase 1 Environmental Assessment was not provided for this analysis.
This analysis assumes that no asbestos or other hazardous materials are stored or found in or
on the subject property. If evidence of hazardous materials of any kind occurs, the reader
should seek qualified professional assistance. If hazardous materials are discovered and if
future market conditions indicate an impact on value and increased perceived risk, a revision of
the concluded values may be necessary.
A detailed soils study was not provided for this analysis. The subject's soils and sub-soil
conditions are assumed to be suitable based upon a visual inspection, which did not indicate
evidence of excessive settling or unstable soils. No certification is made regarding the stability
or suitability of the soil or sub-soil conditions.
C081313
7
MARKET AREA DESCRIPTION
General:
The subject property is located in the Gateway submarket
within northeast Portland. The subject’s market area is
located east of I-205 near the I-84 interchange and is
classified as an area of high-density commercial
development surrounded by residential and secondary
commercial uses. The following paragraphs summarize
factors pertinent to the social, economic, and physical
development of the market area.
Demographics:
The following information reflects the demographics for the
subject’s area.
MARKET AREA DEMOGRAPHICS
Description
1.0 Mile Radius 3.0 Mile Radius 5.0 Mile Radius
Population
2013 Population
19,377
160,115
384,005
2008 Population
18,649
154,262
370,251
2000 Census Population
17,308
145,586
351,369
Change 2008-2013
3.90%
3.79%
3.71%
Change 2000-2008
7.75%
5.96%
5.37%
2013 Households
7,591
62,483
153,812
2008 Households
7,307
60,285
148,528
2000 Census Population
6,791
56,955
140,978
Change 2008-2013
3.89%
3.65%
3.56%
Change 2000-2008
7.60%
5.85%
5.36%
158,291
Households
Housing Units (current year)
Total Housing Units
7,811
64,257
Owner Occupied
52.10%
58.40%
56.70%
Renter Occupied
41.40%
35.50%
37.20%
6.50%
6.20%
6.20%
Vacant Housing Units
Income (current year)
Average Household Income
$57,361
$62,933
$65,857
Median Household Income
$49,251
$53,231
$54,686
Per Capita Income
$22,708
$25,090
$26,751
Source: STDB Online
As noted in the table above, moderate growth is anticipated
to occur in the subject’s market area (1-mile radius) over the
next five years.
Residential Development:
C081313
There is a substantial amount of residential development
within the subject’s market area including a mix of single and
multi-family uses. The single-family and low-density multifamily residential development surrounds the commercial core.
The residences in the area are commonly in average condition
and were typically built in the 1960s and earlier. There has
been limited single-family residential construction over the last
few years due to the limited availability of land suitable for
single-family development.
Multi-family developments within proximity to the subject were
generally built in the 1970s and earlier and consist of walk-up
8
MARKET AREA DESCRIPTION (CONTINUED)
style apartments. There are several mixed-use and highdensity residential developments under construction and newly
developed within the market area due to the favorable zoning
of the market area.
Commercial Development:
Commercial development in the area is concentrated along
major thoroughfares including NE 122nd Ave, the NE Halsey St
and NE Weidler St couplet, NE Glisan St, E. Burnside St and
the Stark/Washington St couplet. Commercial buildings
generally range from new to 30 years old and are in average
condition. Gateway Shopping Center, anchored by Fred
Meyer, Kohl’s and Ross, is located approximately ½ mile west
of the subject along NE 102nd Ave. Mall 205, a sub-regional
mall, with a mix of regional and national tenants including
Target, Home Depot and several other regional anchors, is
located approximately one mile south of the subject at I-205
and SE Stark St.
Gateway Plan District:
The subject is located within the Gateway Plan District that
has been designated by the City of Portland to receive a
majority of the city’s growth. According to the City of
Portland, future development will transform Gateway from a
suburban low-density area to a dense, mixed-use regional
center that maximizes the public’s significant investment in
the transportation infrastructure. The development standards
within the Gateway Plan District are intended to foster an
intense mixed-use urban character with a high quality
pedestrian environment and an interconnected, dense street
grid.
Gateway Urban Renewal Area:
The subject is located within the Gateway Urban Renewal
Area. The objective of this area is to transform the Gateway
District into a regional center with enhanced housing,
employment, recreational and cultural opportunities for the
residents of east Portland. Additional objectives for this area
include creating public spaces, transportation and pedestrian
improvements, and projects to enhance Gateway's viability
as a livable center of activity.
Community Services:
Community services and facilities are readily available in the
surrounding area, which include fire stations, hospitals, police
stations, and schools (all ages). There are a number of parks
and other recreational facilities in the area.
Summary:
The subject is located in the northern portion of the Gateway
District, an established area of Portland currently exhibiting
signs of gentrification. The subject property has an average
location with respect to commercial services, thoroughfares,
public transportation, and community services. Condition
and appeal of the area are generally average. The area is
anticipated to sustain moderate growth in the foreseeable
future. Property values are anticipated to remain stable over
the next several years.
C081313
9
MARKET AREA MAP
C081313
10
SITE DESCRIPTION
Size Gross Size:
182,081 Gross SF (4.18 acres) consisting of three tax lots as
summarized in the following table (excluding easement
dedication):
Parcel
700
800
3100
Total
Net Size:
Gross Site Size ( 3 parcels)
Acres
Gross SF
1.93
84,071
0.20
8,712
2.05
89,298
4.18 AC
182,081 SF
Upon redevelopment of the subject site, the City of Portland
is requiring a 60 ft wide street dedication running
approximately through the middle of the subject site. The
following table summarizes the two sections (A – north & B –
south) of the subject size and the net site size is presented.
Net Site Size
Site
A
B
Total
Parcels
TL 700 & 800
TL 3100
Gross SF
92,783 SF
89,298 SF
182,081 SF
Dedication
Description
SF
Net SF
45' x 431.4' (19,413) SF 73,370 SF
15' x 431.4' (6,471) SF 82,827 SF
60' x 431.4' (25,884) SF 156,197 SF
Shape:
Irregular (functional); please view the plat map at the end of
this section for visual reference. The site has roughly 362 ft
of frontage along NE Halsey St; and a depth of 470 ft along
NE 106th Ave.
Topography:
Level
Adjacent PropertiesNorth:
South:
East:
West:
NE Halsey St, then commercial uses
NE Wasco St., then commercial uses
NE 106th Ave, then commercial and residential uses
NE 104th Ave then vacant land / commercial uses
Utilities:
All utilities are available to the site.
Street Improvements:
NE Halsey St is a two-lane, one way, arterial with asphalt
paving, curbs, sidewalks, streetlights and a bike lane at the
subject. NE 106th Ave, NE Clackamas St and NE Wasco St
are two-lane, two-way asphalt paved neighborhood streets
with limited improvements.
Traffic Counts:
The following table summarizes the most recent available
traffic count for the site’s fronting street:
Street
NE Halsey St
C081313
Traffic Counts
Location
Source
E/NE 102nd Ave City of Portland
Date
Mar-00
Count
16,937
11
SITE DESCRIPTION (CONTINUED)
Accessibility/Exposure-Site A:
This portion of the subject site is located along NE Halsey St
and has good immediate access provided by two curb cuts
along the fronting arterial. Secondary access to the site will
be provided from NE Clackamas St upon dedication of the
roadway. This portion of the site has good general access to
community services and commercial development within the
area from the NE Halsey St corridor.
Site B:
Access to this portion of the overall site is limited to
neighborhood streets including: NE 106th Ave, NE Wasco St
and NE Clackamas St. This is a secondary commercial
parcel located behind Site A with no exposure from NE
Halsey St. Exposure of this site is limited due to the
neighborhood nature of the fronting streets.
Overall Site:
The overall site has good accessibility and exposure due to
significant frontage along a primary commercial arterial with
two curb cuts. Additionally the site as a whole has access to
three neighborhood streets and frontage along a major
arterial. Overall, the subject site (Site A and Site B) is a good
mixed-use site.
Easements:
A preliminary title report was not provided to the appraisers;
no adverse easements or encumbrances were noted during
the site inspection. If questions arise regarding easements,
encroachments, or other encumbrances, further research is
advised.
Zoning:
The subject site is zoned Central Commercial with an “d”
design overlay (CXd).
CX - The Central Commercial (CX) zone promotes highdensity and coverage commercial development which is
intended to provide for commercial development within
intense urban areas. A broad range of uses are allowed and
are intended to be very intense with high building coverage
with large buildings placed close together. Development is
intended to be pedestrian-oriented with a strong emphasis
on a safe and attractive streetscape.
The subject site is located within the Gateway Plan District
as previously discussed. The base floor-to-area-ratio (FAR)
and maximum heights as they apply to the subject are
shown in the following table.
Tax Parcel
700
800
3100
C081313
FAR & Maximum Height
Base FAR
Maximium Height
3:1
100 ft
3:1
100 ft
4:1
100 ft
12
SITE DESCRIPTION (CONTINUED)
“d” Overlay - The Design overlay zone (“d”) promotes the
conservation, enhancement and continued vitality of areas of
the city with special scenic, architectural or cultural value.
The design overlay requires design review or compliance
with the Community Design Standards to ensure that certain
types of infill development will be compatible with the
neighborhood and enhance the area.
Earthquake Zone:
According to the Oregon Seismic Safety Policy Advisory
Commission, Multnomah County is located in Seismic Zone
3, which is a medium risk area, which applies to the majority
of western Oregon.
Flood Plain:
The subject property is in Flood Zone X, which is described
as "areas outside the 500-year flood plain." This is
referenced by Federal Emergency Management Agency
Flood
Map,
Community
Number
#0183,
Panel
#4101830120E, dated October 19, 2004.
Site Rating:
The subject is a mixed-use commercial site within an area
that is experiencing a substantial amount of redevelopment
and is showing signs of gentrification. The subject’s corner
location, relatively large size and generally rectangular
shape, as assembled, enhance the development potential of
the site. These attributes are taken into consideration when
estimating the subject’s appropriate unit value. Site A has
good exposure along a primary commercial arterial, has a
functional shape and good utility for a variety of commercial
users, and is a good mixed-use site. Site B is an
average/good mixed-use site with limited exposure and
average access from neighborhood streets. Overall, the
subject represents a good mixed-use site, with average to
good marketability.
Improvements Description:
The existing improvements consist of one building totaling
13,950 SF. The building’s site coverage ratio is effectively
19% based on the net site size of site A. The improvements
were constructed in 1957 and are of average quality
construction consisting of masonry and concrete block. The
parking area is improved with asphalt paving with polemounted lights and includes 93 delineated spaces including
five designated handicap spaces. Additionally, there is a
concrete wall separating the parking area along the southern
property line from the abutting site (right-of-way dedication
for NE Clackamas St.).
C081313
13
AERIAL PHOTOGRAPH
C081313
14
PLAT MAP
C081313
15
ZONING MAP
C081313
16
FLOOD MAP
C081313
17
GATEWAY PLAN DISTRICT MAP
C081313
18
GATEWAY PLAN MAXIMUM HEIGHT MAP
C081313
19
FLOOR TO AREA RATIOS MAP
C081313
20
SUBJECT PROPERTY PHOTOGRAPHS
View of site A looking east (C081313-14)
View of site B looking northwest (C081313-4)
C081313
21
SUBJECT PROPERTY PHOTOGRAPHS (CONTINUED)
Street Scene: Halsey St looking west (C081313-020)
Street Scene: NE 106th Ave looking south (C081313-017)
C081313
22
SUBJECT PROPERTY PHOTOGRAPHS (CONTINUED)
Street Scene: NE Wasco St looking west (C081313-001)
Proposed right-of-way dedication (Clackamas St) looking west (C081313-22)
C081313
23
MARKET ANALYSIS & HIGHEST AND BEST USE
MARKET ANALYSIS
High density developable land in the Portland metropolitan area is in relatively high demand due
to the scarcity created by the Urban Growth Boundary (UGB) combined with increasing demand
in most market sectors. Mixed-use land that allows dense development has generally
experienced increased demand and value appreciation over the past several years. However,
the recent economic slowdown, the demand for developable land has subsided over the past 12
months.
In this section, market conditions which influence the subject property are analyzed. The major
factors requiring analysis are the supply and demand conditions in the subject market and
submarket for retail, office and residential development. To analyze supply and demand in the
subject’s market, we have relied on published studies by CoStar Property®. The subject is
located in the Gateway Submarket within the Portland Market.
Retail Market Statistics
Portland Market & Gatew ay Subm arket (Retail)
VACANCY
SUPPLY
Period
Market
Submarket
Market
Submarket
2003
2004
2005
2006
2007
143,427,181
145,823,898
148,153,755
149,731,753
152,528,082
3,239,519
3,244,719
3,227,810
3,220,799
3,244,980
3.4%
3.8%
4.6%
4.4%
4.2%
4.8%
5.0%
5.1%
6.4%
5.1%
Q1 2008
Q2 2008
Q3 2008
152,744,663
153,050,534
153,711,918
3,244,980
3,244,980
3,244,980
4.5%
4.3%
4.7%
4.3%
3.7%
4.7%
2008 YTD
153,711,918
3,244,980
4.5%
4.3%
AVERAGE ASKING RENT PSF/YR. (NNN)
NET ABSORPTION
Period
Market
Submarket
Market
Submarket
2003
2004
2005
2006
2007
$13.35
$14.22
$14.65
$15.25
$16.54
$13.35
$13.45
$10.11
$12.66
$13.40
323,621
1,620,550
1,163,523
2,144,437
2,728,753
-12,194
-26,705
-13,318
2,005
50,852
Q1 2008
Q2 2008
Q3 2008
$16.93
$17.19
$17.34
$13.62
$12.59
$12.87
-336,370
660,781
47,912
10,412
20,991
-33,042
2008 YTD
$17.15
$13.03
372,323
-1,639
Source: CoStar Property®
NNN = Triple Net
Y-T-D = Year-to-Date
Retail Market Summary
Statistics generally indicate good retail demand in the market and submarket. Vacancy is low
and rents are generally increasing in the overall market and submarket.
C081313
24
MARKET ANALYSIS & HIGHEST AND BEST USE (CONTINUED)
Office Market Statistics
Portland Market & Gatew ay Subm arket (Office)
VACANCY
SUPPLY
Period
Market
Submarket
Market
Submarket
2003
2004
2005
2006
2007
102,160,699
103,007,403
103,920,142
105,510,069
106,687,736
1,635,844
1,635,844
1,635,844
1,714,493
1,816,093
12.0%
11.4%
9.8%
9.2%
9.0%
8.5%
7.6%
7.8%
9.9%
8.6%
Q1 2008
Q2 2008
Q3 2008
107,167,731
107,300,631
107,689,921
1,816,093
1,816,093
1,816,093
8.6%
8.6%
9.1%
5.9%
6.5%
7.7%
2008 YTD
107,689,921
1,816,093
8.8%
6.7%
AVERAGE ASKING RENT PSF/YR. (FS)
NET ABSORPTION
Period
Market
Submarket
Market
Submarket
2003
2004
2005
2006
2007
$17.38
$16.91
$16.85
$17.55
$18.87
$14.58
$14.72
$15.34
$15.90
$16.41
-355,345
2,091,202
2,253,588
1,304,493
2,244,697
58,957
-52,840
31,057
19,349
166,594
Q1 2008
Q2 2008
Q3 2008
$19.43
$19.57
$19.30
$16.99
$17.25
$17.84
249,596
56,375
-106,697
16,108
-12,183
-21,767
2008 YTD
$19.43
$17.36
199,274
-17,842
Source: CoStar Property®
FS = Full Service
Y-T-D = Year-to-Date
Office Market Summary
Statistics generally indicate moderate demand for office space within the market and submarket.
Vacancy is decreasing and rents are increasing. New construction of office space has been met
with higher levels of annual net absorption over the past several years while YTD absorption
appears to have softened.
C081313
25
MARKET ANALYSIS & HIGHEST AND BEST USE (CONTINUED)
Residential Market Statistics
Due to soft market conditions for condominium development, if a residential component is
considered for the subject, it is likely to include an apartment component. The following statistics
indicate current market conditions for apartment units within the Portland market and N/NE
Portland submarket. According to the Multi-Family Report - Third Quarter 2008 published by
NAI Norris Beggs and Simpson, the Portland Market vacancy has increased slightly over the
past quarter to 3.8% which is still substantially below the 5% vacancy rate signaled by healthy
markets. Vacancy rates within the N/NE submarket are slightly stronger than the overall market
at 3.0% Average overall rents in all submarkets have increased between $2/mo. and $6/mo.
over the past quarter with 2BR/2BA apartments showing the largest increase of $35/mo. Rent
and vacancy statistics for the Portland Market and N/NE submarket are presented in the
following chart.
AVERAGE RENT PER UNIT
Submarket
1BR/1BA 2BR/1BA 2BR/2BA 3BR/3BA % Vacant
$669
$715
$859
$965
3.0%
Portland Market
$649
$713
$888
$842
3.8%
N/NE Submarket
Source: Multi-Family Report Third Quarter 2008 NAI NBS
In summary, the subject’s submarket demonstrates strong vacancy statistics and healthy rental
growth. The subject’s market area is anticipated to remain stable in upcoming months. Overall
vacancy rates are expected to remain stable with little to no new direct competition in the
immediate subject submarket, and moderate, but steady population and job growth.
General Market Summary
The subject’s immediate market area is experiencing moderate demand for mixed-use land due
to its favorable high-density zoning and proximity to I-205, I-84, the MAX light-rail and downtown
Portland, as well as and the relative success of recently constructed mixed-use developments.
The subject represents an average to good mixed-use site noting its corner location and
relatively large size, which generally increase the development potential of the parcel. The most
likely buyer of the subject is a regional or local developer for the construction of a mixed-use
development with a mix of commercial and residential uses.
HIGHEST AND BEST USE
As Vacant – Financial feasibility, maximal productivity, marketability, legal, and physical factors
have been considered for the subject site. Based on these considerations, the highest and best
use of the subject site “as vacant” is a commercial mixed-use development.
As Improved - The existing improvements do not contribute significant value to the property as
indicated by the market value estimates. The property is within an established commercial area,
and is supported by zoning regulations. Additionally, the subject has a site coverage ratio far
below the allowed development density and typical urban development. Based on these
considerations, the highest and best use of the property “as improved” is demolition of the
existing improvements and redevelopment of the subject site. However, it is noted that the
existing improvements provide utility as an interim use until such time that redevelopment
occurs.
C081313
26
VALUATION METHODOLOGY/SITE VALUATION
The appraisal process is designed to evaluate all factors that influence value. Market area
information has been presented to inform the reader of general outside influences that may
affect value. In addition, the subject property has been described and the highest and best use
concluded. The next portion of the appraisal process deals directly with the valuation of the
subject property. The following paragraphs describe the standard approaches to value that were
considered for this analysis.
SITE VALUATION
The Sales Comparison Approach is used to estimate the market value of the subject site. The
subject is being valued as a vacant site, and the Sales Comparison Approach is the most
applicable approach for estimating market value of mixed-use land. The Cost and Income
Capitalization Approaches are not applicable when valuing unimproved commercial land and
are therefore excluded. The As Is Site Value, excluding subject improvements, will be estimated
using the Sales Comparison Approach.
Introduction
In this section, the value of the subject site is estimated by comparing it with sales of similar
redevelopment land located in the subject’s market area or in similar and nearby market areas.
Land value is influenced by a number of factors; most prominent of which is development and
use potential. This factor, as well as others, is considered in the following analysis.
Unit of Comparison
The most relevant unit of comparison is the price per square foot per FAR (floor to area ratio).
This indicator best reflects the analysis used by buyers and sellers in this market.
Comparable Selection
A thorough search was made for similar land sales in the area. The parameters of the survey
were proximity to the subject, size, location, development potential, and date of sale. In
selecting comparables, emphasis was placed on confirming recent sales of mixed-use sites that
are similar to the subject property in terms of location and physical characteristics. Overall, the
sales used represent the best comparables available for this analysis.
C081313
27
VALUATION METHODOLOGY/SITE VALUATION (CONTINUED)
Adjustments
The lack of uniformity in the market prevents the direct market extraction of most dollar
adjustments. However, dollar adjustments to the comparable sales were considered for property
rights transferred, financing terms, conditions of sale, and expenditures immediately after
purchase, such as demolition costs and etc, and market conditions. General or qualitative
analysis reflecting market behavior is also used to determine which comparable sales are
superior or inferior to the subject. This analysis establishes value parameters for the subject,
allowing for a final value conclusion. The following adjustments or general market trends were
considered for the basis of valuation.
•
Property Rights Transferred - The fee simple rights for each of the comparable sales
were transferred. Therefore, none of the comparables required any adjustments for
property rights.
•
Financing - All of the comparables were either cash sales or involved typical market
financing. Therefore, no adjustments are necessary.
•
Conditions of Sale - All of the sales were sold at arm’s length or are market
transactions without any undue duress. Therefore, none of the comparables required
any adjustments for conditions of sale.
•
Buyer’s Expenditures Immediately After Purchase - Some of the comparables were
adjusted upward for demolition costs incurred by the buyer.
•
Market Conditions - An adjustment for market conditions, also known as a date of sale
adjustment, was considered. Historically, land values within in the subject's market have
been increasing with recent softening over the past 6-12 months. However, due to the
lack of significant data to apply an appropriate or accurate quantitative adjustment,
qualitative adjustments are made to the comparables. The comparables are adjusted
qualitatively for market conditions based on the dates of sale.
•
Physical Characteristics - The lack of uniformity in the market prevents direct
extraction of adjustments from the marketplace. General analysis reflecting market
behavior is used to determine which comparables are superior or inferior to the subject.
It is generally proven in the market place that smaller parcels with similar locations,
access, and exposure, will sell at a higher price per square foot. The sales do not
indicate a quantifiable adjustment; however, a qualitative adjustment is used in the
analysis.
Presentation
The following Land Sales Summation Table and Location Map summarize the sales data.
Following these items, the sales are adjusted for applicable elements of comparison and the site
value is concluded.
C081313
28
LAND SALES SUMMATION TABLE
Transaction
(Status/Date)
Recorded
8/11/2008
SE 82nd Site
333 SE 82nd Ave
Portland, OR
Comments:
Land Sale
10115 SE Stark St
Portland, OR
Site Size
(Acres/SF)
0.65
28,314
Base FAR
Intended Use Zoning
CG
Commercial NNN
Max Height
3:1
45 ft
Price per
SF/FAR
$12.66
Confirmation Name
Price
per SF
$37.97
Source
Appraisal Documents
Appraiser
This is the sale of a used car dealership site. The improvements were in below average condition at the time of sale, and the purchaser was planning
on leasing the site to a free standing fast food retaurant.
Recorded
7/16/2008
Comments:
Analysis
Price
$1,075,000
$540,000
0.23
10,000
Mixed Use Office/Retail
CG
4:1
100 ft
$13.50
$54.00
DJ Guild
Seller
This is the sale of a 10,000 SF corner lot on SE Stark and 102nd. The site was 12,000 SF but will be reduced by 2,000 SF for street and sidewalk
expansion by the city. The buyer plans on developing a 12,000 SF office building with first floor retail.
CS
Mixed Use Kenton Mixed-Use
0.98
3:1
$30.59
Mark DeLapp
$10.20
Recorded
$1,300,000
Apt/Retail
SEC of N Argyle & N Brandon
9/5/2007
42,500
45 ft
Buyer
Portland, OR
This is the sale of CS-zoned land with a 3:1 FAR (45 feet height) with secondary exposure from a main thoroughfare (North Denver) within the North
Comments: Portland area. The property is located about 2 blocks from a MAX stop. A mixed-use development is planned. The sale went under contract in late
2006.
RX
Multi1.40
6:1
$35.66
Dorene Warner
$5.94
Recorded
$2,174,650
residential 4/16/2007
60,985
120 ft
Buyer
dit Street in the Gateway District. The property is comprised of two contiguous parcels
THis is the sale of a development site with frontage onTNE CGlisan
with level topography. There are some older existing improvements on the site ($40,000 estimated for demolition costs). The zoning allows for the
Comments:
highest density of dwelling units of the city's residential zones. The Gateway Plan District permits an FAR of 6:1 and a maximum building height of
120 feet for the subject site.
Glisan Street Site
9929 & 9999 NE Glisan St
Portland, OR
Esperanza Court
SE 28th and SE Kelton St.
Portland, OR
Recorded
11/29/2006
$2,331,308
2.50
108,719
Commercial Improved
CG
3:1
75 ft
$7.15
$21.44
Susan Lind
Buyer's Representative
This property has good access and average exposure considering its proximity to major transportation routes, commercial services, and employment
Comments: centers. The environmental issues on-site are required to be remedied prior to construction, at which time the site will be suitable for development.
Overall, this is a good site for high density residential development.
C081313
29
LAND SALES COMPARABLE LOCATION MAP
C081313
30
Analysis
The following grid summarizes the qualitative adjustment process of the comparables in relation
to the site.
LAND SALES ADJUSTMENT GRID
Comparable
Analysis Price
-
$1,075,000
$540,000
$1,300,000
$2,174,650
$2,331,308
Price Per SF
-
$37.97
$54.00
$30.59
$35.66
$21.44
Price Per SF/FAR -
$12.66
$13.50
$10.20
$5.94
$7.15
Date of Sale
Analysis
-
8/11/08
Similar
7/16/08
Similar
9/5/07
Sl. Older
4/16/07
Sl. Older
11/29/06
Older
Location
Analysis
Average/Good Good
Sl. Superior
Good
Sl. Superior
Average
Sl. Inferior
Average
Sl. Inferior
Average/Good
Similar
Size (acres)
Analysis
3.59
0.65
Smaller
0.23
Smaller
0.98
Smaller
1.40
Sl. Smaller
2.50
Sl. Smaller
Access
Analysis
Average
Average
Similar
Good
Superior
Average
Similar
Good
Superior
Average
Similar
Exposure
Analysis
Good
Good
Similar
Good
Similar
Average
Inferior
Good
Similar
Average
Inferior
Corner
Analysis
Yes
Yes
Similar
Yes
Similar
Yes
Similar
Yes
Similar
Yes
Similar
Zoning
Analysis
CXd
CG
Sl. Inferior
CG
Sl. Inferior
CS
Sl. Inferior
RX
Sl. Inferior
CG
Sl. Inferior
Shape
Analysis
Irregular
Square
Superior
Square
Superior
Irregular
Similar
Rectangular
Sl. Superior
Irregular
Similar
Topography
Analysis
Level
Level
Similar
Level
Similar
Level
Similar
Level
Similar
Level
Similar
-
High
High
Sl. High
Low
Sl. Low
Overall Indicator:
As Is Site Value Conclusion
The comparable sales presented above indicate a wide sale price per square foot range from
$21.44/SF to $54/SF; however, on a price per square foot per FAR basis the sales demonstrate
a relatively narrow range from $7.15/SF/FAR to $13.50/SF/FAR. Due to the site configuration
with approximately 470’ of depth and the proposed street dedication dividing the site into two
similarly sized parcels, the subject is best analyzed as two separate sites (site A – northern site
and site B – southern site). In the following discussion, the two sites are described relative to the
comparables and a price/SF/FAR and site value conclusion for each section is presented. Then,
an overall site value conclusion is concluded.
SUMMARY OF COMPARABLE ANALYSIS
Comp. No.
2
1
3
Subject
5
4
Low
High
C081313
Price/SF
Price/SF/FAR
$54
$13.50
$38
$12.66
$31
$10.20
$21
$7.15
$36
$5.94
Statistical Analysis (Price/FAR)
$5.94
Median
$13.50
Average
Indicator
High
High
Sl. High
Sl. Low
Low
$10.20
$9.89
31
Site A (Northern Site) - The subject’s applicable unit value is bracketed qualitatively between
Comparable 3 ($10.20/SF/FAR) and Comparable 1 ($12.66/SF/FAR). This portion of the entire
site occupies a corner location at the intersection of NE Halsey and NE 106th Ave. The section
has approximately 470 ft of frontage along NE Halsey and two curb cuts. The site’s good
frontage, relatively large size and favorable CX zoning place upward pressure on the applicable
price per square foot per FAR conclusion for the site. The preceding table illustrates how the
subject property is bracketed by the comparables on a price per square foot per FAR basis. The
following table displays price per square foot per FAR unit value conclusion and site value
conclusion for subject site A.
VALUE CONCLUSION - SITE A - NORTHERN SITE
Concluded Price/FAR
FAR
Price/SF
$11.50
x
3:1
=
$35
Concluded Price/SF
Site Size (SF)
Value
$35
x
73,370
=
$2,530,000
Site B (Southern Site) - This portion of the entire subject site is located south of site A across
the proposed “right-of-way” dedication for NE Clackamas St. While neighborhood streets
surround this site, it has a development potential slightly higher than site A due to an allowed
FAR of 4:1. However, the increased development potential of this site is offset by the reduced
exposure and access compared to the fronting parcel (site A). Comparable 5, a commercial site
with similar characteristics to the subject including secondary exposure to the main arterial and
access via neighborhood streets is considered the best indicator for the subject on a
price/SF/FAR basis. Overall, a price/SF/FAR based on Comparable 5, with a slight premium on
site B due to the increased development potential and the favorable CX zoning, is supported by
the above analysis of the comparables, and is concluded below. The price per square foot per
FAR unit value conclusion and the value conclusion for site B of the subject site are presented
below.
VALUE CONCLUSION - SITE B - SOUTHERN SITE
Concluded Price/FAR
FAR
Price/SF
$7.25
x
Concluded Price/SF
$29
4:1
=
$29
=
$2,400,000
Site Size (SF)
x
82,827
Value
Total Site Value (Sections A & B) – An overall value conclusion for the entire site is based on
the above analysis of the components. This site value conclusion does not include the right-ofway dedication and is based on the net square footage of the overall site. Site A and Site B are
effectively separate sites due to the roadway dedication of NE Clackamas St that will separate
the two sites. Each site will have independent access via several bordering streets; therefore
there are no observed premiums or discounts associated with purchasing the individual sections
or both sites as an assemblage.
Site
A
B
VALUE CONCLUSION - TOTAL SITE
FAR
$/SF
Site Size (SF)
3:1
$35
73,370*
4:1
$29
82,827*
Total Site Value Conclusion
156,197*
Value
$2,530,000
$2,400,000
$4,930,000
*Excludes right-of-way dedication
The total site has a weighted FAR of approximately 3.53:1. Based on the site value conclusion
presented above the concluded site value is approximately $8.90/SF/FAR blended, which is well
supported by the comparable data presented above.
C081313
32
ANALYSIS OF VALUE CONCLUSIONS
The Analysis of Value Conclusions is the final step in the appraisal process and involves the
weighing of the individual valuation techniques in relationship to their substantiation by market
data, and the reliability and applicability of each valuation technique to the subject property.
The price per square foot per FAR method was presented in the Sales Comparison
Approach. There have been relatively recent land sales of properties generally similar to the
subject in the market area, which increases the validity of this approach. Developers/users
typically consider the Sales Comparison Approach when determining land value. Based on
the quantity and quality of available market data, the Sales Comparison Approach is
perceived to provide a credible estimate of value and was used exclusively.
After considering all factors relevant to the valuation of the subject property the final concluded
value estimate is:
C081313
VALUE SCENARIO(S)
INTEREST APPRAISED
DATE
VALUE
As-Is Market Value
Fee Simple
December 2, 2008
$4,930,000
33
CERTIFICATE OF APPRAISAL
We certify that, to the best of our 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 the signers’ personal, impartial, and unbiased professional analyses,
opinions, and conclusions.
•
The signers of this report have no present or prospective interest in the property that is the subject of
this report, and no personal interest with respect to the parties involved.
•
The signers have no bias with respect to the property that is the subject of this report or to the parties
involved with this assignment.
•
The engagement in this assignment was not contingent upon developing or reporting predetermined
results.
•
The compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value that favors the cause of the client, the amount
of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event
directly related to the intended use of this appraisal.
•
The analyses, opinions, and conclusions were developed, and this report has been prepared, in
conformity with the requirements of the Code of Professional Ethics and Standards of Professional
Appraisal Practice of the Appraisal Institute, and the Uniform Standards of Professional Appraisal
Practice, as set forth by the Appraisal Standards Board of the Appraisal Foundation.
•
W. Grant Norling, made a personal inspection of the property that is the subject of this report. He also
made an exterior inspection of all of the comparables used in this report.
•
Todd S. Liebow, MAI, made a personal inspection of the property that is the subject of this report; he
also inspected the comparables.
•
Brandon S. Henderson (OR State Registered Appraiser Assistant No. AA02351) provided significant
assistance in all aspects of the appraisal process as outlined in OAR 161-025-0030 (9) (a) (A)
through (H), indicated below:
(A)
Define the appraisal problem;
(B)
Conduct preliminary analysis, select and collect applicable data;
(C)
Conduct an analysis of the subject property;
(D)
Conduct highest and best use analysis;
(E)
Estimate land value, including on-site improvements;
(F)
Estimate value of the property using the applicable approaches of value—sales
comparison and income capitalization;
(G)
Reconcile each value indication and reconcile the final value estimate; and
(H)
Report estimate(s) of value(s) as defined.
C081313
34
CERTIFICATE OF APPRAISAL (CONTINUED)
The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly
authorized representatives. As of the date of this appraisal, Todd S. Liebow, MAI is currently certified
under the continuing education program of the Appraisal Institute.
W. Grant Norling
OR State Certified General Appraiser
No. C000792
Todd S. Liebow, MAI
OR State Certified General Appraiser
No. C000152
C081313
12/9/08
Date
12/9/08
Date
35
ADDENDA
Qualifications of PGP Valuation Inc
Qualifications of Appraisers
C081313
TODD S. LIEBOW, MAI
Principal
Todd S. Liebow was born in Chicago, Illinois in 1957. He attended Denison University in Ohio
and graduated with honors from Lewis and Clark College in Portland with a Bachelor of Arts
degree in Philosophy. Todd has formerly managed PGP’s Portland and Vancouver offices and
has managed the Retail, Office, and General Commercial Property Team in the Portland office.
His appraisal assignments include other traditional and special use properties, as well as ad
valorem property tax appeals.
PROFESSIONAL EDUCATION
Lewis and Clark College ♦ Portland, Oregon ♦ 1978
Bachelor of Arts Degree ♦ Philosophy
Graduated with Honors
Denison University ♦ Granville, Ohio
Major in Studio Art ♦ Photography
REAL ESTATE EXPERIENCE
Principal ♦ PGP VALUATION INC
Commercial and Industrial Appraiser ♦Assessor's Office ♦ Clackamas County, Oregon ♦ 1979-83
LICENSE AND CERTIFICATION
Certified General Real Estate Appraiser ♦ State of Oregon
Certificate No. C000152
Certified Appraiser ♦ State of Washington
Certificate No. LIEBOT54330B
Registered Appraiser ♦ Oregon Executive Department ♦ Urban/Rural Properties
RECENT SPEAKING ENGAGEMENTS
Oregon Mortgage Bankers Association
Addressing Detrimental Conditions in the Appraisal of Real Estate
Northwest Property Tax Conference
Preparing the Expert Witness
Oregon Alliance of Senior and Health Services
Valuation of Non-Profit Homes for the Elderly
Appraisal Institute
Valuation of Environmentally Impaired Properties
American Bar Association/Institute for Professionals in Taxation
How to Create an Effective Appeal Team
Selection and Evaluation of Attorneys
© PGP VALUATION INC
Qualifications of Todd S. Liebow, MAI (Continued)
Oregon & Washington Departments of Revenue
Common Errors in the Appraisal Process
Reviewing Appraisals
Institute for Professionals in Taxation
Valuation of Commercial and Industrial Property–Beyond the Cost Approach
PROFESSIONAL AFFILIATIONS
MAI ♦ Appraisal Institute ♦ Certificate No. 7663
Appraiser ♦ Clackamas County Board of Property Tax Appeals ♦ 1999 to Present
Co-Chair ♦ Information and Services Committee ♦
Institute for Professionals in Taxation ♦ 1998/1999
Subcommittee on Property Taxation ♦ Associated Oregon Industries ♦ 1990 - Present
Co-Chairman ♦ Taxation/Legislative Committee ♦ Building Owner's
and Manager's Association of Portland (BOMA) ♦ 1990-1993
Director ♦ Lewis and Clark Bank
Member ♦ Historic Preservation League of Oregon
President ♦ 1983: International Association of Assessing Officers,
Portland Metropolitan Chapter
Admissions Committee ♦ Appraisal Institute, Greater Oregon Chapter ♦ 1989-93
Chair ♦ Finance Committee ♦ Appraisal Institute, Greater Oregon Chapter ♦ 1998-99
Chair ♦ Portland Subchapter ♦ Appraisal Institute ♦ 1993
Member ♦ Ethics and Counseling Panel ♦ Appraisal Institute ♦ 1993 - Present
Secretary ♦ Greater Oregon Chapter ♦ Appraisal Institute ♦ 1997
Treasurer ♦ Greater Oregon Chapter ♦ Appraisal Institute ♦ 1998
Vice-President ♦ Greater Oregon Chapter ♦ Appraisal Institute ♦ 1999
President ♦ Greater Oregon Chapter ♦ Appraisal Institute ♦ 2000
W. GRANT NORLING
Managing Director/Team Leader – Retail & Office
W. Grant Norling was born in Butte Falls, Oregon, in 1976. He graduated from Willamette
University in 2000 with a Bachelor of Sciences degree in Economics. His
accomplishments/activities at Willamette included honors in Economics, team captain in Crew
(4 years) and participation in numerous community service events. Over the past six years,
Grant has developed a specialty team for appraising retail properties including single-tenant
triple net, strip, neighborhood, community and sub-regional centers.
EDUCATION
Willamette University ♦ Salem, Oregon ♦ 2000
Bachelor of Sciences ♦ Economics
PROFESSIONAL EDUCATION
Basic Appraisal
USPAP
Income Properties
Residential Case Studies
Advanced Income and Application
Highest & Best Use and Market Analysis – Appraisal Institute (520)
Narrative Report Writing – Appraisal Institute (540)
Advanced Income Capitalization – Appraisal Institute (510)
SEMINARS
Real Estate Fraud
Appraisal of Non-Conforming Uses
Commercial Construction
REAL ESTATE EXPERIENCE
Real Estate Appraiser ♦ PGP VALUATION INC
LICENSE AND CERTIFICATION
Certified General Real Estate Appraiser ♦ State of Oregon
Certificate No. C000792
PROFESSIONAL AFFILIATIONS
Appraisal Institute – Newsletter Editor 2003
Commercial Real Estate Women (CREW) – Member and Scholarship Committee Chair
QUALIFICATIONS OF PGP VALUATION INC
PGP VALUATION INC is a leading provider of real estate valuation and consulting services.
Founded in 1978, PGP has offices in Boise, Calgary, Carlsbad, Chicago, Dallas, Denver,
Edmonton, Halifax, Honolulu, Irvine, Portland, Sacramento, San Diego, San Francisco, Seattle,
Toronto, Vancouver (BC), and Vancouver (WA), Worthington. PGP’s partnership with Colliers
Macaulay Nicholls, Inc (Colliers CMN), one of the largest commercial real estate services
providers in the world, has expanded PGP’s ability to serve clients globally.
PGP has extensive experience in a diverse range of commercial property appraisals, with an
expertise in large portfolio valuations. With over 200 experienced appraiser professionals and
an efficient commercial appraisal system, PGP has built a reputation for excellence, customer
service and responsiveness.
PGP’s comprehensive valuation reports are created using the most advanced analytical tools
and recognized appraisal methods. PGP’s appraiser professionals adhere to the Code of Ethics
established by the Appraisal Institute, and strive to maintain the highest level of professional
integrity.
PROFESSIONAL SERVICES
PGP Valuation Inc offers a wide range of services related to the valuation of real estate:
Appraisals:
Single asset and portfolio valuations on all property types,
including residential, commercial, industrial, Low Income
Housing Tax Credits (LIHTC), infrastructure and easements
Partial interest and business valuations
Highest and Best Use
& Market Studies:
Consultation regarding the most profitable utilization of real
property assets
Feasibility and absorption studies of housing and commercial
developments
Preparation of FNMA condominium market studies and valuation
Consultation:
Analysis of real estate regarding values, site development
potential, market standards versus competitive edge amenities,
market conditions, etc.
Litigation Support:
Professional opinions as expert witnesses regarding the
valuation of real estate
Property Tax
Analysis/Appeal:
Representation before government agencies regarding ad
valorem taxes, including preliminary value consultation
appraisals and Board of Equalization presentations
PGP VALUATION INC OFFICE LOCATIONS - USA
CARLSBAD – Corporate HQ
5796 Armada Drive. Suite 210
Carlsbad, CA 92008
877.720.2525 Phone
760.730.3372 Fax
HONOLULU
1038 Queen Street, Suite 2D
Honolulu, HI 96814
808.591.2846 Phone
808.591.2848 Fax
SAN FRANCISCO
50 California, Floor 19
San Francisco, California 94111
415.788.3100 Phone
415.373.4500 fax
Kenneth Harrison, MAI
President & CEO
Bobby Hastings, MAI
Senior Managing Director
Jeffrey Shouse
Philip Steffen, MAI
Executive Vice President
IRVINE
One Park Plaza, Suite 950
Irvine, CA 92614
949.253.9510 Phone
949.253.9075 Fax
SEATTLE
1325 4th Avenue, Suite 500
Seattle, WA 98101
206.343.7477 Phone
206.682.7207 Fax
Philip Steffen, MAI
Executive Vice President
John Campbell
Managing Director
Travis Brown
Chief Operations Officer
Gary Fessenden
Financial Officer
BOISE
910 Main Street, Suite 354
Boise, ID 83702
208.342.0163 Phone
208.424.7767 Fax
James Gibson
Managing Director
CHICAGO
190 South La Salle Street
Suite 2160
Chicago, IL 60603
312.256.0575 Phone
312.256.0675 Fax
Chris Jarvis
DALLAS
4311 Oak Lawn Avenue
Suite 400
Dallas, TX 75219
214.599.9808 Phone
214.853.5900 Fax
Stan Wolf, MAI
PORTLAND
110 SW Yamhill Street
Suite 200
Portland, OR 97204
503.226.0983 Phone
503.273.4273 Fax
Jeremy Snow, MAI
Jeff Grose
Managing Director
Grant Norling
Managing Director
SACRAMENTO
3000 Lava Ridge Court
Suite 220
Roseville, CA 95661
916.724.5500 Phone
916.724.5600 Fax
Joe Creech
Managing Director
Reid Erickson
Managing Director
Cheryl Lotz
Managing Director
VANCOUVER
112 West 11th Street, Suite 250
Vancouver, WA 98660
360.699.4844 Phone
360.699.1904 Fax
Dean Meyer, MAI
Steve Waugh
Managing Director
Marty J. Shearer
WORTHINGTON
870 N High Street
Worthington, OH 43085
614.540.2950 Phone
614.540.2960 Fax
Jeffrey Shouse
Bruce Nell
DENVER
7900 E Union Avenue
Suite 1100
Denver, CO 80237
214.599.9808 Phone
214.853.5900 Fax
SAN DIEGO
750 B Street, Suite 3250
San Diego, CA 92101
877.720.2525 Phone
760.730.3372 Fax
Jonathan Fletcher
Senior Appraiser
Lance Dore, MAI
Ed Carlson, MAI
Sean S. Yousofy
Managing Director
PGP VALUATION INC OFFICE LOCATIONS - CANADA
CALGARY
1000 Royal Bank Building
335 - 8 Avenue SW
Calgary, AB T2P 1C9
403.265.9180 Phone
403.265.6495 Fax
HALIFAX
1791 Barrington Street
Suite 900
Halifax, NS B3J 3K9
902.422.1422 Phone
902.429.9866 Fax
Chris Marlyn, AACI
Managing Director
Mitch Wile
Senior Manager
EDMONTON
3555 Manulife Place
10180-101 Street
Edmonton, AB T5J sS4
780.420.1585 Phone
780.424.7830 Fax
TORONTO
1 Queen Street East
Suite 2200
Toronto, ON M5C 2Z2
416.777.2277 Phone
416.643.3470 Fax
Kenneth Duffin, AACI
Managing Director
Shawn Oakley, AACI
Managing Director
VANCOUVER
Granville Square
200 Granville Street
Suite 1910
Vancouver, BC V6C 2R6
604.681.4111 Phone
604.661.0849 Fax
Howie Charters, CLP, FRI
Managing Director

Property Appraisal Summary - Portland Development Commission

Transcription

Similar documents

CBIZ Valuation Group, LLC

Sample Report

Business Valuation

How to Buy Data and Why Buy Data: e2Value Whitepaper

Hexter-Fair FirstAmerican Title~

Appraisal Districts San Antonio Area

request to correct name or address on a real property account

Your home. Your value. - Butler County Auditor

Pope John Paul II`s Teaching on Sexuality and Marriage: An Appraisal