EXHIBIT Description: For SCNGL. - "TOTAL soar ac al soltsare by a la mado, inc. - 1-800-ALAMODE Forn SCHLGL "TOTAL" appraisal corware ty a la mode, sc. - 1-809-ALAMODE Reference:
166
Rental Market Condition Addendum Rental Market Condition Addendum Historic Count of Sales by Month
$8,000
$5,000
$1,000
₴ $3,000|
$2 000
$1,000
* to 1020-1000
Fearch Criteria
Time fraitse is from Jan 2022 to Mer 2024 Search Ortaria Time frane is the menths January-April for the years 2021-2024 Resuls calculaced from 29 hstings Property Type is 'Comenercial Lease' Results alculated from 23 iatings
Page: 220-26
EXHIBIT Description: Form SCHLGE - TDTAL appraisal sottwarn bry a la musde, Inc. - 1-800-ALAMODE Form SCALL. "TOTAL" spcaital rothese by a la moda, inc. - 1-200-ALAMODE Reference: 22
167
Lease Agreement Land Used Addendum - Page 1
Chapter 18.28 - C-1
NEIGHBORHOOD COMMERCIAL ZONE
Sections:
LEASE AGREEMENT 18.28.010 - Regulations established.
are Tie operator basino by we chaple payin the 1. neighborhoodcomartel zone. unles (1965 coda Titte XI. Ch. 14.5 1)
18.28.020 - Permitted uses.
Uses permited are as foows:
A Retail sTores:
1. Bakeries employing not more then the persons.
Book ur stationery otars,
Confectionary store.
Drug store,
* Cliftias and Maintenance: Terunt shall he responsible lo payment of al flues, haust Dry goods or notions store. c. sinted lo eieunity and trash leth event a lager rash bin is resures. Ie Fenant sort Florial shop. ar the cast Water charges hal be paid trecty lo PD intamalonal beginess by Tenps. Grocery, fruit. or vegetable siore. and sunt sieu ta rescnaibie forth upheep of the property, including or the fort and Hardware or appliance store, Misst market or delcatesson store.
* Leans of Both Unita: Thus Agreement portains i the loose of but the honi and back norge stre openly. "neighborhood commercial zone":
; Term and Renowel: The loose is for a term of 2 years Upon excration the lense may in B. Officos. business or professional:
C. Services:
1. Signe are note a tie gue far the under at harest i emi.
2. Bank.
alise da tower shop to thet pruper y Barber shop and beauty parlor.
Cafe or restaurant (excluding dancing or entertainment). • prop doing made ordin enterpent to sze the sate and Dressmaker or millinory shop.
Laundry or clothes cleaning agency indier pressing estabishment.
Laundry, sell operated.
Late Forgeion Foame deBe nevory me sho icon basica in 8. Library.
Pholographer.
Pos: Office.
12.500 Shoe store and repair.
Tailor,
permitted in Ch 14.08
•. Ances ins and uses customarily indent to any of the abovn utes whan focated EXHIBIT Description: Ecom SCHILL - "TOTAL" appraisal solwara by a la mode, tac. - 1-200-ALAMCDE Reference: 23
168
Land Uscel Addendum - Page 2 Land Used Addendum - Page 3 Code of Oiliametes 18.116 - RESIDENTIAL OVERLAY
CROSS REFERENCE TABLE
(Orc. Me. 1597.58,11-28-17; ORDINANCE LIST AND DISPOSITION TABLE
18.28.025 - Reserved. CODE COMPARATIVE TABLE AND DISPOSITION LIST (miled] < 18.35.050 - Off-street parking. Chapter 18.38 - M-1 LIGHT MANUFACTURING ZONE ›
18.28.030 - Height, bulk and space
requirements. Chapter 18.36 - C-M COMMERCIAL-MANUFACTURING ZONE Minimum height, bulk and space requirments are: Sections:
minimum setback of ten loot extending the full width of the lot to be planted with appropriale landscape meterial and adequalely maintained. Where the frontege in one 18.36.010 - Regulations established. block is localed parly in the C-1 zone and an R. zone the fron yard requirements of the R zone apply to the C-1 zone.
The regulations established by this chapter apply in the C-M, commercial manufacturing zone, unless othervise provided by this title.
required on the lots in the rear of such comer lot, itt all other osses a side yard is not 11965 code Title XilI, Ch. 18,5 1) roquirod;
Rear yard, here shall be & rear yard having depth of not less than fifteen feet. (1900 codo Titto XII. Ch. 14, 5 3) 18.36.020 - Permitted uses.
18.28.040 - Signs. Uses permitted are as follows:
As provided by Sarian 18.102560(G) of this ude. A Any use permitteo in the C-3 zone;
19. 120105090 0 803: 14 193: ON. 70052, 1970; 0rd. 390 9 1. 1970: 0rd. 58 5 1. 1969; 0rd. 574 B. Any use permitted in the Mol zone. (1965 code Title Xil, Ch. 18.5 2)
18.28.050 - Off-street parking.
for off-stroot parking and loading requirements, soo Chanlsr.18.50 18.36.025 - Reserved. (Ord. 1057 § 2(8). 1989: 1965 codo Tide XIi, Ch. 14, 55 5. 6) Editor's note-Ord.No.1594, 5540, adopted November 14, 2017, repealed 51831.025. which
18.28.060 - Use conditions. pertained to prohibited uses and derived from Ord. No. 1453 adopted October 13. 2009 and Ord. Na.
A. The primary purpose and application of this zone is for small limited shopping conters planned 1570, adopted August 9, 2016.
18.36.030 - Height, bulk and space requirements.
lo the ssuance of a building permil.
Stores, shope and businesses, and storage of matarials connecied thorewith. shall be operaled The C-3. general commercial regulations apply to the helght, bulk and space requirements in the C-M wholly within an enclosed buiding.
(1965 code Title XiI, Ch. 18, 5 3)
to o public parking area may be pronded. (1865 code Tile XI. Ch14.5.2 EXHIBIT Form SCALL "TOTAL" appraisal solvare by a la mode, inc. - 1-300-ALAMCDE Form SCHLL TOTAL sayraisal pothere by a is mado, ino. - 1-C00-ALAMODE Description: Reference: 24
169
Land Used Addendum - Page 4 Fema Flood Information
As provided by Secuen. 18.202.262H) of this title. FEMA FEMA Flood Map Service [Ord 1234 (part), 1995: 1965 code Title XIL Ch. 18, 64) Center: Search By Address
18.36.050 - Off-street parking.
For off-street parking and loading requirements, see shaper 18.28. Navigation Enter an address, place, or coordinates: ® (Ord 105752(12), 1989: 1965 code Title XI, Ch. 18, 35 5, 6) 134 S Willow Ave Riverside ca 92376 Search
€ 18.35.050 - Off-street parking Chapter 18.38 - Nr1 LIGHT MANUFACTURING ZONE › Whether you are in a high risk 2o0 of not you may need fired prostam becanse most homeower, urance castic fury
MSC Home Boxed marge if you live an an are watt low or moderane 1o00 r.st.. you are 5 times more liket/to experince food tan y fue me your rome over the next 30 years Furriery, & Nation aFlood Insurance Program's flood insurance ockey could cost fest than 5460 per year Cal your insistan, spens rocky and protect wd yes ine truih. em more about see sen take his it for swear.
muzalant to reduce food osk damage.
I/portal/resour ces/pract
_OMC Batch
/portalesovices
Proxtutt
Sportal/productAvalat
M5C Requenty
(AOs)
(portal/rescurces/faq)
MSC Emai!
Subscriptions
(poral/subscriptionHome
POSE: 25026 Contact MSC Help
EXHIBIT Description: Reference:
25 170
Apwraisers License
Bustness, Consemer Services & Horsing Agency
BUREAU OF REAL ESTATE APPRAISERS
REAL ESTATE APPRAISER LICENSE:
Kirk L. Siritb
Jean suecospnfally unes aue requareonesta for p locnac ao a roosdentai coal esta California and it, therefore. cedidied to use the title:
6a Reat Esane Apprtiser
This Koonne har been issued in aceordi with te provisions of de Real, Esel BRFA APPRAISER IDENTIFICATION PUMBER AR 049274
Path Silen
Chiel, BREA
Page:26o26
EXHIBIT Description: Reference:
171
EXHIBIT
P
Description:
City ordered Appraisal
#340,000 dated 07/10/2024
Reference:
172
appraisal
• paciticinc
July 31, 2024 Job No. AP240412
CITY OF REALTO
SO. Palm Arenae
Rialto, CA 92376
Altn: Ms. Colty Catsidi, Community Development Director
APPRAISAL REPORT
Re: Appraisal of a retailoffice property located at 134S. Willow Avenue, Rialto, Calfornia 92376.
AN EXISTING RETAIL/OFFICE PROPERTY
Dea Mi Calmidi:
Rists callow ene
Census Tract No.: 003509 / 1018
Sole Client: City of Rialto
Obiective: Determine the "As Is" market ralue of the subject PREPARED FOR Date of Property Inspection: July 10. 2024 CITY OF RIALTO Date of Value Property Righte Final Value* 150 S. Palm Avenue Cure Ass Some Valle July 10, 2024 $340,000 Fee Simple
Riaito, CA 92376 (Based on 3-9-month exposture period).
Attn: Mr. Colby Cataidi, Community Devclopment Director *Plcase refer to the Assignment Conditions This appraisal report has been prepared in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP) as well as requirements of Title XI of FIRREA (Financial Institutions Reform, Recovery, and DATE OF REPORT Enforcement Act of 2005). Our analysis and conclusion are subject to this report's Contingencies and Limiting Conditions.
July 31, 2024 Respectfully submitted,
Appraisalpa: ic
or 45 HаP.M Tin Howma
TED P. DOUGLAS, MAI TIM HOWMAN, CGREA
State Certified General Appraiser State Certified General Appraiser Certificate No. AG 001946 Certificate No. AG 035823
CA/Expires 14-October-24 CA/Expires 07-Dccember-24
Page: (
P
EXHIBIT Description: Reference:
173
TABLE OF CONTENTS REPORT SUMMARY
Property/Location:
REPORT SUMMARY An Estime a contic Property
SCOPE OF WORK Rinita, California 92376
PRIOR SERVICES CERTIFICATION Assessor's Parcel Nos.: 0130-211-15-0000
SUBJECT PROPERTY HISTORY
Census Tract No.: 003509 / 1018
ASSIGNMENT CONDITIONS
LOCATION DESCRIPTION Owner of Record: PD International Business Center Inc. (per public record)
SITE DESCRIPTION
Site and Inaprovements:
IMPROVEMENTS DESCRIPTION 15 Beling Bes
Site Data
MARKET CONDITIONS 19
Property Type: Retail / Office *Size: 7.500 SE or +0.172-are HIGHEST AND BEST USE SUMMARY "Bulding SP: 1370 3g (A) Topography: Generally level VALUATION ANALYSIS Year Built. 1935/ Reno.
Condition: Average Suing Card. CM, Commercial
INCOME APPROACH Manufacturing
Effective Age:
DIRECT SALES COMPARISON APPROACH Remaining Economic Life: 30 Years 51 RECONCILIATION 56
improvements The ciny has red ragged the abject due primarily to this illegal comersion and the cust to restore FINAL VALUATION 56
ADDITIONAL DATA POINT DISCUSSION 57 demolish the illegally comered rear storage huilding and atached garage is applied in this analysis mul the subject is being appruised as a 1,270 pare-four retail office property.
EXPOSURE TIME AND MARKETING PERIOD 58
DEFINITIONS Exposure Period Marketing Time: 2 - 8 Months / 3- 9 Months
CERTIFICATION
ASSUMPTIONS AND LIMITING CONDITIONS Present Contract:
Page: 2 or 45 APPRAISERS QUALIFICATIONS
ADDENDA Property's Last Transfer.
Subjoct Photos Dato of Transfer: April 7, 2022
Comparable Photos Sale Price: $360,000
EXHIBIT Description: Reference:
174
REPORT SUMMARY SCOPE OF WORK
(Cantinued)
Valuation Approaches Utilized = "As If" Market Value He is nail 2 l, i he read to cup it he report rain the sep to le Cost Approach: discussion contained in this report is specific to the needs of the client atd for the intended use of the report. The appraiser is not responsible for unanthorized use of this report.
Incorac Approach: *5280000 No of or eliac on this pist or apraial report, readies of wier sude us are are it assumptioss and limiting conditions, any extrosdinary assumptions or hypothetical conditions, and
5.25% any other terms and conditions statcl in theis report.
Sales Comparison Approach: Indicated Value: *$350,000 The standard scope of this analysis inchuded the following:
No of Closed Sales Used:
Unadjusted S/SF RBA Range. 577-505 • A reading of the request for appraisal services and related attachments.
Adjusted S/SF RBA Range:
No. of Active Listing Used: • A revie of alre an does, as they, and pree suday proper introding eco Unadjusted S/SF RBA.
Adjusted S/SF RBA: $342 • Rescarch and investigation of current market conditions relative to the property type being appraised, as well as the market sector with which the subjoct is identified.
Final S/SF Value Selected ®: 5335
*includes a-S20.000 deduction for she costs associated with curing deferred maintenance in the front • Interviews with brokers, appraisers, property owners and/or managers, as well as selevant public agencies or governing bodies.
retried straine adira deduction for eos associated wrih demolishing the rear illegally • Collection, verification and analysis of market data and any other partinent information necessary to the valuation process.
Yalue Conclasions • Aad, compilation of the descriptions, reasoning and explanations, leading to final value conclusions, within this report. Picase refer to the Valuation Analysis section for primary approach (es) necessary to conclude to a credible opinion of valuc. "As Stabilized" Value "As Is" Value..
Cost Approsch N/A N/A • The scope of this analysis specific to this assignment inchided the following:
Income Approach $290,000
Direct Sales Comprison Approach I ten dad use: City of Rialto $350,000 To provide the client with information to estimate current "As Final Estimate of Value:
Real Estate: 5340,000 Is" market value of the subject for a potential purchase.
FF&E N/A intended User (s) for the purposes of The intendad user of this report is the City of Rialto.
Business Value N/A assisting in the Client's intended use Total Value: $340,000 only. The appraiser has not identified any porchaser, borrower or Page: 3 0 45 seller as an intended user of this appraisal. Receipt of a copy uf the appraisal by such a party or any other third party does not mcan that the party is an intended user of the appraisal.
Such partics are advised to obtain an appraisal from an appraiser of their own choosing if they require an appraisal fol P their own use. This appraisal report should not serve as the basis for any property purchase decision or any appraisal contingcncy it a ruchase agreement relating to the property:
EXHIBIT Description: Reference:
175
• Complction of property contact intorvicw regarding the subject. PRIOR SERVICES CERTIFICATION • An interior/exterior inspection of the subject and surrounding neighborbood as of our date of value. This appraisal report is not a formal properly inspection. it does not guarantee or imply that the property is free of delecis or property condition prubiems. The appraiser is not a licensed contractor or property inspector. It is suggested that the client/borrower take the necessary steps to insure the property is acceptable to them prior to closing escrow (in the event of a saic)- SUBJECT PROPERTY HISTORY
• A review of comparables utilized in the report vis scrial images, exterior street inspection. Pertinent details of the subject property and ownership history follows:
broker verification, and or information obtained from Multiple Listing Services or other data providers such as LoopNet and Coster.
Legal Description
The subject consists of a freestanding. 1,270-square-foot, retnilioffice building positioned on a 7,500- square-foot site. The property ts currently vacant. Public record lists the subject's legal description as follows:
The subject is currently red tagged by the City of Rialto for various code issues related to illegal Town Of Rialso And Ady Suds $50 FrN 150 FIE 150 F lot 95 renovations to the rear storage building and setback issues. More specifically, the subject has a 720- square-foot storage building with 346-square-foot basement and attached 272-square-foot garage located at the rear (western) edge of the site. The building was permitted as a storage building without Current Ownership any power but the previous owner of the property illegally converted it to a residence by running illegal utilities to the structure, building out the interior with non-permitted demising walls and tenant The subject property is currently owned by PD Intruational Business Center Inc. (per pablic record). improvements, adding windows to the basement and expanding the space to infringe on the rear and side setbacks. The city red tagged the subject in 2021, which prohibits occupancy until the code issucs are corrected. Although the property has been illegally occupied since the red lag notice was issued, Current Subject Transaction:
the property was vacant at the time of inspection.
Cutest EscroW: The subject is not currently involved in a pending transaction, nor The rear storage structure, basement and garage would require significant renovation to address the is the subject currently available on the markel for sale or icase. existing code issues and red tagged stafus. The structare (all three areas offer minimal contributory Sales Price: N/A value as a dead storage due retail/office design of the property and the financial cost to rectify the code Date of Escrow issues is prohibitive. As such, for the purposes of analysis, a cost to demolish those structures is Closing Date: N/A deducted fiom the indicated values in the Income and Sales Comparison Approaches to arrive at tho Broker Representation: NIA subject's "as is" market value. An additional cost to cure deferred maintenance of the front retail/office Days on Market NIA building is also deducted in order for the property to be it occupancy-ready condition and fice of any Termsand Conditions: N/A code issucs. Arms-length Transaction: | NiA
The highest and best use of the subject indicates that tlic most likely buyer is an owner-user. As such. the Sales Comparison Approach is the primary approach to value and is most ofen utilized by buyers. Five-Year Sales Bistory sellers and brokers of properties that can be fully utilized by owner-users. The Income Approach is o45 also included, but provides limited socondary support since owncr-user driven properties are transacting Public record indicates that the most recent transfer of both subject parcels occuried on April 7, 2022 at price leveis that are higher than can be supported itom the capitalization of market net opcrating on Document 42022.131847 for a consideration of S360,000. This sale represents when the current income. owner acquired the property as part of an arms-length-transaction with broker involvement. The current owner reports that the property was tenant-occupied at the time of sale. Additional details of The Cost Approach to valuc has been excluded as market participants do not consider this approach in this transaction were not provided. To note, fhe property has heen red tagged since 2021, so any making a purchase decision on a scasoned mperty like the subjoct where there is significant remaining occupancy at the fime of 2022 would have been illegal. economic life and where the underlying land valuc is not predominant, which is the case for the subject.
Page: No other transfers of the sabject title are known to have occurred during the past live years.
EXHIBIT Description: Reference:
176
Subject Occupancy ASSIGNMENT CONDITIONS
The subject is currently vacant. The following assignment conditions are pertient to the valuation.
Assessed Valuation and Taxes Extraordinary Assumptions
The following tax information was taken from the subject's tax roll obtained from the San Bemardino An assumption, directly related to a specific assignment, which, if found to lo false, could aller the County Assessor's website. appraiser's opinions or conclusions. *The subject parcels are located in Tax Rate Area 006-088 with a 2023-2024--tas rate of 1.320798%. The following Extraordinary Assumprion was udlized for this analysis:
which excludes special assessments. The subject's total assessed value and taxes are as follows:
The subject is being appraised with only the 1,270-square-foot retail/office building included in the Assessent Your: 2823-3024 Paccel Nember: 0136-21515-0000 Land Value: $153,000 Tex Rate: 1.320798
Improvement Value: 214,200
Total Assessed Value: $367,200 Taxes: 54,873.58
At the time of inspection, the retail/office bailding had visible signs of deferred maintenance that maintenance/cican-up/weed
Assuming a sale at the appraised value of $340,000 the new annual taxes based on the 2023-2024 tex missing/broken windows and non-scaled window/door francs, damaged/missing interior flooring. rate of 1.320798% plus special assessments of $23.61 will be $4,514.32. damaged interior walls in need of minor repairs and paint missing clectrical fixtures and some exposed According to the San Bernardino County Tax Assessor's website, the subject currenly has defaulted wiring and need for additional air-conditioning mini-splits in order to properly cool the buslding. laxes arl penalties. The current redemption (otal is 57,654.53.
Multiple contractors in the area were consulted with pictures shown when able to obtain opinions regarding costs associated with reclifying these areas that need to be addressed prior to the property being in occupancy-ready coadition.
Based on all these sonrces, an estimated "cost to cure" of $20,000 or t515.75 per square foot of building area ($20,000 / 1,270 SR = +S15.75/SF) will be deducted from the indicated values in the Income & Sar Contain prace to dies in es frey are propra. that a yical tenant or The premise for the Extraordinary Assumption used in this analysis is that all areas of deferred No cure oficate derace in li mayin. Unt bein rope pay and one is a200 C5.
Pote condes of i repose careso i and de ide and vie order to rive the as is.
The use of the extraordinary assumption may have affected the assignment results.
Page S or45
Hypotbetical Coaditions
That which is contrary to what exists hat is supposed for the purpose of analysis.
This assigament contains no Hypothetical Conditions.
P
EXHIBIT Description: Reference:
177
8 REGIONAI OCA BON MAP
LOCATION DESCRIPTION Cedarpinal Parl
•Sootien *Very Enchandan the
The subic is bosed in fiato in San cardino Cony. Location details pertinent to the sabiject County Description
San Beadin Come is are or in, losin the orige the Sue an Salianis Moropolian Nerves one often at of ael on en contes the is Cony to the south, the to Part Bird ArE som SI
access to Las Vegas to the north and San Diego to the south The 210 and the 10 Freeways provide _Віста Rancho..
access from Los Angeles County from the west. Cucamonga The San Bernardino-Riverside County region known as the Inland Empire forms the largest gcographical Metropolitan Statistical Area (MSA) in the nation with over 27,308 square miles. The Inland Empire has benefited from vast quantitics of developeble land along with its proximity to major орав employment centers in adjoining Los Angeles and Orange Counties. The Inland Empire economy continues to show great potential in the long run due to its position as the ceatral lub for logistics CALIFORNIA! related to international trade and as the area where the most significant population growth is expected.
Fontana-
According to the California Department of Pinance, San Bemardino County had a Jannary 1. 2024 W Marria. population of2,181,433, a 0.4% increase over 2023 (2,172,694 residents). 8re Ave
San Benardino County's varied economic base includes administrative services and support scrvices, healthcare, trade and transportation, leisure and hospitality construction, government, professional, scientific, and technical services, and private educational services.
Tarm May 20.3 pure: 2illow mating County is S552,426 as of May 2021, an increas of 0+45
City Description-Rialto
The subject is located in the northeast portion of the city of Rialto approximately 60 miles to the cast Mira l of Los Angeles and approximately 103 miles north of San Digo. The city is bordered by the San Bemardine National Forest to the north, an unincorporated section of Riverside County to the south, Page: the city of Fontana and an unincorporated section of Riverside County to the west and the cities of San Bernardino and Colton to the east.
EXTUBIT
EXHIBIT Description: Reference:
178
HAP
Rialto has a pro-business attitude, relatively lower land and labor costs, good surface transportation, rail service from the Union Pacific and Burlington Norther/ Santa Fe, and access to three airports. To N Chifford Ave Holly St. E 'Holly St encourage industrial development, Rialto has a proactive Kedevelopment Agency, as well as a State N Wilow Ave E Valencie St Recycling Market Development Zone.
W Eliwande Ave E• Efwanda Avo Rialto is served by the San Bernardino freeway (1-J0), which runs cast/west through the southesn N tdy@wild Ave W. Morgan St: W Morgan St portion of the city. the Footbill (210) Freeway, which runs cast/west through the northern portion of E Ven Koevering Si the city and the Riverside Freeway (1-215), which travels in a north south direction approximately 2.00 W. Victoria St. E Victoria St. miles cast of the cily. These freeways connect the area to San Gabriel Valley and Los Angeles on the N Enormood Ave W Cornall Dr W Comell Dr west. the Coachella valley and Arizona on the east, San Bernardino and the I-15 Freeway on the north W'Rosewood:, E Rosewood Si: and the Temccula Valley and San Diego (via the 1-15 Freeway) on the south.
N Larch Ave Meision 8t:
W Grove St E Gove SI The major surface arterials in Rialto are Riverside Avenue (north-south), as well as Bascline Road.
W Grove St- 'W Ramona Dr
4 Ramona Dr Foothill. Boulevard, Rialto Avenue. Merrill Avenue, San Bemardino Avenue and Valley Boulevard (cast-west). The 1.A/Ontario Internarional Airport is located 17.00 miles to the southwest within the Avie: *E Foothal Blyd.. city of Ontario, and provides the closest air service.
N: Lanch Ave Holladey Pi Millerd Rialto has a May 2024 unemployment rate of 4.8%, which compares with 4.3% for San Bemardino W 3rd St: 11 County as a whole. Average house prices in Rialto are $576,342 as of May 2024, up 8.1% from the Ave E loKinley 5t- previous year (Source: Ziflow.com).
Avo ВІДОВСТ •E 2nd Se 2nd Si
W 2nd S1:- Aive 1345 WicH Ave 5 King S E Kine St
1 - Rioto, CA 92376 Neighborhoed Boundariks
N. Cactus E Erwin St
W 1ot E int St--.
Following is a quick louk at charscteristics of the subject location followed by a more specific focation W. Ristto Avo E Riato Ave description:
W Rishto Ave E Riatto
1.2 Sabject Location & Neighborhood
Location/Market Items: Land Uses:
E Bonnio View Dr. Neighborhood Suburban Residential 65% E Wilson Si General Condition Average Office/ Goverament 12% ¡E Wison SI E South: 82 Development Stage Industrial
5 Cacius Ave T Established 596
E South 6l 13%
Value Trends: Stable Commercial/Retail
Adjacent Properties Conforning Golf Course, Parks, etc. 3% E Merrill Ave Retail Vacancy 2% to 3% Vacant Land
Aive Overall Market Condition Stabic Total 100%
s Wilow Ave -
Iris SI ROLLBONS Sage Neighborhond boundaries are defind as:
North: Foothill Boulevard
§ CActus Ave. South: San Bemardino (I-10) Freeway
enty
East: Pepper Avenue
E Grent St West: Cactus Avenue
Page: 7 or45 E. Fromer
Randall Ave
P S-Spruce. Ave $ Riveride Ave mi - N Eucalyptie Ave
home
EXHIBIT Description: Reference:
179
Surrouading Properties Business Trends/ Conclusions
The subject's Rialto neighborhood is mostly built up with some land available for development in the The sue has are suerior site location on the west side of. Willow Avenue. Presented belov are immediate and expanded market area. The immediate district is generally established with a stable concentration of office, commercial and residential properties. Changes in the neighborhood are not expected in the near-term around the subject's immediate market area. Demand for sites in or near by the cly and a vete a vocan dot ay properly that has been red logged Downtowa Rialto that allow for redevelopment with moder office or cominercia/retail properties in the arca is stable and has historically been in demand due to the North Riverside Avenue South: exposure'location and core features of the arca
A plentiful labor market with desirable and abundant employee housing is available in close proximity.
East: Acrose s it Are ta cid af Rile complex with buildings that ortal de sue bact out dis alry. rose sea on and see ever the long tease West: Rialto Public Works Department
The best is lone i or i mines it preity to the ice Cit Cented tie located in the neighborhood. The subject is compatible with the surroundings.
Specific Location Features
The subject is located within close proximity to major Southland ticeways, residential neighborhoods and support commercial office services.
The subject has convonient frecway accossibility. The 215 Freeway is located 3.80 miles northeast of the subject via 5* Streel, the Foothill (210) Freeway is located 2.20 miles north via Riverside Avenuc and the San Bernardino (1-10) Freeway is located 2.00 miles south via Riverside Avenue. These freeways provide convenient access to other major freeways in the area, which in turn provide convenient access to the entire Southern California freeway network, Also benchting the subject is its In choosing a place of business for retail and office users, gaick and convenient access to the freeway system and proximity to desirable housing and labor is of primary importance.
Access/Exposure
80:45
The subject's access and exposure are good for a commercial site in the market area.
Page:
EXHIBIT Description: Reference:
180
PARCEL MAP
SITE DESCRIPTION
APN: 0130-211-15-0000
The el pain sentin i bated on information bained firm a interiov with the property.
Land Area /APN): Site Area (SE) Street Frontage/Depth
Toms of Rest 4% All. Subs. 0130-11
0130-211-15-0000 7.500 SF Sce Plat Map
Total 7,500 ar 10.172 acre
Surplus Land: None 47/нЕ -
Unusable Land SF None
18. 1/0
Comer/interior Site: Interior
Shape/Utility: Mostly rectangular/functional
Topography: Cienerally levol
Zoning Designation: CM, Commercial Manufacturing
Allowable Uses: The CM zone allows all permitted uses in the Mi zone and C3 # 127 j zones. Uses allowed in the Ml zone include: light manufscturing or treatment of products, auction houses, bakeries, assembly. bus repair and storage terminals, body and fender work, painting. cleaning and dying plants, processing uses. distribution. packaging, food product manufacturing. lamber yards, sheet metal plant, radio/tonant stations, truck terminals, Plumbing shops:
wholesale, foundries or metal fabrication, collection facilities, T.6.%*" restaurants, processing, light industrial and other similar uses. C3 allowable uses include a wide array of commercial/retail and office uses. Some specific allowable uses include: funeral homies, fumiture warehouses, animal hospitals, car wash stations. skating rinks and boxing urenas, drive-in theaters, asto repair, used car lots, whatesale, tattoo parlots. entertainment eslablishments. arcades. de. An expanded amount of retail and office uses are allowed since the C3 zone allows for all allowable uses in the C2 and Cl zones.
Page: 9 o+45 Current Use: Vacant
Complimce to Zoning: The subjoct is currently vacant, but the design of the property is conducive to secondury retail and office uses, both of which would be permitied in the CM zone
EXHIBIT
EXHIBIT Description: Reference:
181
The required parking for office and retail uses that would occupy the subject is 1 space per 250 square feet of building area. Based on city parking guidclines. the subject would be required to provide * 6 on-site spaces. The subjoct has 12 front striped parking speces indicating a 9,45: | parking ratio.
Street Improvements: Asphalt paved, concrete curbs, sidewalks & gutters Utilities: All installed
Flood Zone Designation: Zone x
Inside 100-Year Flood Plain:
Flood Panel-Flood Map
No./Datc: 8657H1-06071C8657H/ August 28, 2008
Special Stadies Zone - Source:
Alquisa Prolo:
Seismic Hazard Zono
Liquefaction: No
Earthquake Induced
Landslittes:
People ones apart in this relatinda containe relatedl
Adverse
Easements/Encroachments: The subjed has no known adverse casements or encroachments.
Preliminary Tille Report: 4 preliminary title report was net provided for our review.
Utility casements are assumed to exist as typical. A premise of this appraisal is no existence of adverse title conditions, casements, or encroachments that would catse a loss in value or prohibit development. Identilication of these items is of a Page: 10 0+45 legal natur and an attorncy specializing in this field shoutd be consulted concerning this field for taeir opinion concerning these items. This report is not intended to render any opinion whatsoever regarding any adverse title conditions, casoments or encroachments that may affect the subject property.
P
EXHIBIT
EXHIBIT Description: Reference:
10 182
Soils/ Hazardous/ Toxic IMPROVEMENTS DESCRIPTION
Conditions: This appraisal assumes the site is free of dctrimental conditions In in Torenzas description is based on our exterio and interior inspection of the sabject property has any hazardous contamination. Property Type: Retail/Ofice Building Our value estimate is predicated upon the assumption that the Year Built 1925/ Rene. subject property is free of any toxic matcrial, or any other adverse No. Buildings: Onc with icardown storage building, garage and basement 2223 No. Stories:
Onc
Quality. Low Quality
Comments: Contine residing soils and ait oniontions and Lining Building Area:
Building Area Breakdown Improvement Areas
Usable/Rentable
Buikding. Arca
1,270
12700 1.270
Percent or Toral 100.0%
Bascincot (inegnily renovated) $346
The or at n Are Sean, and openin: 1270
City Rocords
Pubio Record 1990
The bets being prated with only the 1270 guare foot
Page:|/ of 45 demolish this this structure along with the lower-level basement and garage Is deducied in this analysis io arrivo ai the subject's "as is" morker all in ghese serumures are excluded from the suljeer s P
15 EXHIBIT Description: Reference:
183
SKETCH/AREA TABLE ADDENDUM
SUBJECT INFO
File No.: Parces No.:
Property Addresa:
ourry: ZipCode:
Orner: Site Coverage Ratio/
Client: Chent Address:
Appraiser name: Inspection Dote: Floor to Area Ratio (FAR): Based on the subject's 1,270 square feet of gross building area and the SKETCH total site area of 7,500 square feet. the site coverage ratio is 16.9%.
The floor to arca ratio is 0.I7.
Parking: The subject has 12 on-site parking spaces indicating a 9.45: 1 parking ratio.
Design and Layout: The subject's marketable improvements consist of a 1,270-squarc- foot, 1925-buzlt retal/office building positioned on a 7,500-squarc- foot site. The building is positioned in the middle of the site with a pave partina do to die ate l don door on the easiera clevation Storage Bakshe
Personal Property (c.g., FF& E, M& E, etc.) or Intangible Property (L.e., business enterprise value), if any, are beyond the scope of work of this engagement and are not considered in this appraisal report of the real estate only.
Recal Beleing
Association Pecs: None
Coustruction Details
Foundation: Raised concrete foundation
Construction Type: Wood frame & stucco
Exterior Walls: Wood frame with stucco and wood siding covering AREA CALCHLATIONS SUMMARY Roof: Asphalt shingle (pitched) Description Not Sire Perimetar
Recall Bidg. 1270.0 158.0
Storage Bulking 555 T20.0 112.0 Interior Finishes:
Gerage 272.0 GG.0 27000
and fluorescent lights.
Heating and Air
Conditioning: No HVAC. The subject had one mini-aplit unit and one thru-wall air. conditioning unit
Restrooms:
P Page: Electrical: Adequate commercial service
Sprinkler: None
Net LIVABLE 720
Net BUILDING (rounded
1,270
16 O Sarcap Manating, LEC. doa Apax Sottware
EXHIBIT Description: Reference:
12 184
Deferred Maintenance: Other than the areas discussed and addressed in the Assignment Site Improvements Conditions soction of this report, no other items of delerred and Landscaping: maintenance that would warrent immediate attention were noted during the inspection an July 10, 2024.
Economic Life:
Maintenance History: And ratios a bit is as a as price in a pion to subject had various areas of defered maintenance (i.c. damaged 25 years for the subject's effective conomic age is reasonable. The stucco, missing/broken windows, missing light fixtures, old/damaged shject's remaining economic life is estimated to be 30 years with flooring, minor damaged (in need of paint) walls and weed proper ongoing maintenance. abatement/site clean-up. At the time of inspection, the subjoct was in fair overall condition. The applied "cost to cure deduction will bring ADA Compliance: The sabject property is appraised without a specific compliance the subject to average condition for a low quality office/retail building survey having been conducted to delermine if the property is or is not in the subject's market. This appraisal assumes that plumbing, in contormance with the requirenients of the Americans with Disabilities Act. This appraisal report assumes that the subject is not me or stifled conti ate and fein are is operational impacted by any aspects of the Americans with Disabilities Act and codes. that there are no known non-compliance items.
Seismic Risk Issues: As of the his april, i city of ato ta on pee requirements.
structural integrity of a building and no responsibility is assumed fo:
any conditions or for any expertise or engineering knowledge required to discover and/or cortect such conditions if they exist. A qualified expert in this field should be contacted for addtional information, if nocessary.
Climate Emissions/Energy
Efficiency Laws &
Regulations: This section identifies any relevant climate/emissions/energy efficiency laws and regulations impacting the subyect property, the property compact, ce pications of nons complince, and the Page: 13 of y Pope on on is in lie the lies agreeings the ambject To est bin an open as of alively rile ery maliy rity.
impact.
EXHIBIT Description: Reference: 13
185
MARKET CONDITIONS KEY NOICATORS
The subject is a freestanding building that is capable of accommodating both secondary neighbarhood 1356020 #righbartood Corder 7S,206.739 11/:x/
15,415 900
Generas Recal 7U,735.950
2.803,730
Information reading oo une Empire ei lake i por set uat Is, 2ndent research and METRAT:
arrest Tracke
Overview Vacancy Crage (YON
12 Mo Deteries In OF Nor Autorpion SF mill
.t2 No Net Absorption la SF Sarket Asking Feet Omwh Dennis se 05000 Hake Askerg Herd Great
781K (16.9K) 5.8% 3.4% Saits Volame
Inland Empire retail market fundamentals remain tight from a historical perspective but have recently softened a touch. Space availability has expanded 60 basis points from a decade's-plus low, reaching Leasing
6.4% as of the socond quaiter of 2024. Nevertheless, availability is still down subsrantially from an carly pandomic-cra peak of 8.1%. Retailers expanded in the market to meet a rise in resident buying Vacancy in the Inland Empire has expanded 40 basis points since the end of 2023 due to supply power driven by higher-income houscholds moving into the arca for its affordability. additions and a rare loss of tenant occupancy. Although vacancy has increased from all-time lows, it is still tight historically, trending at 5.8% as of the second quarter of 2024. The demolition of the zombie Net absorption slowed to only 615,000 SF in 2023 and ran negative in the first quarter of 2024. Closed Carousel Mall in downtown San Bernardino in late 2023 removed a large block of vacant, unavailable furiture stores and department stores drove the recent occupancy losses. Absorption is not likely to space from the market. ramp up in the next few quarters as leasing activity remams a bit subdued. New leasing volume has fallen bolow 1 million SF in recent quarters, doclining slightly from 2021-22 levels and falling 25% The tightest retail submarkets across the Inland Empire coincide with areas where housing development short of the market's prior decode quarterly avorage. Market observers have noted that a lack of has been rampant. The Airport Area and South Riverside submarkets register availability cates below competitive available spaco contributed to weaker leasing and slower retail tenant occupancy 5% and stronger net absorption over the trailing year compared to areas farther cast with slower housing expansion. development and population growth.
Subdued leasing and absorption also reflect a slowdown in local economic expansion. Employment Net absorption was robust at roughty 2,5 million SF annually in 2021-22 but limited more recently in growth in the region slowed to under 2% in 2023 and migration into the market has slowed from part due tu a lack of desirable vacant space in the market. Net absorption subsided to 615,000 SF in pandemic-era highs. Locel consumer spending has temained stable for more than a year, generally 2023 and was negative in the first quarter of 2024. New vacancies include an 86,600-SF freestanding trending between 5% and 10% above pre-pandemic lovels on a weekly basis. Assuming the conomy building offered for lease or sale, 14444 Aptar Drive, which was vacated by the furniture store continues to expand at a slow paic, vacancy will rentain stable. Howard's. Also, a 134,000 SF building at the Montclair Place mall, formerly occupied by Nordstrom, was listed for lease and an 80,500 SF building, 4010 Highland Avenue in the Highland Avenuc Plaza.
Property owners are pushing market rents higher but at a slower pace as space availability rises and was vacated by Bundle City Outlet. leasing remains slightly subdued. Rents increased by 4.6% in 2023, down from a ncarly 6% jump in 022. Furthermore, rents are forecast to increase by a more moderate pace close to historical averages New leasing volume in 3023 and into 2024 bas fallen short of 1 million SF per quarter, below thc etween 3% to 4% this year as demand and supply remain balanced. market's prior three-year average and 25% short of its prior decade average. As a result. availability increased by over 1 million SF in 2023, ticking slightly lower in the first quarter of 2024, to 13.I million SF, or 6.4% of inventory. Availability in the Inland Empire has trended above the national averagc since the global financial crisis recession, partly due to an excessive amount of undosirable inventory.
Page: 140545 Same of the older big-box buildings have been leased to cannabis growers, rocreational vehicle storage companies, and other storage-related users in recent years rather than traditional cosner-facing retail tenants.
P Retailers is the Inland Empire depend on focal consumers as leisure travel in the market is modest, and the area's supply caters to local demand, with roughly 40% of inventory constituted of neighbothood centers, compared to the nationnl average of 16%. Strong tenant demand for both in-line and anchor EXHIBIT Description: Reference:
14 186
VACANCY RATE
spaces witbin neighborhood centers has driven availability in the subtype fo a 25-year low of 8.4%, although it does trend higher than most ober shopping center types historically and currently. Mail availability rose most substantially in 2023, ticking down in 2024 to 9.4%, while strip center and power center availability treads at 6.1% and 5.7%, respectively. Availability among general retail buildings, which are often freestanding, also registers just 5.7%.
Exporicatial entertainment providers have been active in the leasing market. For example, Main Event Entertainment signed the largest lease in 2023, for 52,000 SF in the Montclair Place mail. Dave & Buster and Sky Zone also signed new leases last year, and Ninja Factory leased a 14,000 SF space in 2024. Gyms such as EOS Fitness and ENDO Fitness signed new large leases in 2023.
Vallarta Supermarkets is expanding into the market, signing a 60.000 SF lease at Orchard Plaza in Rancho Cucamonga in carly 2024, following a 50.000 SF lease in Hemet Village in June 2023 and pre- leasing another 50,000 SF space, at the Van Buren Marketplace in Jurupa Valley in 2022. Dollar Tree 2018 201 1 20262026 202 e 2025
signed six new leases in 2023.
NET ABBCRITION, NET DELIVEReS & VACANCY • Urted Better
• Poser Carter sup Corter • Outer Rese
ecast
8.0% AVAFLANLITY RATE.
7.5% 18%
70%
6.5%.
кузин 50%
50%
4.5%
4.0%
2019 2021 2024 2026
05-2016 2019 2023
4 Vacancy Unded Slates Vacancy 2V%
• Mass Erora
Seto Center
Rents for retail space in the Inland Empire are rising, but the pace of increase has decelerated from record levels as availability has lifled higher and casing has moderated. Reat growth has decelcrated Page: 150145 from 5.9% in 2022 to 4.3% in 2023 and measures 3.4% over the trailing year as of the second quarter of 2024.
Rent growth amung neighborhood centers registers slightly above market averago, at 3.7% dae to historically compressed availability in the soctor. Conversely, availability among general retoil space has expandal from a low of 3.2% in unid-2022 up to 3.8%, leading to a decoleration in rent growth P down to 24%
EXHIBIT Description: Reference:
15 187
Constructon
Duc to a severe downtum in rents that lingered for over five years following the global financial crisis, it took more than 15 years for retail rents in the Inland Empire to recover to their pro-Great Financial Ketail declopment has been relatively scarce over the past ten years and is concentrated in submarkets Crisis levels, a fat reached in 2022. Rents average $26.00/SF. triple-nct as of the second quarter of where housing development has ben more active. As of the sccond quarter of 2024. 790.000 SF of 2024, overtaking the national avcroge again in 2019. Although local rent growth has decelcrated, it still relail investory 1s under construction market-wide. Deliveries have generally trended lower since 2018 outpaces the 2.6% national increase, continuing a trend in place since 2016. Looking ahead, rent growth and, in 2023, fell slightly short of the market's prior decade average with Ioss than 800,000 SF of spacc decelerates along with the national average in 2024-25, but still oufpaces it. completed MARKET PRIG RENT OROWTH YON Due to the demolition of the roughly 900,000 SF Carousel Mall in San Bernardino, net supply change over the truling year measures -160,000 SF. The aged mall fell out of favor as the population grew in Forecast suburban areas, and new malls developed nearby raised compelition. Renaissance Downtowns USA and ICO Real Estate Group won the contract to redevelop the property, primarily into housing. In place of the rati de loper a poity icaders envision 2,00 10 3,500 residential units along with markct.
Partially completed in the first quiter of 2024, Town Center at the Preserve, a 170.000-SP retail development at the center of a master-planned community in Chino representa the area's first significant completion in over 5 years. Lewis Companies, a local developer that has built several shopping centers in the Inland Empire, pre-leased the development's 55,500-SF anchor space to Statet Bros. supermarket.
Several large iteestanding buildings have been developed in South Riverside Comty In Murreta, a 0% 2012010 151,000 SF Costco opened in 2023 near Clinton Keith Road, and a 150,000 SP strip center called The 2018 2025 2028 2027 Vineyard is under construction. Krikorian Premierc Theatres was developing a |20,000-SF community center anchored by a 14-screen movie theater in Menifee, but construction work at the site halted in • Her • Neticorned Corce: •ll Genera Soled 8 insand Eropro 2020 at the onset of the pandemic and did not resume, with the city issuing a nobice to demolish the Stop Certer incomplete theater building at the site in September 2023, Retail pads at the site have resumed construction.
MARKET ASKING RENT PER SQUARE FEET
The Big a at place on River mid a bou is underin a 6,00 st tacon eith aroun years, drawing the higher-end grocery store. The shopping center was originally developed in 2017 and is already anchored by Walman.
Within the Beaumont/Hemet submarket in the city of Winchester, a new 100,000 SF strip center is being developed on Domenigoni Parkway
021 2025 2022 toda
Page:l of 45
• Negrostood Carter I Generai Recan • lend Empoe
•I Power Cente Sro Cerse: • One Real
P
EXHIBIT Description: Reference:
188
Higher interest rates and stricter lending standards have cooled investment activity, especially among DELNERISE & CSMOLITIOHI institational investors and REIT's, which only account for 3% of acquisition volume over the trailing ¡Forecast year, dowa from 12% historically.
Cap rates in the inland mpire trond significatly above Southern California's coastal markets, where acquisition demand remains stronger. As yields adjust to higher capital costs. cap rates are expected to expand by more than 100 basis points from an all-time low annual average of 5.2% in 2022.
Multi-tenant assets have recently traded at cap rates over 6% recently. Fur example, The Club Center in San Bersardino, an 87,100-SF community center at 295 E Caroline Street, which caters to Boating boat side cap rao i Mana 2024, Anding re% led tire Contino Siz. 18/SF, triple-net.
- 2025 20252027p So a cha da Chino is pri 020 it riper deleted or 57 milien, or
1.000 201 201020202021 20223 2024 2025 value-acid opportunity with current uncome rents 25% below market according to marketing materials, • No Deracos mnging from the high $20/SF to low $30/SF range, triple-net. • doverse
Single-tenant net leased assets are still attracting robust investment interest. Representing one of the bolted suc most covered assets in commercial real estate as a virtually risk-free investment, a brand new 4,100-SF Praiseed AN EMO Lander Compa bailding in San Bernardino lensed to 7-Eleven for 15 years with 10% rent increases every 5 years traded
05.2% 20301 at a 5,1% cap rate in January 2024. Truck stops and service slations have also traded at cap rates of Lone 85.737 around 5%.
738% 343%
120% 12,092 13.460 Loan assumption deals are picking up in seaction to higher loan rates and limuted access io capital. In 610% 13.125 December 2023, El Segundo-based DPI Renity acquired Tri-City Centre, a fully Icasod. 151.700-SP 9,623 asset, for $25.4 million, or S167/SF, assuming S1S.5 million in debt with a 4.75% intcrest rate from the 14,990
seller.
= =5O27O 14292 17,506
... BALES VOLUME & MARKET SALE PRICE PER 3F
All coner 3,400 $1.000
23001 ¡Forecast
59C0
Under Construction Properties $900
9380 $700
Propertes Square Feel Percent of Inventory Prolessed
3280
62 791,799 0.4% 80.9%
1 420
of
$180 $200
Investment in Inland Empine's retail masket has declined on par with national treads. Sales volume in 2023 totaled $1.2 billion, falling 29% short of the market's prior 5-ycar averagc, compared to a 33% $ 160 1- 2026 2025 2026 2022 0145100 2018 2019 2020 2021 2022 2023
page: 17 rational downtum. Activity has remained consistent in 2024, with 5246 million trading in the first quarter, but could increase as the year progresses, as the Fed has ended its ratc hiking cycle. However. sales volume will likely come closer to last year's total compared to over $2 billion traded annually from 2021-22.
EXHIBIT Description: Reference:
11 189
MARKET CAP RATE Economy
6.0%
¡Forecast The Infand Empire leads Southern Califomia markets in post-pandemic job growth and has outpaced
7.5% the notional average significantly, with an aggregate 6.2% gain, based on an increaso of'ncarly 100,000 workers. Furthermore, the Inland Empire is bucking the trend of moderating job growth seen nationally
7.0%e heading into 2024.
6 5% Although the market's 1.6% expansion in payrolls in 2023 fell short of the average 3.4% growth rate achieved over the past ten years, the pace of job growth is accelerating and slightly outpaces the national 80% avernge. loland Empires job growth forecast also outperforms the national avenge, based on the continuation of positive trends established over the past decade. The market is becoming more 5 5% expensive but still maintains a competitive advantage of affordability, and many commercial real estate developments underway across the markel will provide capacity for additional employment 22023+ opportonities.
202420252026 2027+
Bolstered by e-commerce growth and industrial space development, transportation and warehousing 55 Me account for the majority of post-pandemic job growth in the metro. Employmeat in the sector has • Poser Carter St; Carter expanded nearly 30% from pre-pandemic levels to over 200,000 workers. However, it contracted in 2023, along with wholesalc trade employment.
Sales Past 12 Months.
Inland Empire Retail Due to the market's affordable and abundant land near Souther Califomia's twin ports, most national Sale Comparables retailers bave established warehouse and distribution centers in the arca, and third-party logistics Avg. Cap Race Avg. Price/sa Aig. Vacancy At Sale providers expanded alongside them as e-commerce adoption acceleraled. The twin ports process 502 6.0% $277 6.5% roughly a third of all U.S. imports, much of which is transported further inland via rail and highway.
Imports are rebounding in the opening of 2024 now that West Coast dock workers have agreed to a SALE COMPARABLES SUMMARY STANSTICS new labor contract.
Sales At too
Sale Priot 561,124 82,307,330 31.392.000 524 006,437 Amazon's operations in the market have exploded. The c-commerce giant opened its first California $5,300 fulfilmens center in San Bernardino in 2012, expanding to approximatcly 30 industrial buildings across the Inland Empire today and becoming the market's largest public company, employing roughly 30.000 68% 15.0% local workers.
283-38:38 834,501 Nation. Empty emile rand slighty are due to nia shigh proportion of petited tracie he the marker's consistently warm weather and affordability, a plethora of retirement communities 197.091 generate outsized demand for healthcare services and medical-related real estate. Tourism is vibrant in Palm Springs, Big Bear, and Temecula, primarily attracting in-state travelers. * *- **** Major cities are concentrated in the southwest portion of the market, lining interstate 15, which runs northeast to Las Vegas, and Interstate 10, which runs east across the Southern U.S. Roughly within an hour's drive from Los Angeles, Riverside is the largest Inland Empire city with over 310,000 residents. followed by over 200,000 residents in San Bemardino, Fontana, and growing Moreno Valley. page: (6045 San Bernardino is the largest county by land mass actoss the continental U.S.. spanning over 20,000 square miles from Los Angeles to Califomia's border with Nevada and Arizona. Running east from Orange County, Riverside County adds anotber 7,200 square miles to the combined Inland Empire market arca.
P
EXHIBIT Description: Reference:
18 bl
Reference: Description: EXHIBIT
P
Page: 190-45
HOO1 - → B20% 1202, 920% 520 1202, 5202, 2005 4202, 0707, 8602 900291- NOOL
jiji
4090
5I1€
ESCUER SALING DUE PUCOMACA
*Ito
2209
1200 512 P
iiiiii: MINO
TO:C от ро совова "аред
2 5 Generate
s00r 10aena
INLAND ESPIRE CMPLOYHENT BY HOUSTRY IN THOUSANDS
06L
191
MCDIAN HOUSENOLD INCOME NET POPULATIOH CHANGE (YOY)
$100K ; Forecast Forecast
595K 45K
$90K 40K
$85X
POUR
30K
$75K
$70K 25K
20K
$60K-
2, %
DEMCURAPHIC TRENDS
POPULATIOH OROWTH TOY SL 125orh Change 16 Ter Change
4704.774 10%
1450.029 10747414
101273 20%
10% 2.171.102 167 ฿43,403
6.1%
0 0%
POPULATION GROWTH LABOR FORCE GROWTH
0.8%
00%+ 21+2+*2
Il ciend impre • Unadi
P
EXHIBIT Description: Reference:
20 192
SUBHARKET INVENTORY
12 Blenta Oetvanter mn cocteacin Rale
SF W00 i ubear tet.
à u l P/IND
Arpet Nos 27,104
- c a. +f Brannstd lesset
(tro chero His
27,313 rolan
11,351 •ansaroä -al .. .
We are rve vaar 10.20 #99193953
¿foreno Vader Pers
Mureso Vaier toms .. . =.-.I *.**... .
RAa rest xc4 Landa 10,052
.....
17.441
Strersid Curtying
Feren de : klyng
00 000007
san demaruno
-• 5 sor desaroo eryno
...= 81973 Soun Arersce
Saute Rveito 95g= *AN
Terrasone Pant
OVERALL SUPPLY & DEMAND
12 Scrt) Machet Asking Reex
203,799.216
2001.204,403 1'05
(hsemnoni 1lamet
200.012874
831.
202,797,347
$30 47 202,441,643
202.170.807
52527 37% 201 703,175
abo voht.Pene 200,036, 142 2.838,841
$28 71 201.144.011 2441,071
$27.30 .... ......
BON =0 ***.. 'ING=a 39.** 288089
POBe:21 or45
P
EXHIBIT Description: Reference: 21
193
OVERALL MENT & VACANCY Subject Property/Broker Intervicws Martel Rating Fuse
Poor Cho
12,302,M7 Active brokers familiar with the subject property type and markel area were interviewed during the
12.280,120 course of this assignment and are listed below:
11,944.200 015
11.547.300 21%
11.430,790 - 5.7% 24% ' Broker Naunc Company Contact Number 35%
0-3 Jacob Bemardy KW Commercial (909) 980-6868
0.7% Andrew Shirk Voit Real Estate Services (909) 545-8009 ..... M9883858 .... 13.633,264 Spencer Hull Lee & Associates (951) 276-3651
15.360.563
12,002,219 6.8% These brokers provided the following insight:
19360,730
19,013,141
13.800.000 -09%
19.302.165 -0 1% SUBJECT PRIMARY MARKET SUMMARY
16,658.223 a 1% Subject Oecupancy History:
16,418,678 Current _ Vacant
17.376 242 At Close of Escrow N/A
General Trends per Broker Consensus
Rental Rates: Rental rates for smaller retailoffice units in the subject's Marta Pride Trends O
Ang Mical Are Cap Rom retail market are relatively stable st the current time after an 1 Cap Fate
$312.59 extended period of appreciation during late-2021 and early- $300 us to-mid-2022.
1284.81 Vacancy: Total retail vacancy in the subject's Inland Empire market as reported by CoSter is at 5.8%. This is above the vacancy for 528100 6 2% smaller freestanding oflice/retail wits in the subject's 3421 CH 12,465,045 5256 S1 $286 30 Downtown Rialto market reported by brokers at 2% to 3%. 5128 52,915,326 527: 45
A physical inspection of the subject's immediate Rialto arca supports this vacancy rade of * 2% for similar size
121 retail/office umits
Sale Prices: Sale prices for retail/office properties in the subject's market appreciated throughout 2021& early-to-mid-2022. Recent
9889358 infintion and the rise of interest rates stabilized property й й 121146 values over the past #:18-months with price levels similar to $206 51 carly-2022. Values are anticipated to remain stable over the $180 34 S194 20 next 6-lo-12-months due to stable, but higher interest rates.
Marketing Pcriods. 3 to 9 months for a property like the subject if properly priced and marketed
12-Month Outlook: Looking forward there me signs that the levent marker cooling off period associated with record high inflation and the Federal Reserve's response to this inflalion in the form of rate hikes in 2022 and carly-to-mid-2023 mealings is coming to an end.
Stressed
The Fed has not raised rates in their past six meetings after raising rates by 25 basis points in each of their previous for 2023 meetinga and by 50 basis points in December 2022 after three increases of 75 basis points in October 2022, September d 2022 and in July 2022. The Fed also ended their bond-buying program in April 2022. These moves increased the cost of 36 22
194
In speaking with brokers, are concluded on the subject's market positioning as follows:
SUBJECT PRIMARY MARKET SUMMARY
capital across the board, which includes SBA commercial property murtgage rates which have increased to over 6.50%. or-sitc parking.
The FED target range currently sits at 5.35% to 5.50%, the highest it has been cinco October 2007.
Major real estate investors have become more cautious on their value-add/ core investment deals which are typicalty lower quality. underwritten on large rent growth projections over a 5-t0-10- year period. The recent rise in inflation makes these deals Our estimate of valuc fakes the above factors into consideration. harder to project, which has slowed investor presence in the market, a segment that has been significant in pushing
property values upward.
Overall, signs point to near-term stability now that the FED INCHEST AND BEST USE SUMMARY has stopped raising rales with most analysts anticipating rates to remain unchanged at the next FED meeting. What happens The team highest and best use, as used in this report, is defined as follows:
in the next 12 months is somewhat speculative, but persistent high-interest rates can negatively affect the stock market. The reasonably probable and legal us of vacant land of an improved property, which is physically trade and the banking sector. These factors will likcly weigh possible, appropriately supported, financially feasible, and that results in the highest valu. on the next rate decision and the majority of unalysis and futures markets point to rate cuds by the end of 2024. This, The four criteria that the highest and best use must meet are iegal permissibility, physical possibility. of course, will all depend on the trajectory of inflation and financially feasiblc, and raaximum productivity. Alternatively, the probable use of land or improved the state of the economy. property-specific with respect to the uscr and timing of the use-that is adequately sapported and resnits Sustainability of Current Markel Consistent with the 12-month outlook, capitalization rates are in the highest present value.' Capitalization Rates: projected to remain relatively stable in the ncar term.
Sabject Profile if Vacant and Availablc These crikria are often considered sequentially. The tests of legal permissihility and physical Tenant Profile: Local businesses possibility must be applied bofore the remaining tests of financial feasibility and maximal productivity.
Most Likely Buyer (Owner or Investor) Owner-user A usc may be financially feasible, but this is irrelevant if it is physically impossible or legally prohibited. Only when there is reasonuble probability that one of the prior, unacceptable conditions A user's purchase decision is based on business needs and a can be changed is it appropriate to proced with the analysis. desire to control occupancy cost. Market rent versus "
mortgage payment is typically the tipping point in a decision to seni or buy. With favorable SBA financing, and low
interest rates as with the current environment, an owner uscr As Though Vacant will generally elect to buy provided funds are available for The following measures of highest and best use are applied to the subject site as though vacant:
the required down payment along with an adequate supply of available properties for sale. 1. Legally permissible: The subject is zoned "CM", which allows for a varicty of retail, office, Current Risk Level: Given the aforementioned, the risk to an investor at this time conmercial, automotive related, restaurant fight industrial and like uses. is average, but sising somewhat over the past few months. 2. Physically possible: thie subject's parcel is a generally level site with a rectangnlar Typical Lease Term: 1-to-5 years configuration and adequate street frontage that allows convenient access and exposure.
Lease Concessions/Free Rent/T.I. Zero-to-throc-months free rent; It allowance ranges from 3. Einancially feasible: even though the commercial real estate market had been apprecinting Allowance none to 525.00VSF for new retail/office lease deals to stable through early-to-mid-2022, recent montary policy by the Federal Reserve warrants attention tenants willing to sign three-to-five-year leases. by potential developers and could impect profitable future development in the near-term.
Broker Sale Price Estimate:.... $325 - $350 per square foot maxintum allowable density when market conditions warrant.
Conclusions....
Subject Vacany & Collection Estimate:
No adjustments are warranted for salc or lensc comparables Market Conditions Adjustment: that sold/leased since carly-2021. '(Source: Appraisal Institue. The Dictionary of Real Pstole Appraisal) EXHIBIT Description: Reference: 23
195
Overall, a prudent developer would monitor current monetary policy, but at the current time values and INCOME APPROACH rent levels for retail and office properties are relatively stable making build-to-suit development feasible in many cases. The Income Approach is a method of converting the anticipated economic benefits of owning property into a value estimate through capitalization. The principle of "anticipation" underties this approach in As Improved
The following measures of highest and best use are applied to the subject site as improved:
2. bely pe posible the improvemen al and actre in us of tedit ce tiny ancian. indicate a value.
an estimated remaining economic life of 30 years.
3. Than if i and ree uncan based vale interes a filet wat leathe property as inpuvad The following analysis contains the follonsing sections:
Do ral, prove ete oriention are in contriburory value. Therefore, the highest and best Most Probable Buyer Net Operating Income Estimate
Based on the subject's size, configuration and occupancy, the most likely buyer is an owner-user. The net operating income for the subject is estimated as follows.
Potential Cross income Estimate
VALUATION ANALYSIS The subject is vacans.
At pericated previest the Cot Scope of to alter aid deed ralevant to our analysis and was Make petil be pid the use yuin repent one comparables in the subico smacket in Summary of Market Rent Comparables
capitalization rate to the concluded stabilized net income.
The prioc per square foot indicator derived fom this approach is the tool most offen utilized by buyers. Our survey analyzed 20 potential rent comparables for the subject of which four rettals and one active sellers, and brokers as the basis for purchasing/valuing propaties like the subject. properie are sumind to d on be adjustment grid hat to for the subjec. The comparable rental The final step in the valuation process will be the reconciliation of the value conclusions from the two or 5 approaches into a final value conclusion.
P
EXHIBIT Description: Reference: 24
196
SUMMARY ENTALS SUMMARY OF COMPAR
Suku
Lo Code
Sto Borsector
Detesce Focan Salycer Dake Lies Sogst
Site Soc
Des vel sate Date ofteen
Site of Lossed Specs (58) Sae d Tested Space 15h)
58.00 3073 SE 07 50.00
$243 Total Coupery Cool
Lew Subjeet kigurales NONN Changes:
Champany Cort Albated Some Thanin $3.45 5201
Escarcaes Escalators
(90 32)
môi
51.95 Blindr 1122 2
402÷556=4
Sated
26 197
; RENTS MAP
Rental Comparable Comments
The rent comparables are in Kialto or the competing commercial market of San Bemardio or Pontana within 3.5 miles of the subject. The signed comparables range in size from 1,058 to 2,024 square feet and have roonthly rental rates ranging from $1.70 tu $1.80 square foot on a modified gross ur triple net basis. Comparahle No. 5 is an active listing with an asking rent of S1 69 per square foot, triple net.
The subject is being analyzed on a modified gross case basis. consistent with the opinion from local brokers regarding the most likely leasing scenario for the subject. NNN charges for comparables 1 and 5 range fom S0.32 to $0.75/SF. Adjusting for the subject's NNN charges (S0.00/SF) brings the comparables into direct comparison with the sabject with rental rales between $2.01/SF and $2.4S/SF, monica gross courtaical
Comparable No. 1 receited a downward rent concession adjustment for free rent and T.I. allowance received by the tenant at the time of commencement.
Comparable No. 5 warranted a downward listing adjustment to account for landlord/tenant negotiations that typically take place prior to a prior to leases being signed.
Nos. 1,2 & 3 arc applied downward adjustmeats for comer vs. interior site location. ' 1800 W Sh St
San Bemanding CA 9N11 All of the comparables received adjustments for their differenoes in exposure. Specifically, Nos. 12, 3 & 4 warranted dowaward adjustments for slightly supcrior exposure. Conversely, comparable No. 4 is applied an upward adjastrent for inferior exposure along a connector strect.
No. 6 warranted a downward adjustment for slightly superior location.
E. Riotto Ave
Nos. 1&2 are applied upward adjustments for slightly inferior location and neighborhod surroundings.
An upward adjustment is applied to No. 2 for larger size.
Nos. 1. 3 & 5 are applied downward adjustments for newer age and slighly superior condition.
San Bemating, CA 92410
A downward adjustment is made to No. I for slightly superior appeal.
Nos. 1, 3, 4 & S warranted upward adjustments for inferior on-sile parking.
After all adjustments, the sigued rent comparables indicole an adjusted market rent range of'$1.76/SF foot, sit el ros fred see Broke pio it en or i sode 5,10 1 30 per square foot, modified gross.
Treating to cour l face i do eat a pa crisis it, mos of dered maintance.
Cranen
43 EXHIBIE
EXHIBIT Description: Reference: 26
198
Concluded Potential Gross Renfal Income Expense Analysts The subject's concluded potential annual gross rental inconse is calculated as follows. Pray Ter: Real eat aes are based on 2023-202 property a re is idea property Renable Stre Concluded Tobil
Soite No. Reat/Sq.FL/Me. Total Rent/Year
134 S. Willow Avenue 52,286.00 $27,432
Vacancy and Collection Loss
Based on our furlings and discussions with area brokers, a concluded vacancy and collection allowance of 3.0% over a stabilized opcration (7-to-10-year holding period) is reasonable for the subject. The
3.0% selecled vacancy and collection loss estimate is inclusive of both factors. Please refer to the That Resort is ce circly pen up to unite. Hike in work ade tere o Market Conditions section. municipality allows for it and cach unit has its own enclosure and/or trash dumpster (usually mid-sized to larger units of 3,000 SE & up, or for smaller single-tenant buildings, the tenaot may pay for trash removal separatly as their own expense. Based on the subject's freestanding, single-tenant design, Operating Expenscs direct pay by the tenant of this expenses is assamed in this analysis.
Our stabilized income analysis for the subject assumes a modified gross basis where the landlond pays Grounds Maintenance: This expens category generally varies depending upon the amount of for all expenses except most utilities and interior maintenance/janitorial. The landlord pays for landscaping at the property and the services provided. The addition of new landscaping or tree mauntenance of the long-term building elements (reserves). The landlord will also incur some managcanent exponses and expenses not reimbursed during vacancy. trimming typically resuits in a higher expense for some years. Outside restaurant seating and waterscape features can increase the ground maintenance expense. We estimate S0.40/SF fur this No historical expenses were provided for the subject. Therefore, a review of the 2024 Penner & expense based on the provided site drawing. Based on the subject's freestanding, single-tenant design, Associaies Retail Expense Guidelines and conversations with brokers and property mangers were used direct pay by the tenant of this expenses is assumed in this analysts. to projoct expenses for the property. Taxes are based on the tax rate multiplied by the indicated valuc. Maintenance and Repair Expease: The interior maintenance expenses are typically paid directly by plus direct assessments. the tenant as part of ongoing operations, and janitorial expenses are not included. This expense is The subject's operating expenses and broker guidelines are stamunarized in a table as follows. highly dependent upon the age, condition, and quality of the buikling components. The landlord is Expense Appraiser Conchsions 2024 Penser Retail
High Arg. Median
Real Estate Taxes $3.78 $4.69 $2.65 52.60
$1.42 $0.75 90.55 Security Expense: The subject has no security expense. ins umnoc
Utilitics $1.47 $0.56 $0.48
$2.07 $0.53 $0.40 Miscellancos Expense: This category is somewhat of a catch-all and can vary substantially. in the Tmsh Removal subject's case, this expense is used to estimate the expense associated with administrative, accounting Ground Maintenance $1.37 $0.32
28888888888 88088×88 × ฿ Iegal. office supplies and other miscellancons expenses that all property owners incur. Penner & Repairs & Maintenance $2.59 $1.39 $1.25
Associates indicales this expense typically ranges from $0.00 to $0.17 per square foor. The subject's $7.03 $0.89 $0,00
historical expenses had no miscellancous expenses listed; as such, a S0.J0/SF estimate is projected for Miscelbnoons $0.17 $0.07 $0.05
$S.24 52. 1t $1,65 the subject as reasonable.
Management Feo
Reserves $0.00 $0,00 $0.00
Total $17.93 59.16 $8.30
Page: 7 or
Espenses as % ofECH 28.7% 49.0% 28.3% 28.9%]
EXHIBIT Description: Reference: 27
199
Property Management Expense: A management fee is generally paid to a property management firm Cash or the ornet operator of the project. The management fee is typically expressed as a percentage of Siac (SP) Equireles NOT ¡Sale No. Sala Dato Address Sales Price OAR
effective gross income. For most multi-tenant projects this fee ranges trom 2.5% to 5.0%, depending apon the management intensity i number of tenants) of the project and responsibilities required. The Year Beli standard market rate is approximately 4%. For smaller (1 to S tenant) or single-tenant buildings, the ST Retroice market range is gencrally in the 1% to 3% range. These percentages translate to a per square foot basis i Sabject 134S. Wilow Avens 1,270 $18,975 in the S0.61 to $5.24 por square foot rango. This expense is estimated at S0.52/SF (2.5% of Gl), and Rielle 1925 $14.94 is reasonable based on the smaller size and location of the property. Suffice 201 P. Stoce Street $1,850,0001 $101,T50 5.500%
Reserves: Reserves account for the replacement of the long-lived items such as the roof, HVAC and Recals 1959 $418.55 $23.02 Structural walls, cfc. that occur over the life of the building, but generally over a longer period of time 23051 Summacal Bodkvard $670,5010 $J3.567 5.01% (IS to 25 years) as opposed to short-lived iters which occur on a more regular basis. Normal practice Montoo Valky $385.28 $19.30 in the market for retail dictates an expense of SO.15 to 50.30 per square foot, depending upon the age, ST Onies quality, and extent of the improvements. We conclude to S0.21/SF (1.0% of EGl) for the subject, which Mar-31 G24 Maxium Antia $517.000 $35.155 6.50% is based on published industry standards and considers the age and condition of the improvements. Riversid 1200 S364.67 $:1.70 IsT Office
Dec-23 SH58 Magnole Aven 2,30 $650,000 5C7, K05 4.17%
Reimbursed Expenses 5275.42 SILAD
The subject is projected to lease on a modibed gross basis. There are no reimbursed expenses in the 0xt-23 12i80 Magosla Avera 2964 $1.030,000 $59.874 modited gross lease basis. Revaside 3000 $344.13 $20.20 Two-Tink Retanfec
Аuд-23 730-724 N. Gary Astou 5725,000 5.30%
Direct Capitalization 1954 5344 il S13.08
STUffec
Mar-23 140L F. Suces 1.I65 $13,900 5.00%
The subject's capitalization rate is developed from the foliowing sources. Sen Remandee -23.16 .511.50 ST Retaonke
The soarch focused on the most similar commercial/retail and office propertics localed in the subject's Lating 833J Mation Beeterd $813.40) 338,224 409M
immediate and expanded market area Resarch conducted uncovered seren sales and two listings Parape Valky 1945 $362.06 $16.98 summarized in the chart below, representing investor-acquired properties similar lo the subject in the subject immediate and competing market areas. The comparables indicate capitalization rates ranging from 4.17% to 6.50% with a NOISF range of $11.49/SF to $23.70/SF. This compares to the subject's estimated NOI/SF of $14.94/SF, which is within the range of the comparables and based on market rents and expenses and reasonable based on the size and commercial warehouse design and location of the property.
Commercial brokers such as felt a reasonable capitalization rate for the subject as an investment, based on the curent market, size, age/condirion and location would fall in the 5.00% to 5.75% range. These brokers went on to indicate that the limited supply and scarcity of comparable investnients of commercial product in the Soather California market will help mitigate the impact of the recent rise in interest rates and Federal Rescrve Policy. However, cap rates according to brokers will likely remain stable or iacrease slightly over the next 12-months.
The Federal Reserve had been accelerating its removal of monetary support for the economy, citing a rise in inflation that has seca the biggest jump is prices in nearly 40 years. In a move to cool growth, PABe280145 the central hank had raisce the federal funds rate significantly in late-2021, 2022 and the first baif of 2023. The FRD increased interest rates by 25 basis points at the February, March, May, and July meetings before no increases were applied at the September 2023 meeting and all subsequent 2023 and 2024 meetings. The general sentiment in the market from experts is for stable trands as we continue tuough 2024
EXHIBIT Description: Reference: 28
200
The benchmark federal funds rate has remained at a range of 5.25% to 5.50% since mid-2023, its Demolition Cost Estimate for 134 S. Willow Aveoue highest level in 15+ years. No rocent rate hikes at the lale-2023 and carly-2024 meetings along with the Source: Items lacluded: Price Range: Total Estimate Sor Sobject:
anticipation of stable near-term trends may indicate that the fight against inflation is nearing the end. Marabal & Swit 720 SF teardown if gel; converted S12.0VSF - S20,00SF $14,000 Overall, the costs of borrowing will continus to be relatively expensive, and rates will remain at their (Section 601 storie busking into residence. (58,6-40 - 514,400) highest point since 2007 for the foresecable future. However, this projected stable interest rate treud Marshall & Swil 272 SF cardown garoge $12.005F - 520.00/SP $5,000 has brokers opining that capitalization rates may be flattening in the near term as they have already (58.640 - $5.440) risen in conjunction with the recoat increased cost of borrowing. Marshall & Swil SILISSF - 520.OUSF $0,000 (Sectice (6) *346 SF teardown and 1il basement (58/40 - 56.9201 Based on the data presented and allowing for the risks associated with the sale of similar commerciat Marshall & Swift Demotion persia/fices. properties, as well as current cconomic conditions and the subject's occupancy, physical and location Coolackor haung/recyck/landfil costs. $5.000--$15,400 $10,000 characteristics, we have scloctod a capitalization rate of 5.25%. temporary fenci, supervision, prolt, lances miscelancout etc.
Contingnacy for unloren costs ic g. 40% of torni dema casts NIA removal of ile gal witbes, demo. ($35.000) 51-,000
Demolition Costs equipment access coets, ctc.!)
Reat buidings and basement
The gade in no ed by the or bach due to a let on remind of a ra race to demolition, debris remoral, access to $25,000 - 150,000 $25,000 - 550,00 Broker Opinina speco to dema, miscellaneces, ek.
property was rod tagged in 2021 by Riaito Code Enforcement due to illegal utilities being ran (above denolin coet estimate (al incisie). & below-ground) from the front retail/office building to the rear structure that was only permitted as Conclusion SS0,000 dead storage. Additionally, the interior was extensively renovated with demising wails and residential tenant improvements added to the storage structure and windows, atilities and other renovations As indicaled in the table above, a demolition cost for the subject of 550,000 is credible. This demolition cost is deducted from the indicated values in the Income and Sales Comparison Approaches as a nocessary step to arrive at the as is" market value for the property.
The city inspector who issued the notice of violation and issued the red tag was interviewed and indicated that the all gas, clectrical, water & sewer utilities would need to be disconnected and removed, all interior residential tenant improvements would need to be removed, windows and utilities to the basemeut would need to be removed and all other renovations to these structures reversed returning the structure to dead storage as originally permitted would need to be completed prior to the red tag status being removed and allowing the property to be legally occupied. These illegal renovations also led to city code officials inspecting the entire property and requiring the retail/office bailding to rectify some issues regarding deferred maintenance and tenant improvements prior to sign-offby the city. The issues with the front retail/office bnilding will be bundled as part of the "cost to cure" deduction applied Brokers indicate that the rear stracture offers no contributory value to the subject as dead storage due to the adequate on-site parking available in the front parking lot and the value of the rear yard arca as open space that could be used for additional parking or storage as needed. This opinion, along with the cost of temoving all illegal renovations to the rear structures make the rear storage building, basement and garage detrimental to marketability and value of the property in their current state. As such, these three structures/arcas are considered at the cad of their economic lives and would likely be removed by a buyer of the property. As such, consistent with how a typical buyer would value the property and broker opinion, costs associated with removing these structures would need to be accomted for in valuing the subject.
In order to arrive at a credible demolition cost for the property, current cost manuals were reviewed (section 66 of Marshall & Swif) and local brokers and contractors were interviewed. The following table summarizes the findings from these soarces and indicates the demolition cost conclusion that will be applied to the subject in this analysis.
Pag
48 EXHIBIT Description: Reference: 29
201
Tadicated Value from Direct Capitalizatien Analysis DIRECTSALES COMPARISON APPROACH Based on our findings, the concluded valuc for the subject property is as follows. The sales survey focused on the most similar retailoffice properties located in the subject's immediate and expanded market. The parameters were expanded as necessary to include sales that have occurred within the past 20-months in Rialto and competing retailoffice markets. Adjustments are made for 134S. Willow Avenu location and other factors as necessary.
Potcetial Grass locome The comparable sales selected were confirmed by the following sources: CoStar, LoopNet, public Market Rend records and the parties involved in the transactions (when possible). Approximately 3u sales were Reimbursements analyzed and from those saics, four closed sales and one alive listing have been selected as being the Otter best indicators of the subject's current market vaine.
TOTAL IME
Vacancy & Colection e 3.0%
Effective Gross tocome 520.95 100%
Expenses SSq.P1 % EGI
Property Taxes $3.76 17.94%
Deocl Assessments S0.02 0.09%
50 40 1.91%
Budding Maintenance & Repairs $1.00 4.77%
Mecelancous S0.10 0.48%
Management Fee $0.52 2.30%
Rescries 1.00%
Tood Expenses 28.69%
NOI 51498 " 71.31%
HEL* 5.25%
Cure Defered Maiterance
in Cosl -
Indicated "As 1s" Vale
Vate per Sepaare Poot
Page30 0.45
P
EXHIBIT Description: Reference: 30
202
LLES
- Saka Subject
134.S. Wikm Arcoe 134.% Wano ANRA
3 1
22376 ZipCok
а ВолколА Conti Sen Bernertio
0130-211-15-0000 0130.211.19.0000
7,500 Ste Six
Vacert
NOUSF
F'on Sample Fos Sepk:
- -10%
lactogecf axtrnl
rotcial Esposay
Kl0/ 2390%
incastriel sad Spoc ial 1 lec filei=
1925/ Reno Yea Buil
Arras Corteon
Singk. Teren Retidor
1 Los Qmas Ots oRot
Woed Frame & Suxca EcureStucco
RCA8P Zonne
piaded -17%
$327
53 31
203
ap.
COMP VRABILE BUTE DING SALES MAP
Sales Coraparison Summary
The sale comparables are all located within 7,0-miles of the subject in Rialto or the competing No. S is applied a downward listing adjustmend to account for buyer/seller negotiations that take place Arrowhes
Springs prior to a property entering escrow.
Al lied complisables have been downward adjusted for slightly superior exposare along heavier The subject is being appraised with a "cost to care" deduction made to rectify existing deferred SOTEAN.... maintenance and bring the property to a low quality, average condition, occupancy-ready retail/office building. Nos. 3 & 5 are considered to be in better condition in comparison witb the subject in that MASBLE 15
state warranting downward adjustments.
Additional adjustments are discussed in the following paragraphs.
No. 1 ($346/Sq. Ft.) is a 1900-built, 1,098-square-fooi, low-quality office/retail building located 0.6- mile northeast of the subject at 144 N. Riverside Avenue in Rialto, a similar location. A downward 345 N Rivaside Are adjustment is applied for non-signalized vs. interior location. An upward adjustment is made for slightly superior on-site parking capability. After adjustments, No. J indicates a value of S343iSq. Ft.
CALIFORNE for the subject
No. 2(534 l/Sq. Ft.) is a 1905-built, 1,380-squerc-foot. retail/office/light medical office building Incated 0.9-mile northcast of the subject at 345 N. Riverside Avenue in Rialto, a similar location. A BRANDINIO downward adjustment is made for slightly superior tenant inprovements. After adjustments, No. 2 indicates a value of $324/Sq. Ft. for the subject.
SURELE
134 S Wor Ave
CA 92376 No. 3 (S415/Sq. Ft.) is a 1,326-squarc-foot, 1958-built office building located 4.5 miles southeast of the subject at 121] North Mount Vernon Avenue in Colton, a slightly inferior location. Downward adjustments are applied for signalized corner vs. intorior site location, neighborhood surroundings and tenant improvements. Upward adjustments are made for slightly inferior location and parking. After Avo adjustments, No. 3 indicates a value of S345/Sq. Ft. for the subject.
No. 4 (5327/Sg. Ft.) is a 1928-bailt, 1,680-squarc-foot, low quality retail/office property located 2.5 Catal miles southwest of the subject at 18666 Valley Boulcard in Bloomington, a slightly inferior location.
An upward adjustment is made for slightly inferior location. After adjustments. No. 4 indicates a value of $327/Sq. Ft. for the subjoct.
No. 5 (5368/Sq. Ft., adjusted for active listing status) is a 1936-built, 1,050-squane-foot:
retailioffice/light medical office property located 7.0-miles northeast of the subject at 1784 North PoEe320145 Waterman Avenue in San Bernardino, a slightly inferior location warranting an upward adjustment for this factor. After adjustments, No. 5 indicates a value of $342/Sq. Ft. for the subject.
After adjustments, the closed sales indicate a sabject value of $324 to S345 per square foot. The active listing indicates an adjusted value for the subject of $342 per square foot. Broker opinion of value for the subject is $325 to $350 pcr square foot.
EXHIBIT Description: Reference: 32
204
RECONCILIATION
weight due to their diffcrences in location. Nos. 1 & 2 are given primary weight as recent sales of Indicated ralues from the Incomc and Sales Comparison Approaches are summarized as follows:
similar properties in the subject's Rialto market.
Income Approach: 5350.000
Cousidering all factors, a concluded "as is" subject value of $330/Sq. Kt. is reasonabic, consistent with Sales Comparison Approach:
market levels and well supported by the comparable sale properties and market research.
The Income Approach is the nost applicable method of valuation for cased fee investment properties bur is learn thin it fat and pete pat are po dried pread or one or aren Indicated Value from the Sales Comparison Approach the subject in a market transaction, which is consistent with broker opinion. Owner-user driven Based on our findings, the concluded value for the subject property is as follows: properties like the subject continue to transact at price levels that are higher than can be supported from the capitalization of market net operating income. As such, the Income Approach is given secondary Saker Comparison Approach Conca i 193t weight in this analysis. 1,270 Sq. Ft. x 5330/Sq Ft.
Lasz: Cost to Cure Deferred Maintenance: (520,000) The Sales Comparison Approach is based on sales of the most similar retail/office propertits in the Less: Demolition Cost: subject's immediate und expanded market area. The highest and best use indicates that the strongest demand for the subject is from partial owner-users; the data used in this approach is relevant in our "As h" Market Yatue, Roanded. $350,000 analysis. These sales are reasonably similar to the subject in sire, agc, design and condition. The data developed is considered reliable to reach a value conclusion by the Sales Comparison Approach.
Brokers indicate this approach would be the primary approach used by a potential buyer in the current marketplace. As such, this approach is given primary consideration and weighting in the reconciliation of our finai value estimate for the sabject.
In lone Apray weathe place diet As one on Approach wil seconday went on
FINAL VALUATION
The final valuation is summarizod as follows:
Property Rights Final Value*
Fee Simple $340,000
(Based on 3 - 2-month exposure period.
*Please refer lo the Assignment Conditions
P
EXHIBIT Description: Reference: 33
205
ADDITIONAL, DATA POINT-SUPPORT TO SUBJECT'S AS IS" VALLE EXPOSURE TIME AND MARKETING PERIOD The concluded "as is" market value for the subject is $340,000 or $267.72 per square font. This Espin Tine le a feror site arenas of the time rapied to sell the subject during maket conclusion assumes the deferred maintenance in the retail/office bailding is cured, the rcar storage building, garage and basement are demolished and all existing code issues are resolved clearing the red tagged status of the property and allowing occupancy. The subject is appraised as a low quality officeiretail building based on all these factors.
The following is an additional sale of a CM zoned retail/office building located adjachtly to the south of the subject at 138 S. Willow Avenue in Rialto.
Distance Building Site Sice Sale Date Sake Price Coesparison with the See (5F), Sobeet
13K Wilber A venue Same Block 7,500 3/1/2023 $23689 Inferior Overal The caperbit ate and prit ale tie in his re infiel are indo i destio to 2-to-8-moaths.
7,30 reper is epic on are it was 19 ear 00 reilote i die oiled 1, 2023. Brokers retreated in it for bad on i part 2 mind real prepare acid to tal Attempts were made to reach the brokers involved in the deal to understand the specitics, but no contact was able to be established. during the course of this assignment. Brokers indicated that demand could potentially decrease slightly in the neat-term due to the economic climate and higher interest rates but are optimistic at this point The photographs on the Mi.S show this property was in poor condition at the time of sale with signs of that it will remam relatively stable over the next 12-months. As such, a marketing period above the defered maintenance that excood the subject. Peeling paint, damaged floors and walls, peeling expostre period is reasonable. Overall, a marketing period of 3 to 9 months is ressonable. stucca/siding and signs of potential water demage of vandalism were noted. Overall, the property is inferior in comparison with the subject's assumed condition in this analysis meking the lower salcs During stable or rising markets, exposure and marketing times have been the same. Howeter, in a price of S236.89/SF reasonable. Assuming a +10% to 15% adjustment for inferior condition, this data sofening market, it is logical that exposure times will be shorter than marketing times. Due to the point would indicate a value for the subject of $261 to $272 per square foot, which adds support to the current uncertain business climate, marketing times are anticipated to potentially be longer than prior concluded "as is" market value for the subject. 0 tiC Cass In consideration of current market conditions, a reasonable Exposure Time and Marketing Period for the subject is estimated as follows
Exposure Time Date of Value Marketing Period
2 to 8 Months Jaly 10, 2024 3 to 9 Months
The price that may be achieved in the fature at the end of the marketing period may or may not be qual to the curent appraised value estimate, depending on potcotial changes in the physical real estate. demographic and economic trends, the real estate market, tenancy, property opcrations and the effectiveness of the marketing program, among other factors. 58 EXHIBIT Description: Reference:
34 206
DEFINITIONS Definition of "Stabilized Value"
The following is a general list of real estate appraisal definitions: For purposes of this report, Stabilized Value is based on the subject being "fully" occupied at market terms and conditions and that any costs to achieve a market-based, stabilized occupancy are complete.
Costs associated with achieving stabilized occupancy typically include: tenant improvements, rent loss Definition of Market Vale?
Formal definitions of "Stabilized Value" are:
1. Buyer and seller are typically motivated,
2. Both partics are well informed or well advised and each acting in what they consider their own best interests,
3. A reasonable time is allowed for exposure in the open market; Prospective Value Opinion
4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and A forecast of the value expected at a specified future date. A prospective value opinion is most frequentiy sought in connection with real estate RETECHSs that are proposed, under consimction, or
3. The price represents the normal consideration fur the property sold unaffected by special or cicative under conversion to a new use, or those that have not achieved sellout or a stabilized level of long-term finaacing or sales concessions granted by anyone associated with the sale. occupancy at the time the appraisal report is written.
Definition of Cash Equivalency Hypotbetical Condition
An analytical process in which the sale price of a transaction with noomarket Gnancing or financing That which is contrary to what exists but is supposed for the purpuse of analysis. Hypothetical with unusual conditions or incentives is converted into a price expressed in tens of cash Definition of "Às Is Value"
A hypotie can hypothere edition is an entired for legal purposes, for purposes of As is Value means an estimate of the value of the property in the condition observed upon inspection and as it physically and legally exists without hypothetical conditions, assumptions or qualifications as reasonable analysis, or for purposes of comparison; of the date the appraisal is prepared.
PagE 35.45
P
Source: Foderal Deposit Insurence Corporation, OCC, 12 FR, Pert 34, Subpart C-Aypraisals 34.42 Definitions "Dictionary of Real Estate Appraisal. Appraisal Institute, Filth Edition.
EXHIBIT Description: Reference:
35 207
Extraordinary Assumpion Intangible Property (Intangible Assets) An assumption, directly related to a specific assignment, which, if found to be false, could alter the Nonphysical assets, including but not limited to franchises, trademarks, patents, copyrights, goodwill, appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain equities, secunties, and contrets as distinguished from physical assets such as facilities and equipment condians seral pagic properl, oct as make cations or or is rabie properly dau that, an be percieved orio ring capil used in and, siped improvements, famishings, merchawdise, used in an analysis.
Source: USPAP. 2010-2011 Edition.
An extraordinary assumption may be nsed in an assignment only if:
• It is required to properly develop credible opinions and conclusions; • The appraiser has a reasonable basis for the extraordinary assumption: Definition of Going Concern Value • Use of the extraordinary assumption results in a credible analysis; and "Going-Concem" valne is defined as the value existing in a proven property operation considered as • Thumproner complies with the disclosure reqirements set forth in USPAP for extraordinary an entity with business established as distinct from the value of the real estate only, ready to operate. but withou a going business. The market value of a "going concem" reflects the current and prospective Defimition of Fee Simple Estate
Absolute ownership unencumbered by any other interest or estate, subject only to the limitations Caping (fry) and andril, anniel greates liege upon be ten in of aroratic. imposed by the governmental powers of taxation, eminent domain, police power, and escheat.
Source. Dictionary of Real Estate Appraisel, Appraisal Institutc, Fifth Editions. Total Assets of a Business Definition of Leased Fee Estate Total Assets of a Business (TAB) are valued mder one of two premises: a going concern premise and a liquidation premise. The TAB are comprised of tangible property and intangible property. The value of a business as a going concer equals the value of tangible assets plus the value of intangible assels.
A leased fee estate is an ownership interest held by a landlord with the right of use and occupancy conveyed by lease to others; the rights of the lessor (the leased fee owner) and the leased fee are The Going Concern Premise: The assumption that the company is expected to continue specified by contract terms contained within the lease. operating well into the future (usually indefinitely).
Source: Dictionary of Real Estaic Appruisal, Appraipal Institute, Filth Edition. The Liguidation Premise. The assumption that a company will cease operations.
In this report, we are not valuing the going concer premise.
Definition of Leusehold Estate
Source: Dictionary of Real Escale Appraisel, Appreisal Lastildo, Fifth Edition.
The right to use and occupy real estate for a stated ten and under certain conditions conveyed by a lease.
Furniture Fixtures & Equipment (FF&E)
Source. Dictionary of Real Estatc Appraisal, Appraisal Institule, Fill Edition.
Business trace fixtures and personal property, exclusive of inventory.
Tangible Property Source: Dictionwy of Real Estate AppraisaL Appraisal britte, Filth Edicion.
Papery tie, can anderer yed sit te yes, inded in and, fixed improvements, furnishings. Furniture Fixtures & Equipmeat (FF&E) Estimate Souroe: Dictionary of Real Estate Appraisel, Appraisl Institele. Fifth Edition. The personal propery, fixtures nd intangible (FE) items are excluded fiom this apraist report's P Pag
*Ibid
62 EXHIBIT Description: Reference: 36
208
gp
CERTIICATION
Exposure Time
1. The tane a property remains on the market. We certify that, to the best of our knowledge and belief,...
2. The estimated length of time the property interest being appraised would bave been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the • The stateneats of fact contained in this report are true and correct. appraisal; a retrospective estimate based on an analysis of past events assuming a competitive and open Source: Dictionary of Real Estate Appraisal Appraisal Instibuc, Fifth Editica and conclusions.
Marketing Time • We harper recent or precise et pate open ta is the subject of this report, and ne An opinion of the amount of time it migit take to self a real or personal property interest at the concluded market value level during the period immedintely after the effective dnte of an appraisal. • We had win is with mopect the propery that is the subject of this report or to the parties Marketing time differs from exposure time, which is always presumed to procode the offective datc of an appraisal. (Advisory Opinion 7 of the Appraisal Standards Board of The Appraisal Foundation and Statement on Appraisal Standards No. 6, "Reasonable Exposure Time in Real Property and Personal • Our compensation is not based upon the reporting of a predetermined value of direction in value Property Market Value Opinions" address the determination of reasonable exposure and marketing that favors the cause of the client. the amount of the value estimate, the attainment of a stipulated time.) result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
Soarce Dictionary of Real Estate Appraisal. Appraisal Institute. Filth Edition • Our engagement in this assignment was not contingent upon developing or reporting predelermined results a requested minimum valuation, specific vaínation or the approval of a loan. • There a se, pi regiments or coste of votes, and lice and ate sendeas of Professional Practice of the Appraisal Instibrte.
• Our analysis did not base, cither partialty or completely, the estimate of value on the race, color, religios, sex, handicap, familial status, health or national origin of the present or prospective owners occupants of users of the subject property or of the present or prospective owners. occupents or users of the properties in the vicinity of the subject property.
The appraisal was completed without regard to race, color, religion, national origin, scx, marital status or any other protubited basis, and does not contain references which could be regarded as discriminatory.
• The use of this report is subject to the requiremcuts of the Appraisal Institute relating to review by its duly authorized representatives.
• Andrew P. Mitrosilis, MAl and Ted P. Douglas, MAl are principals/partners of AppraisalPacific, Inc. Located in Long Beach, California Ose or both have managed this assignment from the time of engagement to delivery of final report. The signatory of this report (Mittosilis or Douglas) played a significant role in managing the appreisal process and revicwing the final report produced Page37 0145 photos including are viets long with rein a coes able photos lee sa fical requested by our client or when clarification of the appraisal problem is required, a personal subject site inspection is made. Ted P. Douglas, MAI is the managing appraiser on this assignment and has not made a personal inspection of the subject property:
Appraiser, Tim Howman, (GREA has made a personal inspection of the property that is the subject of this report and was thoroughly involved in the entire appraisal process leading to final valoation conclusions.
EXHIBIT Description: Reference:
37 209
• in it ly precedited eplace of icis the subiest papery in the the pect period QUALIFICATIONS TED P. DOUGLAS, MAI, AI-GRS
• Fraid or tea it spoil with reach and on cog for chis apraisal the • The appraisers analysis, opinion and conclusions were developed, and the report has been PROFESSIONAL BACKGROUND prepared in conformity with Title Xl of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) and its regulations, as well as Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. 1999-Present • Wielave deal ducation and a h preactly are rise many propriet dining to trip type. Pril pal, 4 all ic loc: 9738 per Aspain Chi 101 Long Beach, Califomia 90808 Please sce the qualifications section of this report for additional infonnation. 1995-1999
• As of the date of this report, Ted P. Douglas, MAl has completed the continuing education program for Designated Members of the Appraisal Institate. 6rm, Irvine, California.
• This appraisel is intended to comply with the OCC's amended Appraisal Rule, effective June 7, Sa Bie Coe bo da he lo price one pr lo ages, orange are adir, venue ande 1991, as published in the Federal Register, Volume 59, No. 108, and with the Intcragency Appraisal and Evaluation Guidelincs, dated December 10, 2010. variety of commercial and industrial properties, ranging in value from $1,000,000 to $150,000,000 1985-1995
Senior Commercial Real Estate Appraiser with Diversified Realty Appraisal, Newport Beach, California.
Performed valuations, prepared narrative appraisal reports and provided consulting services on a wide variety KaP. Mr 35000,00, A baye i receptial compie discound pal few an age. to respite for to ne TED P. DOUGLAS, MAI TIM HOWMAN, CGREA
Stare Certified Gencil Appiaincr State Certitied Geacral Appraiser and supervising several members of the appraisal staff.
Certificate No. AG 001946 Certificate No. AG 035823
CA/Expires 14-Ocl-24 CA/Expires 07-Dec-24
PROFESSIONAL AFFILIATION
Appraisal Institute, MAI designation, AI-GRS designation
STATE CERTIFICATION
EDUCATIONAL ACTIVITES
Page BoyS
Sanding of PAperin rite Capital on There an in ques, Pars and as on rootes P and to tangible Business it, Reviv Tary: tical A rama i apart upon e, personal Property EXHIBIT Description: Reference:
38 210
QUALIFICATIONS ASSUMPTIONS AND LIMITING CONDITIONS
TIM HOWMAN
This repurt is made expressly subject to the conditions and stipulations following:
Specific
PROFESSIONAL BACKGROUND 1. Is is assured that the property is in compliance with all applicable federal, state and local laws, ordinances agulations, budstandards, westions and ziness of completion the 2004-Present sprind negor Determining and reporting on such compliance were not part of the since of were fir this 3738 Bay TA: 56257-10; FAn 362-5, alarmia 20308
Unles ore in at in die tear it per are lice header mapi or ate nearl however, is not qualified to detect such substances or to make determinations about their presence. The presence GENERAL EXPERIENCE of substances such as asbestos, urea-formaldehyde foam insulation and other potentially hazardous materials or environmental contamination may aiTect the value of the property. Linless otherwise stated. the value estimated is predicated on the assumplion that there is no such matcrial on, below or affecting the property that would cause a loss in value. No responsibility is assumed for such conditions or for any expertise or engincering assistance required to discover them. The intended user is urged to retain an expert in this freid, if desired No adverse ensements of encroschments were observed at the time of our inspoction. We bave reviewed neither legal opiniors nor engineering reports concerning the aforementioned. We assume the subject property to be free of any casements, covenants or restrictions that would have a negative impact on the value of the property.
STATE CERTIFICATION NUMBER Any existing casemeots, covenants or restrictions are assumed necessary for the highest and best use of the site.
These assumptions are formally incorporased into various estimates of this report.
State of Califoraia AG035823: Expires 12/07/2024
5. We have not rescived a soils seport in connection with this apprusal assigoment. In the absence of a soils report, we assume soil conditions to be adequate to support the existing improvements into the future. This assumption is incorportied into this report.
EDUCATIONAL ACTIVITIES o. A geologic report covering the subject property was not provided. In the absence of geologic report, we assume cologic conditions to be stable enough to support the existing improvements into the future. addition, we assume that no geologic conditions exist which would adversely affect the value of the site or Bachelor of Arts; California State University Dominguez Hills; Major Economics prevent the development of the site to its highest and best use. These assumptions are fornally incorporated into various estimates of this report
Appraisal Instipite Courses: Real Estate Appraisal Principles; Real Estate Appraisal Procedures, 7. The subject property is appraised without & specitic compliance survey having been conducted to determine if Basic Income Capitalization, General Applications, Income Valuation of Small, Mixed-Use the property is ar is not in conformance with the requirements of the Americans with Dissbilities Act. The tics. USPAP 2018. Residential and General Report Writing and Case Studies. Business presence of architectural and communications barriers that are structural in nature that would restrict access by cos and Ethics, Office Building Valuation, Advanced Applications, Advanced Market Analysis disabled individuals may adversely affect the property's value, marketability, or utility. The analysis contained ighest and Best Use, Advanced Concepts & Case Studies, Quantitative Analysis, Real Estate herein assures the subject is not impacled by any aspects of the Americans with Disabilities Act and that there are to known non-compliance items Subject to confirmation by an appropriately licensed entity. this *e Statistics and Valuation Modeling, Advanced Income Capitalization and Advanced Market assumption is incorporated into various estimates of this report sis and Highest and Best Use.
Pa8a39 or45 8. The appraiser is not qualified to determine the exidence of mold of any type or whether the mold if any might any risk to the property or its inhabitants. Additional inspection by a qualifica professional recommended.
9 The appraiser is not a home or environmental inspector. The appraiser provides an opinion of valuc. The P appraisal does not guarantee that the property is free of defects or environmental problems. The appraiser performs an inspection of visible and accessible areas only. Mold may be present in areas the appraiser cannot see. A professional itome inspection or environmental inspection is recommended.
EXHIBIT Description: Reference: 39
211
ASAMEIONS NOMING CONDIIONS
General
1. We assume do responsibility for matters that are legal in nature.
2. The appraisal covers the property described only
3. Sources of information are bolieved to be correct end, where feasible, have been verified 4 That he dac of ale to which the condition and prin capesed in tien or aly is bet faul in the purchasing power of the American dollar on that date.
5. Tri he apricer sume no reaper tie day for economic or physical factors that tay affect the opinions. be removed fram, reproduced, or used apart from this report. 3y renon of or resting are not fence to le property i or for or trainine to or or a ne relative to such additional employment.
be disseminated to the public through sdvertising media, public relations media, sales media ar any other public ADDENDA means of communication without the prior written consent and approval of the authors.
9. Possession of this report, or a copy of it, will not carry with it the right of publication. The report may not be used for any purpose by any person other that the party to whom it is addressed without the written consent of Whet, he repod may be wied aply way proper tay quality to ched only in is thirdy for it at purpose.
P
EXHIBIT Description: Reference:
40 212
SUBJECT PHOTOGRAPHS SUBJECT PHOTOGRAPHS
VIEW OF THE SUBJECT FROM 9. WILLOW AVENE. REAR VIEW OF THE RETAIL/OFFICE BUILDING; ADDITONAL INFERIOR VIEW OF THE RETAIL/OFFICE ADDITIONAL INTERIOR VIEW OF THE RETAILAPE
RETALLAPFICE BUILDIN& FRONT PARKING LOT RISING
PICTIRED
INTERIOR VIEW OF THE REAR STORAGE BIL.DIK) ADENTRIAL INTERIOR VIEW OF THE REAR STORACH VIEW OF THE REAR STORAGE BUILDING AND ATTACHED ADDITIONAL. VIEW OP THE STORAGE RITE DING (TEARDOWN) HEIL DING (TEARDOWNI (TRARIX/WN CONDITION)
P
ADITIAL INTERIO VIEW OF THE REAR SIORACE VIEW OF THE BASEMENT BELOW THE STORAGE BUILDING RIOR VIEW OF THE RETAIL/OPPICE HITL DINK ADDIONAL INTERIOR VEW OF THR RETAIL OFFICE BUT.DENG (TEARIXWN) (TRARIOWN) EXHIBIT Description: Reference: 41
213
SUBJECT PHOTOGRAPHS COMPARABLE RENT PHOTOGRAPHS
ADDIFIONAL INTERIOR VIEW OF THE STORAGE BUILDING INTERIOR VIRW OF THE GARAGE. (TRARDOWN) SUBJECT PROPERTY RENT NO.1 (TEARDOWN)
LOUKING NORTH ALONG & WILLOW AVENIE, THE LOOKING SOUTH ALONES WILLOW AVENUE. THE RENT NO. 2 RENT NO 3
SIBIJECT TO THE LEFT SUBJECT AHEAD AND TO THE RIGHT
Page: 120+45
P
RENT NO. 4 RENT NO. 5
EXHIBIT Description: Reference:
_214
Property Detail Report
COMPARABLE SALE PHOTOGRAPHS J 134 S Willow Ave, Rialto, CA 92376-6302 APN: 0130-211-15-0000 San Bernardino County Dala de of: 06/20/2024 Owner intormation
Orner Name: PD International Busmess Center inc
Vesting: Corperate Trust / Corporation
Mating Address: 8550 Sserta Ave, Fontana, CA 92335-3840 Occupancy Absentee Owner Location intormation
Lege Descaption:
0130211-15-000D Alternate APN:
Munic / Twnshp. Twashp-Ang-Sec: Legal Lot/ Block:
SUDOISON Town Of Risito Legal Book/ Page: 0130/211
Neighborood:
Zementary School: Sam v. curtis Eiem... High School: Rialto High School Latitude: 34.09909 •117.37509
Last Transfer / Conveyance - Current Owner
Transfer / Rec Date: 04/08/2022 / 04/07/2022 Price. $360,000 Transter Doc f: 2022.131847 Buyer Name PO International Business Sefer Name: Selcedo Victor Hugo Deed Type: Grant Deed SUBJECT PROPERTY SALENO. 1
Last Market Sale
Sale / Reo Vate. Grant Deed
Mutti / Split Sale:
1st Mtg Amt / Type: 5324000 / Private Party 131 Ming Rate / Type 3.89 / Estimated 202. 3148 2nd Mtg Amt / Type: 2nd Mig Rate / Type:
Seller Name: Salcedo Victor Hugo
Victor Saicedo Title Company. Wfg Title ineuranc...
Prior Sale Information
Sale / Rec Date 12/08/2020 / 01/14/2021 Sale Price / Type: 6223,000/ Prior Deed Type: Grant Deed 1st Mtg Amt / Type: I at Mtg Rate / Type Prior Sale Doc i. 2021.21332 Prior Lender.
Property Characteristics
Gross tiving Area: 1.900 SA. Ft Total Rooms: Year Buit / Eft: 1925/1926 Living Area: 1,990 Sq. Ft. Bedrooma: Stories.
Total Adj. Area: Baths (F /HO: Parking Type: Paved
Above Grade: Garage s
SALENO. 3 Basement Area: Ferepface: Garage Area:
SALE NO. 2 Style: Coaling: Parch Type
Foundation: Patio Type: (
Quality Meier Wale: Root Type:
Condon. Construction Type: Wood Roof Material
Site Information
Land Use: Retal Trade Lot Area: 7.500 SQ FL.
Stale Use: Lot With / Depth
County Use: 0300- Retail Store Usable Lot Res / Comm Units:
Sile influence Type Unknown Acres: 0.172 Water / Sewer Type: Public / Public Flood Zone Code: D607 1C8657H Flood Map Date 08/28/2008 Community Name: City Of Rialto Fod Pant e: B657H Inside SFHA:
Assessed Year, 2023 Assessed Vatue: $367,200 Market Total Value:
Tax Yeor. Land Value: $153,000 Market Land Vale:
Tax Area: 006-388 Improvement Value. $214,200 Market Impry Value:
Property Tax: $4,873.58 Improved %: 58.33% Market Imprv %:
Exemption: Delinquent Year. 2022
P
SALE NO. 4 SALENO. S
Datatree € 2024 Hint American finencial Carpostion and/or is amiates. All rights reserved NYSE: 1A7 PACE I OF 1 EXHIBIT Description: Reference: 43
215
do appraisal
• pacificinc
3738 Bayer Avenuo, Unit 101, Long Bears, CA S09Ca
June 27.2024 Via Email
Alr. Colby Cataldi, Commualty Development Direrter
(Sty of Riatto
October 15,2022 October 14, 2024 Dillon
Re: Appraisal oftbe property lochied a: 134S. Willow A veas, Rialto, CA 92376 Loretta Dillon, Depuly Bureau Chief, BREA
Dear Mr. Catali:
Dear plate to is papa to terie are to be or read pay. To repar wile a pries Report per pdated [Sole Client: City of Riatto Perta,
Intended Use: Effective Date:
Intended Usci(o). Caty of Rishto AG 001946 Date Expires:
As is Value with comsideration oftand and building
Tosersl Apprised Fee Sample
The completed appraisa! reports will be made in confonance with regulations set forth by Title Xl of the Francial Instirution Reform, has successfully met the requirements for a license as a residential and commercial real estate appraiser in the "Certified General Real Estate Appraiser" This license has been issued in accordance with the provisions of the Real Estate Appraisers' Licensing and Recovery, and Enforcemont Act 1989 (F.I,R.R.E.A.), and the Uniform Standarde of Professional Appraisal Practice (USPAP) adopted Business, Consumer Services & Housing Agency BUREAU OF REAL ESTATE APPRAISERS REAL ESTATE APPRAISER LICENSE Ted P. Douglas by the Appraisal Stagdards Board of the Appraisal Foundation.
The fee for this assigor ent is 52,500. The appraisal will be completed within two-three weeks.
Any dispute or claim made with respoet to this report shall be submitted to and resolved in accordance with the rules of the Americen Arbitration Association for arbitration and the decision of the Associntion shall be binding. Judicial action to collect fee for this report shall not be a waive of the right to have any other dispute so decided throngh arbitration. All apponisal services pursuant Lo this roport shall be deered to be contracted for and rendered in San Bemardino County, Califomia, and any arbitration or judiciel proceedings shall take place in San Bernardino County, Califoria. This assignment will not be baseó upon a requestod minimum valuation, a specific valuntion, or tho approval of a loan. If this moets with your approval, please sign. and retum tao caclosod copy of this letter. It is understood that City of Rialto is the scle client and party responsible for paying the appraisal fee to Appraisal State of California and is, therefore, entitled to use the title: 3064298 Pacific Inc.
BREA APPRAISER IDENTIFICATION NUMBER:
Repes fully stibmited,
"AP. Mr APOn
DOUGLAS, MAI ANDREW P. MITROSILIS, MAL
ertified General Appraiser State Certified General Appraiser ate No. AG 001946 Certificate No. AG 001945
Certification Law.
7-2-24
EXHIBIT Description: Reference:
216
EXHIBIT
P
Description:
Page: y5o145
Reference:
Business Consumer Services & Housing Agency
BUREAU OF REAL ESTATE APPRAISERS
REAL ESTATE APPRAISER LICENSE
TimE. Rowman
has successfully met the requirements for a license as a residential and commercial real estate appraiser in the State of California and is, therefore, entitled to use the title:
"Certified General Real Estate Appriser"
This license has been issued in accordance with the provisions of the Real Estate Appraisers Licensing and Certification Law,:
BREA APPRAISER IDENTIFICATION NUMBER: AG 035823
Effective Date: December 8, 2022
Date Expires: December 7, 2024
Crete Ammett
Angela Jemmoty Bureau Chief, BREA
3068946
45 217
EXHIBIT
Q
Description: Notice of default-foreclosure
Reference:
218
EXHIBIT
Description:
Reference: Page: or 4
Assessor-Recorder County Clerk
RECORDING RHOUESTED BY:
GOLDEN STATE FORBCLOSURE DOC# 2025-0276251
WHEN RECORDED, MAIL TO: 11/0/2021 Tiles: 1 Pages: 3
12:26 PM
Golden State Foreclosure Services SAN Pass $32.00
$0.00
34840 Staccato Street A5236 176.00
Palm Desert, CA. 92211 Total $107.00
Attention: Foreclosure Dept.
NOTICE OF DEFAULT
AND ELECTION TO SELL UNDER DEED OF TRUST
LOAN NO: TRUSTEE'S SALE NO: GSPC 7310 REFERENCE: PD INTERNATIONAL
IMPORTANT NOTICE
IF YOUR PROPERTY IS IN FORECLSOURE BECAUSE YOU ARE BEHIND IN YOUR PAYMENTS, IT MAY BE SOLD WITHOUT COURT ACTION, and you may have the legal right to bring your socount in good standing by paying all of your past due payments plus permitted coats and expenses within the timo permitted by law for reinstetement of your account, which is nomally five (5) business days prior to the date set for the sale of your property. No sale date may be set until three (3) calendar months from the date of this Notice of Default may be recorded (which date or recordation appears on this notice).
This amount is £7.489.87 as of _Octohor 7,2025, and it will increase until your account becomes current. You may have to pey the entire unpaid portion of your acoout, even though fall payment was demanded, but you must pey the amount stated above.
However, you and your beneficiary or mortgages may mutually agree in writing prior to the time the Notice of Sale is posted (which may not be earlier than the end of the three (3) month period stade above) to, among other things, (1) provide additional time in which to cure the default by transfer of the property or otherwise: (2) establish a schedule of payments in onder to cure your default, or both (1) and (2).
Following the expiration of the time period referred to in the first paragraph of this notice, unless the obligation being forsclosed upon or a separate written agreement between you and you creditor permit's a longer period, you have only the legal right to stop the sale of your property by paying the entire amount demanded by your areditor.
Page One (I) of Three (3) Pages
219
EXHIBIT
Description:
Reference:
DOC #2028-0278251 Page 2 or 3
NOTICE OF DEFAULT
AND ELECTION TO SELL UNDER DEED OF TRUST
PAGB 2, IMPORTANT NOTICE
To find the amount you must pay, or to arrange for payment to stop the foreclosure, or if your property is in foreclosure for any other reason, contact:
GOLDEN STATE FORBCLOSURE SERVICES, INC.
34840 Staccato Street
Palm Desert, California 92211
YOU MAY LOSE LEGAL RIGHTS IF YOU DO NOT TAKE PROMPT ACTION. NOTICE IS HEREBY GIVEN that GOLDEN STATE FORECLOSURE SERVICES, INC., A Corgoration, is now duly appointed Truatee under a Deed of Trust dated March 22, 2022, executed by PD International Business Center Inc._& California.corporstion, Trustor, to secure obligations in favor of Golden State Foreclosure Services, Inen & Califomie Corporation subatituted Trustee, and, Victor Huen Saluedo, a single man, curent Beneflateries, recorded on April 7, 2022..
Instrument No. 2022-0131848 Official Resords of San Remardine County. State of Califomla, describing land therein as:
The South 50 feet of the North 150 feet of Lot 95, TOWN OF RIALTO AND ADJOINING SUBDIVISIONS, in the City of Rialto, County of San Bernardino, State of California, as per map reoorded in Book 4, Page 11 of Mape, in the office of the County Recorder of said County,
APN: 0130-211-15-0-000
Including one note(a) for the sur of $ 324.000.00 that the beneficial interest under such Deed of Trust and the obligations secured thereby that are presently held by the Beneficiary. That a resch of and default in, the obligations for which such Deed of Trust is Three (3) Interest only payments, each in the amount of $1,485.00 which became dae 09/01/25 trough 11/01/23; Two (2) Late Fee of $89.10 which became due 09/16/25 and 10/16/23; and, fore- closure fees to date, estimated to be $2,856.57.
Page Two (2) of Three (3) Pages
2 220
EXHIBIT
Description:
Page: 3 or4
Reference:
DOC 42025-0278251 Page 3 of 3
NOTICE OF DEFAULT
AND BLECTION TO SELL UNDER DEED OF TRUST
PAGE 3, IMPORTANT NOTICE
That by reason thereof, the present Beneficiary under such Deed of Trust, has executed and delivered to said Trustee, a written Declaration and Demand for Sale, and has deposited with said uly appolnted Trustee, such Deed of trust and all the documends evidencing obligations secure ereby, and has declared and does hersby declare all sume secured thereby immediately due ar payable and has elected and does hereby elent to cause the trust property to be sold to satisfy the obligations secured thereby.
Dated: _October 7. 2025
GOLDEN STATE FORECLOSURE SERVICES,
INC., A Corporation
34840 Stagease, Street, Palm Depart, California 92211
By:
Richard Sexton, Foreclosure Officer.
Telephone No. (909) 838-5341
Page Three (3) of Three (3) Pages
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Reference: Description: EXHIBIT
Canyou Bond me prol that everythings been withdrawn/Thank you so much.
M Gmail Pedro Molina <[email protected]>
Our Foreclosure No. GSFC 7310 - 134S, Willow Ave., Rialto, CA. 3 messages
ho tossed
[email protected] goldensta eigymai.com Mon, Nov 17, 2025 at 1:39 PM Reply-To: "[email protected]" < [email protected]> To: "[email protected]" <[email protected]
Dear Mr. Molina,
Pursuant to your roquest, attached hereto you will find a copy of our worksheet which sets forth all of our fees and The fos amount i to reinste this on 57, to 7. Afedonaly, you wis find our witng instructions stached.
Please call with any questions. Thank you.
Richard Sexton
Golden State Foreclosure Servicas, inc.
(809)838-5341
Pedro Molina <[email protected]> Man, Nov 17, 2025 al 2:03 PM To: [email protected]
The wire is scheduled.
Cuedeo tort sugar
2 attachments
100013038.399
303K
1000130387.JP9
249
Pedro Molina <[email protected]> Thu, Nov 20, 2025 at 11:50 AM To: [email protected]
222
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Reference:
Assessor-Recorder-Gounty Clerk
RECORDING REQUESTED BY:
DOC# 2026-0220261
City of Rialto
08482028 TRies: 1 Pages: 2
WHEN RECORDED MAIL TO: 04:14 PM
SAN Fema 80.00
City of Rieto $0.00
Community Compliance 36739 CA SB2 Fee $0.00
150 South Palm Avenue Total $0.00
Rieito CA.92378
VED FOR RECORDER'S US
EXEMPT FROM RECORDING FEE PURRUANT TO GOV, DODE • 27388
NOTICE OF PENDENCY OF ADMINISTRATIVE ACTION
(Goverment Code section 38773.5(e).)
This notice concerns the following real property:
Property Address: 134 South Willow Avenue, Rialto, Califomla 92376 «APN: 0190-211-16-0-000
Legal Deacription: The South 60 feet of the North 150 feet of the East 150 feet of Lot 96, Town of Riato and ajoining subdivisione, in the City of Riello, County of Ben Bemardino, State of Califomis, as per Map recorded in Book 4, Page 11 of Mape, in the office af the Couty Recorder of said County
Owner: PD International Business Canter Inc., a Califomle corporation NOTICE IS HEREBY GIVEN that City of Risito, through its Community Compliance Division, has commenced adminietrative proceedinge concering the above-referenced property based on alleged substandard buildinge, public nulsances, andior violations of the Rialto Munlalpal Code that exist thereon.
These proceedinge may result in the imposition of administrative fines, the issuance of an abatement order, the placement of a tien or special sessement on the property, or other enforcement remedies authorized by law.
This notice is Intended to provide public notice of the pending administrative action and to place all Interested parties on. constructive notice that enforcerent salion concaming the condition of the property ls underway. Persons requiring further information concering this notice may contact the Rialto Community Compilance Division at 909-820-8070.
The City of Rialto will rescind thie notice in wrtting upon Its determination that all subetandard conditione, violations, or publio nulsances have bean fully abeted or corrected with all requtred City approvais, permite, and inspections or adminstrative proceedings are resolved and no further action is pending.
Signed this - bay of Ssptember, 2020
Timothy Sun
Community Complance Manager, City of Riaito
See attuched
notary
certificate
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Reference:
DOC #2025-0220261 Page 2 of 2
CALIPORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE $ 1188 A noiary publie or other offloer completing this certifloate verfiles only the idamily of the individuad who signed the document to which this certifloate is attached, and not the truthfulness, acouracy, or validity of that dooment Etate of Galfornia
County of san Demarauna.
on Sept 23,2025 before me, - Norma Pas Notary Public
Here insert Name and Tita of the Office
personally appesred : Timothy Sun
Namets) of Bignert
who proved to me on the basle of satisfactory evidence to be the persons whose namel sans subsorbed to the within intrument and arnowledged to me that harehe/they ecacuted the same in histher/ther authorized capacity(es), and that by his/her/their signature(s) on the inetrument the personia), or the entity upon behait of which the person acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws
of the Btate of Calffornle that the foregoing peregraph ia true and correct.
Signature ALiA шил.
Signature of Notary Public
Place Notary Seel Abave
- OPTIONAL
Though this section la optional, completing this information can deter alteration of the document or fraudulent mattachment of this form to an unintended document.
Description of Attached Document
Tie or Type of Document Native of Pendency si administrative action Documant Date: Number of Pegee: -
Signer(e) Other Than Named Above:
Cappoltylies) Claimed by Signer(s)
Signar's Name: _ Signer's Name:
CI Corporate Officer - Tita(s): _ [ Carporate Officer - Title(a):
© Partner - • Umited : [General * Partner — O Limited [ General [3 Individual •Attomey In Faot • Individual • Attorney in Fact • Trustee •I Guardian or Conservator • Trustee • Guardlan or Conservator • Other:. • Other:
Signer is Representing: Signer is Representing:
02018 National Notary Asocietion • www.NationeiNotary.org • 1-800-US NOTARY (1-800-878-88327): Hem #5907 2 225
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Email delivery certificate
"Read" No response
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S mail Delivery Certificate
Description:
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From Pedro Molina [email protected]
Subject Follow-Up for 134 S. Willow Ave Pedro Molina
Delivered on 30 Dec, 2025 al 10:25 PM
MAYOR JOE BACA «[email protected], Timothy Sullivan <sullivan @rialtoca.govs, Daniel Casey <[email protected]>, Christina Taylor <[email protected], Cody Clarke <[email protected]>.
Daniel Rosas <[email protected]>, Jay Garcia <[email protected]», Mayor Pro-Tem Ed Scott Delivered to <[email protected]», MAYOR PRO TEM ANDY CARRIZALES <[email protected]. <[email protected]>, <[email protected]>, <[email protected]>, Tanya Williams Tracking history
© Opened on 7 Jan, 2026 at 5:59 PM by [email protected] © Opened on 5 Jan, 2026 at 9:55 PM by Daniel Casey
• Opened on 5 Jan, 2026 at 9:53 PM by Daniel Casey
• Opened on 5 Jan, 2026 at 8:30 PM by Daniel Casey
• Opened on 5 Jan, 2026 at 7:44 PM by Daniel Casey
• Opened on 5 Jan, 2026 at 7:41 PM by Daniel Casey
• Opened on 5 Jan, 2026 at 6:10 PM by Daniel Casey
© Opened on 5 Jan, 2026 at 5:02 PM by Daniel Casey
• Opened on 5 Jan, 2026 at 4:43 PM by Daniel Casey
• Opened on 5 Jan, 2026 at 4:42 PM by Daniel Casey
© Opened on 5 Jan, 2026 at 4:40 PM by Daniel Casey
© Opened on 5 Jan, 2026 at 4:40 PM by Daniel Casey
• Opened on 5 Jan, 2026 at 4:39 PM by Daniel Casey
© Opened on 5 Jan, 2026 at 4:39 PM by Daniel Casey
@ Opened on 5 Jan, 2026 at 9:42 AM by Daniel Casey
• Opened on 5 Jan, 2026 at 9:12 AM by Daniel Casey
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Email Delivery Certificate
Description:
Reference: Page L02
• Opened on 5 Jan, 2026 at 9:04 AM by Daniel Casey
• Opened on 5 Jan, 2026 at 9:03 AM by Daniel Casey
• Opened on 5 Jan, 2026 at 9:02 AM by Daniel Casey
• Opened on 4 Jan, 2026 at 10:03 AM by [email protected] © Opened on 2 Jan, 2026 at 3:48 PM by Daniel Casey
• Opened on 31 Dec, 2025 at 6:27 PM by Mayor Pro-Tem Ed Scott • Opened on 31 Dec, 2025 at 9:42 AM by Jay Garcia
• Opened on 31 Dec, 2025 at 4:50 AM by Tanya Williams
© Opened on 31 Dec, 2025 at 3:51 AM by Tanya Williams
• Opened on 30 Dec, 2025 at 11:27 PM by Cody Clarke
• Opened on 30 Dec, 2025 at 10:28 PM by emontoya @rialtoca.gov @ Opened on 30 Dec, 2025 at 10:28 PM by [email protected] • Opened on 30 Dec, 2025 at 10:28 PM by [email protected] © Opened on 30 Dec, 2025 at 10:28 PM by Mayor Pro-Tern Ed Scott • Opened on 30 Dec, 2025 at 10:28 PM by MAYOR PRO TEM ANDY CARRIZALES • Opened on 30 Dec, 2025 at 10:28 PM by Daniel Rosas
• Opened on 30 Dec, 2025 at 10:28 PM by Cody Clarke
© Opened on 30 Dec, 2025 at 10:26 PM by Timothy Sullivan
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Descinion: Lease agreements
Reference:
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Description:
Reference: Page: 0 or 5
LEASE AGREEMENT
This Lease Agreement "Agreement") is entered into on 12/29/2023 between Pd International Business Center Inc, hereinafter referred to as "Landlord," and Alberto Cid Martinez hereinafter Lanie the reman taste 134 to an an atom 2% or am of 2a
1. Property Use: The property shall be used solety for commercial purposes, specifically for the Deration of a fower shop. Tenant shall be responsibe for any repairs, upgrades, painting, an electrical panel upgrades necessary for its business operations.
2. Rent and Deposit: Tenant shall pay a deposit of $4,500 at the signing of this Agreement, ong with the first monthly rent payment of $4,500. Additionally, the rent for each subseque onth shall be $4,500 for the first 12 months, with a 4.5% ($250) rent increase after 12 month Utilities and Maintenance: Tenant shall be responsible for payment of all utilties, includir ut not limited to alectricity and trash: In the event a larger trash bin is required, the Tenant sha bear the cost. Water charges shall be paid directly to PD Intemational Business by Tenant.
Tenant shall aiso be responsible for the upkeep of the property, including both the front and back bulldings.
4. Lease of Both Units: This Agreement pertains to the lease of both the front and back bulldings on the property.
5. Term and Renewal: This lease is for a term of 2 years. Upon expiration, the lease may be renewed subject to mutual agreament betwaen both parties.
6. Signage: Tenant is authorized to utilize signage for the promotion of the flower shop business. subject to compliance with local regulations and oblaining any necessary permits.
7. Compliance: Tenant shall comply with all applicable laws, regulations, and zoning requirements related to the operation of a flower shop on the property.
B. Repairs and Maintenance: Tenant shall be responsible for all repairs and maintenance of the property, including necessary upgrades for the elecirical panel, to ensure the safe and efficient operation of the flower shop.
9. Late Payment Fee: Payment Due on the 25th of every month, if the Tenant fails to make the monthly payment by the 5th of each month, a late fee of 595 shall be applied.
10. Termination: Either party may terminate this Agreement with prior written notice, subject to the terms and conditions outlined in the Agreement.
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Description:
Reference: Page: 205
IN WITNESS WHEREOF, the parties herelo have execuled this Lease Agreement as of the gate first above written.
Landiord's Signature (Tenant's Signature]
imagine
[landlord's Name) [Tenant's Name]
Date: 12/21/2023 Date: 12-24-22
Breakdown of the monthly payments for the entire 24-month lease agreement, including the
4.5% increase after the 12th month:
Month 1-12:
- Month 1: $4,600 Frei mu (ost
- Month 2: 54,500 42,503
- Month 3: $4,500 $ 2 5c2
- Month 4: $4,500 - April
- Month 5: $4,500
- Month 6: $4,500
- Month 7: $4,500
- Month 8: $4,500
- Month 9: $4,500
- Month 10: $4,50D
- Month 11: $4,500
- Month 12: 54,500
Month 13-24:
- Month 13: 54.725 (4.5% increase from month 12)
- Month 14: $4,725
- Month 15: S4,725
- Month 16: $4,725
- Month 17: $4,725
- Month 18: $4,725
- Month 19: 54,725
- Month 20: $4.725
- Month 21: $4,725
- Month 22: $4,725
- Month 23: $4,725
- Month 24; $4,725
1 231
EXHIBIT BC-9587C1CEAFC7
INIA COMMERCIAL PARKING LEASE AGREEMENT
Description:
Page: 30r5 (Vendor Use - Weekly Term)
Reference: 1
This Commercial Parking Lease Agreement ("Agreement") is entered into as of December 30, 2025, by and between:
Lessor: Pedro Malina and/or PD International Business Center Inc.
Lessee (Vendor): Gustavo Gio Bravo Muerto de Hambre inc Collectively referred to as "the Parties."
1. Premises
Lessor hereby leases to Lessee the non-exclusive right to use the following parking area for commercial vendor purposes:
Location: 134 S Willow Ave, Rialto, CA 92376
Description: Designated parking lot area with existing signage, suitable for vendor setup, equipment, and customer access.
2. Permitted Use
The Premises shall be used solely for vendor-related commercial activity, including setup, sales, equipment storage, and customer access. Lessee shall comply with all applicable laws, permits, and municipal requirements.
3. Term
The lease term shall begin on:
- Start Date: December 30, 2025
- Initial End Date: January 31, 2026
After January 31, 2026, the Agreement shall continue week-to-week unless terminated by either Party with proper notice under Section 9.
4. Rent and Payment Schedule
A. Initial Period (December 30, 2025 - January 31, 2026) Lessee shall pay rent at a rate of:
A. Weekly Cost Breakdown
Total
Period Week Dates Weekly Rate Due
Dec 30, 2025 - Jan 5, $200 $200
Week 1 2026
Week 2 Jan 6 - Jan 12, 2026 $200 $200
Week 3 Jan 13 - Jan 19, 2026 $200 $200
Week 4 Jan 20 - Jan 26, 2026 $200 $200
Week 5 (partial $200 (full week rate $200
Jan 27 - Jan 31, 2026 applies)
week)
- $200 per week,
- Payable in advance or as otherwise agreed in writing.
B. Ongoing Weekly Rent (Beginning February 1, 2026)
1 232
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Description: NIA COMMERCIAL PARKING LEASE AGREEMENT
(Vendor Use - Weekly Term)
Reference: Page: 4 of 2
Starting February 1, 2026, rent shall increase to:
February 2026 Weekly Rent Breakdown
Week Dates Weekly Rate Total Due
Week 1 Feb 1 - Feb 7, 2026 $500 $500
Week 2 Feb 8 - Feb 14, 2026 $500 $500
Week 3 Feb 15 - Feb 21, 2026 $500 $500
Week 4 Feb 22 - Feb 28, 2026 $500 $500
- $500 per week, Monday through Sunday
- Payable weekly in advance.
C. First Week Adjustment
Lessee shall pay $200 for the first week beginning December 30, 2025, prorated if necessary for partial-week occupancy.
D. Accepted Payment Methods
Payments may be made via:
- Zelle
- Cash
- Check
All payments shall be made to Pedro Molina and/or PD International Business Center Inc.. as directed by Lessor.
5. Utilities and Services
No utilities are included unless expressly stated. Lessee is responsible for any permits, licenses, or vendor-related requirements.
6. Maintenance and Condition
Lessee shall keep the Premises clean, orderly, and free of debris. No permanent structures may be installed without written approval.
7. Liability and Insurance
Lessee assumes all responsibility for its operations and shall maintain appropriate liability insurance naming Lessor as an additional insured. Lessor is not responsible for theft, damage, or loss of equipment or goods.
8. Indemnification
Lessee agrees to indemnify and hold Lessor harmless from any claims, damages, or liabilities arising from Lessee's use of the Premises.
9. Termination
After January 31, 2026, either Party may terminate this Agreement with seven (7) days written notice. All rent owed through the termination date must be paid in full.
2 233
EXHIBIT BC-9587C1CEAFC7
Description: ¿NIA COMMERCIAL PARKING LEASE AGREEMENT
PageS (Vendor Use - Weekly Term)
Reference: 3
10. Governing Law
This Agreement shall be governed by the laws of the State of California.
11. Entire Agreement
This Agreement constitutes the full understanding between the Parties and may only be modified in writing signed by both Parties.
12. Signatures
Lessor:
Name: Pedro Molina and/or PD International Business Center Inc.
Stigned by
Signature: Petro Dremier Motine
Date: Dec 30, 2025
Lessee (Vendor): Gustavo Gio Bravo
Name:
Signature: 4
Date: 12/30/2025
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Description Original records /Permit
Reference:
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Permit Number: CAP22-0027
Permit Details | Tab Elements | Main Meru
Type: LEGACY PERMITS- Status: Approved Project Name:
AMNESTY
IVR Number: 84022 Applied Date: 07/18/2022 Issue Date:
District: City of Rialto Assigned To: Expire Date:
Finalized Date:
Description: CONVER. OF DETACHED BLDG INTO DWLLNG & ALT TO EX FLOWER SHOP Summary Locations Fees Reviews Inspections Attachments Contacts Sub-Records Holds Meetings More Info Locations | Next Tab | Permit Details | Main Menu
Locations Sort Main
Type: Location
US
134S WILLOW AVE, RIALTO,
CA, 92376
236
Reference: Description: EXHIBIT
STI
Strucfura 8
CAR ER
BORJANAS
YO AMP
Page: 2 0r3
GAR 1
31 4Eer1 2:0m
1-12.20- 22== 14-
72 9-025 ANOMBRATON ES ERROSO FOI CORPO S60
218. 10 325005052500-122.
237.
Reference: Description: EXHIBIT
RESIDENTIAL BUILDING RECORD, 230-201-15
DESCRIPTION OF BUILDING
Sheead en Kiring. FLOORS
NOONG DINE TRAI
Pastereo
Page: 303
DATION
384 TAE Gutters
PLUMBINE -802 l
LI:
ILi Sa Press Sanke Do Barmai
WINDOWS Maturer
Te Tom
and Coutog teal Seat
1 SECO I NOMMAL % 8000 RATING (E.G,4,6P).
YEAR 110205
LASS
19465
* 1961. 4342002
34 4652(3L.A. TELE Babe Gase
sealers
COMPUTATION 107.
Safe 212 1.7019:3122
3 Areo LeT Carr Casi BALL
4:31 1730 822222 7.2011033 25.12/92kl 36750
5-4EL 2.44 2901 20$ 4.60 2.59 190 300
24. 42. •50. 3.0 - 30 1Z0
I CA 122 10.50 1506.
EV 932 2/2 243 938 35G 25 2 8-20. 23 tele on 92
1.62 4152 10822
1506sE 1462 • Se L48 1203.
320. 3.20 320. 1000
ENT. 400.
TOTAL 42150 12126 139/3 2542a 5IEL2
AL% 0000 1956
35.80x.1 12.3 7.01 Leson 3аzo
238
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Description: For reference
Reference:
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Intended only for the use of the individual or entity named above. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or Pedro Damian Molina [email protected]>
coping or this come into prate eatin it til cas e that be repaid as RE: 134 S. Willow Ave. - Case #: CE21-0942
messages
Timothy Sun tsun @rialtoca.gov» Tua, Aug 18, 2022 at 11:47 AM To: PedroDamian Molina [email protected]>/
<[email protected], Timoffy Sun <[email protected]> Mr. Molina.
Please pravide an update.
(ain a taro your neto daise 715202 with instructs you bo submit at requito plans, plications and paperwor CAUTION: This email originated from outside your organization. Exercise cauton when opening attachments or clicking links, especially from unknown senders.
Please provide a status.
Thank you. On Thu, All 7, 2022, 1:26 PM Timothy Sun <[email protected]:
Mr. Molina,
Timothy Sun, CCEO
1 believe a meeting Doug Bragg, Kerri from Fire and a permit tach at the counter would be beneficial.
Community Compliance Manager
I have attached the corrections from Doug that he prepared last year.
City of Rialto Police Department
Community Compilanca Division
126 N. Willow Avasuo, Riaito, CA 92376
Desk: (908) 820-8092
tsungrialtopd.com | www.youmaito.com
I unto wit expedie the tir with bot Doug and Steve recanity lour the violationa, so hopenity a meeting at the tach stam one be une bonier nep out pormi. Once you explen what yord like to do with Doug, Keri and a permit 240
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Respectfully, Ill go in and pay for a permit for that panel today. Thanks.
Timothy Sun, CCHO
Community Compliance Manager
On Thu, Jul 7, 2022, 9:28 AM Timothy Sun staun @riattoca, gov» wrote:
City of Risito Police Department Mr. Molina,
Community Compliance Division
128 N. WHow Avenue An explained tate or meeting at the propon pes documen you have from the County Tex Acossors Once Riaito. CA 92376
Dest: (909)820-2525 x8092
Email: [email protected]
Image posamage.jpeg A deceit, experie in are ta tern pro pond parter by directing you to the proper PRIVILEGED AND CONFIDENTIAL: This E-mail is covered by the Electronic with him and Inspector Sleve Jaramillo. Please contact Doug directly if you have quesiions regarding his notsao ahead be laterate edit or alectric later at can be to either Doug Bragg or Stove Jaramilto.
From: PedroDamian Moline soffice @odintibc.com» We too look forward for your team's opening once the property is in compliance.
Sent: Thursday. July 7,2022 12:14:05 PM
To: Timothy Sun <[email protected]>
Cc: Douglas Bragg <bragg@rialtoca gov»; Steve Jarsmitlo<[email protected]>; [email protected] <sun@@naltapd.coma: Jesse Sanchez<)[email protected]; Veronica Ortz [email protected]> Subject: Re: Ref. 134 $ willow aye
Respectfully,
Clicking tinks, especial finited from bends your organizallon. Exercise caution when opening attachments or Good afternoon Timothy, hope all is well with you. I just got back from downlown Development Depertment Building Timothy Sun, CCEO Division. I was there for over 3 hours trying to pay for permit. Please help ev elaborate on what's needed to remove the violatons? I'm including Jesse Sanchez and Veronica Ortiz so we could all be on the same page on getting this deered Community Compliance Manager up and moving forward. My main goal is to get the flower shop up and running as soon as possible. Thank you City of Rialto Police Department
Commentty Compllance Division
On Thu, Jul 7, 2022, 9:55 AM PodroDamlan Molina < office @pdintibc.com> wrote: 128 N Willow Avenus Good morning Timothy,
Rialto. CA 82376
241
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Description:
Reference: Page: 3 or 10
A be used or relatal up ages The proper upe a re lore i re fort ok and there a alone.
Desk: (909)820-2525 x8092 used for storage, but absolutely no residental use of any kind, such as a rental of any kind.
Email: ([email protected]
Respectfully.
Timothy Sun, CCEO
Communtty Compliance Manager
Cc: Douglas Bregg <[email protected]>; Stave Jaramillo <sjaram:[email protected]»; tsungrialtopd.com City of Rialto Police Department [email protected]> Community Compliance Division
Subject: Re: Ref: 134 s willow ave
128 N Wilow Avenue
Risito. CA 82376
CAUTION: This email originated from cutside your organization. Exercise caution when opening attachments or oilcking links, especially from unknown senders.
Held Timothy, thank you so much for your fast response. Desk: (909)820-2525 x8092 To my understanding, the first step is to dear up the violatons. have been going downtown daily to gel Information on this property. The property is not being changed to reskientlai. I'm keeping as-is with no changes Email: [email protected] to the structure. I wanted to dear up that the budding was never changed mom its original stale and the structure han alwaya baon the same size and location since the 1950s. permit document is attached. As for the electrical, I contacted Nancy Mora from the planning department at Edison. She is currently assisting me in getting a location On Wed, Jul 6, 2022 at 3:23 PM Timothy Sun <[email protected]> wrote:
Mr. Molina.
I received both your emall and voice mail steting that you want to resolve your viclations. unt you hire a censod foctician to help you with the unpermited panel that powers both the front and roar To: [email protected] <[email protected]> Subject: Ref: 134s wllow ave
OrATIoN i said iron to and your raision Exerce auton he opening eatment.
Good afternoon Tim.
242.
EXHIBIT
Description:
Reference: Page: 4 offo
atructure and remove the violations. I's reaily urgent for us to move forward, thank you. PRIVILEGED AND CONFIDENTIAL: This E-mall is covered by the Electronic Communications Privacy Act, 18 U.S.C. §§ 2510-2521 and is legally privileged. This is confidentiall information intended only for the use of the individual or entity named above. If the reader of this message is not the intended recipient, you are hereby notifed that any disemie to dietition or a a of the one nice igna prethal ca. No used to se Fri, Sep 18, 2022 at 7:45 AM
On Tue, Aug 18, 2022, 1:48 AM Timothy Sun «teun@rattoca gov» wrote:
Mr. Molina,
Please provide an update. Rodriguez, Kerri <[email protected]> Subject: Re: Ref: 134 's willow ave
(aper at no our rote are my 20s one instructs you to submit al racquite plans, appications and Enou, ope Taiy ma anot dread it your organizalan. Exercise causin when opening attachments or clicking Please provide a stetus.
correction list. thank you again
Thank you. On Thu. Jul 7, 2022. 1.26 PM Timothy Sun [email protected] wrote:
Mr. Molina.
Timothy Sun, CEO I believe a meeting Doug Bragg, Keri from Fire and a permit tech at the counter would be beneficial.
Community Compliance Manager
I have attached the corrections from Doug that he prepared last year.
City of Riatto Police Department
Community Compilance Division As for the front unit, 1 know that Fire had some corrections as well, and if you need permits for the work, it would be 128 N. Wilow Avenue, Rialto, CA 92376 greet to get it all at one lime.
Desk: (909) 820-B092
[email protected]/ www.youriato.com one et expand a metro with both Doug and Steva recenty about the vilatione, so hopeluty a meeting at the WARPD ID Grapic
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thermit er tie termite reptical permit. once you explain what your the to do with Doua, Keri and On Thu, Jut 7, 2022, 9:66 AM PedroDamian Molina [email protected]> wrote:
Good morning Timothy,
Respoctully, Ill go in and pay for a permit for that panel today. Thanks.
I'm really happy with the purchase of 134s Willow. I Just want to move forward and just get everything Timothy Sun, CCEO straightened out, I met the mayor yesterday at the farmers market. She is really down to earth. I feel this was meant to be, for me to get more involved with the city. Thank you.
Community Complimace Marger
On Thu, Jul 7. 2022, 9:28 AM Timothy Sun <Isun @riatoca gors wrote:
City of Risito Police Departren! Mr. Molina,
Community Complinnoo Division
128 N. Willow Avenue As expleined during our meeting at the property, the document you have from the Conly Tax Assessor's Ofice Rialto. CA 92376 is for calculating tax rates only. it is not a Building permit.
Desk: (909)820-2525 x8092 With regards to the front unit, the unpermitted electrical panal requires a permit. This has been confimed by both Senior inspector Doug Bragg and Inspector Steve Jaramillo Email: [email protected]
As decised my role, tin are is autor apart one a prand neil try directing you to the proper PRIVILEGED AND CONFIDENTIAL: This E-mail is covered by the Electronic i understand your frustration in having purchased a property 'as-le" with Violatione that was red-tagged prior to the reader of this message is not the intended recipient, you are hereby notified that any correction notice that 1 provided you. dissemination, distribution or copying of this communication is prohibited. Nothing in this message should be interpreted as a digital or electronic signature that can be used to authenticate a contract or other legal document.
From: PodroDamion Moina sofico@pintibc com»
Sent: Thursday, July 7. 2022 12:14:05 PM We too look forward for your tenant's opening once the property is in compliance.
To: Timothy Sun <tsun@rieltoca gov›
Cc: Douglas Bragg<[email protected]>: Steve Jaramilo<[email protected]; [email protected] <[email protected]»; Jesse Sanchez. [email protected]»: Veronica Ortiz <[email protected] Subject: Re: Ref: 134 s wilow avo
Respoctfully.
CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or dicking links, especially from unknown senders.
Good afternoon Timothy, hope all la well with you. I just got back from downtown Development Department Building Division. i was there for over 3 hours trying to pay for permit. Please heip i elaborate on what's needed to remove Timothy Sun, CCEO the violatiuns? I'm including Jesse Sanchez and Veronica Ortiz so we could al be on the same pago on getting this Community Compliance Manager cleared up and moving forwand. My main goal is to get the flower shop up and running as soon as possiole. Thank 244
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Reference: Pagelo orld
City of Rietta Police Department
Community Complianco Divleion
128 N. Wilow Avenue
Risto, CA 92376
Desk: (909)820-2525 x8092 After I spoke with Planning, it appears that your property is in a zone where none of the structures are Email: [email protected]
PRIVILEGED AND CONFIDENTIAL: This E-mail is covered by the Electronic work, you must firsi obtain a demolition permit. commental moration fect, t uns Corte use 262e and to dug y prity nad. This is Respectiully,
Timothy Sun, CCEO
From: PedroDamien Molina coffice @@dinbc com»
Sent: Wednesday, Juty 6, 2022 5:42 PM Community Compliance Manages To: Timothy Sun tsun @riaitoce.gov»
Ce: Douglas Bregg<[email protected]; Steve Jaramillo sjaramito@riattocagov»; ([email protected] [email protected]> City of Rialto Police Department
Subject: Re: Ref: 134 8 milow ave
Community Compliance Division
CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or 128 N. Willow Avenue dicking links, especiaily from unknown senders. Rito, 6002378 Hello Timothy, thank you so much for your fael response.
Desk: (909)820-2526 x8082
to the structure. I wanted to clear up that the bullding was never changed from its onginal state and the structure has atways been the same size and location since the 1050s, permit document is attached. As for the Email: [email protected] electrical, 1 contacted Nancy Mora from the planning department at Edison. She is currenily assisting me in getting a location for the meter on the back unit. To my knowledge, Im not able to get a permit until that is dono.
As for the front unit, the meter location is correct and confirmed. Please help on this, My main purpose is to get the flower shop up and running. Since the tenant, Jessica is losing money. She is needing to get her own business permits.
PRIVILEGED AND CONFIDENTIAL: This E-mail is covered by the Electronic Communications Privacy Act, 18 U.S.C. §§ 2510-2521 and is legally privileged. This is confidential information intended only for the use of the individual or entity named above. If the reader of this message is not the intended recipient, you are hereby On Wed, Jul 6, 2022 et 3:23 PM Timathy Sun <[email protected] wrote: notified that any dissemination, distribution or copying of this communication is prohibited. Nothing in this message should be interpreted as a digital or electronic signature that can be used to authenticate a contract or other legal document.
I received both your emall and voice mall stating that you want to resolve your violations. 245
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From: PedroDamian Molina coffice @pdintibc.com> since you and I met a few montha ago, so no one is to be occupying any of the structures. You have known that the front Sent: Wednesday, Juty 6, 2022 12:57 PM rhea i underie it i so and to l has no ben resolved. is unate due to the urpermited alectical To: [email protected] [email protected]>
Subject: Ref: 134 s willow sve
or calcing inks, one only in rom out your organization. Exercise caution when opening atachments.
Good attemoon Tim,
The cly a gret er al to rail you need to move oard with your volatons and more than enough ine to the structure and remove the violations. It's really urgent for us to move forward, thank you. 4 attachments
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RIALTO Raspectfuty,
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·
Timothy Sun, CCEO
Image002 fpg Community Compllance Managar
Cly of Rialto Police Department
image001.png Community Complianca Diviaton
128 N. Wllow Avenue, Ridilo, CA 02376
Desk: (909) 820-8082
Timothy Sun<[email protected] Fri, Sep 16, 2022 at 8:03 AM [email protected]| www.yourraito.com To: PadroDamian Malina <[email protected]>
Cc: Douglas Bragg<[email protected]>, Slove Jeramillo<[email protected]», <[email protected]»,"[email protected]" [email protected], Jesse Sanchez [email protected], Veronica Ortiz [email protected]», Nicola Hastam-Wright [email protected]?, CodeEnforcement <Code [email protected] LAGE Mr. Molina.
This omal is to momorialize our telephone conversation yesterday.
Is not the Intended recipient, you are hereby notified that any dissemination, distribution or (every that find plane to re no your mentions, the is 2 let an a datin to anim at 75000. Copying or tie consignature that can le used aultentiate a contact or other gated a Once the citation is issued, I will give you two weeks to submit plans to either remove or attempt to legaize all unpermitted work. If plans are not submitted at that time, thie office will forward your case to the City Prosecutor's Office document. for a case to be flied against you in Supertor Court. Please keep in mind that your violalion are Misdemeanor level offenses.
During our conversation, I told you that your tenant called me to advise that you served her with a 3-dey notice for not paying you rent. You told me that she hasnt been paying you rent. I reminded you that bulldings had been red-lagged 246
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Reference: Page: O or lO
128 N. Willow Avenue. Riallo, CA 92376
From:PedroDamian Molina < [email protected]> Dosk: (909) 820-9002 Sent:Friday, September 16, 20227:45 AM [email protected]/ www.youmalto.com To:Timothy Sun «[email protected]>
Subject:Re: 134 S. Willow Ave. - Case #: CE21-0942
In regards to the call from yesterday. You stated that the front building the flower shop was red tagged. Nothing was posted on the front building only back building that the tagged. Please let me know if the front building was red tagged too? Please Post Red Tag appropriately on the front building thank you so much PRIVILEGED AND CONFIDENTIAL: This E-mail is covered by the Electronic Communications Privacy Act. 18 U.S.C. S$ 2510-2521 and is legally privileged. This is confidential information intended only for the use of the individual or entity named above. If the reader of this message is not the intended reciplent, you are hereby notified that any dissemination, distribution or From: Timothy Sun
Cc: Douglas Bragg abreg@na/foc.gov; Steve Jaramillo<[email protected]; [email protected]: Jesse Mr. Molina,
San hurday day on 3ib.com.
Please provide an update. To: Timothy Sun <[email protected]» Rodriguez, [email protected]>
1 have attached prectice des 25/202 ich instructe you la submit al racinto plans, applications and papenwor Subject: Re: Ref: 134g willow eve CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking Please provide a status. links, especialty fram unknown sendera. correction list. thank you again
Thank you.
On Thu, Jul 7, 2022, 1:26 PM Timothy Sun dsun @nattoca.gov»wrote:
Mr. Molina,
Timothy Sun, CCEO
Community Compliance Manager i believe meeting Doug Bragg, Kerri from Fire and a permit tech at the counier would be beneficiat City of Rialto Police Department have atlached the corrections from Doug that he prepared last year.
Community Compilance Division
247
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Page: 9.10
Reference:
a or gend al know thet fire had some corecions as wel, and if you ned permits for the work, it would be Luper ou bed noting with both Doug and Steve reconty about the violations, so hopoulty a meting at the CAN is pol rial to eate your arganizion. Exerce caution when parin atachment of Good efternoon Timothy, hope all is well with you. I just got back from downtown Development Department Building A permit to eithor attempt to legalize or remove all unpermitted work is what's needed. Doug will be able to clarity once tech, stat wil be able ta better hesp you.
On The, Jul 7, 2022, 0.55 AM PedroDarian Molina coffice@pointbc. com» wrote:
• Respectilly. Good morning Timolty,
Ill go in and pay for a permit for that panel todey. Thanks, Timolly Sun, CCRO
Commusity Compliance Manager to get more involved with the city. Thank you.
City of Rialto Police Department On The, Jul 7, 2022, 9:28 AM Timothy Sun [email protected]>wrote:
Community Compliance Divsion Mr. Molina,
128 N. Willow Avenue
Riaito, CA 82376
i ceiling tara our one this no he proper the document you have from the only a A sor Or lo Desk: (909)820-2525 x8092
Email: [email protected] Cut r a da dare for on, the reprices ate let panel repur a peril. This has been confirmed by both, As let ed, my pain the are in emer nepentes ananing perso by directing you to the proper the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is prohibited. Nothing in this message should be interpreted as a digital or electronic signature that can be used to authenticate a contract or other legal document.
From: PedroDamien Molina [email protected]
Sent: Thureday, July 7, 2022 12:14:05 PM We too look forward for your tenants opening once the property is in compliance.
To: Timathy Sun stun@rinifoca govs
Cc: Douglas Bragg cobragg @rialtoce.gov»; Steve Jaramillo<[email protected]; [email protected] 248
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Reference: Pase: l0.10
Respectfully, On Wed, Jul 6, 2022 at 3:23 PM Timothy Sun [email protected]> wrote:
Mr. Moline.
Timothy Sun, CCEO I received both your email ahd volce mail stating that you want to resolve your violations.
Community Complance Manager
Dilyou hire a licensed electrician to heip you with the unpermitted panel that pawers both the front and roar City of Rialto Police Depertment
Community Compliance Dision
128 N Wilow Avenue
Riallo. CA 92376
Desk: (909)820-2525 x8092
Email: [email protected]
work, you must first obtain a demolition permit.
Respectfully.
Timothy Sun, CCEO
Community Compliance Manager
From: PedroDamlan Molina [email protected]>
Sent: Wedheaday, July 6, 2D22 5:42 PM
To: Timothy Sun tsun@/altoca-gov City of Rialto Poice Department Cc: Douglas Bragg<[email protected]»; Steve Jaramillo [email protected]; [email protected] <[[email protected]> Community Compiance Division
Subject: Re: Rel: 134 s willow ave
128 N. Willow Avenue
Riallo, CA 82376
CAUTION: This email originated from outside your organization. Exercisa caution when opening attechmerits or clicking inks, ospocially from unknown senders.
Hello Timothy, thank you so much for your foat response. Desk: (909)820-2525 x8092 To my understanding, the first step is to clear up the violations. I have been going downlown daily to get information on this property. The property is not being changed to residential. I'm keeping as-la with no changea Email: [email protected] contacted Nancy Mora from the planning department at Edison. She is currently assisting me in getting a location for the meter on the back unit. To my knowledge, i'm not able to get a permit until that is done. As for the front unit, the meter lacation is correct and confimed. Please help on this. My main purpose is to gat the flower shop up and running. Since the tenant, Jessica is losing money. She is needing to get her own business permits. PRIVILEGED AND CONFIDENTIAL: This E-mail is covered by the Electronic Communications Privacy Act, 18 U.S.C. §§ 2510-2521 and is legally privileged. This is 10