February 27, 2022
Ms. Penny L. Reeves
Attorney at Law
Manning Leaver Bruder & Berberich, LLP
801 S. Figueroa Street, Suite 1150
Los Angeles, California 90017
Reference: 1,587 sf parcel of land contiguous to a proposed multi-point auto dealership (dba Fontana CDJR), 16263
South Highland Avenue, City of Fontana, San Bernardino
County, California 92336.
Dear Mr. Reeves:
In accordance with your request and authorization, this writing transmits Restricted Use Appraisal Report in accordance with Standards Rule 2-2© of the Uniform Standards of Professional Appraisal Practice (USPAP). The subject property comprises a relatively small 1,587 sf parcel of land, which consists of a former dedicated roadway easement, located contiguous to a proposed multi-point auto dealership dba Fontana CDJR.
The purpose of this Restricted Use Appraisal report is to set forth the investigations and analysis leading to our opinion of the as is fee simple market value of the subject property. The date of value is February 25, 2022, which corresponds to the last date of inspection; all references to property use and description relate to the date of value. The report is dated February 28, 2022, which generally corresponds to the completion of the investigations, analysis of relevant data and the completion of this report document.
The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with: the appraisal guidelines of the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice (USPAP). 38 61st Place
Long Beach, CA 90803
Phone: 562.881.3998
Fax: 562.434.5315
Email: [email protected]
1 Ms. Penny L. Reeves
Manning Leaver Bruder & Berberich, LLP
February 28, 2022
This report is a Restricted Use Appraisal Report in accordance with Standards Rule 2-2(c) of the Uniform Standards of Professional Appraisal Practice (USPAP). As such, it presents only summary discussions of the data, reasoning, analyses that were used in the appraisal process to develop the appraiser’s opinion of value. Supporting documentation concerning the data, reasoning, and analyses has been retained in the appraiser’s work files. The depth of discussion contained in this report was limited based upon the clients specific verbal and written instructions.
As a result of the studies and analyses made, we have formed the opinion that the market values, subject to the attached Limiting Conditions and Certification, are:
As Is Fee Simple Market Value
Thirty One Thousand Dollars
($31,000)
The values represent cash or cash equivalent terms without any special or creative financing or sales concessions granted by anyone associated with a sale. The following Restricted Use Appraisal is for the exclusive use of Ms. Penny L. Reeves, the law firm Manning Leaver Bruder & Berberich, LLP and Ormer Auto Group, its subsidiaries and/or affiliates.
Respectfully submitted,
Steven P. Sullivan Michael Comstock, MAI
Director, Business Valuation & Real Estate Appraisals Certified General Real Estate Appraiser Auto Dealership Appraisal Group
38 61st Place
Long Beach, CA 90803
Phone: 562.881.3998
Fax: 562.434.5315
Email: [email protected]
2 CERTIFICATION
We certify that, to the best of our knowledge and belief, .... - The statements of fact contained in this report are true and correct. - The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions and conclusions. - We 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.
- We ave no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
- Our engagement in this assignment was not contingent upon developing or reporting predetermined results. - Our 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.
- Our analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. - Steven P. Sullivan made a personal inspection of the property that is the subject of this report. No other person provided significant professional assistance to my reported analysis and conclusions. Steven P. Sullivan is in conformity with all requirements stated within this certification. - The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice (USPAP); Title XI of the Federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) and its regulations, the Standards for the Federal Deposit Insurance Corporation (FDIC), 12 CFR Part 323; and 12 CFR Part 34, Subpart C-Appraisals, 34.42 Definitions (g); and the Office of Thrift Supervision (OTS) Federal Regulation 12 CFR, Parts 506, 563, 564 and 571. - The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
- Steven P. Sullivan and Michael Comstock, MAI have adequate education, previously appraised many properties similar to this type of property, and is familiar with the area. Each is competent to appraise the subject property. Please see the qualifications section of this report for additional information. - We performed no appraisal services regarding the property that is the subject of this report within the three- year period immediately preceding acceptance of this assignment.
Steven P. Sullivan Michael Comstock, MAI
Director, Business Valuation & Real Estate Appraisals Certified General Real Estate Appraiser Auto Dealership Appraisal Group
3 COMPETENCY PROVISION
Steven P. Sullivan has adequate education, previously appraised many properties similar to this type of property, and is familiar with the area. A sample of auto dealerships appraised by this office has been summarized below:
Volvo Cars of Ontario, 1300 Auto Center Dr., Ontario
Jim Snead Ford, 2401 West Main Street, Waynesboro, Virginia John Donoghue Chevrolet, 363 Vinson Blvd, Whiteville, NC Volkswagen of Ontario, 701 Auto Center Dr., Ontario
Stanford Motors Inc (CDJR), 9631 AL-18, Vernon, AL
Derrow Shirkey Ford Lincoln, 1248 E Main St, Montpelier, OH Jeff Johnson Chevrolet, 2533 Carrollton Pike, Woodlawn, Virginia Cadillac / Mazda of Lake Lanier, 2355 Browns Bridge Road, Gainsville, GA McKenna Subaru, 18801 Beach Blvd, Huntington Beach
Family Kia, 2665 U.S. Highway 1 South, St. Augustine, Florida Pacific Volkswagen, 14900 Hindry Avenue, Hawthorne
South Bay Porsche, 14610 Hindry Avenue, Hawthorne
BMW of Riverside, 3060 Adams Street, Riverside
Lexus of Woodland Hills, 21701 Ventura Bl., Woodland Hills Tustin Toyota, 36 Auto Center Drive, Tustin
Empire Nissan & Ontario Hyundai, 1307 & 1377 Kettering Drive, Ontario, California Kent Chevrolet Cadillac, 1413 Hwy 62 E, Mountain Home, AR Nassief Toyota Ford Hyundai, 1059 OH-46, Fefferson, Ohio Shenango Honda, 3965 E. State Street, Hermitage, Pennsylvania Johnson Family CDJR, 178 Parkway Lane S., Floyd, VA
Atlanta West CDJR, 1251 Thorton Rd, Lithia Springs, Georgia Mike Patton Ford, 1402 Lafayette Parkway, LaGrange, Ga
Mike Patton Honda, 1406 Lafayette Parkway, LaGrange, Ga Mike Patton CDJR, 1408 Lafayette Parkway, LaGrange, Ga
Mike Patton PDI/Collision Center, 1400 Lafayette Parkway, LaGrange, Ga Hyundai of Venice Florida, 200 Jacaranda Boulevard, Venice, FLA Infiniti of Northern Kentucky, 1945 Dixie Highway, Ft. Wright, Kentucky Chrysler of Lawrenceburg, 1181 Bypass South, Lawrenceburg, Kentucky Rice Toyota, 2630 Battleground Ave, Greensboro, NC 27408 Bob Smith BMW, 24500 Calabasas Rd, Calabasas
Mercedes-Benz of Louisville, 2520 Terra Crossing Blvd, Louisville, KY Danville Toyota, 125 Piedmont Place, Danville, VA
Rocket Town DCJR, 1221 North H Street, Lompoc, Ca
Volkswagen of Rochester, 20 & 18A Farmington Road, Rochester, NH Galpin Honda, 11151 Laurel Canyon Blvd, San Fernando, CA Glenn Ford Lincoln, 4080 Lexington Road, Nicholasville
Covina Valley Kia, 626 S. Citrus Avenue, Covina Ca
Simi Valley Chevrolet, 1001 Cochran St, Simi Valley, CA Van Andel & Flikkema Chrysler Jeep, 3844 Plainfield Avenue, NE, Grand Rapids, Michigan Auto Plaza USA, 2000 Vince Road, Nicholasville, Ky 40356 Astro @ Exit 132 Buick GMC, 2238 White Hall Boulevard, White Hall, W. Virginia 26554 Johnson Chevrolet Buick Inc., 348 McClure Avenue, Clintwood, Va 24228 Auto Plaza USA, 2000 Vince Road, Nicholasville, Ky 40356 Astro @ Exit 132 Buick GMC, 2238 White Hall Boulevard, White Hall, W. Virginia 26554 Johnson Chevrolet Buick Inc., 348 McClure Avenue, Clintwood, Va 24228 Auto Plaza USA, 2000 Vince Road, Nicholasville, Ky 40356 Mansfield Chevrolet-Buick, Inc., 452 Hopkinsville Road, Russellville, KY 42276 Glendale Nissan, 727 S Brand Blvd. ,Glendale, CA 91204
4 Glendale Infiniti, 812 S Brand Blvd. Glendale, CA 91204 Orange Coast Infiniti & Adjacent Airstream Orange County, 15550 Beach Boulevard & 8084 W.
McFadden Avenue, Westminster, Ca
Dempewolf Ford, 2530 US 41 North Henderson, KY 42420
Delta Chevrolet Buick GMC, 125 51 Bypass North, Dysenburg TN Crown Ford, 420-445 Merrick Road & 247 Sunrise Highway, Lynbrook (Long Island), New York Driver Motors (CDJR of Mayfield), 915 Paducah Road, Mayfield, Kentucky Kia of Orange, 210 W. Katella Avenue, Orange, Ca 92867
K & M Dodge and Ram,4100 Plainfield Avenue NE, Grand Rapids, MI 49525 Motor Mile Dealership, 4180 Jupiter NE, Grand Rapids, MI 49525 Gloucester Toyota, 6357 George Washington Memorial Hwy, Gloucester Courthouse, Virginia 23061 Goodwin Bros DCJR, 250 Broad Street, New Castle, IN
Hyundai of Cumming, 750 Peachtree Parkway, Cumming, Georgia Rancho Santa Margarita Honda, 29961 Rancho Santa Margarita Parkway, Ranch Santa Margarita Redlands Ford, 121 West Colton Avenue, Redlands, California Smith Motor Cars (Mercedes Benz, Volvo, Jaguar Land Rover), 5 Dudley Farms Lane, Charleston, WV Win Chevrolet / Hyundai, 2201 E. 223rd Street, Carson, Ca Surprise Hyundai, 12925 N. Auto Show Avenue, Surprise, Arizona Mercedes Benz West Chester, 5897 Muhlhauser Road, West Chester Township, Ohio Mercedes Benz , Cincinnati, 8663, 8727, 8765 Montgomery Road, Cincinnati, Ohio Toyota of McDonough, 144 Georgia Highway 81 West, McDonough, Georgia Marina Del Rey Toyota, 4636 Lincoln Boulevard, Marina Del Rey, California 90292 Thornton Road Chrysler Dodge Jeep RAM, 1251 Thornton Road, Lithia Springs, Georgia Hanford Hyundai, 1990 Glendale Avenue, Hanford, California BMW of Murrieta, 26825 Auto Mall Parkway, Murrieta
Thorton Road Kia, 1301 Thorton Road, Lithia Springs, Georgia Hyundai of Athens, 4160 Atlanta Highway, Athens, Georgia Hardin Hyundai, 1271 S. Auto Center Drive, Anaheim
Acura of Tempe, 7800 South Autoplex Loop, Tempe
AutoNation Hyundai Tempe, 8050 South Autoplex Loop, Tempe Subaru Superstore of Chandler, 1050 South Gilbert Road, Gilbert AutoNation Honda Chandler, 1150 S. Gilbert Road, Gilbert Vista Ford of Oxnard, 1501 Auto Center Drive, Oxnard
Courtesy Toyota Satellite, N. Econlockatchee Trial and E. Colonial Drive, Orlando AutoNation Direct Ft Lauderdale, 1413 North Federal Highway, Frt Lauderdale, Fla Champion Hyundai, 3115 S. Padre Island, Corpus Christi, Texas Brown & Brown Chevy Mesa, 146 & 156 East Main Street, Mesa, AZ Courtesy Pontiac GMC, 605 N. US Highway 17/92, Longwood, Fla Autoway Pontiac GMC North, 9929 US Highway 19, Port Ritchey, Florida Bankston Dodge Grand Prairie, 2615 Interstate 20, Grand Prairie, Tx Dobbs Honda at Covington Pike, Elmore Drive, Memphis, TN Former Dobbs Nissan, 6535 Winshester Road, Memphis, TN
Go Hyundai 104th, 759 West 104th Avenue, Colorado
Maroone Honda Hollywood, 1450 N. State Road 7, Hollywood, FL Mercedes Benz Oxnard, 1511 Auto Center Drive, Oxnard
AutoNation Fiat North Denver, 749 West 104th Street, Northglenn, CO AutoNation Volvo Delray, 2201 N. Federal Highway, Delray, FL AutoNation Fiat South Bay, 14700 Hindry Avenue, Hawthorne, CA AutoNation Chevrolet Gelleria, 4747 LBJ Freeway, Dallas AutoNation Nissan Dallas, 4707 LBJ Freeway, Dallas
Toyota Arlington, 1661 Wet N’ Wild Way, Arlington, Texas Mini Valencia, 24135 Creekside Road, Valencia
AutoNation Volvo South Bay, 3010 Pacific Coast Highway, Torrance Dobbs Honda Mendenhall, 2785 S. Mendenhall Road, Memphis, TN MINI of Santa Monica, 1402 Santa Monica Boulevard, Santa Monica, CA 101 Ford & Hyundai, 200 N. Vermont & 3718 Beverly Bl., Los Angeles AutoNation Nissan Jacksonville, 1726 Cassat Ave., Jacksonville, FL 5 Nissan of Fort Lauderdale, 1050 S. Federal Highway, Fort Lauderdale, FL Hudson Nissan, 2159 Lexington Road, Nicholasville, KY
South Bay Lexus Service & Parts Center, 24777 Crenshaw Boulevard, Torrance, CA Chino Hills Ford, 4480 Chino Hills Parkway, Chino Hills Bakersfield Hyundai, 5300 Wible Road, Bakersfield
Simi Valley DCJ RAM, 2350 1st Street, Simi Valley
Coachella Valley Volkswagen, 79050 Varner Road, Indio
Temecula Buick GMC, 27420 Ynez Road, Temecula
Victorville Mitsubishi, 14644 Valley Center Dr, Victorville New Century BMW, 4245 Lankershim Bl, North Hollywood
New Century MINI, 4338 Lankershim Bl, North Hollywood
Fladeboe Buick GMC of Irvine, 42 Auto Center Drive, Irvine, Ca Fladeboe Pre-Owned, 14 Auto Center Drive, Irvine, Ca
Villa Ford, 2550 N. Tustin Avenue, Orange
Infiniti of Van Nuys, 5455 Van Nuys Bl., Sherman Oaks
Nissan of Van Nuys, 5425 Van Nuys Bl., Sherman Oaks
Proposed “Keyes Audi of Valencia” 23923 Creekside Road, Santa Clarita Culver City Honda, 9055 W. Washington Bl., Culver City
Culver City Toyota, 9077 W. Washington Bl., Culver City Manhattan Beach Toyota, 1500 N. Sepulveda Bl., Manhattan Beach Former Courtesy Pontiac GMC, 605 N. US Highway 17/92, Longwood, Fla Browning Dodge Chrysler Jeep RAM, 1983 Hamner Avenue, Norco Huntington Beach Mitsubishi, 16751 Beach Bl., Huntington Beach Metro Honda / Acrua, 9377 & 9399 Autoplex Drive, Montclair David Maus VW North, 1050 Lee Road, Orlando, FL
David Maus VW South, 5474 S. Orange Blossom Trail, Orlando, FL Del Ray Honda, 3000 S. Federal Highway, Delray Beach, FL Grapevine Ford (Future Texas Toyota of Grapevine), 701 E. State Highway, Texas Grand Pairie Ford, 701 E. Safari, Grand Prairie
Gwent Place Ford, 3230 Satellite Bl, Duluth, Georgia
Gwent Place Nissan, 2555 Pleasant Hill Road, Duluth, Georgia Mall of Georgia Ford, 4525 Nelson Brigden Bl., Burford, GA Metro Auto Auction Dallas, 1836 Midway, Louisville, Texas South County Lexus Used Car Bldg, 28400 Marguerite Parkway, Mission Viejo Texas Nissan of Grapevine, 1401 W. State Highway 114, Grapevine, Texas Texas Toyota of Grapevine, 801 E. State Highway, Grapevine, Texas Toyota of Dallas, 2610 Forest Lane, Dallas, Texas
Toyota of Deerfield, 1441 S. Federal Highway, Deerfield Beach, Florida Trophy Nissan, 5050 N. Gallo way Avenue, Mesquite, Texas Vandergriff Hyundai, 1120 Interstate Highway 20 West, Arlington, Texas Vandergriff Chevrolet, 1200 Interstate Highway 20 West, Arlington, Texas Volvo of Dallas, 6600 State Highway 121, Frisco, Texas
Crest Cadillac and Pre-Owned, 2701 N. Central Expressway, Plano, TX Crest Infiniti and former Isuzu, 2501 N. Central Expressway, Plano, TX Crest Pre-Owned, 2349 N. Central Expressway, Plano, TX
Crown Automotive Toyota, 255 W Pershing Rd, Decatur, Ill Husker Auto Group, 6833 Telluride Drive, Lincoln, Nebraska Joe Myers Auto Mall, Houston, TX
Baker Nissan, 19630 NW 290, Houston, TX
Kenny Kent Chevrolet, 4600 Division, Evansville, Indiana Kenny Kent Toyota/Lexus, Evansville, Indiana
McKinney Buick GMC / Nissan of McKinney, 3800 - 3900 S. Central Expressway, McKinney, TX Miles Chevrolet, 150 W Pershing Rd, Decatur, Illinois
Reliable Chevrolet (TX), 800 N. Central Expressway, Richardson, Tx Reliable Chevrolet (TX) UT Facility, 101 E Arapaho, Richardson, TX Reliable Chevrolet Mercedes Infiniti, 3655 S Campbell, Springfield, MO Reliable Chevrolet, 9901 Coors Blvd, Albequerque, New Mexico 6 Reliable Nissan, 9901 Coors Blvd, Albequerque, New Mexico Reliable Imports & RV, 438 S Ingram Mills Road, Springfield, MO Reliable Lexus/Toyota/BMW, Spingfield, MO
Richardson Chrys,Jeep,Dodge, 1321 N Central Exp Richardson, TX Town East Ford, 18411 LBJ Freeway, Mesquite, TX
Toyota of Richardson, Main Sales Facility, 1221 N. Central Expressway, Richardson, TX Toyota of Richardson, 400 & 404 Monte Blaine Ln, Richardson, TX Van Chevrolet (TX) - Main Facility, U/C, 1700 S I-35E, Carrolton, TX Van Chevrolet Cadillac Subaru, 100 NW Vivion Rd, Kansas City Van Hyundai (TX), 1207 S I-35 E, Carrollton, TX
Vandergriff Acura, 1100 W I-20, Arlington, TX
Vandergriff Honda, 1104 W. I-20 Arlington, TX
Vandergriff Toyota, 1000 W I-20, Arlington, TX
Volvo of Richardson, Richardson, TX
Westway Ford Fleet Sales Facility, 727 W Airport Freeway, Irving, TX Westway Ford Main Facility, 801 W Airport Freeway, Irving, Tx Vandergriff Honda, 1104 W I-20, Arlington, TX
Cerritos Dodge Chrysler Jeep, located at 18803 Studebacker Road, Cerritos Cerritos Acura Mazda, located at 18827 Studebacker Road, Cerritos Valley Hi Honda located at 16710 Valley Park Lane, Victorville Valley hi Nissan 15722 Valley Park Lane, Victorville
Keyes Toyota 2020 Bell Road, Phoenix
Hardin Honda, 1381 S. Auto Center Drive, Anaheim
Hardin Buick GMC of Anaheim, 1380 S. Auto Center Dr, Anaheim Poway Buick GMC, 13811 County Highway S4, Poway
Mercedes Benz Louisville, 4156 Shelbyville Road, Louisville, KY Mini of Louisville, 4170 Shelbyville Road, Louisville, KY Vacant Dealership In Cerritos, 10901 E. 183rd Street, Cerritos Modesto Acura 4325 McHenry Avenue, Modesto
Power Honda Costa Mesa, 2888 Harbor Boulevard, Costa Mesa, CA Volkswagen of Garden Grove, 10800 Trask Avenue, Garden Grove, CA Keyes Mercedes-Benz, 5746 Van Nuys Boulevard, Van Nuys, CA Keyes Toyota & Lexus, 5803 & 5905 Van Nuys Boulevard, Van Nuys, CA 91401 South County Lexus, 28242 and 28302 Marguerite Parkway, Mission Viejo, CA 92692 South County Motor Cars, 28402 Marguerite Parkway, Mission Viejo, CA Vacant Dealership, 19232 Beach Bl., Huntington Beach
Roseville Kia & Mitsubishi, 780 Automall Drive, Roseville, CA Keyes Hyundai, 5319 Van Nuys Boulevard, Van Nuys, Ca 91401 Keyes Nissan, 20539 Ventura Boulevard, Woodland Hills, Ca 91364 Former Autoway Nissan, 13600 Icot Boulevard, Clearwater, FL 33760 Former Autoway Dodge, 19400 US Highway 19 N, Clearwater, FL. 33760 Former Autoway Pontiac Buick GMC South, 19320 US Highway 19 N, Clearwater, FL 33760 Former Autoway Ford - Bradenton, 3400 14th Street West, Bradenton, FL Existing Mercedes Benz Sarasota, 6828 S. Tamiami Trail, Sarasota, FL Maroone Lincoln Mercury of N. Palm Beach, 3626 Northlake Boulevard, Lake Park, FL Lexus of Palm Beach (remote service), 1030 N. Congress Avenue, W. Palm Beach, FL Existing Mercedes Benz of Miami, 444 NW 165th Street, Miami, FL Mercedes Benz Body Shop, 9200 NW 27th Avenue, Miami, FL Dobbs Honda at Covington Pike, Elmore Drive, Memphis, TN Former BMW of Dallas, 2536 Forest Lane, Dallas, Tx
Former Desert Chrysler Jeep Dodge, 3115 Fremont Street, Las Vegas, NV Pacific Ford, 3600 Cherry Avenue, Long Beach, CA 90807
Toyota of Carson City, located at 3659 South Carson Street, Carson City, NV Hoehn Audi, located at 5215 Car Country Drive, Carlsbad, Ca.
BMW of Long Beach, located at 2998 Cherry Avenue, Signal Hill, Ca Proposed North County BMW, located at 1715 Hacienda Drive, Vista, Ca 7 Proposed Circle Audi of Long Beach, located at 1919 Lakewood Boulevard, Long Beach, CA.S & J Chevrolet, located at 18605 Studebaker Road, Cerritos, CA.
Capistrano Chrysler/Jeep/Dodge, located at 33301 Camino Capistrano, San Juan Capistrano, CA Capistrano Nissan, located at 33375 Camino Capistrano, San Juan Capistrano, CA Nissan of Newport News, located at 12925 Jefferson Ave., Newport News, Virginia Boardwalk Auto Center, located at 1 Bair Island Rd., Redwood City, CA Boardwalk Pre-Owned, 535 E. Bayshore Blvd., Redwood City, CA Power Volvo Cerritos, located at 18303 Studebaker Rd., Cerritos, CA Team Toyota, located at 1000 Blairs Ridge Rd., Lithia Springs, Georgia Team Ford/Lincoln/Mercury, located at 1575 Mansell Rd., Alpharetta, Georgia Cerritos Nissan, located at 18707 Studebaker Rd., Cerritos, CA Hayward Nissan, located at 24644 Mission Blvd., Hayward, CA Power Nissan of Torrance, located at 20710 Hawthorne Blvd., Torrance, CA Toyota of Carlsbad Sales, Service Collision Center, located at 6020 Avenida Encinitas, Carlsbad, CA Power Chevrolet, Pontiac, Buick, GMC, located at 14610 Hindry Ave., Hawthorne, CA Las Vegas Acura, located at 7000 W. Sahara Ave., Las Vegas, Nevada BMW of Mountain View, located at 150 E. El Camino Real, Mountain View, CA Shelly BMW, located at 6750 Manchester Blvd., Buena Park, CA Burt Subaru, located at 5300 S. Broadway, Englewood, Colorado Southwest Chrysler/Jeep, located at 2075 Hamner Ave., Norco, CA Mike Shad Chrysler/Jeep, located at 1736 Cassat Ave., Jacksonville, Florida Irvine Mazda/GMC, located at 11 Auto Center Dr., Irvine, CA Saturn of West 78, located at 2205 Vista Way, Oceanside, CA Saturn of National City, located at 2202 National City Blvd., National City, CA Mazda of Naperville, located at 2363 Aurora Ave., Naperville, Illinois Zero 1 Motors, located at 5300 Katella Ave., Los Alamitos, CA O’Brien Auto Park of Urbana (Volkswagen, Toyota/Scion, Chrysler, Dodge, Mitsubishi, Kia, Mazda, Subaru, Suzuki and Isuzu) located at 1111 O’Brien Dr., Urbana, Illinois Corley Lincoln/Mercury/Volvo, located at 9000 N. Pan American Fwy. NE, Albuquerque, New Mexico Hartzheim Dodge, located at 1050 West Capitol Expressway, San Jose, CA Smythe Volvo, located at 740 West Capitol Expressway, San Jose, CA Toyota of Augusta, located at 3069 Washington Rd., Augusta, Georgia Buena Park Nissan, located at 6501 Auto Center Dr., Buena Park, CA Colonial Honda, located at 144 S. Glendale Ave., Glendale, CA Action Nissan, located at 307 Thompson Ln., Nashville, Tennessee Ford of Rancho Santa Margarita, located at 30031 Santa Margarita Pkwy., Rancho Santa Margarita, CA Weir Canyon Chevrolet, located at 1001 Weir Canyon Rd., Anaheim, CA Proposed Corley Lincoln/Mercury/Volvo, located at 9000 N. Pan American Fwy., Albuquerque, NM AutoMax-Auto Superstore, 5220 E. Main St. and adjacent 0.79-acre parcel, Farmington, New Mexico Union Mitsubishi, located at 998 S. Western Ave., Los Angeles, CA Union Dodge, located at 9898 Trask Ave., Garden Grove, CA Santa Margarita Ford, located at 30031 Santa Margarita Pkwy., Rancho Santa Margarita, CA Vista Chevrolet, located at 5501 Drexel Rd., Las Vegas, Nevada Valley Toyota, located at 1835 Glendale Ave., Hanford, CA Power Volkswagen of Corona, located at 2603 Wardlow Rd., Corona, CA Desert BMW of Las Vegas, located at 2333 S. Decatur Blvd., Las Vegas, Nevada Desert Nissan of Las Vegas, located at 5050 W. Sahara Ave., Las Vegas, Nevada Weir Canyon Honda and Weir Canyon Acura, located at 8323 & 8375 E. La Palma Ave., Anaheim Planet Acura, located at 7550 Firestone Blvd., Downey, CA Power Nissan of Irvine, located at 32 Auto Center Dr., Irvine, CA Modesto Toyota/Scion, located at 4513 McHenry Ave., Modesto, CA Valley Lexus, located at 4320 McHenry Ave., Modesto, CA Modesto Mazda/Suzuki, located at 4401 McHenry Ave., Modesto, CA Lompoc Honda, located at 1224 N. H St., Lompoc, CA
Market ground rent estimate for Smythe Volvo, located at 4650 Stevens Creek Blvd., San Jose Market ground rent estimate for Power Acura of South Bay, located at 25341 Crenshaw Blvd., Torrance Nissan of Mission Hills, located at 11000 Sepulveda Blvd., Mission Hills, CA 8 Folsom Lake Ford/Kia, located at 12755 Folsom Bl., Folsom Lake, CA Nissan of Garden Grove, located at 9222 Trask Ave., Garden Grove, CA Toyota of Garden Grove, located at 9444 and 9670 Trask Ave., Garden Grove, CA Hamer Toyota, located at 11041 and 11046 Sepulveda Blvd., Mission Hills, CA Superior Nissan of Mission Hills, located at 11000 Sepulveda Blvd., Mission Hills, CA Surf City Mazda, located at 16800 Beach Blvd., Huntington Beach, CA Porsche of Long Beach, located at 1850 Outer Traffic Cir., Long Beach, CA Circle Imports (VW & Audi), located 1919 N. Lakewood Bl., Long Beach, CA Lujack Lexus of the Quad Cities, located at 101 W. Kimberly Rd., Davenport, Iowa Lujack Honda/Hyundai, located at 3707 N. Harrison St., Davenport, Iowa Marina Honda, located at 5850 Centinela Ave., Los Angeles, CA Marina Ford, located at 5880 Centinela Ave., Los Angeles, CA Action Nissan, located at 307 Thompson Lane, Nashville, Tennessee Priority Hyundai, located at 12872 Jefferson Avenue, Newport News, Virginia Mercedes-Benz of Escondido, located 1101 W. Ninth Ave., Escondido, CA Toyota of Long Beach, located at 4401 E. PCH, Long Beach, CA Long Beach Mitsubishi, located at 4400 E. Los Coyotes Diagonal, Long Beach, CA Coast Cadillac, located at 3399 E. Willow Street, Long Beach, CA Former Anaheim Hyundai, located at 1271 S. Auto Center Dr., Anaheim, CA Long Beach Lincoln/Mercury/Mazda, located at 3500 Cherry Ave., Long Beach, CA Avondale Toyota/Scion, located at 10005 W. Papago Fwy., Avondale, Arizona El Cajon Ford, located at 1595 E. Main St., El Cajon, CA Roseville Mazda Subaru, Autowest BMW & Roseville Buick/GMC, located at 100, 120 and 150 Automall Dr., Roseville, CA
Vacaville Harley-Davidson, located at 100 Auto Mall Dr., Vacaville, CA Moore Chrysler Jeep Dodge, located at 955 W. Ventura St., Fillmore, CA Mercedes Benz of Ann Arbor, located at 570 Auto Mall Dr., Ann Arbor, Michigan Hoehn Porsche, located at 6800 Avenida Encinas, Carlsbad, CA Hoehn Honda, located at 5454 Paseo Del Norte, Carlsbad, CA Norm Reeves Acura of Mission Viejo, located at 28802 Marguerite Pkwy., Mission Viejo, CA Hoehn Mercedes-Benz, located at 5475 Car Country Dr., Carlsbad, CA AutoHaus West, located at 45 Oldfield Rd., Irvine, CA
CA Dodge/Chrysler/Jeep, located at 415 W. Central Ave., Lompoc, CA Hall Nissan of Virginia Beach, located at 141 Spruce St., Virginia Beach, Virginia Hall Honda of Virginia Beach, located at 3516 Virginia Beach Blvd., Virginia Beach, Virginia Hall Chrysler/Jeep, located at 3100/3148/3152 Virginia Beach Blvd., Virginia Beach, Virginia Hall Pontiac/GMC Sales, located at 3200/3222/Virginia Beach Blvd., Virginia Beach, Virginia Hall Hummer, located at 3252 Virginia Beach Blvd., Virginia Beach, Virginia Hall Nissan-Virginia Beach, located at 3757/3769 Bonney Rd., Virginia Beach, Virginia Hall Body & Paint Shop, located at 141 Spruce St., Virginia Beach, Virginia Hall Mazda of Virginia Beach, located at 4372 Holland Rd., Virginia Beach, Virginia Hall Acura and Mitsubishi of Virginia Beach, 3496/3500 Holland Rd., Virginia Beach, Virginia Hall Chevrolet/Hyundai of Chesapeake, 3412/3416 Western Branch Blvd., Chesapeake, Virginia Hall Nissan of Chesapeake, located at 3417 Western Branch Blvd., Chesapeake, Virginia Hall Ford of Newport News, located at 12896 Jefferson Ave., Newport News, Virginia Hall Acura of Newport News, located at 12499/12501 Jefferson Ave., Newport News, Virginia Hall Nissan of Newport News, located at 12925 Jefferson Ave., Newport News, Virginia Hall Auto Mall of Newport News, located at 13151 Jefferson Ave., Newport News, Virginia Hall Stateline Honda, located at 134 Caratoke Hwy., Moyock, North Carolina Toyota/Scion of Whittier, located at 14561/14597 Whittier Blvd., Whittier, CA Power Dodge of Valencia, located at 23901 Creekside Rd., Santa Clarita, CA Power Chrysler Jeep of Valencia, located at 23923 Creekside Rd., Santa Clarita, CA Moreno Valley Hyundai, located at 27750 Eucalyptus Ave., Moreno Valley, CA Moreno Valley Toyota, located at 27990 Eucalyptus Ave., Moreno Valley, CA Moss Bros. Dodge, located at 1100 S. E St., San Bernardino, CA Moss Bros. Ford, located at 1900 W. Valley Blvd., Colton, CA Town North Nissan, located at 9150 Research Blvd., Austin, Texas 9 South Bay Lotus, located at 2775 Pacific Coast Hwy., Hermosa Beach, CA Saturn of Tucson, located at 6020 E. Speedway Blvd., Tucson, Arizona Saturn of Fairfield, located at 4850 Auto Plaza Ct., Fairfield, CA Gwent Place Chevrolet and Honda, located at 3325 & 3277 Satellite Blvd., Duluth, Georgia Superior North Lexus, Volvo and Collision Center, located at 9300, 9350 & 9400 NW Prairie View Rd., Kansas City, Missouri
Hummer of Kansas City, located at 7925-7951 Shawnee Mission Pkwy., Merriam, Kansas Saturn of Riverside, located at 8101 Auto Dr., Riverside, CA Infiniti of Oakland, located at 7201 Oakport St., Oakland, CA A portion of the Cary Auto Mall known as Hendrick Cadillac, Hummer and Collision Center of Cary, located at 101, 115 & 121 Crash Ln., Cary, North Carolina A portion of the Cary Auto Mall known as Hendrick Chevrolet, Dodge and Saturn, located at 100 Auto Mall Dr., 81 & 91 Mackenan Dr., Cary, North Carolina
A portion of the Cary Auto Mall known as Hendrick Pontiac, Buick, GMC & Pre-Owned of Cary, located at 80 & 90 Mackenan Dr., Cary, North Carolina
Honda Cars of McKinney, located at 601 S. Central Expressway, McKinney, Texas Hendrick Lexus, located at 6025 E. Independence Blvd., Charlotte, North Carolina Toyota & Honda of Concord, located at 7650 & 7670 Speedway Blvd., Concord, North Carolina Valley-Hi Toyota/Scion/Honda, located at 14612 Valley Center Dr., Victorville, CA Mercedes-Benz of San Francisco, located at 950 Van Ness Ave., San Francisco, CA Lake Norman Chrysler/Jeep, located at 20700 Torrence Chapel Rd., Cornelius, North Carolina Puente Hills Ford, located at 17340 Gale Ave., within the Puente Hills Auto Mall, City of Industry, CA Scottsdale 101 Auto Collection, which includes Acura, Audi, BMW/Mini, Jaguar, Aston Martin, Land Rover, Lincoln/Mercury, Porsche, Volkswagen and Volvo, Scottsdale, Arizona Land Rover of South Bay, located at 900 N. Pacific Coast Hwy., Redondo Beach, CA Security Chevrolet, located at 1100 E. Vista Way, Vista, CA Burt Ford on Arapahoe, located at 10039 E. Arapahoe Rd., Centennial, Colorado Burt Subaru, located at 5300 S. Broadway, Englewood, Colorado Burt Ford in Parker, located at 19185 E. Lincoln Ave., Parker, Colorado Proposed Burt Chevrolet of Parker, located at 19185 E. Lincoln Ave., Parker, Colorado Burt Mazda, located at 10301 E. Arapahoe Rd., Centennial, Colorado Weseloh Chevrolet/Hummer, located at 33633 Camino Capistrano, San Juan Capistrano, CA San Juan Capistrano Honda, located at 33555 Camino Capistrano, San Juan Capistrano, CA Proposed Turnersville Auto Mall, which will comprise seven free-standing complete automotive dealership buildings designed for Acura, BMW, Chevrolet, Honda, Hyundai/Maserati, Nissan and Toyota, all located on a 62.174-acre parcel, located at 3400-3900 Black Horse Pike, Turnersville, Gloucester County, New Jersey
Proposed Inskip Auto Mall, which includes Aston Martin, Audi, Bentley, Maserati, Porsche, BMW, Infiniti, Lexus, Mercedes-Benz and Volvo, located at the northwest quadrant of the intersection of Bald Hill Road and Route 117, Warwick, Kent County, Rhode Island MotorWorld, located at 150 Motorworld Parkway, Wilkes-Barre, Pennsylvania Capistrano Ford, located at 33949 Camino Capistrano, San Juan Capistrano, CA Volvo of San Diego, planned for a major expansion and renovation, located at 5316 & 5350 Kearny Mesa Rd., San Diego, CA
Allison BMW, located at 150 E. El Camino Real, Mountain View, CA Mazda/GMC of Irvine, located at 11 Auto Center Dr., Irvine, CA Champion Chevrolet/Mazda of La Porte, located at 112 S. State Highway 146, La Porte, Texas Power Nissan of El Monte, located at 3428 N. Peck Rd., El Monte, CA Proposed Foothill Ranch GMC/Pontiac/Buick, located at 26901 Auto Center Drive, Foothill Ranch, CA Proposed New Century BMW, located at 1147 Main St., Alhambra, CA Proposed Fairfield Hyundai, located at 2615 Auto Mall Pkwy., Fairfield, CA Diamond Bar Honda, located at 525 Grand Ave., Diamond Bar, CA Bankston Nissan, located at 13130 Preston Rd., Dallas, Texas Todey Lincoln Mercury & Mazda, proposed for a major renovation and expansion, located at 1601 E.
Ventura Blvd., Oxnard, CA
Shamrock Ford, located at 4600 Dublin Blvd., Dublin, CA Family Porsche/VW/Hyundai, located at 5300 Wible Rd., Bakersfield, CA 10 Team Dodge of Stone Mountain, located at 4550 Greer Circle, Stone Mountain, Georgia Bankston Dodge Irving, located at 1251 E. Airport Freeway, Irvine, Texas Taft Family Motors, which includes Chevrolet, Pontiac and Buick franchises, located in Taft, CA Huntington Beach Chrysler/Jeep/Hummer, at 3470 16701 Beach Blvd., Huntington Beach Calabasas Motorcars Mercedes-Benz, located at 24181-24241 Calabasas Rd., Calabasas, CA Wondries Nissan, located at 726 E. Main St., Alhambra, CA Wondries Ford, located at 400 S. Atlantic Blvd., Alhambra, CA Wondries Toyota, located at 1543 W. Main St., Alhambra, CA Chapman Las Vegas Dodge, located at 3470 Boulder Hwy., Las Vegas, Nevada Santa Paula Family Ford, located at 126 S. Hallock Dr., Santa Paula, CA Saturn of National City, located at 2202 National City Blvd., National City, CA North County Jeep/GMC/Kia, located at 1501 Auto Park Way South, Escondido, CA North County Ford, located at 450 West Vista Way, Vista, CA Superior Nissan, located at 17320 Gale Ave., City of Industry, CA Fresno Acura, located at 7230 N. Palm Ave., Fresno, CA
Mercedes-Benz of Long Beach, located at 2300 E. Spring St., Signal Hill, CA Norm Reeves Honda Superstore, located at 18500 Studebaker Rd., Cerritos, CA Tustin Mazda, located at 5 Auto Center Dr., Tustin, CA
Power Ford, located at 2 Auto Center Dr., Tustin, CA
Infiniti of Tustin, located at 33 Auto Center Dr., Tustin, CA Tustin Mitsubishi, located at 23 Auto Center Dr., Tustin, CA Power Chevrolet, located at 21 Auto Center Dr., Irvine, CA Scott Pontiac/GMC, located at 11710 Valley Blvd., El Monte, CA Gavilan Honda, located at 6700 Chestnut St., Gilroy, CA Honda North, located at 395 W. Herndon Ave., Clovis, CA Irvine BMW & Mini, located at 9881 Research Dr., Irvine, CA Shelly BMW, located at 6750 Manchester Blvd., Buena Park, CA Ken Grody Lincoln/Mercury, located at 6692 Manchester Blvd., Buena Park, CA Proposed South Bay BMW, located at 18800 Hawthorne Blvd., Torrance, CA Proposed McKenna Audi of Norwalk, located at 10850 Firestone Blvd., Norwalk, CA Proposed McKenna VW of Norwalk, located at 10915 Firestone Blvd., Norwalk, CA Proposed Volkswagen of Puente Hills, located at 17110 Gale Ave., Industry, CA Cutter Automotive Galleries, featuring Mercedes-Benz, Porsche, BMW and Audi franchises, located at 402 S. Hope Ave., Santa Barbara, CA
Cutter Motors, featuring Infiniti, Jaguar and Land Rover franchises, located at 401 S. Hope Ave., Santa Barbara, CA
Proposed McKenna Porsche of Norwalk, located at 10830 Firestone Blvd., Norwalk, CA McKenna Volkswagen of Huntington Beach, located at 18711 Beach Blvd., Huntington Beach, CA Nissan/Daewoo of Fairfield, located at 2545 Auto Mall Pkwy., Fairfield, CA Fairfield Toyota, located at 2575 Auto Mall Pkwy., Fairfield, CA Fairfield Mitsubishi, located at 2701 Auto Mall Pkwy., Fairfield, CA Infiniti/Volvo of Fairfield, located at 2855 Auto Mall Pkwy., Fairfield, CA Metro Infiniti of Monrovia, located at 821 E. Central Ave., Monrovia, CA Santa Ana Chrysler/Jeep, located at 1405 Auto Mall Dr., Santa Ana, CA Pacific Ford, located at 3600 Cherry Ave., Long Beach, CA Car Max Chrysler, located at 1000-1030 W. Manchester Bl., Inglewood, CA Ontario Chrysler/Jeep, located at 1202 Auto Center Dr., Ontario, CA South Bay BMW, located at 2901 Pacific Coast Highway, Hermosa Beach, CA Infiniti of Riverside, located at 3040 Adams St., Riverside, CA Nissan of Sante Fe Springs, located at 12624 Rosecrans Ave., Santa Fe Springs, CA Proposed Toyota of Escondido, located at 231 Lincoln Parkway, Escondido, CA Todey Chevrolet, located at 1345 N. Oxnard Blvd., Oxnard, CA Pacific Porsche, located at 2900 Pacific Coast Highway, Torrance, CA Planet Hyundai, located at 7150 W. Sahara Ave., Las Vegas, Nevada McKenna Pomona Dodge, located at 25 Rio Rancho Rd., Pomona, CA McKenna Pomona Chrysler/Jeep, located at 35 Rio Rancho Rd., Pomona, CA Costa Mesa Lincoln/Mercury, located at 2626 Harbor Blvd., Costa Mesa, CA 11 Bell Honda, located at 701 W. Bell Rd., Phoenix, Arizona Proposed Puente Hills Toyota, located at 17070 Gale Ave., City of Industry, CA Proposed Puente Hills Volkswagen, located at 17110 Gale Ave., City of Industry, CA Proposed dealership to be known as Falconi Acura, Las Vegas, Nevada Sierra Chevrolet/Oldsmobile, located at 1450 S. Shamrock Ave., Monrovia, CA Sierra Honda, located at 1450 S. Shamrock Ave., Monrovia, CA Sierra Pontiac/Buick, located at 731-735 E. Central Ave., Monrovia, CA Sierra Isuzu, located at 721 E. Central Ave., Monrovia, CA Saturn of Monrovia, located at 1305 S. Mountain Ave., Monrovia, CA Sierra Acura/Isuzu, located at 1700 W. Main St., Alhambra, CA Saturn of Alhambra, located at 1800 W. Main St., Alhambra, CA Toyota of Escondido, located at 999 N. Broadway, Escondido, CA Puente Hills Pontiac/GMC/Buick, located at 17280 Gale Ave., City of Industry, CA Jack Maxton Chevrolet, located at 700 E. Dublin-Granville Rd., Worthington, Ohio Volvo of Inland Empire, located at 785 Showcase Drive S., San Bernardino, CA Auto Stiegler Mercedes-Benz, situated on a 42,457 sf site (27,834 sf of which is leased), located at 16721 Ventura Blvd., Encino, CA
Nissan of Temecula, located at 41895 Motor Car Parkway, Temecula, CA An existing 14,060 sf existing automobile dealership plus a proposed parking structure located at 5746 Van Nuys Blvd., Los Angeles (Van Nuys), CA
Big Valley Dodge/Subaru, located at 6110 Van Nuys Blvd., Los Angeles (Van Nuys), CA Commonwealth VW/Audi, located at 1450 Auto Mall Dr., Santa Ana, CA Desert Honda, located at 1700 E. Sahara Ave., Las Vegas, Nevada Costa Mesa Toyota, situated on a 4.97-acre site which is ground leased, located at 1966 & 1970 Harbor Blvd., Costa Mesa, CA
South Bay Toyota, located at 18240 & 18416 S. Western Ave., Gardena, CA Tustin Lexus, located at 45 Auto Center Dr., Tustin, CA Valencia Nissan, located at 24111 Creekside Rd., Santa Clarita, CA Mazda, Hyundai and Mitsubishi, automotive dealership known as Bell Road Auto Mall, located at 999 W.
Bell Rd., Phoenix, Arizona
Pacific Porsche, located at 2900 Pacific Coast Highway, Torrance, CA Escondido Motors (Mercedes-Benz), located at 1101 W. Ninth Ave., Escondido, CA Honda of Santa Ana, located at 1505 Auto Mall Dr., Santa Ana, CA Falconi Acura, located at 5550 W. Sahara Ave., plus an adjacent 1.11-acre parcel of land located at 2333 Lindell Rd., Las Vegas, Nevada
North County Toyota, situated on a 5.90-acre site which is ground leased, located at 1331 N. Euclid St., Anaheim, CA
Lexus of Westminster, located at 13590 & 13600 Beach Blvd. and Honda World, located at 13610 Beach Blvd., Westminster, CA
Corona Nissan, located at 2575 Wardlow Rd., Corona, CA
Lexus of Valencia, located in Santa Clarita, CA
Saturn of Loma Linda and Spreen Honda, located within the Loma Linda Auto Center, San Bernardino Puente Hills Nissan/Infiniti, located within the Puente Hills Auto Mall, City of Industry, CA Dealership portfolio including New Century Ford, Toyota of North Hollywood, Toyota Certified Sales/Body Shop and Midway Ford, County of Los Angeles, CA As such, Steven P. Sullivan is competent to appraise the subject property. Please see the qualifications section of this report for additional information. 12 TYPE OF APPRAISAL REPORT
This report is a Restricted Use Appraisal Report in accordance with Standards Rule 2-2© of the Uniform Standards of Professional Appraisal Practice (USPAP). As such, it presents only summary discussions of the data, reasoning, analyses that were used in the appraisal process to develop the appraiser’s opinion of value. Supporting documentation concerning the data, reasoning, and analyses has been retained in the appraiser’s work files. The depth of discussion contained in this report was limited based upon the clients specific verbal and written instructions.
STATEMENT OF OWNERSHIP AND PROPERTY HISTORY
In summary, according to Chicago Title’s on-line data service, title to the subject property is vested as follows:
City of Fontana
To the best of our knowledge, the subject property has not transferred ownership during the past three years.
IDENTIFICATION OF THE PROPERTY
The subject property comprises a dedicated roadway easement which is scheduled to be abandoned by the city of Fontana. No address has been assigned to the parcel. The property is further identified within a parcel map attached as:
CLIENT AND INTENDED USERS
The client and intended user of this report is Ms. Penny L. Reeves, the law firm Manning Leaver Bruder & Berberich, LLP and Ormer Auto Group, its subsidiaries and/or affiliates, and is based, in part, upon documents, writings, and other information provided by the client. The depth of discussion contained herein is specific to the client’s needs and for the stated use. Use of this report by anyone other than the stated intended user and for any other use than the stated intended use, is 13 prohibited. The appraiser is unaware of any other users as specified in the engagement of this assignment.
PURPOSE OF THE APPRAISAL
The purpose of this appraisal report is to set forth the investigations and analyses leading to our opinion of the as is fee simple market value of the subject property.
FUNCTION / USE OF REPORT
For use by the Ms. Penny L. Reeves, the law firm Manning Leaver Bruder & Berberich, LLP and Ormer Auto Group for internal decision making purposes. It may not be used in connection with a federally related transaction per FIRREA.
DEFINITION OF MARKET VALUE
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.1 1 Office of the Comptroller of the Currency under 12 CFR, Part 34, Subpart C-Appraisals, 34.42 Definitions (g). 14 DEFINITION OF MARKET VALUE AS IS
Market value as is means the value of specific ownership rights to an identified parcel of real estate as of the effective date of the appraisal; relates to what physically exists and is legally permissible and excludes all assumptions concerning hypothetical market conditions or possible rezoning.2
PROPERTY RIGHTS / INTEREST APPRAISED
The existing vacant parcel is not encumbered by lease. The property rights appraised are those of the fee simple estate.
SCOPE OF WORK
The scope of this assignment required investigation of sufficient data relative to the subject property to derive an opinion of value. The investigation undertaken in the preparation of this appraisal report included, but was not limited to, the following: The subject property was inspected to determine the locational and physical characteristics. An investigation was made of the surrounding properties to determine conformity and influences. An investigation was made at the appropriate City/County offices to determine the subject property zoning, development standards, approvals, permits, etc.
Site development plans, building plans and specifications were reviewed to determine size and quality of the existing improvements. A survey was conducted of surrounding competitive properties to obtain land sell data. The resulting data was then analyzed, conclusions were made and, utilizing applicable appraisal techniques, an opinion of market value was formed.
This report is a Restricted Use Appraisal Report in accordance with Standards Rule 2-2© of the Uniform Standards of Professional Appraisal Practice (USPAP). As such, it presents only summary discussions of the data, reasoning, analyses that were used in the appraisal process to develop the appraiser’s opinion of value. Supporting documentation concerning the data, reasoning, and analyses has been retained in the appraiser’s work files. The depth of discussion contained in this report was limited based upon the clients specific verbal and written instructions.
EFFECTIVE DATE OF VALUE
The date of value is February 25, 2022, which corresponds to the last date of inspection; all references to property use and description relate to the date of value. 2 The Dictionary of Real Estate Appraisal, 6th Edition, page 306 (2015 by the Appraisal Institute). 15 DATE OF REPORT
This report is dated February 28, 2022, which generally corresponds to the completion of the investigations, analysis of relevant data and the completion of this report document.
DESCRIPTION OF SITE
Physical Location: The subject property is located at the southwest corner of S. Highland Avenue and Oleander Avenue, in the city of Fontana, California. A satellite photo utilizing Google Pro is located below.
Fontana was incorporated in 1952. The city is 36 square miles in size and has a sphere of influence of approximately 56 square miles. As a result of the construction of numerous housing tracts in the southern and northern area of the city, by 2010 Fontana’s population more than doubled from about 20 years prior.
16 Affordable housing is one of the main sources of Fontana’s overall growth. Because of the high cost of new homes in Los Angeles and Orange County, people began to look elsewhere for their new home purchases. This created a strong demand in the community and Fontana began planning for this boom in 1981. Fontana has eight Specific Planned communities. Each creates a separate environment of parks, recreational facilities, shopping centers, schools, public services and homes. Ten additional Specific Planned residential communities are under development in the North Fontana area.
Altogether, these residential specific plans total over 8,200 acres with over 25,000 residential units.
Four major freeways serve the city. The San Bernardino (10) and Foothill (210) freeways bisect the city in an east-west direction, while the Pomona (60) freeway is near the southern border and the Ontario (15) freeway is at the western boundary. In addition, the (215) freeway is approximately seven miles to the east.
17 Physical Address: Not available
Legal Description:
Assessor Parcel Number: Not available
Parcel Size: 1,587 sf per due diligence materials.
Topography: The site is essentially level.
Easements: Based upon inspection of the subject there does not appear to be any easements that would negatively impact the subject property.
Access/Off-Site
Improvements: The subject property has frontage along Oleander Avenue and S.
Highland Avenue. Oleander Avenue is a feeder street with one lane of traffic in each direction. S. Highland Avenue is a main thoroughfare with two lanes of traffic in each direction, plus turn lanes. The subject has frontage along the westerly line of the frontage road which experiences an average daily traffic county of 38,195 vehicle per day, as of 2012. The frontage road contains two traffic lanes traveling in a north-south direction and is fully improved, publically dedicated and maintained right-of-ways.
Zone Use Designation: The site is zoned C2, General Commercial. A variety of commercial uses are permitted including retail and wholesale activities, automobile related sales and services, offices and businesses providing administrative and professional services, medical offices and clinics.
Utility Availability: All the usual and necessary public utilities are available to the subject property and serviced by the normal agencies.
Flood Zone: Flood Zone X, an area determined to be outside the 100- and 500-year floodplains; per Map No. 060274/06071C/7915H dated 8/28/2008. 18 Environmental
Observations: The property appears to have no significant archeological, cultural, historical, natural, recreational or scientific value. The property is not affected by the Wetlands Act nor were any endangered species or habitats noted during the inspection. There appear to be no hazardous waste or toxic materials affecting the subject property and to the best of our knowledge, the subject property is not on any Environmental Protection Agency, State, County or Superfund List. It is possible that a tenant has stored some type of hazardous or toxic material on the site or within the building; however, this appraisal is being made under the assumption that no such materials exist. We are not experts in detecting or identifying hazardous substances or material and an expert in this field should be obtained if a more definitive study is desired.
Highest & Best Use: It is our opinion that the highest and best use of the subject site “As if Vacant” is to hold the land for a retail development in conjunction with adjacent land. The subject parcel is too small and has no value as an independent stand-alone parcel.
VALUATION
Land Value: Across-the-Fence Approach:
This method determines market value based on the prices of adjoining land. Many appraisers conclude that the across-the-fence method best accounts for local market conditions by using readily available information to extrapolate value. Across-the-fence methodology (ATF) is an appraisal tool frequently used in valuation assignments where the subject is part of railroad property or a roadway corridor. Appraising excess roadway land is challenging and, over the last 40 years, much has been written about the process. The modern dialogue on the appropriateness of using this methodology dates back to the late 1970s when the Appraisal Journal published an article on the “Valuation of Transportation/Communications Corridors.”
19 After making all applicable adjustments, the adjusted values of the comparables range from about $17.76 to $20.59 per square foot, with average and median values of about $19.52 and $19.69 per square foot, respectively. Given the preceding, a value of $19.50 per square foot appears reasonable, as summarized below, as of February 25, 2022, is as following:
Land Valuation
1,587 sf $19.50 psf $30,947
Indicated Fee Simple Value Rounded $31,000
20 ADDENDA
STANDARD DEFINITIONS
The definitions included in this Addenda have been extracted, solely or in combination, from definitions and descriptions printed in:
< The Uniform Standards of Professional Appraisal Practice 2008 Edition (USPAP); < The Dictionary of Real Estate Appraisal, 6th Edition, Appraisal Institute, Chicago, Illinois, 2002 (Dictionary); < The Appraisal of Real Estate, Twelfth Edition, Appraisal Institute, Chicago, Illinois, 2001 (Twelfth Edition); and/or
< Marshall Valuation Service, Marshall & Swift, L. P., Los Angeles, California, 2009 (MVS).
ACCRUED DEPRECIATION
The difference between the reproduction or replacement cost of the improvements on the effective date of the appraisal and the market value of the improvements on the same date. (Dictionary)
APPRAISAL
(noun) The act or process of developing an opinion of value; an opinion of value. (adjective) Of or pertaining to appraising and related functions such as appraisal practice or appraisal services. Comment: An appraisal must be numerically expressed as a specific amount, as a range of numbers, or as a relationship (e.g., not more than, not less than) to a previous value opinion or numerical benchmark (e.g., assessed value, collateral value). (USPAP)
DEFERRED MAINTENANCE
Curable, physical deterioration that should be corrected immediately, although work has not commenced; denotes the need for immediate expenditures, but does not necessarily suggest inadequate maintenance in the past. (Dictionary)
EFFECTIVE DATE OF THE APPRAISAL
The date at which the analyses, opinions, and advice in an appraisal, review, or consulting service apply, which may or may not be the date of inspection; the date of the market conditions that provide the context for the value opinion.
Current appraisals occur when the effective date of the appraisal is contemporaneous with the date of the report.
Prospective value opinions (effective date of the appraisal subsequent to the date of the report) are intended to reflect the current expectations and perceptions along with available factual data. Retrospective value opinions are likely to apply as of a specific historic date; the opinions are intended to reflect the expectations and perceptions of market participants at the specified date, along with available factual data. Data subsequent to the effective date may be considered in estimating a retrospective value as a confirmation of trends. (Dictionary and USPAP)
ENTREPRENEURIAL PROFIT
A market-derived figure that represents the amount an entrepreneur receives for his or her contribution to a project and risk; the difference between the total cost of a property (cost of development) and its market value (property value after completion), which represents the entrepreneur’s compensation for the risk and expertise associated with development. (Dictionary)
ENTREPRENEURIAL INCENTIVE
The term “entrepreneurial incentive” has the same definition as profit, but the perspective of the use of the word “incentive” is forward-looking (expected reward), whereas the use of the word “profit” indicates a retrospective perspective of a quantifiable amount earned. Unless otherwise noted, as used in this report, the terms are synonymous.
The definition is a market-derived figure that represents the amount an entrepreneur expects to receive for his or her contribution to a project and risk. (Dictionary)
EXPOSURE TIME
The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based on an analysis of past events assuming a competitive and open market. Exposure time is always presumed to occur prior to the effective date of the appraisal. The overall concept of reasonable exposure encompasses not only adequate, sufficient and reasonable time but also adequate, sufficient and reasonable effort. Exposure time differs from the marketing period in that exposure time is assumed to precede the effective date of the appraisal. (USPAP and Dictionary)
FEE SIMPLE ESTATE
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. (Dictionary)
GROSS BUILDING AREA (GBA)
The total floor area of a building, including below-grade space but excluding unenclosed areas; measured from the exterior of the walls. (Dictionary)
GROSS LEASABLE AREA (GLA)
The total floor area designed for the occupancy and exclusive use of tenants, including basements and mezzanines, and measured from the center of partitioning to outside wall surfaces; the standard measure for shopping centers. (Dictionary)
HIGHEST AND BEST USE
The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability. (Dictionary)
LEASED FEE ESTATE
An ownership interest held by a landlord with the rights of use and occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the leased fee are specified by contract terms contained within the lease. (Dictionary)
LEASEHOLD ESTATE
The interest held by the lessee (the tenant or renter) through a lease conveying the rights of use and occupancy for a stated term under certain conditions. (Dictionary)
MARKET VALUE
The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently 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:
• buyer and seller are typically motivated;
• both parties are well informed or well advised, and acting in what they consider their best interests; • a reasonable time is allowed for exposure in the open market; • payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and
• 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. (USPAP, according to the Federal Register, CFR 34.42 (g))
MARKETING PERIOD
A reasonable marketing period is the period of time it might take to sell a property interest in real estate at or near the concluded market value during the period immediately following the effective date of the appraisal. A marketing period is a function of price, time, use, and anticipated market conditions. (Dictionary)
RENTABLE AREA (NRA)
The (net) rentable area is the amount of space on which rent is based; it is calculated according to local practice. (Dictionary)
REPLACEMENT COST
The estimated cost to construct, at current prices as of the effective date of the appraisal, a building with utility equivalent to the building being appraised, using modern materials and current standards, design and layout. (Dictionary and USPAP)
REPRODUCTION COST
The estimated cost to construct, at current prices as of the effective date of the appraisal, an exact duplicate or replica of the building being appraised, using the same materials, construction standards, design, layout, and quality of workmanship and embodying all the deficiencies, superadequacies, and obsolescence of the subject building. (Dictionary)
ASSUMPTIONS AND CONDITIONS
Standards Rule 2-1 of the Uniform Standards of Professional Appraisal Practice (USPAP) requires the appraiser to clearly and accurately set forth the appraisal in a manner that will not be misleading; contain sufficient information to enable the intended users of the appraisal to understand the report properly; and clearly and accurately disclose all assumptions, extraordinary assumptions, hypothetical conditions, and limiting conditions used in the assignment.
General Assumptions and Limiting Conditions
Unless specified otherwise in the text of this report, the following 18 general assumptions and limiting conditions apply.
NO. 1
The appraiser was not provided a current Policy of Title (CLTA or ALTA), which is the best method for the appraiser to determine if any easements or encumbrances exist that could negatively impact the marketability or market value of the subject property. It is recommended that the client obtain a current Policy of Title. The reported value conclusion(s) contained within this report are contingent upon a review of said title policy and the absence of any negative easements and/or encumbrances.
NO. 2
The existence of hazardous substances, including without limitation asbestos, polychlorinated biphenyl, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, was not called to the attention of nor did the appraiser become aware of such during the appraiser’s inspection. The appraiser has no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraiser, however, is not qualified to test for such substances. The presence of such hazardous substances may affect the value of the property. The value opinion developed herein is predicated on the assumption that no such hazardous substances exist on or in the property or in such proximity thereto, which would cause a loss in value. No responsibility is assumed for any such hazardous substances, nor for any expertise or knowledge required to discover them.
NO. 3
The Americans with Disabilities Act (ADA) became effective January 26, 1992. The appraiser has not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property together with a detailed analysis of the requirements of the ADA could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since the appraiser has no direct evidence relating to this issue, possible noncompliance with the requirements of ADA was not considered in developing an opinion of the value of the property.
NO. 4
This report does not address unforeseeable events that could alter the property and/or the market conditions reflected in the analyses, opinions and conclusions.
NO. 5
The value estimate in this appraisal report is gross, without consideration given to any encumbrance, restriction or question of title, unless otherwise specified. We assume no responsibility for matters legal in character, nor do we render any opinions as to title, which is assumed to be good and marketable. All existing liens and encumbrances have been disregarded, and the property is appraised as though free and clear, under responsible ownership and competent management. The legal description is assumed to be correct.
NO. 6
This appraisal report covers only the property described and any values or rates utilized are not to be construed as applicable to any other property, however similar the property might be. The distribution of the total value in this report between land and improvements applies only under the existing or proposed program of utilization. The separate values for land and building must not be used in connection with any other appraisal, and are invalid if so used.
NO. 7
We assume that the utilization of the land is within the boundaries or property lines and that no encroachments or trespasses exist unless specifically noted in the records and data sources utilized. We have made no survey of the property, nor has a survey been provided. All references to dimensions are based on data obtained from the public records or other sources thought reliable, but accuracy cannot be guaranteed.
NO. 8
We were not provided with a certified soil or subsoil analysis of the property. Though no adverse soil conditions were noted upon visual inspection of the property, the discovery of adverse soil conditions is beyond our area of expertise.
We, therefore, assume that there exist no soil or subsoil conditions, which would preclude or adversely affect the development of the site or render it more or less valuable. We assume no responsibility for any such conditions or for the engineering that might be required to discover these factors.
NO. 9
Any maps, sketches, reproductions or photographs included in this report are only for illustration and as an aid in visualizing the property.
NO. 10
This report contains a section including the “Sales History,” which describes the recent title history of the subject property. This should not be construed as a title search or report of title. We render no opinion as to title, which is assumed to be good and marketable.
NO. 11
It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined and considered in the appraisal report. Required licenses, certificates of occupancy, 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.
NO. 12
Market data regarding land sales, rents, and improved sales have been abstracted from public records or obtained from other sources. To the extent possible within time and resource constraints, we confirmed or verified recorded data with private sources judged to be informed and reliable. These sources are considered reliable and believed to be accurate.
However, we cannot assume responsibility for accuracy of such data. Following standard professional real estate market analysis procedures, verification with a knowledgeable individual was accepted as confirmation of public record data.
When verification was not possible, the formal, official public record data was accepted as correct. We assume that all buyers, sellers, and other participants in the transactions reported in this report communicated accurate data, were well informed and behaved prudently on the basis of the information available to them at the time of such transactions.
NO. 13
We shall not be required to give further consultation or testimony or attend court or be at any governmental hearing with reference to the subject property unless prior arrangements have been made for such employment.
NO. 14
We have not reviewed any environmental impact studies in conjunction with this appraisal assignment; therefore, no responsibility is assumed for any factors that might be disclosed as the result of such studies that could influence the opinions or values set forth in the appraisal report. In the absence of such studies, we hereby reserve the right to review, alter, revise and/or rescind this appraisal or any part thereof, based on the subsequent environmental impact studies.
NO. 15
The descriptions and estimates of the condition of the physical improvements found herein are based on approved building plans. As no engineering tests were conducted, no liability can be assumed for soundness of structural members or any other conditions not readily apparent to the untrained observer.
NO. 16
Disclosure of the contents of this report is governed by the bylaws and regulations of the Appraisal Institute. Neither all nor any part of the contents of the report or copies thereof (including conclusions as to the property value, the identity of the appraiser, professional designations, reference to any professional organizations, or the firm with which the appraiser is connected), shall be used for any purposes by anyone but the client specified in the report, professional appraisal organizations, or any authorized department, agency or instrumentality of the United States, without the previous written consent of the appraiser; nor shall it be conveyed by anyone to the public through advertising, public relations, news, sales, or other media, without written consent and approval of the appraiser.
NO. 17
No determination has been made about the existence of any latent or claimed defection on the property. Such defects include UFFI (Urea Formaldehyde Foam Insulation), asbestos, ground water contamination, radon gas, lead-based paint, soil contamination, toxic or radioactive waste effects, geological or topographic defects, flood hazards or any other unnamed hazards. We assume no responsibility for the presence of such defects on the property.
NO. 18
We assume that acceptance of and/or use of this report constitutes acceptance of the foregoing general assumptions and limiting conditions.
Compliance With Uniform Standards of Professional Appraisal Practice (USPAP).
USPAP includes an Ethics Rule concerning conduct, management, confidentiality and record keeping; a Competency Rule; a Scope of Work Rule; a Jurisdictional Exception Rule; and ten (10) Standards. These Rules and Standards were most recently updated by the Appraisal Standards Board (ASB) of the Appraisal Foundation effective as of January 1, 2008 effective through December 31, 2009.
Standard 1 and Standard 2 governs analysis, production and certification of appraisal reports. Standards Rule 2-2 distinguishes between three different types of appraisals with separate rules for each. (a) Self-Contained Appraisal Report
(b) Summary Appraisal Report
© Restricted Use Appraisal Report
The essence of these rules is reproduced in the following pages as a reference, useful in reading this report. Please refer to ASB of the Appraisal Foundation publications for the full text of the new Rules and Standards. Also refer to the table of contents in this report to identify the sections in response to Standard 1 and Standard 2.
Standard 1: Real Property Appraisal, Development
In developing a real property appraisal, an appraiser must identify the problem to be solved, determine the scope of work necessary to solve the problem, and correctly complete research and analyses necessary to produce a credible appraisal.
Standards Rule 1-1
In developing a real property appraisal, an appraiser must: (a) be aware of, understand, and correctly employ those recognized methods and techniques that are necessary to produce a credible appraisal; (b) not commit a substantial error of omission or commission that significantly affects an appraisal; and © not render appraisal services in a careless or negligent manner, such as by making a series of errors that, although individually might not significantly affect the results of an appraisal, in the aggregate affects the credibility of those results.
Standards Rule 1-2
In developing a real property appraisal, an appraiser must: (a) identify the client and other intended users; (b) identify the intended use of the appraiser’s opinions and conclusions; © identify the type and definition of value, and, if the value opinion to be developed is market value, ascertain whether the value is to be the most probable price: (I) in terms of cash; or (ii) in terms of financial arrangements equivalent to cash; or (iii) in other precisely defined terms; and (iv) if the opinion of value is to be based on non-market financing or financing with unusual conditions or incentives, the terms of such financing must be clearly identified and the appraiser’s opinion of their contributions to or negative influence on value must be developed by analysis of relevant market data; (d) identify the effective date of the appraiser’s opinions and conclusions; (e) identify the characteristics of the property that are relevant to the type and definition of value and intended use of the appraisal, including: (I) its location and physical, legal, and economic attributes; (ii) the real property interest to be valued; (iii) any personal property, trade fixtures, or intangible items that are not real property but are included in the appraisal; (iv) any known easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, or other items of a similar nature; and (v) whether the subject property is a fractional interest, physical segment, or partial holding; (f) identify any extraordinary assumptions necessary in the assignment; (g) identify any hypothetical conditions necessary in the assignment; (h) determine the scope of work necessary to produce credible assignment results in accordance with the Scope of Work Rule.
Standards Rule 1-3
When necessary for credible assignment results in developing a market value opinion, an appraiser must: (a) identify and analyze the effect on use and value of existing land use regulations, reasonably probably modifications of such land use regulations, economic supply and demand, the physical adaptability of the real estate, and market area trends; and (b) develop an opinion of the highest and best use of the real estate.
Standards Rule 1-4
In developing a real property appraisal, an appraiser must collect, verify, and analyze all information necessary for credible assignment results. (a) When a sales comparison approach is necessary for credible assignment results, an appraiser must analyze such comparable sales data as are available to indicate a value conclusion. (b) When a cost approach is necessary for credible assignment results, an appraiser must: (I) develop an opinion of site value by an appropriate appraisal method or technique; (ii) analyze such comparable cost data as are available to estimate the cost new of the improvements (if any); and (iii) analyze such comparable data as are available to estimate the difference between the cost new and the present worth of the improvements (accrued depreciation). © When an income capitalization approach is necessary for credible assignment results, an appraiser must: (I) analyze such comparable rental data as are available and/or the potential earnings capacity of the property to estimate the gross income potential of the property; (ii) analyze such comparable operating expense data as are available to estimate the operating expenses of the property; (iii) analyze such comparable data as are available to estimate rates of capitalization and/or rates of discount; and (iv) base projections of future rent and/or income potential and expenses on reasonably clear and appropriate evidence. (d) When developing an opinion of the value of a leased fee estate or a leasehold estate, an appraiser must analyze the effect on value, if any, of the terms and conditions of the lease(s). (e) When analyzing the assemblage of the various estates or component parts of a property, an appraiser must analyze the effect on value, if any, of the assemblage. An appraiser must refrain from valuing the whole solely by adding together the individual values of the various estates or component parts. (f) When analyzing anticipated public or private improvements, located on or off the site, an appraiser must analyze the effect on value, if any, of such anticipated improvements to the extent they are reflected in market actions. (g) When personal property, trade fixtures, or intangible items are included in the appraisal, the appraiser must analyze the effect on value of such non-real property items.
Standards Rule 1-5
When the value opinion to be developed is market value, an appraiser must, if such information is available to the appraiser in the normal course of business: (a) analyze all agreements of sale, options, and listings of the subject property current as of the effective date of the appraisal; and (b) analyze all sales of the subject property that occurred within the three (3) years prior to the effective date of the appraisal.
Standards Rule 1-6
In developing a real property appraisal, an appraiser must: (a) reconcile the quality and quantity of data available and analyzed within the approaches used; and (b) reconcile the applicability or suitability of the approaches used to arrive at the value conclusion(s).
Standard 2: Real Property Appraisal, Reporting
In reporting the results of a real property appraisal, an appraiser must communicate each analysis, opinion and conclusion in a manner that is not misleading.
Standards Rule 2-1
Each written or oral real property appraisal report must: (a) clearly and accurately set forth the appraisal in a manner that will not be misleading; (b) contain sufficient information to enable the intended users of the appraisal to understand the report properly; and © clearly and accurately disclose all assumptions, extraordinary assumptions, hypothetical conditions, and limiting conditions used in the assignment.
Standards Rule 2-2
Each written real property appraisal report must be prepared under one of the following three options and prominently state which option is used: Self-Contained Appraisal Report, Summary Appraisal Report, or Restricted Use Appraisal Report.
(a) The content of a Self-Contained Appraisal Report must be consistent with the intended use of the appraisal and, at a minimum: (I) state the identity of the client and any intended users, by name or type; (ii) state the intended use of the appraisal; (iii) describe information sufficient to identify the real estate involved in the appraisal, including the physical and economic property characteristics relevant to the assignment; (iv) state the real property interest appraised; (v) state the type and definition of value and cite the source of the definition; (vi) state the effective date of the appraisal and the date of the report; (vii) describe the scope of work used to develop the appraisal; (viii) describe the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales comparison approach, cost approach, or income capitalization approach must be explained; (ix) state the use of the real estate existing as of the date of value and the use of the real estate reflected in the appraisal; and, when an opinion of highest and best use was developed by the appraiser, describe the support and rationale for that opinion; (x) clearly and conspicuously state all extraordinary assumptions and hypothetical conditions; and state that their use might have affected the assignment results; and (xi) include a signed certification in accordance with Standards Rule 2-3.
(b) The content of a Summary Appraisal Report must be consistent with the intended use of the appraisal and, at a minimum: (I) state the identity of the client and any intended users, by name or type; (ii) state the intended use of the appraisal; (iii) summarize information sufficient to identify the real estate involved in the appraisal, including the physical and economic property characteristics relevant to the assignment; (iv) state the real property interest appraised; (v) state the type and definition of value and cite the source of the definition; (vi) state the effective date of the appraisal and the date of the report; (vii) summarize the scope of work used to develop the appraisal; (viii) summarize the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales comparison approach, cost approach, or income capitalization approach must be explained; (ix) state the use of the real estate existing as of the date of value and the use of the real estate reflected in the appraisal; and, when an opinion of highest and best use was developed by the appraiser, summarize the support and rationale for that opinion; (x) clearly and conspicuously state all extraordinary assumptions and hypothetical conditions; and state that their use might have affected the assignment results; and (xi) include a signed certification in accordance with Standards Rule 2-3.
© The content of a Restricted Use Appraisal Report must be consistent with the intended use of the appraisal and, at a minimum: (I) state the identity of the client, by name or type; and state a prominent use restriction that limits use of the report to the client and warns that the appraiser’s opinions and conclusions set forth in the report may not be understood properly without additional information in the appraiser’s workfile; (ii) state the intended use of the appraisal; (iii) state information sufficient to identify the real estate involved in the appraisal, (iv) state the real property interest appraised; (v) state the type of value and cite the source of the definition; (vi) state the effective date of the appraisal and the date of the report; (vii) state the scope of work used to develop the appraisal; (viii) state the appraisal methods and techniques employed, state the value opinion(s) and conclusion(s) reached, and reference the workfile; exclusion of the sales comparison approach, cost approach, or income capitalization approach must be explained; (ix) state the use of the real estate existing as of the date of value and the use of the real estate reflected in the appraisal; and, when an opinion of highest and best use was developed by the appraiser, state that opinion; (x) clearly and conspicuously state all extraordinary assumptions and hypothetical conditions; and state that their use might have affected the assignment results; and (xi) include a signed certification in accordance with Standards Rule 2-3.
Standards Rule 2-3
Each written real property appraisal report must contain a signed certification that is similar in content to that which is summarized in this Standards Rule. A similar certification is included on page 3 of this report.
Standards Rule 2-4
To the extent that it is both possible and appropriate, an oral real property appraisal report must address the substantive matters set forth in Standards Rule 2-2(b).
PROFESSIONAL QUALIFICATIONS
PROFESSIONAL QUALIFICATIONS
PROFESSIONAL QUALIFICATIONS
EXPERIENCE:
1991-Present SULLIVAN & ASSOCIATES
Sullivan and Associates, founded in 1991 by Mr. Steven P. Sullivan, is an independent appraisal company specializing in the appraisal of all types of low- to high-rise office buildings, single-tenant industrial buildings and multi-tenant industrial parks, cold storage/food processing facilities, retail shopping centers and automotive dealerships. All work is completed by Mr. Sullivan, who has appraised approximately one thousand appraisal assignments on properties totaling billions of dollars.
All appraisals meet current requirements of the Uniform Standards of Professional Appraisal Practice (USPAP), the standards for the Federal Deposit Insurance Corporation (FDIC) and are FIRREA compliant. Mr. Sullivan is licensed/authorized to work on federally related transactions in the states of California, Nevada and Arizona. Fully proficient in most types of real estate cash flow analyses software, including ARGUS, PROJECT, OFFICE 2 and CENTER.
Auto Dealership Appraisal Group - Auto Dealership Appraisal Group was formed by Mr. Sullivan in response to his specialty in the valuation of automotive dealership facilities. Mr. Sullivan, has over twenty years of appraisal experience and in addition to his regular commercial appraisal portfolio he has appraised roughly one hundred dealership facilities in the past two years alone.
Mr. Sullivan is an approved appraiser for all known financial institutions specializing in dealership lending (Comerica, Bank of America, Citibank, US Bank, etc.) as well as all factory credit corporations, including Chrysler, GM, Nissan, Toyota, Mercedes-Benz, BMW, Porsche and VW Credit - to name a few. Mr. Sullivan’s major clients include AutoNation, Sonic Automotive, Van Tuyl, Inc., Group 1 Automotive, Wilson Automotive, Hitchcock Automotive and Keyes Automotive. 1986-1991 GRUBB & ELLIS APPRAISAL / CONSULTATION
Assistant Vice President - completed full narrative appraisals on virtually all types of commercial properties, including hotels, golf courses, office and retail properties. During this time, Mr. Sullivan completed valuation services on some of the largest hotel, resort and office properties in North America. Also responsible for client relations as well as the review and training of junior staff. 1983-1986 LANDAUER ASSOCIATES
Staff Appraiser - primary duties included full narrative appraisals on all types of commercial office, retail and industrial properties located throughout the Western United States. 1983 TARRANTELLO and ASSOCIATES
Staff Appraiser - Employed in Phoenix Arizona office, primary duties included full narrative appraisals on all types of commercial and industrial properties.
EDUCATION:
CALIFORNIA STATE COLLEGE, BAKERSFIELD
Business Administration Major
UNIVERSITY OF CALIFORNIA AT LOS ANGELES (UCLA)
Hotel & Motel Financial Analysis
Hotel/Restaurant Feasibility Studies
Real Estate Law
Restaurant Management & Financial Analysis
Appraisal Courses
USPAP
Mortgage Fraud
Construction Details & Trends
The Cost Approach
Private Appraisal Assignments
California Law & Regulations
Risky Business Practices: Minimize Liability
Sales Verification: Principles, Procedures & Case Studies Introduction to Expert Witness Testimony
Real Estate Appraisal Principles
Real Estate Appraisal Standards
Advanced Real Estate Appraisal
Income Property Appraisal (AIREA)
Urban Properties (AIREA)
Investment Analysis (AIREA)
Capitalization Theory & Technique Part 1B-A, 1B-B
Real Estate Economics
Real Estate Law
Appraisal Conferences, Seminars and Clinics Attended:
Appraisal of Special Purpose Properties
Appraisal of Vacant Land
Hotel/Motel Valuation Seminar
Apartment Valuation Seminar
Industrial Properties Seminar
Subdivision Seminar
Licensed Real Estate Broker (#01237595): Relate Classes Real Estate Economics
Property Management
Real Estate Finance
Legal Aspects of Real Estate
Office Administration