Agenda Item No: M.4
AGENDA REPORT
DATE: May 5, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Receive and File Presentation on Vista Ridge Appraisal
Presentation on the Appraisal for the Vista Ridge Permanent Supportive Housing Project
Funding Source: N/A
Contact: LaTanna Jones, (707) 428-7647
RECOMMENDED ACTION
Receive and file.
STATEMENT OF ISSUE
Staff was requested to provide an explanation of the values determined in the two appraisals conducted for the property located at 3331 N. Texas St., Fairfield CA. One appraisal evaluated the property for $12,000,000 as a 100-room hotel and the other appraisal evaluated the property for $7,270,000 as a 51-unit Permanent Supportive Housing project.
DISCUSSION
The City of Fairfield was awarded $21,535,540 of HomeKey+ funds to convert a motel into Permanent Supportive Housing for homeless and at risk of homeless individuals and veterans with a behavior al health issue. The property at 3331 North Texas Street was purchased by the Danco Group (Danco) to facilitate the conversion project.
Danco negotiated and entered a Purchase and Sale Agreement with the property owners for $12,000,000 in October 2024. In January 2025, Danco commissioned Burger Valuation Consultants to perform an As-Is assessment of the property as a 100-room hotel constructed in 1988 and renovated in 2019. Burger value d the property, along with the furniture, fixtures and equipment at $12,000,000. The determination was based on Sales Comparison and Income Capitalization methodologies.
In February 2026, during the closing process of the property, Banc of California, a C onstruction and Permanent Hard lender in the project, commissioned an appraisal to determine the value of the property after conversion . That appraisal of the property was conducted by Newmark Valuation and Advisory as a 50-unit Permanent Supportive Housin g project , including one additional unit as a manager’s unit . Newmark also used Sales Comparison and Income Capitalization methods to determine the value of the property as $7,270,000 upon stabilization and rent restricted affordable housing property.
The two appraisals were obtained for the property to evaluate its two different uses. The change in use changed the valuation of the property.
The property closed escrow on March 27, 2026, and is under the new ownership of Fairfield North Texas Street LP.
FINANCIAL IMPACT
N/A
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
N/A
COORDINATED WITH
N/A
STAFF CONTACT
LaTanna Jones, Director of Housing Services
(707) 428-7647
[email protected]
ATTACHMENTS
Attachment 2: Vista Ridge Appraisal Presentation