17 - Establishing the Fair Market Value Per Acre for Assessing In Lieu Park Dedication Fees — Newport Beach City Council, October 8, 2024

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c�<,FORN'P City Council Staff Report
October 8, 2024
Agenda Item No. 17
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Seimone Jurjis, Assistant City Manager/Community Development Director - 949-644-3232, [email protected]
PREPARED BY: Lauren Wooding Whitlinger, Real Property Administrator - 949-644- 3236, [email protected]
TITLE: Resolution No. 2024-75: Establishing the Fair Market Value Per Acre for Assessing In Lieu Park Dedication Fees
ABSTRACT:

Pursuant to Section 19.52.070 of the Newport Beach Municipal Code, the City of Newport Beach requires a subdivider of residential land projects containing 50 lots or less to either:
(1) dedicate parkland as part of the development; (2) pay an in -lieu fee equal to the value of land required for parkland; or (3) a combination of the two.

A fair market value update to the parkland in -lieu fee (Park In -Lieu Fee) was last approved by the City Council in 2020 under Resolution No. 2020-95. An update to the fair market value appraisal has been performed and an updated Park In -Lieu Fee was calculated.

For the City Council's consideration is a resolution to approve an updated Park In -Lieu Fee.

RECOMMENDATIONS:
a) Find the adoption of this resolution is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment); and b) Adopt Resolution No. 2024-75, A Resolution of the City Council of the City of Newport Beach, California, Establishing the Fair Market Value Per Acre to be Used in Assessing In Lieu Park Dedication Fees Pursuant to Section 19.52.070 (Fee In Lieu of Dedication) of the Newport Beach Municipal Code and Rescinding Resolution No. 2020-95.

DISCUSSION:

Title 19 (Subdivisions) of the Newport Beach Municipal Code (NBMC) outlines the City's compliance with the Subdivision Map Act (Division 2 of Title 7 of the California Government Code), for the purpose of adopting tract and parcel maps while implementing the City's General Plan. Chapter 19.52 (Park Dedications and Fees) provides for the dedication of land, the payment of fees in lieu of dedication, or a combination of both, for park and recreational purpose in relation to residential developments in the City. 17-1

Resolution No. 2024-75: Establishing the Fair Market Value Per Acre for Assessing In Lieu Park Dedication Fees
October 8, 2024

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Under Section 19.52.070 (Fee in Lieu of Dedication) of the NBMC, the required fee is applied to projects on a "per new residential unit" basis and is computed by multiplying the acreage of required parkland by the fair market value per acre. To help ensure this Park In -Lieu Fee maintains parity with current property valuations and appreciation, the fair market value per acre is to be established by a periodic appraisal prepared by the City. The City Council most recently approved an adjustment to the Park In -Lieu Fee in 2020, which established the current fee of $38,400 per new residential unit.

Assessing and Calculating Fees In Lieu of Dedication
California Government Code Section 66477 (the "Quimby Act") establishes the methodology for assessing and calculating parkland dedication and in -lieu fee requirements. Consistent with the Quimby Act, Title 19 of the NBMC requires park dedication, and/or payment of Park In -Lieu Fees, for residential subdivisions resulting in additional dwelling units. Park In -Lieu Fees are assessed as a condition to the approval of a tentative map or parcel map, and they are used to help fund the City's acquisition or rehabilitation of parkland to meet the park and recreational demands of new residential development.

In accordance with the Quimby Act, if a proposed subdivision contains 50 parcels or fewer, the subdivider may pay an in -lieu fee equal to the value of parkland that would otherwise be required for dedication. If a proposed subdivision contains 50 parcels or more, the decision -making body shall determine whether land dedication, in -lieu fees, or a combination of the two shall be required.

Pursuant to Title 19 of the NBMC, the following factors are to be used in the calculation of parkland dedication and fee requirements:
• The City's established parkland dedication ratio of five acres of parkland per 1,000 people expected to reside in a subdivision, or 0.005 acres per person. • The average number of persons per household in the city based on data from the most recent available federal or state census, currently 2.23 persons per unit. • The per -acre value of land in the city as established by periodic appraisal.

Using the factors listed above, the Park In -Lieu Fee per new residential unit can be calculated as follows:

Park In -Lieu Fee Calculation Methodology
= 0.005 acres per person X 2.23 persons per unit
= 0.01115 acres of park land dedication per unit
= 0.01115 acres of park land dedication X fair market land value per acre = Park In -Lieu Fee per unit
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Resolution No. 2024-75: Establishing the Fair Market Value Per Acre for Assessing In Lieu Park Dedication Fees
October 8, 2024

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The fee collected is based on the number of "for sale" residential units that have been added above what is currently existing. For example: an existing single-family dwelling is torn down and replaced with a two -unit condominium. The project applicant would pay a Park In -Lieu Fee equivalent to the one added unit.
raisal to Determine Fair Market Land Value Per Acre
Since 1979, the City has used an appraisal of Eastbluff Park to establish the fair market land value per acre to be used in setting the Park In -Lieu Fees. In 2006, the City appraised Eastbluff Park as well as a second park site, Bob Henry Park, to set the Park In -Lieu Fees. Consistent with the previous appraisals, the properties were appraised by CBRE Valuation & Advisory Services (CBRE) on July 30, 2024, assuming the sites had the following characteristics:
• Multifamily residential zoning with no entitlements;
• Maximum density of 14 dwelling units per acre;
• Utilities available to the developments;
• Sites assumed to be vacant and unimproved;
• Sites assumed to have relatively level topography; and • Sites assumed to have no view potential.

Since the subject fee applies to only residential subdivisions, multifamily residential use of the properties is assumed to establish the fair market value of vacant, residentially zoned land in the city.

In preparation of this latest Park In -Lieu Fee update, staff considered which areas of the city were likely to be selected for new park sites. Staff determined West Newport and the Airport Area were appropriate given the limited existing park resources in these areas.

Two additional sites were identified and appraised by CBRE to reflect the land values in these areas:
• West Newport —An appraisal was prepared on August 7, 2024, based on the most likely property type to be acquired, a hypothetical industrially zoned property of 20,000 square feet. The appraisal assumes the site is to be acquired by the City to create a new park resource for the underserved area. • Airport Area — An appraisal was prepared August 13, 2024, based on the most likely property type to be acquired, a hypothetical mixed -use zoned property of 66,969 square feet with a maximum floor area ration of 0.5 and maximum residential density of 50 units per acre. The site characteristics were based on the average size and predominant land use in the Airport Area.

Use of four appraised sites provides a more accurate representation of the average land values in different areas of the city.

Table 1 on the next page contains the results of all four appraisals, and Table 2 shows the adjusted Park In -Lieu Fee if the appraisal results are used to establish fair market land value using the Park In -Lieu Fee Calculation Methodology outlined in the section above.
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Resolution No. 2024-75: Establishing the Fair Market Value Per Acre for Assessing In Lieu Park Dedication Fees
October 8, 2024

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Table 1
Appraisal Results
Property
Total FMV
Cost Per Acre
Eastbluff Park (13.87 acres)
$82,450,000
$5,944,486
Bob Henry Park (4.80 acres)
$30,150,000
$6,281,250
Hypothetical West Newport Industrial
$1,900,000
$4,138,200
Property (0.46 acres)
Hypothetical Airport Area Mixed -Use
$7,700,000
$5,008,466
Property (1.54 acres)
Average (4 sites)
$5,343,100
Table 2
Park In -Lieu Fee Calculation

0.005 acres per person
X 2.23 persons per unit
= 0.01115 acres of park land dedication per unit

0.01115 acres
X $5,343,100 FMV per acre
_ $59,575.57
$59,575 (rounded) Park In -Lieu Fee per unit
The proposed Park In -Lieu Fee of $59,575 per unit equates to an approximately 45% increase over the current fee of $38,400 per unit, established by the City Council in November 2020, or roughly an 11.25% increase per year.

City Council Study Session and BIA Outreach
During a City Council study session on Development Impact Fees on August 27, 2024, staff presented the proposed increase to the Park In -Lieu Fee. The Orange County Chapter of the Building Industry Association (BIA) of Southern California was also informed of the proposed update. While the BIA's feedback was generally positive, they expressed concerns about the significant 45% increase and requested that the City consider phasing in the fee over the next year. In response, staff proposes an incremental fee increase: raising the fee to $48,987 six months after the resolution is adopted and then to $59,575 one year after adoption.
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Resolution No. 2024-75: Establishing the Fair Market Value Per Acre for Assessing In Lieu Park Dedication Fees
October 8, 2024

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Park Fee Comparisons
Staff conducted a survey of surrounding cities to analyze how parkland dedications and in -lieu fees are determined and to identify the current fee structures. It was noted that many of the cities surveyed prior to the 2020 fee adjustment have not updated their fees in recent years. Similar to the City of Newport Beach, the cities of Yorba Linda, Orange, Irvine, and Garden Grove establish their park in -lieu dedication fees based on the fair market value of land.
• The City of Yorba Linda last updated its park in -lieu dedication fees in 2017. They are based on a fair market land value per acre, and the fee per single family unit is $16,716, and the fee per multifamily unit is $10,718. • The City of Orange calculates the fair market land value at the time a project is processed, using a formula of 3.0 acres per 1,000 residents to determine the required parkland dedication per unit.
• Similarly, the City of Irvine requires a subdivider to obtain an appraisal at the time of their application, and the fee is based on the fair market land value of the property they are developing, their proposed density, and a factor of 2.0 acres per 1,000 people to determine the per unit requirement.
• The City of Garden Grove also requires a fee reflecting the estimated cost of land acquisition required for park and recreation purposes, and as of February 12, 2019, the fee per single-family unit is $11,794, and the fee per multifamily unit is $9,804.

Other cities like Costa Mesa and Los Angeles base their park dedication fees on projected demographic growth, and future demand for park and recreation facilities as the population increases.

Development Agreements and Housing Accountability Act
If the resolution is adopted, the amount of annual Park In -Lieu Fees collected would increase for those projects that are not approved under an existing development agreement or have not had their preliminary applications for residential development deemed complete. Development agreements can lock in the Park In -Lieu Fee rate at the time the agreements are approved.

Under the Housing Accountability Act, developers can submit a preliminary application to lock in established fees in effect at the time a complete application is submitted; however, increases are allowed resulting from an automatic annual adjustment based on an independent public cost index that is referenced in the ordinance or resolution establishing the fee.
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Resolution No. 2024-75: Establishing the Fair Market Value Per Acre for Assessing In Lieu Park Dedication Fees
October 8, 2024

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FISCAL IMPACT:

The amount of Park In -Lieu Fees collected fluctuates year to year. It is anticipated the amount of Park In -Lieu Fees collected will go up over the next few years, but it is difficult to estimate the amount. The fees are posted to the Facilities Financing Plan Fund (Fund 513, ORG 51303), and into a Park Fee Zone account (zones 1-12) based on the location of the particular project. Park In -Lieu Fee payments for large projects are budgeted by the Community Development Department each fiscal year, and revenues from smaller projects are also received throughout the year.

The Park In -Lieu Fee program has funded the development of many parks, such as Grant Howald Park, Sunset View Park, and Marina Park.

ENVIRONMENTAL REVIEW:

Staff recommends the City Council find adoption of the resolution is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

ATTACHMENTS:

Attachment A —
Resolution No. 2024-75
Attachment B —
CBRE Appraisal Report —
Eastbluff Park, dated July 30, 2024
Attachment C —
CBRE Appraisal Report —
Bob Henry Park, dated July 30, 2024
Attachment D —
CBRE Appraisal Report —
Hypothetical Property in West Newport, dated
August 7, 2024
Attachment E
— CBRE Appraisal Report
- Hypothetical Property in Airport Area, dated
August 13, 2024
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Attachment A
Resolution No. 2024-75
17- 7

RESOLUTION NO. 2024- 75

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF NEWPORT BEACH, CALIFORNIA, ESTABLISHING

THE FAIR MARKET VALUE PER ACRE TO BE USED IN

ASSESSING IN LIEU PARK DEDICATION FEES
PURSUANT TO SECTION 19.52.070 (FEE IN LIEU OF

DEDICATION) OF THE NEWPORT BEACH MUNICIPAL
CODE AND RESCINDING RESOLUTION NO. 2020-95
WHEREAS, Chapter 19.52 (Park Dedications and Fees) of the Newport Beach Municipal Code ("NBMC") establishes a parkland dedication standard of five acres per thousand population expected to reside in new residential subdivisions in the City of Newport Beach ("City");
WHEREAS, Section 19.52.050(B) (Determination of Land or Fee — In Lieu Fee) of the NBMC requires the subdivider pay an in lieu fee equal to the value of land required for dedication for subdivisions containing 50 lots or less; WHEREAS, Section 19.52.050(C) (Determination of Land or Fee — Both Dedication and Fee) of the NBMC allows the decision -making body to require land dedication, an in lieu fee, or a combination of the two for subdivisions containing more than 50 lots;
WHEREAS, Section 19.52.070 (Fee in Lieu of Dedication) of the NBMC establishes that when a fee is required to be paid in lieu of land dedication, that fee shall be equal to the acreage of land which would otherwise be required to be dedicated, multiplied by the fair market value per acre as established by periodic appraisal prepared by the City ("In Lieu Park Dedication Fee");
WHEREAS, the City has retained a qualified appraiser to update and establish the fair market value per acre;
WHEREAS, the results of the appraisals of two park sites, one commercial industrial property, and one mixed -use property in the City have established an average value of $5,343,100 as the fair market value per acre;
WHEREAS, said fair market value would establish an In Lieu Park Dedication Fee of $59,575.57 per new residential unit created by an approved subdivision; 17-8

Resolution No. 2024-

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WHEREAS, Resolution No. 2020-95 previously established the fair market value per acre to be used in computing In Lieu Park Dedication Fee, and said Resolution is to be hereby superseded and rescinded; and
WHEREAS, the City Council has reviewed the appraisal reports and determines the average fair market cost per acre to be appropriate.

NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows:

Section 1: The amount of $5,343,100 is the fair market value per acre to be used in assessing In Lieu Park Dedication Fee pursuant to Chapter 19.52 (Park Dedications and Fees) of the NBMC.

Section 2: The amount of $59,575 per new residential unit created by an approved subdivision is the fair market value in assessing In Lieu Park Dedication Fee pursuant to Chapter 19.52 (Park Dedications and Fees) of the NBMC.

Section 3: The In Lieu Park Dedication Fee established herein shall be set at $59,575 per unit following approval of this resolution.

Section 4: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. This resolution supersedes and replaces Resolution No. 2020-95 and any other resolution that conflicts with the fee amount and adjustments provided in the previous sections.

Section 5: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
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Resolution No. 2024-

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Section 6: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution.

ADOPTED this 8th day of October, 2024.

Will O'Neill
Mayor
ATTEST:

Leilani I. Brown
City Clerk
APPROVED AS TO FORM:

CITY ATTORNEY'S OFFICE
'0 .

Aar n C. Harp
City Attorney
17-10

Attachment B
CBRE Appraisal Report — Eastbluff Park, dated July 30, 2024 17-11

CBRE Valuation & Advisory Services
Appraisal Report

EASTBLUFF PARK
2555 Vista del Oro
Newport Beach, California 92660
Prepared for: City of Newport Beach
Date of Report: July 30, 2024
CBRE File No.: CB24US044895-2
cbrexom/valuation
17-12

CBRE Valuation & Advisory Services
CBRE
5921 Owensmouth Avenue
Woodland Hills, CA 91367
T (818)251-3600
www.cbre.com/valuation
Date of Report: July 30, 2024
Ms. Lauren Wooding Whitlinger
Real Property Administrator

CITY OF NEWPORT BEACH
100 Civic Center Drive
Newport Beach, California 92660
RE: Appraisal of: Eastbluff Park
2555 Vista del Oro
Newport Beach, Orange County, California
CBRE File No.: CB24USO44895-2
Dear Ms. Wooding Whitlinger:

At your request and authorization, CBRE, Inc. has prepared an appraisal of the fair market value of the referenced property. Our analysis is presented in the following Appraisal Report.

The subject is currently improved with Eastbluff Park and contains an area of 13.87 acres or 604,177 square feet. The property is zoned PR, Parks and Recreation. We have been instructed by our client to assume the site is vacant and zoned for multifamily residential with a maximum density of 14 dwelling units per acre. Therefore, none of the park equipment or improvements were considered in this analysis.

Based on the analysis contained in the following report, the fair market value of the subject is concluded as follows:

FAIR MARKET VALUE CONCLUSION
Appraisal Premise Interest Appraised Date of Value Value Conclusion Fair Market Value Fee Simple Estate July 23, 2024 $82,450,000 Compiled by CBRE
This Appraisal Report is subject to Extraordinary Assumptions and/or Hypothetical Conditions; please refer to the Executive Summary section of this report for further discussion and analysis.

The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter.

CBRE VALUATION & ADVISORY SERVICES 1 © 2024 CBRE, INC
17-13

CBRE Valuation & Advisory Services
The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), and the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute.

The intended use and user of our report are specifically identified in our report as agreed upon in our contract for services and/or reliance language found in the report. As a condition to being granted the status of an intended user, any intended user who has not entered into a written agreement with CBRE in connection with its use of our report agrees to be bound by the terms and conditions of the agreement between CBRE and the client who ordered the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to any non -intended users does not extend reliance to any such party, and CBRE will not be responsible for any unauthorized use of or reliance upon the report, its conclusions or contents (or any portion thereof).

It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us.

Respectfully submitted,

CBRE - VALUATION & ADVISORY SERVICES
";W 2ZL__
Tom Richardson, MAI
Title: VAS - Vice President
Phone: (818) 251-3643
Email: Tom. [email protected]
License No. & State: 3004940 CA
Beth Finestone, MAI, AI-GRS, FRICS, CRE
Title: VAS - Executive Vice President
Phone: (818) 251-3669
Email: [email protected]
License No. & State: AG 004030 CA

CBRE VALUATION & ADVISORY SERVICES
© 2024 CBRE, INC
17-14

Certification
Certification
We certify to the best of our knowledge and belief:
1 . The statements of fact contained in this report are true and correct.

2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions.

3. 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.

4. Tom Richardson, MAI and Beth Finestone, MAI, AI-GRS, FRICS, CRE have not provided any services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding the agreement to perform this assignment. We completed an appraisal of the subject in August 2019.

5. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

6. Our engagement in this assignment was not contingent upon developing or reporting predetermined results.

7. 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.

8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Uniform Standards of Professional Appraisal Practice.

9. Tom Richardson has made a personal inspection of the property that is the subject of this report. Beth Finestone, MAI, AI-GRS, FRICS, CRE has not made a personal inspection of the property that is the subject of this report.

10. No one provided significant real property appraisal assistance to the persons signing this certification.

11. 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 and Standards of Professional Practice of the Appraisal Institute.

12. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

13. As of the date of this report, Tom Richardson, MAI and Beth Finestone, MAI, AI-GRS, FRICS, CRE have completed the continuing education program for Designated Members of the Appraisal Institute.

Tom Richardson, MAI
Certified General 3004940 CA
Beth Finestone, MAI, AI-GRS, FRICS, CRE
Certified General AG 004030 CA

CBRE VALUATION & ADVISORY SERVICES
© 2024 CBRE, INC
17-15

Subject Photographs
Subject Photographs

CBRE VALUATION & ADVISORY SERVICES
© 2024 CBRE, INC
17-16

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View of park
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Executive Summary
Executive Summary
Property Name Eastbluff Park
Location 2555 Vista del Oro
Newport Beach, Orange County, CA 92660
Parcel Number(s) 440-161-01
Client City of Newport Beach
Highest and Best Use
As If Vacant Multifamily use
Property Rights Appraised Fee Simple Estate
Date of Inspection July 23, 2024
Estimated Exposure Time 6 - 12 Months
Estimated Marketing Time 6 - 12 Months
Primary Land Area 13.87 AC 604,177 SF
Zoning PR, Parks and Recreation
Buyer Profile Developer

CONCLUDED FAIR MARKET VALUE
Appraisal Premise Interest Appraised Date of Value Value Fair Market Value Fee Simple Estate July 23, 2024 $82,450,000 Compiled by CBRE
Strengths, Weaknesses, Opportunities and Threats (SWOT) Weaknesses/ Threats
• Commercial real estate market conditions have deteriorated at the macro level. The significant recent increase in the cost of capital and reduced volume of transaction activity is impacting price discovery and creating an increase in uncertainty. Increasing interest rates and subdued economic growth will continue to weigh on commercial real estate fundamentals and investment transaction volumes. This creates a higher degree of uncertainty in general, though the impacts may vary by market and asset class/type.

Market Volatility
We draw your attention to a combination of inflationary pressures (leading to higher interest rates) and recent failures/stress in banking systems which have significantly increased the potential for constrained credit markets, negative capital value movements and enhanced volatility in property markets over the short -to -medium term.

Experience has shown that consumer and investor behavior can quickly change during periods of such heightened volatility. Lending or investment decisions should reflect this heightened level of volatility and the potential for deteriorating market conditions.

CBRE VALUATION & ADVISORY SERVICES
© 2024 CBRE, INC
17-18

Executive Summary
It is important to note that the conclusions set out in this report are valid as of the valuation date only.

Where appropriate, we recommend that the valuation is closely monitored, as we continue to track how markets respond to evolving events.

Extraordinary Assumptions
An extraordinary assumption is defined as "an assignment -specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions." 1
• The subject Eastbluff Park is a highly irregularly shaped parcel. The irregular shape could impact its development potential. Because the intended use of this appraisal is to set park in -lieu fees, we have not considered the shape of the subject when adjusting the comparables.

Hypothetical Conditions
A hypothetical condition is defined as "a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results but is used for the purposes of analysis." 2
• The client requested that the subject property be appraised assuming the site were vacant unimproved residential land at a density of 14 units per acre. Therefore, none of the park equipment or improvements were considered in this analysis. The subject is appraised on an unentitled residential land basis. In addition, we were instructed to assume that no future lots would have view potential, that the sites were nearly level, and that the property had utilities available. The use of this hypothetical condition may have affected the assignment results.

Ownership and Property History
The subject is owned by the City of Newport Beach. CBRE is unaware of any arm's length ownership transfers of the property within three years of the date of appraisal. Further, the property is not reportedly being offered for sale as of the current date.

Exposure/Marketing Time
Current appraisal guidelines require an estimate of a reasonable time period in which the subject could be brought to market and sold. This reasonable time frame can either be examined historically or prospectively. In a historical analysis, this is referred to as exposure time. Exposure time always precedes the date of value, with the underlying premise being the time a property would have been on the market prior to the date of value, such that it would sell at its appraised value as of the date of value. On a prospective basis, the term marketing time is most often used. The exposure/marketing time is a function of price, time, and use. It is not an isolated estimate of time alone. The following table presents our estimates.
1 The Appraisal Foundation, USPAP, 2024 Edition (Effective January 1, 2024) 2 The Appraisal Foundation, USPAP, 2024 Edition (Effective January 1, 2024) CBRE VALUATION & ADVISORY SERVICES v © 2024 CBRE, INC
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Executive Summary

EXPOSURE/MARKETING TIME DATA
Exposure/Mktg. (Months)
Investment Type Range
CBRE Exposure Time Estimate 6 - 12 Months
CBRE Marketing Period Estimate 6 - 12 Months
Various Sources Compiled by CBRE
CBRE VALUATION & ADVISORY SERVICES vi © 2024 CBRE, INC
17-20

Table of Contents
Table of Contents
Certification........................................................................................................................................................................ i SubjectPhotographs...................................................................................................................................................... ii
ExecutiveSummary....................................................................................................................................................... iv
Tableof Contents..........................................................................................................................................................vii Scopeof Work....................................................................................................................................................................1 AreaAnalysis....................................................................................................................................................................5 NeighborhoodAnalysis..................................................................................................................................................7 SiteAnalysis......................................................................................................................................................................9 Zoning.................................................................................................................................................................................13 Taxand Assessment Data..........................................................................................................................................15 MarketAnalysis..............................................................................................................................................................16 Highestand Best Use....................................................................................................................................................21 LandValue.......................................................................................................................................................................22 Reconciliationof Value................................................................................................................................................27 Assumptions and Limiting Conditions...................................................................................................................28

ADDENDA
A Land Sale Data Sheets
B Qualifications
CBRE VALUATION & ADVISORY SERVICES vii © 2024 CBRE, INC 17-21

Scope of Work
Scope of Work
This Appraisal Report is intended to comply with the real property appraisal development and reporting requirements set forth under Standards Rule 1 and 2 of USPAP. The scope of the assignment relates to the extent and manner in which research is conducted, data is gathered, and analysis is applied.

Intended Use Of Report
The intended use of the appraisal is to assist the City of Newport Beach in establishing Park In -Lieu fees and no other use is permitted.

Client
The client is the City of Newport Beach.

Intended User Of Report
This appraisal is to be used by the City of Newport Beach. No other user(s) may rely on our report unless as specifically indicated in this report.

Intended users are those who an appraiser intends will use the appraisal or review report. In other words, appraisers acknowledge at the outset of the assignment that they are developing their expert opinions for the use of the intended users they identify. Although the client provides information about the parties who may be intended users, ultimately it is the appraiser who decides who they are. This is an important point to be clear about: The client does not tell the appraiser who the intended users will be. Rather, the client tells the appraiser who the client needs the report to be speaking to, and given that information, the appraiser identifies the intended user or users. It is important to identify intended users because an appraiser's primary responsibility regarding the use of the report's opinions and conclusions is to those users. Intended users are those parties to whom an appraiser is responsible for communicating the findings in a clear and understandable manner. They are the audience. 3
Reliance Language
Reliance on any reports produced by CBRE under this Agreement is extended solely to parties and entities expressly acknowledged in a signed writing by CBRE as Intended Users of the respective reports, provided that any conditions to such acknowledgement required by CBRE or hereunder have been satisfied. Parties or entities other than Intended Users who obtain a copy of the report or any portion thereof (including Client if it is not named as an Intended User), whether as a result of its direct dissemination or by any other means, may not rely upon any opinions or conclusions contained in the report or such portions thereof, and CBRE will not be responsible for any unpermitted use of the report, its conclusions or contents or have any liability in connection therewith. 3 Appraisal Institute, The Appraisal of Real Estate, 151h ed. (Chicago: Appraisal Institute, 2020), 40.

CBRE VALUATION & ADVISORY SERVICES
© 2024 CBRE, INC
17-22

Scope of Work
Purpose of the Appraisal
The purpose of this appraisal is to develop an opinion of the fair market value of the land associated with the subject, assuming it is vacant, unimproved land as of the effective date of the appraisal.

Definition of Fair Market Value
"Fair Market Value", as defined pursuant to Part 3, Title 7, Chapter 9, Article 4, of the California Code of Civil Procedure, entitled: Eminent Domain Law, is as follows:

Fair Market Value ... Article 4.

Measure of Compensation for Property Taken.
1263.320 (a) 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 doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available.
(b) The fair market value of the property taken for which there is no relevant, comparable market is its value on the date of valuation as determined by any method valuation that is just and equitable.
1263.330 The fair market value of the property taken shall not include any increase or decrease in the value of the property that is attributable to any of the following:
(a) The project for which the property is taken.
(b) The eminent domain proceeding in which the property is taken. (c) Any preliminary actions of the plaintiff relating to the taking of the property.

Interest Appraised
The value estimated represents Fee Simple Estate as defined below:

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. 4
Extent to Which the Property is Identified
The property is identified through the following sources:
• Postal address
• Assessor's records
• Legal description
4 Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022), 73.

CBRE VALUATION & ADVISORY SERVICES 2 © 2024 CBRE, INC
17-23

Scope of Work
Extent to Which the Property is Inspected
Tom Richardson, MAI conducted an on -site inspection of the subject, as well as its surrounding environs on the effective date of appraisal. This inspection was considered adequate and is the basis for our findings.

Type and Extent of the Data Researched
CBRE reviewed the following:
• Applicable tax data
• Zoning requirements
• Flood zone status
• Demographics
• Comparable data
Type and Extent of Analysis Applied
CBRE, Inc. analyzed the data gathered through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. For vacant land, the sales comparison approach has been employed for this assignment.

Statement of Competency
The appraisers have the appropriate knowledge, education, and experience to complete this assignment competently.

Appraisal Methodology
In appraisal practice, an approach to value is included or omitted based on its applicability to the property type being valued and the quality and quantity of information available. Depending on a specific appraisal assignment, any of the following four methods may be used to determine the market value of the fee simple interest of land:
• Sales Comparison Approach;
• Income Capitalization Procedures;
• Allocation; and
• Extraction.

The following summaries of each method are paraphrased from the text.

The first is the sales comparison approach. This is a process of analyzing sales of similar, recently sold parcels in order to derive an indication of the most probable sales price (or value) of the property being appraised. The reliability of this approach is dependent upon (a) the availability of comparable sales data, (b) the verification of the sales data regarding size, price, terms of sale, etc., (c) the degree of comparability or extent of adjustment necessary for differences between the subject and the comparables, and (d) the absence of nontypical conditions affecting the sales price. This is the primary and most reliable method used to value land (if adequate data exists).

The income capitalization procedures include three methods: land residual technique, ground rent capitalization, and Subdivision Development Analysis. A discussion of each of these three techniques is presented in the following paragraphs.

CBRE VALUATION & ADVISORY SERVICES 3 © 2024 CBRE, INC
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Scope of Work
The land residual method may be used to estimate land value when sales data on similar parcels of vacant land are lacking. This technique is based on the principle of balance and the related concept of contribution, which are concerned with equilibrium among the agents of production--i.e. labor, capital, coordination, and land. The land residual technique can be used to estimate land value when: 1) building value is known or can be accurately estimated, 2) stabilized, annual net operating income to the property is known or estimable, and 3) both building and land capitalization rates can be extracted from the market. Building value can be estimated for new or proposed buildings that represent the highest and best use of the property and have not yet incurred physical deterioration or functional obsolescence.

The subdivision development method is used to value land when subdivision and development represent the highest and best use of the appraised parcel. In this method, an appraiser determines the number and size of lots that can be created from the appraised land physically, legally, and economically. The value of the underlying land is then estimated through a discounted cash flow analysis with revenues based on the achievable sale price of the finished product and expenses based on all costs required to complete and sell the finished product.

The ground rent capitalization procedure is predicated upon the assumption that ground rents can be capitalized at an appropriate rate to indicate the market value of a site. Ground rent is paid for the right to use and occupy the land according to the terms of the ground lease; it corresponds to the value of the landowner's interest in the land. Market -derived capitalization rates are used to convert ground rent into market value. This procedure is useful when an analysis of comparable sales of leased land indicates a range of rents and reasonable support for capitalization rates can be obtained.

The allocation method is typically used when sales are so rare that the value cannot be estimated by direct comparison. This method is based on the principle of balance and the related concept of contribution, which affirm that there is a normal or typical ratio of land value to property value for specific categories of real estate in specific locations. This ratio is generally more reliable when the subject property includes relatively new improvements. The allocation method does not produce conclusive value indications, but it can be used to establish land value when the number of vacant land sales is inadequate.

The extraction method is a variant of the allocation method in which land value is extracted from the sale price of an improved property by deducting the contribution of the improvements, which is estimated from their depreciated costs. The remaining value represents the value of the land. Value indications derived in this way are generally unpersuasive because the assessment ratios may be unreliable and the extraction method does not reflect market considerations.

For the purposes of this analysis, we use only the sales comparison approach in developing an opinion of value for the subject. This approach is applicable to the subject because there is an active market for similar properties, and sufficient sales data is available for analysis.

The cost approach is not applicable because we have been instructed to value the site as if it is vacant land and therefore, we do not consider any of the improvements. The income approach is not applicable because the subject is not likely to generate rental income in its current state.

CBRE VALUATION & ADVISORY SERVICES 4 © 2024 CBRE, INC
17-25

Area Analysis
Area Analysis
hawinorne Norwalk
Compton
Fullerton
Torrance Carson Anaheim
f
L
M7 GB Orange
Long Beach qW
Westminster Santa Ana
� v
Huntington Irvine
Beach
Newport Beach
O
IBlawdbo:
71 Corona
Lak
Lake Forest
Mission Viejo
74 74
Laguna Niguel San Mateo Canyon
Wilderness
San Clemente
I Map[— rC�enS[reef Map
The subject is located in Orange County. Key information about the area is provided in the following tables.

Population
The area has a population of 3,171,875 and a AREA POPULATION BYAGE median age of 40, with the largest population 500,000
group in the 20-29 age range and the smallest 400,000
00,000
population in 80+ age range. 300,000
100,000 I '
0 Source: ESRI 0-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80+ Population has increased by 161,664 since 2010, POPULATION BY YEAR reflecting an annual increase of 0.4%. Population 4,000,000 is projected to decrease by 2,549 between 2024 3,000,000 and 2029, reflectinga 0.0% annual population P p 2,000,000 decline.
1,000,000
0 Source: ESRI 2010
Source: ESRI, downloaded on Jul, 25 2024
CBRE VALUATION & ADVISORY SERVICES 5
2024 2029
© 2024 CBRE, INC
17-26

Area Analysis
Income
The area features an average household income
of $157,826 and a median household income of
$112,796. Over the next five years, median
household income is expected to increase by

15.0%, or $3,394 per annum.

Education
A total of 46.2% of individuals over the age of 24
have a college degree, with 29.2% holding a
bachelor's degree and 16.9% holding a graduate
degree.

Employment

MEDIAN INCOME BY YEAR
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
Source: ESRI 2024 2029

POPULATION BY DEGREE
■ Bachelor's Degree
■ Graduate Degree
■ Other
Source: ESRI
Health Care/Social Assistance
Manufacturing
Prof/Scientific/Tech Services
Retail Trade
Educational Services
Accommodation/Food Services
Construction
Finance/Insurance
Other Services (excl Publ Adm)
Admin/Support/Waste Mgmt Srvcs
Source: ESRI 0% 2% 4% 6% 8% 10% 12% 14%
The area includes a total of 1,627,211 employees. The top three industries within the area are Health Care/Social Assistance, Manufacturing and Prof/Scientific/Tech Services, which represent a combined total of 35% of the workforce.

Source: ESRI, downloaded on Jul 25, 2024; BLS.gov dated Jan 0, 1900 In summary, the area is forecasted to experience a decrease in population and an increase in household income.

CBRE VALUATION & ADVISORY SERVICES
6 © 2024 CBRE, INC
17-27

Neighborhood Analysis
Neighborhood Analysis
Adams Ave John Wayne Airport ryy'

SANTAANA

COUNTRY SAN JOAOUIN
+ Costa Mesa CLUB O + MARSH UNIVERS
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Location
The subject is in the city of Newport Beach and is considered a suburban location. The city of Newport Beach is situated in southern Orange County.

Boundaries
The subject is located in a primarily residential area within the City of Newport Beach. This area is generally delineated as follows:

North: Upper Newport Bay
South: West Coast Highway / State Route 1
East: MacArthur Boulevard
West: Upper Newport Bay
Land Use
In the immediate vicinity of the subject, land uses include a mix of residential and commercial.

Access
Primary access to the area is provided by Jamboree Road and MacArthur Boulevard, major arterials that cross Orange County in a north/south direction. Access to the subject from Jamboree Road is provided CBRE VALUATION & ADVISORY SERVICES 7 © 2024 CBRE, INC
17-28

Neighborhood Analysis
by Eastbluff Drive. Access to the subject from MacArthur Boulevard is provided by University Drive, which becomes Eastbluff Drive at Jamboree Road. Overall, vehicular access is average.

Public transportation is provided by Orange County Transportation Authority. The nearest bus stop is located at the intersection of Eastbluff Drive and Vista Del Sol, approximately 500 feet east of the subject.

The local market perceives public transportation as average compared to other areas in the region.

However, the primary mode of transportation in this area is the automobile. John Wayne Airport is located about three miles northeast from the property.

Demographics
Selected neighborhood demographics in 1-, 3- and 5-mile radius from the subject are shown in the following table:

SELECTED NEIGHBORHOOD DEMOGRAPHICS
2555 Vista del Oro
1 Mile Radius
3 Mile Radius
5 Mile Radius
California
Orange County
Newport Beach, CA 92660
Population
2029 Total Population
10,764
152,360
353,590
39,717,178
3,169,326
2024 Total Population
10,828
151,301
347,686
39,530,491
3,171,875
2010 Total Population
10,656
141,406
322,406
37,253,959
3,010,211
2000 Total Population
9,600
132,419
298,017
33,871,651
2,846,214
Annual Growth 2024 - 2029
-0.12%

0.14%

0.34%

0.09%
-0.02%
Annual Growth 2010 - 2024

0.11 %

0.48%

0.54%

0.42%

0.37%
Annual Growth 2000 - 2010

1.05%

0.66%

0.79%

0.96%

0.56%
Households
2029 Total Households
5,015
63,493
143,923
13,903,885
1,123,363
2024 Total Households
4,913
61,200
136,878
13,641,471
1,090,541
2010 Total Households
4,922
57,790
124,666
12,577,497
992,769
2000 Total Households
4,723
52,917
114,690
11,502,868
935,264
Annual Growth 2024 - 2029

0.41 %

0.74%

1.01 %

0.38%

0.59%
Annual Growth 2010 - 2024
-0.01 %

0.41 %

0.67%

0.58%

0.67%
Annual Growth 2000 - 2010

0.41 %

0.88%

0.84%

0.90%

0.60%
Income
2024 Median Household Income
$152,459
$123,456
$118,322
$97,646
$112,796
2024 Average Household Income
$213,313
$183,072
$171,903
$139,308
$157,826
2024 Per Capita Income
$97,473
$74,230
$67,907
$48,206
$54,311
2024 Pop 25+ College Graduates
5,833
65,335
144,683
10,659,207
1,035,382
Age 25+ Percent College Graduates - 2024

71.4%

61.7%

59.2%

38.8%

46.2%
Source: ESRI
Conclusion
In keeping with the principle of conformity, we expect neighborhood land uses to continue to be suburban, similar to the present use. A generally negative population growth rate is expected in the near future. This is a negative indicator for real estate demand. However, the limited supply of available property combined with macroeconomic conditions will continue to bolster the local real estate market.

CBRE VALUATION & ADVISORY SERVICES 8 © 2024 CBRE, INC
17-29

Site Analysis
Site Analysis
The following chart summarizes the salient characteristics of the subject site.

SITE SUMMARY AND ANALYSIS
Physical Description
Gross Site Area
Net Site Area
Primary Road Frontage
Shape
Topography
Parcel Number(s)
Zoning District
Flood Map Panel No. & Date
Flood Zone
Utilities
Water
Sewer
Natural Gas
Electricity
Telephone/Cable/Internet
Mass Transit
Various sources compiled by CBRE
Location

13.87 Acres 604,177 Sq. Ft.

Vista Del Oro 1,192 Feet
Irregular
Level, At Street Grade
440-161-01
PR, Parks and Recreation
06059CO269K 21-Mar-19
Zone X(Unshaded)
Availability
Comments
Yes
City of Newport Beach
Yes
City of Newport Beach
Yes
Southern California Gas Company
Yes
Southern California Edison
Yes
Various
Yes
OCTA
The subject is on the west side of Vista Del Oro at its intersection with Vista Del Sol.

Land Area
The land area size was obtained via the Orange County Assessor's plat map. The site is considered adequate in terms of size and utility. There is no unusable, excess or surplus land area.

Shape and Frontage
The site is a highly irregularly shaped parcel with frontage along one thoroughfare. The irregular shape could impact its development potential. However, because the intended use of this appraisal is to set park in -lieu fees, we have not considered the shape of the subject when adjusting the comparables.

Ingress/Egress
Ingress and egress are available to the subject from three curb cuts along Vista Del Oro.

Vista Del Oro, at the subject, is a north/south street that has a dedicated width of 60 feet and is improved with one lane of traffic in each direction. Street improvements include asphalt paving and concrete curbs, gutters and sidewalks, and street lighting. Street parking is permitted.

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© 2024 CBRE, INC
17-30

Site Analysis
Topography and Drainage
The site is generally level and at street grade. The topography of the site is not seen as an impediment to the development of the property. During our inspection of the site, we observed no drainage problems and assume that none exist.

Soils
A soils analysis for the site has not been provided for the preparation of this appraisal. In the absence of a soils report, it is a specific assumption that the site has adequate soils to support the highest and best use.

Easements and Encroachments
We were not provided a current title report to review. There are no known easements or encroachments impacting the site that are considered to affect the marketability or highest and best use. It is recommended that the client/reader obtain a current title policy outlining all easements and encroachments on the property, if any, prior to making a business decision.

Covenants, Conditions and Restrictions
There are no known covenants, conditions or restrictions impacting the site that are considered to affect the marketability or highest and best use. It is recommended that the client/reader obtain a copy of the current covenants, conditions and restrictions, if any, prior to making a business decision.

Utilities and Services
The site includes all municipal services, including police, fire and refuse garbage collection. All utilities are available to the site in adequate quality and quantity to service the highest and best use.

Environmental Issues
Although CBRE was not provided an Environmental Site Assessment (ESA), a tour of the site did not reveal any obvious issues regarding environmental contamination or adverse conditions.

Adjacent Properties
The adjacent land uses are summarized as follows:

North: Multifamily residential and Eastbluff Elementary School South: Multifamily residential
East: Mix of commercial and multifamily residential
West: Upper Newport Bay State Marine Conservation Area
Conclusion
The subject is irregularly shaped and narrow in the middle of the site, however, we assume that this would not impact the development of the site to a density of 14 units per acre. We are not aware of any other particular restrictions on development.

CBRE VALUATION & ADVISORY SERVICES 1( © 2024 CBRE, INC
17-31

Site Analysis
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CBRE VALUATION & ADVISORY SERVICES 11 C 2024 CBRE, INC
17-32

Site Analysis
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CBRE VALUATION & ADVISORY SERVICES
12 © 2024 CBRE, INC
17-33

Zoning
Zoning
The subject is currently zoned PR, Parks and Recreation. However, we have been instructed by our client to assume the site is vacant and zoned for multifamily residential with a maximum density of 14 dwelling units per acre. The subject is appraised on an unentitled residential land basis. In addition, we were instructed to assume that no future lots would have view potential, that the sites were nearly level, and that the property had utilities available. The following chart summarizes the subject's zoning requirements.

ZONING SUMMARY
Current Zoning
PR, Parks and Recreation
Legally Conforming
Yes
Zoning Change
Yes
Category
Zoning Requirement
Minimum Lot Size
None specified
Minimum Lot Width
None specified
Maximum Height
None specified
Maximum Density
Assume 14 dwelling units per acre
Source: Newport Beach Planning and Zoning Dept.

Conclusion
Additional information may be obtained from the appropriate governmental authority. For purposes of this appraisal, CBRE has assumed the information obtained is correct.

CBRE VALUATION & ADVISORY SERVICES 13 © 2024 CBRE, INC
17-34

Zoning
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CBRE VALUATION & ADVISORY SERVICES 14 © 2024 CBRE, INC
17-35

Tax and Assessment Data
Tax and Assessment Data
In California, privately held real property is typically assessed at 100% of full cash value (which is interpreted to mean market value of the fee simple estate) as determined by the County Assessor.

Generally, a reassessment occurs only when a property is sold (or transferred) or when new construction occurs (as differentiated from replacing existing construction). In the case of long-term ground leases, the general rule is that a reassessment is made at the time of assigning or terminating a lease where the remaining term is more than 35 years. For reassessment purposes, the lease term includes all options to extend. Assessments for properties that were acquired before the tax year 1975-1976 were stabilized as of the tax year 1975-1976. Property taxes are limited by state law to 1 % of the assessed value plus voter - approved obligations and special assessments. If no sale (or transfer) occurs or no new building takes place, assessments may not increase by more than 2% annually.

The subject property is owned by the City of Newport Beach and therefore it is not subject to real estate taxes. It is located in tax rate area 07-042 which carries a 2023-2024 base tax rate of 1.04830%.

Conclusion
If the subject sold for the value estimate in this report, a reassessment at that value would most likely occur, with tax increases limited to two percent annually thereafter until the property is sold again.

CBRE VALUATION & ADVISORY SERVICES 15 © 2024 CBRE, INC
17-36

Market Analysis
Market Analysis
The subject is located along the west side of Vista Del Oro, at its intersection with Vista Del Sol, in a residential area of the City of Newport Beach. Given prevailing land use patterns and our client's instruction that the subject be analyzed as vacant land with a maximum density of 14 dwelling units per acre, the most likely use is multifamily residential. As such, we have included a multifamily market analysis.

Newport Beach Submarket
Important characteristics of the Newport Beach apartment market are summarized below:

NEWPORT BEACH APARTMENT SUBMARKET
Year Ending
Inventory Completions Occupied Stock Occupancy Asking Rent Asking Rent Net Absorption (Units) (Units) (Units) ($/Unit / Mo.) Change (Units)
2014
8,908
0 8,491

95.3%
$2,393

4.02%
95 2015
8,854
-54
8,473

95.7%
$2,503

4.57%
-19
2016
8,854
0 8,346

94.3%
$2,551

1.91 %
-128
2017
9,405
551
8,747

93.0%
$2,567

0.66%
400
2018
9,405
0 8,867

94.3%
$2,641

2.87%
120
2019
9,405
0 8,910

94.7%
$2,775

5.08%
44 2020
9,291
-114
8,876

95.5%
$2,807

1.16%
-33
2021
9,291
0 9,203

99.1 %
$3,299

17.52%
327
2022
9,291
0 9,098

97.9%
$3,305

0.18%
106
----------------------------------------------------------------------------------------------------------------------------------------------------- Q12023
9,291
0 9,057

97.5%
$3,285
-0.62%
-41
Q2 2023
9,291
0 9,066

97.6%
$3,391

3.24%
9 Q3 2023
9,291
0 9,054

97.5%
$3,479

2.60%
-12
Q4 2023
9,291
0 9,025

97.1 %
$3,548

1.97%
-29
----------------------------------------------------------------------------------------------------------------------------------------------------- 2023
9,291
0 9,025

97.1 %
$3,548

7.34%
-73
----------------------------------------------------------------------------------------------------------------------------------------------------- Q12024
9,291
0 8,981

96.7%
$3,381
-4.69%
-44
Q2 2024"
9,291
0 8,956

96.4%
$3,391

0.28%
-25
Q3 2024"
9,290
-1
8,951

96.3%
$3,415

0.71 %
-6
Q4 2024"
9,289
1 8,949

96.3%
$3,405
-0.28%
-2
----------------------------------------------------------------------------------------------------------------------------------------------------- 2024'
9,289
-2
8,949

96.3%
$3,405
-4.01 %
-77
2025'
9,286
-3
8,938

96.2%
$3,554

4.37%
-11
2026'
9,283
-3
8,938

96.3%
$3,689

3.80%
0 2027'
9,279
-4
8,956

96.5%
$3,815

3.40%
18 2028*
9,276
-3
8,961

96.6%
$3,937

3.22%
4 2029*
9,273
-3
8,957

96.6%
$4,065

3.26%
-3
"Future Projected Data according to Costar
Source: Costar, 1st Quarter 2024
The Newport Beach apartment submarket consists of approximately 9,291 units of apartment space. The current submarket inventory represents approximately 3.7% of the overall market inventory. The following observations were noted from the table above:
• As of 1st Quarter 2024, there were approximately 8,981 units of occupied apartment space, resulting in an occupancy rate of 96.7% for the submarket. This reflects a decrease from the previous quarter's occupancy of 97.1 %, and a small decrease from an occupancy rate of 97.1 % from last year. The submarket occupancy is above the 96.0% market occupancy. • The submarket experienced negative 44 units of net absorption for the current quarter. This indicates a decline from the previous quarter's negative 29 units of net absorption, and an improvement from the negative 73 units of net absorption from a year ago. The submarket's CBRE VALUATION & ADVISORY SERVICES 16 © 2024 CBRE, INC
17-37

Market Analysis
current net absorption of negative 44 units is below the overall market net absorption of positive 78 units.
• The submarket had zero completions for the current quarter, which indicates no change from the previous quarter's zero completions, and no change from the zero completions from last year. • The submarket achieved average asking rent of $3,381 per unit, which indicates a decrease from the previous quarter's asking rent of $3,548 per unit, and a decrease from the asking rent of $3,548 per unit from last year. The submarket's current asking rent of $3,381 per unit compares favorably with the overall market asking rent of $2,613 per unit.

Historical Inventory - Submarket
INVENTORY: NEWPORT BEACH APARTMENT MARKET
300,000
242,560 243,954 245,477 249,218 250, GM253,778
257,551 258,603 260,967 263,922 267,110
250,000 237,372
224,180
227,096 228,625 233,329 _ _ pool M - W
200,000
150,000
100,000
50,000
0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024' 2025' 2026' 2027' 2028' 2029' Market Submarket
Future Projected Cata according to Costar
Source Costar; 1st Quarter 2024
Submarket Inventory is projected to be 9,289 units at the end of the current year, which represents a small decrease from the previous year's submarket inventory of 9,291 units. Inventory for next year is projected to be 9,286 units, reflecting a small decrease from the current year.

CBRE VALUATION & ADVISORY SERVICES 17 © 2024 CBRE, INC
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Market Analysis
Historical Occupancy - Submarket
100.0%

95.0%

98.0%
OCCUPANCY: NEWPORT BEACH APARTMENT MARKET

99.1%

97.0% 96.3% 96.2% 953% 96.5%

46.6% 96.5%

96.0%
963%

95.0% 99 7%

94.0%

93.0%

92.0%

91.0%

90.0%

89.0%
2014 2015 2015 2017 2019 2019 2020 2021 2022 2023 2024- 2025- 2026' 2027- 2028' 2029' Market Submarket
' Future Projected Data according to Costar
Source: Costar. 1st Quarter 2024
Submarket occupancy is projected to be 96.3% at the end of the current year, which represents a decrease from the previous year's submarket occupancy of 97.1 %. Submarket occupancy for next year is projected to be 96.2%, reflecting a small decrease from the current year.

Historical Net Absorption - Submarket
a,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0 -1,000
-2,000
' Future Projected Data according to Coster
Source: Costar. 1st Quarter 2024
NET ABSORPTION: NEWPORT BEACH APARTMENT MARKET
7,126
-1,55b
Market —o—submarket
Net absorption in the submarket is projected to be negative 77 units at the end of the current year, reflecting a decline from the previous year's net absorption of negative 73 units. Net absorption for next year is projected to be negative 11 units, indicating an improvement from the current year.

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Market Analysis
Historical Completions - Submarket
6,000
5,000
4,000
3,000
2,000
1,000
0 ' Future Projected Data according to Costar
COMPLETIONS: NEWPORT BEACH APARTMENT MARKET
5,188
Market -o-submarket
Source: Costar. 1st Quarter 2024
The submarket is projected to achieve completions of negative 2 units at the end of the current year, which indicates a decline from the previous year's zero completions. The submarket is projecting completions of negative 3 units for next year, which indicates a decline from the current year.

Historical Asking Rent - Submarket
ASKING RENT: NEWPORT BEACH APARTMENT MARKET
$4,500
$4,000 $3,548 $3,554
$4,a6s
$3815 $3,937
$3,689
$3,500 $3,299 $3,305 $3,405
$3,000 $2,775 $2,807
$2,503 52,551 $2,567 $2,541
$2,393
$2,500
$2,000
$1,500 981 $3,073
$1,000
$500
$0
2014 2015 2015 2017 2018 2019 2020 2021 2022 2023 2024' 2025' 2026' 2027' 2028' 2029' Market --Q--Submarkat
' Future Projected Data according to Coster
Source_ Costar, 1st Quarter 2024
The submarket is projected to achieve average asking of $3,405 per unit at the end of the current year, which represents a decrease from the previous year's asking rent of $3,548 per unit. The submarket is projected to achieve average asking rent of $3,554 per unit, reflecting an increase from the current year.

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Market Analysis
Conclusion
Overall, the information on the improved multifamily market shows generally level occupancy rates and increasing rental rates. Net absorption was negative overall in 2023 and there is no new construction activity in the subject submarket. Generally speaking, brokers are reporting that the interest rate increases, and high construction costs have impacted price levels for multifamily land. Overall, the improved multifamily market is performing well and showing positive indicators, but the multifamily land market has remained flat since approximately the end of June 2022. Newport Beach remains a desirable multifamily market due to its location and limited availability of sites for new multifamily development.

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Highest and Best Use
Highest and Best Use
In appraisal practice, the concept of highest and best use represents the premise upon which value is based. The four criteria the highest and best use must meet are:
• Legally permissible;
• Physically possible;
• Financially feasible; and
• Maximally productive.

The highest and best use analysis of the subject is discussed below.

As Vacant
Legal Permissibility
The subject is currently zoned PR, Parks and Recreation. However, we have been instructed by our client to assume the site is vacant and zoned for multifamily residential with a maximum density of 14 dwelling units per acre. Therefore, none of the park equipment or improvements was considered in this analysis.

The subject is appraised on an unentitled residential land basis. In addition, we were instructed to assume that no future lots would have view potential, that the sites were nearly level, and that the property had utilities available. Given our client's instructions, only multifamily use is given further consideration in determining the highest and best use of the site as vacant.

Physical Possibility
The subject site is irregularly shaped and is narrow in the middle of the site, which could impact its development potential. Because the intended use of this appraisal is to set park in -lieu fees, we assume that the shape of the subject would not prohibit development of the subject to a density of 14 units per acre and have not considered the shape of the subject in our determination of highest and best use. The subject is adequately served by utilities, and has an adequate shape and size, sufficient access, etc., to be a separately developable site. There are no known physical reasons why the subject site would not support any legally probable development (i.e. it appears adequate for development).

Financial Feasibility
Potential uses of the site include multifamily. The determination of financial feasibility is dependent primarily on the relationship of supply and demand for the legally probable land uses versus the cost to create the uses. Based on our analysis of the market, there is currently adequate demand for multifamily development in the subject's area. Therefore, this use is considered to be currently financially feasible.

Maximum Productivity - Conclusion
The final test of highest and best use of the site as if vacant is that the use be maximally productive, yielding the highest return to the land.

Our analysis of the subject and its respective market characteristics indicate the most likely buyer, as if vacant, would be a developer.

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Land Value
Land Value
The following map and table summarize the comparable data used in the valuation of the subject site. A detailed description of each transaction is included in the addenda. kl
0 mapbox
(o,
Mapbox, © OpenStreetMap

5.62 244,807

22.95 129
$9,252,669
$21241
$403,101
7225 Edinger Ave.

Simple/Freehold
Edinger Corridor
Huntington Beach, CA 92647
Specific Plan
2 11 Proposed Multifamily Units
Sale
Nov-22
Fee
RM, Multiple
$3,700,000
$3,700,000
0,35
15,246
31,43
11 $10,571,429
$242,69
$336,364
1526 Placentia Avenue
Simple/Freehold
Residential
Newport Beach, CA 92663
3 18 Unit Attached Condominium Site
Sale
Jul-22
Fee
R-3
$5,700,000
$5,700,000
0,94
40,946

19.15 18
$6,063,830
$139.21
$316,667
17532 Cameron Lane
Simple/Freehold
Huntington Beach, CA 92647
4 Detached Condominium Site
Sale
Sep-21
Fee

1.9 OC Great Park
$31,809,500
$31,809,500
6,26
272,612

9.59 60
$5,082,770
$116.68
$530,158
Vicinity of Lynx and Astor
Simple/Freehold
Irvine, CA 92618
5 Detached Condominium Site
Sale
Jun-21
Fee

1.9 OC Great Park
$19,781,000
$19,781,000

4.39 191,228
843
37 $4,505,923
$103.44
$534,622
NW of Merit and Cadence
Simple/Freehold
Irvine, CA 92618
6 Mariner Square
Sale
Dec-19
Fee
RM-6000, Multi -unit
$58,000,000
$58,000,000
5,83
253,955
15,78
92 $9,948,542
$228,39
$630,435
12441,ine Ave.

Simple/Freehold
Residential Zone
Newport Beach, CA 92660
Subject 2555 Vista del r
---
---
PR, Parks and
---
---

13.87 604,177

14.00 194
---
---
---
Newport Beach, CA 92660
Recreation
' Adjustetl sale price for cash equivalency and/or development costs (where applicable)
Compiled by CBRE
The sales utilized represent the best data available for comparison with the subject and were selected from the greater Newport Beach area. We initially searched for sites up to 25 acres but were unable to uncover transactions of sites similar in size to the subject. Due to the lack of recent transactions in Newport Beach that are of similar size and density, we expanded our search to include sites of up to approximately seven acres that closed between Year -End 2019 to the date of value.

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Land Value
Discussion/Analysis of Land Sales
Conditions of Sale/Financing
All sales were indicated to be cash -to -seller transactions or financed by a third party at market terms, and none appeared to occur under duress. As such, no adjustments for cash equivalency were necessary. In addition, the sales reflected arm's length transactions; therefore, no adjustments for conditions of sale were warranted. Details of each of the comparable are located on the data sheets in the addenda of this report.

Market Conditions
Based on the market data and broker interviews, we have utilized an upward market conditions adjustment of 6% per year through June 2022 for improving market conditions. No adjustment is applied from July 2022 to the date of value, as land values have remained flat.

Location
Our adjustments are based on the difference between rental rates for multifamily residential units within a one -mile radius of the subject and a one -mile radius of each of the comparable sales. Based on this information, Comparables 1, 2, 3, 4, and 5 required upward adjustments to varying degrees.

Frontage/Access
The subject has an interior orientation with ingress/egress along one street, Vista Del Oro. Compared to the subject Comparables 4, 5, and 6 required downward adjustments for their superior corner orientations.

Size
Considers the inverse relationship that often exists between parcel size and unit value. Compared to the subject, each of the sales require a downward adjustment to varying degrees due to economies of scale.

Shape
We assume that the shape of the subject would not prohibit development of the subject to a density of 14 units per acre, therefore, no adjustments were required.

Topography
The subject has relatively level topography. Each of the comparables have similar topography and required no adjustments.

Zoning/Density
Per our client's instructions, we assume the subject has a maximum density of 14 dwelling units per acre.

Since we have analyzed the sales on a price per unit basis, the difference in density between the subject and each of the comparables is not a major issue. However, we do apply minor adjustments for their differences. Comparables 4 and 5 were adjusted downward for their lower density. Lower density sites have more land area per unit and typically sell for a higher price per unit. Comparables 1, 2, and 3 were adjusted upward for their higher densities, as higher density sites typically sell for a lower price per unit, due to the lower ratio of land per unit.

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Land Value
Entitlements
Per our client's instruction, we assume the subject is unentitled multifamily residential land. We initially searched for sales of unentitled multifamily residential sites in the vicinity of the subject. Unfortunately, the majority of the comparable data we were able to uncover was entitled, with the exception of Comparable

2. We found that buyers of unentitled land take the land through the entitlement process during escrow and if entitlements are not achieved, the buyer does not close on the transaction. Based on our interviews, the sale price is reflective of an entitled price due to the seller sharing in the risk by having to hold the property for an extended period. Due to the lack of unentitled land sales, we have relied on entitled data and have adjusted for the value of the entitlements as part of the adjustment process. Based on conversations with brokers, an entitled property can command a premium ranging from 20% to 50% over raw, unentitled land. Comparables 1, 3, 4, 5, and 6 sold with entitlements and are adjusted downward.

Site Improvements
This adjustment accounts for site improvements on a site that require demolition prior to redevelopment.

Comparables 1, 2, and 6 had building improvements at their time of sale and required upward adjustments.

Views
Accounts for any scenic views for the multifamily units that are proposed within the development. No adjustments were required.

Summary of Adjustments
As in most analyses, each element of comparison is not weighted equally. For example, the location of a property as an element of comparison may outweigh its size, resulting in an overall rating of "inferior" to the subject, though there may be numerically more elements rated as "similar" in the comparison grid.

Certain elements balance the effect of other elements in each sale's comparison. Based on our comparative analysis, the following chart summarizes the adjustments warranted to each comparable.

CBRE VALUATION & ADVISORY SERVICES 24 © 2024 CBRE, INC
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Land Value

LAND SALES ADJUSTMENT GRID
Comparable Number
1 2
3 4
5 6
Subject
Transaction Type
Sale
Sale
Sale
Sale
Sale
Sale
---
Transaction Date
Jun-24
Nov-22
Jul-22
Sep-21
Jun-21
Dec-19
---
Interest Transferred
Fee
Fee
Fee
Fee
Fee
Fee
Simple/Freehold
Simple/Freehold
Simple/Freehold
Simple/Freehold
Simple/Freehold
Simple/Freehold
Zoning
SP14, Beach and
RM, Multiple
R-3

1.9 OC Great

1.9 OC Great
RM-6000, Multi-
PR, Parks and
Edinger Corridor
Residential
Park
Park
unit Residential
Recreation
Actual Sale Price
$52,000,000
$3,700,000
$5,700,000
$31,809,500
$19,781,000
$58,000,000
---
Adjusted Sale Price'
$52,000,000
$3,700,000
$5,700,000
$31,809,500
$19,781,000
$58,000,000
---
Size (Acres)

5.62 0.35

0.94 6.26

4.39 5.83

13.87 Size (SF)
244,807
15,246
40,946
272,612
191,228
253,955
604,177
Density (UPA)

22.95 31.43

19.15 9.59

8.43 15.78

14.00 Allowable Units
129
11 18
60 37
92 194
Price ($ Per Unit) $403,101 $336,364 $316,667 $530,158 $534,622 $630,435 Property Rights Conveyed 0% 0% 0% 0% 0% 0
Financing Terms'
0%
0%
0%
0%
0%
0 Conditions of Sale
0%
0%
0%
0%
0%
0 Market Conditions (Time)

0.0 %

5.0 %

6.5 %

15.0 Subtotal
$403,101
$336,364
$316,667
$556,666
$569,372
$725,000
Location
Inferior
Inferior
Inferior
Inferior
Inferior
Similar
Frontage/Access
Similar
Similar
Similar
Superior
Superior
Superior
Size
Superior
Superior
Superior
Superior
Superior
Superior
Shape
Similar
Similar
Similar
Similar
Similar
Similar
Topography
Similar
Similar
Similar
Similar
Similar
Similar
Zoning/Density
Inferior
Inferior
Inferior
Superior
Superior
Similar
Entitlements
Superior
Similar
Superior
Superior
Superior
Superior
Site Improvements
Inferior
Inferior
Similar
Similar
Similar
Inferior
Views
Similar
Similar
Similar
Similar
Similar
Similar
Overall Comparability Inferior Inferior Inferior Superior Superior Superior ' Adjusted sale price for cash equivalency and/or development costs (where applicable) Compiled by CBRE
Conclusion
Based on the foregoing discussion of comparability, the market data and the subject may be arrayed as shown below:

LAND VALUE ARRAY
Data No. Overall Comparison Time Adjusted Price Per Unit 6 Superior $725,000
5 Superior $569,372
4 Superior $556,666

SUBJECT PROPERTY
1 Inferior $403,101
2 Inferior $336,364
3 Inferior $316,667
Compiled by CBRE
The preceding analysis indicates a value within a range of $316,667 to $725,000 per unit. Based on the analysis of the comparable sales, we have bracketed the subject as inferior to Sale 4 and superior to Sale

1. Comparables 4, 5, and 6 are at the high end of the range and are ranked as superior overall. Comparable 4 has an inferior location but this adjustment is more than offset by its superior frontage/access, size, zoning/density, and entitlements. Comparable 5 has an inferior location but this adjustment is more than offset by its superior frontage/access, size, zoning/density, and entitlements. Comparable 6 has inferior site improvements but this adjustment is more than offset by its superior frontage/access, size, and entitlements.

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Land Value
Comparables 1, 2, and 3 are at the low end of the range and are ranked as inferior overall. Comparable 1 has an inferior location, zoning/density, and site improvements and these adjustments are only partially offset by its superior size and entitlements. Comparable 2 has an inferior location, zoning/density, and site improvements and these adjustments are only partially offset by its superior size. Comparable 3 has an inferior location and zoning/density and these adjustments are only partially offset by its superior size and entitlements.

Considering this information, the following table presents the valuation conclusion:

CONCLUDED LAND VALUE
$ Per Unit Subject Units Total
$425,000 x 194 = $82,450,000
Indicated Value: $82,450,000
Compiled by CBRE
The value equates to approximately $5,944,486 per acre or $136.47 per square foot. After considering the required adjustments, these conclusions are well within the range of our data and the value indications provided by market participants.

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Reconciliation of Value
Reconciliation of Value
In the sales comparison approach, the subject is compared to similar properties that have been sold recently. The sales used in this analysis are considered comparable to the subject, and the required adjustments were based on reasonable and well -supported rationale. Therefore, the sales comparison approach is considered to provide a reliable value indication.

Based on the foregoing, the fair market value of the subject has been concluded as follows:

Assumptions and Limiting Conditions
Assumptions and Limiting Conditions
CBRE, Inc. through its appraiser (collectively, "CBRE") has inspected through reasonable observation the subject property. However, it is not possible or reasonably practicable to personally inspect conditions beneath the soil and the entire interior and exterior of the improvements on the subject property.

Therefore, no representation is made as to such matters.

1. The report, including its conclusions and any portion of such report (the "Report"), is as of the date set forth in the letter of transmittal and based upon the information, market, economic, and property conditions and projected levels of operation existing as of such date. The dollar amount of any conclusion as to value in the Report is based upon the purchasing power of the U.S. Dollar on such date. The Report is subject to change as a result of fluctuations in any of the foregoing. CBRE has no obligation to revise the Report to reflect any such fluctuations or other events or conditions which occur subsequent to such date.

2. Unless otherwise expressly noted in the Report, CBRE has assumed that:
(i) Title to the subject property is clear and marketable and that there are no recorded or unrecorded matters or exceptions to title that would adversely affect marketability or value. CBRE has not examined title records (including without limitation liens, encumbrances, easements, deed restrictions, and other conditions that may affect the title or use of the subject property) and makes no representations regarding title or its limitations on the use of the subject property. Insurance against financial loss that may arise out of defects in title should be sought from a qualified title insurance company.
(ii) Existing improvements on the subject property conform to applicable local, state, and federal building codes and ordinances, are structurally sound and seismically safe, and have been built and repaired in a workmanlike manner according to standard practices; all building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required; and the roof and exterior are in good condition and free from intrusion by the elements. CBRE has not retained independent structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no representations relative to the condition of improvements. CBRE appraisers are not engineers and are not qualified to judge matters of an engineering nature, and furthermore structural problems or building system problems may not be visible. It is expressly assumed that any purchaser would, as a precondition to closing a sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity of building systems.
(iii) Any proposed improvements, on or off -site, as well as any alterations or repairs considered will be completed in a workmanlike manner according to standard practices. (iv) Hazardous materials are not present on the subject property. CBRE is not qualified to detect such substances.

The presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated groundwater, mold, or other potentially hazardous materials may affect the value of the property. (v) No mineral deposit or subsurface rights of value exist with respect to the subject property, whether gas, liquid, or solid, and no air or development rights of value may be transferred. CBRE has not considered any rights associated with extraction or exploration of any resources, unless otherwise expressly noted in the Report. (vi) There are no contemplated public initiatives, governmental development controls, rent controls, or changes in the present zoning ordinances or regulations governing use, density, or shape that would significantly affect the value of the subject property.
(vii) All required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be readily obtained or renewed for any use on which the Report is based.
(viii)The subject property is managed and operated in a prudent and competent manner, neither inefficiently, nor super -efficiently.
(ix) The subject property and its use, management, and operation are in full compliance with all applicable federal, state, and local regulations, laws, and restrictions, including without limitation environmental laws, seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses, building codes, permits, and licenses.
(x) The subject property is in full compliance with the Americans with Disabilities Act (ADA). CBRE is not qualified to assess the subject property's compliance with the ADA, notwithstanding any discussion of possible readily achievable barrier removal construction items in the Report.

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Assumptions and Limiting Conditions
(xi) All information regarding the areas and dimensions of the subject property furnished to CBRE are correct, and no encroachments exist. CBRE has neither undertaken any survey of the boundaries of the subject property, nor reviewed or confirmed the accuracy of any legal description of the subject property.

Unless otherwise expressly noted in the Report, no issues regarding the foregoing were brought to CBRE's attention, and CBRE has no knowledge of any such facts affecting the subject property. If any information inconsistent with any of the foregoing assumptions is discovered, such information could have a substantial negative impact on the Report and any conclusions stated therein. Accordingly, if any such information is subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. CBRE assumes no responsibility for any conditions regarding the foregoing, or for any expertise or knowledge required to discover them. Any user of the Report is urged to retain an expert in the applicable field(s) for information regarding such conditions.

3. CBRE has assumed that all documents, data and information furnished by or on behalf of the client, property owner or owner's representative are accurate and correct, unless otherwise expressly noted in the Report. Such data and information include, without limitation, numerical street addresses, lot and block numbers, Assessor's Parcel Numbers, land dimensions, square footage area of the land, dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count, room count, rent schedules, income data, historical operating expenses, budgets, and related data. Any error in any of the above could have a substantial impact on the Report and any conclusions stated therein. Accordingly, if any such errors are subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. The client and intended user should carefully review all assumptions, data, relevant calculations, and conclusions of the Report and should immediately notify CBRE of any questions or errors within 30 days after the date of delivery of the Report.

4. CBRE assumes no responsibility (including any obligation to procure the same) for any documents, data or information not provided to CBRE, including, without limitation, any termite inspection, survey or occupancy permit.

5. All furnishings, equipment and business operations have been disregarded with only real property being considered in the Report, except as otherwise expressly stated and typically considered part of real property.

6. Any cash flows included in the analysis are forecasts of estimated future operating characteristics based upon the information and assumptions contained within the Report. Any projections of income, expenses and economic conditions utilized in the Report, including such cash flows, should be considered as only estimates of the expectations of future income and expenses as of the date of the Report and not predictions of the future.

This Report has been prepared in good faith, based on CBRE's current anecdotal and evidence -based views of the commercial real estate market. Although CBRE believes its views reflect market conditions on the date of this Report, they are subject to significant uncertainties and contingencies, many of which are beyond CBRE's control. In addition, many of CBRE's views are opinion and/or projections based on CBRE's subjective analyses of current market circumstances. Actual results are affected by a number of factors outside the control of CBRE, including without limitation fluctuating economic, market, and property conditions. Actual results may ultimately differ from these projections, and CBRE does not warrant any such projections. Further, other firms may have different opinions, projections and analyses, and actual market conditions in the future may cause CBRE's current views to later change or be incorrect. CBRE has no obligation to update its views herein if its opinions, projections, analyses or market circumstances later change.

7. The Report contains professional opinions and is expressly not intended to serve as any warranty, assurance or guarantee of any particular value of the subject property. Other appraisers may reach different conclusions as to the value of the subject property. Furthermore, market value is highly related to exposure time, promotion effort, terms, motivation, and conclusions surrounding the offering of the subject property. The Report is for the sole purpose of providing the intended user with CBRE's independent professional opinion of the value of the subject property as of the date of the Report. Accordingly, CBRE shall not be liable for any losses that arise from any investment or lending decisions based upon the Report that the client, intended user, or any buyer, seller, investor, or lending institution may undertake related to the subject property, and CBRE has not been compensated to assume any of these risks. Nothing contained in the Report shall be construed as any direct or indirect recommendation of CBRE to buy, sell, hold, or finance the subject property.

8. No opinion is expressed on matters which may require legal expertise or specialized investigation or knowledge including, but not limited to, environmental, social, and governance principles ("ESG"), beyond that customarily employed by real estate appraisers. Any user of the Report is advised to retain experts in areas that fall outside the scope of the real estate appraisal profession for such matters.

9. CBRE assumes no responsibility for any costs or consequences arising due to the need, or the lack of need, for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance.

CBRE VALUATION & ADVISORY SERVICES 29 © 2024 CBRE, INC
17-50

Assumptions and Limiting Conditions

10. Acceptance or use of the Report constitutes full acceptance of these Assumptions and Limiting Conditions and any special assumptions set forth in the Report. It is the responsibility of the user of the Report to read in full, comprehend and thus become aware of all such assumptions and limiting conditions. CBRE assumes no responsibility for any situation arising out of the user's failure to become familiar with and understand the same.

11. The Report applies to the property as a whole only, and any pro ration or division of the title into fractional interests will invalidate such conclusions, unless the Report expressly assumes such pro ration or division of interests.

12. The allocations of the total value estimate in the Report between land and improvements apply only to the existing use of the subject property. The allocations of values for each of the land and improvements are not intended to be used with any other property or appraisal and are not valid for any such use.

13. The maps, plats, sketches, graphs, photographs, and exhibits included in this Report are for illustration purposes only and shall be utilized only to assist in visualizing matters discussed in the Report. No such items shall be removed, reproduced, or used apart from the Report.

14. The Report shall not be duplicated or provided to any unintended users in whole or in part without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Exempt from this restriction is duplication for the internal use of the intended user and its attorneys, accountants, or advisors for the sole benefit of the intended user. Also exempt from this restriction is transmission of the Report pursuant to any requirement of any court, governmental authority, or regulatory agency having jurisdiction over the intended user, provided that the Report and its contents shall not be published, in whole or in part, in any public document without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Finally, the Report shall not be made available to the public or otherwise used in any offering of the property or any security, as defined by applicable law. Any unintended user who may possess the Report is advised that it shall not rely upon the Report or its conclusions and that it should rely on its own appraisers, advisors and other consultants for any decision in connection with the subject property. CBRE shall have no liability or responsibility to any such unintended user.

CBRE VALUATION & ADVISORY SERVICES 30 © 2024 CBRE, INC
17-51

Addenda
Addenda

CBRE VALUATION & ADVISORY SERVICES
© 2024 CBRE, INC
17-52

Addenda
Addendum A
Land Sale Data Sheets
CBRE VALUATION & ADVISORY SERVICES 32 © 2024 CBRE, INC
17-53

Property Name Essex and Gage
Address 7225 Edinger Ave.

Huntington Beach, CA 92647
County Orange
Govt./Tax ID 142-072-06
Land Area Net

5.620 ac/ 244,807 sf
Land Area Gross

5.620 ac/ 244,807 sf
Site Development Status
Raw
Utilities
All to site
Max Allow Bldg Units/Density
129 / 22.95
Shape
Rectangular
Primary Frontage
400 ft on Edinger Ave.

Topography
Level, At Street Grade
Flood Zone Class
Zone X (Shaded)
Flood Panel No./ Date
06059CO232J/ Dec 2009
Zoning
SP14, Beach and Edinger Corridor
Specific Plan
Entitlement Status
Fully Entitled/Planning Permissions
Transaction Details
Type
Interest Transferred
Condition of Sale
Buyer Type
Recorded Seller
Marketing Time
Listing Broker
Doc #
Sale
Fee Simple
Conventional
Developer
Freeway Industrial Park
N/A
N/A
0144574
Primary Verification
Costar, Deed, & Press Release
Transaction Date
06/11/2024
Recording Date
06/11/2024
Sale Price
$52,000,000
Financing
Cash to Seller
Cash Equivalent
$52,000,000
Capital Adjustment
$0
% Interest Purchased
100%
Adjusted Price
$52,000,000
Adjusted Price / ac
$9,252,669 / $212.41
and / sf
Adjusted Price/ Unit
$403,101
This is the June 2024 sale of a 5.62-acre site on the north side of Edinger Avenue, west of Gothard Street in Huntington Beach. The site was improved with a shopping center containing approximately 71,906 square feet at its time of sale. It sold with entitlements for a 129-unit townhome development known as Essex + Gage. The townhomes will be three-story attached units with 13 of the units for moderate income.

B R E17-54

Property Name
Address
County
Govt./Tax ID
Land Area Net
Land Area Gross
Site Development Status
Utilities
Max Allow Bldg Units/Density
Shape
Primary Frontage
Topography
Flood Zone Class
Flood Panel No./ Date
Zoning
Entitlement Status
Transaction Details
Type
Interest Transferred
Condition of Sale
Buyer Type
Recorded Seller
Marketing Time
Listing Broker
Doc #
11 Proposed Multifamily Units
1526 Placentia Avenue
Newport Beach, CA 92663
Orange
424-161-08

0.350 ac/ 15,246 sf

0.350 ac/ 15,246 sf
Finished
To Site
11 / 31.43
Irregular
122 ft on Placentia Ave.

Level, At Street Grade
Zone X (Unshaded)
06059CO268J
RM, Multiple Residential
None
Sale
Fee Simple
Standard
Developer
Jerry Poladian
11 Month(s)
Jerry Poladian-Owner
2022-000352008
Primary Verification
Costar/Deed/Public Record
Transaction Date
1 1 /01 /2022
Recording Date
11/01/2022
Sale Price
$3,700,000
Financing
Market Rate Financing
Cash Equivalent
$3,700,000
Capital Adjustment
$0
% Interest Purchased
100%
Adjusted Price
$3,700,000
Adjusted Price / ac
$10,571,429 / $242.69
and / sf
Adjusted Price/ Unit
$336,364
This represents the sale of a 15,246-square foot site that was previously developed as a retail storefront in 1966. It is zoned RM, Multiple Residential, per the zoning map. It was marketed by the seller for residential redevelopment for 11 months and sold in November 2022 for $3,700,000. After the sale closed, the buyer submitted plans for an 1 1-unit multifamily development. This indicates a density of 31.43 units per acre.

BRE17-55

Property Name 18 Unit Attached Condominium Site
Address 17532 Cameron Lane
Huntington Beach, CA 92647
County Orange
Govt./Tax ID 167-471-02
Land Area Net

0.940 ac/ 40,946 sf
Land Area Gross

0.940 ac/ 40,946 sf
Site Development Status
Semi -Finished
Utilities
To Site
Max Allow Bldg Units/Density
18 / 19.15
Shape
Rectangular
Topography
Level, At Street Grade
Flood Zone Class
Zone X (Shaded)
Flood Panel No./ Date
06059CO253J/ Dec 2009
Zoning
R-3
Entitlement Status
Fully Entitled
Transaction Details
Type
Sale
Primary Verification
Interest Transferred
Fee Simple
Transaction Date
Condition of Sale
None
Recording Date
Buyer Type
Developer
Sale Price
Recorded Seller
SGV Property Fund LLC
Financing
Marketing Time
N/A
Cash Equivalent
Listing Broker
Amy O'Donnell, Land Advisors
Capital Adjustment
(949) 656-8018
% Interest Purchased
Doc #
0250751
Adjusted Price
Adjusted Price / ac
and / sf
Adjusted Price/ Unit
Listing Broker
07/18/2022
07/18/2022
$5,700,000
Cash to Seller
$5,700,000
$0
100%
$5,700,000
$6,063,830 / $139.21
$316,667
This is the July 2022 sale of a 0.94-acre site on the east side of Cameron Lane, one lot south of Slater Avenue in Huntington Beach. The site was in cleared condition and sold with entitlements for 18 attached 2-story townhomes ranging in size from 1,233 to 1,422 square feet. Two units are designated as "moderate income" affordable units.

BRE17-56

Property Name
Address
County
Govt./Tax ID
Land Area Net
Land Area Gross
Site Development Status
Utilities
Max Allow Bldg Units/Density
Shape
Topography
Flood Zone Class
Flood Panel No./ Date
Zoning
Entitlement Status
Transaction Details
Type
Interest Transferred
Condition of Sale
Buyer Type
Recorded Seller
Marketing Time
Listing Broker
Doc #
Detached Condominium Site
Vicinity of Lynx and Astor
Irvine, CA 92618
Orange
591-563-02, 05, 06, 07, 08

6.258 ac/ 272,612 sf

6.258 ac/ 272,612 sf
Semi -Finished
All to site
60 / 9.59
Irregular
Generally Level
Zone X (Unshaded)
06059C0315J/ Dec 2009

1.9 OC Great Park
Fully Entitled
Sale
Fee Simple
None
Developer
Heritage Fields El Toro, LLC
N/A
N/A
549184
Primary Verification
Transaction Date
Recording Date
Sale Price
Financing
Cash Equivalent
Capital Adjustment
% Interest Purchased
Adjusted Price
Adjusted Price / ac
and / sf
Adjusted Price/ Unit
David Kemnitz - Buyer
09/01/2021
09/01/2021
$31,809,500
Cash to Seller
$31,809,500
$0
100%
$31,809,500
$8,082,770 / $116.68
$530,158
This is the sale of a 60-unit detached condominium site within the Great Park master -planned community in Irvine. The site is in the vicinity of Lynx and Astor and was delivered to the buyer in semi -finished condition with full entitlements. The property was purchased in September 2021 for $31,809,500. The buyer intends to build detached homes ranging from 2,500 to 2,900 square feet.

BRE17-57

Property Name
Address
County
Govt./Tax ID
Land Area Net
Land Area Gross
Site Development Status
Utilities
Max Allow Bldg Units/Density
Shape
Topography
Flood Zone Class
Flood Panel No./ Date
Zoning
Entitlement Status
Transaction Details
Detached Condominium Site
NW of Merit and Cadence
Irvine, CA 92618
Orange
591-553-01, 02, 07, 08, 09, 10

4.390 ac/ 191,228 sf

4.390 ac/ 191,228 sf
Semi -Finished
All to site
37 / 8.43
Irregular
Generally Level
Zone X (Unshaded)
06059C0315J/ Dec 2009

1.9 OC Great Park
Fully Entitled
Type
Sale
Primary Verification
Public Records & Costar
Interest Transferred
Fee Simple
Transaction Date
06/01/2021
Condition of Sale
None
Recording Date
06/01/2021
Buyer Type
Developer
Sale Price
$19,781,000
Recorded Seller
Heritage Fields El Toro, LLC
Financing
Cash to Seller
Marketing Time
N/A
Cash Equivalent
$19,781,000
Listing Broker
N/A
Capital Adjustment
$0
Doc #
355611
% Interest Purchased
100%
Adjusted Price
$19,781,000
Adjusted Price / ac
$4,505,923 / $103.44
and / sf
Adjusted Price/ Unit
$534,622
This is the sale of a 37 unit detached condominium site within the Great Park master -planned community in Irvine. The property is generally located northwest of Merit and Cadence. The site was delivered in semi -finished condition with full entitlements. The buyer intends to build homes from 2,289 to 2,591 square feet to be priced in the $1.2 million to $1.3 million range.

BRE17-58

Property Name
Address
County
Govt./Tax ID
Land Area Net
Land Area Gross
Utilities
Max Allow Bldg Units/Density
Shape
Primary Frontage
Topography
Flood Zone Class
Flood Panel No./ Date
Zoning
Entitlement Status
Transaction Details
Type
Interest Transferred
Condition of Sale
Buyer Type
Recorded Seller
Marketing Time
Listing Broker
Doc #
Comments
Mariner Square
1244 Irvine Ave.

Newport Beach, CA 92660
Orange
425-061-09

5.830 ac/ 253,955 sf

5.830 ac/ 253,955 sf
All to site
92 / 15.78
Irregular
518 ft on Irvine Avenue
Level, At Street Grade
Zone X (Unshaded)
06059CO268J/ Dec. 2009
RM-6000, Multi -unit Residential Zone
Fully Entitled/Planning Permissions
Sale
Fee Simple
None
Developer
Mariner Square 2017 LLC and
Mariners Investors, LLC
N/A
N/A
0550020
Primary Verification
Transaction Date
Recording Date
Sale Price
Financing
Cash Equivalent
Capital Adjustment
% Interest Purchased
Adjusted Price
Adjusted Price / ac
and / sf
Adjusted Price/ Unit
CoStar, Deed, & Public Records
12/31/2019
12/31/2019
$58,000,000
Cash to Seller
$58,000,000
$0
100%
$58,000,000
$9,948,542 / $228.39
$630,435
The Mariner Square multifamily property sold for land value on December 31, 2019 for $58,000,000, or $228.39 per square foot of land. The property sold fully entitled for 92 attached single-family residential homes to be built on -site, comprised of 56 duplex and quad units built by Shea Homes, and 36 townhomes built by Intracorp Homes. The projects will be contiguous and will share private streets, common areas and open space, recreational facilities, utility trunk lines and other utilities, right-of-way, and streetscape infrastructure. The tenants of Mariner Square were given 60-day notices and the building was 100 percent vacant as of December 15th, 2019. The demolition permit was awarded prior to the close of the sale and the 129,846 square foot multifamily improvements will be razed.

BRE17-59

Addenda
Addendum B
Qualifications
CBRE VALUATION & ADVISORY SERVICES 33 © 2024 CBRE, INC
17-60

PROFILES
Professional Affiliations
/ Accreditations
- Member: Appraisal Institute
- Designation: Appraisal Institute -
General Review Specialist (AI-GRS)
- Fellow: Royal Institution of
Chartered Surveyors
- Member: The Counselors of Real
Estate
- Member: International Right of Way
Association
- License: California State Certified
General Real Estate Appraiser
- Certified: Uniform Appraisal
Standards for Federal Land
Acquisitions (Yellow Book)
Education
- M.B.A., Pepperdine University
- B.S., Kinesiology, University of
California, Los Angeles
- Certified by the Appraisal
Institute's program of continuing
education for its designated
members.

CBRE

VALUATION & ADVISORY SERVICES
Beth B. Finestone, MAI,

AI-GRS, FRICS, CRE
Executive Vice President
Los Angeles, CA
T +1 818 2513669
E [email protected]
Professional Experience
Beth B. Finestone, MAI, AI-GRS, FRICS, CRE, is an Executive Vice President for CBRE's Valuation & Advisory Services (VAS). She has been appraising in Southern California since 1981, specializing in valuation and consulting services related to public agency and right-of-way clients and for major investment -grade commercial properties and special purpose properties. She also has extensive expertise in valuing large tracts of land for conservation, mitigation and other purposes.

Ms. Finestone's clients include public agencies, right-of-way firms, lenders, institutional investors, major corporations, law firms, and individual property owners. Her services include a wide range of specialized studies including ground lease rent studies, partial interest acquisitions, value diminution (from both internal and external influences), market demand, feasibility, severance damages and project benefits, investment analysis, assessment allocation, reuse analysis, and the valuation of partial interests including leasehold, leased fee, possessory interests, and minority interests.

She is experienced in valuing full and partial acquisitions related to eminent domain actions. These services include the valuation of fee acquisitions, permanent and temporary easements, including the appraisal of railroad and other types of corridors, pipeline easements and transmission line easements.

She has been a featured speaker at Appraisal Institute, International Right of Way, and legal functions. She was the 2019 President of the Southern California Chapter of the Appraisal Institute, the largest chapter in the country.

Beth was previously a Managing Director for and a principal of Integra Realty Resources - Los Angeles. In addition, she was the Executive Director of Integra Realty Resources - Orange County. During her career, she has held senior positions with Finestone & Associates and Cushman & Wakefield. 92024 CBRE, INC.
17-61

PROFILES
Recognition
CBRE
- Los Angeles Business Journal 2009 Nominee for Executive of the Year - Women Making a Difference, May 2009 - Designated one of Real Estate Southern California's 2006 Women of Influence, October 2006
Seminar Presentations
- Corridors, Crops & Condemnation (IRWA National Conference in San Diego, June 2015) - Eminent Domain Appraisals: Pitfalls & Value -Added Services (RICS - Southern California Chapter, CPD Presentation, April 16, 2015)
- Government Buildings (Appraisal Institute, Special Purposes Seminar, July 15, 2014) - The Trouble with Ignoring Building Code Violators (SCCAI 43`d Annual Litigation Seminar, Moderator, November 15, 2013)
- Conflicting Mandates & Instructions Between USPAP, Yellow Book, & Caltrans Appraisal Guidelines (IRWA Annual Valuation Seminar, April 24, 2012)
- Current Issues in Real Estate Appraisal (Lorman Education Services, live audio conference, March 8, 2012) - The Role of the Appraiser in Construction Defect Litigation: Measuring Damages from Construction Defects (MCLE- approved presentation, January 11, 2012, March 4, 2010, and February 10, 2010) Expert Testimony
Ms. Finestone has qualified as an expert witness in real estate matters and has testified before:
- Superior Courts: Los Angeles and Orange Counties
- Arbitration Hearings: Los Angeles County
- Tax Appeal Boards: Los Angeles and San Diego Counties Representative Appraisal Assignments
- Appraisal of 50+ single-family residences (SFRs) impacted by the 1-405 Widening Project in Costa Mesa. The acquisitions all involve temporary construction easements (TCEs). This assignment required an analysis of temporary severance damages due to impacts to rear yards as well as a valuation of all site improvements in the TCE areas.

Appraisal of 50+ commercial properties impacted by various types of partial acquisitions related to the 1-405. Some of the appraisals were extremely complex with significant severance damage studies required. - Multiple appraisal assignments for LACMTA included:
- Appraisal of a 1.25-acre parcel improved with a Class A,12-story, medical office building constructed circa 1962, an adjacent one-story bank building and an attached four-story parking structure known as the Westwood Medical Plaza. It is located along the proposed Purple Line Subway Extension Project Corridor, specifically on the northeast corner of Wilshire Boulevard and Westwood Boulevard in the Westwood neighborhood within the City of Los Angeles. As part of this project, LACMTA is seeking acquire various permanent and temporary property interests, and to relocate existing tenants within the subject property. The purpose of this appraisal was to estimate the fair market value of the property interests (Parts Taken) to be acquired from the Larger Parcel and to make a determination as to the impact of the proposed acquisitions on the Remainder Parcel.
- Appraisal of Wilshire Federal Building: Appraisal of a deep tunnel easement on the Wilshire frontage of the Federal Building as part of LACMTA's Purple Line extension. Consideration was given to the redevelopment potential of the site and the benefits to the remainder, as well as to the value of the parts taken. - Appraisal involving the valuation of partial acquisitions impacting the Westfield Mall in Century City as part of LACMTA's Purple Line extension. This assignment was challenging with respect to valuing the underlying land associated with the larger parcel. The property is unique due to its location and its size. Complexities involved determining the number of trips allocated to the site as this in part drives land value. Again, consideration was given to damages and benefits, as well as to the value of the parts taken.
02024 CBRE, INC.
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PROFILES
CBRE
— Appraisal of numerous surface and subsurface acquisitions were required on the Veteran's Administration property for the construction of a subway station and tunnel easements for LACMTA's Purple Line. Significant research was required relative to the VA specific plan and the highest and best use of the property. Consideration was given to damages and project benefits as well as the value of the parts acquired. — Appraisal of 50± miles of pipeline easement running through UPRR and BNSF rail corridors in Urban Los Angeles. — Multiple appraisal assignments for RCTC included:
— Appraisal of parcels under more than 50 separate ownerships affected by acquisitions and easements for the SR-91 Corridor Improvement Project through the City of Corona. The complete summary appraisal reports and appraisal summary statements included a valuation of the properties in the before and after condition. Some of the properties had significant severance damage analyses due to loss of building improvements, parking, loading, etc. — City of Riverside 69 kV Electrical Transmission Line Project: Initially valued 22 residential and commercial properties in the City of Riverside. These properties all had a three -foot -wide partial taking along their frontage to accommodate the construction of a 69 kV transmission line. This represented Phase One of this assignment. Phase Two involved the partial taking of land over seven properties owned by JCR for the construction of a transmission line. The final phase involved approximately 100 properties of various types which were impacted by partial acquisitions for the construction of a transmission line. The final phase involved approximately 90 properties of various types which will be impacted by partial takes for the construction of a transmission line.
— Appraisal of in excess of 75 private properties on behalf of CHSRA. The property types included agricultural, commercial and residential. Most of the appraisals involved partial acquisitions. In addition, Ms. Finestone completed the appraisal of over 50 railroad corridor properties in conjunction with the high-speed rail project. — Appraisal of the Del Mar Fairgrounds, Racetrack, and Horsepark (450 acres of land and over 1,000,000 square feet in improvements) for the California Department of General Services. — Completed an appraisal of a property that represents one of the largest parcels of undeveloped and unprotected coastal property in Southern California (Banning Ranch). Much of the site had been occupied by oil operations since the 1940's.

The appraisal of this property was very complex in that the highest and best use of the property was not clear at the onset of the assignment. This property consists of degraded wetlands, open space, and a small area with the potential for residential development. The goal of this project was to prepare an appraisal for acquisition purposes such that the buyer and seller could agree on a purchase price and put the property under contract. — West Coyote Hills: Appraised Neighborhoods 1 and 3 of Vested Tentative Tract Map (VTTM)17609. This is commonly referred to as Neighborhoods 1 and 3 of the West Coyotes Hills Property. Neighborhood 1 consists of 10.4± acres and was proposed for development with 16 residential units. Neighborhood 3 is 13.7± acres and was proposed for development with 59 residential units. Neighborhoods 1 and 3 were valued separately. The intended users of the report were the California State Coastal Conservancy, City of Fullerton, Wildlife Conservation Board, Rivers and Mountains Conservancy, California Department of Parks and Recreation, California Natural Resources Agency, and the US Fish and Wildlife Service. This report was prepared to Federal Standards in conformance with Yellow Book guidelines and the acquisition was made based on our appraisal.
— Appraisal in Fresno County for the State Department of Water Resources, which included 22 permanent flowage easements and three partial fee acquisitions. Some of the proposed flowage easements overlapped existing road and utility easements which had to be considered. Due to the nature of the flowage easements, substantial severance damages accrued to the remainder parcels which had to be considered. This assignment also included the consideration of orchard and crop values.
— Multiple appraisal assignments for the U.S. Department of the Interior, Appraisal and Valuation Services Office (AVSO) prepared to Federal Standards in accordance with Yellow Book guidelines. These were for acquisition purposes related to the San Joaquin River Restoration Project and for the acquisition land to be acquired for National Wilderness areas. 02024 CBRE, INC.
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PROFILES

VALUATION & ADVISORY SERVICE
Thomas G. Richardson, MAI
Vice President
E [email protected]
Professional Experience
Thomas G. Richardson, MAI is a Vice President for CBRE's Valuation & Advisory Services (VAS). Mr. Richardson began his career in real estate appraisal in 2012.

His experience includes consulting and appraisals for improved properties such as single - and multifamily residences, restaurants, shopping centers, office buildings, warehouses, retail and industrial condominiums, mixed -use commercial and residential buildings, religious facilities, and special purpose properties.

Pro Affiliations / He has valued various categories of land including agricultural, residential, commercial, open space/recreational, saltwater marshland, solar farm, and mitigation land. His work has Accreditations been utilized by various public agencies, law firms, financial institutions, and property owners for right-of-way, disposition, bond financing, lease negotiations, and in -lieu fees. - Member: Appraisal Institute, His recent appraisal work for right -of -way -related purposes includes assignments for the February 2021 San Juan Creek Bridge Replacement Project, Los Nietos Safe Routes to School Project, - Licensed: California Certified Playa Del Rey Wastewater Line Project, 1-405 Improvement Project, Culver University General Real Estate Appraiser Improvement Project, Regional Connector Transit Project, Century Boulevard Mobility No.3004940 Improvement Project, Riverside Transmission Reliability Project, Centennial Corridor Expires November 2025 Project, California High Speed Rail Authority, Irvine Business Complex Sidewalk Project, and Mid County Parkway Project. Mr. Richardson was previously an Associate Director of Integra Realty Resources - Los Angeles.

Education
- B.A., History, University of Training / Courses Completed California, Los Angeles
Completed the following courses and seminars:
— Advanced Concepts & Case Studies
— Basic Appraisal Principles
— Basic Appraisal Procedures
— Business Practices and Ethics
— Commercial Appraisal Review
— Expert Witness for Commercial Appraisers
— General Appraiser Income Approach, Part I
— General Appraiser Income Approach, Part II
— General Appraiser Market Analysis and Highest & Best Use — Advanced Market Analysis and Highest & Best Use
— General Appraiser Report Writing and Case Studies
©2024 CBRE, INC.
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PROFILES
General Appraiser Sales Comparison Approach
— General Appraiser Site Valuation and Cost Approach
— Real Estate Finance, Statistics, and Valuation Modeling — Uniform Standards of Professional Appraisal Practice
— Quantitative Analysis
— Advanced Income Capitalization
©2024 CBRE, INC.
17-65

Attachment C
CBRE Appraisal Report — Bob Henry Park, dated July 30, 2024 17-66

CBRE Valuation & Advisory Services
Appraisal Report

BOB HENRY PARK
900 Dover Drive
Newport Beach, California 92660
Prepared for: City of Newport Beach
Date of Report: July 30, 2024
CBRE File No.: CB24US044895-1
cbrexom/valuation
17-67

CITY OF NEWPORT BEACH
100 Civic Center Drive
Newport Beach, California 92660
RE: Appraisal of: Bob Henry Park
900 Dover Drive
Newport Beach, Orange County, California
CBRE File No.: CB24USO44895-1
Dear Ms. Wooding Whitlinger:

At your request and authorization, CBRE, Inc. has prepared an appraisal of the fair market value of the referenced property. Our analysis is presented in the following Appraisal Report.

The subject is currently improved with Bob Henry Park and contains an area of 4.80 acres or 209,088 square feet. The property is zoned PC-43, Upper Castaways Planned Community. We have been instructed by our client to assume the site is vacant and zoned for multifamily residential with a maximum density of 14 dwelling units per acre. Therefore, none of the park equipment or improvements were considered in this analysis. The subject is appraised on an unentitled residential land basis. In addition, we were instructed to assume that no future lots would have view potential, that the sites were nearly level, and that the property had utilities available.

Based on the analysis contained in the following report, the market value of the subject is concluded as follows:

MARKET VALUE CONCLUSION
Appraisal Premise Interest Appraised Date of Value Value Conclusion Fair Market Value Fee Simple Estate July 23, 2024 $30,150,000 Compiled by CBRE
This Appraisal Report is subject to Extraordinary Assumptions and/or Hypothetical Conditions; please refer to the Executive Summary section of this report for further discussion and analysis.

The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter.

CBRE VALUATION & ADVISORY SERVICES 1 © 2024 CBRE, INC
17-68

It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us.

Respectfully submitted,

CBRE - VALUATION & ADVISORY SERVICES
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Tom Richardson, MAI
Title: VAS - Vice President
Phone: (818) 251-3643
Email: Tom. [email protected]
License No. & State: 3004940 CA
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Beth Finestone, MAI, AI-GRS, FRICS, CRE
Title: VAS - Executive Vice President
Phone: (818) 251-3669
Email: [email protected]
License No. & State: AG 004030 CA

CBRE VALUATION & ADVISORY SERVICES
© 2024 CBRE, INC
17-69