APPRAISAL OF:
AGRICULTURAL PROCESSING FACILITY AT
1275 HANSEN STREET
SALINAS, MONTEREY COUNTY
REQUESTED BY: Patrick Dobbins
Public Works Director
City of Gonzales
147 Fourth Street
Gonzales, CA 93926
APPRAISAL AS OF: June 1, 2025
APPRAISED BY: John W. Piini, MAI
Chad Piini
Piini Realty Inc.
263 Lincoln Avenue
Salinas, CA 93901
113 4TH STREET
GONZALES, MONTEREY COUNTY, CA
APN 020-073-001
TRANSMITTAL LETTER
June 9, 2025
Patrick Dobbins
Public Works Director
City of Gonzales
Gonzales, Ca 93926
Sent via email: [email protected]
Re: Restricted Appraisal Report – 113 4th Street
Gonzales, California
Dear Mr. Dobbins:
Upon your authorization, we conducted the investigations and analyses necessary to form an opinion as to the present-day range in the fee simple and leased fee market value for the office building located at 113 4th Street, Gonzales and identified as Monterey County Assessor Parcel Number (APN) 020-073-011.
This report is presented as a Restricted Appraisal Report that is intended to comply with USPAP Standards Rule 2-2(b). As such, use of this report is limited to the client and named intended users because it may not contain supporting rationale for all of the opinions and conclusions that are set forth. Based on the inspection of the property and the investigations and analyses undertaken, we have formed the opinion that as of June 1, 2025, the market value range for the fee simple and leased fee interest of the subject property are as follows:
Property rights appraised Fee simple Interest Leased Fee Interest Market value range $800,000 to $875,000 $710,000 to $780,000 The restricted appraisal report that follows sets forth the identification of the property, the assumptions and limiting conditions, a summary description of the subject property, and summaries of the valuation approaches utilized.
Respectfully submitted,
John W. Piini, MAI Chad Piini
Certified General Real Estate Appraiser Certified General Real Estate Appraiser State of California, BREA No. AG005214 State of California, BREA No. AG00521 Restricted Appraisal Report – 113 4th Street Page 2
GENERAL INFORMATION
Subject Address: 113 4th Street, Gonzales, Ca 93926
Identification: Monterey County Assessor Parcel Number 020-073-011 Extraordinary
Assumptions This appraisal is predicated upon two extraordinary assumptions1. The first extraordinary assumption is that there are easements allowing for the shared use of the paved parking lot situated between the subject parcel and the adjoining Gonzales City Hall parcel that is identified as APN 020-073-001.
The second extraordinary assumption is that the property is free and clear of any environmental, hazardous, or toxic contamination that would adversely impact value.
Property Type: Multi-tenant office building.
Client: City of Gonzales.
Intended Users: The client is the only intended user of this Restricted Appraisal Report. No other users of this report are intended by the appraiser.
Intended Use: To assist the client in making future decisions regarding a possible sale of the property. This report is not intended for review by the Department of General Services.
Property Rights: The property is leased through December 30, 2027, and at the client’s request, the property rights appraised is both the fee simple interest2 and the leased fee interest.3
Ownership Interest Appraised: 100% undivided ownership interest.
Type of Value: Market value4. 1
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” Dictionary of Real Estate Appraisal – 6th Edition. (Chicago: Appraisal Institute, 2015) p. 83. 2 Fee simple interest 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.
Dictionary of Real Estate Appraisal – 6th Edition. (Chicago: Appraisal Institute, 2015) p. 90. 3 The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the Lease plus the reversionary right when the Lease expires. 4 Market value is defined as “The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity for so Restricted Appraisal Report – 113 4th Street Page 3
Date of the Report: The report was prepared in May and June 2025.
Exposure Time: An exposure time of 6 to 12 months is considered reasonable and applied in this analysis.
Effective Date: June 1, 2025.
Property History: There were no transfers of ownership within the past three years. We are not aware of any purchase options/agreements affecting the subject property.
Scope of Work: The subject was inspected by Greg and Chad Piini on May 1, 2024 for a previous market rent appraisal. This appraisal is based on the extraordinary assumption that there have been no physical changes since the last inspection. We have reviewed parcel maps, aerial photographs, topography maps, flood maps, soil maps, and zoning maps.
The valuation of the property is predicated on market data collected specifically for this assignment and prior appraisal assignments. The market data is derived from a variety of sources including County records; Multiple Listing Service (MLS) data; website subscription services including LoopNet, and Costar.
PROPERTY DESCRIPTION
AERIAL MAP
doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available” (California Code of Civil Procedure §1263.320).
Restricted Appraisal Report – 113 4th Street Page 4
113 4th Street office building on right, Gonzales City Hall on left and common area parking for both buildings in center of photo. Photo taken from alley facing 4th Street.
Location: The property is located at 113 4th Street. The surrounding land uses along 4th Street include city hall, the Gonzales police station and other governmental offices.
Site: The subject parcel is an interior lot with 90-feet of frontage on the north side of 4 th Street and a depth of 140-feet. Lot size is 12,600 square feet.
Improvement: The site is improved with a single story, 5,330 square foot that is currently divided into three rental units, which are summarized below:
The building has a concrete slab foundation, stucco and slump stone siding, single pane windows and a flat, tar and gravel roof. Each rental unit has its own access and there are no common areas shared by the three units. The entrance to the Gonzales Medical Center has direct access at 4th Street and the entrance has a steep concrete slope that does not meet ADA standards.
There is one gas and one electrical meter. To the east of the building is a 7,000 ± square foot paved parking lot that provides for 14 parking spaces. This parking lot overlaps onto the Gonzales City Hall parcel (APN 020-073-001). It is assumed that if the subject parcel were sold, right-of-way’s and easements would be established to allow the continued shared use of the on-site parking.
Gross Building Area
Tenant % of GBA Square Feet
Gonzales Medical Center 54.1% 2,884
Labcorp 17.3% 923
Vacant 28.6% 1,523
Gross Building Area (GBA) 100.0% 5,330
Restricted Appraisal Report – 113 4th Street Page 5
Lessee Gonzales Medical Center
Lease term 5-Years: 1/1/2022 to 12/30/2027
Leased premise (square feet) 2,883
Base year monthly rent $500
Monthly rent per square foot $0.17
Rental adjustment Based on change in CPI with a 3% ceiling Landlord obligations General maintenance and major repairs Lessee obligations Water, sewer, gas, electrical & janitorial Leases: The subject has two tenants and one space that is vacant. The largest tenant is Gonzales Medical Center, which leases 2,883 square feet. The second tenant is LabCorp, which leases 923 square feet. The second tenant, LabCorp is on a month-to-month term and pays approximately $790+. The Gonzales Medical Center has a Lease that expires on December 30, 2027 and is currently dramatically under market and it is this reason why the client requests a leased fee valuation range. The terms of the Gonzales Medical Center are further summarized as follows:
Land Use Policies: The property is within the Historic District (H) and zoned Public Facility (PF).
Highest & Best Use: The subject is located in the Historic District of downtown Gonzales and the surrounding land uses are commercial and governmental buildings. The highest and best use is as an office use. Valuation Comments: For the valuation of the subject property, the fee simple value is determined first, and it is predicated upon the sales comparison approach and the income approach. The cost approach is not applied due to the lack of commercial office land in the market area.
Following the conclusion of the fee simple value range, the leased fee value range is predicated on the present value of the difference between the contract rent and market rent.
FEE SIMPLE VALUE RANGE
Sales Comparison Approach: The sales that provide the greatest comparability are summarized below. Due to the lack of comparable sales in the city of Gonzales, sales in south Monterey County and Salinas are considered. The selected sales are summarized below:
Restricted Appraisal Report – 113 4th Street Page 6
Sale 1: Sale 1 is located in Soledad and situated on an interior lot fronting the east side of Front Street, which is the main commercial arterial for Soledad. This property is improved with a two-story, unreinforced mixed-use building that has a 2,297 square foot retail space on the ground level and a two-bedroom apartment on the second floor.
At the time of sale, the ground floor was occupied by an auto parts store that was paying $1,900 per month ($0.83/SF) on a month-to-month tenancy, and the apartment unit was vacant.
An income analysis of the sale indicates an overall rate of about 5.8 % on first year income at market rent.
Sale 2: Sale 2 is located on south Main Street in Salinas near Salinas High School. This property shares a common parking lot with the adjoining properties and is improved with a 5,473 square foot commercial building that is divided into two rental units. Each unit is utilized for hair salons. The building is an average quality single-story building that was constructed in 1975.
The property was offered for sale in May 2023 at an asking price of $900,000 and sold within 30 days to one of the tenants at a sale price of $910,000.
Market rent for the two units was about $1.30 per square foot and the sale indicates a first-year rate of return of about 6.5%.
Sale 3: Sale 3 is located in south Salinas, behind the Star Market Shopping Center and one-half block from the Pajaro Street and Blanco Road intersection. This property has a 9,300 square foot lot and is improved with a single story, 5,630 square foot, wood frame commercial building that was constructed in 1963.
The property was acquired by the tenant who had a three-year lease that included an option to purchase the property for $975,000 at the end of the lease. The contract rent for the three years was at $5,000 per month ($0.89/SF) on a modified gross basis. The tenant, who operates a veterinarian clinic, exercised the option to purchase in April 2025.
Resume of Sales
Sale No Subject 1 2 3 4 5 6
Sale Date N/A 10/30/2024 6/28/2023 4/30/2025 2/16/2024 2/29/2024 10/11/2023 City Gonzales Soledad Salinas Salinas Soledad Soledad Salinas Location 113 4th St. 415-417 Front St 843-847 S. Main 92 La Mesa Dr 1040 State St 515 Front St 1119-1121 Pajaro St APN 020-073-011 022-014-011 002-534-033 016-101-029 022-037-003 022-026-018 002-671-043 Year built No Record 1929 1975 1978 1963 1988 1958
Lot size 12,600 3,750 5,473 9,300 6,098 6,750 7,552
Building size 5,330 3,632 5,473 5,630 3,145 3,046 2,988 Floor area ratio 42.3% 96.9% 100.0% 60.5% 51.6% 45.1% 39.6% Zoning Public C-1 CR CR C-2 C-1 RL 5.5
Sale price N/A $550,000 $910,000 $975,000 $570,000 $605,000 $850,000 Price per sq. ft. N/A $151 $166 $173 $181 $199 $284
Restricted Appraisal Report – 113 4th Street Page 7
An income analysis of the sale indicates an overall rate of about 5.3% on first year income.
Sale 4: Sale 4 is located on State Street in Soledad, in an area composed mostly of commercial industrial and storage warehouses. The property is improved with a single story, low-cost commercial building and an attached 2-bed and 1-bath apartment unit. The commercial building is 2,600 square feet and divided into two units.
The property was offered for sale in May 2023 at an asking price of $598,000 and sold in February 2024 for $570,000. At the time of sale, the commercial building was vacant.
Sale 5: Sale 5 is another improved commercial sale located at 515 Front Street in Soledad. The property is improved with a two-unit, unreinforced masonry retail building that was constructed in 1928.
The property was offered for sale in January 2024 at an asking price of $575,000 and sold within one month for $605,000. At the time of sale, the retail units included a barber shop and an ice cream parlor. The units were rented at a below market rent of $0.44 per square foot.
Sale 6: Sale 6 is located in south Salinas in a mixed-use area of multi-family residential and several former residences and duplexes converted to offices. This property is a former duplex building that was converted to a two-unit office building. At the time of sale, the property was owner-occupied and used for a chiropractic business. One of the units continues to be used for a chiropractic office and the second unit for skin care. Market rent for the units is $2.25 per square foot and the sale indicates a first-year rate of return of about 7.0%.
Sale Adjustments:
The sale adjustment grid that follows summarizes the various adjustment applied in comparing the sales to the subject property.
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In comparing the sales to the subject, quantifying adjustments is difficult due to the limited number of commercial sales in the market area and the sales that occurred do not necessarily provide a consistent pattern. For instance, Sales 2 and 3 are considered superior to Sales 4 and 5 and yet Sales 4 and 5 sold for a higher per square foot price. The difference in size would account for some of that, but not all
In review of the above, Sale 1 is considerably inferior to the subject and that sale brackets the low end of value at $151 per square foot. Sale 6 is considerably superior and based on that sale, the value of the subject is less than $284 per acre.
After adjusting the remaining four sales for differences in location and building size the adjusted range from these four sales is between $145 per square foot and $160 per square foot, from which the value range derived from the sales comparison approach is $155 to $165 per square foot. Hence, Resume of Sales and adjustments
Sale No Subject 1 2 3 4 5 6
Sale Date N/A 10/30/2024 6/28/2023 4/30/2025 2/16/2024 2/29/2024 10/11/2023 City Gonzales Soledad Salinas Salinas Soledad Soledad Salinas Location 113 4th St. 415-417 Front St 843-847 S. Main 92 La Mesa Dr 1040 State St 515 Front St 1119-1121 Pajaro St APN 020-073-011 022-014-011 002-534-033 016-101-029 022-037-003 022-026-018 002-671-043 Year built No Record 1929 1975 1978 1963 1988 1958
Lot size 12,600 3,750 5,473 9,300 6,098 6,750 7,552
Building size 5,330 3,632 5,473 5,630 3,145 3,046 2,988 Floor area ratio 42.3% 96.9% 100.0% 60.5% 51.6% 45.1% 39.6% Zoning Public C-1 CR CR C-2 C-1 RL 5.5
Sale price N/A $550,000 $910,000 $975,000 $570,000 $605,000 $850,000 Price per sq. ft. N/A $151 $166 $173 $181 $199 $284
Location Inferior (+) Superior (-10%) Superior (-10%) Inferior (+) Inferior (+) Superior (-) Bldg Size (per unit comparison) Superior (-) Comparable (=) Comparable (=) Superior (-) Superior (-) Superior (-) Overall percentage adjustment -10.0% -10.0% -20.0% -20.0% Adjusted price per sq. ft. (rnd.) $150 $155 $145 $160
Age and Condition Inferior (++) Comparable (=) Comparable (=) Inferior (+) Inferior (+) Superior (-) Income potential Inferior (+) Comparable (=) Comparable (=) Inferior (+) Inferior (+) Superior (-) Sales comparison approach - fee simple value range
Bldg Size 5330 5,330
Indicated value per square foot $155 $165
Indicated value from the sales comparison approach $826,150 $879,450 Rounded to $826,000 $880,000
Restricted Appraisal Report – 113 4th Street Page 9
Income Approach: The following table summarizes the income approach, which estimates value based on the income potential of the property.
Fee Simple Market Value Range Conclusion
Income approach - fee simple value range
Gross monthly rent Unit Size $/SF Totals
Unit 1 - Gonzales Medical Center 2,884 $1.30 $3,749
Unit 2 - Labcorp 923 $1.25 $1,154
Unit 3 - Vacant (Former Sun Street Center) 1,523 $1.20 $1,828 Total gross market monthly rent 5,330 6,731
Gross annual income $80,767
Less: Vacancy and collection loss 5.0% $4,038
Effective gross income $76,728
Operating Expenses
Fire insurance 5,330 $0.80 $4,264
Utilities $110 per month $1,320
Repairs & reserves 5.0% $3,836
Professional services 6.0% $4,604
Total expenses $14,024
Net income $62,704
Value range based on the capitalization rate
Capitalization rates 6.75% 6.00%
Estimated tax rate 1.15% 1.15%
Overall capitalization rate 7.90% 7.15%
Capitalized value $793,724 $876,981
Rounded to $790,000 $880,000
Sales comparison approach - fee simple value range $826,000 to $880,000 Income approach - fee simple value range $790,000 to $880,000 Market value conclusion $800,000 to $875,000
Restricted Appraisal Report – 113 4th Street Page 10
LEASED FEE VALUE RANGE
The Gonzales Medical Center Lease has a below market rent with 31 months remaining on the lease term. This creates a leased fee interest that has a lower value than the fee simple value. For this particular property, the leased fee value is measured by the present value of the rental difference between market rent and contract rent for the remaining lease term.
The following table summarizes the conclusion of the leased fee value range.
Unit 1 Market rent per month $3,750
Unit 1 Contract rent per month $500
Difference between contract rent and market rent -$3,250 Remaining term (months) from valuation date (6/1/2025) to lease termination (12/30/2027) 31 Present value of the income loss
Fee simple capitalization rate 6.75% 6.00%
Discount rate 8.00% 7.25%
Present value of the income loss -$90,749 -$93,115
Fee Simple Market Value Conclusion $800,000 to $875,000 Less: Present value of the income difference -$90,749 to $93,115 Leased fee value $709,251 to $968,115
Leased fee value rounded $710,000 to $780,000
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CERTIFICATION – JOHN PIINI
I certify that, to the best of my 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.
• I have no present or prospective interest in the properties that are the subject of this report, and no personal interest with respect to the parties involved. • I have performed appraisal services 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 properties that are 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 requirements with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.
• I have made a personal inspection of the properties that are the subject of this report. • No one provided significant real property appraisal assistance to the person signing this certification.
• The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
• As of the date of this report, John W. Piini, MAI has completed the requirements of the continuing education program of the Appraisal Institute.
John W. Piini, MAI
Certified General Real Estate Appraiser
State of California, BREA Number AG005214
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CERTIFICATION – CHAD PIINI
I certify that, to the best of my 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.
• 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 appraised 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 requirements with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. • I have made a personal inspection of the property that is the subject of this report. • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
Chad Piini
Certified General Real Estate Appraiser
State of California, BREA No. 3012020
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LIMITING CONDITIONS
ASSUMPTIONS AND LIMITATIONS OF APPRAISAL
This appraisal is for no purpose other than property valuation, and the appraiser(s) is neither qualified nor attempting to go beyond that narrow scope. The reader should be aware that there are also inherent limitations to the accuracy of the information and analyses contained in this appraisal. Before making any decision based on the information and analysis contained in this report, it is critically important to read this entire section to understand these limitations.
APPRAISAL IS NOT A LEGAL OPINION
No opinion is intended to be expressed for legal matters or that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers, although such matters may be discussed in the report.
No opinion as to title is rendered. Data on ownership and the legal description were obtained from sources generally considered reliable. Title is assumed to be marketable and free and clear of all liens and encumbrances, easements, and restrictions except those specifically discussed in the report. The property is appraised assuming it to be under responsible ownership and competent management and available for its highest and best use.
It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. A comprehensive examination of laws and regulations affecting the subject property was not performed for this appraisal.
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. Information and analysis shown in this report concerning these items is based only on a rudimentary investigation.
Any significant question should be addressed to local zoning or land use officials and/or an attorney.
It is assumed that all required licenses, consents or other legislative or administrative authority from any local, state, or national government or 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. Appropriate government officials and/or an attorney should be consulted if an interested party has any questions or concerns on these items since the appraiser(s) has not made a comprehensive examination of laws and regulations affecting the subject property.
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Testimony or attendance in court or at any other hearing is not required by reason of rendering this appraisal unless a signed contract has been executed prior to the date of this report.
APPRAISAL IS NOT A SURVEY
No engineering survey has been made by the appraiser, and no responsibility is assumed in connection with such matters. Except as specifically stated, data relative to size and area were taken from sources considered reliable, and no encroachment of real property improvements is assumed to exist.
It is assumed that the utilization of the land and improvements is within the boundaries of the property lines of the property described and that there is no encroachment or trespass unless noted in the report.
All maps, plats and exhibits included herein are for illustration only, as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose, and the reliability of the information contained on such is assumed by the appraiser(s) and cannot be guaranteed. A surveyor should be consulted if there is any concern on boundaries, setbacks, encroachments, or other survey matters.
APPRAISAL IS NOT AN ENGINEERING OR PROPERTY INSPECTION REPORT AND IS MADE UNDER CONDITIONS WITH
LIMITED DATA
This appraisal should not be considered a report on the physical items that are a part of this property.
Although the appraisal may contain information about the physical items being appraised (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 physical report. The appraiser(s) is not a construction, engineering, environmental, or legal expert, and any statement given on these matters in this report should be considered preliminary in nature.
The appraiser(s) has inspected as far as possible, by observation, the land and the improvements; however, it was not possible to personally observe conditions beneath the soil or hidden structural or other components
The appraisal is based on the assumption that there are no hidden, unapparent, or apparent conditions of the property site, sub-soil, or structures or toxic materials which would render it either less or more valuable. The appraiser(s) is not an environmental nor health expert. No responsibility is assumed for any such condition or for any expertise or engineering to discover them.
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No opinion is expressed as to the value of subsurface oil, gas or mineral rights and that the property is not subject to surface entry for the exploration or removal of such materials except as is expressly stated.
No chemical or scientific tests were performed by the appraiser(s) on the subject property, and it is assumed that the air, water, ground and general environment associated with the property present no physical or health hazard of any kind unless otherwise noted in the report. It is further assumed that the lot does not contain any type of dump site and that there are no underground tanks (or any underground source) leaking toxic or hazardous chemicals into the groundwater or the environment unless otherwise noted in the report. If any problems of this nature are known to the appraiser(s) which, in the appraiser's opinion would create a significant problem, they are disclosed in this report.
Nondisclosure should not be taken as an indication that such a problem does not exist, however. An expert in the field should be consulted if any interested party has questions on environmental factors. If it is found that any of the aforementioned is present, the value of the property may be adversely affected and a re-appraisal at additional cost will be necessary to estimate the effects of such.
Because no detailed inspection was made, and because such knowledge goes beyond the scope of this appraisal, any observed condition or other comments given in this appraisal report should not be taken as a guarantee that a problem does not exist. Specifically, no guarantee is made as to the adequacy or condition of the foundation, roof, exterior walls, interior walls, floors, heating system, air conditions system, 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 construction expert be hired for a detailed investigation.
APPRAISAL REPORT LIMITATIONS
Appraisal reports are technical documents addressed to the specific technical needs of clients. Casual readers should understand that this report does not contain all of the information we have concerning the subject property or the real estate market. While no factors we believe to be significant but unknown to the client have been knowingly withheld, it is always possible that we have information of significance which may be important to others but which, with our limited acquaintance of the property and our limited expertise, does not seem to be important. On the other hand, appraisal reports are performed with a limited amount of data. Data limitations result from a lack of certain areas of expertise by the appraiser (that go beyond the scope of the ordinary knowledge of an appraiser), the inability of the appraiser to view certain portions of the property, the inherent limitations of relying upon information provided by others, etc.
Restricted Appraisal Report – 113 4th Street Page
Before relying on any statement made in this appraisal report, interested parties should contact the Appraiser(s) for the exact extent of the data collection on any point which they believe to be important to their decision making. This will enable such interested parties to determine whether they think the extent of our data gathering process was adequate for their needs or whether they would like to pursue additional data gathering for a higher level of certainty.
Opinions and estimates expressed herein represent the appraiser's best judgment but should not be construed as advice or recommendation to act. Any actions taken by you, the client, or any others should be based on your own judgment, and the decision process should consider many factors other than just the value estimate and information given in this report.
Appraisal reports made for lenders are technical documents specifically made to lender requirements.
Casual readers are cautioned about their limitations and cautioned against possible misinterpretation of the information contained in these reports.
Neither all nor any part of the contents of this report, especially any conclusions as to value or the identity of the appraiser or the firm to which appraiser is connected, shall be disseminated to the public for public communication purposes through advertising media, public relations media, news media, sales media or any other public means of communication, without the prior written consent and approval of the author.
The estimated market value, which is defined in the report, is subject to change with market changes over time. Value is highly related to exposure, time, promotional effort, terms, motivation, and conditions. The value estimates consider the productivity and relative attractiveness of the property physically and economically in the marketplace as of the date of value.
The "Estimate of Market Value" in the appraisal report is not based in whole or in part upon the race, color or national origin of the present owners or occupants of the properties in the vicinity of the property appraised.
ACCEPTANCE OF APPRAISAL REPORT
The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
This appraisal is an estimate of value based on an analysis of information known to the Appraiser(s) at the time the appraisal was made. We do not assume any responsibility for incorrect analysis because of incorrect or incomplete information. If new information of significance comes to light, or if any Restricted Appraisal Report – 113 4th Street Page 1
conditions become apparent not previously known to the appraiser(s) which would affect the value of the property, the value given in this report is subject to change without notice and a re-appraisal at additional cost will be necessary.
Acceptance and/or use of this appraisal report by the client or any third party constitutes acceptance of the above conditions. Appraiser liability extends only to the stated client and not to subsequent parties or users, and the liability is limited to the amount of fee received by the appraisers(s).
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QUALIFICATONS OF THE APPRAISER
JOHN W. PIINI, MAI
John W. Piini, MAI has been engaged in the real estate business since 1975. From 1975 to 2008 the majority of real estate activity was in appraising and since 2008 he has been active in both real estate appraisals and brokerage. The majority of appraisal assignments involve acreage and agricultural properties prepared for attorneys, land trusts and property owners throughout Monterey, San Benito, and southern Santa Cruz and southern Santa Clara Counties. He is qualified as an expert witness in the Superior Courts of Monterey, San Benito, Santa Cruz and Santa Clara Counties.
Academic Background
Formal Education
University of California, Los Angeles, BA degree -1974
Appraisal Education
John Piini obtained his MAI designation from the American Institute of Real Estate Appraisers in 1983 after completing the required courses, examinations and experience review requirements.
Since 1983, John Piini has completed a number of appraisal courses and seminars and is current with the BREA continuing education requirements and has completed the continuing education program for Designated members of the Appraisal Institute.
Professional Experience
1975 - 1983 Associate appraiser with Joe Piini, MAI
1983 - 2008 Part owner of Piini Realty, a family owned and operated real estate firm involved in appraising, brokerage, development and management. 2008 - present In 2008 John Piini became the sole owner of Piini Realty and obtained his California Brokers license. For the past decade, real estate activities focus primarily on appraising and marketing agricultural properties.
Appraisal Assignments
The majority of assignments pertain to the valuation of agricultural and acreage properties for a variety of purposes including estate planning, conservation easements, trust management and financial lending. Valuations of commercial, industrial special-use, residential and development properties are also performed.
Professional affiliation and memberships
MAI Designation with the Appraisal Institute – Certification Number 6708 California Certified General Real Estate Appraiser – BREA # AG005214 California Licensed Real Estate Broker – BRE # 00542238 Monterey County Board of Realtor