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APPRAISAL

Labor Temple Lot


2315 Valdez Street; 2330 Webster Street
Oakland, California
January 8, 2015

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)

To: James Golde


Re: 2315 Valdez Street;
2330 Webster Street

1/8/15
Page 2.

2) That the above referenced encumbrances on the property for parking


purposes, referred in several recordings under Exception 6 in a current
preliminary title report on the property, are invalid and not in force
as described in the title report.
This Appraisal Report as defined and regulated in Standard Rule 2-2 of the
Uniform Standards of Professional Appraisal Practice (USPAP), effective
January 1, 2014.
The appraisal has been performed in accordance with
standards and requirements of USPAP, and the Code of Professional Ethics of
the Appraisal Institute.
Based on this investigation and analyses, it is our opinion that the market
value of the property, as of December 15, 2014, and under the two valuation
premises described above, subject to the Assumptions and Limiting Conditions
contained in Section 4 of this report, is as follows:
Premise

Property Rights

Value

1a) Market Value; Parking Lease in Force

Leased Fee

$4,900,000

1b) Rental Value (per annum); Lease in Force

Sub-Leasehold

2a) Market Value; Parking Lease Not in Force:

Fee Simple

$8,600,000

2b) Rental Value (per annum);Lease Not in Force

Leasehold

514,500

731,000

Attached as Exhibit C are statements of the professional qualifications of


the appraisers.
Thank you for providing us this opportunity to be of
service.
Very truly yours,
YOVINO-YOUNG, INCORPORATED

__________________________
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

Subject Property: looking


across intersection of
Valdez and 23rd Streets

Looking easterly from


Valdez Street at
northerly end of
property.

Valdez Street looking


northerly

Yovino-Young Inc.
Reference No. 140715

Subject Property
2315 Valdez Street, 2330
Webster Street, Oakland,
California

Valdez St looking
southerly

23rd Street looking


easterly

23rd Street looking


westerly

Yovino-Young Inc.
Reference No. 140715

Subject Property
2315 Valdez Street, 2330
Webster Street, Oakland,
California

Webster Street looking


northerly

Webster Street looking


southerly

Yovino-Young Inc.
Reference No. 140715

Reference No. 070129

Page 2

TABLE OF CONTENTS
1.
2.
3.
4.

SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS.............................1


SCOPE OF APPRAISAL ASSIGNMENT..........................................3
IDENTIFICATION OF THE PROPERTY.........................................4
LIMITING CONDITIONS AND ASSUMPTIONS....................................5
A. General
B. As Is Condition
C. Special Limitations: Only Properties with Public Access
D. Special Limitations: Possible Impairment By Hazardous
Contamination
E. Reservation of Authorship Rights
F. Confidentiality Statement
G. Limitations on Obligation to Perform Services
H. Special Conditions
5. DEFINITIONS............................................................9
6. DESCRIPTIVE DATA......................................................11
A. San Francisco Bay Region
B. Alameda and Contra Costa Counties
D. City of Oakland
E. Subject Property Location
F. Site Description
G. Zoning and Entitlements
H. Proposed Project
I. Property History
7. HIGHEST AND BEST USE..................................................26
8. SALES COMPARISON APPROACH.............................................29
A. Market Conditions
B. Market Study
C. Value Impact of Parking Encumbrances
9. MARKET RENTAL RATE FOR SUBJECT ASSUMING LONG TERM LEASE...............40
A. Introduction
B. Land Lease Rates
C. Rental Value Conclusions
10. CONCLUSIONS..........................................................46
11. CERTIFICATION........................................................49
ADDENDA

Exhibit A
Exhibit B
Exhibit B

Legal Description
Comparable Land Sales
Professional Qualifications of the Appraisers

Reference No. 140715

1.

Page 1.

SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS

Subject Property:

2315 Valdez Street;


Oakland,
Alameda
Consists
of
two

2330 Webster Street,


County,
California.
adjacent
properties

encompassing 1.42 acres, or 61,988 sf


Real Property Interests
Appraised:

Fee Simple,
Leasehold

Type of Value:

Market Value, Market Rental Value

Effective Date of Appraisal:


Date of Report:

December 15, 2014


January 8, 2015

Occupancy and Use:

Vehicle Parking

Property History:

The most
occurred

Leased

recent

Fee,

Leasehold,

transfers

of

Sub-

property

(A) 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 prior owner, PPD
Merritt LLC, had 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, and;
(B) On 4/13/10, when it was acquired by the
Redevelopment Agency.
On 1/30/2012, the
property transferred from the Agency to the
City of Oakland as Successor Agency.
The property is not currently offered for
sale on the open market, but the City of
Oakland has entered into an Exclusive
Negotiating Agreement with TDP-Webster LLC.

Highest and Best Use:

Continued

occupancy

and

use

as

paved

Reference No. 140715

Page 2.

vehicle
parking
until
an
approved
development project can be implemented.
Marketing & Exposure Time:

Nine to twelve months

Market Value Indications


Sales Comparison Approach:
Premise 1)
Premise 2)

$4,900,000
$8,600,000

Market Rental Value Indications


Sales Comparison Approach:
Premise 1)
Premise 2)

$
$

416,500
731,000

Concluded Market Value:


Premise 1)
Premise 2)

$4,900,000
$8,600,000

Concluded Market Rental Value


Premise 1)
Premise 2)

$
$

416,500
731,000

Reference No. 140715

2.

Page 3.

SCOPE OF APPRAISAL ASSIGNMENT

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:

To form an opinion of the market value, and the


market rental value, of the property.

Intended Use:

Assist client in a decision regarding the proposed


disposition by sale of the property to TDP-Webster,
LLC

Rights Appraised

Fee Simple, Leased Fee, Leasehold, Sub-Leasehold

Specific Assumptions:

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.
2) That the above referenced encumbrances on the
property for parking purpose, referred in several
recordings
under
Exception
6
in
a
current
preliminary title report on the property, are
invalid and not in force as described in the title
report.

Effective Date:

December 15, 2014

Valuation Methodology:

Sales Comparison Approach:


Applicable
Replacement Cost Approach:
Applicable to parking garage costs
Income Capitalization Approach:
Applicable to parking income capitalization.

Reference No. 140715

Extent of
Analysis:

Research

Report Type:

3.

Page 4.

&

Physical inspection and verification of land areas,


identification and analysis of applicable land use
controls (zoning), analysis of market conditions
relevant to the subject property, investigation into
relevant market sales of comparable properties, cost
factors for parking garage improvements, parking lot
rental data, and qualitative analysis of sales data
leading to conclusions supporting an estimate of
market value.
Appraisal Report (USPAP 2.2)

INDENTIFICATION OF THE PROPERTY

The property is identified as 2315 Valdez Street; 2330 Webster Street,


Oakland,
California.
It
is
further
known
as
the
Labor
Temple Lot. Additional factual data from publicly available sources is
summarized below:
Legal Description:
Owner of Record:
Flood Map Zone:

Seismic Zone:

Address
Parcel Number
Land
Improvements

See Exhibit A in Addenda


City of Oakland
The property is located in Flood Zone X, areas
determined to be outside the .2% chance floodplain,
on the Federal Emergency Management Agency, Flood
Insurance Rate Map 06001C0067G, dated 08/03/09.
The property is not within a Special Study Zone as
designated by the Alquist-Priolo Act

Assessments and Taxes 2014-2015


2315 Valdez St
2330 Webster St
008-0668-04
008-0668-009-07
$0.00
$0.00
$0.00
$0.00

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

Reference No. 140715

4.

LIMITING CONDITIONS AND ASSUMPTIONS

A.

General

Page 5.

This appraisal investigation and analysis is communicated in an Appraisal


Report, as defined and regulated under Standard Rule 2-2 of the Uniform
Standards of Professional Appraisal Practice (USPAP), effective January 1,
2014.
Extensive background data, reasoning and analyses developed in the
appraisal process for this assignment are not necessarily included in this
summary report. Supporting documentation is retained in the appraisal files of
Yovino-Young, Incorporated.
The information contained in this report is specific to the requirements of
the named client and for the intended use stated in this report.
The
appraiser is not responsible for the unauthorized use of this reporting
document by any third party unless prior consent is obtained.
The estimates of value and supporting conclusions presented in this appraisal
represent our personal, unbiased and professional analysis of the valuation
issues and objectives addressed in this assignment.
These opinions and
conclusions are subject to certain limiting conditions and assumptions as set
forth in this section of the report.
Except as may be set forth as the specific purpose of this study, or, as
special conditions stated elsewhere in this document, this appraisal is of an
assumed marketable, Leased Fee interest to the property, free of debt
obligations, liens, encumbrances, or any other restrictions affecting title,
ownership or use of the property or properties in question.
No
representation is made or implied as to the actual conditions of title,
ownership or encumbrances, or matters legal in nature.
Utility of the property is assumed to be restricted only by normal zoning,
publicized governmental laws and governmental controls, and its use under
responsible ownership and adequate management.
The appraiser does not survey the property. All statements describing parcel
boundaries, dimensions, topography, utilities, and other descriptive physical
information have been obtained from available official county maps and
records or references as otherwise identified.
The appraiser may recognize
the need for and recommend the employment of other experts, but will not
render an expert opinion which may require engineering expertise as to
structural conditions, soil composition, site stability or geotechnical
characteristics of the property.

Reference No. 140715

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

The property is appraised in


unless otherwise indicated
Special Conditions.
It is
conditions of the property,
more or less valuable.

C.

its as is condition as of the date of valuation


elsewhere in this report, or specified under
assumed that there are no hidden or unapparent
subsoil, or structures, which would render it

Special Limitations: Only Properties With Public Access

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.

Reference No. 140715

D.

Page 7.

Special Limitations: Possible Impairment By Hazardous Contamination

Unless otherwise stated in this report, the existence of hazardous


substances,
including,
without
limitation,
asbestos,
polychlorinated
biphenyls, petroleum products, urea formaldehyde, agricultural chemicals, or
other adverse environmental conditions which may or may not be present on the
property, were not identified to the appraiser, nor did the appraiser become
aware of such conditions during the appraiser's inspection.
The appraiser has no knowledge of the existence of such materials on or in
the property unless otherwise stated and is not qualified to test for such
substances or conditions. The presence of such hazardous materiels or
environmental conditions might effect the value of the property. Therefore,
the value estimate in this appraisal is predicated upon the assumption that
there is no such adverse conditions on, in or under the property, or in such
proximity thereto that it would cause a loss in value. No responsibility is
assumed for any such conditions, nor for any expertise or engineering
knowledge required to discover them. The client is urged to retain an expert
in the field of environmental assessment on real estate, if subsequent
investigation reveals their existence.

E.

Reservation of Authorship Rights

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

Reference No. 140715

Page 8.

Standards of Professional Appraisal Practice, and/or identified in the GrammLeach-Bliley Act of 1999.

G.

Limitations on Obligation to Perform Services

Submission of this appraisal constitutes full completion of the requested


service and does not obligate the author to any subsequent consultation,
services prerequisite to a legal action, or testimony in a deposition or
trial, unless specific arrangements are made prior to the rendering of such
services.

H.

Special Conditions

The appraisal considers the property under the following to premises:


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.
2) That the above referenced encumbrances on the property for parking
purpose, referred in several recordings under Exception 6 in a current
preliminary title report on the property, are invalid and not in force as
described in the title report.

Reference No. 140715

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.

buyer and seller are typically motivated;

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.

a reasonable time is allowed for exposure in the open market;

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.

Reference No. 140715

B.

Page 10.

MARKET RENTAL VALUE

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.

Lessee and lessor are typically motivated;

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.

a reasonable time is allowed for exposure in the open market;

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.

Reference No. 140715

6.

DESCRIPTIVE DATA

A.

San Francisco Bay Region

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:

Reference No. 140715

B.

Page 12.

Alameda and Contra Costa Counties

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

The City of Oakland is a large, economically diverse, and demographically


complex community, which encompasses approximately 78 square miles rising
from the east shore of San Francisco Bay to the crest of the East Bay hills.
The city has 19 miles of bay front coastline.
Oakland is the largest and
most established of the East Bay cities, and has a current estimated
population of over 400,000 people, (based on 2010 Census). It is the third
largest city in the Bay Area, and the eighth largest city in the state,
comprising about 27% of residents of Alameda County. Due to an economically
diverse population, median household income for Oakland is in the lower 50%
of East Bay communities at $51,700. The city benefits from immediate access
to rail, air, sea, freeway and bus service to all major employment and
residential centers of the vibrant Bay Area economy.
Historically, Oakland supported a large manufacturing base, which grew out of
the industrial development period during and after WWII.
Much of this
industrial infrastructure is now obsolete, and is slowly being converted to
more intensive uses, including industrial R&D, as well as office, residential
and retail.
Services now represent the predominant employment sector
category in Oakland; seven of the top 10 employers in the City are government
agencies, school districts, medical centers, or utility companies.
The
others include airlines operating out of Oakland International Airport.
Oakland has a labor force of 180,000, of which 60,000 workers are based in
the central business district.

DeLorme Street Atlas USA 2014

Residential Development Map


Downtown Oakland 2003-2014

Data use subject to license.

Scale 1 : 11,200

TN
0

DeLorme. DeLorme Street Atlas USA 2014.


www.delorme.com

MN (13.8E)

200

400
100

600
200

1" = 933.3 ft

800

1000
300

400

500

Data Zoom 14-2

ft
m

Reference No. 140715

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. .

According to the City's 2010 Comprehensive Annual Financial Report, the


top employers in the city are:
No.

Employer

# of Employees

Alameda County

Wells Fargo

5,862

Oakland Unified School District

5,704

City of Oakland

4,478

Cost Plus World Market

4,125

Kaiser Foundation Hospitals

3,105

Peralta Community College District

2,759

Safeway

2,692

Internal Revenue Service

2,500

Albertsons

2,209

10

10,374

Reference No. 140715

Page 14.

Economic Base, Employment and Income

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.

Reference No. 140715

D.

Page 15.

Subject Property Location

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.

Reference No. 140715

Page 16.

Looking Southerly over the Oakland CBD from the Subject Property

Subject

During the recession, almost no new construction of residential units was


undertaken while the existing oversupply of residential units in central
Oakland was gradually absorbed. The economic recovery has seen considerable
interest in moving forward with previously entitled projects, and in
conceiving of new initiatives.
In the subject neighborhood, an resurgence in business activity in the form
of new restaurants and innovative retail concepts has taken place. This not
only compliments existing office uses, but is also an essential feature of an

Reference No. 140715

Page 17.

attractive residential neighborhood. Also, within two blocks of the subject


is a new Whole Foods market near Harrison and 24th Streets.
The subject neighborhood is also influenced by development of another growing
area north of downtown, the Uptown District.
This is within 3-4 blocks to
the southwest; south of 21st Street and west of Broadway.
The Uptown
development (not fully completed to date) features hundreds of new apartment
units, and is geographically focused on the newly refurbished Fox Theater and
the 19th Street BART station. Following completion of most of the new
residential units (there are numerous others in the development pipeline)
this project has also spawned a lively dining and entertainment district.
A further influence on the immediate vicinity of the subject property is
formulation and adoption of a land use public policy initiative known as
Broadway Valdez District Specific Plan. The plan area is oriented along
Broadway retail corridor from Grand Avenue, north to I-580, as shown on
final zoning map on the following page.
The Broadway Valdez District Specific Plan (BVDSP) will develop
strategies
to
provide
destination
retail
and
mixed-use
development along Broadway between Grand Avenue and Interstate
580 (Project Area Map). Broadway is viewed as the Citys Main
Street and is significant due to its proximity to downtown, its
location near two BART stations, a major AC transit bus route, as
well as its relationship to adjacent residential neighborhoods,
the adjacent medical campuses of Kaiser Hospital and Summit/Alta
Bates Hospitals, the successful existing Piedmont Avenue retail
street, and the edge of Lake Merritt. The specific plan will
provide
an
area-wide
set
of
development
regulations
and
requirements, including the distribution, extent and location of
land uses, infrastructure standards and financing mechanisms for
public improvements.
Further discussion of the BVDSP appears in the section on zoning.

the
the
the
the

Reference No. 140715

Page 18.

Zoning Map of Broadway Valdez Specific Plan Area

SUBJECT
PROPERTY

Reference No. 140715

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.

Reference No. 140715

F.

Page 20.

Zoning & Entitlements

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

Design Review required.


Multi-unit Residential, Civic and Commercial uses,
retail/commercial uses.
Width
50 feet
Frontage
50 feet
Size
7,500 ~
'
Setback Front
0 feet
Setback Rear
0 feet
Height/Bulk Area
250
Minimum Ground Floor Height
15 feet
Minimum Storefront Width
15 feet
Max Units/Acre
484
Max Building Base Height
85 feet
Max Building Height
250 feet
Multi-Unit Residential
1/2 space per Unit

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.

Reference No. 140715

G.

Page 21.

Proposed Project

The proposed project is generally similar in scale to the previously entitled


development, consisting of 235 residential units and a 350 stall parking
garage which the developers hope to be operated in manner which will reduce
the required number of spaces for public occupancy by a sharing arrangement
in which daytime public use and night-time resident use can be optimally
coordinated. The projected floor areas of the project (exclusive of parking)
are currently as follows:
Net Residential Floor Area:
Residential Amenity Space:
Ground Level Retail:

177,000 ~
'
5,300 ~
'
14,750 ~
'

Subtotal Net Usable Floor Area:

197,050 ~
'

Total Gross Building Area:


Efficiency:
FAR:

235,000 ~
'
78%
3.79

The appraisers were not provided with proforma drawings, costs or


sales/operating scenarios. The project concept appears to conform to the DBV-2 zoning. The prospective developers of the property, TDP-Webster, LLC,
have has preliminary discussions with City of Oakland planning staff, but no
formal application for a use permit has been tendered though the City of
Oakland and the prospective developer/buyers have entered into an Exclusive
Negotiating Agreement (ENA). The designated project planner is Pete Vollman
(238-6167).
A representative of the developer stated that the overall height of the
structure will not exceed seven stories, and will therefore not require
extensive life safety features which significantly increase construction
costs for high-rise structures.

H.

Occupancy and Use

The property is currently occupied by Oakland Parking Partners under a


contract with the City of Oakland to provide parking services. The current
contract commenced on August 1, 2014. Prior to this, the lot was operated by
Douglas Parking LLC for over 15 years. The Douglas Parking, and Oakland
Parking Partners occupancies are technically a sub-tenancies since a parking
lease and a parking agreement benefiting the ownership of the Ordway

Reference No. 140715

Building (two
respectively.

blocks

Page 22.

south)

have

been

in

force

since

1983

and

2000,

The parking lease document is unrecorded, though it is referred to in


various recordings dating from 12/1988 to 08/2000. We were able to obtain a
copy of the original lease for review. The parking agreement was recorded
in 2000.
The parking lease is briefly summarized below:
Landlord:
Tenant:
Commencement:
Termination:
Rent:
Use:

No. Spaces:

City of Oakland (current successor in interest)


Ordway Associates (current successor in interest)
12/30/1983
12/29/2068
Based on actual use by Tenant at market rates
Tenant must give 30-day notice to property owner of intent
to use any of the parking spaces. The sub-tenant has
reportedly not received any requests for use of parking
stalls by Ordway Building tenants within the last 10 years.
Original encumbrance specifies 233 stalls,
which is reduced over the first 10 years of the lease to
200 stalls.

The parking agreement grants parking rights in perpetuity to the ownership


of the Ordway Building (155 Grand Avenue) to 42 spaces within the subject
property Labor Temple Lot. The terms of occupancy are similar to those
outlined in parking lease.

Monthly Parking Revenues at Labor Temple Lot


$50,000
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000

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

A summary of gross parking


revenue
from
2005-2009
under the Douglas Parking
lease over the last four
years
illustrates
peak
revenues
in
late
2005
through
2006,
and
declining
trends
since
that time. Parking demand
is highly sensitive to
overall
economic
trends
and job growth.

Reference No. 140715

Page 23.

A summary of more recent financial statements for operation of the property


are presented on the following page.
The months Aug-Oct of 2014 show only
actual revenues under the Oakland Parking Partners occupancy, as their
accounting for operating expenses has not been fully reported to date. The
appraisers have estimated probable expenses (which are budgeted at $9,500 per
month).

Labor Temple Lot Parking Revenues


Month

Transient

Monthly Cost of Sales

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

Reference No. 140715

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.

Reference No. 140715

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.

Reference No. 140715

7.

Page 26.

HIGHEST AND BEST USE

In standard appraisal methodology, highest and best use is usually defined


as:
"The use, from among the reasonably probable and legal alternative uses,
found to be physically possible, appropriately supported, financially
feasible and that results in the highest present land value."2 The highest
and best use of the property is analyzed from two perspectives: A) as vacant;
and, B) as improved. Further, four criteria are applied in the analysis: 1)
Physically Possible; 2) Legally Permissible; 3) Financially Feasible; 4)
Maximally Productive1.
1.
The legally permissible land uses proposed for the subject site(s)
include primarily multi-unit residential complexes with ground floor retail
occupancies, as the Broadway Valdez Specific aims to promote this type of
use. Other commercial uses are permitted in the DLM-2 zone, but the highest
development density is achievable by multi-story apartments or condominiums.
Therefore, a project featuring a residential tower over street level retail
appears to be the obvious choice among the legally permissible uses.
2.
The physically possible uses, essentially include all legal uses of the
property, as evidenced by the numerous large and technically advanced
structures in the immediate vicinity.
3.
Those uses to be tested for financial feasibility include apartments
development.
a)
Multi-Unit Residential
There has been an unquestioned assumption that residential development in all
its forms is (and has been since 2011) financially feasible in the Bay Area.
Again, in San Francisco, rent levels of $6.00/'
~ to $7.00/'
~ for new apartments
are common, while in Oakland, rates for units in high-rise buildings hover
between $3.50/'
~ and $4.00/'
~. San Francisco is experiencing an unprecedented
building boom, while Oakland ground breakings among the various (and
numerous) entitled sites are more modest.
The possible exception is
Berkeley, where demand for student housing has prompted several new projects
to break ground in and around the CBD. However, this sub-market features high
demand from students, administrative constraints on the supply side, and

The Dictionary of Real Estate Appraisal, Fifth Edition, The Appraisal Institute,
Page 93.

Reference No. 140715

Page 27.

therefore rent growth almost commensurate with San Francisco.


The
accompanying map illustrates the extent of currently approved residential
projects in Oaklands development pipeline.
One large project which has remained entitled for over 10 years is 1331
Harrison Street, which consists of a proposed 27-story residential tower with
191 units and 130 parking spaces. The developer (Peter Iwate 415-288-1412)
stated that he is seriously considering initiating the project and consulting
with bank representatives regarding construction funding. He considers the
positive factors for a decision to move forward to be the propertys
proximity to BART and the ongoing spike in residential rents in San
Francisco. This project will feature expansive views of Oakland, the hills,
and San Francisco Bay.
The challenges appear to be the costs for Type 1
concrete and steel construction.
Mr. Iwate also cited the Ellington Condominiums at 222 Broadway, as a recent
example of a successful high rise project in Oakland. This 15 story-building
encompasses 134 units which are selling at prices between $400,000 and
$700,000. This building is also Type 1 concrete structure which is less
costly that steel frame construction.
Patrick Kennedy (510-883-1000), an experienced East Bay developer who is
building a 17-story mini studio project in San Francisco, cited a report by
Realfacts that rents in Oakland have increased 19% in the last year. His
project in San Francisco is costing approximately $400 per square foot, and
he expects to achieve rents of $6.00/'
~ to $7.00/'
~, which he maintains will
justify the costs of construction.
He stated that in Oakland, part of the
development challenge is that costs are virtually the same as in San
Francisco, but rents are only 50% to 60% those achievable in that city.
San Francisco and the Inner East Bay cities of Berkeley, Emeryville and
Oakland have historically been under-supplied with housing, and current
conditions have not changed this appreciably despite evidence of numerous new
multi-unit projects. In prior markets, when apartment rents climbed
appreciably, tenants would begin to compete with home buyers, but up-trends
in home prices have been so pronounced that tenants have not been able to
offer the necessary down payments and qualify for mortgage funding as
readily. This leaves greater numbers in the rental market competing for the
existing supply of apartments.
These market conditions will continue as long as the overall economy grows,
and in particular, as long as the high-tech boom in the Bay Area remains
stable. Many San Francisco developers project a 2 to 3 year run of growth
which has spurred dramatic competition for development opportunities in the

DeLorme Street Atlas USA 2014

Current Approved Residential Development

Data use subject to license.

Scale 1 : 19,200

TN
0

DeLorme. DeLorme Street Atlas USA 2014.


www.delorme.com

MN (13.8E)

400
160

800

1200
320

1" = 1,600.0 ft

1600
480

2000
640

800

ft
m

Data Zoom 13-4

Reference No. 140715

Page 28.

City. All of this evidence suggests that a high-rise apartment development on


the subject site would be financially feasible. While Oakland projects will
likely never command rents on par with San Francisco, it must be remembered
that the subjects location in Oakland is more convenient (via BART) to
employment centers in San Francisco than from many neighborhoods in that
city.
4.
The maximally productive use of the subject property can be considered
by analyzing the developers proposed construction and operations proforma
for the proposed mixed use apartment/retail/parking garage complex. However,
these documents were not provided to the appraisers as the prospective
developer has not yet made any formal proposals to the City of Oakland.
Further, the configuration of this proposed project remains subject to
various proposals for how to most efficiently provide the needed day-time
parking required by the parking lease.
The current concept involving
construction of 350 parking stalls on-site would meet both the requirements
of the parking lease, as well as those of the proposed project with respect
to residential and commercial uses.
However, the developer intends to
explore the possibility of establishing shared use of some proportion of the
total parking spaces, which would enable the total number to be reduced.
The maximally productive use of the property was also tested through
application of the sales comparison analysis using both the proposed
configuration of improvements versus the maximum allowable density achievable
under the DV-B-2 zoning. Because the scale of the project is on the cusp of
a major shift in cost structure applicable to high-rise residential
structures, its current proposed configuration supports a comparable land
value compared the most intensive land use allowable.
Given that the risk characteristics of a smaller scale project, as well as a
shorter time to completion, we conclude that the highest and best use of the
subject property is represented by a mixed use development similar in size
and scale to that proposed by the prospective developer/buyer of the
property.

Reference No. 140715

8.

SALES COMPARISON APPROACH

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

The subject exists in a competitive market context of well-located


development sites suitable for multi-unit residential development.
The accompanying table provides a summary of the market transactions deemed
instructive in this valuation.
The primary indices extracted from the data
is price per square foot of land ($/'
~-Site), and price per living unit
($/Unit). Data sources include Costar, MetroScan, the Loopnet, local brokers
and developers and the East Bay Regional MLS.
As stated previously, the location and relatively clear set of development
possibilities for the subject property, coupled with the intent of the City
of Oakland (the owner) to facilitate near term development, affords a
competitive advantage in the market. Therefore, we have chosen to use sales
primarily of entitled sites. This usually means that the sale was closed
after receipt of approvals for the proposed development.

Reference No. 140715

Page 30.

Land Sales Summary

2325 Valdez St; 2330 Webster Street

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

4700-4770 Telegraph Ave, Oakland


$3,600,000
51
19,950
$180.45
013-1150-017-01,019-02
30-Jul-13
Rectangular
CN-2
$70,588
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.
3
4801 Shattuck Ave, Oakland
$2,660,000
44
14,934
$178.12
013-1162-009-01,009-02,010
30-Jul-13
Irregular
CN-2
$60,455
Three adjacent parcels with existing residential improvements to be removed to make way for 44 unit residential
condominium project. No commercial space included. Units per acre = 128
4

5175 Broadway, Oakland


$2,300,000
28
12,833
$179.23
014-1241-005-01
26-Jul-13
Rectangular
CC-2
$82,143
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
5

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

1200 Ashby Avenue, Berkeley

$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

378 11th Street, Oakland

$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

1225 Webster Street

$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

DeLorme Street Atlas USA 2014

Land Sales Map

Data use subject to license.

Scale 1 : 37,500

TN
0

DeLorme. DeLorme Street Atlas USA 2014.


www.delorme.com

MN (13.8E)

1" = 3,125.0 ft

mi
km

Data Zoom 12-4

Reference No. 140715

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.

Reference No. 140715

Page 32.

Sale Six; 1200 Ashby Avenue, Berkeley, is located at major traffic


intersection in West Berkeley, and spans two corners. It is entitled for
development of 98 residential units in a five-story building with 9,932
of ground floor retail space, now under construction.
The location is
inferior to the subject Oakland City Center setting.
This area is in the
path
of
new
development,
but
does
not
constitute
an
established
neighborhood or a pedestrian oriented retail district. The property is also
exposed to thoroughfare traffic from two directions. The development density
is inferior.
Sale Seven; 378 11th Street, Oakland, is a closed sale of a vacant site in the
Oakland CBD, located two blocks from the 11th Street BART station, and 6-7
blocks from the subject. It consists of a mid-block site located across the
street from the 10-story EBMUD headquarters. Like other CBD sites it has a
maximum FAR of 20, but was marketed as a potential 10-story project. The sale
is pending resolution of certain easement questions. Surrounding developments
are three to ten stories. The location is inferior to the subjects City
Center setting. At 10 stories high, this property will have a higher
development cost structure compared to the subject.
Sale (Listing) Eight: 1225 Webster Street, is a current listing on the market
for a site located at the corner of Webster Street and 13th Street. This site
is currently leased to a parking lot operator on a short-term basis (annual
NOI of $43,200). There are no current entitlements or approvals for the site.
Site is zoned CBD-C (Height Area 7), which allows for a maximum density of
484 units/acre, maximum F.A.R. of 20, building height ranging from 45' to
120', and a 100% site coverage. Site is level with all off-sites.
This
property has a similar zoning to the subject, and the location is comparable.
Development on this site will likely exceed 10 stories and will have a higher
cost structure to the subject. Adjustments for listing status and no existing
entitlements are applied.
The sales were analyzed, and the data
differences with the subject property:

adjusted,

to

reflect

significant

Property Rights Appraised


This factor tends not to be applicable to vacant land. In any case, all of
the comparable transactions involved fee simple rights.
Financing Terms
All sales were financed with cash or mortgages at prevailing rates.

Reference No. 140715

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.

Reference No. 140715

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)

Site Valuation Analysis

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.

2315 Valdez St; 2330 Webster St.


1

1900
4700-4770 4801 Shattuck
Broadway Telegraph Ave, Ave, Oakland
Oakland

Price Per Unit


8

5175 522-532 20th


Broadway,
St
Oakland

1200 Ashby
Avenue,
Berkeley

378 11th
Street,
Oakland

1225
Webster
Street
133

Planned Units

235

294

51

44

28

82

98

111

Units per Acre

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

Reference No. 140715

Page 35.

Summary of Adjustments to Data


Comparable No.
Address

Land Area (SF):

2315 Valdez St; 2330 Webster St.


1

2315 Valdez
St; 2330
Webster St.

1900
4700-4770 4801 Shattuck
Broadway Telegraph Ave, Ave, Oakland
Oakland

5175 522-532 20th


Broadway,
St
Oakland

1200 Ashby
Avenue,
Berkeley

Price Per SF
8

378 11th 1225 Webster


Street,
Street
Oakland

61,988

40,650

19,950

14,934

12,833

7,405

34,412

10,000

Units Per Acre

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

There is a significant divergence in overall value indications suggested by


the $/'
~ and $/Unit indices. We typically give greater emphasis to the results
based on the $/Unit index as it is more consistent with the viewpoint of
typical buyers of multi-unit residential developments. However, having
applied our adjustments consistently in each case, and finding that the
resulting indices show a relatively narrow pattern of values for both $/'
~ and
$/Unit, we have concluded that affording similar emphasis to both is
warranted. The foregoing analysis indicates a value for the subject assuming
no obligation to provide parking spaces as specified by the parking lease
(2a), of:
$8,600,000.

Reference No. 140715

C.

Page 36.

Value Impact of Parking Encumbrances

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

The cost summary table (left) is based on


indices published by Marshall & Swift Co.
which pertain to Class A&B concrete subsurface parking structures with all components
included; elevator, fire sprinklers, striping,
bumpers, and security features.

Reference No. 140715

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.

Forecast Parking Revenues

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.

The expense history of the subject provides a basis for calculating


applicable operating expenses for this forecast revenue stream.
While the
recent contract with Oakland Parking Partners budgets $9,400 per month for
operating expenses (equates to 30% of current revenues), they have not fully
reported their expenses. Their budgeted expense ratio is 40% of gross
revenues.
The historical occupancy by Douglas Parking indicates an expense
ratio of 43% of gross revenues. We have therefore forecast expenses slightly
higher at $9,500 per month.
We conclude that the budgeted expense ratio is the best indicator of
projected operating expenses. This conclusion is applicable to the existing
open parking facility, but must be reexamined with respect to the assumed
garage parking spaces for purposes of the valuation of the property in this
appraisal. Garage parking will have certain higher costs including utilities
and maintenance, since the interior must be lit at all times, and elevator
access is required. However, based on our experience with such properties,
the incremental costs to operate a garage versus a surface lot are offset by

Reference No. 140715

Page 38.

increased revenues, and therefore, an expense ratio (before property taxes)


of 40% of gross revenues remains applicable.
In addition to normal operating expenses, property taxes must be estimated
and deducted. The operating statements and agreements with both Douglas
Parking and Oakland Parking Partners do not include payment of property
taxes, as the City of Oakland is a public entity. The assessment for the
parking garage spaces will be based on their cost and a reasonable proportion
of the assessed value of the land, which we estimate to be 5% of the total
for the project. The ad valorem tax rate applied is for the subjects tax
rate area.

3)

Capitalization of Net Operating Income

After deduction of property, the resulting net operating income is


capitalized at a rate reflecting the risk appropriate to an income stream
directly contingent upon office leasing overall economic performance. The
remaining term of the parking lease is 54 years.
However, since the net
operating income is not subject to the lease terms, and since the benefit to
the property owners is in perpetuity, direct capitalization of the forecast
NOI is the appropriate measure of this value component. The appropriate rate
is 7.5%, based on the most recent surveys published by Korpacz, RERC, and as
opined recently by Ken Rosen and other real estate economists.
The calculations are as follows:
Land Value
Land Assessment

$8,600,000
5%

$430,000

Cost of Parking Spaces

$7,260,000

Total Assessed Value of Parking Spaces

$7,690,000

Ad Valorem Taxes

1.4376%

Estimated Assessments

($110,551)
($5,000)

Parking Revenue (net of Taxes)

$382,800

Less Taxes

-115,551

Net Operating Income

$267,249

Capitalized @

7.50%

$3,560,000

Reference No. 140715

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

Capitalized Value of Parking NOI

$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

Reference No. 140715

9.

MARKET RENTAL RATE FOR SUBJECT ASSUMING LONG TERM LEASE

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.

Reference No. 140715

B.

Page 41.

Land Lease Rates

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.

250 Hegenberger Road, Oakland

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.

21201 Cabot Blvd, Hayward

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.

Reference No. 140715

Page 42.

This property is in an industrial park setting which at the time featured


other available vacant land. The tenant is a national credit firm. However,
the improvements represent only minimal investment to the tenant compared to
the subjects scenario.

3.

8350 Pardee Drive, Oakland

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.

8333 Oakport Street, Oakland

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.

191 98th Avenue, Oakland

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,

Reference No. 140715

Page 43.

indicating an overall rate of return of 10.8%. There were reportedly four


offers to purchase received.
The value of the underlying fee interest for
this competitive site indicates a lease rate of 10.47%, based on calculated
level rent over the initial lease term.
This property contrasts with Lease No.4, which serves a similar market, but
is located within a larger retail center.
This property has little or no
competition on 98th Avenue, but has less overall exposure. The quality of the
subtenants is very good, but they are multiple in number and their status as
subtenants creates an added contingency for the underlying fee interest
holder.
Below is a summation of the indicated lease rates and adjustments thereto for
the purpose of estimating the applicable rate for the subject. The primary
factors of adjustment are:
Market Conditions: perceptions of overall market risk, and supply and demand
in the market, reflected by general positive and negative value trends at the
time of the transaction.
Length of term: a longer term will influence the lease rate upwards to
account for risk, similar to the yield curve for long term v. short term
bonds.
Escalation: Lease contracts with lower than average escalation clauses can
represent greater risk to the landlord, and appropriate adjustments are made
to reflect this contingency.
Location: this is a proxy for market demand, which is a strong indicator of
investment value.
This factor also encompasses overall size, since this
factor will influence the breadth of market demand.
Tenant Quality:
and all others.

This factor differentiates between national credit tenants

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.

Reference No. 140715

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.

Reference No. 140715

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)

Assuming Parking Lease Remains in Force:


$4,900,000

2b)

8.5%

$416,500 (per year)

Assuming Parking Lease is Not in Force:


$8,600,000

8.5%

$731,000 (per year)

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.

Reference No. 140715

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

Rental Value Assuming 66 Year Lease:


Income Capitalization Approach:
2a) Assuming Parking Lease in Force:
ba) Assuming Parking Lease Not in Force:

$416,500 per year


$731,000 per year

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.

Reference No. 140715

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

1a) Market Value; Parking Lease in Force

Leased Fee

$5,250,000

1b) Rental Value (per annum); Lease in Force

Sub-Leasehold

2a) Market Value; Parking Lease Not in Force:

Fee Simple

$8,600,000

2b) Rental Value (per annum);Lease Not in Force

Leasehold

416,500

731,000

The above value conclusion assumes marketing and exposure periods of nine to
twelve months.

Reference No. 140715

11.

Page 48.

CERTIFICATION

This appraisal is conveyed in an Appraisal Report format (USPAP 2-2).


The
signatory below certifies that, to the best of his or her knowledge and
belief:
the statements of fact contained in this report are true and correct.
the property was personally inspected unless otherwise indicated by
designating a signatory to this report as a "Supervising Appraiser".
the reported analyses, opinions, and conclusions are limited only by
the stated assumptions and limiting conditions, and are the personal,
impartial, and unbiased work product of the named appraisers.
there are no past, present, or prospective interests, adverse
interests, or bias with respect to the property that is the subject of this
appraisal, nor any personal interest with respect to the parties involved.
the acceptance of, engagement in, and compensation for this assignment
are not contingent upon developing or reporting a predetermined or stipulated
result, a predetermined value or direction of value that may favor the cause
of the client, or the occurrence of a subsequent event directly related to
the intended use of this appraisal.
the analyses, opinions, and conclusions were developed, and this report
prepared, in conformity with the Uniform Standards of Professional Appraisal
Practice (USPAP), and for members, the requirements of the Code of
Professional Ethics and the Standards of Professional Appraisal Practice of
the Appraisal Institute. The preparation and use of this report is subject
to the requirements of the Appraisal Institute relating to review by duly
authorized representatives.
unless otherwise identified in this report, no one provided significant
professional assistance to the persons signing this report.
all appraisers licensed by the Office of Real Estate Appraisers (OREA) of
the State of California are required to complete a minimum level of
continuing education to be eligible for license renewal on specified dates.
The signatories to this report are currently licensed and have met all
current requirements of the Office of Real Estate Appraisers.

Reference No. 140715

Page 49.

as of the date of this report, signatories who are members of the


Appraisal Institute have completed the requirements of the continuing
education program and are currently recertified.
As of the date of this report, Peter D. Overton, MAI, has completed the
requirements under the continuing education programs of the Appraisal
Institute.
As of the date of this report, Michael Yovino-Young, MAI, ASA, FRICS,
has completed the requirements under the continuing education programs of the
Appraisal Institute, the American Society of Appraisers, and the Royal
Institution of Chartered Surveyors.
As of the date of acceptance of this assignment, the undersigned had
not provided services as appraisers, nor in any other capacity, with respect
to the subject property for the previous three years.
Attached as Exhibit C is a statement of the professional qualifications of
the appraiser.
Thank you for providing us this opportunity to be of service.
This report
has been prepared in accordance with the Uniform Standards of Professional
Appraisal Practice (USPAP) and with our agreement and understanding of the
nature and requirements of the appraisal assignment.
We will retain all relevant data and research material in file should you
require further appraisal services concerning this property.
Very truly yours,
YOVINO-YOUNG, INCORPORATED

__________________________
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

555 12th Street Suite 2150


Oakland, CA 94607
(510) 272-1121 Fax: (510) 208-5045

PRELIMINARY REPORT
Issued for the sole use of:

HYPERLINKED

CITY OF OAKLAND
250 FRANK OGAWA PLAZA, SUITE 4314
OAKLAND, CA 94612

Our Order Number

1117008865-JM

Attention: HAMID GHAEMMAGHAMI


When Replying Please Contact:

Julie Massey
(510) 272-1121

Property Address:

2330 Webster Street, Oakland, CA 94612

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.

Dated as of October 15, 2009, at 7:30 AM

OLD REPUBLIC TITLE COMPANY


For Exceptions Shown or Referred to, See Attached
Page 1 of 9 Pages
ORT 3158-A (Rev. 08/07/08)

OLD REPUBLIC TITLE COMPANY

ORDER NO. 1117008865-JM


HYPERLINKED
The form of policy of title insurance contemplated by this report is:

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:

Oakland PPD Return, LLC


The land referred to in this Report is situated in the County
as follows:

of Alameda, City of Oakland, State of California, and is described

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

OLD REPUBLIC TITLE COMPANY

ORDER NO. 1117008865-JM


HYPERLINKED
At the date hereof exceptions to coverage in addition to the Exceptions and Exclusions in said policy form would be as follows:

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

NOT Marked Paid


NOT Marked Paid

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.

Any supplemental taxes due to Change of Ownership.


The affirmative coverage set forth in the Covered Risks is not being provided by the policy.

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

OLD REPUBLIC TITLE COMPANY

ORDER NO. 1117008865-JM


HYPERLINKED

6.

Terms and provisions as contained in an instrument,


Entitled
Executed By

:
:

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

And as modified by an instrument, executed by Ahmanson Commercial Development


Company, a California corporation, Kaiser Center Properties, a California general
partnership and Kaiser Aluminum & Chemical Corporation, a Delaware corporation,
recorded December 23, 1988 in Official Records under Recorder's Serial Number 88327579.

And as modified by an instrument, executed by Ahmanson Commercial Development


Company, a California corporation and Kaiser Center, Inc., a California corporation,
recorded February 15, 1990 in Official Records under Recorder's Serial Number 90045256.

And as modified by an instrument, executed by Kaiser Center Properties, a California


general partnership, Ahmanson Commercial Development Company, a California
corporation and Kaiser Aluminum & Chemical Corporation, a Delaware corporation,
recorded July 13, 1992 in Official Records under Recorder's Serial Number 92225713.

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

: May 21, 1998, of Official Records, under Recorder's Serial


Number 98170663

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

: August 30, 2000, of Official Records, under Recorder's Serial


Number 2000260958

Page 4 of 9 Pages
ORT 3158-B

OLD REPUBLIC TITLE COMPANY

ORDER NO. 1117008865-JM


HYPERLINKED

7.

Terms and provisions as contained in an instrument,


Entitled
Executed By

:
:

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

: August 30, 2000, of Official Records, under Recorder's Serial


Number 2000260959

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.

Matters as contained or referred to in an instrument,


Entitled
Executed By
Dated
Recorded

:
:
:
:

Notice of Limitation of Use of Property


City of Oakland Community and Economic Development Agency
March 13, 2006
May 31, 2006 in Official Records under Recorder's Serial Number
2006213915

Which Among
Other Things
Provides

Demolition of 2, two-story commerical buildings and construction of a


22-story, high-rise building containing 281 Units, 10603 sq. ft. of
ground floor retail, 10613 sq. ft of 2nd story commercial with building
services and 535 parking stalls

1925 Century Park East Suite 1700, Los Angeles, CA 90067

Returned to
Address

Page 5 of 9 Pages
ORT 3158-B

OLD REPUBLIC TITLE COMPANY

ORDER NO. 1117008865-JM


HYPERLINKED

9.

10.

11.

Matters as contained or referred to in an instrument,


Entitled

Executed By
Dated
Recorded

:
:
:

Returned to
Address

A Resolution granting PPD Merritt I, LLC, a Revocable and Conditional


Permit to allow Electrical Transformer Vaults for a New Building at
320 23rd Street to Encroach under the Public Sidewalk along Webster
Street and 23rd Street
City of Oakland
July 21, 2006
August 21, 2006 in Official Records under Recorder's Serial Number
2006319773
One Frank Ogawa Plaza, 1st Floor, #101, Oakland, CA 94612

Amended Redevelopment Plan, as follows:


Entitled

By

Recorded

Returned to
Address

Revised Statement of Institution of Redevelopment for the Central


District Redevelopment Project
Community and Economic Development Agency Economic
Development & Redevelopment
December 3, 2007 in Official Records under Recorder's Serial Number
2007409569
250 Frank Ogawa Plaza, Suite 5313, Oakland, CA 94612

Any insufficiency of the proceedings leading up to and including the recording of the
trustees deed
From
To
Dated
Recorded

:
:
:
:

First American Title Insurance Company, as Trustee


Oakland PPD Return, LLC
September 10, 2009
September 18, 2009 in Official Records under Recorder's Serial
Number 2009300097
An examination of the trustees foreclosure file may be required.

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

OLD REPUBLIC TITLE COMPANY

ORDER NO. 1117008865-JM


HYPERLINKED

14.

Any unrecorded and subsisting leases.

15.

Rights and claims of parties in possession.

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.

A copy of any management or operating agreements and any amendments thereto,


together with a current list of all members of said LLC.

2.

A certified copy of its Articles of Organization (LLC-1), any Certificate of Correction


(LLC-11), Certificate of Amendment (LLC-2), or Restatement of Articles of Organization
(LLC-10).

3.

Recording a Certified copy of said LLC-1 and any amendments thereto.

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).

-------------------- Informational Notes -------------------

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

OLD REPUBLIC TITLE COMPANY

ORDER NO. 1117008865-JM


HYPERLINKED

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

SALE NO. ONE


STREET ADDRESS:
CITY:
ZIP:
SALE PRICE:
RECORDING DATE:
SELLER:
FINANCING:
SALE COMMENTS:

PROPERTY TYPE: LAND


1900 Broadway
008-0638-005,006-03
ASSESSOR'S NUMBER:
Oakland
190467, 190468
DOCUMENT NUMBER:
94612
Closed
STATUS:
$4,611,500
n/a
LISTING PRICE:
1-Aug-2014
n/a
LISTING DATE:
Jackson Center Two L BUYER:
19th & Broadway Assoc
All cash
Fee Simple
RIGHTS TRANSFERRED:
Property was not listed for sale on open market, but both buyer and
sellers are experienced developers and market participants.
PROPERTY DESCRIPTION:

Site Area (SF):


Shape:

40,650
Irregular

Street Frontage:

311 feet on Broadway, 150 feet on 19th Street

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

CBD-P; Height Area 7


Level

SALE NO. TWO


STREET ADDRESS:
CITY:
ZIP:
SALE PRICE:
RECORDING DATE:
SELLER:
FINANCING:
SALE COMMENTS:

PROPERTY TYPE: LAND


4700-4770
Telegraph Ave
Oakland
94609
$3,600,000
7-Nov-2013

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:

150 feet Telegraph Avenue; 133 feet 48th Street

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:

Effective Sale Price: $3,600,000


UNIT INDICES:
$180.45
$/SF:
$70,588
$/UNIT:
Costar; Listing Broker Todd Vitzhum 925-951-5022
Data Source:

SALE NO. THREE


STREET ADDRESS:
CITY:
ZIP:
SALE PRICE:
RECORDING DATE:
SELLER:
FINANCING:
SALE COMMENTS:

PROPERTY TYPE: LAND


4801 Shattuck Ave
ASSESSOR'S NUMBER:
Oakland
DOCUMENT NUMBER:
94609
STATUS:
$2,660,000
LISTING PRICE:
30-Jul-2013
LISTING DATE:
Scott Ward
BUYER:
20.9% down; pvt 1st TD RIGHTS TRANSFERRED:
Normal marketing and 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:

205 feet 48th Street; 65 feet Shattuck Avenue

Probable Use:
PROPERTY COMMENTS:

Multi-unit Residential No. Units:


44
Three adjacent parcels with existing residential improvements to
be removed to make way for 44 unit residential condominium
project. No commercial space included. Units per acre = 128

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

SALE NO. FOUR


STREET ADDRESS:
CITY:
ZIP:
SALE PRICE:
RECORDING DATE:
SELLER:
FINANCING:
SALE COMMENTS:

PROPERTY TYPE: LAND


5175 Broadway
ASSESSOR'S NUMBER:
Oakland
DOCUMENT NUMBER:
94611
STATUS:
$2,300,000
LISTING PRICE:
26-Jul-2013
LISTING DATE:
Rockridge Heights LLBUYER:
All cash
RIGHTS TRANSFERRED:
Conventional sale

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

SALE NO. FIVE


STREET ADDRESS:
CITY:
ZIP:
SALE PRICE:
RECORDING DATE:
SELLER:
FINANCING:
SALE COMMENTS:

PROPERTY TYPE: LAND


522-532 20th St
Oakland
94606
$1,180,000
29-Apr-2014
Patrick White
All Cash

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

Normal marketing and transaction.

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.

Effective Sale Price:


UNIT INDICES:
$/SF:
$/UNIT:

$1,180,000

Data Source:

Seller (Partrick White (707) 933-9431), Metroscan, Costar.

No. Units:

82

ANALYSIS OF TRANSACTION:

$159.35
$14,390

SALE NO. SIX


STREET ADDRESS:
CITY:
ZIP:
SALE PRICE:
RECORDING DATE:
SELLER:
FINANCING:
SALE COMMENTS:

Site Area (SF):


Shape:
Street Frontage:

PROPERTY TYPE: LAND


1200 Ashby Avenue
Berkeley
94702
$5,105,000
31-May-2013
R.B. Tech Center
All Cash
Conventional sale of entiteled

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 NO. SEVEN


STREET ADDRESS:
CITY:
ZIP:
SALE PRICE:
RECORDING DATE:
SELLER:
FINANCING:

PROPERTY TYPE: LAND


ASSESSOR'S NUMBER:
002-0057-020
DOCUMENT NUMBER:
270493
STATUS:
Sold
LISTING PRICE:
$1,410,000
LISTING DATE:
1/1/2014
Salvation Army
BUYER:
OAK 378 LLC
RIGHTS TRANSFERRED:
All Cash
Fee Simple
Purchase of development site by developer. All cash.
378 11th Street
Oakland
94607
$1,500,000
7-Nov-2014

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:

Non-corner site currently vacant and occupied as surface parking.


Max FAR = 20, Max units/acre = 483. Location across from EBMUD HQ;
two blocks from BART; Developer/Buyer plans 10-story building
implyin project FAR of 10.

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:

LISTING NO. EIGHT


STREET ADDRESS:
CITY:
ZIP:
SALE PRICE:
RECORDING DATE:
SELLER:
FINANCING:
SALE COMMENTS:

Site Area (SF):


Shape:

PROPERTY TYPE: LAND


ASSESSOR'S NUMBER: 002-0057-004-02
1225 Webster Street
DOCUMENT NUMBER:
Oakland
n/a
STATUS:
94702
Listed
LISTING PRICE:
n/a
$2,200,000
LISTING DATE:
n/a
9/1/2014
BUYER:
OAC Propertiies LLC
n/a
RIGHTS TRANSFERRED: Fee Simple
n/a
Property listed recently and has generated one offer which was
declined due to extended due diligence clause.

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:

Multi-unit ResidentialNo. Units:


133
Corner site in CBD zoned for commercial, though residential
development is most probable. Max FAR is 20. No height limit.
ANALYSIS OF TRANSACTION:

Effective Sale Price: $2,200,000


UNIT INDICES:
$/SF:
$183.33
$/Unit:
$16,541
Data Source:
Loopnet, Listing Broker, Matt Currie -415-543-9402

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.

1986-1987 Mitch Durell & Associates Real Estate Appraisers


1987-1989 Dawson & Jones Inc. Real Estate Appraisals
1989-1990 Clyde Standley & Associates, Real Estate Appraisers
1990-Present

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

Qualified as an expert witness in the Superior Court, State of California.


EDUCATION
Graduate of University of California at Berkeley, BS in Human Biodynamics

1995-1999

Allied Business School: Appraisal Principles, USPAP Courses, Real Estate Principles,
Real Estate Practice, Real Estate Finance

2003-2005

Appraisal Institute:

Business Practice & Ethics


Advanced Income Capitalization (Course 510)
Advanced Market Analysis and Highest & Best Use (Course 520)
Advanced Sales Comparison & Cost Approaches (Course 530)
General Appraiser Report Writing & Case Studies
Advanced Applications (Course 550)
Advanced Applications (Course 550)
Passed Comprehensive Examination for MAI Designation
Passed Demonstration Report Capstone Program

2005 & 2010


2005
2007
2010
2010
2010
2010
2010
2012

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.