Appraisal Report - City of Palm Desert

Transcription

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APPRAISAL REPORT
LAND VALUE STUDY
FORMER CASEY’S RESTAURANT PROPERTY
42-455 WASHINGTON STREET
PALM DESERT, CALIFORNIA
Date of Report
July 22, 2014
Effective Date
of Appraisal
July 21, 2014
Prepared for
CITY OF PALM DESERT
73-510 Fred Waring Drive
Palm Desert, California 92260
Prepared by
Scott A. Lidgard, MAI, CCIM
LIDGARD AND ASSOCIATES, INC.
2492 North Santiago Boulevard
Orange, California 92867-1862
Report Reference No. 7524
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July 22, 2014
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260
Attention:
Subject:
Martin C. Alvarez
Director of Economic Development
Land Value Study
Former Casey’s Restaurant Property
42-455 Washington Street
Palm Desert, California
Long Beach Office:
3353 Linden Avenue
Suite 200
Long Beach, CA
90807 – 4503
In accordance with your request and authorization, I have completed an
appraisal study of the above-referenced property on behalf of the client
indicated above.
Orange County Office:
2592 N. Santiago Blvd.
The valuation study consisted of (1) an inspection of the subject Orange, CA
92867 – 1862
property from the adjacent rights-of-way, (2) a review of public records,
(3) the research and collection of comparable market data in the
immediate and general subject market area, (4) a valuation employing
the Sales Comparison Approach based on an analysis of the Telephone:
comparable market data, and (5) preparation of this formal narrative (562) 988-2926
(714) 633-8441
appraisal report in summation of the activities outlined above.
Facsimile:
The subject property is located at the southwest corner of Washington (714) 633-8449
Street and Avenue of the States, within the City of Palm Desert. The
parcel has a relatively prominent signalized corner location along the
Washington Street commercial corridor. The site has an effectively
rectangular land configuration, generally level topography, and contains
1.644 acres, or 71,613 square feet of land area. Reference the
accompanying appraisal report for a complete description of the
subject property and valuation analysis process.
The purpose of this appraisal study is to express an estimate of market
value of the subject property underlying land parcel based on the
extraordinary assumption that the existing restaurant facility has been
demolished/cleared from the site and the parcel is readily available for a
highest and best use development.
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City of Palm Desert
Attention: Martin C. Alvarez
July 22, 2014
Page 2
An extraordinary assumption is defined in the Dictionary of Real Estate Appraisal,
Fourth Edition, Page 106-107, published by the Appraisal Institute as follows:
“An assumption, directly related to a specific assignment, which, if found
to be false, could alter the appraiser’s opinions or conclusions.
Extraordinary assumptions presume as fact otherwise uncertain
information about physical, legal, or economic characteristics of the
subject property; or about conditions external to the property such as
market conditions or trends; or about the integrity of data used in an
analysis.”
In the event conditions relating to the extraordinary assumption set forth above,
do not materialize, the final conclusion of value set forth herein may or may not
be credible.
Market value as defined in Title XI of the Financial Institutions Reform, Recovery
and Enforcement Act of 1989 (FIRREA) is defined as follows:
"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 and knowledgeably,
and assuming 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 U.S. 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.”
The intended use of this appraisal report is to assist the City of Palm Desert in
potential sale negotiations with a private developer. It is understood that the
report will also be provided to the State of California, Department of Finance, as a
basis for approving the sale. Intended users are City officials and consultants
thereof for the explicit purpose indicated above. This report is not intended to be
distributed to, or relied upon by, third parties, except as provide for herein.
City of Palm Desert
Attention: Martin C. Alvarez
July 22, 2014
Page 3
After considering the various factors which influence value, the market value of
the subject property, in as-is condition, as of July 21, 2014, is as follows:
ONE MILLION SEVEN HUNDRED SIXTY THOUSAND DOLLARS
$1,760,000.
It should be noted that the demolition/clearing/abatement cost estimates were
prepared without the benefit of actual contractor bids. While said costs are
deemed to be within a reasonable range, a potential buyer of the property would
be advised to conduct a comprehensive study involving numerous contractor
bids and consultation with City building officials. In the event a formal study is
prepared, and cost estimates vary considerably from those employed herein, the
appraiser reserves the right to revise the final estimate of value.
This appraisal complies with the reporting requirements set forth in the Uniform
Standards of Professional Appraisal Practice, under Standard Rule 2-2(a). This
report contains a moderate level of detail with respect to the market data,
appraisal methodology, and reasoning supporting the analysis, opinions, and
conclusions. It contains sufficient information for the purpose, intent, and users
for which it is written.
This appraisal report is submitted in triplicate; we have retained a file copy.
Please do not hesitate to contact the undersigned in the event you require
additional information from our file.
Very truly yours,
LIDGARD AND ASSOCIATES, INC.
Certified General Real Estate Appraiser
California Certification No. AG 004014
Renewal Date: March 13, 2016
SAL:sp
TABLE OF CONTENTS
Title Page
Letter of Transmittal
Table of Contents
PREFACE
Executive Summary
Location Map
Date of Value
Purpose of the Appraisal
Intent and Users of the Appraisal
Property Rights Appraised
Appraiser's Certification
Scope of the Appraisal
Assumptions and Limiting Conditions
Terms and Definitions
SUBJECT PROPERTY DESCRIPTION
Apparent Vestee
Property Address
Legal Description
Plat Map
Site Description
Existing Improvements
Assessment Data
Ownership History
Neighborhood Environment
VALUATION ANALYSIS
Highest and Best Use Analysis
Valuation Methods
Sales Comparison Approach
Demolition/Clearing Costs
Final Estimate of Market Value
Exposure Time
MARKET DATA
Summary of Commercial Land Value Indicators
Market Data Location Map
Commercial Land Sales Data and Photographs
TABLE OF CONTENTS (Continued)
ADDENDA
Additional Subject Property Photographs
Legal Description of Subject Property
Coachella Valley Region Description
Qualifications of Appraiser
PREFACE
EXECUTIVE SUMMARY
PURPOSE OF APPRAISAL:
Market value of the subject property in as-is
condition.
CLIENT IDENTIFICATION:
City of Palm Desert
PROPERTY ADDRESS:
APPARENT VESTEE:
City of Palm Desert
SITE DESCRIPTION:
Land area:
1.644 acres, per Parcel Map No. 36363 prepared by MSA Consulting, Inc., dated January,
2014.
Land shape:
Zoning:
Soil contamination:
Effectively rectangular land configuration.
PC-2 (planned commercial district).
None known or observed by appraiser, however, a comprehensive soil study was not provided for review. The subject property has been
appraised herein as though free of soil contaminants, if any.
Present use:
Highest and best use:
Assessor's No.:
Vacant land.
Commercial development.
637-071-002 (portion)
EXISTING IMPROVEMENTS: The subject property is presently improved with
a vacant/abandoned restaurant facility which
has reached the end of its economic and physical life. The building is of average quality, wood
frame/siding construction, contains 5,292
square feet, and was originally constructed in
1960±.
Other appurtenant on-site improvements located within the boundaries of the subject property
include an outdoor patio area having 1,755
square feet of seating area, asphalt paving,
concrete paving, concrete planter curbing,
marked automobile parking spaces, concrete
auto stops, and ornamental landscaping.
Overall condition of the building and on-site improvements is rated fair-poor, considering the
age.
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EXECUTIVE SUMMARY (Continued)
EXISTING IMPROVEMENTS: (Continued)
Future development of the subject parcel will
require the demolition/clearing of the existing
building and on-site improvements, along with
abatement of lead based paint and asbestos
material. The valuation analysis incorporates
an estimate of demolition/clearing costs which
would be incurred by a developer as an extraordinary cost. Reference the accompanying
appraisal report for a complete description of
the subject property and valuation analysis
process.
DATE OF VALUE:
July 21, 2014
DATE OF REPORT:
July 22, 2014
VALUATION ANALYSIS:
Sales Comparison
Approach:
Cost-Summation
Approach:
Income Capitalization
Approach:
RECONCILIATION:
FINAL ESTIMATE
OF VALUE:
$1,760,000.
Not applicable.
Not applicable.
Inasmuch as the highest and best use of the
subject property is the demolition/clearing of
the existing restaurant facility to make way for a
new commercial development, the Sales Comparison Approach, as applied to land value, is
the only approach considered applicable in the
subject case.
$1,760,000.
It should be noted that the demolition/clearing/abatement cost estimates were prepared without the benefit of actual contractor
bids. While said costs are deemed to be within
a reasonable range, a potential buyer of the
property would be advised to conduct a com-
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EXECUTIVE SUMMARY (Continued)
FINAL ESTIMATE
OF VALUE: (Continued)
prehensive study involving numerous contractor bids along with consultation with City building officials. In the event a formal study is prepared and cost estimates vary considerably
from those employed herein, the appraiser reserves the right to revise the final estimate of
value.
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DATE OF VALUE
The date of value employed in this report, and all opinions and computations
expressed herein, are based on July 21, 2014, said date being generally
concurrent with the last inspection of the subject property and valuation
analysis process.
PURPOSE OF THE APPRAISAL
The purpose of this appraisal report is to express an estimate of the unencumbered fee simple market value of the subject property in as-is conditionn, absent any liens, leases, or other encumbrances, as of the date of value set forth above. The definition of market value is set forth in the following
portion of this section following the heading "Definition of Market Value".
Further, it is the purpose of this appraisal report to describe the subject
property, and to render an opinion of the highest and best use based on (1)
the character of existing and potential development of the property appraised, (2) the requirements of local governmental authorities affecting the
subject property, (3) the reasonable demand in the open market for properties similar to the subject property, and (4) the location of the subject property considered with respect to other existing and competitive districts within
the immediate subject market area.
Further, it is the purpose of this appraisal report to provide an outline of certain factual and inferential information which was compiled and analyzed in
the process of completing this appraisal study.
INTENT AND USERS OF APPRAISAL
The intended use of this appraisal report is to assist the City of Palm Desert
in potential sale negotiations with a private developer. It is understood that
the report will also be provided to the State of California, Department of Finance, as a basis for approving the sale. Intended users are City officials
and consultants thereof for the explicit purpose indicated above. This report
is not intended to be distributed to, or relied upon by, third parties, except as
provide for herein.
PROPERTY RIGHTS APPRAISED
The property rights appraised herein are those of the unencumbered fee
simple interest. Fee simple is defined in the 12th Edition of The Appraisal of
Real Estate, as, "Absolute ownership by any other interest or estate, subject
only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.”
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CERTIFICATION
The undersigned does hereby certify, except as otherwise noted in this appraisal report, that:
I have personally inspected the subject property from the adjacent rights-ofway; I have no present or contemplated future interest in the real estate which
is the subject of this appraisal report. Also, I have no personal interest or bias
with respect to the subject matter of this appraisal report, or the parties involved in this assignment.
My engagement in this assignment, and the amount of compensation, are not
contingent upon the reporting or development of pre-determined values or direction in value that favors (1) the cause of the client, (2) the amount of the
value opinion, (3) the attainment of predetermined/stipulated results, or (4) the
occurrence of a subsequent event directly related to the intended use of this
appraisal. To the best of my knowledge and belief, the statements of fact contained in this appraisal report, upon which the analyses, opinions, and conclusions expressed herein are based, are true and correct.
This appraisal report sets forth all of the assumptions and limiting conditions
(imposed by the terms of this assignment or by the undersigned), affecting
my personal, impartial, and unbiased professional analyses, opinions, and
conclusions.
The analyses, opinions, and conclusions, were developed, and this report has
been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, and the Code of Professional Ethics. As of the date of this report, I have completed the requirements of the continuing education program
of the State of California. Further, duly authorized representatives of the State,
as well as the Appraisal Institute, have the right to review this report.
I have not performed services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the 3-year period
immediately preceding acceptance of this assignment. Jason P. Boyer provided real property appraisal assistance to the person signing this report with
respect to data collection, inspection of the properties, and report preparation.
No one other than the undersigned prepared the analyses, conclusions, and
opinions of this appraisal study.
___________________________________
Certified General Real Estate Appraiser
California Certification No. AG 004014
Renewal Date: March 13, 2016
Date: July 22, 2014
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SCOPE OF THE APPRAISAL
The appraiser, in connection with the following appraisal study, has:
1. Been retained, and has accepted the assignment, to make
an objective analysis/valuation study of the subject property
and to report, without bias, his estimate of fair market value.
The subject property is particularly described in the following portion of this report in the section entitled Subject Property Description.
2. Toured the general area by automobile to acquaint himself
with the extent, condition, and quality of nearby developments, sales and offerings in the area, density and type of
development, topographical features, economic conditions,
trends toward change, etc.
3. Walked within the subject property, and some of the nearby
neighborhood, to acquaint himself with the current particular
attributes, or shortcomings, of the subject property.
4. Completed an inspection of the subject property for the
purpose of becoming familiar with certain physical characteristics.
5. Made a visual observation concerning public streets, access, drainage, and topography of the subject property.
6. Obtained information regarding public utilities and sanitary
sewer available at the subject site.
7. Made, or obtained from other qualified sources, calculations
on the area of land contained within the subject property.
Has made, or caused to be made, plats and plot plan drawings of the subject property, and has checked such plats
and plot plan drawings for accuracy and fair representation.
8. Taken photographs of the subject property, together with
photographs of the immediate environs.
9. Made, or caused to be made, a search of public records for
factual information regarding the recent sales of the subject
property, and for recent sales of comparable properties.
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SCOPE OF THE APPRAISAL (Continued)
10. Has viewed, confirmed the sale price, and obtained certain
other information pertaining to each sale property contained
in this report.
11. Reviewed current maps, zoning ordinances, and other material for additional background information pertaining to the
subject property, and sale properties.
12. Attempted to visualize the subject property as it would be
viewed by a willing and informed buyer.
13. Interviewed various persons, in both public and private life,
for factual and inferential information helpful in this appraisal
study.
14. Formed an opinion of the highest and best use applicable to
the subject property appraised herein.
15. Formed an estimate of market value of the unencumbered
fee simple interest in the subject property, in as-is condition,
as of the date of value expressed herein.
16. Prepared and delivered this appraisal report, in triplicate, in
summation of all the activities outlined above.
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ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal is made with the following understanding as set forth in items
No. 1 through 19, inclusive:
1. That liability of Lidgard and Associates, Inc., along with the
specific appraiser responsible for this report, is limited to the
client only and to the fee actually received by the firm.
There is no accountability, obligation or liability to any third
party reader/user of this report. In the event this appraisal
report is delivered to anyone other than the client for whom
this report was prepared, it is the client’s responsibility to
make such party and/or parties aware of all limiting conditions and assumptions of this assignment and related discussions.
2. That in the event the client or any third party brings legal action against Lidgard and Associates, Inc., or the preparer of
this report, and the appraiser prevails, the party initiating
such legal action shall reimburse Lidgard and Associates,
Inc. and/or the appraiser for any and all costs of any nature,
including attorney’s fees, incurred in their defense.
3. This appraisal report is intended to comply with reporting
requirements set forth in the Uniform Standards of Professional Appraisal Practice, under Standard Rule 2-2(a). It
contains a moderate level of detail with respect to the market data, appraisal methodology, and reasoning supporting
the analysis, opinions, and conclusions. This report contains
sufficient information for the intended use and users for
which it was written.
4. That title to the subject properties is assumed to be good
and merchantable. Liens and encumbrances, if any, have
not been deducted from the final estimate of value. The
vesting was obtained from County Records, or other
sources, and has been relied upon as being accurate. The
subject properties have been appraised as though under
responsible ownership. The legal descriptions are assumed
accurate.
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ASSUMPTIONS AND LIMITING CONDITIONS (Continued)
5. That the appraiser assumes there are no hidden or unapparent conditions of the subject properties, subsoil, structures, or other improvements, if any, which would render
them more or less valuable. Further, the appraiser assumes no responsibility for such conditions or for the engineering which might be required to discover such conditions. That mechanical and electrical systems and equipment, if any, except as otherwise may be noted in this report, are assumed to be in good working order. The properties appraised are assumed to meet all governmental
codes, requirements, and restrictions, unless otherwise
stated.
6. That no soils report, topographical mapping, or survey of the
subject properties was provided to the appraiser; therefore
information, if any, provided by other qualified sourcespertaining to these matters is believed accurate, but no liability
is assumed for such matters. Further, information, estimates and opinions furnished by others and contained in
this report pertaining to the subject properties and market
data were obtained from sources considered reliable and
are believed to be true and correct. No responsibility, however, for the accuracy of such items can be assumed by the
appraiser.
7. That unless otherwise stated herein, it is assumed there are
no encroachments, easements, soil toxics/contaminants, or
other physical conditions adversely affecting the value of the
subject properties.
8. That no opinion is expressed regarding matters which are
legal in nature or other matters which would require specialized investigation or knowledge ordinarily not employed by
real estate appraisers, even though such matters may be
mentioned in the report.
9. That no oil rights have been included in the opinion of value
expressed herein. Further, that oil rights, if existing, are assumed to be at least 500 feet below the surface of the land,
without the right of surface entry.
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10. That the distribution of the total valuation in this report between land and improvements, if any, applies only under the
existing program of utilization. The separate valuations for
land and improvements must not be used in conjunction
with any other appraisal and are invalid if so used.
11. That the valuation of the properties appraised is based upon
economic and financing conditions prevailing as of the date
of value set forth herein. Further, the valuation assumes
good, competent, and aggressive management of the subject properties.
12. That the appraiser has conducted a visual inspection of the
subject properties and the market data properties. Should
subsequent information be provided relative to changes or
differences in (1) the quality of title, (2) physical condition or
characteristics of the properties, and/or (3) governmental
restrictions and regulations, which would increase or decrease the value of the subject properties, the appraiser reserves the right to amend the final estimate of value.
13. That the appraiser, by reason of this appraisal, is not required to give testimony in court or at any governmental or
quasi-governmental hearing with reference to the properties
appraised, unless contractual arrangements have been
previously made therefor.
14. That drawings, plats, maps, and other exhibits contained in
this report are for illustration purposes only and are not
necessarily prepared to standard engineering or architectural scale.
15. That this report is effective only when considered in its entire
form, as delivered to the client. No portion of this report will
be considered binding if taken out of context.
16. That possession of this report, or a copy thereof, does not
carry with it the right of publication, nor shall the contents of
this report be copied or conveyed to the public through advertising, public relations, sales, news, or other media, without the written consent and approval of the appraiser, particularly with regard to the valuation of the properties
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appraised and the identity of the appraiser, or the firm with
which he is connected, or any reference to the Appraisal Institute, or designations conferred by said organizations.
17. That the form, format, and phraseology utilized in this report,
except the Certification, and Terms and Definitions, shall not
be provided to, copied, or used by, any other real estate appraiser, real estate economist, real estate broker, real estate
salesman, property manager, valuation consultant, investment counselor, or others, without the written consent and
approval of Scott A. Lidgard.
18. That cost estimates employed in this report were prepared
without the benefit of actual contractor bids. While said
costs are deemed to be within a reasonable range, a potential buyer of the property would be advised to conduct a
comprehensive study involving numerous contractor bids
and consultation with City building officials. In the event a
formal study is prepared, and cost estimates vary considerably from those employed herein, the appraiser reserves
the right to revise the final estimate of value.
19. That this appraisal study is considered completely confidential and will not be disclosed or discussed, in whole or in
part, with anyone other than the client, or persons designated by the client.
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TERMS AND DEFINITIONS
Certain technical terms have been used in the following report which are defined, herein, for the benefit of those who may not be fully familiar with said
terms.
MARKET VALUE (or Fair Market Value):
Market value is sometimes referred to as Fair Market Value; the latter is a
legal term, and a common synonym of Market Value. Market value as defined in Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) is defined as follows:
"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 and knowledgeably, and assuming 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 U.S. 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."
SALES COMPARISON APPROACH:
One of the three accepted methods of estimating Market Value. This approach consists of the investigation of recent sales of similar properties to
determine the price at which said properties sold. The information so gathered is judged and considered by the appraiser as to its comparability to the
subject property. Recent comparable sales are the basis for the Sales
Comparison Approach.
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TERMS AND DEFINITIONS (Continued)
COST-SUMMATION APPROACH:
Another accepted method of estimating Market Value. This approach consists of estimating the new construction cost of the building and yard improvements and making allowances for appropriate amount of depreciation.
The depreciated reconstruction value of the improvements is then added to
the Land Value estimate gained from the Sales Comparison Approach. The
sum of these two figures is the value indicated by the Cost-Summation Approach.
INCOME CAPITALIZATION APPROACH:
The Income Capitalization Approach consists of capitalizing the net income
of the property under study. The capitalization method studies the income
stream, allows for (1) vacancy and credit loss, (2) fixed expenses, (3) operating expenses, and (4) reserves for replacement, and estimates the amount
of money which would be paid by a prudent investor to obtain the net income. The capitalization rate is usually commensurate with the risk, and is
adjusted for future depreciation or appreciation in value.
DEPRECIATION:
Used in this appraisal to indicate a lessening in value from any one or more
of several causes. Depreciation is not based on age alone, but can result
from a combination of age, condition or repair, functional utility, neighborhood influences, or any of several outside economic causes. Depreciation
applies only to improvements. The amount of depreciation is a matter for
the judgment of the appraiser.
HIGHEST AND BEST USE:
Used in this appraisal to describe that private use which will (1) yield the
greatest net return on the investment, (2) be permitted or have the reasonable probability of being permitted under applicable laws and ordinances, and
(3) be appropriate and feasible under a reasonable planning, zoning, and
land use concept.
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SUBJECT PROPERTY
DESCRIPTION
SUBJECT PROPERTY
Aerial view of subject property situated at the southwest corner of
Washington Street and Avenue of the States, within the City of Palm Desert.
See additional photographs in the Addenda Section.
VESTEE:
Successor Agency to the Palm Desert
Redevelopment Agency
Mailing Address: 73-510 Fred Waring Drive
Palm Desert, CA 92260
Telephone:
c/o Martin C. Alvarez
(760) 346-0611, ext. 414
PROPERTY ADDRESS:
LEGAL DESCRIPTION:
Parcel 2, Parcel Map No. 36363, comprising
a portion of the Northeast ¼ of Section 13,
Township 5 South, Range 6 East, San
Bernardino Baseline and Meridian, per MSA
Consulting, Inc.
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SITE DESCRIPTION
COMMENT:
The easterly portion of the subject property
is presently improved with an older vacant/abandoned restaurant facility which has
reached the end of its physical and
economic life. The existing improvements
are scheduled for demolition/clearing in
order to make way for a highest and best
use commercial development as permitted
under the current zone.
The valuation
analysis incorporates estimated demolition/clearing costs.
LOCATION:
Southwest corner of Washington Street and
Avenue of the States, within the corporate
limits of the City of Palm Desert.
MAP COORDINATES:
Thomas Bros. Map Page 819, Grid F-5.
CENSUS TRACT:
Property located in Government Census
Tract 449.11.
LAND SHAPE:
Effectively rectangular land shape; see
highlighted portion of plat map on the
opposite page.
DIMENSIONS:
Various and numerous dimensions.
LAND AREA:
1.644 acres, per Parcel Map No. 36363
prepared by MSA Consulting, Inc., dated
January, 2014, or 71,613 square feet.
TOPOGRAPHY:
Effectively level topography.
DRAINAGE:
Appears to be adequate; no depressions or
low areas were noted within the boundaries
of the subject property which would cause a
water ponding condition during the rainy
season.
SOIL STABILITY:
Appears to be adequate based upon the
existing development at the subject site, as
well as surrounding developments; it should
be noted that a soils report was not provided
for review.
2
SITE DESCRIPTION (Continued)
SOIL CONTAMINATION:
None known or observed, however, a soils
study has not been provided for review. The
subject property has been appraised as
though free of soil contaminants.
ACCESS:
The subject property has frontage along
Washington Street and Avenue of the States.
RIGHTS-OF-WAY WIDTH:
Washington Street:
110 feet.
Avenue of the States: 100 feet.
STREET SURFACING:
Asphalt paved traffic lanes.
CURB AND GUTTER:
Concrete curb and gutter (each side of each
street).
SIDEWALK:
Concrete sidewalk (each side of each street).
STREET LIGHTS:
Mounted on ornamental standards.
PUBLIC UTILITIES:
Water, gas, electric power, and telephone
are available at the site.
SANITARY SEWER:
Available to site.
ENCROACHMENTS:
None known, or observed during the field
inspection, however, a survey of the subject
property was not provided for review.
EASEMENTS:
A title report pertaining to the subject
property was not provided for review.
Easements, if existing, are assumed to be
located along property boundaries not
interfering with the existing or future highest
and best use of the subject property. It is
further assumed there are no “cross-lot” or
“blanket” easements.
ILLEGAL USES:
None observed.
EARTHQUAKE FAULT:
The subject property is not located within an
earthquake fault study zone. The greater
Southern California area, however, is gener-
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SITE DESCRIPTION (Continued)
EARTHQUAKE FAULT: (Continued)
rally prone to earthquakes and other seismic
disturbances.
No seismic or geological
studies have been provided for review. No
responsibility is assumed for the possible
impact on the subject property of seismic
activity and/or earthquakes.
PRESENT USE:
Effectively vacant land.
ZONING:
The subject property is located within the PC2 (planned commercial district) zone of the
City of Palm Desert. The purpose and intent
of the PC district is to provide flexibility in
development, and encourage creative/imaginative
development
design
for
commercial centers throughout the City.
Legally permitted uses within the PC-2 zone
classification include supermarkets, professional
offices,
drug
stores,
financial
institutions, hotels, restaurants (without drive
through facilities), and limited recreation
establishments.
Proposed developments must adhere to a
preliminary review through the director of
environmental services prior to formal
submission of a building application. All
developments must include a minimum
landscape requirement of 15% of the total
site area.
The on-site automobile parking requirement
for restaurant uses is based on ten spaces
for each 1,000 square feet of gross floor area
for restaurants up to 3,000 square feet, and
15 spaces or each 1,000 square feet in
excess of 3,000. The minimum number of
parking spaces is ten.
4
EXISTING IMPROVEMENTS
COMMENT:
As stated, the subject property is presently
improved
with
a
vacant/abandoned
restaurant facility which has reached the end
of its economic and physical life.
The
building is of average quality, wood
frame/siding construction, contains 5,292
square feet, and was originally constructed in
1960±.
Other appurtenant on-site improvements
located within the boundaries of the subject
property include an outdoor patio area
having 1,755 square feet of seating area,
asphalt paving, concrete paving, concrete
planter curbing, marked automobile parking
spaces,
concrete
auto
stops,
and
ornamental landscaping. Overall condition of
the building and on-site improvements is
rated fair-poor, considering the age.
Future development of the subject parcel will
require the demolition/clearing of the existing
building and on-site improvements, along
with abatement of lead based paint and
asbestos material. The valuation analysis
incorporates an estimate of demolition/clearing costs which would be incurred by a
developer as an extraordinary expense.
ASSESSMENT DATA
ASSESSOR'S PARCEL NO.:
Portion of 637-071-002
ASSESSED VALUATIONS:
Not applicable; vested with public entity.
TAX CODE AREA:
18259
TAX YEAR:
2013-2014
REAL ESTATE TAXES:
Not applicable; vested with public entity.*
SPECIAL ASSESSMENTS:
None known.
* Real estate taxes will be based upon approximately
1.15% of the current cash value placed on the
subject property by the Riverside County Assessor,
in the event the subject property is sold to a private
party (per Proposition 13).
5
OWNERSHIP HISTORY
COMMENT:
A quit claim deed conveying title from the
Palm Desert to the Successor Agency to the
Palm Desert Redevelopment Agency,
recorded December 10, 2012 as Document
No. 600317. There has been no market
related transaction involving the subject
property in recent years. It is understood
that the City of Palm Desert intends to
market the property for sale in the near
future.
NEIGHBORHOOD ENVIRONMENT
COMMUNITY:
The City of Palm Desert was incorporated
November 26, 1973 as a general law city,
governed
under
California’s
State
regulations.
The City’s designation was
amended by Citywide referendum in 1997
from a general law to a charter city as a
means of preserving the historical principals
of self governance.
The Palm Desert City Council consists of five
councilpersons elected at large for four-year
terms; the mayor is appointed from among
the council members.
The City Council
enacts City ordinances, establishes policies,
represents the public, maintains intergovernmental relations, and exercises
general oversight over the affairs of City
government including the Redevelopment
Agency,
Financing
Authority,
Housing
Authority, and Parking Authority.
Palm Desert is situated within the Coachella
Valley of the Colorado Desert, surrounded by
the San Jacinto Mountains to the east and
the Santa Rosa Mountains to the south.
Neighboring communities include Indio,
Thousand Palms, La Quinta, Indian Wells,
Rancho Mirage, Cathedral City, and Palm
Springs.
6
NEIGHBORHOOD ENVIRONMENT (Continued)
COMMUNITY: (Continued)
Interstate 10 is the primary freeway
accessing the greater Coachella Valley
region.
Predominant intersecting streets
entering the City of Palm Desert include
Washington Street, Cook Street, Portola
Avenue, Monterey Avenue, and Highway
111.
The City of Palm Desert encompasses 27
square miles; the elevation is 220 feet above
sea level. The total permanent resident population within City limits is reported at 48,445
persons. Seasonal residents are reported at
32,000 persons. The average household
size is approximately 2.08 persons. The
median household income is $67,328, and
the per capita income is $42,339.
The Palm Desert labor market is allocated
between a primary market area (30-mile
radius), and a secondary market area (60mile radius). The top ten private employers
within the City of Palm Desert, as of 2010, are
summarized as follows:
No. of
Employer
Employees
JW Marriott Desert Springs Golf Resort
2,000
Universal Protection Services
1,500
Guthy-Renker
825
Securitas
700
Desert Arc
400
Wal-Mart
350
Marriot Desert Springs Villas
304
Macy’s
301
Toscana Country Club
300
Bighorn Golf Club
250
There are a total of 17 hotels and 20
shopping centers/plazas located within the
City boundaries. The predominant hotels
include Embassy Suites, Fairfield Inn, JW
Marriott Desert Springs Resort and Spa,
7
COMMUNITY: (Continued)
Marriott Shadow Ridge, Shadow Mountain
Resort, Best Western Palm Desert Resort,
etc. Predominant shopping centers include
the El Paseo shopping district, Westfield
Shoppingtown,
Palm
Desert,
Desert
Crossing, and the Desert Gateway anchored
by Super Walmart and Sam’s Club.
The Palm Springs International Airport is the
hub of the transportation network for the
Coachella Valley region. The airport facility
serves nine airlines including four major and
five regional carriers.
Recent airport
improvements include a 60,000 square foot
terminal building, expansion of the runway,
and state-of-the-art taxi/bus holding facilities.
The Union Pacific Railroad runs parallel to
Interstate 10, and offers Amtrak transcontinental service. Bus transportation within
the City limits is provided by Greyhound and
Sunline Systems.
The Coachella Valley region offers a wide
variety of cultural, recreational, educational,
and entertainment options.
LOCATION:
The subject property is located toward the
center portion of the City of Palm Desert,
adjacent to unincorporated County territory.
Neighboring and adjoining communities
include the Cities of Indio, La Quinta, Indian
Wells, Rancho Mirage, Cathedral City, and
Palm Springs.
LAND USES:
Land uses in the general area are quite
varied, and include multi-tenant commercial
retail and office oriented developments,
multiple family residential uses, single family
residential
subdivisions,
and
resort
communities.
8
LAND USES: (Continued)
Predominant
land
uses
include
the
Havenwood Country Club, Palm Desert
Resort Country Club, Indian Ridge Country
Club, Palm Desert Country Club, Indian Wells
Tennis Garden, Palm Royale Country Club,
Bermuda Dunes Country Club, Christian
School of the Desert High School, and the
Sun City retirement community.
The El Paseo Commercial retail district, along
with the Westfield Shoppingtown, are located
approximately three miles southerly of the
subject property. Other commercial retail
uses are located along the Highway 111
corridor.
Based on a tour of the general subject
vicinity, the overall compatibility of existing
land uses is rated average. No substantial
adverse conditions were noted which would
have a measurable impact on the value of
the subject property.
BUILT-UP:
Effectively 65% built-up.
OCCUPANCY:
Residential:
Commercial:
Industrial:
PRICE RANGE:
55±% owners
45±% tenants
30±% owners
70±% tenants
35±% owners
65±% tenants
Commercial land parcels within the greater
Coachella Valley region generally range from
$15.00 to exceeding $30.00 per square foot
of land area. The upper range of value
pertains primarily to prominent commercial
corner locations, whereas the lower range
consists of large unimproved acreage land
parcels.
Improved single family residential properties
generally range in value from $300,000 to
exceeding $600,000. The lower value range
9
PRICE RANGE: (Continued)
primarily consists of 2-bedroom/1-bathroom
dwellings, whereas the upper value range
includes three and four bedroom dwellings
located within resort developments.
Multiple family residential properties are
within a much broader value range; smaller
complexes such as duplexes and triplexes,
generally range from $350,000 to exceeding
$650,000. Larger multiple family residential
complexes range in value in excess of
several million dollars.
Improved commercial properties range in
value from approximately $500,000 for
single tenant, typically owner-user facilities, to
exceeding several million dollars including
large multi-tenant commercial facilities
anchored by national tenants.
Improved single family and low density
multiple family residential developments
generally range from $250,000 to exceeding
$500,000. Improved commercial properties
range in value from $500,000 to exceeding
$1,000,000.
AGE RANGE:
The age range of all types of improved
properties is rather broad. Single family
residential properties generally range in age
from effectively new to exceeding 40 years.
There are numerous commercial properties
which have been recently built in the
immediate area.
PRIDE OF OWNERSHIP:
Overall pride of ownership in the general
subject market area, evidenced by an
ongoing maintenance program, is rated
above average.
10
OTHER:
The availability and adequacy of public
facilities, transportation, and commercial
retail facilities is rated average. The City of
Palm Desert provides police and fire
protection to the subject district.
COMMENT:
The reader is referred to a detailed
description of the Coachella Valley Region in
the Addenda Section.
See Valuation Analysis in the following section.
11
VALUATION ANALYSIS
VALUATION ANALYSIS
The purpose of this valuation study is the estimation of market value of the
unencumbered fee simple interest in the subject property in as-is condition.
As stated in the Subject Property Description Section, the existing restaurant
facility has reached the end of its physical and economic life. The analysis
incorporates an estimate of demolition/clearing/abatement expenses which
will be required prior to future development.
Prior to the application of the appraisal process, which in this case employs
the Sales Comparison Approach as applied to land value, it is necessary to
consider and analyze the highest and best use of the subject property.
HIGHEST AND BEST USE ANALYSIS:
Highest and best use is defined in The Appraisal of Real Estate, by the
Appraisal Institute, 14th Edition, Page 332, as:
"The reasonably probable and legal use of property that results
in the highest value.”
In the process of forming an opinion of highest and best use, consideration
must be given to various environmental and political factors such as zoning
restrictions, probability of zone change, private deed restrictions, location,
land size and configuration, topography, and the character/quality of land
uses in the immediate and general subject market area.
There are three basic criteria utilized in the highest and best use analysis of
a property as if vacant, as well as presently improved. The three criteria are
1. Physically possible.
2. Legally permissible.
3. Financially feasible.
The foregoing are typically considered sequentially; for example, a specific
use may prove to be maximally productive, however, if it is not legally
permissible, or physically possible, its productivity is irrelevant.
Physically Possible:
The physical possibility of developing a specific property is governed, in part,
by the size, shape, area, and terrain of the property in question. The
availability of public utilities is also an important consideration in the analysis
of a property's overall development potential.
Bookmarks
1
VALUATION ANALYSIS (Continued)
HIGHEST AND BEST USE ANALYSIS: (Continued)
Physically Possible: (Continued)
Additional physical considerations are warranted when analyzing the highest
and best use of the subject property, as presently improved. The size,
architectural design, and condition of the existing building improvements are
important elements, and may have a substantial impact on the highest and
best use of a property, as presently improved.
Legally Permissible:
Legally permissible uses are determined, in part, by a community's general
plan, zoning requirements, local building codes, and private deed
restrictions.
The general plan of a community is established to assure continuity of
development within the community and the surrounding area. There is
usually a consistency between the general plan of a community and the
various zone classifications. The zone classification sets forth the various
types of development allowed within a specific zone district. Zoning
requirements typically constitute the available choices of development for a
property. Local building codes are generally addressed as part of the zone
classification, and include items such as maximum building densities,
building height restrictions, setback and parking requirements, etc. Private
deed restrictions relate to mutual agreements under which a property was
acquired. Said restrictions may prohibit certain types of development.
Financially Feasible:
Those uses which meet the first two criteria, i.e. physically possible and
legally permissible, are further analyzed in order to determine which uses
produce an adequate return on the investment. The specified use is
considered financially feasible if the net income capable of being generated
is enough to satisfy the required rate of return and provide a return on the
land.
Among those uses which are considered financially feasible, that use which
produces the highest price, or value, consistent with the required rate of
return, is considered the highest and best use of the property.
2
HIGHEST AND BEST USE ANALYSIS: (Continued)
Conclusion:
The subject property has a relatively prominent signalized corner location
along the Washington Street commercial corridor of the City of Palm Desert.
The site has an effectively rectangular land configuration, level topography,
and contains 1.644 acres, or 71,613 square feet of land area. Vehicular and
pedestrian accessibility to the subject site is rated above average.
All public utilities such as water, gas, electric power, telephone, as well as
sanitary sewer are available to the site. The physical characteristics of the
subject parcel are considered adequate to accommodate a variety of legally
permissible uses.
As stated, the subject property is located within the PC-2 (planned
commercial district) zone of the City of Palm Desert. Legally permitted uses
within the PC-2 zone classification include supermarkets, professional
offices, drug stores, financial institutions, hotels, restaurants, and limited
recreation establishments. The optimal utility of the subject site is as zoned.
The existing restaurant facility is judged to have reached the end of its
economic and physical life in a highest and best use context. Future
development will entail demolition/clearing of the building and on-site
improvements along with the abatement of lead based paint and asbestos
material. The valuation analysis incorporates an estimate of demolition/clearing expenses along with abatement costs.
Based on the demand, physical characteristics of the site, as well as the
legally permissible uses, it is the appraiser's opinion that the maximally
productive use, and therefore, the highest and best use of the subject land,
as if vacant, is commercial retail and/or office development.
VALUATION METHODS:
There are three conventional methods (approaches) which can be used to
estimate value. They are the Sales Comparison Approach, Cost-Summation
Approach, and Income Capitalization Approach.
Following is a brief
description of each approach to value.
3
VALUATION METHODS: (Continued)
Sales Comparison Approach:
This approach consists of the investigation of recent sales of
similar properties to determine the price at which said
properties sold. The information so gathered is judged and
considered by the appraiser as to its comparability to the
subject property. Recent comparable sales, either vacant land
or improved properties, are the basis for the application of the
Sales Comparison Approach.
Cost-Summation Approach:
The Cost-Summation Approach consists of estimating the
construction cost new of the building and yard improvements
and making allowances for the appropriate amount of accrued
depreciation. The depreciated reconstruction value of the
improvements is then added to the land value estimate. The
sum of these two figures is the value indicated by the CostSummation Approach.
Income Capitalization Approach:
The Income Capitalization Approach consists of the capitalizing
of net income of the property under appraisement. The
capitalization methodology studies the income stream, allows
for (1) vacancy and credit loss, (2) fixed expenses, and (3) operating expenses.
The value indicated by the Income
Capitalization Approach represents the money which would be
paid by a prudent investor to obtain the net income capable of
being generated by the property. The capitalization rate is
usually commensurate with the inherent risk.
Inasmuch as the highest and best use of the subject property is the
demolition/clearing of the existing restaurant facility to make way for a new
commercial development, the Sales Comparison Approach, as applied to
land value, is the only approach considered applicable in the subject case.
In order to facilitate the valuation analysis process, the subject parcel is
initially appraised herein assuming the site is vacant and readily available for
a highest and best use development. An allowance for the estimated costs
associated with demolition/clearing and abatement will be made in the latter
portion of this section.
4
SALES COMPARISON APPROACH:
The Sales Comparison Approach takes into account properties which have
sold in the open market. This approach, whether applied to vacant or
improved property, is based on the Principle of Substitution which states,
“The maximum value of a property tends to be set by the cost of acquiring
an equally desirable substitute property, assuming no costly delay is
encountered in making the substitution.” Thus, the Sales Comparison
Approach attempts to equate the subject property with sale properties by
analyzing and weighing the various elements of comparability.
The Sales Comparison Approach was applied after conducting an
investigation of market data (commercial land sales) in the greater subject
market area. The reader is referred to the Market Data Section for
comprehensive information pertaining to each sale property employed
herein. Reference the Market Data Map on the following page for an
illustration of the location of the various sale properties.
Primary indicators studied included sales of commercial zoned land parcels
as well as land sales construction cost estimates and depreciation
schedules. Other elements considered included (1) pride of ownership
exhibited by an aggressive and on-going maintenance program, and (2)
trends toward change evidenced by private redevelopment and remodeling,
or gradual continued building degeneration in certain areas.
The knowledge and understanding of present and historical value patterns
and trends affecting the local real estate market are based on the
observation of market conditions and the appraisal of other commercial
properties, as well as information obtained from various sources which
include the following:

Owners:
Interviews were conducted with owners of
commercial properties in the general research area to
determine various market trends, and value patterns.

Tenants: Interviews were conducted with various tenants of
properties located within the immediate subject market area.

Real estate brokers and salespersons: A number of active
brokers and salespersons within the greater subject market
area were interviewed regarding existing and historical lease
and sales data, as well as value patterns and trends.
5
SALES COMPARISON APPROACH: (Continued)

Public officials: Various public officials were interviewed
regarding (1) existing or proposed projects which have an
impact on real property values, (2) economic trends, (3) level
of public services, (4) zone classifications and building
standards, and (5) property tax structure and assessment
districts.

Published data: Information was gathered and studied
regarding population, unemployment levels, employment
centers, commercial sales data as well as rental data, and
other demographic and economic factors.
Land Value:
Following is a summary of those sales considered helpful when estimating
the value of the subject underlying land parcel as if vacant and readily
available for development.
Data
A.
Street
Date
Zoning Land Size Alley Corner Frontage
Sale Price
1-09
CC
52,708 sf
no
no
274 feet
$1,209,000.
S/S Dinah Shore Dr., 387’ W/O Monterey Ave., Rancho Mirage
$ Per SF
$22.94
B.
4-09
CC
40,200 sf*
no
no
150 feet
E/S Washington St., 794’ N/O Fred Waring Dr., La Quinta
$1,300,000.
$32.34
C.
4-11
VC
24,084 sf
no
no
202 feet
S/S Main St., 180’ E/O Desert Club Dr., La Quinta
$ 635,000.
$26.37
D.
5-11
PC-4
54,886 sf*
no
yes
597 feet
NWC State Hwy. 111 and Fred Waring Dr., Palm Desert
$1,550,000.
$28.24
E.
5-12
CN
51,836 sf
no
yes
440 feet
NWC Mirage Rd. and State Hwy. 111, Rancho Mirage
$1,500,000.
$28.94
F.
10-13
CR
34,848 sf
no
yes
NEC State Hwy. 111 and Depot Dr., La Quinta
$ 900,000.
$25.83
323 feet
* Net land area, exclusive of future required street dedication.
6
Land Value: (Continued)
The land sale properties surveyed are located within the general subject
vicinity, and represent the most recent comparable land sale transactions.
The properties range in size from 24,084 to 54,886 square feet of land area.
The overall purchase prices range from $635,000 to $1,550,000, reflecting a
range of $22.94 to $32.34 per square foot of land area.
Due to the absence of a representative number of land sale properties
having recently sold within the immediate subject market area, it was
necessary to expand the (1) chronological time frame, and (2) geographic
search area to include neighboring communities of Rancho Mirage and La
Quinta. Particular consideration has been assigned to market conditions,
general location, as well as immediate environmental influences in the
analysis of the individual sale properties.
All of the sales employed herein conveyed title to the fee simple interest, and
represent arm’s length transactions. Financing terms of each sale are
considered generally typical of the subject market area. Adjustments for
property rights conveyed, conditions of sale, and financing terms, therefore,
are not warranted.
Market Conditions:
Certain of the land sales data considered extended over a time period back
to the first quarter of 2009. The time frame permitted the development of a
rather comprehensive real estate market profile. The sales employed in this
report are set forth in chronological order, and took place between January,
2009 and October, 2013.
Virtually all types of real estate within the greater Southern California region
experienced relatively high levels of value appreciation throughout 2003 to
the first half of 2006. The lack of available properties offered for sale, along
with the expansion of subprime lending practices, have been the primary
reasons for the unprecedented rate of real estate appreciation, particularly
with respect to single family and low density multiple family residential
properties.
While the appreciation rate pertaining to residential properties began to
subside in the middle part of 2006, the market for commercial and industrial
properties, along with vacant land parcels continued to thrive. The destabili-
7
Market Conditions: (Continued)
zation of the residential market was caused by numerous factors including
(1) increasing interest rates, (2) an oversupply of properties available for
sale, (3) the tightening of credit markets wherein difficulty of obtaining
financing began, and (4) the lack or diminishing confidence level regarding
future value appreciation for residential properties.
Within the past four to five years, both the local and national economies have
suffered a major housing and credit crisis which has had a significant impact
on market activity involving all types of real property. The lack of financing
options available for purchase and refinancing activities has had a
detrimental impact on demand and value.
Based on market research findings and analysis of the immediate and
general subject vicinity, it is apparent that values of commercial properties
continued to appreciate through the last quarter of 2007 despite the
meltdown of the residential market. Interviews with active real estate
brokers and salespersons indicate that commercial and industrial
properties, including vacant land parcels, have declined in value
substantially since the peak period.
As stated, appreciating conditions occurred throughout the first three
quarters of 2007 and leveled off during the fourth quarter thereof. Due to the
lack of financing options and overall uncertainty regarding credit markets,
the declining trend gained significant momentum in the last quarter of 2008
and throughout the first quarter of 2009. It is apparent that market
conditions have stabilized since the second half of 2010. There has been an
increase in the demand for vacant land parcels within the past several
months. The increased demand has resulted in a slight upward value trend.
This condition has been considered in the analysis of the individual land sale
properties employed herein.
Elements of Comparability:
After viewing each of the sale properties, and obtaining certain information
pertinent to land value, the appraiser analyzed the various elements of
comparability for each sale property which, among others, include the
following:
8
Elements of Comparability: (Continued)
General location.
Immediate environmental influences.
Zoning.
Vehicular and pedestrian access.
Vehicular and pedestrian traffic.
Availability of public alley.
Overall developability.
Site frontage/depth ratio.
Site prominence and exposure.
Proximity to freeway.
A Relative Comparison Analysis (RCA) has been conducted between the
individual comparable properties and the subject property. The RCA is a
qualitative technique for analyzing comparable sales, and is a valuable tool
employed to illustrate whether the characteristics of a comparable property
are inferior, superior, or similar to those of the property under appraisement.
The Relative Comparison Analysis is similar to paired data analysis without
the use of arbitrary or unsupportable quantitative adjustments.
This
technique acknowledges the imperfect nature of the subject real estate
market. The primary objective is to bracket the subject property between
the comparable sales with respect to the similarity, superiority, and inferiority
thereof. Superior elements of comparability of an individual sale property
would reflect a downward adjustment to the value indication thereof.
Conversely, inferior elements suggest an upward adjustment.
Additionally, it is important to note that the above elements of comparability
were not assigned equal weight in making the analysis of each property.
The general location, immediate environmental influences, vehicular
accessibility, site conditions, site prominence/exposure, and land plottage
were considered the most important factors in the subject case, as follows:
General Location:
Social, economic, and governmental forces have a substantial
influence on property values. Locational factors considered
include, but are not limited to, demographics such as proximity
to housing, schools, employment centers, transportation
facilities, as well as quality of public services, proximity to
freeway corridors, enforcement of codes, and median income
levels.
9
Immediate Environmental Influences:
Considered with respect to the density and quality of existing
developments within the immediate proximity to a specific
property. By contrast, immediate environmental influences
represent a myopic consideration of location as opposed to
more generalized characteristics considered with respect to
general location.
Vehicular Accessibility:
Commercial and industrial properties rely heavily on vehicular
accessibility. Generally, corner locations with multiple access
points command higher values than interior parcels having
single point ingress/egress.
Site Conditions:
This factor is considered with respect to the condition of the
property at the time of the sale. While certain properties are
acquired based on the underlying land value, often times
improvements exist on the site which either contribute or
detract from the value. In many instances, an additional
expense must be incurred to demolish existing improvements
which expense increases the cost of the underlying land. In
contrast, however, a nominally improved property may be
receiving income for an interim period during the planning and
entitlement phase of a future development.
Site Prominence/Exposure:
Commercial retail and office properties, along with certain
industrial uses, rely heavily on site prominence/exposure as a
means of attracting customers and clients. The advertising
exposure along commercial thoroughfares can also be
beneficial to industrial and business park oriented properties. In
general terms, signalized corner parcels offer superior
prominence/exposure than interior sites. Additionally, heavily
traveled corridors are preferred by commercial uses over
secondary collector streets.
The subject property has a
relatively prominent signalized corner location along the
10
Washington Avenue commercial corridor.
Certain of the
properties have interior locations which are judged inferior
thereto.
Land Area:
The functional utility or desirability of a site often varies
depending on the types of contemplated uses. Different
prospective uses have ideal size and shape characteristics that
influence value as well as highest and best use. The purchase
price per square foot of land area can fluctuate greatly
depending on the size of property.
Smaller parcels lend themselves to a higher degree of market
participants capable of purchasing and developing the sites.
Due to the precept of “economies of scale”, it is the general
consensus that smaller parcels tend to sell on a higher per
square foot basis than larger parcels. Based on an analysis of
the land value indicators employed herein, there does not
appear to be a significant differential in the unit rate among
smaller and larger parcels.
Overall marketability of each sale property was also considered.
Marketability is the practical aspect of selling a property in view of all the
elements constituting value, and certain economic and financing conditions
prevailing as of the date of sale. All of the sale properties employed herein
are considered having generally similar marketability as the subject
property.
Sales Comparison Analysis:
Following are comments regarding the various sale properties employed
herein.
Data A
Located on the south side of Dinah Shore Drive, beginning 387
feet west of Monterey Avenue, Rancho Mirage. The site is
improved with a fast food restaurant; the transaction represents
11
Sales Comparison Analysis: (Continued)
the transfer of the leased fee interest in the underlying land
parcel. The purchase price is indicative of the fair market value
thereof. The parcel has an interior (versus corner) location,
rectangular land configuration, effectively level topography, and
contains 52,708 square feet of land area.
The property was originally offered for sale at $1,339,000 and
was on the market approximately 22 days. The purchase price
was $1,209,000, all cash. The deed recorded January 14,
2009, as Document No. 177778. Further details regarding the
transaction are summarized as follows:
Grantor:
Grantee:
Assessor’s Parcel No.:
Mirage Marketplace Partners One
Katherine Clancy Revocable Trust
685-070-005
Data B
Located on the east side of Washington Street, beginning 794
feet north of Fred Waring Drive, La Quinta. The site was vacant
at the time of sale. The buyer constructed a car wash facility
subsequent to the sale. The parcel has an interior (versus
corner) location along a heavily traveled commercial corridor,
rectangular land configuration, effectively level topography, and
contains 40,200 square feet of land area, net of street
dedication.
The purchase price was $1,300,000, all cash. The deed
recorded April 30, 2009 as Document No. 215884. Further
details regarding the transaction are summarized as follows:
Grantor:
Grantee:
Robert R. Darby
Levitan Development, LLC
609-070-055
Data C
Located on the south side of Main Street, beginning 180 feet
east of Desert Club Drive, La Quinta. The site was vacant at the
time of sale and was acquired by the City of La Quinta in order
12
to consolidate adjacent parcels for future development. There
are no immediate development plans. The parcel has an
interior (versus corner) location, effectively rectangular land
configuration, level topography, and contains 24,084 square
feet of land area.
The purchase price was $635,000, all cash. The deed recorded
April 7, 2011 as Document No. 153590. While the City of La
Quinta was the purchaser, this sale represents an open market
transaction without any undue influence.
Further details
regarding the transaction are summarized as follows:
Grantor:
Grantee:
James F. Kelly Trust
City of La Quinta
770-124-002, 003
Data D
Located at the northwest corner of State Highway 111 and Fred
Waring Drive, Palm Desert. The site is located across the
intersection from the subject parent property. The property was
vacant at the time of sale; the buyer constructed a Red Lobster
restaurant facility subsequent to the sale. The parcel has a
prominent signalized corner location along the Highway 111
corridor, irregular land configuration, effectively level
topography, and contains 54,886 square feet of land area.
The purchase price was $1,550,000, all cash. The deed
recorded May 4, 2011 as Document No. 196255. Further
details regarding the transaction are summarized as follows:
Grantor:
Grantee:
Three Dog Properties, LLC
N & D Restaurants, Inc.
640-020-046
Data E
Located at the northwest corner of Mirage Road and State
Highway 111, Rancho Mirage. The site was improved with an
older commercial building which was demolished and cleared
13
from site subsequent to the sale. The buyer is presently
constructing an automobile dealership facility. The parcel has a
nonsignalized corner location, effectively rectangular land
configuration, level topography, and contains 51,836 square
feet of land area.
The purchase price was $1,500,000, which included a
concurrent first trust deed note of $1,500,000 with the City of
Rancho Mirage at 5% interest amortized over 20 years. While
the seller is the City of Rancho Mirage, the sale represents an
open market transaction. There was no undue influence on the
purchase price due to the public agency involvement. The sale
price was established by an appraiser. The deed recorded May
25, 2012, as Document No. 242111. Further details regarding
the transaction are summarized as follows:
Grantor:
Grantee:
City of Rancho Mirage
Desert European Motorcars, Ltd.
684-200-024
Data F
Located at the northeast corner of State Highway 111 and
Depot Drive, La Quinta. The site was vacant at the time of sale
and was acquired for speculation and future value appreciation.
There are no immediate development plans. The parcel has a
relatively prominent signalized corner location at the
intersection of larger shopping center development, effectively
trapezoidal land configuration, level topography, 323 lineal feet
of street frontage, and contains 34,848 square feet of land area.
The property was originally offered for sale at $1,000,000 and
was on the market 99 days. The purchase price was $900,000,
all cash. The deed recorded October 18, 2013 as Document
No. 498595. Further details regarding the transaction are
14
Grantor:
Grantee:
99¢ Only Stores
Ava Property Investments, LLC
600-010-023
Reference the Market Analysis Comparison Grid set forth on the following
facing page. The sale properties have been compared to the subject
property with consideration assigned to property rights conveyed, date of
sale, financing terms, along with the various elements of comparability.
By way of review and comparison, the subject parcel has a relatively
prominent signalized corner location along the Washington Street
commercial corridor.
The site has an effectively rectangular land
configuration, level topography, and contains 1.644 acres, or 71,613 square
feet of land area. The parcel is zoned for, and has a highest and best use of,
commercial development. As stated, the property is initially appraised
herein assuming a vacant site readily available for development. An
allowance for demolition/clearing and abatement costs will be made to the
otherwise unencumbered indication of value in the latter portion of this
section.
In addition to the consummated sale transactions discussed herein,
research was expanded to include four reasonably comparable land parcels
presently offered for sale within the general subject market area, as follows:
Street
Data Zoning Land Size Corner Frontage Asking Price
1.
CC
55,321 sf
yes
783 feet
$1,361,250.
NEC Ford Dr. and Technology Dr., Palm Desert
$ Per SF
$24.61
Days on
Market
2,126
2.
PUDLC 75,402 sf
no
320 feet
$2,500,000.
$33.16
W/S State Hwy. 111, 560±’ N/O Magnesia Falls Rd., Rancho Mirage
3.
O
180,774 sf
no
310 feet
$4,250,000.
$23.51
S/S Country Club Dr., 69.25’ E/O John L. Sinn Rd., Rancho Mirage
834
4.
RET/OFC 81,893 sf
yes
370 feet
$2,250,000.
$27.47
NE’ly/C Magnesia Falls Rd. & Sahara Rd., Rancho Mirage
97
15
1,357
MARKET ANALYSIS COMPARISON GRID
COMMERCIAL LAND VALUE INDICATORS:
Purchase price:
Purchase price per sq. ft.:
Property rights conveyed:
Conditions of sale:
Conds. of sale consideration:
Sale terms:
Date of sale:
Market conditions:
Market conditions adj.:
Proximity to subject property:
General location:
Imm. environ. influ.:
Public utilities
Land area (sq. ft.):
Zoning:
Off-site improvements:
Accessibility:
Entitlements:
Land shape:
Topography:
Site conditions:
Overall developability:
Site prominence/exposure:
Overall comparability:
Subject
----------------------
Data A
$1,209,000
$22.94
Data B
$1,300,000
$32.34
Data C
$635,000
$26.37
Data D
$1,550,000
$28.24
Data E
$1,500,000
$28.94
Data F
$900,000
$25.83
leased fee
fee simple
fee simple
fee simple
fee simple
fee simple
standard sale
standard sale
standard sale
standard sale
standard sale
standard sale
inferior
similar
similar
similar
similar
similar
all cash
all cash
all cash
all cash
100% financed
all cash
1/14/2009
4/30/2009
4/7/2011
5/4/2011
5/25/2012
10/18/2013
----
inferior
inferior
inferior
inferior
inferior
inferior
average
upward adj.
upward adj.
upward adj.
upward adj.
upward adj.
upward adj.
----
6 1/2 mi. northwest
3/4 mi. south
4 1/4 mi. south
5 3/4 mi. southwest
6 3/4 mi. northeast
2 3/4 mi. southeast
avg.-good
similar
similar
similar
similar
similar
similar
avg.-good
inferior
similar
inferior
similar
similar
similar
all available
similar
similar
similar
similar
similar
similar
71,613
52,708
40,200
24,084
54,886
51,836
34,848
PC-2
CC
CC
VC
PC-4
CN
CR
in place
similar
similar
similar
similar
similar
similar
avg.-good
similar
inferior
inferior
similar
similar
similar
none
similar
similar
similar
similar
similar
similar
eff. rectangular
similar
similar
similar
similar
similar
similar
level
similar
similar
similar
similar
similar
similar
as if vacant
similar
similar
similar
similar
similar
similar
avg.-good
similar
similar
similar
similar
similar
similar
avg.-good
slt.ly inferior
slt.ly inferior
inferior
similar
similar
similar
----
inferior
similar
similar
similar
similar
similar
The properties surveyed range in size from 55,321 to 180,774 square feet of
land area. The overall asking prices range from $1,361,250 to $4,250,000,
reflecting $23.51 to $33.16 per square foot of land area. The marketing
times range between 97 and 2,126 days.
All of the sale transactions employed herein were considered helpful in the
land valuation analysis of the subject property. The purchase price per
square foot of land area has been utilized herein as the primary indication of
value inasmuch as it is most commonly utilized by market participants.
Following is a summary relating the overall comparability of the individual
sale properties to the subject property.
Data
A
F
Subject
C
D
E
B
Overall
Comparability
slightly inferior
similar
- - - similar
slightly superior
slightly superior
superior
$ Per SF
$22.94
$25.83
$26.00
$26.37
$28.24
$28.94
$32.34
After considering the various elements of comparability, as well as economic
and financial conditions prevailing during the consummation of the various
sale properties, when compared to current market conditions, it is the
appraiser’s opinion that the unencumbered fee simple market value of the
subject underlying land parcel, assuming a readily developable condition, is
estimated at $26.00 per square foot of land area, as follows:
71,613 SF @ $26.00 =
$1,861,938.
Adjusted: $1,860,000.
DEMOLITION/CLEARING COSTS:
As stated, the existing restaurant facility, comprising a main building of wood
frame/siding construction along with on-site improvements such as
perimeter fencing, concrete paving, parking lot improvements, and
16
DEMOLITION/CLEARING COSTS: (Continued)
ornamental landscaping, has reached the end of its economic and physical
life in a highest and best use context. Future development of the property
will require demolition/clearing of existing improvements as well as
abatement of lead based paint and asbestos material.
Demolition/clearing and abatement costs employed herein are based on
demolition projects wherein actual rates were available for review. A
national cost service providing demolition costs for a wide variety of
construction classes and materials has also been consulted as a secondary
check. The costs include labor, hauling/dumping fees, as well as indirect
costs such as management/supervision and permit fees.
It should be noted that the cost estimates were prepared without the benefit
of actual contractor bids. While said costs are deemed to be within a
reasonable range, a potential buyer of the property would be advised to
conduct a comprehensive study involving numerous contractor bids along
with consultation with City building officials. In the event a formal study is
prepared, and cost estimates vary considerably from those employed
herein, the appraiser reserves the right to revise the final estimate of value.
The demolition/clearing expenses applicable to the subject property are
estimated as follows:
Main building:
5,292 SF @ $13.50 =
On-site improvements:
38,800 SF @ $ 0.75 =
$ 71,442.
29,100.
$100,542.
Adjusted: $100,000.
FINAL ESTIMATE OF MARKET VALUE:
Based on the foregoing valuation study, the unencumbered fee simple
market value of the subject property, in as-is condition, as of the date of
value employed herein, is estimated as follows:
Market value assuming developable site:
Less demolition/clearing costs:
Market value in as-is condition:
17
$1,860,000.
- 100,000.
$1,760,000.
EXPOSURE TIME:
Exposure time is defined in the 2014-2015 Edition of the Uniform Standards
of Professional Appraisal Practice as the “estimated length of time that 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.” Exposure time is a retrospective opinion
based on an analysis of past events assuming a competitive and open
market. The reasonable exposure time is a function of price, time, and use,
not an isolated opinion of time alone.
The exposure time of a particular property is a direct function of supply and
demand within a particular market segment. Generally, a higher demand
results in a shorter marketing period. During the course of extensive market
research, interviews were conducted of parties involved in the transactions
regarding the sale properties employed in the Sales Comparison Approach.
Based on said interviews, as well as interviews with a number of real estate
brokers and other market participants, the exposure time estimated for the
subject property, assuming an aggressive and comprehensive marketing
program, is estimated at approximately six to nine months.
18
MARKET DATA
MARKET DATA SUMMARY
COMMERCIAL LAND VALUE INDICATORS:
Data
A.
Street
Date
Zoning Land Size Alley Corner Frontage
Sale Price
1-09
CC
52,708 sf
no
no
274 feet
$1,209,000.
S/S Dinah Shore Dr., 387’ W/O Monterey Ave., Rancho Mirage
$ Per SF
$22.94
B.
4-09
CC
40,200 sf*
no
no
150 feet
E/S Washington St., 794’ N/O Fred Waring Dr., La Quinta
$1,300,000.
$32.34
C.
4-11
VC
24,084 sf
no
no
202 feet
S/S Main St., 180’ E/O Desert Club Dr., La Quinta
$ 635,000.
$26.37
D.
5-11
PC-4
54,886 sf*
no
yes
597 feet
NWC State Hwy. 111 and Fred Waring Dr., Palm Desert
$1,550,000.
$28.24
E.
5-12
CN
51,836 sf
no
yes
440 feet
NWC Mirage Rd. and State Hwy. 111, Rancho Mirage
$1,500,000.
$28.94
F.
10-13
CR
34,848 sf
no
yes
NEC State Hwy. 111 and Depot Dr., La Quinta
$ 900,000.
$25.83
323 feet
* Net land area, exclusive of future required street dedication.
Bookmarks
1
MARKET DATA A
South side of Dinah Shore Drive, beginning 387 feet west of Monterey
Avenue, Rancho Mirage. This sale represents the transfer of the leased fee
interest in the underlying land parcel.
GRANTOR:
Mirage Marketplace
Partners One
APN:
GRANTEE:
Katherine Clancy Rev. Trust LAND SIZE:
52,708 sq.ft.
SALE DATE:
January 14, 2009
ZONING:
CC
DOC. NO.:
17778
CORNER:
No
SALE PRICE:
$1,209,000.
DOC. STAMPS:
$1,329.90
H & B USE:
Commercial
PRESENT USE:
Comm. use
TERMS:
All cash
IMPROVEMENTS: Fast food
restaurant.
ENTITLEMENTS: None
685-070-005
ST. FRONTAGE:
274 feet
VALUE INDICATION: $22.94 per SF land.
DATE INSPECTED:
October 30, 2012
2
BY:
Scott A. Lidgard, MAI
M A R K E T D A T A A (Continued)
VERIFICATION:
Document of public record, CoStar Comps, and Patrick Kent,
broker representing grantor.
3
MARKET DATA B
East side of Washington Street, beginning 794 feet north of Fred Waring
Drive, La Quinta. Improvements indicated in photograph constructed
subsequent to the sale.
GRANTOR:
Robert R. Darby
APN:
609-070-055
GRANTEE:
Levitan Development, LLC LAND SIZE:
40,200 sq.ft.
SALE DATE:
April 30, 2009
ZONING:
CC
DOC. NO.:
215884
CORNER:
No
SALE PRICE:
$1,300,000.
DOC. STAMPS:
$1,430.00
H & B USE:
Commercial
PRESENT USE:
Car wash facility
TERMS:
All cash
IMPROVEMENTS: None at time
of sale
ENTITLEMENTS:
None
ST. FRONTAGE:
150 feet
DATE INSPECTED:
October 30, 2012
4
BY:
M A R K E T D A T A B (Continued)
VERIFICATION:
Document of public record CoStar Comps, and Bob Reardon,
broker representing grantor.
5
MARKET DATA C
South side of Main Street, beginning 180 feet east of Desert Club Drive, La
Quinta.
GRANTOR:
James F. Kelly Trust
APN:
770-124-002, 003
GRANTEE:
City of La Quinta
LAND SIZE:
24,084 sq.ft.
SALE DATE:
April 7, 2011
ZONING:
VC
DOC. NO.:
153590
CORNER:
No
SALE PRICE:
$635,000.
DOC. STAMPS:
$698.50
H & B USE:
Commercial
PRESENT USE:
Vacant land
TERMS:
All cash
of sale.
ENTITLEMENTS: None
ST. FRONTAGE:
202 feet
DATE INSPECTED:
October 30, 2012
6
BY:
M A R K E T D A T A C (Continued)
VERIFICATION:
Document of public record, Multiple Listing Service, and Debbie
Powell, City of La Quinta.
7
MARKET DATA D
Northwest corner of State Highway 111 and Fred Waring Drive, Palm Desert.
Building in photograph constructed subsequent to the sale.
GRANTOR:
Three Dog Properties, LLC APN:
640-020-046
GRANTEE:
N & D Restaurants, Inc.
LAND SIZE:
54,886 sq.ft.
SALE DATE:
May 4, 2011
ZONING:
PC-4
DOC. NO.:
196255
CORNER:
Yes
SALE PRICE:
$1,550,000.
DOC. STAMPS:
$1705.00
H & B USE:
Commercial
PRESENT USE:
Restaurant use
TERMS:
All cash
of sale.
ENTITLEMENTS: None
ST. FRONTAGE:
607 feet
DATE INSPECTED:
October 30, 2012
8
BY:
M A R K E T D A T A D (Continued)
VERIFICATION:
Document of public record, CoStar Comps, and Jim Auther,
broker representing grantee.
9
MARKET DATA E
Northwest corner of Mirage Road and State Highway 111, Rancho Mirage.
GRANTOR:
GRANTEE:
Desert European Motorcars LAND SIZE:
51,836 sq.ft.
SALE DATE:
May 25, 2012
ZONING:
CN
DOC. NO.:
242111
CORNER:
Yes
SALE PRICE:
$1,500,000.
DOC. STAMPS:
$1,650.00
H & B USE:
Commercial
PRESENT USE:
Auto dealership
under const.
TERMS:
Conventional
of sale.
ENTITLEMENTS: None
APN:
684-200-024
ST. FRONTAGE:
440 feet
DATE INSPECTED:
October 30, 2012
10
BY:
M A R K E T D A T A E (Continued)
VERIFICATION:
Document of public record, CoStar Comps, and Kirk Watts,
representative of grantor.
11
MARKET DATA F
Northeast corner of State Highway 111 and Depot Drive, La Quinta.
GRANTOR:
99¢ Only Stores
APN:
600-010-023
GRANTEE:
Ava Property Inv., LLC
LAND SIZE:
34,848 sq.ft.
SALE DATE:
October 18, 2013
ZONING:
CR
DOC. NO.:
498595
CORNER:
Yes
SALE PRICE:
$900,000.
DOC. STAMPS:
$990.00
H & B USE:
Commercial
PRESENT USE:
Vacant land
TERMS:
All cash
of sale.
ENTITLEMENTS: None
ST. FRONTAGE:
323 feet
DATE INSPECTED:
April 25, 2014
BY:
12
M A R K E T D A T A F (Continued)
VERIFICATION:
Document of public record, Multiple Listing Service, and Barbara
Armendariz, broker representing grantor.
13
ADDENDA
See Photo No. 1 on first page of Subject Property Section.
PHOTO NO. 2: View looking westerly at the subject property
from Washington Street.
PHOTO NO. 3: View looking southerly at the subject property
from Avenue of the States.
Bookmarks
PHOTO NO 4:
View looking westerly across the easterly
elevation of the main building.
PHOTO NO. 5: View looking southerly across the westerly
elevation of the main building.
PHOTO NO. 6: View looking westerly across the former
Country Village Apartments office and attached
porte cochere structure which are proposed to
be removed from the site.
PHOTO NO. 7: View looking west across the outdoor patio
area adjacent to the south elevation of main
building.
PHOTO NO. 8: View looking southeasterly at the subject
property from Avenue of the States.
STREET SCENE 1: View looking south along Washington
Street from the intersection of Avenue of
the States.
STREET SCENE 2: View looking west along Avenue of the
States from the intersection of Washington
Street.
COACHELLA VALLEY
REGION DESCRIPTION
REGIONAL DATA
The value of real property is influenced by the attributes and utility of land
and physical improvements, as well as inter-relationships of markets and
demographic forces, transportation, government, environmental influences
and other factors. Said factors influence the location and density of
population distribution and activities in certain areas and regions over others.
COACHELLA VALLEY REGION:
Coachella Valley is located in the easterly portion of the County of Riverside.
Coachella Valley consists of 13 individual communities including Palm
Springs, Desert Hot Springs, Cathedral City, Rancho Mirage, Palm Desert,
Indian Wells, La Quinta, Indio, Coachella, Bermuda Dunes, Thousand Palms,
Mecca, and Thermal. The current population of Coachella Valley is 336,398
persons, which represents a growth of 45.7% since 1990, and 175.5% since
1980. The Coachella Valley population represents approximately 20% of the
entire Riverside County population.
The current labor work force is estimated at 111,900± persons, which
represents approximately 33% of the entire Coachella Valley population.
17% of the remaining population consists of persons 65 years and older;
25% represents persons 18 years and younger. The demographic makeup of Coachella Valley is summarized as follows:
Population by Race
Caucasian:
African-American:
Hispanic:
Other:
47.8%
2.0%
46.4%
3.9%
Population by Age
Under 18 years:
18-44 years:
56-65 years:
65 & over:
29.4%
31.8%
20.3%
17.4%
The population of Coachella Valley is forecasted to increase at a rate of 6%
per annum, which rate would more than double the current population in
approximately 20 years. The median household income is $31,735; the
median family income is $37,119. The per capita income is estimated at
$17,347.
Tourism and agriculture are major forces in the Coachella Valley’s economy.
There are over 270 hotels containing approximately 15,800 hotel rooms and
over 85 golf courses. The total annual economic impact of tourism is
estimated to exceed 1 billion dollars. The agricultural industry accounts for
approximately 58,000 acres. The four major crops include grapes, citrus,
dates, and vegetables. The total annual economic impact of agriculture is
estimated at slightly below 1 billion dollars.
REGIONAL DATA (Continued)
COACHELLA VALLEY REGION: (Continued)
While tourism and agriculture are dominant economic forces, the greater
Coachella Valley has a relatively diverse economic base. The distribution of
work force is segregated among the following industries:
Agriculture & mining:
Construction:
Manufacturing:
Education:
Wholesale trade:
12,637
11,967
2,550
7,747
1,496
Retail trade:
Finance/real estate:
Services:
Government:
Distribution:
23,765
5,589
33,129
6,474
5,434
There are a number of major manufacturing and non-manufacturing firms
located within Coachella Valley. The individual corporations, along with their
respective products/services, are summarized as follows:
Manufacturing Employment:
Employers
VIAYSS
Design MTC
Spates Fabricators
Menage Furniture
Type of Business
Medical equipment
Marble products
Roof trusses
Furniture
Employers
Armtec Products
Guy Evans, Inc.
Palm Springs Golf Co.
U. S. Filter
Type of Business
Defense
Cabinetries
Golf equipment
Water treatment
Non-manufacturing Employment:
Type of
Employers
Business
Peter Rabbit Fox
Agriculture
Desert Hospital
Health
Eisenhower Hospital
Health
Renaissance Esmeralda Resort
Tourism
Vons Companies
Retail
Employers
Marriott Desert Springs
Palm Springs School District
La Quinta Hotel
Westin Mission Hills Resort
Sunrise Company
Type of
Business
Tourism
Education
Tourism
Tourism
Developer
Coachella Valley sits atop a vast underground lake, thus providing an
abundant water supply. The average maximum temperature is 107.8° with
an average minimum temperature of approximately 53.7°. The average
annual rainfall is 5.20 inches.
Coachella Valley has three school districts; there are a total of 33 elementary
schools, 12 middle schools, and nine high schools. Higher education is
provided by (1) College of the Desert, a community college accredited for
AA degrees, (2) California State University, San Bernardino-satellite campus,
REGIONAL DATA (Continued)
COACHELLA VALLEY REGION: (Continued)
(3) University of California, Riverside, a one-hour drive from Coachella Valley,
(4) the University of California Riverside A. Gary Anderson School of
Management, and (5) University of California Riverside Campus in Palm
Desert.
There is a wide variety of community services and facilities. Medical care is
provided by the Desert Hospital, Eisenhower Medical Center, John F.
Kennedy Memorial Hospital, Canyon Springs Hospital, and Heart Institute of
the Desert.
Cultural facilities and special events include the Palm Springs Desert
Museum, Annenberg Theater, McCallum Theater (Bob Hope Cultural
Center), The Living Desert, National Data Festival, La Quinta Arts Festival, U.
S. Polo Open, Palm Springs Film Festival, and a number of annual golf
tournaments.
Recreational facilities include over 105 golf courses, the Palm Springs Aerial
Tramway, polo grounds, natural hiking trails, a water park, casinos, and the
newly completed Indian Wells Championship Tennis Facility.
Transportation in Coachella Valley is provided for by a variety of means. The
Palm Springs Regional Airport has direct service for many major western
and midwestern cities. The commercial air carriers include American
Airlines, Delta, Northwest, Continental, and Alaska Skywest. The Bermuda
Dunes Airport supports commuter flights serving Los Angeles, Ontario, San
Diego and Phoenix. Thermal Airport provides a base for privately owned
noncommercial aircraft.
Passenger rail service is available via Amtrak. Freight rail service is provided
by Union Pacific Railroad which offers a direct link-up with the Mexican
National Railroad. Bus service is provided by Greyhound Bus Lines. There
are a number of trucking lines which serve the Coachella Valley. Primary
highways include Interstate 10, State Highway 111, and State Highway 86.
QUALIFICATIONS OF
APPRAISER
BACKGROUND AND QUALIFICATIONS
President of
LIDGARD AND ASSOCIATES
INCORPORATED
Full service appraisal firm encompassing all types of real
property including commercial, industrial, complex residential,
and special use properties. Scott A. Lidgard has over 25 years
experience in the appraisal of real property for various clients
including public agencies, corporations, law firms in connection
with litigation support, accountants, and private clients.
OFFICE ORGANIZATIONAL STRUCTURE:
Principal Appraiser:
Market Research Analyst:
Market Research Analyst:
Market Research Assistant:
Office Administrator:
Office Assistant:
Scott A. Lidgard
Jason T. Clayton
Jason Boyer
Mayra Villegas-Garcia
Sarah A. Petty
Kelly M. Lidgard
PROFESSIONAL ORGANIZATION AFFILIATIONS:
MAI Designated Member of the Appraisal Institute
(Member No. 11715).
CCIM (Certified Commercial Investment Member) designated
member of the CCIM Institute (Member No. 11262).
STATE CERTIFICATION:
Certified General Real Estate Appraiser by the Office of Real
Estate Appraisers, State of California.
Certificate No.
AG004014.
BROKER'S LICENSE:
Licensed California Real Estate Broker (License No. 00825141).
EXPERT WITNESS:
Qualified as an expert on Real Property Valuation in the Los
Angeles, Orange, San Bernardino, and Riverside County
Superior Courts, as well as Federal Bankruptcy Court.
BACKGROUND AND QUALIFICATIONS (Continued)
ACADEMIC BACKGROUND
California State University, Fullerton
B.A., Business Administration, emphasis in real estate finance.
Successfully completed various educational courses and
seminars sponsored by the Appraisal Institute, as well as
other real estate and business organizations.
BUSINESS AFFILIATIONS:
Appraisal Experience:
President, Lidgard and Associates, Inc., Orange, California,
established October 1, 1997.
Vice President, R. P. Laurain & Associates, Inc., Long Beach,
California, between 1984 and 1997.
Real Estate Sales Associate, Merrill Lynch Realty, Placentia,
California, between 1982 and 1984.
BOARD OF DIRECTORSHIPS:
Sergeant at Arms, Long Beach Rotary
President, Belmont Estates HOA, Orange
Vice President, Canyon Rim Villas HOA, Anaheim Hills
Treasurer, Orchard Owner’s Association, Orange
Board of Directors, Villa Heights HOA, Villa Park
APPRAISAL SERVICES RENDERED:
Real estate appraisal services performed on projects for the
following public agencies and private corporations, since 1984:
Cities:
City of Anaheim
City of Azusa
City of Baldwin Park
City of Bell
City of Bellflower
City of Bell Gardens
City of Brea
City of Carson
City of Cathedral City
City of Costa Mesa
City of Diamond Bar
City of Downey
City of Fullerton
City of Garden Grove
City of Glendora
City of Hawaiian Gardens
City of Highland
City of Huntington Park
City of Indio
City of Irvine
City of La Mirada
City of La Habra
City of La Quinta
City of Laguna Hills
City of Long Beach
City of Lynwood
City of Mission Viejo
City of Montclair
City of Monterey Park
City of Murrieta
City of Ontario
City of Palm Desert
City of Palm Springs
City of Pasadena
City of Pico Rivera
City of Placentia
City of Pomona
City of Redondo Beach
APPRAISAL SERVICES RENDERED (Continued)
Cities: (Continued)
City of Rialto
City of Riverside
City of San Clemente
City of San Bernardino
City of San Juan Capistrano
City of Santa Ana
City of Santa Clarita
City of Signal Hill
City of Stanton
City of Tustin
City of Upland
City of Whittier
City of West Covina
City of Yorba Linda
City of Victorville
Redevelopment Agencies:
Baldwin Park Redevelopment Agency
Bell Redevelopment Agency
Bell Gardens Redevelopment Agency
Buena Park Redevelopment Agency
Carson Redevelopment Agency
Cathedral City Redevelopment Agency
El Monte Redevelopment Agency
Garden Grove Redevelopment Agency
Glendale Redevelopment Agency
Huntington Beach Redevelopment Agency
Huntington Park Redevelopment Agency
Inglewood Redevelopment Agency
La Puente Redevelopment Agency
Long Beach Redevelopment Agency
Los Angeles Community Redevelopment Agency
Norwalk Redevelopment Agency
Ontario Redevelopment Agency
Palm Desert Redevelopment Agency
Rialto Redevelopment Agency
Riverside Redevelopment Agency
San Bernardino Redevelopment Agency
Signal Hill Redevelopment Agency
West Covina Community Development Commission
Whittier Redevelopment Agency
Yorba Linda Redevelopment Agency
Other Government Agencies:
Calleguas Municipal Water District
County of Los Angeles, Internal Services Division
County of Riverside
Inland Empire Utilities Agency
Long Beach Unified School District
Los Angeles County Sanitation District
Los Angeles Unified School District
Orange County Transportation Authority
Palm Springs Unified School District
Other Government Agencies: (Continued)
Placentia Unified School District
Port of Long Beach
Port of Los Angeles
Resolution Trust Corporation
Riverside County Transportation Commission
State of California
U. S. Department of Navy
U. S. Marshal Service
Victor Valley Wastewater Reclamation Authority
Financial Institutions:
American First Federal Credit Union
Farmers and Merchants Bank
First Federal Bank
First Federal Credit Union
Fiscal Federal Credit Union
Harbor Bank
Long Beach Bank
Mineral King National Bank
Northern Trust Bank
Queen City Bank
Sumitomo Bank, Ltd.
Union Bank
Asset Management Companies:
Amresco, Inc.
American Residential Mortgage Corporation
BEI Management, Inc.
Emerson International
Equitable Real Estate Investment Management
EQ Services
Icon Associates
Independence One
Pacific Southwest Partners
Private Companies/Corporations:
Allstate Insurance Company
Best, Best & Krieger, LLP
Bonnie, Hopkins & Bastardi, LLP
Bridgestone/Firestone, Inc.
Black & Vetch Corporation
Buchalter Nemer, A Professional Corporation
Burke, Williams & Sorenson, LLP
California Eminent Domain Law Group
Private Companies/Corporations: (Continued)
Carl Karcher Enterprises
Chapman University
Century Law Group
Daley & Heft, LLP
Eastman Kodak Company
Ferro Corporation
Flagstar Companies
Guild Financial
Hahn & Hahn, LLP
Harbor Chevrolet
Inland Partners Corporation
Kaufman and Broad
Latham & Watkins, Attorneys at Law
Long Beach Memorial Medical Center
Madden, Jones, Cole & Johnson, Attorneys at Law
Oliver, Vose, Sandifer, Murphy & Lee
Pan Pacific Development
Rutan & Tucker, LLP
Scotsdale Insurance
Snell & Wilmer, Attorneys at Law
T.R.W.
The Trust for Public Land
Westport Packers
Windes and McClaughry, Accountancy Corporation
Wise, Wiezorek, Timmons & Wise, Attorneys at Law

Appraisal Report - City of Palm Desert

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