Summary Statement of Valuation – APN: 225-032-028
Epic Land Solutions, Inc. – Appraiser: Kent Carpenter, MAI
SUMMARY STATEMENT OF VALUATION
Subject Property: 6281 Brockton Avenue, Riverside, CA 92506 Owner: According to the submitted title report, title to the subject parcel is vested in RH & RJ Pluim Companies, LLC, a suspended California limited liability company subject to preliminary title report exceptions. The property has not experienced any arms-length transactions during the past 5 years and the property is not currently listed for sale.
Assessor Parcel Number (APN): 225-032-028
Parcel Size: 11,325 square feet
Date of Value: March 13, 2024
Intended User(s): The client for this appraisal assignment is Phaedra A. Norton, City Attorney with the city of Riverside. There are no other intended users. Anyone else using or relying on this appraisal is considered an unintended user and no fiduciary obligation is owed by the appraiser to that party.
Intended Use: The intended use of this appraisal report is as a basis for potential acquisition of the interests being appraised. The appraisal cannot be used for evaluation for collateral for a loan, collateral for bond funding, appealing taxes, settling an estate, partnership dissolution, etc.
Highest and Best Use: Before Condition
Physically Possible - The subject property is a relatively level, rectangular shaped parcel that is in a primarily residential neighborhood, with retail and commercial uses along the major arterials. Due to the existence of train tracks and rail corridor along the south side of the property, direct access to the property from the south is eliminated. However, the property still has frontage on Brockton Avenue with access to the property coming from Gardena Drive which runs along the north side of the property. Consisting of a single parcel, the property is typical in size to the other commercial parcels along Brockton Avenue, has all utilities available, and could accommodate a variety of legally permissible uses. The physical characteristics of the site contribute well to the existing use of the property for a multi -tenant office building.
Legally Permissible – The property is zoned O (Office) within the city of Riverside and N -MU (Neighborhood – Mixed-use) per the Summary Statement of Valuation – APN: 225-032-028
Epic Land Solutions, Inc. – Appraiser: Kent Carpenter, MAI
General Plan of the city. The Office Zone (O) is intended for the location of offices for administrative, business and professional activities that involve a relatively low volume of direct customer contact. The Zone is also established to allow limited commercial uses that support the office users and their employees. This zone allows for a variety of commercial/retail uses. The existing use of the property as an office building is a legally permissible use under current zoning.
The General Plan Designation (MU -N – Mixed-Use –
Neighborhood) is intended to allow for a neighborhood mixed - use, retail, office and residential uses. While the maximum density allowed in the zone is 10 dwelling units per acre and a 1.0 FAR (floor area ratio), the typical density found in this zone is 5 dwelling units per acre with a 2.0 FAR. Financially Feasible – In addition to the legally permissible uses and the physical characteristics of a site, the surrounding land uses in the immediate area have a big impact on the financially feasible uses of a p roperty. In the immediate area of the subject to the north and south, there are numerous office buildings and some retail buildings along Brockton Avenue. All of the interior streets (away from the major arterials), there are older single -family residences.
The existing use of the property for office use is compatible with surrounding land uses and would appear to be the most financially feasible use of the property. Therefore, it is concluded that the continued use of the property for office use is the mos t financially feasible use of the property. Maximally Productive – Considering the legally permissible, physically possible, and financially feasible uses in the current market, the highest and best use is for development of some form of office building, similar to that which currently exists on the property and to that which currently exists in the immediate neighborhood.
After Condition
In the after condition, the larger parcel will have the same use and development potential as in the before condition. As the acquisition is relatively small and does not have an impact on existing buildings or site improvements, there is no negative impact on the remainder parcel due to the acquisition. Therefore, the highest and best use of the property in the after condition is the same as in the before condition.
Appraisal Procedures Followed, Methodologies
For the appraisal of the subject property, only the sales comparison approach will be undertaken. Neither the cost approach nor the income capitalization approach are appropriate valuation methods when valuing vacant land. The sales
comparison approach derives a market value opinion by making a comparative analysis of recently sold properties having similar Summary Statement of Valuation – APN: 225-032-028
Epic Land Solutions, Inc. – Appraiser: Kent Carpenter, MAI
characteristics to the property being appraised. Each sale property is compared to the subject property focusing on similarities and differences that influence value.
Sales Comparison Approach
The sales comparison approach is a primary valuation
methodology in valuing unimproved land, in cases where existing building improvements contribute no value to the property, or when building improvements are unaffected in partial acquisition valuations. As such, this methodology will be undertaken in valuing the subject property. A summary of comparable properties in the surrounding market area is shown in the following chart.
Zoning: O (Office)
Summary Statement of Valuation – APN: 225-032-028
Epic Land Solutions, Inc. – Appraiser: Kent Carpenter, MAI
Principal Transactions for the Sales Comparison Approach:
Summary Statement of Valuation – APN: 225-032-028
Epic Land Solutions, Inc. – Appraiser: Kent Carpenter, MAI
Adjustment Analysis
Market Data Summary
After considering differences between these data items and the subject property, they demonstrate that the subject property should be worth something less than $25.79 per square foot, something greater than $22.96 per square foot, and something similar to the range of $24.02 to $24.56 per square foot.
Reconciliation of Value – Before Analysis
The adjusted data indicated a value range of $24.56 to $25.79 per square foot. The subject is irregular in shape, larger in size, and has good access from multiple streets. The location of the property is adequate to support a variety of commercial/retail developments based on its surrounding residential land use patterns. Based on these factors compared to the comparables, the subject’s value is concluded to be at $25.00 net per square foot. This results in a total fee simple value of $283,125, rounded to $283,000 for the subject property (11,325 square feet x $25.00).
Summary Statement of Valuation – APN: 225-032-028
Epic Land Solutions, Inc. – Appraiser: Kent Carpenter, MAI
Value of the Part Acquired
A street & highway easement acquisition is required to accomplish the planned project. There will be no residual use of the easement area by the property owner after the granting occurs. As such, the easement is tantamount to a fee acquisition of the property, with the concluded land unit value discussed in the valuation of the larger parcel being used to value the acquisition. As concluded, a land value of $25.00 was concluded, which applied to the acquisition area (111 square feet) results in a value for the acquisition area of $2,775.
Value of the Remainder in the After Condition
The value of the remainder after the acquisition but before consideration of benefits can be discussed based primarily on the previously discussed value conclusions and market data. Due to the relatively large size of the larger parcel and the relatively small size and location of the proposed acquisition, it is concluded that the highest and best use would not be impacted in the after condition by the proposed acquisition.
Severance Damages
Severance damages are equal to the difference between the value of the remainder as a portion of the whole before any acquisition and the value of the remainder in the after condition before consideration of benefits. If the value of the remainder in the after condition is less than the value of the remainder as a portion of the whole before, the property suffers permanent severance damages. Damages can be caused by the actual taking or construction of the improvements in the manner proposed.
It is concluded that the larger parcel would have the same highest and best use after the acquisition and completion of the project, with no permanent damages concluded.
Project Benefits
In the after condition, the subject property will have similar utility to its before condition. Under California law, project benefits may only be used to offset severance damages. I have considered the potential benefits accruing to the subject property as a result of the construction of the improvements in the manner proposed. Because there are no damages to offset, I have not calculated the amount of the benefits, if any, from this project. Should it be determined there are damages, I reserve the right to calculate benefits.
Site Improvements in the Acquisition Area
No staking of the proposed acquisition area had occurred at the time of property inspection. However, based on inspection of the property, submitted engineers plat map, and aerial photos, it appears that the acquisition area is in a site improvement area (concrete walkway & concrete block wall) that does not impact parking area, building area or access to the property. Due to the small-scale nature of these improvements and information obtained from project plans, it is assumed that all these improvements will either be protected in place or replaced “in-kind” as part of the project construction. Therefore, no compensation is warranted to the property owner.
Summary Statement of Valuation – APN: 225-032-028
Epic Land Solutions, Inc. – Appraiser: Kent Carpenter, MAI
Valuation of TCE
Final Value Conclusions: