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HomeMy WebLinkAboutItem 09_COUNCIL READING FILE_c_Agreement with Maino Properties for 1020 & 1080 Marsh StreetAPPRAISAL REPORT ADDENDUM OF THE MAINO PROPERTIES CITY OF SAN LUIS OBISPO MARSH STREET BRIDGE PROJECT 1020 AND 1080 MARSH STREET SAN LUIS OBISPO, CALIFORNIA 93401 Prepared for CITY OF SAN LUIS OBISPO `/o MS. CATHY SPRINGFORD HAMNER, JEWELL & ASSOCIATES 530 PAULDING CIRCLE ARROYO GRANDE, CALIFORNIA 93420 As Of DATE OF VALUE: OCTOBER 1, 2019 DATE OF REPORT: OCTOBER 21, 2019 SCHENBERGER, TAYLOR, McCORMICK AND JECKER, INC. REAL ESTATE APPRAISERS AND CONSULTANTS 1306 HIGUERA STREET SAN LUIS OBISPO, CALIFORNIA 93401-3122 SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. SCHENBERCER, TAYLOR, McCORMICK & JECKER I N C O R P O R A T E Real Estate Appraisers, Consultants and Investment Analysts Founded in 1972 October 21, 2019 City of San Luis Obispo Ms. Cathy Springford Hamner, Jewell & Associates 530 Paulding Circle Arroyo Grande, California 93420 Dear Ms. Springford: Introduction Emeriti Richard L. Schenberger, ARA Gerald C. Taylor, SREA, MAI Jerald W. Jecker, SRA D Principals of the Firm Rollie A. McCormick, MAI Todd O. Murphy, MAI, ARA Senior Appraise Max R. Knupper Associates Brad DeNike Lisa Schott As you requested, I have completed an updated inspection, analysis, and current fair market value conclusion of the proposed temporary construction easement (TCE) interest in a portion of that real property commonly known as the: Maino Properties City of San Luis Obispo Marsh Street Bridge Project 1020 and 1080 Marsh Street San Luis Obispo, California 93401 Enclosed is our restricted appraisal report addendum showing significant details of this investigation, together with analyses and exhibits. These conclusions are based on an analysis of the subject properties and the available market data. The purpose of this restricted appraisal report addendum is to determine the fair mar- ket value (as defined in the California Code of Civil Procedure, Section 1263.320). The intended use of this report is for potential acquisition of a TCE interest in a portion of the subject properties. The intended users are the client (City of San Luis Obispo Hamner, Jewell & Associates). No other uses or users are intended by the appraiser. This appraisal was developed in conformance with the Uniform Standards of Pro- fessional Appraisal Practice (USPAP) and the Uniform Relocation Assistance and Real Property Acquisition Act of 1970, amended January 2005 (Uniform Act). www.stmjappraisers.com 1306 HIGUERA STREET • SAN LUIS OBISPO • CALIFORNIA • 93401 9 (805) 544-2472 • FAX (805) 544-4396 Restricted Appraisal Report Addendum This restricted appraisal report is considered an addendum to and wholly inclusive of our original appraisal report dated September 27, 2017, with an effective date of value as of August 23, 2017 (attached by reference). Therefore, the use of this restricted ap- praisal report addendum is only possible in conjunction with our original appraisal report. This report relies on all assumptions, conditions, and definitions included in our orig- inal appraisal report. This is a restricted appraisal report addendum and its use is limited to the client and the intended users of our original report. This report cannot be relied upon by anyone but the client and the original intended users, and the conclusions set forth in this report may not be properly understood without additional information in the appraiser's work file. This restricted appraisal report addendum was developed in conformance with the Uniform Standards of Professional Appraisal Practice (USPAP) and contains 29 pages (including attachments). Assumptions and Conditions of Appraisal The reader is referred to the Assumptions and Conditions of Appraisal section of the origi- nal report wherein all significant assumptions. and conditions are detailed. Any significant variation from the assumptions and conditions of appraisal may war- rant a reappraisal of the subject properties. Property Overview Update There have been no significant changes to the subject properties since our original ap- praisal report. Proposed Marsh Street Bridge Project Changes The proposed project involves replacing the existing Marsh Street Bridge, which was originally built in 1909. There are two notable changes from the original project. The project was originally scheduled to run from roughly April through November 2018, conditions permitting. The revised schedule features an increase from 6 months to a targeted 12 -month construction period from November 1, 2019, to November 1, 2020. However, the parking lot on APN 002-435-003 will require an additional 2 months, which will run until December 31, 2020, or 14 months. In addition, the original project included a parking replacement plan utilizing the Marsh Street Parking Structure. However, the parking replacement option is no longer ii SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. part of the proposed project. As such, no offset for the market value of replacement parking is included in this restricted appraisal report addendum. Proposed Real Propertx Acquisition Overview Permanent Easement Acquisition There will be no permanent easements required for this project. TCE Acquisition There are no significant identified changes from the original project. The proposed TCE will encumber 15,810 square feet and will affect San Luis Obispo Creek, parking lot, and landscaping for the contiguous office buildings. A total of 18 parking spaces will be unavailable during construction. The TCE acquisition is summarized in the following table: Marsh Street Bridge Project Summary Maino Properties The affected parking lot improvements will be replaced with a new paved and striped lot upon completion of the project. Highest and Best Use and TCE Valuation The highest and best use of the subject property is to pursue development consistent with downtown high-density land uses. The current use as a surface parking lot is considered to be an interim use and not the ultimate highest and best use of the prop- erty. The development planning/processing period would likely be at least 12 months. Given the short-term nature of the TCE at 12 and 14 months, this would appear to fall within the normal pre -development planning period and not unduly delaying potential development of the properties. TCE Valuation Methodology TCE interests are typically valued on a temporary rental basis. There are two potential approaches to value the proposed TCE. Market rent is estimated either based on existing or comparable surface -use rentals (such as the subject parking lot) and/or on an annual return to the underlying land value. iii SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. Parcel Area TCE Areas (Square Feet) Affected (Square Parcel (APN) Feet) Parking Lot Creek Landscaping Total 002-435-023 12,621 6,879 5,742 0 12,621 002-435-024 44,018 0 1,426 1,763 3,189 Total 56,639 6,879 7,168 1,763 15,810 The affected parking lot improvements will be replaced with a new paved and striped lot upon completion of the project. Highest and Best Use and TCE Valuation The highest and best use of the subject property is to pursue development consistent with downtown high-density land uses. The current use as a surface parking lot is considered to be an interim use and not the ultimate highest and best use of the prop- erty. The development planning/processing period would likely be at least 12 months. Given the short-term nature of the TCE at 12 and 14 months, this would appear to fall within the normal pre -development planning period and not unduly delaying potential development of the properties. TCE Valuation Methodology TCE interests are typically valued on a temporary rental basis. There are two potential approaches to value the proposed TCE. Market rent is estimated either based on existing or comparable surface -use rentals (such as the subject parking lot) and/or on an annual return to the underlying land value. iii SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. Parking Rental Analysis Market Rent Estimate In this case, since there is an existing parking lot, the TCE can readily be measured by the market rental rates for parking spaces. The parking rents are considered to be a valid measurement for the temporary use of the property. Based on information provid- ed by the property owner representative, Mr. Tom Maino, the subject spaces are occu- pied by tenants of the Merrill Lynch Building (Merrill Lynch, New Times magazine, and Voita West). There is not a specific freestanding rental rate for these spaces, but Mr. Maino previously indicated an identified rent of roughly $100 per space per month as of 2017. An investigation into current parking space rents in downtown San Luis Obispo indicate examples of space rents of $120 to $150 per space. This includes a parking lot on Monterey Street, plus another on Higuera Street. The current market rent for the subject parking lot is concluded to be $150 per space. This equals 18 parking spaces x $150 per space x 14 months = $37,800. Rate of Return Valuation This valuation is based on land sales involving downtown commercial land properties. The subject property is valued based on the best available land sales and an annual rate of return is applied. The proposed TCE will encumber usable land, as well as privately owned land located within the creek. The land valuation is allocated between land within the creek corridor, as well as usable land above the creek bank. Over the past few years there have been a number of sale transactions reflecting poten- tial -development properties located in downtown San Luis Obispo. Market conditions have continued to be strong, and the availability of properties for sale have been quite scarce. The original prices for vacant properties and/or those with minimal contrib- utory improvement value reflected a price range of $91.49 to $164.47 per square foot. The land located directly northwest of the subject property on Higuera Street is subject to a long-term ground lease and was acquired June 2016 for $138.36 per square foot (Land Sale 7). A total of three downtown land sales have occurred since the original appraisal. These are identified as Land Sales 6a (resale), 9, and 10. These are considered to be compete- tive properties with the subject property. The updated land sales reflect sale prices of $180.39, $192.46, and $171.46 per square foot, respectively. Land Sale 6a sold including entitlements for a new mixed-use project. At $180.39 per square foot, this resale reflects a dramatic increase from the prior sale price of $88.00 per square foot. This indicates an annual price change of 23.84% compounded. This was substantially affected by the project approvals, although it is notable that the buyer plans to redesign and resubmit a new proposed project. Overall, this sale is ranked slightly superior due to approvals. iv SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. Land Sale 9 is a prime, corner location featuring an existing building that was re- modeled after the sale; it sold for $192.46 per square foot. With a corner orientation and an existing building, this property is ranked overall superior to the subject site. Land Sale 10 is a large, corner property that is located slightly outside of the prime pe- destrian traffic area, but is within the direction of downtown growth toward upper Monterey Street. This property sold February 2019 for $171.46 per square foot; it is ranked inferior to the subject site. Based on the current market conditions and sales of properties in downtown San Luis Obispo, the usable (non -creek) portion of the subject properties reflects a current market value of $175 per s uare foot. There is very little available information to document the contributory value of creek land in downtown San Luis Obispo. After analyzing sales of open space properties and interviewing various knowledgeable brokers and real estate specialists, the market value of the creek land was previously concluded at $50 per square foot. Based on sale price trends of downtown land, the updated market value of the creek land is con- cluded at 55 12er square foot. Historical rates of return on ground leases were much higher; but, over the last few years, ground lease rates have declined fairly substantially. Generally, long-term, good - quality, ground -leased properties are selling in the range of a 4.0% to 5.0% annual rate of return. It is notable that the land underneath the existing retail/office development located directly northwest of the subject property sold June 2016 reflecting an annual rate of return of 4.8%. However, this land sale was acquired by the overlying building owner and is considered to represent a somewhat below-market rate of return. Based on a short-term rental arrangement and disruption, a somewhat higher rate of return of 6.0% is concluded in this case. Based on the market value conclusion of $175 per square foot for the usable parking lot area and a 6% annual return, the market value of the TCE equals 6,879 x $175 x 1.17 x 6% = $84,509. Valuation Reconciliation Based on the market rent as a parking lot, the market value of the TCE equals $37,800, which reflects the interim parking lot use. Based on the market rent as a rate of return reflecting the highest and best use of the property, the market value of the TCE equals $84,509. In consideration of the requirement for valuation based on the highest and best use of the property, and not necessarily an interim use, the market value conclusion for the usable parking lot area is $84,509. ►v SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. Existing Parking Lot, Wall, and Landscape Improvements The existing parking lot appears to be in fair condition and nearing the end of its eco- nomic life. As such, it is considered to reflect no contributory value as part of the pro- posed TCE acquisition. The existing brick and concrete wall located west of the creek will be protected as part of the project. There is a small portion of landscaped area that will also be affected. This particular area is minimally landscaped, except for several mature trees. The mature trees will be protected in place, with no anticipated impact to the landscape improvements. Therefore, these improvements are not valued as part of the proposed TCE acquisition. Severance Damages The proposed Marsh Street Bridge Project and TCE acquisition will not affect the high- est and best use of the remainder real property. There will be a temporary disruption and loss of parking. Overall, there are no clearly identifiable severance damages result- ing from the proposed TCE and/or completion of the project in the manner proposed. Benefits As part of this project, the City of San Luis Obispo will provide a new replacement parking lot, including finished asphalt and striped parking spaces. This is considered to be a benefit to the subject property considered in the "after" condition. However, as there are no identified severance damages, these benefits are not applicable as an offset. Otherwise, there are no clearly identifiable benefits resulting from the proposed TCE and/or completion of the project in the manner proposed. Fair Market Value Conclusions As a result of the investigation and analysis, it is my opinion and conclusion that the current fair market value (as defined by the Code of Civil Procedure, Section 1263.320) of the proposed TCE interest in the subject property, as of October 1, 2019, is sum- marized as follows: vi SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. Marsh Street Bridge Project 1020 and 1080 Marsh Street Proposed Acquisition Valuation TCE Acquisition Affected Area (SF) Market Value per SF Percent - of -Fee Impact Period (Years) Market Value Usable Land - Parking Lot 6,879 $175 6% 1.17 $84,509 Usable Land - Landscape 1,763 175 6% 1.00 18,512 Creek Area 5,742 55 6% 1.00 18,949 Creek Area 1,426 55 6% 1.00 4,706 Severance Damages - - - - 0 Benefits - - - - 0 Subtotal 15,810 $126,676 Less Replacement Parking Off -Set 0 Total 15,810 $126,676 Rounded $127,000 Optional 1 -Month TCE Extensions As requested by the client, the market value of an optional 1 -month TCE extension was also estimated. Based on the conclusion of $84,509 for a 14 -month TCE (or $6,036 per month), plus $42,167 for the 12 -month TCE (or $3,514 per month), this equals $9,550 per month. Market Value Conclusions As a result of this investigation and analysis, it is the appraiser's opinion and conclusion that the current fair market value of the proposed WE interest in the subject property, as of October 1, 2019, is: One Hundred Twenty -Seven Thousand Dollars ($127,000) Each optional 1 -month TCE period results in additional fair market value of: Nine Thousand Five Hundred Fifty Dollars ($9,550) vii SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. Thank you for this opportunity to be of service. Please contact me with any questions at (805) 544-2472, Extension 15. Res fully submitted, t � a - Todd O. Murphy, MAI ARA Principal of the Firm California License #AG002286 Expires February 14, 2020 TOM:JA:jsi:aml:sjd Attachments viii SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. Attachments 1. Updated Subject Photographs; October 1, 2019 2. Updated Comparable Downtown San Luis Obispo Land Sales; Photographs, Maps, and Summary Table 3. Certification SCHENBERCER, TAYLOR, McCORMICK & JECKER, INC. Updated Subject Photographs (Photographs Taken by Todd O. Murphy, MAI, ARA, on October 1, 2019) Attachment 1-1 SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. Viewing Northeast Along Marsh Street; Subject Property at Left Viewing Northwest Over Subject Property Parking Lot Attachment 1-2 SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. _ -ter. - � •, or TPF--ZIW7�- 777 74 Updated Comparable Downtown San Luis Obispo Land Sales Location Map, Photographs, Maps, and Summary Table Attachment 2-1 SCHENBERCER, TAYLOR, McCORMICK & JECKER, INC. r. } � .J i. Land Sale 1 Marsh Street Gateway Project 578 and 579 Marsh Street and 581 Higuera Street, San Luis Obispo i1 r+rcue ST. 7 003-51 iaw • tyl�'� PACIFIC ..• 1 � L��•�1 �iiti i a iaw • tyl�'� PACIFIC ..• 1 � L��•�1 �iiti i 55 01 52 r E s� •Y Ir -11•' iaw • tyl�'� PACIFIC ..• 1 1 F 1 L J I n'� 1 2 1 x ' U I GOVT. OFFICE C Wa m S Z CITY d}' SIN LUIS OBISPO nn Yu n rAc rAca rul OLD MISSfON ORChARO & HIGUERA TRACT R M. Bk. B , P 37 PISMO CITY OF SAN LUIS OBOSPO, R.M. Bk A , Pg. I68 g 61 T Sr •sA Attachment 2-2 SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. 1 � L��•�1 �iiti i 1 1 F 1 L J I n'� 1 2 1 x ' U I GOVT. OFFICE C Wa m S Z CITY d}' SIN LUIS OBISPO nn Yu n rAc rAca rul OLD MISSfON ORChARO & HIGUERA TRACT R M. Bk. B , P 37 PISMO CITY OF SAN LUIS OBOSPO, R.M. Bk A , Pg. I68 g 61 T Sr •sA Attachment 2-2 SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. 1 � i 55 01 /i r E 1 1 F 1 L J I n'� 1 2 1 x ' U I GOVT. OFFICE C Wa m S Z CITY d}' SIN LUIS OBISPO nn Yu n rAc rAca rul OLD MISSfON ORChARO & HIGUERA TRACT R M. Bk. B , P 37 PISMO CITY OF SAN LUIS OBOSPO, R.M. Bk A , Pg. I68 g 61 T Sr •sA Attachment 2-2 SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. Land Sale 2 1101 Monterey Street, San Luis Obispo 002-43 MONTEREY 4 - _ at' .. !a✓ ST. i 23r>rr cr /1 j !aV ff,. r ' 1. i m - _ r ��. P •T �, nuc � ®� � _ � e ry4.]D' ; •1' a',. & , ' HIGUER4 - _- 1 x w ' � s' 3 yl'1• r 1 - V.4 2e -.f9 • `3 J �2J � - � rp r�i •F � " � � el v�i , o�Y I 0 22J °®12 1 y1 1 p �I + - u h.� • i"� Ess E�.rc. ` r•1 1 al lR �ryR Ir fa �armt raav . 0 - - 1- - - _ Iv ! i•L _ - �I 0 Tf _J• + , u M!ARSH R.M. A -fie �n " m 4� MISSION VINEYARD TRACT, R.M. Bk.A Pg. 143. CITY OF SAN LUIS OBISPO r �s lu,. n aen,4su a3w CENTRALti ADDIRON, Bk. 3 OF DEEDS, Pg. 442, rw r9�Orr of "a"r-"r ^^�° 41�• BUCKLEY TRACT, R.M. BM. A , Pg. 46.r oGx�'wi Attachment 2-3 SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. 0 e MARSH Land Sales 3/3a 667 Marsh Street, San Luis Obispo 4 St' PACIFIC +o. s 003-52 AR L .� S T. rn - • to • - - - + [ix >' . s -- - t +x 2 140 r1 _ ogo..fv_•, ,a Zf --'T4 i6 a II lee T +' 6'•' + � ..ST. 0 o_ x U do PISM 46 � - - CON00 PIAN. GARDEN CREEN O.R. DOC. NQ 2011-050166 PARCEL MAP, P.M. Bk 74 Pg. 32-34.—"a" • TOWN OF SAN LUIS OBISPO, R.M. Bk. A , Pg. 168. MURRAYS ADDITION TO SAN LUIS OBISPO, R.M. Bk. A , Pg. 145, v wls r« n wNlMa rc' MURRAY k CHURCHS ADDITION, R.M. Bk. A , Pg. 144. ar .suvArnr r...ays ha. MISSION VINEYARD TRACT, R.M. Bk. A , Pg. 143. Attachment 2-4 101 n O L,a+� I. II 10•�,- C:� �2J 0 a C 50 ST, CITY OF SAN LUIS OBISPO A.SSESSOR's NAP C00NiY SIN O'S OBISPO, G BOOK 00.5 PAGE 52 0 o_ x U do PISM 46 � - - CON00 PIAN. GARDEN CREEN O.R. DOC. NQ 2011-050166 PARCEL MAP, P.M. Bk 74 Pg. 32-34.—"a" • TOWN OF SAN LUIS OBISPO, R.M. Bk. A , Pg. 168. MURRAYS ADDITION TO SAN LUIS OBISPO, R.M. Bk. A , Pg. 145, v wls r« n wNlMa rc' MURRAY k CHURCHS ADDITION, R.M. Bk. A , Pg. 144. ar .suvArnr r...ays ha. MISSION VINEYARD TRACT, R.M. Bk. A , Pg. 143. Attachment 2-4 101 �2J 0 a 50 ST, CITY OF SAN LUIS OBISPO A.SSESSOR's NAP C00NiY SIN O'S OBISPO, G BOOK 00.5 PAGE 52 OF SCHENBERCER, TAYLOR, McCORMICK & JECKER, INC. Land Sale 4 1135 Santa Rosa Street, San Luis Obispo �9 Jy�• ti9 . ` •1 �, 9 t M1 a 22 r .0 a-s.s l ' 435 �` zb s \1 '• iso • , r e s� rmnsorrs a ' 002-435 eo C x e re n CITY OF SAN LUIS OBISPO a n.s r,P n vrrro.mo rrr I MISSION VINEYARD TRACT, R M Bk. A . Pg. 143. in'* COUNI of "' '�'^ ^'•"� BUCKLEY TRACT, R.M. Bk. A . P% 46. 43C5 Attachment 2-5 SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. Land Sale 5 1144 Higuera Street, San Luis Obispo 002-43 - - J MONTEREY ST - �21 '431 2J 30 e �y a436 '1:'RilA1 . HIGUERq � N .r.• �5 L� r 0 - 10 22 - - Q a 437 I.O M;. * P"; ® rr r r 1 � p �I n=r _ x. x -•r -Mr � Ae ' — MARSH ' L + { 1. wl • • I- �--JN1l_, __ - 1 —� R.M. A-]6 ..,,.ry vy rd.b ST 443 MISSION VINEYARD TRACT, R.M. Bk.A Pg. 143. CRY OF SAN LUIS OBISPO CENTRAL ADDITION, Bk. 3 OF DEEDS, Pg. 442, MW° 'FIlN of BUCKLEY TRACT, R.M. Bk. A , Pg. 46. Attachment 2-6 SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. Land Sales 6/6a 1185 Monterey Street, San Luis Obispo 11-2J P MONTEREY ST FT Rµ HIGUERA ! 22 CITY OF SAN LUIS OBISPO Rrs rur a rwvwa ru CENTRAL ADDITION, Bk. 3 OF DEEDS, P9 442 uSESSOR'S — COUNTY O� ,n � 1IAf 4•rU ri � � [ _ _ r i In ie Jt F4 !1 OOKu o'oz°aACEd'+s°A' V J r II MARSH . ru• _ - ■� wr I • I �J 002-43 30 . V7 �A r I O O Attachment 2-7 SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. -- MISSION VINEYARD TRACT, R.M. Bk.A , Pg. 143. CITY OF SAN LUIS OBISPO Rrs rur a rwvwa ru CENTRAL ADDITION, Bk. 3 OF DEEDS, P9 442 uSESSOR'S — COUNTY O� ,n AW rlr wnr¢e[s BUCKLEY TRACT, R.M. Bk. A Pg. 46. OOKu o'oz°aACEd'+s°A' V J Attachment 2-7 SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. 4w Land Sale 7 1065 Higuera Street, San Luis Obispo �33) 5� ti9 s� A 002-435 CITY OF SAN LUIS OBISPO MISSION VINEYARD TRACT, R.M. Bk A , Pg. 143. MIP r^�8IS� CA CO NN OF BUCKLEY TRACT, R.M. Bk. A , Pg. 46. pp] PAGE X75 Attachment 2-8 SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. MILL. t;7 SLO &I T IIALL I 4 ^g PALM 0 0 O 7 Land Sale 8 1041 Mill Street, San Luis Obispo 8 'yll I I� 25 11lllf yeas rty PS't{rif PLa y's! ierw S'�14 ifr , R MONTEREY L3 J n-'rrr nn.o � r.v�o ror �.4Y1q(Nt il}pgff V4T. S T. ST. s 002-32 L I F �• N TII/ 422J CRY OF SAN LUIS OBISPO Asscssoa's " cT" or BOOK 00'WS2 PAS E632A Attachment 2-9 SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. 1 I COUNTY � ------- COURTHOUSE io � 24- r31 - ---I---- - i:f,el -- o I � � i IWO I N •r , R MONTEREY L3 J n-'rrr nn.o � r.v�o ror �.4Y1q(Nt il}pgff V4T. S T. ST. s 002-32 L I F �• N TII/ 422J CRY OF SAN LUIS OBISPO Asscssoa's " cT" or BOOK 00'WS2 PAS E632A Attachment 2-9 SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. Land Sale 9 1115 Higuera Street, San Luis Obispo 002-4J5 L. l C CITY OF SAN LUIS OBISPO �ws u+r K rw�un-o rov XMISSIOND TRACT, R.M. Bk. A , Pg. 143. �' u�+nof Y TRACT, R.M. Bk. A , Pg. 46.ae acs rw;[ us Attachment 2-10 SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. AL `. ......... I - - I ................. Land Sale 10 1166 Higuera Street, San Luis Obispo �• ® 002-43 - - CD MONTEREY - - - - - - , ' v 23- 7 ! r 435 s, liar •' i.i. _„ - �rlq � � L99 •� ✓. $A I a • HICUERA XON ST r'1 - i z r h ' 432 y 11 22 •: ' _ Q 437 Aa 9 KC['i f.Nl. I+:n:L •,vr ���g � ii-0,roef MARSH �I R.N. A -Id raw • !�•� Nf MISSION VINEYARD TRACT, R.M. Bk.A Pg. 143. CITY OF SAN LUIS OBISPO 'y s TMs rxnnrae rae CENTRAL ADDITION, Bk. 3 OF DEEDS, Pg. 442. IMM couurr OF q J9¢Yi nwb� per. BUCKLEY TRACT, R.M. Bk. A , Pg. 46. Attachment 2-11 SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. Updated Comparable Downtown San Luis Obispo Land Sales Summary Table Price per Land Land Size Square Foot Sale Sale Date Sale Price (Square Feet) Zoning (Land Only) 1 10-13 to 9-14 $3,530,000 38,582± C -D $ 91.49 Marsh Street Gateway Project, 578 and 590 Marsh Street and 581 Higuera Street; APNs 003-511-013, -024, and -025; assemblage of 3 parcels to be redeveloped into a commercial/ residential mixed use; corner location at Marsh and Nipomo Streets, plus frontage on Higuera Street; Dennis Bullock Trust, et al., to Marsh & Nipomo Mixed Use LP, et al. (Document Nos. 2014-19095, et al.) 2 12-13 3,500,000 30,416± C-R 115.07 1101 Monterey Street; APN 002-436-011; Shell Station with premium 3 -street frontage (Santa Rosa, Monterey, and Higuera Streets); unusual sale terms; acquired for potential redevelopment; 1101 Monterey St LLC to Pedp Inc. (Document No. 2013-70637) 3 7-14 800,000 7,904±N C -D 101.21N 3a 4-15 1,300,000 7,904±N C -D 164.47N 667 Marsh Street; APN 003-521-009; vacant, corner parcel; part of Wells Fargo Bank parking lot; ad- jacent owner disputed parking agreement, which resulted in the seller discounting the price some- what; Scribner to MFI Ltd (Document No. 2014-26471); property later resold; MFI Ltd to Linnenbach (Document No. 2015-16522) 4 10-14 2,200,000 11,300± C -D 130.09 1135 Santa Rosa Street; APN 002-435-015; high -traffic corner at Marsh Street; bank branch building built in 1981, plus on-site parking lot; contributory value of existing building estimated at $730,000, leaving $1,470,000 to the land; eventually completely rebuilt building; Cliff Branch to 33 Tons LLC (Document No. 2014-41032) 5 12-15 2,310,000 16,421 C-R 140.67 1144 Higuera Street; APN 002-436-009; level, mid -block parcel with older structural improvements, which are considered to be interim structural improvements with nominal contributory value; Blum Living Trust to 1144 Higuera Investments (Document No. 2015-63452) 6 2-16 1,100,000 12,499 C-R 88.00 6a 6-19 2,200,000 12,196 C-R 180.39 1185 Monterey Street; APN 002-436-007; corner of Monterey and Toro Streets; level parcel with older structural improvements, which are considered to be interim with nominal contributory value; West- side Auto Parts to Ricardo Court LLC (Document No. 2016-6904); relisted for sale in September 2019 with an approved 3 -story, mixed-use development; relisting information shows a slightly smaller parcel size than the original sale; relisted for sale at $2,495,000 before selling for $2,200,000 N Net Attachment 2-12 SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. Updated Comparable Downtown San Luis Obispo Land Sales Summary Table, continued Price per Land Land Size Square Foot Sale Sale Date Sale Price (Square Feet) Zoning (Land Only) 7 6-16 $1,749,500 12,645 C -D -H $138.36 1065 Higuera Street; APN 002-435-003; generally level site, but slopes toward San Luis Obispo Creek to the rear; 100 feet of frontage along Higuera Street; shares an access alley to the rear, providing a connection to Santa Rosa Street; this transaction involves the purchase of a ground -leased property by the tenant; improved with an 8,000 -square -foot office building built in 1989, plus a remodeled, 1,440 -square -foot, commercial -retail structure; these were leasehold improvements developed under a ground lease that began in 1985, with an original term of 40 years, plus a 20 -year option to extend, ending in 2045; reported ground rent at the time of sale was $7,263 per month, triple net, developing an overall rate of .0498 for the buyout of the ground lease; Mark Smith Trust to JMW Management and Hough Family Trust (Document No. 2015-25322) 8 3-17 790,000 7,000 O 112.86 1041 Mill Street; APN 002-323-023; old residence located near courthouse in Office zone; mid -block location with a rear alley; no significant contributory improvement value; San Luis Obispo Council of Governments to Dean Teixeira (Document No. 2017-9437) 9 7-18 2,400,000 12,470 C-R 192.46 1115 Higuera Street; APN 002-435-004; located on comer of Higuera and Santa Rosa Streets, with very good exposure; existing retail building was used as a restaurant, but had been vacant; buyer acquired and substantially remodeled the building into bank branch and leased to a bank; some con- tributory building value; Lutz Family Trust to 1115 Santa Rosa LLC (Document No. 2018-28307) 10 2-19 3,550,000 20,704 C-R 171.46 1166 Higuera Street; APNs 002-436-008 and -005; level site located on the corner of Higuera and Toro Streets; private sale; acquired by the adjacent landowner; Stanford Clinton Jr. to Nicholas J. Tomp- kins (Document No. 2019-6146) Attachment 2-13 SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. Certification Attachment 3-1 SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. Certification I certify that, to the best of my knowledge and belief: • the statements of fact contained in this report are true and correct. • I have made a personal inspection of the property that is the subject of this report. • 1 have no present or prospective interest in the property that is the subject of this report, and I 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. • 1 have performed appraisal services regarding the property that is the subject of this report within the 3 year period immediately preceding acceptance of this assignment. • my compensation for completing this assignment is not contingent upon the develop- ment 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. • my engagement in this assignment was not contingent upon developing or reporting predetermined results. ■ the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased pro- fessional analyses, opinions, conclusions, and recommendations. • no one provided significant real property appraisal or appraisal consulting assistance to the person signing this certification. • the reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute and the American Society of Farm Managers and Rural Appraisers (ASFMRA). • the reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. ■ the use of this report is subject to the requirements of the Appraisal Institute and ASFMRA relating to review by its duly authorized representatives. • as of the date of this report, I, Todd O. Murphy, MAI, ARA, have completed the con- tinuing education program of the Appraisal Institute and ASFMRA. rOJ" '). 4D, Todd O. Murphy, MAI, RA California License #AG 002286 Expires February 14, 2020 Attachment 3-2 SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC.