APPRAISAL REPORT COMMUNITY ACTION CHILD CARE 1825 Feliz Drive (primary) 1807 Feliz Drive 1913 Feliz Drive 500 Washington Street Bakersfield, Kern County, California 93307 CBRE, Inc. File No. 15-251LA-1148 Client Reference No. WF-LA-15-009491-01-1
Mr. Brad Carlton WELLS FARGO BANK RETECHS 707 Wilshire Blvd., 19th Floor Los Angeles, California 90017
www.cbre.com/valuation
© 2015 CBRE, Inc.
VALUATION & ADVISORY SERVICES
400 S. Hope Street, 25th Floor Los Angeles, CA 90071
T 213-613-3700 F 213-613-3131
www.cbre.com
May 21, 2015 Mr. Brad Carlton WELLS FARGO BANK RETECHS 707 Wilshire Blvd., 19th Floor Los Angeles, California 90017 RE: Appraisal of Community Action Child Care 1825 Feliz Drive (primary) 1807 Feliz Drive 1913 Feliz Drive 500 Washington Street Bakersfield, Kern County, California CBRE, Inc. File No. 15-251LA-1148 Client Reference No. WF-LA-15-009491-01-1
Dear Mr. Carlton:
At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of the referenced property. Our analysis is presented in the following Appraisal Report.
The subject property is a 15.90-acre (net) site located at the southwest corner of Feliz Drive and Washington Street in the southeastern portion of the city of Bakersfield, California. The subject is comprised of four assessor parcels, which are described below:
SUBJECT PROPERTY SUMMARY
Net Land Area Number Building
Parcel APN Address Acres SF Land Use of Bldgs Area (SF)Parcel One 167-060-37 1825 Feliz Drive 3.47 151,153 Childcare bldgs / Flex Bldg 4 20,794
Parcel Three 167-060-35 1807 Feliz Drive 1.67 72,745 Food bank warehouse 1 23,000
Parcel Four 167-060-34 1913 Feliz Drive 6.85 298,386 Excess land --- ---
Parcel Five 167-060-33 500 Washington Street 3.91 170,320 Excess land --- ---
Total 15.90 692,604 5 43,794
Source: Parcel Map No. 11782 and Building Plans
Parcel One (APN 167-060-37) is improved with: 1) a three-building childcare center with a combined 8,794 square feet of building area that was completed in late July 2008, and 2) a 12,000-square-foot metal panel warehouse building with a 36.6% office build-out that was
© 2015 CBRE, Inc.
Mr. Brad Carlton May 21, 2015 Page 2
completed in late October 2008. Parcel Three (APN 167-060-35) is improved with a 23,000-square-foot metal panel constructed warehouse with a 13.0% office build-out that was built in 2004. All of the subject buildings are owner occupied and utilized by Community Action Partnership of Kern County, a non-profit organization that provides food and childcare services to low income households in Kern County. Parcel Four (APN 167-060-34) and Parcel Five (APN 167-060-33) are unimproved sites. The subject property is more fully described, legally and physically, within the enclosed report.
At the specific request of the client, we have provided estimates of value for each of the subject component. We hen aggregated these values to arrive at an estimated value for the total property.
Based on the analysis contained in the following report, the market value of the subject is concluded as follows:
MARKET VALUE CONCLUSION
Appraisal Premise Interest Appraised Date of Value Value Conclusion
As Is
Parcel One - Childcare / Flex Bldg. Fee Simple Estate May 8, 2015 $1,250,000
Parcel Three - Food Bank Fee Simple Estate May 8, 2015 $1,200,000
Parcel Four - Excess Land Fee Simple Estate May 8, 2015 $450,000
Parcel Five - Excess Land Fee Simple Estate May 8, 2015 $255,000
Aggregate Value Fee Simple Estate May 8, 2015 $3,155,000
Compiled by CBRE
The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter.
The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. It also conforms to Title XI Regulations and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) updated in 1994 and further updated by the Interagency Appraisal and Evaluation Guidelines promulgated in 2010.
The intended use and user of our report are specifically identified in our report as agreed upon in our contract for services and/or reliance language found in the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to non-client, non-intended users does not extend reliance to any other party and CBRE will not be responsible for unauthorized use of the report, its conclusions or contents used partially or in its entirety.
© 2015 CBRE, Inc.
Mr. Brad Carlton May 21, 2015 Page 3
It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us.
Respectfully submitted, CBRE - VALUATION & ADVISORY SERVICES
Pedro K. Chin Robert W. Gutzman, MAI Senior Appraiser Director Lic. No. AG024011 (exp 7/8/15) Lic. No. AG025646 (exp 6/7/16) Phone: 213 613 3580 Phone: 213 613 3683 Email: [email protected] Email: [email protected]
© 2015 CBRE, Inc.
Certification
i
Certification
We certify to the best of our knowledge and belief:
1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions
and limiting conditions and are our personal, impartial and unbiased professional analyses, opinions, and conclusions.
3. We have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect to the parties involved with this assignment.
4. Our engagement in this assignment was not contingent upon developing or reporting predetermined results.
5. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
6. This appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan.
7. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, as well as the requirements of the State of California.
8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.
9. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
10. As of the date of this report, Robert W. Gutzman, MAI has completed the continuing education program for Designated Members of the Appraisal Institute.
11. As of the date of this report, Pedro K. Chin has completed the Standards and Ethics Education Requirements for Candidates/Practicing Affiliates of the Appraisal Institute.Pedro K. Chin has and Robert W. Gutzman, MAI has not made a personal inspection of the property that is the subject of this report.
13. No one provided significant real property appraisal assistance to the persons signing this report. 14. Valuation & Advisory Services operates as an independent economic entity within CBRE, Inc.
Although employees of other CBRE, Inc. divisions may be contacted as a part of our routine market research investigations, absolute client confidentiality and privacy were maintained at all times with regard to this assignment without conflict of interest.
15. Pedro K. Chin and Robert W. Gutzman, MAI have not provided any services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.
Pedro K. Chin Robert W. Gutzman, MAI Lic. No. AG024011 (exp 7/8/15) Lic. No. AG025646 (exp 6/7/16)
© 2015 CBRE, Inc.
Subject Photographs
ii
Subject Photographs
Aerial View
© 2015 CBRE, Inc.
Subject Photographs
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Childcare Facility Childcare Facility
Childcare Facility Childcare Facility
Childcare Facility Childcare Facility
© 2015 CBRE, Inc.
Subject Photographs
iv
Food Bank Warehouse Food Bank Warehouse
Food Bank Warehouse Food Bank Warehouse
Food Bank Warehouse Food Bank Warehouse
© 2015 CBRE, Inc.
Subject Photographs
v
Flex Building Flex Building
Flex Building Flex Building
Flex Building Flex Building
© 2015 CBRE, Inc.
Subject Photographs
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West view of Feliz Drive Southeast of Parcel 4 from Feliz Drive
North view from Feliz and Washington Southwest view of Parcel 5
North view of Washington Northwest view Parcel 5 from Washington
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Executive Summary
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Executive Summary
Property Name
Location
Client Reference Number
APN/Street Address Parcel One - Childcare and Flex Building
167-060-33
Parcel Three - Food Bank 167-060-34
Parcel Four - Excess Land 167-060-35
Parcel Five - Excess Land 167-060-37
Highest and Best Use
As Vacant
As Improved
Property Rights Appraised
Land Area Net Acres Net S.F.
Parcel One - Childcare and Flex Building 3.47 AC 151,153 SF
Parcel Three - Food Bank 1.67 AC 72,745 SF
Parcel Four - Excess Land 6.85 AC 298,386 SF
Parcel Five - Excess Land 3.91 AC 170,320 SF
Total Land Area 15.90 AC 692,604 SF
Improvements
Property Type
Number of Buildings
Number of Stories
Gross Building Area
Clear Height
Percent Office
Year Built 2004/2008
Condition
Estimated Exposure Time
Estimated Marketing Time
Financial Indicators
Current Occupancy 100.0%
Stabilized Occupancy 94.0%
Stabilized Credit Loss 2.0%
Overall Capitalization Rate 8.50%
Pro Forma Operating Data - Parcel One Total Per SF
Effective Gross Income $127,041 $6.11
Operating Expenses $34,925 $1.68
Expense Ratio 27.49%
Net Operating Income $92,117 $4.43
WF-LA-15-009491-01-1
1825 Feliz Drive
1807 Feliz Drive
1913 Feliz Drive
500 Washington Street
Warehouse and Office
1
5
1825 Feliz Drive (primary), Bakersfield, Kern County, California 93307
12 Months
10'-20'
36.9%
12 Months
Good
Community Action Child Care
Fee Simple Estate
Existing uses
Future industrial development
43,794 SF
© 2015 CBRE, Inc.
Executive Summary
viii
VALUATION Total Per SF
Land Value - Parcel One $300,000 $1.98
Land Value - Parcel Three $145,000 $1.99
Land Value - Parcel Four $450,000 $1.51
Land Value - Parcel Five $255,000 $1.50
Total Land Value $1,150,000 $1.66
As Is Market Value May 8, 2015
Parcel One - Childcare and Flex BuildingCost Approach $51.94
Sales Comparison Approach $60.11
Income Capitalization Approach $46.65
Parcel Three - Food Bank Cost Approach $720,000 $31.30
Sales Comparison Approach $1,200,000 $52.17
Income Capitalization Approach $610,000 $26.52
Insurable Value
Parcel One - Flex Building $505,000 $42.08
Parcel One - Childcare Buildings $1,090,000 $123.95
Parcel One - Total $1,595,000 $76.70
Parcel Three - Food Bank Warehouse $1,015,000 $44.13
Aggregate Insurable Value $2,610,000 $59.60
CONCLUDED MARKET VALUE
Appraisal Premise Interest Appraised Value
As Is
Parcel One - Childcare / Flex Bldg. Fee Simple Estate $1,250,000
Parcel Three - Food Bank Fee Simple Estate $1,200,000
Parcel Four - Excess Land Fee Simple Estate $450,000
Parcel Five - Excess Land Fee Simple Estate $255,000
Aggregate As Is Value Fee Simple Estate $3,155,000
Compiled by CBRE
$1,080,000
$970,000
$1,250,000
May 8, 2015
May 8, 2015
May 8, 2015
Date of Value
May 8, 2015
May 8, 2015
STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT)
Strengths / Opportunities
The subject is a newer average quality industrial development.
Weaknesses / Threats
The subject childcare buildings are specialized improvements that may prove more challenging to re-lease or sell as compared to the subject’s more typical food bank warehouse and flex building
© 2015 CBRE, Inc.
Executive Summary
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The subject food bank warehouse represents a large industrial building in the submarket
The subject is located in East Bakersfield, off Highway 58, in a tertiary industrial submarket
The subject is located directly east of a school facility with older single-family homes to the north; it is an inferior industrial location compared to the homogenous Gateway Industrial Park subdivision further east of Washington Street
The subject has a secondary location within the immediate neighborhood as most industrial development is situated along Brundage Lane (the main east/west street parallel to the north of Highway 58) or at the primary freeway intersections with Highway 58 (at Union Avenue, Mt. Vernon Avenue, Oswell Street, Fairfax Road and Highway 184), or in the Gateway Industrial Park
There are multiple industrial spaces available ranging from 2,000 to 30,000 square feet in the neighborhood that have superior locations compared to the subject property
EXTRAORDINARY ASSUMPTIONS
An extraordinary assumption is defined as “an assumption directly related to a specific
assignment, as of the effective date of the assignment results, which if found to be false, could
alter the appraiser’s opinions or conclusions.” 1
There is currently no vehicular access to Parcel Three (Food Bank building) from Feliz Drive. Vehicular access to Parcel Three is via an asphalt paved driveway over three adjacent assessor parcels (unimproved lots), APN 167-060-36 (Parcel Two) to the west and APNs 167-060-28 and -30 to the south, which lead to Belle Terrace, a road that links to Cottonwood Avenue, a primary north/south street. The 2.48-acre Parcel Two was previously owned by the subject owners but it was deeded to the Kern County Superintendent of Schools on October 8, 2010 as part of a prior agreement; there was no sale price. APNs 167-060-28 and -30 are owned by the Kern County Board of Education. We have not reviewed a current title report. We are unaware of any recorded easement, if any. It is an extraordinary assumption that vehicular access to the subject sites is available over these adjacent parcels. We encourage the client to review a current title report prior to making a business decision.
Because the subject property is owned by a non-profit entity, there is a tax exemption of 88.9 percent of the assessed value for the property. As a result, the general taxes are calculated based upon the net taxable value (or 0.0 percent of the assessed value) multiplied by the general tax rate. However, the market value estimate is based upon the assumption that the property is sold to a typical buyer and not necessarily a non-profit entity. Therefore the estimated real estate taxes in the direct capitalization analyses presented in the income capitalization approach for Parcel One and for Parcel Three do not include this exemption, that is, the real estate taxes have been calculated based on the assumption that this tax exemption no longer applies to the subject.
The use of these extraordinary assumptions may have affected the assignment results.
1 The Appraisal Foundation, USPAP, 2014-2015 ed., U-3.
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Executive Summary
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HYPOTHETICAL CONDITIONS
A hypothetical condition is defined as “a condition, directly related to a specific assignment,
which is contrary to what is known by the appraiser to exist on the effective date of the
assignment results, but is used for the purposes of analysis.” 2
None noted
2 The Appraisal Foundation, USPAP, 2014-2015 ed., U-3.
© 2015 CBRE, Inc.
Table of Contents
xi
Table of Contents
Certification ......................................................................................................................... i
Subject Photographs ............................................................................................................ ii
Executive Summary ............................................................................................................ vii
Table of Contents ................................................................................................................ xi
Introduction ........................................................................................................................ 1
Area Analysis ...................................................................................................................... 5
Neighborhood Analysis ....................................................................................................... 7
Site Analysis ...................................................................................................................... 13
Improvements Analysis ...................................................................................................... 18
Tax Assessment Data ......................................................................................................... 26
Market Analysis ................................................................................................................. 27
Highest and Best Use ........................................................................................................ 32
Appraisal Methodology ..................................................................................................... 33
Land Value ........................................................................................................................ 34
Cost Approach .................................................................................................................. 39
Insurable Value ................................................................................................................. 43
Sales Comparison Approach ............................................................................................. 45
Income Capitalization Approach ........................................................................................ 52
Reconciliation of Value ...................................................................................................... 61
Assumptions and Limiting Conditions ................................................................................ 63
ADDENDA A Land Sale Data Sheets B Improved Sale Data Sheets C Rent Comparable Data Sheets D Assessor Records E Client Contract Information F Qualifications
© 2015 CBRE, Inc.
Introduction
1
Introduction
OWNERSHIP AND PROPERTY HISTORY
The subject was acquired by current ownership as an unimproved site by Community Action
Partnership of Kern County in February 2001 for $250,000. They developed the existing
buildings and recorded Parcel Map No. 11782, which subdivided the original site into six
parcels. The subject is comprised of four assessor parcels totaling 15.90 acres of land, which are
described on the next chart:
SUBJECT PROPERTY SUMMARY
Net Land Area Number Building
Parcel APN Address Acres SF Land Use of Bldgs Area (SF)Parcel One 167-060-37 1825 Feliz Drive 3.47 151,153 Childcare bldgs / Flex Bldg 4 20,794
Parcel Three 167-060-35 1807 Feliz Drive 1.67 72,745 Food bank warehouse 1 23,000
Parcel Four 167-060-34 1913 Feliz Drive 6.85 298,386 Excess land --- ---
Parcel Five 167-060-33 500 Washington Street 3.91 170,320 Excess land --- ---
Total 15.90 692,604 5 43,794
Source: Parcel Map No. 11782 and Building Plans
Parcel One (APN 167-060-37) is improved with: 1) a three-building childcare center with a
combined 8,794 square feet of building area that was completed in late July 2008, and 2) a
12,000-square-foot metal panel warehouse building with a 36.6% office build-out that was
completed in late October 2008. Parcel Three (APN 167-060-35) is improved with a 23,000-
square-foot metal panel constructed warehouse with a 10.3% office build-out that was built in
2004.
The 2.48-acre Parcel Two (APN 167-060-36) was previously owned by the subject owners but it
was deeded to the Kern County Superintendent of Schools on October 8, 2010 as part of a prior
agreement; there was no sale price.
The 0.624-acre Parcel Six (APN 167-060-32) was previously owned by the subject owners but it
was deeded to the City of Bakersfield on August 22, 2011 as part of an agreement to expand the
existing 1.04-acre sump on APN 167-060-23; there was no sale price.
To the best of our knowledge, there has been no ownership transfer of the property during the
previous three years.
To the best of our knowledge, the property is not currently listed nor has it been marketed for sale
the last three years.
INTENDED USE OF REPORT
This appraisal is to be used for potential mortgage underwriting, and no other use is permitted.
© 2015 CBRE, Inc.
Introduction
2
INTENDED USER OF REPORT
This appraisal is to be used by Wells Fargo Bank RETECHS, and no other user may rely on our
report unless as specifically indicated in the report.
Intended Users - the intended user is the person (or entity) who the appraiser intends will use the results of the appraisal. The client may provide the appraiser with information about other potential users of the appraisal, but the appraiser ultimately determines who the appropriate users are given the appraisal problem to be solved. Identifying the intended users is necessary so that the appraiser can report the opinions and conclusions developed in the appraisal in a manner that is clear and understandable to the intended users. Parties who receive or might receive a copy of the appraisal are not necessarily intended users. The appraiser’s responsibility is to the intended users identified in the report, not to all readers of the appraisal report. 3
PURPOSE OF THE APPRAISAL
The purpose of this appraisal is to estimate the market value of the subject property.
DEFINITION OF VALUE
The current economic definition of market value agreed upon by agencies that regulate federal
financial institutions in the U.S. (and used herein) is as follows:
The most probable price which a property should bring in a competitive and open market under
all conditions requisite to a fair sale, the buyer and seller each acting prudently and
knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this
definition is the consummation of a sale as of a specified date and the passing of title from seller
to buyer under conditions whereby:
1. buyer and seller are typically motivated; 2. both parties are well informed or well advised, and acting in what they consider their own
best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements
comparable thereto; and 5. the price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale. 4
INTEREST APPRAISED
The value estimated represents fee simple estate and defined as follows:
Fee Simple Estate - Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat. 5
3 Appraisal Institute, The Appraisal of Real Estate, 14th ed. (Chicago: Appraisal Institute, 2013), 50.
4 Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75 Number 237,
Page 77472.
© 2015 CBRE, Inc.
Introduction
3
SCOPE OF WORK
This Appraisal Report is intended to comply with the reporting requirements set forth under
Standards Rule 2 of USPAP. The scope of the assignment relates to the extent and manner in
which research is conducted, data is gathered and analysis is applied. CBRE, Inc. completed the
following steps for this assignment:
Extent to Which the Property is Identified
The property is identified through the following sources:
postal address assessor’s records legal description
Extent to Which the Property is Inspected
The inspection included the interior and exterior inspection of the existing structures (except for
the childcare facility classrooms) and the surrounding environs as of the date of value.
Type and Extent of the Data Researched
CBRE reviewed the following:
applicable tax data zoning requirements flood zone status demographics income and expense data comparable data
Type and Extent of Analysis Applied
CBRE, Inc. analyzed the data gathered through the use of appropriate and accepted appraisal
methodology to arrive at a probable value indication via each applicable approach to value. The
steps required to complete each approach are discussed in the methodology section.
5 Dictionary of Real Estate Appraisal, 78.
© 2015 CBRE, Inc.
Introduction
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Data Resources Utilized in the Analysis
DATA RESOURCE
Site Data Source:Size Parcel Map No. 11782 and Kern County Assessor map (12/22/2008)
Improved Data Source:Gross/Net Size Building plans
No. Bldgs. Inspection
No. Loading Doors Inspection
Clear Height Building plans
Parking Spaces Building plans
YOC Property owner
Economic Data Source:Building Costs: Property owner
Income & Expense Data: None
Compiled by CBRE
© 2015 CBRE, Inc.
Area Analysis
5
Area Analysis
Moody’s Economy.com provides the following Bakersfield, CA metro area economic summary as
of December 2014.
BAKERSFIELD, CA - ECONOMIC INDICATORS
Indicators 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Gross Metro Product (C$B) 38.7 38.7 37.2 38.8 41.8 40.1 40.0 41.5 43.1 44.6 45.7 46.8
% Change 3.0 0.0 -3.8 4.2 7.7 -4.1 -0.2 3.8 4.0 3.5 2.5 2.3
Total Employment (Ths) 241.6 231.4 229.3 235.9 245.2 249.8 255.1 262.2 267.8 270.5 271.2 271.4
% Change 0.0 -4.3 -0.9 2.9 3.9 1.9 2.1 2.8 2.1 1.0 0.2 0.1
Unemployment Rate (%) 9.8 14.3 15.9 15.0 13.3 11.8 10.6 9.0 7.8 6.8 6.3 6.3
Personal Income Growth (%) 4.4 -1.0 7.1 8.3 7.3 2.4 3.7 6.0 6.6 6.0 4.9 3.8
Median Household Income ($ Ths) 46.2 45.6 44.6 44.4 45.3 46.9 47.4 49.5 51.4 53.4 55.1 56.5
Population (Ths) 818.3 830.1 841.8 849.5 855.5 864.1 873.5 882.8 891.4 899.6 907.5 915.2
% Change 1.9 1.4 1.4 0.9 0.7 1.0 1.1 1.1 1.0 0.9 0.9 0.8
Net Migration (000) 4.8 1.5 2.0 -1.2 -2.7 0.0 0.3 0.1 -0.8 -1.2 -1.7 -2.0
Single-Family Permits 1,610.0 1,585.0 1,211.0 712.0 1,428.0 1,795.0 2,082.0 3,735.9 5,952.5 6,548.2 6,383.5 5,871.4
Multifamily Permits 983.0 192.0 445.0 257.0 577.0 523.0 372.5 344.7 413.1 353.3 338.3 339.0
Existing-Home Price ($ Ths) 192.7 131.2 136.1 132.5 143.6 186.9 207.4 225.3 241.7 255.1 266.8 279.5
Source: Moody's Economy.com
Bakersfield-Delano's economy is trudging forward, marked by steady growth that falls well short
of California's more impressive gains. Although Bakersfield is plagued by one of the nation's
highest unemployment rates, the growing labor force indicates that the household employment
picture is not nearly as gloomy as it first appears. Gains have been concentrated in food
manufacturing and mining support activities; though the former represents the continuation of a
© 2015 CBRE, Inc.
Area Analysis
6
multiyear trend, the pickup in mining support is likely a temporary blip. Healthcare, however,
continues to shed jobs, hurt by struggles at Kern Medical Center.
Long Bakersfield's bread and butter, the underachieving oil extraction industry has become a
source of major downside risk. Free-falling oil prices have not yet resulted in large-scale layoffs,
but energy companies have been forced to scale back investment. The metro area does have a
few factors working in its favor relative to its energy-dependent peers. Because of the challenges
associated with the Monterey Shale and the state's tough regulatory environment, new drilling
was already being held back in Bakersfield; with exploration more vulnerable to low prices than
production, this lends some stability to the metro area. Additionally, the local energy industry is
dominated by large firms such as Chevron, which typically take longer to react to changing
market conditions.
The longer oil prices stay depressed, however, the less these mitigating factors will matter. With
Bakersfield more dependent on energy jobs than any of the nation's other 100 most populated
metro areas, the ramifications of a prolonged slump are profound. The decision by Ensign
Energy to lay off 700 Kern County workers in December is a sign that firms may be preparing for
the worst.
The housing market, which was arguably the metro area's biggest worry until being supplanted
by concern about low oil prices, is poised to drive growth in the coming years. Foreclosure
inventory, which was four times higher than that of the U.S., is now about on par with the
national average. As this persistent source of downward price pressure diminishes and
household formation rebounds due to the metro area's improving economic fortunes, permit
issuance will begin to rise. Evidence of stronger household formation is found in declining rental
vacancy rates. Further, an extremely low office vacancy rate points to strength in the commercial
segment, meaning both residential and non-residential building will power construction gains.
With a series of headwinds abating, food producers and manufacturers will benefit. While a
statewide drought persists, an expected improvement in conditions will help support growers.
Additionally, reduced competition from drillers will keep farmland intact, ensuring that the
ingredients that local food manufacturers rely on will remain abundant. This will help the
industry to sustain recent gains, even as the breakneck pace of food production growth slows.
Because food processing accounts for an outsize share of manufacturing in Bakersfield, local
factories may easily outperform their peers elsewhere in the nation and state.
CONCLUSION – MOODY’S
The impact of low oil prices will further dampen the pace of Bakersfield-Delano's recovery,
placing it behind California and the nation. Although manufacturing, agriculture and housing
are all trending in the right direction, the economy is poorly positioned to thrive without a vibrant
energy industry. Oil prices will rebound, but a lack of industrial diversity and weak demographics
relative to the rest of the state and region will hold the metro area back.
© 2015 CBRE, Inc.
Neighborhood Analysis
7
Neighborhood Analysis
LOCATION
The subject is located in the city of Bakersfield, in an area generally referred to as Southeast
Bakersfield because it is located south of Highway 58 and east of Highway 99.
NEIGHBORHOOD BOUNDARIES
The neighborhood boundaries are summarized in the following chart.
North: Highway 58 East: Highway 184 South: Panama Road West: Highway 99
Local Access
Highway 58 is a primary east/west highway that extends from Highway 99 on the west to the
Tehachapi Mountains on the east. Approximately 3.5 miles east of the subject, Highway 184 is a
north/south highway that provides access in the southeastern portion of Bakersfield. Highway 99
is located approximately 3.5 miles west of the subject and is the primary north/south freeway
serving the greater Bakersfield area. Highway 99 traverses the Central Valley region of
© 2015 CBRE, Inc.
Neighborhood Analysis
8
California, and runs generally parallel to and east of Interstate 5. Highway 99 merges with
Interstate 5 approximately 30 miles south of Bakersfield.
Land Use
The subject area contains a mix of older residential development, some retail development,
industrial uses, school and county uses and municipal related uses. It also contains significant
tracts of undeveloped land.
Highway 58, extending east from Highway 99 to Highway 184, contains a significant
concentration of industrial development and a good mix of supporting retail and/or restaurant
related uses. Brundage Lane is a primary east/west surface street that runs parallel to and just
north of Highway 58, and uses are mostly industrial buildings and retail properties that benefit
from their access and/or exposure to the adjacent highway.
The subject area is not a primary residential location. Most new residential development in
Bakersfield has occurred in the northwest and southwest portions of the city, on former
agricultural sites. Development is oriented in these areas because of the ease of construction, as
these are relatively flat areas with good access to primary employment centers in the city.
The most significant public land use in the subject area is a city of Bakersfield sewage treatment
facility located approximately one mile south of the subject property on the east and west sides of
Mount Vernon Avenue; it is also about one mile south of Highway 58. Another large public land
use is located off the southeast quadrant of Highway 58 and Mount Vernon Avenue; the Kern
High School District operates a Regional Occupational Center (public education career/technical
training institution) on 128.44 acres.
A number of business parks were built in the period from 2003-2005 and they include the Di
Miller Industrial Park located off of Highway 58 along Highway 184, the East Brundage Business
Park on Highway 58 between Quantico and Oswell (a 9.2-acre, 5-lot subdivision), and the
Gateway Business Park along Highway 58 at Mount Vernon Avenue (a 73-acre Castle & Cooke
subdivision). Within the Gateway Business Park (located just east of the subject, east of
Washington Street) are a 21.24-acre California National Guard facility and a 6.27-acre FedEx
ground distribution center.
The largest proposed project in the neighborhood is the Mount Vernon Industrial Park project
(developer MS Walker) at the southeast corner of South Mount Vernon Avenue and Casa Loma
Drive, south of Highway 58. It was expected to cover 110 acres and comprise roughly 1 million
square feet of commercial space when completed. The project broke ground in September 2007
but then stalled. The site was marketed for sale in 2012 with engineering, plans, and approvals
for an industrial subdivision valued at $700,000; however it remains undeveloped.
Population Trends/Demographic Analysis
Selected neighborhood demographics in a one-, and three-mile radius from the subject along
with Bakersfield city figures are shown in the following table:
© 2015 CBRE, Inc.
Neighborhood Analysis
9
SELECTED NEIGHBORHOOD DEMOGRAPHICS1825 Feliz Drive
Bakersfield, CA
Population
2020 Population 11,009 127,874 293,202
2015 Population 10,552 123,693 283,912
2010 Population 10,060 119,763 274,786
2000 Population 7,996 104,017 237,563
Growth 2015 - 2020 0.85% 0.67% 0.65%
Growth 2010 - 2015 0.96% 0.65% 0.66%
Growth 2000 - 2010 2.32% 1.42% 1.47%
Households
2020 Households 2,729 35,611 89,213
2015 Households 2,622 34,366 86,335
2010 Households 2,517 33,095 83,483
2000 Households 2,010 29,962 76,931
Growth 2015 - 2020 0.80% 0.71% 0.66%
Growth 2010 - 2015 0.82% 0.76% 0.67%
Growth 2000 - 2010 2.27% 1.00% 0.82%
2015 Median HH Inc $25,198 $29,461 $35,742
2015 Estimated Average Household Income $33,103 $40,224 $48,770
2015 Estimated Per Capita Income $8,227 $11,176 $14,830
2015 Median Value of all Owner-Occ HUs $113,939 $118,316 $134,831
Age 25+ College Graduates - 2010 142 3,421 14,224
Age 25+ Percent College Graduates - 2015 2.6% 5.1% 8.8%Source: Claritas
1 Mile Radius
3 Mile Radius
5 Mile Radius
ADJACENT USES
Land uses adjacent to the subject are summarized in the following chart.
North: Older single-family residential
East: Undeveloped tracts of land and industrial properties
South: Undeveloped tracts of land
West: Radio broadcast antenna on 3.71 acres followed by school facility
© 2015 CBRE, Inc.
Neighborhood Analysis
10
CONCLUSION
The subject property is located in Southeast Bakersfield, a secondary area which has experienced
limited new residential and commercial growth over the last 20 years. It is an older lower
demographic area of Bakersfield. The neighborhood had new small-scale industrial
development (mostly metal buildings ranging in size from 5,000 to 10,000 square feet)
completed from 2007-2008 due in part to the significant amount of undeveloped land and the
good access to outlying residential neighborhoods and commercial markets by way of Highway
58 and Highway 184. However, much of this new development still remains vacant due to weak
market conditions and the fact that the Southeast Bakersfield industrial submarket is a tertiary
location. The subject is considered to have an average location suitable for industrial and retail
purposes but a below-average location overall for Bakersfield.
© 2015 CBRE, Inc.
Site Analysis
11
PLAT MAP
Parcel One (APN 167-060-37) is improved with: 1) a three-building childcare center with a combined 8,794 square feet of building area that was completed in late July 2008, and 2) a 12,000-square-foot metal panel warehouse building with a 36.6% office build-out that was completed in late October 2008.
Parcel Three (APN 167-060-35) is improved with a 23,000-square-foot metal panel constructed warehouse with a 10.3% office build-out that was built in 2004. All of the subject buildings are owner occupied and utilized by Community Action Partnership of Kern County, a non-profit organization that provides food and childcare services to low income households in Kern County. Parcel Four and Parcel Five are unimproved sites. The subject property is more fully described, legally and physically, within the enclosed report.
The 2.48-acre Parcel Two (APN 167-060-36) was previously owned by the subject owners but it was deeded to the Kern County Superintendent of Schools on October 8, 2010 as part of a prior agreement; there was no sale price.
The 0.624-acre Parcel Six (APN 167-030-32) was previously owned by the subject owners but it was deeded to the City of Bakersfield on August 22, 2011 as part of an agreement to expand the existing 1.04-acre sump on APN 167-060-23; there was no sale price.
© 2015 CBRE, Inc.
Site Analysis
12
PARCEL MAP NO. 11782
© 2015 CBRE, Inc.
Site Analysis
13
Site Analysis
The following chart summarizes the salient characteristics of the subject site.
SITE SUMMARY AND ANALYSIS
Physical Description
Gross Site Area 15.90 Acres 692,604 Sq. Ft.
Improved Site Area (Parcels One & Three) 5.14 Acres 223,898 Sq. Ft.
Primary Road Frontage Feliz Drive 864 Feet
Secondary Road Frontage Washington St. 675 Feet
Excess Land Area (Parcels Four & Five) 10.76 Acres 468,706 Sq. Ft.
Surplus Land Area None
Shape
Topography
Zoning District
Flood Map Panel No. & Date 06029C2325E Sept. 26, 2008
Flood Zone X
Adjacent Land Uses
Comparative Analysis
Access
Visibility
Functional Utility
Traffic Volume
Adequacy of Utilities
Landscaping
Drainage
Utilities Adequacy
Water Yes
Sewer Yes
Natural Gas Yes
Electricity Yes
Telephone Yes
Mass Transit Yes
Other Yes No Unknown
Detrimental Easements X
Encroachments X
Deed Restrictions X
Reciprocal Parking Rights X
Common Ingress/Egress X
Source: Various sources compiled by CBRE
Bakersfield Transit
City of Bakersfield
Southern California Gas Co.
City of Bakersfield
Verizon
Provider
California Water Service
Assumed adequate
Rating
Average
Average
Average
Average
Irregular
Level
M-1
Commercial, industrial, and residential uses
Average
Average
© 2015 CBRE, Inc.
Site Analysis
14
COMMENTS
The subject property consists of the four assessor parcels, which are summarized as follows:
SUBJECT SITE AREA
Net Land Area
Parcel APN Address Acres SF Land UseParcel One 167-060-37 1825 Feliz Drive 3.47 151,153 Childcare bldgs / Flex Bldg
Parcel Three 167-060-35 1807 Feliz Drive 1.67 72,745 Food bank warehouse
Parcel Four 167-060-34 1913 Feliz Drive 6.85 298,386 Excess land
Parcel Five 167-060-33 500 Washington Street 3.91 170,320 Excess land
Total 15.90 692,604
Source: Parcel Map No. 11782 (11/26/2008) and Kern County Assessor map (12/22/2008)
The four subject parcels have varying shapes and street frontages, which are summarized as
follows:
1) Parcel One has a rectangular shape and good exposure along the south side of Feliz Drive.
This parcel is fully improved with the three-building childcare center and a highly improved
warehouse, and has concrete curbs, gutters and sidewalks along the street frontage with Feliz
Drive.
2) Parcel Three is rectangular in shape but is located directly south of and behind Parcel One and
does not have direct exposure to Feliz Drive or any other surface street. Current vehicular access
is via an asphalt driveway over adjacent parcels to the west and south to Belle Terrace. This
parcel is improved with a metal warehouse used as a food bank distribution center.
3) Parcel Four is L-shaped in configuration and has exposure along the south side of Feliz Drive.
This parcel is finished with concrete curbs, gutters and sidewalks along the street frontage with
Feliz Drive, and has all utilities stubbed to the parcel.
4) Parcel Five is rectangular in shape and has frontage on both Feliz Drive and Washington
Street. This parcel does not have any street improvements along Feliz Drive or Washington
Street.
EASEMENTS
There is currently no vehicular access to Parcel Three (Food Bank building) from Feliz Drive.
Current vehicular access to Parcel Three is via an asphalt paved driveway over three adjacent
assessor parcels (unimproved lots), APN 167-060-36 (Parcel Two) to the west and APNs 167-
060-28 and -30 to the south, which lead to Belle Terrace, a road that links to Cottonwood
Avenue, a primary north/south street.
The 2.48-acre Parcel Two was previously owned by the subject owners but it was deeded to the
Kern County Superintendent of Schools on October 8, 2010 as part of a prior agreement; there
was no sale price. APNs 167-060-28 and -30 are owned by the Kern County Board of
© 2015 CBRE, Inc.
Site Analysis
15
Education. We have not reviewed a current title report. We are unaware of any recorded
easement, if any. We have assumed that vehicular access to the site will be available over these
adjacent parcels. We encourage the client to review a current title report prior to making a
business decision.
CONCLUSION
Parcel One and Parcel Three are well suited for the existing uses and could readily accommodate
any of the legally permitted uses. Parcel Three has below average access and visibility.
Parcel Four and Parcel Five are excess land and could readily accommodate any of the legally
permitted uses.
© 2015 CBRE, Inc.
Improvements Analysis
16
SITE PLAN
© 2015 CBRE, Inc.
Improvements Analysis
17
IMPROVEMENTS LAYOUT
FLEX BUILDING (36.6% OFFICE)
FOOD BANK BUILDING
© 2015 CBRE, Inc.
Improvements Analysis
18
Improvements Analysis
The following chart shows a summary of the improvements.
IMPROVEMENTS SUMMARY AND ANALYSIS
Industrial
Loading Area
Building Name Parcel Improvement Type % A/C Size (SF) % OfficeClear Height
Year Built / Renovated
Office/Warehouse Parcel One Metal Flex Building 36.6% 12,000 36.6% 16 Ft. 2008
Chilldcare Bldg 100 Parcel One Metal Office/Admin Bldg. 100.0% 1,968 100.0% 10-12 Ft. 2008
Childcare Bldg 200 Parcel One Metal Childcare Bldg. 100.0% 2,294 100.0% 10-12 Ft. 2008
Childcare Bldg 300 Parcel One Metal Childcare Bldg. 100.0% 4,532 100.0% 10-12 Ft. 2008
Food Bank Parcel Three Metal Warehouse 13.0% 23,000 13.0% 20 Ft. 2004
Total/Average: 26.9% 43,794 26.9%
Source: Various sources compiled by CBRE
0 SF
Dock High Overhead Doors
Grade Level Overhead Doors 3 (Flex Building) and 2 (Food Bank)
Food Bank has exterior truck well with dock leveller
5.11 : 1
Site Coverage
Land-to-Building Ratio
5
(36.9% of Total)
1
43,794 SF
Child Care Center
Parking Improvements
Number of Buildings
Number of Stories
Gross Building Area
8,794 SF
27,618 SF
16,176 SF
(63.1% of Total)
19.6%
Unfinished Mezzanine (not included with GBA)
Property Type
Area Breakdown by Market Rent Categories
Office Area
Warehouse Area
Total Spaces:
Surface asphalt paved
139
Food Bank Building 23,000 SF
Flex Building 12,000 SF
Building plans and specifications were prepared by Colombo Construction Company. The
following is a description of the subject improvements and basic construction features derived
from these plans and CBRE’s inspection.
YEAR BUILT
The subject food bank warehouse on Parcel Three was built in 2004. The three childcare
buildings on Parcel One were completed in late July 2008 and opened for occupancy in August
2008. The flex building on Parcel One was completed in late October 2008 and opened for
occupancy in November 2008.
CONSTRUCTION COMPONENTS
Office Area
The construction components and interior finish of the office space is summarized as follows:
© 2015 CBRE, Inc.
Improvements Analysis
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Foundation: The foundation for the food bank warehouse consists of a 5.5-inch concrete slab over two inches of sand over compacted soil. The foundations for the childcare buildings consist of 4.0-inch thick concrete slabs over two inches of sand over compacted soil. The foundation of the flex building consists of: 1) a 4.0-inch thick concrete slab over two inches of sand over compacted soil in the office portion of the building; and 2) a 6.0-inch thick concrete slab over two inches of sand over compacted soil in the warehouse portion of the building.
Exterior Walls: The exterior wall structure for the food bank warehouse is metal panel, with a painted stucco cover on the office portion of the building. The exterior wall structure of the childcare buildings is wood frame with a painted stucco exterior. The exterior wall structure for the flex building is metal panel construction. The exterior walls in the office portion of the food bank warehouse are insulated. The exterior walls in the childcare buildings have 6.0-inch thick sound blanket insulation and gypsum board to the underside of the roof joists. The exterior walls in the flex building have 6.0-inch thick sound blanket insulation and gypsum board to the underside of the roof joists in the office portion of the building.
Roof Cover: The food bank warehouse and flex building have pitched metal roofs with a rolled composition cover. The childcare buildings have pitched metal roofs with a rolled composition cover.
Floor Coverings: Office area floor coverings in the food bank warehouse consist of commercial grade short loop carpeting and vinyl tile over concrete. The childcare buildings have floor coverings of commercial grade short loop carpeting and vinyl tile over concrete. The flex building warehouse has smooth sealed concrete floors in the office areas of the building.
Interior Walls: The interior walls in the food bank building consist of a metal framework with painted gypsum board. The interior walls of the childcare buildings consist of a metal framework with painted gypsum board. The interior walls of the flex building consist of a metal framework with painted gypsum board.
Ceilings: The ceiling in the office area of the food bank warehouse is comprised of a suspended grid of acoustical tiles. The childcare buildings have ceilings of suspended acoustical tiles and painted gypsum board. The flex building has
© 2015 CBRE, Inc.
Improvements Analysis
20
office area ceilings of suspended acoustical ceiling tiles and painted gypsum board.
Lighting: Office area lighting in the food bank warehouse is provided by suspended fluorescent tube fixtures. Lighting in the childcare buildings is provided by suspended fluorescent tube fixtures. Office area lighting in the flex building is provided by suspended fluorescent tube fixtures.
Mezzanine Space: None of the buildings contain any mezzanine space.
HVAC: The HVAC system in the food bank warehouse is assumed to be in good working order and adequate for the building. The HVAC system for the childcare buildings consist of: 1) three Carrier natural gas furnaces with rated capacities of 56,000 to 75,000 BTUs; 2) three Carrier condenser units with rated capacities of 34,000 to 58,000 BTUs; and 3) three Greenbeck exhaust fans with rated capacities of 97 to 177 cubic feet per minute. The HVAC system in the childcare buildings is assumed to be in excellent working order and adequate for the buildings. The HVAC system for the flex building consist of: 1) four Carrier natural gas furnaces with rated capacities of 60,000 to 80,000 BTUs; 2) four Carrier condenser units with rated capacities of three to five tons; 3) three Cook exhaust fans with rated capacities of 90 to 450 cubic feet per minute; and 4) one Mastercool evaporative cooler with a rated capacity of 16,000 cubic feet per minute. The HVAC system in the flex building is assumed to be in good working order and adequate for the building.
Electrical: The electrical system for the buildings are assumed to be in good working order and adequate for the buildings.
Plumbing: The plumbing system for the buildings are assumed to be in good working order and adequate for the buildings.
Restrooms: The restrooms in the buildings are assumed to be adequate and built to local code.
Fire Protection: The buildings are fully fire sprinklered, and all building areas will be equipped with smoke detectors. It is assumed the improvements have adequate fire alarm systems, fire exits, fire extinguishers, fire escapes and/or other fire protection measures to meet local fire marshal requirements.
Condition Summary: The interior areas are typical building standard office finish, and are commensurate with competitors in the area.
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Improvements Analysis
21
Warehouse Area
The construction components and interior finish of the warehouse space is summarized as
follows:
Foundation: The foundation for the existing food bank warehouse consists of a 5.5-inch concrete slab over two inches of sand over compacted soil. The foundation of the flex building consists of: 1) a 4.0-inch thick concrete slab over two inches of sand over compacted soil in the office portion of the building; and 2) a 6.0-inch thick concrete slab over two inches of sand over compacted soil in the warehouse portion of the building. The foundation structure and condition does not appear to be a limiting factor with regard to potential industrial uses.
Exterior Walls: The exterior wall structure for the food bank warehouse is metal panel. The exterior wall structure for the flex building is metal panel.
Roof Cover: The food bank warehouse has a pitched metal roof with a rolled composition cover. The flex building has a pitched metal roof with a rolled composition cover.
Floor Coverings: The food bank warehouse has unpainted smooth concrete floors. The flex building has unpainted smooth concrete floors.
Insulation: The exterior walls in the warehouse portion of the food bank warehouse are insulated with a six-inch thick sound blanket. The roof of the food bank building is insulated with a six-inch thick sound blanket. The exterior walls in the warehouse portion of the flex building are not insulated. The roof of the flex building is insulated with a six-inch thick sound blanket.
Lighting: Lighting within the warehouse area of the food bank warehouse is provided by suspended metal halide fixtures and skylights. The lighting in the warehouse area of the flex building is provided by suspended halide fixtures and skylights.
Mezzanine Space: The food bank building and flex building do not provide any mezzanine space.
Electrical: The electrical system for the buildings are assumed to be in good working order and adequate for the buildings.
Plumbing: The plumbing system for the buildings are assumed to be in good working order and adequate for the buildings.
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Improvements Analysis
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Restrooms: The restrooms in the food bank warehouse and flex building are adequate and are assumed built to local code.
Clear Height: The food bank building has a clear height of 20 feet. The flex building has a clear height of 16 feet.
Loading: The food bank building has three grade level truck loading position and an exterior truck well with dock leveler. The flex building has three grade-level truck loading positions.
Fire Protection: The food bank building and flex building are fully fire sprinklered, and all building areas are equipped with smoke detectors. It is assumed the improvements have adequate fire alarm systems, fire exits, fire extinguishers, fire escapes and/or other fire protection measures to meet local fire marshal requirements.
Condition Summary: The interior areas are typical building-standard warehouse finish and are commensurate with competitors in the area.
FURNITURE, FIXTURES & EQUIPMENT (FF&E)
The subject 23,000-square-foot food bank warehouse has FFE in the form of a 2011 installed
900-square-foot (20-by-45-foot) cooler unit (about 14-foot tall) that provides refrigeration at
temperatures of 33 to 36 degrees; it replaced an older cooler unit. The facilities manager
reported a new freezer, also 20-by-45-foot was installed in 2014. The cooler/freezer units are
personal property and not a part of the valuation of the subject property.
SITE COVERAGE
Parcel One, consisting of the three childcare buildings and the flex building, has a land to
building ratio of 7.27 to 1, which is relatively high for the Bakersfield industrial market; however
the layout of the use of the parking/yard areas around the flex building is average with no
adjustment required. Parcel Three (food bank warehouse) has a land to building ratio of 3.54 to
1, which is generally consistent with newer industrial product in the Bakersfield industrial market.
SECURITY
The security system for each building is assumed to be in good working order and adequate.
PARKING AND DRIVES
Parcel One provides 81 surface uncovered parking spaces, or 3.9 spaces per 1,000 square feet
of building area. Parcel Three provides 58 surface uncovered parking spaces, or 2.5 spaces per
1,000 square feet of building area. All parking spaces and vehicle drives are asphalt paved and
in good condition. The number of parking spaces is legally conforming for the existing use, and
appears commensurate with other facilities in the neighborhood.
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Improvements Analysis
23
LANDSCAPING
The subject landscaping is considered to be in good condition.
QUALITY AND STRUCTURAL CONDITION
The overall quality of the subject buildings is average to good for the neighborhood and age.
CBRE did not observe any evidence of structural fatigue and the improvements appear structurally
sound for occupancy. However, CBRE is not qualified to determine structural integrity and it is
recommended that the client/reader retain the services of a qualified, independent engineer or
contractor to determine the structural integrity of the improvements prior to making a business
decision.
FUNCTIONAL UTILITY
The existing food bank warehouse is considered functional in utility and provides adequate
accessibility for warehousing, assembly, and other light industrial uses. The flex building is
considered functional in utility and provides adequate accessibility for warehousing, assembly,
and other light industrial uses but it has a high ratio of office space (36.6% while most industrial
properties in the area have a 10-20% office build-out).
The childcare buildings, however, due to their full office build-out, have a lower level of utility due
to the less significant demand for office space as compared to light industrial/warehouse space in
the greater subject area.
ADA COMPLIANCE
The client/reader’s attention is directed to the specific limiting conditions regarding ADA
compliance.
ENVIRONMENTAL ISSUES
CBRE has not observed and is not qualified to detect the existence of any potentially hazardous
materials such as lead paint, asbestos, urea formaldehyde foam insulation, or other potentially
hazardous construction materials on or in the improvements. The existence of such substances
may affect the value of the property. For the purpose of this assignment, we have specifically
assumed that any hazardous materials that would cause a loss in value do not affect the subject.
DEFERRED MAINTENANCE
Our inspection of the property indicated no items of deferred maintenance.
ECONOMIC AGE AND LIFE
CBRE’s estimate of the effective age and remaining economic life for the subject improvements is
depicted in the following chart:
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Improvements Analysis
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ECONOMIC AGE AND LIFE
Actual Age 9 Years
Effective Age 6 Years
MVS Expected Life 45 Years
Remaining Economic Life 39 Years
Accrued Physical Incurable Depreciation 13.3%
Compiled by CBRE
The actual age is the weighted average age for the five subject buildings.
CONDITION ANALYSIS
The buildings are in good condition. Overall, there are no known factors that adversely impact
the marketability of the improvements.
ZONING
The following chart summarizes the subject’s zoning requirements.
ZONING SUMMARYCurrent Zoning M-1
Legally Conforming Yes
Uses Permitted Light industrial and commercial uses including warehouse, storage,office, and/or retail uses. Residential uses are not permitted.
Zoning Change Not likely
Category Zoning Requirement
Minimum Lot Size None
Minimum Lot Width None
Maximum Height 75 feet or six stories
Minimum Setbacks
Front Yard 10 Feet
Street Side Yard None
Interior Side Yard None
Rear Yard None
Maximum Bldg. Coverage None
Maximum FAR/Density None
Parking Requirements For commercial space, one parking space per 300 SF of floor area. For warehouse space, one parking space per 1,000 SF of floor area. The subject is required to provide a total of 82 parking spaces.
Subject's Actual Parking The subject provides 139 parking spaces.
Source: City of Bakersfield Planning & Zoning Dept.
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Improvements Analysis
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CONCLUSION
The improvements are considered to be in good overall condition. The existing food bank
warehouse is considered functional in utility and provides adequate accessibility for warehousing,
assembly, and other light industrial uses. The flex building is considered functional in utility and
provides adequate accessibility for warehousing, assembly, and other light industrial uses but it
has a high ratio of office space (36.6% while most industrial properties in the area have a 10-
20% office build-out). The childcare buildings, however, due to their full office build-out, have a
lower level of utility due to the less significant demand for office space as compared to light
industrial/warehouse space in the greater subject area.
Overall, there are no other known factors that could be considered to adversely impact the
marketability of the improvements.
© 2015 CBRE, Inc.
Tax Assessment Data
26
Tax Assessment Data
In California, privately held real property is typically assessed at 100% of full cash value (which is
interpreted to mean market value of the fee simple estate) as determined by the County Assessor.
Generally, a reassessment occurs only when a property is sold (or transferred) or when new
construction occurs (as differentiated from replacing existing construction). In the case of long-
term ground leases, the general rule is that a reassessment is made at the time of assigning or
terminating a lease where the remaining term is more than 35 years. For reassessment
purposes, the lease term includes all options to extend. Assessments for properties that were
acquired before the tax year 1975-1976 were stabilized as of the tax year 1975-1976. Property
taxes are limited by state law to 1% of the assessed value plus voter-approved obligations and
special assessments. If no sale (or transfer) occurs or no new building takes place, assessments
may not increase by more than 2% annually. The following table summarizes the actual and pro
forma assessment values.
AD VALOREM TAX INFORMATION
Assessor's Market Value Property Description 2014/2015
167-060-33 Vacant Land $61,531
167-060-34 Vacant Land 107,794
167-060-35 Food Bank 1,449,880
167-060-37 School & Storage Building 2,355,192
Subtotal $3,974,397
Assessed Value @ 100%
$3,974,397
Less Exemption Value $1,668,128
Net Taxable Value $2,306,269
General Tax Rate (per $100 A.V.) 1.120000
General Tax: $25,830
100% Abated General Taxes (Non-Profit) parcels -35 and -37 ($23,952)
Special Assessments: 638
Total Taxes $2,516
Source: Kern County Assessor's Office
For purposes of this analysis, CBRE, Inc. assumes that all taxes are current. If the subject sold for
the value estimate in this report, a reassessment at that value would most likely occur, with tax
increases limited to two percent annually thereafter until the property is sold again. The
consequences of this reassessment have been considered in the appropriate valuation sections.
© 2015 CBRE, Inc.
Market Analysis
27
Market Analysis
The subject is in the Bakersfield industrial market. In order to support basic assumptions
regarding future demand for industrial space, we have completed an overview of the market
conditions for the local market. We have also reviewed information from Costar Group.
BAKERSFIELD INDUSTRIAL SUBMARKETS
The Bakersfield Industrial Market is divided into five major submarkets: the Airport (North) and
the Oilpatch (Northwest), the Stockdale Industrial Park (Southwest), Downtown Bakersfield, and
the Highway 58 Corridor (Southeast). They are discussed geographically from north to south.
Airport Submarket (North)
The Airport is “ground zero” for industrial growth in Bakersfield. The majority of new industrial
construction in Bakersfield over the last decade has occurred in the Airport submarket, defined by
Costar as the area north of the Highway 99 and Golden State Highway intersection and points
north of Highway 99 and north of the Kern River to the city limits. It has emerged due to its
access to/from Highway 99. It was historically an outlying location; however with the extensive
amount of residential growth in northwest Bakersfield, the local workforce now has good access
to this developing employment center.
New development (oil production driven) is concentrated in two newer industrial parks – the
North Meadows Business Park and the Airport Commerce Center North. The North Meadows
Business Park is a 149.55 net acre development located on the west side of Highway 65, north of
7th Standard Road, and west of the Meadows Field international Airport. Lots are available from
1.15 to 20.85 acres. The Airport Commerce Center North is a 116-acre four-phase
development (24.56 acres Phase I) that has a secondary Airport submarket location located at
the southwest corner of Airport Drive and James Road, north of 7th Standard Road and the
airport. Lots are available from 0.66 to 3.22 acres. Land sale activity in these parks is mainly by
owner-users.
Oilpatch Submarket (Northwest)
The Oilpatch submarket is defined by Costar as the area west of Highway 99, north of the
Westside Parkway and Kern River out to the city limits. Rosedale Highway is the primary
transportation corridor through this submarket. It is home to the majority of heavy industrial (M-3
zone) users located between Highway 99 and Coffee Road. Finished land is a scarce commodity
as industrial parks within the Oilpatch are sold out.
There was tremendous single-family growth in Northwest Bakersfield prior to the recession. As a
result, a number of newer industrial projects were built to serve the growing residential
population. They include the Golden State Industrial Park off of Allen Road between Rosedale
Highway and Hageman Road, a 26-acre subdivision with 17 lots; and the Riverlakes Industrial
Park along Meany Avenue between Coffee and Patton, a 15-acre subdivision.
© 2015 CBRE, Inc.
Market Analysis
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There is limited small-scale speculative development in this secondary submarket.
Stockdale Submarket (Southwest)
The Southwest submarket is defined by Costar as the area west of Highway 99, south of the
Westside Parkway and Kern River, north of Panama Lane and west out to the city limits.
The Stockdale Industrial Park (“SIP”) was Bakersfield’s first master-planned, CC&R–controlled
industrial park that is located in southwest Bakersfield about three miles west of Highway 99. It is
now a 560-acre fully absorbed park with uses ranging from small owner/user metal buildings,
business parks, and heavy manufacturing buildings. There is additional land for development as
some lots are being re-sold or older low density uses are being replaced with new buildings.
The only active industrial subdivision within the Stockdale area is the Gosford Business Park – an
extension to the Stockdale Industrial Park. It is a 75-acre subdivision being built-out in phases by
Castle & Cooke, with very strict CC&R’s in place and very strict selling criteria (only users may
apply). Lots range in size from 1.14 to 6.48 acres and were first sold in 2004. Phase III of the
development opened in 2008 and these lots are currently for sale.
This submarket was the primary industrial hub for Bakersfield but it is being by-passed due to
superior freeway access in the Airport submarket. Continued residential growth is expected
further west and south, which will make this submarket a stable employment center.
Downtown Submarket
Downtown Bakersfield is bound by the Kern River and Columbus Street to the north, Highway 58
to the south, Union Avenue to the east and Highway 99 to the west. It is characterized by many
older small-scale properties with an owner-user orientation.
The largest concentration of newer properties is located off Buck Owens Boulevard, off the
southeast quadrant of Highway 99 and the Golden State Highway.
Highway 58 Submarket (Southeast)
The Highway 58 sub-market is a tertiary location defined by CoStar as south of the rail
line/Edison Highway, north of Panama Lane, east of Highway 99, and west of Weedpatch
Highway, bisected by Highway 58. A number of business parks were built in the period from
2003-2005 and they include the Di Miller Industrial Park located off of Highway 58 along
Highway 184, the East Brundage Business Park on Highway 58 between Quantico and Oswell (a
9.2-acre, 5-lot subdivision), and the Gateway Business Park along Highway 58 at Mount Vernon
Avenue (a 73-acre Castle & Cooke subdivision).
A number of speculative industrial developments were completed in 2007-2009 as these projects
were launched prior to the recession. Most are metal buildings oriented towards users in the
5,000 to 10,000-square-foot range.
This is a tertiary submarket due to its outlying location and is a lower cost alternative to the other
submarkets.
© 2015 CBRE, Inc.
Market Analysis
29
Summary
There was speculative and owner-built new construction as the market struggled with a limited
supply in 2007. However, due to the August 2007 credit crunch and the resulting housing
market crisis, industrial activity in Bakersfield slowed. There was significant amount of new
supply delivered in the 2007/2008 (see Rents Two and Four totaling 59,200 square feet), which
remain vacant. Absorption is slow and this trend is expected to continue in the short-term.
COSTAR INDUSTRIAL REPORT
Based on the First Quarter 2015 CoStar Industrial Report for Bakersfield, the regional industrial
market contains 24,775,846 square feet of existing industrial product. Downtown Bakersfield is
comprised of older small industrial buildings. The Southwest Bakersfield submarket has
historically been the dominant neighborhood but the most growth has been in the Northwest
(Airport) area over the last decade. The subject is in the Southeast submarket, which
geographically includes a larger area than prior surveys. The following chart summarizes the
regional industrial market.
YTD Net YTD Under Quoted
Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates
Downtown 160 1,883,639 123,176 123,176 6.5% (3,309) - - $5.13
North Bakersfield 249 4,496,817 111,299 111,299 2.5% (7,515) 5,850 121,306 $8.44
Northeast Bakersfield 114 1,282,335 43,562 43,562 3.4% - - - $5.07
Northwest Bakersfield 428 4,497,633 58,159 58,159 1.3% (8,050) 19,286 20,000 $9.49
South Bakersfield 51 499,465 34,040 42,040 8.4% (9,600) - - $10.03
Southeast Bakersfield 329 7,073,903 357,227 357,227 5.0% (19,606) - - $5.53
Southwest Bakersfield 198 5,042,054 362,353 362,353 7.2% 10,159 18,000 - $7.82
West Outlying Kern County - - - - 0.0% - - - $0.00
Totals 1,529 24,775,846 1,089,816 1,097,816 4.4% (37,921) 43,136 141,306 $7.20
Source: CoStar Property
Existing Inventory Vacancy
BAKERSFIELD INDUSTRIAL MARKET - FIRST QUARTER 2015
The CoStar report indicates the Southeast Bakersfield submarket has a vacancy rate of 5.0%,
which is higher than the regional vacancy rate of 4.4%.
Asking annual rental rates for available space range from $5.07 to $10.03 per square foot with
an average asking annual rent of $7.20 per square foot for the region. The low end is
characterized by large distribution buildings generally 300,000 square feet and larger in the
Tejon Ranch area or Shafter. The average asking rent for the Southeast Bakersfield submarket
was $5.53 per square foot per year, which is much lower than the average asking rent for the
region.
New industrial development in the region has typically been on a build-to-suit basis with minimal
speculative construction.
Southeast Bakersfield Submarket Trends
The following illustrates trend data for the specific submarket.
© 2015 CBRE, Inc.
Market Analysis
30
SUBJECT TRENDS AND PROJECTIONS
Occupancy
Occupancy rate is the relationship between the actual income received from a property and the
income that would be received if the entire space were occupied.
SUBJECT’S HISTORICAL TRENDS
The subject is multi-building industrial property that is fully occupied on an owner-user basis.
OCCUPANCY
Year % PGI
Current Year 100%
CBRE Estimate 94%
Compiled by CBRE
CONCLUSION
Based on the foregoing analysis, CBRE’s conclusion of stabilized occupancy for the subject is
illustrated in the following table. This estimate considers both the physical and economic factors
of the market.
OCCUPANCY CONCLUSIONS
Area Occupancy
CoStar - Bakersfield Area - 1stQ 2015 95.6%
CoStar - Southeast Bakersfield - 1stQ 2015 95.0%
Rent Comparables N/A
Subject Current Occupancy 100.0%
Subject Stabilized Occupancy 94.0%
Compiled by CBRE
© 2015 CBRE, Inc.
Market Analysis
31
Stabilized Vacancy and Collection Loss
CBRE’s conclusion of combined stabilized vacancy and collection loss of 8.0% is illustrated in the
following table.
VACANCY
Year % PGI
Current 0.0%
CBRE Estimate 6.0%
Compiled by CBRE
CREDIT LOSS
Year % PGI
CBRE Estimate 2.0%
Compiled by CBRE
CONCLUSION
The subject is located in the southeastern portion of Bakersfield, in a tertiary industrial submarket.
The subject also has below average freeway access and is in proximity to non-industrial uses.
Adjacent uses include vacant land, small owner-user industrial, large manufacturing and
distribution facilities, offices, older single-family residential, and public facility types (sewer
treatment plant, California National Guard and ROC). The Southeast industrial submarket
exhibits below average occupancy compared to the region with the quoted asking rent is lower
than the region overall. The local industrial market conditions for Southeast Bakersfield are
anticipated to be weak (limited leasing activity) with no significant improvement expected in the
short-term. It is largely an owner/user driven submarket and no recent speculative development.
© 2015 CBRE, Inc.
Highest and Best Use
32
Highest and Best Use
In appraisal practice, the concept of highest and best use represents the premise upon which
value is based. The four criteria the highest and best use must meet are:
legally permissible; physically possible; financially feasible; and maximally productive.
The highest and best use analysis of the subject is discussed below.
AS VACANT
The property is zoned for industrial use and is of sufficient size to accommodate various types of
development. The immediate area includes various industrial land uses. Considering the
surrounding land uses, location attributes, legal restrictions and other factors, it is our opinion
that an industrial oriented use would be reasonable and appropriate. Therefore, it is our opinion
that the highest and best use would be for industrial-related use, time and circumstances
warranting.
AS IMPROVED
As improved, the subject involves an industrial-oriented facility. The current use is legally
permissible and physically possible. The improvements continue to contribute value to the
property and based on our analysis, the existing use is financially feasible. As indicated by the
valuation approaches (the cost and income approach values are well below the sales comparison
approach), owner/users are clearly the only market participants because the income approach
does not justify new construction (income approach values are below the cost approach, thus
speculative construction is not financially feasible). Therefore, it is our opinion that the highest
and best use of the subject, as improved, is for continued industrial related use.
© 2015 CBRE, Inc.
Appraisal Methodology
33
Appraisal Methodology
In appraisal practice, an approach to value is included or omitted based on its applicability to the
property type being valued and the quality and quantity of information available.
COST APPROACH
The cost approach is based on the proposition that the informed purchaser would pay no more
for the subject than the cost to produce a substitute property with equivalent utility. This approach
is particularly applicable when the property being appraised involves relatively new improvements
that represent the highest and best use of the land, or when it is improved with relatively unique
or specialized improvements for which there exist few sales or leases of comparable properties.
SALES COMPARISON APPROACH
The sales comparison approach utilizes sales of comparable properties, adjusted for differences,
to indicate a value for the subject. Valuation is typically accomplished using physical units of
comparison such as price per square foot, price per unit, price per floor, etc., or economic units
of comparison such as gross rent multiplier. Adjustments are applied to the physical units of
comparison derived from the comparable sale. The unit of comparison chosen for the subject is
then used to yield a total value. Economic units of comparison are not adjusted, but rather
analyzed as to relevant differences, with the final estimate derived based on the general
comparisons.
INCOME CAPITALIZATION APPROACH
The income capitalization approach reflects the subject’s income-producing capabilities. This
approach is based on the assumption that value is created by the expectation of benefits to be
derived in the future. Specifically estimated is the amount an investor would be willing to pay to
receive an income stream plus reversion value from a property over a period of time. The two
common valuation techniques associated with the income capitalization approach are direct
capitalization and the discounted cash flow (DCF) analysis.
METHODOLOGY APPLICABLE TO THE SUBJECT
In valuing the subject, all three approaches are applicable and have been utilized. In addition,
the replacement cost has been utilized within the analysis of insurable value.
© 2015 CBRE, Inc.
Land Value
34
Land Value
The following map and table summarize the comparable data used in the valuation of the subject
site. A detailed description of each transaction is included in the addenda.
SUMMARY OF COMPARABLE LAND SALES
Actual Sale Adjusted Sale Size Size Price Per PriceNo. Property Location Type Date Zoning Price Price 1 (Acres) (SF) Acre Per SF
1 6747 East Brundage Lane, Bakersfield, CA
Sale Oct-14 M-1 $305,000 $305,000 3.00 130,680 $101,667 $2.33
2 East Brundage Lane & Sterling Road, Bakersfield, CA
Sale Sep-14 M-1 $150,000 $150,000 2.74 119,354 $54,745 $1.26
3 508 Workman Street, Bakersfield, CA
Sale May-13 M-3 $160,000 $160,000 1.38 60,178 $115,816 $2.66
4 Rooster Drive, Bakersfield, CA
Sale Apr-13 M-2 $265,000 $265,000 2.02 87,991 $131,188 $3.01
Subject Parcel One Childcare Buildings and New Warehouse Building Bakersfield, CA
--- --- M-1 --- --- 3.47 151,153 --- ---
1 Transaction amount adjusted for cash equivalency and/or development costs (where applicable)
Compiled by CBRE
Transaction
© 2015 CBRE, Inc.
Land Value
35
In estimating the land value for the subject, we have first estimated the land value for Parcel One,
a 3.47-acre (net) site that has frontage on Feliz Drive. This site is considered to be the most
“typical” of the subject’s four parcels in terms of size, configuration, access/exposure to adjacent
streets, and development potential. We have then utilized the concluded value for Parcel One as
a benchmark to determine the land values for Parcel Three, Parcel Four, and Parcel Five.
SUMMARY OF ADJUSTMENTS
The following chart summarizes the adjustments warranted to each comparable.
LAND SALES ADJUSTMENT GRID - PARCEL ONE
Comparable Number 1 2 3 4 Subject
Transaction Type Sale Sale Sale Sale ---
Transaction Date Oct-14 Sep-14 May-13 Apr-13 ---
Zoning M-1 M-1 M-3 M-2 M-1
Actual Sale Price $305,000 $150,000 $160,000 $265,000 ---
Adjusted Sale Price 1 $305,000 $150,000 $160,000 $265,000 ---
Size (Acres) 3.00 2.74 1.38 2.02 3.47
Size (SF) 130,680 119,354 60,178 87,991 151,153
Price ($ PSF) $2.33 $1.26 $2.66 $3.01
Property Rights Conveyed 0% 0% 0% 0%Financing Terms 1 0% 0% 0% 0%
Conditions of Sale 0% 0% 0% 0%
Market Conditions (Time) 0% 0% 0% 0%
Subtotal $2.33 $1.26 $2.66 $3.01Size 0% 0% -10% -10%
smaller size smaller sizeShape 0% 25% 0% 0%
Flag lotCorner 0% 0% 0% 0%Frontage -10% -10% 0% 0%
Brundage frontage
Hwy 58 frontage
Topography 0% 0% 0% 0%Location 0% 0% 0% 0%Zoning/Density 0% 0% 0% 0%Utilities 0% 0% 0% 0%Highest & Best Use 0% 0% 0% 0%
Total Other Adjustments -10% 15% -10% -10%
Value Indication for Subject $2.10 $1.45 $2.39 $2.71
1 Transaction amount adjusted for cash equivalency and/or development costs (where applicable)
Compiled by CBRE
© 2015 CBRE, Inc.
Land Value
36
In addition to the comparable land sales shown in the preceding charts, we are also aware that
in 2008, the 6.85-acre Parcel Four and the 3.91-acre Parcel Five were marketed for sale at an
asking price of $2.00 per square foot of land area. These two parcels were under contract in
late September 2008 at a price of approximately $1.75 per square foot to a single buyer on the
combined 10.76-acre site. However, the buyer was unable to obtain a loan to complete the
acquisition and therefore the purchase contract was cancelled. Market conditions have
deteriorated since 2008.
LAND VALUE CONCLUSION – PARCEL ONE
The comparable land sales provide unadjusted sale prices ranging from $1.26 to $3.01 per
square foot of site area. After adjustment, the indicated range in prices is from $1.45 to $2.71
per square foot of site area, with an average adjusted price of $2.16 per square foot of site area.
We conclude to a value near the average of the adjusted range, as being appropriate for the
subject.
The following table presents the valuation conclusion for Parcel One.
CONCLUDED LAND VALUE - PARCEL ONE
$ PSF Subject SF Total
$2.00 x 151,153 = $302,306
Indicated Value: $302,306
Rounded: $300,000Compiled by CBRE
LAND VALUE CONCLUSION – PARCEL THREE
Parcel Three is a 1.67-acre site that is situated to the south of and behind Parcel One and
therefore does not benefit from direct exposure to Feliz Drive or any other surface street. Parcel
Three is rectangular in shape, level at grade, and zoned M-1, the same as Parcel One. (Parcel
Three is improved with the food bank warehouse.) Conversely, Parcel Three is smaller than
Parcel One. Overall, the smaller size of Parcel Three offsets its inferior access/exposure to Feliz
Drive and overall no adjustment is required to the per square foot land value conclusion.
Based upon the preceding analysis, we have estimated the following land value for Parcel Three.
CONCLUDED LAND VALUE - PARCEL THREE
$ PSF Subject SF Total
$2.00 x 72,745 = $145,490
Indicated Value: $145,490
Rounded: $145,000
Compiled by CBRE
© 2015 CBRE, Inc.
Land Value
37
LAND VALUE CONCLUSION – PARCEL FOUR
Parcel Four is a 6.85-acre site that is situated to the east of Parcel One and Parcel Three. Parcel
Four is L-shaped in configuration, and a portion of this parcel is situated to the south of and
behind a city of Bakersfield sump facility and therefore does not have direct access/exposure to
Feliz Drive. This site is irregular in shape, level at grade, and zoned M-1, the same as Parcel
One. Based on information provided by subject ownership, approximately $1.0 million in site
work has been completed to the site consisting of: 1) grading of the site; 2) the installation of
concrete curbs, gutters and sidewalks along the street frontage with Feliz Drive; and 3) the
installation of all utility connections (water, gas, sewer, cable, and telephone) to the site. This
parcel was marketed for sale in 2008 at an asking price of approximately $2.00 per square foot.
Overall, a significant downward adjustment is required to the per square foot land value
conclusion due to the significantly larger size, inferior exposure, and inferior shape of Parcel Four
as compared to Parcel One.
Based upon the preceding analysis, we have estimated the following land value for Parcel Four.
CONCLUDED LAND VALUE - PARCEL FOUR
$ PSF Subject SF Total
$1.50 x 298,386 = $447,579
Indicated Value: $447,579
Rounded: $450,000
Compiled by CBRE
LAND VALUE CONCLUSION – PARCEL FIVE
Parcel Five is a 3.91-acre site that is situated at the southwest corner of Feliz Drive and
Washington Street. This site is rectangular in shape, level at grade, and zoned M-1, the same as
Parcel One. Due to the fact that Washington Street terminates at the southern end of Parcel Five,
and therefore does not handle a significant volume of north/south traffic, we do not consider the
corner exposure of Parcel Five to be superior to the midblock exposure of Parcel One. Based on
information provided by subject ownership, approximately $600,000 in site work has been
completed to the site consisting of: 1) the grading of the site; and 2) the installation of concrete
curbs, gutters and sidewalks along the street frontage with Feliz Drive; however only minor street
improvements are evident at the hard corner of this intersection. This parcel was marketed for
sale in 2008 at an asking price of approximately $2.00 per square foot. Overall, a downward
adjustment is required the per square foot land value conclusion because Parcel Five will require
street improvements as compared to Parcel One, which has concrete curbs and sidewalks.
Based upon the preceding analysis, we have estimated the following land value for Parcel Five.
© 2015 CBRE, Inc.
Land Value
38
CONCLUDED LAND VALUE - PARCEL FIVE
$ PSF Subject SF Total
$1.50 x 170,320 = $255,479
Indicated Value: $255,479
Rounded: $255,000
Compiled by CBRE
AGGREGATE LAND VALUE
Brokers interviewed report limited interest in vacant land in the Southeast industrial submarket.
The comparable sales are all in superior locations (either with commercial street frontage or in
established industrial parks) compared to the subject’s secondary location within a tertiary
submarket.
The following chart summarizes the aggregate land value for the subject.
AGGREGATE LAND VALUE
Land Land Rounded
Parcel Use Acres SF Total $ PSF Value
Parcel One Childcare/Warehouse 3.47 151,153 $302,306 $2.00 $300,000
Parcel Three Food Bank Warehouse 1.67 72,745 $145,490 $2.00 $145,000
Parcel Four Excess Land 6.85 298,386 $447,579 $1.50 $450,000
Parcel Five Excess Land 3.91 170,320 $255,479 $1.50 $255,000
Aggregate Value 15.90 692,604 $1,150,855 $1.66 $1,150,000
Compiled by CBRE
Indicated Value
© 2015 CBRE, Inc.
Cost Approach
39
Cost Approach
We have estimated the cost approach value for Parcel One first, followed by an estimate of value
by the cost approach for Parcel Three.
REPLACEMENT COST NEW – PARCEL ONE
To estimate the replacement cost new for the subject, the comparative unit method has been
employed. Direct and indirect building costs, and entrepreneurial profit are estimated based on
Marshall Valuation Service (MVS) cost data and the subject’s actual construction cost.
MARSHALL VALUATION SERVICE COST SCHEDULE - PARCEL ONE
Primary Building Type: Height per Story: 12'-20'Effective Age: Number of Buildings: 4Quality/Condition: Gross Building Area: 20,794 SFExterior Wall: Net Rentable Area: 20,794 SFNumber of Stories:
MVS Sec/Page/Class 14/35/S 15/17/DBuilding Component Shell Building Childcare
Buildings
Component Sq. Ft. 12,000 SF 8,794 SFBase Square Foot Cost $21.36 $100.01
Square Foot RefinementsHeating and Cooling $0.00 $0.00Sprinklers $2.98 $2.984,392 SF Flex Building Office $11.02 $0.00Subtotal $35.36 $102.99
Cost MultipliersCurrent Cost Multiplier 1.02 1.02Local Multiplier 1.17 1.18
Final Square Foot Cost $42.20 $123.96
Base Component Cost $506,440 $1,090,093
Base Building Cost (via Marshall Valuation Service cost data) $1,596,533Additions
Parking, Signage, Landscaping & Misc. Site Improvements (130,359 SF X $4.00/SF) $521,436Other $0
Direct Building Cost $2,117,969
Indirect Costs 15.0% of Direct Building Cost $317,695Direct and Indirect Building Cost $2,435,664Rounded $2,436,000
Compiled by CBRE
1
Industrial5 YRSGoodMetal with stucco accents
The subject’s actual construction cost amounted to $251.33 per square foot of building area for
the Parcel One buildings, and this cost figure is considered to reflect the fact that the buildings
were developed per the specific guidelines of the city, state and/or federal agencies, which drive
© 2015 CBRE, Inc.
Cost Approach
40
the construction costs higher than would be the case for a more typical industrial or commercial
building in the Bakersfield area. As a result, we have utilized the MVS cost guide to estimate the
subject’s replacement cost new.
COST APPROACH CONCLUSION – PARCEL ONE
The value estimate is calculated as follows.
COST APPROACH CONCLUSION - PARCEL ONE
Primary Building Type: Height per Story: 12'-20'Effective Age: Number of Buildings: 4Quality/Condition: Gross Building Area: 20,794 SFExterior Wall: Net Rentable Area: 20,794 SFNumber of Stories:
Direct and Indirect Building Cost $2,436,000
Entrepreneurial Profit 15.0% of Total Building Cost $365,400
Replacement Cost New $2,801,400
Accrued DepreciationUnfinished Shell Space $0Incurable Physical Deterioration 11.1% ($311,267)
Functional Obsolescence $0External Obsolescence ($1,706,405)Total Accrued Depreciation 72.0% of Replacement Cost New ($2,017,672)
Depreciated Replacement Cost $783,728
Land Value $300,000Stabilized Value Indication $1,083,728Rounded $1,080,000Less Deferred Maintenance $0Lease-Up Discount $0As Is Value Indication $1,080,000Rounded $1,080,000Value Per SF $51.94
Compiled by CBRE
of Replacement Cost New less Curable Physical Deterioration
1
Industrial5 YRS
Metal with stucco accentsGood
EXTERNAL OBSOLESCENCE - PARCEL ONECost Feasible NOI: $237,161Pro-Forma Stabilized NOI: $92,117NOI Differential: $145,044Capitalized at: 8.50%Functional Obsolescence: ($1,706,405)
Compiled by CBRE
© 2015 CBRE, Inc.
Cost Approach
41
REPLACEMENT COST NEW – PARCEL THREE
To estimate the replacement cost new for the subject, the comparative unit method has been
employed. Direct and indirect building costs, and entrepreneurial profit are estimated based on
Marshall Valuation Service (MVS) cost data.
MARSHALL VALUATION SERVICE COST SCHEDULE - PARCEL THREE
Primary Building Type: Height per Story: 20'Effective Age: Number of Buildings: 5Quality/Condition: Gross Building Area: 23,000 SFExterior Wall: Net Rentable Area: 23,000 SFNumber of Stories:
MVS Sec/Page/Class 14/35/SBuilding Component Food Bank
Warehouse
Component Sq. Ft. 23,000 SFBase Square Foot Cost $30.09
Square Foot RefinementsHeating and Cooling $0.00Sprinklers $2.982,990 SF Food Bank Office $3.92Subtotal $36.99
Cost MultipliersCurrent Cost Multiplier 1.02Local Multiplier 1.17
Final Square Foot Cost $44.14
Base Component Cost $1,015,188
Base Building Cost (via Marshall Valuation Service cost data) $1,015,188Additions
Parking, Signage, Landscaping & Misc. Site Improvements (58,457 SF X $4.00/SF) $233,828Other $0
Direct Building Cost $1,249,016
Indirect Costs 15.0% of Direct Building Cost $187,352Direct and Indirect Building Cost $1,436,369Rounded $1,436,000
Compiled by CBRE
Metal with stucco exterior1
Industrial6 YRSGood
EXTERNAL OBSOLESCENCE - PARCEL THREECost Feasible NOI: $133,978Pro-Forma Stabilized NOI: $62,342NOI Differential: $71,636Capitalized at: 8.50%External Obsolescence: ($842,778)
Compiled by CBRE
© 2015 CBRE, Inc.
Cost Approach
42
COST APPROACH CONCLUSION – PARCEL THREE
The value estimate is calculated as follows.
COST APPROACH CONCLUSION - PARCEL THREE
Primary Building Type: Height per Story: 20'Effective Age: Number of Buildings: 5Quality/Condition: Gross Building Area: 23,000 SFExterior Wall: Net Rentable Area: 23,000 SFNumber of Stories: Average Floor Area: 0 SF
Direct and Indirect Building Cost $1,436,000
Entrepreneurial Profit 15.0% of Total Building Cost $215,400
Replacement Cost New $1,651,400
Accrued DepreciationUnfinished Shell Space $0Incurable Physical Deterioration 13.3% ($220,187)
Functional Obsolescence $0External Obsolescence ($842,778)Total Accrued Depreciation 13.3% of Replacement Cost New ($1,062,965)
Depreciated Replacement Cost $588,435
Land Value $145,000Stabilized Value Indication $733,435Rounded $730,000Less Costs to Complete Construction $0Lease-Up Discount $0As Is Value Indication $730,000Rounded $730,000Value Per SF $31.74
Compiled by CBRE
1
of Replacement Cost New less Curable Physical Deterioration
6 YRSGoodMetal with stucco exterior
Industrial
© 2015 CBRE, Inc.
Insurable Value
43
Insurable Value
Insurable value is defined as follows:
1. the value of an asset or asset group that is covered by an insurance policy; can be estimated by deducting costs of noninsurable items (e.g., land value) from market value.
2. value used by insurance companies as the basis for insurance. Often considered to be replacement or reproduction cost plus allowances for debris removal or demolition less deterioration and noninsurable items. Sometimes cash value or market value, but often entirely a cost concept. 6
3. a type of value for insurance purposes. 7
CBRE, Inc. has followed traditional appraisal standards to develop a reasonable calculation
based upon industry practices and industry-accepted publications such as the Marshall Valuation
Service. The methodology employed is a derivation of the cost approach and is not reliable for
insurable value estimates. Actual construction costs and related estimates can vary greatly from
this estimate.
The insurable value estimate presented herein is intended to reflect the value of the destructible
portions of the subject, based on the replacement of physical items that are subject to loss from
hazards (excluding indestructible items such as basement excavation, foundation, site work, land
value and indirect costs). In the case of the subject, this estimate is based upon the base building
costs (direct costs) as obtained via the Marshall Valuation Service cost guide, with appropriate
deductions.
This analysis should not be relied upon to determine proper insurance coverage as only
consultants considered experts in cost estimation and insurance underwriting are qualified to
provide an insurable value. It is provided to aid the client/reader/user as part of their overall
decision making process and no representations or warranties are made by CBRE, Inc. regarding
the accuracy of this estimate. It is strongly recommended that other sources be utilized to develop
any estimate of insurable value.
6 Marshall & Swift/Boeckh, LLC, Marshall Valuation Service, (Los Angeles: Marshall & Swift/Boeckh, LLC, 2010), Sec 3,
p 2.
7 Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th ed. (Chicago: Appraisal Institute, 2010), 102.
© 2015 CBRE, Inc.
Insurable Value
44
INSURABLE VALUE CONCLUSION
Primary Building Type: Height per Story: 10'-20''Effective Age: Number of Buildings: 5Quality/Condition: Gross Building Area: 43,794 SFExterior Wall: Net Rentable Area: 43,794 SFNumber of Stories:
MVS Sec/Page/Class 0 0 14/35/S 14/35/S 15/17/DBuilding Component 0 0 Food Bank
WarehouseShell Building Childcare
Buildings
Component Sq. Ft. 0 SF 0 SF 23,000 SF 12,000 SF 8,794 SFBase Square Foot Cost $0.00 $0.00 $30.09 $21.36 $100.01
Square Foot RefinementsSprinklers $0.00 $0.00 $2.98 $2.98 $2.98Office Build-Out @ $47 PSF $0.00 $0.00 $3.92 $11.02 $0.00Subtotal $0.00 $0.00 $36.99 $35.36 $102.99
Cost MultipliersCurrent Cost Multiplier 0.00 0.00 1.02 1.02 1.02Local Multiplier 0.00 0.00 1.17 1.17 1.18
Final Square Foot Cost $0.00 $0.00 $44.14 $42.20 $123.96
Base Component Cost $0 $0 $1,015,188 $506,440 $1,090,093
Base Building Cost (via Marshall Valuation Service cost data $1,015,188 $506,440 $1,090,093
Insurable Value Exclusions 0.0% of Total Building Cost $0 $0 $0
Insurable Value Indication $1,015,188 $506,440 $1,090,093
Rounded $1,015,000 $505,000 $1,090,000
Value Per SF $44.13 $42.08 $123.95
Aggregate Insurable Value $2,610,000
Value per SF $59.60
Compiled by CBRE
1
Industrial6 YRSGoodMetal with painted stucco
© 2015 CBRE, Inc.
Sales Comparison Approach
45
Sales Comparison Approach
The following map and table summarize the comparable data used in the valuation of the
subject. A detailed description of each transaction is included in the addenda.
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Sales Comparison Approach
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SUMMARY OF COMPARABLE INDUSTRIAL SALES
Year GBA Percent Clear Land to Actual Sale Adjusted Price NOINo. Name Type Date Built (SF) Office
H i h Bldg. Ratio Price Sale Price 1 Per SF 1 Occ. Per SF OAR
1 2801 Gateway Avenue,Bakersfield, CA
Listing May-15 1987 11,710 12.0% 23 38.61 : 1 $3,150,000 $3,150,000 $269.00 0% N/A N/A
2 3901 E Brundage Lane (Building A),Bakersfield, CA
Listing May-15 1988 33,500 9.3% 12 3.04 : 1 $1,300,000 $1,300,000 $38.81 0% $3.32 8.56%
3 402 California Avenue,Bakersfield, CA
Listing May-15 1960 10,025 80.0% 17 0.35 : 1 $599,000 $599,000 $59.75 0% $5.87 9.82%
4 3925 & 3947 E Brundage (Buildings B & C),Bakersfield, CA
Sale Dec-14 1988 64,875 0.0% 12 3.26 : 1 $1,200,000 $1,200,000 $18.50 0% N/A N/A
5 Industrial Building,Bakersfield, CA
Sale Sep-14 1987 10,800 0.0% 18 2.03 : 1 $470,000 $470,000 $43.52 0% N/A N/A
6 M Street Warehouse,Bakersfield, CA
Sale Aug-13 1983 9,150 20.0% 12 2.05 : 1 $600,000 $600,000 $65.57 0% N/A N/A
Subj.Pro
Forma
Parcel One - Flex Building Bakersfield, CA
--- --- 2008 12,000 100.0% 16' 7.27: 1 --- --- --- 94% $0.00 ---
1 Transaction amount adjusted for cash equivalency and/or deferred maintenance (where applicable)
Compiled by CBRE
Transaction
In utilizing the sales comparison approach, we have first estimated the value for the 12,000-
square-foot flex building on Parcel One, as this building is considered to be the most “typical” of
the subject’s existing buildings in terms of size, configuration, and overall quality. Parcel One
(three childcare buildings and the flex building), has a land to building ratio of 7.27 to 1, which is
relatively high; however the layout of the use of the parking/yard areas around the flex building is
average with no adjustment required. We have then utilized the concluded per square foot value
for the 12,000-square-foot warehouse as a benchmark to determine the buildings values for the
childcare buildings (three buildings totaling 8,794 square feet) and the food bank warehouse of
23,000 square feet.
Wes McDonald of Colliers International reported the local neighborhood has weak
industrial/commercial demand and conditions have not improved like other Bakersfield industrial
submarkets.
SUMMARY OF ADJUSTMENTS
The following chart summarizes the adjustments warranted to each comparable.
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Sales Comparison Approach
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INDUSTRIAL SALES ADJUSTMENT GRID - PARCEL ONE: FLEX BUILDING
Comparable Number 1 2 3 4 5 6Subj.Pro
FormaTransaction Type Listing Listing Listing Sale Sale Sale SaleTransaction Date May-15 May-15 May-15 Dec-14 Sep-14 Aug-13 ---
Year Built 1987 1988 1960 1988 1987 1983 2008
GBA (SF) 11,710 33,500 10,025 64,875 10,800 9,150 12,000
Percent Office 12.0% 9.3% 80.0% 0.0% 0.0% 20.0% 36.9%
Percent Air Cond. 0.0% 0.0% 100.0% 0.0% 0.0% 19.0% 36.9%
Clear Height 23 12 17 12 18 12 16'
Land to Bldg. Ratio 38.61 : 1 3.04 : 1 0.35 : 1 3.26 : 1 2.03 : 1 2.05 : 1 7.27:1Actual Sale Price $3,150,000 $1,300,000 $599,000 $1,200,000 $470,000 $600,000Adjusted Sale Price 1 $3,150,000 $1,300,000 $599,000 $1,200,000 $470,000 $600,000Price Per SF 1 $269.00 $38.81 $59.75 $18.50 $43.52 $65.57
Occupancy 0% 0% 0% 0% 0% 0%
NOI Per SF N/A $3.32 $5.87 N/A N/A N/A
OAR N/A 8.56% 9.82% N/A N/A N/A
Adj. Price Per SF $269.00 $38.81 $59.75 $18.50 $43.52 $65.57
Property Rights Conveyed 0% 0% 0% 0% 0% 0%Financing Terms 1 0% 0% 0% 0% 0% 0%
Conditions of Sale -65% -10% -10% 0% 0% 0%Above market
listing price
Listing Listing
Market Conditions (Time) 0% 0% 0% 0% 0% 0%
Subtotal - Price Per SF $94.15 $34.93 $53.78 $18.50 $43.52 $65.57
Location 0% -5% -5% -5% 0% -5%
Brundage exposure
California exposure
Brundage exposure
downtown
Size 0% 10% 0% 50% 0% 0%
large building SF
Age/Condition 0% 0% 10% 0% 10% 5%
fair condition fair condition
Quality of Construction 0% 0% 0% 0% 0% 0%
Physical Attributes 0% 5% 0% 5% 0% 5%
low clear height
low clear height
low clear height
Other (Yard Area) -5% 0% 5% 0% 5% 0%
paving small secured yard
no secured yard
% Air Conditioning 0% 0% 0% 0% 0% 0%
Land:Bldg Ratio 0% 0% 0% 0% 0% 0%
Larger Yard Shared driveway easment
Total Other Adjustments -5% 10% 10% 50% 15% 5%
Indicated Value Per SF $89.44 $38.42 $59.15 $27.75 $50.05 $68.85
1 Transaction amount adjusted for cash equivalency and/or deferred maintenance (where applicable)
Compiled by CBRE
© 2015 CBRE, Inc.
Sales Comparison Approach
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SALE PRICE PER SQUARE FOOT CONCLUSION: PARCEL ONE- FLEX BUILDING
The comparable improved sales indicate unadjusted sale prices ranging from $18.50 to $65.57
per square foot of building area with the outlier at $269.00 per square foot having a substantial
excess land component. After adjustment, the indicated range in prices is from $27.75 to
$89.44 per square foot of building area, with an average adjusted price of $55.61 per square
foot of building area.
Noting the subject’s locational and physical attributes and the adjustments made to the
comparable sales, a value at the middle of the adjusted range is the most appropriate due
primarily to its secondary location within this tertiary industrial submarket. The following table
presents the valuation conclusion for the 12,000-square-foot flex building on Parcel One.
SALES COMPARISON APPROACH
PARCEL ONE: FLEX BUILDING
GBA (SF) X Value Per SF = Value
12,000 X $60.00 = $720,000
VALUE CONCLUSION
Stabilized Value Indication $720,000
Rounded: $720,000
Less Deferred Maintenance $0
Lease-Up Discount $0
As Is Value Indication $720,000
Rounded $720,000
Value Per SF $60.00
Compiled by CBRE
IMPROVED VALUE – CHILDCARE BUILDINGS
The three childcare buildings on Parcel One have a combined building area of 8,794 square feet
and have a 100% office finish. The immediate subject area does not contain a meaningful
concentration of buildings that are fully built-out as office space. As a result, the potential
demand from owner-users or investors for this three-building complex is somewhat uncertain.
Partially mitigating this concern is the fact that the childcare buildings have good access and
exposure to Feliz Drive. Demand for office-based support services appears weak. The County of
Kern occupies a two-story office building that is located adjacent west of the subject food bank
warehouse. The Kern County Superintendent of Schools also has a facility to the west. These
© 2015 CBRE, Inc.
Sales Comparison Approach
49
public entities may be a potential buyer of the subject’s childcare buildings should their space
requirements increase in the subject area. However, a prospective office user of the childcare
buildings would have to convert the childcare build-out to a more typical office build-out.
We have estimated this cost at $15.00 per square foot of building area, based on the assumption
that the suspended acoustical tile ceilings and some of the floor coverings of the childcare build-
out could be used in a conversion of the space to office build-out, but the office user would have
to spend some funds to re-demise the space and possibly install some new lighting, floor
coverings, and/or restroom fixtures. Thus, the preliminary value of $75.00 per square foot (a
slightly higher value compared to the Flex Building because of the childcare’s facilities smaller
size) is adjusted by the $15.00 per square foot cost to yield a value of $60.00 per square foot.
Based on these considerations, we have estimated the following value by the sales comparison
approach for the three childcare buildings on Parcel One.
SALES COMPARISON APPROACH
PARCEL ONE: CHILDCARE BUILDINGS
GBA (SF) X Value Per SF = Value
8,794 X $60.00 = $527,640
VALUE CONCLUSION
Stabilized Value Indication $527,640
Rounded: $530,000
Less Deferred Maintenance $0
Lease-Up Discount $0
As Is Value Indication $527,640
Rounded $530,000
Value Per SF $60.27
Compiled by CBRE
IMPROVED VALUE CONCLUSION - PARCEL ONE BUILDINGS
The following chart summarizes the aggregate value for the Parcel One buildings, consisting of
the flex building and the three-building childcare complex.
© 2015 CBRE, Inc.
Sales Comparison Approach
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SALES COMPARISON APPROACH
PARCEL ONE: AGGREGATE VALUE
GBA (SF) X Value Per SF = Value
12,000 X $60.00 = $720,000
8,794 X $60.00 = $527,640
VALUE CONCLUSION
Stabilized Value Indication $1,247,640
Rounded $1,250,000
Less Deferred Maintenance $0
Lease-Up Discount $0
As Is Value Indication $1,247,640
Rounded $1,250,000
Value Per SF $60.11
Compiled by CBRE
IMPROVED VALUE CONCLUSION – PARCEL THREE
The food bank warehouse on Parcel Three is a 2004-built, 23,000-square-feet metal structure
with painted stucco exterior office area. The building has 3,000 square feet of office space and a
clear height of 20 feet. This is a good quality and functional building that appears to be well
suited to meet the needs of typical industrial users in the greater subject area. The primary
concern with respect to this building is the relatively large size of the building and the fact that the
building does not have direct exposure along an adjacent surface street, because it is situated to
the south of and behind the Parcel One buildings and is accessed by way of reciprocal access
agreements with the adjacent county of Kern property.
We have adjusted the price per square foot conclusion for Parcel One downward to reflect the
larger size of this building, the lower office build-out percentage, and the inferior street exposure,
which is partially mitigated by the superior clear height.
Based on these considerations, we have estimated the following value by the sales comparison
approach for the food bank warehouse on Parcel Three.
© 2015 CBRE, Inc.
Sales Comparison Approach
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SALES COMPARISON APPROACH
PARCEL THREE: FOOD BANK WAREHOUSE
GBA (SF) X Value Per SF = Value
23,000 X $50.00 = $1,150,000
23,000 X $55.00 = $1,265,000
VALUE CONCLUSION
Stabilized Value Indication $1,200,000
Rounded $1,200,000
Less Deferred Maintenance $0
Lease-Up Discount $0
As Is Value Indication $1,200,000
Rounded $1,200,000
Value Per SF $52.17
Compiled by CBRE
© 2015 CBRE, Inc.
Income Capitalization Approach
52
Income Capitalization Approach
The following map and table summarize the primary comparable data used in the valuation of
the subject. A detailed description of each transaction is included in the addenda.
SUMMARY OF COMPARABLE INDUSTRIAL RENTALS
Comp. No.
Property Nameand Location
Year Built Occ.
GBA (SF)
Percent Office
Clear Height
Monthly Rental Rate
Expense Basis
TenantName
LeaseArea (SF)
LeaseDate
LeaseTerm
NNN Rent Equivalent
1 1988 100% 33,500 9.3% 12 Ft. $0.30 PSF IG Express Wholesale Tire 33,500 Jun-13 N/A $0.20 PSF
2 1980 100% 38,000 10.5% 20 Ft. $0.35 PSF IG Architectural Supplements 10,800 Mar-13 N/A $0.25 PSF
3 1982 100% 9,300 27.0% 13 Ft. $0.50 PSF IG Campbell Refrigeration Su 9,300 Sep-13 5.0 Yrs. $0.40 PSF
4 1937 80% 9,275 37.1% 14 Ft. $0.64 PSF IG B.I. Inc. 7,435 Sep-12 2.0 Yrs. $0.54 PSF
5 1936 100% 6,536 4.9% 12 Ft. $0.46 PSF IG Towing Yard 6,536 Jun-13 N/A $0.36 PSF
Subj. Community Action Child Care1825 Feliz Drive (primary),Bakersfield, California
2008 100% 12,000 100.0% 10-12 Ft.
--- --- ---
Compiled by CBRE
3901 E Brundage Lane (Building A)3901 E Brundage Lane,Bakersfield, CA
300 Wood Street 300 Wood Street, Bakersfield, CA
Industrial Showroom300 Golden State Ave,Bakersfield, CA
331 20th Street331 20th Street,Bakersfield, CA
415 20th Street 415 20th Street, Bakersfield, CA
The industrial gross to NNN rent equivalent is $0.10 per square foot per month.
© 2015 CBRE, Inc.
Income Capitalization Approach
53
The rentals utilized represent the best data available for comparison with the subject. They were
selected from our research within the immediate subject neighborhood. These comparables were
chosen based upon the size of the space, quality of construction, location, and date of the lease.
The following table depicts a summary of the space allocation for the subject.
MARKET RENT CATEGORIES
Space Allocation Size
Food Bank Building 23,000 SF
Flex Building 12,000 SF
Child Care Center 8,794 SF
Compiled by CBRE
In analyzing the rental data, we have first used the rental data to determine an appropriate
market rent for the 12,000-square-foot Parcel One building. We have then utilized the
concluded market rent for the flex building as a benchmark to determine appropriate market
rents for the childcare buildings and the food bank warehouse.
DISCUSSION/ANALYSIS OF RENT COMPARABLES
All of the rent comparables are single-tenant buildings. Rents One, and Two are larger buildings
in the market area; they have monthly rents of $0.30 to $0.35 per square foot.
Demand is mostly in the 3,000 to 10,000 square feet range. Rents Three, Four and Five range in
size from 6,536 to 9,300 square feet range with monthly rents of $0.46 to $0.64 per square
foot, industrial gross.
SUBJECT RENTAL INFORMATION
The subject buildings are all occupied by the owner of the property. There are no leases in place
on the property.
MARKET RENT CONCLUSIONS
The following chart depicts the market rent conclusions for the subject:
© 2015 CBRE, Inc.
Income Capitalization Approach
54
MARKET RENT CONCLUSIONS
Category
GBA (SF) 23,000 12,000 8,794
Percent of Total SF 52.5% 27.4% 20.1%
Market Rent ($/SF/Mon.) $0.25 $0.35 $0.50
Market Rent ($/SF/Yr.) $3.00 $4.20 $6.00
Concessions None None None
Reimbursements NNN NNN NNN
Annual Escalation None None None
Tenant Improvements (New Tenants) None None None
Tenant Improvements (Renewals) None None None
Average Lease Term 3 Years 3 Years 3 Years
Compiled by CBRE
Food Bank Building Flex Building
Child Care Center
POTENTIAL RENTAL INCOME CONCLUSION
Within this analysis, potential rental income is estimated based upon the forward looking rental
income over the next twelve months. This method of calculating rental income is most prevalent
in the local market and is consistent with the method used to derive overall capitalization rates
from the comparable sales data.
We have modeled one pro forma for the Parcel One component of the property, consisting of the
flex building and the three childcare buildings, and a separate pro forma for the Parcel Three
component, consisting of the food bank warehouse building.
In estimating the subject’s pro forma operating data, we have relied upon expense comparable
data in arriving at appropriate operating expenses for the subject.
VACANCYCOLLECTION LOSS
The subject’s estimated stabilized occupancy rate was previously discussed in the market analysis.
We have estimated a stabilized vacancy of 8.0 percent, which has been modeled in the direct
capitalization analysis as a 2.0 percent collection loss plus a 6.0 percent vacancy factor.
OTHER INCOME
We have modeled no other income in the pro forma analyses other than base rental income and
expense reimbursement income.
© 2015 CBRE, Inc.
Income Capitalization Approach
55
OPERATING EXPENSE ANALYSIS
Expense Comparables
The following chart summarizes expenses obtained from recognized industry publications and/or
comparable properties.
EXPENSE COMPARABLES
Comparable Number 1 2 3
Expenses $/SF $/SF $/SF
Real Estate Taxes $1.49 $2.09 $1.49
Property Insurance 0.20 0.25 0.21
Building Maintenance 0.20 0.35 0.02
Landscaping & Security - - -
Management Fee 0.09 0.22 0.12
Reserves for Replacement - - -
Operating Expenses $1.98 $2.91 $1.84
Source: Operating statements
The subject’s expense is detailed as follows:
OPERATING EXPENSES - PARCEL ONE
Year Total $/SF
Expense Comparable 1 N/A $1.98
Expense Comparable 2 N/A $2.91
Expense Comparable 3 N/A $1.84
CBRE Estimate $34,925 $1.68
Compiled by CBRE
The subject’s per square foot operating expense pro forma is within the range exhibited by the
expense comparable data. The Parcel One portion of the property consists of a warehouse
building and three childcare buildings and would therefore be expected to have a higher building
maintenance expense than more typical industrial buildings such as the expense comparable
data.
We have modeled a lower per square foot operating expense for the Parcel Three portion of the
subject at $1.13 per square foot of building area.
NET OPERATING INCOME CONCLUSION
The subject’s net operating income is detailed as follows:
© 2015 CBRE, Inc.
Income Capitalization Approach
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NET OPERATING INCOME
Year Total $/SF
CBRE Estimate $92,117 $2.10
Compiled by CBRE
DIRECT CAPITALIZATION
Direct capitalization is a method used to convert a single year’s estimated stabilized net operating
income into a value indication. The following subsections represent different techniques for
deriving an overall capitalization rate for direct capitalization.
Comparable OAR Sales
Due to the lack of overall rate indications from the comparable sales, we have searched the
Central Valley region of California, consisting of the counties of Kern, Fresno, Kings, Stanislaus,
and Tulare for recent sales of industrial properties that were leased at the time of sale. The
number of such transactions was limited and we have summarized the available OAR sales in the
following chart.
SUMMARY OF COMPARABLE INDUSTRIAL OAR SALES
Year GBA Percent Clear Land to Actual Sale Adjusted Price NOINo. Name Type Date Built (SF) Office Height Bldg. Ratio Price Sale Price 1 Per SF 1 Occ. Per SF OAR
1 5354-5370 E. Home Ave,Fresno, CA
Sale Oct-14 1975 132,573 7.5% 22 38.61 : 1 $5,250,000 $5,250,000 $39.60 100% $3.21 8.10%
2 118 N Hockett Street,Porterville, CA
Sale Oct-14 1960 4,800 5.0% 14 3.04 : 1 $228,182 $228,182 $47.54 100% $4.39 9.23%
3 300 West Pontiac Way,Clovis, CA
Sale Sep-14 1987 74,614 16.0% 20 0.35 : 1 $3,125,000 $3,125,000 $41.88 100% $3.21 7.67%
4 1108 E Batavia Court,Tulare, CA
Sale Dec-13 1996 5,000 5.0% 16 3.26 : 1 $350,000 $350,000 $70.00 100% $5.99 8.55%
5 5100 Young Street,Bakersfield, CA
Sale Aug-13 2008 18,249 0.0% 24 2.03 : 1 $1,438,000 $1,438,000 $78.80 0% $6.38 8.10%
6 5401 Woodmere Drive,Bakersfield, CA
Sale Mar-13 2007 27,500 20.0% 18 2.05 : 1 $1,864,000 $1,864,000 $67.78 40% $5.23 7.71%
Average OAR: 8.23%
1 Transaction amount adjusted for cash equivalency and/or deferred maintenance (where applicable)
Compiled by CBRE
Transaction
The overall capitalization rates for these sales range from 7.67% to 9.23% percent with an
average overall rate of 8.23%. The subject buildings are non–institutional quality investments.
Owner-users are the primary buyer/sellers for properties like the subject buildings. Thus, the
OAR could be at the low end of the range for the subject.
Published Investor Surveys
The results of the most recent investor surveys are summarized in the following chart.
© 2015 CBRE, Inc.
Income Capitalization Approach
57
OVERALL CAPITALIZATION RATES
Investment Type OAR Range Average
CBRE Warehouse/Distribution
Class A 4.50% - 8.50% 6.48%
Class B 4.25% - 9.75% 7.54%
Class C 6.00% - 11.50% 8.75%
PwC Warehouse
National Data 4.50% - 7.00% 5.82%
Indicated OAR: 8.00% - 9.00%
Source: PwC Real Estate Investor Survey 4Q 2014
Capitalization Rate Conclusion
The following chart summarizes the OAR conclusions.
OVERALL CAPITALIZATION RATE - CONCLUSION
Source Indicated OAR
Comparable OAR Sales 8.00% - 9.00%
PwC Real Estate Investor Survey 8.00% - 9.00%
CBRE Estimate 8.50%
Compiled by: CBRE
© 2015 CBRE, Inc.
Income Capitalization Approach
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Direct Capitalization Summary – Parcel One
A summary of the direct capitalization at stabilized occupancy is illustrated in the following chart
for Parcel One.
DIRECT CAPITALIZATION SUMMARY - PARCEL ONE
Income $/Do $/SF/Yr Total Potential Rental Income - Flex Building ## $4.20 $50,400Potential Rental Income - Childcare Bldgs. 6.00 52,764 Total Potential Rental Income 4.96 103,164 Credit Loss 2.00% (2) (0.10) (2,063) Vacancy 6.00% (5) (0.30) (6,190)
Net Rental Income ## $4.56 94,911
Expense Reimbursements # 1.68 34,925 Vacancy & Credit Loss 8.00% (2) (0.13) (2,794)
Effective Gross Income ## $6.11 $127,041
ExpensesReal Estate Taxes $0.60 $12,399Property Insurance 0.25 5,199 Building Maintenance 0.50 10,397 Landscaping & Security 0.15 3,119 Management Fee 3.00% 0.18 3,811 Reserves for Replacement 0.00 -
Operating Expenses $1.68 $34,925
Operating Expense Ratio 27.49%
Net Operating Income $4.43 $92,117
OAR / 8.50%
Stabilized Value Indication $1,083,728
Rounded $1,080,000
Less Deferred Maintenance -
Lease-Up Discount -
Rent Loss - $4.96/SF/year X 1 year (50,400)
TI's - None -
Leasing Commissions - 3 year lease @ 5% (7,560)
Developer Profit @ 5% of Stabilized Value (54,000)
As Is Value Indication $968,040
Rounded $970,000
Value Per SF $46.65
Compiled by CBRE
© 2015 CBRE, Inc.
Income Capitalization Approach
59
Direct Capitalization Summary – Parcel Three
A summary of the direct capitalization at stabilized occupancy is illustrated in the following chart
for Parcel Three.
DIRECT CAPITALIZATION SUMMARY - PARCEL THREE
Income $/Do $/SF/Yr Total Potential Rental Income - Food Bank ## $3.00 $69,000Credit Loss 2.00% (1) (0.06) (1,380) Vacancy 6.00% (3) (0.18) (4,140)
Net Rental Income ## $3.05 63,480
Expense Reimbursements # 1.25 25,970 Vacancy & Credit Loss 8.00% (2) (0.10) (2,078)
Effective Gross Income ## $4.20 $87,372
ExpensesReal Estate Taxes $0.37 $8,399Property Insurance 0.20 4,600 Building Maintenance 0.35 8,050 Landscaping & Security 0.10 2,300 Management Fee 3.00% 0.11 2,621 Reserves for Replacement 0.00 -
Operating Expenses $1.13 $25,970
Operating Expense Ratio 29.72%
Net Operating Income $2.95 $61,402
OAR / 8.50%
Stabilized Value Indication $722,381
Rounded $720,000
Deferred Maintenance -
Lease-Up Discount -
Rent Loss - $3.00/SF/year X 1 year (69,000)
TI's - None -
Leasing Commissions - 3 year lease @ 5% (10,350)
Developer Profit @ 5% of Stabilized Value (36,000)
As Is 'Value Indication $607,031
Rounded $610,000
Value Per SF $26.52
Compiled by CBRE
© 2015 CBRE, Inc.
Income Capitalization Approach
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CONCLUSION OF INCOME CAPITALIZATION APPROACH
The conclusions via the valuation methods employed for this approach are as follows:
INCOME CAPITALIZATION APPROACH VALUESAs Is
May 8, 2015
Direct Capitalization Method
Parcel One - Childcare and Warehouse $970,000
Parcel Three - Food Bank $610,000
Compiled by CBRE
© 2015 CBRE, Inc.
Reconciliation of Value
61
Reconciliation of Value The value indications from the approaches to value are summarized as follows:
SUMMARY OF VALUE CONCLUSIONSLand Value
Parcel One - Childcare / Flex Bldg. $300,000 Parcel Three - Food Bank $145,000 Parcel Four - Excess Land $450,000 Parcel Five - Excess Land $255,000 Aggregate Land Value $1,150,000
Cost ApproachParcel One - Childcare / Flex Bldg. $1,080,000 Parcel Three - Food Bank $720,000
Sales Comparison ApproachParcel One - Childcare / Flex Bldg. $1,250,000 Parcel Three - Food Bank $1,200,000
Income Capitalization Approach Stabilized ValueParcel One - Childcare / Flex Bldg. $970,000 $1,080,000 Parcel Three - Food Bank $610,000 $720,000
Reconciled ValueParcel One - Childcare / Flex Bldg. $1,250,000 Parcel Three - Food Bank $1,200,000 Parcel Four - Excess Land $450,000 Parcel Five - Excess Land $255,000 Aggregate Value $3,155,000
Compiled by CBRE
In valuing the subject, the Sales Comparison Approach is considered most reliable and has been
given primary emphasis due to the fact that the property is owner-occupied, with secondary
emphasis placed on the Income Capitalization Approach and the Cost Approach.
© 2015 CBRE, Inc.
Reconciliation of Value
62
Based on the foregoing, the market value of the subject has been concluded as follows:
MARKET VALUE CONCLUSION
Appraisal Premise Interest Appraised Date of Value Value Conclusion
As Is
Parcel One - Childcare / Flex Bldg. Fee Simple Estate May 8, 2015 $1,250,000
Parcel Three - Food Bank Fee Simple Estate May 8, 2015 $1,200,000
Parcel Four - Excess Land Fee Simple Estate May 8, 2015 $450,000
Parcel Five - Excess Land Fee Simple Estate May 8, 2015 $255,000
Aggregate Value Fee Simple Estate May 8, 2015 $3,155,000
Compiled by CBRE
© 2015 CBRE, Inc.
Assumptions and Limiting Conditions
63
Assumptions and Limiting Conditions
1. Unless otherwise specifically noted in the body of the report, it is assumed that title to the property or properties appraised is clear and marketable and that there are no recorded or unrecorded matters or exceptions to title that would adversely affect marketability or value. CBRE, Inc. is not aware of any title defects nor has it been advised of any unless such is specifically noted in the report. CBRE, Inc., however, has not examined title and makes no representations relative to the condition thereof. Documents dealing with liens, encumbrances, easements, deed restrictions, clouds and other conditions that may affect the quality of title have not been reviewed. Insurance against financial loss resulting in claims that may arise out of defects in the subject’s title should be sought from a qualified title company that issues or insures title to real property.
2. Unless otherwise specifically noted in the body of this report, it is assumed: that the existing improvements on the property or properties being appraised are structurally sound, seismically safe and code conforming; that all building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required; that the roof and exterior are in good condition and free from intrusion by the elements; that the property or properties have been engineered in such a manner that the improvements, as currently constituted, conform to all applicable local, state, and federal building codes and ordinances. CBRE, Inc. professionals are not engineers and are not competent to judge matters of an engineering nature. CBRE, Inc. has not retained independent structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no representations relative to the condition of improvements. Unless otherwise specifically noted in the body of the report: no problems were brought to the attention of CBRE, Inc. by ownership or management; CBRE, Inc. inspected less than 100% of the entire interior and exterior portions of the improvements; and CBRE, Inc. was not furnished any engineering studies by the owners or by the party requesting this appraisal. If questions in these areas are critical to the decision process of the reader, the advice of competent engineering consultants should be obtained and relied upon. It is specifically assumed that any knowledgeable and prudent purchaser would, as a precondition to closing a sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity of building systems. Structural problems and/or building system problems may not be visually detectable. If engineering consultants retained should report negative factors of a material nature, or if such are later discovered, relative to the condition of improvements, such information could have a substantial negative impact on the conclusions reported in this appraisal. Accordingly, if negative findings are reported by engineering consultants, CBRE, Inc. reserves the right to amend the appraisal conclusions reported herein.
3. Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the property was not observed by the appraisers. CBRE, Inc. has no knowledge of the existence of such materials on or in the property. CBRE, Inc., however, is not qualified to detect such substances. The presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated groundwater or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired.
We have inspected, as thoroughly as possible by observation, the land; however, it was impossible to personally inspect conditions beneath the soil. Therefore, no representation is made as to these matters unless specifically considered in the appraisal.
4. All furnishings, equipment and business operations, except as specifically stated and typically considered as part of real property, have been disregarded with only real property being considered in the report unless otherwise stated. Any existing or proposed improvements, on or off-site, as well as any alterations or repairs considered, are assumed to be completed in a workmanlike manner according to standard practices based upon the information submitted to CBRE, Inc. This report may be subject to amendment upon re-inspection of the subject subsequent to repairs, modifications, alterations and completed new construction. Any estimate of Market Value is as of the date indicated; based upon the information, conditions and projected levels of operation.
5. It is assumed that all factual data furnished by the client, property owner, owner’s representative, or persons designated by the client or owner to supply said data are accurate and correct unless otherwise specifically noted in the appraisal report. Unless otherwise specifically noted in the appraisal report, CBRE, Inc. has no reason to believe that any of the data furnished contain any material error. Information and data referred to in this paragraph include, without being limited to, numerical street addresses, lot and block numbers, Assessor’s Parcel Numbers, land dimensions, square footage area of the land, dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count, room count, rent schedules, income data, historical operating expenses, budgets, and related data. Any material error in any of the above data could have a substantial impact
© 2015 CBRE, Inc.
Assumptions and Limiting Conditions
64
on the conclusions reported. Thus, CBRE, Inc. reserves the right to amend conclusions reported if made aware of any such error. Accordingly, the client-addressee should carefully review all assumptions, data, relevant calculations, and conclusions within 30 days after the date of delivery of this report and should immediately notify CBRE, Inc. of any questions or errors.
6. The date of value to which any of the conclusions and opinions expressed in this report apply, is set forth in the Letter of Transmittal. Further, that the dollar amount of any value opinion herein rendered is based upon the purchasing power of the American Dollar on that date. This appraisal is based on market conditions existing as of the date of this appraisal. Under the terms of the engagement, we will have no obligation to revise this report to reflect events or conditions which occur subsequent to the date of the appraisal. However, CBRE, Inc. will be available to discuss the necessity for revision resulting from changes in economic or market factors affecting the subject.
7. CBRE, Inc. assumes no private deed restrictions, limiting the use of the subject in any way.
8. Unless otherwise noted in the body of the report, it is assumed that there are no mineral deposit or subsurface rights of value involved in this appraisal, whether they be gas, liquid, or solid. Nor are the rights associated with extraction or exploration of such elements considered unless otherwise stated in this appraisal report. Unless otherwise stated it is also assumed that there are no air or development rights of value that may be transferred.
9. CBRE, Inc. is not aware of any contemplated public initiatives, governmental development controls, or rent controls that would significantly affect the value of the subject.
10. The estimate of Market Value, which may be defined within the body of this report, is subject to change with market fluctuations over time. Market value is highly related to exposure, time promotion effort, terms, motivation, and conclusions surrounding the offering. The value estimate(s) consider the productivity and relative attractiveness of the property, both physically and economically, on the open market.
11. Any cash flows included in the analysis are forecasts of estimated future operating characteristics are predicated on the information and assumptions contained within the report. Any projections of income, expenses and economic conditions utilized in this report are not predictions of the future. Rather, they are estimates of current market expectations of future income and expenses. The achievement of the financial projections will be affected by fluctuating economic conditions and is dependent upon other future occurrences that cannot be assured. Actual results may vary from the projections considered herein. CBRE, Inc. does not warrant these forecasts will occur. Projections may be affected by circumstances beyond the current realm of knowledge or control of CBRE, Inc.
12. Unless specifically set forth in the body of the report, nothing contained herein shall be construed to represent any direct or indirect recommendation of CBRE, Inc. to buy, sell, or hold the properties at the value stated. Such decisions involve substantial investment strategy questions and must be specifically addressed in consultation form.
13. Also, unless otherwise noted in the body of this report, it is assumed that no changes in the present zoning ordinances or regulations governing use, density, or shape are being considered. The property is appraised assuming that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, nor national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this report is based, unless otherwise stated.
14. This study may not be duplicated in whole or in part without the specific written consent of CBRE, Inc. nor may this report or copies hereof be transmitted to third parties without said consent, which consent CBRE, Inc. reserves the right to deny. Exempt from this restriction is duplication for the internal use of the client-addressee and/or transmission to attorneys, accountants, or advisors of the client-addressee. Also exempt from this restriction is transmission of the report to any court, governmental authority, or regulatory agency having jurisdiction over the party/parties for whom this appraisal was prepared, provided that this report and/or its contents shall not be published, in whole or in part, in any public document without the express written consent of CBRE, Inc. which consent CBRE, Inc. reserves the right to deny. Finally, this report shall not be advertised to the public or otherwise used to induce a third party to purchase the property or to make a “sale” or “offer for sale” of any “security”, as such terms are defined and used in the Securities Act of 1933, as amended. Any third party, not covered by the exemptions herein, who may possess this report, is advised that they should rely on their own independently secured advice for any decision in connection with this property. CBRE, Inc. shall have no accountability or responsibility to any such third party.
15. Any value estimate provided in the report applies to the entire property, and any pro ration or division of the title into fractional interests will invalidate the value estimate, unless such pro ration or division of interests has been set forth in the report.
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Assumptions and Limiting Conditions
65
16. The distribution of the total valuation in this report between land and improvements applies only under the existing program of utilization. Component values for land and/or buildings are not intended to be used in conjunction with any other property or appraisal and are invalid if so used.
17. The maps, plats, sketches, graphs, photographs and exhibits included in this report are for illustration purposes only and are to be utilized only to assist in visualizing matters discussed within this report. Except as specifically stated, data relative to size or area of the subject and comparable properties has been obtained from sources deemed accurate and reliable. None of the exhibits are to be removed, reproduced, or used apart from this report.
18. No opinion is intended to be expressed on matters which may require legal expertise or specialized investigation or knowledge beyond that customarily employed by real estate appraisers. Values and opinions expressed presume that environmental and other governmental restrictions/conditions by applicable agencies have been met, including but not limited to seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses, building codes, permits, licenses, etc. No survey, engineering study or architectural analysis has been made known to CBRE, Inc. unless otherwise stated within the body of this report. If the Consultant has not been supplied with a termite inspection, survey or occupancy permit, no responsibility or representation is assumed or made for any costs associated with obtaining same or for any deficiencies discovered before or after they are obtained. No representation or warranty is made concerning obtaining these items. CBRE, Inc. assumes no responsibility for any costs or consequences arising due to the need, or the lack of need, for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance.
19. Acceptance and/or use of this report constitutes full acceptance of the Contingent and Limiting Conditions and special assumptions set forth in this report. It is the responsibility of the Client, or client’s designees, to read in full, comprehend and thus become aware of the aforementioned contingencies and limiting conditions. Neither the Appraiser nor CBRE, Inc. assumes responsibility for any situation arising out of the Client’s failure to become familiar with and understand the same. The Client is advised to retain experts in areas that fall outside the scope of the real estate appraisal/consulting profession if so desired.
20. CBRE, Inc. assumes that the subject analyzed herein will be under prudent and competent management and ownership; neither inefficient or super-efficient.
21. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined and considered in the appraisal report.
22. No survey of the boundaries of the property was undertaken. All areas and dimensions furnished are presumed to be correct. It is further assumed that no encroachments to the realty exist.
23. The Americans with Disabilities Act (ADA) became effective January 26, 1992. Notwithstanding any discussion of possible readily achievable barrier removal construction items in this report, CBRE, Inc. has not made a specific compliance survey and analysis of this property to determine whether it is in conformance with the various detailed requirements of the ADA. It is possible that a compliance survey of the property together with a detailed analysis of the requirements of the ADA could reveal that the property is not in compliance with one or more of the requirements of the ADA. If so, this fact could have a negative effect on the value estimated herein. Since CBRE, Inc. has no specific information relating to this issue, nor is CBRE, Inc. qualified to make such an assessment, the effect of any possible non-compliance with the requirements of the ADA was not considered in estimating the value of the subject.
24. Client shall not indemnify Appraiser or hold Appraiser harmless unless and only to the extent that the Client misrepresents, distorts, or provides incomplete or inaccurate appraisal results to others, which acts of the Client approximately result in damage to Appraiser. Notwithstanding the foregoing, Appraiser shall have no obligation under this Section with respect to any loss that is caused solely by the active negligence or willful misconduct of a Client and is not contributed to by any act or omission (including any failure to perform any duty imposed by law) by Appraiser. Client shall indemnify and hold Appraiser harmless from any claims, expenses, judgments or other items or costs arising as a result of the Client's failure or the failure of any of the Client's agents to provide a complete copy of the appraisal report to any third party. In the event of any litigation between the parties, the prevailing party to such litigation shall be entitled to recover, from the other, reasonable attorney fees and costs.
© 2015 CBRE, Inc.
Addenda
ADDENDA
© 2015 CBRE, Inc.
Addenda
Addendum A
LAND SALE DATA SHEETS
© 2015 CBRE, Inc.
Sale Land - Industrial No. 1
6747 East Brundage LaneBakersfield, CA 93307United States
Government Tax Agency
Govt./Tax ID
Kern
173-350-16-00
6747 East Brundage LaneAddressProperty Name
Site/Government Regulations
Acres Square feetLand Area Net 3.000 130,680
Land Area Gross 3.000 130,680
Site Development Status RawShape IrregularTopography Generally LevelUtilities Available
Maximum FAR N/AMin Land to Bldg Ratio N/A
Maximum Density N/A
General Plan N/ASpecific Plan N/AZoning M-1
Entitlement Status N/A
Sale Summary
Recorded Buyer
Justin & Corinne Pettit Marketing Time 8 Month(s)
True Buyer N/A Buyer Type N/ARecorded Seller Margaritas
Venture Properties
Seller Type N/A
True Seller N/A Primary Verification CoStar, Public records
Interest Transferred Fee Simple/Freehold Type SaleCurrent Use Vacant Land w/ 1 existing SFR Date 10/6/2014Proposed Use Commercial Sale Price $305,000Listing Broker Financing Cash to SellerSelling Broker N/A Cash Equivalent $305,000Doc # 162157 Capital Adjustment $0
Adjusted Price $305,000
Transaction Summary plus Five-Year CBRE View History
Transaction Date Transaction Type Buyer Seller Price Cash Equivalent Price/sf
10/2014 Sale Justin & Corinne Pettit Margaritas Venture Properties
$305,000 N/A
© 2015 CBRE, Inc.
Sale Land - Industrial No. 1Units of Comparison
$2.33 / sf N/A / Unit
$101,666.67 / ac N/A / Building Area
Financial
No information recorded
Map & Comments
This property is located on East Brundage Lane, abutting the East Side Canal, east of Fairfax Road, and just north of Highway 58, in the city of Bakersfield, CA, Kern County. The land address is 6747 East Brundage Lane. The property is a 3-acre parcel which includes a single-family residence with approximately 2,300 square feet. The property is directly across from the headquarters of Bolthouse Farms. An easement on the westernmost side of the parcel provides access to the property from East Brundage Lane. The property sold on October 6, 2014, for a sale price of $305,000, or $2.33 per land square foot, to Justin & Corinne Pettit. The land is currently zoned M-1 and is proposed for commercial use.
© 2015 CBRE, Inc.
Sale Land - Industrial No. 2
East Brundage Lane & Sterling RoadBakersfield, CA 93307United States
Government Tax Agency
Govt./Tax ID
Kern
173-680-10-00
East Brundage Lane & Sterling RoadAddressProperty Name
Site/Government Regulations
Acres Square feetLand Area Net 2.740 119,354
Land Area Gross 2.740 119,354
Site Development Status RawShape IrregularTopography Generally LevelUtilities Available
Maximum FAR N/AMin Land to Bldg Ratio N/A
Maximum Density N/A
Frontage Distance/Street 232 ft East Brundage Lane
General Plan N/ASpecific Plan N/AZoning M-1
Entitlement Status N/A
Sale Summary
Recorded Buyer N/A Marketing Time 3 Month(s)True Buyer N/A Buyer Type N/ARecorded Seller Ben &
Lisette Stinson
Seller Type N/A
True Seller Ben Stinson & L Family Trust
Primary Verification CoStar, public records
Interest Transferred Fee Simple/Freehold Type SaleCurrent Use Vacant Land Date 9/24/2014Proposed Use Industrial, Retail, Office Sale Price $150,000Listing Broker Grubb & Ellis, ASU & Associates:
Mark Smith- (661) 862-5454, Boyd Binninger- (661) 616-3559, Barry Hibbard- (661) 862-5454
Financing Cash to Seller
Selling Broker N/A Cash Equivalent $150,000Doc # N/A Capital Adjustment $0
Adjusted Price $150,000
Transaction Summary plus Five-Year CBRE View History
Transaction Date Transaction Type Buyer Seller Price Cash Equivalent Price/sf
09/2014 Sale N/A Ben & Lisette Stinson $150,000 N/A
© 2015 CBRE, Inc.
Sale Land - Industrial No. 2Units of Comparison
$1.26 / sf N/A / Unit
$54,744.53 / ac N/A / Building Area
Financial
No information recorded
Map & Comments
This property is located on a strip of commercial and industrial parcels between Highway 58 and East Brundage Lane, west of Sterling Road, east of Oswell Street, on the southeast corner of Leeta Street and East Brundage Lane, in the city of Bakersfield, CA. The property is vacant land with no improvements, an M-1 Industrial zoning, and totals 2.74 acres. The site sold for $150,000, or $1.26 per square foot of land area, in September of 2014.
© 2015 CBRE, Inc.
Sale Land - Industrial No. 3
508 Workman StreetBakersfield, CA 93307United States
Government Tax Agency
Govt./Tax ID
Kern
173-390-20-00, 173-390-21-00
508-516 Workman Street LandAddressProperty Name
Site/Government Regulations
Acres Square feetLand Area Net 1.382 60,178
Land Area Gross 1.382 60,178
Site Development Status FinishedShape RectangularTopography Generally LevelUtilities Available
Maximum FAR N/AMin Land to Bldg Ratio N/A
Maximum Density N/A
Frontage Distance/Street 200 ft Workman Street
General Plan N/ASpecific Plan N/AZoning M-3
Entitlement Status N/A
Sale Summary
Recorded Buyer
Conway F. & Elizabeth H Lopez Marketing Time 6 Month(s)
True Buyer N/A Buyer Type N/ARecorded Seller Alfredo &
Petra R Sandoval
Seller Type N/A
True Seller Alfredo & Petra R Sandoval
Primary Verification CoStar, public records
Interest Transferred Fee Simple/Freehold Type SaleCurrent Use Vacant Land Date 5/31/2013Proposed Use Industrial Sale Price $160,000Listing Broker Cushman & Wakefield: Wayne
Kress- (661)633-3819, Oscar Baltazar- (661) 631-3819, Coby Vance- (661) 633-3807
Financing Cash to Seller
Selling Broker N/A Cash Equivalent $160,000Doc # 81792 Capital Adjustment $0
Adjusted Price $160,000
Transaction Summary plus Five-Year CBRE View History
Transaction Date Transaction Type Buyer Seller Price Cash Equivalent Price/sf
05/2013 Sale Conway F. & Elizabeth H Lopez
Alfredo & Petra R Sandoval $160,000 N/A
© 2015 CBRE, Inc.
Sale Land - Industrial No. 3Units of Comparison
$2.66 / sf N/A / Unit
$115,816.14 / ac N/A / Building Area
Financial
No information recorded
Map & Comments
This property is located in an industrial area of Bakersfield, on 508 and 516 Workman Street, south of Highway 58, north of Zephyr Lane, west of Oswell Street, in the city of Bakersfield, CA, Kern County. The properties have no existing improvements and have a combined land area of 60,178 square feet. The land parcels are finished lots and zoned M-3 for proposed industrial usage. The two properties sold on May 31, 2013, for a combined $160,000, or $2.66 per square foot of land area.
© 2015 CBRE, Inc.
Sale Land - Industrial No. 4
Rooster DriveBakersfield, CA 93313United States
Government Tax Agency
Govt./Tax ID
Kern
173-380-39-00
Rooster Drive LandAddressProperty Name
Site/Government Regulations
Acres Square feetLand Area Net 2.020 87,991
Land Area Gross 2.020 87,991
Site Development Status FinishedShape IrregularTopography Generally LevelUtilities Available
Maximum FAR N/AMin Land to Bldg Ratio N/A
Maximum Density N/A
General Plan N/ASpecific Plan N/AZoning M-2
Entitlement Status N/A
Sale Summary
Recorded BuyerHardam Aulakh Marketing Time 61 Month(s)
True Buyer Hardam Aulakh
Buyer Type N/A
Recorded Seller Randy & Joanie Ellis
Seller Type N/A
True Seller Randy & Joanie Ellis
Primary Verification CoStar, public records
Interest Transferred Fee Simple/Freehold Type SaleCurrent Use Vacant Land Date 4/22/2013Proposed Use Industrial Sale Price $265,000Listing Broker Dave Long- (661) 410-5664 Financing Cash to SellerSelling Broker N/A Cash Equivalent $265,000Doc # 74402 Capital Adjustment $0
Adjusted Price $265,000
Transaction Summary plus Five-Year CBRE View History
Transaction Date Transaction Type Buyer Seller Price Cash Equivalent Price/sf
04/2013 Sale Hardam Aulakh Randy & Joanie Ellis $265,000 N/A
© 2015 CBRE, Inc.
Sale Land - Industrial No. 4Units of Comparison
$3.01 / sf N/A / Unit
$131,188.12 / ac N/A / Building Area
Financial
No information recorded
Map & Comments
This property is located in the center of an industrial block, on the southeast corner of Rooster Avenue and Cox Avenue, west of Weedpatch Highway, south of Highway 58, north of Kernita Road, in the city of Bakersfield, CA, Kern County. The property is a 2.02-acre finished lot surrounded by numerous existing industrial buildings. The property sold for a confirmed sale price of $265,000, or $3.01 per land square foot. According to the broker notes, the buyer is planning on building an office for his trucking company.
© 2015 CBRE, Inc.
Addenda
Addendum B
IMPROVED SALE DATA SHEETS
© 2015 CBRE, Inc.
Available/Listing Industrial - WH/Distribution/Logistics No. 1
2801 Gateway AvenueBakersfield, CA 93307United States
Government Tax Agency
Govt./Tax ID
Kern
167-010-31-00, 167-010-33-00
2801 Gateway AvenueAddressProperty Name
Improvements
Gross Building Area 11,710 sf Floor Count 1Rentable Area 11,710 sf Parking Type SurfaceUsable Area N/A Parking Ratio 1.79/1,000 sfStatus Existing Condition AverageOccupancy Type Single Tenant Exterior Finish MetalYear Built N/A Investment Class N/AYear Renovated N/A Number of Buildings 1% Office 12.00% Fire Sprinkler System None% AC N/A Rail Access N/AClear Ceiling Height 23 - 26 ft Column Spacing N/A
Loading N/A
Site/Government Regulations
Acres Square feetLand Area Net 10.380 452,153
Land Area Gross 10.380 452,153
Site Development Status N/AShape IrregularTopography Generally LevelUtilities N/A
Maximum Floor Area N/AMin Land to Bldg Ratio N/A
Actual Land to Bldg Ratio 38.61:1
Zoning M-2
General Plan N/A
Sale Summary
Recorded Buyer N/A Marketing Time N/ATrue Buyer N/A Buyer Type N/ARecorded Seller Gateway
Drive Properties
Seller Type N/A
True Seller N/A Primary Verification OM, CoStar, public records
Interest Transferred N/A Type Available/ListingCurrent Use Mixed Use: Industrial and Office Date 5/15/2015Proposed Use N/A Sale Price $3,150,000Listing Broker Colliers International- Stephen J.
Haupt 661.631.3812Financing N/A
Selling Broker N/A Cash Equivalent $3,150,000Doc # N/A Capital Adjustment $0
Adjusted Price $3,150,000
© 2015 CBRE, Inc.
Available/Listing Industrial - WH/Distribution/Logistics No. 1Transaction Summary plus Five-Year CBRE View History
Transaction Date Transaction Type Buyer Seller Price Cash Equivalent Price/sf
05/2015 Available/Listing N/A Gateway Drive Properties $3,150,000 $269
Units of Comparison
Static Analysis Method N/A Eff Gross Inc Mult (EGIM) N/ABuyer's Primary Analysis N/A Op Exp Ratio (OER) N/ANet Initial Yield/Cap. Rate N/A Adjusted Price / sf $269.00Projected IRR N/A Wtd. Avg. Lease Expiry N/A
Actual Occupancy at Sale N/A
Financial
No information recorded
Map & Comments
This comparable is the former Malcolm Drilling property, which is located one block west of Mt. Vernon Avenue, about 0.25-miles south of Highway 58, in southeast Bakersfield. This property is a 10.38-acre double corner site on the southeast corner of Gateway Avenue and Enterprise Way with additional frontage to East Belle Terrace and Gateway Court. The primary 10,000-square-foot metal building is rectangular in shape with 1,400 square feet of office, eight 14' x 16' roll-up doors, four swamp coolers in the warehouse, security cameras, clear height of 23' to 26' with a clear span construction, and no fire sprinklers. There is also a 1,710-square-foot paint shop building in the yard area. The site has perimeter fencing with the yard area asphalt paved. The land-to-building ratio is 39:1 while most industrial properties in the neighborhood have a 5:1 ratio, indicating there is about 395,000 square feet or 9.04 acres of excess land. The property was listed in April 2015 for $3,150,000, or $269.00 per square foot of building area. The broker reported a site value of $3.00 per square foot ($1,356,459) plus replacement cost of the building (estimated at $45 PSF) which yields a total value of $1,883,409, well below the asking price. Assuming a 5:1 land to building ratio, the allocated land supporting the building plus replacement cost equals $702,600, or $60 per square foot of building area without the excess land.
© 2015 CBRE, Inc.
Available/Listing Industrial - WH/Distribution/Logistics No. 2
3901 E Brundage LaneBakersfield, CA 93307United States
Government Tax Agency
Govt./Tax ID
Kern
173-670-05-00
3901 E Brundage Lane (Building A)AddressProperty Name
Improvements
Gross Building Area 33,500 sf Floor Count 1Rentable Area 33,500 sf Parking Type SurfaceUsable Area N/A Parking Ratio 1.79/1,000 sfStatus Existing Condition AverageOccupancy Type Single Tenant Exterior Finish MetalYear Built 1988 Investment Class N/AYear Renovated N/A Number of Buildings 1% Office 9.25% Fire Sprinkler System Fully Sprinklered% AC N/A Rail Access N/AClear Ceiling Height 12 - 18 ft Column Spacing N/A
Loading N/A
Site/Government Regulations
Acres Square feetLand Area Net 2.340 101,930
Land Area Gross N/A N/A
Site Development Status N/AShape IrregularTopography Generally LevelUtilities N/A
Maximum Floor Area N/AMin Land to Bldg Ratio N/A
Actual Land to Bldg Ratio 3.04:1
Zoning M-2
General Plan N/A
Sale Summary
Recorded Buyer N/A Marketing Time 10 Month(s)True Buyer N/A Buyer Type N/ARecorded Seller Brundage
Prop LLCSeller Type N/A
True Seller N/A Primary Verification OM, CoStar, public records
Interest Transferred N/A Type Available/ListingCurrent Use Industrial: Office and Warehouse Date 5/15/2015Proposed Use N/A Sale Price $1,300,000Listing Broker Oscar Baltazar- 661.631.3819,
Wesley McDonald- 661.631.3828Financing Not Available
Selling Broker N/A Cash Equivalent $1,300,000Doc # N/A Capital Adjustment $0
Adjusted Price $1,300,000
© 2015 CBRE, Inc.
Available/Listing Industrial - WH/Distribution/Logistics No. 2Transaction Summary plus Five-Year CBRE View History
Transaction Date Transaction Type Buyer Seller Price Cash Equivalent Price/sf
05/2015 Available/Listing N/A Brundage Prop LLC $1,300,000 $39
Units of Comparison
Static Analysis Method N/A Eff Gross Inc Mult (EGIM) N/ABuyer's Primary Analysis N/A Op Exp Ratio (OER) N/ANet Initial Yield/Cap. Rate N/A Adjusted Price / sf $38.81Projected IRR N/A Wtd. Avg. Lease Expiry N/A
Actual Occupancy at Sale N/A
Financial
Revenue TypeVacant
at MarketPeriod Ending N/ASource N/APrice $1,300,000Potential Gross Income $120,600Economic Occupancy 95%Economic Loss $6,030Effective Gross Income $114,570Expenses $3,350Net Operating Income $111,220NOI / sf $3NOI / Unit N/AEGIM 11.35OER 2.92%Net Initial Yield/Cap. Rate 8.56%
Map & Comments
This is the current listing at a 1988-built, 33,500-square-foot, industrial building located on a 2.34-acre site on the south side of East Brundage Lane, just east of Mt. Vernon Avenue, abutting the north side of the Highway 58 Freeway in southeast Bakersfield. The metal single-tenant building is in average condition. It has 4,723 square feet of office, three ground level doors, two truck dock wells, a clear height of 12' to 18', 400-amp power, fire sprinklers, and 90 fenced parking spaces. The property was listed in July 2014 for $1,300,000, or $38.81 per square foot. It is leased to Express Wholesale Tire at a monthly rent of $0.30 per square foot, industrial gross, the broker did not report any additional lease terms. Based on expenses of $0.10 per square foot, the asking price implies an OA of 8.56%.
© 2015 CBRE, Inc.
Available/Listing Industrial - WH/Distribution/Logistics No. 3
402 California AvenueBakersfield, CA 93304United States
Government Tax Agency
Govt./Tax ID
Kern
006-540-13
402 California AvenueAddressProperty Name
Improvements
Gross Building Area 10,025 sf Floor Count N/ARentable Area N/A Parking Type SurfaceUsable Area N/A Parking Ratio N/AStatus Existing Condition AverageOccupancy Type N/A Exterior Finish ConcreteYear Built 1960 Investment Class N/AYear Renovated N/A Number of Buildings 1% Office 13.00% Fire Sprinkler System None% AC 100.00% Rail Access NoneClear Ceiling Height 17 ft Column Spacing N/A
Loading 3 GL/0 DH
Site/Government Regulations
Acres Square feetLand Area Net 0.650 28,732
Land Area Gross N/A N/A
Site Development Status N/AShape N/ATopography N/AUtilities N/A
Maximum Floor Area N/AMin Land to Bldg Ratio N/A
Actual Land to Bldg Ratio 0.35:1
Zoning N/A
General Plan N/A
Sale Summary
Recorded Buyer N/A Marketing Time 18 Month(s)True Buyer N/A Buyer Type N/ARecorded Seller N/A Seller Type N/ATrue Seller N/A Primary Verification N/A
Interest Transferred N/A Type Available/ListingCurrent Use N/A Date 5/1/2015Proposed Use N/A Sale Price $599,000Listing Broker N/A Financing N/ASelling Broker N/A Cash Equivalent $599,000Doc # N/A Capital Adjustment $0
Adjusted Price $599,000
© 2015 CBRE, Inc.
Available/Listing Industrial - WH/Distribution/Logistics No. 3Transaction Summary plus Five-Year CBRE View History
Transaction Date Transaction Type Buyer Seller Price Cash Equivalent Price/sf
05/2015 Available/Listing N/A N/A $599,000 $6005/2014 N/A N/A N/A N/A N/A01/2014 N/A N/A N/A N/A N/A06/2013 N/A N/A N/A N/A N/A
Units of Comparison
Static Analysis Method N/A Eff Gross Inc Mult (EGIM) N/ABuyer's Primary Analysis N/A Op Exp Ratio (OER) N/ANet Initial Yield/Cap. Rate N/A Adjusted Price / sf $59.75Projected IRR N/A Wtd. Avg. Lease Expiry N/A
Actual Occupancy at Sale N/A
Financial
Revenue TypePro Forma Stabilized
Period Ending N/ASource N/APrice $599,000Potential Gross Income $84,000Economic Occupancy 95%Economic Loss $4,200Effective Gross Income $79,800Expenses $21,000Net Operating Income $58,800NOI / sf N/ANOI / Unit N/AEGIM 7.51OER 26.32%Net Initial Yield/Cap. Rate 9.82%
Map & Comments
The is comparable is located on California Avenue, west of Union Avenue, two miles east of Highway 99 and one mile south of Highway 178 in central Bakersfield. The concrete tilt-up building has a pitched metal roof with a minimum 17-foot clearance height, 1,303 square feet of office space, 1,496 square feet of unfinished storage mezzanine (not included in building total), three grade-level loading doors (2 – 10’ x 10’, 1 – 14’ x 14’), and a 22’ x 27’ metal canopy on the east side of the warehouse. There is unsecured surface parking fronting California Avenue and a concrete block fenced yard area. The property was leased to Factory Motor Parts at $6,000 per month with monthly CAM fees of about $1,000 in 2013-2014; however the tenant vacated at the end of 2014. The building is in average condition and is considered a Class C property in this market.
The building was first listed for sale in November 2013 for $699,000. The price was reduced to $599,000 in November 2014. As of May 2015, the building was vacant.
© 2015 CBRE, Inc.
Sale Industrial - WH/Distribution/Logistics No. 4
3925 E Brundage LaneBakersfield, CA 93307United States
Government Tax Agency
Govt./Tax ID
Kern
173-670-06-00
3925 & 3947 E Brundage Lane (Buildings B & C)
Address
Property Name
Improvements
Gross Building Area 64,875 sf Floor Count 1Rentable Area 64,875 sf Parking Type SurfaceUsable Area N/A Parking Ratio 0.00/1,000 sfStatus Existing Condition AverageOccupancy Type Multi-tenant Exterior Finish MetalYear Built 1988 Investment Class N/AYear Renovated N/A Number of Buildings 2% Office N/A Fire Sprinkler System Yes% AC N/A Rail Access N/AClear Ceiling Height 12 - 15 ft Column Spacing N/A
Loading N/A
Site/Government Regulations
Acres Square feetLand Area Net 4.850 211,266
Land Area Gross N/A N/A
Site Development Status N/AShape IrregularTopography Generally LevelUtilities N/A
Maximum Floor Area N/AMin Land to Bldg Ratio N/A
Actual Land to Bldg Ratio 3.26:1
Zoning M-1
General Plan N/A
Sale Summary
Recorded BuyerOh S & Su D Lee Marketing Time 5 Month(s)
True Buyer Oh S & Su D Lee-800.788.6808
Buyer Type N/A
Recorded Seller Brundage Properties LLC
Seller Type N/A
True Seller Willy Reyneveld- 661.859.0224
Primary Verification CoStar, public records
© 2015 CBRE, Inc.
Interest Transferred Leased Fee Type SaleCurrent Use Industrial Date 12/31/2014Proposed Use N/A Sale Price $1,200,000Listing Broker Colliers International- Oscar
Baltazar 661.631.3819, Wesley McDonald- 661.631.3828, Stephen Haupt- 661.631.3812
Financing Not Available
Selling Broker Colliers International- Oscar Baltazar 661.631.3819, Wesley McDonald- 661.631.3828, Stephen Haupt- 661.631.3812
Cash Equivalent $1,200,000
Doc # 163319 Capital Adjustment $0
Adjusted Price $1,200,000
© 2015 CBRE, Inc.
Sale Industrial - WH/Distribution/Logistics No. 4Transaction Summary plus Five-Year CBRE View History
Transaction Date Transaction Type Buyer Seller Price Cash Equivalent Price/sf
12/2014 Sale Oh S & Su D Lee Brundage Properties LLC $1,200,000 $19
Units of Comparison
Static Analysis Method N/A Eff Gross Inc Mult (EGIM) N/ABuyer's Primary Analysis N/A Op Exp Ratio (OER) N/ANet Initial Yield/Cap. Rate N/A Adjusted Price / sf $18.50Projected IRR N/A Wtd. Avg. Lease Expiry N/A
Actual Occupancy at Sale N/A
Financial
No information recorded
Map & Comments
This comparable represents the sale of two 1988-built buildings located on the south side of Brundage Lane, just east of Mt. Vernon Avenue, abutting the north side of the Highway 58 Freeway, in southeast Bakersfield. The buildings are of metal construction and in average condition. The combined properties sit on a 4.95-acre parcel of land. 3925 Brundage (Building B) contains 30,000 square feet, four ground level doors, a clear height of 12' to 15', and 500-amp power while 3947 Brundage (Building C) contains 31,875 square feet, three ground level doors, a clear height of 12' to 15' and 1000-amp power. At the time of sale, building B was fully leased, while building C was still for lease with the new owner occupying 16,875 square feet of that building. The buildings were originally marketed for an asking price of $1,300,000, but sold for a confirmed sale price of $1,200,000, or $18.50 per square foot of building area.
© 2015 CBRE, Inc.
Sale Industrial - WH/Distribution/Logistics No. 5
151 Hayden CourtBakersfield, CA 93305United States
Government Tax Agency
Govt./Tax ID
Kern
006-540-31
Industrial BuildingAddressProperty Name
Improvements
Gross Building Area 10,800 sf Floor Count N/ARentable Area 10,800 sf Parking Type SurfaceUsable Area N/A Parking Ratio N/AStatus Existing Condition AverageOccupancy Type N/A Exterior Finish ConcreteYear Built 1987 Investment Class N/AYear Renovated N/A Number of Buildings 1% Office N/A Fire Sprinkler System N/A% AC N/A Rail Access NoneClear Ceiling Height 18 ft Column Spacing N/A
Loading 1 exterior covered dock - GL
Site/Government Regulations
Acres Square feetLand Area Net 0.500 21,911
Land Area Gross N/A N/A
Site Development Status N/AShape N/ATopography N/AUtilities N/A
Maximum Floor Area N/AMin Land to Bldg Ratio N/A
Actual Land to Bldg Ratio 2.03:1
Zoning N/A
General Plan N/A
Sale Summary
Recorded BuyerM Bros Properties Marketing Time 10 Month(s)
True Buyer N/A Buyer Type N/ARecorded Seller Kyoo Soon
Shin & Sun Shin
Seller Type N/A
True Seller N/A Primary Verification Deed
Interest Transferred N/A Type SaleCurrent Use N/A Date 9/17/2014Proposed Use N/A Sale Price $470,000Listing Broker Andy Park, 213-272-5695 Financing N/ASelling Broker N/A Cash Equivalent $470,000Doc # 116528 Capital Adjustment N/A
Adjusted Price $470,000
© 2015 CBRE, Inc.
Sale Industrial - WH/Distribution/Logistics No. 5Transaction Summary plus Five-Year CBRE View History
Transaction Date Transaction Type Buyer Seller Price Cash Equivalent Price/sf
09/2014 Sale M Bros Properties Kyoo Soon Shin & Sun Shin $470,000 N/A
Units of Comparison
Static Analysis Method N/A Eff Gross Inc Mult (EGIM) N/ABuyer's Primary Analysis N/A Op Exp Ratio (OER) N/ANet Initial Yield/Cap. Rate N/A Adjusted Price / sf $43.52Projected IRR N/A Wtd. Avg. Lease Expiry N/A
Actual Occupancy at Sale N/A
Financial
No information recorded
Map & Comments
This is the September 2014 sale of a 10,800-square-foot concrete block industrial building located at the Hayden Court cul-de-sac, just west of Union Avenue, north of California Avenue, in the city of Bakersfield. The property is located in the Downtown Bakersfield submarket. The property has an 18-foot clearance height, an exterior covered truck well (one position) to a single grade-level loading door, and an unsecured 10-space surface parking lot. The property has a site coverage of 0.49.
The sale price was $470,000, or $43.52 per square foot. The property was listed in November 2013 at $750,000, or $69.44 per square foot. The price was reduced to $650,000, or $60.19 per square foot in February 2014. The building was vacant at the time of sale.
© 2015 CBRE, Inc.
Sale Industrial - WH/Distribution/Logistics No. 6
2507 M StreetBakersfield, CA 93301United States
Government Tax Agency
Govt./Tax ID
Kern
005-331-24
M Street Industrial WarehouseAddressProperty Name
Improvements
Gross Building Area 9,150 sf Floor Count N/ARentable Area N/A Parking Type SurfaceUsable Area N/A Parking Ratio N/AStatus Existing Condition AverageOccupancy Type N/A Exterior Finish MetalYear Built 1983 Investment Class N/AYear Renovated N/A Number of Buildings 2% Office 19.00% Fire Sprinkler System N/A% AC 19.00% Rail Access NoneClear Ceiling Height 12 ft Column Spacing N/A
Loading 2 GL - 12 x 12
Site/Government Regulations
Acres Square feetLand Area Net 0.430 18,731
Land Area Gross N/A N/A
Site Development Status N/AShape N/ATopography N/AUtilities N/A
Maximum Floor Area N/AMin Land to Bldg Ratio N/A
Actual Land to Bldg Ratio 2.05:1
Zoning N/A
General Plan N/A
Sale Summary
Recorded Buyer
David & Tere Quintana Marketing Time 4 Month(s)
True Buyer N/A Buyer Type N/ARecorded Seller Dennis J
CollinsSeller Type N/A
True Seller N/A Primary Verification Grant Deed
Interest Transferred N/A Type SaleCurrent Use N/A Date 8/30/2013Proposed Use N/A Sale Price $600,000Listing Broker Wesley Mcdonald, Colliers 661-
631-3828Financing N/A
Selling Broker N/A Cash Equivalent $600,000Doc # 128269 Capital Adjustment N/A
Adjusted Price $600,000
© 2015 CBRE, Inc.
Sale Industrial - WH/Distribution/Logistics No. 6Transaction Summary plus Five-Year CBRE View History
Transaction Date Transaction Type Buyer Seller Price Cash Equivalent Price/sf
08/2013 Sale David & Tere Quintana Dennis J Collins $600,000 N/A
Units of Comparison
Static Analysis Method N/A Eff Gross Inc Mult (EGIM) N/ABuyer's Primary Analysis N/A Op Exp Ratio (OER) N/ANet Initial Yield/Cap. Rate N/A Adjusted Price / sf $65.57Projected IRR N/A Wtd. Avg. Lease Expiry N/A
Actual Occupancy at Sale N/A
Financial
No information recorded
Map & Comments
This is the August 2013 sale of a property consisting of two metal buildings totaling 9,150 square feet located along the west side of M Street in between 25th Street and 26th Street in the Downtown Bakersfield market of Bakersfield, Kern County, California. It is located just north of the Highway 178 western terminus. The buildings were built in 1983 and were in average condition. The building features T-5 lighting and skylights, a 70-square-foot cold freezer space, a heater, two evaporative coolers, two ground-level loading doors and on-site surface parking. The buildings site coverage is 49%. The sale price was $600,000, or $65.57 per square foot. The property was listed at an asking price of $640,000 and was on the market for four months.
© 2015 CBRE, Inc.
Addenda
Addendum C
RENT COMPARABLE DATA SHEETS
© 2015 CBRE, Inc.
Comparable Industrial - WH/Distribution/Logistics No. 1
3901 E Brundage LaneBakersfield, CA 93307United States
Government Tax Agency
Govt./Tax ID
Kern
173-670-05-00
3901 E Brundage Lane (Building A)AddressProperty Name
Improvements
Gross Building Area 33,500 sf Floor Count 1Rentable Area 33,500 sf Parking Type SurfaceUsable Area N/A Parking Ratio 1.79/1,000 sfStatus Existing Condition AverageOccupancy Type Single Tenant Exterior Finish MetalYear Built 1988 Investment Class N/AYear Renovated N/A Number of Buildings 1% Office 9.25% Fire Sprinkler System Fully Sprinklered% AC N/A Rail Access N/AClear Ceiling Height 12 - 18 ft Column Spacing N/A
Loading N/A
Site/Government Regulations
Acres Square feetLand Area Net 2.340 101,930
Land Area Gross N/A N/A
Site Development Status N/AShape IrregularTopography Generally LevelUtilities N/A
Maximum Floor Area N/AMin Land to Bldg Ratio N/A
Actual Land to Bldg Ratio 3.04:1
Zoning M-2
General Plan N/A
Contact
Recorded Owner N/A Leasing Agent N/A
True Owner N/A Company N/A
Rental SurveyOccupancy 100% Tenant Size 33,500 sfReimbursements Industrial Gross Lease Term N/ARent Changes/Steps N/A Annual Base Rent $4.20 per sfSurvey Date 05/2015 Free Rent N/ASurvey Notes N/A TI Allowance N/A
Reimbursement Amount N/A
Total Oper. & Fixed Exp. N/A
© 2015 CBRE, Inc.
Industrial - WH/Distribution/Logistics No. 1ComparableActual Leases
Tenant NameTenancy Use Type Size (sf)
Term (Mo.)
Type of Lease Start Date
Annual Base
Rate per sf Reimbs. Rent Changes / Steps
Free Rent(Mo.)
TI Allowance
per sfExpress
Wholesale TireIndustrial 33,500 N/A New 6/1/2013 3.60 Industrial Gross N/A N/A N/A
Map & Comments
This is comparable is a 1988-built, 33,500-square-foot, industrial building located on a 2.34-acre site on the south side of East Brundage Lane, just east of Mt. Vernon Avenue, abutting the north side of the Highway 58 Freeway in southeast Bakersfield. The metal single-tenant building is in average condition. It has 4,723 square feet of office, three ground level doors, two truck dock wells, a clear height of 12' to 18', 400-amp power, fire sprinklers, and 90 fenced parking spaces. In June 2013, it was leased to Express Wholesale Tire at a monthly rent of $0.30 per square foot, industrial gross, the broker did not report any additional lease terms. The asking rent was $0.35 per square foot. It is also currently listed for sale.
© 2015 CBRE, Inc.
Comparable Industrial - WH/Distribution/Logistics No. 2
300 Wood StreetBakersfield, CA 93307United States
Government Tax Agency
Govt./Tax ID
Kern
139-280-18
300 Wood StreetAddressProperty Name
Improvements
Gross Building Area 38,000 sf Floor Count N/ARentable Area N/A Parking Type SurfaceUsable Area N/A Parking Ratio N/AStatus Existing Condition AverageOccupancy Type N/A Exterior Finish ConcreteYear Built 1980 Investment Class N/AYear Renovated N/A Number of Buildings 1% Office 10.53% Fire Sprinkler System Yes% AC 10.50% Rail Access NoClear Ceiling Height 20 - 24 ft Column Spacing N/A
Loading 4 DH, 2 GL
Site/Government Regulations
Acres Square feetLand Area Net 1.530 66,647
Land Area Gross N/A N/A
Site Development Status N/AShape N/ATopography N/AUtilities N/A
Maximum Floor Area N/AMin Land to Bldg Ratio N/A
Actual Land to Bldg Ratio 1.75:1
Zoning N/A
General Plan N/A
Contact
Recorded Owner N/A Leasing AgentStephen McKinzie, McKinzie Real Estate Services
True Owner N/A Company N/A
Rental SurveyOccupancy 100% Tenant Size 38,000 sfReimbursements NNN Lease Term 36 Mo(s).Rent Changes/Steps N/A Annual Base Rent $4.20 per sfSurvey Date 05/2015 Free Rent N/ASurvey Notes N/A TI Allowance N/A
Reimbursement Amount N/A
Total Oper. & Fixed Exp. N/A
© 2015 CBRE, Inc.
Industrial - WH/Distribution/Logistics No. 2ComparableActual Leases
Tenant NameTenancy Use Type Size (sf)
Term (Mo.)
Type of Lease Start Date
Annual Base
Rate per sf Reimbs. Rent Changes / Steps
Free Rent(Mo.)
TI Allowance
per sfArchitectural Supplements
Industrial 38,000 36 New 3/1/2013 4.20 NNN N/A N/A
Map & Comments
This comparable is a 38,000-square-foot single-tenant industrial building situated on a 1.53-acre site and located at the northwest corner of Wood Street and 3rd Avenue in Bakersfield. Downtown Bakersfield is located about 1.5 miles northwest and Highway 58 is located about one-half mile south. The building was completed in 1980 and is in average condition. Amenities include 4,000 square feet of office space, 20-foot to 24-foot warehouse clearance, 800 amps of power, five sprinklers and 4 dock-high and 2 grade-level loading positions. The bay size is 40 feet by 40 feet. The property was listed for lease at $0.35 per square foot, triple net in June 2011. A lease was signed in March 2013 to Architectural Supplements, a wholesaler of plant containers. No further details were reported.
© 2015 CBRE, Inc.
Comparable Industrial - WH/Distribution/Logistics No. 3
300 Golden State AvenueBakersfield, CA 93301United States
Government Tax Agency
Govt./Tax ID
Kern
005-040-01
Industrial Showroom (2013)AddressProperty Name
Improvements
Gross Building Area 9,300 sf Floor Count N/ARentable Area 9,300 sf Parking Type SurfaceUsable Area N/A Parking Ratio N/AStatus Existing Condition AverageOccupancy Type N/A Exterior Finish ConcreteYear Built 1982 Investment Class N/AYear Renovated N/A Number of Buildings 1% Office 27.00% Fire Sprinkler System N/A% AC 100.00% Rail Access NoneClear Ceiling Height 13 ft Column Spacing N/A
Loading 2 GL
Site/Government Regulations
Acres Square feetLand Area Net 0.530 23,087
Land Area Gross N/A N/A
Site Development Status N/AShape N/ATopography N/AUtilities N/A
Maximum Floor Area N/AMin Land to Bldg Ratio N/A
Actual Land to Bldg Ratio 0.40:1
Zoning N/A
General Plan N/A
Contact
Recorded Owner N/A Leasing Agent Boyd Binninger
True Owner N/A Company N/A
Rental SurveyOccupancy 100% Tenant Size 9,300 sfReimbursements N/A Lease Term 60 Mo(s).Rent Changes/Steps Fixed Annual Base Rent $0.50 per sfSurvey Date 01/2014 Free Rent 0 Mo(s).Survey Notes Lease Type: IG TI Allowance $0.00 per sf
Reimbursement Amount N/A
Total Oper. & Fixed Exp. N/A
© 2015 CBRE, Inc.
Industrial - WH/Distribution/Logistics No. 3ComparableActual Leases
Tenant NameTenancy Use Type Size (sf)
Term (Mo.)
Type of Lease Start Date
Annual Base
Rate per sf Reimbs. Rent Changes / Steps
Free Rent(Mo.)
TI Allowance
per sfCampbell
Refrigeration SuN/A 9,300 60 N/A 9/1/2013 0.50 N/A Steps 0 N/A
Map & Comments
This is the September 2013 lease of a 9,300-square-foot industrial/showroom building located along Golden State Avenue, just south of Highway 178 and northwest of the Golden State Avenue and Union Avenue intersection in the city of Bakersfield. The property is located in the Downtown Bakersfield submarket, next to the Bakersfield Dome Arena and just east of the Kern Island Canal. It has main street frontage along Golden State Avenue, a major north/south street in Downtown Bakersfield. The property features 13-foot clearance height, approximately 2,500 square feet of office space, two grade-level loading doors, an insulated warehouse with two breeze air coolers and an unsecured surface parking lot. The property has a site coverage of 0.40.
The property was listed in July 2012 for $545,000, or $58.60 per square foot. The price was reduced to $495,000, or $53.23 per square foot in June 2013 and it sold in October 2013 for $485,000. The buyer was an investor who secured a tenant prior to the closed of escrow. It was for a five-year lease at a base rent of $0.50 per square foot per month, industrial gross, with annual steps to $0.55, $0.60, $0.62, and $0.64 per square foot. There was no free rent and the tenant took the space "as is."
© 2015 CBRE, Inc.
Comparable Industrial - WH/Distribution/Logistics No. 4
331 20th StreetBakersfield, CA 93301United States
Government Tax Agency
Govt./Tax ID
Kern
005-130-02
331 20th Street (2013)AddressProperty Name
Improvements
Gross Building Area 9,275 sf Floor Count N/ARentable Area N/A Parking Type SurfaceUsable Area N/A Parking Ratio N/AStatus Existing Condition GoodOccupancy Type N/A Exterior Finish MetalYear Built 1937 Investment Class N/AYear Renovated 2005 Number of Buildings 2% Office 37.10% Fire Sprinkler System N/A% AC N/A Rail Access NoneClear Ceiling Height 14 ft Column Spacing N/A
Loading 1 GL (12'x12')
Site/Government Regulations
Acres Square feetLand Area Net 0.400 17,424
Land Area Gross N/A N/A
Site Development Status N/AShape N/ATopography N/AUtilities N/A
Maximum Floor Area N/AMin Land to Bldg Ratio N/A
Actual Land to Bldg Ratio 0.53:1
Zoning N/A
General Plan N/A
Contact
Recorded Owner N/A Leasing Agent Scott Wells, Colliers
True Owner N/A Company N/A
Rental SurveyOccupancy 80% Tenant Size 7,435 sfReimbursements Industrial Gross Lease Term 24 Mo(s).Rent Changes/Steps Flat Annual Base Rent $0.64 per sfSurvey Date 06/2013 Free Rent 0 Mo(s).Survey Notes N/A TI Allowance $1.35 per sf
Reimbursement Amount N/A
Total Oper. & Fixed Exp. N/A
© 2015 CBRE, Inc.
Industrial - WH/Distribution/Logistics No. 4ComparableActual Leases
Tenant NameTenancy Use Type Size (sf)
Term (Mo.)
Type of Lease Start Date
Annual Base
Rate per sf Reimbs. Rent Changes / Steps
Free Rent(Mo.)
TI Allowance
per sfB.I. Inc. N/A 7,435 24 N/A 9/6/2012 0.64 N/A N/A 1
Map & Comments
The comparable is a 7,435-square-foot metal industrial building with a 1,840-square-foot separate concrete block storage building in the back, totaling 9,275 square feet. The property is located on the south side of 20th Street, east the western terminus, just west of V Street, in the city of Bakersfield. It is located next to the Mill Creek Park and Bakersfield Courthouse Project, one block west of Union Avenue, a major north/south arterial street in Bakersfield, specifically the Downtown Bakersfield submarket. The property features 3,440 square feet of office space, a 20,000-square-foot fenced yard, 14-foot clearance height and one grade-level loading door. The building has a site coverage of 0.53.
The property was listed for $0.70 per square foot on an industrial gross basis. The metal industrial was leased for two years for $4,750 per month industrial gross, equating to $0.64 per square foot per month. The landlord provided a $10,000 TI budget and all of the office space was located in the metal building.
© 2015 CBRE, Inc.
Comparable Industrial - WH/Distribution/Logistics No. 5
415 20th StreetBakersfield, CA 93301United States
Government Tax Agency
Govt./Tax ID
Kern
005-130-01
415 20th Street (2013)AddressProperty Name
Improvements
Gross Building Area 6,536 sf Floor Count N/ARentable Area N/A Parking Type SurfaceUsable Area N/A Parking Ratio N/AStatus Existing Condition GoodOccupancy Type N/A Exterior Finish ConcreteYear Built 1936 Investment Class N/AYear Renovated 2005 Number of Buildings 1% Office 4.90% Fire Sprinkler System N/A% AC N/A Rail Access NoneClear Ceiling Height 12 ft Column Spacing N/A
Loading 1 GL (12'x12')
Site/Government Regulations
Acres Square feetLand Area Net 0.207 9,017
Land Area Gross N/A N/A
Site Development Status N/AShape N/ATopography N/AUtilities N/A
Maximum Floor Area N/AMin Land to Bldg Ratio N/A
Actual Land to Bldg Ratio 0.72:1
Zoning N/A
General Plan N/A
Contact
Recorded Owner N/A Leasing Agent Scott Wells, Colliers
True Owner N/A Company N/A
Rental SurveyOccupancy 100% Tenant Size 6,536 sfReimbursements Industrial Gross Lease Term 12 Mo(s).Rent Changes/Steps N/A Annual Base Rent $0.46 per sfSurvey Date 06/2013 Free Rent N/ASurvey Notes N/A TI Allowance N/A
Reimbursement Amount N/A
Total Oper. & Fixed Exp. N/A
© 2015 CBRE, Inc.
Industrial - WH/Distribution/Logistics No. 5ComparableActual Leases
Tenant NameTenancy Use Type Size (sf)
Term (Mo.)
Type of Lease Start Date
Annual Base
Rate per sf Reimbs. Rent Changes / Steps
Free Rent(Mo.)
TI Allowance
per sfTowing Yard N/A 6,536 N/A N/A 6/5/2013 0.46 N/A N/A N/A
Map & Comments
The comparable is a 6,536-square-foot concrete tilt-up industrial building located on the south side of 20th Street, east the western terminus, just west of V Street, in the city of Bakersfield. It is located next to the Mill Creek Park and Bakersfield Courthouse Project, one block west of Union Avenue, a major north/south arterial street in Bakersfield, specifically the Downtown Bakersfield submarket. The property features 318 square feet of office space, a 9,000-square-foot fenced yard, 12-foot clearance height and one grade-level loading door. The building has a site coverage of 0.72.
The property was listed for $0.50 per square foot on an industrial gross basis. A one-year lease was signed by a towing company for law enforcement (needing a downtown location) at $0.46 per square foot, industrial gross.
© 2015 CBRE, Inc.
Comparable Industrial - WH/Distribution/Logistics No. 6
2830 Union AvenueBakersfield, CA 93305United States
Government Tax Agency
Govt./Tax ID
Kern
012-081-04; 05
2830 Union Avenue (2013)AddressProperty Name
Improvements
Gross Building Area 9,200 sf Floor Count N/ARentable Area N/A Parking Type SurfaceUsable Area N/A Parking Ratio N/AStatus Existing Condition AverageOccupancy Type N/A Exterior Finish MetalYear Built 1983 Investment Class N/AYear Renovated N/A Number of Buildings 1% Office 23.20% Fire Sprinkler System N/A% AC N/A Rail Access NoneClear Ceiling Height 25 - 30 ft Column Spacing N/A
Loading 3 GL
Site/Government Regulations
Acres Square feetLand Area Net 0.485 21,127
Land Area Gross N/A N/A
Site Development Status N/AShape N/ATopography N/AUtilities N/A
Maximum Floor Area N/AMin Land to Bldg Ratio N/A
Actual Land to Bldg Ratio 0.44:1
Zoning N/A
General Plan N/A
Contact
Recorded Owner N/A Leasing AgentJohn W. Willingham, New Concept Realty
True Owner N/A Company N/A
Rental SurveyOccupancy 100% Tenant Size 9,200 sfReimbursements Industrial Gross Lease Term N/ARent Changes/Steps N/A Annual Base Rent $0.48 per sfSurvey Date 06/2013 Free Rent N/ASurvey Notes N/A TI Allowance N/A
Reimbursement Amount N/A
Total Oper. & Fixed Exp. N/A
© 2015 CBRE, Inc.
Industrial - WH/Distribution/Logistics No. 6ComparableActual Leases
Tenant NameTenancy Use Type Size (sf)
Term (Mo.)
Type of Lease Start Date
Annual Base
Rate per sf Reimbs. Rent Changes / Steps
Free Rent(Mo.)
TI Allowance
per sfSaso Human Performance
N/A 9,200 N/A N/A 9/6/2012 0.48 N/A N/A N/A
Map & Comments
This comparable is a 9,200-square-foot metal industrial/showroom building located at the southeast corner of Union Avenue and Pacific Street in the city of Bakersfield. The property is located two blocks north of Highway 178, northwest of the Downtown Bakersfield submarket. The property is located on a corner lot with frontage on both Union Avenue and Pacific Street. The property features 25'-30' clearance height, 2,138 square feet of office space, three grade-level loading doors and a surface parking lot. The building has a site coverage of 0.44.
It was listed for lease in late 2012 at $0.48 per square foot on a triple-net basis. A lease was signed to a Saso Human Performace, a sports facility in 2013. The broker was not involved with the lease but indicated market rent of about $0.50 per square foot, industrial gross.
© 2015 CBRE, Inc.
Addenda
Addendum D
ASSESSOR RECORDS
© 2015 CBRE, Inc.
Property Detail ReportFor Property Located At :500 WASHINGTON ST, BAKERSFIELD, CA 933072434
Record #: 1
Owner Information
Owner Name: COMMUNITY ACTION PTP OF KERNMailing Address: 300 19TH ST, BAKERSFIELD CA 933014906 C013Vesting Codes: / /Location InformationLegal Description: PARCEL MAP 11782 , PARCEL LOT 5County: KERN, CA APN: 1670603300Census Tract / Block: 23.02 / 2 Alternate APN:TownshipRangeSect: Subdivision:Legal Book/Page: Map Reference: 2443B6 /Legal Lot: 5 Tract #: 11782Legal Block: School District: KERN UNMarket Area: BAKERSFIELD School District Name:Neighbor Code: Munic/Township:Owner Transfer InformationRecording/Sale Date: / Deed Type:Sale Price: 1st Mtg Document #:Document #:Last Market Sale InformationRecording/Sale Date: / 1st Mtg Amount/Type: /Sale Price: 1st Mtg Int. Rate/Type: /Sale Type: 1st Mtg Document #:Document #: 2nd Mtg Amount/Type: /Deed Type: 2nd Mtg Int. Rate/Type: /Transfer Document #: Price Per SqFt:New Construction: Multi/Split Sale:Title Company:Lender:Seller Name:Prior Sale InformationPrior Rec/Sale Date: / Prior Lender:Prior Sale Price: Prior 1st Mtg Amt/Type: /Prior Doc Number: Prior 1st Mtg Rate/Type: /Prior Deed Type:Property CharacteristicsGross Area: Parking Type: Construction: FRAMELiving Area: Garage Area: Heat Type: FURNACETot Adj Area: Garage Capacity: Exterior wall:Above Grade: Parking Spaces: Porch Type:Total Rooms: Basement Area: Patio Type:Bedrooms: Finish Bsmnt Area: Pool:Bath(F/H): / Basement Type: Air Cond:Year Built / Eff: / Roof Type: Style:Fireplace: / Foundation: Quality:# of Stories: Roof Material: Condition: AVERAGEOther Improvements:Site InformationZoning: SP Acres: 3.91 County Use: VACANT INDUSTRIAL
ZONED M1 (3010)Lot Area: 170,320 Lot Width/Depth: x State Use:Land Use: RESIDENTIAL (NEC) Res/Comm Units: / Water Type:Site Influence: Sewer Type:
Tax InformationTotal Value: $61,531 Assessed Year: 2014 Property Tax: $689.66Land Value: $61,531 Improved %: Tax Area: 001527Improvement Value: Tax Year: 2014 Tax Exemption:Total Taxable Value: $61,531
© 2015 CBRE, Inc.
Property Detail ReportFor Property Located At :1913 FELIZ DR, BAKERSFIELD, CA 93307
Record #: 2
Owner Information Owner Name: COMMUNITY ACTION PTP OF KERNMailing Address: 300 19TH ST, BAKERSFIELD CA 933014906 C013Vesting Codes: / /Location InformationLegal Description: PARCEL MAP 11782 , PARCEL LOT 4County: KERN, CA APN: 1670603400Census Tract / Block: 24.00 / 1 Alternate APN:TownshipRangeSect: Subdivision:Legal Book/Page: Map Reference: 2483A1 /Legal Lot: 4 Tract #: 11782Legal Block: School District: KERN UNMarket Area: BAKERSFIELD School District Name:Neighbor Code: Munic/Township:Owner Transfer InformationRecording/Sale Date: / Deed Type:Sale Price: 1st Mtg Document #:Document #:Last Market Sale InformationRecording/Sale Date: / 1st Mtg Amount/Type: /Sale Price: 1st Mtg Int. Rate/Type: /Sale Type: 1st Mtg Document #:Document #: 2nd Mtg Amount/Type: /Deed Type: 2nd Mtg Int. Rate/Type: /Transfer Document #: Price Per SqFt:New Construction: Multi/Split Sale:Title Company:Lender:Seller Name:Prior Sale InformationPrior Rec/Sale Date: / Prior Lender:Prior Sale Price: Prior 1st Mtg Amt/Type: /Prior Doc Number: Prior 1st Mtg Rate/Type: /Prior Deed Type:Property CharacteristicsYear Built / Eff: / Total Rooms/Offices Garage Area:Gross Area: Total Restrooms: Garage Capacity:Building Area: Roof Type: Parking Spaces:Tot Adj Area: Roof Material: Heat Type:Above Grade: Construction: Air Cond:# of Stories: Foundation: Pool:Other Improvements: Exterior wall: Quality: Basement Area: Condition: Site InformationZoning: SP Acres: 6.85 County Use: VACANT INDUSTRIAL
ZONED M1 (3010)Lot Area: 298,386 Lot Width/Depth: x State Use:
Land Use: INDUSTRIALACREAGE Commercial Units: Water Type:
Site Influence: Sewer Type: Building Class:Tax InformationTotal Value: $107,794 Assessed Year: 2014 Property Tax: $1,206.70Land Value: $107,794 Improved %: Tax Area: 001527Improvement Value: Tax Year: 2014 Tax Exemption:Total Taxable Value: $107,794
Property Detail Report
© 2015 CBRE, Inc.
For Property Located At :1807 FELIZ DR, BAKERSFIELD, CA 93307
Record #: 3
Owner Information Owner Name: COMMUNITY ACTION PTP OF KERNMailing Address: 2005 BUSINESS PARK N, BAKERSFIELD CA 93309Vesting Codes: / /Location InformationLegal Description: PARCEL MAP 11782 , PARCEL LOT 3County: KERN, CA APN: 1670603500Census Tract / Block: 24.00 / 1 Alternate APN:TownshipRangeSect: Subdivision:Legal Book/Page: Map Reference: 2483A1 /Legal Lot: 3 Tract #: 11782Legal Block: School District: KERN UNMarket Area: BAKERSFIELD School District Name:Neighbor Code: Munic/Township:Owner Transfer InformationRecording/Sale Date: / Deed Type:Sale Price: 1st Mtg Document #:Document #:Last Market Sale InformationRecording/Sale Date: / 1st Mtg Amount/Type: /Sale Price: 1st Mtg Int. Rate/Type: /Sale Type: 1st Mtg Document #:Document #: 2nd Mtg Amount/Type: /Deed Type: 2nd Mtg Int. Rate/Type: /Transfer Document #: Price Per SqFt:New Construction: Multi/Split Sale:Title Company:Lender:Seller Name:Prior Sale InformationPrior Rec/Sale Date: / Prior Lender:Prior Sale Price: Prior 1st Mtg Amt/Type: /Prior Doc Number: Prior 1st Mtg Rate/Type: /Prior Deed Type:Property CharacteristicsYear Built / Eff: / Total Rooms/Offices Garage Area:Gross Area: Total Restrooms: Garage Capacity:Building Area: Roof Type: Parking Spaces:Tot Adj Area: Roof Material: Heat Type: FURNACEAbove Grade: Construction: FRAME Air Cond:# of Stories: Foundation: Pool:Other Improvements: Exterior wall: Quality: Basement Area: Condition: AVERAGE Site InformationZoning: Acres: 1.67 County Use: FENCED STORAGE (3700)Lot Area: 72,745 Lot Width/Depth: x State Use:Land Use: STORAGE Commercial Units: Water Type:Site Influence: Sewer Type: Building Class:Tax InformationTotal Value: $1,449,880 Assessed Year: 2014 Property Tax: $309.70Land Value: $26,276 Improved %: 98% Tax Area: 001527Improvement Value: $1,423,604 Tax Year: 2014 Tax Exemption: 80Total Taxable Value:
Property Detail ReportFor Property Located At :1825 FELIZ DR, BAKERSFIELD, CA 933073577
© 2015 CBRE, Inc.
Record #: 4
Owner Information Owner Name: COMMUNITY ACTION PTP OF KERNMailing Address: 2005 BUSINESS PARK N, BAKERSFIELD CA 93309Vesting Codes: / /Location InformationLegal Description: PARCEL MAP 11782 , PARCEL LOT 1County: KERN, CA APN: 1670603700Census Tract / Block: 24.00 / 1 Alternate APN:TownshipRangeSect: Subdivision:Legal Book/Page: Map Reference: 2483A1 /Legal Lot: 1 Tract #: 11782Legal Block: School District: KERN UNMarket Area: BAKERSFIELD School District Name:Neighbor Code: Munic/Township:Owner Transfer InformationRecording/Sale Date: / Deed Type:Sale Price: 1st Mtg Document #:Document #:Last Market Sale InformationRecording/Sale Date: / 1st Mtg Amount/Type: /Sale Price: 1st Mtg Int. Rate/Type: /Sale Type: 1st Mtg Document #:Document #: 2nd Mtg Amount/Type: /Deed Type: 2nd Mtg Int. Rate/Type: /Transfer Document #: Price Per SqFt:New Construction: Multi/Split Sale:Title Company:Lender:Seller Name:Prior Sale InformationPrior Rec/Sale Date: / Prior Lender:Prior Sale Price: Prior 1st Mtg Amt/Type: /Prior Doc Number: Prior 1st Mtg Rate/Type: /Prior Deed Type:Property CharacteristicsYear Built / Eff: / Total Rooms/Offices Garage Area:Gross Area: Total Restrooms: Garage Capacity:Building Area: Roof Type: Parking Spaces:Tot Adj Area: Roof Material: Heat Type: FURNACEAbove Grade: Construction: FRAME Air Cond:# of Stories: Foundation: Pool:Other Improvements: Exterior wall: Quality: Basement Area: Condition: AVERAGE Site InformationZoning: SP Acres: 3.47 County Use: DAY CARE CENTER (1713)Lot Area: 151,153 Lot Width/Depth: x State Use:Land Use: NURSERY SCHOOL Commercial Units: Water Type:Site Influence: Sewer Type: Building Class:Tax InformationTotal Value: $2,355,192 Assessed Year: 2014 Property Tax: $309.70Land Value: $54,604 Improved %: 98% Tax Area: 001527Improvement Value: $2,300,588 Tax Year: 2014 Tax Exemption: 80Total Taxable Value:
© 2015 CBRE, Inc.
Addenda
Addendum E
CLIENT CONTRACT INFORMATION
© 2015 CBRE, Inc.
RIMS Customer: Wells Fargo RETECHS #: WF-LA-15-009491-01-1
Award Information Date Awarded: 4/21/2015
Canceled: No Directly Awarded: YesFee: $6,500.00 Delivery Date: 5/14/2015
Award Comments: Please save this Award page as a .PDF file and include it as part of the Engagement Letter Contract in the Addendum of the report. In order to save this page as a PDF file, use the Adobe tool bar from your browser or choose the print ICON at the top right of the page and select Adobe PDF as your printer.
Job Attachments:There are currently no job attachments
Bid Information Proposed Fee: Direct Award Proposed Delivery Date:
Signatory Information: Office Location:Prior Services: Have you or your company performed or provided any professional services pertaining to -the subject property
within the prior three years, as an appraiser or in any other capacity, or is your company presently involved with the management, leasing, disposition, or any similar service regarding the subject property. If Yes, please provide details in the Comments field.
Bid Comments:
RFP Information Purpose Of Request: Other (Enter comments below)Response Deadline: 4/22/2015 RFP Contact: Brad Carlton (TC) (LA)
Desired Delivery Date: 5/14/2015 Contact Phone: 818-245-6054
ADDRESSEES: First name Last name Company Address
Brad Carlton (TC) (LA)
Wells Fargo RETECHS Group
707 Wilshire Boulevard, 19th Floor
Los Angeles, CA 90017
Total Addressees: 1
DISTRIBUTION: Number Of Copies First Name Last Name Company Address
3 Natham Weems (CMBG-West)
Wells Fargo
5401 California Ave 2nd Floor
Bakersfield, CA 93309
Total # Hard Copies: 3
SCOPE OF SERVICES: Required Analysis
[RETECHS JM MUST EDIT OR REMOVE THE FOLLOWING AS NECESSARY]Subject Lease Review Requirement: Appraiser must 1) verify accuracy of rent roll or lease abstracts against leases, 2) verify accuracy of any Argus or cash flow input against leases, and 3) must read/review adequate leases to substantiate the quantity and durability of the gross income stream to include any individual leases whose rent or term may materially impact value.
Report Presentation and Effective Dates of Value
In the event the subject property is proposed and/or not operating at stabilized occupancy: The appraisal should be written from the perspective of the As Is, Prospective As Complete, and Prospective As Stabilized Value estimates.
After providing the As Is Value and Prospective Value(s) in the Reconciliation section of the report, a separate section must provide the current As Complete and/or As Stabilized Value(s) which are subject to the Hypothetical Condition the property is currently complete and/or stabilized.
Intended Use Include the following statement in the Letter of Transmittal and Intended Use section of the report:
Wells Fargo reserves the right to use the report for the purposes of syndication with other financial institutions or securitization.
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Potential Market Changes
Due to concerns with changing market conditions and trends, we are requiring your report analysis to consider:
1. Market Participant Interviews: Discussions with real estate market participants (buyers, sellers, property managers, real estate agents/brokers). Reference these interviews in a dedicated section, and report and analyze the most pertinent comments and how they impact the subject value with Item No. 2 below.
2. Overall Capitalization Rate Sustainability: We are interested in the market's opinion of trends and catalysts for potential changes in Overall Rates (OARs). Specifically, what are market participants' observations on the likely impact of expected changes in interest rates, rents, supply & demand dynamics, the scarcity of comparable investments, excess investment capital, etc., on cap rates in the future? Please provide a discussion framed by market participant interviews for: (a) the potential direction and magnitude of cap rate movement; (b) the timeframe in which this may occur; and (c) how this may impact market value. Be specific to the subject property type and location, and avoid boilerplate commentary. For non-income producing (e.g., owner/user) properties, comment on a potential buyer's purchase criteria and the effect on value of factors such as fluctuating interest rates. Reference these opinions in a dedicated report section with the Market Participant Interviews (Item No. 1 above).
3. Comparable Listings: In addition to consummated comparable sales and leases, listings should be considered, with the most pertinent items reported, analyzed and incorporated within your market data.
4. Strengths and Weakness: Include a Strengths & Weaknesses section within the appraisal that focuses on the subject property, and its product type and market on a micro and macro level.
Scope of Work
Reporting of Non-Realty Value Components
All appraisal reports must disclose if non-real property is included in any value premise(s). If applicable, the report should:
1. Identify and Describe Non-Realty Components: If it is necessary to include non-real property in the valuation, it must be described in a dedicated (property description) report section and segregated into two categories:A. Personal Property (FF&E, M&E, etc.). And,B. Intangible Property (business enterprise components).NOTE: The source(s) for identification of non-realty items should be cited. This could include: appraisers inspection, property contact interview, inventory list, etc.
2. Value Allocation for Non-Realty Components: The contributory value of non-realty items should be allocated (and deducted) within each reported value premise. Separate value allocations should be segregated in accordance with item 1.A. and 1.B. above.
Should the appraiser determine the contributory value of the non-realty components is nominal, they must nonetheless still be identified and the rationale for their being considered nominal explained. Nominal is defined as a contributory value that does not materially impact the market value of the real estate. The sources and methodology for value allocations should be explained (e.g. new or depreciated book value, personal property and/or business appraisal, cost breakdown, Marshal Valuation Service, etc.).
Apartment Complex example: For existing, unfurnished apartments with basic kitchen and laundry packages, the appraiser must describe all non-realty components. The appraiser may conclude there is only nominal value attributable to the furnishings, fixtures and equipment (FF&E) and as such a separate value allocation would not be required. However, for furnished apartments, newly constructed or proposed unfurnished apartments, or any project where FF&E value is not considered nominal, a separate value allocation for FF&E components is required.
Highest & Best Use (H&BU): All appraisal reports should specify the most probable buyer profile (e.g. user, investor or both) and what they would do with
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Owner-Occupied Property
the property to maximize value.
Owner-Occupied Property: Similar to properties held in leased fee estate, owner occupied properties must be valued presuming a knowledgeable buyer is involved in a transaction. Many properties can appeal to an investor or an owner user under certain market conditions.
Leased Fee Value: If RETECHS has requested the Leased Fee interest be valued for a property that is occupied or partially occupied by an owner and/or their affiliates, this lease should be considered within the As Is value premise. In the event, the Leased Fee interest has been requested for owner-occupied property, a Fee Simple value premise in accord with directive below shall additionally be provided.
Fee Simple Value: If all or a part of the subject is currently owner occupied (or owner affiliate occupied) without lease(s), the current owner's (or owner affiliates) occupied portions of the subject should be assumed: This premise is based on the Extraordinary Assumption that the owner affiliated leased space is vacant as of the effective value date.
-Vacant as of the effective date of value -Available for a potential purchaser to use in accord with the H&BU conclusion (e.g. occupy, rent, lease, reposition etc.)
For owner-occupied properties, please reference Owner-Occupied Valuation Guidelines within the Appraisal General Requirements.
Report Type: Appraisal Report (summary) Report Format: Narrative
VALUATION SCENARIOS: Valuation Premise Premise Qualifier Property Interest Comment
Market Value As-Is Fee Simple
GENERAL PERFORMANCE STANDARDS Appraisal General Requirements
SPECIFIC PERFORMANCE STANDARDS APP-03 Specific Requirements General Wholesale Banking
Property Information Project Name: Community Action Partnership
Mixed-Use Facility Property Description / Construction Type: Facility serves for multi-purpose. 8,794 sf Child Care Center, 12,000 sf maintenance facility, and
23,000 sf Food BankProperty Comment: Property is multiple purpose and is located on 15.90 acres in Bakersfield CA.
Property Type: ML1 - Special Purpose - Other - All other special-purpose-type properties. Address: 1825 Feliz Drive, Bakersfield, CA 93307 County: Kern
Improvement Size (Primary): 15.90 Acres Land Size: 15.90 Acres
Parcel Numbers: 167-060-33,167-060-34,167-060-35,167-060-37
Year Built: 2008Property Status: Existing
Property Tenancy: Owner Occupied 100%Listed for Sale?: No
Green Certifications: N/A
Copyright © 2015 ExactBid, Inc. All rights reserved.
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The information contained in this award, along with the information contained in theGeneral Appraisal Requirements, Specific Performance Standards, and theGeneral Contractual Requirements referenced in the RFP, as well as all other RFPinformation, serve as the contract for services to be rendered. If, within 12 months ofthis assignment date, the vendor is contacted to appraise the subject property by anyother party than Wells Fargo RETECHS, vendor agrees to (1) notify Wells FargoRETECHS in writing and (2) receive a written reply from RETECHS approving thisrequest.
Unless specifically stated otherwise, information provided by the bank orborrower in conjunction with this assignment shall be considered confidentialand may not be used except as necessary for the completion of this assignment.Additionally, such information may not be shared or provided to any individual orentity except as necessary for the completion of this assignment, or as requiredby law or as mandated by appropriate professional standards or organizationssuch as USPAP and the Appraisal Institute.
This Statement of Work and Award is entered into as of the date of the award by andbetween Wells Fargo Bank, N.A. (Wells Fargo) and the awarded contractor, pursuant tothe Master Agreement for Real Estate Services, dated September 15, 2010; all terms ofwhich are incorporated herein by reference.
Note: Failure to deliver is subject to penalties as defined in the Master ServiceAgreement. Immediately contact Brad Carlton (TC) (LA) 818-245-6054 for anyholds, delays, or further required information.
1. Project Name: Community Action Partnership Mixed-Use Facility2. Description of Services: As indicated in the RFP3. Performance Period
Start Date: 4/21/2015End Date (if known): 5/14/2015
4. Work Site: 1825 Feliz Drive, Bakersfield, CA 933075. Total Costs and Fees: $6,5006. Wells Fargo Job Manager: Brad Carlton (TC) (LA)
Property Access and Contact Information:
Chris Anami
© 2015 CBRE, Inc.
661-336-5236
Please make contact immediately for access to the property
Include the following statement in the Letter of Transmittal and Intended Use section of the report:
Wells Fargo reserves the right to use the report for the purposes of syndication with other financial institutions or securitization.
© 2015 CBRE, Inc.
Delivery Instructions:(Unless otherwise specified in the attached addendum)
All valuation services requested, which include the report with signatures, all associatedexhibits, and any other pertinent supporting documentation, shall be delivered online viaRIMSCentral to Wells Fargo Bank-RETECHS, and (if appropriate) via a hard copy to theWells Fargo Banker or representative. In no case, will any valuation services ever besolely delivered to a Wells Fargo Banker or representative without writtenauthorization from RETECHS. In addition, upload the final invoice separately forpayment. The following guidelines provide more specific instructions:
1. Upload to RIMSCentral, under the appropriate assignment, a PDF APPRAISAL REPORT to include:
• The Recipient information [name, address, etc]Wells Fargo Bank – RETECHSBrad Carlton (TC) (LA)707 Wilshire Boulevard,, 19th FloorLos Angeles, CA 90017WF-LA-15-009491-01
• Vendor digital signature
2. Upload to RIMSCentral a copy of the appraiser's state license / certification as an addendum to the appraisal report.
3. Upload to RIMSCentral any other property information used to complete the assignments as stated in the Request for Proposal (RFP)
4. Upload to RIMSCentral the Original Invoice addressed to:
Wells Fargo Bank RETECHSBrad Carlton (TC) (LA)707 Wilshire Boulevard,, 19th FloorLos Angeles, CA 90017818-245-6054
Note: If uploading the documents to RIMSCentral is not feasible, please contactRIMSCentral for upload assistance, or the RETECHS Job Manager, Brad Carlton (TC)(LA), for additional delivery instructions.
If hard copies were requested per the RFP, only upon authorization via e-mailfrom a RETECHS representative is the vendor to deliver hard copy or copies:
Deliver to: Natham Weems (CMBG-West)E2511-0205401 California Ave, 2nd FloorBakersfield, CA 93309661-637-2693
Additional Requirements may be specified in an attached addendum.
© 2015 CBRE, Inc.
ADDENDUM
© 2015 CBRE, Inc.
Addenda
Addendum F
QUALIFICATIONS
© 2015 CBRE, Inc.
QUALIFICATIONS OF PEDRO K. CHIN Senior Appraiser
CBRE, Inc. Valuation & Advisory Services
400 South Hope Street, 25th Floor Los Angeles, California 90071
Phone: (213) 613-3580 Fax: (213) 613-3005 E-mail: [email protected]
EDUCATION
University of Southern California, Bachelor of Science 1991 Business Administration - Real Estate Finance and Marketing
Appraisal Institute Level I Examinations credit 410, 420, & 430 - Standards of Professional Practice; Parts A, B and C 510 - Advanced Income Capitalization 520 - Highest & Best Use and Market Analysis 530 - Advanced Sales Comparison and Cost Approaches 540 - Report Writing & Valuation Analysis 550 - Advanced Applications
LICENSES/CERTIFICATIONS
California Certified General Real Estate Appraiser, No. AG024011 (November 1994) Candidate, Appraisal Institute, No. M932485 (August 1993)
EMPLOYMENT
CBRE, Inc. – Valuation & Advisory Services 1991 - Present Senior Appraiser
EXPERIENCE Pedro K. Chin has been with CBRE since 1991 as a member of the Valuation & Advisory Services Group in Downtown Los Angeles. He has over 20 years of real estate appraisal and consulting experience in the Southern California region including the Southern San Joaquin Valley and Central Coast. Mr. Chin’s experience includes the valuation of a variety of income-producing property types along with a focus on land development (apartments, residential condominiums, mixed-use residential/retail/office, and high-end single-family projects). He also has experience in the use of Argus for cash flow projections.
EXPERT WITNESS
Testified in Judicial Arbitration and Mediation Service (JAMS), Orange, California.
© 2015 CBRE, Inc.
QUALIFICATIONS OF ROBERT W. GUTZMAN, MAI Director
CBRE, INC. Valuation & Advisory Services
400 South Hope Street, 25th Floor Los Angeles, California 90071
Phone: (213) 613-3683 Fax: (213) 613-3005 E-mail: [email protected]
EDUCATION
Occidental College, Bachelor of Arts in Economics 1987 Los Angeles Professional Courses/Seminars: Litigation Seminar (numerous times); Real Estate Appraisal Principles; Basic Valuation Procedures; Basic Capitalization Theory/Techniques; Advanced Capitalization Theory/Techniques; Uniform Standards of Professional Appraisal Practice (every two years); Report Writing and Valuation Analysis; Advanced Applications; The Law and Value; Eminent Domain; Advanced Sales Comparison and Cost Approaches; Business Practices and Ethics (multiple times); Special Purpose Properties; Income Valuation of Small, Mixed-Use Properties; Subdivision Valuation; Appraiser as Expert Witness; Litigation Appraising; Condemnation Appraising; Federal and California Statutory and Regulatory Law Course; numerous seminars and workshops
LICENSES/CERTIFICATIONS/CERTIFICATES
Member, Appraisal Institute (MAI) – Designation Number 11482 California Certified General Real Estate Appraiser, Number AG025646 Appraisal Institute Litigation Certificate Program, Certificate of Completion
EMPLOYMENT
CBRE, Inc. – Valuation & Advisory Services 1993 to Present Director, Los Angeles Office IBAR Settlement Co., Inc. 1990 to 1993 Economist/Expert Witness, Pasadena First Interstate Bank of California 1989 to 1990 Local Markets Analyst, Los Angeles
EXPERIENCE
Experience in appraising various property types including office buildings, retail centers, industrial buildings, multi-family buildings, golf courses, self-storage, hospitality properties, gas stations, vacant land (including underwater land parcels), skilled-nursing and assisted-living facilities, single-family residences, subdivisions, easements, and small income-producing properties. Reports have been used for purchase and sale, financing, collateral management, estate purposes, property tax appeals, eminent domain proceedings, bankruptcies, and general real estate litigation. Guest speaker for the Southern California Chapter of the Appraisal Institute.
EXPERT WITNESS
Qualified as an expert witness in U.S. District Court, U.S. Bankruptcy Court, and California State Superior Court in real estate appraisal (civil and criminal court) and in forensic economics (civil court). Testified before the Los Angeles County Assessment Appeals Hearing Officer as well as the Orange County and San Diego County Assessment Appeals Boards.
© 2015 CBRE, Inc.
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