Beruflich Dokumente
Kultur Dokumente
January 8, 2015
James Golde
Manager of Real Estate Services
Project Implementation
City of Oakland
250 Frank H. Ogawa Plaza
Oakland, California 94612 2033
APPRAISAL REPORT (revised)
Re:
2315 Valdez Street;
2330 Webster Street
Oakland, California
Our Reference No. 140715
Dear Mr. Golde:
At your request and authorization, we have completed an appraisal of the
above-referenced property which consists of a two adjacent parcels containing
a total of 1.42 acres, or 61,988 sf. It is improved as a vehicle parking lot
with asphalt paving and striping, and perimeter fencing.
As of our
inspection of the site, on December 15, 2014, the property was 100% occupied
by a sub-tenant; Oakland Parking Partners.
The parking lot has a total of
220 marked stalls.
This is a revised report, originally dated 12/13/14,
corrections to factual information have been included.
in
which
certain
The purpose of the appraisal is to estimate the market value of the property,
and fair market rental value (assuming specific land lease terms) as of a
current date. The function and intended use of this report is to assist the
City of Oakland in negotiating the disposition by sale of the property to
TDP-Webster, LLC.
The property is currently available for sale, but not
formally offered on the market.
You have requested that the appraisal consider two alternate premises as
follows:
1) That two separate encumbrances on the property for parking purposes
referred in several recordings under Exceptions 6 in a current
preliminary title report on the property, remain valid and in force as
described in the title report.
(continued)
1/8/15
Page 2.
Property Rights
Value
Leased Fee
$4,900,000
Sub-Leasehold
Fee Simple
$8,600,000
Leasehold
514,500
731,000
__________________________
Peter D. Overton, MAI
Principal Appraiser
Certified General RE Appraiser
California State License No. AG002631
Attachments
PO:po
__________________________
_
Michael Yovino-Young, MAI, ASA, FRICS
Supervisory Appraiser
Certified General Real RE Appraiser
California State License No. AG002841
Subject Property
2315 Valdez Street, 2330
Webster Street, Oakland,
California
Yovino-Young Inc.
Reference No. 140715
Subject Property
2315 Valdez Street, 2330
Webster Street, Oakland,
California
Valdez St looking
southerly
Yovino-Young Inc.
Reference No. 140715
Subject Property
2315 Valdez Street, 2330
Webster Street, Oakland,
California
Yovino-Young Inc.
Reference No. 140715
Page 2
TABLE OF CONTENTS
1.
2.
3.
4.
Exhibit A
Exhibit B
Exhibit B
Legal Description
Comparable Land Sales
Professional Qualifications of the Appraisers
1.
Page 1.
Subject Property:
Fee Simple,
Leasehold
Type of Value:
Vehicle Parking
Property History:
The most
occurred
Leased
recent
Fee,
Leasehold,
transfers
of
Sub-
property
Continued
occupancy
and
use
as
paved
Page 2.
vehicle
parking
until
an
approved
development project can be implemented.
Marketing & Exposure Time:
$4,900,000
$8,600,000
$
$
416,500
731,000
$4,900,000
$8,600,000
$
$
416,500
731,000
2.
Page 3.
Client:
James Golde
Manager of Real Estate Services
Project Implementation
City of Oakland
250 Frank H. Ogawa Plaza
Oakland, California 94612 2033
Intended User:
Client
Purpose:
Intended Use:
Rights Appraised
Specific Assumptions:
Effective Date:
Valuation Methodology:
Extent of
Analysis:
Research
Report Type:
3.
Page 4.
&
Seismic Zone:
Address
Parcel Number
Land
Improvements
Total
$0.00
$0.00
Tax Rate
1.4376%
1.4376%
Ad Valorem Taxes
$0.00
$0.00
Fixed Assessments
$0.00
$0.00
Total Taxes
$0.00
$0.00
Combined Total Taxes
$0.00
Note: the City of Oakland is public agency and is not subject to taxation
4.
A.
General
Page 5.
Page 6.
All statements of fact and data gathered from others for this appraisal are
from sources deemed correct and reliable, and verified when possible to do
so, but in no sense can they be guaranteed. Should disclosure subsequent to
this appraisal indicate errors or omissions that may alter the conclusions
and opinions expressed herein, the authors reserve the right to review the
same and prepare an addendum setting forth the corrected facts and their
effect, if any, on the original appraisal.
Under certain assumptions for special valuation problems, estimated values of
limited interests and/or portions of a property need not, when combined,
accurately state or coincide with the value of the property in its entirety.
B.
As Is Condition
C.
The Americans with Disabilities Act (ADA) became effective January 26, 1992.
The appraisers signing this appraisal document have not made a specific
compliance survey and analysis of this property to determine whether or not
it is in conformity with the requirements of the ADA. The reader should be
aware that if a compliance survey revealed non-compliance with one or more
requirements of the Act, that a negative effect upon the value of the
property might result. Unless otherwise stated in this document, we have no
direct evidence relating to this issue and did not consider possible noncompliance with ADA in estimating the value of the property.
D.
Page 7.
E.
All rights to this report are reserved, including the right to reproduce or
to publish in whole or in part, it being understood that this report may be a
portion of the services being rendered and the client may use the report
incident to the specific purposes stated herein for the appraisal, without
further conveyance to the public or unnamed third parties of the value
conclusion, identity or the professional designations of the author unless
prior written consent is obtained.
F.
Confidentiality Statement
Appraisers who are signatories to this report and certification statement are
dedicated
to
upholding
the
confidentiality
of
the
appraiser-client
relationship regarding the disclosure of personal, financial or other
information provided the appraiser that has been identified by the client as
confidential under the definitions provided in the Ethics Rule of the Uniform
Page 8.
Standards of Professional Appraisal Practice, and/or identified in the GrammLeach-Bliley Act of 1999.
G.
H.
Special Conditions
5.
DEFINITIONS
A.
MARKET VALUE
Page 9.
Market Value means the most probable price which a property should bring in a
competitive and open market under all conditions requisite to a fair sale;
the buyer and seller, each acting prudently and knowledgeably, and assuming
the price is not affected by undue stimulus.
Implicit in this definition is the consummation of a sale as of a specified
date and the passing of title from seller to buyer under conditions whereby:
1.
2.
both parties are well informed or well advised and each acting in
what he or she considers his or her own best interest;
3.
4.
payment is made in terms of cash
financial arrangements compared thereto;
in
U.S.
dollars
or
in
terms
of
5.
the price represents the normal consideration for the property sold,
unaffected by special or creative financing or sales concessions granted by
anyone associated with the sale.
Source: (12 F.C.R. Part 34.42(g) 55 Federal Register 34696. August 24, 1990, as
amended 57 Federal Register, April 9, 1992, Federal Register 39499, June 7, 1994.
This source for the above definition is cited in the Dictionary of Real Estate
Appraisal, Fifth Edition, The Appraisal Institute, page 123.
B.
Page 10.
The most probable rent that a property should bring in a competitive and open
market reflecting all conditions and and restrictions of the specified lease
agreement including terms, rental adjustment and revaluation, permitted uses,
use restrictions, and expense obligations, the lessee an lessor each acting
prudently and knowledgeably, and assuming consummation of a lease contract as
of specified date and the passing of the leasehold from lessor to lessee
under conditions whereby:
1.
2.
both parties are well informed or well advised and each acting in
what he or she considers his or her own best interest;
3.
4.
the rent payment is made in terms of cash in U.S. dollars, and is
expressed as an amount per time period consistent with the payment schedule
of ehe lease contract;
5.
the rental amount the normal consideration for the property leased,
unaffected by special fees or concessions granted by anyone associated with
the transaction.
Source: Dictionary of Real Estate Appraisal, Fifth Edition, page 176; The Appraisal
Institute, 2010.
6.
DESCRIPTIVE DATA
A.
Page 11.
The San Francisco Bay region consists of nine counties, which surround San
Francisco and San Pablo Bays.
Its highly diversified physical features and
mild climate allow for a wide range of industry and lifestyles, and
contribute to a desirable living environment.
Economically, the region is
similarly varied, although there has been a marked shift from manufacturing
to service industries, principally high-tech related, over the last few
decades.
This diverse economic base has proved itself relatively resilient
during recessionary periods. Governmental regulation of land use is enacted
at the municipal and county levels, although there is a well-established
research and advisory body: the Association of Bay Area Governments (ABAG),
which has been in existence since 1961.
The U.S. Census Bureau estimates the population of the nine-county Bay Area
as of the end of 2013 as follows:
B.
Page 12.
The immediate sub-regional context for the subject property is the East Bay
Region, which includes Alameda and Contra Costa Counties. These counties are
well within the daily commute sphere of San Francisco, the central economic
locus of the Bay region.
The two East Bay counties encompass intensively
developed inner urban areas immediately adjoining San Francisco Bay, and are
bordered on the east by low-lying hills paralleling the shoreline from
Richmond to Fremont.
The East Bay is developed with an extensive freeway
network, rail services, Oakland International Airport, and is well served by
the Bay Area Rapid Transit District (BART) and regional bus services. Along
with the University of California campus at Berkeley, there are several other
colleges and universities in the East Bay and numerous cultural and
recreational resources. The total population of these two counties as of the
2010 Census was 2,559,286 persons, with Alameda County accounting for
1,510,261 persons, and having Oakland as the largest city and the county
seat.
C.
City of Oakland
Scale 1 : 11,200
TN
0
MN (13.8E)
200
400
100
600
200
1" = 933.3 ft
800
1000
300
400
500
ft
m
Page 13.
A steady influx of immigrants during the 20th century, along with thousands
of African-American war-industry workers who relocated from the Deep South
during the 1940s, have made Oakland one of the most ethnically diverse major
cities in the country. Oakland is known for its history of political
activism, as well as its professional sports franchises and major
corporations, which include health care, tech companies, and manufacturers of
household products. The city is a transportation hub for the greater Bay
Area, and its shipping port is the fifth busiest in the United States.
Oakland has a Mediterranean climate with an average of 260 sunny days per
year. Lake Merritt, a large estuary centrally located east of Downtown, was
designated the United States' first official wildlife refuge. Jack London
Square, named for the author and former resident, is a tourist destination on
the Oakland waterfront.
Much progress has been made in reducing the city's historically high crime
rate; violent crime is primarily concentrated in certain neighborhoods, and
property crime has declined throughout the city. Oakland is continually
listed among the top cities in the United States for sustainability
practices, including a No. 1 ranking for usage of electricity from renewable
resources.
In recent years, Oakland has gained national recognition as a travel
destination. In 2012, Oakland was named the top North American city to visit,
highlighting its growing number of sophisticated restaurants and bars, top
music venues, and increasing nightlife appeal. Oakland also took the No. 16
spot in "America's Coolest Cities," ranked by metrics like entertainment
options and recreational opportunities per capita. .
Employer
# of Employees
Alameda County
Wells Fargo
5,862
5,704
City of Oakland
4,478
4,125
3,105
2,759
Safeway
2,692
2,500
Albertsons
2,209
10
10,374
Page 14.
The following table summarizes certain salient demographic indicators for the
City, Region, State and Nation. (Source: ABAG, Census Bureau, Bureau of Labor
Statistics).
Item
Median HH
Income
Median Family
Income
Avg HH Size
Unemployment
Rate(8/2014)
City of
Oakland
Alameda
County
San
Francisco
Bay Region
$51,700
$70,079
$76,476
$61,154
$41,994
$71,530
$85,802
$90,927
$69,659
$50,046
2.49
2.75
2.72
2.92
2.59
9.4%
6.1%
5.0%
7.4%
5.7%
State
of
California U.S.
The unemployment rate in Oakland, CA, was 9.4% in mid-August 2014, which is a
dramatic decrease since 3rd quarter 2012, when it was over 16%. As of April
2014, the job growth has resulted in a further decrease to 8.9% in Oakland.
Future job growth over the next ten years is predicted to be 18.46% (per
decade), or 1.85% annually.
D.
Page 15.
The property is located one block north of Grand Avenue and the Kaiser Center
complex of office buildings.
Grand Avenue is a boundary thoroughfare which
defines the northerly limit of Oaklands Central Business District (CBD).
Historically, a number of sites north of Grand Avenue have been used as
surface parking lots serving nearby office towers.
This has been the case
for the subject for at least 20 years.
These sites have, in recent years,
been subject to various development initiatives and over 300 apartments and
condominium units in four projects have been constructed in this neighborhood
in the last decade, and an additional four projects (including the subject)
comprising 768 units have been granted planning approval.
Page 16.
Looking Southerly over the Oakland CBD from the Subject Property
Subject
Page 17.
the
the
the
the
Page 18.
SUBJECT
PROPERTY
E.
Page 19.
Site Description
The property which is the subject of this appraisal consists of two adjacent
parcels containing a total of 1.42 acres, or 61,988 sf. The proposed
development project encompassing the subject site includes only these
parcels, though a previously completely approved project (now abandoned) also
included the two parcels at the southwesterly corner of the property at the
intersection of 23rd and Webster Streets.
The topography is level at grade
with the street.
The site is
entirely
asphalt
paved.
The
pavement is in average to good
condition.
The
entire
site
perimeter is fenced.
The subject property fronts on 23rd
Street for 100 feet, on Valdez
Street
for
319
feet,
and
on
Webster Street for 217.25 feet.
It is currently striped for 196
parking stalls.
The average site
area per stall is 347 square feet,
which is a typical density for
self-parked surface parking lots.
F.
Page 20.
The property is zoned D-BV-2 Broadway Valdez District Retail Commercial Zone
- 2. The intent of the DBV-2 zone is to create, maintain, and enhance areas
of the Broadway Valdez District Specific Plan Area for ground-level retail,
restaurants, entertainment, and art activities with pedestrian-oriented,
active storefront uses. Upper-story spaces are intended to be available for a
wide range of office and residential activities.
The General Plan Designation is Central Business District. The D-BV-2 Zoning
permits a wide range of local serving business occupancies as well as multiunit residential uses.
Following are the basic development paramters as set forth in this section of
the ordinance;
Approval Processes
Land Use
Lot Minimum Requirements
Building Requirements
Parking Requirements
The property was previously entitled under Use Permit CMDV05-519, filed
10/12/05, for a 22-story building (241-6 tall) inclusive of the two smaller
parcels at the corner of Webster and 23rd Streets. Construction of a 281-unit
condominium project was proposed with 10,603 sq. ft. of ground floor retail
space, and 10,613 sq. ft. of 2nd story commercial space. The total project
site area is 73,413 sf, reflecting a unit density of 167 units per acre. The
plan called for a 535 stall parking garage with two subterranean levels,
inclusive of 242 stalls for public parking. The entitlements for this project
have now expired.
G.
Page 21.
Proposed Project
177,000 ~
'
5,300 ~
'
14,750 ~
'
197,050 ~
'
235,000 ~
'
78%
3.79
H.
Building (two
respectively.
blocks
Page 22.
south)
have
been
in
force
since
1983
and
2000,
No. Spaces:
Ja
nM 05
ay
-0
Se 5
p0
Ja 5
nM 06
ay
-0
Se 6
p0
Ja 6
nM 07
ay
-0
Se 7
p0
Ja 7
nM 08
ay
-0
Se 8
p0
Ja 8
nM 09
ay
-0
Se 9
p09
$0
Page 23.
Transient
Total
Expenses
Net to City
Pct Exp
Jan-13
$21,666.70
$1,314.53
-$56.36
$22,924.87
$10,791.10
$12,133.77
47.32%
Feb-13
$19,623.45
Mar-13
$22,489.80
$1,588.53
-$52.62
$21,159.36
$9,390.07
$11,769.29
44.63%
$1,451.53
-$40.49
$23,900.84
$10,884.95
$13,015.89
45.71%
Apr-13
$22,702.00
$1,350.53
-$49.69
$24,002.84
$11,681.46
$12,321.38
48.87%
May-13
$21,291.00
$1,566.88
-$177.12
$22,680.76
$9,784.17
$12,896.59
43.92%
Jun-13
$20,986.00
$1,232.51
-$36.37
$22,182.14
$10,593.34
$11,588.80
47.92%
Jul-13
$24,637.00
$1,467.51
-$462.67
$25,641.84
$11,444.27
$14,197.57
46.44%
Aug-13
$26,837.79
$822.00
-$143.20
$27,516.59
$10,908.44
$16,608.15
40.16%
Sep-13
$22,119.00
$1,783.07
-$40.67
$23,861.40
$9,759.01
$14,102.39
41.07%
Oct-13
$25,170.23
$959.00
-$416.92
$25,712.31
$10,886.92
$14,825.39
43.96%
Nov-13
$23,821.60
$767.02
-$41.03
$24,547.59
$9,708.03
$14,839.56
39.71%
Dec-13
$21,559.45
$940.51
-$192.78
$22,307.18
$9,610.83
$12,696.35
43.95%
Jan-14
$25,061.70
$1,214.51
-$208.70
$26,067.51
$10,764.60
$15,302.91
42.10%
Feb-14
$21,889.16
$1,908.00
-$243.48
$23,553.68
$10,047.35
$13,506.33
43.69%
Mar-14
$25,129.95
$1,791.00
-$227.96
$26,692.99
$9,796.98
$16,896.01
37.56%
Apr-14
$26,410.00
$2,276.12
-$382.09
$28,304.03
$10,341.14
$17,962.89
37.89%
May-14
$25,181.30
$2,879.12
-$210.54
$27,849.88
$9,753.32
$18,096.56
35.78%
Jun-14
$28,491.55
$3,697.22
-$662.97
$31,525.80
$10,685.38
$20,840.42
36.00%
Jul-14
$27,770.05
$2,053.46
-$306.87
$29,516.64
$14,855.32
$14,661.32
51.37%
Aug-14
$30,132.33
$1,985.67
$0.00
$32,118.00
$9,500.00
$22,618.00
29.58%
Sep-14
$30,132.33
$1,985.67
$0.00
$32,118.00
$9,500.00
$22,618.00
29.58%
Oct-14
$30,132.33
$1,985.67
$0.00
$32,118.00
$9,500.00
$22,618.00
29.58%
Mean
Mean Douglas
Mean Jan-Jul 14
$24,692.49
$23,833.56
$25,705
$1,634.90
$2,260
-$208.03
-$320
$26,195.56
$25,260.43
$27,644
$10,463.03
$10,615.09
$10,892
$15,732.53
$14,645.35
$16,752
41.22%
42.85%
40.62%
Forecast
Annual
Expenses for first 3 months of Oakland Parking Partners occupancy are estimated
$17,000.00
$204,000.00
Page 24.
The above forecast net parking revenue to the City of Oakland represents the
contributory value of parking spaces on the existing paved lot. The lot is
configured with 220 parking stalls, although 242 are required by the parking
lease and agreement which specifies that these spaces must be available to
tenants in the Ordway Building (subject to 30 day notice), and for which the
property owner may charge market rent for their use.
Therefore, a proportional extrapolation of revenues is necessary to account
for the impact of the parking lease on the value of the property:
242 stalls / 220 stalls = 110%
This proportion is applied to forecast revenues assuming the required parking
spaces are replaced by garage spaces for which rental rates are approximately
71% higher than for open parking. Therefore, in the report section dealing
with this influence on property value, parking revenues based on stall rates
of $12/day are used to forecast gross income while considering an appropriate
expense structure inclusive of property taxes, which are not now assessed
since the property is under public ownership
As noted at the outset of this report, the appraisers are instructed to value
the subject under the specified premises 1) existence of this contract, or;
2) non-existence of the contract. This issue is pertinent to the appraisal
since, the costs/benefits of constructing 242 additional parking spaces in
the subject project, or any other future project, must be considered in terms
of how this requirement affects market value.
I.
Page 25.
Property History
The most recent transfer of the property ownership occurred on 1/30/2012 when
the City of Oakland took title as the Successor Agency to the Redevelopment
Agency which had been dissolved.
The Redevelopment Agency acquired the
property on 4/13/2010 (Doc #100998) at a price of $4,050,000.
Prior to this transfer, the property ownership changed on 9/18/2009 via a
Trustees Deed Upon Sale by which Bank Midwest took possession of the property
after foreclosing on a 1st deed of trust. The Trustees Deed specified unpaid
debt and costs of $9,081,853.22, and payment by the debtor of $3,617,700.
The prior owner, PPD Merritt LLC, purchased the property on 8/30/2000, and on
11/1/2004, refinanced the property with a development loan from Bank Midwest
for a total of $7,475,000.
The property is offered for sale at this time, but not advertised as such on
such services and the MLS or Loopnet.
No asking price has been disclosed,
though the City has entered into an Exclusive Negotiating Agreement with TDPWebster, LLC aimed at reaching a Purchase and Sale Agreement.
7.
Page 26.
The Dictionary of Real Estate Appraisal, Fifth Edition, The Appraisal Institute,
Page 93.
Page 27.
Scale 1 : 19,200
TN
0
MN (13.8E)
400
160
800
1200
320
1" = 1,600.0 ft
1600
480
2000
640
800
ft
m
Page 28.
8.
A.
Market Conditions
Page 29.
The local market for vacant land, or properties suitable for redevelopment,
is currently very strong, due to the perceived opportunities for profit from
chronic under-supply of housing.
This, coupled with the strong job market
and economic performance in the region has led to double digit growth rates
in rents in San Francisco and the inner East Bay markets.
The rent growth
has not translated into increased numbers of buyers of condo units or single
family residences, as pricing in these markets has kept pace with rents due
to constrained supply.
Also the sources of housing demand have shifted in
emphasis to younger workers who prefer denser urban environments and there is
greater competition for available living units.
It is not clear at this time when the market cycle will peak, or if it will
continue in its growth phase for one or two more years.
Hence, it is not
unusual for developers to seek opportunities with even great urgency in order
to complete the development cycle before there is another broad economic
downturn, or a change in the market cycle.
B.
Market Study
Page 30.
NO. LOCATION
SALE PRICE
UNITS
SITE AREA
$/SF
APN
SALE DATE
SHAPE
ZONING
$/unit
1
1900 Broadway
$4,611,500
294
40,650
$113.44
008-0638-005,006-03
1-Aug-14
Irregular
CBD-P; Height A $15,685
Three adjacent parcels including corner site improved with dilapidated four-story masonry office building (+/-36,00
sf) which will be rehabbed as part of the project. Costs to retaining and rehabbing structure are considered
equivalent to cost to replace, but retention provides some leverage in planning process. Buyer has scaled back
previously conceived project to a 24 story residential tower with ground floor commercial space. Location is
adjacent to 19th Street BART station.
2
522-532 20th St
$1,180,000
82
7,405
$159.35
008-0645-006.007
29-Apr-14
Rectangular
CBD-X
$14,390
Recent sale for an un-entitled site zoned CBD-X (Height Area 6), which allows for a maximum density of 484
units/acre, maximum F.A.R. of 20.0 to 1.0, no building height limit (minimum building height of 45'), and a 100%
site coverage. The price/unit figure above is reflective of the maximum allowable density on the site (82 units based
on 484 units/acre). Site is rectangular and level with all off-sites. Currently being utilized as a parking lot.
6
$5,105,000
98
34,412
$148.35
053-1627-022,039,037
31-May-13
Irregular
C-1
$52,092
Vacant site entitled for development of 98 residential units (66,300sf) and 9,392 sf of retail space. FAR = 2.2. Units
per acre = 124. Location at major intersection in West Berkeley.
7
$1,500,000
111
10,000
$150.00
002-0057-020
7-Nov-14
Rectantgular
CBD-C
$13,514
Vacant in Oakland CBD, located two blocks SW of subject and two blocks from 11th Street BART station. Max
FAR = 20. Max Units/Acre = 483
8
$2,200,000
133
12,000
$183.33
002-0057-004-02
1-Sep-14
Rectangular
CBD-C
$16,541
Current listing of corner site in CBD zoned for commercial, though residential development is most probable. Max
FAR is 20. No height limit.
Sub 2315 Valdez St; 2330 Webster St.
008-0668-04, 009-07
Date of Value
235
61,988
15-Dec-14
Triangular
D-BV-2
Unentitled vacant site proposed for 235 units in 7 story structure with on-site parking. FAR = 3.79. Max units/acre
= 484, Proposed units/acre = 165
Scale 1 : 37,500
TN
0
MN (13.8E)
1" = 3,125.0 ft
mi
km
Page 31.
Sale One; 1900 Broadway, Oakland, is located in the downtown Central Business
District of Oakland, and consists of three adjacent parcels including corner
site improved with dilapidated four-story masonry office building (+/-36,00
sf) which will be rehabbed as part of the project. Costs to retaining and
rehabbing structure are considered equivalent to cost to replace, but
retention provides some leverage in planning process. Buyer has scaled back
previously conceived project to a 24-story residential tower with ground
floor commercial space.
Location is adjacent to 19th Street BART station.
The location is considered comparable to the subject overall.
.
Sale Two; 4700-4770 Telegraph Ave, Oakland, is located in the Temescal
District of Oakland at the intersections of Telegraph Avenue and 48th Street,
and consists of a corner site improved with residences providing carrier
income. It was entitled before the recession, and was purchased, along with
Sale Three & Five by a party intending to completely redevelop the site as
approved. The location is inferior to the subjects location.
Development
density and FAR are both inferior.
Sale Three; 4801 Shattuck Ave, Oakland, is a corner site, located in the
Temescal District near Sale Two, which also occupies a corner site and has
the benefit of existing improvements providing some carrier income.
Its
location is inferior as is its development density, compared to the subject.
This property will be developed with residential units only.
Sale Four; 5175 Broadway, Oakland, is a vacant corner site entitled for
development of 28 condominium units. Its location is at the southerly end of
the Rockridge district near the intersections of College Avenue, Broadway and
51st Street. This location is superior to most of the comparables, but still
inferior to the subject. It is across Broadway from the Rockridge Center, a
soon to be redeveloped major community shopping center. Density is lower than
the subject.
Sale Five; 522-532 20th Street, Oakland, is located in the revitalized uptown
district north of the Central Business District of Oakland and is a mid-block
rectangular site previously approved for development with a six-story
residential building with 19 units. It is currently operating as a similar
pay surface parking lot with NOI of $55,200. The site size is much smaller,
and the development density is higher compared to the subject. The mid-block
configuration is inferior. The location is rated slightly inferior. This sale
is not adjusted for previous approvals, and is not considered an immediate
development site, since new approvals must be sought.
Page 32.
adjusted,
to
reflect
significant
Page 33.
Conditions of Sale
No adjustments warranted, except for Comparable 8 which is adjusted downward
for its status as a listing.
Immediate Expenditures
No adjustments warranted.
Market Conditions (Time)
As discussed previously, market participants have observed factors including
lease rates, availability of financing, and consumer behavior leading them to
conclude that there have been increases in land values as evidenced by sale
of development sites. Anecdotal evidence supports the application of modest
price adjustments averaging between 0% and 1% per month. We have concluded
that an adjustment is realistic for all the transactions considered here, and
have applied a rate equating to 6% per year.
Location
Locational factors include visibility, accessibility, and concentration of
compatible and complementary uses. Adjustments were made to account for all
the influences that vary between the comparables and the subject. The subject
property is superior to most of the comparables except for One Seven and
Eight which have CBD settings, which are comparable in appeal to proximity to
the Kaiser Center Office District
Size and Scale
A uniform adjustment is applied to all of the comparables to reflect
economies of scale inherent in improvements larger (or smaller) in size
compared to the subject.
Construction Costs
This comparative factor takes into account the difference in costs between
Type 1 and Type 5 construction. High rise development is approximately 25%
more costly per ~
' than standard four to seven story wood (or lightweight
concrete) frame over podium construction techniques due to additional costs
for required fire and life safety features. Sale One is adjusted for the
added costs of rehabbing a substantial existing structure.
Configuration and Shape
The utility of the subject and comparables varies depending on access and
street frontage. This affects both the ease of development and exposure to
light and air, particularly in residential projects. Sales Five and Seven are
adjusted up for inferior non-corner sites.
Page 34.
Entitlements
Entitlement costs of processing applications and developing technical and
architectural specifications equate to approximately 25%-30% of land costs
for approved sites. In addition, there is the time value of money expended
during what can be a lengthy process, The time/cost of entitlements is likely
to be mitigated in the case of the subject properties.
Sales Two, Three,
Four and Six are adjusted downwards for this component of value.
1)
The comparable sale data and adjustments are summarized in the accompanying
spreadsheet for $/Unit and $/'
~ analyses. Sales One, Three and Six are given
most emphasis due to their greater similarity to the subject in development
density and location.\
Summary of Adjustments to Data
Comparable No.
Address
Subject
2315 Valdez
St; 2330
Webster St.
1900
4700-4770 4801 Shattuck
Broadway Telegraph Ave, Ave, Oakland
Oakland
1200 Ashby
Avenue,
Berkeley
378 11th
Street,
Oakland
1225
Webster
Street
133
Planned Units
235
294
51
44
28
82
98
111
165
250
113
128
96
483
124
483
483
12/15/2014
8/1/14
7/30/13
7/30/13
7/26/13
4/29/14
5/31/13
11/7/14
9/1/14
$4,611,500
$15,685
$3,600,000
$70,588
$2,660,000
$60,455
$2,300,000
$82,143
$1,180,000
$14,390
$5,105,000 $1,500,000
$52,092
$13,514
$2,200,000
$16,541
0
$4,611,500
0
$4,611,500
0
$4,611,500
0
$3,600,000
0
$3,600,000
0
$3,600,000
0
$3,600,000
8%
$3,896,852
$76,409
10%
-11%
-12%
0%
0%
-25%
-5%
-43%
$43,670
0
$2,660,000
0
$2,660,000
0
$2,660,000
0
$2,660,000
8%
$2,879,341
$65,440
10%
-8%
-12%
0%
0%
-25%
0%
-35%
$42,457
0
$2,300,000
0
$2,300,000
0
$2,300,000
0
$2,300,000
8%
$2,491,164
$88,970
5%
-15%
-13%
0%
0%
-25%
0%
-48%
$46,345
0
$1,180,000
0
$1,180,000
0
$1,180,000
0
0
$5,105,000 $1,500,000
0
0
$5,105,000 $1,500,000
0
0
$5,105,000 $1,500,000
0
$2,200,000
0
$2,200,000
-$110,000
$2,090,000
$1,180,000
4%
$1,224,492
$14,933
5%
67%
-10%
0%
5%
0%
0%
67%
$24,995
$5,105,000 $1,500,000
9%
1%
$5,576,166 $1,509,344
$56,900
$13,598
15%
0%
-9%
67%
-9%
-8%
0%
-25%
0%
5%
-25%
0%
0%
0%
-28%
39%
$41,241
$18,933
$2,090,000
2%
$2,125,975
$15,985
0%
67%
-7%
-25%
0%
0%
0%
36%
$21,682
$8,225,000
(rounded)
Sale Date:
Price
Price/Unit
Adjustments to Data
Rights Appraised
Adjusted Price
Financing Terms
Adjusted Price
Conditions of Sale
Adjusted Price
Immediate Expenditures
Adjusted Price
Time:
0.5%
Current Cash Equiv. Price
Adjusted Price/Unit
Location
Zoning/Density
Scale
Const Costs
Configuration/Shape
Entitlements
Improvements
Subtototal:
Adjusted $/Unit
Mean $/Unit
Max $/Unit
Min $/Unit
Variance mx/mn
Average 1,3,6
Concluded Index
$4,611,500
2%
$4,714,314
$16,035
0%
18%
4%
15%
0%
0%
0%
37%
$21,910
$32,654
$46,345
$18,933
2.45
$35,203
$35,000
Page 35.
2315 Valdez
St; 2330
Webster St.
1900
4700-4770 4801 Shattuck
Broadway Telegraph Ave, Ave, Oakland
Oakland
1200 Ashby
Avenue,
Berkeley
Price Per SF
8
61,988
40,650
19,950
14,934
12,833
7,405
34,412
10,000
165
250
113
128
96
483
124
483
483
FAR
3.8
4.5
2.7
2.0
2.8
2.0
2.2
10.0
20.0
5/31/13
Sale Date:
12/15/2014
Price
Price/SF ($/SF):
Adjustments to Data
Rights Appraised
Adjusted Price
Financing Terms
Adjusted Price
Conditions of Sale
Adjusted Price
Immediate Expenditures
Adjusted Price
Time:
0.5%
Current Cash Equiv. Price
Adjusted Price/SF
Location
Zoning FAR
Size:
Const Costs
Configuration/Shape
Entitlements
Improvements
Subtototal:
Adjusted $/sf
Mean $/sf
Max $/sf
Min $/sf
Variance mx/mn
Average 1,2,4
Mean Excl Max/Min
Concluded Index
12,000
8/1/14
7/30/13
7/30/13
7/26/13
4/29/14
11/7/14
9/1/14
$4,611,500
$113
$3,600,000
$180
$2,660,000
$178
$2,300,000
$179
$1,180,000
$159
$5,105,000 $1,500,000
$148
$150
$2,200,000
$183
0
$4,611,500
0
$4,611,500
0
$4,611,500
0
$3,600,000
0
$3,600,000
0
$3,600,000
0
$3,600,000
8%
$3,896,852
$195
10%
10%
-10%
0%
0%
-25%
-5%
-20%
$156
0
$2,660,000
0
$2,660,000
0
$2,660,000
0
$2,660,000
8%
$2,879,341
$193
10%
17%
-11%
0%
0%
-25%
0%
-10%
$174
0
$2,300,000
0
$2,300,000
0
$2,300,000
0
$2,300,000
8%
$2,491,164
$194
5%
10%
-12%
0%
0%
-25%
0%
-22%
$151
0
$1,180,000
0
$1,180,000
0
$1,180,000
0
0
$5,105,000 $1,500,000
0
0
$5,105,000 $1,500,000
0
0
$5,105,000 $1,500,000
0
$2,200,000
0
$2,200,000
-$100,000
$2,100,000
$1,180,000
4%
$1,224,492
$165
5%
17%
-13%
0%
5%
0%
0%
13%
$187
$5,105,000 $1,500,000
9%
1%
$5,576,166 $1,509,344
$162
$151
15%
0%
15%
0%
-7%
-13%
0%
-25%
0%
5%
-25%
0%
0%
0%
-2%
-33%
$159
$102
$2,100,000
2%
$2,136,148
$178
0%
0%
-12%
-25%
0%
0%
0%
-37%
$112
$8,990,000
(rounded)
$4,611,500
2%
$4,714,314
$116
0%
-7%
-5%
15%
5%
0%
0%
8%
$125
$146
$187
$102
1.84
$144
$136
$145
C.
Page 36.
The parking lease and agreement favoring the owner of the Ordway Building
will extend, respectively for a) approximately 54 years from the date of
value; and, b) in perpetuity. They, in total, require that up to 242 parking
stalls be available on the subject property, for use by tenants in that
building, at market rents.
The impact of this lease upon the property is
illustrated by the approved project, that includes 242 extra parking spaces
within underground levels of the parking garage, which would not be built
were it not for the lease requirements.
Therefore, the measure of the value impact of this encumbrance on the
property can be based on the cost to develop the required parking (in this
case, an underground garage), less the capitalized value of the net income
stream generated from parking revenues for these spaces.
1)
Costs
The costs to develop the spaces are based on published data from various
sources
including
Marshall
Swift
&
Co.,
Carl
Walker
Parking,
the
International Parking Institute, and various published articles on this
topic.
Above ground parking structure costs have been averaging $20,000/stall
nationally to $22,000 (San Francisco) according to Carl Walker Consulting.
Indices published by this firm show a 24% increase in costs over the last six
years in this region. Costs for underground garages have historically been
40% to 50% higher.
Currently, prices for concrete and steel have begun to
increase appreciably due to accelerated construction activity in the region.
Parking Garage Costs
Marshall & Swift; Section 14, Page 36
Stalls
242
SF per Stall
350
Cost Per Stall
$14,500
Base Cost
$3,509,000.00
Adjust for Underground
40.00%
Adjusted Base Cost
$4,912,600.00
Add Fire Sprinklers
$211,750
Total Base Cost
$5,124,350
Current Multiplier
1.03
Local Multplier
1.36
$7,178,189
Total Adjusted Base Co
Total Cost Per Stall
$29,662
Page 37.
We have used a total cost factor of $30,000 per stall based on an average
325 sf per stall, and assuming cost savings due to economies of scale since
the 242 stalls considered here are part of much larger parking garage
component of the subject project.
Thus the total costs (includes both direct and
required spaces at the subject is estimated to be:
242 stalls
2)
$30,000/stall
indirect
costs)
for
the
$7,260,000.
To calculate net operating income generated by the subject the occupancy and
revenue history of the existing parking lot is used as a basis for generating
a forecast assuming 242 garage spaces. Garage stalls in the immediate
vicinity of the subject rent for $12 per day, a 71% increment over open
parking. Our forecast monthly revenue for the subject (as is) as of the date
of valuation is $17,000.
When this is adjusted for garage occupancy, the
forecast rate is $29,000 per month.
This equates to $348,000 per year for
220 stalls. A prorata extrapolation to 242 stalls is:
$348,000
x
242/220* (110%)
* actual spaces in existing lot
$382,800.
Page 38.
3)
$8,600,000
5%
$430,000
$7,260,000
$7,690,000
Ad Valorem Taxes
1.4376%
Estimated Assessments
($110,551)
($5,000)
$382,800
Less Taxes
-115,551
$267,249
Capitalized @
7.50%
$3,560,000
Page 39.
The impact on land value of the requirements for maintenance of 200 public
parking spaces on the subject property is illustrated in the following table.
Site Value
$8,600,000
$3,560,000
Subtotal
$12,160,000
Cost of Parking
($7,260,000)
As is Value
$4,900,000
We conclude that the value of the subject property, assuming that the current
parking lease remains in force (1a), is:
$4,900,000
9.
A.
Introduction
Page 40.
The scope of work for this appraisal involves estimation of the market rental
value of the subject property assuming it to be encumbered with 66 year
lease. This length of term is consistent with the prospective development of
the property with an intensive land use consisting of a public parking
facility and a multi-unit residential and retail project.
The market data
for land leases which forms the basis for our estimate pertains largely to
vacant land, and real estate developments of lower intensity compared to the
subject. Therefore, adjustments for these factors were necessary to properly
reflect the risk characteristics of the subject. In addition, the assumption
of the appraisal of a 66 year term is much longer than those examples
analyzed herein.
While shorter term leases will include some type of rent
escalation clause, this is key element with much longer term agreements,
since trends in real estate values cannot be forecast accurately beyond five
to ten years due to numerous contingencies affecting supply and demand.
Therefore, consistent with the definition of market rental value cited
herein, our estimate will assume prudent consideration of both landlord and
tenant with respect to rent escalation clauses.
In our opinion, current
market opinion on this topic would mandate annual escalation based on change
in the CPI, but at a minimum of 2.5% and a maximum of 3.5%. Further, landlord
and tenant should consider the common practice of seeking to establish a new
base rent by negotiation and/or arbitration every 10 to 15 years. The basic
terms of the lease would be NNN, with the tenant paying all property
operating expenses pertaining to the land and improvements which constitute
the premises.
B.
Page 41.
Research into lease rates for vacant land used to forecast market rent for
the subject property yielded several pertinent examples which are discussed
and analyzed below:
1.
This is 3.42 acre paved parking lot leased to a airport parking operator.
The property sold in April of 2010 for $2,880,000 subject to a lease to an
operator at a monthly rent of $31,000/month NNN indicating a lease rate of
12%. The lease was due to expire in April of 2012, and the property was
recently offered on the market at a monthly rent of $24,000. Several offers
to lease were received from other similar operators, but the current tenant
has offered to match any offer and enter into a new lease beginning 5/12/12
for 10 years at monthly rent, reportedly near or at the asking amount. The
property is currently offered for sale at a price of $3,500,000 which the
listing broker opined would be unrealistically high, especially since parking
patronage relative to the airport has declined. It is known that flights to
Hawaii from Oakland were off 50% of the level in 2007-2008.
Based on my
opinion that a realistic market value for the land as of the commencement of
this new lease would be $3,100,000, this example indicates a lease rate of
5.76%
The tenancy of this property (for a surface use) is less reliable than the
proposed utilization of the subject (which would be intensively improved)
though the general location can be seen as superior. Further, the owner of
the subject, would likely have superior credit. The term is relatively short
compared to that of the subject property.
2.
This is 9.06 acre site, which sold in December of 1999 for a price of
$2,250,000 while subject to lease commencing in August of 1994 at a start
rent of $14,897.52 per month on a modified net basis.
Rent increases were
cumulative every five years at 4% per year, and base year taxes were paid by
the tenant, GE Capital, who used the site as a construction trailer storage
facility. When all expenses were accounted for over the term of the lease,
and the rental income stream was analyzed in terms of level payments, this
transaction indicates a lease rate of return of 7.36%, as of the date of
sale of the property.
Page 42.
3.
This a 18.63 acre site, paved and fenced for automobile (airport) parking,
which was purchased by Parking Company of America (PCCA) in April of 2008 for
$13,000,000 by exercise of a lease option specifying this price.
PCCA had
entered into a lease four years earlier which at an annual rent (after some
concessions in Year One) of $1,188,795. The terms are NNN. As of the date of
transfer, the sale price (applied to annual rent converted to level payments)
indicates a lease rate of 9.34%
This property is in an inferior location at some distance from the airport
(from a parking standpoint, and though this area is developed as an
industrial/office park, it has historically exhibited much higher vacancy
that that competing districts in East Oakland and the CBD. The tenant was a
national firm. The site was improved for surface parking.
4.
This is a land lease to a fast food franchise which dates from 2005, The
property is a 0.92 acre site near the intersection of Hegenberger Road and
I-880 in Oakland. The property was developed with a Panda Express quick
service restaurant, and the initial base rent was $125,000 per year. The
lease featured a 20 year term with four 5-year options, with rental increases
of 10% every five years.
Based on analysis of the sale of the leased fee
occurring in 2005, at a price of $2,085,000, the equivalent level rent for
the initial term indicates a lease rate of 5.58%. As of the date of the
sale, market conditions were very expansive and widely regarded to include
similar risk compared to current market circumstances.
5.
This is an irregular site fronting on 98th Avenue near the interchange with I880, which was leased to an investor for a 30 year term. The tenant improved
the property with several strip commercial buildings housing five national
tenants including Chevron, Wendys, Subway, Starbucks, and Organic Choice.
The leasehold is for sale inclusive of all sub-tenancies for $4,250,000,
Page 43.
Improvements:
This a very influential factor insofar as improvements of
greater intensity (representing a higher proportion of overall market value)
will indicate lower risk to the fee holder, and require lower overall
returns.
These adjustments are summarized in the table on the following page.
Page 44.
No
Location
1
250
Hegenberger
Road,
Oakland
2
21201 Cabot
Blvd,
Hayward
3
8350 Pardee
Drive,
Oakland
4
8333
Oakport
Street,
Oakland
5
191 98th
Avenue,
Oakland
Rate
Market Conditions
Term
Escalation
Location
Tenant
Improvements
Sum
Adjusted
5.76%
5%
10%
-5%
10%
5%
-10%
15%
6.62%
7.36%
0%
5%
0%
10%
0%
-10%
5%
7.73%
9.79%
0%
5%
0%
10%
5%
-10%
10%
10.77%
5.58%
5%
5%
5%
5%
0%
-5%
15%
6.41%
10.47%
5%
5%
10%
5%
-10%
-5%
10%
11.52%
Mean Unadjusted
Mean Adjusted
Mean 1,2,3
Mean 4,5
7.79%
8.61%
8.37%
8.97%
I conclude that the applicable land lease rate for the subject property,
assuming periodic rental rate adjustments based on changes in the CPI, and a
66 year terms, is 8.5% of the fee value of the land as of the date of
valuation.
This rate selection reflects consideration of the very low interest rate
environment which has been prevalent of over five years, and is not forecast
to change significantly in the near future. These historically low rates of
return on bonds and other interest bearing financial instruments has
influenced rates of return downward for income producing equities and all
types of real estate.
C.
Page 45.
Conclusions
Applying the concluded lease rate to the estimated fee values of the subject
site, as estimated through application of the Sales Comparison Approach,
annual rental amounts as follows:
1b)
2b)
8.5%
8.5%
These rental value estimates are calculated to represent the first 12 months
of rental payments under a NNN lease (tenant pays all property operating
expenses) over a lease term of 66 years inclusive of reasonable market
oriented rent escalation provisions.
10.
Page 46.
CONCLUSIONS
The overall property value indications resulting from this appraisal analysis
are as follows:
Fee Value:
Market Data Comparison Approach:
1a) Assuming Parking Lease in Force:
2a) Assuming Parking Lease Not in Force:
$4,900,000
$8,600,000
The sales comparison approach surveyed the local market for transactions
involving parcels of land, which could be analyzed to support a credible
opinion for the subject property.
Currently market conditions are strong
from development sites in Oakland, and a reasonable number of pertinent
transcations were available to support our estimate of land value.
The existing parking lease encumbrance has a significant impact on the
property value. This is estimated by deducting the economic benefits of
additional required parking spaces from the anticipated costs to create the
200 underground garage spaces.
There was sufficient current cost data and
parking lot operations records to arrive at reasonable conclusions regarding
these cost/benefit factors.
The income capitalization approach was used both for analyzing the
contributory value of the existing parking lease, as well as determining an
appropriate return on the fee value of the property in each case, to indicate
a market rental return to the land.
Page 47.
While the data analyzed required complex analysis, we have confidence that
the underlying methodology is sound, and conclude that the market value of
the property, as of December 15, 2014 is:
Premise
Property Rights
Value
Leased Fee
$5,250,000
Sub-Leasehold
Fee Simple
$8,600,000
Leasehold
416,500
731,000
The above value conclusion assumes marketing and exposure periods of nine to
twelve months.
11.
Page 48.
CERTIFICATION
Page 49.
__________________________
Peter D. Overton, MAI
Principal Appraiser
Certified General RE Appraiser
California State License No. AG002631
__________________________
_
Michael Yovino-Young, MAI, ASA, FRICS
Supervisory Appraiser
Certified General Real RE Appraiser
California State License No. AG002841
PRELIMINARY REPORT
Issued for the sole use of:
HYPERLINKED
CITY OF OAKLAND
250 FRANK OGAWA PLAZA, SUITE 4314
OAKLAND, CA 94612
1117008865-JM
Julie Massey
(510) 272-1121
Property Address:
In response to the above referenced application for a policy of title insurance, OLD REPUBLIC TITLE COMPANY hereby reports
that it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance describing the land and
the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or
encumbrance not shown or referred to as an Exception below or not excluded from coverage pursuant to the printed Schedules,
conditions and Stipulations of said policy forms.
The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said Policy or Policies are set forth in
Exhibit A attached. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth
in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive
remedy of the parties. Limitations on Covered Risks applicable to the Homeowners Policy of Title Insurance which establish a
Deductible Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in Exhibit A. Copies of the Policy
forms should be read. They are available from the office which issued this report.
Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Exhibit A of this
report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered
under the terms of the title insurance policy and should be carefully considered.
It is important to note that this preliminary report is not a written representation as to the condition of title and may
not list all liens, defects, and encumbrances affecting title to the land.
This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title
insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance,
a Binder or Commitment should be requested.
CLTA Standard Coverage Policy -1990; AND ALTA Loan Policy - 2006. A specific request
should be made if another form or additional coverage is desired.
The estate or interest in the land hereinafter described or referred or covered by this Report is:
Fee
Title to said estate or interest at the date hereof is vested in:
PARCEL ONE:
Lots 4, 5, 12, 13 and 14, and a portion of Lots 3, 6, 9, 10 and 11, in Block 2256, "Map of the Subdivision of
Blocks 2256, 2257 and 2258, Valdez Tract", filed April 8, 1878, in Book 5 of Maps, Page 15, Alameda County
Records, described as follows:
Beginning at a point on the Eastern line of Webster Street, distant thereon Northerly 140.75 feet from the
Northern line of 23rd formerly Locust Street; and running thence along said line of Webster Street Northerly
136 feet; thence at right angles Easterly 125 feet; thence at right angles Northerly 42.25 feet; thence at right
angles Easterly 125 feet to the Western line of Valdez Street; thence along the last named line Southerly
159.50 feet; thence at right angles Westerly 125 feet; thence at right angles Southerly 18.75 feet; thence at
right angles Westerly 125 feet to the point of beginning.
EXCEPTING THEREFROM the Northern 32.75 feet of the Western 25 feet of Lot 12 and the Southern 9.5 feet
of the Eastern 25 feet of Lot 9, as conveyed to John R. Torchio, et ux, by Deed recorded October 31, 1975,
Reel 4151, Image 617, Official Records.
PARCEL TWO:
Lots 2 and 3, Block 2256, Map of the "Subdivision of Blocks 2256, 2257 and 2258 of the Valdez Tract", filed
April 8, 1878, Map Book 5, Page 15, Alameda County Records.
EXCEPTING THEREFROM that portion of Lot 3 lying within the above described Parcel One.
APN:
008-0668-009-07
Page 2 of 9 Pages
ORT 3158-B
1.
Taxes and assessments, general and special, for the fiscal year 2009 - 2010, as follows:
Assessor's Parcel No
Bill No.
Code No.
1st Installment
2nd Installment
Land Value
Imp. Value
2.
:
:
:
:
:
:
:
008-0668-009-07
021029-00
17-022
$67,117.24
$67,117.24
$8,875,844.00
$122,313.00
Said property having been declared tax defaulted for non-payment of delinquent taxes for
the fiscal year 2007 - 2008, and subsequent delinquencies
Amount to redeem by October 31, 2009, for the above stated year (and subsequent years, if
any) is $145,361.44.
and by November 30, 2009
and by December 31, 2009
Default No.
Assessors Parcel No.
:
:
: is $147,240.79
: is $149,120.14
694582
008-0668-009-07
3.
The lien of supplemental taxes, if any, assessed pursuant to the provisions of Section 75, et
seq., of the Revenue and Taxation Code of the State of California.
4.
5.
The fact that the land lies within the boundaries of the Central District Urban Renewal
Redevelopment Project Area, as disclosed by various documents of record.
Page 3 of 9 Pages
ORT 3158-B
6.
:
:
Dated
Recorded
:
:
Returned to
Address
Memorandum of Agreement
Kaiser Center Properties, a California general partnership and Ordway
Associates, an Illinois general partnership
December 30, 1983
December 30, 1983 in Official Records under Recorder's Serial
Number 83-244960
10100 Santa Monica Boulevard, Los Angeles, CA 90067
The interest of Ordway Associates under said Agreement was purportedly assigned
to Prentiss Properties Acquisition Partners, L.P., a Delaware limited partnership, by
Document
Recorded
The interest of Kaiser Center Properties under said Agreement was purportedly
assigned to Upper Lake Merritt, LLC, a Delaware limited liability company, by
Document
Recorded
Page 4 of 9 Pages
ORT 3158-B
7.
:
:
Dated
Recorded
:
:
Returned to
Address
Parking Agreement
Westmark Lake Merritt, Inc., a Delaware corporation and Westmark
Labor Temple, Inc., a Delaware corporation
August 29, 2000
August 30, 2000 in Official Records under Recorder's Serial Number
2000260956
725 South Figueroa Street Suite 1200, Los Angeles, CA 90017-5443
The interest of Westmark Labor Temple, Inc. in said Agreement was purportedly
assigned to Upper Lake Merritt, LLC, by Instrument
Recorded
Information provided to the Company indicates that the interest of Upper Lake
Merritt, LLC was assigned to Lake Shore Partners II, LLC, a California limited liability
company by merger.
8.
:
:
:
:
Which Among
Other Things
Provides
Returned to
Address
Page 5 of 9 Pages
ORT 3158-B
9.
10.
11.
Executed By
Dated
Recorded
:
:
:
Returned to
Address
By
Recorded
Returned to
Address
Any insufficiency of the proceedings leading up to and including the recording of the
trustees deed
From
To
Dated
Recorded
:
:
:
:
12.
Any claim or allegation to set aside the trustee's deed dated September 10, 2009 from First
American Title Insurance Company, as Trustee to Oakland PPD Return, LLC, recorded
September 18, 2009 in Official Records under Recorder's Serial Number 2009300097, in
bankruptcy proceedings filed by or on behalf of PPD Merritt I, LLC, a Delaware limited
liability company within two years from the foreclosure sale date of September 10, 2009.
13.
Any adverse matter arising from failure to comply with the property maintenance provisions
of Civil Code section 2929.3
Page 6 of 9 Pages
ORT 3158-B
14.
15.
16.
Prior to the issuance of any policy of title insurance, the Company will require the following
with respect to Oakland PPD Return, LLC, a California Limited Liability Company:
17.
1.
2.
3.
The requirement that this Company be provided with an opportunity to inspect the land (the
Company reserves the right to make additional exceptions and/or requirements upon
completion of its inspection).
A.
The applicable rate(s) for the policy(s) being offered by this report or commitment appears
to be section(s) to be determined.
Page 7 of 9 Pages
ORT 3158-B
B.
The above numbered report (including any supplements or amendments thereto) is hereby
modified and/or supplemented to reflect the following additional items relating to the
issuance of an American Land Title Association loan form policy:
NONE
NOTE: Our investigation has been completed and there is located on said land a commercial
building known as 2330 Webster Street, Oakland, CA 94612.
The ALTA loan policy, when issued, will contain the CLTA 100 Endorsement and 116 series
Endorsement.
Unless shown elsewhere in the body of this report, there appear of record no transfers or
agreements to transfer the land described herein within the last three years prior to the date
hereof, except as follows:
Trustee's Deed Upon Sale and Bill of Sale executed by First American Title Insurance
Company, as Trustee to Oakland PPD Return, LLC recorded September 18, 2009 in Official
Records under Recorder's Serial Number 2009300097.
Page 8 of 9 Pages
ORT 3158-B
40,650
Irregular
Street Frontage:
Probable Use:
PROPERTY COMMENTS:
Multi Residential
294
No. Units:
Three adjacent parcels including corner site improved with dilapidated
four-story masonry office building (+/-36,00 sf) which will be
rehabbed as part of the project. Costs to retaining and rehabbing
structure are considered equivalent to cost to replace, but retention
provides some leverage in planning process. Buyer has scaled back
previously conceived project to a 24 story residential tower with
ground floor commercial space. Location is adjacent to 19th Street
BART station.
Zoning:
Topography:
ANALYSIS OF TRANSACTION:
Effective Sale Price:
UNIT INDICES:
$/SF:
$/UNIT:
Data Source:
$4,611,500
$113.44
$15,685
Listing Broker Rich Martini, Costar
ASSESSOR'S NUMBER:
DOCUMENT NUMBER:
STATUS:
LISTING PRICE:
LISTING DATE:
4700 Telegraph LLc
BUYER:
61.1% cash down, pvRIGHTS TRANSFERRED:
Purchase for development as entitled
013-1150-017-01,019-02
238205
Sold
n/a
n/a
Ngi 4700 Telegraph LLC
Fee Simple
PROPERTY DESCRIPTION:
Site Area:
Shape:
19,950
Rectangular
Street Frontage:
Probable Use:
PROPERTY COMMENTS:
51
Multi-unit ResidentNo. Units:
Entitled site for 51 residential units and 5,050 sf of retail
space. Total GBA will 55,015 sf. FAR = 2.7 Units per acre = 113.
Existing residential units provide carrier income prior to
construction.
Zoning:
Topography:
CN-2
Level
ANALYSIS OF TRANSACTION:
013-1162-009-01,009-02,010
263381
Closed
n/a
n/a
NGI 4801 Shattuck
Fee Simple
PROPERTY DESCRIPTION:
Site Area:
Shape:
14,934
Irregular
Street Frontage:
Probable Use:
PROPERTY COMMENTS:
Zoning:
Topography:
ANALYSIS OF TRANSACTION:
Effective Sale Price: $2,660,000
UNIT INDICES:
$178.12
$/SF:
$60,455
$/UNIT:
Data Source:
LoopNet, MetroScan, Broker Todd Vitzthum 925-951-5022
R-50/R-70
Level
014-1241-005-01
261177
Sold
Lc Merrill Gardens
Fee Simple
PROPERTY DESCRIPTION:
Site Area:
Shape:
Street Frontage:
Probable Use:
PROPERTY COMMENTS:
12,833
Zoning:
CC-2
Rectangular
Topography:
Level
116.67 feet Broadway; 110 feet Coronado Ave
Multi-unit ResidentiNo. Units:
28
Rectangular corner parcel entitled for development with 28 unit
condominium project with total GBA of 35,325 sf of which 2,995
sf would be ground floor retail. FAR = 2.75; Units/Acre = 96
ANALYSIS OF TRANSACTION:
Effective Sale Price:
UNIT INDICES:
$/SF:
$/Unit:
$2,300,000
$179.23
$82,142.86
Data Source:
Costar, Broker; John Kovaleski 408-282-3844
ASSESSOR'S NUMBER:
DOCUMENT NUMBER:
STATUS:
LISTING PRICE:
LISTING DATE:
BUYER:
RIGHTS TRANSFERRED:
008-0645-006.007
101680
Closed
Undisclosed
3/1/2012
522-532 20th St LLP
Fee Simple
PROPERTY DESCRIPTION:
Site Area:
Shape:
Street Frontage:
7,405
CBD-X
Zoning:
Rectangular
Level
Topography:
74.67 feet on 20th Street (Thomas Berkeley Way)
Probable Use:
Multi-Family/Retail
PROPERTY COMMENTS:
Recent sale for an un-entitled site zoned CBD-X (Height Area 6), which
allows for a maximum density of 484 units/acre, maximum F.A.R. of
20.0 to 1.0, no building height limit (minimum building height of
45'), and a 100% site coverage. The price/unit figure above is
reflective of the maximum allowable density on the site (82 units
based on 484 units/acre). Site is rectangular and level with all offsites. Currently being utilized as a parking lot.
$1,180,000
Data Source:
No. Units:
82
ANALYSIS OF TRANSACTION:
$159.35
$14,390
053-1627-022,039,037
ASSESSOR'S NUMBER:
196679
DOCUMENT NUMBER:
Closed
STATUS:
n/a
LISTING PRICE:
n/a
LISTING DATE:
1200 Ashby LLC
BUYER:
Fee Simple
RIGHTS TRANSFERRED:
site with all cash financing
34,412
C-1
Zoning:
Irregular
Level
Topography:
Dual corner frontage: 240 feet San Pablo Avenue, 125 feet Ashby Avenue, 150 feet
Carrison St.
Probable Use:
Multi-Unit Residential
PROPERTY COMMENTS:
Vacant site entitled for development of 98 residential units (66,300sf) and 9,392
sf of retail space. FAR = 2.2. Units per acre = 124. Location at major
interesection in West Berkeley.
No. Units:
ANALYSIS OF TRANSACTION:
Effective Sale Price:
UNIT INDICES:
$/SF:
$/UNIT:
Data Source:
$5,105,000
$148.35
$52,092
MetroScan, Costar; Broker Todd Vitzhum 925-951-5022
98
SALE COMMENTS:
PROPERTY DESCRIPTION:
Site Area:
Shape:
Zoning:
10,000
Topography:
Rectantgular
100 feet on 11th Street
CBD-C
Level
Probable Use:
Hotel
111
PROPERTY COMMENTS:
Street Frontage:
No. Units:
ANALYSIS OF TRANSACTION:
Effective Sale Price: $1,500,000
UNIT INDICES:
$/SF:
$150.00
$/UNIT:
$13,514
LoopNet, MetroScan, Broker, Larry Westland 510-622-8466
Data Source:
Zoning:
12,000
CBD-C; Height Area 7
Topography:
Rectangular
Level
100 feet on Webster Street, 120 feet on 13th Street
Street Frontage:
Probable Use:
PROPERTY COMMENTS:
PROFESSIONAL QUALIFICATIONS
PETER D. OVERTON
PROFESSIONAL CREDENTIALS
Certified General Real Estate Appraiser (License No. AG002631)
Recertified to 08/12/16 OREA, State of California
Designated Member of the Appraisal Institute
MAI; Appraisal Institute #11878
Qualified as Expert Witness - Alameda County Superior Court
EDUCATION
Department of Architecture, MIT, Cambridge, Massachusetts, 1964-65.
B.A. Knox College, Galesburg, Illinois, 1965-1969
Professional Courses Completed:
AIREA - Real Estate Appraisal Principles Course 1A1
AIREA - Basic Valuation Procedures Course 1A2
AI - Capitalization; Theory & Techniques 1B_A
AI - Capitalization; Theory & Techniques 1B_B
AI - Case studies in Real Estate Valuation 2-1
AI - Report Writing & Valuation Analysis 540
AI - Eminent Domain Seminar
IRWA - Easement Valuation
IRWA - Legal Aspects of Easements
AI - Detrimental Conditions
McKissock - Regression Analysis
AI - USPAP 410-420
AI - Highest and Best Use / Market Analysis
1986
1987
1991
1991
1992
1994
1995
1996
1996
1998
1999
2000
2005
EXPERIENCE
All types of appraisal assignments in the San Francisco Bay Area
with an emphasis on commercial, industrial, office, complex
residential, and special purpose properties.
Senior Appraiser
Yovino-Young Incorporated, Berkeley, California
PROFESSIONAL QUALIFICATIONS
TAMARA SPOKANE, MAI
PROFESSIONAL CREDITENTIALS
Certified General Real Estate Appraiser, Licensed by the State of California Office of Real Estate
Appraisers (OREA), License AG 032515 Expiration 11/25/2015
Designated Member of the Appraisal Institute, MAI Designation
2012
1995-1999
Allied Business School: Appraisal Principles, USPAP Courses, Real Estate Principles,
Real Estate Practice, Real Estate Finance
2003-2005
Appraisal Institute:
EXPERIENCE
Yovino-Young, Inc.
2005-Present
Commercial Real Estate Appraiser
Commercial Real Estate Assignments in San Francisco Bay Area including property types: retail,
industrial, office, hospitality and mixed-use. Specializes in appraisal of Bed and Breakfast Inns,
boutique lodging properties, live/work conversion projects, condominium projects, apartments and
special purpose properties.
AppraisalHub
2004-2005
Commercial Appraiser Trainee
Assisted the in-house MAI in commercial appraisal assignments including apartment, Industrial, Retail
and Office properties. Assisted in the research, analysis, inspection and in the written report.
2003-2004
Regional Appraiser Manager
Managed 1,000+ residential assignments and 15+ commercial assignments per month. Managed team
of 100+ appraisers throughout the states of California, Hawaii, and Florida
2001-2003
Appraiser Panel Manager
Managed all types of appraisal assignments is San Francisco Bay Area with an emphasis on complex
residential assignments, 2-4 unit properties and live/work loft condominiums.