Agenda packet — City Council and Authorities Concurrent, April 21, 2026 (part 7 of 10)

This appraisal was prepared in conformance with the Uniform Standards of Professional Appraisal Practice (U.S.P.A.P.), and the Code of Professional Ethics and Standards of Professional Conduct of the Appraisal Institute . This appraisal report was also prepared in conformance with the Supplemental Instructions for the Appraisal of the Fair Market Value of Land, which was included as a part of the Scope of Work for this appraisal assignment by the client and intended user, the City of Santa Clara.

We certify that we have no present or contemplated future interest in the property beyond these estimates of value. We have performed no services, as appraisers, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.

Your attention is directed to the Hypothetical Conditions, Extraordinary Assumptions, and General Conditions and Assumptions sections of this report. Acceptance of this report constitutes an agreement with these conditions and assumptions. In particular, I note the following:

Hypothetical Conditions:

• The subject of this appraisal report is three hypothetical one-acre lots in each of the City’s zip codes (95050, 95051, and 95054). It is a hypothetical condition of this appraisal report that these lots exist as a finished lot, and are rated average in all physical, locational and legal aspects in relation to the dataset.

• It is a hypothetical condition of this appraisal report that the subject lots are able to support all legally permissible uses analyzed in this appraisal report, ranging from very low density residential to commercial/industrial.

Extraordinary Assumptions:

• There are no extraordinary assumptions included in this appraisal report.

3990 Old Town Avenue I Suite B104 I San Diego, California 92110 I 619.933.5040 I www.thedoreg roup.com

Ms. Saporito
City of Santa Clara
February 27, 2026

Page 3 ends

Based on the appraisal described in the accompanying report, subject to the Hypothetical Conditions, Extraordinary Assumptions, and General Conditions & Assumptions, I have made the following value conclusion:

Final Reconciliation
Zip Code
Reconciled Fair Market
Value
95051 $5,573,000
95050 $5,359,000
95054 $5,037,000

The market exposure preceding December 31 , 2025, would have been 6 months and the estimated marketing period as of December 31, 2025, is 6 months for the Fair Market Value.

Thank you for the opportunity of submitting this appraisal. If I can be of further service, please do not hesitate to call.

Respectfully submitted,
The Doré Group, Inc.

Lance W. Doré, MAI, FRICS
President / CEO
CA-AG002464
[email protected]

Calvin Farris
Certified General Appraiser
CA-AG3013216
[email protected]

C
3990 Old Town Avenue I Suite B104 I San Diego, California 92110 I 619.933.5040 I www.thedoreg roup.com

TABLE OF CONTENTS

Table of Contents ............................................................................................................................ 5 Summary of Salient Facts and Conclusions ..................................................................................... 6 Definitions of Market Value and Fair Market Value ........................................................................ 8 Hypothetical Conditions and Extraordinary Assumptions .............................................................. 9 General Conditions and Assumptions ........................................................................................... 10 Scope of Work ............................................................................................................................... 13 Regional Map ............................................................................................................................ 16 Regional Description – Santa Clara County ................................................................................... 17 Area Map ................................................................................................................................... 24 Area Description — City of Santa Clara ......................................................................................... 25 Single-Family Housing Market Overview (Santa Clara) ................................................................. 29 Multi-Family (Medium- and High-Density Residential) ................................................................. 31 Commercial (Retail and Office) ..................................................................................................... 33 Industrial (Flex, Logistics, R&D) ..................................................................................................... 35 Highest and Best Use ..................................................................................................................... 38 Valuation Methodology ................................................................................................................. 40 Single Family (Low Density Residential) Land Comparables Adjustment Grid .............................. 45 Medium Density Residential Land Comparables Adjustment Grid ............................................... 51 High Density Residential Land Comparables Adjustment Grid ..................................................... 57 Commercial Land Comparables Adjustment Grid ......................................................................... 63 Land Comparable Summary Table ............................................................................................ 66 Industrial Land Comparables Adjustment Grid ............................................................................. 69 Weighted Average Analysis ........................................................................................................... 71 Weighted Average Conclusion .................................................................................................. 72 Zip Code Weighting Analysis ......................................................................................................... 73 Zip Code Trend Analysis ............................................................................................................ 73 Concluded zip code adjustments (95050 baseline) .................................................................. 74 Final Reconciliation........................................................................................................................ 75 Certification Statement ................................................................................................................. 76 Addenda ........................................................................................................................................ 78 3990 Old Town Avenue I Suite B104 I San Diego, California 92110 I 619.933.5040 I www.thedoreg roup.com

TDG 2026 001 6

SUMMARY OF SALIENT FACTS AND CONCLUSIONS

SUBJECT:

Three hypothetical one-acre lots, one in each of the City’s three zip codes (95050, 95051, and 95054)
CLIENT:

City of Santa Clara
DATE OF VALUE: December 31, 2025

DATE OF REPORT:

February 27, 2026
INTEREST APPRAISED: Fee Simple Interest

PURPOSE OF APPRAISAL: The purpose of this appraisal is assisting the City of Santa Clara in determining park impact fees

INTENDED USE:

The intended use of this appraisal is to determine the fair market value of the hypothetical lots as defined in this report

INTENDED USER(S):

The City of Santa Clara

APPRAISAL HISTORY:

The City of Santa Clara has contracted an appraisal of this type for several subsequent years. The 2024 report,
developed by Frank Schmidt and Associates , and effective December 31st, 2024, was made available for our review.

CURRENT LISTING /
CONTRACT(S):

We have assumed no current contracts in place on the
hypothetical subject properties.

HIGHEST AND BEST USE
Site As Vacant:

Land for Development (See Hypothetical Conditions)
As Improved: Land for Development (See Hypothetical Conditions) THE )0~~ GROUP

TDG 2026 001 7

PROPERTY (HYPOTHETICAL)

SUBJECT: Three hypothetical, rectangular, finished lots of 1 acre each.

LAND AREA:

Each Hypothetical Lot is one acre (43,560 square feet).

IMPROVEMENTS: None. Finished Lot

PERSONAL PROPERTY:

No personal property was included in my reconciled fair market value estimates.

TOPOGRAPHY: Our analysis assumes topography consistent with the average lot transacted in each zip code.

ACCESS: Our analysis assumes access consistent with the average lot transacted in each zip code.

UTILITIES: Our analysis assumes access to utilities consistent with the average lot transacted in each zip code.

ZONING: Our analysis utilizes a weighted average of land area transacted which encompasses the following zoning
categories in the City of Santa Clara:

Single Family (Low Density Residential) , Medium Density Residential, High Density Residential, Commercial, and
Industrial.

PARCEL SHAPE / UTILITY: Our analysis assumes the hypothetical lot is rectangular in shape.

COMMENTS: The above physical characteristics of the hypothetical lots appraised are outlined by the client as part of the scope of work of this appraisal assignment.

VALUE INDICATIONS

Zip Code Reconciled Fair Market Value
95051 $5,573,000
95050 $5,359,000
95054 $5,037,000

THE )0~~ GROUP

TDG 2026 001 8

DEFINITIONS OF MARKET VALUE AND FAIR MARKET VALUE

DEFINITIONS OF MARKET VALUE
Fair Market Value, as defined by the California Civil Code:

“The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, w illing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available.”1

PROPERTY RIGHTS APPRAISED
The property right of ownership appraised was the fee simple estate. Fee simple interest does include mineral rights, unless otherwise stated. The fee simple title can be defined as follows:

“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.”2

ESTIMATED EXPOSURE AND MARKETING PERIOD
Marketing Time: An opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of the appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of the appraisal.

Exposure Time: The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based on an analysis of past events assuming a competitive and open market.

PERSONAL PROPERTY, FIXTURES, AND INTANGIBLE ITEMS
The land valued in this assignment did not include any personal property, fixtures, equipment, or intangibles.

1 California Civil Code § 1263.320(a)
2 Ibid.

THE )0~~ GROUP

TDG 2026 001 9

HYPOTHETICAL CONDITIONS AND EXTRAORDINARY ASSUMPTIONS

Acceptance of and/or use of this report constitutes acceptance of the indicated Hypothetical Conditions and Extraordinary Assumptions; these can only be modified in a written document(s) executed by both parties.

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.”3

The following hypothetical conditions apply to this specific appraisal assignment:

EXTRAORDINARY ASSUMPTIONS
An extraordinary assumption is defined as “an assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser’s opinions or conclusions.”4

The following Extraordinary Assumptions apply to this specific appraisal assignment:

• There are no Extraordinary Assumptions for this appraisal assignment.

3 Uniform Standards of Professional Appraisal Practice, 2020-22 edition. 4 Ibid.

THE )0~~ GROUP

TDG 2026 001 10

GENERAL CONDITIONS AND ASSUMPTIONS

The appraisal has been completed subject to the following General Conditions and Assumptions:

• This appraisal was completed per the requirements of the Uniform Standards of Professional Appraisal Practice (USPAP) and those additional requirements expected of a member of the Appraisal Institute. The development process used was a complete analysis that is documented in this appraisal report.

• By use of this appraisal report, each party that uses this report agrees to be bound by all of the Hypothetical Conditions and Extraordinary Assumptions stated herein. The opinions are only as of the date stated in the appraisal report. Changes since that date in external and market factors, or in the subject property itself, can significantly affect the conclusions presented in the appraisal report.

• I was not provided with a preliminary title report for the subject property. I assume the title is Fee Simple, good, and transferable.

• This appraisal is to be used only for the purpose stated herein. While the distribution of this appraisal in its entirety is at the discretion of the client, individual sections shall not be distributed as this report is intended to be used in whole and not in part.

• All files, work papers, and documents developed in connection with this assignment are the property of The Doré Group . No part of this appraisal, its value estimates , or the identity of the firm or the appraiser(s) may be communicated to the public through advertising, public relations, media sales, or other media without The Doré Group's prior written consent. If the appraisal report is referred to or included in any offering material or prospectus, the report shall be deemed referred to or included for informational purposes only, and The Doré Group, its employees, and the appraiser(s) have no liability to such recipients. The Doré Group disclaims any and all liability to any party other than the party that retained The Doré Group to prepare the appraisal report.

• The information contained in this appraisal report, or upon which the report is based, has been gathered from sources the appraiser(s) assumes to be reliable and accurate. The owner of the subject property may have provided some of such information. Neither the appraiser(s), nor The Doré Group, shall be responsible for the accuracy or completeness of such information, including the correctness of estimates, opinions, dimensions, sketches, exhibits, and factual matters. Any authorized user of the appraisal report is obligated to bring to the attention of The Doré Group any inaccuracies or errors that it believes are contained in the report. Any plans provided are intended to assist the client in visualizing the property; no other use of these plans is intended or permitted.

Appraisals are based on the data available at the tim e the assignment is completed.

Amendments/modifications to appraisals based on new information made available after the appraisal was completed will be made, as soon as reasonably possible, for an additional fee.

THE )0~~ GROUP

TDG 2026 001 11

• No part of the appraisal report shall be used in conjunction with any other analyses.

Reference to the Appraisal Institute or to the MAI designation is prohibited. Except as may be otherwise stated in the letter of engagement, the appraisal report may not be used by any person(s) other than the party(ies) to whom it is addressed or for purposes other than that for which it was prepared. Any authorized user(s) of this appraisal report who provides a copy to, or permits reliance thereon by, any person or enti ty not authorized by The Doré Group in writing to use or rely thereon, hereby agrees to indemnify and hold The Doré Group , its affiliates and their respective shareholders, directors, officers and employees, harmless from and against all damages, expenses, claims and costs, including attorneys' fees, incurred in investigating and defending any claim arising from or in any way connected to the use of, or reliance upon, the appraisal report by any such unauthorized person(s) or entity(ies).

• If the appraisal report is submitted to a lender or investor with the prior approval of The Doré Group, such party should consider this report as only one factor, together with its independent investment considerations and underwriting criteria, in its overall investment decision. Such lender or investor is specifically cautioned to understand all Hypothetical Conditions and Extraordinary Assumptions incorporated in this appraisal report.

• The appraiser (s) may not divulge the material (evaluation) contents of the report, analytical findings, or conclusions, or give a copy of the report to anyone other than the client, legal authorities via subpoena, or the Appraisal Institute.

• The appraisal report is based on the assumption of: (a) responsible ownership and competent management of the subject property; (b) no hidden or unapparent conditions of the subject p roperty, subsoil or structures that render the property more or less valuable (no responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them); (c) full compliance with all applicable federal, state and local zoning and environmental regul ations and laws, unless noncompliance is stated, defined and considered in the Report; and (d) all required licenses, certificates of occupancy and other governmental consents have been or can be obtained and renewed for any use on which the value opinion contained in the appraisal report is based.

• The appraiser(s) is not qualified to test for any hazardous substances and no responsibility is assumed for such conditions or engineering necessary to discover them. The appraiser assumed that the subject property is clear of all environmental contamination, and the appraised value was based on this assumption.

• No opinion is intended to be expressed and no responsibility is assumed for the legal description or for any matters that are legal in nature or require legal expertise or specialized knowledge beyond that of a real estate appraiser. Title to the subject property was presumed to be good and merchantable and t he property was appraised assuming there were no adverse easements , encroachments, liens, encumbrances, special assessments, or other restrictions.

THE Jm: GROUP

TDG 2026 001 12

• The appraised value was based on the assumption that there were no tax liens affecting the subject property. Unless otherwise noted, the subject property was found to be current in the payment of real estate taxes as of the date of value according to the applicable county treasurer -tax collector. It was assumed that any special assessments affecting the subject property are typical and appropriate for the area and do not have an impact on the value conclusion in this report and that any outstanding bonds ha ve been paid.

• Unless stated herein, the subject property is assumed to be outside of areas where flood hazard insurance is mandatory. Maps used by public and private agencies to determine these areas are limited with respect to accuracy. Due diligence has been exercised in interpreting these maps, but no responsibility is assumed for misinterpretation.

• No opinion is expressed with regard to potential seismic impact and it was assumed that the subject’s potential risks are similar to those shared by most properties throughout the region. The Doré Group makes no warranty as to the seismic stability of the subject land. The assumption was made that any future development of the property, if any, would occur in accordance with all appropriate regulations and ordinances regarding grading, fill, and applicable building codes.

• Except as may be otherwise stated in the letter of engagement, the appraiser(s) shall not be required to give testimony in any court or administrative proceeding relating to the subject property or the appraisal. If the appraiser (s) is subpoenaed pursuant to a court order, the client agrees to pay The Doré Group’s regular per diem rate plus expenses.

• In the event of a claim against The Doré Group, its affiliates, their respective officers or employees, or the appraiser(s) in connection with or in any way relating to this appraisal report or this engagement, the maximum damages recoverable shall be the amount of the monies actually collected by The Doré Group or its affiliates for this appraisal report and under no circumstances shall any claim for consequential damages be made.

• Necessary licenses, permits, consents, legislative or administrative authority from any local, state, or federal government, or private entity, are assumed to be in place or reasonably obtainable.

THE Jm: GROUP

TDG 2026 001 13

SCOPE OF WORK

According to the Uniform Standards of Professional Appraisal Practice , it is the appraiser’s responsibility to develop and report a scope of work that results in credible results that are appropriate for the appraisal problem and intended user(s). Therefore, the appraiser must identify and consider:

● the client and intended users;
● the intended use of the report;
● the type and definition of value;
● the effective date of value;
● assignment conditions;
● typical client expectations; and
● typical appraisal work by peers for similar assignments.

In preparing this report, I investigated numerous improved and land sales and listings from the area, and confirmed all data with buyers, sellers, brokers, property developers, leasing agents, and public officials when possible. I collected, confirmed, and reported data that were applicable in the valuation process. Data collection involved the use of various sources including CoStar, the Multiple Listing Services, RealQuest (a data collection service), County deed records, and in-house materials. The data collected and confirmed have been reported to an extent sufficient for the particular appraisal problem involved.

This appraisal is prepared for Ms. Gina Saporito, Parks and Recreation Department, City of Santa Clara. The purpose of this appraisal is to assist the City of Santa Clara in determining park impact fees. The intended use of this appraisal is for determining the fair market value of the hypothetical subject lots, as defined in this report . The intended users of this report include the City of Santa Clara.

VALUATION METHODOLOGY
The appraisal provides the Fair Market Value for a hypothetical, rectangular, and useable one acre site for each of the three primary zip codes: 95050, 95051, and 95054. This analysis conforms to the Uniform Standards of Professional Appraisal Practice, ut ilizing a valuation date of December 31st, 2025. The methodology of this report relies on a weighted average of transactions based on the total land area transacted for each land use category. An appropriate sample of comparable sales was researched and co nfirmed by the appraisers. This sample was then verified, cleaned, segmented, categorized and analyzed by the appraisers to arrive at an average value for each land use type in each zip code. These average values were then synthesized into one weighted average for each zip code.

THE )0~~ GROUP

TDG 2026 001 14

SELECTION CRITERIA AND ADJUSTMENTS
Transactions must be arms -length and cannot be more than three years old. Sites with clouded titles or environmental impairments are excluded. For comparable sales older than one year, an inflation factor is applied based on market trends and rental data. While no data points are excluded solely for being at the high or low end of the spectrum, all transactions are vetted for consistency and credibility.

RECONCILIATION AND WEIGHTING
The final value conclusion employs a comparative, iterative approach that integrates both qualitative and quantitative factors. Weighting is applied to property types based on the percentage of total land area in the sales transactions rather than the number of sales or the total dollar volume. This ensures the average value reflects the physical distribution of land use within the subject zip codes.

REPORT TYPE:

This is an appraisal report as defined by Uniform
Standards of Professional Appraisal Practice. This format provides a summary of the appraisal process, subject and market data, and valuation analyses.

PROPERTY IDENTIFICATION: The subject is three hypothetical lots and have been defined by narrative description in accordance with the scope of work for this appraisal.

PROPERTY RIGHTS APPRAISED: Fee Simple Interest

INSPECTION: An inspection of the environs analyzed in this report was conducted by Lance Doré on February 12 th, 2026. Calvin Farris did not inspect the environs.

MARKET AREA AND ANALYSIS OF
MARKET CONDITIONS:

A complete analysis of market conditions has been made.

The appraiser maintains and has access to comprehensive databases for this market area and has reviewed the
market for sales and listings relevant to this analysis.

HIGHEST AND BEST USE ANALYSIS:

See Hypothetical Conditions

VALUATION ANALYSES:

Cost Approach:

A cost approach was not applied as the hypothetical lots do not feature improvements.

THE Jm: GROUP

TDG 2026 001 15
Sales Comparison Approach:

A sales comparison approach was conducted to
determine the fair market value of the hypothetical lots as defined in this report.

Income Approach:

An income approach was not applied as the hypothetical
subject lots feature no improvements which would
generate income to necessitate an income approach.

HYPOTHETICAL CONDITIONS:

• The subject of this appraisal report is three
hypothetical one-acre lots in each of the City’s zip
codes (95050, 95051, and 95054). It is a
hypothetical condition of this appraisal report
that these lots exist as a finished lot, and are rated
average in al l physical, locational and legal
aspects in relation to the dataset.

• It is a Hypothetical Condition of this appraisal
report that the subject lots are able to support all
legally permissible uses analyzed in this appraisal
report, ranging from very low density residential
to commercial/industrial.

EXTRAORDINARY ASSUMPTIONS:

• There are no Extraordinary Assumptions for this
appraisal assignment.

DOCUMENTATION: The Doré Group was provided with the document(s) listed below. Unless noted, the document(s) did not indicate any unusual or detrimental conditions that have an impact on value. These documents were assumed to be accurate
and were relied upon in the valuation of the sub ject
property.

• Attachment A: Supplemental Instructions for the
Appraisal of the Fair Market Value of Land.
• 2024 Annual Land Valuation Appraisal Report
completed by Frank Schmidt & Associates

No respon sibility is assumed for any missing pertinent data contained within these documents and the
reconciled value does not reflect knowledge of their
content.

THE Jm: GROUP

TDG 2026 001 16

REGIONAL MAP
Daly City
South San
Francisco
Pacifica Sen Bruno
0 Moss Beach
@)
San Mateo
92 Bair Island
Redwood City
Union City
Fremont
84 Newark
Livermore
Sunol
Half @) East Palo Alto
Moon Bey
0 ®
Pescadero
0 Portola Valley
Big Basin
Redwoods
State Park
Palo Alto
Mountain
View
Alum Rock
Campbell
Saratoga
Redwood
Grove
Boulder Creek
17 SierraAzul
Open Space
Preserve
THE )0~~ GROUP
Mendenhall
Springs
101
Morgan Hill
San Anton io
Valley
Ashr m
Henry W. Coe
State Park
V
®
Vern

TDG 2026 001 17

REGIONAL DESCRIPTION – SANTA CLARA COUNTY

LOCATION
Santa Clara County, officially the County of Santa
Clara, is a county in California. The county is
located at the southern end of the San Francisco
Bay and encompasses 1,312 square miles. The
Santa Clara Valley runs the entire length of the
county from nor th to south, ringing the Diablo
Range on the east, and the Santa Cruz Mountains
on the west. Salt marshes and wetlands lie in the
northwestern part of the county, adjacent to the
waters of San Francisco Bay.

Santa Clara County is part of the San Jose -
Sunnyvale-Santa Clara, CA Metropolitan Statistical
Area as well as the San Jose -San Francisco -
Oakland, CA Combined Statistical Area. Located at the southern end of the San Francisco Bay, the highly urbanized Santa Clara Valley within Santa Clara County is also known as Silicon Valley. Santa Clara is the most populous county in the San Francisco Bay Area and in Northern California and is one of the most affluent counties in the United States.

TRANSPORTATION
The county has an extensive freeway system and a separate expressway system. Expressways in California are distinct from freeways; although access to adjoining properties is eliminated, at - grade intersections are allowed. However, unlike expressways virtua lly everywhere else in California, the Santa Clara County expressways were built, signed, and maintained as county roads; they are not maintained by Caltrans, although they are patrolled by the California Highway Patrol.

There is also a large street network dominated by four- and six-lane arterials. Some of the newer boulevards (primarily in the West Valley) are divided with landscaped medians. Primary freeways include Interstates 280, 680 and 880, U.S. Route 101 and State Routes 9, 17, 25, 35, 82, 85, 87, 130, 152, 156, and 237.

The Santa Clara Valley Transportation Authority (VTA) is a special district responsible for public transit services (bus and light rail), congestion management, specific highway improvement projects, and countywide transportation planning for Santa Clara C ounty, California. It is one of the governing parties for the Caltrain commuter rail line that serves the county. Santa Clara THE )0~~ GROUP

TDG 2026 001 18
Station is served by Caltrain which provides service to Gilroy, San Jose, Silicon Valley, San Francisco Airport and San Francisco, the ACE system which provides services to Stockton, and Amtrak which provides service to Sacramento and Oakland. In the Future, BART will provide service to San Jose and Santa Clara.

The county's main airport is Norman Y. Mineta San José International Airport (SJC). It is a U.S.

Customs and Border Protection port of entry and has eight international routes (one to Canada, one to England, one to Germany, one to Japan, two to Mexico, and two to China) but the airport's busiest routes are all to cities in the western United States. San Francisco International Airport (SFO) is also often used for commercial services by residents of Santa Clara County.

Moffett Federal Airfield (NUQ), a former U.S. Naval Air Station, is used by the Air National Guard, NASA, Lockheed Martin, Google, and by the San Jose Police and Santa Clara County Sheriff's Department as an air operation base. There are also smaller general aviation airports in Palo Alto (PAO), San Jose (Reid-Hillview) (RHV), and San Martin (E16).

SERVICES / RECREATION
The county provides a wide range of services to its residents. These services include general government (administration and finance), public protection (law enforcement, detention, and criminal prosecution), road maintenance, health care, public assistance, fire protection, libraries, sanitation, and general aviation airports. There are 31 public school districts in the county, and three major universities include Stanford University, Santa Clara University and San Jose State University. The Santa Clara Co unty Parks and Recreation Department manages 29 parks with a total area over 52,000 acres.

THE Jm: GROUP

TDG 2026 001 19

POPULATION / DEMOGRAPHICS
Santa Clara County had been steadily growing for
the last several decades. The county’s population
has grown more than 25 percent since 1990, and
it is the sixth most populated county in California.

There are 15 incorporated cities located within
the county where more than 95 percent of the
county’s residents live. The county seat is the City
of San Jose, which is the largest city in the San
Francisco Bay Area. San Jose is also the third
largest city in California, and the tenth largest city
in the United States. The California Development
Department reported the county’s population at
1,922,259 as of January 2025, which is nearly
unchanged from the January 2024 estimate of
1,921,406.

According to 2024 census data, the county had
672,426 households with an estimated 2.80
persons per household. The median age was 38.2 years.

REGIONAL ECONOMY
Trends in employment are a key indicator
of economic health and strongly correlate
with real estate demand. The county's
economy is heavily service based.

Technology, both hardware and software,
dominates the service sector by value, but
like any other county, Santa Clara has its
share of retail and office support workers.

LABOR FORCE / UNEMPLOYMENT
According to the California Employment
Development Department, the county’s labor force totaled 1,036,800 as of September 2025, of which 990,200 were employed, indicating a 4.5% unemployment rate. This compares to the statewide jobless rate of 5.5% and the national rate of 4.4%. 2020 2030 2040 2050 2060 2070 % Change (2020-2070)
Santa Clara 1,927,909 1,930,171 1,949,323 1,939,283 1,876,361 1,766,437 -8.4% California 39,535,726 39,771,423 40,968,090 41,726,601 41,720,611 41,237,997 4.3% HISTORICAL POPULATION AND PROJECTIONS (2020 - 2070)
Source: California Dept of Finance
Employer # Employees % of Total
County of Santa Clara 23,423 2.39%
Apple Inc. 10,936 1.11%
University of California, Santa Cruz 9,554 0.97%
Safeway Norther California Division 7,261 0.74%
City of San Jose 7,000 0.71%
Applied Materials 6,100 0.62%
San Jose State University 4,026 0.41%
Meta Platforms Inc. 3,966 0.40%
Deloitte 3,425 0.35%
Super Micro Computer Inc. 3,073 0.31%
Largest Employers in Santa Clara County
S ource: 2025 S anta Clara Annual Comprehensive Financial Report City 1-Jan-24 1-Jan-25 % change
Campbell 43,377 43,281 -0.2
Cupertino 59,887 59,831 -0.1
Gilroy 61,531 62,205 1.1
Los Altos 31,523 31,720 0.6
Los Altos Hills 8,520 8,548 0.3
Los Gatos 33,500 33,355 -0.4
Milpitas 82,401 81,915 -0.6
Monte Sereno 3,613 3,637 0.7
Morgan Hill 46,573 46,599 0.1
Mountain View 86,674 86,513 -0.2
Palo Alto 68,570 68,794 0.3
San Jose 980,174 979,415 -0.1
Santa Clara 133,829 134,587 0.6
Saratoga 31,020 31,110 0.3
Sunnyvale 158,948 159,673 0.5
Balance of County 91,266 91,076 -0.2
Santa Clara 1,921,406 1,922,259 0.0
Source: California Department of Finance
Santa Clara County's City Population Estimates
THE )0~ ~ GROUP

TDG 2026 001 20

PERSONAL / MEDIAN HOUSEHOLD INCOME
Personal income is a significant factor in determining the real estate demand in the market.

According to the 2024 American Community Survey (US Census), Santa Clara County had a per capita income of $82,180, which is considerably higher than the state’s i ncome of $49,934.

Median household income was $168,154, compared to $100,149 in the state. Census data indicated a total of 7.0% of the county population lives below the poverty level, which is lower than the state (11.8%).

REAL ESTATE DEVELOPMENT

RESIDENTIAL
According to the California Department of
Finance, as of January 2025, the county
had a total of 688,035 housing units
consisting of 358,135 single family
detached units, 69,111 single family
attached units, 49,129 2 -4 units, 193,200
5+ units, and 18,370 mobile homes. Nearly

95.4% of the units were occupied.

Similar to many California counties, Santa
Clara County faces the issue of affordable
housing. The county’s home prices are still
among the highest in the state. According to the California Regional Multiple Listing Service (CRMLS), the median home price in Santa Clara County was $1,500,000 as of December 2025, which is a -1.9% decrease from the previous year.

MULTI FAMILY
According to CoStar, San Jose's multifamily market is poised to end 2025 on a strong footing, with fundamentals stabilizing after a period of volatility. Vacancy rates declined to 4.6%, reversing the upward trend seen in 2024 when deliveries outpaced absor ption. This improvement reflects robust renter demand, which absorbed 4,200 units over the past 12 months, outstripping the 2,500 units delivered. While absorption remains below the post-pandemic peak of 8,000 units in 2021, it signals healthy leasing activity amid economic headwinds.

The market's resilience is underpinned by Silicon Valley's tech -driven economy, despite layoffs and slower job growth in the information sector. Population growth has resumed following pandemic-era declines, supported by international immigration, though r ecent policy changes could temper this trend. High home prices and mortgage rates above 6% continue to widen the affordability gap, reinforcing rental demand.

Rent growth accelerated to 3.2% year -over-year, surpassing the 10 -year average of 2.2%.

Premium submarkets, such as Palo Alto and Mountain View, posted gains above 4.5%, while more Dec-25 Dec-24 % Change
Alameda $980,000 $1,047,000 -6.4%
Merced $395,000 $425,000 -7.1%
Monterey $833,000 $925,000 -9.9%
San Benito $762,500 $792,500 -3.8%
San Joaquin $660,000 $605,000 9.1%
San Mateo $1,641,500 $1,474,750 11.3%
Santa Clara $1,500,000 $1,529,746 -1.9%
Santa Cruz $1,215,000 $1,200,000 1.3%
Stanislaus $450,000 $509,000 -11.6%
Santa Clara and Surrounding Counties Home Trends
City
Median Price
Source: CRMLS
THE )0~~ GROUP

TDG 2026 001 21
affordable areas, like East San Jose, saw modest increases of around 2%. Concessions remain prevalent in luxury properties, but overall pricing power has strengthened as vacancy tightens.

Construction activity has slowed dramatically, with only 2,500 units under construction, down from 7,000 at the start of 2024. Developers cite high financing costs and risk aversion, although optimism persists for transit-oriented projects under California's new zoning law, which enables taller buildings near transit hubs.

Looking ahead, vacancy is expected to trend lower as limited new supply meets steady demand.

Rent growth is expected to remain positive but moderate, with high-end properties continuing to outperform. While macroeconomic uncertainty and immigration policy shifts pose risks, San Jose's position as a tech hub and the ongoing AI boom provide a solid foundation for long term stability.

OFFICE
The San Jose office sector is showing signs of a rebound as 2025 draws to a close. Improved tenant interest has led to the highest quarterly leasing activity since 2022. Nevertheless, a series of tenant contractions over the past year has weighed on net ab sorption, causing the vacancy rate to remain at 15.2%, near its historical peak.

Market volatility and uncertainty remain prominent. While some Silicon Valley tech leaders, such as NVIDIA, have experienced remarkable expansion, legacy firms like Cisco and Intel have encountered significant competitive pressures from international rivals.

Artificial intelligence continues to be a growth engine, fueled by substantial investments from venture capital and established technology companies. AI-focused firms are driving new demand for office space, but broader adoption of AI across industries may ultimately reduce office requirements by shrinking workforce sizes. The latest employment figures indicate ongoing layoffs and declining job growth, especially in roles traditionally based in offices.

After a surge of new office completions in 2023, construction activity slowed. Several speculative developments have been delayed, and no major projects have commenced in the past two years.

As a result, the volume of office space under construction, under 2 million SF, is now at its lowest point since the Great Recession.

Over the past year, San Jose's vacancy rate has risen by 30 basis points, reaching its highest level in two decades. Vacancy in top-tier (4 & 5 Star) buildings stands at 17.2%.

Following three consecutive years of declining rents, average asking rates stabilized in 2024, posting a 2.8% increase over the past year. Landlords continue to offer generous concession packages to attract tenants and boost occupancy.

THE Jm: GROUP

TDG 2026 001 22
The recent uptick in leasing activity is expected to translate into positive absorption as new tenants move in over the coming year. Vacancy rates are projected to decline, while rent growth is likely to continue at a moderate pace.

RETAIL
During the first quarter of 2026, the San Jose retail sector is shaped by opposing trends. Silicon Valley's post-pandemic recovery has driven solid economic momentum, with increased demand for technological products and services leading to income growth fo r residents. However, some economic headwinds persist, including elevated interest rates, layoffs in the tech industry, and changing consumer spending patterns. These factors have led to retailer bankruptcies and downsizing.

With low population growth, the San Jose retail market is mature. The overall inventory of retail space has held steady over the last five years. After a sluggish 2023, leasing activity rebounded in 2024, and 2025 is on track to see the highest leasing volume in eight years.

Leasing activity has been driven mainly by grocery stores, entertainment venues, automotive businesses, and fitness centers.

Ongoing closures of national chain stores have kept move -outs elevated, acting as a counter to new leasing activity, causing net absorption to be generally flat. Annual net absorption for the year stands at -72,000 SF.

The city features five major regional malls, serving as the central shopping destinations. These malls are popular and achieve the highest rents in the market.

Beyond individual car dealership projects, new construction focuses on mixed-use urban villages that combine residential, hotel, and office spaces with street level retail. While several such developments are underway, some have encountered delays due to e conomic challenges, including reduced office demand and high construction financing costs.

After several years of moderate increases, the recent economic slowdown led to a leveling off of rents in 2023. Nevertheless, average rent has moved higher over the past year, with annual growth reaching 4.9% this quarter, compared to a five -year average o f 2.6%, and outpacing national growth of 1.9%.

With limited new supply and subdued demand, major shifts in San Jose's retail market are unlikely in the near term. Vacancy rates are expected to remain steady, and a return to stronger rent growth will likely depend on further improvements in the local economy.

INDUSTRIAL
The San Jose industrial market is closing 2025 with mixed signals, reflecting a cautious tenant environment and persistent economic headwinds. Vacancy edged up to 8.3%, marking a nearly THE Jm: GROUP

TDG 2026 001 23
100-basis-point increase year -over-year, driven by negative net absorption of -500,000 SF. Flex properties bore the brunt of this softness, posting an average vacancy rate of 11.5%, while logistics assets remained comparatively tighter at 6.8%. The availab ility rate, including sublet space, is 10.5% as of 2026Q1, underscoring elevated competition among landlords.

Leasing demand continued to favor large logistics facilities, supported by e-commerce and third- party logistics operators, while mid -sized logistics and flex buildings saw muted interest. The small-bay segment, however, maintained resilience, benefiting fr om local service -oriented businesses. Construction activity remained robust, with 4.4 million SF underway, above the national average, highlighting developer confidence in long-term fundamentals despite near-term leasing challenges. Projects include advanc ed manufacturing facilities and data centers, though power constraints in Santa Clara pose risks for future hyperscale development.

Rent trends softened further, with asking rents declining 0.3% year -over-year to $26.00/SF, marking the third consecutive quarterly drop. Flex rents fell to $32.00/SF, while logistics dipped to $19.00/SF, signaling a tenant favorable environment. Concessio ns, including free rent and TI allowances, have become more prevalent as landlords compete for occupancy.

Looking ahead, the vacancy rate is expected to rise modestly through mid -2026 as speculative deliveries hit the market. Rent growth is expected to remain subdued, with logistics outperforming flex space. Submarkets with constrained supply and proximity to transportation corridors are expected to maintain relative strength, while power availability will continue to be a critical determinant for data center expansion.

CONCLUSION
Santa Clara County has an established reputation and a stable economy, which is fueled by its inclusion in the Silicon Valley portion of the thriving San Francisco Bay Area. Several other factors, including good schools, a year -round mild climate, and overall quality of life, are the primary reasons why the region is expected to thrive over the long-term.

THE Jm: GROUP

TDG 2026 001 24

AREA MAP

THE )0~~ GROUP

TDG 2026 001 25
AREA DESCRIPTION — CITY OF SANTA CLARA

LOCATION / TRANSPORTATION
Santa Clara is centrally located in Santa
Clara County in Northern California,
within the southern portion of the San
Francisco Bay Area. The city sits in the
center of Silicon Valley, approximately 45
miles southeast of San Francisco and 10
miles northwest of downtown San Jose.

Santa Clara is bordered by San Jose to the
south, east, and west, Sunnyvale to the northwest, and Cupertino to the west. According to the U.S. Census Bureau, the city covers an area of 18.4 square miles, all of it land.

POPULATION / DEMOGRAPHICS
Santa Clara has a diverse, largely urban population shaped by its role as a major center for technology, employment, and higher education. According to the California Department of Finance, the population was 134,587 as of January 2025, which is an increase of 0.6% from January 2024. According to the 2024 American Community Survey/US Census, Santa Clara had 54,135 households with 2.37 persons per household and a median age of 34.2 years.

SERVICES / RECREATION
The city provides a full range of services. These services include police, fire protection and emergency dispatch; electric, water, solid waste, and sanitary sewer services; the construction and maintenance of streets and infrastructure; parks and recreati onal activities and cultural events; planning and zoning; library; cemetery; and general administrative and support services.

Recreation in the city is provided through the city’s parks and recreation system, which includes neighborhood parks, sports fields, aquatic facilities,
and community centers. The city also hosts Levi’s
Stadium and is located near regional cultural,
entertainment, and outdoor facilities throughout
Silicon Valley.

LOCAL ECONOMY
Santa Clara’s economy is closely tied to Silicon Valley and is primarily driven by technology, professional
services, manufacturing, healthcare, education, and retail trade. The city is home to a number of technology and semiconductor firms, data centers, corporate offices, and research facilities.

Employer # Employees % of Employment
Applied Materials, Inc. 8,500 21.1%
Intel Corporation 7,801 19.3%
Advanced Micro Devices Inc. 3,000 7.4%
Nvidia 2,700 6.7%
Kaiser Foundation Health Plan 2,600 6.4%
California's Great America 2,500 6.2%
Dell 2,088 5.2%
Santa Clara University 2,000 5.0%
City of Santa Clara 1,200 3.0%
Macy's 1,200 3.0%
CITY OF SANTA CLARA'S 10 LARGEST EMPLOYERS
Source: City of Santa Clara's 2025 Annual Comprehensive Financial Report --~-. ,:·
~.
-ci~-~ . p
0 ,
_/7--,_,
~
THE )0~~ GROUP

TDG 2026 001 26
Healthcare systems, higher education institutions, and government also contribute significantly to the economy.

According to California’s Employment Development Department, Santa Clara’s unemployment rate as of September 2025 was 3.9%. The city’s labor force totaled 78,700 and 75,700 were employed. According to the 2024 American Community Survey/US Census, the median household income in the city was $180,631, and a total of 7.7% of the population was living below the poverty level.

REAL ESTATE DEVELOPMENT
Real estate development in Santa Clara is shaped largely by its central role within Silicon Valley and its proximity to major employment centers. Most of the city’s recent growth has focused on infill and redevelopment, particularly near transit corridors, major roadways, and established commercial areas. New projects frequently emphasize higher-density residential uses, mixed-use developments, and transit -oriented housing to address ongoing demand and state housing requirements, while making efficient use of limited available land.

Commercial development continues to support the city’s strong employment base, with ongoing investment in office, research and development, and technology -related facilities. Older commercial and industrial properties are increasingly being modernized or repositioned to meet current market needs, including flexible office and mixed -use formats. Overall, development activity in Santa Clara reflects a balance between accommodating growth, supporting economic activity, and integrating new projects into an established urban environment.

RESIDENTIAL
According to California’s Department of Finance as of January 1 st, 2025, the city had a total of 50,229 housing units, which could be broken down into 19,565 single family detached units, 4,741 single family attached units, 25,879 multi-family units, and 44 mobile homes.

The California Multiple Listing Service (CRMLS) reported a median home price of $1,625,000 in December 2025, which is a -1.6% decrease from the previous year.

CONCLUSION
Santa Clara is expected to remain a key economic and residential center within Silicon Valley, with growth shaped by infill development, redevelopment, and continued demand tied to regional employment. Supported by a strong local economy, extensive municip al services, and access to major transportation and employment centers, the city’s outlook remains stable while balancing growth.

THE Jm: GROUP

TDG 2026 001 27

LAND USE CATEGORIES

To ensure a credible and consistent analysis, all comparable sales are categorized into five land use categories derived from the density ranges and permitted uses established by the City of Santa Clara General Plan and its equivalent Zoning Ordinances. The categories defined for analysis are included below:

1. Single Family (Low Density Residential): Includes Very Low Density (0 to 10 du/ac) and Low Density (11 to 19 du/ac) designations, primarily encompassing R1 and R2 zoning districts for detached homes and townhomes.

2. Medium Density Residential: Includes developments with densities of 20 to 36 du/ac, primarily within the R3 zoning classification.

3. High Density Residential: Includes urban-style mid-rise and podium developments with densities of 37 to 50 du/ac, typically within R4 zoning districts.

4. Commercial: Encompasses Neighborhood, Community, and Regional Commercial designations (CN, CC, CR, OA/OG) including retail, office, and hotel uses.

5. Industrial: Includes Light Industrial, Heavy Industrial, and Industrial Park designations (ML, MH, MP) for warehousing, R&D, and data centers. We have also included the Low and High Intensity Office/R&D designations within this category.

Please note, these categories have been defined in accordance with the scope of work of this appraisal assignment. The purpose of categorization is to determine the applicable per SF value for each land use type, and then determine the total reconciled per acre value based on the weighted average of land area sold in each category. An analysis is conducted for each property type based on the available data. A table outlining and expanding upon the buckets defined above can be found o n the next page:

THE )0~~ GROUP

TDG 2026 001 28

Category Name General Plan Designation Density Range/Intensity Primary Zoning Districts Typical Uses/ Notes Single Family Very Low Density Residential,
Low Density Residential 0-19 DU/AC R1 (Single Family), R2 (Two- Family)
Detached single-family homes, Duets
/ Duplexes, Low-density townhomes
Medium Density
Residential Medium Density Residential 20-36 DU/AC R3 (Multi-Family), PD (Planned Development)
Low-rise apartments, Rowhouses &
Townhouses, Garden-style complexes
High Density
Residential
High Density Residential, Very
High Density (Specific Plans) 37-50+ DU/AC R4 (High Density), PD (Planned Development)**
Urban mid-rise buildings, Podium
developments, Structured parking
residential
Commercial Neighborhood, Community,
and Regional Commercial FAR 0.40-0.60
CN (Neighborhood), CC
(Community), CR (Regional),
OA/OG (Office)
Retail centers & Supermarkets, Office
buildings, Hotels & Service
Commercial
Industrial
Light Industrial, Heavy
Industrial, Low and High-
Intensity Office/R&D
FAR 0.45-2.00 ML (Light Industrial), MH (Heavy
Industrial), MP (Industrial Park)
Data Centers, R&D / Flex Tech,
Manufacturing & Warehousing
Land Use Classifcation Table
THE :)0~~ GROUP

TDG 2026 001 29
LAND USE CATEGORIES: MARKET CONDITIONS

This section provides an aggregated overview of the market conditions within the Central, North, and South Santa Clara submarkets as of the December 31st, 2025 date of value. The analysis relies on reported market data from CoStar submarket reports to support valuation conclusions for hypothetical one-acre lots across the designated zip codes. These market overviews are relied on to reconcile the appropriate market conditions adjustments applied in the sales comparison approaches to value.

Comparable sales from Santa Clara, San Jose, Sunnyvale, Cupertino, Campbell, and Milpitas are considered competitive and relevant because these cities are adjacent or near -adjacent jurisdictions within the same regional employment base, share similar deman d drivers tied to major technology and institutional employers, and participate in the same broadly integrated buyer pool for infill and redevelopment land. Market participants commonly evaluate land opportunities across these cities based on relative zoni ng potential, entitlement risk, site utility, and overall location attributes rather than municipal boundaries alone. Accordingly, sales from these nearby Silicon Valley submarkets provide meaningful support for land pricing and market trend conclusions ap plicable to Santa Clara when analyzed with appropriate adjustments and qualitative weighting.

SINGLE-FAMILY HOUSING MARKET OVERVIEW (SANTA CLARA)
As of January 2026, Santa Clara’s single -family housing market remains strongly supply - constrained and highly competitive. Citywide conditions reflect a clear seller -leaning environment, supported by very low months of inventory, fast marketing times, and persistent sale-to-list premiums. While pricing varies meaningfully across Santa Clara’s three ZIP codes, the broader pattern is consistent: limited supply continues to sustain pricing power, even where short-term volatility appears in monthly median sales figures.

INVENTORY AND MARKET BALANCE
Santa Clara is operating with exceptionally tight inventory. Citywide months of inventory is approximately 0.60, indicating a market where demand materially exceeds available supply.

Consistent with this imbalance, homes are selling quickly, with a median of 10 days on market.

Competitive pressure is also evident in pricing outcomes, as the sold -to-list price ratio averages about 106.5%, confirming that many transactions are closing above asking price.

At the ZIP-code level, supply remains constrained across all submarkets, though conditions vary. 95051 is the tightest among the ZIP codes at roughly 0.83 months of inventory, while 95050 and 95054 show comparatively higher , yet still low , inventory at about 1.27 and 1.49 months, respectively. Median marketing times remain short across the board, ranging from roughly 12–15 days.

PRICING AND VALUE TRENDS
Citywide pricing metrics indicate continued strength. In January 2026, the median sold price for Santa Clara single -family homes is approximately $2,289,000, while the median list price is THE )0~~ GROUP

TDG 2026 001 30
approximately $1,911,500. In parallel, the citywide median estimated property value is approximately $1,966,640, reflecting a +3.47% change over the prior 12 months.

Rolling 12-month trend data also supports the broader narrative of elevated pricing. As of January 2026, the rolling 12 -month median sales price is approximately $2,030,000 for Santa Clara City overall. Rolling 12 -month average price per square foot is app roximately $1,344/SF, indicating sustained value intensity even after the rapid run-up earlier in the cycle.

CONCLUSION
Santa Clara’s single -family market remains structurally undersupplied, and current conditions reflect an environment where buyers continue to compete aggressively for limited inventory.

Citywide months of inventory near 0.60, marketing times near 10 days, and a 106%+ sold-to-list ratio reinforce a market defined by scarcity and pricing power. While ZIP -level results show meaningful differences, particularly the volatility observed in 95054, the broader metrics indicate that the single -family sector remains resilient and highly priced across Santa Clara, providing a consistent benchmark for interpreting underlying residential land value trends in the City.

Based on the Santa Clara City rolling 12 -month median sales price trend for single -family residential properties, market conditions were measurably stronger during the 2023–2024 period and more modest during 2025. From January 1, 2023 through December 31, 2024, the median increased about 9.4%, which equates to an annualized (compounded) rate of approximately +4.8% per year, supporting a more material time adjustment for sales occurring earlier in that interval. By contrast, from January 1, 2025 through Dece mber 31, 2025, the median increased about 1.7%, equating to an annualized rate of approximately +1.8% per year, indicating a substantially slower pace of appreciation and supporting a smaller market conditions adjustment for sales within 2025.

Market Conditions Adjustments
Single Family
Timeframe Annualized Adjustment
Jan 2023 - Dec 2024 4.80%
Jan 2025 - Dec 2025 1.80%
THE )0~~ GROUP

TDG 2026 001 31

MULTI-FAMILY (MEDIUM- AND HIGH-DENSITY RESIDENTIAL)
The Santa Clara multi -family market, which provides the principal income context for the City’s Medium Density Residential and High Density Residential land use categories, closed 2025 with strong demand fundamentals despite a near -term increase in vacancy driven by elevated new supply. Over the past 12 months, the submarket delivered 1,345 units and absorbed 1,434 units, reflecting the strongest leasing performance in the San Jose metro. This recent delivery cycle temporarily lifted overall vacancy, but st abilized conditions remain materially tighter, indicating healthy underlying demand for professionally managed apartment product.

INVENTORY AND VACANCY
Santa Clara’s multi-family inventory totals 23,421 units. Vacancy is reported at 6.5%, representing a year -over-year increase attributable to the recent wave of deliveries; however, stabilized vacancy is near 4%, indicating that the elevated headline rate is largely a function of lease -up in newly delivered projects. Vacancy varies by asset class, with 4 & 5 Star properties reporting higher vacancy during lease-up, while 1 & 2 Star properties remain comparatively tight. Importantly, the construction cycle has paused following the 2025 delivery surge, with zero units currently under construction, supporting the expectation that vacancy can normalize as recent deliveries are absorbed.

RENTAL RATES
Rents resumed growth in 2024 and accelerated through 2025. As of the first quarter of 2026, average asking rent is $3,573 per unit, reflecting 4.1% year-over-year growth, while effective rent is reported at $3,526 per unit with 4.7% year -over-year growth, indicating that concessions remain present but are not preventing overall rent gains. Rent levels are tiered by quality, with 4 & 5 Star properties averaging $4,125 per unit, 3 Star properties averaging $3,357 per unit, and 1 & 2 Star properties averaging $2,379 per unit.

Daily Asking Rent Per SF (Multifamily Santa Clara)

DAILY ASKING RENT PER SF
$4.00
$3.80
$3.60
$3.40
$3.20
$3.00 I' 1, t ,, 11 ,, 'I,,,, , ,, 1 , 1, I ' 1 1 , , , , 1 1,, I' , , ,, , 1,, t t I' , ,,,,, 1 t '' I', 1 1 1,,,,, 1 I' 11 2020 2021 2022 2023 2024 2025
■ Senta Clere
THE )0~~ GROUP

TDG 2026 001 32

INVESTMENT AND SALES ACTIVITY
Investment activity strengthened materially in 2025. Trailing 12 -month sales volume is approximately $890 million across 23 transactions, with average pricing near $490,000 per unit and an average cap rate of 4.9%. Recent transactions include large institu tional acquisitions, illustrating continued investor appetite for both scale and quality within the Santa Clara multi - family market.

CONCLUSION
Santa Clara’s multi-family market demonstrates resilient demand, supported by strong absorption and renewed rent growth, while the recent increase in vacancy is closely tied to a one-time surge in deliveries rather than structural weakening. With no units under construction and stabilized vacancy materially below the current headline rate, the near -term outlook reflects market rebalancing as new communities complete lease -up. These conditions provide a factual and supportable basis for interpreting multi -family income potential and investor pricing behavior applicable to the City’s Medium- and High-Density Residential land use categories.

Based on the Santa Clara multifamily submarket trends (representative of medium - to high - density residential property types), the market supports two distinct time -adjustment regimes over the analysis period. For January 1, 2023 through December 31, 2024, investment pricing indicators reflect modest appreciation while leasing fundamentals shifted from muted rent growth in 2023 to stronger rent growth in 2024 (despite some vacancy expansion), supporting a reconciled market conditions adjustment of approximat ely +2.5% per year for that period. For January 1, 2025 through December 31, 2025, pricing metrics indicate a more pronounced increase in values while rents remained positively trending, supporting the conclusion that overall market pricing advanced at a faster pace than income growth alone would imply; therefore, a reconciled market conditions adjustment of approximately +5.0% per year is concluded for 2025.

Market Conditions Adjustments
Multifamily
Timeframe Annualized Adjustment
Jan 2023 - Dec 2024 2.50%
Jan 2025 - Dec 2025 5.00%

SALES VOLUME & MARKET SALE PRICE PER UNIT
$660 ,000
$640 ,000
$620 ,000
;; $600 ,000 :,
" g $580 ,000 Q.
j $560 ,000 . -; $540 ,000 ,.
$520 ,000
$500 ,000
$480 ,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
■ Sahls Volume ■ Santa Clara Price/Unit
THE )0~~ GROUP
$900
$800
$700
$600
$500
$400
$300
$200
$100

TDG 2026 001 33

COMMERCIAL (RETAIL AND OFFICE)
The Santa Clara commercial real estate market, encompassing both the retail and office sectors across the Central, North, and South submarkets, presents a bifurcated landscape as of 2025.

While the retail sector is characterized by tight vacancies and constrained supply, the office sector exhibits more elevated vacancies alongside stronger transactional volume in key pockets.

INVENTORY AND VACANCY
Combined commercial inventory spans over 27 million square feet, heavily weighted toward the office sector. The office market contains approximately 21.9 million square feet of space. Within the office sector, North Santa Clara holds the largest concentrat ion at 10.6 million square feet, but it also struggles with the highest vacancy rate at 18.8%. South Santa Clara's office vacancy stands at 12.0% on 2.2 million square feet of inventory, while Central Santa Clara shows the tightest office market with a 7.7% vacancy rate across its 9.1 million square feet.

Conversely, the retail market is significantly smaller, totaling roughly 5.34 million square feet, and exhibits highly stabilized fundamentals. South Santa Clara dominates the retail footprint with 4.1 million square feet and a healthy vacancy rate of 3.7% . North and Central Santa Clara contain 660,000 and 580,000 square feet of retail space, respectively, with very low vacancies of 3.5% and

2.4%.

South Santa Clara County Retail Submarket

RENTAL RATES
Despite differing vacancy profiles, both retail and office landlords have maintained positive year- over-year rent growth across all Santa Clara submarkets. In the retail sector, asking rents range from $32.00 per square foot in Central Santa Clara to a hig h of $59.00 per square foot in North Santa Clara. Retail rent growth remains steady, varying from 1.8% to 2.1% annually.

Office rental rates are also competitive, with Central Santa Clara commanding approximately

NET ABSORPT ION, NET DELIVERIES & VACANC Y
40 u.. 30
(/)
~ 20 .. "' :,
0 ~ 10
i!l 0 'i
oi 0 -10 ..,
C: 0
i -20
"' al -30
-40
: Forecast
I
I
I
!------------' I
I
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
■ Net Absorption ■ Net Delivenes ■ Vacancy San Jose Vacancy THE )0~ ~ GROUP

5.0%

4.5%

4.0%

3.5%

3.0% ~ .,
~ -<

2.5%

2.0%

1.5%

1.0%

TDG 2026 001 34
$57.00 per square foot alongside an impressive 3.9% annual rent growth. Office rents in North and South Santa Clara average $50.00 and $48.00 per square foot, respectively, with annual growth rates of 2.7% and 2.6%.

INVESTMENT AND SALES ACTIVITY
Commercial investment activity reveals distinct investor preferences. The Central Santa Clara office submarket led overall commercial sales velocity by a wide margin, recording 10 property transactions over the past year totaling $574 million in sales volu me and an estimated market capitalization rate of 6.9%. South Santa Clara also saw office trades amounting to $55.9 million across two properties.

Retail investment was more subdued but steady in the southern and central areas. South Santa Clara recorded four retail sales totaling $16.2 million, while Central Santa Clara saw a single retail transaction for $3.0 million. North Santa Clara experienced a complete pause in both retail and office investment, with zero sales reported in either sector over the past year. Capitalization rates for retail assets are generally tighter than office, resting between 5.5% and 5.8% across the city.

CONCLUSION
The Santa Clara commercial real estate market is anchored by an absolute lack of new development, which continues to insulate both the retail and office sectors from oversupply risks.

Retail remains an incredibly tight and stable asset class, while the off ice sector, despite higher vacancies in the North and South, continues to drive massive capital investment and rent growth, particularly in the Central submarket. These distinct trends provide a solid, factual foundation for assessing underlying commercial land values across the city.

Based on the City of Santa Clara commercial submarket evidence (office and retail), we have reconciled two distinct market conditions adjustments over the analysis period. For January 1, 2023 through December 31, 2024, overall commercial values are concluded to have declined at approximately −8.0% per year (annualized), driven primarily by the office segment’s measurable valuation reset (pricing in dices declining across Central, North, and South Santa Clara) while leasing conditions showed only limited offsetting support (rents generally increased but vacancy pressure was evident, particularly in office). For January 1, 2025 through December 31, 2025, overall commercial values are concluded to have increased at approximately +2.0% per year (annualized), supported by modest stabilization/firming in office pricing indices and continued positive leasing signals, while retail performance was generally stable to improving (rising asking rents and mostly stable/positive pricing indicators in key submarkets). These reconciled time adjustments are intended as aggregate, citywide market conditions indicators suitable for application to Santa Clara commercial sales where a single, supportable time trend is required.

Market Conditions Adjustments
Commercial
Timeframe Reconciled Adjustment
Jan 2023 - Dec 2024 -8.00%
Jan 2025 - Dec 2025 2.00%
THE )0~~ GROUP

TDG 2026 001 35

INDUSTRIAL (FLEX, LOGISTICS, R&D)
The Santa Clara industrial real estate market, encompassing the Central, North, and South submarkets, reflects a supply-constrained and stabilized environment as of late 2025. While North Santa Clara contains the majority of the city’s industrial inventory and demonstrates moderate vacancy alongside limited development activity, South Santa Clara remains fully occupied with no construction underway. Central Santa Clara continu es to function as an established and institutionally active industrial node. Overall, the market is characterized by limited new supply, stable rent levels, and steady capital markets participation.

INVENTORY AND VACANCY
Combined industrial inventory across the three submarkets totals approximately 13.3 million square feet, heavily weighted toward North Santa Clara at roughly 11.5 million square feet. South Santa Clara comprises approximately 898,000 square feet, making it the smallest industrial concentration within the city.

Vacancy conditions vary by submarket. North Santa Clara reports vacancy near 8%, with availability slightly higher, driven largely by elevated flex vacancy relative to logistics and specialized product. The absence of new deliveries in South Santa Clara ov er the past decade underscores the submarket’s structurally constrained supply profile. Construction activity within the broader market remains limited and is concentrated primarily in North Santa Clara.

North Santa Clara County Industrial Submarket

RENTAL RATES
Industrial asking rents across Santa Clara remain generally stable, averaging in the mid -$26 per square foot range in both North and South submarkets. Flex product commands the highest rental

NET ABSORPTION, NET DELIVERIES & VACANCY
800
:Ji 600
~
400
200
i
2 0 ""ii
0 oO
., -200
I
~ -400
-600
: Forecast
I
I
I
I
I
I
I
I
I
I
I
I
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
■ Net Absorption ■ el Oel,venes ■ Vacancy ■ San Jose Vacancy THE )0~~ GROUP
16%
14%
12%
6%
4%

TDG 2026 001 36
rates, generally exceeding $30 per square foot, while logistics space averages in the low -$20 per square foot range. Specialized industrial product falls between these two tiers.

Year-over-year rent growth remains modest following prior expansionary cycles. South Santa Clara has experienced slightly stronger recent rent growth relative to North Santa Clara, though overall annual increases across the city remain moderate and consist ent with a stabilized industrial market.

INVESTMENT AND SALES ACTIVITY
Industrial capital markets activity remains steady, with transaction volume concentrated primarily in North Santa Clara over the past 12 months. Citywide market pricing trends indicate pricing generally in the mid -$300s to upper -$300s per square foot, whil e select South Santa Clara transactions have achieved higher per-square-foot metrics, consistent with its near-zero vacancy condition and limited supply. At the same time, broader pricing indices across Central and North Santa Clara reflect modest softenin g from peak levels through 2024 and into 2025, supporting reconciled market conditions adjustments of approximately 2.0% per year for the January 1, 2023, December 31, 2024 period and approximately 2.5% per year for January 1, 2025 -December 31, 2025. Estimated market capitalization rates across the submarkets remain in the mid -6% range, indicating stabilized income expectations in the current environment, while observed rent trends are generally stable to improving , together suggesting that the mild negativ e time trend is primarily attributable to cap-rate expansion rather than weakening leasing fundamentals.

CONCLUSION
The Santa Clara industrial market continues to demonstrate constrained supply, stabilized occupancy, and moderate rent growth across its submarkets. South Santa Clara’s full occupancy and absence of construction highlight the scarcity of available industrial space, while North Santa Clara provides the primary base of inventory and transaction activity within the city. These

SALES VOLUME & MARKET SALE PRICE PER SF
$480
$460
$440
u. $420 <I)
.; u
it $400 ..
<I) $380 "i
~
ii $360 ::;
$340
$320
$300
Forecast $180
$160
$140
$120
$100
$80
$60
$40
$20
4 ___ +,il. __ ir.f-...... _!IIII- __ --I-__ IIL..l __ 4-J....L...J...+...J....J....L...+--,L...J....JL.4-.L..1....i.....µ..1$0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
■ Sales Volume ■ North Santa Clara Price/SF ■ San Jose Price/SF THE )0~ ~ GROUP

TDG 2026 001 37
consistent and measurable fundamentals provide a reliable framework for evaluating underlying industrial land values across Santa Clara.

Based on the City of Santa Clara industrial submarket evidence (Central, North, and South), the market supports modest negative market conditions over both analysis periods, with value trends driven primarily by cap -rate expansion despite generally stable -to-improving leasing fundamentals. For January 1, 2023 through December 31, 2024, CoStar’s sales -side pricing indicators show a mild decline in values (pricing indices drifting downward from earlier peak levels), while asking rents generally increased and vacancy remained relatively contained; reconciling these signals, an overall industrial market conditions adjustment of 0 -2.0% per year (annualized) is supported for this period. For January 1, 2025 through December 31, 2025, pricing indices reflect continued modest softening into 2025 while rent growth was flat to modest, indicating that higher -rate pricing pressure persiste d even as income performance remained comparatively steady; therefore, an industrial market conditions adjustment of -2.5% per year (annualized) is concluded for 2025.

Market Conditions Adjustments
Industrial
Timeframe Reconciled Adjustment
Jan 2023 - Dec 2024 -2.00%
Jan 2025 - Dec 2025 -2.50%

THE )0~~ GROUP

TDG 2026 001 38

HIGHEST AND BEST USE

Highest and best use may be defined as:

“The reasonably probable use that produces the most benefits and highest land value at any given time.”5

Typically, to meet the highest and best use, the four criteria are:

1. Legally Permissible: What uses are permitted by zoning and other legal restrictions?

2. Physically Possible: To what use is the site physically adaptable?

3. Financially Feasible: Which possible and permissible use will produce any net return to the owner of the site?

4. Maximally Productive. Among the feasible uses which use will produce the highest net return, (i.e., the highest present worth)?

This assignment applies a hypothetical condition that expands legal permissibility by assuming the hypothetical subject lot could represent the range of land use categories and zoning districts that occur throughout the City of Santa Clara, rather than bei ng constrained to a single, site -specific designation. Accordingly, the highest and best use conclusion is expressed as a set of representative uses consistent with the Citywide land use spectrum used in the analysis.

Under this hypothetical condition, the highest and best use of the hypothetical lot is for development (or interim holding pending market support) consistent with one of the principal Citywide land use categories summarized in the Land Use Classification Table:

5 The Appraisal of Real Estate, 15th ed., p. 305 (Chicago: Appraisal Institute 2020).

TDG 2026 001 39
The average indicated land value developed in this appraisal, derived from sales comparison approaches across these land use categories and weighted in accordance with the scope of work, is contingent upon the hypothetical condition described in this appra isal report. Specifically, the concluded average value reflects a hypothetical lot that is representative of the City’s broader development capacity across the listed residential, commercial, and industrial use ranges, and is not intended to represent the highest and best use of any specific, physically identified parcel absent confirmation of that parcel’s actual General Plan designation, zoning, and other applicable land use constraints.

THE Jm: GROUP

TDG 2026 001 40

VALUATION METHODOLOGY

Three basic approaches may be used to arrive at an estimate of market value. They are:

1. The Cost Approach

2. The Income Approach

3. The Sales Comparison Approach

COST APPROACH
The Cost Approach is summarized as follows:

Cost New
- Depreciation
+ Land Value
= Value

INCOME APPROACH
The Income Approach converts the anticipated flow of future benefits (income) to a present value estimate through a capitalization and or a discounting process.

SALES COMPARISON APPROACH
The Sales Comparison Approach compares sales of similar properties with the subject property.

Each comparable sale is adjusted for its inferior or superior characteristics. The values derived from the adjusted comparable sales form a range of value for the subject. By process of correlation and analysis, a final indicated value is derived.

FINAL RECONCILIATION
The appraisal process concludes with the final reconciliation of the values derived from the approaches applied for a single estimate of market value. Different properties require different means of analysis and lend themselves to one approach over the others.

METHODOLOGIES APPLIED
We have applied 5 separate sales comparison approaches, one for each land use category. Based on the hypothetical nature of the subject, each sales comparison approach represents a spectrum of land sales which together, form a basis for the average value per unit for each asset class. When possible, we used land sales with little or no adjustment needed. In some cases, sales conditions adjustments were applied. Market conditions adjustments were also applied in accordance with the specified scope of work for this appraisal project.

THE )0~~ GROUP

TDG 2026 001 41
SALES COMPARISON APPROACH: SINGLE FAMILY (LOW DENSITY RESIDENTIAL)

The hypothetical subject’s land value has been developed via the Sales Comparison Approach, which is based on the premise that a buyer would pay no more for a specific property than the cost of obtaining a property with the same quality, utility, and perceived benefits of ownership. It is based on the principles of supply and demand, balance, substitution and externalities. This sales comparison approach is conducted in order to determine average value, and therefore, no adjustments beyond market conditions and sales conditions adjustments were necessary, except where noted. The process below describes the applied methodology utilized to reach conclusions of value in the subsequent 5 sales comparison approaches.

• The market in which the subject property competes is investigated; comparable sales, contracts for sale and current offerings are reviewed.

• The most pertinent data is further analyzed, and the quality of the transaction is determined.

• The most meaningful unit of value for the subject property is determined.

• Each comparable sale is analyzed and where appropriate, adjusted to equate with the hypothetical subject property.

• The value indication of each comparable sale is analyzed, and the data reconciled for a final indication of value via the Sales Comparison Approach.

SINGLE FAMILY (LOW DENSITY) LAND COMPARABLES
I searched for comparables with a similar highest and best use of single family (low density) development.

Comparisons are made to the hypothetical subject relative to differences or similarities in time, location, physical characteristics, and sales conditions. Percentage or dollar adjustments are then made to the selling and/or listing price of each comparable for property rights, financing, time of sale, and unusual sales conditions; qualitative comparisons are made for physical differences between each comparable and the subject. A range of values results from this approach. I correlated the range into a final value by selectively rating the comparables as to their overall comparative value to the hypothetical subject property, which is meant to represent the average of values analyzed.

I have researched six land comparables for this analysis. All of the comparables reflect closed sales and are documented on the following pages with a summary grid, location map and aerial photographs.

THE )0~~ GROUP

TDG 2026 001 42

LAND COMPARABLE SUMMARY TABLE

Land Comparables Summary
Address Date Book/Page or Reference Acres Zoning
City Assessor Parcel No Price Price Per Acre Price Per SF Comp
Sale Comments
Subject Santa Clara Single 12/31/2025 NA 1.00 Single Family/Low This is the hypot hetical subject prope rty.

Family Lot Density Residentia l
(Rl, R2)
Santa Clara NA NA NA Good
20860 McClellan Rd 8/25/2023 25525850 1.35 R1B2 20860 McClellan Road, Cupertino , Californ ia 95014 (APN 359-20-030) sold on August 25, 2023 for $9,300,000, which equates to approximate ly $6,888,889 per acre based on a reported site size of 1.35 acres (58,806 SF), or $9,300,000 $6,888 ,889 $158.15
about $158.15 per land SF. The property is zoned R1B2. The transaction was conveyed by Grant Deed from Cupertino 359-20-030 District McClellan LLC (grantor) to Alpha McClellan LLC (grantee) and was recorded in Santa Clara County on September 1, 2023 as Document No. 25525850.
2 Doyle Road and 12/20/2023 255774 14 1.02 Rl-8 The Doyle Road and Lawrence Expressway sale in San Jose involv ed one parcel (381-19-015) total ing 1.02 acres Lawrence Expressway that sold for $5,100,000 on 12/20/2023 (Doc #25577414) . The transaction equates to approx imately $5 million San Jose 381-19-01 5 $5,100,000 $5,000,000 $114.78
per acre and $1114 per land SF. Title transferred v ia Grant Deed fro m VOP REF Doyle LLC to Harker School, as confirmed by the recorded deed. This transaction represents the sale of land with development pressure currently zoned for residential development at up 8 dwelling units per acre. 3 781 Wolfe Road 7/9/2024 25662912 0.69 RO 781 S. Wolfe Road, Sunnyvale, CA 94086 (APN 211-05-009) tra nsferred by Grant Deed on July 9, 2024 for $4,500,000 and was recorded July 12, 2024 (Santa Clara County Doc. 256629 12). The reported site area is 0.69 acres (29,850 SF), indicating a land value metr ic of approximately $6,52 1,739 per acre (about $150.75 per land Sunnyvale 211-05-009 $4,500,000 $6,521,739 $149 .72 SF). Title transferred from the George Yamaoka and Misako Yamaoka Family Trust (as amended), executed by the trustee , to 781 South Wo lfe Road, LP. (California limite d partnership). The land was sold as a single fam ily residential redevelopment project.
4 1020 5th Street 12/30/2025 25925105 0.63 R2 1020 N 5th Street, San Jose, CA 95112 is a multi-parce l vacant land transaction involving APNs 235-09-016, 235- 09-017 , 235-09-018, and 235-09-0 19. The reporte d consideration is $2,470,000. The sale date is 12/11/2025 and $2,470,000 $3,920 ,635 $90.01
the recording date is 12/30/2025 , recorded in Santa Clara County as Document No. 25925105. Title transferred San Jose 235-09-016 , -017, - from the Allen Wong and Lillian Wong 1991 Trust (tr ustees) to Kellogg & Kay LLC (Californ ia LLC). Zoning is shown 018, -019 as R2, and the site size reported is 0.63 acres. 5 839 N 14t h Street 2/8/2024 25596092 0.12 R2 This comparable sale involves a vacant land parcel identified as APN 249-12-100 in San Jose, Santa Clara County, with the location noted as between 833 N 14th Street and 845 N 14th Street near Vestal Street. The site is reporte d to contain 0.12 acres (5,227 square feet), wit h zoning shown as R2. The property sold on 02/08/2024 San Jose 249-12-100 $550,000 $4,583,333 $105.22 for $550,000, follow ing a contrac t date of 01/25/2024, and it was offered at $625,000 prior to sale. The transfer was conveyed by Grant Deed dated 01/29/2024 and recorded 02/08/2024 as Document No. 25596092 fro m Karen M. Garcia to Jagjit S. Bains.
6 0 Walnut Grove 6/7/2024 25647476 0.14 Rl This comparable sale involves a vacant land parcel in San Jose, Californ ia (95128/95 126), identi fied as APN 274-- 28-062 , located adjacent to 1894 Walnut Grove Avenue at the end of a cul-de-sac near N. Bascom Avenue. The site is reported at 0.14 acres, with lot area figures shown as 6,098 square feet and 6,295 square feet. Zoning is San Jose 274--28-062 $560,000 $4,000 ,000 $91.8 3 shown as Rl. The property sold for $560,000, wit h a purchase contract date of 05/29/2024 and a close/reco rding date of 06/07/2024. The conveyance was by Grant Deed recorded as Document No. 25647476 fro m Walker William E to Pan Family Trust.

THE )0~~ GROUP

TDG 2026 001 43

THE COMPARISON PROCESS
In the comparison process, I take into consideration the financial and physical differences between each land comparable. Categories of adjustment and/or comparison include: 1) property rights conveyed; 2) terms of sale; 3) conditions of sale; 4) buyer exp enditures; 5) market conditions; and, 6) physical characteristics (including location, topography, utilities, zoning, etc.).

The comparables are analyzed on a price per square foot of land basis as this is the most applicable unit of comparison for the subject land as it reflects development land . This was clear when analyzing the comparable data where pricing levels, when analyzed on a price per square foot of land basis , were consistent and reflective of the market.

Each comparables’ gross acreage and land square footage was obtained from public records, published sales information, and/or other reliable sources. The subject’s overall market value was delineated from the market data.

The comparison process is fairly subjective in nature primarily due to the many characteristics of value, variances in buyer/seller influences, imperfections in the market, etc. Adjustments and/or comparisons are an attempt to reflect value contributions o f the various factors in the marketplace. Many of the comparisons of physical characteristics overlap and reflect overall desirability. The comparison grid following this section is an empirical format to simply lead the reader to a logical conclusion of t he final estimated value.

PROPERTY RIGHTS
The property right appraised was the fee simple estate. All of the land comparables transferred (or are marketing) the fee simple interest, thus, there are no adjustments warranted.

FINANCING (TERMS OF SALE)
Financing (terms of sale) include below market rates, buy downs, atypical payback periods, or any financing situations that are not commonly accepted within the marketplace. In the subject market, land is typically purchased with all cash or the seller tak es back a first trust deed with a large (20% -50%) down payment.

The comparables sold for cash or with conventional forms of financing; thus, no adjustments were warranted.

CONDITIONS OF SALE
Conditions of sale include any distressed influences, less than arm’s length transactions, or other related influences that are not attributable to financing/terms of sale, market conditions, or physical differences.

All Comparables reflected closed transactions , however, Comparable 1 featured some permitting completed but was not entitled. To reflect this slight advantage in the market, we have applied a -10% adjustment to the sale.

THE XR~ GROUP

TDG 2026 001 44

MARKET CONDITIONS
Market conditions adjustments take into consideration appreciation or depreciation that has occurred in the market. All land comparables reflected sales that closed between August of 2023 and December of 2025. According to our analysis of market conditions over this time period (see market conditions section) we have made the following market conditions adjustments.

Market Conditions Adjustments
Single Family
Timeframe Reconciled Adjustment
Jan 2023 - Dec
2024 4.80%
Jan 2025 - Dec
2025 1.80%

These adjustments are displayed visually in an adjustment grid on the following page.

THE )0~~ GROUP

TDG 2026 001 45

SINGLE FAMILY (LOW DENSITY RESIDENTIAL) LAND COMPARABLES ADJUSTMENT GRID

Single Family Land Comparables Adjustment Grid
Land Analysis Grid Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Comp 6 Address Low Density Lot
City
State
Date
Price
Land SF
Price Per SF
Transaction Adjustments
Property Rights
Santa Clara
CA
12/31/2026
NA
43,560
NA
Fee Simpl e
Conventional
20860 McClellan Doyle Road and 781 Wolfe Road 1020 5t h Street 849 N 14th Street Road Lawrence Exp.

Cupertino San Jose Sunnyvale San Jose San Jose

CA CA CA CA CA
8/25/2023 12/20/2023 7/9/2024 12/30/2025 2/8/2024
$9,300,000 $5,100,000 $4,500,000 $2,470,000 $550,000
58,806 44,431 30,056 27,443 5,227
$158 $115 $150 $90 $105

0.0% 0.0% 0.0% 0.0% 0.0%
Full 0.0% Full 0.0% Full 0.0% Full 0.0% Full 0.0% Full
THE )0~ ~ GROUP
0 Walnut Grove
San Jose
CA
6/7/2024
$560,000
6,098
$92

0.0%

TDG 2026 001 46

SALES COMPARISON APPROACH CONCLUSION
A total of six (6) land comparables are used in the sales comparison approach to land value. The land comparable data are sufficient in quality and quantity to estimate the hypothetical subject’s market value, with key physical and non -physical characteristics analyzed and reconciled in the adjustment process.

The comparable sales reflect final adjusted unit prices ranging from $90 to $156 per square foot, with only one adjustment applied for conditions of sale (Comparable 1).

Market conditions adjustments applied through 12/31/2024 ranged from 0.0% to 6.6%, and subsequent market trend adjustments applied through 12/31/2025 ranged from 0.0% to 1.8%; these adjustments were applied consistently with the scope of work for this appraisal report.

These comparables are selectively weighted based on their qualitative characteristics within the dataset to arrive at the reconciled value per SF for the hypothetical subject (reflecting highest and best use of single family) of $130

My conclusion is shown below:

RECONCILED MARKET VALUE PER SF (SINGLE FAMILY)

INDICATED VALUE PER LAND SF:

$130

THE )0~~ GROUP

TDG 2026 001 47
SALES COMPARISON APPROACH: MEDIUM DENSITY RESIDENTIAL

• The market in which the subject property competes is investigated; comparable sales, contracts for sale and current offerings are reviewed.

• The most pertinent data is further analyzed, and the quality of the transaction is determined.

• The most meaningful unit of value for the subject property is determined.

• Each comparable sale is analyzed and where appropriate, adjusted to equate with the hypothetical subject property.

• The value indication of each comparable sale is analyzed, and the data reconciled for a final indication of value via the Sales Comparison Approach.

MEDIUM DENSITY LAND COMPARABLES
I searched for comparables with a similar highest and best use of medium density development.

THE )0~~ GROUP

TDG 2026 001 48

LAND COMPARABLE SUMMARY TABLE

Medium Density Land Compo1ro1bles Summo1ry
Address Oo1te Book/Pa,e or Referencl!! Acres Zon1nc
City Assassor Parcel No Pnce Price Per Acre Pnc• Per Sf Comp Sale Comments
Subject Santa Clara Medium 12/31 /202 5 NA 1.00 High Density This Is the hypo t hetlcal subject property.

Density Lot Residentia l
Santa Clara NA NA NA Good
479 Boynton Ave 9/10/2024 25710271 0.37 MUN Sale of 479 Boynton Ave, San Jose, CA 95117 involved one parce l (APN 303-48-020) conveyed by Grant Deed from Jessica Briscoe {Grantor ) to Dreamhouse5 Investmen t LLC, A California Limited Liability Company {Grantee).

The deed Is dated 10/04/2024 and was recorded 10/10/2 024 in Santa Clara County as Document No. 25710271.

Total considera tion for the sale was $2,000,000. Zoning Indicates MUN w ith deve lopment potential of up to -30 San Jose 303-48-020 $2,000,000 $5,405 ,405 $124.09 dwelling units per acre (subject to municipa l standards and approvals). 320 Virginia Ave 10/18/2024 25714034 2.16 PO (See Comments) Sale of 320 Virginia Ave, Campbell, CA 95008 involved one parcel (APN 404-07-033) conve yed by Grant Deed from Vop Ref Virginia, LLC, A California Limited Liability Company (Gran tor) to Kb Home South Bay Inc., A Californ ia Corporation (Grantee). The deed was dated 10/18/202 4 and recorded 10/18/2024 In Santa Clara County as Document No. 2571 4034.The reported consideration for the sale was $19,385,000, and the site contains approximately 2.16 acres. The project description indi cates a proposed medium-density residen t ial Campbell 404--07-033 $19,385,000 $8,974,537 $206.03
community consisting of 40 townhome-s tyle condominium units with central common open space and t wo private streets, supported by 94 on-site parking spaces (garage and guest) plus typical landscaplng/hardscape and stormwater Imp roveme nts. Based on 2.08 acres described for the vacan t development site, the state d plan refle cts a site density of 19.22 units per acre, however, based on net acreage, thi s fa lls above 20 OU/acre and is therefore induded in the medlum densi ty residential analysis. 3 3 155 El Camino Real 2/14/2023 25436710 2.44 PD (See Comments) Sale of 3155 El Camino Real, Santa Clara, CA Involved two parce ls (APNs 220-32-057 and 220-32-058) consolldated for a planned resldential redevelopment , wi t h an approved rezoning from Thoroughfare Commercial (CT) to Planned Develop ment (PD) to allow cons truct ion of a 60-unit, three -story townh ome project. The property is iden tified with Bowers Plaza GP as seller and Toll West Coast LLC as buyer . The recorded reference for the Santa Clara 220-32-057, -058 $ 16,500,000 $6,762,29S $1S5.24 transaction ls Documen t No. 25436710. The site contains approximately 2.44 acres. imp lying a concept ual density of roug hly 24.6 OU/AC based on t he stated 60-u nlt plan (60 + 2.44) , subject to flnal plans and conditions of approval.
541 Page Street 5/5/2025 25801965 0.31 R3 Sale of 541 Page Street, San Jose, CA 95126-3385 Involved one parcel (APN 277-19-035) conveyed by Gran t Deed fro m Page Prime Capita l LLC, A California Limited Llabillty Company (Grantor) to Amlrhosseln Karba laelnama tmoeini and Shabdiz Sharif, husband and wife as Joint tenan ts (Grantee). The deed was dated 04/10/2025 and recorded 05/05/2025 in Santa Clara County as Document No. 25801965. Tota l considera tion for San Jose 277-19-035 $1,785,000 $5,758,06S $132.19 the sale was $1,785,000. The property is zoned R3 on an approximately 0.31-acre site (13,576 SF); for medium- density residen tial context, R3 generally supports small multi-family development potentlal subject to City of San Jose standards and approvals.
416 Crescent 3/21/2025 25780593 0.88 R3 Sale of 416 Crescent Ave, Sunnyva le, CA 94087 involved t wo parcels (APNs 211-35-009 and 211-35-008) and sold 03/21/2025 for $10,100,000 under redevelopment condi tions, with Document No. 25780593 recorded in Santa Clara County. The site Is reported at 0.88 acres and Is zoned R3. Existing Improvements Include one single- fam ily residence and an approx lmately 6,000 SF shed on a portion of the property, and the buye r Intended to retain the Sunnyv ale 211-35-009, 211- $10,100,000 $11,477,273 $263.48 house while developing the balance of t he site with 18 townhome-style condominium uni ts. Based on the stated 35-008 18-uni t concep t, the im plied density is approxima tely 20.5 DU/AC (18 + 0.88). An adjustment is warranted versus unimproved land sales to account for the contribu tory value/utillty of the retained residence and other on-site Improvements.
972 Elm Street 3/18/2025 35778879 0.44 PO (See Comments) Sale of 972 Elm St, San Jose, CA 95126 (APN 230- 41-025) sold 03/18/2025 for $3,580,000 after 63 days on market. The site conta ins approx imate ly 0.4362 acres (19,000 SF). The property was marketed as a redevelopment opportunity and notes the parcel was recen t ly entitled for 8 single-family homes, with an additional stated potentlal of up to 13 dwelllng unit's (cit ing "city approved density of 30 units/acre·). subject to San Jose 230-41-025 $3,580,000 $8,136,364 $186.79 final plans and approvals. The subject is also reported as appr oved for rezoning to Planned Development (PO), and a multifamily projec t is expected in the med ium-density range.

THE )0~~ GROUP

TDG 2026 001 49

PROPERTY RIGHTS
The property right appraised was the fee simple estate. All of the land comparables transferred (or are marketing) the fee simple interest, thus, there are no adjustments warranted.

The comparables sold for cash or with conventional forms of financing; thus, no adjustments were warranted.

All Comparables reflected closed transactions, however, Comparable 2 was nearly entitled for development and sold as lot ready to build, and therefore we have applied a -25% adjustment to reflect the decrease in THE XR~ GROUP

TDG 2026 001 50
entitlement risk for the buyer. Additionally, Comparable 5 was approximately 30% improved, and the buyer planned to retain the improvements for cash flow (CoStar) and therefore a -30% adjustment is applied.

According to our analysis of market conditions over this time period (see market conditions section) we have made the following market conditions adjustments.

Market Conditions Adjustments
Multifamily
Timeframe Reconciled Adjustment
Jan 2023 - Dec 2024 2.50%
Jan 2025 - Dec 2025 5.00%

These adjustments are displayed visually in an adjustment grid on the following page.

THE )0~~ GROUP

TDG 2026 001 51

MEDIUM DENSITY RESIDENTIAL LAND COMPARABLES ADJUSTMENT GRID

Medium Density Land Comparables Adjustment Grid
Land Analysis Grid Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Comp 6 Address Meidum Density Lot
City
State
Date
Price
Land SF
Price Per SF
Transaction Adjustments
Property Rights
Financing
Santa Clara
CA
12/31 / 2026
NA
43,560
NA
Fee Simpl e
Conventional
479 Boynton Ave 320 Virginia Ave 3155 El Camin o Real 541 Page Street 416 Crescent Ave San Jose Campbell Santa Clara San Jose Sunnyvale

CA CA CA CA CA
3/ 10/ 2024 10/ 18/ 2024 2/1 4/2023 5/ 5/2025 3/ 21/2025 $2,000,000 $19,385,000 $16,500,000 $1,785,000 $10,100,000 16,11 7 94,090 106,286 13,504 38,333
$124 $206 $155 $132 $263

0.0% 0.0% 0.0% 0.0% 0.0%
Full 0.0% Full 0.0% Full 0.0% Full 0.0% Full
THE )0~ ~ GROUP
372 Elm Street
San Jose
CA
3/ 18/ 2025
$3,580,000
19,166
$187

0.0%

TDG 2026 001 52

The comparable sales reflect final adjusted unit prices ranging from $133 to $194 per square foot, with two adjustments applied for conditions of sale (Comparable 2 at -25.0% and Comparable 5 at -30.0%).

My conclusion is shown below:

RECONCILED MARKET VALUE PER SF (MEDIUM DENSITY RESIDENTIAL)

INDICATED VALUE PER LAND SF:

$170

THE )0~~ GROUP

TDG 2026 001 53
SALES COMPARISON APPROACH: HIGH DENSITY RESIDENTIAL

• The market in which the subject property competes is investigated; comparable sales, contracts for sale and current offerings are reviewed.

• The most pertinent data is further analyzed, and the quality of the transaction is determined.

• The most meaningful unit of value for the subject property is determined.

• Each comparable sale is analyzed and where appropriate, adjusted to equate with the hypothetical subject property.

• The value indication of each comparable sale is analyzed, and the data reconciled for a final indication of value via the Sales Comparison Approach.

HIGH DENSITY LAND COMPARABLES
I searched for comparables with a similar highest and best use of high density residential development.

I have researched four land comparables for this analysis. All of the comparables reflect closed sales and are documented on the following pages with a summary grid, location map and aerial photographs.

THE )0~~ GROUP

TDG 2026 001 54

HIGH DENSITY LAND COMPARABLE SUMMARY TABLE

Land Comparables Summary
Address Date Book/Page or Reference Acres Zoning
City Assessor Parcel No Price Price Per Acre Price Per SF Comp
Sale Comments
Subject Santa Clara Average 12/31/2025 NA 1.00 High Density This is the hypot hetical subject proper ty.

High Density Lot Resident ial
Santa Clara NA NA NA NA
434 Crescent Ave 3/25/2024 25613899 0.26 R4 The sale of 434 Crescent Ave, Sunnyvale, CA 94087 invo lved one parcel (APN 211-35-030) conveyed by Grant Deed from Edmond Ghando ur And Emmanuella Amy Ullman, As Co-Trustees Of The Jensen Fami ly Trust Dated Ma rch 14, 1985 (Granter) to Crescent Eternal LLC, A California Limite d Liability Company (Grantee). The deed is dated 01/30/2024 and was recorded 03/25/202 4 in Santa Clara County as Docum ent No. 25613899. Total Sunnyvale 211-35-030 $2,720,000 $10,461,538 $240.16 consideration for the sale was $2,720,000, wit h close of escrow reported 03/25/202 4 and 30 days on market.

The site cont ains approx imate ly 0.26 acres and is zoned R4, wh ich allows for up to 50 dwelling unit s per acre; no project approvals or specifi c development plans were indicated for this property in the provided materials. 777 Sarat oga Road 10/ 14/2025 25883223 5.22 PO (See Comments) Sale of 777 Sunnyvale Saratoga Rd, Sunnyvale, CA involved 1 parcel (APN 201-36-002) conveyed by Grant Deed fr om Mard it Properties, A Limited Part nershi p (Granter) to M rp Hnhb, LLC, A Delaware Limited Liabilit y Company (Grantee). The deed was executed 10/10/2025 and recorded 10/14/2025 in Santa Clara County as Doc. No. 25883223. Tota l considerat ion for the sale was $44,250,000. The property is ident ified as a redevelopment Sunnyvale 201-36-002 $44,250,000 $8,477,011 $194.61 opport unity with a proposed 242 -unit plan (162 apartments+ 80 townhomes) including a two-leve l parking garage and approximately 2,000 SF of groun d-floor comme rcial space, reported ly approve d by t he City of Sunnyvale (July). Using a land area of 5.22 acres, t he pro posed density is approximate ly 46.4 DU/AC (242 unit s+

5.22 acres).

O Seely Ave 1/31/202 5 25760386 11.31 PO (See Comments) Sale of Seely Ave (APN 097- 15-034), San Jose, CA 9513 1 involved one APN totaling 11.31 acres and was conveyed by Grant Deed from Seely Development Partners LLC, a Delaware limite d liability company (Granter) to Summer hill Epic Way LLC, a California limited liability company (Grantee). The grant deed was dated 01/31/2025 and recorded 01/31/2025 in Santa Clara County as Documen t No. 25760386, wit h a reported sale price of $73,627,500. The broader Planned Development concept for t he overall project calls for 1,472 residentia l units San Jose 097-15-034 $73,627 ,500 $6,509,947 $149.45 (town homes and mid-rise apartmen t s), 18,965 SF of neighbo rhood retail, and a 2.5-acre public park (plus dedication of~0.11 acre for a munici pal water well site); applying t he 1,472-unit progra m to the tota l projec t r site of approximately 22 acres implies a conceptual density of approximately 67 OU/AC (1,472 + 22), notin g this sale represents only part of the overall project area and t he fi nal unit allocat ion to this APN may differ. 4 1905 Tarob Court 8/5/2025 25849557 2.36 R4 (PD) Sale of 1905 Tarob Ct, Milpi tas, CA invol ved 1 parcel (APN 086-36-041) conveyed by Grant Deed fro m Geomax, A California General Part nership (Granto r) to Toll West Coast LLC, A Delaware Limited Liability Company (Grantee).

The deed was executed 08/01/2025 and recorded 08/05/2025 in Santa Clara County as Doc. No. 25849557. Total Milpitas 086-36-041 $13,500,000 $5,720,339 $131.32
consideration for t he sale was $13,500 ,000. The site is described as part of a phased redevelopment known as Parkside West, originally proposed to include townhomes plus accessory dwelli ng units (ADUs), is now in t he process of updated approvals and is expected to be developed a much higher density in accordance wit h the R4 zoning.

THE )0~~ GROUP

TDG 2026 001 55

PROPERTY RIGHTS
The property right appraised was the fee simple estate. All of the land comparables transferred (or are marketing) the fee simple interest, thus, there are no adjustments warranted.

The comparables sold for cash or with conventional forms of financing; thus, no adjustments were warranted.

All Comparables reflected closed transactions, however, Comparable 4 featured significant improvements that required demolition prior to redevelopment. We have applied a percentage adjustment in accordance with estimated price per SF costs to demolish (reflected as % of total price). This resulted in an adjustment THE XR~ GROUP

TDG 2026 001 56
of 60% for comparable 4. Comparable 3 featured approximately 20% of the site, which per master plan , must be dedicated as parkland. Therefore a 20% adjustment was made to reflect net acreage for high density residential development.

According to our analysis of market conditions over this time period (see market conditions section) we have made the following market conditions adjustments.

Market Conditions Adjustments
Multifamily
Timeframe Reconciled Adjustment
Jan 2023 - Dec 2024 2.50%
Jan 2025 - Dec 2025 5.00%

These adjustments are displayed visually in an adjustment grid on the following page.

THE )0~~ GROUP

TDG 2026 001 57

HIGH DENSITY RESIDENTIAL LAND COMPARABLES ADJUSTMENT GRID

Land Comparables Adjustment Grid
Land Analysis Grid Comp 1 Comp 2 Comp 3 Comp 4
Address High Density Lot
City
State
Date
Price
Land SF
Price Per SF
Transaction Adjustments
Property Rights
Santa Clara
CA
12/31/2026
NA
43,560
so
Fee Sim ple
Conventional
434 Crescent Ave 777 Saratoga Road 0 Seely Ave 1905 Tarob Court Sunnyvale Sunnyvale San Jose M ilpitas

CA CA CA CA
3/25/2024 10/14/2025 1/31/2025 8/5/2025
$2,720,000 $44,250,000 $73,627 ,500 $13,500,000
11,326 227,383 492,664 102,802
$240 $195 $149 $131
Fee Simple
Full

0.0% Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0%

0.0% 0.0% Full 0.0% Full 0.0% Full
THE )0~ ~ GROUP

TDG 2026 001 58

SALES COMPARISON APPROACH CONCLUSION
A total of five (5) land comparables are used in the sales comparison approach to land value. The land comparable data are sufficient in quality and quantity to estimate the hypothetical subject’s market value, with key physical and non -physical characteristics analyzed and reconciled in the adjustment process.

The comparable sales reflect final adjusted unit prices ranging from $179 to $257 per square foot, with two adjustments applied for conditions of sale (Comparable 3 at +20.0% and Comparable 5 at +100.0%).

My conclusion is shown below:

RECONCILED MARKET VALUE PER SF (HIGH DENSITY RESIDENTIAL)

INDICATED VALUE PER LAND SF:

$200

THE )0~~ GROUP

TDG 2026 001 59
SALES COMPARISON APPROACH: COMMERCIAL

• The market in which the subject property competes is investigated; comparable sales, contracts for sale and current offerings are reviewed.

• The most pertinent data is further analyzed, and the quality of the transaction is determined.

• The most meaningful unit of value for the subject property is determined.

• Each comparable sale is analyzed and where appropriate, adjusted to equate with the hypothetical subject property.

• The value indication of each comparable sale is analyzed, and the data reconciled for a final indication of value via the Sales Comparison Approach.

COMMERCIAL LAND COMPARABLES
I searched for comparables with a similar highest and best use of commercial development. Comparisons are made to the hypothetical subject relative to differences or similarities in time, location, physical characteristics, and sales conditions. Percentage or dollar adjustments are then made to the selling and/or listing price of each comparable for property rights, financing, time of sale, and unusual sales conditions; qualitative comparisons are made for physical differences between each comparable and the subject. A range of values results from this approach. I correlated the range into a final value by selectively rating the comparables as to their overall comparative value to the hypothetical subject property, which is meant to represent the average of values analyzed.

THE )0~~ GROUP

TDG 2026 001 60

COMMERCIAL LAND COMPARABLE SUMMARY TABLE

Land Comparable, Summary
Address Date Book/Pace or Reference Acres Zoninc Utilit1e, City Assessor Pucel No Pnce Pnc• Per Acr• Price Per SF
Comp Topocraphy Sale Comments
Subject Santa Clara Average 12/31/2025 NA 1.00 Commercial (CC, CN, All Available This is the hypothetlcal subject property.

Commercial Lot CR,OA, Etc.)
Santa Clara NA NA NA Good level
2035 White Oak Ln 12/15/2023 25575802 0.69 CN All Available 2035 White Oak Ln, Santa Clara, CA ls a ±0.69-acre (approximately 30,056 SF) land sale that closed for $3,700,000 in December 2023, equating to roughly $5.36 million per acre and S123 per land SF. The property is identified as APN 213-30-053 and is zoned Neighborhood Commercial (CN/CN-equlvalent per public records and CoStar). The Santa Clara 213-30-053 53,700,000 55,362,319 S123.10 Generally Level Grant Deed (Doc #25575802) was recorded on 12/15/2023, transferring title from Florence Sordello, Trustee of the Sordello Famity Trust 8, to Equllon Enterprises UC dba Shell OIi Products US. At the time of sale, the site was considered a non-income-producing asset, supporting its treatment as a redevelopment land comp.

Santa Teresa St 5/22/2023 25478281 10.62 QC All Avallable The Santa Teresa St sale ln San Jose Involved a two-parcel assemblage (APNs 2S9-23-024 and 259-23-020) totallng 10.62 acres (±462,781 SF) that sold for $56,500,000 on 05/22/2023 (Doc #25478281). The transaction equates to approximately 55.32 million per acre and $122 per land SF, reflecting downt own San Jose land pricing levels. Title t ransferred via Grant Deed from Insight Rail Yard, LLC to LS Power Grid California, LLC, as confirmed by San Jose 259·23-020, 259· 556,500,000 55,320,151 S122.13 Generally Level the recorded deed. Costar characterizes the property as raw land zoned DC (Downtown Primary Commercial) at 23-024 the time of sale. This transaction represents a large-scale urban redevelopment land assemblage within the San Jose downtown market.
160 Saratoga Ave 6/27/2025 25827811 1.21 OG All Available The sale of 160 Saratoga Ave, Santa Clara, CA involve d a two-parcel assemblage (APNs 294-38-010 and 294-38· 013) tota ling approximately 1.21 acres (±52,708 SF). The property sold for $3,888,000 on 06/27/2025 (Doc #25827811) , reflecting a land value of approximately $3.21 mllllon per acre and $73.76 per land SF. Tltle tran sferred via Grant Deed from The Tim and Emily Bonasera Revocable Living Trust to 7A Holdings LLC. Costar Santa Clara 294-38-010, 294· 53,888,000 53,213,223 S73.77 Generally level characterizes the transaction as a land redevelopment sale with zoning reported as OG, and the analysis is 38-013 presented on a land-only basis. This sale reflects small-scale com mercial infill land pricing within the Santa Clara market
5000 Stevens Creek 8/29/2025 25862575 1.00 C3 All Avallable The sale of 5000 Stevens Creek Blvd, San Jose, CA Involved a two-pa rcel assemblage (APNs 296-27-003 and 296· Blvd 27-004) totaling approximately 1.00 acre (t43,560 SF). The property sold for $5,800,000 with a recording date of 08/29/2025 under Document No. 25862575, reflecting pricing of approximatety $5.8 million per acre and $133 San Jose 296·27-003, 296· 55,800,000 55,800,000 S133.15 Generally Level per land SF. Title transferred via Grant Deed from Tronis Stevens Creek-Tully Propert ies LP. to Pacific American Properties, LLC, as confirmed by the recorded deed. CoStar characterizes the tra nsaction as a land redevelopment 27-004 sate with C3 zoning, and the site was analyzed on a land-only basis at the time of sale. This transaction reflects small-scale commercial land pricing along the Stevens Creek corridor within the San Jose market. 213-235 N 4th St 5/28/2024 25641932 0.21 C3 All Available The sale of 213-235 N 4th St, San Jose, CA Involved a two-parcel assemblage (APNs 467-01-035 and 467-01-036) total ing approximately 0.21 acres (t9,034 SF) in the downtown San Jose market. The property sold for $750,000 with a recording date of 05/28/2024 under Document No. 25641932, reflecting land pricing of approximatety $3.57 million per acre and $83 per land SF. Title transferred via Grant Deed from The Elaine Evans Living Trust San Jose 467·01-035, 467· S750,000 53,571,429 S81.99 Generally Level (through Its successor trustee) to Buelow 3rd Street UC, as confirmed by the recorded deed. Costar characterizes 01-036 the property as a land redevelopment sale with C3 zoning, and the transact ion Is analyzed on a land-only basis.

This sale reflects smaller-scale urban infill land pricing within the Downtown San Jose commercial market. 4340 Stevens Creek 2/20/2024 25599995 1.30 CG All Avallable The sale of 4340 Stevens Creek Blvd, San Jose, CA Involved a two-parcel assemblage (portions of APNs 296-38· Blvd 014 and 296-38-013) totaling approximately 1.30 acres (±56,628 SF). The property sold for $3,470,000 with a recording date of 02/20/2024 under Document No. 25599995 , reflecting land pricing of approximately $2.67 San Jose 296-38-014, 296· 53,470,000 52,669,231 S61.28 Generally Level million per acre and $61 per land SF. Title transferred via Grant Deed from MPG Stevens Creek Owner, LLC to San Jose Stevens Creek Associates, LP, as confirmed by the recorded deed. Costar characterizes the transact ion as a 38-013 land redevelopment sale with CG zoning, and the analysis Is presented on a land-only basis. This sale reflects mid- scale commercial corridor land pricing along the Stevens Creek Boulevard corridor within t he San Jose market.

THE )0~ ~ GROUP

TDG 2026 001 61

PROPERTY RIGHTS
The property right appraised was the fee simple estate. All of the land comparables transferred (or are marketing) the fee simple interest, thus, there are no adjustments warranted.

The comparables sold for cash or with conventional forms of financing; thus, no adjustments were warranted.

All comparables reflected closed transactions and normal market conditions of sale; thus, no adjustments were warranted.

THE XR~ GROUP

TDG 2026 001 62

According to our analysis of market conditions over this time period (see market conditions section), we have made the following market conditions adjustments.

Market Conditions Adjustments
Commercial
Timeframe Reconciled Adjustment
Jan 2023 - Dec 2024 -8.00%
Jan 2025 - Dec 2025 2.00%

These adjustments are displayed visually in an adjustment grid on the following page.

THE )0~~ GROUP

TDG 2026 001 63

COMMERCIAL LAND COMPARABLES ADJUSTMENT GRID

Commercial land Comparables Adjustment Grid
land Analysis Grid Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Comp 6 Address Average Commercial
City
State
Date
Price
land SF
Price Per SF
Transaction Adjustments
Property Rights
Financing
Condi tions of Sale
l ot
Santa Clara
CA
12/3 1/2026
NA
43,560
$0
Fee Simple
Conventional
Normal
2035 White Oak ln Santa Teresa St 160 Saratoga Ave 5000 Stevens Creek 213-235 N 4t h St 4340 Stevens Creek Blvd Blvd
Santa Clara San Jose Santa Clara San Jose San Jose San Jose

CA CA CA CA CA CA
12/15 / 2023 5/22 / 2023 6/27 / 2025 8/29 / 2025 5/28 / 2024 2/20/ 2024 $3,700 ,000 $56,500,000 $3,888,000 $5,800,000 $750,000 $3,740 ,000 30,056 462,607 52,708 43,560 9,148 56,628
$123 $122 $74 $133 $82 $66
Fee Simple
Full
Norm al

0.0% Fee Simple 0 .0% Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0 .0%

0.0%

0.0% Full 0.0% Full 0.0% Full 0.0% Full 0.0% Full

0.0% Norm al 0.0% Norm al 0.0% Norm al 0.0% Norm al 0.0% Norm al THE )0~ ~ GROUP

TDG 2026 001 64

The comparable sales reflect final adjusted unit prices ranging from $63 to $134 per square foot, with no adjustments applied for conditions of sale.

RECONCILED MARKET VALUE PER SF (COMMERCIAL)

INDICATED VALUE PER LAND SF:

$110

THE )0~~ GROUP

TDG 2026 001 65
SALES COMPARISON APPROACH: INDUSTRIAL

• The market in which the subject property competes is investigated; comparable sales, contracts for sale and current offerings are reviewed.

• The most pertinent data is further analyzed, and the quality of the transaction is determined.

• The most meaningful unit of value for the subject property is determined.

• Each comparable sale is analyzed and where appropriate, adjusted to equate with the hypothetical subject property.

• The value indication of each comparable sale is analyzed, and the data reconciled for a final indication of value via the Sales Comparison Approach.

INDUSTRIAL LAND COMPARABLES
I searched for comparables with a similar highest and best use of industrial development. Comparisons are made to the hypothetical subject relative to differences or similarities in time, location, physical characteristics, and sales conditions. Percentage or dollar adjustments are then made to the selling and/or listing price of each comparable for property rights, financing, time of sale, and unusual sales conditions; qualitative comparisons are made for physical differences between each comparable and the subject. A range of values results from this approach. I correlated the range into a final value by selectively rating the comparables as to their overall comparative value to the hypothetical subject property, which is meant to represent the average of values analyzed.

I have researched seven land comparables for this analysis. All of the comparables reflect closed sales and are documented on the following pages with a summary grid, location map and aerial photographs.

THE )0~~ GROUP

TDG 2026 001 66

LAND COMPARABLE SUMMARY TABLE

land Comparables Summary
Address Date Book/Page or Acres Zomng
City As:s@ssor Parc@I No Prtcl!! Pnc@ P@r Acri! Pnc@ P@r SF Comp
Sale Comments
Subject Average Industrial 12/31/2025 NA 1.00 Industrial (Ml, MH, This is the hypot hetical subject indust rial lot.

Lot MP, Etc.)
Santa Clara NA NA NA Good
Freedom Cir 10/25/2023 25549436 13.28 ML This comparable sale consists of a two-parcel land assemblage totaling 13.28 acres located along Freedom Circle in Santa Clara, California. The site was vacant at the time of sale and is zoned CP, supporting commercia l or planned development uses. Title transferred by Grant Deed from Freedom Circle Venture, Uc, A Delaware Limited Liability Company to Cre-Gs Freedom Circle Phase I Owner, Lie, A Delaware limited Santa Clara 104-40-036, 104- $50,000,000 $3,765,060 $86.43 Liability Company. The transaction closed ln October 2023 and was recorded on October 25, 2023, under 40-021 Document No. 25549436. The reported consideration of $50,000,000 reflects a large-scale land acquisition within the North Santa Clara submarke t, reported ly positioned for future high-density residential or mixed- 1535-1575 12/30 / 2024 25748931 3.62 HI This comparable sale represents a two-property indust rlal land portfolio located along Industrial Avenue ln Indust rial Ave San Jose, California. totaling approximately 3.62 acres. The site was previously developed and is zoned HI (Heavy Industrial), supporting a range of industrial and contractor-oriented uses. Title transferred by Grant Deed from Lba Rvl-Company Xllv, Uc, A Delaware Limited Uablllty Company to Zs Propco Of San Jose, Lie, A San Jose 237-30-031 $12,000 ,000 $3,314,917 $76.10 Delaware lim ited Liability Company. The transaction closed on December 27, 2024, and was recorded on December 30, 2024, under Document No. 25748931. The total reported consideration was $12,000,000, reflecting a portfolio acquisition within the San Jose industrial market with pricing consistent with industria l redevelopment or repositioning potential .
420 Nelo Street 7/15/2025 25835293 2.47 MH This comparable sale consists of two parcels located at 420 Nelo Street In Santa Clara, California, with a combined site area of approximately 2.47 acres. The prope rty was improved as an equipment yard at the time of transfer and is zoned MH, allowing for heavy indust rial uses. Title conveyed by Grant Deed from Dcmg Properties, Uc, A Callfornla Limited Liability Company to Fr Ca Property Holding 14, l..p, A Delaware Santa Clara 101-15-040 , 101- $10,625,000 $4,301,619 $98.75 Limited Partnership. The transaction closed on July 11, 2025, and was recorded on July 15, 2025, under 15-043 Document No. 25835293. The reported consideration of $10,625,000 reflects a portfolio transaction involving two parcels within the North Santa Clara Industrial market , consistent with Investor demand for industrial outdoor storage and redevelopment-oriented assets. 3625 Peterson Way 12/11 / 2025 25917029 14.76 Ml This comparable sale consists of a 14.76-acre site located at 3625 Peterson Way in Santa Clara, California, within the North Santa Clara subma rket. Although Improved wit h a 218,375 square foot research and development facility at the time of transfer, the transaction was analyzed and marketed on a price-per-land- area basis, reflecting redevelopment potential rather than contributory building value. The property Is zoned Santa Clara 216-30 -049 $90,000,000 $6,097 ,561 $139.98 ML. which supports manufacturing. loglstlcs, and other indust rial redevelopment uses consistent with the surrounding employment corridor. Title transferred by Grant Deed from Bxp Peterson Lp, A Delaware Limited Partnership to 3625 Peterson Way, Uc, A Delaware Limited Liability Company, with the deed recorded on December 11, 2025, under Document No. 25917029. 387 Umbarger 11/30/2023 25569170 0.32 ML This comparable sale consists of a 0.32-acre industrial land parcel located on Umbarger Road in San Jose, Road Callfornla. The site was vacant at the time of transfer and is zoned ML, permitting a range of light industrlal and manufacturing uses. Title conveyed by Grant Deed to Parma Lie. The transaction closed on November San Jose 497-37-002 $815,000 $2,546,875 $58.47 28, 2023, and was recorded on November 30, 2023, under Document No. 25569 170. The reported consideration of $815,000 reflects a small lnflll lndust rlal land acquisition wi thin the East San Jose submarket, providing a relevant data point for smaller-scale industr ial yard or development sites. 681 Trimble Road 1/31/2025 25760384 11.22 IP This comparable sale consists of an 11.22-acre land parcel located at 681 E Trimble Road in San Jose, Callforn la, within the North San Jose Industrial corr idor. The site was improved as orchard land at the time of tran sfer and is zoned IP, allowing for industrial park and employmen t-oriented development . Title transferred by Grant Deed from Cms Investments , Uc, A California Limited Liability Company And Jdm San Jose 097-15-033 $42,000,000 $3,743,316 $85.93 Investments , Uc, A Callfornla Limited Liability Company to Seely Development Partners Uc, A Delaware limited Liability Company, The t ransaction closed and recorded on January 31, 2025, under Document No. 25760384. The reported consideration of $42,000,000 reflects a land acquisition withi n a major Industr ial and technology submarket, supporting its relevance as a comparab le for large-scale redevelopment-or iented land transactions.
550-600 E Brokaw 2/9/2024 25596686 19.78 M4 (San Jose) The sale of 550-600 E Brokaw Rd, San Jose, CA Involved a slngle parcel (APN 237-08-079) totaling Rd approximate ly 19.78 acres (±861,617 SF). The property sold for $80,000,000 with a recording date of 02/09/2024 under Document No. 25596686, reflecting land pricing of approximately $4.04 million per acre and $92.85 per land SF. ntle transferred via Grant Deed from Caracol Property Owner LLC to Super Micro San Jose 237-08-079 $80,000,000 $4,044,489 $92.85 Computer, Inc., as confirmed by the recorded deed. Although historically improved, the transaction is analyzed on a land redevelopment basis consistent with CoStar's site-level reporting and zoning of M4 (San Jose). This sate represents a large-scale North San Jose redevelopment land acquisition within an established industrial and technolo corridor.

THE )0~ ~ GROUP

TDG 2026 001 67

PROPERTY RIGHTS
The property right appraised was the fee simple estate. All of the land comparables transferred (or are marketing) the fee simple interest, thus, there are no adjustments warranted.

The comparables sold for cash or with conventional forms of financing; thus, no adjustments were warranted.

All comparables reflected closed transactions and normal market conditions of sale; thus, no adjustments were warranted.

THE XR~ GROUP

TDG 2026 001 68

MARKET CONDITIONS
Market conditions adjustments take into consideration appreciation or depreciation that has occurred in the market. All land comparables reflected sales that closed between October of 2023 and December of 2025. According to our analysis of market conditions over this time period (see market conditions section), we have made the following market conditions adjustments.

Market Conditions Adjustments
Industrial
Timeframe Reconciled Adjustment
Jan 2023 - Dec 2024 -2.00%
Jan 2025 - Dec 2025 -2.50%

These adjustments are displayed visually in an adjustment grid on the following page.

THE )0~~ GROUP

TDG 2026 001 69

INDUSTRIAL LAND COMPARABLES ADJUSTMENT GRID

Industrial Land Comparables Adjustment Grid
Land Analysis Grid Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Comp 6 Comp 7 Address
City
State
Date
Price
Land SF
Price Per SF
Transaction Adjustments
Property Rights
Financing
Conditions of Sale
Industrial Lot
Santa Clara
CA
12/31/2025
NA
43,560
NA
Fee Sim ple
Convent ional
Norm al
Freedom Cir 1535-1575 Indust rial
Ave
Santa Clara San Jose
CA CA
10/25/2023 12/30/2024
$50,000,000 $12,000 ,000
578,477 157,687
$86 $76
Fee Simple i 0.0% Fee Simple i 0.0%
Full 0.0% Full 0.0%
Norm al 0.0% Norma l 0.0%
420 Nelo Street 3625 Peterson Way
Santa Clara Santa Clara
CA CA
7/15/2025 12/11/2025
$10,625,000 $90,000 ,000
107,593 642,946
$99 $140
Fee Simple i 0.0% Fee Simple i 0.0%
Full 0.0% Full 0.0%
Normal 0.0% Normal 0.0%
THE )0~~ GROUP
387 Umbarger Road
San Jose
CA
11/30 / 202 3
$815 ,000
13,939
$58
Fee Simple i 0.0%
Full 0.0%
Norma l 0.0%
681 Timbl e Road
San Jose
CA
1/31/2025
$42,000,000
488,743
$86
Fee Simple i 0.0%
Full 0.0%
Norm al 0.0%
555-600 E Brokaw Street
San Jose
CA
2/9 / 2024
$80,000 ,000
861,617
Fee Simple
Full
Norm al
$93

0.0%

TDG 2026 001 70

SALES COMPARISON APPROACH CONCLUSION
A total of seven (7) land comparables are used in the sales comparison approach to land value.

The land comparable data are sufficient in quality and quantity to estimate the hypothetical subject’s market value, with key physical and non-physical characteristics analyzed and reconciled in the adjustment process.

The comparable sales reflect final adjusted unit prices ranging from $56 to $140 per square foot, with no adjustments applied for conditions of sale.

The reconciled land value conclusion is shown below:

RECONCILED MARKET VALUE PER SF (INDUSTRIAL)

INDICATED VALUE PER LAND SF:

$95

THE )0~~ GROUP

TDG 2026 001 71

WEIGHTED AVERAGE ANALYSIS
As part of the Sales Comparison Approach developmen t for the City of Santa Clara market area, an acreage -weighting analysis was completed to support reconciliation across multiple land use/property categories. The purpose of this step was to quantify the relative contribution of each property type to overall land area transacted in the City of Santa Clara during calendar year 2025, and to develop category weights for use in the final reconciliation of indicated values derived from separate Sales Comparison Approaches (SCAs) by property type.

The data utilized for this analysis was obtained from ParcelQuest records sourced from the City of Santa Clara. The dataset represents all sales transactions occurring within Santa Clara city limits in 2025, and includes zoning and property use descriptors along with site area information (including lot size in acres). Each sale record was categorized into one of five property types consistent with the valuation framework used in this assignment: (1) Single Family (Low Density Residential), (2) Medium Density Residential, (3) High Density Residential, (4) Commercial, and (5) Industrial. Classification was based primarily on the dataset’s property use descriptor fields and supported by zoning information where necessary. Site area (acres) was then aggregated by category to measure the total land area represented by each property type.

The results of this step are summarized in the accompanyin g table, which reports the total area represented by each category, and each category’s percentage of total acreage. These percentages represent the weighting factors to be applied to the indicated value conclusions developed independently for each property type’s Sales Comparison Approach.

Based on the 2025 Santa Clara sales dataset, total land area transacted sums to approximately 153 acres (about 6.66 million square feet), and the acreage distribution indicates that Single Family (Low Density) sales comprised the largest share at 42.28% of total acreage (64.62 acres).

Industrial sales represented the second -largest share at 34.29% (52.41 acres), followed by Commercial at 10.14% (15.49 acres). Medium Density Residential accounted for 7.46% (11.40 acres), while High -Density Residential repres ented 5.83% (8.91 acres). These percentages were adopted as the category weights to be applied to the concluded Sales Comparison Approach indications for each property type in the reconciliation below. 2025 Santa Clara Sales by Category
Sale Type Total Acreage Tota l SF % of Tota l (Weight)
Single Fam ily (Low Density) 64.62 2,8 14,84 7 42.28%
Med ium Density Resident ial 11.4 496,584 7.46%
High-Density Residential 8.9 1 388,120 5.83 %
Commercial 15.49 674,744 10.1 4%
Indust rial 52.41 2,282 ,980 34.29 %
152 .83 6,657 ,275 100 .00%
THE )0~ ~ GROUP

TDG 2026 001 72

WEIGHTED AVERAGE CONCLUSION
Below, t he reconciled price -per-square-foot indications are converted to price -per-acre conclusions and then applied to the acreage-derived category weights from the 2025 Santa Clara sales dataset. This weighting procedure reflects the relative share of land area transacted by property type during the analysis per iod and provides a market -supported basis for combining the category indications into a single citywide conclusion.

Applying the category weights (42.28% Single Family/Low Density, 7.46% Medium Density Residential, 5.83% High -Density Residential, 10.14% Commercial, and 34.29% Industrial) to the respective concluded price -per-acre indications results in a weighted value indication of $5,359,407.72 per acre, rounded to $5,359,000 per acre.

This weighted value is developed to represent the average value of one acre of land, reflecting all use types in the City of Santa Clara for 2025. In the next section, we will develop adjustments based on the indicated value difference according to Zip cod e. Based on our analysis, 95050 is consistently the median zip code in terms of average value, and therefore the figure concluded above will serve as the baseline for comparison, as well as the concluded value for Zip code 95050.

Land Use Price Per SF Price Per Acre x Weighted Average = Weighted Value Single Family (Low Density) $130.00 $5,662,800.00 42.28% $2,394,360.64 Medium Density Residential $170.00 $7,405,200.00 7.46% $552,373.75 High-Density Residential $200.00 $8,712,000.00 5.83% $507,910.23 Commercial $110.00 $4,791,600.00 10.14% $485,649.96
Industrial $95.00 $4,138,200.00 34.29% $1,419,113.15
Total $5,359,407.72
Rounded $5,359,000.00
Weighting
THE )0~~ GROUP

TDG 2026 001 73

ZIP CODE WEIGHTING ANALYSIS
As part of the scope of work for this appraisal assignment, location differences between the City’s primary zip codes (95050, 95051, and 95054) were analyzed to develop generalized zip -code adjustments. The intent of this step is to establish reasonable, market -supported directional adjustments that reduce broad locational bias when applied across the City’s major land -use categories (single family/low density residential, medium density residential, high density residential, commercial, and industrial).

ZIP CODE TREND ANALYSIS
Zip-level residential pricing trends were evaluated using two complementary indicators derived from MLS reporting. First, the median sales price chart (five-year trend, rolling 12 months) shows a consistent ranking over time in which 95051 trends above 950 50, while 95054 trends below 95050. Second, the MLS rolling 12-month median price per square foot series indicates the same directional relationship on a price-efficiency basis: 95051 has historically exceeded 95050, while 95054 has trended below 95050. Ta ken together, the median price and median $/SF indicators are directionally consistent and support that, on an aggregated basis, 95050 functions as the most “average” pricing area, with 95051 generally superior and 95054 generally inferior.

Although these median indicators demonstrate meaningful spreads at certain points in time, a tempered reconciliation is appropriate for this assignment given the context and the intended application of the adjustment. Both metrics reflect the mix of sales within each rolling period including differences in size, age/condition, renovations, product type, and neighborhood pocket effects. In addition, zip code boundaries do not align perfectly with neighborhood quality; market appeal varies within each zip and overlaps across zip boundaries, making a smaller differential more supportable as a generalized citywide factor.

Further, these adjustments are applied across multiple land -use categories. While the MLS - reported median indicators reflect a market sample that includes a mix of marketed transactions and therefore provides a useful gauge of general pricing trends by zip code, the broader study reconciles value conclusions across both residential and nonresidential uses; accordingly, a conservative zip factor is appropriate. In addition, MLS-reported metrics do not represent all sales activity citywide and are not propert y-matched measures of location; therefore, the observed spreads are relied upon primarily to confirm direction and inform magnitude rather than dictate the final adjustment.

THE )0~~ GROUP

TDG 2026 001 74
CONCLUDED ZIP CODE ADJUSTMENTS (95050 BASELINE)
Based on the consistent directional evidence from both median sales price (graphic) and median $/SF (MLS rolling 12 -month series), and recognizing the need for a n adjustment suitable for citywide application across property types, the following zip code adjustments are concluded:

Zip Code Adjustments Conclusion
Zip Code Reconciled Adj. Concluded Price Per Acre
95051 4% $5,573,000
95050 0% $5,359,000
95054 -6% $5,037,000

These adjustments intentionally temper the larger spreads implied by certain median endpoints and rolling periods, while still reflecting the persistent ranking shown in both indicators. The concluded differentials are considered reasonable and supportable for use as generalized zip-level factors within the broader reconciliation of average land value indicators across the City of Santa Clara.

THE )0~~ GROUP

TDG 2026 001 75

FINAL RECONCILIATION

The process of reconciliation involves the analysis of each approach to value. The quality of data applied the significance of each approach as it relates to market behavior and defensibility of each approach are considered and weighed. Finally, each is considered separately and comparatively with each other.

In this assignment, the primary and most defensible value evidence was the Sales Comparison Approach. We conducted a total of five sales comparison approaches, one for each of the established land -use categories (very low -, low -, medium -, and high -density residential, commercial, and industrial). The results of these analyses were weighted based on the proportion of total transacted acreage represented by each category in 2025 . Following this weighting procedure, zip code adjustments were applied using 95050 as the baseline market area, resulting in indicated per acre values for each zip code. Our conclusions are shown below:

Based on the data and analyses developed in this appraisal, I reconciled the following value as of December 31, 202 5, subject to the Hypothetical Conditions, Extraordinary Assumptions, and General Conditions and Assumptions:

The exposure time is estimated at 6 months and the marketing time is estimated at 6 months.

final Reconciliation
Zip Code Concluded Price Per Acre
9505 1
95050
9505 4
$5,573,000
$5,359 ,000
$5,037,000
THE )0~~ GROUP

TDG 2026 001 76

CERTIFICATION STATEMENT

I certify that, to the best of my knowledge and belief:

 The statements of fact contained in this report are true and correct.

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

 I have no present or prospective future interest in the property that is the subject of this report, and have no personal interest with respect to the parties involved.

 I have no bias with respect to the property that is the subject of this report, or to the parties involved with this assignment.

 My engagement in this assignment was not contingent upon developing or reporting predetermined results.

 My 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 estimate, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

 My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP).

 I certify sufficient competence to appraise this property through education and experience, in addition to the internal resources of the appraisal firm.

 As of the date of this report, Lance W. Doré, MAI, FRICS has completed the continuing education program for designated members of the Appraisal Institute.

 I have performed no services, as appraisers, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.

 Lance W. Doré, MAI, FRICS did not make an inspection of the subject property as it is hypothetical.

Respectfully submitted,

Lance W. Doré, MAI, FRICS
President / CEO
The Doré Group
AG002464
[email protected]

THE )0~~ GROUP

TDG 2026 001 77

CERTIFICATION STATEMENT

I certify that, to the best of my knowledge and belief:

 The statements of fact contained in this report are true and correct.

 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.

 I have no present or prospective future interest in the property that is the subject of this report and have no personal inte rest with respect to the parties involved.

 I have no bias with respect to the property that is the subject of this report, or to the parties involved with this assignment.

 My engagement in this assignment was not contingent upon developing or reporting predetermined results.

 My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP).

 I certify sufficient competence to appraise this property through education and experience, in addition to the internal resources of the appraisal firm.

 I have not performed services regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.

 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.

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

 As of the date of this report, I have completed the Standards and Ethics Education Requirements for Associate Members of the Appraisal Institute.

 I did not inspect the subject property as it is hypothetical.

Respectfully submitted,

Calvin Farris
Appraiser
BREA# 3013216
[email protected]
3990 Old Town Avenue, Suite B104
San Diego, CA 92110

THE )0~ , GROUP

TDG 2026 001 78

ADDENDA
THE Jm: GROUP

TDG 2026 001 79
THE XR~GROUP

INTERNATIONAL REAL ESTATE CONSULTATION ANO FORENSIC VALUATION LANCE W. DORE, MAI, FRICS
Lance W . Dore is the President and CEO of The Dore Group. In this role, he directs all valuation assignments involving a wide variety of conventional and complex real properties, serves as litigation support to both public and private clients, provides expert advisory services (including forensic analyses and market and feasibility studies), and manages the overall operations of The Dore Group.

Mr. Dore has been a real estate appraiser since 1983 , initially working for Bank of America as a staff appraiser then as a senior appraiser with a fee appraisal firm in Del Mar, California. In 1988, he formed L.W. Dore, Real Estate Consultant s and grew the firm through the addition of two partners forming Dore & Curry, Inc. (1990) and Dore, Curry, & Marschall, Inc. (1997). In 1999, Dore, Curry, & Marschall, Inc. became the San Diego office for lntegra Realty Resources with Mr. Dore serving as Managing Director . In the fall of 2005, M r. Dore joined Cushman & Wakefield as the National Practice Leader of the Government Affairs and Energy division. In 2007, he pursued an opportunity to serve as the President of European Emerging Market s and Vice President of Client Services for PGP, lnc./Colliers International. Mr. Dare 's un ique depth of experience, coupled with his high personal standards of service, led him to found The Dore Group in 2010.

Experience
Mr. Do re's work experience spans a wide variety of property types with special expertise in the valuation of energy facilities, conservation land, open space corridors and ranches. In addit ion, he has also appraised planned-unit developments , residential income properties , senior housing, shopping centers, office, industrial, mixed-use properties, and a mult itude of special purpose propert ies, including, but not limited to hotels, ski resorts, restaurants, hospitals, recreational camps, auto service and wrecking centers, equestrian facilities, and golf courses. He regularly serves as an expert advisor conducting appraisal reviews, forensic studies, and marketabi lity and feasibility analyses. In addition, Mr. Dore is uniquely qualified and experienced in litigation testimony, consultation and advisory services for all real estate related issues. His geographical valuation expertise is focused in the western United States and extends to Tokyo (Japan), Central America, Mexico, Cyprus, and Moscow (Russia).

Ucenses/ Cert1fications/ Affifiot,ons
Certified General Real Estate Appraiser -State of Californi a (OREA No. AG002464) California Licensed Real Estate Broker & Realtor member - San Diego Board of Realtor s Credentialed Mediator - National Confli ct Resolutio n Center Member of the Appraisal Institute (MAI No. 8471)
Fellow of the Royal Institute of Charter Surveyors (FRICS Designation) Registered Valuer - Royal Institut e of Charter surveyors for internat ional valuation Member of the International Right of Way Association (IR/WA) Member of the Family Firm Institute - FFI
Member of the Lambda Alpha Internat ional - Land Economic Society- IA! Instructor Posttions
National Instructor (Real Estate Valuation Principles & Pract ice) - Appr aisal Institut e Adjunct Professor - Russian Federation Finance Academy
Nat ional Instructor - (Business Development and Leadership)- Royal Institut e of Chart er Survey ors National Instructor - (Red Book Standards) - Royal Institut e of Charter Surveyors National Instructor - (Hotel Valuation) - Royal Institute of Charter Surveyors Nat ional Instructor - (International Valuation and Property Measurement Standards) - Royal Inst itute of Charter Surveyors National Instructor - (Subdivision Development) - Royal Institut e of Charter Surveyors National Instructor - (Automated Valuation Models) - Royal Institut e of Chart er Surveyors National Instructor - (Bridging the Gap of IVSC v. USPAP) - Royal Institute of Charter Surveyors THE )0~~ GROUP

TDG 2026 001 80
THE XR~ GROUP
INTERNATIONAL REAL ESTATE CONSULTATIOfril ANO FORENSIC VALUATION Leadership/ Committees
Past President -Appraisal Institute , San Diego Chapter Past member of International Relations Committee- Appraisal Institute Past member of Ethics & Standards Committee- Appraisal Institute Speaking Engagements
Appraisal Institute (National Seminar Series, Los Angeles, CA) - Land Valuation & Environmental Issues The Trust for Public Land (San Diego, CA) - Natural Communities Conservation Plan Pan Pacific Conference (Auckland, New Zealand )- Valuation of Submerged Lands Government of Cyprus (Nicosia, Cyprus)- Valuation of Golf Courses and Marinas The Russian Federation (Moscow , Russia) - Valuation of land and Appraisal Principles The Russian Federation (Goa, India) - Valuation of Oil and Gas and Power Plants Royal Institute of Charter Surveyors (Montego Bay, Jamaica) -Government & Regulatory Risk Graziadio School of Business & Management, Pepperdine (Los Angeles, CA)--2008 US & California Forecast Appraisal Institute (San Diego, CA) - Unique Valuat ions in Real Estate Appraisal Institute (San Diego, CA) - International Financial Reporting Standards (IFRS) C.lifornia Redevelopment Agency (Workshop Series, CA) - Real Estate Valuation for ABlX 26 & AB1484 Risk Management Association (RMA) -Appraisal Risk and the Valuation Process University of San Diego - MBA program -Guest Lecturer
University of San Francisco- Geller Family Business Center -Family Office Valuation NAI Global Conference- Real Estate Investment Pyramid
Publications
Appraisal Journal (October 2001) - "The Valuation of Submerged Land" Energy Pulse (March 2005)- "The Highest and Best Use of Power Plants" Union of Pan America Valuers (November 2010) - ''Impact of Public to Private Partnerships in BRICS'1 Wall Street Journal (August 2001)- "Power Plant Owners Fight to Lower Taxes" nie Secret of Real Estate - Revealed (2011)
IRWA Right of Way (July/August 2018)- "Conservation Easements- Unraveling the Mystery " Representative Client List
Public Entities
United States Department of the Interior
United States Department of Navy
Government of Cyprus
State of California-Judicial Courts
State of Californ ia-Auditor
County of Riverside
County of Monterey
City of San Diego
Los Angeles Dept. of Water and Power
City of Monterey
United State s Forest Service
United State s Department of Justice
Russian Federation
County of San Diego
County of San Bernardino
County of Los Angeles
City of Riverside
Port of Long Beach
Port of Oakland
Port of Vancouver
Legal Clients - Local , Regional , National and International Firms . Criminal , Tran sact io nal and Civil litigation. Qua lifie d Expert in Federal Bankruptcy Court , United State s Judi ci al District Court , Ca lif ornia Superior Court, San Diego Superior Court, Los Angele s Superior Cou rt , Washington State Superior Court.

Financial Institutions - All Major Local, Regional and National Organizations. Savings and Loans, Banks, Insurance Companies, Investment Firms, Brokerage Firms and Insurance Companies.

Non-Profit Conservat ion Groups - Local, Regional and National Organizations.

Family Offices - Estate Planning, Tax Planning, Consultation THE )0~~ GROUP

TDG 2026 001 81

THE Jm: GROUP
Resolution/Fees Due in Lieu of Parkland Dedication for New Residential Development Page 1 of 5 Rev: 7/27/2023
RESOLUTION NO. 24-9383

A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA,

TO ESTABLISH THE AVERAGE PER-ACRE LAND VALUES, THE

PARK DEVELOPMENT COST PER CAPITA VALUE, AND THE

AVERAGE NUMBER OF PERSONS PER HOUSEHOLD IN

ORDER TO SET THE PARKLAND IN LIEU FEE SCHEDULE IN
ACCORDANCE WITH CHAPTER 17.35 (“PARK AND
RECREATIONAL LAND”) OF TITLE 17 (“DEVELOPMENT”) OF

THE CODE OF THE CITY OF SANTA CLARA

WHEREAS, the City of Santa Clara is the government entity responsible for providing public parks, recreation and open space facilities within the City of Santa Clara ; WHEREAS, the 2010-2035 General Plan includes a goal that new parks, open space and recreation be provided with new development so that existing facilities are not over -burdened; WHEREAS, the report entitled “Public Facilities Impact Fee Study” dated June 25, 2014 (“Nexus Study”), was prepared and approved by Council in June 2014; WHEREAS, on July 15, 2014, the City Council adopted Ordinance No. 1928, which added Chapter 17.35 to the City Code, and requires new residential developments to provide adequate community and neighborhood park land for active recreational uses, and/or under certain conditions to pay a fee in lieu of parkland dedication; WHEREAS, on August 27, 2019, Council approved Resolution No. 19 -8749 which included the statutory findings required pursuant to the California Quimby Act (Quimby) and Mitigation Fee Act (MFA), including the report entitled “Santa Clara Park and Recreational Facilities Impact Fee Update Study” dated April 2019 (“Nexus Study Update”) and the professional land valuation appraisal report with a valuation date of December 31, 2017, and the park improvements replacement costs with values as of 2017;
WHEREAS, SCCC 17.35.030 provides the formula for determining a developer’s parkland dedication acreage requirement as follows: the average density for the specific dwelling unit category (single family/multi-family); multiplied by the parkland dedication standard; divided by one thousand (1,000) population;
Resolution/Fees Due in Lieu of Parkland Dedication for New Residential Development Page 2 of 5 Rev: 7/27/2023
WHEREAS, the methodology for calculating fees in-lieu of parkland dedication is based on the average cost to purchase lands for parks in Santa Clara, the average cost per capita to develop the land into a useable park facility, and the cost to administer the program; WHEREAS, the City desires to update the average density standard for single family and multi - family dwelling units as used to determine a developer’s parkland dedication requirement with the most recently available Federal census data and, in addition, update the average per -acre land values and park development costs as used in setting the park in-lieu fee; and WHEREAS, the City has surveyed land values and sales records, and has conducted a professional appraisal with a valuation date of December 31, 2023, to determine the fair market value of property in the City and made available to the public for review and comment the appraisal report as posted on the City website on October 1, 2024 .

NOW THEREFORE, BE IT RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:

1. Land Valuation Appraisal.

A. An independent real estate-appraisal firm, Frank Schmidt & Associates, was retained to provide a “Fair Market Value” opinion (valuation date of December 31, 2023 ) conforming to Uniform Standards of Professional Appraisal Practice and using the City’s Supplemental Instructions for an average acre of land (hypothetical, rectangular, useable site) for property in each of the three existing City of Santa Clara Zip Codes 95050, 95051, 95054.

The data set included all property types: Single Family (low and very low density), High Density Residential, Medium Density Residential, Commercial/Retail, Industrial, Lots and Land.

Excluded were transactions considered not “arms -length”, having encumbered or clouded title, environmentally impaired sites, or more than three (3) years old. An inflation factor was computed and applied to comparable sales over one year old based on reasonable and rational considerations such as sales and rental trends or other appropriate methods. The weighted average of each property type was based on the percentage of land area in the sales transactions.

Resolution/Fees Due in Lieu of Parkland Dedication for New Residential Development Page 3 of 5 Rev: 7/27/2023
B. Based on the findings of the appraisal report, the City Council hereby sets the average per acre land value for each ZIP Code as of December 31, 2023 , as: $5.455 million per acre in 95050; $5.650 million per acre in 95051; and $5.255 million per acre in 95054. If a developer objects to this determination of fair market value, the developer may elect to have the value established by appraisal, in conformance with SCCC 17.35.040(b)(2).

2. Park Improvement Cost.

A. The cost to construct the park improvements (landscape, furnishings, buildings, etc.) is based on an average cost per capita for the City’s existing park system improvements and recovers no more than 100% of the actual cost to develop new park assets and features to serve new residents at the same standard as existing residents. A cost analysis was conducted, including a review of recent/actual City park improvement project costs and a review of increases/decreases in the State of California, Department of General Services Construction Cost Index reported by the Real Estate Services Division of the Bay Area. In accordance with Resolution No. 23-9220, annual changes (increases/decreases) in the park improvement value used in calculation of In-Lieu Fees shall be indexed to changes in CCCI for the previous calendar year as reported by the Real Estate Services Division for the Bay Area, not to exceed a change of more than 10%.

B. The 2023 Santa Clara average park improvement value per capita is $3,818. From 2022 to 2023, construction costs have increased by $9.4 % according to the State of California, Department of General Services Construction Cost Index reported by the Real Estate Services Division for the Bay Area, such that the park improvement value of $3,818 per capita would be $4,177 per capita as of January 1, 2024. The Council hereby sets for use in the Park in-Lieu Fee calculations a park improvement value of $4,177 per capita (20223 base value plus 10% for cost escalation recovery) for use in the FY 2024/2025 fees. //
//
Resolution/Fees Due in Lieu of Parkland Dedication for New Residential Development Page 4 of 5 Rev: 7/27/2023

3. Average Density.

A. On September 12, 2024, the U.S. Census Bureau released the 2023 American Community Survey (ACS) data. The ACS contains two relevant data points in determining average density by dwelling unit—total population by units in structure (Table B25033) and units in structure (Table B25024). The average density of single-family dwelling units was derived by dividing the total population of residents in single family units by the total amount of single-family dwelling units in the City. Similarly, the average density of multi -family dwelling units was derived by dividing the total population of residents in multi- family units by the total amount of multi-family units in the City.

B. In calculation of parkland dedication or fees due in- lieu, the types of dwelling units and average density factors (2023 American Community Survey) shall be as follows: (1) Single-Family Dwelling equals 2.84 persons per household; and (2) Multi -Family Dwelling equals 1.92 persons per household.
//
//
//
//
//
//
//
//
//
//
//
//
//

4. Implementation Schedule. For development projects subject to the Quimby Act, the proposed fees will become effective immediately. For development projects subject to the Mitigation Fee Act, the proposed fees will become effective 60 days after the effective date of this resolution.

5. Effective date. This resolution shall become effective immediately.

I HEREBY CERTIFY THE FOREGOING TO BE A TRUE COPY OF A RESOLUTION PASSED

AND ADOPTED BY THE CITY OF SANTA CLARA, CALIFORNIA, AT A SPECIAL MEETING THEREOF HELD ON THE 29rH DAY OF OCTOBER, 2024, BY THE FOLLOWING VOTE:

AYES: COUNCILORS:

NOES: COUNCILORS:

ABSENT: COUNCILORS:

ABSTAINED: COUNCILORS:

Attachments incorporated by reference:

Becker, Chahal, Hardy, Jain, Park, and Watanabe
None
Mayor Gillmor
None
ATTEST:~()
-""N"""'o"""R_A_ l~M~E'--"N"""T""'E'-=L-", M~ M-~~--

ASSISTANT CITY CLERK

CITY OF SANTA CLARA

1. Santa Clara Land Valuation Appraisal Report 12-31-2023

2. Fee Calculation Tables A, B, C
Resolution/Fees Due in Lieu of Parkland Dedication for New Residential Development Rev: 7/27/2023

Page 5 of 5 ends

ANNUAL LAND VALUATION APPRAISAL REPORT

VALUATION OF

The Average per Acre Land Value of High-Density Residential, Medium-Density Residential, Low-Density Residential, Very Low-Density Residential, Commercial, &Industrial Properties Located in Three Zip Codes (95050, 95051, and 95054)
City of Santa Clara, California
Santa Clara County

PREPARED FOR

Ms. Cynthia Bojorquez, Acting Director of Parks and Recreation City of Santa Clara
1500 Warburton Avenue
Santa Clara, CA 95050

PREPARED BY

Frank E. Schmidt, MAI, SRA
Frank Schmidt & Associates

EFFECTIVE DATE OF VALUE OPINION

December 31, 2023

Frank Schmidt & Associates Phone: 510- 468-9219 [email protected]

March1, 2024

Ms. Cynthia Bojorquez, Acting Director of Parks and Recreation City of Santa Clara
1500 Warburton Avenue
Santa Clara, CA 95050

Re: Annual Land Valuation Appraisal Report
Average Value of Three Hypothetical 1-Acre Lots,
One for Each Zip Code Comprising 95050, 95051, and 95054 Santa Clara, California, U.S.A.

Ms. Cynthia Bojorquez:

Pursuant to your request, I have completed the a nnual land valuation appraisal to aid the City of Santa Clara in establishing park impact fees. Following this letter of transmittal is my appraisal and analysis opining the value of a hypothetical 1-acre lot in each of the City’s three zip codes.

In June 2016 the City of Santa Clara City C ouncil approved Supplemental Instructions for the Appraisal of the Fair Market Value of land used in the Parkland Dedication In-Lieu Fee. These supplemental instructions and guidelines for the Appraisal are displayed in the Addenda. One of the supplemental instructions was that the valu ation date occurs each year on December 31.

Since the date of my opinion of value, D ecember 31, 2023 precedes the date I wrote and transmitted this appraisal by about 2months, this is considered a retros pective appraisal as defined by the Uniform Standards of Professional Appraisal Practice. Since this is a retrospective value, it is important to note that I only consider ed data that was available and/or public as of the date of value. The exception to this was the 2023 land area data provided by Old Republic Title Company which was not available until February 2024, and some brokerage reports published in January and February 2024, but containing 2023 data.

I have appraised the subject of this appraisal numerous times since 2014, and most recently with a date of opinion of December 31, 2023. Based on land area, in 2021, approximately 42% of all transactions sold were industrial and commercial, while 58% were categorized as residential. In 2022, commercial/industrial sales accounted for about 27.06% of the total wh ile residential sales accounted for about 72.94% of the total. In 2023, approximately 50% of all transactions sold were industrial and commercial, while the remain ing 50% were categorized as residential.Data provided by Old Republic Title Company shows only 386 single family home sales in 2023 Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 2 compared to 516 single family home sales in 2022. However, the median residential selling price in 2023 in the city of Santa Cl ara was generally increasing thr oughout the first ha lf of 2023 and generally trending downwards in the last half of 2023. This resulted in sl ightly higherresidential unit values for 2023.Industrial and commercial la nd values were unchanged in both 2022and 2023. In 2023, the combination of higher interest ratesand expected slower economic growth has impacted the market. All these factors resulted in only slight changes to the 2023 values for the hypothetical one-acre lots for each zip codecompared to 2022.

To complete this appraisal, I conducted an inve stigation, gathered data, and made the analyses necessary to enable me to fulfill the purpose of this assignment, which was to estimate the fair market value of a hypothetical 1-acre lot comprising component s of high-density residential, medium-density residential, low-density resident ial, very low-density residential, commercial, and industrial, to form and repo rt the average value per acre of land in the three existing Zip Codes in the City of Santa Clara consis ting of 95050, 95051, and 95054. Th e average value was established using the weighted average of these different property types, based on the percentage of total land area associated with the different property types that sold in the City of Santa Clara in the 12 months prior to the date of value and based on land area data provided by Old Republic Title Company.

I understand that this Appraisal Re port is intended for use by the C lient, the City of Santa Clara, for assistance in determining park impact fees.

Hypothetical Conditions, Extraordinary Assumptions, and Contingencies

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 purpose of analysis.” 1Isupposed the following hypothetical
conditions:

 The fair market value was estimated based on different land value components applied to a hypothetical lot. It was a hypothetical condition of this appraisal that the subject lot was a finished lot and rated average in all other physical, locational, and legal aspects.

 Since the hypothetical lot will be comprised of different land value components and it is unlikely the City’s land use ordinances woul d allow the different property types on the same lot, it was necessary to apply a hypothe tical condition that each of the following uses would be permitted on the subject lot: high-density residential, medium-density residential, low and very low-density residential, commercial, and industrial.

12020-2021Uniform Standards of Professional Appraisal Practice (USA, The Appraisal Foundation,2020) Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 3 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.”2

 In this appraisal, land areas provided by Old Republic Title Company were used to estimate the weighted average of all the sale transactions that occurred in the City of Santa Clara in 2023. It was an extraordinary a ssumption of this appraisal that the land areas provided by Old Republic were accurate.

The use of these hypothetical conditions and extraordinary assu mption might have affected the assignment results.

There are general assumptions and limiting conditions set forth in this report.

Based on the investigation and analyses undertaken, I formed the opinion that the average value per acre on December 31, 2023, the effective date of opinion, for each zip code was:

Sincerely,

Frank E. Schmidt, MAI, SRA

22020-2021Uniform Standards of Professional Appraisal Practice (USA, The Appraisal Foundation,2020) Zip, Code 2023 Avera~e Value per Acre
95050 $5,455 i000
95051 $S,650 i000
95054 $5,255 i000
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 4

TABLE OF CONTENTS

EXECUTIVE SUMMARY 5
GENERAL ASSUMPTIONS AND LIMITING CONDITIONS 6
CERTIFICATION 8
SCOPE OF THE ASSIGNMENT 9
DEFINITIONS 11
REAL PROPERTY, REAL ESTATE, AND PERSONAL PROPERTY APPRAISED 12 PREVIOUS APPRAISALS 13
REGION & CITY DESCRIPTION 13
MARKET CONDITIONS 18
LAND USE ORDINANCES 37
HIGHEST AND BEST USE 38
APPRAISAL PROCESS 39
AVERAGE VALUE ESTIMATE IN 95050 ZIP CODE 40
AVERAGE VALUE ESTIMATE IN 95051 ZIP CODE 59
AVERAGE VALUE ESTIMATE IN 95054 ZIP CODE 62
RECONCILIATION AND OPINION OF AVERAGE VALUES 65
ADDENDA 66

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 5

EXECUTIVE SUMMARY

CLIENT : City of Santa Clara

LOCATION : City of Santa Clara, California

PROPERTY TYPES : Very Low-Density Residential, Low-Density Residential, Medium-Density Residential, High-
Density Residential, Commercial, and Industrial
Land

SITE AREA : Each Hypothetical Lot is OneAcre

FLOOD HAZARD STATUS : Zone X; the hypothetical lots are outside any flood zones

EARTHQUAKE FAULT ZONE : The hypothetical lots ar e not located in an Earthquake Fault Zone as designated under the
Alquist-Priolo Earthquake Fault Zoning Act.

GENERAL PLAN, &
HIGHEST AND BEST USE :

EFFECTIVE DATE OF VALUE : December 31, 2023

PROPERTY RIGHTS APPRAISED : Fee Simple Estate

AVERAGE VALUE CONCLUSIONS :

Us e of Hypothetical Lot General Plan Highe st & Best Use \ ery Low Density R es idential Very Low Density Residential Very Low Density Residential Low Density R es idential Low Density Residential Low Density Residential Medium Dens ity R es idential Medimn Density Residential M edimn Density Residential High Density R es idential High Density Residential High Density Residential Commercial Regional Co= ercial Hold for Development of a Co= ercial Building Industrial Light Industrial Industrial Building
I I
Zip, Code 2023 Avera~e Valu e per Acre
95050 $5,4 55i000
95051 $S,650 i000
9505 4 $5,255 i000
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 6

GENERAL ASSUMPTIONS AND LIMITING CONDITIONS

This appraisal and report were made applying these general assumptions:

1. No responsibility was assumed for the legal desc ription or for matters including legal or title considerations. Title to the hypothetical prope rties was assumed to be good and marketable and free and clear of all liens, encumbrances, easements, and restrictions except those specifically addressed in this report;

3. Responsible ownership and competent property management were assumed;

4. The information furnished by the Client and ot hers was believed to be reliable. However, no warranty is given for its accuracy;

5. All engineering was assumed correct. Plot plans or any other illustrative material in this report were included only to assist the reader in visualizing the property;

6. It was assumed that there are no hidden or unapparent conditions in the hypothetical properties that render them more or less marketable or va luable. No responsibility is assumed for such conditions or for arranging fo r engineering studies that may be required to discover them;

7. Unless otherwise stated in th is report, the existence of ha zardous material, toxic waste, and/or other environmental impairments which may or may not be present on or in the hypothetical properties, was not investigated by this consultant.

As real estate consultants, we are not qualifi ed to properly investigat e this property for any discharge, spillage, uncontrolled loss, seepage, filtration, or storage of hazardous substances which may adversely affect the value of this property. Neither are we qualified to detect the presence of substances such as asbestos, urea-formaldehyde foam insulation, nor other materials that could create an environmental im pairment to the subject property or to other property caused by conditions present at the subject prope rty. Our opinion(s) were predicated on the assumption that there is no su ch material on or in the property that would affect market value. No responsibility was assumed for any such conditions or for any expertise or engineering knowledge required to discover and/or correct them;

8. It was assumed that there is full compliance w ith all applicable federal, state, and local environmental regulations and laws unles s non-compliance is stated, defined, and considered in the report;

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 7

9. It was assumed that all appl icable zoning and use regulations and restrictions have been complied with, unless a nonconfor mity has been stated, defi ned, and considered in the appraisal and reported in the report; and

10. It was assumed that all required licenses, ce rtificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimate or other opinion contained in this report are based;

This report has been made with the following limiting conditions:

1. Possession of the report, or a copy thereof, does not carry with it the right of publication or use. It may not be used for any purpose by any person other than th e Client(s), for the Intended Use specified in the engagement agreement and/or report;

2. The consultant is not require d to give further consultation, testimony, or attend court for matters involving the subject property unless arrangements have been previously made; and

3. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the Consultant, or the firm w ith which the Consultant is connected) shall be disseminated to the public through advertising, public relations, news sales, or other media without prior written consent and approval of the Consultant.

Reader Note:

There may be other appropriate and more specific limitations on our opinions or conclusions identified in the coverletter or report as Hypothetical Conditions, Extraordinary Assumptions, or Contingencies.

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 8

CERTIFICATION

I certify that, to the best of my 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 my personal, impartial, and unbiased professional analyses, opinions, and conclusions.

3. I 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. I previously appraised the subject of this report for the same Client on several occasions, most recently in an appraisal report transmitted March 1, 2023 and having a date of value of December 31, 2022.

5. I have no bias with respect to the pr operty that is the subject of this repo rt or to the parties involved with this assignment.

6. My engagement in this assignment was not continge nt upon developing or reporting predetermined results.

7. My 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. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP).

9. I have not inspected the property that is the subject of this report since the subject lots are hypothetical.

10. Under my direction, Mr. Dennis Moredock verified the comparable data, performed analysis, and wrote the first draft of the appraisal report.

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 & 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, I have completed the continuing education program for Designated Members of the Appraisal Institute.

March1, 2024
Frank E. Schmidt, MAI, SRA Date

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 9

SCOPE OF THE ASSIGNMENT

Information Provided to the Appraisers

The Client provided excerpts fr om the Parks and Recreation F acilities Fee Study completed by Willdan Financial Services. Old Republic Title Co mpany provided Santa Clara sales statistics of land areas to assist us in estimating the weighted land average of all the sale transactions that occurred in the City of Santa Cl ara in the 12 months preceding the date of value. We were also provided the “Supplemental Instructions for Appraisal” approved by Santa Clara City Council on June 7, 2016, which are displayed in the Addenda. Lastly, in prev ious appraisals, City Parks provided us the Park Impact Fee Ordinance (No. 1928).

Extent of Research into Physical Factors

We drove several streets throughou t Santa Clara over the past se veral years including various times in 2016, 2017, 2020, 2021, 2022 and 2023. We note changes that are occurring or have occurred, particularly regarding new development. We gathered data about land use ordinances for each hypothetical lot and the comparables from the websites of the appropriate municipalities.

Extent of Research Into Economic Factors

We gathered, analyzed, and applied macro-eco nomic information gleaned from many sources, including:

 The Wall Street Journal
 12th District Beige Book
 GlobeSt.com
 CoStar News
 The Kiplinger Letter
 DQ News/CoreLogic

We gathered, analyzed, and applied data abou t market conditions and other micro-economic information from:

 Websites of Commercial Brokerages
 Commercial and/or residential multiple listing services  Silicon Valley Business Journal
 San Jose Mercury News
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 10  Discussions with agents active in the subject market

We talked to the buyers, sellers, and agents w hose names we discovered on signage in the neighborhood and during comparable verification. We learned about additional market data from these people.

Extent of Comparable Data Research

We used a variety of sources and subscription services to gather comparable data, including:

 Verified Data Files from Other Appraisals
 CoStar Group
 DataTree
 MLSlistings.com
 LoopNet
 Commercial Real Estate Brokerage Websites

Verification

The most appropriate data that we discovered was verified with a party to the transaction. When that was not possible, we discuss and/or state the verification source(s), using public record data, subscription services, MLS, etc. in the Analysis section.

Among the comparables selected we studied copies of the assessor’s parcel maps, public record summary, aerial maps, records of survey, and othe r data such as structural, geological, or environmental reports, subdivision maps, title reports, etc. We also reviewed planning proposals/approvals and permit histories where appropriate.

Type and Extent of Analysis Applied

The data is summarized on spreadsheets displa yed in the Analysis sections following. The analysis was comparative, iterative, qualitative, and quantitative.

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 11 Compliance

It was the intent of this appraisal to comply with the requirements of:

 The Uniform Standards of Professional Appr aisal Practice (USPAP) including the Ethics and Competency Provisions as promulgated by the Appraisal Standards Board of the Appraisal Foundation.

 The Code of Professional Ethics and Standard s of Professional Practice of the Appraisal Institute.

 The City of Santa Clara’s “Supplemental Instructions for Appraisal”

DEFINITIONS

According to the California Code of Civil Procedure, Section 1263.320 defines Fair Market Value as:

“(a) the highest price on the date of valuati on that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available.

(b) The fair market value of property taken for which there is no relevant, comparable market is its value on the date of valuation as determin ed by any method of valuation that is just and equitable.”

Revised federal definitions in the Uniform Act identify the defi nitions of “market value” and “fair market value” as one and the same. These terms are used interchangeably in this report.

Weighted Average means an average resulting from th e multiplication of ea ch component by a factor reflecting its importance or contribution.

Average Value means a value that is calculated by addi ng values together and then dividing the total by the number of values.

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 12 Fee Simple Estate means absolute ownership unencumbere d by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.”3

REAL PROPERTY, REAL ESTATE, AND PERSONAL PROPERTY APPRAISED

Real Property is defined as all of the interest s, benefits, and rights in the ownership of the physical real estate, that is, the bundle of rights w ith which the ownership of the real estate is endowed. Real estate is defined as physical land and appurtenances attached to the land.

Real Property Rights Appraised

The subject properties are hypothetical unimproved lots and the fee simple estate is appraised.

Real Estate Appraised

It is an assumption of this appraisal that the subject’s hypothetical fini shed lot is graded and level, all utilities and services are stubbed to the site, is ready for building improvement, and defined as follows:

Area : One acre

Shape & Frontage : Shape is rectangular with t ypical frontage along one street.

Topography : Level, at street grade

Drainage : Adequate

Utilities & Services : The municipality provides water, electrical, and sewer service. A private contractor provides garbage service.

Local utility companies provide telephone and cable. All utilities are piped and wired onto the hypothetical lot.

Easements : Typical public utility easem ents along frontage presumed.

Soil Conditions : It is a general assumption of this appraisal that the hypothetical site is suitable fo r any legally permissible and physically possible use.

3 Appraisal Institute,The Dictionary of Real Estate Appraisal, 6th ed., (Chicago: Appraisal Institute, 2015) Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 13

Environmental
Impairment Issues : It is a general assumption of this appraisal that there are no environmental issues that affect the market value of the hypothetical lots.

Off-Site Improvements : Street is fully improved and maintained by the City; it is asphalt paved with streetlights, curbs, gutters, and
sidewalks.

Street Access : Rates average in comparison to competing properties.

Exposure/Visibility : Rates average in comparison to competing properties for each hypothetical use.

Flood Hazard Status : Hypothetical lot is presumed to be within Zone X, which denotes areas of minimal flood hazard, usually depicted on FIRMs as above the 500-year flood level.

Earthquake Fault Zone : The hypothetical lot is not loca ted in an Earthquake Fault Zone as designated under the Alquist-Priolo Earthquake
Fault Zoning Act.

Improvements : None

Personal Property Appraised

Wedid not appraise any personal property.

PREVIOUS APPRAISALS

The author previously appraised the subject(s) of this report for the City of Santa Clara on several occasions, most recently in an Apprai sal Report transmitted March 1, 2023 with an effective date of opinion of December 31, 2022. The next most recent appraisal of the subject was transmitted April 1, 2022 with an effec tive date of opinion of December 31, 2021. The intended use of all appraisals was the same: to assist the City in determining park impact fees.

REGION & CITY DESCRIPTION

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 14 The County of Santa Clara is located at the sout hern end of San Francisco Bay. It encompasses about 1,304 square miles of land with 15 incor porated cities and towns. According to the California Department of Finance (CDF) Populati on and Housing Estimates (E-1) last released May 1, 2023, on January 1, 2023, the county had a population of 1,886,079, a decrease of 3.0 percent from the January 2022 estimate. Over th e past several years, Santa Clara County had been experiencing strong employment cond itions. Prior to the COVID-19 pandemic, unemployment was at historical lows and esse ntially reflected full employment conditions.

According to statistics published by the State of California Employment Development Department (EDD), the Santa Clara County unemployment ra te was 3.9% in December 2023, based on a labor force of 1,046,800. This is anin crease from the March 2020 unemployment rate of 3.4%, prior to COVID-19. It is alsohigher co mpared with the one-year prior unemployment rate (December 2022) of 2.3%, based on a labor force of 1,059,200 jobs.

Santa Clara County, which makes up the bulk of Silicon Valley, is highly dependent on technology employment, including Adobe, Apple, Applied Material s, Cisco, eBay, Flextronics, Google (Alphabet), HP, Intel, Intuitive Surgical , Lockheed Martin Space Systems, Microsoft, Netapp, Oracle, PayPal, and Tesla.

The City of Santa Clara covers about 18.4 squa re miles and is surrounded by San Jose on the north, east, and south, and is adjacent to Sunnyvale and Cupertino on the west. The City of Santa Clara’s population estimate was 132,476 as of January 1, 2023 (released on May 1, 2023), according to the CDF, about 1.5% higher than 12 months earlier. Employment conditions in Santa Clara followed a similar trend as seen in Santa Clara County. Unemployment, according to the EDD, was reported at a rate of 3.5% in the city of Santa Clara as of December 2023, based on a labor force of 73,300. The unemployment rate has generally followed a downward trend since peaking in April 2020 at 9.5% . Still, the current rate is a bove the rate of 2.1% reported in December 2022.

An aerial of the City of Santa Clara (outlined in red) and surrounding areas is shown below:

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 15

The two largest employers in the City of Santa Clara are Intel and Applied Materials. Other high- tech companies, such as AMD, Nvidia, Oracle, Ericsson, Palo Alto Networks, Sun Microsystems, ServiceNow, and Agilent Technologies have headquarters in the City. Other large employers include California’s Great America Th eme Park, Levi’s Stadium, Santa Clara City Hall, EMC Corporation, Macy’s, Mission College a nd Santa Clara University. The City of Santa Clara is the supplier for the City’s water and electric power, which it claims can save small industries almost 50% on their utility costs.

Levi’s Stadium, the home of the San Franci sco 49ers, opened over the summer of 2014 in the northern portion of the city, adjacent to Gr eat America Theme Park and the existing 49ers practice facility. The Santa Clara Convention Ce nteris also nearby and offers about 302,000 square feet of meeting space.

The opening of Levi’sStadium spurred an incr ease in demand for nearby properties. There are several projects under construction throughout the city and several proposals in progress that are anticipated to add thousands of square feet of new retail, office and residential. The largest proposal is from Related California and is named Related Santa Clara (5155 Stars & Stripes Drive). The project is a 240-acre mixed use development located across from the street from Levi’s Stadium. It would include 9.16 million gross SF of office, residential units, retail and entertainment facilities, hotel rooms, and surface and structured parking facilities. The first development phase was approved and was slated to open to the public in 2023 but was delayed by the pandemic. Currently ther e is an application to amend the Master Community Plan (MCP) to accommodate a new alternative development scheme with a different

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 16 mix of land uses. The Kylli mixed use development project Mission Point is currently pending review and is located at 3005 De mocracy Way. This project is a 46 acresite that proposes 3,000,000+- SF of commercial office/lab space, 100,000+- SF of neighborhood retail, 1,800+- new multi-family residential, a child care fac ility, and indoor and outdoor community spaces. A 190-room hotel on a 1.96 acre site is curren tly under construction at 2900 Lakeside Drive (Cambria Hotel project). The Agrihood Mixed-Use Development Project located at 1834 Worthington Circle and 90 N. Wi nchester Blvd. is a residentia l mixed-use development on a 5.8 acre site consisting of up to 160 mixed-income ap artments, 165 affordable senior apartments, 36 townhomes and approximately 1.5 acres of ag ricultural open space.Gateway Crossings (Hunter/Storm) at 1205 Coleman Avenue is the construction of a phased, mixed-use development on 23.8 acres consisting of 1,565 residential units, a 152,000 square foot, 225 room, full-service hotel, 45,000 square f eet of supporting retail, a 2.1 acr e park, and structured parking facilities. The Santa Clara dual-branded hotel project is located at 1290 Coleman Avenue. This is a 396 room, 6-story hotel, totaling 204,444 square f eet. The hotel will feat ure 5 stories over 1 parking level with 284 stacked pa rking stalls.Laguna Clara II De velopment Project (Equity) at 3131 Homestead Roadis a residential developmen t involving the demolition of three two-story apartment buildings and one-half of a two-story apartment building (removing 42 dwelling units and retaining 222 dwelling units), two accesso ry buildings (central boiler room and a clubroom/leasing office) and four ca rport structures to construct a four-story apartment building with 225 units over a partially subgrade parking ga rage for a total of 447 dwelling units on the site.Villa Bella residential projectat 1890 El Camino Real is the construction of 56 condominium units over a podium parking structure on 1.51 acres.Civic Center Drive Family Housing projectat 1601 Civic Center Drive is a five-story affordable housing development with 106 rental units at a density of 75 dwelling units pe r acre.Additional development in the City includes both smaller residential and commercial developments and continued residential build-out of the Tasman East and Lawrence Station areas.

The City’s median household income was esti mated by the U.S. Census Bureau at$165,352 in 2022 and the per capita income was about $78,084. The United States Census Quick Facts for 2018-2022 indicated the following demographics in Santa Clara:

Total Households 47,434
Owner Occupied Housing Unit Rate 41.9%
Average Household Size 2.60
Bachelor’s Degree or Higher 64.6%
In Civilian Labor Force 71.4%

The City is home to Santa Clara University, Mission College, a public community college, and Golden State Baptist College. The City is primarily served by Santa Clara Unified School District, which includes 19 school s spanning transitional kindergarten through high school. The southwest corner of the City is served by Cupertino schools.

Real Es

Frank S

The City
and exp r
highways
85, CA-8
VTA bus
Area. Lo
Airport, w

There ar
e
color-cod
applies to
included
state Apprais
Schmidt &
y of Santa C
ressways th a
s, I-280, I-88
87, CA-17,
s services p r
ocated adjace
with service
e three prim
ded areas w i
o Santa Clar
as part of th
sed: Three Hy
Associates
Clara and S a
at provide a
80, and I-68
and CA-237
rovide mass
ent the City’
to about 30
mary zip code
ithin the bla
ra University
his appraisal.

Source: zipma

ypothetical O
s Phone: 51
anta Clara C
access to m
0 in addition

7. Caltrain, A
s transit for
’s eastern bo
destinations
es within the
ack-outlined
y, which is lo
.
ap.net
One-Acre Lots

10-468-9219
ounty benef
most areas o
n to several f
Amtrak, and
the city, co
order is the N
s.
e city, which
city limit b
ocated withi

s, One for Eac
fschmidt@
fit from a n u
of the regio
federal and s
d ACE rail t
nnecting Sa
Norman Y M
h are shown
oundaries. N
in the Santa
ch Zip Code,
@valuationco
umber of fr e
n, includin g
state highwa
transportatio
anta Clara t o
Mineta San J
on the follo
Note that th e
Clara city li

Santa Clara,
onsultant.net
eeways, arte
g three inte r
ays, US-101,
on, light rai l
o the greate r
Jose Internat
owing map a
e 95053 zip
mits, but wa
CA
t 17
erials,
rstate
, CA-
l, and
r Bay
tional
as the
code
as not
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 18 Conclusion

All locations within Santa Clar a are proximate to nearby job centers, retail, housing, and linkages, contributing to the long-term demand for sites within the city.

MARKET CONDITIONS

The Winter 2024 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey“reflects both overall optimism and a mixed picture in the composition making up the aggregate numbers. Even though there is more optimism in many sectors, particularly retail, the Winter 2024 Survey panelists across all types of commercial real estate and regions of California indicated they are facing a more challenging financial landscape as required equity percentages and required investment return hurdle rates (IRR) are expected to increase over the coming three years.”
In the following narrative wepresent some st atistics and comments regarding the market conditions for each land use we are appraising. Land market conditions for each of these uses are not typically tracked by any firms that we are aware of; it has been my experience and historically as reported by market participants that the la nd market for these uses typically trend with the improved properties, oftentimes leadi ng. We report on the sale, rental, and construction trends of the respective market s, in estimating the appropriate market conditions adjustments used in our following analysis.

Regional Economic Conditions

Integra Realty Resources (IRR)reported in their 2024 Viewpoint, “Despite the oft-cited predictions from 2022 that interest rates would stabilize in 2023, and even decline by Q3 of 2023, the economic impact of 11 continuous interest rate hikes from 2022 through 2023 began to destabilize the trading market for real estate early in the year. As we close out the year, the current lack of lending capital is now affecting holding strategies. Of course, there are some who predict interest rates will decline in 2024, and that suchchanges will help asset values recover.

This misses the fundamental point. Post-COVID values were driven up by cheap money, but they were also driven up because capital was being deployed to offset rising inflation expectations. This arbitrage only works if inflation can’t be tamed and capital remains plentiful.

The sharp rise in rates brought inflation expectation down, and crippled exit pricing since buyers no longer had access to cheap long-term capital. Values had to reset, in light of these market forces.”

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 19 Commercial Market Conditions

Commercial properties typically include office and retail uses . We discovered that office properties are generally being built in the centr al business districts and in light industrial locations. Research and development (R&D) propert ies have historically been a subcategory of industrial. However, R&D can rival office space in terms of finishes and quality and we elected to include a discussion of the R&D submarket as part of the commercial market. Many of the traditional retail corridors in this region, El Cami no Real in particular, have land use ordinances that allow for residential mixed-uses.

In this market, real estate brokerages track office and retail statistics by city or submarket; they are not broken out by zip code. Following we pres ent the relevant statistics pertaining to the Santa Clara market and provide comments from market particip ants regarding the perceived differences in each of the Santa Clara zip codes that the three hypothetical lots being appraised are located.

Office Market

The Silicon Valley office market from early 2017 through 4Q-2023 was generally characterized by increasing vacancy rates, negative net absorp tion, and overall flat to slightly increasing average asking rental rates. The next table displays data from the Colliers International’s 4Q- 2023 Silicon Valley R&D Market Snapshot and its predecessor reports. The table includes statistics from the Silicon Valley market, the subj ect’s submarket (Santa Clara), and the adjacent Sunnyvale submarket.

Real Es

Frank S

The data
Q1-2023
reported
region’s

Cushma
n
a new lea
of 61,457
feet at 54
Creek Bo

The ave
r
Full Ser v
expenses
rate from

Marcus &
includes
and sever

Marcus
&

state Apprais
Schmidt &
a indicates t h
through Q4
at 12.0% fo
availability r
n & Wakefie
ase of 205,77
7 square feet
453 Great A
oulevard.
rage office a
vice expen s
s are bundle
m one year ag
& Millicha p
Santa Clara,
ral speculati
& Millichap
sed: Three Hy
Associates
hat the offic
4-2023. The
or Q4-2023,s
represents 2
eld reported
74 feet at 45
t at 2445 Au
America Park
asking rent in
se basis, w h
d into the b
go.
p’s 4Q-2023
, office vaca
ive deliverie
reported the
ypothetical O
s Phone: 51
OFFICE
Sources: Col
e vacancy r a
Silicon Vall
slightly down

0.8 million s
key 2023 lea
555 Great Am
ugustine Driv
kway, and a
n 4Q-2023 f
hereby tax e
base rent. T h
Market R e
ancyincrease
s placed upw
e following t
One-Acre Lots

10-468-9219

E STATIST
lliers Market
ate in Santa
ey market ha
n from the 1
square feet o
ase transacti
merica Parkw
ve, Arista N
lease renew
for the City o
es, insuranc e
his is slightl y
eport shows
ed. “A sizabl
ward pressur
trends in the
s, One for Eac
fschmidt@
TICS
Reports
Clara gener
as been over

12.5% rate in
of vacancy in
ions in the C
way, Cambr
Networks leas
wal of 59,384
of Santa Cla
e, mainten a
y more tha n
that in the
le increase in
re on vacanc
San Jose M
ch Zip Code,
@valuationco
rally decreas
rall more sta
n the third q
n 4Q-2023.

City of Santa
ridge Industr
se renewal o
4 square feet
ara was $4.5
ance, utiliti e
n the $4.45/ S
San Jose M
n space avail
y.”
Metro:

Santa Clara,
onsultant.net
sed slightly
able with vac
quarter 2023
a Clara’s incl
ries lease ren
of 149,608 sq
t at 5425 St e
3/SF/Month
es, and jani
SF/Month as
Metro area, w
lable for sub
CA
t 20

from
cancy
. The
luded
newal
quare
evens
h on a
torial
sking
which
blease
Average Asking Rate & Vacancy Rate Office Market
$8.00 ---------------------------------------------------~ 35.0 % $7.00
-I
$ 6.00
$5.00 I
$4.00
$ 2.00
~ __.. --.,. Silicon Valley Vacancy Rate _,.,- /
/ '---~~-~--~~
$ 1.00
-~~~~---~~-~~ ~-~~
Sunnyvale Vacancy Rate --. ...,,,;
--
-'------
$0.00
\.o.1,.<,)\.:o.,.o\.:o.1-a'\.:o.,.a\.:o.,.o\.:o.,.a'\.:o.,.a\.~o.,.o":o.1.a\.:o.,.o\.:o.1-o"~o.,.a\.:o.1.01.:o.,.a1.:0 ,.a1.:o.,.a1.:o.,.a1.~o.1-01.~o.,.01.!o.i.01.:o.1,a1.:0 ,.a1.-:o.1,01.!o.1-a1.:o.,.a'l.:o.1.01.!o.1.ot.!o.1,01.~ 30 .0%
25 .0%
20 .0%

15.0%

10.0%

5.0%
Real Es

Frank S

There a r
Notable
Californ
i

Research

The next
Snapshot
the subje

The next
state Apprais
Schmidt &
re several o f
developmen
ia,and Kylli.
h and Devel
t table displ a
t and its pred
ect’s submark
t tables displ
sed: Three Hy
Associates
ffice devel o
nts previou

lopment (R&
ays data fro m
decessor rep
ket (Santa C
ay data from
ypothetical O
s Phone: 51
opments un d
sly discuss e
&D) Marke
m Colliers I
ports.The tab
Clara), and th
Source: Col
m CBRE’s 4Q
One-Acre Lots

10-468-9219
der construc t
ed in the
et
nternational
ble includes s
he adjacent S
lliers Market R
Q-2023 Silic
s, One for Eac
fschmidt@
tion in Sili c
City of S a
’s 4Q-2023
statistics fro
Sunnyvale su
Reports
con Valley R
ch Zip Code,
@valuationco
con Valley a
anta Clara i
Silicon Vall
om the Silico
ubmarket.

R&D Market
Santa Clara,
onsultant.net
and Santa C
include: R e
ley R&D M
on Valley ma
t:

CA
t 21

Clara.
elated
Market
arket,

Sup;pll:Y and Demandl Rent Trends
- Completions Net Absorption -- Vacancy Rate - All'eroge Rent -- Y-0--Y Percent Change "' ,t 2()11;; S55 ml 6 ~ ;...,
i •:Z "<
lf1lt.: ..
6 .... :!t, SM e;;
~ '.:' ri· ~ ;;ii e, Q
~
j - 1,4,Y, ii t=i, rl .... "'
,SI OJ:. l ~ ;,: :;., Q
"' i "' ... " 6
'.:' -2 [I!',;
i $49 -4,: ~ ~ ..
! .. ;.
.;;
-.t 8!',; $47 .,SJ:,
10 .20 21 22 23' m 20 21 22 23"
R&D Average Asking Rate & Vacancy Rate
$4.00
$3.50
$3.00
$2.50
$2.00
$1.50
Santa aara Vacancy Rate Sunnyvale Vacancy Rate - SiliconValleyVacancyRate --Santa aaraAsking Rate --Sunnyvale Asking Rate --SiliconValleyAskinf: Rate Real Es

Frank S

As shown
4Q-2023
$2.67/S
F
expense
and rese
r

CBRE r
e
for the Si
compared
negative

Retail
M

Cushman
the San J
As a res u
unemploy
number o
private e
places. In
country a
showed a

Spending

General
sales. T y
state Apprais
Schmidt &
n above, Sili
. Meanwhi l
F/month in 1
basis in thi s
rves for repla
eported in the
ilicon Valley
d to negative
net absorpti
Market
n & Wakefie
Jose metro a
ult of the ri
yment rate
of jobs still s
education a n
naddition, th
at $156,70 0
a steady grow
g Patterns
market con d
ypically, a m
sed: Three Hy
Associates
icon Valley’
le, asking
1Q-2023 to
s market m e
acement, wh
eir 4Q-2023
y R&D mark
e 350,444 sq
ion, and a tot
eld is a broke
area. They r
se in layof f
from 2.6%
saw a year-o
nd health se
he median i n
0, reflecting
wth rate at 0
ditions for t
market wh e
ypothetical O
s Phone: 51
Sou
’s R&D mark
rents in S a
$2.63/SF/mo
eans the lan d
hile the tenan
Silicon Val
ket closed Q
q. ft. in Q4 2
tal of negativ
erage firm th
reported in t h
fs at tech c o
in 2022 to
over-year (Y
rvices, leis u
ncome hous
a 3.0% in c

0.6%.
the retail re a
ere taxable r
One-Acre Lots

10-468-9219
urce: CBRE
ket experien
anta Clara
onth in 4Q- 2
dlord is onl y
nt typically p
lley R&D M
4 2023 at ne
022. This m
ve 2.42 mill
hat publishes
heir Q4-202
ompanies, Si

3.6% at th e
YOY) increas
ure and hos p
seholds in S
crease from
al estate se g
retail sales
s, One for Eac
fschmidt@
nced an over
have rema i
2023 on a N
y paying fo r
pays all othe
Market that “T
egative 373,6
marks the sixt
ion sq. ft. th
s quarterly re
23 Marketbe
ilicon Valle y
e close of 2 0
se of 11,800
pitality, an d
ilicon Valle
the previo u
gment can b
are increas i
ch Zip Code,
@valuationco
all increasin
ined relati v
NNN expens
r managemen
er operating e
The overall n
617square fe
th consecutiv
hrough 2023.
eports for th
eat Silicon V
y experienc e
023. Despit e
0, mainly fue
d food servi c
ey remains t h
us year. Th e
be indicated
ing would b
Santa Clara,
onsultant.net
ng vacancy ra
vely stable
se basis. A N
nt of the ac c
expenses.
net absorptio
eet (sq. ft.)
ve quarter w
.”
he retail mark
Valley Retail
ed an incre a
e this uptic k
eled by grow
ces and dri n
he highest i
e populatio n
by taxable
be supporti v
CA
t 22

ate in
from
NNN
count
on
with
ket in
l that:
ase in
k, the
wth in
nking
in the
n also
retail
ve of
(%)

14.0 13.0

12.0 11.0

10.0 9.0

8.0 - Total Vacancy% - Availability %
~ 6

10.7 02 03 04 01 02 03 04 01 02 03 04
2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2024
Asking Rate
($/SF)

3.20 3.00

2.80 2.60

2.40 2.20

2.00 $2.94
--------------~ --------
02 03 04 01 02 03 04 01 02 03 04
2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023
Real Es

Frank S
additiona
interested

Average

The Cush
Valley re
from 5.5%
Silicon V
msfof va
approxim

The cha
r
submarke
County (
from 3Q-

As indica
of $3.01/
4Q-2022
market.In
submarke
retail va c
projects
Clara r
e
2,570,47
state Apprais
Schmidt &
al retail de v
d in entering
Asking Reta
hman & Wak
etail market c
% rate last q
Valley remain
cant retail sp
mately 77,90
rt below d i
et, Sunnyv a
(Silicon Vall
-2017 onwar
ated in the ta
/SF/Mo NNN
. Neighbor h
n 4Q-2023
et which is
cancy rate i n
in the city
etail subma r
1sq.ft. in 4Q
sed: Three Hy
Associates
velopment a s
g the market.
ail Rental R
kefield Q4-2
closed the y
quarter thoug
ned at 37.5 m
pace, which
0 sf (3.9%) o
isplays the
ale/Cupertino
ley Total) t a
rds:
able above,
N in 4Q-20 2
hood and c
asking ren t
a decrease
n Santa Cla
of Santa Cl
rket invent o
Q-2023. Key
ypothetical O
s Phone: 51
s existing r e
. The conver
Rates and Va
2023Marketb
ear with the
gh the same
million squa
consisted of
of sublease s
average as k
o submarke t
aken from C
the Santa Cl
23 which is
ommunity c
ts averaged
compared t
ra was rep o
ara include
ory increas
y lease transa
One-Acre Lots

10-468-9219
etailers are w
rse is true wh
acancy Rates
beat Silicon
vacancy rat
as last year’
are feet (msf)
f approximat
space.
king rental
t, Downto w
Cushman Wa
lara County
a slight incr
centers acc o
$3.22/SF/M
to $3.39/SF /
orted at 6.1 %
new suppo r
ed slightly
actions in 20
s, One for Eac
fschmidt@
willing to e
hen taxable r
s
Valley Reta
e of 5.3%, d
s figure. The
f) at the end o
tely 1.9 msf(
rate and v a
wn San Jose
akefield and
retail marke
rease compa
ount for m o
Mo NNN i n
/Mo NNN i
%. As discu s
rting retail d
from 2,5 4
023 include a
ch Zip Code,
@valuationco
xpand and n
retail sales a
ilreported th
down 20 basi
e total retail
of 2023, leav
(96.1%) of d
acancy for
submarket
its predeces
et had an av
ared to $2.9 9
ost of the v
n the subje c
in 1Q-2023.
ssed previou
developmen
44,591sq.ft.
a new lease
Santa Clara,
onsultant.net
new retaile r
are declining
hat:The Silic
is points (bp
inventory in
ving almost
direct space a
the Santa C
and Santa C
ssor retail r e
erage asking
9/SF/Mo NN
vacancies i n
ct’s Santa C
In 4Q-202
usly, severa l
t.Subject’s S
in 1Q-20 2
of 12,900sq
CA
t 23
rs are
g.
on
ps)
n

2.0 and
Clara
Clara
eports

g rent
NN in
n the
Clara
3 the
l new
Santa
23 to
q.ft. at
Retail Asking Rates and Vacan cy
$44 .00 8 .0%
$42.00
$40.00
z z z $38 .00
►
;.-
~ $36.00
~
. i $34 .00
..
~
$3 2.00
!I $30 .00 e
~
<(
$28 .00
.
- I\ A
,r---/ \ I .,
-
r -
••Ii
i\.l
~ I
'\. / ,
-
f1 - ~ t;O .-- 7 :---.-: - ,-.. ;:::: 12: === ;:::: R
r-.. ,-
= -
I
~
'J ... - -
- ~ - - I',
V I I c--
... ... - ~ 7
~

7.0%

6.0%

5.0%
*

4.0%
;;-
!

3.0%
2 .0%
$26 .00 1.0%
$24 .00 0 .0%
- Downtown SJ Vacancy - Silicon Valley Vacancy - Santa Clara Vacancy - Sunn yvale/ Cupe rt ino Vacancy - Downtown SJ Asking Rent -Silicon Valley Asking Rent - Santa Clara Asking Rent - Sunnyvale/ Cupert ino Asking Rent Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 24 1285 Homestead Road and a new lease of 40,000s q.ft. at 5201 Stevens Creek Boulevard (Stevens Creek Plaza).

According to Marcus & Millichap’s Hospitality Report for Midyear 2023 - San Francisco Metro Area (which includes Santa Clara), “Over the near term, local room demand and revenue metrics are expected to remain well below their pre-pandemic marks in San Francisco due to the sector’s reliance on tech-driven business travel and conventi ons, which have yet to return in full force.

Still, the metro should record some improvement s over the near term, albeit moderate. Across the international and domestic segments, more th an 23 million visitors are expected to visit the area this year, a 5 percent increase over 2022.”

Industrial Market Conditions

We referenced industrial (manufacturing) and warehouse market data from brokerages Cushman & Wakefield and Colliers International; we also interviewed local market participants for this report. Cushman & Wakefield reported in its Marketbeat Silicon Valley Industrial Q4-2023, that “The Bay Area has struggled to return to its pre-pandemic economic strength. Technology companies have been both a blessing and curse for the region, though more of the latter recently, with layoffs prevalent among Big Tech and startups. One bright spot is the recent push of many companies to mandate a hybrid work situation with at least some time during the week spent in office. All this fluidity in the workforce has caused tenants and landlords alike to pause and reassess space needs moving forward.”

In their Q4 2023 San Jose Silicon Valley Market Report for industrial/warehouse properties, Collier’s International reported “S ilicon Valley’s industrial market continued to see healthy leasing activity in Q42023. Gross absorption, the measure of the total volume of non-renewal lease and user-sales, recorded 593,138 square feet in the fourth quarter, down 40.8% from the previous quarter, but up 2.3% year-over-year.”

The next chart shows industrial rental rate and vacancy trends since 1Q-2018 based on data from Colliers International. The chart shows generally stable to decreasing vacancy rates and slightly increasing asking rental rates in Santa Clara.

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 25

Vacancy rates for manufacturing were generally stable in Silicon Valley in 2023. A similar trend has played out in the Santa Clara submarket w ith some fluctuation, but a generally decreasing vacancy rate to the 1.1% range in both 4Q-2 022 and 4Q-2023. However, manufacturing rental rates in Santa Clara continue to increase; the asking rental rate rose from $1.81/SF/month NNN in 4Q-2022 to $2.05/SF/month in 4Q-2023. Within Silicon Valley, the average asking rate for warehouse was$1.66/SF/month in 4Q-2023 compared to last year’s rate of$1.46/SF/month.

Warehouse data collected from Colliers Inte rnational’s Silicon Valley Research & Forecast Report Q4 2023and its predecessor reports are displayed in the next chart:

Industrial Average Asking Rate & Vacancy Rate
$4 .00
$3.50
$3 .00
z z z
<!. $2.50
"' . ii $2 .00
~
~ $1.50
• ~
~
$1.00
so.so
$0.00
- S<lnta Clara V;,c;,ncy -5;,n Jose V5CancyRate - sunnyv;, leVacancy - SiliconV;, lley Vacancy - S,1nta Clara Asking Rate - San Jose Asking Rate - Sunnyva le Asking Rate - Silicon Valley Asking Rate Wareho use Average Ask ing Rate & Vacancy Rate
$1.70 14.0%
z z SL S0 z 12.0%
....
~
~ Sl.30
"

10.0%
i i $1.10 ::,0
:.
:i so .9o
&',

8.0% c:-

6.0% ii
~

4.0%
I!
~ so .10
<( 2.0%
so.so 0 .0%
- Santa Clara Vacancy - San Jose Vacancy - Silicon Valley Vacancy --Santa Clara Asking Rat e --San Jose Asking Rate --Silicon Valley Asking Rat e Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 26 Warehouse vacancy rates in Silicon Valley have been fluctuating for several years with a slightlyincreasing vacancy rate of 2% in th e 4Q-2023 compared to 1.5% in Q4-2022.Warehouse rental rates in Santa Clara are re ported to havedecreased; the asking rental rate decreased from $1.54/SF/month in 4Q-2022 to $1.32/SF/month in 4Q -2023. Within Silicon Valley, the average asking rate for warehouse generally increased to $1.32/SF/month in 4Q-2023compared to last year’s rate of $1.23/SF/month.

Data centers are one of the larg est industrial occupancy groups in Santa Clara, due mostly to Silicon Valley Power, which has lower rates than elsewhere in the Bay Area. The rise of remote working reinforced the need and demand for da ta centers. We discovered several expansion plans and construction occurring on existing sites. There have been several land sales in recent years in Santa Clara that are proposed for new data centers. Market particip ants report that data center operators will pay a premium for a larger site in Santa Clara.Two (data center) sites in Santa Clara were sold in 2021 (see Industrial La nd Comparables I-1 and I-2, these are the most recent industrial sales that we uncovered and confirmed).One additional transaction at 2315 Mission College Boulevard in Sant a Clara (not included in the sale s grid) is also a data center land sale that was reported to have been purch ased by Amazon Data Services Inc. The 7.04 acre site reportedly sold for $51,817,500 or $168.97sq.ft. of land area. This sale could not be fully confirmed but was reported to have closed escrow on January 4, 2022.

CBRE’s U.S. Data Center Trends report for the 1H 2023(September 2023) indicated the following market changes in Silicon Valley’s data center market:

Limited land and ability to deliv er power has caused some providers to explore options beyond Santa Clara in neighboring markets like San Jose and the East Bay Area. The city of Santa Clara is power constrained. Developers have been land-banking available sites while waiting for power delivery. Some of the current projects in the city of Santa Clara include the following: 2805 Bowers Avenue is currently pending review. Th e project requires a General Plan Amendment, Use Permit and Architectural Review to demolish the existing approximately 104,000 square foot 2-story building and construct a new 4-st ory 244,068 square foot data center with a substation. The proposal also involves a lot lin e adjustment.3060 Raymond Street is currently MW
160
Under Construction Preleased New Deliveries Vacancy
Vacancy MW
10% 70
9%
60 8%
50 6%
5% 40
4% 30
3% 20
1 1%
10 0
2015 2016 2017 2018 2019 2020
Absorption Vacancy
2021
Vacancy
12%
10%
9%
7%
5%
3%
"'
2022 Hl 2023
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 27 pending review. The proposal is to convert an existing 24,422 square foot , two-story industrial building to a 9 megawatt data center. The project requires a Use Permit and Architectural Review to allow for the change in use and alte rations to the building, su rface parking area, site landscaping. The project includ es interior and exterior improvements to the building, the installation of five 2,000 kilowatt back-up diesel generator and six closed-circuit cooling towers, and frontage improvements.2905 Stender Way is currently under cons truction. The project required rezoning from Planned Development (P D) to Light Industrial (ML), Architectural Review and Minor Modification to increase the height to 85’ and reduce the parking space requirements of a 3.8-acre project site. The site is bounded by Central Expressway to the south, Stender Way to the west, adjacent buildings to the north, and San Toma s Aquino Creek to the east. Project includes demolition of the existing single-story buildings, and construction of a four-story, 246,660 square-foot data center bu ilding.1200 Memorex Drive Data Center is currently under construction. The project is the development of a four-story 472,920 square foot data center building with an attached six-story 87,520 square foot ancillary use office and storage component, for a combined square footage of 560,440, along with the asso ciated electrical substation, paved parking areas and landsca ping. The data center building would be approximately 85 feet in height, with additional screening features extending to a height of 99 feet. The data center portion of the building would house computer servers for private clients in a secure and environmentally controlled structure and would be designed to provide 60 megawatts (MW) of information technology (IT) power.2600 De La Cruz Blvd - Sequoia Data Center Project is currently pending review to constr uct a 703,450 square-foot, f our-story data center, backup generating facility with a generati on capacity up to 96.5 megawatts (MW), surface parking, landscaping and site improvements. Ther e is a Modification to increase the maximum building height from 70 feet to 85 feet and decr ease parking requirement to one space per 5,000 square feet of gross floor area . The site was previously devel oped with a one-story recycled paperboard mill and warehouse. The site is currently vacant and unpaved.

Residential Market Conditions

The National Association of Home Builders, reported;Mortgage rates well under 7% over the past month have led to a sharp increase in builder confidence to begin the new year.

Builder confidence in the market for newly built single-family homes climbed seven points to 44 in January, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released today. This second consecutive monthly increase in builder confidence closely tracks with a period of falling interest rates. “Lower interest rates improved housing affordability conditions this past month, bringing some buyers back into the market after being sidelined in the fall by higher borrowing costs,” said NAHB Chairman Alicia Huey, a custom home builder and developer from Birmingham, Ala. “Single-family starts are expected to grow in 2024, adding much needed inventory to the market.

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 28 However, builders will face growing challenges with building material cost and availability, as well as lot supply.”
“Mortgage rates have decreased by more than 110 basis points since late October per Freddie Mac, lifting the future sales expectation component in the HMI into positive territory for the first time since August,” said NAHB Chief Economist Robert Dietz. “As home building expands in 2024, the market will see growing supply-side challenges in the form of higher prices and/or shortages of lumber, lots and labor.”
The California Association of Realtors (C.A.R.) published their December Home Sales and Price Report in mid-January 2023. The report notes that closed escrow sales of existing, single-family detached homes in California totaled a seas onally adjusted annualized rate of 224,000 in December, according to information collect ed by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The stat ewide annualized sales figure represents what would be the total number of homes sold during 2023 if sales maintained the December pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

December’s sales pace was essentially unchanged from the revised 223,940 homes sold in November and was down 7.1 percent from a year ago, when a revised 241,070 homes were sold on an annualized basis. Sales of existing single-family homes in California have been below the 300,000 threshold since September 2022 and will likely stay below that level in the first quarter of 2024. While the deceleration in the year-over-year loss was due primarily to the low level of pending sales recorded a year ago, the slowdown could be a sign that the market is turning the corner, especially since rates in the past couple of weeks have remained well-below the recent peak recorded in late October. For the year as a whole, the state recorded an annual sales level of 257,630, a decline of 24.8 percent from the revised sales level of 342,530 reported in 2022. The annual sales decline in 2023 was the biggest drop in existing home sales in California since 2007.
“The housing market had a tough year in 2023 as a shortage of homes for sale and high costs of borrowing continued to have a negative impact on housing inventory and demand,” said 2024 C.A.R. President Melanie Barker, a Yosemite REALTOR®. “With mortgage rates expected to come down in the next 12 months, home sales will bounce back as buyers and sellers return to a more favorable housing market. Home prices should see a moderate increase in 2024 as well.” While California’s statewide median price dipped 0.3 percent from November’s $822,200 to $819,740 in December, it posted its largest year-over-year gain since May 2022. The December median home price rose 6.4 percent from a revised $770,490 recorded a year ago. With mortgage rates softening since mid-October, home prices will likely maintain their upward momentum, and the market should continue to observe a mid- to single-digit, year-over-year growth rate in California’s median price in at least the early part of 2024. For 2023 as a whole, California’s Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 29 median home price slipped 0.6 percent to $813,980 from 2022’s $818,900 figure but is expected to climb to $860,300 in 2024.
“Easing inflationary pressure and a soft economic outlook suggest that we will see some interest rate cuts in the upcoming year, which bode well for a housing market recovery,” said C.A.R.

Senior Vice President and Chief Economist Jordan Levine. “With rates declining to a 7-month low in late 2023, Americans are feeling more positive about the market, and we could begin to see some increase in market activity at the start of the year. The improvement is expected to be gradual as tight housing supply will remain the norm in 2024.”

Regional Housing Market

The Standard & Poor/Case-Shiller Home Price I ndex measures the average change in value of residential real estate given a constant level of quality and re flects single-family housing. It is sometimes referred to as a repeat sale index. The next chart indicates that the index for the subject’s San Francisco Metropolitan Area increased about 2.0% from 342.977 in November 2022 to 350.092 in November 2023, or about 0.17% /month, echoing the builder sentiment evident in the Housing Market Index.

Source: S&P Dow Jones Indices LLC

The State of California Department of Finance (DOF) compiles statistics on total housing units in both the cities and counties of California. Based on DOF statistics, Santa Clara County had a total housing supply of 701,539units as of January 1, 2023. This represents an increase of housing units over the 696,489 units as of January 1, 2022.

FRED ~ - S&P Corelogi c Case.Shiller CA.San Francis co Home Price Index 400
380
J60
8 j
340
~ 320
!
300
280
200
Jan2019 Jul2019 Jan2020 Jul2020
Shaded areas indicate U.S. recessions .

Jan202 1 Jul2021 Jan 2022 Jul2022 Jan2023 Jul2023
Source: S&P Dow Jones Indices LLC fred. stlouisfed .org Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 30 According to the Association of Bay Area Governments (ABAG)4 Projections 2040 report (most recent report), in 2015, Santa Clara County had a total of 648,900 households. ABAG projects that in 2030, the number of Santa Clara C ounty households will ha ve increased by a compounded annual increase of 1.04 percent, to 757,690 or an average of 7,253 households per year. As such, the demand for housing (i.e. households ) is projected to increase at a considerably higher pace than that of housing supply.

In the City of Santa Clara, the DOF reported a total of 53,370housing units as of January 2023.

This represents an increase of housing units from the 52,000housing units as of January 2022.

According to ABAG’s Projections 2040 report, in 2015, the City of Santa Clara had a total of 49,685 housing units. This statistic is projecte d to increase to 52,675 housing units by 2030, a compounded annual rate of 0.39%, or an average increase of 199 housing units per year. Based on the most recent two year and 10-year periods, the City has exceeded ABAG’s projections.

Local Multifamily Market

According to Integra Realty Resources View point 2024 San Jose Multifamily Annual Report, “The Silicon Valley is a hub for t ech employment in the nation, a nd despite some recent layoffs, a dominant tech presence is expected to be ma intained. Tech giants such as Google and Apple continue to expand in the re gion, creating high-income job growth and additional demand for housing. The region is one of th e highest-priced housing markets in the nation, both for renters and homeowners, and though there is a significant gap in affordability between the two, forcing most new households to rent rather than purch ase a home. The market experienced a slowdown during the pandemic as remote working environm ents allowed renters to relocate to more affordable markets. The most expensive submarkets experienced the greatest occupancy loss and rent decline. However, improvement began in 2021 and conditions reached pre-pandemic levels by mid -20022. Strong demand prompted develope rs towards new construction activity with roughly 8,000 units reported to be underway. This represents among the highest volume in over a decade. Activity is concentrated in Sunnyvale , Mountain View, Downtown San Jose and Santa Clara.”

Integra Realty Resources Viewpoint 2024 San Jo se Multifamily Annual Report summary is displayed in the following charts:

4 Association of Bay Area Governments is the official comprehensive planning agency for the San Francisco Bay Area region.

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 31

Source: Integra Realty Resources Viewpoint 2024 San Jose Multifamily Annual Report

According to a CoStar report on the local multifamily market, “Heading into 2024, demand in San Jose's multifamilymarket is softening, as evidenced by falling totals of netabsorption in the second half of 2023. High interest ratesand economic uncertainty in the face of tech layoffs Market Rate nd1cators (VfY)
Categories
Going In Cap Rate (% I
Asking Rent 1$/U n id
Vacancy Rate ·(%}
Class A
.... ....

A
Class B
... ... ...

Going In Cap Rate Comparisons (%t
8_009'
6_00%
_009'
2 .00%
0_009'
~
Ill
Urban Class Suburban Urllan Class Suburban
A Class A B C'lass B
■ San Jose, CA West Region ■ NaUonal
Asking Rents ($/Unit)
$4,000
~.000
$2,000
$1,000
w
Class A Class B
■ Sim Jose, CA • West Region ■ National
Vacancy Rates (%)

8.0%

6.0%

4.0% i lri,

2.0%

0.0%
QassA
• San Jose, CA • West Region
~
~
Class B
■ Natiorial
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 32 andbank failures have reduced tenant demand, and whilevacancy has stayed relatively low, rent growth hasslowed, as landlords focus on tenant retention over rentincreases.

The structure and characteristics of the San Josemultifamily market derive from the success and growth ofthe technology-based economy of Silicon Valley. Theimpressive growth of this sector over the past 30 yearshas driven large increases in employment and incomeand generated strong growth in housing demand. Oneconsequence of the region's success is that housing inSan Jose is among the costliest in the nation. Apartmentrents are the third highest, after San Francisco and New York, while for-sale housing is out of the reach of many residents.”

Local Single-Family Market

According to the City of Santa Clara General Pl an, an estimated 28,500 new jobs will be created and the population will grow by 32,135 people in the City between 2010 and 2035. The General Plan forecasts that 13,222 new housing units will be needed during that same period, based on an estimated household size of 2.5 people. The Genera l Plan also states that household growth in the City has been much slower than the rest of Santa Clara County due to the lack of vacant residential land. Therefore, in order to meet future housing needs, construction of new housing will primarily occur through the redevelopment of existing sites.

Among the 53,370 housing units (January 2023) in Santa Clara, as reported by the DOF, the single-family(attached and detached) market represents about 24,760 or about 46% of the totalhousing units in Santa Clara.

CoreLogic is a national real estate, mortgage, c onsumer, and specialized business data provider.

DQ Newshas in the past tracked theannual medi an home price for all homes (single-family, condo, and townhouse), including new construction, in the City’s three ZIP code areas through 2021. As the DQ News reports are no longer ava ilable, all of 2022 and 2023year end summary data was obtained from MLS Listings and does not include all new construction.

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 33

The data above indicates that zip code 95051 cons istently has the highest median price among Santa Clara’s zip codes. Zip code 95050 had the second highest median in most years. The $/SF indicator shows that 95051 has higher prices than 95050, which both have higher prices than 95054. The data indicates that median prices we re increasing in 2018, stabilizing in 2019 and 2020, increasing in both 2021 and 2022, and relatively stable to slightly increasing in 2023. By the end of 2023, compared to the previous year, median prices had increased about 0.0% per year in 95050, decreased about -1.8% per year in 95051 and increased about 7.8% per year in 95054.

The $/SF indicators showed an overallincreasing trend from 2020 to 2023. The total number of sales indicator showed an overall decreasing rate from 2022 to 2023 in all three zip codes.

2018 Year End SUDlDlary Sales
Community 7.i:p Sales % Chg Median Price % Chg High Price S/SqFt % Chg Santa Clara 95050 380 -0.5% $1,184,500 24.4% $2,609,000 $887 25.0% Santa Clara 95051 484 -16.6% $1,358,000 17.0% $2,800,000 $934 14.7% Santa Clara 95054 185 -25.4% $1 ,250,000 23.3% $2,400,000 $799 13.9% 2019 Yea r End SUDlDlary Sales
Community 7.i:p Sales % Chg Median Price % Chg High Price S/SqFt % Chg Santa Clara 95050 332 -12.6% $1,200,000 1.3% $2,350,000 $837 -5.6% Santa Clara 95051 461 -4.8% $1,300,000 -4.3% $2,400,000 $860 -7.9% Santa Clara 95054 162 -12.4% $1,140,000 -8.8% $2,450,000 $748 -6.3% 2020 Yea r End SUDlDlary Sales
Community 7.i:p Sales % Chg Median Price % Chg High Price S/SqFt % Chg Santa Clara 95050 301 -9.3% $1,200,000 0.0% $2,780,000 $834 -0.4% Santa Clara 95051 614 33.2% $1,400,000 7.7% $2,200,000 $869 1.0% Santa Clara 95054 160 -1.2% $1,175,000 3.1% $2,090,000 $774 3.5% 2021 Yea r End SUDlDlary Sales
Community 7.i:p Sales % Chg Median Price % Chg High Price S/SqFt % Chg Santa Clara 95050 441 46.5% $1,289,500 7.5% $3,218,500 $858 2.9% Santa Clara 95051 855 39.3% $1,490,000 6.4% $3,180,000 $912 5.0% Santa Clara 95054 242 51.3% $1,255,000 6.8% $2,900,000 $794 2.6% 2022 Yea r End SUDlDlary Sales
Community 7.i:p Sales % Chg Median Price % Chg High Price S/SqFt % Chg Santa Clara 95050 258 -41.5% $1,472,500 14.2% $3,650,000 $1,024 19.4% Santa Clara 95051 483 -43.5% $1,630,000 9.4% $3,500,000 $1,119 22.7% Santa Clara 95054 138 -43.0% $1,278,044 1.8% $3,330,000 $887 11.7% 2023 Yea r End SllDlDlary Sales
Community 7.i:p Sales % Chg Medi an Price % Chg High Price S/SqFt % Chg Santa Clara 95050 204 -20.9% $1,472,500 0.0% $3,600,000 $1,007 -1.7% Santa Clara 95051 299 -38.1% $1,600,000 -1.8% $3,030,000 $1,102 -1.5% Santa Clara 95054 94 -31.9% $1,377,500 7.8% $3,180,000 $888 0.1% Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 34 The following tables depict the median price trend by zip code over the 60 months ending December 2023 for single family homes and common interest developments (townhouse/condos) in the three zip codes of the City of Santa Clara using closed sale data obtained by MLSlistings.com:

As shown above, market data derived from the local MLS shows that prices were oscillatingup and down over the 60 months ending December 2023. However, prices for single family homes were generally relatively stable to slightly increasing in 2023. In addition, the median days to sell increased in the last half of 2023.

S3,ooo,ooo
$2,500 ,000
s2,ooo,ooo
-~
Ir.
1 $1,500,000
]
C
.• ...
~ $1,000 ,000
ssoo,ooo
so
$2,000,000
$1,800 ,000
$1,600 ,0 00
$1,400,000
$1,200 ,000
$1,000,000
$800,000
$600,000
$400 ,000
$200, 000
so
Median Sales Price & Median Days to Sell
For Single-Family Units by Zip Code
--95050 M edian Price --950 51 M edian Price --950 54 M edian Price - - 9505 0 M edian Days to Sell - - 950 51 M edian Days to Sell - - 95054 M edian Days to Sell Median Sales Price & Median Days to Sell
Townhouse/Condominum
--95050 Med ian SP --95051 Med ian SP
- - 95050 Med ian Days to Sell - - 95051 Med ian Days to Sell --95054 Med ian SP
- - 95054 M edian Days to Sell
100
90 80
70 ]
60 ~
!!l-
ll
50 C
.. ...
40 ~
30 20
10 0
120
100
]
0 80
~
.!!
. .•
60 1
"
40 20
Real Es

Frank S
We not e
typically
market t h
the annu
the MLS

The dat
a
95051. T
compared
the last 1

The next
Clara, ad

As the t a
until ear l
state Apprais
Schmidt &
e that DQ N
does not inc
heir homes,
al and 2-ye a
:
a in the abo v
The data al s
d to 2021, bu
2 months.
t table using
djacent Sunn
able above i
ly 2019, w e
sed: Three Hy
Associates
News/CoreL
clude all new
using their
ar change f o
ve table supp
so indicates
ut stablein 9
MLS statist
nyvale, and th
indicates, m
ere more st a
ypothetical O
s Phone: 51
Logic data i n
w constructio
in-house m
or all housi n
ports the opi
that medi a
95050, slight
tics shows th
he larger San
median sellin
able through
One-Acre Lots

10-468-9219
ncludes res a
on. This is b
marketing ef f
ng types ove

inion that 95
an selling p
tly lower in
he monthly
nta Clara Co
g prices w e
the end of
s, One for Eac
fschmidt@
ales and ne
because build
forts instea d
r the last th r
5050 and 950
prices are h i
95051, and
median chan
ounty market
ere rising in
2019, but t h
ch Zip Code,
@valuationco
w construc t
ders often do
d. The follo w
ree Decemb
054 generall
igher in all
slightly high
nge in sellin
t since the st
the spring o
hen increas e
Santa Clara,
onsultant.net
tion, while
o not use ML
wing tables
bers, accordi
ly rate inferi
three zip c
her in 95054
ng prices in S
tart of 2018:
of 2018, re c
ed sharply i
CA
t 35
MLS
LS to
show
ng to
ior to
codes
4 over
Santa

ceded
in the

Medlian Sales :Ptice
'" '" '" 0/4 Change pet· OA, Cltange pet· Housing Type Zip Code 201.1 201.1. W--23 Month Last 12- Month Last 2 Yeat·s SFR, Condo, & 95050 Kl,3 50,000 it, 72,.500 , l, 1,,500 0.00% 03&% 95051 tl,550,000 tl,650.000 Kl,600,000 -0.25% 0.13% To\vnhouse 95054 tl,,290,000 Kl,27&,o« Kl,377,500 0.65% 0..2&% Sout·ce: Loc-.a:t lll.rS
Med ian Sales Pri ce For All Resident ial
S2,200,00J ------------------------------------------
- City of Santa Clara - Sunnyva le - SantaC laraC.ounty Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 36 early part of 2020 through the sp ring of 2020. Prices were genera lly stable over remainder of 2020 in Santa Clara and Santa Clara County but declined in Sunnyvale. The median selling prices for each of these three areas generally incr eased throughout 2021 and the first half of 2022. Prices were generally trending downwards in last half of 2023, as a result of higher interest rates.

Conclusions

The Winter 2024 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Surveyreports “For developers in the office sector, the rationalization of existingoffice space and a return-to-the-office are going to bekey elements in deciding where and when to invest.”“The forecast is for at least three more years of declining rents and occupancy rates.”

Commercial (retail and office) properties exhibitedmixed indica tions due to the pandemic in 2021. Some retail is doing fine, butthe hospitality /leisure/entertainment industries remain depressed. Office demand appears in limbo as many employees may or may not fully return to offices, particularly among tech companies. Ba sed on discussions with market participants, general market conditions and the sales data we analyzed, we applied a market conditions rate of change to the commercial land sale comparab les usedofnegative 0.75% per month from the start of 1Q-2020 through 4Q-2021. For the year2022 and 2023 prices were more stable for commercial and did not warrant adjustment.

In prior years, industrial(and warehouse) market statistics indicated that rental rates had been trending upwards, whilevacancy rates generally st abilized near5%. Market participants opined that selling prices werealso increasing, especially for large site s suitable for da ta centers.The increase in industrial value is supported by an improved paired sale at 3600 Peterson Way in Santa Clara that sold in October 2016 for $30 million and again in June 2019 for $37 million, which indicates a straight-line increase of about 0.72% per month for this 75,800 square foot building on an approximate 5.42-acre site. 1623 S 10
th Street in San Jose sold for $3,000,000 in
August 2018 and again for $3,801,000 in October 2020, in dicating a straight-line increase of about 1.0% per month. Based on changing rents and prices, we concluded that competing industrial land prices were increa sing at the rate of about 0.75% per month from the date of sale of the comparablesthrough Q4-2020, with no additional adjustment in 2021, 2022 or 2023.

Santa Clara (and the Bay Area in general) is an undersupplied housing market. Demand for housing is expected to continue in the long-te rm, with increased demand for higher density housing options, a result of the scarcity of devel opable land and the more affordable nature for prospective buyers/renters.

Market data and market participants report that residential pri ces declined in the latter part of 2018 and were stable overall during 2019. In 2020, the residential market showed different Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 37 trends depending on property type . The residential market gene rally saw greater demand for detached residential over th e course of 2020 and 2021 as buyers looked to have more indoor/outdoor space since they began spendi ng a greater proportion of time at home.

Meanwhile, condominiums and apartments e xperienced a slower market during 2021.

Comparing just the December 2022 city of Santa Cl ara overall median resi dential sales price to the December 2021 overall median residential sale s price, MLS Listings shows a decline of

4.83% year or a decreasing rate of change of about .40% per month. Howe ver, comparing just the December 2023 city of Santa Clara overall me dian residential sales price ($1,400,000) to the November 2022 overall median resi dential sales price ($1,400,000) in dicates that no adjustment is necessary for 2023. Based on the market reports cited above, sales data analyzed, and market participant interviews, for the very low-density residential land sales used in the following analysiswe applied an increasing rate of cha nge of 0.25% per month from the start of 2020 through the fourth quarter 2020, an increasing rate of change of 1.00% per month from the start of 2021 through the fourth quarter 2021, and an d ecreasing rate of change of 0.40% per month from the start of 2022 through the fourth quart er 2022. We conclude no market change is warranted during 2023 for this property type.

For the high-density land sales, median sale prices oscillated somewhat and multifamily rents stagnated or declined during 2021. Rent growth picked back up in the first half of 2022.

However, CoStar’s Santa Clara Multi-Family report showed stagnating rent growth in the second half of 2022. CoStar reported; “Challenging economic conditions over the past 12 months, including high inflation, rising interest rates, and layoff concerns, have dampened tenant demand.” “While expensive in comparison to most other areas of the country, many renters in San Jose have few alternative options for housing. Median home prices have more than doubled over the past decade, and with mortgage rates at around 7%, the monthly cost of homeownership is substantially more expensive than renting.As the metro area is geographically constrained, commutes to areas with lower-priced homes are time consuming and arduous. As a result, many Silicon Valley workers are willing to pay high rental rates for lower grade multifamily units near suburban office campuses.” Over the longer term, rent growth in Santa Clara has averaged 3.6% annually over the past decade. We conclude no market change is warranted during 2019, 2020 and 2021.A 3.6% annual market change is applied during 2022. We conclude no market change is warranted during 2023 for this property type.

LAND USE ORDINANCES

Since we are analyzing hypotheti cal lots, we supposed that ea ch use would be based on its appropriate General Plan designation. The appropriate zoning category for each hypothetical use was not a critical factor as the General Plan is the long-term planning tool used by the City.

Furthermore, comparable land sale transactions typically sell based on their intended use, which is supported by the General Plan in almost all cases. The City’s Phase II Land Use map is in Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 38 effect and is intended to guide land uses for the years 2015-2025.Compared to Phase I, it expands the areas within the city where mixed-us es and higher-density residential is allowed.We supposed the following General Plan designations for each hypothetical use:

HIGHEST AND BEST USE

Westudied the legally permissible, physically possible, financially feasible, and maximally productive uses of each hypothetical lot. We cons idered prevailing market conditions and recent development trends.As indicated in the market conditions section, except for retail/hospitality/office, each product type is generally experiencing increasing or stable prices and stabilizing vacancy rates. These are indications that the highest and best use is to construct the legally permissible product fo r each respective property type. However, forthe commercial use, since many retail and offi ce projects are on hold, constr uction would not likely be undertaken until the market improves, unless preleased or a build-to-suit is procured. Therefore, the highest and best use for the hypothetical co mmercial use would be to hold for future development of a commercial building until the market improves, unless preleased or a build-to- suit. We concluded to the following components of property uses for the highest and best use of the hypothetical lot based on the overall market and the instruction of the Client:

Weapplied a hypothetical condition that each of these uses was allowed on the hypothetical subject lot.

Use of Hypothetical Lot Genera] Plan
Very Low Uensirty Residentia l V,ery Low Density :&esident:ia] Low Uensirty Residen tial Low DoocS-ity :&esidoot:ia]
l\1Iediuw Density Residentia l Medmm Density Resid!oot:ia] High Uensirty Residen tial High Doo&fy :&esid!enria]
Commerdal :&egional Commemiia]
ln,dustrial Light Inoostria]
se of Hypothetica] Lot Highest & O.est se
Very Low Uensirty Residen tcia] V,ery Low Dens.icy :&esid!entia] Low Uensrty Residen tial L-0w Density :&esid!ent:ia]
l\{edium Uensirty Residen tial Medmm Den,sity Resident:ia] High Uensify Residential High Density ~esid!ent:ia]
Commer,cia] Hold for Development of a. Commercial Bnilcfing fadustria] Incm,stria] Builcfing
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 39 For this analysis and based on the marketand th e City’s General Plan, we concluded the most reasonable density to support the residential uses was about the midpoint or nearer the high end of the allowed density ranges (based on ever-increasing density proposals/approvals):

 10 dwelling units per gross acre (DU/AC) for Very Low-Density Residential;

 13 dwelling units per gross acre (DU/AC) for Low-Density Residential;

 30 DU/AC for Medium-Density Residential; and

 45 DU/AC for High-Density Residential.

For Very Low-Density Residential, which allows up to 10 DU/AC, we concluded that the most likely subdivision for a hypothetical one acre of la nd would support a subdivi sion at the high of this range, or 10 DU/AC. This is because the scarcity of land requires ever increasing densities to make projects financially feasible.

The likely commercial use would be an office bu ilding, but only if prelea sed or a build-to-suit.

The likely industrial use would be a data center, flex, light industr ial building or some type of interim contractor storage yard with minimal building improvements.

APPRAISAL PROCESS

The appraisal profession has generally relied upon three traditional approaches in estimating the market value of real property.These are the Income Capitalization Approach , the Sales Comparison Approach, and the Cost Approach.While all three approaches are always considered in a valuation assignment, all three are not always applied.The quantity and quality of available data and the applicability of each approach relative to the value being sought are important factors in reconciling to an opinion of value.

Market value was estimated using the sales comparison approach.The income capitalization approach is seldom used when valuing land. The cost approach did not offer substantial insight into this estimate of market value since ther e are no building improvements.Sellers, buyers, and our peers in this market rarely rely on the cost and income capitalization approaches when offering, purchasing, or valuing properties similar to the hypothetical subjectlots.Therefore, we did not undertake a cost or income capitalization approach.

Following we estimated the value of a hypothe tical one-acre lot under each use scenario described above, as if located w ithin the 95050 zip code, since th e most data was discovered in this zip code. Next, we applied the weighted average of the highest and best land use component, Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 40 based on the percentage of total land area asso ciated with the differe nt property types (as described above) that sold in the City of Santa Cl ara in the 12 months prior to the date of value (as reported by Old Republic Title Company). Lastly, we applied any necessary locational differences from the 95050 zip code conclusion to arrive at the a ppropriate average lot value in the 95051 and 95054 zip codes.

AVERAGE VALUE ESTIMATE IN 95050 ZIP CODE

Very Low-Density Land Value

The writers examined data that was discovered by: talking to brokers, agents, property owners, and market participants from within th e subject market; revi ewing DataTree.com, MLSlistings.com, and CoStar.com databases for recent sales; and searching Loopnet.com and broker databases for curre nt listings. We also reviewed development reports provided by the planning departments of Santa Clara and other nearby cities.

As stated above, for the very low-density value component, we assumed a density of 10 dwelling units per acre, at the high end of the allowed range under the Very Low-Density General Plan designation, which allows up to 10 dwelling units per acre. We searched for competing sales and listings of properties throughout Santa Clara and adjacent cities which were intended for development with residential densities less than 25 dwelling units per ac re and that closed escrow over the last three years. We first analyze the subject hypothetical one-acre site located in zip code 95050 since more appropriate sales from this zip code were discovered. The sales we found most comparable are displayed on the follo wing adjustment grid. The adjustment grid serves two purposes. First, it presents data, an alysis, and conclusions about the subject and comparables in a way that facilitates compar ison. Second, it presents the data in a format whereby the reader can follow the writers’ adjustment process.

A parcel map for each comparable sale is displayed in the Addenda. Selling prices were verified using our summary transcript of the public record and conversat ions with sell ing and listing brokers/agents, sellers, and/or buyers when possible. A map showing the location of these comparables is displayed in the Addenda.

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt& Associates Phone: 510-468-9219 [email protected] 41

VIRY L OW DENSITY COMPARABLE LAJ•m SALIS
ELEMENT OF ADJUSTMENT SUBJECT COMPARABLE VLD--1 COMPARABLE VLD--:2 COMPARABLE VLD--3 COMPARABLE VLD---4 COMPARABL E VLD-5 COMPARABL E VLD--6 COMPARABLE VLD--7 ADDRESS A ve::r.a.g~ Stf'eet 2303 Gianera Strael i 59 Brook:std,, Aven"" 3159 B10t l.e Strae l Fillmore Stree t 208 6-0 McC1ell.m Ro.ad 4249 Cheene y Stree t H.uwon Av"""" ,_ Santa Cw-.t - S:ant;a Cw-a Sant.t Cw-a Sant.t Cw-a Santa Cw-a Cupertino Santa Cw-.t San Jose APN W4-06---03 7 303 -2-2-028 290-04-044 104-10--077 359 -20--030 04-i2--02 5 &. 02,6 303-4 --O iS SELLER Jose Trinida d N=o Domin go 19·92 Revoc able Trust Willi, i 983 Family Trus t Manisha Kanu1 Sitlani Distric t McClel1an LLC Marlene Mllillwn Reballo RROCA LLC BUYER G-i= al ST Estate LLC Ranj.an Tru-st, el al Che<lg C &. Tsai L Cha,, Vnu, Inve ;lm:nl Group LLC Alphamcclellan LLC 1'1aruti B1'ildera LLC Bakh tiari Family Trust DOCUME.NT NUMBER 253 54 06 24 59 855 24420940 2.549094 1 2.5525850 2.5 9 169 2532,630 5 VERlFlCA TION SOURCE Broker , MLS, P,,blic Record Brnker , MLS, P,,blic ~d Broker , l\1LS, P,,blic Record Broker , l\1LS, Pl,blic Record Broker , l\1LS, P,,blic Record Broker , S1'bscription Svcs, P,,blic Record Broker , l\1LS, P,,blic Record ASSESSME NT BONDS None None None None None Non~ None
NUMBER OF UNITS 10 4 2 2 4 6 8 4
S,U.I I LISTING PRI CE S2 .. 44 3 .. 000 Sl.3:2,5 000 Sl 600 000 Sl.190 000 S9.30 0 000 S:2-650.5 00 Sl ,800 000 IS,U.I I OFFERING PRICI PIR SF Sl 45.4:2- S96 .7:3 Sll0 .9·3 Sl:26 .9'3 Sl68 .ll Sll9 ,31 Sll9 .05 TR.>!..IIISACTlONAL ADJUSTMI NTS
REAL PROPERTY RIGHTS CONVEYED Fee Simple Fee Simpi,, Fee Simple Fee Simple Fee Simple Fee Simple Fee S:imple Fee Simple ADJ1lS1ilfENT 0 .00% 0 .00% 0 .00% 0 .00% 0.00% 0.00% 0.00% FlNA .. 1'TCING TERMS Conventional Conventional All Cash All Cash All Cash All Cash All Cash .4DJ1lS1ilfENT 0.4;0'% 0 .00% 0 .00% 0 .00% 0.00% O.OO~b 0.00'%, cm-m m o NS OF SALE Arm's-Length Arm's-Leng th Arm's-Length/Improvem:n l Vali,e A.rm'o-Lenglh Arm's-Length Arm'•·-Len_gth A.un's-Lacngth "4DJlIS1ilfEJ\'T 0 .00% 0 .00"/4 -9 .3 8% 0 .00% 0.(H)% 0.000/2 0.00% EXPENDITURES AFTER SALE D~olition Of.&et D~olition Of&2t None None None None N one "4DJlIS1i\fEJ\'T 0 .000/4 0 .00% 0 .000/2 0 .000/2 0.00% 0.00% 0.00% CLOOE OF ESCROW - August S, 202.2 September 2, 2.020 March 4, 2.02.0 fone 2 i , 2023 September 1,. 2.023 May5 , 2022 June 27, 202.2 TTh1E OF SALE I MARKET CONDillO N
,.

Dacember 31, 2.023 fone 2022 Awgu~I 2020 February 2020 r June 2023 ,.

April 2.023 r April 2.02.2 .. June 2022
MONTHS FROM START IQ-2020 THROUGH 4Q-2020 .. 0 4 .. iO 0 0 0 0 "4DJ1lSn.IFA'T@ % PER M O"t.'T11 0.25% 0 .00% l. 000/2,. 2 .30% 0 .00% 0.00% O.OO~t 0.00'% MONTHS FROM ST ART iQ-202 i THROUGH 4Q-2021 0 r 12.
,. n 0 0 r 0 0
AD JUSii lfEi"\'T@ % PER M ONTH l .~ 'D 0 .00% r l2.000/4 i,, l2.000/2 0.00% 0.00% r O.~t O.~ 'tl MONTHS FROM ST ART I Q-202.2 THROUGH 4Q-2022 6 r 12 .. n r 0 .. 0 r 8 .. - 6 .4DJ1lS1ilfEJ\'T @ % PER M ONTH -0.40'% -2.40'% -4.800/4 -4.30% 0 .00% 0.00% -3.20~'£, -2.40~'t. r,uoJ\'T1IS FROM START Ql-1013 IHRO UGH 4Q-2023 12 12 12 ,6 s 12 12 ,. "4DJ1lS1ilfEi"\'T @ % PER M O"t.'T11 0 .00% 0 .000/4 0 .00% 0 .000/2 0 .(H}°/4 0.00% 0.00% 0.00"1, ADJ PRICI PIR SF .AFITR TRANS ACTlO N.U. ADJS Sl 41,93 S104.15 Sl09,86 SlM.9'3 Sl68 ,ll Sll5,49 Sll6 .19

LOCATIO NAL ADJUSTMI NTS
E.."XPOSURE I VISIBJLITY Avera_ge Similar Similar Similar Similar Similar Similar Similar ACCE5S Average Similar Similar Similar Similar Similar Similar Similar APPEAL/SITE INFLUENCES A verage Similar lnferi.m-/San Tomas & py Similar Inferior Similar Inferior Similar ZIP CODE 950 50 95054 95050 950 51 95054 95014 950 54 95 117 OVIR,U.L L O CATIO NAL RATING Average Inf.erior Inferior Similar Inferior Si,oerior Inferior Similar PHYSIC ,U. ADJUSTMINTS
SITE SIZE (ACRP.S) 1.00 0.386 0 .3 1 0.33 0.22 1.27 0.5i 0.35 &ITESIZE (ID 43,560 16 ,800 13, 00 14,425 9,3 75 55,32 1 22,2 16 15) 20 UTIL ITY/T OPOGRAPHY Recl;an,;w.ar I i Strae t Fron t Rect an!!;lllar I l Street Front Reclan!!;lllar I I Stree t Front Inferior I Sl lrre!!;lllar I 1 Stree t Front IITe,;wM Reclan!!;lllar Comer I 2. Frnnl a~ Recl;an,;ula,-I i Stree t Fron t Recl.an!!;lllar I 1 S:tree l Fron t Sl lrre,;ular I I Stree t Fron t USEJZONlNG ADJUSTMI.NTS
ZONING Rl 0 t>L RI -SL Rl -6L R1-6L Rl -W RH;L Rl ,3
GENERAL PLAN Very Low Densi ty Res Low Densi ty Res Very Low Density Res Very Low Densi ty Res Very Low Densi ty Res Resid,,nti.al Low Density Very Low Densi ty Res Resid,,ntial Neighborhood AI.LOWED DENSITY (<h."'1ing 1'nits per .acre) i,p to 10 8 to 19 i,p to 10 &p lo 10 i,p to 10 i;p to 5 1,p to lO up lo 10 NUMBER OF UNITS 10 6 2.0 2.0 4.0 ,t,.O 8.0 4.0
E.STl!l4..TED I PROPOSED DU/ACRE 1,0_0 15_6 o-4 (5_0 18_(5 4_ 15_ 11_5 INTEND ED USE Recic!ential 4 R.esic!ent.ial Units SFD -:- ADU Re;:i&,ntial -:- ADU 4 Re;:identi.al Uni ts -6 Re;:id,,ntial Units S or 9mi-i.t.s 4 Recident.ial Uni ts ENTITL EMENT ST ATUS Has Zonin .e: &. GP fu, Zoni.n~ &. GP fu.d Zonin~ and GP Had Zonin g and GP Had Zoni.n~ and GP - No A=oval• Had Zonin ~ .tnd GP -With A= oval, Had Zonin .e: and GP - No Aom-ovals Had Zonin ~ .tnd GP - No Aom-oval• OVIRALL PHYSI C,U. & USEJZONlNG RATING Suoerior Inferior Similar Inferior Suoe:rior lnfc:rior Similar OVIR.U.L RATING- SUBJICT SHOULD SllL FOR Lea.a More Simila r Sli,,b th- M or e L <>:u Sli,, btly Mor e Similar Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 42 Adjustment Process

Transactional adjustments were made sequentially for property rights conveyed, financing terms, conditions of sale/motivation of particip ants, expenditures incurred by the buyer after the sale, i.e. demolition costs, and market conditi ons since the sale da te. Market conditions adjustments are applied from the start of the first quarter 2020 through December 2023, based on trending sales data and our observations.

Comparable Sale VLD-1 is the sale of single-family lot improved with an older home. The buyer of Comparable 1 is an investor and intends to demolish the existing home and improvements.

The lot was reported to have been approved for six single family un its in the past, however that transaction never consummated. A lthough the lot was most recently marketed with the potential of being subdivided to provide four multiple guara nteed units without city approval, we depicted 6 units on the sales grid due to its reported pre- approval. The property was reported to have been owner occupied at the time of sale. This sale has a R1-6L zoning and a low density residential general plan that allows 8 to 19 dwelling units per gross acre compared to subject’s very low density residential general plan that allows up to ten units per gross acre.

Comparable Sale VLD-2 is the sale of residential lot improved with an older home. The buyer of Comparable VLD-2 intends to demolish the home and construct a new two-story dwelling and add a 748 square foot detached additional dwel ling unit (ADU). This comparable will not pay park impact fees since it already had a home improved on it and ADU’s are exempt under the Santa Clara City Code (17.35.090).

Comparable Sale VLD-3 was the sale of an im proved lot that could support two lots or a SFD and an ADU. The listing broker opined that the ex isting improvements needed a lot of work, but the buyer intended to move into the home, which dated from the 1940s. Based on the expected utilization of the improvements, we concluded that a downward adjustment was warranted for their contributory value. The amount of adju stment was estimated based on our observations, input from the listing broker, and a good fit for the data. A downward adjustment of $150,000 for this element of comparison was applied to the comparable on the Conditions of Sale line.

Comparable Sale VLD-4 was the sale of a vacant corner parcel. This property was originally listed for $1,498,900 in July 2022. The listing price was reduced in September 2022 to $1,398,900. The price was again reduced in October 2022 to $1,298,900. The lot was marketed as having the potential for a duplex or fourplex.

Comparable Sale VLD-5 is the sale of a 1.27 acre parcel with an approv ed tentative map and a plan to build six single-family homes with ADU’s. This was an all- cash sale. The buyer is Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 43 reported to be a developer. The older single fami ly home and garage are to be demolished by the buyer. This Cupertino location is considered to be superior, ba sed on higher median prices and generally superior schools.

Comparable Sale VLD-6 was the sale of two vacan t lots that could support a reported 8 or 9 unit development. The seller had previously applied for a tentative map to allow for an 8-unit townhouse development. The proposed development was not approved and th e lots currently do not have any pending approvals. Th e lots were not listed on the MLS but were reported to have been actively marketed for six months. The property was listed at $2,700,000 and was reported to have had four offers. This was an all cash-sale.

Comparable Sale VLD-7 was the sale of a vacant lot that could support a reported 4 unit development. No pending approvals at the time of sale. Buyer was not sure if they will develop the lot for single family or multi-family use. The comparable had only one offer and it was an all cash-sale.

Comparable Sale VLD-1 was reported to have been owner occupied at the time of sale and could be rented. The cost of demolition was offset by the rents that could potentially be received. The seller of Comparable Sale VLD-2 was given some time to lease back following close of escrow; again, we concluded that the cost of demolition would be offset by the interim rental income.

Locational adjustments were broken into elements that reflect the property’s identity to potential tenants or buyers (exposure, visibility), access (to freeways and amenities), and overall desirability of the location based on neighborhood factors such as age a nd condition of nearby properties, proximity to enhanci ng or detrimental factors, or an identifiable valuation element relating to address (locational appeal, zip code). As will be discussed in the following material, residential land values in the 95050 zip code rated superior to th e 95054 zip code but inferior to the 95051 zip code; thus, the 95054 comparable located in 95054 is adju sted upward and the comparable located in 95051 is adjusted downward.

Locational adjustments were warranted for the elements of comparison as summarized on the grid. Although Comparable VLD-2 backs to a public park, beyond the park is San Tomas Expressway, which is within about 200 feet of this comparable and is not separated by a sound wall, rating inferior to the subject; an overall upward adjustment is concluded for this element of comparison.

Physical and Use/Zoning adjustments were broken into elements that reflect property size, utility/topography, allowed land uses and density, intended use/de velopment density, affordable housing component, and entitlement status.

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 44 Comparable VLD-3 is located at the elbow of tw o streets and thus has an irregular pie-slice shape; an upward adjustment is concluded fo r inferior utility. For this analysis, upward adjustments were warranted for the lower dens ities of Comparables VLD-2 and VLD-3, rating inferior for this element of comparison.

As discussed in the preceding ma terial, market conditions adjust ments are applied from the start of the first quarter 2020 through the end of the fourth quarter 2023.

Conclusion

Following adjustment for the elements summarized on the grid, we concluded to the overall ratings displayed at the bottom of the sales gr id. Bracketed by the comparable ratings, giving most weight to the sale comparableslocated in Santa Clara, we concluded to the following unit value of unentitled very low-density residential land in the 95050 zip code:

Unit $/SF x Land Area (SF) = Indicated Value
$120 x 43,560 = $5,227,200

Estimated Market Value of a 1-Acre
Very Low-Density Residential Lot in 95050 Zip Code: $5,227,200

Low Density Land Value

For the low-density value component, the City’s land use classification ci tes a low-density range of 8-18 dwelling units/acre (DU/Acre), which is greater than the maximum 10 DU/Acre allowed in the very low-density classification. We assumed a density of 13 DU/Acre, about the mid-point of the density range. In the market, the prim ary value difference between very low and low- density land relates to density. The density ad justment was estimated based on the relationship between price per SF and density, as evidenced by the comparables. In the chart below, we plotted the preceding very-low density land comparables used in the following low-density value scenario.

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 45

As shown in the chart above, the price per square foot of land increases with increasing density.

This is congruent with our observations in the ma rket that as density increases, price per SF of land typically increases. The difference in pricing for changing densities is clear when comparing the lowest to the higher densities. Similarly, the price/SF difference is less when compared to the median or higher densities. We concluded that there is a difference in value/SF between the preceding very low density and the low-density residential which has a higher density. The trendline in the chart above indi cates that the appropriate unit value based on a density of 13 dwelling units per acre would be about $125 per square foot. Historically, there has been a 5% to 10% price differencebetween the preceding very low density and low-density residential.Based on the comparable data, with a density of 13 dwelling units per acre for the low-density residential land use, we concluded to $125/SF.

Conclusion

We concluded to the following Low-Density residential value in the 95050 zip code for 1-acre of land:

Unit $/SF x Land Area (SF) = Indicated Value
$125 x 43,560 = $5,445,000

Estimated Market Value of a 1-Acre
Low-Density Residential Lot in 95050 Zip Code: $5,445,000

High Density Land Value

Similar to the preceding very low-density land search, we searched data sources for high and medium-high density residential land transactio ns and examined data that was discovered by 2023 Comparable Price p e r Squa re Foot vs. Propos ed OU/Ac ■
■
-■
--■
-----
■ -
Proposed Dwc lline Units per Acre
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 46 talking to brokers, agents, property owners, and market participants from within the subject market. We also reviewed development reports provided by the planning departments of Santa Clara and other nearby cities.

As stated above, for the high-density value component, we assumed a density of 45 dwelling units per acre, aboutthe midpoint of the allowe d range under the High Density General Plan designation, which allows 37-50 dwelling units per acre.The sales we found most comparable are displayed on the next grid. A map showing the loca tion of these comparables is displayed in the Addenda.A parcel map for each comparable sale is also displayed in the Addenda.Selling prices were verified using our summary transcript of the public record and conversations with selling and listing brokers/agents, selle rs, and buyers.We were unable to confirm the details of Comparable HD-2 with a party to the transaction. We relied on published data, city records, subscription service data, news articles, and info rmation available from a summary transcript of the public record for transaction details regarding these comparables.

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt& Associates Phone: 510-468-9219 [email protected] 47

HIGH DENSITY COMPARABLE LAND SALES
ELEMENT OF ADJUSTMENT SUBJECT COMPARABLE HD-1 COMPARABLE HD-2 COMPARABLE HD-3 COMPARABLE HD-4 COMPARABLE HD-5 COMPARABLE HD-6 LISTING ,_ Average Street - 950 Monroe St 1601 Civic Center Drive 3941 Stevens Creek Blvd. 2303-2319 Calle Del Mundo 2221-2251 Calle De Luna 2301-2317 Calle De Luna ADDRESS 2232-2246 Calle Del Mundo ,- -Santa Clara Santa Clara Santa Clara Santa Clara Santa Clara Santa Clara Santa Clara ,_ APN 269-20-086 224-49-006 294-39-010 097-05-060 & 061 097-46-020 & 027 097-46-007 , 008,009 SELLER Von Raesfeld Family Partnership K & K Outdoor Advertising LLC MB EHclusively Properties LLC Beta & Properties LLC Laison LLC/2232 Calle Del Mundo LLC TGR Associates LLC BUYER Lamb Partners LLC CIVIC Center LP CRP The Meridian LP 2263 Calle Del Mundo LLC GS Tasman East Subsidiary, LLC Listing DOCUMENT NUMBER 24395084 24380714 25233709 24840021 25062330125062315 Listing VERIFICATION SOURCE Broker, Public Record Subscription Svcs, Public Record Subscription Svcs, Public Record Subscription Svcs, Public Record Subscription Svcs, Public Record Broker, Subscription Svcs, Public Record EXPOSURE TO MARKET 12 Months 12 Months 12 Months 12 Months 12 Months 36Months NUMBER OF UNITS 45 .35 (Pro fhta.l 1.24 .!.?? .!.?? .!.?? 235 SALE I LISTING PRICE $4,700,000 $12. 100,000 $5,075,000 $8,000,000 $21,995,000 $15,000,000 SALE I OFFERING PRICE PER SF $207.73 $197.03 $197.47 $181.83 $235.95 $249.53

TRANSACTIONAL ADJUSTMENTS
REAL PROPERTY RIGHTS CONVEYED ,_ Fee Simple Fee Simple (Short Term Leases) Fee Simple Fee Simple Fee Simple Fee Simple Leased Fee ADJlJST/tfENT 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
FINANCING TERMS Conventional Conventional Conventional Conventional Conventional Listing ADJlJST/tfENT 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
CONDITIONS OF SALE Assemblage Arm's-Length Arm's-Length Assemblage Assemblage Listing ADJlJST/tfENT -5.00% 0.00% 0.00% -5.00% -5.00% -10.00%
Solvent contamination in soil and ground
EXPENDITURES AFTER SALE Demolition Offset Demolition of 30k SF Office Building Demolition Offset Demolition Offset Demolition Offset water ADJlJST/tfENT 0.00% 1.65% 0.00% 0.00% 0.00% -15.00%
CLOSE OF ESCRO\./ February 3, 2020 January 15, 2020 February 03, 2022 February 19, 2021 August 11, 2021 Listing

TIME OF SALE I MARKET CONDITION
,.. December 31, 2023 - December 2018 Est. Sept 2019 April 2021 Est. April 2019 Est. Feb. 2020 .. December 2023 MONTHS FROM START 10-2019 THROUGH 40-2019 12 3 0 8 0 0
ADJlJST/tfENT@ X PER /tfONTH ,..

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
MONTHS FROM START 10-2020 THROUGH 40-2020 12 12 0 12 10 ,.
0 ADJlJST/tfENT@ X PER /tfONTH ,..

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
MONTHS FROM START 10-2021 THROUGH 40-2021 12 12 8 12 12 .. 0 ADJlJST/tfENT@ X PER /tfONTH ,.

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
MONTHS FROM START 01-2022 THROUGH 40-2022 12 12 12 12 12 .. 0 ADJlJST/tfENT@ X PER /tfONTH ,..

0.30% 3.60% 3.60% 3.60% 3.60% 3.60% 0.00%
MONTHS FROM START 01-2023 THROUGH 40-2023 12 12 12 12 12 0 ADJlJST/tfENT@ X PER /tfONTH 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% ADJ PRICEISF AFTER TRANSACTIONAL ADJS $204.45 $207.50 $204.58 $178.96 $232.22 $190.89

LOCATIONAL ADJUSTMENTS
EXPOSURE I VISIBILITY Average Similar/Corner Similar Similar Similar Similar Similar ACCESS Average Similar Similar Similar Similar Similar Similar APPEAL/SITE INFLUENCES Average Similar Similar Similar Similar Similar Similar ZIP CODE 95050 95050 95050 95051 95054 95054 95054
OVERALL LOCATIONAL RATING Similar Similar Similar Similar Similar Similar PtNSICAL ADJUSTMENTS
SITE SIZE (ACRES) 1.00 0.52 1.41 0.59 1.01 2.14 1.38
SITE SIZE (SF) 43,560 22,625 61,411 25,700 43,996 93,218 60,114 UTILITY ITOPOGRAPliY Rectanaular 11 Street F rant Mostl'J Rectanaular/2 F rontaaes Mostl'J Rectanaular/Deed Rest Rectanaular 12 Street Fronts Rectanaular I1 Street Front Mostl'J Rectanaular 13 Street Frants Rectanaular I1 Street F rant

USEIZONING ADJUSTMENTS
ZONING CC (Community Commercial) OG CT TN (Transit Neighborhood) TN (Transit Neighborhood) TN (Transit Neighborhood) GENERAL PLAN High Density Residential Community MiHed Use Community Commercial Community MiHed Use Transit Neighborhood Transit Neighborhood Transit Neighborhood ALLO\./ED DENSITY (dwelling units per acre) 37-50 NIA NIA 20-36 Minimum 100, Up to 350 du/ acre Minimum 100, Up to 350 du/ acre Minimum 100, Up to 350 du/ acre NUMBER OF UNITS 45 36 (Pro Rata) 119 59 303 371 235
ESTJ11A TED I PROPOSED DU/ACRE 450 63.3 84.4 1000 ,. 156.0 1?3.4 1?0.0 INTENDED USE Residential MiHed-Use Condos and Retail Affordable Housing Affordable Housing Residential Residential Residential AFFORDABLE HOUSING COMPONENT 10% or in-lieu 10% or in-lieu Yes/100% Yes/100% In-lieu Fee In-lieu Fee 10% or in-lieu ENTITLEMENT ST A TUS Has Zoning & GP Had Gener al Plan Needs Zoning and General Plan Had Gener al Plan Has Zoning & GP Has Zoning & GP Has Zoning & GP OVERALL PtNSICAL & USEIZONING RATING Sliahtl'J Suoerior Sliahtl'J Suoerior Sliahtl'J Suoerior Sliahtl"J Inferior Sliahtl'J Suoerior Sliahtl'J Inferior OVERALL RATING - SUBJECT SHOULD SELL FOR LESS LESS LESS MORE LESS Sliqhtl11 MORE Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 48 Adjustment Process

Comparable HD-1 was purchased as part of an assemblage—the buyer had recently purchased two adjacent properties. Similarly, Comparables HD-4, and HD-5 were also purchased as part of an assemblage. Based on the data, a downward adjustment is warranted for motivation on the part of the buyer due to the assemblage.

HD-6 is a current listing that has been on th e market for approximately 36 months and a downward adjustment is warranted for conditions of sale. The adjustment we used was a good fit for the data.

ComparablesHD-1, HD-3, HD-4, an d HD-5 required the demolition of existing improvements before their new, intended use could be realiz ed. We concluded this expense was offset by the interim income from the improvements. So, no additional adjustment was warranted for this element of comparison. Similarly Listing HD-6 w ill require the demolition of three industrial buildings which can be offset by the current rental income. Currently the buildings are reported to be leased at $2.00 sq.ft./month on a NNN basis. The leases give the owner a right for early termination. In 2001, solvent contamination in soil and ground water near a sump was reported within the former metal shavings storage enclos ure located on one of the parcels (2301 Calle De Luna). In September 2016, the property ow ner submitted a Voluntary Cleanup Program application and entered into a Voluntary Clea nup Agreement with the DEH for oversight of future property assessment activities and mitig ation activities, if required, to facilitate redevelopment of the property. The listing broker stated that the cu rrent cost to clean up the site is unknown. A downward adjustment is warranted for this risk of uncertainty. The adjustment we applied was a good fit for the data.

Comparable HD-2 is a closed transaction of an infill site improved with a vacant 30,000 square foot office building. This building will require demolition prior to redevelopment, estimated at $200,000, based on our observation and cost data. Th is element of comparison is shown as an upward adjustment on the Expenditures After Sale line.

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 49 relating to address (locational appeal, zip code ).Locational adjustments were warrantedfor the elements of comparison summarized on the grid.

Comparable HD-1 and HD-3 both had two street frontages, allowing for greater design flexibility, rating superior utility, and warranting downward adjustment.Comparables HD-4, HD- 5, and HD-6 are zoned Transit Neighborhood and have a minimum density of 100 dwelling units per acre. Comparable HD-3 will have 100% afford able housing and was given a 15% credit on the park fees. Comparable HD-4 has been given a credit of $1,290,000 for park fees in exchange for 14,000 square feet of dedicated park space a nd private amenities. The comparablesproposed building densities/acre bracket the subject; the highest densities warrant downward adjustment and the lower densities warrant an upward adjustment. Comparables HD-1 and HD-2 will require a zoning changeor general plan amendment to allo w for residential and an upward adjustment is warranted for this element of comparison. The comparables with approved entitlements rated superior to the subject’s unentitled status and are adjusted downward. Park impact fees varied somewhat based upon the use and timing of the fee.

Conclusion

Following adjustment for the elements summarized on the grid, we concluded to the overall ratings displayed at the bottom of the grid. The comparables were analyzed based on a price per square foot and a price per unit units of comp arison. The range of adjusted valuesis more consistent on a price/SF basis rather than a pri ce/density unit basis;therefore, the price/SF is utilized as the primary comparison of value. Br acketed by the comparable ratings, the following value of unentitled high-density 45 DU/Acreresidential land in the 95050 zip code is concluded:

Unit $/SF x Land Area (SF) = Indicated Value
$190 x 43,560 = $8,276,400

Estimated Market Value of a 1-Acre
High-Density Residential Lot in 95050 Zip Code: $8,276,400

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 50 Medium Density Land Value

For the medium-density value component, a dens ity of 30dwelling units per acre is assumed, slightly above the midpoint of the allowed range under the Medium Density General Plan designation, which allows 19-36 dwelling units per acre.In the market, the primary difference between the medium-density land value and hi gh-density land value relates to density. The density adjustment was estimated based on the re lationship between price per SF and density, as evidenced by the comparables. In the chart below, we plotted the preceding high-density comparablesthat were less than 90 DU/acre and th e very-low density comp arables used in the preceding low-density value scenario. We graphed the change in land value per square foot versus the change in density.

As stated in the preceding material, the data sh ows the price per square foot of land increases with increasing density, which is congruent with our observations in the market. The difference in pricing for changing densities is clear when comparing the lowest to the higher densities. The chart above indicates that at a density of about 30 dwelling units per acre, the indicated price per square foot is about $150, but is somewhat skewed by the cluster of low density sales.

Historically, there has been a 10% to 20% difference between the medium density residential and the preceding high density.Based on the comparab le data, with a density of 30 DU/acre for the medium-density land use, a unit value of$150/SF is concluded.

Conclusion

We concluded to the following medium-density value in the 95050-zip code for 1-acre of land:

Unit $/SF X Land Area (SF) = Indicated Value
$150 x 43,560 = $6,534,000

Estimated Market Value of a 1-Acre
Comparable Price per Square Foot vs. Proposed DU/A c
S240.00
s220 .00
$200.00
~ :S-----=t--:::::::=
t +-
- =i + t + +-
S180.00
$160.00
$140.00
+ t= = :i::::::t: +- .::--
=
-
f
+ t +-_;..---
E
-
~
-
+ - - -
f
+ + : E t= - =-
~
t= = . ~::::'.' ~ -. ,
5120.00 - - · - ~ t
= = -. -- ~
+-
t
$100.00
I
+ t +
t= •
580 .00
Propo se:d DweJ ling Unit s pr:r Acre
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 51 Medium -Density Residential Lot in 95050 Zip Code: $6,534,000

Commercial Land Value

Like the search for residential land sales data, we searched similar data sources and examined data that was discovered by talking to brokers, ag ents, property owners, a nd market participants from within the subject market. We searched for recent sales of competing retail and office properties throughout Sant a Clara and nearby cities. Thos e we found most comparable are displayed on the grid on afollowing page. A map showing the location of these comparables is displayed in the Addenda.

Frank S
Schmidt&
& Associate
es
Rea
al Estate App
Phon
praised: Thre
ne: 510-468
ee Hypothetic
8-9219
cal One-Acre

e Lots, One fo
or Each Zip C
fschm
Code, Santa Cl
midt@valu
lara, CA
uationconsu
ultant.net
5 52
cm,,t:MERCL-\L LA!."'ID ,COMPARABLE. SALES
ELEMENT OF ADJUSTMENT SUBJE,CT Compar:1ble C-1 Compar:1ble C-2 Compar:1ble C-3 Compar:1ble C-4 Comp:1r:1ble C-5 Compar:1ble C....(i ADDRESS Average Street 3375 El Camino Real 3318 El Camino Real 203 5 White Oak Lane 855 E Homestead Road 1220 Oakmea1i Pky 160 SM:a.fo:ga Aveni SanraC1.ia,ra Sanra G1.ia,ra Sanra C"hra Sanra C1.ia,ra Sunnyvale Sunnyvale Soora G"hra ,_ -APN 220-02-049 290-02--102 213-30-053 309-51-005 216-44-048 294-38,-(110 & 01'.

SELLER N01111a E Rioe, Trustee An SShin :&ordello family Trust Su.ndby Living Trust Prinret,on Ga!den Pmpcerfies: LLC 13omrera Trust 13UYER 33 5 Camino Ci:ty Sqoore LLC egimd USA LLC Shell Oil Products US T Invesfmenf:s LLC 13PR Properties UCSC LLC In Escrow SIi.LE PRICE I USTL 'G .PRICE ' 9,,925,000 '.ll5,,340,000 '.ll3,, 00,000 '.ll,6,,400,000 M,,450,,000 ,,000,000 ,- -PARCEL SIZE (Acres:) 1.00 1.630 0.S 7 0. 16 1.130 0.9' 0 1.210 PIUWEL SIZE (Sn 43,560 71,003 38,211 31,173 49,213 42,240 52,107 SALES PRICE/SQUARE FOOT $139 .. ,78 $13'9.75 $118.16i9 SIJo.m, $105.35 ..

DOCillvlENT NI.Th.ffiER 24595053 24569843 25575802 24998730 25091522 In Escrow EXPOSURE TilvfE 2 Months: Off:Markef (6 Months: in 2019) 103 Days: 2Month s 1 Month 500-+-Days:

TRA_NS.o\CTIONAL ADJUSTMENTS
REAL PROP. RIGHTS OON\IEYED Fee Simple F. Simple (Short-rerm Leas:es) F. Simple (Short-'rerm l.eaS"'...s) Fee Simple fee Simple f ee Simple Fee Simple ,_ -f'IN'ANC -GTER1 S'.ll All Cash A.1!1Cash A.1!l. Cash A.1!l. Cash Coovenfioml Convenb:000!1 OONDm o _ s OF SALE Arm'~Lengthllmproved lumi'~Lengthllmproved Motivaf:ed 13uyer Am1i'~Lengfhllmproved Arm'~Length/lmproved In Escrow ADJUSTMF.NT -15.0% -11.0% -10.0% 0.o<'/4 0.o<'/o
EXPENDfflJRES JI.ITE.R PURCR.A..SE - on-e one Noo-e Demoli:fion Offs,ef by Income Demoli:fion Offs,ef by Income - on-e ADJUS'T..MF.NT 0.0% 0.o<'/4 0.o<'/4 0.0% 0.o<'/o ,-
OONTR..A..CT DATE I MK.T CONDIDONS ,_ Dooember 31, 2023 July 2020 lTu.ne 2020 November 2023 :March 2021 August 2021 Deoember 2023 RECORDINU DA TE August 31, 2020 August 10, 2020 Deoember 15, 202.J Jun-e 1 , 2021 S.eprember OS, 2021 In Escrow MONTHS FROM END lQ-20 THROUGH 4Q-21 1 18 0 9 3 0
ADJUSIMEN I' ta). % PEil.1V:ONilI -0. 5% -12. 5% -13.50% 0.00% --6. ] 5% -2.25% MONTHS FROM START lQ-2022 THROUGH 4Q-2022 12 12 0 12 12 0 ADJUSIME.'.N T @ % PER 1V:ONilI .. 0.00% .. 0.00% .. 0.Oo<'/4 ,- 0.00% " 0.Oo<'/4 .. 0.00% ..

MONTHS fRO M START Ql-2023 THROUGH 4Q-2023 12 12 0 12 12 0 ADJUSIM'Elii T @ % PER rtt:ONilI 0.00% 0.00% 0.00% 0.00% 0.Oo<'/4 0.00% AD.1 PRICE/SF WITH TRANS. ADJ .. , 8103.67 Slo-7.,59 Sl,1}6,82, Sl21.24 SIO'l-.98

LOCATIONAL ADJUSTMENTS
EXPOSURE Average SuperiorlCorner Simihr Superior Simi.hr Simihr Simih r l,.PPEALISITE INilUENCESIACCESS Average Simib- Simib- S,imib- Simib- Simib- Simib- ZIPOODE 95050 95051 95051 95051 94087 94085 95051
LOCATIONAL COMPARISON Superior Simi.hr Suµ-erior Simi.IM Simi.hr Simib- PHYSIC.o\L & USEJZONING ADJUSTMENTS
PARCEL SIZE (Acre~) 1.000 1.630 0.871 0.716 1.130 0.9"70 1.210 UTil.ITY Average Simih r Simihr Similar Similar Simim Similar OIT-SITE II'vlPR:OVEMENTS Finish-ed Lot Simib- Simib- Simiw Similar Simiw Simiw eighborhood C--ommercial I
ZONING/GENER.AL PLAN CT I Regi.Oftal Gommcercial CT I Community IvfrredLU.re CT I Community Ivfued-Use Neighborhood C--ommercial OJPD I Commcercial _ AS / Indu~trial OG I Commu.nity Mixe PROPOSED USE.(S) C--ommcerci>al Re rail in Near-Term Rerail in Near-Term Gil,m:in:e; Srafions Office or Presclrnol Ho!iel Not Dis.clo-.sied PHYSIC.o\L & USEl1iONING OOMPARISON Superior S1 Superior Superior Superior Superior SlSuperior SUBJE,CT SHOULD SELL FOR: Less SI Less Less Less Less SI Less Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 53 Adjustment Process

The adjustment methodologywas similar as above for the residential land sales.

Transactional adjustments were warranted.As described above, due to a lack of commercial land sales, some improved sales were utilized for which the improvement s contributed little to the overall selling price. Comparables C-1, C-2, C-4, andC-5 were improved at the time of sale.

ComparableC-1 was marketed as a development s ite; the eventual buyer planned to continue the retail uses. Based on a discussi on with the listing broker, our observations, and the age and condition of these improvements, which compri sed about 25,150 SF,the contributory value was estimated at about $60 per square foot of building area, or about 15% of the selling price as shown on the adjustment grid. This is shown as a conditions of sale downward adjustment.

Similarly, the sale of Comparab le C-2 included about 7,800 square feet of improvements dating from the late 1950s;which contributed to the overall selling prices. Based on our observations and discussions with the broker, the contributor y value for the buildingwas estimated at about $75 per square foot of buildi ng area, or about 11% of the selling price as shown on the adjustment grid. This is shown as a conditions of sale downward adjustment.

Comparable C-3 was previously improved with an older retail center that was completely destroyed by fire prior to the listing. The 0.716 acr e site was reported to be vacantat the time of sale with only old asphalt paving remaining. Th e buyer will reportedly de velop the property and install charging stations.

Comparable C-4 included a 6,295 sq uare foot restaurant building originally constructed in 1972.

This site was being sold for land value and the restaurant was leas ed month-to-month. We concluded that the cost of demolition would be offset by rental income.

Comparable C-5included a 5,515 squa re foot restaurant building. The building was vacant at the time of sale, but could have been leased on a mo nth-to-month basis. We concluded that the cost of demolition would be offset by rental income.

Comparable C-6 at 160 Saratoga Avenue in Santa Clara is in escrow and was previously improved with a 15,814 sq.ft. office building that was completely destroyed by fire prior to the listing. The 1.21 acre site is curren tly reported to be vacant. This property was reportedly listed at $7,000,000 ($132.81/sq.ft. of land area unadjusted) and went into escrow in December of 2023 at an undisclosed price.

Market conditions adjustments were applied fr om the contract date through the date of opinionusing the degree of adjustment(s) discussed in the Market Conditions section.

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 54 Locational adjustments were broken into elements that reflect the hypothetical property’s identity to potential tenants, buyers, or occupants (exposure, vi sibility), access (to freeways and amenities), and overall desirability of the location based on neighborhood factors such as age and condition of nearby properties, proximity to enhanci ng or detrimental factors, or an identifiable valuation element relating to address (locational appeal). Locational adjustments were warranted as summarized on the grid.

Physical and Use/Zoning adjustments were consideredfor size, utility, off-site improvements, zoning/General Plan, and planning /entitlement status. Within the range of the comparables, largerComparablesC-1 warrantedan upward adjustment per square foot.Among the differences in land use ordinances, those of ComparablesC-1 and C-2 were more favorab le, rating superior and warranted a downward adjustment.

Conclusion

Bracketed by the comparables, weconcluded to the following for commercial land in zip code 95050:

Unit $/SF x Land Area (SF) = Indicated Value
$95 43,560 $4,138,000

Estimated Market Value of a 1-Acre
Commercial Lot in Zip Code 95050: $4,138,000

Industrial Land Value

We searched the same databases listed above a nd reviewed other data discovered by talking to brokers, agents, property owners, a nd market participants from w ithin the industrial market. We searched for recent sales of competingindustr ial properties throughout Santa Clara and nearby cities with similar industrial markets. We also searched for recent improved sales with improvements that were nearing the end of their economic lives or that c ontributed little to the overall sale price. Those we found most comparable are displa yed on the following grid. A map showing the location of these comparables is displayed in the Addenda.

Frank SSchmidt&
& Associate
es
Rea
al Estate App
Phon
praised: Thre
ne: 510-468
ee Hypothetic
8-9219
cal One-Acre

e Lots, One fo
or Each Zip C
fschm
Code, Santa Cl
midt@valu
lara, CA
uationconsu
ultant.net
5 55

INDUSTRIAL LAND COMPARABLE SAHS
ILIMI:NT OF ADJUSIMINI SUBJECT COMPAR...IBLE 1-1 COMPARABLE 1-2 COMP.>\R...IBLE 1-3 COl.fi>ARABLE 1-4 CO!.,!IPARABLE I-S ADDRE88 Average Street 2225 Illwt.rn Ave 2 5 1.1:i.tt:i.n Ave 535 &. 5 5 L:i.d~trial Ave 365 Reoo St Doyle Roa &. Lawrence Expre;5;way &Jnt.a CLara &Jnt.a Clara &Jnt.aCLar.a 83n fose &Jnt.a Clar.a 83n Jose ,_ - AP N 22 - 0 -119 224--10-11 5 23 7-30-020 & 025 230-4 -105 33 1-19 -0lS SELLER Pmj:ect 3 3 LLC LVP 11..'w t:i.n Ave A ;.c;oc LL.C Frank J. & Le;:lie A. M.1.11gi.one Ree.G Stfeet Asc;ociate. Vop Ref Doyle LLC BUYER. 2225 Illw t:i.n Propei-ty LLC 2 7S Ma:rt:i.n Pfopei- ty LLC L-BA RVI Company XLIV LLC Pnl;;pemu;-. Corgi Holdi.ny.. 1 LLC Ha:rker School SALE! PRICE! S23,250 ,0{t0 3 ,,90-0,,00-0 12,.300,000 S5 ,3 5 S ,,000 5,100 ,00{1 DOCUMENT NID.'ffiER. 25 19536 1 2 50204 1 2 90232.3 2472 1353 2.55 77 BONDS ASSUMED I SF S0,00 S0,00 S0,00 S0,00 00,00
TOTAL COST TO BUYER I SF $15'7.,03, $18:9 .. 94- $81.17 $104 .. 7•0 $114.38

TRANSACITONAL ADJUSTMINTS
RE.,,U, PROPER.TI:- RIGHTS CONVE!"r'"ED Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple -.4DJVSTME,~1T 0 ,00% 0 ,00% 0 ,00% 0 ,00%, 0 ,00% FINANCIN G TERMS Convention.al AllCaclt Convention.al All Caclt All Ca-ili .4D.JllSTMEN T 0 ,00% 0,(10% 0,00% 0 ,00% 0 ,00%
COND m ONS OF SALE! Amt's-Leng th .ium's-Length Amt's-Leng th Amt's-Length .ium's-Length .W.JllSTMEN T 0 ,00'% 0 ,00% 0 ,00% 0 ,00¼ 0 ,00%
ADDmONAL COSTS TO BUYER. Demoli tion Offu,t Demoli tion Offret Demolition Offset None None .4D.Jl]STMEN T 0.00% 0 ,00% 0 .00% 0 ,00% 0 ,00%
CONTRIBUTOR Y .,U,UE! OF IMPROVEMENT S None None None y ·2 ,.14-5 SF None .4D.JllSTilofEN T 0.00'% 0 ,00¼ 0 .00'% -2 .53% 0 ,00'% CLOSE! OF ESCROW 5 l7 l 4/2020 1 ')1'.)fln_,023 ,_ - P' TIME OF S.,U,E! I M.t\RKET COND m ON Deoem!)er 3 1,, 2023 ND fane :2021 Septem!)er 2020 Septem!)er 2020 Unkno wn ,_ P'
MO'S FROM SALE THROUGH Dec , 3 1,, 2020 0 0 3 3 0
.4D.JllSTMEJVT@ ·% PER MOl'tll'H " 0 , 5% " 0.00%, r 0 ,00% " 2 .25% r 2.25% P' 0 ,00%, MONTiiS FROM START l Q -2021 THROUGH 4-Q-2021 0 ,6 12 12 P'
0 .. 0 ,00% "' - 0.00'% r
- 0 ,00% "' - 0 .00% P' - 0 ,00°/4 P'
-.W.JllSTME,VT@ % PER MOl\'l'll 0 ,00%
MONTiiS FROM START l Q -2022 THROUGH 4-Q-2022 2 2 12 2 .. 0 .4D.Jl.lSTME,\1T@ % PER MOl\'l'll " 0 ,00% " 0.00'% r 0 ,00% " 0.000/2 r 0 ,00% P' 0 ,000/2 MONTiiS FROM START Q l -2023 THROUGH 4-Q-2023 12 12 12 12 0 .W.Jl.lST'itJENT@ % PER MOi\'l'll 0 ,0 011/o r 0.00°/2 0 ,001. 0 .00% 0 ,00% 0 ,00% ADJUSTID PIUOE I SF $15"7 .. 03, $18:9 .. 94- $83.00 $8'.2.94 $114.38

LOCATIONAL ADJUSTMINTS
ELWC>SlJREIVISIB,ILITY Average S:imi.la:r Simi.la:r S11p/Fwy S:imila:r Simi.la:r ACCE!SS Average S:imila:r Simi.la:r Simi.la:r S:imi.la:r Simi.la:r NEIGHBORHOOD APPEAL Average S:imila:r S:imila:r Inferim S:imi.la:r fuferim ZIPCODE! 950 50 950 50 950 50 95 112 950 50 9 5H 9
OVERALL LOCATIONAL RATING Simi.la:r Simi.la:r fuferim Sw1i.la:r fuferim PHYSICAL & USE/ZONING ADJUSThII:NIS
PARCEL SIZE (ACRES) 1,00 4 .13 l .<63 3.,62 1,17 1,02
P.~CE!L SIZE (SF) 3 ,,5 6{1 9 ,903 73 ,131 15 ,63 7 5 ,, 44,,590 UTILITY Average Simila:r Simila:r Simila:r S:imi.la:r S:imi.la:r OFF-SITES F:i.niclied L-.ot S:imi.1a:r Simi1a:r Simila:r S:imi.la:r Simi1a:r ,_ - INTE!NDE!D USE! L:i.c.u:c;trial Llc.u;-;.trial Inc!u;-;.tri.tl Llc!u;;tri.tl Pa:rk:i.ng ~ m School ehi.cles ,_ -ZONING Hea,,y lnG~tfial Ligh t L:i.d~trial Ligh t fudu;..:trial Heavy fuc.'ustri.al Light fu1fac;t rial Ligh t lru£11strial GENERAL PLAN Ligh t fuc.'ustrial L-.o,v L:i.tensity Office/R &D Low futens:i.ty Office/R.&.D Heavy fuc.'u,trial Light lru!:ll8trial Light fuc!u;-;.trial OVERALL PHYSICAL & USE/ZONING RATING S:imi.la:r Si;-perim L:i.ferim fuferim L:i.ferim OVIRALL RATING-SUBJI!CT SHOULD SILL FOR SllfilAR LESS MORE MORE MORE Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 56 Adjustment Process

Adjustments were considered for and applied in a similar manner as above for the commercial sales.Because there are few industrial land sales in this market, we used one sale that was improved with a building that contributed value to th e selling price:ComparableI-4. To estimate the residual land value of these transactions, we estimated and deducted the contributory value of the building improvements based on our observations, feedback from the verifying broker(s), and the adjustment that was a good fit for the data. Additionally, most of the recent industrial land transactions we uncovered were intended for data center (see Industrial Land Comparables I-1 and I-2). A transaction at 2315 Mission College B oulevard in Santa Clara (not included in the sales grid) is also a data center land sale th at was reported to have been purchased by Amazon Data Services Inc. The 7.04 acre site reportedly sold for $51,817,500 or $168.97sq.ft. of land area (unadjusted), which is high and out of the pattern. This sale could not be fully confirmed but was reported to have closed escrow on January 4, 2022.

Market conditions adjustments were applied at th e rate concluded to in the Market Conditions section.Like the commercial sales grid, locationa l adjustments were considered for exposure, visibility, access (to freeways and amenities), and overall desirability of the location, including zip code.Sale I-3 was adjusted downward for its inferior San Jose location. Locational adjustments are warranted as summarized on the grid.

Physical and use/zoning adjustments were cons idered for size, utility, intended use, zoning, general plan land use designation, and off-site improvements. Both I-1 and I-2 were purchased by Prime Data Centers. For I-1 the buyer plans to develop a 207,000 square foot data center with a 32MW capacity.For I-2 the buyer plans to devel op a three story 80,000 square foot data center with a reported 9MW capacity. The selling agent re ported that the property sold entitled and has a “will serve letter’ from Silicon Valley Power. These sales were adjusted downward for the entitlements. Any other warranted adjustments are summarized on the grid.

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 57 Conclusion

Following the adjustments discussed above and considering the overall rating comparison for each comparable, the unit values of the most recent comparablessuggested a land value in the $130 per square foot range.

We concluded to the following for industrial land in the 95050 zip code:

Unit $/SF x Land Area (SF) = Indicated Value
$130 43,560 $5,662,800

Estimated Market Value of a 1-Acre
Industrial Lot in Zip Code 95050: $5,662,800

Average Value Estimate in 95050 Zip Code

The average value was estimated by applying a we ighted average based on the land area of the total sales in Santa Clara in 2023 by property type. The information was obtained from Old Republic Title Company (ORTC). It was an extraordinary assumpti on of this appraisal that the land areas provided by Old Republic Title Company were accurate.

ORTCreported a total of 686sale transactions in the city of Santa Clara in the calendar year 2023.

The 2023 salesincluded 24 commercial sales, 15 industrial sales, 386 residential single-family sales, 25 2-4 residential unit sales, 5 vacant sa les, and 231medium to high-density residential sales which comprised residential unit sales greater than 5 units, condominiums, and townhomes.

The 2023 sales volume shows a decline when compar ed to the1,064 total sa le transactions in 2022 and the 1,442total sale transactions in 2021.

Residential transactions included single famil y, townhomes, and condominiums, 2 to 4 unit, and residential units greater than 5 units. Historically, the total residential sales component comprised the majority of the land area sold. However, as shown in the next table thecommercial and industrial sales increased comprisingabout half of the total land area sold in the city in 2023. This is due primarily to the purch ase of the former Owens Corn ing factory by Amazon. This improved property at 960 Central Expressway is a 41.9 acre industrial complex that was used for more than 70 years by the maker of fibergla ss insulation and roofing products.The median residential selling price in 2023 in the city of Santa Clara was genera lly increasing throughout the first half of 2023 and generally trending downwar ds in the last half of 2023. This resulted in slightly higher residential unit values for 2023.Industrial and commercial land values were unchanged in both 2022 and 2023. In 2023, the combination of higher interest rates and expected slower economic growth has impacted the market . All these factors resu lted in only slight Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 58 changes to the 2023 values for the hypothetical one-acre lots for each zip code compared to 2022.This is congruent with overall market trends over the last year.

The total number of land square feet (SF) sale s (broken out by property t ype) is reflected in the next table:

Old Republic Title Company provided the data depicted in the preceding 2023 City of Santa Clara Sales table, segregated by property type. The single-family sales were grouped into very low density, 2-4 residential sales were gr ouped into low-density, the townhome and condominium data were grouped into the medium to high-density residential, retail and office was grouped into commercial, and industrial, R&D, and manufacturing was designated industrial.As shown in the table, within the city limits of Santa Clara, commercial/industrial sales accounted for about 50.04% of th e total while reside ntial sales accounted for about 49.96% of the total.

Conclusion

The Total Percent in the previ ous table was applied to the appropriate categories for each property type. Since the data pr ovided by the title company did not segregate medium and high- density residential, we split the total percenta ge evenly between the two densities (9.97% /2 =

4.985% to each). As shown in the next table, the appropriate weighted values are summed to produce the average valueof a hypothetical 1-acre lot in the 95050 zip code:
2023 City of Santa Clara Sales
Sale Type Land SF Total Percent
Co=ei-ciaJ 1,032,134 13.93%
Industrial 2,676,581 36.11%
Very l.ow Density Residential 2,778,344 37.48%
l.ow Density Residential 186,37 1 2.51%
Medium to High Density Residential 738,928 9.97%
Total 7,412,358 100.00%
Somce: Old Republic Title Company
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 59

Average Value of a Hypothetical 1-Acre
Lot in the 95050 Zip Code: $5,455,000 (Rounded)

AVERAGE VALUE ESTIMATE IN 95051 ZIP CODE

We estimated the value of 1 acre of land fo r zip code 95050 above. Following we apply any differences in value between the 95051and 95050 zip codes to estimate the average value of one acre of land in 95051.

Estimating Differences Between Zip Codes

Differences between the 95050 and 95051 zip code for each use was based upon market feedback and anecdotal informa tion. We also considered differe nces in values/rents for the commercial and industrial uses, a nd comparedmedian selling prices and rents for the residential uses.

Residential Difference

Market participants and selli ng prices provided support that re sidential prices in the 95051 zip code are generally highercompared to the 95050 zip code. Some brokers believed that the 95050 area was slightly better due to Santa Clara Univ ersity and a larger upper-middle class. Others pointed to the fact that the 95051 includes an area of the city close to Apple’s headquarters and also within the Cupertino Uni on School District, a higher rated school district, which commands residential price premiums. Several brokers reported that some of the nicest neighborhoods in the City are in and around San Tomas Expressw ay, which bisects 95050 and 95051.One market participant opined that the neighborhoods in 95051 were generally safer a nd that insurance premiums were lower rendering 95051 to be more desirable. Recent residential yearly- summarymedian prices/SFand Year End 2023median prices/SFbetween the 95050 and 95051 zip codes, as reported by DQ News /CoreLogic and MLS Listings, indicated the following:

20:23 VALOIS FOR 95050 ZIP CODE SUM:U\RY
Land Use Pti ce pet· SF Pti ce pet· Acrn x Weighted Average = Weighted Value Very Low Densit y Residential $120.00 $5,227,200 X 37.48% = $1,959,155 Low Densit y Residentfal $125.00 $5,445,000 X 2.51% = $H6, 670 I l\.l ediwn Densit y Residential $150.00 $6,534,000 X 4.985% = $325,720 High Densit y Residential $190.00 $8,276,400 X 4.985% = $4 12,579 Commet·cial $95.00 $4,138,200 X 13.93% = $576,45 1
Industtial $130.00 $5,662,800 X 36.11% = .$2,044,837
TOTAL AVERAGE VALlJE PER ACRI $.5.455.412
Real

Fran

The ch
95051
opinio

In th
e
been h
about
sales t
new c
produ
marke

l Estate App
k Schmidt
hart above in
1, corrobora t
ons of marke
e next table,
higher than
10% higher
transaction,
construction.
uct in-house
eting control
raised: Three
& Associa
ndicates that
ting the ge n
et participant
based on da
zip code 95
r than 9505 0
MLS only r
This is bec
without usin
l to the build
e Hypothetica
ates Phon
t the median
neral conse n
ts that 95050
ata reported
050. In the

0.However, u
reports listin
ause builder
ng MLS, w h
der.
al One-Acre L

ne: 510-468-9
n selling pric
nsus among m
0 rates inferi
by the MLS
most recent
unlike DQ N
ngs marketed
rs, in the cu r
hich is pro b
Lots, One for
9219 fschm i
ce/SFhas hist
market part i
ior to 95051
S the median
year the 2 0
News/CoreL
d on MLS, w
rrent market
bably more c
Each Zip Co
idt@valuatio
torically bee
icipants. T h
.
n price in 9 5
023 median p
Logic which
which often
t environmen
cost effectiv
ode, Santa Cla
onconsultant.
en higher in z
his data sup p
5051 has hist
price for 95 0
reports all r
does not in c
nt, oftenmark
ve and garn e
ara, CA
.net 60

zip code
ports the
torically
051 was
recorded
clude all
ket their
ers more
Sl ,200
Sl ,000
saoo
S6oo
S4oo
s200
so
2019 20 20
■ 95 0 5 0
202 1
■ 95 0 5 1
2022
950 54
202 3
Real

Fran
Based
by his
were 1

Comm

We di
along
the p
r
asking
$3.14/
proper
rents f
in 95 0
vacan
inferio

Indus

Amon
R&D
Furth
e
Lawre
proper
compa
rental
about
consid
of the
compa

l Estate App
k Schmidt
d on market
storic DQ N

10.0% highe
mercial Diff
iscovered tha
El Camino R
rimary com m
g rents fo r
/SF/Month i
rties was $ 4
for office on
051.Based o
ncy rate di ff
orto 95050.
strial Differ
ng industrial
and higher
ermore, ab o
ence Expre s
rties, and p
arison of th e
rates were
equal and r
deration for
e market, w e
ared to 9505
raised: Three
& Associa
feedback,his
News/CoreLo
er than zip co
ference
at commerci
Real and Ste
mercial cor r
r retail be t
in 95051. C

4.44/SF/Mon
nly between t
on market d a
fferences w e
ence
properties,
intensity o f
out65 acres o
ssway, are c
pushing inc r
e average r e
equal in 9 5
elatively un
differences
e concluded

50. e Hypothetica
ates Phon
storical norm
ogic data, w
ode 95050.
ial land valu
evens Creek
ridors in S a
tween thes
CoStar repo r
nth in 9505 0
these zip cod
ata, rental r
e conclude d
much of the
ffice uses, a
of industrial
converting t
reasing de m
ental rate p e
5051 during
changed in 2
in asking r e
that industr
al One-Acre L

ne: 510-468-9

ms, and giv i
we concluded
ues are gener
Blvd. within
anta Clara.
e zip cod e
rted that th e
0 vs. $3.87/ S
des were $4
rates differe n
d that com m
e product in
and greater
lands in t h
to residenti a
mand and v
er SF, as co m
2022 ($2.3 3
2023 ($2.27
ents, historic
rial land pri c
Lots, One for
9219 fschm i
ing more w e
d 2023 resi d
rally similar
n the 95050
CoStar rep o
es were $
e 4Q 2023 a
SF/Month i n
.75/SF/Mon
nces, histor i
mercial lan d
the 95051 z
floor area r a
he 95051 z i
al uses, re d
value for i n
mpiled by C
3/SF in 95 0
7/SF in 9505
c selling pri c
ces rated a b
Each Zip Co
idt@valuatio
eight to the M
dential prices
amongcomm
and 95051 z
orted that t h

2.43/SF/Mo
average as k
n 95051. T h
nth in 95050
ic selling p r
d values i n
ip code is bu
atios, ratin g
ip code, ar o
ducing the s
ndustrial at
CoStar, show
050 vs. $2.3
0 vs. $2.31/
ce difference
bout equal i n
ode, Santa Cla
onconsultant.

MLS data,su
s in zip co d
mercial uses
zip codes, w
he 4Q 202 3
nth in 95 0
king rents f o
he 4Q 2022
vs. $4.08/SF
rice differen c
n 95051 rat
uilt as, or al
g superior t o
ound Kifer
supply of i n
the same t
wed that the
3/SF in 95 0
/SF in 95051
es, and the o
n the95051 z
ara, CA
.net 61

upported
de 95051
s located
which are
3average
050 vs.
or office
average
F/Month
ces, and
ed 15%
lows for
o 95050.

Rd and
ndustrial
time. A
average
051) and
1). After
opinions
zip code
Median Sales Ptioe . . % Change pet· % Change pet· Housing Type Zip Code 21>-21 2°022 21123 Month Last l2 Month Last 2-Yearn SFR, Con do, & 95050 Sl,350,000 Sl, 2,500 St , 72,SOO 0.00% 0.38% To,,rnho u se 95051 Sl,550,000 St,650,000 St,.600,000 -02 5% 0.13% 95054 Sl,290,000 St,278,044 St ,377)00 0 .. 65% 0.18%
Sout·oe : Loc-.a.l MLS
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 62 Conclusion of Value in 95051 Zip Code

Based on the above, we concluded residential uses in zip code 95051 rated 10.0% superior, while commercial values rated 15% inferior, and industrial values rated similar. In the next table, the adjusted price per acre for each land use in th e 95051 zip code was adjusted and the appropriate weighted values are summed to produce the average value of a hypotheti cal 1-acre lot in the 95051 zip code:

Average Value of Hypothetical 1-Acre
Lotin the 95051 Zip Code: $5,650,000 (Rounded)

AVERAGE VALUE ESTIMATE IN 95054 ZIP CODE

We utilize the same weighted land values from zip code 95050 and apply any differences in value between the 95054 and 95050 zip codes.

Estimating Differences Between Zip Codes

For 95054 value conclusions, we applied the same methodology used above to estimate the value differences between the 95050 and 95051 zip codes.

Residential Difference

Median and average selling pric es provided support that the re sidential pricesin the 95054 zip code were generally sim ilaror a little inferior when comp ared to the 95050 zip code. Brokers active in the market reported a range of opinions, that generally these two zip codes are not much different, but that 95054 te nds to rate a litt le inferior. The 95054 zip code is affected by airport noise and has a higher concentration of higher-density housing units; there is less detached 95051 ZIP CODE LAND USE VALUES & AVERA.GE 2023 VA.LUE PER ACRE Land Us.e 95050 Anra:ge Adjustment 95051 Average
I = Price h\cre Weighted Fa,ctor Price per Acre
Very Low Densit y Residenrial $1,959, 155 I 110_0% = $2,155,071 Lo,w Density Residential $136,670 I 110_0% = $150,337
l\,ledi wu Densit y Residential $325,720 I 110_0% = $358,29'2 High Density Residential $412,579 I 110_0% = $453,837
Commerci al $576,45 1 I 85_0% = $489,983
fudu.snial $2,044,837 I 100_0% = $2,044,837
TOTAL AVERA.GE VALUE PER ACRE '$5.~652 ,.3,57
Real

Fran
single
units.
by DQ

The m
News/
2019
differe
suppo

The n

l Estate App
k Schmidt
e-family sele
Recent year
Q News /Cor
median sellin
/CoreLogic
and about 2
ence was a b
orts the opini
ext table is t
raised: Three
& Associa
ection and t h
rly-summary
reLogic and
ng prices/SFh
data indica t
.1% lower i
bout 15% lo
ions of mark
the same ML
e Hypothetica
ates Phon
herefore few
y median p r
MLS Listin
has been his
ted that the
in 2020. In 2
ower. In 20 2
ket participan
LS data displ
al One-Acre L

ne: 510-468-9
wer traditio n
rices/SFfor th
gs, indicated
storically hig
aggregate m
2021 the di f
23 the 9505 4
nts that 9505
layed above
Lots, One for
9219 fschm i
nal residentia
he 95050 a n
d the followi
gher in the 9
median pric
fference was
4 zip code w
54 generally
in the previ
Each Zip Co
idt@valuatio
al neighborh
nd 95054 zi p
ing:
95050 zip co
e in 95054
s about 2.7 %
was about 7
rates inferio
ous section.
ode, Santa Cla
onconsultant.
hoods with d
p codes, as r
ode. The hist
was 5.0% l
% lower. In 2
7% lower. T
or to 95050.

ara, CA
.net 63
detached
reported

toric DQ
lower in
2022 the
This data
$1,200
$1,000
$800
$600
$400
$200
$0
20 19 2020
■ 9 5 0 5 0
202 1
■ 9 5 0 5 1
2022
9 50 54
2023
Real

Fran

Based
weigh
new a
95054

Comm

Most
hotel
Clara.
higher
additio
Conve
Class
sever
a
custom

A co m
reveal
$4.53/
averag
$4.75/
only b
The 9
rental
code,
conclu
value.

Indus

Amon
R&D
area
r
l Estate App
k Schmidt
d on market
ht to the his t
and resale r e
4 werehistori
mercial Diff
of the new
uses, howe v
. This area o
r intensity u
on of Levi’
ention Cent e
A office is
al mixed-use
mers.
mparison o f
led that the a
/SFin 9505 0
ge rents fo r
/SF in 9505
between thes
5050 rental
rates. Based
and conside
uded that a
.
strial Differ
ng industrial
and higher i
ratios in 95 0
raised: Three
& Associa
data, histo r
torical norm
esidential c o
ically lower
ference
commercial
ver, there a
of Silicon V
uses and pr o
s Stadium a
er create ad d
located wi t
e projects in
f the histo r
average rent
0, a differe n
r office on l

0. This patt
se zip code s
rate is influe
d on the dat a
ering that the
downwarda
ence
properties,
intensity off
054. Most m
e Hypothetica
ates Phon
rical norms,
s, supported
onstruction),
than zip cod
planned or
are several m
Valley includ
operties of fe
and the dra w
ditional sy n
thin this zip
process, wh
ric 3-year a
ts between th
nce of abo u
ly between
ern was rep
s being abo u
enced by new
a, including
ere is a great
adjustment o
much of the
fice uses, rati
market partici
al One-Acre L

ne: 510-468-9
the opinio n
d by historic
we conclu d
de95050, on
proposed fo
mixed-use p
des the Gol d
fering freew
w of Great
nergies for t h
code and m
hich if built-
average re n
hese zip cod
ut 4.4% base
these zip c
eated in th e
ut 8% lower
wer retail co
broker estim
ter proportio
of 10% wa s
e product in
ing superior
ipants report
Lots, One for
9219 fschm i
ns of marke
DQ News/C
ded that res i
the order of
or the 9505 4
projects in p
den Triangle
ay visibilit y
America t h
his zip cod e
more is pla n
out, will add
ntal rate (2 0
des was sligh
ed on offic e
codes were
e 4Q 2023 w
in 95054, $
nstructionwh
mates and re
on of office u
s warranted
the 95054 z
r to 95050. T
ted higher p
Each Zip Co
idt@valuatio
t participan t
CoreLogic d
idential lan d
f 5%.
4 zip code c
process, no t
e and has h i
y (U.S. 101
heme park a
e. The great e
nned. As no t
d both retail
018-2020)co
htly lower in
e and retail
lower in 9
with the ave r
$4.13/SF vs.
hich typicall
ental rate dif
uses compar
for 95054 fo
ip code is bu
This also allo
prices in 95 0
ode, Santa Cla
onconsultant.
ts, and givi n
data (which
d prices in z
comprises of
tably Relat e
istorically su
and CA-2 3
and the San
est concent r
ted above, t
and new res
ompiled by
95054, $4.3
uses.The 4
5054, $4.2 5
rage rents f o
$4.44/SF in
ly command
fferences in
red to retail u
for commer c
uilt as, or al
ows for grea
054 due pri m
ara, CA
.net 64

ng more
includes
zip code
ffice and
ed Santa
upported
37). The
ta Clara
ration of
there are
sidential
CoStar,
33/SFvs.
4Q 2022
5/SF vs.
or office
n 95050.
ds higher
each zip
uses, we
cial land
lows for
ater floor
marily to
Median Sales Ptioe . . % Change pet· % Change pet· Housing Type Zip Code 21>-21 2°022 21123 Month Last l2 Month Last 2-Yearn SFR, Con do, & 95050 Sl,350,000 Sl, 2,500 St , 72,SOO 0.00% 0.38% To,,rnho u se 95051 Sl,550,000 St,650,000 St,.600,000 -02 5% 0.13% 95054 Sl,290,000 St,278,044 St ,377)00 0 .. 65% 0.18%
Sout·oe : Loc-.a.l MLS
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 65 superior freeway access and fewer heavy-industrial uses. A comparison of the average rental rate per SF, as compiled by CoStar, showed that the average rental rates were equal in 95054 during 2022 ($2.33/SF in 95050vs. $2.33/SF in 95054) and only slightly different in 2023($2.27/SF in 95050 vs. $2.19/SF in 95054). After consideration for di fferences in asking rents, historic selling price differences, and the opinions of the market, we concluded that indust rial land prices rated about equal to the 95054 zip code compared to 95050.

Conclusion of Value in 95054 Zip Code

Based on the above data and analysis, the adjust ed price per acre for each land use in the 95054 zip code was adjusted and the appropriate weig hted values are summed to produce the average value of a hypothetical 1-acre lot in the 95054 zip code:

Average Value of a Hypothetical 1-Acre
Lotin the 95054 Zip Code: $5,255,000 (Rounded)

RECONCILIATION AND OPINION OF AVERAGE VALUES

The sales comparison approach was the appropriate value approach for each land use. Total sales statistics in 2023 revealed that about 50.04% of the total sales in the city by land area were commercial and industrial transactions and the ot her 49.96% were residential. This represents a greater percentage of commercial and industrial transactions by land area than in prior years.

Data provided by Old Republic Title Company shows only 386 single family home sales in 2023 compared to 516 single family home sales in 2022. However, the median residential selling price in 2023 in the city of Santa Cl ara was generally increasing thr oughout the first ha lf of 2023 and generally trending downwards in the last half of 2023. This resulted in slightly higher residential unit values for 2023.Industrial and commercial land values were unchanged in both 2022 and 2023. In 2023, the combination of higher interest rates and expected slower economic growth has 95054 Z1P CODE LAND USE VALUES & AVER.\GE 2'023, VALUE PER ACRE Land Use 95050 Average Adjustment 95054 Average ][ =
Price/Acre Weighted Factor Price pe.r Acre
Ve.tJ' Lo,w Density Residential $1,959,155 ][ 95.0% = $1,861,197 Lo,w Densit) Residential $136,670 ][ 95.0% = $129,837
High Densi tJ• Res idential $325,720 ][ 95.0% = $309,434 l1"1edlium Dens.icy Residential $4 12,579 ][ 95.0% = $391,950 Comme.rdal $.576,451 ][ 90.0% = $.5 18,806
Indus trial $2,044,837 ][ 100.0% = $2,044,837
TOTAL AVERAGE VALUE PER ACRE '$5,2 56~&6I
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 66 impacted the market. All these factors resulted in only slight changes to the 2023 values for the hypothetical one-acre lots for each zip code compared to 2022.

We concluded to the following average value for each zip code on December 31, 2023, the effective date of value opinion:

Opinion of Average Value of a 1-Acre
Lot in the 95050 Zip Code: $5,455,000 (Rounded)

(Five Million FourHundredFifty FiveThousand Dollars)

Opinion of Average Value of a 1-Acre
Lot in the 95051 Zip Code: $5,650,000 (Rounded)

(Five Million Six Hundred Fifty Thousand Dollars)

Opinion of Average Value of a1-Acre
Lot in the 95054 Zip Code: $5,255,000 (Rounded)

(FiveMillion Two Hundred Fifty FiveThousand Dollars)

ADDENDA

 Old Republic Title Company 2022 Sales data in City of Santa Clara (on file)  City of Santa Clara Supplemental Instructions for the Appraisal of the Fair Market Value of Land
 Maps of the Sale Comparables
 Land Sale Comparable Parcel Maps
 Brokerage Reports (on file)
 Qualifications of Appraiser

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 67

Attachment A
Supplemental Instructions
for the Appraisal of the Fair Market Value of Land
The following information and instructions will be used by the City when setting the land value used in the formula for determining the impact fees due in lieu of park and recreational land dedication pursuant to Santa Clara City Code 17.35. (Approved by Santa Clara City Council—June 7, 2016) Background.

On July 15, 2014, Council added Chapter 17.35 “Park and Recreational Land” to the Santa Clara City Code to ensure that new residential development provides adequate community and neighborhood park land for active recreational uses and/or pays a fee in-lieu of parkland dedication to mitigate the impacts of the new growth pursuant to the California Quimby Act and/or Mitigation Fee Act.

17.35.040 Formula for calculation of fee in lieu of land dedication. (a) When a fee is required to be paid in lieu of pa rkland dedication, the maximum amount of such fee shall be determined by the fair market value of the amount of land that would otherwise be required to be dedicated pursuant to SCCC

17.35.030, as set forth below. The date of valuation of the property for in-lieu fee purposes shall be the date that the City determines that the developer’s application for a parcel map or tentative subdivision map, or application for projects not involving a subdivision, is complete. (b) Fair Market Value.
(1) The City shall determine the fair market value of the property by using the average per acre land value for property in the City of Santa Clara, based upon a survey of land values and sale records in the City. The City Council shall set a minimum of three such average values, one for each of the three existing Zip Codes in the City (95050, 95051, 95054). The City Council may, at its discretion, set average values for additional subregions of the City. The City Council shall review the fair market values not less than annually and set the values in a Council resolution. (2) If the developer objects to this determination of fair market value, the developer may elect to have the value established by appraisal. If the developer chooses this option, the developer shall deposit with the City an amount sufficient to cover the cost of an appraisa l, which the City shall conduct. The appraisal shall be completed prior to approval of the tentative or parcel map or, for developments not involving a subdivision, prior to the issuance of a building permit. (c) Based on the determination of fair market value set forth in subsection (b)(1) of this section, for each of the dwelling unit categories, the City Council shall set the amount of fees to be paid in lieu of parkland dedication in a Council resolution, which the Council shall review annually. (Ord. 1928 § 3, 7-15-14).

Attachment A—Supplemental Instructions for Appraisal Page 1 of 3

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 68 Guidelines for Appraiser:
a. Appraiser is to provide a “Fair Market Value” for an average acre of land (hypothetical, rectangular, useable site) for property in each of the three existing City of Santa Clara Zip Codes 95050, 95051, 95054. The opinion will conform to Uniform Standards of Professional Appraisal Practice. b. Valuation Date: December 31 of each year.
c. Location & Property Sales Data Set Boundaries: Data set will begin with sales data from within Santa Clara City limits.
d. Data Set Date Range: Use data from January 1st to December 31st of each year. Example: January 1, 2015 to December 31, 2015 for “December 31, 2015 Valuation Date.” See contingencies below. e. Property Types: Use all of the following property types: Single Family (low and very low density), High Density Residential, Medium Density Residential, Commercial, Industrial, Lots and Land. f. Contingencies for Limited Data Set of each Property Type: If there are insufficient, credible data points or sales of a particular property type, then appraiser will explore and use comparable sales from the local competitive market area, adjacent to City of Santa Clara. A fixed distance from City of Santa Clara city limit is not given, however a compelling, rational basis for the selection of the competitive market area must be given by the appraiser in the report. Preference is for closer, more recent, and comparable; discretion is given to the appraiser.
g. Sales Transactions Data not to be used: Do not use transactions if they are not an arms-length transaction, have encumbered/clouded title, are environmentally impaired site, or are more than three (3) years old. h. Inflation factors for Comparable between 1 and 3 years: An inflation factor will be computed and applied to comparable sales over one year based on reasonable and rational considerations such as sales and rental trends or other appropriate methods.

i. Sales Transactions Data that may be included: May use real estate sales transactions by the City of Santa Clara for additional neighborhood or community parkland. j. Data Values excluded: No values or set of values at the high or low end of the data set are to be excluded from consideration in the average values on the sole basis of being relatively high or low; however, a check for consistency among comparable values will be done, and a rational basis should be provided for credible comparable transactions if not used.

Attachment A—Supplemental Instructions for Appraisal Page 2 of 3

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 69 k. Research Factors to be considered for Comparable sales: The factors to be used to compare property values include, but are not limited to physical factors, economic factors, market conditions verification to parcel maps, public records, CoStar data bank. Additional factors may be used provided there is a rational basis for doing so. l. Reconciliation of value differences: The approach will be comparative, iterative, qualitative and quantitative, and will be made at the appraiser’s discretion. m. Weight to be applied to Property Types: The weighted average of each property type will be based on the percentage of land area in the sales transactions, for example, if 25% of total acreage is high density residential, then the relative weight of that property type will be 25%. (The weight will not be done by the quantity of sales of each type or the percent of value of sales of each type). n. Reporting: A draft valuation report will be generated by March 15. City will provide for a two week circulation and comment period. The valuations included the final valuation report will be used in the calculation formula for fees prepared by staff to be reviewed by Council as part of the annual City budget process and Municipal Fee Schedule adoption by June 30. Fees will be implemented on or after July 1 depending upon Quimby Act or Mitigation Fee Act provisions of the Council resolution.

Attachment A-Supplemental Instructions for Parkland Dedication In Lieu Fee Process and Schedule 2016

Attachment A—Supplemental Instructions for Appraisal Page 3 of 3

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 70

VERY LOW-DENSITY RESIDENTIAL SALE COMPARABLE LOCATION MAP

Moffett Federal Air Field
nt Ave
ltos
VLD-2
»-'r---- -11L---1.. _ _j~--4~ tloJ=,teJiCLliC1.t----- ...j 159 Brookside Ave San Jose, CA 95117
°Cupertino
c.-.lli.-,nP':° Rd -
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 71

HIGH-DENSITY RESIDENTIAL SALE COMPARABLE LOCATION MAP

cho San
ntonio
ntyPark
,
°Cupertino
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 72

COMMERCIAL SALE COMPARABLE LOCATION MAP

Rancho San
Antonio
Open Space Rancho San
Antonio
County Park
Moffett F ecleral
Air Fielcl
C-2
3378 El Camino Real
Santa Clara, CA 95051
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 73

INDUSTRIAL SALE COMPARABLE LOCATION MAP

Fremont Older
Open Space
Re

Fra

eal Estate Ap
ank Schmid
ppraised: Thr
dt & Associ
C
ree Hypotheti
iates Pho

COMPARAB
Very Low De
Very Low De

ical One-Acre

one: 510-468

BLE LAND
ensity Land Com
nsity Land Com
e Lots, One fo
-9219 fsch m

D SALE PA
mparable Sale V
mparable Sale V
or Each Zip C
midt@valuat

ARCEL MA
VLD1
VLD 2
Code, Santa C
tionconsultan
APS

Clara, CA
nt.net 74

4-
@
I
. .
"' ::,
~
HAROUl
' I
.J el ,
I
a 1 1•
- ,;,,..;: ___ , ____ ,
,. I "
I
' ii i!> -,
I
" I
" :,ti r.,_ilt_ ~~"-- - -
I
_,f I ~ I Z i §
1, _ _ : _ _ " __ t_ 11 __ 1_.1•_
o I ' :I" I ill I !2 I M
' i :,
if H l lll.ll
: .~ I
.lJ .Jr)
U....cT N'M
'Wr5TS-.MJDS£TIIACr __
II
..
.,
" ,.
t!'
'
,l!!
..
__,,._- --
------ - -

CO U NT Y,
!Z
"
{,!
.ff
,.
!ff
!l
I 'f
~ I : i~
----- --- t -- - ~-- ---
" ! 'i!!5 - ~
~ a1 » 1;
I
"
li''1.~ •lrll ~ AVENUE •
·- '-' --
,, ~
;!--!~ L 1 :
~ _ii
Fl~.; 2 "•
~ TOl,l"S EXsP1'ESS\l'AY
- --- - --
J
Re

Fra

eal Estate Ap
ank Schmid
ppraised: Thr
dt & Associ
C
ree Hypotheti
iates Pho

COMPARAB
Very Low De
Very Low De

ical One-Acre

one: 510-468

BLE LAND
nsity Land Com
nsity Land Com
e Lots, One fo
-9219 fsch m

D SALE PA
mparable Sale V
mparable Sale V
or Each Zip C
midt@valuat

ARCEL MA
VLD 3
VLD 4
Code, Santa C
tionconsultan
APS
Clara, CA
nt.net 75

,c (I \,I 'II i., It'$ 6- t 5 SO ,;
f" - 100"
.i. .:. .IL .z.
-- -FRESN O- - --- --- _,_ - ------ -ST.---
; 0L.K.!i L ~,.. BU<-6 . ...
1---- 1- SECOND ----- -
BETlil..D{EM
\IOI..DP0. ◄ 1
TRACT NO. -1~
c.,wi'-!OA L1A
1:Hl-- 1
@
11 ,·04 11 10 11
I
I
f
I
'®
I
I
I
I
I
I
l z
~
I
Re

Fra

eal Estate Ap
ank Schmid
ppraised: Thr
dt & Associ
C
ree Hypotheti
iates Pho

COMPARAB
Very Low De
Very Low De
ical One-Acre

one: 510-468

BLE LAND
nsity Land Com
nsity Land Com
e Lots, One fo
-9219 fsch m

D SALE PA
mparable Sale V
mparable Sale V
or Each Zip C
midt@valuat

ARCEL MA
VLD 5
VLD 6
Code, Santa C
tionconsultan
APS
Clara, CA
nt.net 76

COUNTY CL A A A COUNT 'I', CAL l fOAH I A
1" = 100'
LA'lllffl'.NCE £. 5 TtNE - ASStS5C]I{
c..tnl ..... --~..._.
=:!::!."ii,n~ m.

Fra
eal Estate Ap
ank Schmid
ppraised: Thr
dt & Associ
ree Hypotheti
iates Pho
Very Low De
ical One-Acre

one: 510-468
nsity Land Com

e Lots, One fo
-9219 fsch m
mparable Sale V
or Each Zip C
midt@valuat
VLD 7
Code, Santa C
tionconsultan

Clara, CA
nt.net 77

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 78

COMPARABLE LAND SALE PARCEL MAPS

High Density Land Comparable Sale HD 1

High Density Land Comparable Sale HD 2

I BENTON
,--,- JJ/a,- ,R,6-.,----
@
COUNTY 1
~,
P.M.442-"4-'2.:5
STREET
' (Ip
i1j 1 fil :'
~ 1-----~~ - -----i
"
I
I
J
I
__ (rw.r. -~A n snc m.,__ ----t
ROAD
~~l.'r _ _ -t-=;c.·~~~~-~··~----
CO U N l l',
11> M: !';111"\il - A.~ it !l':IU
~11:1-n"loi• .. nn-:-..-..
:.;l! ~ -,itl,I~ t, cli.k t ""' :m
(~~'l' -"!1,0- l!:ltl
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 79

COMPARABLE LAND SALE PARCEL MAPS

High Density Land Comparable Sale HD 3

High Density Land Comparable Sale HD 4

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 80

COMPARABLE LAND SALE PARCEL MAPS

High Density Land Comparable Sale HD 5

High Density Land Comparable Listing HD 6

O F rlCIC OF C O U ~ i'!'
1--- CALLE - - - - P .N, •22- 0,- , @
\ - · 1~ ": ~"' .:~ : '
'
~ ! ..L. ;:! .z s! _,! iJ ~ ~; ..,l
Pa.... A Pa.... e fPo... c ; ' : ~ : ; PCI..D ; Pcl~f
··•'"-' -::,,_:...-~t>'• •• tr-:ct,-r : .-••!••;:,,,_ 11 I
I
\-- -
I
~ I
Q7 \
'
I
I
\--·
r !'-
'. " '
I
~ I
Q7 \
'
11 11/
CALLE
J§
P . PCL 27
1 . .1, M;, NIEi
•• lU;;"lf ... "',1il,I"" : ..
"' 1,,WA;. JIEl
11 o r r I cc OF
CALLE
J§
P PCL 27
1 . .1, M;, NtEr
•• lU;;"lf ... • ,1~•• : ..
"' 1,,WA;. JIEl
11 1Z
"' 'I.~ AC. Nff
..r··-
C O U ~ i"
1Z
"' 'I.~ AC. Nff
~r-··
i;
r
C O U N 1 1 , C ,t, L IF O II If I ~
--DE L-
j
~r lJ .ii :Mr
.PCL F , D i PCL1 t PCL2 !
•••t--•--- ~li M: _ ____ i;~ ,~ • Mr ~:A: • :-j
PO... C 16 I 17 I
O.il i 1\-C. NET I O.U At:. ti~ !
u £r~ lJ ~ .1.

DE
, oTY CF !.,Q:,:-
- ~~ .. ~-• ... -
P, W, ,t 1$ - M
······~
W NA
,.
u>1.-c. 1i1n
ZR
l -------
... . - J All.I n Rl\J£ --- ---- ... --- - .-
-- SANiA
- -DEL-
DE '.~;;;~ :=-
P, W, ,t 1$ - M W NA
II/
2 ,.,.. .lc.HFT
...... ..
~1, ~
_;_)J
l ---- ---
... . - J l\.1\.1 n Rl\J£ --- ___ ... _.- ---
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 81

COMPARABLE LAND SALE PARCEL MAPS

Commercial Land Comparable Sale C 1

Commercial Land Comparable Sale C 2

OF CO LI M T", C: A I, I F Q Ill N' I ,.
- -1 ._,- •~:o '"wARBUR:~N~:. --.;
' I
I
0 I <
~ i
5 ~ !
~
, . ., ,
~
I 22
'
I"
ft 0.5, ~
~

1.1. _ft
,
!L I ~
. I .
,-:..~ :;;:.•
li
ll
:I§
1 : 2.
--- ~- ---- __ ! ___ j_ ____ _
14 : 13 '" l ,,
..i.

A'lf. .
' ~ ~ u ~ ~ "
;~+ ~-- ; - '-~_j_:~+ -~_:__~~--' - ~

1.6'3 M:. FIE'r

EL CAMINO REAL
0 SENTER TRACT - Lor 2 @
B- W.-.J 8
290
IR,1
Ulf)'
CIU ,t,C,
IJ,91, At , t,,U 'l..M .

CO U M 1" l',
REAL
,;:;:71--,- ··,_ J~.•I • I I •~'---''--'"-, ~! OC,~ ,+---------t ~ ... Nl~?,. M ◄ ;,c.,Jl ,._ u e , ,a ! ,"' :,~ ,.~/:

I·--- 2,J : 22~: ZJ <.' ,.
/ 1!.II ~ ~112:; :
'
:: ~i ~ ' ~ N ,~ / .. •:
, .. - -...... ii u~r ;·
J:ii~,' ,-.!F,--'!!'-,,-'l;f'-,--'/i.'--,-"ft- -,-'if-rir,-ffi i--,. ·: ; ··; · ::;-; ··; ' •~II - - - - l - • - - •
1-~~--- ~~--~--~- L~ ---
• 5-!i . r 1§. 8 : 5
J-;;··- li t.l•::,.u L $.\I ~~
------ ! -: ~ ..o i,.i~" ... 1
- . ~ ·., Y.~ ~-1)
; ~o •~· ~ c"·
\ .. i \ .. , __ ,4-.·
\ -:~ \ ~
fl • ' \ ~J;-;~ ·;' ••
u i ~ ., ~,~~~_,,
[je.Y>1~
, · • 100'
0 Ii 2so IITI
I"' • IDlf
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 82

COMPARABLE LAND SALE PARCEL MAPS

Commercial Land Comparable Sale C 3

Commercial Land Comparable Sale C 4

0 F f IC E
111.r.<., J\I•' (.3~
LI'»JJKn1r..•lli'li.·-r -8 l r'I
or COUN T Y
•r,,,:.,:_• N.!",-:!"I' I Hl\(.'.1' r,;~ Z ltio
l'\C>\!'llLk 1m,-,,,;: r.J'.1.IT u • 2 I "m•i,'A I ~ ""At(f, UNlr ~· I ~-~j-, ~ ..

L •
- ··'
+
OJ
w "'
·~ ·1~
~~
COUN T'!'.

I.' 0 V N 1 T,
, ¥ J.

ROAO
C,.,LI F 0R MIA
IG!iJu[]I
I
>-
~
~® :ii 12
Cl.

X
t.,,I
--- ~ ----+-
lll'l>"\.iol:L ;.. St'.N. - J.!9:!5().1
~ ml O!(I·~ .. ,~•·
c.:"111a1 .. .,. 1. 1 r. o...~?n.
~f11Nlioll'.2t.m-1:li:tl
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 83

COMPARABLE LAND SALE PARCEL MAPS

Commercial Land Comparable Sale C 5

Commercial Land Comparable Sale C 6
.c OU~ T 'I'
~
P.Jr,1.426-M-4 ~ J .
~1 PCL A
' UJAc.Ne-1
i;,» ,. l8&-M-J6 I [ ;:;
0 '
~ . LAWRENCE
~~
P.w. 35J.--~-f7
""-- ' J.D!i M:. filill
a§
.

P.M.. Jlili1'4-J~
,o_
:11!i
"
=-.~.11!~
P,M. J79- M- 43
fl'J) .:i, ~/i~
3,12 j>I( 3!]2- 14- 2-l
)(PRE:ssWAY ~. -----' "-"'-"" "--------
6 11 -=:l: L !:ro,c: - li.!l.!EZll'Z
:I:: C,,:l,<hl .. Jhr .n_,~ .. .,.
"" Cn.:ii.J...W ll. t · .coo..11a.:J:i!J.
( ..... ., ........ _lf;Q0---)(0
CCJ IHI TY.

Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 84

COMPARABLE LAND SALE PARCEL MAPS

Industrial Land Comparable Sale I 1

Industrial Land Comparable Sale I 2

ia. iLI.I ,c.t, .. .
.....

C •Li F 1 1 ■ 1 ■
: I
I I
' 1
Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 85

COMPARABLE LAND SALE PARCEL MAPS

Industrial Land Comparable Sale I 3

Industrial Land Comparable Sale I 4

•• C! DIJ N 1 'f < L o\ l!I A [ a LI N TY -
'!..
o r C. 0 1J N T'Y C (I UN T 'I'•
/
.'t'
- ~~
~
s, ~8&-M-JEI
0 ,,.,
,..o•
""
P.M.26-t--W
P " 2,9&-M-2. -_.,..,5.-,r-:,,,.--·•· ,.,,-::;;;- ' ,.
0 ~ ~ t.J/!/ j - . . .....
~ PCL C ii iL 27! ____ _ I..._ " PCL. Y 2& ~-- ---;
I/' "' \II P<LB• M
'f/ \81!~ ol!ET J :
4 : \-!I~: ,i!l,,~:~~ ~~a;J~ ~~!";~~~~
/ ( ~ V ~ ,on
' p tl-iil.~~i-;l,,,.;:,.;J--j~~~r::<::': f' i,jJ-10-M-51 ___ 1:! . R.0.!1..1 TRACT HO. Jl ARK lj/ :;; 0 AIRPORT INDU~AI.. p ,c; ~
147- M•20 i ~
0 Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 86

COMPARABLE LAND SALE PARCEL MAPS

Industrial Land Comparable Sale I 5

orrior: o , COil.i N TY A SSf!!;!:Ollt -- S AN T A 0 L A It A t O tJ NT T , (l AL If O It H I A lrn!JC~JI
~
CJ1Y ~ SAN
, .....
,_ @_-.,_\ _ _ _ _ _ _ _ _;"-:;O::;:.S::;_. _::••::;<-:::M::-~•---■ • • ,-;u Real Estate Appraised: Three Hypothetical One-Acre Lots, One for Each Zip Code, Santa Clara, CA

Frank Schmidt & Associates Phone: 510-468-9219 [email protected] 87 FRANK E. SCHMIDT, MAI, SRA
CURRICULUM VITAE, January 2024

Valuation Consulting, Forensic and General Appraisal, Expert Testimony MAI and SRA MEMBER of the APPRAISAL INSTITUTE, No. 11933 [email protected] (510) 468-9219
San Francisco Bay Area

For more than four decades, Mr. Schmidt has been a real es tate appraiser and consultant with a practice primarily in Northern California and the San Francisco Bay Area. He began his career as a residential appraiser, earning the coveted SRA designation from the Appraisal Institute in 1989, and the prestigious MAI designation in 2002. In 1995, he partnered with Wayne Prescott to form the Schmidt-Presco tt Group, a commercial appraisal firm of which he was president until its dissolution in 2017.

During his career, Mr. Schmidt has appraised a wide variety of real estate including residential, commercial, industrial, raw land, and special purpose properties for various propert y rights. His experience includes litigation support and testifying as an expert witness for both plaintiffs and defendants. Mr. Schmidt’s client list includes attorneys, municipalities, private entities, lenders, and publicly traded companies. He was engaged as a diminution in value consultant on PG&E cases involving the destruction of thirty-eight homes in the 2010 San Bruno gas-line rupture fires.

Mr. Schmidt was recently retained by the City of Santa Clara as an expert to assist the city’s task force in the process of setting Parkland Dedication fees.

Mr. Schmidt has served on several professional committees th roughout his career, including the International Right-of- Way Association and the Appraisal Institute. He currently serves on the Santa Clara County Assessment Appeals Board, of which he was elected Chairperson in 2017.

Expert Witness Testimony

U.S. District Court, Santa Clara County Superior Court, San Joaquin County Superior Court, San Francisco County Superior Court, Public Utility Commission of the State of CA, American Arbitration Association, Standard of Care, Eminent Domain

Professional Affiliations
Membership in: Appraisal Institute [MAI (2002) and SRA Member (1989)]

Work Experience
1/2019 to Present: Frank Schmidt & Associates, President S a n F r a n c i s c o B a y A r e a
2018 Carneghi-Nakasako, Appraiser Consultant
S a n J o s e , C A
2/95 to 12/2017: The Schmidt-Prescott Group, President San Jose, California
4/78 to 2/95: Schmidt & Associates, Inc., President San Jose and Fremont, CA
6/76 to 4/78: Senior Supervising Appraiser, Mercury Savings & Loan C u p e r t i n o , C A
1/76 to 6/76: Staff Appraiser, American Savings & Loan S a n J o s e , C A
2/75 to 12/75: Real Estate Appraiser and Consultant,
B.A. Ericson Appraisal Co., San Jose, CA
Formal Education

B.S. Business Management, 1997 University of Phoenix Graduated with Honors San Jose, CA
Attachment 2

Table A
Proposed Parkland Dedic.ation In Lieu Fee Schedule- FY2024-25 95050
Annlk.able Fee Type Calculation MFA
S/Acre (valuation date 12-31-2023) A S5,455,000
Par!< Acres/ 1000 Pop. LOS Standard B 2.6
Total Cost per 1,000 C =Ax B Sl4,183,000
Cost per capita D = C/1000 Sl4,183
Density Single Family (Census ) Dx 2.84 S40,280
Impro vement value (2023: S3,818 + 9.4%) $4,177 X 2.84 Sll,863 Admin Charge 0.02 Sl,043 ..................................... . .....................................

Total Single Family (SF) Dwelling Fee S53,186
Density Multi Family (Census ) D x 1.92 S27,231
Impro vement value (2023: S3,818 + 9.4%) $4,177 x 1.92 S8,020 S705 .................................... Admin Charge ................ .0:0.2_················======= Total Multi Family ~m Dwelline Fee S35,9S6
TableB
Proposed Parkland Dedic.ation In Lieu Fee Schedule- fYl.024-25 95051
A••lk.able Fee T 1-oe
S/Acre (valuation date 12-31-2023)
Par!< Acres/ 1000 Pop. LOS Standard
Total Cost per 1,000
Cost per capita
Density Single Family (Census )
Impro vement value (2023: S3,818 + 9.4%)
..................................... Admin.Charge
Total Single Family (SF) Dwelling Fee
Density Multi Family (Census )
Impro vement value (2023: S3,818 + 9.4%)
Admin Charge
Total Multi Family /MFl Dwelline Fee
Calculation
A
B
C =Ax B
D = C/1000
Dx 2.84
$4,177 X 2.84

0.02 . .....................................

Dx 1.92
$4,177 X J.92

0.02 TableC
MFA
S5,650,000

2.6 Sl4,690,000
Sl4,690
S41,720
Sll,863
Sl,072
SS4,655
S28,205
S8,020
S724
$36,9 49
Proposed Parkland Dedic.ation In Lieu Fee Schedule- fYl.024-25 95054
Annlk.able Fee Type Calculation MFA
S/Acre (valuation date 12-31-2023) A S5,255,000
Par!< Acres/ 1000 Pop. LOS Standard B 2.6
Total Cost per 1,000 C =Ax B Sl3,663,000
Cost per capita D = C/1000 Sl3,663
Dnimby
S5,455,000
3 Sl6,365,000
Sl6,365
S46,477
Sll,863
Sl,167
S59,S07
S31,421
S8,020
S789
S40,230
Onim by
S5,650,000
3 Sl6,950,000
Sl6,950
S48,138
Sll,863
Sl,200
S61,201
S32,544
S8,020
S811
S41,375
Dnimby
S5,255,000
3 Sl5,765,000
Sl5,765
Density Single Family (Census ) D x 2.84 S38,803 S44,773 Impro vement value (2023: S3,818 + 9.4%) S4,177x2.84 Sll,863 Sll,863 ..................................... Admin Charge ................ 0.·.q?._···············==== S=l"',0=1=3 ====S=I,., I .. 393 Total Single Family (SF) Dwelling Fee S51,679 S57,769
Density Multi Family (Census ) D x 1.92 S26,233 S30,269 Impro vement value (2023: S3,818 + 9.4%) S4,l 77xl.92 S8,020 S8,020 .................................... Admin Charge ................ .0:0.2_················==== S=6=85=====S=7=66=1 Total Multi Family ~m Dwelline Fee $34,938 S39,055
Resolution/ Fees Due In Lieu of Parkland Dedication for New Residential Development FY2023/24 Rev: 4/19/2022

Page 1 of 7 ends

City Council and Authorities ConcurrentApril 21, 2026

City Council and Authorities Concurrent
April 21, 2026