CBRE Valuation & Advisory Services
Appraisal Report
PALM FIELD PARK/ANTIL PLANT SITE
North side of 6th Street, Between Cooley St and Pedley Rd San Bernardino, California 92410
Prepared for: City of San Bernardino
Date of Report: September 13, 2024
CBRE File No.: CB24US053175-1
cbre.com/valuation
CBRE Valuation & Advisory Services
CBRE
5921 Owensmouth Avenue
Woodland Hills, CA 91367
www.cbre.com/valuation
Date of Report: September 13, 2024
Mr. Joshua Dramitinos, RWA
Deputy Director, Economic Development
CITY OF SAN BERNARDINO
290 North D St
San Bernardino, California 92401
RE: Appraisal of: Palm Field Park/Antil Plant Site
North side of 6th Street, Between Cooley St and Pedley Rd San Bernardino, San Bernardino County, California
CBRE File No.: CB24US053175-1
Dear Mr. Dramitinos:
At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of the referenced property. Our analysis is presented in the following Appraisal Report.
The subject property is known as Palm Field Park, which is a 13.78-acre site (per client provided mapping) located on the north side of 6th Street, between Cooley Street and Pedley Road, in the city of San Bernardino. The property consists of all of APN 0278-181-20 and a portion of APN 0278-191-30. The property is also referred to as the Antil Plant site. The intended use of the appraisal is to assist in the transfer of the property from the San Bernardino Municipal Water District to the Economic Development Department, both City agencies.
Because the property is owned by a public agency and utilized as a park, it is zoned Public Park and Public Facilities. However, based on our conversations with City Planning staff, the site would likely be zoned Residential Medium (RM) if it were privately owned. Therefore, we have appraised the site under the extraordinary assumption that the site would be zoned RM if it were private owned. In addition, it is our understanding that there is a well on the property that will remain after the site is transferred. We have appraised the property net of the area for the well. Also, there are several pump boosters, buildings and mainlines to the south and southeast of the well area. We have been instructed to assume that these improvements have been removed and will not impact development of the site to its highest and best use.
Finally, there are existing easements on the property for pipeline purposes. We have been instructed to assume that the easements can be relocated to accommodate development.
Based on the analysis contained in the following report, the market value of the subject is concluded as follows:
CBRE VALUATION & ADVISORY SERVICES © 2024 CBRE, INC
Mr. Joshua Dramitinos, RWA
September 13, 2024
MARKET VALUE CONCLUSION
Appraisal Premise Interest Appraised Date of Value Value Conclusion Land Value Fee Simple Estate August 31, 2024 $2,650,000 Compiled by CBRE
This Appraisal Report is subject to Extraordinary Assumptions and/or Hypothetical Conditions; please refer to the Executive Summary section of this report for further discussion and analysis.
The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter.
The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), and the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute.
The intended use and user of our report are specifically identified in our report as agreed upon in our contract for services and/or reliance language found in the report. As a condition to being granted the status of an intended user, any intended user who has not entered into a written agreement with CBRE in connection with its use of our report agrees to be bound by the terms and conditions of the agreement between CBRE and the client who ordered the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to any non-intended users does not extend reliance to any such party, and CBRE will not be responsible for any unauthorized use of or reliance upon the report, its conclusions or contents (or any portion thereof).
It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us.
Respectfully submitted,
CBRE - VALUATION & ADVISORY SERVICES
Beth Finestone, MAI, AI-GRE, FRICS, CRE Jerardo Arciniega, MAI Title: VAS - Executive Vice President Title: VAS - Vice President Phone: (818) 251-3669 Phone: (818) 251-3667
Email: [email protected] Email: [email protected] License No. & State: AG 004030 CA License No. & State: AG042445 CA CBRE VALUATION & ADVISORY SERVICES © 2024 CBRE, INC
Certification
Certification
We certify to the best of our knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions.
3. We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved.
4. Beth Finestone, MAI, AI-GRE, FRICS, CRE and Jerardo Arciniega, MAI have not provided any services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three- year period immediately preceding the agreement to perform this assignment.
5. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
6. Our engagement in this assignment was not contingent upon developing or reporting predetermined results.
7. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Uniform Standards of Professional Appraisal Practice.
9. Jerardo Arciniega, MAI has made a personal inspection of the property that is the subject of this report. Beth Finestone, MAI, AI-GRE, FRICS, CRE has not made a personal inspection of the property that is the subject of this report.
10. No one provided significant real property appraisal assistance to the persons signing this certification.
11. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute.
12. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
13. As of the date of this report, Beth Finestone, MAI, AI-GRE, FRICS, CRE and Jerardo Arciniega, MAI have completed the continuing education program for Designated Members of the Appraisal Institute.
14. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the State of California.
Junk a
Beth Finestone, MAI, AI-GRE, FRICS, CRE Jerardo Arciniega, MAI Certified General AG 004030 CA Certified General AG042445 CA CBRE VALUATION & ADVISORY SERVICES © 2024 CBRE. INC
Subject Photographs & Maps
Subject Photographs & Maps
Modified Antil Plant Site and Easements
Antil Plant
ANTIL D WELL
ANTIL 6
WELL
Navigation Center
Legend
• Wets
Pump Boosters
CITY OF RIVERSIDE CITY OF RIVERSIDE -•- Future Pipeline - Canine
..- Centerines
Old Antil Plant (~13,78 Acre)
25 Easement (-53,886.56 Sq FD)
Modified Anti Plant (-10.585.61 Sa FI)
Aerial View
We have been asked to appraise the area outlined in purple, which consists of all of APN 0278-181-20 and a portion of APN 0278-191-30. Based on the client's request, our appraisal is based on the assumption that a lot split has already occurred and that the subject property consists of a legal lot. It is also our understanding that while the entire area outlined in purple will be transferred, the well site, outlined in red, will remain on the property. The site also has multiple easements for pipeline purposes, shown in yellow and blue above. Per the client's instructions, we have assumed the easements can be relocated to accommodate development, with the note that one of the easements must connect to the adjacent flood channel. Finally, they have asked that we assume that the improvements south of the well site have been removed.
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Subject Photographs & Maps
Aerial View
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Subject Photographs & Maps
Northeast view of the subject from the
Northeast view of the property.
southwest corner.
Northwest view of the subject, taken from the Northeast view of the subject, taken from the southeast corner of the property. southeast corner of the property.
North view along the west side of the Westerly view along the west side of the property. property.
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Subject Photographs & Maps
Southerly view along the west side of the Northwest view of the northwest corner of property. the property.
View of the well site. Southwest view of the building improvements.
Northwest view of the building improvements. Southwest view of the baseball field.
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Subject Photographs & Maps
Northerly view of the east side of the
East view of the baseball field improvements.
property.
Northeast view of the northeast corner of the North view of the northern portion of the property. property.
East view along 6th Street (subject at left). West view along 6* Street (subject at right).
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Executive Summary
Executive Summary
Property Name Palm Field Park
Location North side of 6th Street, Between Cooley St and Pedley Rd
San Bernardino, San Bernardino County, CA 92410
Parcel Numbers 0278-181-20, 0278-191-30 (portions of)
Client City of San Bernardino
Highest and Best Use
As If Vacant Residential development
As Improved N/A
Property Rights Appraised Fee Simple Estate
Date of Inspection August 31, 2024
Estimated Exposure Time 6 - 15 Months
Estimated Marketing Time 6 - 15 Months
Gross Land Area 13.78 AC 600,256 SF
Net Land Area 13.54 AC 589,670 SF
Zoning RM, Residential Medium
Buyer Profile Developer
VALUATION Total Per SF
Land Value $2,650,000 $4.49
CONCLUDED MARKET VALUE
Appraisal Premise Interest Appraised Date of Value Value Land Value Fee Simple Estate August 31, 2024 $2,650,000 Compiled by CBRE
Market Volatility
We draw your attention to a combination of inflationary pressures (leading to higher interest rates) and recent failures/stress in banking systems which have significantly increased the potential for constrained credit markets, negative capital value movements and enhanced volatility in property markets over the short-to-medium term.
Experience has shown that consumer and investor behavior can quickly change during periods of such heightened volatility. Lending or investment decisions should reflect this heightened level of volatility and the potential for deteriorating market conditions.
It is important to note that the conclusions set out in this report are valid as of the valuation date only.
Where appropriate, we recommend that the valuation is closely monitored, as we continue to track how markets respond to evolving events.
CBRE VALUATION & ADVISORY SERVICES vii © 2024 CBRE. INCI Executive Summary
Extraordinary Assumptions
An extraordinary assumption is defined as "an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions." 1
• We have been asked to appraise all of APN 0278-181-20 and a portion of APN 0278-191-30.
Based on the client's request, this appraisal is based on the assumption that a lot split has already taken place and that the subject property consists of a legal lot. • Because the property is owned by a public agency and utilized as a park, it is zoned Public Park and Public Facilities. However, based on our conversations with City Planning staff, the site would likely be zoned Residential Medium (RM) if it were privately owned. Therefore, we have appraised the site under the extraordinary assumption that the site would be zoned RM if it were privately owned.
• There are several pump boosters, buildings and mainlines to the south and southeast of the well area. We have been instructed to assume that these improvements have been removed and will not impact development of the site to its highest and best use. • There are existing easements on the property for pipeline purposes. We have been instructed to assume that the easements can be relocated to accommodate development. We note that one of the easements must connect to the adjacent flood channel. Our report is based on the extraordinary assumption that the easements can be relocated to accommodate a highest and best use development.
• The use of these extraordinary assumptions may have affected the assignment results.
Hypothetical Conditions
A hypothetical condition is defined as "a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results but is used for the purposes of analysis." 2
• None noted
Ownership and Property History
According to public records, the subject property is owned by the City of San Bernardino Water Works and the City of San Bernardino. CBRE is unaware of any arm's length ownership transfers of the property within three years of the date of appraisal. Further, the property is not reportedly being offered for sale as of the current date. However, we note that the purpose of this appraisal is to assist in the transfer of the site from the San Bernardino Municipal Water District to the City of San Bernardino Development Department at the appraised value.
Exposure/Marketing Time
Current appraisal guidelines require an estimate of a reasonable time period in which the subject could be brought to market and sold. This reasonable time frame can either be examined historically or prospectively. In a historical analysis, this is referred to as exposure time. Exposure time always precedes 1 The Appraisal Foundation, USPAP, 2024 Edition (Effective January 1, 2024) 2 The Appraisal Foundation, USPAP, 2024 Edition (Effective January 1, 2024) CBRE VALUATION & ADVISORY SERVICES viii © 2024 CBRE. INC Executive Summary
the date of value, with the underlying premise being the time a property would have been on the market prior to the date of value, such that it would sell at its appraised value as of the date of value. On a prospective basis, the term marketing time is most often used. The exposure/marketing time is a function of price, time, and use. It is not an isolated estimate of time alone. In consideration of these factors, we have analyzed the following:
exposure periods for comparable sales used in this appraisal; and exposure/marketing time information from the PwC Real Estate Investor Survey.
The following table presents the information derived from these sources.
EXPOSURE/MARKETING TIME DATA
Exposure/Mktg. (Months)
Investment Type Range Median Average
Comparable Sales Data 0.8 - 48.7 4.6 16.6
PWC Apartment (2nd Qtr. 2024)
National Data 3.0 - 15.0 6.3
CBRE Exposure Time Estimate 6 - 15 Months
CBRE Marketing Period Estimate 6 - 15 Months
Various Sources Compiled by CBRE
CBRE VALUATION & ADVISORY SERVICES ix © 2024 CBRE. INC
Table of Contents
Table of Contents
Certification... i
Subject Photographs & Maps.. ..... ii
Executive Summary ... .... vii
Table of Contents.. ....x
Scope of Work ...1
Area Analysis ..5
Neighborhood Analysis.... ....7
Site Analysis .... 10
Improvements Analysis... ... 15
Zoning. .... 19
Tax and Assessment Data.. ....21
Market Analysis. ..22
Highest and Best Use.... ...29
Land Value ... ...31
Reconciliation of Value .. ...38
Assumptions and Limiting Conditions ....39
ADDENDA
A Land Sale Data Sheets
B Subject Mapping
C Qualifications
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Scope of Work
Scope of Work
This Appraisal Report is intended to comply with the real property appraisal development and reporting requirements set forth under Standards Rule 1 and 2 of USPAP. The scope of the assignment relates to the extent and manner in which research is conducted, data is gathered, and analysis is applied.
Intended Use Of Report
The purpose of the appraisal is to estimate the market value of the property, as of the current date. The appraisal will be used for the transfer of the property from the San Bernardino Municipal Water District to the Economic Development Department. These are both entities of the City of San Bernardino (City).
Essentially, the asset will be transferred from one City entity to another, and our appraisal will set the internal transfer price. No other use is permitted.
Client
The client is the City of San Bernardino.
Intended User Of Report
This appraisal is to be used by the City of San Bernardino. No other user may rely on our report unless as specifically indicated in this report.
Intended users are those who an appraiser intends will use the appraisal or review report. In other words, appraisers acknowledge at the outset of the assignment that they are developing their expert opinions for the use of the intended users they identify. Although the client provides information about the parties who may be intended users, ultimately it is the appraiser who decides who they are. This is an important point to be clear about: The client does not tell the appraiser who the intended users will be. Rather, the client tells the appraiser who the client needs the report to be speaking to, and given that information, the appraiser identifies the intended user or users. It is important to identify intended users because an appraiser's primary responsibility regarding the use of the report's opinions and conclusions is to those users. Intended users are those parties to whom an appraiser is responsible for communicating the findings in a clear and understandable manner. They are the audience. 3
Reliance Language
Reliance on any reports produced by CBRE under this Agreement is extended solely to parties and entities expressly acknowledged in a signed writing by BRE as Intended Users of the respective reports, provided that any conditions to such acknowledgement required by CBRE or hereunder have been satisfied. Parties or entities other than Intended Users who obtain a copy of the report or any portion thereof (including Client if it is not named as an Intended User), whether as a result of its direct dissemination or by any other means, may not rely upon any opinions or conclusions contained in the report or such portions thereof, and CBRE will not be responsible for any unpermitted use of the report, its conclusions or contents or have any liability in connection therewith. 3 Appraisal Institute, The Appraisal of Real Estate, 15th ed. (Chicago: Appraisal Institute, 2020), 40.
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Scope of Work
Purpose of the Appraisal
The purpose of this appraisal is to develop an opinion of the market value of the subject property.
Definition of Value
The current economic definition of market value agreed upon by agencies that regulate federal financial institutions in the U.S. (and used herein) is as follows:
The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
1. buyer and seller are typically motivated;
2. both parties are well informed or well advised, and acting in what they consider their own best interests;
3. a reasonable time is allowed for exposure in the open market; payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and
5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 4 Interest Appraised
The value estimated represents Fee Simple Estate as defined below:
Fee Simple Estate - Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat. 5
Extent to Which the Property is Identified
The property is identified through the following sources:
Postal address
Assessor's records
• City provided mapping
Legal description
Extent to Which the Property is Inspected
Jerardo Arciniega, MAI inspected the subject, as well as its surrounding environs on the effective date of appraisal. This inspection was considered adequate and is the basis for our findings. Beth Finestone, MAI, AI-GRE, FRICS, CRE did not perform an inspection of the subject property. 4 12 CFR, Part 34, Subpart C-Appraisals, 34.42(h).
5 Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022), 73.
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Scope of Work
Type and Extent of the Data Researched
CBRE reviewed the following:
• Zoning requirements
• Flood zone status
• Demographics
• Comparable data
Type and Extent of Analysis Applied
CBRE, Inc. analyzed the data gathered through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. For vacant land, the sales comparison approach has been employed for this assignment.
Statement of Competency
The appraisers have the appropriate knowledge, education, and experience to complete this assignment competently.
Appraisal Methodology
In appraisal practice, an approach to value is included or omitted based on its applicability to the property type being valued and the quality and quantity of information available. Depending on a specific appraisal assignment, any of the following four methods may be used to determine the market value of the fee simple interest of land:
• Sales Comparison Approach;
• Income Capitalization Procedures;
• Allocation; and
• Extraction.
The following summaries of each method are paraphrased from the text.
The first is the sales comparison approach. This is a process of analyzing sales of similar, recently sold parcels in order to derive an indication of the most probable sales price (or value) of the property being appraised. The reliability of this approach is dependent upon (a) the availability of comparable sales data, (b) the verification of the sales data regarding size, price, terms of sale, among others, (c) the degree of comparability or extent of adjustment necessary for differences between the subject and the comparables, and (d) the absence of nontypical conditions affecting the sales price. This is the primary and most reliable method used to value land (if adequate data exists).
The income capitalization procedures include three methods: land residual technique, ground rent capitalization, and Subdivision Development Analysis. A discussion of each of these three techniques is presented in the following paragraphs.
The land residual method may be used to estimate land value when sales data on similar parcels of vacant land are lacking. This technique is based on the principle of balance and the related concept of contribution, which are concerned with equilibrium among the agents of production--i.e. labor, capital, coordination, and land. The land residual technique can be used to estimate land value when: 1) building value is known or can be accurately estimated, 2) stabilized, annual net operating income to the property is known or estimable, and 3) both CBRE VALUATION & ADVISORY SERVICES © 2024 CBRE. INCI
Scope of Work
building and land capitalization rates can be extracted from the market. Building value can be estimated for new or proposed buildings that represent the highest and best use of the property and have not yet incurred physical deterioration or functional obsolescence.
The subdivision development method is used to value land when subdivision and development represent the highest and best use of the appraised parcel. In this method, an appraiser determines the number and size of lots that can be created from the appraised land physically, legally, and economically. The value of the underlying land is then estimated through a discounted cash flow analysis with revenues based on the achievable sale price of the finished product and expenses based on all costs required to complete and sell the finished product.
The ground rent capitalization procedure is predicated upon the assumption that ground rents can be capitalized at an appropriate rate to indicate the market value of a site. Ground rent is paid for the right to use and occupy the land according to the terms of the ground lease; it corresponds to the value of the landowner's interest in the land. Market-derived capitalization rates are used to convert ground rent into market value. This procedure is useful when an analysis of comparable sales of leased land indicates a range of rents and reasonable support for capitalization rates can be obtained.
The allocation method is typically used when sales are so rare that the value cannot be estimated by direct comparison. This method is based on the principle of balance and the related concept of contribution, which affirm that there is a normal or typical ratio of land value to property value for specific categories of real estate in specific locations. This ratio is generally more reliable when the subject property includes relatively new improvements. The allocation method does not produce conclusive value indications, but it can be used to establish land value when the number of vacant land sales is inadequate.
The extraction method is a variant of the allocation method in which land value is extracted from the sale price of an improved property by deducting the contribution of the improvements, which is estimated from their depreciated costs. The remaining value represents the value of the land. Value indications derived in this way are generally unpersuasive because the assessment ratios may be unreliable and the extraction method does not reflect market considerations.
The sales comparison approach for land is utilized to develop an opinion of land value because market participants rely on this method. The other methodologies are used primarily when comparable land sales data is non-existent. Therefore, these approaches have not been used. The cost approach, sales comparison approach, and income approach for improved property are not applicable.
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Area Analysis
Area Analysis
Running
Springs
University
Village
210
San Bernal K Highland
Rialto
Fontana SBD
Colton
TO Mentone
Slover Mountain Redlands
Yucaipa
Calimesa
RUBIDOUX
Jurupa Valley Riverside
University of California
RAL
Moreno Valley (60)
The subject is located in San Bernardino County. Key information about the area is provided in the following tables.
Population
The area has a population of 2,215,776 and a AREA POPULATION BY AGE median age of 36, with the largest population
group in the 20-29 age range and the smallest
population in 80+ age range. !!!.
Population has increased by 180,577 since 2010, POPULATION BY YEAR reflecting an annual increase of 0.6%. Population 2,500,000 is projected to increase by 21,680 between 2024 2,000,000 2,215,776 2,237,456 2,035,199
and 2029, reflecting a 0.2% annual population 1,500,000 growth. 1,000,000
500,000
Source: ESRI 2010 2024 2029
Source: ESRI, downloaded on Aug, 28 2024
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Area Analysis
Income
The area features an average household income MEDIAN INCOME BY YEAR of $108,426 and a median household income of $100,000
$82,645. Over the next five years, median $94,809
$80,000 $82,645
household income is expected to increase by S60,000
14.7%, or $2,433 per annum. $40,000
$20,000
Source: ESRI 2024 2029
Education
A total of 24.9% of individuals over the age of 24 POPULATION BY DEGREE have a college degree, with 16.1% holding a
bachelor's degree and 8.7% holding a graduate • Bachelor's Degree degree.
• Graduate Degree
• Other
Source: ESRI
Employment
Health Care/Social Assistance
Retail Trade
Transportation/Warehousing
Educational Services
Construction
Manufacturing
Accommodation/Food Services
Public Administration
Prof/Scientific/Tech Services
Other Services (excl Publ Adm)
0% 2% 4% 6% 8% 10% 12% 14% 16%
Source: ESRI
The area includes a total of 973,983 employees. The top three industries within the area are Health Care/Social Assistance, Retail Trade and Transportation/Warehousing, which represent a combined total of 36% of the workforce.
Source: ESRI, downloaded on Aug 28, 2024; BLS.gov dated Jan 0, 1900 In summary, the area is forecasted to experience an increase in population and an increase in household income.
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Neighborhood Analysis
Neighborhood Analysis
E Pumalo St
Lincoln Dr Patton
Foothill Ewy Pattor
+ A
Saint Bernardine 210
Perris Hill
+ Medical Center
Community Hospital H St
of San Bernardino
§ Pacic st
San Bernardino Fwy 14th St
W 14th St
W 13th St N Mountain View Ave
Baseline St. E Baseline St Harlem Sprin
Warm Springs
W 11th St
W 10th St
E 9th St 9th St
W Union St W 8th St Sterling Ave Cypress St
NG St IS IN
W 7th St
6th St E 6th St E 6th St
San Bernardino W 5th St E 5th St -W 5th St
San Bernardino Fwy E 4th St
E 3rd St
E Rialto Ave
Walnut St San Bernardino
International Airport
Garden Park
Rana
Palme
Valley Gardens
Bunker Hill E Norman Rd
Marigold
O mapbox F Colton Victoria Almond Ave
Location
The subject is located in the city of San Bernardino within San Bernardino County. Adjacent communities include Highland and Redlands to the east, Loma Linda to the south, and Rialto and Colton to the west.
Boundaries
The neighborhood boundaries are detailed as follows:
North: Baseline Street
South: Rialto Avenue
East: Waterman Avenue
West: Del Rosa Drive
Land Use
Predominant land uses in the immediate vicinity of the subject primarily consist of a mixture of industrial and residential uses. There are industrial yards to the west and north. There are also new industrial CBRE VALUATION & ADVISORY SERVICES © 2024 CBRE. INC
Neighborhood Analysis
buildings along 6th Street, to the east of Pedley Road. Residential uses include a mobile home park immediately to the north, and single and multi-family residences to the southeast. There are also public uses in the area. The City of Riverside owns land to the south and west and utilize the sites for solar uses. There is also an elementary school on 5th Street, south of the subject property.
Access
Primary highway access to the area is via Interstate 215 (I-215) and State Route 210 (SR-210). I-215 is located approximately two miles west of the subject property. There are on and off-ramps along 5"h Street.
SR-210 is located approximately 2.5 miles north of the subject, with on and off-ramps located on Waterman Avenue. In addition, SR-210 is also located approximately four miles east of the subject.
The major arterial streets providing access in a north and south direction are Waterman Avenue, Tippecanoe Avenue, and Del Rosa Drive. The major arterial streets providing east and west access include Baseline Street, 9th Street, 5'h Street, 3r°, Street and Rialto Avenue. Overall, vehicular access is considered to be average.
Public transportation is provided by Omnitrans, which provides access to neighboring cities. The Omnitrans rapid bus system is called sbX. San Bernardino International Airport is located approximately
1.5 miles southeast of the subject property and the Ontario International Airport is approximately twenty miles southwest of the subject. Overall, the primary mode of transportation in the area is the automobile.
Demographics
Selected neighborhood demographics in 1-, 3- and 5-mile radius from the subject are shown in the following table:
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Neighborhood Analysis
SELECTED NEIGHBORHOOD DEMOGRAPHICS
North side of 6th Street, Between Cooley St and
Pedley Rd 1 Mile Radius 3 Mile Radius 5 Mile Radius San Bernardino San Bernardino, CA 92410 County
Population
2029 Total Population 18,621 143,015 331,341 2,237,456
2024 Total Population 18,275 142,680 330,276 2,215,776
2010 Total Population 18,585 136,334 310,825 2,035,199
2000 Total Population 15,309 121,948 280,940 1,709,445
Annual Growth 2024 - 2029 0.38% 0.05% 0.06% 0.19%
Annual Growth 2010 - 2024 -0.12% 0.33% 0.43% 0.61%
Annual Growth 2000 - 2010 1.96% 1.12% 1.02% 1.76%
Households
2029 Total Households 5,040 40,407 99,302 702,674
2024 Total Households 4,875 39,785 97,467 685,599
2010 Total Households 4,461 36,658 89,197 611,613
2000 Total Households 4,155 35,403 86,243 528,596
Annual Growth 2024 - 2029 0.67% 0.31% 0.37% 0.49%
Annual Growth 2010 - 2024 0.64% 0.59% 0.64% 0.82%
Annual Growth 2000 - 2010 0.71% 0.35% 0.34% 1.47%
Income
2024 Median Household Income $43,781 $52,607 $62,424 $82,645 2024 Average Household Income $63,888 $69,530 $82,963 $108,426 2024 Per Capita Income $17,346 $19,440 $24,472 $33,638
2024 Pop 25+ College Graduates 621 7,758 33,787 362,489 Age 25+ Percent College Graduates - 2024 5.7% 9.0% 16.2% 24.9% Source: ESRI
Conclusion
The subject property is located within an established area characterized by industrial and residential uses. The property has good access to major streets and the freeway system. Economic and demographic factors point toward a slightly increasing population and median income. In addition, there have been interest rate increases and inflation concerns. However, it appears that the Federal Reserve has stopped increasing interest rates and are considering interest rate cuts in the near future, as the inflation rate has started moving towards their 2.00% per year goal.
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Site Analysis
Site Analysis
The following chart summarizes the salient characteristics of the subject site.
SITE SUMMARY AND ANALYSIS
Physical Description
Gross Site Area 13.78 Acres 600,256 Sq. Ft.
Net Site Area 13.54 Acres 589,670 Sq. Ft.
Primary Road Frontage 6th St 575 Feet
Excess Land Area None
Surplus Land Area None
Shape Irregular
Topography Generally Level
Parcel Numbers 0278-181-20, 0278-191-30 (portions of)
Actual Zoning District Public Park and Public Facilities Assumed Zoning District RM, Residential Medium
Flood Map Panel No. & Date 06071C7571J 2-Sep-16
Flood Zone Zone X (Unshaded)
Adjacent Land Uses Industrial and residential
Comparative Analysis Rating
Visibility Good
Functional Utility Average
Traffic Volume Average
Adequacy of Utilities Average
Landscaping Average
Drainage Average
Utilities Availability
Water Yes
Sewer Yes
Natural Gas Yes
Electricity Yes
Telephone/Cable/Internet Yes
Mass Transit Yes
Other Yes No Unknown
Detrimental Easements
Encroachments X
Deed Restrictions X
Reciprocal Parking Rights X
Various sources compiled by CBRE
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Site Analysis
Location
The subject is on the north side of 6th Street, between Cooley Street and Pedley Road.
LAND AREA
The client provided the following mapping for the subject property.
Modified Antil Plant Site and Easements
Antil Plant
ANTIL 5 WELL
ANTIL 6
WELL
UNNAMED ACRO
Navigation Center
6TH ST
Legend
® wallel
Pump Boosters
CITY OF RIVERSIDE CITY OF RIVERSIDE Future Pipeline
• Mainline
- Centerlines
Old Antil Plant (-13.78 Acre)
25 Easement (~53,886.56 Sq Ft)
Modified Antil Plant (-10.585.61 Sq Ft)
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Site Analysis
The client requested that the area outlined in purple be appraised as a stand-alone parcel. The subject property consists of APN 0278-181-20 and a portion of APN 0278-191-30. Based on the client's request, this appraisal is based on the assumption that a lot split has already taken place and that the subject property consists of a legal lot.
The client provided mapping indicates that the gross land area for the subject property is 13.78 acres.
Although the entire area is to be transferred, the well (the area outlined in red) will remain on the property and this area will not be developable. As a result, we have netted this area out from the gross land area.
The client provided mapping indicates the well area is approximately 10,586 square feet. This results in a net land area of 13.54 acres.
The previous map also shows multiple easements for pipeline purposes. The client has asked that we assume that the easements can be relocated on the property to accommodate development. We note that the easement that connects to the adjacent flood channel to the northwest can be relocated but must remain connected to the flood channel.
SHAPE AND FRONTAGE
The site is slightly irregular in shape. It is generally L-shaped, but slightly irregular due to a flood channel on the northwestern portion of the site. However, the fact that the well site must remain, results in an irregular useable land area as the near center of the property is not useable. The site has a significant amount of frontage, with approximately 575 feet of frontage along 6t Street.
Ingress/Egress
Ingress and egress are available to the site three curb cuts along 6th Street. 6th Street is aligned in an east/west direction and has a dedicated width which varies from 82.50 to 88 feet at the subject location. It provides for one lane of traffic in each direction. The north side of the street is improved with concrete curbs. Portions of the north side of the street also include concrete sidewalks. The south side of the street has a paved shoulder, but no other street improvements. Curbside parking is not allowed on either side of the street.
TOPOGRAPHY AND DRAINAGE
The site is generally level and at street grade. The topography of the site is not seen as an impediment to the development of the property. During our inspection of the site, we observed no drainage problems and assume that none exist.
SOILS
A soils analysis for the site has not been provided for the preparation of this appraisal. In the absence of a soils report, it is a specific assumption that the site has adequate soils to support the highest and best use.
Easements and Encroachments
We were not provided with a title report for the subject property. However, we were provided with the map shown in the Land Area section of this report. The following is a portion of the map.
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Site Analysis
Antil Plant
ANTIL 6
WELL
The areas shown in yellow are easements for pipelines. The client has asked that we assume the easements can be relocated to accommodate development. We note that the easement that is aligned in northwest/southeast direction and ends at the flood channel to the northwest can be relocated but must connect to the flood channel. Because of the client's instruction to assume that the easements can be relocated to accommodate development, these easements are not considered to affect the marketability or highest and best use of the subject property. However, the client has indicated that the well site will remain on the property and will not be developable land. We have therefore netted this area out from the gross land area. The well area essentially cuts a hole near the center of the property. Therefore, in our CBRE VALUATION & ADVISORY SERVICES 13 © 2024 CBRE. INCI Site Analysis
valuation of the subject property, we have considered that net land area has a highly irregular shape due to the well easement.
It is recommended that the client/reader obtain a current title policy outlining all easements and encroachments on the property, if any, prior to making a business decision.
Covenants, Conditions and Restrictions
There are no other known covenants, conditions or restrictions impacting the site that are considered to affect the marketability or highest and best use. It is recommended that the client/reader obtain a copy of the current covenants, conditions and restrictions, if any, prior to making a business decision.
UTILITIES AND SERVICES
The site includes all utility and municipal services, including police, fire and refuse garbage collection. All utilities are available to the site in adequate quality and quantity to service the highest and best use.
Environmental Issues
Although CBRE was not provided an Environmental Site Assessment (ESA), a tour of the site did not reveal any obvious issues regarding environmental contamination or adverse conditions. The appraiser is not qualified to detect the existence of potentially hazardous material or underground storage tanks which may be present on or near the site. The existence of hazardous materials or underground storage tanks may affect the value of the property. For this appraisal, CBRE, Inc. has specifically assumed that the property is not affected by any hazardous materials that may be present on or near the property.
Conclusion
The site is well located and afforded average access and good visibility from its roadway frontage. The size of the property is larger than typical sites in the area. There are no known detrimental uses in the immediate vicinity. Overall, there are no known factors which are considered to prevent the site from development to its highest and best use, as if vacant, or adverse to the existing use of the site. The property is large enough to support a significant development. However, we note that the well area is near the center of the property and the useable land area is highly irregular in shape because this area is not useable. Any development would need to be constructed around the well area.
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Improvements Analysis
Improvements Analysis
The subject property includes two buildings, south of the well site as well as pump boosters and several pipelines. The property also includes site improvements including a baseball field. We have been instructed to assume these improvements have been removed and will not impact the development of the site to its highest and best use. Therefore, an improvement analysis is not applicable.
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Improvements Analysis © 2024 CBRE. INC
IF AD VALOREN TARATION OSE Ptn. Rancho San Bernardino Sin enorind Unidino 0278 - 18 AD VALOREN TATATION OKLY.
M.B. 7/2
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7007,107024,107137
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Ptn. Lot 15 1.3 AC. 133
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Plat Map - APN 0278-181-20
0147 29 TEVISED
Assessor's Map 34/08/10 50
CBRE VALUATION & ADVISORY SERVICES
Ps. 13. So. 2 Book 0278 Page
August 2004 San Bernardinc County
Improvements Analysis
Plat Map - APN 0278-191-30 (Portion)
THIS MAP IS DA THE PURPOSE Ptn. Rancho San Bernardino San Bernarding Uniting 0278-19 DE AS VALOREN TAXATIEN BYET.
M.B. 7/2 Tax Rate
7000,7007,7034
7095,7232,7184
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Pin. Lot 5
PRECANOE 22
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0279 0279 0279
04 07 10
3pE630 S 6. 3442. P.K 34/60 Ps. 1/2. Sec. 2 A5060278 M on Bernardino count 11048 August 2004 Jackson Sober on.
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Improvements Analysis
Flood Plain Map
AREA WITH REDUCED FI
Zone AE RISK DUE TO LEVEE
Zone X
TOP STUDI
Zone Al
City of San
Bernardino.
060281 Zone A
06071686813
anto dino County
jeff. 9/2/2016 eff: 9/2/201 orated Areas City of
Highland
060232-
Zone AB
BRIDGE
Date refreshed June 2024 Powered by Esri
Witnout Base Flood Elevation (BFE) 202 Cross Sections with 1% Annual Chance SPECIAL FLOOD with BFE of Depth Water Surface Elevation
HAZARD AREAS
Base Flood Elevation Line (FE)
Selected FloodMap Boundar
0. Annesi Chance Hood Matare Area
Digital Data Avalable of 1% annual chance flood with average acancas than one took or with crainarc
areas of lets than one square mile Zame A OTHER
MAP PANELS FEATURES Hydrographic Feature
Chance Flood Hazard Zive 4
Area with Reduced Flood Risk due to GENERAL Channel Culvert, or Stor Sewer OTHER AREAS OF Levce. See Notes, cane3 STRUCTURES I11* Levee. Dike, or Floodwat FLOOD HAZARD Ares with Flood Risk due to Levee zue o
7 othervise Protected Area
OTHER AREAS coastal Barrier Resourse System Area
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Zoning
Zoning
The following map shows the subject's actual zoning.
industrial Industrial
Light PEDLEY RD Light
hborhood RM
i formation
Resident al Public
Suburban Facilities
Public
Park
COUNTY
6TH 6TH ST
LL
V E
Residential
Marlium
As shown, the subject property is zoned Public Park and Public Facilities. These zoning designations are special purpose zones that are only for public facilities like the subject property. If the subject were sold in the private sector, it would not have these zoning designations. The surroundings include a mixture of residential and industrial zoning designations. In addition, portions of the surroundings are within unincorporated San Bernardino County and also include industrial and residential zoning designations.
Travis Martin, Principal Planner, with the City of San Bernardino, indicated that the most likely zoning designation for the subject property (if it were to sell in the open market) would be Residential Medium, which is the zoning designation immediately to both the north and south of the subject property. We have therefore appraised the subject land as if it were zoned RM, Residential Medium, which allows residential uses up to a density of twelve units per acre. The following table summarizes the zoning requirements for the RM zone designation.
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Zoning
ZONING SUMMARY
Current Zoning RM, Residential Medium
Legally Conforming Yes
Uses Permitted Community care facilities, existing multifamily dwellings, and accessory dwelling units.
Multifamily dwellings, condominium
townhouses and mobile home parks are
allowed with a development permit.
Zoning Change Not likely
Category Zoning Requirement
Minimum Lot Size 14,400 Sq. Ft.
Minimum Lot Width 60 Feet
Maximum Height 3 stories and 42 feet
Minimum Setbacks
Front Yard 25 Feet
Interior Side Yard 5 feet plus 1 foor for each 15 feet of wall length Rear Yard 10 Feet
Maximum Bldg. Coverage 50%
Maximum FAR/Density 12 units per acre
Parking Requirements Apartments: 1 space for every studio, 1.5 covered spaces for 1 bedroom units, 2 covered
spaces for every 2 bedroom unit, and 2.5
spaces for every 3-bedroom or more unit, plus
an additional uncovered guest space for every
5 units; 2 garage spaces for every single-family
residence, condominium ot townhouse.
Source: San Bernardino County Planning and Zoning Dept.
Analysis and Conclusion
The subject property has an assumed zoning designation of RM, which allows 12 units per acre. Because the definition of market value assumes a sale of the subject on our date of value, it is important to ascertain the most likely zoning for the subject if it were to sell. The subject size is large enough to support development of a residential project. Our sale comparable show that at this density, developers primarily opt to construct townhouses. The subject property has a net site area of 13.54 acres, which results in a maximum of 162 units. Based on the densities of our comparable sales, this density appears to be achievable on the subject property. As noted, the existing well will remain. However, a residential development of a similar size to what is achievable on the subject property, typically contains multiple buildings, and amenities such as a pool, clubhouse, or outdoor play areas. In our opinion, a residential development could be accommodated on the subject property with the well in place. In addition, we have been asked to assume that the existing easements can be relocated to accommodate development.
Additional information may be obtained from the appropriate governmental authority. For purposes of this appraisal, CBRE has assumed the information obtained is correct.
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Tax and Assessment Data
Tax and Assessment Data
Real estate tax assessments are administered by the Assessor of San Bernardino County and are estimated by jurisdiction on a county basis for the subject. The property is subject to the property tax rules of the State of California, which control the activities and policies of local assessment jurisdictions. These laws were significantly modified on June 7, 1978, when the State's voters passed Proposition 13, amending Article XIII of the State Constitution.
Proposition 13 abolished the practice of periodic reassessment of properties based on market value appraisals. Instead, real property is subject to reassessment (i.e., revaluation at full or partial current market value) only when changes in ownership or new construction take place. Otherwise, increases in assessed value are limited to a general rate of 2%, plus the rates needed to service any bonded indebtedness. Special assessments can also be added, and are often related to the installation of infrastructure. Generally speaking, property taxes in San Bernardino County tend to range from 1.1% to
1.4% of a property's assessed value. Due to California's tax laws, most properties within Los Angeles County have very similar effective tax rates.
The subject is owned by the City of San Bernardino Water Works and the City of San Bernardino and therefore is not subject to real estate taxes. It is located in Tax Rate Areas 7007 and 7232 which carry a 2023/2024 tax rate of 1.2628%. Real estate taxes would be adjusted upon sale of the subject property.
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Market Analysis
Market Analysis
Based on the information provided by Travis Martin, the Principal Planner with the City of San Bernardino and the surrounding zoning, we have assumed the subject has a Residential Medium zoning designation, which allows multifamily developments, mobile home parks, townhouses, and condominiums. As such, we have, included an overview of the apartment market in the subject area. The following data is for the improved multifamily market. This is included as the multifamily land market generally follows similar trends to the improved multifamily market. The subject is in the San Bernardino submarket of the Inland Empire market.
Submarket Snapshot
The following table summarizes the supply of apartment units for each submarket within the Inland Empire - CA USA market as of 2nd Quarter 2024.
SUBMARKET SNAPSHOT
Inventory Completions* Asking Rent ($/Unit / Mo.) Occupancy Submarket
(Units) (Units)
Cucamonga 41,937 1,551 $2,443 92.7%
Outlying Riverside County 1,085 $1,018 92.1%
Outlying San Bernardino County 13,317 12 $1,384 92.6%
Palm Springs 14,768 138 $1,710 95.0%
Riverside/Corona 40,649 56 $2,095 94.4%
San Bernardino 41,760 799 $1,786 94.7%
San Jacinto 9,229 107 $1,819 94.3%
County/Temecula 12,940 663 $2,376 90.9%
Completions include trailing 4 quarters
Source: Costar, 2nd Quarter 2024
San Bernardino Submarket
Important characteristics of the San Bernardino apartment market are summarized below:
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Market Analysis
SAN BERNARDINO APARTMENT SUBMARKET
Year Ending antony outions Occupied Stock Occupancy Asking Rent Asking Rent Net Absorption (Units) (Units) ($/Unit / Mo.) Change (Units)
2014 38,988 37,164 95.3% $1,024 3.28% 201
2015 39,294 306 37,758 96.1% $1,103 7.75% 594
2016 39,293 - 1 37,833 96.3% $1,171 6.14% 75
2017 39,336 43 37,823 96.2% $1,243 6.11% -10
2018 39,488 152 37,883 95.9% $1,307 5.17% 60
2019 40,150 662 37,964 94.6% $1,381 5.67% 80
2020 40,150 39,227 97.7% $1,478 6.99% 1,264
2021 40,470 320 39,520 97.7% $1,638 10.84% 293
2022 40,575 105 39,188 96.6% $1,728 5.50% -333
Q1 2023 40,609 34 39,025 96.1% $1,746 1.06% -163
Q2 2023 40,961 352 38,967 95.1% $1,759 0.72% -58
Q3 2023 41,218 257 38,863 94.3% $1,745 -0.78% -104
Q4 2023 41,346 128 38,974 94.3% $1,739 -0.36%
one on on enem
2023 41,346 771 4.39 $1,739 0.63% 214 -214.
35,134-
Q1 2024 41,554 208 94.3% $1,759 1.14% 214
Q2 2024 41,760 206 39,536 94.7% $1,786 1.54% 348
Q3 2024* 41,761 1 39,679 95.0% $1,784 -0.11% 142
- Q4 2024" 42,181 420 39,849 94.5% $1,793 0.50%. 170
2024* 42,181 835 39,849 94.5% $1,793 3.09% 874
2025* 42,820 639 40,591 94.8% $1,888 5.31% 743
2026* 42,947 127 40,990 95.4% $1,981 4.91% 399
2027* 43,197 250 41,325 95.7% $2,059 3.98% 336
2028* 43,569 372 41,732 95,8% $2,133 3.57% 406
2029* 43,972 403 42,119 95.8% $2,194 2.87% 386
*Future Projected Data according to Costar
Source: Costar, 2nd Quarter 2024
The San Bernardino apartment submarket consists of approximately 41,760 units of apartment space.
The current submarket inventory represents approximately 23.8% of the overall market inventory. The following observations were noted from the table above:
• As of 2nd Quarter 2024, there were approximately 39,536 units of occupied apartment space, resulting in an occupancy rate of 94.7% for the submarket. This reflects an increase from the previous quarter's occupancy of 94.3%, and a small increase from an occupancy rate of 94.3% from last year. The submarket occupancy is above the 93.7% market occupancy. • The submarket experienced positive 348 units of net absorption for the 2nd quarter 2024. This indicates an improvement from the previous quarter's positive 214 units of net absorption, and an improvement from the negative 214 units of net absorption from a year ago. Overall, the submarket has experienced positive 562 units of net absorption for the current year-to-date period.
• The submarket had completions of positive 206 units for the 2nd quarter 2024, which indicates a decrease from the previous quarter's completions of positive 208 units, and a decrease from the completions of positive 352 units from last year.
• The submarket achieved average asking rent of $1,786 per unit, which indicates an increase from the previous quarter's asking rent of $1,759 per unit, and an increase from the asking rent of $1,739 per unit from last year. The submarket's current asking rent of $1,786 per unit is below the overall market asking rent of $2,046 per unit.
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Market Analysis
Historical Inventory - Submarket
INVENTORY: SAN BERNARDINO APARTMENT MARKET
200,000
183,721 185,142 187,243 189,517
177,267 180,797
180,000 171,500 174,626
166,584 168,411 169,313
160,457 161,548 163,912
158,259 159,627
160,000
140,000
120,000
100,000
80,000
60,000
40,470 40,575 41,346 42.181 42,820 42,947 43,197 43,569 43,972 38,988 39,294 39,293 39,336 39,488 40,150 40,150
40,000
20,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024- 2025* 2026* 2027* 2028* 2029* Market -- Submarket
* Future Projected Data according to Costar
Source: Costar, 2nd Quarter 2024
Submarket Inventory is projected to be 42,181 units at the end of the current year, which represents a small increase from the previous year's submarket inventory of 41,346 units. Inventory for next year is projected to be 42,820 units, reflecting a small increase from the current year.
Historical Occupancy - Submarket
OCCUPANCY: SAN BERNARDINO APARTMENT MARKET
99.0%
97,7% 97.7%
98.0%
97.0% 96.6%
96.1% 96.3% 96.2%
95.9% 95.8% 95.8%
96.0% 95.7%
95.3% 95.4%
94.8%
95.0% 94.5%
14.3%
94.0%
97.3% 97.3%
93.0%
95.43 95.794 95.65
547N 96 18 95 DRE 54.75 (947%
54.5%
92.0% 93.5% 94.1%
- 93.8%
9315
91.0%
90.0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024~ 2025 2026* 2027* 2028- 2020% I Marker -O-Submarker
*Future Projected Data according to Costar
Source: Costar, 2nd Quarter 2024
Submarket occupancy is projected to be 94.5% at the end of the current year, which represents a small increase from the previous year's submarket occupancy of 94.3%. Submarket occupancy for next year is projected to be 94.8%, reflecting an increase from the current year.
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Market Analysis
Historical Net Absorption - Submarket
NET ABSORPTION: SAN BERNARDINO APARTMENT MARKET
7,000
6,332
6,000
5,000
4,000 3,668 3,545
3,232 3,162
3,000 2.443
2,277 2,201 2,138
2,000 1,516 1,692
1,273 1,264
853 895 874 743
1,000 594
399 336 406 388
202 60 80
-10
-333 -214
2014 2015 2016 2017 2018 2019 2020 2021 2024" 2025* 20267 2027* 2028* 2029* -351
-1,000
-2,000
-1,929
3,000
Market --Submarket
* Future Projected Data according to Costar
Source: Costar, 2nd Quarter 2024
Net absorption in the submarket is projected to be positive 874 units at the end of the current year, reflecting an improvement from the previous year's net absorption of negative 214 units. Net absorption for next year is projected to be positive 743 units, indicating a decline from the current year.
Historical Completions - Submarket
COMPLETIONS: SAN BERNARDINO APARTMENT MARKET
4,000
3,530
3,500
3,126
2,908 2,924
3,000
2,672 2,641
2,500 2,364
2,187 2,274
2,101
2,000 1,827
1,421
1,500
1,091
1,000 830 902 835
562 771
639
372 403
500 320 250
152 105 127
-1 43
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 20247 2025* 2026* 2027~ 20287 2029- -500
Market --Submarket
* Future Projected Data according to Costar
Source: Costar, 2nd Quarter 2024
The submarket is projected to achieve completions of positive 835 units at the end of the current year, which indicates an improvement from the previous year's completions of positive 771 units. The submarket is projecting completions of positive 639 units for next year, which indicates a decline from the current year.
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Historical Asking Rent - Submarket
ASKING RENT: SAN BERNARDINO APARTMENT MARKET
$3,000
$2,500
$2,194
$2,133
$2,059
S1,981
$2,000 $1,888
51,789 $1,793
51,728
S1,638
$1,478
$1,500 $1,381
S1307
51,243
S3,273
51,103 52,439 $2,507
$1,024 51,269 52,357
52,164
$1,000 51,995 51998 52,056
51,931
$1,570 $1,692
51 441 S1507
51,228 $1,802 $1,375
$500
50 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024* 2029 * Future Projected Data according to Costar
Source: Costar, 2nd Quarter 2024
The submarket is projected to achieve average asking of $1,793 per unit at the end of the current year, which represents an increase from the previous year's asking rent of $1,739 per unit. The submarket is projected to achieve average asking rent of $1,888 per unit, reflecting an increase from the current year.
Sale Trends
We searched CoStar for apartment building sales and for land sales within a 25-mile radius of the subject property. We compared the median price per square foot over the various years. The following table shows CoStar's data.
SALE TRENDS - IMPROVED MULTIFAMILY SALES
Year # of Sales Median Price PSF % Change Average Cap Rate 2021 164 $238.21 4.60%
2022 122 $262.26 10.10% 4.61%
2023 56 $279.42 6.54% 4.76%
8/30/2024 43 $249.74 -10.62% 5.17%
Year # of Sales Median Price Per Unit % Change Average Cap Rate 2021 164 $192,500 4.60%
2022 122 $212,333 10.30% 4.61%
2023 56 $233,333 9.89% 4.76%
8/30/2024 43 $200,000 -14.29% 5.17%
Compiled by CBRE
We analyzed the data on both a price per square foot and price per unit basis, with both showing similar trends. The price per square foot and price per unit data both show an approximately 10% increase in price levels between 2021 and 2022. The data varies slightly in 2023, but shows a small range of an approximately 6.5% to 10 percent increase. Finally, both show a decline in price levels in 2024, ranging CBRE VALUATION & ADVISORY SERVICES 26 © 2024 CBRE. INC
Market Analysis
from approximately 10% to 14%. The above data also shows capitalization rates increasing slightly in 2023, with a larger increase of approximately 40 basis points in 2024. The increase in capitalization rates have put downward pressure on improved price levels.
Single-Family Market Analysis
In addition to multifamily residences, the assumed subject zoning allows townhouses and single-family residences. Because of the allowed density, the majority of our sale comparables are being developed with townhouses.
Townhouse Sale Trends
The health of the housing industry and demand are generally tied to the health of the economy. While the COVID-19 pandemic caused a great deal of uncertainty in the economy, housing was not adversely impacted the way other sectors of the economy were impacted. The fact that work-from-home has become an accepted reality has somewhat lessened the impact of location as being the most important factor in home purchases. Pricing of single-family residences continued to increase throughout the pandemic. Inventory has been low over the past few years. Interest rates were historically low at the end of the 2021 year. However, the Federal Reserve increased rates in 2022 and 2023 in an effort to combat inflation.
The following information was compiled by utilizing the Multiple Listing Service (MLS). The following table shows trends in townhouse sale prices within the same twenty five-mile radius utilized within the multifamily sale trends.
SALE TRENDS - TOWNHOUSE SALES
Year # of Sales Median Price PSF % Change
2021 553 $306
2022 382 $361 17.97%
2023 314 $372 3.05%
8/30/2024 227 $385 3.49%
Year # of Sales Median Price % Change
2021 553 $439,500
2022 382 $511,950 16.48%
2023 314 $525,000 2.55%
8/30/2024 227 $550,000 4.76%
Source: MLS, Compiled by CBRE
We analyzed townhouse sale prices on both a price per square foot and overall price basis. The above data shows prices increased significantly between 2011 and 2022. However, as interest rates were increased, sale price movement slowed to approximately 2.5% to 3% between 2023 and 2024. Similar price appreciation has occurred in 2024. Based on our sale comparables, there is on-going construction of townhouses, as prices have continued to rise.
CBRE VALUATION & ADVISORY SERVICES 27 © 2024 CBRE, INC
Market Analysis
Construction Costs
The preceding data relates to the improved multifamily and townhouse market. To gain an understanding of the residential land market we researched construction costs trends. Construction costs impact land value if their growth rate is substantially different than growth rates for improved properties.
The following table shows the California Construction Cost Index (CCCI) as reported by the State of California Department of General Services (DGS). The data includes costs for properties within the cites of San Francisco and Los Angeles only. However, the general trend shown is generally reflective of construction costs within the subject market area.
CALIFORNIA CONSTRUCTION COST INDEX
2021 2022 2023 2024
August 8,122 8,729 9,560 9,749
% Change From Prior Year 7.47% 9.52% 1.98%
Source: California Department of General Services
As shown on the preceding data, construction costs have increased significantly between August 2021 and August 2023. The rate of increase in construction costs was similar to the rate of increase in multifamily price levels. As a result, land prices would be expected to be relatively stable during this period. Construction costs increased approximately two percent over the last year, while improved multifamily prices declined.
Conclusion
The multifamily rental market has shown increasing rental rates over the last several years. Occupancy decreased in 2023 as there was a significant amount of new construction. Occupancy has improved in 2024 and CoStar forecasts the occupancy rate to stabilize in 2025. However, the market for multifamily sales has shown a decline in price levels over the last year, as increased interest rates and increasing capitalization rates have both put downward pressure on sale prices. Price levels for townhouses in the market have continued to increase in the last two years, but at significantly lower levels than prior years.
Brokers reported that land prices have declined in 2024, which is consistent with the trend in improved multifamily price levels and rising construction costs. Overall, we expect the single-family/townhouse market to continue to improve slightly, while the market for multifamily and residential land continues to decline slightly.
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Highest and Best Use
Highest and Best Use
In appraisal practice, the concept of highest and best use represents the premise upon which value is based. The four criteria the highest and best use must meet are:
legally permissible;
physically possible;
financially feasible; and
maximally productive.
The highest and best use analysis of the subject is discussed below.
As Vacant
Legal Permissibility
The legally permissible uses were discussed in the Site Analysis and Zoning Sections.
Physical Possibility
The subject is adequately served by utilities, and has an adequate shape and size, sufficient access, and other necessary attributes, to be a separately developable site. There are no known physical reasons why the subject site would not support any legally probable development (i.e. it appears adequate for development). Existing structures on similar sites provides additional evidence for the physical possibility of development.
Financial Feasibility
Potential uses of the site include multifamily development, mobile home parks, townhouses, condominiums, and single-family uses. The determination of financial feasibility is dependent primarily on the relationship of supply and demand for the legally probable land uses versus the cost to create the uses. With respect to the legal uses for the subject site, the local multifamily market has shown increasing rental rates and occupancy over the past several years. Development of new multifamily, townhouses, and single-family residence properties has occurred in the recent past and continues to this day. As indicated in the market analysis section of this report, 771 new multifamily units were constructed in 2023 and an additional 835 units are projected to be completed this year. CoStar projects construction to continue into 2025, as they project an additional 639 units to be completed in 2025. There has also been townhouse and multifamily development in the subject market. However, we note that improved multifamily sale prices have declined in 2024.
Our sale comparables include sites which were purchased for single-family development, for sale townhouses, for lease townhouses, and mobile home parks. As shown in the Market Analysis, price levels for single-family uses such as townhouses have continued to increase. Based on the market evidence, development of the subject property with a residential project is financially feasible. The subject property has a maximum density of 12 units per acre. Based on our sale comparables and broker interviews, given this density, developers would construct either a for sale or for lease townhouse project.
Maximum Productivity - Conclusion
The final test of highest and best use of the site as if vacant is that the use be maximally productive, yielding the highest return to the land.
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Highest and Best Use
Based on the information presented above and upon information contained in the market and neighborhood analysis, we conclude that the highest and best use of the subject as if vacant would be the development of a townhouse project. More specifically, the subject would be developed at a density of 12 units per acre, which is typical of similar projects in this market. Our analysis of the subject and its respective market characteristics indicate the most likely buyer, as if vacant, would be a developer.
As Improved
We have been asked to assume that the existing improvements have been removed, with the exception of the well site which has been netted out of our useable site area. Therefore, a highest and best use analysis as improved is not applicable.
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Land Value
Land Value
The following map and table summarize the comparable data used in the valuation of the subject site. A detailed description of each transaction is included in the addenda.
University
Village
6 40th St
Muscoy
Cajon Blvd
259) 210
Foothill Fwy California Patton
D St Pacific St
N Acacia Ave Warm Springs
E 9th St
hland
5th St E 6th St
Rialto San Bernardir.
Foothill Fwy
San Bernardino
Garden Park International Airport
Locust Ave Orange St +
KRE
W C St Colton Nevada St Texas St
Bloomington Ment
West Colton Church St
E Colton Av
MSt
Redlands E Citrus Ave
Loma Linda
Riverside Froy Bryn Mawr 5th Av
7th St
Grand Terrace Redlands
Heights
Crestmore Pico St
A
Blue Mountain
Highgres
Belltown
© mapbox Pomon
CBRE VALUATION & ADVISORY SERVICES 31 © 2024 CBRE. INC
Land Value
SUMMARY OF COMPARABLE LAND SALES
Transaction Interest Zoning Actual Sale Size Size Price No. Property Location Type Date Transferred Proposed Use Proposed Density Price (Acres) (SF) Per SF 1 Linden Avenue Sale Jan-24 Fee 181-unit townhouse RS-20M/RM $1,750,000 11.25 490,050 $3.57 10719 Linden Avenue Simple/Freehold development 14.37
Bloomington, CA 92316
2 Piedmont Park Estates Sale Dec-23 Fee 51-unit mobile RM $2,800,000 6.79 295,772 $9.47 Piedmont Drive Simple/Freehold home park 7.51
San Bernardino, CA 92346
3 Residential Land Sale Jul-23 Fee 357 unit MU $5,996,500 27.15 1,182,654 $5.07 19485 Spring Street Simple/Freehold development 13.15
Riverside (unincorporated Riverside
County), CA 92507
4 Greenspot Village St - PA 3 Sale Dec-22 Fee 272 For Lease PD $6,000,000 12.53 545,807 $10.99 7820-7822 Boulder Avenue Simple/Freehold Townhouses 21.71 Highland, CA 92346
5 95 SFR lot development Sale Dec-22 Fee 95 SFR CG-1 $2,925,000 10.10 439,956 $6.65 1795 W Highland Ave Simple/Freehold development 9.41
San Bernardino, CA 92411
6 4009-4015 Newmark Ave Sale May-22 Fee MFR Development RM $365,000 1.51 65,971 $5.53 4009-4015 Newmark Ave Simple/Freehold 20.0
San Bernardino, CA 92407
7 South side of Lynwood Dr, Betweer Sale Jan-22 Fee Multifamily RH $225,000 1.14 49,658 $4.53 Golden Ave & Mountain Ave Simple/Freehold development 35.0 South side of Lynwood Dr, Between
Golden Ave & Mountain Ave
Subject North side of 6th Street, Between - Residential RM - 13.54 589,670 - Cooley St and Pedley Rd development 12.0
San Bernardino, CA 92410
Adjusted sale price for cash equivalency and/or development costs (where applicable) Compiled by CBRE
CBRE VALUATION & ADVISORY SERVICES 32 © 2024 CBRE, INC
Land Value
The sales utilized represent the best data available for comparison with the subject and were selected from the greater San Bernardino area within a 15-mile radius of the subject. We searched for sales which were at least five acres in size. However, we also included two local sales which were over an acre in size. We searched for sales which occurred from January 2022 to the present. Finally, we searched for sales which has similar allowed densities to the subject property.
Market Conditions
We have utilized qualitative adjustments for all the elements of comparison except for market conditions.
As shown in the market analysis section, improved multifamily buildings prices increased approximately 10% per year in both 2022 and 2023. However, price levels have declined in 2024 at a similar annual rate. We have utilized a market conditions adjustment of 10% per year through the end of 2023 and a negative 10% per year adjustment for 2024.
The indicated adjustments will be used in the following discussions.
Discussion/Analysis of Land Sales
Land Sale One
This is the sale of an 11.25 acre site located on the east side of Linden Avenue within the unincorporated community of Bloomington. The site has a narrow access point from Linden Avenue. However, the buyer also purchased an adjacent parcel to the east that was owned by the San Bernardino Flood Control District in a separate transaction, which provides additional access from Santa Ana Avenue. The listing broker, Todd Launchbaugh with Lee & Associates, indicated the property was in escrow for approximately 18 months. During this time, the buyer obtained approvals for a zone change from RS-20M, which allows a minimum lot size of 20,000 square feet or 2.18 units per acre, to RM. We have adjusted this comparable for market conditions from July 2022 to the present to account for market conditions at the time the price was negotiated. The buyer also obtained approvals for a 181-unit townhouse development.
According to the San Bernardino County's Planning Commission's Staff Report, the total project size is
12.6 acres. This results in a density of 14.37 units per acre. We have estimated a total of 162 units as the pro-rata share for this sale property. The listing broker indicated the sale closed once the buyer obtained approvals for their proposed project. The surroundings are primarily single-family residences.
When compared to the subject, the lack of any significant frontage and access were significantly inferior.
The property was zoned RS-20M when the property was listed, which only allows 2.18 units per acre.
Although the resulting density was similar, the buyer had to apply for a zoning change. We have considered the zoning to be significantly inferior due to the time and cost associated with achieving the zoning change. The buyer was able to obtain entitlements during escrow. The entitlements were therefore superior. However, this superior feature only partially offset the significantly inferior frontage, access and zoning. The remaining elements of comparison were similar. This sale was inferior when compared to the subject.
Land Sale Two
This is the sale of a vacant parcel, located on the east side of Piedmont Drive, north of Highland Avenue, in the city of San Bernardino. The property was zoned RM - Residential Medium which allows up to 12 units per acre. During escrow the buyer submitted plans for a 51-unit mobile home park project, including a clubhouse and a pool. The proposed project results in a density of 7.51 units per acre. The surroundings include a mobile home park to the north, single-family residences to the west and a shopping center anchored by Walmart to the south.
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Land Value
When compared to the subject, the smaller size was superior on a price per square foot basis. The entitlement status was superior as the buyer was allowed to obtain approvals during escrow. The property has an irregular shape but was slightly superior in terms of shape as the entire area is useable. The property has the same zoning as the subject and the same allowed density, but the buyer has chosen to develop the property at a lower density. We have considered the zoning/density to be similar as it is the same zoning as the subject property. The remaining elements of comparison were similar. Overall, this comparable was superior to the subject.
Land Sale Three
This represents a 27.15-acre site that consists of seven parcels in unincorporated Riverside county. It's zoned MU (Mixed Use) and sold in an off-market transaction. The buyer submitted plans for a total of 846 townhouses over 65 acres while the property was in escrow. The project includes land on both the north and south side of Spring Street. Out of the 846 units, 357 units are planned on the sale property. They plan to construct the units over two phases. The north side of Spring Street includes the first phase, while the sale property is the second phase as it is on the south side of Spring Street. The surroundings include single-family residences to the east and west, vacant land and a newly constructed residential project to the north (Highgrove Town Center by Lennar, which is a portion of Phase 1) and industrial uses to the south.
When compared to the subject property, the shape is similar but does not have an easement that limits the use of an area near the center. The shape was therefore superior. The entitlement status was also superior. These superior features were partially offset by the inferior size on a price per square foot basis.
Overall, this comparable was slightly superior to the subject.
Land Sale Four
This represents the sale of four parcels that total approximately 12.53-acres. Les Whittlesey of WD Land indicated that the site sold to a developer as part of a 1031 exchange. The buyer plans to develop 272 residential units at this site. The buyer also owns the adjacent property to the south, which they purchased in 2019. The buyer obtained entitlements for a total project of 472 townhouses called San Carlo. The first phase includes 200 units on the property to the south. This part of the project has also been constructed. Mr. Whittlesey verified the sale price of $6,000,000.
When compared to the subject, the frontage/access was slightly superior due to its corner location. The density was significantly superior. The entitlement status was also superior. Finally, the general shape was similar, but was slightly superior overall due to the subject's well easement. Overall, this comparable was significantly superior to the subject.
Land Sale Five
This is the sale of a 10.1-acre lot located on the south side of Highland Avenue, within the city of San Bernardino. The site was zoned CG-1 at the time of sale. The buyer, Warmington Group of Companies, entitled the site during escrow. The buyer obtained entitlements for 95 single-family residential lots and nine lots for community amenities and improvements. This results in a density of 9.41 units per acre. The project is currently under construction. The surroundings include commercial uses to the north, a mobile home park to the east, vacant land to the west, and single-family residences to the south.
When compared to the subject, the entitlement status was superior as they were able to obtain entitlements during escrow. This property is L-shaped, similar to the subject property, but does not have an easement near the center of the property. It was therefore superior in terms of shape. The remaining CBRE VALUATION & ADVISORY SERVICES 34 © 2024 CBRE. INCI Land Value
elements of comparison including size, shape, frontage, topography, and density were all similar features.
Overall, this comparable was superior to the subject.
Land Sale Six
This is the sale of two parcels of vacant land which total 1.51 acres. The site is located within an unincorporated area of San Bernardino and is zoned RM, which allows a maximum of 20 units per acre.
We confirmed the sale with the listing broker, Bryant Brislin with the Hoffman Company. He indicated the property was unentitled at the time of sale. He stated the buyer plans to construct garden-style apartments, but he did not know how many units the buyer planned. To the best of our knowledge, no plans have been submitted to the County of San Bernardino. The surrounding uses include a mixture of single-family residences and small multifamily properties. The property is also adjacent to a church.
When compared to the subject, the rectangular shape was significantly superior. The allowed density and smaller size were superior to the subject. The entitlement status, topography, frontage, access, and utility availability were all similar features. Overall, this comparable was superior to the subject.
Land Sale Seven
This is the sale of a 1.14-acre parcel located on the south side of Lynwood Drive, within the city of San Bernardino. The site was vacant at the time of sale. It is zoned RH, which allows a maximum density of 31 units per acre. The site was unentitled at the time of sale. Based on the zoning development standards, a maximum of 35 units are allowed on the property. However, according to the City Planning's website, the last plans were submitted in 2008 and they were for an 18-unit project. There were also plans submitted in 2007 for a 28-unit project. The surroundings include a mobile home park to the north, apartments to the west, single-family residences to the south and vacant land to the east.
When compared to the subject, the smaller size was superior and the higher allowed density was significantly superior. These superior features were partially offset by an inferior narrow shape and a small amount of frontage. The remaining elements of comparison were similar. Overall, this comparable was slightly superior to the subject.
Summary of Adjustments
As in most analyses, each element of comparison is not weighted equally. For example, the location of a property as an element of comparison may outweigh its size, resulting in an overall rating of "inferior" to the subject, though there may be numerically more elements rated as "similar" in the comparison grid.
Certain elements balance the effect of other elements in each sale's comparison. Based on our comparative analysis, the following chart summarizes the adjustments warranted to each comparable.
CBRE VALUATION & ADVISORY SERVICES 35 © 2024 CBRE. INC
Land Value
Comparable Number 3 4 Subject
Transaction Type Sale
Transaction Date Jul-23
Interest Transferred Fee
Proposed Use Residential
development
Actual Sale Price
Adjusted Sale Price' --
Size (Acres) 27.15 13.54
Size (SF) 589,670
Density (UPA) 13.15 11.97
Price Per SF $5.07 -
Price ($ PSF) $5.07
Property Rights Conveyed
Financing Terms'
Conditions of Sale
Market Conditions (Time) -2.3%
Subtotal $4.95
Shape
Frontage/Access
Topography
Location
Zoning/Density
Utilities
Entitlements
Overall Comparability
"Computed ace or as aurany andior. • developmer
CBRE VALUATION & ADVISORY SERVICES 36 © 2024 CBRE. INC
Land Value
Conclusion
Based on the foregoing discussion of comparability, the market data and the subject may be arrayed as shown below:
LAND VALUE ARRAY
Data No. Overall Comparison Market Conditions Adjusted Price Per SF 4 Significantly Superior $11.29
2 Superior $8.91
5 Superior $6.83
6 Superior $6.01
SI. Superior $5.06
3 SI. Superior $4.95
SUBJECT
Inferior $3.83
Compiled by CBRE
The preceding analysis indicates a value within a range of $3.83 to $11.29 per square foot. Sale 4 was entitled during escrow and has a significantly higher density than what is allowed on the subject. It was significantly superior overall. Sales 2 and 5 were also entitled during escrow and were superior, primarily due to entitlements. Sales 3 and 7 were slightly superior and were both had market conditions adjusted prices near $5 per square foot. Sale 1 was inferior due to the time and cost required for a zone change and the lack of any significant frontage. Sales 1 and 3 bracket the subject between $3.83 and $4.95 per square foot.
Based on the preceding analysis, we reach a land value conclusion as follows for the subject property:
CONCLUDED LAND VALUE
$ PSF Subject SF Total
$4.50 x 589,670 = $2,653,515
Indicated Value: $2,650,000
(Rounded $ PSF) $4.49
Compiled by CBRE
The above value conclusion results in a price per unit of approximately $16,350 per unit, which is within the range shown by the comparables. We remind the reader that the above conclusion assumes the existing easements can be relocated to accommodate development and that the existing improvements have been removed.
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Reconciliation of Value
Reconciliation of Value
In the sales comparison approach, the subject is compared to similar properties that have been sold recently. The sales used in this analysis are considered highly comparable to the subject, and the required adjustments were based on reasonable and well-supported rationale. In addition, market participants are currently analyzing purchase prices on similar properties as they relate to available substitutes in the market. Therefore, , the sales comparison approach is considered to provide a reliable value indication.
Based on the foregoing, the market value of the subject has been concluded as follows:
MARKET VALUE CONCLUSION
Appraisal Premise Interest Appraised Date of Value Value Conclusion Land Value Fee Simple Estate August 31, 2024 $2,650,000 Compiled by CBRE
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Assumptions and Limiting Conditions
Assumptions and Limiting Conditions
1. CBRE, Inc. through its appraiser (collectively, "CBRE") has inspected through reasonable observation the subject property. However, it is not possible or reasonably practicable to personally inspect conditions beneath the soil and the entire interior and exterior of the improvements on the subject property. Therefore, no representation is made as to such matters.
2. The report, including its conclusions and any portion of such report (the "Report"), is as of the date set forth in the letter of transmittal and based upon the information, market, economic, and property conditions and projected levels of operation existing as of such date. The dollar amount of any conclusion as to value in the Report is based upon the purchasing power of the U.S. Dollar on such date. The Report is subject to change as a result of fluctuations in any of the foregoing. CBRE has no obligation to revise the Report to reflect any such fluctuations or other events or conditions which occur subsequent to such date.
3. Unless otherwise expressly noted in the Report, CBRE has assumed that:
(i) Title to the subject property is clear and marketable and that there are no recorded or unrecorded matters or exceptions to title that would adversely affect marketability or value. CBRE has not examined title records (including without limitation liens, encumbrances, easements, deed restrictions, and other conditions that may affect the title or use of the subject property) and makes no representations regarding title or its limitations on the use of the subject property. Insurance against financial loss that may arise out of defects in title should be sought from a qualified title insurance company.
Existing improvements on the subject property conform to applicable local, state, and federal building codes and ordinances, are structurally sound and seismically safe, and have been built and repaired in a workmanlike manner according to standard practices; all building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required; and the roof and exterior are in good condition and free from intrusion by the elements. CBRE has not retained independent structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no representations relative to the condition of improvements. CBRE appraisers are not engineers and are not qualified to judge matters of an engineering nature, and furthermore structural problems or building system problems may not be visible. It is expressly assumed that any purchaser would, as a precondition to closing a sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity of building systems.
Any proposed improvements, on or off-site, as well as any alterations or repairs considered will be completed in a workmanlike manner according to standard practices. (iv) Hazardous materials are not present on the subject property. CBRE is not qualified to detect such substances.
The presence of as asbestos, urea formaldehyde foam insulation, contaminated groundwater, mold, or other potentially hazardous materials may affect the value of the property.
No mineral deposit or subsurface rights of value exist with respect to the subject property, whether gas, liquid, or solid, and no air or development rights of value may be transferred. CBRE has not considered any rights associated with extraction or exploration of any resources, unless otherwise expressly noted in the Report. (vi) There are no contemplated public initiatives, governmental development controls, rent controls, or changes in the present zoning ordinances or regulations governing use, density, or shape that would significantly affect the value of the subject property.
(vil) All required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be readily obtained or renewed for any use on which the Report is based.
(vili) The subject property is managed and operated in a prudent and competent manner, neither inefficiently, nor super-efficiently.
(ix) The subject property and its use, management, and operation are in full compliance with all applicable federal, state, and local regulations, laws, and restrictions, including without limitation environmental laws, seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses, building codes, permits, and licenses.
(x) The subject property is in full compliance with the Americans with Disabilities Act (ADA). CBRE is not qualified to assess the subject property's compliance with the ADA, notwithstanding any discussion of possible readily achievable barrier removal construction items in the Report. (xi) All information regarding the areas and dimensions of the subject property furnished to CBRE are correct, and no encroachments exist. CBRE has neither undertaken any survey of the boundaries of the subject property, nor reviewed or confirmed the accuracy of any legal description of the subject property.
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Assumptions and Limiting Conditions
Unless otherwise expressly noted in the Report, no issues regarding the foregoing were brought to CBRE's attention, and CBRE has no knowledge of any such facts affecting the subject property. If any information inconsistent with any of the foregoing assumptions is discovered, such information could have a substantial negative impact on the Report and any conclusions stated therein. Accordingly, if any such information is subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. CBRE assumes no responsibility for any conditions regarding the foregoing, or for any expertise or knowledge required to discover them. Any user of the Report is urged to retain an expert in the applicable fields) for information regarding such conditions.
4. CBRE has assumed that all documents, data and information furnished by or on behalf of the client, property owner or owner's representative are accurate and correct, unless otherwise expressly noted in the Report. Such data and information include, without limitation, numerical street addresses, lot and block numbers, Assessor's Parcel Numbers, land dimensions, square footage area of the land, dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count, room count, rent schedules, income data, historical operating expenses, budgets, and related data. Any error in any of the above could have a substantial impact on the Report and any conclusions stated therein. Accordingly, if any such errors are subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. The client and intended user should carefully review all assumptions, data, relevant calculations, and conclusions of the Report and should immediately notify CBRE of any questions or errors within 30 days after the date of delivery of the Report.
5. CBRE assumes no responsibility (including any obligation to procure the same) for any documents, data or information not provided to CBRE, including, without limitation, any termite inspection, survey or occupancy
6. All furnishings, equipment and business operations have been disregarded with only real property being considered in the Report, except as otherwise expressly stated and typically considered part of real property.
7. Any cash flows included in the analysis are forecasts of estimated future operating characteristics based upon the information and assumptions contained within the Report. Any projections of income, expenses and economic conditions utilized in the Report, including such cash flows, should be considered as only estimates of the expectations of future income and expenses as of the date of the Report and not predictions of the future.
This Report has been prepared in good faith, based on CBRE's current anecdotal and evidence-based views of the commercial real estate market. Although CBRE believes its views reflect market conditions on the date of this Report, they are subject to significant uncertainties and contingencies, many of which are beyond CBRE's control. In addition, many of CBRE's views are opinion and/or projections based on CBRE's subjective analyses of current market circumstances. Actual results are affected by a number of factors outside the control of CBRE, including without limitation fluctuating economic, market, and property conditions. Actual results may ultimately differ from these projections, and CBRE does not warrant any such projections. Further, other firms may have different opinions, projections and analyses, and actual market conditions in the future may cause CBRE's current views to later change or be incorrect. CBRE has no obligation to update its views herein if its opinions, projections, analyses or market circumstances later change.
8. The Report contains professional opinions and is expressly not intended to serve as any warranty, assurance or guarantee of any particular value of the subject property. Other appraisers may reach different conclusions as to the value of the subject property. Furthermore, market value is highly related to exposure time, promotion effort, terms, motivation, and conclusions surrounding the offering of the subject property. The Report is for the sole purpose of providing the intended user with CBRE's independent professional opinion of the value of the subject property as of the date of the Report. Accordingly, CBRE shall not be liable for any losses that arise from any investment or lending decisions based upon the Report that the client, intended user, or any buyer, seller, investor, or lending institution may undertake related to the subject property, and CBRE has not been Intret recommendation of CrE By, al ha, or mance the suiet property. compensated to assume any of these risks. Nothing contained in the Report shall be construed as any direct or
9. No opinion is expressed on matters which may require legal expertise or specialized investigation or knowledge including, but not limited to, environmental, social, and governance principles ("ES"), beyond that customarily employed by real estate appraisers. Any user of the Report is advised to retain experts in areas that fall outside In cod by al adas a rare rest to report are
10. CBRE assumes no responsibility for any costs or consequences arising due to the need, or the lack of need, for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance.
11. Acceptance or use of the Report constitutes full acceptance of these Assumptions and Limiting Conditions and any special assumptions set forth in the Report. It is the responsibility of the user of the Report to read in full, comprehend and thus become aware of all such assumptions and limiting conditions. CBRE assumes no responsibility for any situation arising out of the user's failure to become familiar with and understand the same.
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Assumptions and Limiting Conditions
12. The Report applies to the property as a whole only, and any pro ration or division of the title into fractional interests will invalidate such conclusions, unless the Report expressly assumes such pro ration or division of interests.
13. The allocations of the total value estimate in the Report between land and improvements apply only to the existing use of the subject property. The allocations of values for each of the land and improvements are not intended to be used with any other property or appraisal and are not valid for any such use.
14. The maps, plats, sketches, graphs, photographs, and exhibits included in this Report are for illustration purposes only and shall be utilized only to assist in visualizing matters discussed in the Report. No such items shall be removed, reproduced, or used apart from the Report.
15. The Report shall not be duplicated or provided to any unintended users in whole or in part without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Exempt from this restriction is duplication for the internal use of the intended user and its attorneys, accountants, or advisors for the sole benefit of the intended user. Also exempt from this restriction is transmission of the Report pursuant to any requirement of any court, governmental authority, or regulatory agency having jurisdiction over the intended user, provided that the Report and its contents shall not be published, in whole or in part, in any public document without the written consent of CBRE, which consent CBRE may withhold in its sole discretion, Finally, the Report shall not be made available to the public or otherwise used in any offering of the property or any security, as defined by applicable law. Any unintended user who may possess the Report is advised that it shall not rely upon the Report or its conclusions and that it should rely on its own appraisers, advisors and other consultants for any decision in connection with the subject property. CBRE shall have no liability or responsibility to any such unintended user.
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Addenda
Addenda
CBRE VALUATION & ADVISORY SERVICES 42 © 2024 CBRE. INC
Addenda
Addendum A
Land Sale Data Sheets
CBRE VALUATION & ADVISORY SERVICES 43 © 2024 CBRE. INC
Sale Land - Residential Subdivision No. 1
Property Name Linden Avenue
Address 10719 Linden Avenue
Bloomington, CA 92316
County San Bernardino
Govt./Tax ID 0257-021-28 & 0257-031-35
Area Measurement(NRA)
Land Area Net 11.250 ac/ 490,050 sf
Land Area Gross 11.250 ac/ 490,050 sf
Site Development Status Raw
Utilities All available to site
Max Allow Bldg Units/Density 162 / 14.40
Shape Irregular
Primary Frontage 60 ft on Linden Ave
Topography Level, At Street Grade
Zoning RS-20M / RM
Entitlement Status Tentative Tract
Proposed Use or Development 181-unit townhouse development Transaction Details
Type Sale Primary Verification Listing Broker
Interest Transferred Fee Simple Transaction Date 01/09/2024 Condition of Sale None Recording Date 01/09/2024
Buyer Type Developer Sale Price $1,750,000
Recorded Seller Nakano Family Trust Financing All Cash
Marketing Time N/A Cash Equivalent $1,750,000
Listing Broker Todd Launchbaugh, Lee & Associates, 909- Capital Adjustment SO 373-2911
Doc # 24-0007321 % Interest Purchased 100%
Adjusted Price $1,750,000
Adjusted Price / ac and $155,556 / $3.57
Adjusted Price/ FAR N/A
Adjusted Price/ Unit $10,802
Comments
This is the sale of an 11.25 acre site located on the east side of Linden Avenue within the unincorporated community of Bloomington. The site has a narrow access point from Linden Avenue. However, the buyer also purchased an adjacent parcel to the east that was owned by the San Bernardino Flood Control District in a separate transaction, which provides additional access from Santa Ana Avenue. The listing broker, Todd Launchbaugh with Lee & Associates, indicated the property was in escrow for approximately 18 months. During this time, the buyer obtained approvals for a zone change from RS-2OM, which allows a minimum lot size of 20,000 square feet or 2.18 units per acre, to RM. The buyer also obtained approvals for a 181-unit townhouse development. According to the San Bernardino County's Planning Commission's Staff Report, the total project size is 12.6 acres. This results in a density of 14.37 units per acre. We have estimated a total of 162 units as the pro-rata share for this sale property. The listing broker indicated the sale closed once the buyer obtained approvals for their proposed project. The surroundings are primarily single-family residences.
CBRE
Sale Land - Planned Development No. 2
Property Name Piedmont Park Estates
Address Piedmont Drive
San Bernardino, CA 92346
County San Bernardino
Govt./Tax ID 1199-671-13-0000
Area Measurement(NRA)
Land Area Net 6.790 ac/ 295,772 sf
Land Area Gross 6.790 ac/ 295,772 s
Site Development Status Raw
Utilities To Site
Max Allow Bldg Units/Density 51 / 7.51
Shape Irregular
Primary Frontage 500 ft on Piedmont Avenue
Topography Rolling
Flood Zone Class Zone X (Unshaded)
Flood Panel No./ Date 06071C7965H/ Aug 2008
Zoning RM - Residential Medium
Entitlement Status Tentative Tract
Proposed Use or Development 51-unit mobile home park
Transaction Details
Type Sale Primary Verification CBRE Files and CoStar
Interest Transferred Fee Simple Transaction Date 12/01/2023 Condition of Sale Arm's length Recording Date 12/01/2023 Buyer Type Developer Sale Price $2,800,000
Recorded Seller CommStar, L.P. Financing Market Rate Financing Marketing Time N/A Cash Equivalent $2,800,000
Listing Broker N/A Capital Adjustment SO
Doc # 2023-0297635 % Interest Purchased 100%
Adjusted Price $2,800,000
Adjusted Price / ac and $412,371 / $9.47
Adjusted Price/ FAR N/A
Adjusted Price/ Unit $54,902
Comments
This is the sale of a vacant parcel, located on the east side of Piedmont Drive, north of Highland Avenue, in the city of San Bernardino. The roperty was zoned RM - Residential Medium which allows up to 12 units per acre. During escrow the buyer submitted plans for a 51-unit mobile ome park project, including a clubhouse and a pool. The proposed project results in a density of 7.51 units per acre. The surroundings include c mobile home park to the north, single-family residences to the west and a shopping center anchored by Walmart to the south.
CBRE
Sale Land - Single Unit Residential No. 3
Property Name Residential Land
Address 19485 Spring Street
Riverside (unincorporated Riverside County
CA 92507
County Riverside
Govt./Tax ID Multiple
Area Measurement(NRA)
Land Area Net 27.150 ac/ 1,182,654 sf
Land Area Gross 27.150 ac/ 1,182,654 sf
Site Development Status Raw
Utilities All available to site
Max Allow Bldg Units/Density 357 / 13.15
Min Land Bldg Ratio N/A
Shape Irregular
Primary Frontage 1,250 ft on Spring St
Topography Level, At Street Grade
Zoning MU, Mixed Use
Entitlement Status Fully Entitled/Planning Permissions
Proposed Use or Development 357 unit development
Transaction Details
Type Sale Primary Verification CoStar
Interest Transferred Fee Simple Transaction Date 07/11/2023 Condition of Sale Off-market Recording Date 07/11/2023
Buyer Type N/A Sale Price $5,996,500
Recorded Seller High Grove Village LLC Financing Market Rate Financing Marketing Time N/A Cash Equivalent $5,996,500
Listing Broker None Capital Adjustment SO
Doc # 0201740 % Interest Purchased 100%
Adjusted Price $5,996,500
Adjusted Price / ac and $220,866 / $5.07
Adjusted Price/ FAR N/A
Adjusted Price/ Unit $16,797
Comments
This represents a 27.15-acre site that consists of seven parcels in unincorporated Riverside county. It's zoned MU (Mixed Use) and sold in an off- market transaction. The buyer submitted plans for a total of 846 townhouses over 65 acres while the property was in escrow. The project includes and on both the north and south side of Spring Street. Out of the 846 units, 357 units are planned on the sale property, resulting in a density o
3.15 units per acre. They plan to construct the units over two phases. The north side of Spring Street includes the first phase, while the sak property is the second phase as it is on the south side of Spring Street. The surroundings include single-family residences to the east and west, vacant land and a residential project under construction to the north (Highgrove Town Center by Lennar, which is a portion of Phase 1) and industrial uses to the south.
CBRE
Sale Land - Multi Unit Residential No. 4
Property Name Greenspot Village St - PA 3
Address 1820-7822 Boulder Avenue
Highland, CA 9234(
County San Bernardino
Govt./Tax ID Multiple
Area Measurement(NRA)
Land Area Net 12.530 ac/ 545,807 s
Land Area Gross 12.530 ac/ 545,807 st
Site Development Status Finished
Utilities To Site
Max Allow Bldg Units/Density 272 / 21.71
Tim
Shape Irregular
Primary Frontage 760 ft on Boulder Avenue
Secondary Frontage 80 ft on Webster St
Topography Generally Level
Flood Zone Class Zone X (Unshaded)
Flood Panel No./ Date 06071C8702H/ Aug 2008
Zoning PD
Entitlement Status Final Tract
Proposed Use or Development 272 For Lease Townhouses
Transaction Details
Sale Primary Verification Les Whittlesey - WD Land - (949) 789- Type 4555 X14
Interest Transferred Fee Simple Transaction Date 12/30/2022 Condition of Sale 1031 Exchange Recording Date N/A
Buyer Type Developer Sale Price $6,000,000
Recorded Seller Greenspot Village & Marketplace LLC/ Loma Financing All Cash Linda Village Center LLC
Marketing Time 2 Months) Cash Equivalent $6,000,000
Listing Broker Les Whittlesey - WD Land - (949) 789-4555 Capital Adjustment so X14
Doc # 2023-0008561 % Interest Purchased 100%
Adjusted Price $6,000,000
Adjusted Price / ac and $478,851 / $10.99
Adjusted Price/ FAR N/A
Adjusted Price/ Unit $22,059
Comments
lease. Mr. Whittlesey verified the sale price of $6,000,000.
CBRE
Sale Land - Residential Subdivision No. 5
Property Name 95 SFR lot development
Address 795 W Highland Ave
an Bernardino, CA 9241
County San Bernardino
Govt./Tax ID 0143-191-59
Area Measurement(NRA)
Land Area Net 10.100 ac/ 439,956 sf
Land Area Gross 10.100 ac/ 439,956 sf
Site Development Status Raw
Utilities All available to site
Max Allow Bldg Units/Density 95 / 9.41
Shape L Shaped
Primary Frontage 450 ft on Highland Ave
Topography Generally Level
Zoning CG-1
Entitlement Status Fully Entitled/Planning Permissions
Proposed Use or Development 95 SFR development
Transaction Details
Type Sale Primary Verification CoStar
Interest Transferred Fee Simple Transaction Date 12/28/2022 Condition of Sale None Recording Date 12/28/2022
Buyer Type Developer Sale Price $2,925,000
Recorded Seller Positive Invesments, Inc. Financing All Cash Marketing Time N/A Cash Equivalent $2,925,000
Listing Broker N/A Capital Adjustment SO
Doc # N/A % Interest Purchased 100%
Adjusted Price $2,925,000
Adjusted Price / ac and $289,604 / $6.65
Adjusted Price/ FAR N/A
Adjusted Price/ Unit $30,789
Comments
This is the sale of a 10.1-acre lot located on the south side of Highland Avenue, within the city of San Bernardino. The site was zoned CG-1 at the time of sale. The buyer, Warmington Group of Companies, entitled the site during escrow. The buyer obtained entitlements for 95 single-family residential lots and nine lots for community amenities and improvements. This results in a density of 9.41 units per acre. The project is currently under construction. The surroundings include commercial uses to the north, a mobile home park to the east, vacant land to the west, and single- family residences to the south.
CBRE
Sale Land - Multi Unit Residential No. 6
Property Name 4009-4015 Newmark Ave
Address Sang on no, CANOT
County San Bernardino
Govt./Tax ID 0271-031-03 & -04
Area Measurement(NRA)
Land Area Net 1.515 ac/ 65,971 sf
Land Area Gross 1.515 ac/ 65,971 sf
Site Development Status Raw
Utilities All available to site
Max Allow Bldg Units/Density 30 / 19.81
Shape Rectangular
Primary Frontage 256 ft on Newmark Ave
Topography Generally Level
Zoning RM, Multiple Residential
Entitlement Status None
Proposed Use or Development MFR Development
Transaction Details
Type Sale Primary Verification Listing Broker
Interest Transferred Fee Simple Transaction Date 05/13/2022 Condition of Sale None Recording Date 05/13/2022
Buyer Type Private Investor Sale Price $365,000
Recorded Seller Community Bible Church Financing Cash to Seller Marketing Time 2 Months) Cash Equivalent $365,000
Listing Broker Bryant Brislin, Hoffman Company, 714-814- Capital Adjustment SO 5624
Doc # 22-0179792 % Interest Purchased 100%
Adjusted Price $365,000
Adjusted Price / ac and $241,004 / $5.53
Adjusted Price/ FAR N/A
Adjusted Price/ Unit $12,167
Comments
This is the sale of two parcels of vacant land which total 1.51 acres. The site is located within an unincorporated area of San Bernardino and is CBRE
Sale Land - Multi Unit Residential No. 7
South side of Lynwood Dr, Between Golden
Property Name Ave & Mountain Ave
Address South side of Lynwood Dr, Between Golder
Ave & Mountain Ave
San Bernardino, CA 92404
County San Bernardino
Govt./Tax ID 0155-151-20
Area Measurement(NRA)
Land Area Net 1.140 ac/ 49,658 sf
Land Area Gross 1.140 ac/ 49,658 sf
Site Development Status Raw
Utilities All available to site
Max Allow Bldg Units/Density 35 / 30.70
Shape Rectangular
Primary Frontage 110 ft on Lynwood Dr
Topography Generally Level
Zoning RH, Residential High
Entitlement Status None
Proposed Use or Development Multifamily development
Transaction Details
Type Sale Primary Verification CoStar, Public Records, Deed Interest Transferred Fee Simple Transaction Date 01/14/2022 Condition of Sale None Recording Date 01/14/2022
Buyer Type Private Investor Sale Price $225,000
Recorded Seller Suhail Kinan & Naief Husein Khalil Financing N/A Marketing Time 25 Months) Cash Equivalent $225,000
Listing Broker Jerry Tomeo, MGR Real Estate, 909-996- Capital Adjustment SO 8877
Doc # 22-0019210 % Interest Purchased 100%
Adjusted Price $225,000
Adjusted Price / ac and $197,368 / $4.53
/ st
Adjusted Price/ FAR N/A
Adjusted Price/Unit $6,429
Comments
CBRE
Addenda
Addendum B
Subject Mapping
CBRE VALUATION & ADVISORY SERVICES 44 © 2024 CBRE. INC
SAN
PITY OF Modified Antil Plant Site and Easements
W
WATER DENT
PEDLEY RD
Antil Plant
ANTIL 5 WELL
8 ANTIL 6
WELL
UNNAMED ACRD
Navigation Center
6TH_$T
Legend
Wells
Pump Boosters
CITY OF RIVERSIDE CITY OF RIVERSIDE - - - . Future Pipeline • Mainline
--- Centerlines
Old Antil Plant (~13.78 Acre)
25' Easement (~53,886.56 Sq Ft)
Modified Antil Plant (~10,585.61 Sq Ft)
Addenda
Addendum C
Qualifications
CBRE VALUATION & ADVISORY SERVICES 45 © 2024 CBRE. INC
PROFILES CBRE
VALUATION & ADVISORY SERVICES
Jerardo Arciniega, MAI
Vice President
Encino, CA
E [email protected]
Jerardo Arciniega is a Vice President for CBRE's Valuation & Advisory Services (VAS). Mr.
Arciniega has been appraising real property since 2005. He has extensive experience in real estate analysis, data collection and studies including interviewing buyers, sellers, brokers and tenants with regard to the details of transactions and market conditions, as well as report writing for narrative appraisal assignments concerning all major real estate categories.
Pro Affiliations / He has experience in valuing a variety of property types including retail, office, and industrial buildings, apartments, single-family residences, mobile home parks, gas stations, Accreditations nurseries, renewable energy sites, self-storage facilities, and special purpose properties. - Member: Appraisal Institute He has worked on many high-profile right-of-way projects, including the Los Angeles Metro (MAI No. 480323) Purple Line expansion, the State Route-91 Corridor Improvement Project, among many - Licensed: California Certified others. His work also encompasses litigation support related to potential value diminution, General Real Estate Appraiser eminent domain, and other issues.
No. AGO42445
- Member: International Right of He has successfully appraised properties for various client groups such as public agencies (Los Angeles Department of Water and Power, Metropolitan Water District, Metropolitan Way Association
Transportation Authority, cities of Riverside, Culver City, and South Gate), financial institutions, law firms, and individual property owners. In addition, he has represented Education property owners in assessment appeal cases. Jerardo was previously an Associate Director - B.A., Economics (Cum Laude), at integra Realty Resources - Los Angeles.
California State University,
Northridge Representative Appraisal Assignments
- The valuation of three properties in Century City for the Los Angeles County Metropolitan Transportation Authority. The assignments included partial and full acquisition as part of the Purple Line Subway Extension Project; - The valuation of a single-family residence in Beverly Hills as part of an Assessment Appeal case. Mr. Arciniega represented an out-of-state property owner at the hearing and the assessment of the property was reduced by over thirty-five percent. - The appraisal of an approximately 4,250-acre property improved with a vehicle test track facility. The assignment included a highest and best use analysis, including the possibility of renewable energy redevelopment;
- A valuation assignment of approximately 140 properties in the Mojave Desert for partial and full acquisition.
1 ©2023 CBRE, INC.
PROFILES CBRE
- A valuation of 70 easements and partial takings in Burbank. The take areas primarily consisted of land under public rights- of-way. The Across-the-Fence valuation method was utilized. - A valuation of 11 properties throughout Los Angeles County including high-rise office buildings, industrial buildings, and a golf course, as part of an analysis of Proposition 8 Assessment reductions. - A valuation assignment of 40 service stations throughout Los Angeles, Orange, Ventura and San Bernardino counties. - A valuation for the U.S. Department of Justice in a case involving the acquisition of four sections of land in Imperial County which was leased to the United States and used as part of a bombing range. - The valuation of the leasehold estate of three properties situated in Marina Del Rey. The analysis included researching rental rates and occupancy rates for boat slips and dry storage lots, as well as sales and leases of restaurant, retail, and office space.
- The valuation of Banning Ranch in Newport Beach, which is one of the largest undeveloped sites in Orange County. The property included a residential development component, wetlands, and open space. The valuation required multiple various zones of value.
- The valuation of the former Carousel Mall site in San Bernardino. The property was vacant for several years and the City of San Bernardino planned to redevelop the property with a mixed-use development. 02023 CBRE INC
PROFILES CBRE
VALUATION & ADVISORY SERVICES
Beth B. Finestone, MAI,
AI-GRS, FRICS, CRE
Executive Vice President
Los Angeles, CA
T +1 818 290 5455
E [email protected]
Professional Experience
Beth B. Finestone, MAI, AI-GRS, FRICS, CRE, is an Executive Vice President for CBRE's Valuation & Advisory Services (VAS). She has been appraising in Southern California since 1981, specializing in valuation and consulting services related to public agency and right-of-way clients and for major investment-grade commercial Professional Affiliations properties and special purpose properties. She also has extensive expertise in / Accreditations valuing large tracts of land for conservation, mitigation and other purposes. - Member: Appraisal Institute Ms. Finestone's clients include public agencies, right-of-way firms, lenders, - Designation: Appraisal Institute -
institutional investors, major corporations, law firms, and individual property General Review Specialist (Al-GRS)
owners. Her services include a wide range of specialized studies including ground - Fellow: Royal Institution of
lease rent studies, partial interest acquisitions, value diminution (from both internal Chartered Surveyors
and external influences), market demand, feasibility, severance damages and - Member: The Counselors of Real
project benefits, investment analysis, assessment allocation, reuse analysis, and Estate
- Member: International Right of Way the valuation of partial interests including leasehold, leased fee, possessory Association interests, and minority interests.
- License: California State Certified
General Real Estate Appraiser She is experienced in valuing full and partial acquisitions related to eminent domain actions. These services include the valuation of fee acquisitions, - Certified: Uniform Appraisal
Standards for Federal Land permanent and temporary easements, including the appraisal of railroad and other Acquisitions (Yellow Book) types of corridors, pipeline easements and transmission line easements.
She has been a featured speaker at Appraisal Institute, International Right of Way, Education and legal functions. She was the 2019 President of the Southern California Chapter - M.B.A., Pepperdine University of the Appraisal Institute, the largest chapter in the country. - B.S., Kinesiology, University of
California, Los Angeles Beth was previously a Managing Director for and a principal of Integra Realty - Certified by the Appraisal Resources - Los Angeles. In addition, she was the Executive Director of Integra Institute's program of continuing Realty Resources - Orange County. During her career, she has held senior education for its designated positions with Finestone & Associates and Cushman & Wakefield. members.
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Recognition
- Los Angeles Business Journal 2009 Nominee for Executive of the Year - Women Making a Difference, May 2009 - Designated one of Real Estate Southern California's 2006 Women of Influence, October 2006
Seminar Presentations
- Corridors, Crops & Condemnation (IRWA National Conference in San Diego, June 2015) - Eminent Domain Appraisals: Pitfalls & Value-Added Services (RICS - Southern California Chapter, CPD Presentation, April 16, 2015)
- Government Buildings (Appraisal Institute, Special Purposes Seminar, July 15, 2014) - The Trouble with Ignoring Building Code Violators (SCCAI 43d Annual Litigation Seminar, Moderator, November 15, 2013)
- Conflicting Mandates & Instructions Between USPAP, Yellow Book, & Caltrans Appraisal Guidelines (IRWA Annual Valuation Seminar, April 24, 2012)
- Current Issues in Real Estate Appraisal (Lorman Education Services, live audio conference, March 8, 2012) - The Role of the Appraiser in Construction Defect Litigation: Measuring Damages from Construction Defects (MCLE- approved presentation, January 11, 2012, March 4, 2010, and February 10, 2010) Expert Testimony
Ms. Finestone has qualified as an expert witness in real estate matters and has testified before:
- Superior Courts: Los Angeles and Orange Counties
- Arbitration Hearings: Los Angeles County
- Tax Appeal Boards: Los Angeles and San Diego Counties Representative Appraisal Assignments
- Appraisal of 50+ single-family residences (SFRs) impacted by the I-405 Widening Project in Costa Mesa. The acquisitions all involve temporary construction easements (TCEs). This assignment required an analysis of temporary severance damages due to impacts to rear yards as well as a valuation of all site improvements in the TCE areas.
Appraisal of 50+ commercial properties impacted by various types of partial acquisitions related to the I-405. Some of the appraisals were extremely complex with significant severance damage studies required. - Multiple appraisal assignments for LACMTA included:
- Appraisal of a 1.25-acre parcel improved with a Class A, 12-story, medical office building constructed circa 1962, an adjacent one-story bank building and an attached four-story parking structure known as the Westwood Medical Plaza. It is located along the proposed Purple Line Subway Extension Project Corridor, specifically on the northeast corner of Wilshire Boulevard and Westwood Boulevard in the Westwood neighborhood within the City of Los Angeles. As part of this project, LACMTA is seeking acquire various permanent and temporary property interests, and to relocate existing tenants within the subject property. The purpose of this appraisal was to estimate the fair market value of the property interests (Parts Taken) to be acquired from the Larger Parcel and to make a determination as to the impact of the proposed acquisitions on the Remainder Parcel.
- Appraisal of Wilshire Federal Building: Appraisal of a deep tunnel easement on the Wilshire frontage of the Federal Building as part of LACMTA's Purple Line extension. Consideration was given to the redevelopment potential of the site and the benefits to the remainder, as well as to the value of the parts taken. - Appraisal involving the valuation of partial acquisitions impacting the Westfield Mall in Century City as part of LACMTA's Purple Line extension. This assignment was challenging with respect to valuing the underlying land associated with the larger parcel. The property is unique due to its location and its size. Complexities involved determining the number of trips allocated to the site as this in part drives land value. Again, consideration was given to damages and benefits, as well as to the value of the parts taken.
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- Appraisal of numerous surface and subsurface acquisitions were required on the Veteran's Administration property for the construction of a subway station and tunnel easements for LACTA's Purple Line. Significant research was required relative to the VA specific plan and the highest and best use of the property. Consideration was given to damages and - Appraisal of 50+ miles of pipeline easement running through UPRR and BNSF rail corridors in Urban Los Angeles. - Multiple appraisal assignments for RCTC included:
- Appraisal of parcels under more than 50 separate ownerships affected by acquisitions and easements for the SR-91 Corridor Improvement Project through the City of Corona. The complete summary appraisal reports and appraisal summary statements included a valuation of the properties in the before and after condition. Some of the properties had significant severance damage analyses due to loss of building improvements, parking, loading, etc. - City of Riverside 69 kV Electrical Transmission Line Project: Initially valued 22 residential and commercial properties in the City of Riverside. These properties all had a three-foot-wide partial taking along their frontage to accommodate the construction of a 69 kV transmission line. This represented Phase One of this assignment. Phase Two involved the partial taking of land over seven properties owned by UCR for the construction of a transmission line. The final phase involved approximately 100 properties of various types which were impacted by partial acquisitions for the construction of a transmission line. The final phase involved approximately 90 properties of various types which will be impacted by partial takes for the construction of a transmission line.
- Appraisal of in excess of 75 private properties on behalf of CHSRA. The property types included agricultural, commercial and residential. Most of the appraisals involved partial acquisitions. In addition, Ms. Finestone completed the appraisal of over 50 railroad corridor properties in conjunction with the high-speed rail project. - Appraisal of the Del Mar Fairgrounds, Racetrack, and Horsepark (450 acres of land and over 1,000,000 square feet in improvements) for the California Department of General Services. - Completed an appraisal of a property that represents one of the largest parcels of undeveloped and unprotected coastal property in Southern California (Banning Ranch). Much of the site had been occupied by oil operations since the 1940's.
The appraisal of this property was very complex in that the highest and best use of the property was not clear at the onset of the assignment. This property consists of degraded wetlands, open space, and a small area with the potential for residential development. The goal of this project was to prepare an appraisal for acquisition purposes such that the buyer and seller could agree on a purchase price and put the property under contract. - West Coyote Hills: Appraised Neighborhoods 1 and 3 of Vested Tentative Tract Map (VTTM) 17609. This is commonly referred to as Neighborhoods 1 and 3 of the West Coyotes Hills Property. Neighborhood 1 consists of 10.4+ acres and was proposed for development with 16 residential units. Neighborhood 3 is 13.7= acres and was proposed for development with 59 residential units. Neighborhoods 1 and 3 were valued separately. The intended users of the report were the California State Coastal Conservancy, City of Fullerton, Wildlife Conservation Board, Rivers and Mountains Conservancy, California Department of Parks and Recreation, California Natural Resources Agency, and the US Fish and Wildlife Service. This report was prepared to Federal Standards in conformance with Yellow Book guidelines and the acquisition was made based on our appraisal.
- Appraisal in Fresno County for the State Department of Water Resources, which included 22 permanent flowage easements and three partial fee acquisitions. Some of the proposed flowage easements overlapped existing road and utility easements which had to be considered. Due to the nature of the flowage easements, substantial severance damages accrued to the remainder parcels which had to be considered. This assignment also included the consideration of orchard and crop values.
Multiple appraisal assignments for the U.S. Department of the Interior, Appraisal and Valuation Services Office (AVSO) prepared to Federal Standards in accordance with Yellow Book guidelines. These were for acquisition purposes related to the San Joaquin River Restoration Project and for the acquisition land to be acquired for National Wilderness areas. ©2023 CBRE, INC.
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