Appraisal Report

Transcription

Appraisal Report

AN APPRAISAL
OF
FOUR VACANT PARCELS
OWNED BY THE
CITY OF RENO AND
THE REDEVELOPMENT AGENCY OF THE CITY OF RENO
GENERALLY LOCATED
THE SOUTH SIDE OF THE
UNION PACIFIC RAILROAD RIGHT-OF-WAY,
ON BOTH SIDES OF CHISM STREET,
RENO, WASHOE COUNTY, NEVADA
APPRAISED FOR
THE CITY OF RENO &
THE REDEVELOPMENT AGENCY OF THE CITY OF RENO
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JOHNSON PERKINS & ASSOCIATES, INC.
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C O N S U L T A N T S
An Appraisal
Of
FOUR VACANT PARCELS
Owned By The
City Of Reno And
The Redevelopment Agency Of The City Of Reno
Generally Located
The South Side Of The
Union Pacific Railroad Right-Of-Way,
On Both Sides Of Chism Street,
Reno, Washoe County, Nevada
Appraised For
The City of Reno &
The Redevelopment Agency Of The City Of Reno
For The Purpose Of
Estimating The Following Market Values
Value Addressed
Ownership Interest Date of Value
Properties
“As-Is” Market Value Fee Simple Estate August 7, 2014 4 Vacant Parcels
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Main Office: 295 Holcomb Avenue, Suite 1 ■ Reno, Nevada 89502 ■ Telephone (775) 322-1155
Lake Tahoe Office: P.O. Box 11430 ■ Zephyr Cove, Nevada 89448 ■ Telephone (775) 588-4787
FAX: Main Office (775) 322-1156 ■ Lake Tahoe Office (775) 588-8295
E-mail: [email protected] ■ [email protected]
Stephen R. Johnson, MAI, SREA
Karen K. Sanders
Reese Perkins, MAI, SRA
Gregory D. Ruzzine
Cynthia Johnson, SRA
Chad Gerken
Cindy Lund Fogel, MAI
Scott Q. Griffin, MAI
Daniel B. Oaks, MAI
August 8, 2014
Benjamin Q. Johnson, MAI
Lori Miles, SR/WA
Property Program Technician
City of Reno Public Works
1 East First Street
Reno, Nevada 89501
Re:
Appraised Property: Various Parcels Along Chism Street, Reno, Nevada
Dear Ms. Miles:
This is in response to your request for an appraisal of 4 parcels located along the south
side of the Union Pacific Right-Of-Way, and on both sides of Chism Street in Reno, Wshoe
County, Nevada. The subject properties are remainder parcels created after the completion of
the ReTRAC project through the central part of Reno. The subject parcels are currently
owned by the City of Reno and the Redevelopment Agency of the City of Reno.
This is an appraisal report which is intended to comply with the reporting
requirements set forth under Standards Rule 2-2(a) of the Uniform Standards of Professional
Appraisal Practice. This report sets forth pertinent data, statistics, and other information
considered necessary to establish the market value of the subject property as of the effective
date of valuation.
The intended users of this appraisal report are the City of Reno and the City of Reno
Redevelopment Agency and their designated representatives. The intended use of the
appraisal report is for internal management purposes and for possible leasing and/or
disposition of the subject parcels. Any other use of this appraisal report requires the written
authorization of this appraisal firm.
The following chart summarizes each of the subject properties. The chart includes the
Washoe County Assessor’s Parcel Number (A.P.N.), owner and gross land area of each of the
parcels.
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Subject Parcel Summary
A.P.N.
010-610-01
010-610-02
010-610-05
010-031-08
TOTALS
Owner
City of Reno & Redevelopment Agency of the City of Reno
4 Parcels
Gross Land Acres
0.308 Acres
1.741 Acres
3.018 Acres
0.748 Acres
5.815 Acres
Gross Land SF
13,434 SF
75,840 SF
131,464 SF
32,562 SF
253,300 SF
Based upon the locations of the four parcels and an analysis of the Highest and Best
Use of the parcels, the subject parcels have been grouped into two properties, Subject
Property 1 and Subject Property 2. The following summarizes the grouping of the four
parcels into two Subject Properties:
Subject Property Summary
Property
A.P.N.
Gross Land Acres Gross Land SF
010-610-01
0.308 Acres
13,434 SF
Subject Property 1
010-610-02
1.741 Acres
75,840 SF
010-031-08
0.748 Acres
32,562 SF
Total-Subject Property 1 3 Parcels
2.797 Acres
121,836 SF
Subject Property 2
010-610-05
3.018 Acres
131,464 SF
This appraisal is being prepared for the purpose of estimating the Market Value of
each of the identified subject properties as of a current date of value. The subject parcels are
currently in the process of being rezoned by the City of Reno. Based upon the instructions of
the client, this appraisal report addresses the Market Value of the subject properties, based
upon the Hypothetical Assumption that the proposed zoning changes have taken place as of a
current date of value. The subject parcels will be rezoned to CC (Community Commercial),
other than the eastern portion of Assessor’s Parcel Number 010-610-05, which will retain its
current I (Industrial) zoning designation. The chart below summarizes each of the parcel’s
current zoning designation, and the zoning designation which each property will be changed
to and valued based upon:
Subject Zoning Summary
Property
Subject Property 1
A.P.N.
010-610-01
010-610-02
010-031-08
Total-Subject Property 1
3 Parcels
Subject Property 2
010-610-05
Current Zoning
Not Designated
AC (Arterial Commercial)
& I (Industrial)
& I (Industrial)
& I (Industrial)
Industrial
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Zoning Upon Proposed Change
CC (Community Commercial)
& I (Industrial)
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In addition to the appraisal being subject to a Hypothetical Condition, it is also subject
to Extraordinary Assumptions. An extraordinary assumption is defined as “An assumption,
directly related to a specific assignment, as of the effective date of the assignment results,
which, if found to be false, could alter the appraiser’s opinions or conclusions.” 1 This
appraisal has been prepared subject to the following extraordinary assumption:
•
•
As Title Reports or Surveys were not provided to me on the subject properties prior to
issuance of this appraisal report, the subject properties will be valued as though there
are no adverse easements, encroachments or restrictions, other than those noted in the
report, which would negatively impact the value or development potential of the sites.
This appraisal report assumes that none of the subject properties are negatively
impacted by the existence of toxic materials or hazardous waste.
I attest to have the knowledge and experience necessary to complete this appraisal
assignment and have appraised this property type many times before. No one other than the
undersigned prepared the analysis, conclusions and opinions concerning real estate that are set
forth in the accompanying appraisal report. After careful consideration of all data available
and upon thorough personal inspection of the subject properties and the comparable properties
analyzed, I have estimated the market value of the subject properties, subject to the
extraordinary assumptions set forth in this appraisal report, as of August 7, 2014, as set out
below.
FINAL MARKET VALUE CONCLUSIONS
Date of
Final Value
Property
A.P.N.s
Interest Appraised
Value
Conclusion
Subject
Fee Simple
010-610-01, 02
August 7,
Property
(Hypothetical Assumption Zoning Change
$365,000*
& 010-031-08
2014
1
Has Taken Place)*
Subject
Fee Simple
August 7,
Property
010-610-05
$495,000*
2014
2
Has Taken Place)*
*Based upon the instructions of the client, this appraisal report addresses the Market Value of the subject
properties, based upon the Hypothetical Assumption that the proposed zoning changes have taken place as of a
current date of value. The subject parcels are currently zoned a combination of AC (Arterial Commercial) and I
(Industrial), but will be rezoned to CC (Community Commercial), other than the eastern portion of Assessor’s
Parcel Number 010-610-05, which will retain its current I (Industrial) zoning designation.
Respectfully Submitted,
Nevada Certified General Appraiser
License Number A.0003504-CG
1
Source: USPAP 2014-2015 Edition, Definitions; The Appraisal Foundation, Page U-3.
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TABLE OF CONTENTS
SUMMARY OF SALIENT FACTS AND IMPORTANT CONCLUSIONS ........................... 1
PURPOSE OF APPRAISAL...................................................................................................... 3
PROPERTY RIGHTS APPRAISED ......................................................................................... 3
FEE SIMPLE ESTATE DEFINED ............................................................................................ 3
CLIENTS AND INTENDED USERS ....................................................................................... 3
INTENDED USE OF APPRAISAL .......................................................................................... 3
MARKET VALUE DEFINED................................................................................................... 4
DATES OF APPRAISAL .......................................................................................................... 4
SCOPE OF APPRAISAL ........................................................................................................... 5
STATEMENTS OF LIMITING CONDITIONS ....................................................................... 6
RENO-SPARKS AREA MAP ................................................................................................... 7
RENO-SPARKS AREA ANALYSIS AND DESCRIPTION ................................................... 8
NEIGHBORHOOD MAP ........................................................................................................ 32
NEIGHBORHOOD DESCRIPTION ....................................................................................... 33
SUBJECT PROPERTY AERIAL PHOTOGRAPH ................................................................ 39
SUBJECT PROPERTY 1 PHOTOGRAPHS ........................................................................... 40
SUBJECT PROPERTY 2 PHOTOGRAPHS ........................................................................... 43
SUBJECT PLOT MAPS .......................................................................................................... 45
RECORD OF SURVEY MAP 5389 ........................................................................................ 47
SUBJECT FLOOD ZONE MAP.............................................................................................. 50
SUBJECT PROPERTY IDENTIFICATION AND SITE DESCRIPTION ............................. 51
ASSESSMENT & TAXABLE VALUE DATA ...................................................................... 58
HIGHEST AND BEST USE ANALYSIS ............................................................................... 59
HIGHEST AND BEST USE ANALYSIS-SUBJECT PROPERTY 1..................................... 60
HIGHEST AND BEST USE ANALYSIS-SUBJECT PROPERTY 2..................................... 62
INTRODUCTION TO VALUATION ANALYSIS ................................................................ 64
COMPARABLE LAND SALES CHART ............................................................................... 65
COMPARABLE LAND SALE MAP AND DISCUSSION .................................................... 66
CORRELATION AND FINAL MARKET VALUE CONCLUSION .................................... 72
FINAL MARKET VALUE CONCLUSIONS ......................................................................... 77
EXPOSURE AND MARKETING TIME ................................................................................ 78
APPRAISERS’ CERTIFICATION .......................................................................................... 79
STANDARD ASSUMPTIONS AND LIMITING CONDITIONS ......................................... 81
QUALIFICATIONS OF APPRAISER .................................................................................... 88
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SUMMARY OF SALIENT FACTS AND IMPORTANT CONCLUSIONS
Assessor’s Parcel Numbers, Ownership & Land Areas
Property
A.P.N.
010-610-01
0.308 Acres
13,434 SF
Subject Property 1
010-610-02
1.741 Acres
75,840 SF
010-031-08
0.748 Acres
32,562 SF
Total-Subject Property 1 3 Parcels
2.797 Acres
121,836 SF
Subject Property 2
010-610-05
3.018 Acres
131,464 SF
Locations
Property
A.P.N.
010-610-01
Subject Property 1 010-610-02
010-031-08
Locations
Between Union Pacific Railroad Right-of-Way &
West Second Street, on Both Sides of Chism Street,
South Side of Union Pacific Railroad Right-of-Way,
North of North Terminus of Arletta Street
Property
A.P.N.
010-610-01
Subject Property 1
010-610-02
010-031-08
3 Parcels
Current Zoning
Not Designated
& I (Industrial)
& I (Industrial)
& I (Industrial)
& I (Industrial)
NOTE: Based upon the instructions of the client, this appraisal report addresses the Market Value of the subject
Subject Property 2
010-610-05
Industrial
Flood Zone Designations
Property
Subject Property 1
Subject Property 2
Zone "X" & Shaded Zone “X”
FEMA Map #
32031C3039G
32031C30309G
Effective Date of Flood
Zone Designation
March 16, 2009
March 16, 2009
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Improvements
Property
A.P.N.
Improvements On Sites
Vacant & Unimproved
Subject Property 2 Undesignated Vacant & Unimproved
Dates Of Appraisal
Date Description
Date
Dates of Inspection
August 7, 2014
Effective Dates of Value
August 7, 2014
Completion Date of Appraisal August 8, 2014
Date of
Final Value
Property
A.P.N.s
Interest Appraised
Value
Conclusion
Subject
Fee Simple
010-610-01, 02
August 7,
Property
$365,000*
& 010-031-08
2014
1
Has Taken Place)*
Subject
Fee Simple
August 7,
Property
010-610-05
$495,000*
2014
2
Has Taken Place)*
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PURPOSE OF APPRAISAL
This appraisal is being prepared for the purpose of estimating the Market
Value of each of the identified subject properties as of a current date of value. The subject
parcels are currently in the process of being rezoned by the City of Reno. Based upon the
instructions of the client, this appraisal report addresses the Market Value of the subject
properties, based upon the Hypothetical Assumption that the proposed zoning changes have
taken place as of a current date of value.
PROPERTY RIGHTS APPRAISED
The subject properties are being appraised as held in fee simple ownership, affected by
typical encumbrances such as mortgages, easements, short term leases and zoning ordinances.
FEE SIMPLE ESTATE DEFINED
The subject property is appraised as held in fee simple ownership, affected by typical
encumbrances such as mortgages, easements and zoning ordinances. Fee simple estate is
defined as “Absolute ownership unencumbered by any other interest or estate, subject only to
the limitations imposed by the governmental powers of taxation, eminent domain, police
power, and escheat.” 2
CLIENTS AND INTENDED USERS
The client and intended user of this appraisal report is the City of Reno, the City of
Reno Redevelopment Agency and their designated representatives.
INTENDED USE OF APPRAISAL
The intended use of the appraisal report is for internal management purposes and for
possible leasing and/or disposition of the subject parcels. Any other use of this appraisal
report requires the written authorization of this appraisal firm.
2
Source: The Dictionary of Real Estate Appraisal, Fifth Edition, Appraisal Institute, 2010, page 78.
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MARKET VALUE DEFINED
Market Value means 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 interest;
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. 3
DATES OF APPRAISAL
Date Description
Date
Dates of Inspection
August 7, 2014
Effective Dates of Value
August 7, 2014
Completion Date of Appraisal August 8, 2014
3
Rules and Regulations, Federal Register, Vol. 55, No. 165, Page 34696, 12CFR Part 34.42(f)
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SCOPE OF APPRAISAL
The completion of this appraisal assignment included:
•
Inspection of the subject properties and analysis of subject property data;
•
Identification and analysis of the subject neighborhoods;
•
Interview with representatives of the subject property ownerships;
•
Analysis and description of the subject properties;
•
Interviews with representatives of the City of Reno regarding the proposed
zoning changes for each of the subject parcels;
•
Completion of a Highest and Best Use Analysis for each property;
•
Research of the Official Records of Washoe County and other reliable sources
for comparable land sales and listings for each of the properties;
•
Verification of the land sales and listing data;
•
Completion of a Sales Comparison Approach to Value to arrive at an
indication of the Market Value of the subject properties as of August 7, 2014,
subject to the Hypothetical Assumption that the properties have all been
rezoned to the proposed new zoning designations as of the effective date of
value;
•
Analysis of an appropriate exposure and marketing time for each of the subject
properties;
•
Preparation of an appraisal report.
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STATEMENTS OF LIMITING CONDITIONS
Extraordinary Assumptions
An extraordinary assumption is defined as “An assumption, directly related to a
specific assignment, as of the effective date of the assignment results, which, if found to be
false, could alter the appraiser’s opinions or conclusions.” 4 This appraisal has been prepared
subject to the following extraordinary assumption:
•
•
As Title Reports or Surveys were not provided to me on the subject properties prior to
issuance of this appraisal report, the subject properties will be valued as though there are no
adverse easements, encroachments or restrictions, other than those noted in the report, which
would negatively impact the value or development potential of the sites.
This appraisal report assumes that none of the subject properties are negatively impacted by
the existence of toxic materials or hazardous waste.
Hypothetical Conditions
A hypothetical condition is defined as “a condition, directly related to a specific
assignment, which is contrary to what is known by the appraiser to exist on the effective date
of the assignment results, but is used for the purpose of analysis.” 5 This appraisal has been
prepared subject to the following hypothetical conditions.
•
Based upon the instructions of the client, this appraisal report addresses the Market Value of
the subject properties, based upon the Hypothetical Assumption that the proposed zoning
changes have taken place as of a current date of value. The subject parcels will be rezoned to
CC (Community Commercial), other than the eastern portion of Assessor’s Parcel Number
010-610-05, which will retain its current I (Industrial) zoning designation. The chart below
summarizes each of the parcel’s current zoning designation, and the zoning designation which
each property will be changed to and valued based upon:
Property
Subject Property 1
A.P.N.
010-610-01
010-610-02
010-031-08
4
5
3 Parcels
Subject Property 2
010-610-05
Current Zoning
Not Designated
& I (Industrial)
& I (Industrial)
& I (Industrial)
Industrial
& I (Industrial)
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RENO-SPARKS AREA MAP
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RENO-SPARKS AREA ANALYSIS AND DESCRIPTION
The Reno-Sparks metropolitan area is situated on the eastern slopes of the Sierra
Nevada Mountain Range in a large valley known as the Truckee Meadows. Two major
freeways serve the region. Interstate 80 runs in an east-west direction connecting the Reno
area with Sacramento, 138 miles to the west, and San Francisco, 230 miles to the west.
Interstate 80 also connects with Salt Lake City, located 526 miles east of the Reno-Sparks
area. The U.S. 395 Highway runs in a north-south direction connecting with Los Angeles 488
miles to the south. U.S. Highway 395 also extends north connecting the Reno-Sparks area
with Oregon and Washington. McCarran Boulevard is a ring road that encircles the RenoSparks area and facilitates access between the various quadrants of the region. Overall, the
Reno-Sparks area has very good roadway and highway access.
The Reno-Sparks metropolitan area’s location is a positive amenity due to its
proximity to major California markets, as well as the recreational and scenic amenities
afforded by its proximity to the Sierra-Nevada Mountains and Lake Tahoe.
Lake Tahoe is a 45-minute drive from downtown Reno and is the second largest alpine
lake in the world, with 72 miles of Lake Frontage. Lake Tahoe also offers the greatest
concentration of downhill skiing facilities in North America.
The Truckee Meadows is located at an elevation of approximately 4,400 feet above
sea level and offers a semi-arid climate. In January, average temperatures range from a low
of 18.3° Fahrenheit to a high of 45.5° Fahrenheit. In July, the average low temperature is
47.4° and the average high temperature is 91.9°. The area enjoys an average of 306 days of
sunshine per year. The average annual precipitation is 7.5 inches, while the average snowfall
is 32.3 inches per year.
The primary source of water for the region is the Truckee River, which originates at
Lake Tahoe, approximately 30 miles southwest of Reno, and terminates at Pyramid Lake
approximately 30 miles north of Sparks. The river flows through the heart of downtown Reno
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and along the southern edge of Sparks. The Truckee River is a major recreational and scenic
amenity for the region.
Population, Growth and Employment
Since 1970, the Truckee Meadows have been one of the fastest growing areas in the
nation, with the population increasing by over 100% by 1990. According to the Nevada State
Demographer’s Office at the University of Nevada, the population of Washoe County was
estimated to be 427,204 in 2012. The following summarizes historical population estimates
for the region.
Historical Population Estimates
Year
Reno
Sparks
Unincorporated
Washoe County
2005
206,735
85,618
104,491
396,844
2006
214,371
87,846
106,868
409,085
2007
220,613
89,449
107,999
418,061
2008
223,012
91,684
109,137
423,833
2009
218,143
91,237
107,252
416,632
2010
217,282
92,331
107,766
417,379
2011
222,801
92,302
106,490
421,593
2012
229,859
90,214
107,131
427,204
2013
232,243
91,551
108,530
432,324
Source: Nevada State Demographer
The downturn in the economy has particularly impacted the labor force in Nevada.
Unemployment rates for the United States, Nevada and its three largest metropolitan
statistical areas are summarized on the following chart.
Unemployment Data
(Source: Nevada Department of Employment, Training & Rehabilitation)
United States
Nevada
Las Vegas MSA
Reno-Sparks MSA
Carson City MSA
Annual
2008
5.80%
6.70%
5.20%
6.00%
6.60%
Annual
2009
9.30%
12.50%
12.70%
12.30%
12.20%
Annual
2010
9.60%
14.90%
15.30%
14.80%
15.00%
Annual
2011
8.90%
13.50%
13.90%
13.10%
13.10%
Annual
2012
8.10%
11.10%
11.20%
10.90%
11.10%
Annual
2013
7.38%
9.43%
9.52%
9.35%
9.88%
June
2014
6.30%
7.77%
7.95%
7.24%
7.86%
The unemployment rate for Washoe County and Nevada has historically averaged
between 1% and 2% below the national average. However, with the recent economic
downturn, Nevada was one of the hardest hit in the nation and currently has the highest
unemployment rate in the country. Improvement is expected in Nevada’s employment
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outlook, but remains below the pre-recession peak. The following chart summarizes the
unemployment rate gap between the State of Nevada and the United States.
Unemployment Gap-United States Versus Nevada
Nevada offers one of the most liberal tax structures in the country. Nevada levies no
personal or corporate income tax. Nevada’s Freeport law exempts from taxation merchandise
warehoused, assembled or processed in the State of Nevada. Real estate taxes in the State of
Nevada are limited by State constitution to a maximum of $5 per $100 of assessed valuation.
The assessed valuation is 35% of the Assessor’s estimate of the taxable value of the property.
Gaming and Tourism Market
It is estimated that the Reno-Sparks area currently offers approximately 25,000 hotel
and motel rooms. The vast majority of the hotel-casino facilities are located within the
downtown Reno core area. As a result, this area is one of the primary employment centers in
the Reno-Sparks area. Additional hotel-casino developments are located in southern Reno
along South Virginia Street including the Atlantis Casino resort and the Peppermill
Hotel/Casino. The Grand Sierra Resort is located on the Reno-Sparks border and John
Ascuaga’s Nugget is located east of Reno in central Sparks. It is noted that the Nugget was
recently purchased by a new owner and is undergoing major renovations.
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The following chart summarizes the most recent data available for gaming revenue for
the Reno-Sparks/Washoe County area, as well as other areas within the state.
Gaming Win Data
(Source: Nevada Gaming Control Board)
Within the past decade, legalized gaming has continued to spread across the country
and gaming revenues for northern Nevada have been impacted. The opening of several Indian
casinos in the State of California in recent years and the proposed openings of several other
Indian Casinos in California have had a dramatic effect on the gaming economy in the RenoSparks area. Over the past decade, several casinos in the downtown Reno market, including
the Sundowner Hotel Casino, the Comstock Hotel Casino, Fitzgerald, and the Golden Phoenix
Hotel Casino, have closed.
The following summarizes data provided by the Reno-Sparks Convention and Visitors
Authority, regarding demographic and economic statistics for the Reno-Sparks area.
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Residential Market
The residential market in the Reno-Sparks area grew tremendously in the 1990’s and
this growth continued until 2006, when the residential housing crisis began. The downturn in
the residential market had a tremendous impact on residential development and sales within
the Reno-Sparks market, resulting in very limited new construction for the past five years.
Although the residential real estate market has struggled there are signs of recovery. The
existing residential home sales and prices are on the rebound. Market activity has increased
significantly in Northern Nevada in recent months and the residential market is on the
rebound after a long period of decline. Sale offers are reported at or above list prices and
sellers are receiving multiple offers.
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The June 2014 Market Report presented by the Reno/Sparks Association of Realtors
reports that, “June sales are the third highest June in history exceeded only by June 2010 and
June 2005,”said Mark Ashworth, 2014 president of the Reno/Sparks Association of
REALTORS. “We continue to see recovery in the median price of single family homes, but
we are not seeing the double-digit year-over-year increases we saw in 2013. This indicates a
positive sign of stabilization in median price.”
The commentary and charts below summarize data for the Reno-Sparks residential
market, through May 2014; this data was provided by the Reno-Sparks Association of
Realtors, and Multiple Listing Service.
Market Report Commentary-Reno Sparks Association of Realtors
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Reno-Sparks Median Residential Sales Prices-Prior 13-Months
Reno-Sparks Median Residential Sales Prices -Prior 8 Years
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Number of Units Sold In Reno/Sparks-Prior 13 Months
Number of Units Sold In Reno/Sparks-Prior 8 Years
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Month’s Supply of Inventory-Prior 5 Years
Housing Affordability Index
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Improvement in the residential market is stimulating new construction. Most of the
bulk finished lots within the market have been purchased by developers; most of these lots
were bank owned during the depression.
Multifamily Market
The following summarizes data from the Apartment Survey, which is a quarterly
survey conducted by Johnson-Perkins & Associates. The 2nd Quarter 2014 Survey indicates
an overall vacancy rate of 2.41%, indicating a decrease of 142 basis points over the previous
quarter. The 2nd Quarter 2014 Survey indicates an overall rent of $852, indicating a decrease
of $24 per unit or 2.74% from the previous quarter.
Average Size, Average Rent & Average Vacancy Rate By Unit Type
Average SF-By Unit Type
Average Rent-By Unit Type
Average Rent/SF-By Unit Type
Vacancy Rate-By Unit Type
STUDIOS
406 SF
$533
$1.31
2.69%
1 BED/
1 BATH
722 SF
$753
$1.04
2.51%
2 BED/
1 BATH
852 SF
$764
$0.90
2.33%
2 BED/
2 BATH
1,037 SF
$969
$0.93
2.40%
3 BED/
2 BATH
1,262 SF
$1,170
$0.93
1.97%
TOWNHOME
1,298 SF
$1,105
$0.85
1.92%
TOTALS
883 SF
$852
$0.96
2.41%
Overall Average Rent & Vacancy-Prior & Current Quarter
1st Quarter 2014 2nd Quarter 2014
Change
3.83%
2.41%
Average Vacancy
(142 Basis Points)
$876
$852
Average Rent
($24) or -2.74%
Comparison Of Rental Rates & Vacancy Rates To Prior Quarter
UNIT TYPE
Studio
1 Bedroom/1 Bath
2 Bedroom/1 Bath
2 Bedroom/2 Bath
3 Bedroom/2 Bath
Townhouse
TOTALS
AVERAGE RENT
1st Qtr. 2014 2nd Qtr. 2014
$548
$533
$731
$753
$795
$764
$948
$969
$1,123
$1,170
$1,093
$1,105
$876
$852
Result
↓
↑
↓
↑
↑
↑
↓
AVERAGE VACANCY
1st Qtr. 2014 2nd Qtr. 2014 Result
3.89%
2.69%
↓
4.03%
2.51%
↓
3.28%
2.33%
↓
3.94%
2.40%
↓
3.04%
1.97%
↓
5.47%
1.92%
↓
3.83%
2.41%
↓
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Average Rents & Vacancies By Submarket
Area Sub-Market
1
Northwest Reno
2
Northeast Reno
3
W. Sparks/N. Valley
4
East Sparks
5
West Reno
6
Southwest Reno
7
Brinkby/Grove
8
Airport
9
Lakeridge
10
Southeast Reno
Overall Reno-Sparks
AVERAGE RENT
1st Qtr. 2014 2nd Qtr. 2014
$938
$899
$832
$831
$755
$740
$1,010
$953
$765
$778
$749
$769
$663
$624
$750
$730
$992
$940
$944
$875
$876
$852
Result
↓
↓
↓
↓
↑
↑
↓
↓
↓
↓
↓
AVERAGE VACANCY
1st Qtr. 2014 2nd Qtr. 2014 Result
3.79%
1.60%
↓
3.38%
2.35%
↓
4.27%
3.34%
↓
4.08%
2.81%
↓
2.22%
2.67%
↑
4.45%
3.41%
↓
3.84%
3.93%
↑
3.04%
1.79%
↓
2.83%
1.45%
↓
3.89%
1.98%
↓
3.83%
2.41%
↓
Reno-Sparks Overall Quarterly Apartment Rents and Vacancies
Overall Reno-Sparks Market Averages-All Unit Types
(Based Upon Units Surveyed)
2nd Quarter 2014 Overall
Category
Reno-Sparks Averages
Average Square Feet Per Unit Surveyed
883± Square Feet
Average Rent For Units Surveyed
$852 Per Month
Average Rent Per Square Foot For Units Surveyed
$0.96 Per Square Foot
Average Overall Vacancy Rate For Units Surveyed
2.41%
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Industrial Market
In an effort to diversify the economic base of the area, community leaders have
focused upon the expansion of the industrial segment of the economy. The industrial industry
has experienced substantial growth over the past decade as a result of the region’s central
location, good transportation, infrastructure and liberal tax laws. At the present time, over
500 major U.S. and foreign corporations have headquarters or located large facilities in the
area, including Amazon.com, International Gaming Technology (IGT), Barnes and Noble,
Patagonia, Sherwin Williams, Wal-Mart Distribution Center, J.C. Penney’s Catalog
Distribution Center, and R.R. Donnelley, one of the nation’s largest publishers. As most
major cities in the western portion of the United States are located within relatively close
proximity and driving time to Northern Nevada, the Reno-Sparks area is a major distribution
warehousing center. This development is further being enhanced by the favorable tax
environment in the state of Nevada. Leases for industrial users in the Reno-Sparks market are
typically based upon triple net lease terms. The CBRE Reno Industrial MarketView 2nd
Quarter 2014 report indicates the following:
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The following charts summarize the overall and submarket industrial markets, and
include data related to rental rates and vacancies. The data is from the CBRE Reno Industrial
MarketView 2nd Quarter 2014.
Industrial Rents & Vacancies By Submarket
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Historical Industrial Data
Retail Market
The Reno-Sparks area now offers three regional shopping centers and more than 100
neighborhood or local shopping centers. The three major regional centers are Meadowood
Mall, the Summit Sierra Mall, and the Legends at Sparks Marina.
According to the Nevada Department of Taxation 2010/2011 to 2012/2013 fiscal
taxable sales show an increase from year-to-date numbers for each of the past three years.
The following chart summarizes taxable sales totals for Washoe County from 1997/1998
(fiscal years).
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Washoe County Taxable Sales History
Fiscal Year
Taxable Sales
1997/1998
$4,377,547,590
1998/1999
$4,679,515,860
1999/2000
$4,966,612,920
2000/2001
$5,194,146,044
2001/2002
$5,292,178,588
2002/2003
$5,481,582,915
2003/2004
$6,003,368,280
2004/2005
$6,660,263,045
2005/2006
$7,268,593,250
2006/2007
$7,202,640,557
2007/2008
$6,823,700,706
2008/2009
$5,707,791,051
2009/2010
$5,176,981,699
2010/2011
$5,282,936,232
2011/2012
$5,522,605,351
2012/2013
$6,008,594,622
2013/2014 Thru March
$4,742,599,277
Source: Nevada Department of Taxation
Percentage Change
3.22%
6.90%
6.14%
4.58%
1.89%
3.47%
9.52%
10.6%
9.13%
-0.91%
-5.3%
-16.35%
-9.30%
2.05%
4.54%
8.80%
9.72% (Based On Same Period Prior Year)
Leases for retail space in the Reno-Sparks market are typically based upon triple net
lease terms or modified gross lease terms. Under triple net lease terms, tenants typically pay a
base rental rate, and are also responsible for paying most operating expenses associated with
the property, including utilities, taxes, insurance, management, typical repairs and
maintenance, and other expense items. In multi-tenant projects, these additional fees are most
often billed back to tenants; these are often referred to as Common Area Maintenance (CAM)
fees. The CBRE Reno Retail MarketView 2nd Quarter 2014 Report indicates the following:
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The following charts summarize the overall and submarket retail markets, and include
data related to rental rates and vacancies. The data is from the CBRE Reno Retail
Retail Rents & Vacancies By Submarket
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Historical Retail Data
Office Market
The Reno-Sparks office market consists of over 12,000,000± square feet of office
space. Office uses in the market range from older second and third generation properties, to
new, high-end Class A office space.
Leases for professional office uses in the Reno-Sparks market are typically based upon
full service gross lease terms or modified gross lease terms. Under full service gross lease
terms, owners are responsible for all operating costs associated with the building. Typically,
these leases incorporate base year expense stops, with tenants responsible for any increases in
operating expenses over the base year. Under modified gross lease terms, the tenant is
typically responsible for utilities and janitorial service. Due to increases in utility expenses,
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many property owners now market properties on modified gross lease terms, with some even
marketing properties on triple net lease terms, in which the tenant is responsible for all
operating expenses associated with the building. The CBRE Reno Office MarketView 2nd
Quarter 2014 Report indicates the following:
The following charts summarize the overall and submarket office markets, and include
data related to rental rates and vacancies. The data is from the CBRE Reno Office
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Office Rents & Vacancies By Submarket
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Historical Office Data
Construction Activity
Construction activity in the area was limited during the housing crisis, but has shown
signs of recovery. Within the Reno-Sparks market, building permits issued began to drop in
2006, and dropped every year thru 2010; beginning in 2011, building permit activity has
increased thru 2013. As the chart and graph below indicates, at the peak of the market in
2005, 18,692 total building permits were issued in Washoe County, including the City of
Reno and the City of Sparks. In 2013, the latest full calendar year, only 9,121 building
permits, or 51.20% less than 2005, were issued.
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Building Permits Issued
(Reno, Sparks & Unincorporated Washoe County)
Transportation
The Reno-Tahoe International Airport serves the Reno-Sparks area. The airport offers
daily departures to over 30 North American destinations with non-stop or one-stop service.
This level of service is normally found in cities with populations four to five times the size of
the Reno-Sparks area. The following chart summarizes passenger statistics for the RenoTahoe International Airport.
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Reno-Tahoe International Airport Statistics
The Reno-Sparks area also has adequate rail service and bus service. The area has
excellent access to trucking facilities, with over 60 firms serving the Reno area. Rail service
through the area is provided by Union Pacific Railroad. The rail lines pass through downtown
Reno with most of the rail traffic involving freight transportation. Additionally, Amtrak
provides passenger rail service to the area.
Hospitals, Education and Public Services
The Reno-Sparks area has four private general hospitals and one Veterans’
Administration hospital. While the area is considered to have good hospital facilities, the
hospitals in Nevada are some of the more expensive in the country. The two largest hospitals,
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St. Mary’s and Renown, have both opened satellite hospitals in south Reno, and have both
undergone major expansions at their main facilities.
The Washoe County School District provides public schools. The University of
Nevada-Reno is situated on a 200-acre campus just north of downtown Reno. There are
approximately 17,000 students currently enrolled at the University. The area is also served by
the Truckee Meadows Community College, which has an enrollment of approximately 10,000
students per year.
Each of the municipalities in the Reno-Sparks area offers police and fire protection.
Both the police and fire protection is highly rated. Municipal recreational facilities in the
Reno-Sparks area include a number of golf courses, several indoor/outdoor swimming pools,
numerous public parks and several public libraries. RTC Ride provides public transportation
to the region.
Summary
In summary, the Reno-Sparks area has experienced rapid population growth over the
past several decades due to the excellent quality of life. Historically, the gaming industry has
been the principal economic base for the area. With the legalization of gaming across the
United States, the area’s principal industry is experiencing a major challenge.
In response to this challenge, the National Bowling Stadium and Downtown Events
Center have been built, the Reno-Sparks Convention Center has been expanded and
renovated, special events have been expanded, the City of Reno is actively supporting
downtown revitalization, and a new AAA professional baseball stadium was completed in
April of 2009. The area has experienced success in broadening the economic base with the
expansion of the hi-tech and back office industries.
The recent economic recession has had a negative impact on most sectors of the local
economy. However, signs point to a recovery in most sectors of the market, with for-sale and
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for-rent residential market recoveries, and recoveries in the commercial and industrial sectors
of the marketplace. Unemployment has begun to drop, and construction activity has begun to
increase. Although the recovery is expected to be slow, positive signs are apparent in the
local and regional economy.
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NEIGHBORHOOD MAP
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NEIGHBORHOOD DESCRIPTION
The subject properties are located near the Keystone Avenue corridor to the east of
downtown Reno. This neighborhood is bounded on the north by Interstate 80, on the east by
Wells Avenue, on the south by the Truckee River and on the west by McCarran Boulevard.
The neighborhood described above is largely commercial in nature, but includes a variety of
uses, including older single family dwellings, professional offices, multi-family residences
and light industrial uses.
The major roadway connecting Reno-Sparks and the west Reno area is Interstate-80.
Interstate-80 generally forms the northerly boundary of the subject neighborhood. The
subject neighborhood has good accessibility to the Interstate 80 Freeway from an interchange
at Keystone Avenue, and further to the east at Virginia Street. As Interstate 80 intersects with
Interstate 580 in central Reno, the subject neighborhood has good access to the Reno-Sparks
area. The Interstate 80 Freeway also provides access to California to the west, and continues
across the United States to the east.
Major roadways within the subject neighborhood include Keystone Avenue, Fourth
Street and Fifth Street. These roads provide alternative access to the Reno-Sparks area. The
subject neighborhood is felt to have good accessibility to all portions of the Reno-Sparks area.
Fourth Street is the main east-west road through the central portion of the subject
neighborhood. Fourth Street was formerly the U.S. 40 Highway and connects west Reno with
downtown Reno, and continues east to Sparks. Within the subject neighborhood, Fourth
Street is improved with a variety of older residential, commercial and industrial uses,
including older motels which have been converted to weekly rental units. Properties abutting
Fourth Street in the neighborhood are also improved with various retail uses which involve
converted industrial buildings.
The Truckee River runs along the south portion of the neighborhood, and runs from
west to east. Generally speaking, the major commercial and casino developments in
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downtown Reno to the east of the neighborhood are located on the north side of the river,
while the financial district and major office buildings are located south of the Truckee River.
Near the subject properties, the Truckee River is generally improved with residential and
retail uses.
Due to its proximity to the river, many portions of the subject neighborhood lie within
the river's floodplain. Of the various floodplain classifications promulgated by the Federal
Emergency Management Agency (FEMA), those which have the greatest impact on property
values are the "AE" and "floodway" designations. Properties located in the "AE" zone can,
and frequently are, developed with a variety of uses (commercial, industrial, residential, etc.)
in both the cities of Reno and Sparks. The main constraints to development of properties in
the "AE" zone are the cost of additional engineering and fill material required to raise the
bottom of the lowest floor beam or basement floor one foot above the base flood elevation.
The Union Pacific Railroad passes through the central portion of the subject
neighborhood. Along with U.S. Interstate 80, the Union Pacific Railroad generally parallels
the Truckee River, crossing the river at various points throughout the neighborhood. The
Union Pacific Railroad is primarily utilized for freight service.
Also in downtown Reno, Granite Construction completed the ReTRAC train trench
project in 2005, which involved the depression of the railroad tracks through downtown Reno.
This has resulted in a fully grade-separated two-track main line railroad corridor through the
central portion of downtown Reno. The depressed railway begins at a point approximately
250± feet west of West Second Street and extends approximately 12,500± lineal feet, or
approximately 2.25± miles, to a point approximately 50± feet west of Sutro Street. The
depressed railway is 54 feet in width, and approximately 30± deep at its deepest point.
As part of the ReTRAC Project, 11 at-grade crossings of the railroad tracks through
downtown Reno have been eliminated and replaced with completely grade-separated
intersections. At each intersection, a bridge has been constructed at ground level, with the
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depressed railway passing under the intersections. This project was the largest public works
project ever constructed in the City of Reno. The portion of the trench located between West
Street and Virginia Street in the downtown core was covered for the construction of a public
plaza.
Commercial uses in the immediate neighborhood include neighborhood shopping
centers and other retail uses, most of which are located along Keystone Avenue. The corner of
Keystone Avenue and West Fourth Street is a largely commercial intersection. Keystone
Square, a multi-tenant neighborhood shopping center, lies at the northwest corner of Keystone
Avenue and West Fourth Street. A Save Mart grocery store is the anchor tenant in this center.
The intersection of Keystone Avenue and West Fourth Street is entirely fronted with
commercial uses, which include Keystone Square, a Chevron gas station and mini-market, a
Jack In The Box fast food restaurant, and various frontages of the previously mentioned
Keystone Square Shopping Center, including a Ben’s Discount Liquor, Wells Fargo bank
branch and Dotty’s casino. There are a variety of fast food restaurants that are located near
this intersection, including McDonald’s, Burger King, Jack-In-The Box, Taco Bell, and
Kentucky Fried Chicken.
A majority of the area’s tourist commercial development, which consists of hotelcasino uses and smaller tourist commercial retail uses, are situated in the downtown Reno
core just east of the subject neighborhood. The Reno casino core area contains the largest
concentration of hotel casino utilizations in northern Nevada. The major hotel casinos include
the Silver Legacy Hotel Casino, the Circus-Circus Hotel Casino, the Eldorado Hotel Casino,
the Fitzgerald’s Hotel Casino, the Sands Hotel Casino, Harrah’s Hotel Casino, and the CalNeva Casino. As a result, this area does involve a major employment center for the RenoSparks area.
Several casinos within the downtown Reno area, including the Sundowner Hotel
Casino, the Comstock Hotel Casino, the Golden Phoenix Hotel Casino, and the Fitzgerald’s
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Hotel Casino were closed within the past ten years. Several of these projects have been
converted and developed into high-rise condominium projects.
The Truckee River corridor in downtown Reno has seen a number of developments
over the past decade. A 12-screen movie theater is located along the Truckee River on the
west side of Sierra Street. A multi-tenant retail building was constructed adjacent to the
theater. Additionally, the Truckee River Whitewater Park is located along the river near
Arlington Avenue. This whitewater park has been a successful draw for downtown Reno, and
many believe it was the initial catalyst for development along the river downtown. Other
shopping, including the West Street Market, is in close proximity to the Truckee River.
In April 2009, construction was completed on a AAA professional baseball
development. This project is generally located on the northeast corner of East Second Street
and Evans Avenue, although the developer has plans to also develop a large retail project on
other properties in the vicinity of the baseball stadium. The stadium utilized the historic
Freight House in its design and has a seating capacity for 9,000± fans. The new Ballpark
District will eventually cover an area immediately east of Lake Street, from the ReTRAC
project on the north to the Truckee River to the south. The district will include opportunities
for new residential, restaurant and retail components. To date, the owners of the ballpark
have completed several new restaurants and lounges directly adjacent to the stadium.
The Regional Transportation Commission completed construction on a new bus
transfer station which is located on the southeast corner of East Fourth Street and Lake Street,
known as the 4TH Street Station. This new center replaces the former CitiCenter transfer
station located on Center Street and 4th Street, just west of the National Bowling Stadium.
The project is being funded by a federal transportation package secured by Harry Reid and
John Ensign, as well as from the sale/reimbursement from the old CitiCenter property. The
purpose of the new center is to improve bus operations, prepare for future growth, and support
and enhance the transit experience with joint development retail opportunities for passengers
and passersby.
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The majority of the better quality professional offices are located around the center of
the downtown Reno financial district, which is located in the central portion of the subject
neighborhood at the intersection of South Virginia Street and Liberty Street. Several major
financial institutions active in Northern Nevada have administrative offices and/or main
branches located within a short distance of this downtown financial core. The four most
prominent buildings in the financial core area include the Bank of America Plaza building, the
U.S. Bank building, the Wells Fargo tower, and the Museum Towers building. These
structures range in height between 6 and 12 stories and are good quality Class "A"
professional office buildings.
In addition to the major financial institutions, the Washoe County Courthouse is
located on the northwest corner of South Virginia Street and Court Street in the central
portion of the subject neighborhood. The Mills B. Lane Justice Center involves relatively
new construction. Washoe County also utilizes a newer courthouse complex located at the
southwest corner of South Sierra Street and Island Avenue. Additionally, the Federal
Courthouse is located on the block bounded by South Virginia Street, Liberty Street, Center
Street and Stewart Street.
The old Reno City Hall, located at the intersection of Liberty Street and Sinclair
Street, has been converted into the Nevada Discovery Museum, a hands-on children’s
museum. The main branch of the Washoe County library system is located on the northwest
corner of Liberty Street and Center Street, and the William F. Harrah National Automobile
Museum is located on the northeast corner of Mill Street and Sinclair Street. Additionally, the
Nevada Museum of Art is located on Liberty Street in the financial district of downtown
Reno.
The former Downtown Reno United States Post Office is located on the south side of
the Truckee River, between South Virginia Street and Center Street, north of Mill Street. The
Post Office building was designed by renowned architect Frederick DeLongchamps.
Constructed in 1932, the post office building is considered one of the best examples of Art
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Deco design, specifically Zig-Zag Moderne, in Nevada. This building was recently purchased
by a local developer, who is currently developing retail and office space in the building.
Industrial utilizations are found east and west of the downtown casinos, adjacent to the
Union Pacific Railroad tracks and include small manufacturing and repair facilities, auto
wreckers and outside storage yards. Transit warehouses and truck terminals are prominent
uses in the northeast portions of the subject neighborhood. These facilities are typically
operated by interstate trucking firms for redistribution and reloading of interstate freight.
Residential growth started in the eastern portion of the subject neighborhood and
progressed westward. The area near Keystone Avenue involves older homes constructed
from the 1930s to the 1950s. Residential development along Mayberry Drive involves newer
homes and has traditionally been a desirable neighborhood. Residential development along
West Fourth Street has been more sporadic and involves a few older mobile home parks and
converted older motels.
Idlewild Park and Wingfield Park are located along the Truckee River in the central
portions of the subject neighborhood. There is a walking/bike path along the Truckee River
from the western portion of the subject neighborhood to downtown Reno. This path also
continues past downtown Reno and terminates past Vista Boulevard in Sparks. The
neighborhood has access to all typical public services. Fire protection is provided by the City
of Reno Fire Department. The City of Reno Police Department provides police protection.
Public transportation is provided by RTC Ride, which does maintain bus stops along major
roadways in the neighborhood. Overall, the neighborhood is considered to have good access
to typical public services.
To summarize, the subject neighborhood is a mature, commercial and residential
neighborhood located within the downtown Reno area. The subject neighborhood includes a
variety of uses, including hotel-casinos, public facilities, St. Mary’s Hospital, high-rise and
low-rise residential uses, and a variety of commercial uses.
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SUBJECT PROPERTY AERIAL PHOTOGRAPH
Subject Property 1 Outlined In Yellow
Subject Property 2 Outlined In Red
Source: Google Maps Online
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SUBJECT PROPERTY 1 PHOTOGRAPHS
VIEW OF SUBJECT PROPERTY 1 FACING SOUTHWEST
FROM THE NORTHEAST CORNER OF A.P.N. 010-610-02
VIEW OF CHISM STREET FACING EASTERLY
WITH A.P.N. 010-610-02 OF SUBJECT PROPERTY 1 ON THE LEFT
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VIEW OF SUBJECT PROPERTY 1 FACING NORTHWEST
FROM THE WESTERN PORTION OF A.P.N. 010-610-02
VIEW OF SUBJECT PROPERTY 1 FACING WEST
FROM THE EAST PROPERTY LINE OF A.P.N. 010-610-01
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VIEW OF CHISM STREET AND A.P.N. 010-031-08 FACING EAST
FROM NEAR CHISM STREET’S INTERSECTION WITH WEST 2ND STREET
VIEW OF SUBJECT PROPERTY 1 FACING EAST AT
A.P.N. 010-031-08
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VIEW OF ARLETTA STREET FACING NORTH
TOWARD SUBJECT PROPERTY 2
VIEW OF THE EAST PORTION OF SUBJECT PROPERTY 2
FACING EAST FROM NEAR THE CENTER OF THE PARCEL
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VIEW OF SUBJECT PROPERTY 2 FACING NORTHWEST
FROM NEAR THE SOUTHEAST PROPERTY CORNER
VIEW OF SUBJECT PROPERTY 2 FACING SOUTHEAST
FROM NEAR THE NORTHWEST PROPERTY CORNER
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SUBJECT PLOT MAPS
BOOK 010/PAGE 03
(PORTION OF SUBJECT PROPERTY 1)
Property
A.P.N.
Portion of Subject Property 1 010-031-08
0.748 Acres
32,562 SF
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SUBJECT PLOT MAPS
BOOK 010/PAGE 61
(PORTION OF SUBJECT PROPERTY 1 & ALL OF SUBJECT PROPERTY 2)
Property
A.P.N.
010-610-01
0.308 Acres
13,434 SF
Portion of Subject Property 1
010-610-02
1.741 Acres
75,840 SF
Subject Property 2
010-610-05
3.018 Acres
131,464 SF
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RECORD OF SURVEY MAP 5389
(PORTION OF SUBJECT 1)
Property
Subject Property 1
(Portion)
A.P.N.
Record of
Survey Map
Parcel
Number
Document
#
Recording
Date
Recording
Entity
010-031-08
5389
2A
4100095
4/4/2012
Washoe County
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(PORTION OF SUBJECT 1)
Property
Subject Property 1
(Portion)
A.P.N.
010-610-01
010-610-02
Record of
Survey Map
5390
5390
Parcel
Number
3A
3B
Document
#
4100097
4100097
Recording
Date
4/4/2012
4/4/2012
Recording
Entity
Washoe County
Washoe County
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(SUBJECT PROPERTY 2)
Property
Subject Property
2
A.P.N.
Record of
Survey Map
Parcel
Number
Document
#
Recording
Date
Recording
Entity
010-610-05
5391
4B
4100099
4/4/2012
Washoe County
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SUBJECT FLOOD ZONE MAP
Subject Properties 1 & 2 Outlined In Red (Approximated)
Property
Subject Property 1
Subject Property 2
FEMA Map #
32031C3039G
32031C30309G
Zone Designation
March 16, 2009
March 16, 2009
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SUBJECT PROPERTY IDENTIFICATION AND SITE DESCRIPTION
Assessor’s Parcel Numbers, Ownerships, & Land Areas
Property
Subject Property 1
Subject Property 2
Ownership
City of Reno &
Redevelopment Agency of the City of Reno
City of Reno &
City of Reno &
City of Reno &
City of Reno &
A.P.N.
Gross Land Acres
Gross Land SF
010-610-01
0.308 Acres
13,434 SF
010-610-02
1.741 Acres
75,840 SF
010-031-08
0.748 Acres
32,562 SF
3 Parcels
2.797 Acres
121,836 SF
010-610-05
3.018 Acres
131,464 SF
Legal Descriptions
Property
Subject Property 1
Subject Property 2
A.P.N.
010-610-01
010-610-02
010-031-08
010-610-05
Record of
Survey Map
5390
5390
5389
5391
Parcel
Number
3A
3B
2A
4B
Document #
4100097
4100097
4100095
4100099
Recording
Date
4/4/2012
4/4/2012
4/4/2012
4/4/2012
Recording
Entity
Washoe County
Washoe County
Washoe County
Washoe County
Locations
Property
A.P.N.
010-610-01
010-031-08
Locations
Between Union Pacific Railroad Right-of-Way &
West Second Street, on Both Sides of Chism Street,
South Side of Union Pacific Railroad Right-of-Way,
North of North Terminus of Arletta Street
Subject Zoning Summary (City of Reno)
Property
Subject Property 1
A.P.N.
010-610-01
010-610-02
010-031-08
3 Parcels
Current Zoning
Not Designated
& I (Industrial)
& I (Industrial)
& I (Industrial)
& I (Industrial)
NOTE: Based upon the instructions of the client, this appraisal report addresses the Market Value of the subject
Subject Property 2
010-610-05
Industrial
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City of Reno Zoning Descriptions-Proposed Zoning Designations
Subject Property 1-CC (Community Commercial)
According to the City of Reno Community Development Department, Subject
Property 1 will be rezoned to Community Commercial (CC). The purpose of the CC zoning
district is to provide for general commercial and service enterprises for the community at
large. This zoning district allows a variety of commercial uses. A complete summary of
allowed uses in the CC Zoning designation is set forth in the Addenda of this report.
Subject Property 2-CC & I (Community Commercial & Industrial)
According to the City of Reno Community Development Department, the eastern
portion of Subject Property 2 will remain zoned Industrial, while the western portion of
Subject Property 2 will be rezoned Community Commercial (see definition above). The
purpose of the Industrial zoning district is to provide for intensive activities and land uses that
have the most potential for impacting adjacent land uses and infrastructure (e.g., heavy
industrial). This zoning should be located in areas with access to air, roadway, and/or railway
transportation systems. This zoning district allows a variety of industrial and commercial
uses. A complete summary of allowed uses in the CC and I Zoning designations is set forth in
the Addenda of this report.
City of Reno Land Use (Master Plan) Designations
Property
A.P.N.
City of Reno Master Plan Designation
010-610-01
Urban Residential/Commercial
010-031-08
City of Reno Land Use (Master Plan) Descriptions
Subject Properties 1 & 2
Properties 1 & 2 each has a Land Use designation of Urban Residential/Commercial. This
designation allows for a full range of commercial activities with increasing degrees of
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intensity, which is determined by vehicular trip generation, size and scale of development,
and compatibility with residential development. These areas may also be appropriate for
police substations, other public offices, and residential development of more than 40 units and
a density greater than 21 dwelling units per acre located within intensely developed areas of
the city.
Subject Flood Zone Designations
Property
Subject Property 1
Subject Property 2
FEMA Map #
32031C3039G
32031C30309G
Zone Designation
March 16, 2009
March 16, 2009
Roadway Frontage & Access
Property
Roadway Frontage
Roadway Access
nd
Subject Property 1
West 2 Street & Chism Street
Chism Street
Subject Property 2 Chism Street & Arletta Street Terminus Chism Street & Arletta Street
Subject Property 1
Subject Property 1 is located on the north and south sides of Chism Street. In the
vicinity of Subject Property 1, Chism Street is a two-way, two-lane asphalt paved roadway
improved with concrete curbs and gutters. Sidewalks are located on the south side of the
street.
Subject Property 2
Subject Property 2 is located directly east of Subject Property 1. Subject Property 2
has limited roadway frontage. Chism Street passes along a small portion of Subject Property
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2’s southwest corner. As noted above, Chism Street is a two-way, two-lane asphalt paved
roadway improved with concrete curbs and gutters. Sidewalks are located on the south side
of the street. In addition, Subject Property 2 is located at the north terminus of Arletta Street.
In the vicinity of Subject Property 2, Arletta Street is a two-way, two-lane asphalt paved
roadway improved with concrete curbs and gutters. Concrete barriers currently limit physical
access from Arletta Street, but likely could be removed to provide direct access onto the
parcel.
Utilities & Public Services
Utility & Public Service
Electricity
Natural Gas
Telephone
Water
Sewer
Waste Disposal
Cable
Internet
Fire Protection
Police Protection
Public Transportation
Provider
NV Energy
NV Energy
Various Carriers
Truckee Meadows Water Authority (TMWA)
City of Reno
Waste Management
Various Carriers
Various Carriers
City of Reno Fire Department
City of Reno Police Department
RTC Ride
Availability On Subject Parcels
Reasonably Available
Service Available
Covered
Covered
Stops In Vicinity
The subject properties have reasonable access to all utility services, including
electricity, water service, natural gas service, cable and phone service, and sewer and waste
removal services.
Earthquake Zone
In 2005, the City of Reno adopted the International Building Code. The City of Reno
now relies on the 2012 International Building Code (IBC). The IBC does not directly address
earthquake hazards by geologic regions. However, it requires that all building plans be
reviewed by a structural engineer to assess earthquake issues. Prior to 2005, the City of Reno
utilized the Uniform Building Code. According to the 1997 edition of the Uniform Building
Code, the Reno-Sparks area is located in a Seismic Risk Zone 3. This zone encompasses
areas which have a number of local faults and where there is a relatively strong probability of
moderate to strong seismic activity. The Uniform Building Code does require special
construction techniques as a result of earthquake hazards. Additionally, a structural engineer
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typically reviews plans for residential and commercial buildings in order to assess earthquake
hazards. As a result, for the purposes of this analysis, it is being assumed that the subject
properties are not impacted by earthquake hazards to a greater degree than is typical for the
Reno area.
Easements and Encumbrances
Property
Subject Property 1
Subject Property 2
Easements/Encumbrances
Chism Street Improvements & Assuming Other Typical Easements
(Possible Storm Drainage Easements)
Assuming Typical Easements
(Possible Storm Drain & Monitoring Well Easements)
Prior to issuance of this appraisal report, I was not provided a current Title Report on
any of the subject parcels. It is noted that Subject Property 1 is located on both sides of
Chism Street. According to Record of Survey 5390, recorded in the Official Records of
Washoe County as Document Number 4100097 on April 4, 2012, a private blanket access
easement is hereby granted over Parcel 3C (Chism Street Parcel-see map for location of
parcel) as shown on the map for the benefit of any parcel adjoining it. This blanket easement
allows access to each of the parcels from Chism Street, including Subject Property 2.
During my inspection of the subject properties, several water drainage structures were
noted along the south portion of A.P.N. 010-610-01 on Subject Property 1, and a monitoring
well was located toward the central portion of A.P.N. 010-610-05 on Subject Property 2.
Although the location of these structures may impact the location of development of any
structures on these parcels, Subject Property 1 and Subject Property 2 both have sufficient
land area for development of structures on other portions of the sites.
This appraisal report assumes that the subject parcels are not negatively impacted by
the presence of easements. If a subsequent Survey or Title Report recognizes the presence of
easements which could detrimentally impact development of the subject properties, the value
conclusions set forth in this report could be materially impacted.
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Shape & Topography
Subject Property 1 has a long, narrow shape with its widest point being at the east
property line of the site. Due to its long, narrow shape, the most developable portion of
Subject Property 1 is felt to be toward the east portion of A.P.N. 010-610-02. Assessor’s
Parcel Number 010-031-08 is located on the south side of Chism Street, and also has a fairly
long, narrow shape. Reference is made to maps and photographs which provide better visual
evidence of the shape of Subject Property 1.
Subject Property 1 has level to gently sloping topography which gently slopes down
from east to west. A concrete retaining wall is located approximately 440± feet east of
Assessor’s Parcel Number 010-610-02’s northwest property corner; west of this retaining wall
there is a drop-off of several feet in elevation from the east side of the retaining wall.
Assessor’s Parcel Number 010-031-08 of Subject Property 1 is located on the south side of
Chism Street; this parcel is located below grade from Chism Street, but sits generally level
from East Second Street. Due to the shape of
Subject Property 2 has an almost rectangular shape, and has level to very gently
sloping topography. This site has good topography for development. Overall, the subject
properties are considered to have adequate topography for development, and appear to
provide adequate drainage.
Environmental and Soils Data
An environmental site assessment of the subject sites was not provided to me by the
client. However, based upon the properties’ surrounding improvements, it is my opinion that
the subject parcels have adequate soil features for development. This appraisal report
assumes that the subjects’ soils are sufficient for development with uses compatible with the
highest and best use of the property.
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Hazardous Substances
My standard on-site inspection of the subject properties did not reveal any readily
apparent evidence suggesting the presence of contaminants or hazardous wastes on any
portion of the subject sites. For the purposes of this appraisal, it is assumed that the value of
the subject properties is not negatively impacted by the existence of toxic materials or
hazardous wastes.
Subject’s Sale History
The subject properties have not been involved in any arms length transactions over the
past five year period preceding the effective date of value.
Special Assessments
A review of Special Assessments on the subject properties was conducted through
Assessment Management Group. No Special Assessments on the subject parcels were
indicated.
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ASSESSMENT & TAXABLE VALUE DATA
The assessment of real property in Nevada is governed by the Nevada Revised
Statues, which requires the County Assessor to assess at 35% of the taxable value of the
property. The taxable value of the property is based upon the Assessor’s estimate of the full
cash value of the site. The taxable value of the improvements is based upon the replacement
cost new of the improvements which the Assessor estimates utilizing Marshall Valuation
Service a nationally recognized and accepted cost estimating publication. Straight line
depreciation of 1.5% per year is deducted from the replacement cost new of the
improvements. The chart below summarizes the assessed and taxable values of each of the
subject properties.
Assessment & Taxable Value Data
Roll
Year
Land Taxable
Value
2014 FV
2013 FV
2012 FV
48,362
48,362
42,317
2014 FV
2013 FV
2012 FV
273,024
273,024
238,896
2014 FV
2013 FV
2012 FV
276,777
276,777
276,777
2014 FV
2013 FV
2012 FV
541,536
541,536
473,844
* FV=Final Value
Buildings Taxable
Total Taxable
Land
Value
Value
Assessed
Valuation History for 010-610-01 (Subject 1-Portion)
0
48,362
16,927
0
48,362
16,927
0
42,317
14,811
0
273,024
95,558
0
273,024
95,558
0
238,896
83,614
0
276,777
96,872
0
276,777
96,872
0
276,777
96,872
Valuation History for 010-610-05 (Subject 2)
0
541,536
189,538
0
541,536
189,538
0
473,844
165,845
Building
Assessed
Secured Total
Assessed
0
0
0
16,927
16,927
14,811
0
0
0
95,558
95,558
83,614
0
0
0
96,872
96,872
96,872
0
0
0
189,538
189,538
165,845
Real Property Tax Data
The subject properties are owned by the City of Reno Redevelopment Agency and the
City of Reno, and are therefore exempt from real property taxes.
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HIGHEST AND BEST USE ANALYSIS
Highest and best use is defined in the 5th Edition of The Dictionary of Real Estate
Appraisal (Appraisal Institute, Chicago, 2010) as “The most probable use of a property which
is physically possible, appropriately justified, legally permissible, financially feasible, and
which results in the highest value of the property being valued.”
Highest and best use is typically a three-step process. The first step is to determine the
highest and best use of the subject sites as vacant and available to be developed to their
highest and best use. The determination must be made to leave the sites vacant or to improve
them. If the conclusion is to improve the sites, the second step is to determine the ideal
improvements. The final step is a comparison between the ideal improvement on the sites and
the existing improvements. A determination is then made to maintain the properties in their
present form, or to modify the improvements with a more ideal development.
The Reno real estate market was hard hit by the economic crisis beginning in 2008.
For years the State of Nevada had the highest rate of foreclosures in the country. The
residential (for-sale and for-lease) market, retail sector, industrial sector, and the office market
all struggled significantly over the five years.
The current climate appears to be more favorable with rents stabilizing and vacancy
rates declining. Although vacancy rates are generally declining, current economic conditions
would likely limit the financially feasibility of development of the subject properties, if
vacant, in the short-term, although it is likely that the parcels would be attractive to investors
and developers for future development upon a recovery in the market.
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HIGHEST AND BEST USE ANALYSIS-SUBJECT PROPERTY 1
Highest And Best Use As Though Vacant
Physically Possible
Subject Property 1 is three parcels of land containing a total gross land area of 2.797±
acres (121,836± square feet) and is located on the south side of the Union Pacific Railroad
Right-of-Way, and on both sides of Chism Street. Subject Property 1 is irregular in shape and
all utilities are available to the site.
Subject Property 1 is located on both sides of the Chism Street extension. This
roadway extension runs in an east-west direction through the south-central portion of the site.
Assessor’s Parcel Number 010-610-02 has a long, narrow shape, which becomes
narrower toward the west end of the parcel; Assessor’s Parcel Number 010-610-01 is located
west of the west end of this parcel. Any development of these two parcels with a permanent
structure would likely involve a smaller building located toward the east end of A.P.N. 010610-02, with the west end of the parcels being utilized for setback requirements, parking,
landscaping, signage, open space or other similar uses. Due to the configuration of these two
parcels, it is my opinion that the physically possible uses of the two parcels, and in particular
A.P.N. 010-610-01, would be enhanced by developing the properties as one parcel. A.P.N.
010-610-01 would provide a good location for signage for any development located on 010610-02.
Assessor’s Parcel Number 010-031-08 is a narrow, 32,562± square foot parcel located
on the south side of Chism Street, north of West Second Street. Although this parcel has a
narrow shape, it does have adequate physical features for development.
Legally Permissible
Property 1 will be rezoned to Community Commercial (CC). The purpose of the CC zoning
district is to provide for general commercial and service enterprises for the community at
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large. This zoning district allows a variety of commercial uses. A complete summary of
allowed uses in the CC Zoning designation is set forth in the Addenda of this report.
Overall, Subject Property 1’s legally permissible uses include a variety of industrial,
commercial, and residential uses.
Financially Feasible & Maximally Productive
In assessing the most financially feasible use of Subject Property 1, consideration is
given to the subject’s proposed zoning, as well as the layout and physical characteristics of
the site. Additional consideration is given to the subjects’ visibility, the location of Chism
Street, and the subject’s location adjacent to the ReTRAC trench.
With consideration given to Subject Property 1’s physical characteristics, surrounding
uses and current economic conditions in the immediate subject neighborhood, it is my opinion
that the most financially feasible use of the site is for a secondary commercial development.
Due to the shape of the property, the western portions of the northern parcels would
likely be utilized for signage, landscaping, or possible parking. Any permanent structure on
Subject Property 1 would likely be constructed on the north side of Chism Street toward the
northeast portion of the site. The parcel on the south side of Chism Street could be developed
with a small structure, but would also potentially benefit from assemblage with parcels to the
south and east of the parcel. Development of the property would likely be from an owneruser, or once demand for development generated potential rents which warranted
development of the site.
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HIGHEST AND BEST USE ANALYSIS-SUBJECT PROPERTY 2
Highest And Best Use As Though Vacant
Physically Possible
Subject Property 2 is a parcel of land containing a total land area of 3.018± acres
(131,464± square feet). This parcel is located on the south side of the Union Pacific Railroad
Right-of-Way, and north of the Arletta Street north terminus. Subject Property 2 is
rectangular in shape and all utilities are available to the site.
Subject Property 2 has adequate size and access for development. Subject Property 2
has access from Chism Street, which is located near its southwest property corner, as well as
from Arletta Street, which terminates along the parcel’s south property line. The subject
property’s north property line abuts the Union Pacific Railroad’s main line track through
Reno, which has been depressed below grade in the vicinity of the subject as part of the
ReTRAC project.
Overall, it is my opinion that Subject Property 2 has adequate physical features to
support a variety of improvements. The subject’s size, access, topography, location and
availability of utilities are not felt to be physically limiting to the development of the subject
site.
Legally Permissible
According to the City of Reno Community Development Department, the eastern
portion of Subject Property 2 will remain zoned Industrial, while the western portion of
Subject Property 2 will be rezoned Community Commercial (see definition above). The
purpose of the Industrial zoning district is to provide for intensive activities and land uses that
have the most potential for impacting adjacent land uses and infrastructure (e.g., heavy
industrial). This zoning should be located in areas with access to air, roadway, and/or railway
transportation systems. This zoning district allows a variety of industrial and commercial
uses. A complete summary of allowed uses in the CC and I Zoning designations is set forth in
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the Addenda of this report. Overall, Subject Property 1’s legally permissible uses include a
variety of industrial and commercial uses.
Financially Feasible & Maximally Productive
In assessing the most financially feasible and maximally productive use of Subject
Property 1, consideration is given to the subject’s proposed zoning, as well as the layout and
physical characteristics of the site. Additional consideration is given to the subject’s visibility
and location adjacent to the ReTRAC trench.
Based upon the above analysis, and with consideration given to Subject Property 2’s
physical characteristics, surrounding uses and current economic conditions in the immediate
subject neighborhood, it is my opinion that the most financially feasible use of the site is for
industrial or secondary commercial development which may include outdoor storage areas.
Development of the property would likely be from an owner-user, or once demand for
development generated potential rents which warranted development of the site.
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INTRODUCTION TO VALUATION ANALYSIS
There are three approaches to value typically utilized in appraising real estate. These
approaches are the Cost Approach to Value, the Income Approach to Value and the Sales
Comparison Approach to Value.
As Subject Properties 1 and 2 involve vacant parcels of land I have utilized the Sales
Comparison Approach to Value. The Sales Comparison Approach is the approach typically
utilized in appraising vacant properties in the Reno market.
Sales Comparison Approach To Land Value
To establish an indication of the Market Value of the subject properties, I have utilized
the Sales Comparison Approach to Value. The Cost and Income Approaches to Value were
not considered to be applicable. The Sales Comparison Approach is based on the principal of
substitution, which holds that the value of the subject properties tend to be set by the price
that would be paid to acquire a substitute property of similar utility and desirability. Set out
on the following page are the comparable land sales utilized in the Sales Comparison
Approach. Within the correlation section, listings will also be analyzed.
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COMPARABLE LAND SALES CHART
Sale
Number
LS-1
LS-2
LS-3
LS-4
LS-5
LS-6
Subject
Property
1
Subject
Property
2
A.P.N.
Location
City, State
008-370-16 & 17; 008-381-31
North Side Commercial Row,
Both Sides Sutro Street
Reno, NV
008-184-002
Southeast Corner Elko Avenue &
East 6th Street
Reno, NV
212-050-12
Southeast Corner Woodland Avenue
& White Fir Street
Reno, NV
082-492-21
145± Feet South of Security Circle,
225± Feet East Of Old North Virginia Street
Reno, NV
006-211-11
Northeast Corner West Fourth Street &
Cemetery Road
Reno, NV
008-382-01
North Side East Fourth Street,
165.31 Feet East of Threlkel Street
Reno, NV
010-610-01 & 02; 010-031-08
Between U.P.R.R. Right-of-Way &
W. 2nd St., Both Sides of Chism Street
Reno, NV
010-610-05
South Side U.P.R.R. Right-of-Way,
North of Arletta Street North Terminus
Reno, NV
Recording Date
Sale Price
5/27/2011
$1,115,307
Zoning
Topography
Flood Zone
MUE4
Level
"X"
Land Acres
Price/Acre
4.01 Acres
$277,940
Land Square Feet
Price/SF
174,796 SF
$6.38
7/5/2012
$190,000
MUDR
Level
"X"
1.18 Acres
$160,377
51,606 SF
$3.68
7/5/2012
$256,000
MUW4
Level
"X"
1.02 Acres
$250,982
44,431 SF
$5.76
8/2/2012
$170,000
MUNV
Level
"X"
1.64 Acres
$103,912
71,264 SF
$2.39
7/11/2014
$850,000
MUW4
Level
"X"
5.09 Acres
$166,935
221,799 SF
$3.83
7/15/2014
$105,000
MUE4
Level
"X"
0.72 Acres
$146,780
31,161 SF
$3.37
Date Of
Value
8/7/2014
Assumes CC
Level-Gentle
"X" & Shaded X
2.80 Acres
121,836 SF
Date Of
Value
8/7/2014
Assumes CC & I
Level
"X" & Shaded X
3.02 Acres
---
131,464 SF
---
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A P P R A I S E R S
&
COMPARABLE LAND SALE MAP AND DISCUSSION
SALE LS-1
Vacant Land
Reno
Property Type:
City:
Both Sides Sutro Street
Washoe
Location:
County:
008-370-16 & 17; 008-381-31
Nevada
A.P.N.:
State:
Level
Zone “X”
Topography:
Flood Zone:
MUE4
Available
Zoning:
Utilities:
4.01 Acres
None Included
Parcel Acreage:
Water Rights:
174,796 Square Feet
Materials Reclamation Facility
Parcel Square Feet:
Proposed Use:
May 27, 2011
$277,940
Recording Date:
Price Per Acre:
$1,115,307
$6.38
Sale Price:
Price/Square Foot:
Redevelopment Agency of City of Reno
Cash to Seller
Grantor:
Terms Of Sale:
Waste Management of Nevada, Inc.
None
Grantee:
Conditions of Sale:
4007550
Lori Miles-City of Reno
Document #:
Verification:
This sale includes three non-contiguous parcels located at the northwest corner and the northeast corner of Sutro Street and
Commercial Row in central Reno. The site has level topography and is enclosed with chain link fencing. The property is
situated at the entrance to the Waste Management transfer station and was being utilized as an outdoor storage yard. The sale
was initially negotiated in 2008, although the price was adjusted downward due to the recession before closing in 2011.
Waste Management plans to build a 60,000± square foot material recovery facility on the property.
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A P P R A I S E R S
&
SALE LS-2
Vacant Land
Reno
Property Type:
City:
SEC 6th Street & Elko Avenue
Washoe
Location:
County:
212-050-12
Nevada
A.P.N.:
State:
Level
Zone “X”
Topography:
Flood Zone:
MUW4
Available
Zoning:
Utilities:
1.02 Acres
None Included
Parcel Acreage:
Water Rights:
44,431 Square Feet
N/A
Parcel Square Feet:
Proposed Use:
July 5, 2012
$250,982
Recording Date:
Price Per Acre:
$256,000
$5.76
Sale Price:
Price/Square Foot:
Messenger Molding, Inc.
Cash to Seller
Grantor:
Terms Of Sale:
Rocking O, LLC
None
Grantee:
Conditions of Sale:
4128787
Thomas Fennell
Document #:
Verification:
This is the July 2012 sale of a vacant 1.185± acre industrial parcel located in central Reno. This site is located at the
southeast corner of Elko Avenue and East 6th Street and is bordered on the south and east by a railroad right-of-way. The
parcel has level topography and all utilities are immediately available. The site is zoned Mixed Use, however it is situated
within an older industrial pocket several blocks east of the downtown Reno core area. The parcel was improved with the
Sierra Fuel Company facility. In discussion with Mr. Bowden, the listing broker, it was indicated that the fuel tanks have
been removed and the site is certified as clean. Mr. Bowden’s did note that the property owner informed him that the
railroad right-of-way has been abandoned.
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A P P R A I S E R S
&
SALE LS-3
Vacant Land
Reno
Property Type:
City:
SEC Woodland Ave. & White Fir St.
Washoe
Location:
County:
212-050-12
Nevada
A.P.N.:
State:
Level
Zone “X”
Topography:
Flood Zone:
MUW4
Available
Zoning:
Utilities:
1.02 Acres
None Included
Parcel Acreage:
Water Rights:
44,431 Square Feet
Landscape Business
Parcel Square Feet:
Proposed Use:
July 5, 2012
$250,982
Recording Date:
Price Per Acre:
$256,000
$5.76
Sale Price:
Price/Square Foot:
Messenger Molding, Inc.
Cash to Seller
Grantor:
Terms Of Sale:
Rocking O, LLC
None
Grantee:
Conditions of Sale:
4128787
Scott Owen
Document #:
Verification:
This is a level site located at the entrance of the Reno/West Business Park. In the years prior to the sale, the property had
been offered for lease at $0.10/ per square foot per month. The buyer owns Reno Green Landscaping and had tried to
purchase the property in the past. The site has level topography and access to all public utilities. Surrounding properties
include a multi-tenant industrial and warehouse/distribution buildings. The Union Pacific Railroad right-of-way is located
across White Fir Street from this parcel, and there is a rail crossing at Woodland Avenue just north of the site.
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A P P R A I S E R S
&
SALE LS-4
Vacant Land
Reno
Property Type:
City:
South of Security Circle
Washoe
Location:
County:
082-492-21
Nevada
A.P.N.:
State:
Level
Zone “X”
Topography:
Flood Zone:
MUNV
Available
Zoning:
Utilities:
1.64 Acres
None Included
Parcel Acreage:
Water Rights:
71,264 Square Feet
N/A
Parcel Square Feet:
Proposed Use:
August 2, 2012
$103,912
Recording Date:
Price Per Acre:
$170,000
$2.39
Sale Price:
Price/Square Foot:
Johnson Family Trust
Seller Financing
Grantor:
Terms Of Sale:
Ghumman Trucking Inc., et al
None
Grantee:
Conditions of Sale:
413800
Brian Armon
Document #:
Verification:
This comparable is an “L” shaped property with no public street frontage. The site is accessed using a private, paved
access easement between two existing buildings. The entire site is useable with level topography. The property was listed
about one year prior to the sale. Sale terms included a seller carried note in the amount of $120,000 at 8%, 20 year
amortization, due in 3 years. The broker did not feel that the seller financing affected the sale price, because the term is
relatively short and the interest rate is near market.
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R E A L
E S T A T E
A P P R A I S E R S
&
SALE LS-5
Vacant Land
Reno
Property Type:
City:
Northeast Corner W. 4th St. & Cemetery Rd.
Washoe
Location:
County:
006-211-11
Nevada
A.P.N.:
State:
Level
Zone “X”
Topography:
Flood Zone:
MUW4
Available
Zoning:
Utilities:
5.0918 Acres
N/A
Parcel Acreage:
Water Rights:
221,799 Square Feet
Construction Yard
Parcel Square Feet:
Proposed Use:
July 11, 2014
$166,935
Recording Date:
Price Per Acre:
$850,000
$3.83
Sale Price:
Price/Square Foot:
Log Cabins LLC
Cash to Seller
Grantor:
Terms Of Sale:
1675 4th Street, LLC
None
Grantee:
Conditions of Sale:
4372176
Assessor’s Office
Document #:
Verification:
This comparable is a parcel located on the northeast corner of West Fourth Street and Cemetery Road in west Reno, just
under ½ mile west of Keystone Avenue. This property had previously been improved with the Silver State Lodge motel
project, which involved cabin-styled motel units. These units had been demolished and the site had been fenced and used
for equipment and construction storage. The buyer in this transaction owns a local construction company.
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A P P R A I S E R S
&
SALE LS-6
Reno
Washoe
Nevada
Zone “X”
Available
None Included
N/A
$146,780
$3.37
Cash to Seller
None
Todd & Kyle CollinsArchcrest Commercial
This is the July 2014 sale of a 31,161± square foot parcel which is located on the north side of East Fourth Street, 165.31±
feet east of Threlkel Street in east Reno. This parcel is zoned Mixed Use, and was formerly improved with an RV Park;
the site had been cleared, and the site was given a clean environmental report prior to the sale. At the time of sale, the
property had been listed for $125,000.
Property Type:
Location:
A.P.N.:
Topography:
Zoning:
Parcel Acreage:
Parcel Square Feet:
Recording Date:
Sale Price:
Grantor:
Grantee:
Document #:
Vacant Land
North Side E. 4th Street
008-382-01
Level
MUE4
0.72 Acres
31,161 Square Feet
July 15, 2014
$105,000
Shady Grove Trailer Village, LLC
Truckee Meadows Water Authority
4373420
City:
County:
State:
Flood Zone:
Utilities:
Water Rights:
Proposed Use:
Price Per Acre:
Price/Square Foot:
Terms Of Sale:
Conditions of Sale:
Verification:
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R E A L
E S T A T E
A P P R A I S E R S
&
CORRELATION AND FINAL MARKET VALUE CONCLUSION
In analyzing the Market Value of the subject properties, a total of six land sales were
considered. The comparable sales range in date of sale (recording date) from May 2011 to
July 2014. In this analysis, I will adjust the land sales on a price per square foot basis. In
addition to the sales, consideration will be given to current listings of vacant land considered
comparable to the subject properties.
Discussion of Adjustments
The comparable properties utilized in this analysis will be compared and correlated to
the subject properties based upon several adjustment criteria. These include property rights
conveyed, financing terms, conditions of sale, expenditures immediately after purchase,
market conditions, location, physical characteristics, zoning/use, and non-realty components
of value.
In the following analysis, comparisons will be made to the subject parcels, on a
general basis, and the comparable sales data. In a subsequent section, specific comparisons
will be made between the sales and the specific subject parcels.
Property Rights Conveyed
In this report I am estimating the fee simple market value of each of the subject
properties. Each of the sales analyzed involved the sale of the fee simple interest of the
property; therefore, no adjustments for property rights are required to the sales when
comparing them to the subject’s fee simple estates.
Financing-Terms of Sale (Cash Equivalency)
Each of the sales involved cash to seller terms, or terms that were based upon typical
market rates; therefore, no adjustments are necessary to the sale properties with respect to
financing terms.
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Conditions of Sale
Based upon interviews with the persons involved in each of the sales utilized in this
analysis, no adjustments are necessary for conditions of sale for any of the sales.
Buyer Expenditures
Based upon an analysis of the sales, no adjustments for buyer expenditures are
necessary; each of the land sales involved essentially vacant parcels.
Market Conditions (Date Of Sale)
In this portion of the appraisal report, I am estimating the market value of the subject
properties as of August 7, 2014. The sales range in date of recording between May 2011 and
July 2014. Although market conditions in general have improved between 2011 and 2014,
limited land sales similar to the subject parcels have occurred in the market, and no market
evidence suggests increases in land values for properties similar to the subject parcels.
Therefore, no adjustments have been made to the sales.
Legal/Zoning
Each of the sales has Mixed Use zoning, although several of the sales are located in
primarily industrial areas. Subject Property 1 is assumed to be zoned Community
Commercial; Community Commercial is felt to be a slightly inferior zoning designation in
comparison to Mixed Use, and therefore requires a slight downward adjustment for zoning.
Subject Property 2 will be zoned Community Commercial and Industrial which is felt to be an
inferior zoning designation in comparison to Mixed Use, and therefore requires a slight
downward adjustment for zoning.
General Location
The subject includes two separate identified properties which are located adjacent to
each other, on the south side of the Union Pacific Railroad Right-of-Way, and north of West
Second Street. The subject properties have superior general locations than Sales LS-1, LS-2,
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A P P R A I S E R S
&
LS-3, LS-4 and LS-6. Sale LS-5 is located in very close proximity to the subject, and is felt
to have a competitive general location to the subject.
Access/Frontage
Adjustments will be made to the sales in comparison to the subject properties based
upon their accessibility and frontage along adjacent roadways. Subject Property 1 has
frontage along West 2nd Street and Chism Street, while Subject Property 2 has frontage along
Chism Street and the north terminus of Arletta Street.
Size
The comparable sales range in land area from 0.72± acre to 5.09± acres. Generally a
relationship exists between the size of the parcel and the per unit price paid. An upward
adjustment will be made to the sales of larger parcels, while a downward adjustment will be
made for sales with smaller parcel sizes.
Other Adjustments
Other adjustments will be made to the sales for any physical characteristics considered
applicable. All of the sales have been adjusted downward in comparison to Subject Property
1 due to its non-contiguous land area, and all of the sales other than LS-4 have been adjusted
downward for shape in comparison to Subject Property 1.
The following chart summarizes the adjustments made to the sales in comparison to
the subject properties. An equal sign indicates the sale property and the subject are similar
and/or competitive for a particular criterion. A plus sign indicates that the subject is superior
for a particular criterion, and an upward adjustment is required to the sale price per square
foot of the comparable; likewise, a minus sign indicates that the subject is inferior for a
particular criterion, and a downward adjustment is required to the sale price per square foot of
the comparable.
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A P P R A I S E R S
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Adjustments to Subject Property 1
Sale Number
Sale Price
Sale Price/SF
Quantitative Adj.
Adjusted Price/SF
Qualitative
Adjustments
Property Rights
Financing/Cash Equ.
Conditions of Sale
Expenditures
Market Conditions
Legal/Zoning
General Location
Access
Frontage
Size
Other
Subject 4
N/A
N/A
N/A
N/A
LS-1
$1,115,307
$6.38
$0.00
$6.38
LS-2
$190,000
$3.68
$0.00
$3.68
LS-3
$256,000
$5.76
$0.00
$5.76
LS-4
$170,000
$2.39
$0.00
$2.39
LS-5
$850,000
$3.83
$0.00
$3.83
LS-6
$105,000
$3.37
$0.00
$3.37
Fee Simple
Assumes Cash
None
Assumes
None
8/7/14
CC
West Reno
Average
Chism/2nd St.
2.80 AC
None
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
++
+
- (Shape)
- (Non Con.)
High
=
+++
- (Shape)
- (Non Con.)
High
=
+++
- (Shape)
- (Non Con.)
High
=
+++
+
+
- (Non Con.)
=
=
+
- (Shape)
- (Non Con.)
High
=
+++
=
=
- (Shape)
- (Non Con.)
High
OVERALL INDICATOR
Low
Adjustments Summary: Subject Property 1
Subject Property 1 has a highest and best use of secondary commercial. Subject
Property 1 is considered superior to Sale LS-4, as this property does not have direct frontage
and is flag-shaped. Sales LS-1, LS-2, LS-3, LS-5 and LS-6 are each considered superior to
Subject Property 1. Overall, the sales indicate a fairly tight range in prices per square foot,
and are felt to bracket the subject’s value per square foot.
Adjustments to Subject Property 2
Sale Number
Subject 4
Sale Price
N/A
Sale Price/SF
N/A
Quantitative Adj.
N/A
Adjusted Price/SF
N/A
Qualitative Adjustments
Property Rights
Fee Simple
Financing/Cash Equ.
Assumes Cash
Conditions of Sale
None
Expenditures
Assumes None
Market Conditions
8/7/14
Legal/Zoning
CC & I
General Location
West Reno
Access
Fair
Frontage
Chism/Arltetta
Size
3.02 AC
Other
None
OVERALL INDICATOR
LS-1
$1,115,307
$6.38
$0.00
$6.38
LS-2
$190,000
$3.68
$0.00
$3.68
LS-3
$256,000
$5.76
$0.00
$5.76
LS-4
$170,000
$2.39
$0.00
$2.39
LS-5
$850,000
$3.83
$0.00
$3.83
LS-6
$105,000
$3.37
$0.00
$3.37
=
=
=
=
=
++
+
=
High
=
=
=
=
=
+++
=
Reasonable
=
=
=
=
=
+++
=
High
=
=
=
=
=
+++
+
+
+ (Shape)
Low
=
=
=
=
=
=
+
=
Reasonable
=
=
=
=
=
+++
=
=
=
Low
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Adjustments Summary: Subject Property 2
Subject Property 2 has a highest and best use of secondary commercial and/or
industrial. Subject Property 2 is considered superior to Sale LS-4, as this property does not
have direct frontage and is flag-shaped; Subject Property 2 is also felt to be superior to Sale
LS-6, mainly due to its general location. Sales LS-1 and LS-3 are considered superior to
Subject Property 2. Sales LS-2 and LS-5 are felt to be reasonable indicators. Overall, the
sales indicate a fairly tight range in prices per square foot, and are felt to bracket the subject’s
value per square foot.
In addition to the sales, a review of comparable vacant land parcels currently available
for sale was completed. The most comparable listings are set forth below.
Comparable Land Listing Chart
The comparable land listings range in size between 1.16± acres and 4.42± acres, and
indicate asking prices between $1.94 and $5.22 per square foot.
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After careful analysis of the data, I have arrived at the following value conclusions. It
is noted that the final market value conclusions of the properties represent the Market Value
of the fee simple interests of the subject properties as of August 7, 2014, based upon the
Hypothetical Assumption that the properties have been rezoned to Community Commercial
(Subject Property 1) and Community Commercial and Industrial (Subject Property 2).
Final Market Value Conclusions
Property
A.P.N.
Land SF Value/SF Final Value (Rounded)
010-610-01
Subject Property 1 010-610-02 & 121,836 SF
$3.00
$365,000
010-031-08
Subject Property 2 010-610-05 131,464 SF
$3.75
$495,000
Date of
Final Value
Property
A.P.N.s
Interest Appraised
Value
Conclusion
Subject
Fee Simple
010-610-01, 02
August 7,
Property
$365,000*
& 010-031-08
2014
1
Has Taken Place)*
Subject
Fee Simple
August 7,
Property
010-610-05
$495,000*
2014
2
Has Taken Place)*
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E S T A T E
A P P R A I S E R S
&
EXPOSURE AND MARKETING TIME
Exposure time is defined as the length of time that would have been necessary to
expose the property on the open market, in order to have consummated the sale at the
effective date of valuation. This analysis assumes the property was marketed at the value
conclusion contained in this report.
Marketing time, on the other hand, is the time necessary to consummate a sale of the
subject property assuming that a marketing effort is begun as of the effective date of valuation
and that the property is marketed at the final property value conclusion contained in this
report.
In arriving at an estimate of an appropriate exposure and marketing time for the
subject properties, consideration is given to each of the subject property’s physical
characteristics. Consideration is also given to the exposure and marketing times of other
property in the market, and interviews with brokers, buyers and sellers familiar with similar
properties. Based upon a review of the available data, it is my opinion that an appropriate
exposure and marketing time for the subject properties is as set out below.
Exposure & Marketing Times
Subject Property
Subject Property 1
Subject Property 2
Exposure Time
Approximately 1 Year
Marketing Time
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APPRAISERS’ CERTIFICATION
Each of the undersigned does hereby certify that, unless otherwise noted in this
appraisal report, that they do certify to the best of their belief:
•
The statements of fact contained in this report are true and correct.
•
The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions and are my personal, impartial, and unbiased
professional analyses, opinions, and conclusions.
•
I have no present or prospective interest in the property that is the subject of this report
and no personal interest with respect to the parties involved.
•
I have performed services as an appraiser regarding the property that is the subject of
this report within the three-year period immediately preceding acceptance of this
assignment.
•
I have no bias with respect to the property that is the subject of this report or to the
parties involved with this assignment.
•
My engagement in this assignment was not contingent upon developing or reporting
predetermined results.
•
My compensation for completing this assignment is not contingent upon the
development or reporting of a predetermined value or direction in value that favors the
cause of the client, the amount of the value opinion, the attainment of a stipulated
result, or the occurrence of a subsequent event directly related to the intended use of
this appraisal.
•
My analyses, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the Uniform Standards of Professional Appraisal
Practice.
•
I have made a personal inspection of the property that is the subject of this report.
•
No one provided significant real property appraisal assistance to the person signing
this certification.
•
The Appraisal Institute conducts a mandatory program of continuing education
for its designated members. As of the date of this report, Scott Griffin has
completed the requirements under the continuing education program of the
Appraisal Institute.
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•
E S T A T E
A P P R A I S E R S
&
The use of this report is subject to the requirements of the Appraisal Institute
relating to review by its duly authorized representatives.
I attest to have the knowledge and experience necessary to complete this appraisal
assignment and have appraised this property type many times before. No one other than the
undersigned prepared the analysis, conclusions and opinions concerning real estate that are set
forth in the accompanying appraisal report. After careful consideration of all data available
and upon thorough personal inspection of the subject properties and the comparable properties
analyzed, I have estimated the market value of the subject properties, subject to the
extraordinary assumptions set forth in this appraisal report, as of August 7, 2014, as set out
below.
Date of
Final Value
Property
A.P.N.s
Interest Appraised
Value
Conclusion
Subject
Fee Simple
010-610-01, 02
August 7,
Property
$365,000*
& 010-031-08
2014
1
Has Taken Place)*
Subject
Fee Simple
August 7,
Property
010-610-05
$495,000*
2014
2
Has Taken Place)*
Respectfully Submitted,
Nevada Certified General Appraiser
License Number A.0003504-CG
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A P P R A I S E R S
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STANDARD ASSUMPTIONS AND LIMITING CONDITIONS
The acceptance of this appraisal assignment and the completion of the appraisal report
submitted herewith are contingent upon the following assumptions and limiting conditions.
LIMITS OF LIABILITY
This report was prepared by Johnson-Perkins & Associates, Inc. All opinions, recommendations,
and conclusions expressed during the course of this assignment are rendered by the staff of JohnsonPerkins & Associates, as employees, not as individuals. The liability of Johnson-Perkins & Associates,
Inc. and its employees and associates is limited to the client only and to the fee actually received by the
appraisal firm. There is no accountability, obligation, or liability to any third party. If the appraisal
report is disseminated to anyone other than the client, the client shall make such party or parties aware
of all limiting conditions and assumptions affecting the appraisal assignment. Neither the appraisers
nor the appraisal firm is in any way to be responsible for any costs incurred to discover or correct any
physical, financial and/or legal deficiencies of any type present in the subject property. In the case of
limited partnerships or syndication offerings or stock offerings in real estate, the client agrees that in the
event of a lawsuit brought by a lender, a partner or part owner in any form of ownership, a tenant or any
other party, the client will hold the appraiser(s) and the appraisal firm completely harmless in such
action with respect to any and all awards or settlements of any type in such lawsuits.
COPIES, PUBLICATION, DISTRIBUTION AND USE OF REPORT
Possession of this report or any copy thereof does not carry with it the right of publication, nor may
it be used for any purpose or any function other than its intended use, as stated in the body of the report.
The appraisal fee represents compensation only for the analytical services provided by the appraiser(s).
The appraisal report remains the property of the appraisal firm, though it may be used by the client in
accord with these assumptions and limiting conditions.
This appraisal is to be used only in its entirety, and no part is to be used without the whole report.
All conclusions and opinions concerning the analysis as set forth in the report were prepared by the
appraiser(s) whose signature(s) appears on the appraisal report, unless it is indicated that one or more of
the appraisers was acting as "Review Appraiser." No change of any item in the report shall be made by
anyone other than the appraiser(s). The appraiser(s) and the appraisal firm shall bear no responsibility
for any such unauthorized changes.
CONFIDENTIALITY
Except as provided for subsequently, neither the appraiser(s) nor the appraisal firm may divulge the
analyses, opinions or conclusions developed in the appraisal report, nor may they give a copy of the
report to anyone other than the client or his designee as specified in writing. However, this condition
does not apply to any requests made by the Appraisal Institute for purposes of confidential ethics
enforcement. Also, this condition does not apply to any order or request issued by a court of law or any
other body with the power of subpoena.
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INFORMATION SUPPLIED BY OTHERS
Information (including projections of income and expenses) provided by informed local sources,
such as government agencies, financial institutions, Realtors, buyers, sellers, property owners,
bookkeepers, accountants, attorneys, and others is assumed to be true, correct and reliable. No
responsibility for the accuracy of such information is assumed by the appraiser(s). Neither the
appraiser(s) nor the appraisal firm is liable for any information or the work product provided by
subcontractors. The client and others utilizing the appraisal report are advised that some of the
individuals associated with Johnson-Perkins & Associates, Inc. are independent contractors and may
sign the appraisal report in that capacity. The comparable data relied upon in this report has been
confirmed with one or more parties familiar with the transaction or from affidavit or other sources
thought reasonable. To the best of our judgment and knowledge, all such information is considered
appropriate for inclusion. In some instances, an impractical and uneconomic expenditure of time would
be required in attempting to furnish absolutely unimpeachable verification. The value conclusions set
forth in the appraisal report are subject to the accuracy of said data. It is suggested that the client
consider independent verification as a prerequisite to any transaction involving a sale, a lease or any
other commitment of funds with respect to the subject property.
TESTIMONY, CONSULTATION, COMPLETION OF CONTRACT FOR APPRAISAL SERVICE
The contract for each appraisal, consultation or analytical service is fulfilled and the total fee is
payable upon completion of the report. The appraisers(s) or those assisting in the preparation of the
report will not be asked or required to give testimony in court or in any other hearing as a result of
having prepared the appraisal, either in full or in part, except under separate and special arrangements at
an additional fee. If testimony or a deposition is required, the client shall be responsible for any
additional time, fees and charges, regardless of the issuing party. Neither the appraiser(s) nor those
assisting in the preparation of the report is required to engage in post- appraisal consultation with the
client or other third parties, except under a separate and special arrangement and at an additional fee.
EXHIBITS AND PHYSICAL DESCRIPTIONS
It is assumed that the improvements and the utilization of the land are within the boundaries of the
property lines of the property described in the report and that there is no encroachment or trespass
unless noted otherwise within the report. No survey of the property has been made by the appraiser(s)
and no responsibility is assumed in connection with such matters. Any maps, plats, or drawings
reproduced and included in the report are there to assist the reader in visualizing the property and are
not necessarily drawn to scale. They should not be considered as surveys or relied upon for any other
purpose, nor should they be removed from, reproduced or used apart from the report.
TITLE, LEGAL DESCRIPTIONS, AND OTHER LEGAL MATTERS
No responsibility is assumed by the appraiser(s) or the appraisal firm for matters legal in character
or nature. No opinion is rendered as to the status of title to any property. The title is presumed to be
good and merchantable. The property is appraised as if free and clear, unless otherwise stated in the
appraisal report. The legal description, as furnished by the client, his designee or as derived by the
appraiser(s), is assumed to be correct as reported. The appraisal is not to be construed as giving advice
concerning liens, title status, or legal marketability of the subject property.
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ENGINEERING, STRUCTURAL, MECHANICAL, ARCHITECTURAL CONDITIONS
This appraisal should not be construed as a report on the physical items that are a part of any
property described in the appraisal report. Although the appraisal may contain information about these
physical items (including their adequacy and/or condition), it should be clearly understood that this
information is only to be used as a general guide for property valuation and not as a complete or
detailed report on these physical items. The appraiser(s) is not a construction, engineering, or
architectural expert, and any opinion given on these matters in this report should be considered tentative
in nature and is subject to modification upon receipt of additional information from appropriate experts.
The client is advised to seek appropriate expert opinion before committing any funds to the property
described in the appraisal report.
Any statement in the appraisal regarding the observed condition of the foundation, roof, exterior
walls, interior walls, floors, heating system, plumbing, insulation, electrical service, all mechanicals,
and all matters relating to construction is based on a casual inspection only. Unless otherwise noted in
the appraisal report, no detailed inspection was made. For instance, the appraiser is not an expert on
heating systems, and no attempt was made to inspect the interior of the furnace. The structures were
not investigated for building code violations, and it is assumed that all buildings meet the applicable
building code requirements unless stated otherwise in the report.
Such items as conditions behind walls, above ceilings, behind locked doors, under the floor, or
under the ground are not exposed to casual view and, therefore, were not inspected, unless specifically
so stated in the appraisal. The existence of insulation, if any is mentioned, was discovered through
conversations with others and/or circumstantial evidence. Since it is not exposed to view, the accuracy
of any statements regarding insulation cannot be guaranteed.
Because no detailed inspection was made, and because such knowledge goes beyond the scope of
this appraisal, any comments on observed conditions given in this appraisal report should not be taken
as a guarantee that a problem does not exist. Specifically, no guarantee is given as to the adequacy or
condition of the foundation, roof, exterior walls, interior walls, floors, heating systems, air conditioning
systems, plumbing, electrical service, insulation, or any other detailed construction matters. If any
interested party is concerned about the existence, condition, or adequacy of any particular item, we
would strongly suggest that a mechanical and/or structural inspection be made by a qualified and
licensed contractor, a civil or structural engineer, an architect or other experts. This appraisal report is
based on the assumption that there are no hidden, unapparent or apparent conditions on the property or
improvements which would materially alter the value as reported. No responsibility is assumed for any
such conditions or for any expertise or engineering to discover them. All mechanical components are
assumed to be in operable condition and standard for the properties of the subject type. Conditions of
heating, cooling, ventilating, electrical and plumbing equipment are considered to be commensurate
with the condition of the balance of the improvements unless otherwise stated. No judgment is made in
the appraisal as to the adequacy of insulation, the type of insulation, or the energy efficiency of the
improvements or equipment which is assumed to be standard for the subject's age, type and condition.
TOXIC MATERIALS AND HAZARDS
Unless otherwise stated in the appraisal report, no attempt has been made to identify or report the
presence of any potentially toxic materials and/or condition such as asbestos, urea formaldehyde foam
insulation, PCBs, any form of toxic waste, polychlorinated biphenyl, pesticides, lead-based paints or
soils or ground water contamination on any land or improvements described in the appraisal report.
Before committing funds to any property, it is strongly advised that appropriate experts be employed to
inspect both land and improvements for the existence of such potentially toxic materials and/or
conditions. If any potentially toxic materials and/or conditions are present on the property, the value of
the property may be adversely affected and a re-appraisal at an additional cost may be necessary to
estimate the effects of such circumstances.
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SOILS, SUB-SOILS, AND POTENTIAL HAZARDS
It is assumed that there are no hidden or unapparent conditions of the soils or sub-soil which would
render the subject property more or less valuable than reported in the appraisal. No engineering or
percolation tests were made and no liability is assumed for soil conditions. Unless otherwise noted, the
land and the soil in the area being appraised appeared to be firm, but no investigation has been made to
determine whether or not any detrimental sub-soil conditions exist. Neither the appraiser(s) nor the
appraisal firm is liable for any problems arising from soil conditions. These appraisers strongly advise
that, before any funds are committed to a property, the advice of appropriate experts be sought.
If the appraiser(s) has not been supplied with a termite inspection report, survey or occupancy
permit, no responsibility is assumed and no representation is made for any costs associated with
obtaining same or for any deficiencies discovered before or after they are obtained.
Neither the appraiser(s) nor the appraisal firm assumes responsibility for any costs or for any
consequences arising from the need or lack of need for flood hazard insurance. An Agent for the
Federal Flood Insurance Program should be contacted to determine the actual need for flood hazard
insurance.
ARCHEOLOGICAL SIGNIFICANCE
No investigation has been made by the appraiser and no information has been provided to the
appraiser regarding potential archeological significance of the subject property or any portion thereof.
This report assumes no portion of the subject property has archeological significance.
LEGALITY OF USE
This appraisal report assumes that there is full compliance with all applicable federal, state and
local environmental regulations and laws, unless non-compliance is stated, defined and considered in
the appraisal report. It is assumed that all applicable zoning and use regulations and restrictions have
been complied with, unless a non-conformity has been stated, defined and considered in the appraisal
report. It is assumed that all required licenses, consents, or other legislative or administrative authority
from any local, state or national government, private entity or organization have been or can be
obtained or renewed for any use on which the value estimate contained in this report is based.
COMPONENT VALUES
Any distribution of the total value between the land and improvements, between partial ownership
interests or any other partition of total value applies only under the stated use. Moreover, separate
allocations between components are not valid if this report is used in conjunction with any other
analysis.
COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT
The Americans with Disabilities Act ("ADA") became effective January 26, 1992. It is assumed
that the property is in direct compliance with the various detailed requirements of the ADA.
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AUXILIARY AND RELATED STUDIES
No environmental or impact studies, special market studies or analyses, special highest and best use
studies or feasibility studies have been requested or made by the appraiser(s) unless otherwise specified
in an agreement for services and so stated in the appraisal report.
DOLLAR VALUES AND PURCHASING POWER
The estimated market value set forth in the appraisal report and any cost figures utilized are
applicable only as of the date of valuation of the appraisal report. All dollar amounts are based on the
purchasing power and price of the dollar as of the date of value estimates.
ROUNDING
Some figures presented in this report were generated using computer models that make calculations
based on numbers carried out to three or more decimal places. In the interest of simplicity, most
numbers have been rounded. Thus, these figures may be subject to small rounding errors.
QUANTITATIVE ANALYSIS
Although this analysis employs various mathematical calculations to provide value indications, the
final estimate is subjective and may be influenced by our experience and other factors not specifically
set forth in this report.
VALUE CHANGE, DYNAMIC MARKET, ALTERATION OF ESTIMATE BY APPRAISER
All values shown in the appraisal report are projections based on our analysis as of the date of
valuation of the appraisal. These values may not be valid in other time periods or as conditions change.
Projected mathematical models set forth in the appraisal are based on estimates and assumptions which
are inherently subject to uncertainty and variations related to exposure, time, promotional effort, terms,
motivation, and other conditions. The appraiser(s) does not represent these models as indicative of
results that will actually be achieved. The value estimates consider the productivity and relative
attractiveness of a property only as of the date of valuation set forth in the report.
In cases of appraisals involving the capitalization of income benefits, the estimate of market value,
investment value or value in use is a reflection of such benefits and of the appraiser's interpretation of
income, yields and other factors derived from general and specific client and market information. Such
estimates are as of the date of valuation of the report, and are subject to change as market conditions
change.
This appraisal is an estimate of value based on analysis of information known to us at the time the
appraisal was made. The appraiser(s) does not assume any responsibility for incorrect analysis because
of incorrect or incomplete information. If new information of significance comes to light, the value
given in this report is subject to change without notice. The appraisal report itself and the value
estimates set forth therein are subject to change if either the physical or legal entity or the terms of
financing are different from what is set forth in the report.
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ECONOMIC AND SOCIAL TRENDS
The appraiser assumes no responsibility for economic, physical or demographic factors which may
affect or alter the opinions in this report if said economic, physical or demographic factors were not
present as of the date of value of this appraisal. The appraiser is not obligated to predict future political,
economic or social trends.
EXCLUSIONS
Furnishings, equipment, other personal property and value associated with a specific business
operation are excluded from the value estimate set forth in the report unless otherwise indicated. Only
the real estate is included in the value estimates set forth in the report unless otherwise stated.
SUBSURFACE RIGHTS
No opinion is expressed as to the value of subsurface oil, gas or mineral rights or whether the
property is subject to surface entry for the exploration or removal of such materials, except as is
expressly stated.
PROPOSED IMPROVEMENTS, CONDITIONED VALUE
It is assumed in the appraisal report that all proposed improvements and/or repairs, either on-site or
off-site, are completed in an excellent workmanlike manner in accord with plans, specifications or other
information supplied to these appraisers and set forth in the appraisal report, unless otherwise explicitly
stated in the appraisal. In the case of proposed construction, the appraisal is subject to change upon
inspection of the property after construction is completed. The estimate of market value is as of the
date specified in the report. Unless otherwise stated, the assumption is made that all improvements
and/or repairs have been completed according to the plans and that the property is operating at levels
projected in the report.
MANAGEMENT OF PROPERTY
It is assumed that the property which is the subject of the appraisal report will be under typically
prudent and competent management which is neither inefficient nor superefficient.
FEE
The fee for any appraisal report, consultation, feasibility or other study is for services rendered and,
unless otherwise stated in the service agreement, is not solely based upon the time spent on any
assignment.
LEGAL EXPENSES
Any legal expenses incurred in defending or representing ourselves concerning this assignment will
be the responsibility of the client.
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CHANGES AND MODIFICATIONS
The appraiser(s) reserves the right, at the cost of the client, to alter statements, analyses,
conclusions, or any value estimates in the appraisal if any new facts pertinent to the appraisal process
are discovered which were unknown on the date of valuation of this report.
DISSEMINATION OF MATERIAL
Neither all nor any part of the contents of this report shall be disseminated to the general public
through advertising or sales media, public relations media, new media or other public means of
communication without the prior written consent and approval of the appraiser(s).
The acceptance and/or use of the Appraisal Report by the client or any third party
constitutes acceptance of the Assumptions and Limiting Conditions set forth in the preceding
paragraphs. The appraiser’s liability extends only to the specified client, not to subsequent
parties or users. The appraiser’s liability is limited to the amount of the fee received for the
services rendered.
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QUALIFICATIONS OF APPRAISER
SCOTT QUINN GRIFFIN
Professional Designations
MAI-Member Appraisal Institute (MAI Designation Number 12359)
State Licensing and Certification
Certified General Appraiser – State of Nevada
License Number A.0003504-CG (Certified Through 03/31/2016)
Offices Held
Board of Directors-Reno/Carson/Tahoe Chapter Appraisal Institute
Treasurer-Reno/Carson/Tahoe Chapter Appraisal Institute
President-University of Nevada Young Alumni Chapter
Appraisal Education and Technical Training
Appraisal Institute
Course 110-Appraisal Principles
Course 120-Appraisal Procedures
Course 310-Basic Income Capitalization
Course 400-Uniform Standards of Professional Appraisal Practice Update
Course 410-Standard of Professional Practice-Part A
Course 420-Standard of Professional Practice-Part B
Course 510-Advanced Income Capitalization
Course 520-Highest & Best Use Analysis
Course 530-Advanced Sales & Cost Approaches
Course 540-Course Report Writing & Valuation Analysis
Course 550-Advanced Applications
Other Courses and Seminars
The High-Tech Appraisal Office
GIS Applications for Appraisal
Uniform Standard of Professional Appraisal Practice
Comprehensive Appraisal Workshop
Evaluating Commercial Construction
Attacking & Defending An Appraisal In Litigation
Analyzing Distressed Real Estate
7-Hour National USPAP Update Course
Condemnation Appraising
Appraising Convenience Stores
Analyzing Distressed Real Estate
Apartment Appraisal, Concepts & Applications
Small Hotel/Motel Valuation
Business Practice & Ethics
Real Estate Finance Statistics and Valuation Modeling
The Discounted Cash Flow Model: Concepts, Issues, and Apps
Formal Education
University of Nevada, Reno
Bachelor of Science in Business Administration; Major-Finance, Minor-Economics
Occupational History
Johnson-Perkins & Associates
Chewy & Jug’s
Costco Wholesale
2005
2000
2009-2013
2002-2003
1999
1997
1998
1998
2004
1999
1999
1999
2002
2004
2003
2003
1997
1997
2002
2004
2006
2007
2008
2010/2012/2014
2010
2010
2012
2012
2012
2014
2014
2014
1995
03/1997-Present
11/1994-01/1996
05/1990-05/1995
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SCOTT QUINN GRIFFIN
Types of Property Appraised
Single Family Residences
Condominiums
Vacant Residential Lots
Subdivisions
Vacant Commercial Land
Industrial Buildings/Warehouses
Shopping Centers
Retail Buildings
Professional/Medical Office Buildings
Apartment Complexes
Affordable Housing Apartment Complexes
Hotels/Motels
Casinos/Hotel-Casinos
Farmland/Ranchland
Various Special Use Properties
Condemnation Appraisals
Admitted as Expert Witness
United States District Court, District of Nevada
United States Bankruptcy Court, District of Nevada
United States District Court
Superior Court-State of California
Washoe County District Court
Washoe County Board of Equalization
Nevada State Board of Equalization
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ADDENDA
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Appraisal Report

Transcription

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