Exhibit 2 — Santa Ana City Council, February 17, 2026

CBRE Valuation & Advisory Services
cbre.com/valuation

CITY OF SANTA ANA- WALNUT STREET PROPERTY
1901 West Walnut Street
Santa Ana, California 92703
Prepared for: City of Santa Ana, Community Development Agency Date of Report: November 11, 2025
CBRE File No.: CB25US102817-1
EXHIBIT 2
CBRE Valuation & Advisory Services

5921 Owensmouth Avenue
Woodland Hills, CA 91367

www.cbre.com/valuation

Date of Report: November 11, 2025

Marc Marley
Economic Development Manager

CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY
20 Civic Center Plaza, M-25
Santa Ana, California 92702

RE: Appraisal of: City of Santa Ana- Walnut Street Property 1901 West Walnut Street
Santa Ana, Orange County, California
CBRE File No.: CB25US102817-1

Dear Mr. Marley:

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 a parcel of land located at the northwest corner of West Walnut Street and South Daisy Avenue in the City of Sana Ana. The subject property is improved with a community garden and coffee shop; however, this valuation is limited to the underlying land only. The subject contains a site area of 16,632 square feet, or 0.38 acres and is zoned C2, General Commercial, which allows a variety of retail and service uses.

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

MARKET VALUE CONCLUSION
Appraisal Premise Interest Appraised Date of Value Value Conclusion Land Only Fee Simple Estate October 24, 2025 $1,030,000 Compiled by CBRE

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.

CBRE Valuation & Advisory Services
CBRE VALUATION & ADVISORY SERVICES 2 © 2025 CBRE, INC
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 permitte d 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
Nicole Galvez Beth Finestone, MAI, AI-GRS, FRICS, CRE
Title: VAS - Vice President Title: VAS - Executive Vice President Phone: (818) 251-3646 Phone: (818) 251-3669
Email: [email protected] Email: [email protected] License No. 3005597 License No. AG004030

Certification
CBRE VALUATION & ADVISORY SERVICES i © 2025 CBRE, INC
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. Nicole Galvez and Beth Finestone 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. Nicole Galvez has made a personal inspection of the property that is the subject of this report. Beth Finestone 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-GRS, FRICS, CRE has completed the continuing education program for Designated Members of the Appraisal Institute.

Nicole Galvez Beth Finestone
License No. 3005597 License No. AG004030

Subject Photographs
CBRE VALUATION & ADVISORY SERVICES ii © 2025 CBRE, INC
Aerial View

Subject Photographs

View of the subject property looking north View of the subject property looking southeast

View of the subject property looking west View of the subject property looking west

View of South Daisy Avenue looking north View of West Walnut Street looking west

Executive Summary

Property Name
Location
Parcel Number(s)
Client
Highest and Best Use
As If Vacant
As Improved
Property Rights Appraised
Date of Inspection
Estimated Exposure Time
Estimated Marketing Time
Land Area 0.38 AC 16,632 SF
Zoning
City of Santa Ana- Walnut Street Property
October 24, 2025
N/A
Develop with a retail use
1901 West Walnut Street
Santa Ana, Orange County, CA 92703
City of Santa Ana, Community Development Agency
007-332-08
Fee Simple Estate
3 - 6 Months
3 - 6 Months
C2, General Commercial

CONCLUDED MARKET VALUE
Appraisal Premise Interest Appraised Value
Land Only Fee Simple Estate $1,030,000
Compiled by CBRE
October 24, 2025
Date of Value

At the September 2025 FOMC meeting, the Federal Reserve lowered the federal funds rate by 25 basis points, to a range of 4.00% to 4.25% This latest interest rate cut will support capital markets activity by bolstering investor sentiment and reducing borrow ing costs. Improved liquidity will benefit most sectors, and we expect to see continued refinancing opportunities. However, challenges persist, particularly for distressed office assets. CBRE forecasts limited cap rate compression this cycle, as long-term interest rates are expected to remain elevated. This points toward a more income -focused investment cycle that underscores the importance of strategic investment decisions and careful asset selection.

Experience has shown that consumer and investor behavior can quickly change during periods of heightened volatility. Lending or investment decisions should consider the potential for a continuation of recent volatility, which may affect market conditions disproportionately, depending on asset class.

It is important to note that the conclusions set out in this report are valid as at 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.

Executive Summary

An extraordinary assumption is defined as “ an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.” 1
• The subject property is improved with a community garden and a coffee shop. At the request of the client, this valuation is limited to the underlying land only. No consideration has been given to the improvements.
• This valuation is limited to the underlaying land only. We have assumed that the subject is vacant unentitled land.
• The use of these extraordinary assumptions may have impacted the assignment result.

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

The subject property is owned by the City of Santa Ana and. In 2020 the City of Santa Ana entered into a ground lease with Thrive Santa Ana Community Land Trust who subsequently developed a micro-farm on the site. It is our understanding that the Thrive Santa Ana Community Land Trust is interested in purchasing the underlying land from the City of Santa Ana.

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.

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 referr ed to as exposure time. Exposure time always precedes the date of value, with the underlying premise being the time a property would have been on the market prior to the date of value, such that it would sell at its appraised value as of the date of value. On a prospective basis, the term marketing time is most often used. The exposure/marketing time is a function of price, time, and use. It is not an isolated estimate of time alone.

1 The Appraisal Foundation, USPAP, 2024 Edition (Effective January 1, 2024) 2 The Appraisal Foundation, USPAP, 2024 Edition (Effective January 1, 2024) Executive Summary

CBRE VALUATION & ADVISORY SERVICES vi © 2025 CBRE, INC
The following table presents the information derived from these sources.

EXPOSURE/MARKETING TIME DATA
CBRE Exposure Time Estimate
CBRE Marketing Period Estimate
Various Sources Compiled by CBRE
3 - 6 Months
3 - 6 Months

Table of Contents

Certification ........................................................................................................................................................................ i Subject Photographs ...................................................................................................................................................... ii Executive Summary ....................................................................................................................................................... iv Table of Contents .......................................................................................................................................................... vii Scope of Work .................................................................................................................................................................... 1 Area Analysis .................................................................................................................................................................... 5 Neighborhood Analysis ................................................................................................................................................. 7 Site Analysis .................................................................................................................................................................... 10 Tax and Assessment Data .......................................................................................................................................... 14 Market Analysis .............................................................................................................................................................. 15 Highest and Best Use .................................................................................................................................................. 20 Land Value ........................................................................................................................................................................21 Reconciliation of Value ................................................................................................................................................ 26 Assumptions and Limiting Conditions ................................................................................................................... 27

ADDENDA
Land Sale Data Sheets
Qualifications
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.

This appraisal is to be used for potential disposition and no other use is permitted.

The client is City of Santa Ana, Community Development Agency.

This appraisal is to be used by City of Santa Ana, Community Development Agency. No other user(s) may rely on our report unless as specifically indicated in this report.

Intended users are those who an appraiser intends will use the appraisal or review report. In other words, appraisers acknowledge at the outset of the assignment that they are developing their expert opinions for the use of the intended users they identify. Although the client provides information about the parties who may be intended users, ultimately it is the appraiser who decides who they are. This is an important point to be clear about: The client does not tell the appraiser who the intended users wil l 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 on any reports produced by CBRE under this Agreement is extended solely to parties and entities expressly acknowledged in a signed writing by CBRE as Intended Users of the respective reports, provided that any conditions to such acknowledgement required by CBRE or hereunder have been satisfied. Parties or entities other than Intended Users who obtain a copy of the report or any portion thereof (including Client if it is not named as an Intended User), whether as a result of its direct dissemination or by any other means, may not rely upon any opinions or conclusions contained in the report or such portions thereof, and CBRE will not be responsible for any unpermitted use of the report, its conclusions or contents or have any liability in connection therewith.

3 Appraisal Institute, The Appraisal of Real Estate, 15th ed. (Chicago: Appraisal Institute, 2020), 40.

Scope of Work

The purpose of this appraisal is to develop an opinion of the market value of the subject property . This valuation is limited to the underlying land only and no consideration has been given to the improvements.

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;

4. 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

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

The property is identified through the following sources:
• assessor’s records
• legal description

Nicole Galvez 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.

CBRE reviewed the following:

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.

Scope of Work

CBRE VALUATION & ADVISORY SERVICES 3 © 2025 CBRE, INC
• applicable tax data
• zoning requirements
• flood zone status
• demographics
• comparable data

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.

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

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 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.

Scope of Work

CBRE VALUATION & ADVISORY SERVICES 4 © 2025 CBRE, INC
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 val ue indications, but it can be used to establish land value when the number of vacant land sales is inadequate.

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

For the purposes of this analysis, we have utilized the sales comparison approach . Since our valuation is limited to the underlying land, the cost and income capitalization approaches are not applicable.

Area Analysis

Population
Source: ESRI, downloaded on Oct, 30 2025
The subject is located in the Los Angeles-Long Beach-Anaheim, CA Metropolitan Statistical Area. Key information about the area is provided in the following tables.

The area has a population of 12,879,186.

Population has increased by 50,379 since 2010,
reflecting an annual increase of 0.0%. Population
is projected to decrease by 111,434 between 2024
and 2029, reflecting a 0.2% annual population
decline.
12,828,807 12,879,186 12,767,752
0 2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
2010 2024 2029

POPULATION BY YEAR
Source: ESRI

Area Analysis

CBRE VALUATION & ADVISORY SERVICES 6 © 2025 CBRE, INC
Income
Education
Employment
Source: ESRI, downloaded on Oct 30, 2025; BLS.gov dated Aug 1, 2025 (preliminary) The area includes a total of 6,530,147 employees and has a 5.9% unemployment rate. The top three industries within the area are Health Care/Social Assistance, Prof/Scientific/Tech Services and Retail Trade, which is a combined total of 33% of the workforce.

The area features an average household income of
$139,051 and a median household income of
$97,753. Over the next five years, median
household income is expected to increase by

13.1%, or $2,565 per annum.

A total of 40.4% of individuals over the age of 24
have a college degree, with 26.0% holding a
bachelor's degree and 14.4% holding a graduate
degree.
$97,753
$110,577
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
2024 2029

MEDIAN INCOME BY YEAR

POPULATION BY DEGREE
Bachelor's Degree
Graduate Degree
Other
0% 2% 4% 6% 8% 10% 12% 14% 16%
Other Services (excl Publ Adm)
Admin/Support/Waste Mgmt Srvcs
Transportation/Warehousing
Construction
Accommodation/Food Services
Educational Services
Manufacturing
Retail Trade
Prof/Scientific/Tech Services
Health Care/Social Assistance
Source: ESRI
Source: ESRI
Source: ESRI

In summary, the area is forecasted to experience a decrease in population and an increase in household income.

Neighborhood Analysis

The subject is in the city of Santa Ana and is considered a suburban location. The city of Santa Ana is situated in northern Orange County.

Neighborhood Analysis

The neighborhood boundaries are detailed as follows:

North: Cities of Garden Grove and Orange
South: 405 Freeway
East: SR 55 Freeway
West: City of Westminster

The subject property is located less than one block south of West 1st Street, which is a major arterial. The immediate area is a combination primarily of retail uses and single -family residential uses. The County of Orange Social Services Agency is located on the south side of Walnut Avenue, south of the subject property. East of the subject is primarily single-family residential uses. There is an automotive repair shop to the adjacent west of the subject and a gas station and convenience store to the ad jacent north of the subject.

Primary access to the subject neighborhood is provided by the I-5 and 405 Freeways. State Routes 22 and 55 also traverse the City. Major east/west arterials include Westminster Avenue, West 1 st Street, and Mc Fadden Avenue. Major north/south arterials include South Flower Street, South Bristol Street, and North Harbor Boulevard. The 5 Freeway is accessible from West 1st Street about three miles east of the subject property.

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

Neighborhood Analysis

CBRE VALUATION & ADVISORY SERVICES 9 © 2025 CBRE, INC
1901 West Walnut Street
Santa Ana, CA 92703
Population
2029 Total Population 54,112 337,383 706,880 12,767,752 2024 Total Population 54,075 337,944 701,959 12,879,186 2010 Total Population 58,939 359,945 703,097 12,828,807 2000 Total Population 63,979 373,486 702,911 12,365,375 Annual Growth 2024 - 2029 0.01% -0.03% 0.14% -0.17%
Annual Growth 2010 - 2024 -0.61% -0.45% -0.01% 0.03%
Annual Growth 2000 - 2010 -0.82% -0.37% 0.00% 0.37%
Households
2029 Total Households 11,267 87,343 212,972 4,618,648 2024 Total Households 11,035 85,547 206,713 4,551,896 2010 Total Households 10,422 79,109 186,357 4,233,969 2000 Total Households 10,730 79,015 182,541 4,068,976 Annual Growth 2024 - 2029 0.42% 0.42% 0.60% 0.29%
Annual Growth 2010 - 2024 0.41% 0.56% 0.74% 0.52%
Annual Growth 2000 - 2010 -0.29% 0.01% 0.21% 0.40%
Income
2024 Median Household Income $91,214 $90,454 $95,149 $97,753 2024 Average Household Income $114,063 $113,842 $121,947 $139,051 2024 Per Capita Income $23,687 $29,034 $36,051 $49,239
2024 Pop 25+ College Graduates 4,298 45,652 142,059 3,709,056 Age 25+ Percent College Graduates - 2024 12.3% 20.1% 29.2% 40.4% Source: ESRI

SELECTED NEIGHBORHOOD DEMOGRAPHICS
Los Angeles-
Long Beach-
Anaheim, CA
Metropolitan
Statistical Area
1 Mile Radius 3 Mile Radius 5 Mile Radius

The area is in the stable stage of its life cycle. In keeping with the principle of conformity, we expect neighborhood land uses to continue to be similar to the present use.

Site Analysis

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

SITE SUMMARY AND ANALYSIS
Physical Description
Gross Site Area 0.38 Acres 16,632 Sq. Ft.

Net Site Area 0.38 Acres 16,632 Sq. Ft.

Primary Road Frontage West Walnut Street 174 Feet
Secondary Road Frontage South Daisy Avenue 75 Feet
Shape
Topography
Parcel Number(s)
Zoning District
Flood Map Panel No. & Date 06059C0257J 3-Dec-09
Flood Zone Zone X (Shaded)
Utilities Availability
Water Yes
Sewer Yes
Natural Gas Yes
Electricity Yes
Telephone/Cable/Internet Yes
Various sources compiled by CBRE
Providers
Santa Ana Water Services
Santa Ana Water Services
Southern California Gas Company
Southern California Edison
Various Providers
Irregular
Level, At Street Grade
C2, General Commercial
007-332-08

The subject is located at the northwest corner of West Walnut Street and South Daisy Avenue i n the City of Santa Ana.

The land area was obtained from the Assessor’s Records. The site is considered adequate in terms of size and utility.

The site is slightly irregular in shape with adequate frontage along two secondary streets. Although slightly irregular in shape, the site approximates a rectangle and the shape is not considered to impact the overall development potential of the site.

The subject property is accessible from both South Daisy Avenue and West Walnut Street.

Site Analysis

The site is 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.

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.

There are no known easements or encroachments impacting the site that are considered to affect the marketability or highest and best use. It is recommended that the client/reader obtain a current title policy outlining all easements and encroachments on the property, if any, prior to making a business decision.

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

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

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 adjacent land uses are summarized as follows:

North Gas station and convenience story
South: County of Orange Social Services Agency
West: Automotive repair shop
East: Single family residential

Site Analysis

The following chart summarizes the subject’s zoning requirements.

ZONING SUMMARY
Current Zoning C2, General Commercial
Legally Conforming Yes
Uses Permitted Various retail and service uses, professional and administrative offices.

Zoning Change Not likely
Category Zoning Requirement
Minimum Lot Size 15,000 SF
Minimum Lot Width None stated; but 120 feet of street frontage is required Maximum Height 35 FT
Minimum Setbacks
Front Yard 15 FT
Street Side Yard Corner lots adjacent to a street require 15 feet Interior Side Yard None stated
Rear Yard None stated
Maximum Floor Area Ratio (FAR) 0.5:1.00
Parking Requirements Varies by use; retail services require five spaces per 1,000 SF of GFA
Source: City of Santa Ana Planning Dept.

The subject property has a General Plan Land Use designation of General Commercial. The zoning is in conformance with the General Plan. Additional information may be obtained from the appropriate governmental authority. For purposes of this appraisal, CBRE has assumed the information obtained is correct.

Zoning allows a variety of uses, including various retail uses. Development is permitted at a FAR of

0.50:1.00, which equates to a development potential of 8,316 square feet of building area.

The subject property is a parcel of land located at the northwest corner of West Walnut Street and South Daisy Street, which are both secondary streets. The site is level at grade and all utilities are on site. The subject is zoned C2, which allows a variety of retail and service uses. The site appears adequate to support development consistent with zoning.

Site Analysis

Tax and Assessment Data

In California, privately held real property is typically assessed at 100% of full cash value (which is interpreted to mean market value of the fee simple estate) as determined by the County Assessor. Generally, a reassessment occurs only when a property is sold (or transferred) or when new construction occurs (as differentiated from replacing existing construction). In the case of long-term ground leases, the general rule is that a reassessment is made at the time of assigning or terminating a lease where the remaining term is more than 35 years. For reassessment purposes, the lease term includes all options to extend.

Assessments for properties that were acquired before the tax year 1975-1976 were stabilized as of the tax year 1975-1976. Property taxes are limited by state law to 1% of the assessed value plus voter -approved obligations and special assessments. If no sale (or transfer) occurs or no new building takes place, assessments may not increase by more than 2% annually.

The subject property is owned by the City of Santa Ana and is exempt from assessment. The 2025/2026 tax rate for the area is 1.01477%.

Market Analysis

The subject property can support development of various retail uses and service uses. We have provided a brief overview of the improved retail market in the subject area. We recognize that this analysis is for the improved markets; however, land tends to follow the trends of the improved markets.

The subject property is located within the Santa Ana submarket, which is part of the greater Orange County Metro market as defined by CoStar. The following data is for the Santa Ana submarket as of 2nd Quarter 2025.

Important characteristics of the Santa Ana retail market are summarized below:

SANTA ANA RETAIL SUBMARKET
Year Ending Inventory
(SF)
Completions
(SF)
Occupied Stock
(SF) Occupancy Asking Rent
($/SF NNN)
Asking Rent
Change
Net Absorption
(SF)
2020 7,051,940 -1,759 6,810,592 96.6% $28.63 2.36% -30,160 2021 7,051,940 0 6,911,261 98.0% $29.70 3.76% 100,669
2022 7,044,989 -6,951 6,883,509 97.7% $31.07 4.59% -27,752 2023 7,055,421 10,432 6,789,068 96.2% $32.16 3.53% -94,441 Q1 2024 7,055,421 0 6,766,996 95.9% $32.54 1.18% -22,072 Q2 2024 7,057,921 2,500 6,734,708 95.4% $32.80 0.79% -32,288 Q3 2024 7,057,921 0 6,716,671 95.2% $33.15 1.06% -18,037 Q4 2024 7,057,921 0 6,707,206 95.0% $33.36 0.65% -9,465 2024 7,057,921 2,500 6,707,206 95.0% $33.36 3.73% -81,862 Q1 2025 7,060,921 3,000 6,749,179 95.6% $33.71 1.04% 41,973 Q2 2025 7,060,921 0 6,676,035 94.5% $33.69 -0.05% -73,144 Q3 2025* 7,059,458 -1,463 6,708,831 95.0% $33.88 0.56% 32,847 Q4 2025* 7,057,073 -2,385 6,704,049 95.0% $34.11 0.67% -4,323 *Future Projected Data according to Costar
Source: Costar, 2nd Quarter 2025

The Santa Ana retail submarket consists of approximately 7,060,921 square feet of retail space. The current submarket inventory represents approximately 4.9% of the overall market inventory. The following observations were noted from the table above:
• As of 2nd Quarter 2025, there was approximately 6,676,035 square feet of occupied retail space (including sublet space), resulting in an occupancy rate of 94.5% for the submarket. This reflects a decrease from the previous quarter’s occupancy of 95.6%, and a small decrease from an occupancy rate of 95.0% from last year. The submarket occupancy is below the 96.0% market occupancy.
• The submarket experienced negative 73,144 square feet of net absorption for the current quarter.

This indicates a decline from the previous quarter’s positive 41,973 square feet of net absorption, and an improvement from the negative 81,862 square feet of net absorption from a year ago.

Overall, the submarket has experienced negative 31,171 square feet of net absorption for the current year-to-date period. The submarket’s current net absorption of negative 73,144 square feet compares favorably with the overall market net absorption of negative 163,090 square feet. • The submarket had zero completions for the current quarter, which indicates a decrease from the previous quarter’s completions of positive 3,000 square feet, and a decrease from the completions of positive 2,500 square feet from last year.

Market Analysis

CBRE VALUATION & ADVISORY SERVICES 16 © 2025 CBRE, INC
• The submarket achieved average asking rent of $33.69 per square foot, which indicates a small decrease from the previous quarter’s asking rent of $33.71 per square foot, and an increase from the asking rent of $33.36 per square foot from last year. The submarket’s current asking rent of $33.69 per square foot is below the overall market asking rent of $39.17 per square foot.

Submarket Inventory is projected to be 7,057,073 square feet at the end of the current year, which represents a small decrease from the previous year’s submarket inventory of 7,057,921 square feet .

Inventory for next year is projected to be 7,047,728 square feet, reflecting a small decrease from the current year.

Market Analysis

Submarket occupancy is projected to be 95.0% at the end of the current year, which represents no change from the previous year’s submarket occupancy of 95.0%. Submarket occupancy for next year is projected to be 95.4%, reflecting an increase from the current year.

Net absorption in the submarket is projected to be negative 2,647 square feet at the end of the current year, reflecting an improvement from the previous year’s net absorption of negative 81,862 square feet . Net Market Analysis

CBRE VALUATION & ADVISORY SERVICES 18 © 2025 CBRE, INC
absorption for next year is projected to be positive 21,630 square feet, indicating an improvement from the current year.

The submarket is projected to achieve completions of negative 848 square feet at the end of the current year, which indicates a decline from the previous year’s completions of positive 2,500 square feet . The submarket is projecting completions of negative 9,345 square feet for next year, which indicates a decline from the current year.

Market Analysis

The submarket is projected to achieve average asking of $34.11 per square foot at the end of the current year, which represents an increase from the previous year’s asking rent of $33.36 per square foot . The submarket is projected to achieve average asking rent of $35.27 per square foot , reflecting an increase from the current year.

As of Q2 2025, the average asking rent was reported at $ 33.69 per square foot per year which is a slight increase from $32.80 the year prior. For 2023, an increase of 3.53% was reported for asking rents and an increase of 3.73% was reported for 2024. An increase of 0. 67% is projected for 2025. While average asking rents have shown increases since 2023, this is tempered slightly by limited new completions reported in 2024. There w as 3,000 square feet of new retail space completed in Q1 2025, and no new completions in Q2 2025. Absorption was positive in Q1 2025, but negative in Q2 2025. Absorption was negative overall for 2024. While rental rates are seeing growth, this is tempered by the negative absorption rates. Occupancy rates have been relatively stable since the beginning of 2024. Overall, this indicates a relatively stable retail market.

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.

The subject property is zoned C2, General Commercial, which allows a variety of retail and service uses and professional and administrative offices.

The subject is adequately served by utilities, and has an adequate shape and size, sufficient access, and other necessary attributes for development consistent with zoning . Existing structures on similar sites provides additional evidence for the physical possibility of development.

Potential uses of the site include retail or office 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. While there is a government office use on the south side of Walnut Street, there are no other office uses in the area. Additionally, there is no evidence of new office development in the subject area. There was evidence of new retail development along Bri stol Street northeas t of the subject.

Development of a retail use on the site is considered financially feasible.

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. The highest and best use of the site, as vacant, would be to develop with a retail use.

Land Value

Our sales research focused on transactions within the following parameters:
• Location: Within a 5-mile radius.
• Size: 5,000 square feet to 55,000 square feet. We initially searched for sites that are one -acre (43,560 square feet) and smaller, but limited data was found so we expanded our parameters. • Use: We focused our search on site with a similar commercial zoning designation. • Transaction Date: December 2023 to the present.

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.

Land Value

SUMMARY OF COMPARABLE LAND SALES
Interest Actual Sale Size Size Price
No. Property Location Type Date Transferred Zoning Price (Acres) (SF) Per SF 1 Redevelopment Site
421 South Bristol Street
Santa Ana, CA 92703
Sale Feb-25 Fee Simple Commercial (SP-1) $1,050,000 0.37 16,100 $65.22 2 Bristol Specific Plan Site
1421 N Bristol Street
Santa Ana, CA 92706
Sale Dec-24 Fee Simple SP-1 $878,000 0.30 13,016 $67.46 3 Vacant Site Zoned CL
2821 Bristol St
Costa Mesa, CA 92626
Sale Aug-24 Fee Simple CL $1,100,000 0.43 18,881 $58.26 4 Commercial Land
2202 East 1st Street
Santa Ana, CA 92705
Sale Jan-24 Fee Simple Commercial (C-2) $3,345,500 1.30 56,628 $59.08 5 Near Future Harbor Mixed-Use
Transit Corridor
112 E. Camile Street
Santa Ana, CA 92701
Sale Dec-23 Fee Simple CSM - Commercial
South Main
$435,000 0.15 6,621 $65.70
Subject 1901 West Walnut Street
Santa Ana, CA 92703
--- --- C2, General
Commercial
--- 0.38 16,632 ---
1 Adjusted sale price for cash equivalency and/or development costs (where applicable) Compiled by CBRE
Transaction

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

Market Conditions
Changes in the economic environment over time that affect the appreciation and depreciation of real estate.

Based on our analysis, which includes discussions with market participants, retail rental rates (for the improved market) saw increases in 2023 and 2024. Based on our discussions with market participants, land has not seen the same increases and values have been relatively stable since early 2025. We have utilized an upward adjustment of 2.5% annually from January 2023 through December 2024 and have held values stable from January 2025 to the present to account for market conditions.

Size
Considers the inverse relationship that often exists between parcel size and unit value. Comparable 4 is larger than the subject and warrants and upward adjustment. Comparable 5 is smaller than the subject and warrants a downward adjustment.

Shape
The subject property has a slightly irregular shape. Comparables 3 and 4 have long and narrow shapes that are considered inferior when compared to the subject property. Comparables 3 and 4 warrant upward adjustments.

Land Value

CBRE VALUATION & ADVISORY SERVICES 23 © 2025 CBRE, INC
Corner/Access
The subject property has a corner orientation. Comparables 2, 3, 4, and 5 have interior orientation and are considered inferior when compared to the subject. Comparables 2, 3, 4, and 5 warrant upward adjustments.

Visibility/Frontage
The subject property is situated along a two secondary streets. Comparables 1, 2, and 4 have frontage along arterial streets and have superior visibility when compared to the subject. Comparables 1, 2, and 4 warrant downward adjustments.

Location
Market or submarket area influences on sale price; and surrounding land use influences. We have also considered asking rental rates in determining a location adjustment. Comparable 3 is located in Costa Mesa, which is considered superior when compared to the subject and warrants a downward adjustment.

Zoning/Density
Density of development and productivity of the land can be impacted by differences in land use regulations, although land may be similarly zoned. Comparable 3 has a commercial zoning designation that is more restrictive than the subject’s zoning designation. Comparable 3 warrants an upward adjustment.

Entitlements
Planning approvals in place at the time of sale. Comparable 4 sold with a completed EIR, which is superior to the subject and warrants a downward adjustment.

Land Value

Based on our comparative analysis, the following chart summarizes the adjustments warranted to each comparable.

LAND SALES ADJUSTMENT GRID
Comparable Number 1 2 3 4 5 Subject
Transaction Type Sale Sale Sale Sale Sale ---
Transaction Date Feb-25 Dec-24 Aug-24 Jan-24 Dec-23 --- Interest Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Zoning Commercial (SP-1) SP-1 CL Commercial (C-2) CSM - Commercial South Main
C2, General
Commercial
Actual Sale Price $1,050,000 $878,000 $1,100,000 $3,345,500 $435,000 --- Adjusted Sale Price 1 $1,050,000 $878,000 $1,100,000 $3,345,500 $435,000 --- Size (Acres) 0.37 0.30 0.43 1.30 0.15 0.38
Size (SF) 16,100 13,016 18,881 56,628 6,621 16,632
Price Per SF $65.22 $67.46 $58.26 $59.08 $65.70 ---
Price ($ PSF) $65.22 $67.46 $58.26 $59.08 $65.70
Property Rights Conveyed 0% 0% 0% 0% 0%
Financing Terms 1 0% 0% 0% 0% 0%
Conditions of Sale 0% 0% 0% 0% 0%
Market Conditions (Time) 0.0% 0.0% 0.0% 0.0% 0.0%
Subtotal $65.22 $67.46 $58.26 $59.08 $65.70
Size -- -- -- Inferior Superior
Shape -- -- Inferior Inferior --
Corner/Access -- Inferior Inferior Inferior Inferior
Visibitlity/Frontage Superior Sig. Superior -- Superior -- Topography -- -- -- -- --
Location -- -- Superior -- --
Zoning/Density -- -- Inferior -- --
Entitlements -- -- -- Superior --
Overall Comparison Superior Superior Inferior Inferior Superior 1 Adjusted sale price for cash equivalency and/or development costs (where applicable) Compiled by CBRE

Land Value

Based on the foregoing discussion of comparability, the market data and the subject property may be arrayed as follows:

Data No. Overall Comparison Time Adjusted Price/SF
2 Superior $67.46
5 Superior $65.70
1 Superior $65.22
-- SUBJECT --
4 Inferior $59.08
3 Inferior $58.26
Compiled by CBRE

LAND VALUE ARRAY

The preceding analysis indicates an overall value range for the subject of $58.26 to $67.46 per square foot.

Comparables 1 and 2 are superior primarily due to their superior visibility/frontage. Comparable 5 is superior as a result of its smaller size. Comparable 3 is considered inferior due to its long and narrow shape, interior orientation, and inferior zonin g. These factors are partially offset by tis superior location.

Comparable 4 is considered inferior as a result of its larger size, and inferior shape. These factors are partially offset by its superior visibility/frontage. We have bracketed the range of value for the subject between Comparable 4, which is inferior at $59.08 per square foot and Comparable 1, which is superior at $65.22 per square foot. Based on our analysis, we have concluded as follows:

CONCLUDED LAND VALUE
$ PSF Subject SF Total
$62.00 x 16,632 = $1,031,184
Rounded $1,030,000
Compiled by CBRE

Reconciliation of Value

In the sales comparison approach, the subject is compared to similar properties that have been sold recently or for which listing prices or offers are known. 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 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 Only Fee Simple Estate October 24, 2025 $1,030,000 Compiled by CBRE

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 e xterior 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 t hat may arise out of defects in title should be sought from a qualified title insurance company.
(ii) Existing improvements on the subject property conform to applicable local, state, and federal building codes and ordinances, are structurally sound and seismically safe, and have been built and repaired in a workmanlike manner according to standard practices; all building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required; and the roof and exterior are in good condition and free from intrusion by the elements. CBRE has not retained independent structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no representations relative to the condition of improvements. CBRE appraisers are not engineers and are not qualified to judge matters of an engineering nature, and furthermore structural problems or building system problems may not be visible. It is expressly assumed that any purchaser would, as a precondition to closing a sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity of building systems.
(iii) Any proposed improvements, on or off -site, as well as any alterations or repairs considered will be completed in a workmanlike manner according to standard practices. (iv) Hazardous materials are not present on the subject property. CBRE is not qualified to detect such substances.

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

Assumptions and Limiting Conditions

CBRE VALUATION & ADVISORY SERVICES 28 © 2025 CBRE, INC
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 assump tions is discovered, such information could have a substantial negative impact on the Report and any conclusions stated therein. Accordingly, if any such information is subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. CBRE assumes no responsibility for any conditions regarding the foregoing, or for any expertise or knowledge required to discover them. Any user of the Report is urged to retain an expert in the applicable field(s) for information regarding such conditions.

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, ren t 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 permit.

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 anecdot al 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 proper ty. 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 independe nt 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 decision based upon the Report that the client, intended user, or any buyer, seller, investor, or landing institution may undertake related to the subject proper ty, and CBRE has not been compensated to assume any of these risks. Nothing contained in the Report shall be construed as any direct or indirect recommendation of CBRE to buy, sell, hold, or finance the subject property.

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 (“ESG”), beyond that customarily employed by real estate appraise rs. Any user of the Report is advised to retain experts in areas that fall outside the scope of the real estate appraisal profession for such matters.

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 awa re 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.

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.

Assumptions and Limiting Conditions

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.

Addenda

Sale Land - Retail / Commercial No. 1
Property Name Redevelopment Site
Address 421 South Bristol Street
Santa Ana, CA 92703
County Orange
Govt./Tax ID 008-232-36 & -32
Area Measurement(NRA) 1,367.00
Land Area Net 0.370 ac/ 16,100 sf
Land Area Gross 0.440 ac/ 19,167 sf
Site Development Status Finished
Utilities All to Site
Maximum FAR N/A
Max Allow Bldg Units/Density N/A
Min Land Bldg Ratio N/A
Shape Rectangular
Primary Frontage 176 ft on South Bristol
Secondary Frontage 107 ft on West Myrtle
Topography Level, At Street Grade
Flood Zone Class Zone X (Shaded)
Flood Panel No./ Date 06059C0257J/ Dec 2009
Zoning Commercial (SP-1)
Entitlement Status None
Proposed Use or Development N/A
Transaction Details
Type Sale Primary Verification CoStar, Grand Deed, CoreLogic Interest Transferred Fee Simple Transaction Date 02/18/2025 Condition of Sale None Recording Date N/A
Recorded Buyer Han Properties, LLC, a California Limited Liability Company
Sale Price $1,050,000
Buyer Type N/A Financing Cash to Seller
Recorded Seller Bristol HC Dev Partners LLC, a California Limited Liability Company
Cash Equivalent $1,050,000
Marketing Time N/A Capital Adjustment $0
Listing Broker N/A % Interest Purchased 100%
Doc # 55843 Adjusted Price $1,050,000
Adjusted Price / ac and
/ sf
$2,840,909 / $65.22
Adjusted Price/ FAR N/A
Adjusted Price/ Unit N/A
Comments
This is the sale of a redevelopment site along South Bristol Street in Santa Ana. The site measures 16,100 net square feet and was improved with a small building measuring 1, 367 square feet at the time of sale. The site is zoned for commercial uses by the city of Santa Ana. The sale price was $1,050,000, or approximately $65 per net square foot. No brokers were involved in the sale. The buyer is a dentist who planned to develop their own dental office use to owner-occupy.

Sale Land - Mixed-Use No. 2
Property Name Bristol Specific Plan Site
Address 1421 N Bristol Street
Santa Ana, CA 92706
County Orange
Govt./Tax ID 405-252-32
Area Measurement(NRA)
Land Area Net 0.299 ac/ 13,016 sf
Land Area Gross 0.299 ac/ 13,016 sf
Site Development Status Semi-Finished
Utilities To the site
Maximum FAR N/A
Max Allow Bldg Units/Density N/A
Min Land Bldg Ratio N/A
Shape Rectangular
Primary Frontage N/A
Secondary Frontage N/A
Topography Level, At Street Grade
Flood Zone Class Zone X (Shaded)
Flood Panel No./ Date 06059C0144J/ Dec 2009
Zoning SP-1
Entitlement Status None
Proposed Use or Development Retail
Transaction Details
Type Sale Primary Verification Listing Broker, Public Records, CoStar Interest Transferred Fee Simple Transaction Date 12/04/2024 Condition of Sale None Recording Date 12/11/2024
Recorded Buyer Bayrich Development Usa Llc Sale Price $878,000 Buyer Type N/A Financing Cash to Seller
Recorded Seller GONZALES ROBERT P & MELVA M Cash Equivalent $878,000 Marketing Time 8 Month(s) Capital Adjustment $0
Listing Broker Tom Papoulias/Coldwell Banker % Interest Purchased 100% Doc # 322337 Adjusted Price $878,000
Adjusted Price / ac and
/ sf
$2,938,420 / $67.46
Adjusted Price/ FAR N/A
Adjusted Price/ Unit N/A
Comments
This is a 0.3-acre retail site that is located along Bristol Street in Santa Ana. The site is semi-finished with curbs, gutters, partially graded and utilities at the street. The site is located in SP-1 specific plan which allows for primarily retail uses. The site was listed for $1,095,000 and sold for $878,000.

Sale Land - Office No. 3
Property Name Vacant Site Zoned CL
Address 2821 Bristol St
Costa Mesa, CA 92626
County Orange
Govt./Tax ID 418-181-11
Area Measurement(NRA)
Land Area Net 0.433 ac/ 18,881 sf
Land Area Gross 0.433 ac/ 18,881 sf
Site Development Status Finished
Utilities At Street
Maximum FAR N/A
Max Allow Bldg Units/Density N/A
Min Land Bldg Ratio N/A
Shape Rectangular
Primary Frontage N/A
Secondary Frontage N/A
Topography Generally Level
Flood Zone Class Zone X (Unshaded)
Flood Panel No./ Date 06059C0267J/ Dec 2009
Zoning CL
Entitlement Status N/A
Proposed Use or Development Parking lot
Transaction Details
Type Sale Primary Verification Listing Broker, Public records, Grant Deed
Interest Transferred Fee Simple Transaction Date 08/14/2024 Condition of Sale Normal Recording Date 08/27/2024
Recorded Buyer 2821 Bristol Site LLC Sale Price $1,100,000 Buyer Type Private Investor Financing N/A
Recorded Seller GS BUILDING LP Cash Equivalent $1,100,000 Marketing Time 2 Month(s) Capital Adjustment $0
Listing Broker Matthew Wenzel, Marcus Millichap % Interest Purchased 100% Doc # 221121 Adjusted Price $1,100,000
Adjusted Price / ac and
/ sf
$2,538,071 / $58.26
Adjusted Price/ FAR N/A
Adjusted Price/ Unit N/A
Comments
A private individual sold this 0.43 acre lot to another private individual for $1,100,000 or $2,538,071.07 per acre. The property is zoned Commercial Limited which allows for light industrial and commercial uses. The site a narrow rectangular shape with a width of 50 feet and a depth of approximately 375 feet and is currently asphalt paved and utilized as a parking lot and the buyer does not currently have set plans for development. The property was on the market for 76 days with an original asking price of $1,200,000. The buyer did not utilize financing for the purchase.

Sale Land - Retail / Commercial No. 4
Property Name Commercial Land
Address 2202 East 1st Street
Santa Ana, CA 92705
County Orange
Govt./Tax ID 402-181-04
Area Measurement(NRA)
Land Area Net 1.300 ac/ 56,628 sf
Land Area Gross 1.300 ac/ 56,628 sf
Site Development Status Finished
Utilities At site
Maximum FAR N/A
Max Allow Bldg Units/Density 188 / 144.62
Min Land Bldg Ratio N/A
Shape Irregular
Primary Frontage 140 ft on First
Secondary Frontage N/A
Topography Level, At Street Grade
Flood Zone Class Zone X (Unshaded)
Flood Panel No./ Date 06059C0277J/ Dec 2009
Zoning Commercial (C-2)
Entitlement Status EIR Complete
Proposed Use or Development Senior Housing & Care
Transaction Details
Type Sale Primary Verification Deed/CoStar
Interest Transferred Fee Simple Transaction Date 01/30/2024 Condition of Sale None Recording Date 01/24/2024
Recorded Buyer AMG & Associates, LLC Sale Price $3,345,500 Buyer Type Developer Financing Cash to Seller
Recorded Seller Executive Car Leasing Company Cash Equivalent $3,345,500 Marketing Time N/A Capital Adjustment $0
Listing Broker N.A. % Interest Purchased 100%
Doc # 24-21264 Adjusted Price $3,345,500
Adjusted Price / ac and
/ sf
$2,573,462 / $59.08
Adjusted Price/ FAR N/A
Adjusted Price/ Unit $17,795
Comments
This is a 1.3-acre commercial site located along 1st Street in Santa Ana. The site is a deep and narrow lot, formerly used as a a car leasing lot, adjacent to a recently constructed senior housing development. The site is zoned C2 - Commercial and has direct access from East 1st Street. On January 22, 2024, the property sold for $3,345,500 or $59/site sf to a developer. Per public records, the planned development of the site is a senior living facility. No special conditions were noted.

Sale Land - Retail / Commercial No. 5
Property Name Near Future Harbor Mixed-Use Transit
Corridor
Address 112 E. Camile Street
Santa Ana, CA 92701
County Orange County
Govt./Tax ID 404-101-13
Area Measurement(NRA) 6,621.00
Land Area Net 0.152 ac/ 6,621 sf
Land Area Gross 0.152 ac/ 6,621 sf
Site Development Status Semi-Finished
Utilities To the Site
Maximum FAR N/A
Max Allow Bldg Units/Density N/A
Min Land Bldg Ratio N/A
Shape Rectangular
Primary Frontage N/A
Secondary Frontage N/A
Topography Level, At Street Grade
Flood Zone Class Zone X (Unshaded)
Flood Panel No./ Date 06059C0276J/ Dec 2009
Zoning CSM - Commercial South Main
Entitlement Status None
Proposed Use or Development N/A
Transaction Details
Type Sale Primary Verification Listing Broker
Interest Transferred Fee Simple Transaction Date 12/15/2023 Condition of Sale None Recording Date 12/15/2023
Recorded Buyer N/Av. Sale Price $435,000
Buyer Type End User Financing Market Rate Financing
Recorded Seller Raman Rampal Cash Equivalent $435,000
Marketing Time 1 Month(s) Capital Adjustment $0
Listing Broker Thomas Kadar - Keller Williams Costa Mesa, (949) 933-0488, [email protected]
% Interest Purchased 100%
Doc # N/Av. Adjusted Price $435,000
Adjusted Price / ac and
/ sf
$2,861,842 / $65.70
Adjusted Price/ FAR N/A
Adjusted Price/ Unit N/A
Comments
The sale is of a commercial lot consisting of 6,534 SF (0.15 acres), located mid-block along E. Camile Street within Santa Ana, near future harbor mixed-use transit corridor. The property is concrete paved and improved with a small building (875 SF) in the rear. The lot is gated with surrounding uses consisting of single- and multi-family developments and is zoned CSM - Commercial South Main. On December 15, 2023, the property sold for $435,000 or $66.57/SF of land to an owner/user. No special conditions were noted.

Addenda

PROFILES

VALUATION & ADVISORY SERVICES
Executive Vice President
Woodland Hills, CA
T +1 818 251 3669
E [email protected]
Professional Experience

Beth B. Finestone, MAI, AI-GRS, FRICS, CRE, is an Executive Vice President for CBRE's Valuation & Advisory Services (VAS). She has been appraising in Southern California since 1981, specializing in valuation and consulting services related to public agency and right-of-way clients and for major investment-grade commercial properties and special purpose properties. She also has extensive expertise in valuing large tracts of land for conservation, mitigation and other purposes.

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

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

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

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

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

PROFILES
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 43 rd 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.

PROFILES
 Appraisal of numerous surface and subsurface acquisitions were required on the Veteran’s Administration property for the construction of a subway station and tunnel easements for LACMTA’s Purple Line. Significant research was required relative to the VA specific plan and the highest and best use of the property. Consideration was given to damages and project benefits as well as the value of the parts acquired.  Appraisal of 50± miles of pipeline easement running through UPRR and BNSF rail corridors in Urban Los Angeles.  Multiple appraisal assignments for RCTC included:
 Appraisal of parcels under more than 50 separate ownerships affected by acquisitions and easements for the SR-91 Corridor Improvement Project through the City of Corona. The complete summary appraisal reports and appraisal summary statements included a valuation of the properties in the before and after condition. Some of the properties had significant severance damage analyses due to loss of building improvements, parking, loading, etc.  City of Riverside 69 kV Electrical Transmission Line Project: Initially valued 22 residential and commercial properties in the City of Riverside. These properties all had a three-foot-wide partial taking along their frontage to accommodate the construction of a 69 kV transmission line. This represented Phase One of this assignment. Phase Two involved the partial taking of land over seven properties owned by 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.

PROFILES

VALUATION & ADVISORY SERVICES
Vice President, Woodland Hills, CA
E [email protected]
Professional Experience
Nicole Galvez is a Vice President for CBRE’s Valuation & Advisory Services (VAS). Ms.

Galvez began her career in real estate appraisal in 2014.

Her services rendered include appraisal report preparation for vacant land, residential, commercial, industrial, and other income producing properties for institutional and acquisition purposes, partial acquisition valuation, including determination of severance damages and/or benefits for public projects, and preparation of cost studies for budget purposes involving public projects. Types of projects appraised include street widening, freeway, pipeline, and flood control.

Ms. Galvez is experienced in preparing appraisal reports that are compliant with the Uniform Appraisal Standards for Federal Land Acquisitions. She has extensive experience in valuing large tracts of land for conservation, mitigation, and other purposes. Nicole previously was a Senior Analyst for Integra Realty Resources – Los Angeles.

Courses Completed
Completed the following Appraisal Institute courses:
‒ Basic Appraisal Principles
‒ Basic Appraisal Procedures
‒ National Uniform Standards of Professional Appraisal Practice ‒ Real Estate Finance, Statistics, and Valuation Modeling ‒ Business Practices and Ethics
‒ General Appraiser Sales Comparison Approach
‒ General Appraiser Site Valuation and Cost Approach
‒ General Appraiser Income Capitalization Approach, Part I ‒ General Appraiser Income Capitalization Approach, Part II ‒ Advanced Income Capitalization
‒ General Appraiser Report Writing and Case Studies
Completed the following International Right of Way Association courses:
‒ Ethics and the Right of Way Profession
‒ Easement Valuation
‒ Principles of Real Estate Engineering
‒ The Valuation of Partial Acquisitions

‒ Licensed: California Certified
General Real Estate Appraiser
No. 3005597
‒ Member: Appraisal Institute,
Southern California Chapter
‒ Member: International Right of
Way Association
‒ M.B.A., University of Phoenix
‒ B.A., Business Administration,
California State University,
Northridge

CBRE Valuation & Advisory Services

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At CBRE, we offer more than expert appraisal services, we consult and advise to help you see the full picture of a property or portfolio.

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Property & Transaction Tax
Understand all aspects of value
− Assessment Reviews & Appeals
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Quality You Can Count On
Reliable valuations depend on accurate insights. Our quality and risk management (QRM) framework ensures the highest-quality reports and analyses, giving you confidence in our calculations.

Upfront conflict and
qualification checks

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and leadership reviews

Landmark training, practice
guidelines and governance

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of QRM experts

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Experience You Can Trust

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Santa Ana City CouncilFebruary 17, 2026

Santa Ana City Council
February 17, 2026